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HomeMy WebLinkAboutRural Utility Business Advisor Program RUBA Quarterly Report Jan 1-Mar 31 2009Rural Utility Business Advisor Program RUBA Quarterly Report January 1 - March 31, 2009 Third Quarter FY09 WBA RURAL UTILITY BUSINESS ADVISOR RUBA Program Manager Elizabeth Manfred 550 W. 7th Ave., Suite 1770 Anchorage, AK 99501-3569 [Elizabeth's office is on the 16th floor in Suite 1640] 907-269-4556 (phone) 907-269-4563 (fax) elizabeth.manfred@alaska.gov Rural Utility Business Advisor (RUBA) Program Activity Report January 1 — March 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 January | through March 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 had requested and received staff travel and on-site assistance this quarter. Major Issues Staffing Recruitment was posted for Local Government Specialist positions in both Nome and Fairbanks. After both telephone and face-to-face interviews and skills tests were completed, both positions were offered. Unfortunately both applicants later refused the offer of employment for personal reasons. With no qualifying secondary candidates to choose, the positions are posted again and will be offered next quarter. The relocation of a vacant Anchorage RUBA position was approved and is now being recruited for the Dillingham regional office. Bristol Bay communities that were served by the Anchorage office will be reassigned to the new hire in Dillingham. This relocation allows efficiencies in travel expenses and response time. It has the added benefit of expertise and knowledge of locals serving locals. Weather: RUBA staff responded to several reports of severe winter weather causing frozen pipes. RUBA coordinated with Remote Maintenance Workers and regional health corporations to offer technical assistance to restore operations. Interruptions in service resulted in public health concerns and lack of expected revenue. The extreme cold weather additionally increased expenses to utility operations in the need for additional fuel. RUBA Program 3 Scope of Report Coordination/Communication Alaska Citizen Advisory Board: In 1999, the Alaska Citizen Advisory Board (CAB) developed a “Report of Findings on Improving the Technical, Managerial and Financial Capacity of Alaska’s Public Water Systems.’ This document was the basis for the DEC Capacity Development Strategy, approved by the EPA in 2000. It is also the document that supported the concept of the RUBA program and the funding for the program by EPA. Recognizing the need to review the report and determine if additions or modifications are needed, the Capacity Development Steering Committee held the first of three scheduled meetings. The goal is to complete the update by June 2009. Attendees at the first steering committee meeting included the RUBA program manager and representatives from Department of Environmental Conservation, Department of Natural Resources, Environmental Protection Agency, University of Alaska, Indian Health Services, Alaska Native Tribal Health Consortium, Matanuska-Susitna Borough, Village Safe Water, and various water utility managers. Alaska Municipal League (AML): The Alaska Municipal League (AML) is a voluntary, nonprofit, nonpartisan, statewide organization of 137 cities, boroughs, and unified municipalities, representing over 98% of Alaska’s residents. AML also offers Associate status to organizations and commercial firms, and Affiliate status to professional associations of municipal officers. Juneau RUBA staff attended the AML legislative meetings in Juneau in January. For two days the Conference of Mayors and other local government officials met to discuss Alaska Municipal League’s legislative priorities with their legislators. It was an opportunity for RUBA to voice support for the need to fund sanitation infrastructure in rural areas of the state. RUBA staff was also invited to present management information to member communities attending the Alaska Municipal League Joint Insurance Association (AMLJIA) annual risk management conference February 3 in Anchorage. Approximately 30 community representatives attended this session. Our presentation connected the workers compensation and safety manual and meeting requirements of the RUBA management assessment to the risk management theme of the conference. A RUBA management assessment is required to receive sanitation construction funds and the workers compensation and safety manual and meeting requirements are capacity indicators required for the assessment. The RUBA highlight of the presentation was having two different community representatives verbalize appreciation of previous on-site RUBA assistance and express unsolicited encouragement to the rest of the group to avail themselves of the resources provided by the RUBA program. RUBA Quarterly Report — 3rd Quarter FY09 -2- RUBA Program Scope of Report Alaska Rural Utility Collaborative (ARUC): ARUC is a pilot project to develop a statewide utility to offer centralized management and accounting functions to small rural member communities. RUBA provided grant funds for the pilot project. Additional funding was requested to recruit new communities. 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 began with seven utilities; recently four additional utilities have signed on and relinquished management responsibilities to ARUC. Alaska Native Tribal Health Consortium: Chris Kiana, Tribal Utility Business Support Specialist for Alaska Native Tribal Health Consortium (ANTHC) contacted several RUBA staff with invitations to travel together to rural villages. Mr. Kiana meets with utility staff and administration staff in communities with ongoing ANTHC sanitation construction projects. His position was created to provide support and training to utility staff currently experiencing deficiencies in management capacity indicators. Mr. Kiana also provides copies of his trip reports to each respective RUBA assigned upon completion of his trips. x» Association of Village Council Presidents (AVCP): AVCP staff contacted Bethel RUBA staff with a request to cosponsor training for local governments. Due to high turnover in several communities and several new younger Alaskans being seated in utility boards, city councils, and village councils, AVCP explored resources to provide training. An agreement was reached that AVCP would provide the training space, refreshments and additional support and RUBA would provide instructors and materials. The first class conducted was the Newly Elected Officials training held March 23-28, 2009 in Bethel. Twenty-four participants representing 14 communities completed the course. Bristol Bay Native Association: Dillingham RUBA staff provided an overview of RUBA and Division of Community and Regional Affairs programs and services to Bristol Bay Native Association’s (BBNA) newly-hired Tribal Energy Program Manager Melody Nibeck- Edgmon. BBNA, a regional nonprofit organization, recently created the energy program in light of energy prices and their impact on communities. RUBA shared information and web links to various utility and energy-related programs managed by the State of Alaska. These resources included the RUBA Assessment of Management Indicators, the DCRA statewide fuel price report, Alaska Energy Authority, the Regulatory Commission of Alaska, among others. In mid-2008, Bristol Bay regional entities, including BBNA, published two reports on the issue of energy in the region (posted on their website, bbna.com). The reports outline a strategy for addressing the rising cost of energy and achieving the long-term goal of energy self-sufficiency. RUBA will maintain contact with the BBNA program as the regional organizations implement their plans to address the high-cost of energy. RUBA Quarterly Report — 3rd Quarter FY09 aso RUBA Program . Scope of Report Environmental Protection Agency (EPA): Several unexpected factors impacted the original funding award from EPA that supports the RUBA program. Due to position vacancies and non-responsive contract announcements, RUBA did not apply for the annual FY09 grant. EPA granted an amendment to the previous award allowing RUBA to continue to spend the remaining carryover funds. RUBA was also granted an amendment this quarter for a portion of the annual award. These additional funds will allow RUBA to continue to provide rural on-site technical, financial, and managerial community assistance, rural utility staff travel and training reimbursements, regional utility management classes, and assistance through use of contractual services. Governor’s Peak Performance Award: On February 27, Commissioner Emil Notti awarded certificates of appreciation to Department of Commerce, Community, and Economic Development staff who had been nominated for the Governor’s Peak Performance Denali Award. Each RUBA staff member received a nomination in the category of state employee customer service. The nomination recognizes the customer service provided to rural communities in the form of technical, managerial and financial assistance both on-site and through training opportunities. All nominations will be scored by an independent team to determine finalists in each of four categories and winners will be announced at a later date. RUBA staff is honored to receive this recognition for statewide service to rural communities. In addition to the RUBA team nomination, Anchorage staff member John Nickels received a nomination in the leadership category and Fairbanks staff member Jeremy Johnson was nominated for co-worker support. Internal Revenue Service (IRS): Anchorage RUBA staff attended IRS/Alaska State Tax training on 'Gaming in Alaska’ February 18, 2009. The training was intended for tribal governments and others involved with gaming in rural Alaska. Mr. Joe Koss, Department of Revenue, gave a presentation on state tax requirements for both Bingo and Pull-Tabs, and addressed the common mistakes made in most communities. He explained the requirements for permits, having a non-profit status, 'who can play’, and the required information to be filed each year. The second half of the training was presented by IRS personnel, who explained federal requirements for reporting and how they coincide with state requirements. Attending this class benefits RUBA in that many communities use gaming revenue to subsidize utility services. RUBA Quarterly Report — 3rd Quarter FY09 -4- RUBA Program Scope of Report Kodiak Regional Leadership Forum: Anchorage RUBA staff attended the Kodiak Archipeligo Rural Regional Leadership forum held in Kodiak January 28-29, 2009. Representatives from Port Lions, Chiniak, Ouzinkie, Old Harbor, Larsen Bay, Karluk and Akhiok were in attendance. The first day, sessions focused on individual community update presentations, regional transportation planning, as well as discussions on community health, tural zoning, mapping, and fisheries issues. The Division of Community and Regional Affairs (DCRA) is currently working with the Kodiak Island Housing Authority on a mapping project of the villages. RUBA staff presented information regarding the RUBA program and training opportunities available. RUBA staff also used this opportunity to collaborate with the Kodiak Area Native Association (KANA) to co-sponsor utility management training next quarter. National Petroleum Reserve Alaska: The RUBA program manager had the opportunity to travel to Fairbanks and sit on the National Petroleum Reserve Alaska (NPRA) grant application selection committee. Representatives from the Department of Natural Resources (DNR) and the Department of Environmental Conservation (DEC) completed the team of three reviewers. The NPRA Impact Mitigation program’s primary objective is to provide eligible municipalities with financial assistance to help mitigate significant adverse impacts related to oil or gas leasing within the NPRA boundaries. These impacts include exploration, production and oil and gas transportation activities. The Alaska Administrative Code states that financial assistance may be provided for planning, construction, maintenance, and operation of essential public facilities, and other necessary public services. Approximately $23 million will be distributed among the top ranked 22 applications. The members of the group forward their recommendations to the Commissioner of the Department of Commerce, Community, and Economic Development (DCCED) who makes the final funding decisions. Northwest Artic Borough: Kotzebue RUBA staff attended a meeting March 23 with the Northwest Arctic Borough Mayor, Public Services Director, Search & Rescue Coordinator, Economic Development Director, Grant Coordinator, Energy Specialist, and Public Services Coordinator. The group discussed short-term needs in the communities of Selawik, Deering and Kiana, potential funding, and the Remote Maintenance Worker (RMW) program. The borough is considering assuming administration of the RMW program in the region and wanted additional information prior to pursuing that project. A need to complete a water/wastewater assessment in every village was also discussed. Borough staff hopes to hire someone to evaluate each water and wastewater system for vulnerabilities and deficiencies that could lead to partial or total system breakdown as well as energy efficiency methods. RUBA Quarterly Report — 3rd Quarter FY09 = nm ' RUBA Program Scope of Report Prince of Wales Community Stakeholder Meeting: Juneau RUBA staff traveled to Hydaburg on January 10, 2009 to attend a Prince of Wales (POW) Island stakeholder meeting. The meeting included tribal and village corporation leaders from the area. The meeting was called because island leaders were concerned that Alaska Native villages suffer from some of the worst poverty and sanitation services in the country. Unemployment levels are in excess of 60%. There is little individual entrepreneurship in the villages mainly due to the lack of resources, training, and community infrastructure. The tribal governments and Alaska Native corporations wanted to have a greater responsibility for promoting economic development in POW communities. This meeting provided an opportunity for POW communities to share economic development ideas with state and federal agencies. Unfortunately, RUBA was the only state or federal agency in attendance. Rural Alaska Pilot Project (RAPP): RUBA staff attended a meeting of RAPP at the Internal Revenue Service (IRS) office in Anchorage. Attending the meeting were IRS staff and representatives of the Denali Commission, Alaska Department of Commerce, Community, and Economic Development, and the U.S. Department of Housing and Urban Development. The meeting was held to discuss how rural Alaska tribal and municipal governments can be assisted with their financial and tax problems. IRS representatives reported on employment tax workshops held in Anchorage and Dillingham. IRS staff also discussed use of the Authorization to Release Federal Tax Information form. The form is now to be submitted to the Taxpayer Advocate’s office and not addressed to an individual staff member there. They are attempting to streamline the service to provide a shorter response time. The IRS also spoke about communities and their QuickBooks set up for processing tax information on council members. Southeast Conference Summit: Juneau RUBA staff attended Southeast Conference mid- session meetings held in Juneau. Southeast Conference members including municipalities, Native corporations, village councils, regional and local businesses, civic organizations, and individuals from the region met to discuss legislative priorities with their legislators. The topics discussed during the meetings were centered on regional transportation, timber, energy, fisheries, tourism, and economic development issues. Southeast Conference is the state-designated Alaska Regional Development Organization (ARDOR), the federally- designated Economic Development District (EDD), and the federally-designated Resource Conservation and Development Council (RC&D) for Southeast Alaska. RUBA Quarterly Report — 3rd Quarter FY09 -6- RUBA Program Scope of Report Southeast Sanitation Deficiency Systems: Juneau RUBA staff traveled to Saxman to present program information at a two-day rural Sanitation Deficiency System (SDS) planning meeting. Other participants included representatives from Southeast communities, Alaska Department of Environmental Conservation (ADEC), Alaska Native Tribal Health Consortium (ANTHC), Village Safe Water (VSW), Remote Maintenance Worker (RMW) program, and South East Alaska Regional Health Consortium (SEARHC) Environmental Health. The meeting objectives were to discuss how to maximize scoring for SDS projects, identify new projects, and discuss sanitation needs that are not eligible for SDS funding. Southwest Alaska Municipal Conference: RUBA staff from Dillingham and Anchorage attended the Southwest Alaska Municipal Conference (SWAMC) Energy Workshop and Economic Summit January 28-30, 2009. RUBA staff made contact with community leaders and agency representatives from all areas of southwest Alaska while attending presentations on a variety of topics. In addition to sessions on geothermal, wind, tidal, and other alternative energy projects, there were discussions on oil and gas development in the region and fishery management issues. Event highlights included presentations by the Alaska Energy Authority, Alaska Housing Finance Corporation, Alaska Village Electric Cooperative, Alaska Department of Transportation, Aleutians East Borough, and the Renewable Energy Alaska Project. Also of note, USDA Rural Development staff from the Dillingham field office presented information about energy-related project funding opportunities for communities. RUBA staff will continue to monitor the energy and economic development topics presented at the event. Tanana Chief’s Conference, Inc.: RUBA signed a training partnership agreement with Tanana Chiefs Conference, Inc., Office of Environmental Health (TCC-OEH) January 6, 2009. RUBA will provide utility management training materials, instructors, and technical assistance to complement the TCC-OEH Water and Wastewater Operator Training Program. This partnership allows our organizations to maximize training funds, prevent unnecessary duplication of effort and to share ideas and knowledge. The partnership between RUBA and TCC-OEH is an efficient and effective arrangement that provides critical training to communities within the TCC region and throughout Alaska. Technical Assistance Providers (TAP): Anchorage RUBA staff attended the TAP business meeting on February 11, 2009. There was repeated discussion about adding Shaktoolik to the list of communities receiving technical assistance from the TAP group. In the meeting, the providers wanted to know more about providing assistance to Shaktoolik and if the community requested help. RUBA staff offered to have the community’s assigned RUBA contact Shaktoolik. It was noted that there are some hardware issues with the water utility and financial issues with IRS. A final decision will be made when information is received from the RUBA staff assigned to the community. The TAP group also discussed the sewage problem in Scammon Bay. Leah Guzman, Environmental Program Specialist, explained that steps are now being taken to deal with the problem. Ms. Guzman has worked with RUBA staff member Hazel Keezer to provide technical assistance to the community. Ms. Guzman also stated that approval is forthcoming from ANTHC and VSW for reallocating some funding to address the sewage problem. RUBA Quarterly Report — 3rd Quarter FY09 u7e RUBA Program Scope of Report Thank You Note: False Pass Deputy Clerk Michelle Traughber recently attended a regional QuickBooks Pro accounting class presented in Anchorage. The RUBA program has contracted QuickBooks instructors and pays lodging and airfare for participants from rural communities who operate sanitation services. After class, Michelle sent a thank you to the RUBA program manager stating “It really helped that Joanna and Pati (instructors) were accountants who were very comfortable with the program and could gear the training specifically towards our rural community needs. I have to commend the RUBA organization for providing something so key towards the operations of our cities, villages, and towns.” Village Safe Water (VSW): A joint sanitation agency: meeting was held on March 5, 2009 regarding a project in Port Heiden. Participants included the VSW Engineer, CRW Engineer, representatives from the Native Village of Port Heiden, USDA, and RUBA. A $1.2 million washeteria is planned with $500,000 funded by Denali Commission and the remainder funded from VSW. Presently the project is in the design stage. The plan is for USDA to cooperate with VSW on the funding package, complete the environmental assessment, work on the design, and work with the community to pass the RUBA management assessment. VSW stated that design work could be completed by August with the foundation work and building enclosed by October. The interior work will continue through the winter. Performance Goals Staff Development: Anchorage RUBA staff attended IRS/Alaska State Tax training on gaming in Alaska. The training was for Indian Tribal governments. Mr. Joe Koss, Department of Revenue, spoke to the requirements for both Bingo and Pull-Tabs, and the common mistakes made in most communities. Mr. Koss’s overall outline provided a wealth of information to attendees in the training and allowed organizations to return to their communities and check their procedures to ensure they are meeting state requirements. IRS information concerning the requirements in relationship to gaming activities was also presented. RUBA attended this training as many communities subsidize sanitation services with gaming revenues. New Publications: RUBA staff drafted a student guide to be used in a RUBA management assessment workshop. The RUBA assessment workshop and training materials will provide information regarding the RUBA program, the RUBA assessment, and the assessment process. The workshop is intended to help participants understand the purpose of the RUBA assessment and the underlying principals of effective utility management addressed in the RUBA assessment. Communities are required to pass all essential capacity indicators in a RUBA management assessment in order to receive sanitation project funding. RUBA Quarterly Report — 3rd Quarter FY09 -8- RUBA Program Scope of Report 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 78 trips to 36 communities during the third quarter of FY09. Fifteen RUBA staff spent a total of 117 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: RUBA staff members were invited to six communities to complete utility management assessments this quarter. RUBA is now monitoring a total of 170 management assessments. RUBA staff requires a minimum of a monthly finance report from each of these communities and, in several instances, additional documentation to assess management capacity. Nineteen communities received on-site assistance and provided documentation to support a showing of improvement in the total score of both essential and sustainable indicators. 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 recently signed a contract with Turnagain Press. Turnagain Press staff are the instructors for RUBA sponsored classes and were the authors of the RUBA publication ‘Introduction to QuickBooks for Sanitation Utilities.’ RUBA now supports a QuickBooks assistance hot line. Turnagain Press will be available to assist communities with QuickBooks accounting problems Monday, Tuesday, and Thursday each week from 9 am to 2 pm by calling 907-440-0242. The contractor shall resolve accounting problems for rural sanitation utility staff concerning all aspects of the QuickBooks software program. Turnagain anticipates that most problems will be resolved through phone calls. Assistance will also be 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. RUBA Quarterly Report — 3rd Quarter FY09 -9- RUBA Program Scope of Report On January 14, 2009, Anchorage RUBA staff traveled with a QuickBooks contractor to the City of McGrath. This trip was the first of three onsite visits to install and provide training for the QuickBooks accounting system. RUBA staff and the contractor provided program training for city staff, accounting system reconfiguration, and entered customer accounts and payroll information into QuickBooks. RUBA and the contractor will schedule two more trips approximately 30 days apart to provide additional training and assistance. The QuickBooks technical assistance and training should substantially increase the local government’s capacity in the area of financial management. Asset Management CUPPS: Check Up Program for Small Systems (CUPSS) is an asset management tool developed by the Environmental Protection Agency (EPA) for small drinking water and wastewater utilities with fewer than 1,000 connections. With the CUPSS software, a utility gains a better understanding of its financial situation and can develop a tailored asset management plan by recording its capital assets and managing a schedule of required tasks. A small grant was signed in January with the City of Thorne Bay who agreed to implement the CUPSS software to test its applicability with small water and wastewater systems in rural Alaska. The RUBA program will provide financial assistance through a small grant to help cover administrative needs. In return, the city will provide the RUBA program with invaluable information through progress reports, presentations, and other documentation to help implement the CUPSS software throughout the state. Thorne Bay utility staff will also document their efforts and provide written reports to RUBA and verbal reports to professional entities such as the Alaska Water Wastewater Management annual conference. Training Classes Presented Bethel: Fairbanks and Bethel RUBA staff presented a 32-hour Newly Elected Officials Training in Bethel March 23-28, 2009. Twenty six participants, representing both municipal and tribal governments from 12 communities (Alakanuk, Emmonak, Goodnews Bay, Upper and Lower Kalskag, Kongiganak, Napakiak, Nightmute, Nunapitchuk, St. Mary’s, Toksook Bay, and Tuntutuliak) attended. Topics covered during the workshop included: An Overview of Governments, Roles and Responsibilities of Elected Officials, Meetings, Ordinances and Resolutions, Policies and Procedures, Financial Management, and Sustainability of Public Water/Wastewater utilities in Rural Alaska. This was the first time the newly developed training materials were presented in a regional workshop. The Association of Village Council Presidents helped make this workshop possible by providing the meeting place, refreshments and additional support. RUBA Quarterly Report — 3rd Quarter FY09 -10- RUBA Program Scope of Report Ninilchik: RUBA sponsored the Operations for Rural Utilities training in Ninilchik March 9-13, 2009. This was the last class of the series of six RUBA utility management classes to be held in Ninilchik at their request. This community is unique in that they do not yet operate a public water service. They requested the course in preparation for seeking funding for construction of a new community water system. RUBA staff enlisted the services of a Remote Maintenance Worker from the Aleutian Pribilof Islands Association to assist in presenting the course. Nine students from Ninilchik, Nikolaevsk, Kachemak Selo, Anchor Point, and Kasilof attended. Topics covered in the course included safety, Operation and maintenance scheduling, data collection and reporting, public relations, inventory control, and contingency planning. Anchorage: The QuickBooks Pro for Beginners course was presented in Anchorage at the Alaska Native Tribal Health Consortium computer lab. The instructors of the class were very helpful and understanding to the needs of each community in attendance. The training is a level one beginners training class, teaching students the basic operation of the QuickBooks program. The students learn how to develop a chart of accounts and the relationship to a budget, classes and jobs within the accounts, managing the accounts, formulating payroll, building budgets, and formulating reports. Fourteen students from False Pass, Larsen Bay, McGrath, Atka, Nulato, Cold Bay, Iliamna, Port Heiden, Togiak, Anchor Point, and Chefornak completed the training. Shageluk: Bethel RUBA staff traveled to Shageluk on March 9-13 to conduct an elected official’s workshop at the community’s request. Participation fluctuated due to local work schedules and preparations for the Iditarod mushers passing through. The training was presented to both city and tribal government officials and included such topics as overview of government, roles and responsibilities, meetings, ordinances and resolutions, policies and procedures, financial management, and sustainability. Eight students completed the course and asked Bethel staff to schedule additional management courses. While the workshop was not in session, Bethel staff worked with the city administrator to provide assistance with monthly financial reports and adoption of a utility budget. Anchorage: Anchorage RUBA and DCRA staff conducted a Planning Management for Rural Utilities class in Anchorage February 23-27, 2009. This class was cosponsored by Aleutian Pribilof Islands Association and held in their training facility. Fourteen participants from Akiakchak, Anchor Point, Anchorage, Atka, Beaver, Cordova, Crooked Creek, Kipnuk, Port Heiden, Quinhagak, Russian Mission and Sand Point participated in the 32-hour course. This class focused on the entire planning process and included sessions on collecting information, holding community meetings, and developing plans, evaluating plans, and choosing alternatives. RUBA Quarterly Report — 3rd Quarter FY09 -il- RUBA Program Scope of Report Scholarships for Utility Staff Training: As a result of higher expenses to provide rural utility services, many utilities were forced to cut their budgets in the area of training. RUBA has established a training mini-grant program to provide airfare and lodging reimbursements to utility staff who attend RUBA sponsored classes. This quarter, RUBA provided reimbursement to utility staff who attended the Sanitation Deficiency Systems, QuickBooks Pro Beginner’s, Operations Management for Rural Utilities, and the Planning Management for Rural Utilities classes. The training funds require attendance and participation in the complete course prior to reimbursement being issued. A total of $27,271.93 was awarded to the 27 participants. RUBA Quarterly Report — 3rd Quarter FY09 < em + Legend On-Site Visits Assessments UTM Students Seg ABE ana. vm RUBA Program Activity Map January 1 through March 31, 2009 January — February — March 2009 Table of Contents Angoon Fort Yukon... Goodnews Bay. Husilia ......... Kwethluk.... Kwigillingok . Larsen Bay........ Metlakatla.. Nondalton... Port Heiden Native Council Saint Mary’s..... Scammon Bay Selawik........ Shageluk..... Tuluksak.... 3” Quarter FY09 - RUBA Report January — February — March 2009 3” Quarter FY09 - RUBA Report January — February — March 2009 3” Quarter FY09 - RUBA Report ———— SO AUDA Report Table of Contents Non-RUBA Communities Aleknagik Ambler .... Anchor Point.... Chefornak....... Chenega Ba Kachemak Selo. Kasaan... Kobuk... Manokotak. McGrath .... Old Harbor Tanana.... Thorne Bay Whitestone Community Association January — February — March 2009 3” Quarter FY09 - RUBA Report Community Activity Reports Third Quarter FY09 January | — March 31, 2009 January — February — March 2009 3 Quarter FY09 - RUBA Report -6- January — February — March 2009 3” Quarter FY09 - RUBA Report Akiak Activity Report Community Overview Lead RUBA Staff: Flora Olrun, Bethel Office o&, 2007 Population: 350 Region: Lower Kuskokwim od Local Government: Unincorporated < Pe, POO A new well, water treatment plant and storage tank were i recently completed. The school and Akiak Native community building are connected directly to the water plant. The school pays for water services on a quarterly basis to the Native Community of Akiak. Individual wells, septic systems and plumbing were installed in 14 HUD homes during 1997. The community has plans to install plumbing for 53 homes for water and sewer services. The city provides septic pumping service at least once or twice a year to some residential and commercial buildings. Most residents are dependent upon the washeteria for laundry services. Residents who haul water purchase the water with prepaid tokens from the Native Community of Akiak. The washeteria is managed by the Akiak Native Community and is located in their building. ° RUBA Activity This Reporting Period Akiak Native Community currently meets all essential management indicators. They submitted their 2009 budget and monthly financial statement ending February, 2009. The reports are in their file located in the Bethel regional DCRA office. Their worker's compensation insurance is current through January 12, 2010 through Liberty Northwest. The last IRS report shows they are in compliance with filing requirements and deposits. As of February, 2009 the Akiak Community Water System was on the Environmental Protection Agency's Significant Noncompliance List for missed monitoring reports and may be able to return to compliance by June, 2009. The Native Community of Akiak has 36 residential, one church, and two commercial customers connected to the piped water system. January — February — March 2009 3 Quarter FY09 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No xX 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. X The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. &X The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators X Xd & y 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 Bethel regional office has Akiak's 2009 budget on file. Monthly financial expenditure reports are being submitted to the council based on the approved 2009 budget. The last monthly report submitted to the Bethel office is for February, 2009. The YTD expenditures are above the YTD revenues. The utilities are subsidized from unrestricted funds from Akiak Native Community. They are current on all water/wastewater electric bills. The community has an adequate supply of fuel on hand. The council receives manager's reports at regularly scheduled monthly meetings, and budget amendments are passed when it is necessary. Accounting Systems Essential Indicators Yes XXX 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 tracks customers and reports past due accounts and amounts. An accounts payable system is in place. The payroll system correctly calculates payroll and keeps records A cash receipt system is in place that records incoming money and what it was for. The utility has a cash disbursement system that records how money was spent. ainable Indicators n eo a t Ree 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. January — February — March 2009 3” Quarter FY09 - RUBA Report EE RODA Keport Accounting System Comments: Section 2.14 of Akiak's Water and Sewer Ordinance contains language for service billing. The community has thirty-six residential, one church, and two commercial connections to the piped water and sewer system. Customers are billed on a regular basis and collection policies are enforced. The QuickBooks program keeps all payroll, accounts payable and receivable, and cash disbursements in order. 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. & If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The IRS and DOL deem Akiak compliant at this time and there are no recorded notices of federal tax liens against the Native Community of Akiak. 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. & 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: Worker's compensation is current and posted. The insurance is provided by Liberty Northwest and is valid through 1/12/2010. The Native Community of Akiak has a personnel policy which was completed by a consultant in 2003. Evaluations are informal using the personnel policy as a parameter. The evaluations should comply with the policy and be documented in each individual staff personnel file. All training certificates are placed in staff files. The Executive Director provides adequate opportunities for staff to attend training sessions. The personnel files are up to date and contain I-9's and letters of acceptance. -9- January — February — March 2009 3" Quarter FY09 - 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 KHRKNRRR Xl The utility has adopted an organizational chart that reflects the current structure. & The policy making body meets as required. X The utility complies with the “Open Meetings Act” for all meetings. Organizational Management Comments: The Bethel regional office has a copy of Akiak's approved water and sewer ordinance. The Akiak Native Community owns and operates the water service. The Executive Director and the bookkeeper for the Akiak Native Community are experienced and competent. The water service has an adequately trained operator who has Level | Water Treatment and Water Distribution certification. Akiak Native Community meets once a month and posts the agenda for each meeting where the public has access to the information. The Akiak Native Community is not required to comply with the Open Meetings Act, however, they voluntarily comply with it. 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. y 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. &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. &X The utility has completed and distributed its Consumer Confidence Report (CCR). EJ The utility is not on the Significant Non-Compliance (SNC) list. EX The utility maintains an inventory control list. The utility maintains a critical spare parts list. Operation of Utility Comments: The preventative maintenance plan is on file in the Bethel regional office. Documentation reflecting a weekly written status report by the operator to the Executive Director is on file. The Consumer Confidence Report dated 6/28/07 is on file in the Bethel regional office. The utility is currently on the significant noncompliance list. They may be able to return to compliance by June, 2009. -10- January — February — March 2009 3” Quarter FY09 - RUBA Report etc EE ROD A Report RUBA Activities For The Coming Quarter Akiak Native Community currently meets all of the essential capacity indicators. RUBA staff will continue to work with the Akiak Native Community staff on sustainable indicators. -l- January — February — March 2009 3” Quarter FY09 - RUBA Report January — February — March 2009 3” Quarter FY09 - RUBA Report Alakanuk Activity Report Community Overview Lead RUBA Staff: Hazel Keezer, Bethel Office ~~ 2007 Population: 681 Region: Lower Yukon od Local Government: 2™ Class City Nik 7 The City of Alakanuk operates the piped water and Atinsa yt PP 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. Construction began in 1995 to provide piped water and sewer to 170 homes and the school. In 1998, 83 homes, the school and teacher's housing were first connected. Today, there are 132 utility customers hooked up to the system. Water is derived from the slough, treated, stored in a tank, and piped to most of the community. New facilities include a water treatment plant, heated 300,000-gallon water storage tank, vacuum sewage plant, sewage lagoon, arctic piping and household plumbing. The new subdivision has been completed with all homes connected to the piped system. There are plans to hook up the other side of the river in the near future. The new airport construction is on-going. RUBA Activity This Reporting Period Bethel RUBA staff traveled to Alakanuk in January of 2009 to provide assistance with the city's budget. The City Administrator had prepared a draft budget with the assistance of the water plant operator. Amendments were needed regarding the IRS debt and acceptance of revenue sharing payment. With RUBA assistance, a draft budget was completed, however, to our knowledge it has not been adopted. Monthly bank reconciliations were not completed for all utility accounts. The administrator stated he would work with the bookkeeper to complete this and submit documentation to RUBA as required in the sustainable indicators. -13- January — February — March 2009 3" Quarter FY09 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No &] 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. The utility is current in paying all water/wastewater electric bills. Xx X 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. X) A monthly manager’s report is prepared. &] Budget amendments are completed and adopted as necessary. Finances Comments: The city's administrator was provided assistance to complete the city's budget by RUBA staff, however RUBA was not provided the budget and ordinance from the city council. The city currently has an installment agreement with Alaska Village Electric Cooperative to repay past due electric bills. The fuel purchase of 8,000 gallons had been made and there is an additional 10,000 gallons fuel supply in the city holding tanks. The monthly manager's report is given verbally to the council. -14- January — February — March 2009 3 Quarter FY09 - RUBA Report ——— Ort EN - ROBA Report Accounting Systems Essential Indicators Yes No The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. An accounts receivable system is in place which track customers and reports past due accounts and amounts. An accounts payable system is in place. The payroll system correctly calculates payroll and keeps records A cash receipt system is in place that records incoming money and what it was for. The utility has a cash disbursement system that records how money was spent. Sustainable Indicators A chart of accounts is used that identifies categories in a reasonable, usable manner. Monthly bank reconciliation’s have been completed for all utility accounts. The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. XKXK KRM S WOw Accounting System Comments: The city utility ordinance was effective as of March 2008 and includes a collection policy. The grace period is 45 days for past due utility bills. The administrator enters and calculates payroll with QuickBooks Pro. A manual ledger is being used for accounts receivable to track utility payments. 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. x 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 IRS deemed the city in compliance with federal employment tax filing and deposit requirements; however, the city owes federal taxes for 2004 and 2007. The city has made a repayment agreement and is current. The Alaska Department of Labor reported that the city is current with state ESC tax requirements. January — February — March 2009 3” Quarter FY09 - RUBA Report Personnel System Essential Indicators Yes No Xl The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators & xX XR KW & The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: 1-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. The utility provides training opportunities to staff as needed and available. Personnel System Comments: Alakanuk is covered through Umialik Insurance Co. effective 2/08 to 2/09. Job openings are posted in at least three public places. The probationary period is three months from the date of appointment. The administrator provides on the job training for new employees and other training is given if funding is available. Organizational Management Essential Indicators Yes XWORKMN No ve 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 & & w 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. Organizational Management Comments: The City of Alakanuk is known to manage the utility. The city council meets regularly once a month. The administrator has been in his position for about two years and has received grant, QuickBooks, and RUBA utility management training. The city is currently without a bookkeeper. The water operator has Water Distribution 1 and Water Treatment | certifications. - 16- January — February — March 2009 3 Quarter FY09 - RUBA Report — Ot BERD Keport 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. ee eeteeeeseneensneseteeeneteneeeeeneenenenennnnnennmneeencet Sustainable Indicators The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Consumer Confidence Report (CCR). KX] 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. & HMWORKKR XN Operation of Utility Comments: The water operator has water distribution and water treatment certifications. Alakanuk Water System is on the significant non-compliance list. RUBA Activities For The Coming Quarter RUBA staff will monitor the utility and provide assistance when requested. -17- January — February — March 2009 3” Quarter FY09 - RUBA Report -18- January — February — March 2009 3 Quarter FY09 - RUBA Report Angoon Activity Report Community Overview Lead RUBA Staff: Lawrence Blood, Juneau Office ~~ 2007 Population: 478 Region: Southeast Local Government: 2" Class City od “3 of a 8 Angoon is located in Southeast Alaska on Admiralty er Island and is connected via the Alaska Marine Highway System. The City of Angoon operates and manages a piped water and sewer system. Surface water is derived from the Tillinghast Lake Reservoir, is treated, and piped throughout the community. The City of Angoon has operated a piped water system since 1977. Greater than 95% of homes have complete plumbing. Piped sewage is processed at a secondary treatment plant that flows to an ocean outfall. On a weekly basis, the city collects and deposits refuse at a municipal landfill located approximately two miles from Angoon. The Inside Passage Electric Cooperative (IPEC) provides electricity. RUBA Activity This Reporting Period RUBA staff has been in communication with city staff and provided telephonic assistance. Progress towards addressing deficient essential indicators has stagnated; the community continues to struggle with a marginal utility collection rate and obtaining an operator which is certified at the appropriate level. The Mayor feels that the collection rate is improving but additional improvement in the collection rate is difficult due to the current economy in Angoon. The Mayor has also been working on both training the back-up (volunteer) operator to achieve a level II water treatment certification and taking the initial steps of putting together a draft Alternate Method of Supervision Plan. He has contacted several level II water treatment operators who may provide utility supervision if the plan is approved. -19- January — February — March 2009 3" Quarter FY09 - 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. X The utility is current in paying all water/wastewater electric bills. Xl The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. & 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. & A monthly manager’s report is prepared. &] Budget amendments are completed and adopted as necessary. Finances Comments: The city completed their FY09 budget. The completion of the FY09 budget freed up funds being held by the state which were used to pay off some past debt owed by the city. These funds were used to purchase worker's compensation insurance and return to good standing with some creditors including the water testing lab. Accounting Systems Essential Indicators Yes No EX] 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. HXXX kw Sustainable Indicators XK A chart of accounts is used that identifies categories in a reasonable, usable manner. KK) 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- January — February — March 2009 3" Ouarter FY09 - RUBA Report EE RUD A Report Accounting System Comments: The city continues to struggle with enforcing collections on delinquent accounts. The city has taken some action and is attempting to follow the provisions contained in the utility ordinance and collection policy. As a result of this effort, the utility has increased their collection rate from 39% to 70%. A large number of accounts are still 90 days past due with a total outstanding accounts receivable in excess of $300,000. Tax Problems Essential Indicators Yes No X The utility has a system to accurately calculate, track, and report payroll tax liabilities. K] 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: With the turn-over in finance staff, the city was unable to locate any copies of their 941 filings. During a routine quarterly check with the Taxpayer Advocate Office for IRS compliance, RUBA staff discovered that the city had failed to make the required tax deposit for 4th Quarter 2007. 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. XX] The utility has adequate written job descriptions for all positions. KI The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. XX] The utility has an adequate written hiring process. &X 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. & The utility provides training opportunities to staff as needed and available. Personnel System Comments: The city currently carries workers compensation insurance through AML/JIA. The policy runs through 06/30/09. The policy covers work-related accidents and occupational diseases up to the Alaska statutory limits for each occurrence. The utility has well organized personnel files containing the necessary INS forms, IRS forms, acceptance letters and any disciplinary actions. The utility is lacking written job descriptions and a formal evaluation and hiring process. Hah January — February — March 2009 3” Quarter FY09 - 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. KX] The policy making body enforces utility policy. 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 XJ The utility has adopted an organizational chart that reflects the current structure. J] The policy making body meets as required. &X The utility complies with the “Open Meetings Act” for all meetings. MORWORN Organizational Management Comments: The city does not have a written organizational chart that reflects the current municipal structure. The city council meets as required and complies with the Open Meetings Act. The council is not enforcing the collection policy at this time. Operation of Utility Essential Indicators Yes No X The utility operator(s) are actively working towards necessary certification. Xl The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators &] The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. &X 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. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Consumer Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. psa 4) Da 4 054) January — February — March 2009 3 Quarter FY09 - RUBA Report eh AUDA Report Operation of Utility Comments: The utility is on the Significant Non-Compliance (SNC) list because it does not meet the Long-term | / Enhanced Surface Water Treatment Rule and was issued a notice of violation for failure to report the results of regular turbidity and chlorine monitoring and for failing to have an operator certified at the appropriate level. The violation concerning having an operator at the appropriate level has yet to be rectified. The city will need to either hire a certified level II operator or seek approval of an Alternate Method of Supervision Plan (AMOS). The city has taken the initial steps of putting together a draft Alternate Method of Supervision Plan and has contacted a level II water treatment operator at the Greens Creek Mine who may provide utility supervision if the plan is approved. The utility maintains very few critical spare parts and has an inadequate level of supplies and chemicals. The operators do not maintain an inventory control or critical spare parts list. The utility operators have expressed several concerns with safety including the physical condition of the water treatment plant, exposure to chemicals and the lack of communications outside of the city offices. RUBA Activities For The Coming Quarter RUBA activities for the coming quarter will include: providing support for increasing collection rates and pursuing delinquent water utility accounts. -23- January — February — March 2009 3” Quarter FY09 - RUBA Report -24- January — February — March 2009 3” Quarter FY09 - RUBA Report Atmautluak Activity Report Community Overview Lead RUBA Staff: Ken Berlin, Bethel Office on 2007 Population: 304 Region: Lower Kuskokwim Local Government: Traditional Council of Nosy ay po ee Residents haul treated well water, or water from the . Pitmiktakik River. Honeybuckets are hauled by residents to sewage bunkers. None of the homes has plumbing. The school is connected to the water plant. Funds have been requested to conduct a master plan for future infrastructure development, and to construct. RUBA Activity This Reporting Period Bethel RUBA staff contacted Atmautluak Traditional Council in March 2009 and sent/faxed a sample budget to them. No documentation supporting requirements for capacity indicators was received: therefore, those indicators are marked deficient until documentation supporting them is received. Atmautluak Traditional Council has hired an off-site financial accountant who is not submitting reports to RUBA or the council. RUBA has corresponded with the accountant and provided samples of formats for financial reports. As of this date, Atmautluak Traditional Council does not meet essential capacity indicators in the areas of finances, accounting systems, tax problems, personnel issues and organizational management. Until these indicator deficiencies are met, funding for sanitation upgrades may not be released. ' n an ' January — February — March 2009 3" Quarter FY09 - 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. 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. LJ The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators EX] 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 honey bucket container haul system, and washeteria/water treatment plant (WTP) are subsidized through gaming and sales tax revenue. The washeteria/water treatment plant gets fuel in exchange for water and sewer service from the Lower Kuskokwim School District. The WTP is getting free electricity from the tribally owned electric utility. Accounting Systems Essential Indicators Yes No EX] The utility has adopted a collection policy and actively follows it. X 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. X The payroll system correctly calculates payroll and keeps records &] Acash receipt system is in place that records incoming money and what it was for. XX The utility has a cash disbursement system that records how money was spent. Sustainable Indicators & 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. -26- January — February — March 2009 3 Quarter FY09 - RUBA Report — EE RUD A Report Accounting System Comments: The utilities are subsidized through sales tax and gaming. Accounting is done with QuickBooks Pro. ATC charges $30 per month for honey bucket haul but the collection rate is very low due to the high cost of other basic needs of residents. The collection policy is enforced as much as possible but the tribe is not aggressive in this area. Tax Problems Essential Indicators Yes No X The utility has a system to accurately calculate, track, and report payroll tax liabilities. XJ The utility is current on filing tax reports. 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 941 Ist quarterly report was filed but payroll taxes were not fully paid. State DOL/ESC Ist quarterly report has not been filed or paid. Earlier payroll tax deposits have not been paid, either. Previous contact with the tribe stated they were working with the IRS on these problems. Personnel System Essential Indicators Yes No X The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators kK) 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. 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 ki Personnel System Comments: The tribe has not sent RUBA a copy of their insurance certificate. The personnel policy is being amended. A personnel evaluation form is completed and annual evaluations will be conducted for each employee annually starting this year. -27- January — February — March 2009 3" Quarter FY09 - 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. J 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 Xi 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. XR Organizational Management Comments: ATC administrator has experience and is competent. The bookkeeper has been training on the job since last fall and appears to have a good understanding of the QuickBooks Pro system. Also, ATC administration and finance works closely with a consultant who travels to the village about every quarter. ATC adopted policies for the utility services. The collection policy is not enforced aggressively due to the economic hardships being experienced by residents due to the high cost of other basic needs. Ordinances (or rules and regulations) necessary to give the utility authority to operate are adopted. Operation of Utility Essential Indicators Yes No XK) 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 unresolved. : The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Consumer Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. Xl The utility maintains an inventory control list. X The utility maintains a critical spare parts list. X Rk We Xm Operation of Utility Comments: The SNC list shows violations in Stage 1 and Arsenic testing for the utility. -28- January — February — March 2009 3” Quarter FY09 - RUBA Report tc BE RODA Report RUBA Activities For The Coming Quarter RUBA recommends the ATC manager attend a RUBA Utility Management Training session and forward to RUBA copies of finance reports each and every month. RUBA staff will assist with IRS problems if requested. The utility needs to send in samples for Stage 1 and Arsenic testing to comply with water quality regulations. -29- January — February — March 2009 3" Quarter FY09 - RUBA Report - 30- January — February — March 2009 3” Quarter FY09 - RUBA Report Ekwok Activity Report Community Overview Lead RUBA Staff: Ralph Andrew, Dillingham Regional Office 2007 Population: 108 Region: Dillingham Local Governments: 2" Class City ed Individual wells provide water for the majority of the community. Approximately 20 HUD homes have individual wells and are connected to a piped septic system. The city operates a piped sewage system with sewage lift station, which connects to a portion of the community, roughly 16 residences. The remaining homes use septic systems or a flush/haul system. The city operates a sewage pumper. Roughly thirty six of 42 homes have complete plumbing. Landfill services are available at no charge. Ekwok Electric, a city-owned utility, provides electricity services. RUBA Activity This Reporting Period RUBA traveled to Ekwok March 31-April 2, 2009 to update the RUBA assessment, a special sanitation grant condition. RUBA staff is presently assembling a draft assessment report for city review which lists findings based on documentation received during the March/April visit. RUBA provided utility management assistance to city staff during the visit and was in contact with the Village Safe Water (VSW) engineer assigned to Ekwok during the quarter concerning deficient essential indicators; the engineer encouraged the city to address and resolve the indicators. City staff has been working to resolve deficient RUBA assessment indicators and continues to do so in hopes of ensuring access to state sanitation grant funding. -31- January — February — March 2009 3” Quarter FY09 - 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. 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. EX] 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. &] A monthly manager’s report is prepared. (J Budget amendments are completed and adopted as necessary. Finances Comments: The FY 2009 water/sewer budget is balanced and realistic. Water/sewer monthly financial reports do not presently appear accurate. RUBA offered assistance with assembly of accurate monthly reports and will update this report upon receipt of a current report. City staff reported that fuel supplies for the water/sewer utility are sufficient; roughly 250 gallons are required annually - a modest amount given the nature of the utility services focused on septic pumping services. Electric bills appear current; the city operates the electric utility and at RUBA's recommendation is closely monitoring the lift station power consumption to effectively gauge annual power use. Accounting Systems Essential Indicators Yes No I 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. KK Anaccounts payable system is in place. I 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 & Achart of accounts is used that identifies categories in a reasonable, usable manner. XX 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. January — February — March 2009 3” Quarter FY09 - RUBA Report January ~ February-March 20093 Quarter FYO9 - RUBA Report ) Accounting System Comments: Billing for septic pumping services appears timely however, RUBA awaits confirmation in the form of an accurate monthly financial report. Accounting systems appear improved for receivables however, RUBA awaits confirmation of an accounts payable system. The current status of collections are not confirmed. Presently, the city charges a septic pumping fee of $40 per load but does not charge for wastewater services - a connection to the sewage lagoon - a service that is provided to several homes in the community. RUBA will seek confirmation of consistent utility billing, payroll processing, and other bookkeeping tasks in the coming quarter and offered further onsite assistance upon request. Tax Problems Essential Indicators Yes No XX] The utility has a system to accurately calculate, track, and report payroll tax liabilities. &X 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: According to the IRS Taxpayer Advocate Service on April 3, 2009, the city is complying with some but not all federal tax obligations. RUBA offered assistance to city staff as they review federal tax obligations. RUBA recommends the city continue reviewing federal tax records to ensure obligations are being met. On April 7, 2009 the Alaska Department of Labor (DOL) confirmed the city is meeting Alaska ESC tax obligations for the quarter ending December 31, 2008. Personnel System Essential Indicators Yes No X The utili 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. XX] 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. KX] The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. y has a posted workers compensation insurance policy in effect. & 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. -33- January — February — March 2009 3” Quarter FY09 -RUBA Report oe Personnel System Comments: The city provided an employer's notice of insurance for Workers' Compensation showing coverage through July 1, 2009. The utility uses the city's personnel handbook, a comprehensive policy RUBA reviewed onsite during visits in prior quarters. The city ordinances include job descriptions for utility staff. 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. XX] 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 1] 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. Xekw Organizational Management Comments: The city council serves as the utility board and operates under a water/sewer ordinance. The ordinance is presently in review at the city; RUBA provided samples of more comprehensive ordinances published by the Regulatory Commission of Alaska. RUBA awaits confirmation from the city that collections and utility policy are being enforced. The administrator is trained, experienced in the role, and serves as utility manager. The electric utility manager is also trained and serves as the primary water operator and at last report is serving as mayor. RUBA seeks to confirm that the policy making body is holding regular meetings. -34- January — February — March 2009 3” Quarter FY09 - RUBA Report ——[{— oe EE ADA Keeport 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. ee 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 Xk km MRK Operation of Utility Comments: The city is not required to have a certified water operator or wastewater operator at this time. Sanitation utility staff are trained and experienced. RUBA recommends staff who provide septic pumping services receive basic training including safety procedures. A preventative maintenance plan is in place. RUBA recommends safety meetings be held regularly. RUBA Activities for the Coming Quarter: RUBA will continue offering assistance to the city with a focus on resolving deficient RUBA Essential Indicators. ' we n ' January — February — March 2009 3" Quarter FY09 - RUBA Report - 36 - January — February — March 2009 3 Quarter FY09 - RUBA Report Elim Activity Report Community Overview Lead RUBA Staff: Leroy Seppilu, Nome Regional Office 2007 Population: 309 ~ Region: Bering Straits Local Governments: 2™ Class City ed Water is derived from a well and is treated. BIA and “AN po HUD housing, and water and sewer systems built by Nt ge PHS in 1974, have provided residents with piped water and sewer, indoor water heaters and plumbing and in-home washers and dryers. Waste flows out to a sewage treatment plant with ocean outfall. The landfill is not permitted. The city needs a new water source, since water shortages occur and to replace cracked PVC pipes. RUBA Activity This Reporting Period New Nome RUBA staff made an on-site visit to the community this quarter. A former bookkeeper from Golovin is now the new bookkeeper for the City of Elim. She has a working knowledge of QuickBooks Pro and uses it on a daily basis. An attempt was made to set up a monthly financial report using an Excel spreadsheet and data exported from QuickBooks; however, data entry errors were discovered that needed to be corrected. -37- January — February — March 2009 3” Quarter FY09 - RUBA Report Capacity Indicators Finances Essential Indicators Yes & Xd & be & 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 ex penses. Sustainable Indicators & & 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: A monthly financial report is made using QuickBooks' Profit and Loss format. However, it only shows the monthly revenues and expenditures and year-to-date figures but does not include the budget. It also shows only items that have received revenues and expenditures, so budgeted line items without activity will not appear in the report. Accounting Systems Essential Indicators Yes RERR KRM 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. Ss i Xkm 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. -38- January — February — March 2009 3” Quarter FY09 - RUBA Report ——$——[ Orr ee Report Accounting System Comments: There were some accounting entries that were coded incorrectly. About $13,000 in revenue entries were entered into unassigned revenues. We spent quite a bit of time correcting those entries. New revenue and expenditure accounts were added to the existing chart of accounts. The bookkeeper is transitioning to a new computer that was recently purchased using water/wastewater utility funds. 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. &) If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The City of Elim is current with State and Federal deposits and reporting. 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. 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 &% we kX x Personnel System Comments: The City of Elim is currently insured by the Alaska Municipal League, Joint Insurance Association (AML-JIA) and in good standing for FY 2009. The city clerk keeps meticulous personnel records of all the city's employees, including water/wastewater utility department employees. -39- January — February — March 2009 3" Quarter FY09 - 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. J 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 XRORRRN 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 bookkeeper may need more training with QuickBooks, at the intermediate level. Although she is able to go link to link with ease, she had a lot of questions about how to use some of the QuickBooks sub-programs. The city council will need training with budgeting, council duties, utility management, etc. RUBA staff fielded a lot of questions about how budgets are prepared. Operation of Utility Essential Indicators Yes No Kl The utility operator(s) are actively working towards necessary certification. 4] 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 KKK & Operation of Utility Comments: The city has been fortunate to have certified water/wastewater utility plant operators on hand for years. The City of Elim's water/wastewater utility system is one of the oldest systems in the region. The west portion of the community recently had its water and wastewater mains completely replaced. -40- January — February — March 2009 3” Quarter FY09 - RUBA Report eee BEE AUDA Report RUBA Activities for the Coming Quarter: Nome RUBA staff will be providing a Newly-Elected-Official (NEO) training for the city council and staff, which will include water/wastewater utility budgeting, rate study and rate setting, etc. -41- January — February — March 2009 3” Quarter FY09 - RUBA Report eS A Report, Emmonak Activity Report Community Overview Lead RUBA Staff: Hazel Keezer, Bethel Regional Office 2007 Population: 796 ~ Region: Yukon-Kuskokwim Delta Local Governments: 2" Class City od The City of Emmonak owns and operates the piped “A po water/sewer system. The city also owns and operates eer 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 traveled in January of 2009 with Division of Community and Regional Affairs Director Tara Jollie and other state officials on a fact finding mission to Emmonak and Kotlik. Emmonak resident Nicholas Tucker wrote a letter requesting state assistance for local residents unable to meet the high costs of fuel and food. State officials heard testimony from many residents in both villages that are going through this hardship because of the King Salmon commercial fishery closures last summer coupled with the high costs of fuel and food. The impact of all this became more severe by the extreme cold spell in December and January. RUBA staff was contacted by the city mayor asking for an opinion regarding the Alaska Native Tribal Health Consortium (ANTHC) Alaska Rural Utilities Collaborative (ARUC) program. RUBA stated that Emmonak has been able to run the utilities on their own and that the city would no longer have control over their utilities if they joined. Emmonak to this date continues to run their own water and sewer utilities. City Manager Leon Kiana contacted the Bethel Office regarding electric and fuel bills and asked for assistance in researching possible funding sources for operations and maintenance bills. The manager stated the school district and fish processing plant had outstanding bills owed the city that were significant amounts. It was suggested that he contact the school and fishery for collections. RUBA provided additional assistance to Emmonak regarding elections question, economic development issues and possible reductions in staff or hours of city service. -43- January — February — March 2009 3” Quarter FY09 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No & All revenue and expenses for the utility are listed in the utility budget. &J = 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. 1 The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators {] The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. &] YTD revenues are at a level equal to or above those budgeted. &] YTD expenditures are at a level equal to or below those budgeted. {& A monthly manager’s report is prepared. &] Budget amendments are completed and adopted as necessary. Finances Comments: The city manager provided a copy of the city's budget in February of 2009. The budget was amended and adopted in December of 2008. The monthly financial reports received for January and February of 2009 show that budgeted line items were added. The council has not been given the monthly reports or the amendments that were made to the budget to show added expenditures. A winter fuel purchase of 8,111 gallons was made and delivered for the utility. A written manager's report has not been provided to the council. Accounting Systems Essential Indicators Yes No The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. &] An accounts receivable system is in place which track customers and reports past due accounts and amounts. An accounts payable system is in place. The payroll system correctly calculates payroll and keeps records A cash receipt system is in place that records incoming money and what it was for. The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators A chart of accounts is used that identifies categories in a reasonable, usable manner. Monthly bank reconciliation’s have been completed for all utility accounts. The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. X NMkkH c Hew -44- January — February — March 2009 3” Quarter FY09 - RUBA Report eee Ss port Accounting System Comments: The city manager contacted RUBA staff stating that the school and local fishery have delinquent accounts. The amounts owed has effected the city's ability to pay Alaska Village Electric Cooperative (AVEC). QuickBooks is used for payroll, accounts receivable, accounts payable and utility billing. A copy of the purchase order utilized was provided. Purchase orders require written approval from the manager or the bookkeeper. The purchase order form includes who requests the purchase, the department, account, and unit price. 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: IRS reported this quarter that the city was is compliant with filing and deposit requirements. There is no record of tax liens for the city. The Alaska Department of Labor reported that the city is current with state ESC tax requirements. Personnel System Essential Indicators Yes No &X The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators X The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. X The utility has adequate written job descriptions for all positions. X 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. & 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. X The utility provides training opportunities to staff as needed and available. Personnel System Comments: Emmonak is covered through Umialik Insurance Co. effective 7/08 to 7/09. They have adopted a personnel policy that includes sections for hiring, evaluation, and probation. Vacant positions are posted until filled. New hires are on a probationary period for three months. The city manager and city council have the authority to hire. The Emmonak city council screens and hires for the positions of police chief, clerk, treasurer and city attorney. ' a n ' January — February — March 2009 3" Quarter FY09 - RUBA Report ) Organizational Management Essential Indicators Yes No XRRRRR 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 y y 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: The City of Emmonak is known as the provider for water and sewer services and has adopted an ordinance that authorizes it to operate. The city manager position was filled recently. The bookkeeper worked in accounts payable prior to taking the position as the city's full- time bookkeeper. The water operator currently holds Water Distribution 2, Wastewater Treatment 1, and Wastewater Collection | certificates. There is no record of council meetings that were held in February. Operation of Utility Essential Indicators Yes No x 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 X XHMOKRR ke 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 listed on the Significant non-Compliance list for stage | violations. Monthly operator reports are not being submitted with sufficient data or ina timely manner despite repeated compliance assistance actions. A water and sewer operational manual was provided. The manual had daily and monthly systems routines in place. The water operator currently holds Water Distribution, 2 Wastewater, Treatment |, and Wastewater Collection | certificates. ~46- January — February — March 2009 3 Quarter FY09 - RUBA Report Ot EO RUD A Report RUBA Activities for the Coming Quarter: RUBA staff is available to provide assistance with any management capacity indicators that are not being met. -47- January — February — March 2009 3” Quarter FY09 - RUBA Report - 48 - January — February — March 2009 3” Quarter FY09 - RUBA Report — ee A Report Fort Yukon Activity Report Community Overview Lead RUBA Staff: Andy Durny, Anchorage Office 2007 Population: 591 ey. Region: Interior Local Government: 2" Class City ed Water is derived from two wells, is treated, and then . stored in an 110,000-gallon tank. A combination of Sone, ee piped water, water delivery and individual wells serves households. A flush/haul system, septic tanks, honey buckets and outhouses are used for sewage disposal. Approximately half of all homes are plumbed. The piped water system and household septic tanks were installed in 1984. The city has received funds to repair the piped water system (repairs are on going, as needed) and to construct a piped gravity sewer system which is expected to be completed in 2010. Additional funding will be needed to complete subsequent stages of the overall project. Electricity is provided by Gwitchyaa Zhee Utilities: waste heat from the electric utility may be available for the water/wastewater utility pending available funding and agreement between the utilities: it is recommended that this option should be actively pursued. RUBA Activity This Reporting Period Fairbanks RUBA staff traveled to Fort Yukon on March 31 to meet with the city staff and collect documentation to update the RUBA assessment. The city owns and operates a water/wastewater system that includes a small public laundromat, a piped water and wastewater system, and a flush/haul system. Operating expenses for the system are high but the city is able to generate sufficient revenues from user fees and from locally generated general funds. The city staff was very helpful in providing all documentation requested. RUBA staff was impressed with improvements in the financial recordkeeping and in the organization of the financial records. The improved recordkeeping processes should help the city to address significant challenges it will have to face in the next few years if expenses (particularly for fuel and electricity) continue to rise and if revenues continue to decline. The acting manager expressed some concern that the local electric utility will not be able to meet the increasing demands for electrical consumption with the existing generators. The city is looking at options for securing funding to get a new generator or to provide alternate energy sources. City Council Member Paul Shewfelt contacted RUBA requesting information regarding possible funding sources for a new power generator. He had some concerns that the generators currently in Fort Yukon will not meet all the needs of the water utility. He was referred to Alaska Energy Authority and also recommended that he discuss his concerns with the project engineer for the current Fort Yukon Water/wastewater project. RUBA staff will continue to maintain contact with the city and to provide assistance as needed. -49- January — February — March 2009 3” Quarter FY09 - 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. id 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. X 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. KX) A monthly manager’s report is prepared. & Budget amendments are completed and adopted as necessary. Finances Comments: The city adopted a balanced realistic budget that includes income and expenses for the utility. The budget shows that the utility does not generate sufficient revenues from user fees to cover all operating expenses, but that the city collects enough locally generated general fund revenues from other sources to cover the difference. The city treasurer provides regular monthly financial reports to the governing body that compare year-to-date income and expenditures to the budgeted amounts. The local power company confirmed that the city is current in paying its electric bills. The city purchases fuel for the water/wastewater utility from the local bulk fuel distributor. Fuel expenditures are higher than anticipated because of higher per/gallon cost and increased demand caused by longer than normal periods of extreme cold this winter, but fuel consumption is expected to decrease sharply in the remaining months of the current fiscal year. The utility has identified a repair and replacement fund. Revenues appear to be higher than anticipated, but expenditures are also higher than anticipated, especially for fuel, utilities, and gross wages. The city has made two budget amendments: additional budget amendments may be needed before the end of the fiscal year. Despite higher expenditures for fuel, utilities and other expenses, the city seems to be generating sufficient revenues to maintain a balanced budget. - 50 - January — February — March 2009 3 Quarter FY09 - RUBA Report P FF ee eport 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. XI 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. 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. & Monthly bank reconciliation’s have been completed for all utility accounts. X The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. Accounting System Comments: The accounting systems seem to be well organized, current, and in good order. The utility has a collection policy. The utility does not follow all the specific procedures of the collection policy, because of concern that disconnecting customer service during the winter months may result in operational problems (actual service disconnections are performed in the summer months). Nonetheless, the utility is active in trying to enforce collections. Customers are billed ona regular monthly basis and the utility mails out customer statements each month. The customer statements provide information regarding invoiced items, amounts billed, payments, and balances. The accounts receivable system tracks customers and reports current and past due accounts and amounts in a satisfactory manner: accounts receivable can be sorted by class (departments). The QuickBooks payroll system is used to correctly calculate payroll and maintain payroll records. All income received is recorded on sequentially numbered receipts in permanent receipt books, and income data is entered into the computerized system on a daily basis: the system identifies the source, amount, and purpose of each income transaction and posts the amounts to the appropriate department and line item. All expenditures are made by check (except for small petty cash expenses) and all checks are recorded in the computerized accounting system, where they are posted to the appropriate department and account. The city's chart of accounts has been streamlined so that it is easier to use and to understand. Bank reconciliations are completed on a regular basis and are up to date. The purchasing system includes the use of purchase orders which must be submitted and approved before purchases are made. January — February — March 2009 3” Quarter FY09 - RUBA Report Tax Problems Essential Indicators Yes No Xl 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. 4} If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: According to IRS and the Alaska Employment Security Division, the City of Fort Yukon is up to date with IRS and ESD tax reports and payments. 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. EJ 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 kK & &X Personnel System Comments: The current workers compensation insurance policy is in effect through July 1, 2009. The city has adequate job descriptions for most positions, however the job description for sanitation driver should be revised: as currently written, the job description for sanitation driver does not list specific duties, and it is unclear if this position is for driver of sewage haul equipment, solid waste haul equipment, or both. January — February — March 2009 3” Quarter FY09 - RUBA Report emer ee 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 MRXRRRR a) The utility has adopted an organizational chart that reflects the current structure. &X The policy making body meets as required. X The utility complies with the open meeting act for all meetings. Organizational Management Comments: The City of Fort Yukon owns and operates the water/wastewater utility. The city council is active in making utility policy and in attempting to enforce utility policy. As expressed elsewhere in this report, there is a concern about the ability to enforce the collection policy by disconnecting service in winter months: the city has tried to deal with this issue by implementing more aggressive collection procedures during the summer months. The city council may need to change some specifics of the collection policy to deal with collection issues and concerns. The city is in the process of hiring a permanent city manager, and will be considering applications for this position later this month. In the meantime, the city treasurer is serving as acting city manager until the position is filled. The city treasurer (and acting manager) is well organized has been doing a good job. I was impressed with the organization of the city's financial records. A copy of the organizational chart is on file. The city council meets on a regular basis and complies with the open meetings act. 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. ———— SSeS 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 XXX WN Xm January — February — March 2009 3” Quarter FY09 - RUBA Report Operation of Utility Comments: The water plant operator is working toward receiving Level 3 certification. The alternate operator has provisional certificates for wastewater collection and wastewater treatment that expire in 2010. According to the acting manager, the city holds periodic safety meetings (AML safety meetings). The City of Fort Yukon is not on the 2-11-09 SNC list. RUBA Activities For The Coming Quarter Fairbanks RUBA staff will continue to monitor and assist as needed, in particular by offering assistance with development of the FY-10 budget. -54- January — February — March 2009 3” Quarter FY09 - RUBA Report Goodnews Bay Activity Report Community Overview Lead RUBA Staff: Ralph Andrew, Dillingham Office 2007 Population: 235 Region: Dillingham Local Governments: Tribal Council ad The Native Village of Goodnews Bay operates a washeteria central watering point, provides for honey bucket haul, and has a sewage lagoon. The tribe, the policy making body for the utility, assumed water/sewer utility management from a community utility board in August 2005. Currently, treated well water is hauled from the watering point at the washeteria/clinic facility. Most homes are currently not plumbed. A piped water and gravity sewer system with plumbing for 70 + homes is under construction. The project funding is expected to plumb homes including installation of fixtures. RUBA Activity This Reporting Period The Native Village of Goodnews Bay continues jointly managing the water/sewer utility with the Alaska Native Tribal Health Consortium's Alaska Rural Utility Collaborative (ARUC). The RUBA Assessment of Management Indicators, a special sanitation grant condition, conducted for ARUC, is updated periodically to reflect the current status of RUBA indicators. The community water-sewer project, led by the Alaska Native Tribal Health Consortium (ANTHC), remains underway and is nearing completion. The city is reportedly staffing the washeteria which, according to ANTHC officials, will be closed upon final installation of plumbing into resident's homes and completion of the sanitation project next summer. January — February — March 2009 3” Quarter FY09 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No Kl All revenue and expenses for the utility are listed in the utility budget. &X 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. & 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. &X A monthly manager’s report is prepared. Xl Budget amendments are completed and adopted as necessary. Finances Comments: The utility budget is balanced and realistic. ARUC provides a subsidy when customer revenues fall short of expenditures; the subsidy is listed in ARUC monthly financial reports but it does not appear in the budget. ARUC staff produce monthly financial reports presenting year-to-date activity. According to ARUC reports, year-to-date water/wastewater expenditures exceeded revenues through February 2009 with the ARUC subsidy applied. RUBA maintained contact with ARUC during the quarter concerning their financial reporting methods. The utility is current on its electric bills and indicates fuel is sufficient for operations. Manager's reports are prepared, and budgets, in prior quarters, were amended as necessary. Accounting Systems Essential Indicators Yes No X The utility has adopted a collection policy and actively follows it. Xl The utility bills customers on a regular basis. &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 Xl A cash receipt system is in place that records incoming money and what it was for. Xl The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators QR A chart of accounts is used that identifies categories in a reasonable, usable manner. & Monthly bank reconciliation’s have been completed for all utility accounts. X The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. January — February — March 2009 3 Quarter FY09 - RUBA Report ———— — OEE Eee port Accounting System Comments: The ARUC bills customers consistently. ARUC operates under an agreement with the village council and a water/sewer ordinance that includes a collections policy. ARUC maintains a workers compensation policy and uses computerized accounting to monitor and track finances. ARUC maintains accounting records including accounts payable, receivable, and payroll under direction of a utility manager based in their central office in Anchorage. ARUC maintains a chart of accounts, reconciles bank accounts, and utilizes a purchasing system that requires approval prior to purchase. 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. x) 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: According to the IRS Taxpayer Advocate Service on December 30, 2008, the ARUC is meeting its federal tax obligations. On April 7, 2009 the Alaska Department of Labor (DOL) confirmed ARUC is meeting Alaska ESC tax obligations for the quarter ending December 31, 2008. Personnel System Essential Indicators Yes No & The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators a} 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 WR Rw & Personnel System Comments: Workers compensation insurance coverage, purchased for ANTHC through Alaska National Insurance Company is reportedly current until October 1, 2009. ARUC abides by a comprehensive personnel policy, maintains personnel folders, utilizes a probationary period for new hires, and provides training opportunities to staff. January — February — March 2009 3” Quarter FY09 - RUBA Report Organizational Management Essential Indicators Yes XMMNMNKR 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 w & 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: ARUC oversees water/sewer utility management with the village council through a written, contractual agreement, and actively enforces utility policy. According to the agreement, ARUC is to meet with an advisory council that includes representation from the community. A water/sewer ordinance is in place. ARUC continues managing utility billing and collection services. The water operator is trained. Operation of Utility Essential Indicators Yes P| &X 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 Xi KXNMOKRKH Wk 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. Xl January — February — March 2009 3” Quarter FY09 - RUBA Report OO A Keport Operation of Utility Comments: The primary water operator possesses required certification. The operator utilizes a preventative maintenance plan and provides reports to the ARUC utility manager. According to an Alaska Department of Environmental Conservation (ADEC) report dated February 11, 2009, the utility is presently on the SNC list for failure to submit a waiver renewal for SOC/OOC. RUBA recommends resolution of the violation in accordance with recommendations advised by ADEC. RUBA Activities For The Coming Quarter RUBA will maintain contact with the Native Village of Goodnews Bay and ARUC as they strive to maintain compliance with sanitation grant conditions. January ~ February — March 2009 3” Quarter FY09 - RUBA Report le A ed - 60 - January — February — March 2009 3 Quarter FY09 - RUBA Report Ee REDE BEPOTE Huslia Activity Report Community Overview Lead RUBA Staff: Jeremy Johnson, Fairbanks Office 2007 Population: 255 Region: Interior Local Governments: 2" Class city ad The city council operates the piped water and sewer system and maintains a central watering point where residents come to haul water to their residences. The city also maintains a sewage lagoon and a solid waste site. The city council is the policy making body for the utility. RUBA Activity This Reporting Period On March 5-6, 2009, Fairbanks RUBA staff member Jeremy Johnson met with Huslia city staff to complete a RUBA Assessment of Management Capacity Indicators. The results of that assessment are documented below. =61- January — February — March 2009 3 Quarter FY09 - 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. Kl 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 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. X YTD expenditures are at a level equal to or below those budgeted. & A monthly manager’s report is prepared. Xx Budget amendments are completed and adopted as necessary. Finances Comments: The Huslia Water Development (utility) budget, which is separate from the city budget, is concise. All revenues and expenses are listed and the budget is balanced. The utility receives revenue from three sources and is projected to end the fiscal year $800 over budget. Revenue is received from the water and sewer customers, which currently is at 48% of the budgeted income. The second source of income is from the washeteria for washing clothes and personal showers (there are no dryers and the system was not designed to include them: 'too expensive’ was the rational). The third and final revenue source is from the State of Alaska revenue sharing program which the city passes through to the utility. The city budget has allocated $34,000 to go to the utility to cover fuel and PERS expenses. That transfer has not yet occurred but according to the city's financial reports, the money is available for the spring fuel barge. As the city has not transferred the money to the utility, RUBA is unable to justify stating that revenues are equal to or above those budgeted. When the city provides the financial assistance, the utility will be able to show that revenues are equal to or above the budget and the sustainable indicator will change to reflect that. At the moment, bills do not include an amount designated for repair and replacement, although the utility receives funding from the city sufficient to cover these costs; a copy of the city's budget is also on file in the Fairbanks office. The city administrator stated that a new rate structure was going to be proposed to the city council for adoption by July 1, which will include $5 for repair and replacement. The new rate amount has not yet been determined by the administrator. Previously, there was a repair and replacement fund of $15,000 which was used for the old water facility. A new facility was brought online in October 2008; the city has yet to accept official ownership. Except for the necessary revenue transfer described above, the revenues and expenses are at the levels budgeted. This assessment was completed on March Sth, which is about eight months into the fiscal year: this would mean the utility should be at about 66% of the budgeted line item amounts. They are at 68% of the budget. The financial reports indicate they are at 48% of the budget but that is because the fuel appropriation has not been transferred from the city budget as the spring barge has not delivered fuel. The city currently has the necessary funds to transfer. The administrator provides a monthly verbal report to the city council but does not provide printed financial reports or a manager's narrative. She stated that the financial reports are provided quarterly. RUBA recommends that the printed financial reports be given to the council members at every meeting. The summary of the verbal report is recorded into the meeting minutes, of which a copy is on file in the Fairbanks RUBA office. -62- January — February — March 2009 3” Quarter FY09 - RUBA Report ——_——— eee a tt epee Within the next six months, RUBA recommends that printed reports which show the budget compared to monthly activity and year to date information are provided to the council. The utility operator provides verbal reports to the administrator, who then gives a verbal report to the council. As with the financial reports, written reports are recommended. Accounting Systems Essential Indicators Yes No The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. An accounts receivable system is in place which track customers and reports past due accounts and amounts. An accounts payable system is in place. The payroll system correctly calculates payroll and keeps records A cash receipt system is in place that records incoming money and what it was for. The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators A chart of accounts is used that identifies categories in a reasonable, usable manner. Monthly bank reconciliation’s have been completed for all utility accounts. The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. XRKR RRM i XR Accounting System Comments: The utility is active in enforcing the collection policy, of which RUBA has a copy. Previous RUBA assessments have reported the collection rate for Huslia to be 95%. When reviewing the A/R aging summary report, it appears that the average collection rate for the last three months is 82%. The utility does not shut off customers in the winter because the lines would freeze and rupture; it is expected that during the winter collection rates would dip because enforcement is delayed. This is not to indicate that enforcement is lax or not occurring. The utility is equipped to disconnect homes with a shut off valve at the residence (digging up the main is not necessary) and uses a collection agency for problem accounts. Upon reviewing the customer accounts, it is evident that many customers prepay for the service. The utility has an adequate accounting system with QuickBooks. Bills are distributed the third week of every month. The city administrator, who is also the utility clerk, receives customer payments, issues a handwritten receipt from the bound receipt book and at the end of the week (either Thursday or Friday) she enters the payments into QuickBooks. -63- January — February — March 2009 3” Quarter FY09 - 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. 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: Both the Alaska Department of Labor and the Internal Revenue Service deem the city and utility compliant. With a small staff, longevity of employees, and accurate filing of reports, the employer's contribution to ESC is at 1%. This is a very low contribution amount and is a result of accurate and timely filings. 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. & The utility provides training opportunities to staff as needed and available. X kM Ww Personnel System Comments: The utility has a workers compensation policy posted in the city office through AML-JIA and it expires on July 1, 2009. AML also assisted in the creation of the personnel policy manual which was shown to me for review. I did not make copies, as the manual is large and the copier is slow but upon review it supports the sustainable indicator. A copy of the janitor’s job description and a copy of the water operator's task list (daily through annual duties) were obtained. The utility only has the above mentioned two employees. A job description and the evaluation for the operator were not secured because the employee files containing that data were not accessible at the time of the assessment. The longevity of the staff contribute to a superbly run office. The second day of the assessment marked the 29 year anniversary that the administrator has worked for the city. In the event that punitive personnel discussions are necessary, the city council meets in executive session with the employee. For day to day personnel issues, the city administrator meets with the employees. Training opportunities are available to staff. The water operator receives training to maintain the required certifications and the city administrator has attended RUBA classes. -64- January — February — March 2009 3 Quarter FY09 - RUBA Report — et RDA 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 x The utility has adopted an organizational chart that reflects the current structure. 4] The policy making body meets as required. &X The utility complies with the open meeting act for all meetings. XHRRRRRR Organizational Management Comments: The city owns the utility as established in ordinance. Currently, there are two washeterias and water treatment facilities. As stated previously, a new system was built and brought online in October 2008 but that system is still in the final phases of being signed over to the city. The city plans on shutting the older facility down this summer. The city council is the policy making body for the utility and is active in making policy and enforcing the current policy (this is supported by a high collection rate). The utility manager and bookkeeper functions are fulfilled by Elsie Vent who is also the city administrator. She is highly capable; the office is extremely organized, she has been employed by the city for a long time, she has attended previous RUBA classes and the books for the utility are in order. A copy of the utility ordinance, which gives it the authority to operate, is on file in the Fairbanks office . The city council, as the utility policy making body, meets monthly and the meetings are open to the public. A copy of the organizational chart was hanging on the city wall and a photo copy was made. The utility has two employees and the city has three employees, it is a very streamlined organization. There are two gentlemen who are training to become certified water operators to work as on-call alternates. -65- January — February — March 2009 3” Quarter FY09 - 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. be XRRXRRX WN Operation of Utility Comments: The operator, Emil Sam, is currently certified with water treatment and distribution level | certificates which expire December 31 2009 and 2010, respectively. He also has a wastewater collection OIT certificate and that expires the end of 2010. There are two alternate operators, Daryl Sam and Mike Simon, who have their OIT certificates in treatment and distribution and are currently going through the process to become level | certified to work as needed. A preventative maintenance plan was created in 2001 (it is a 20 year plan) by the engineering firm Montgomery Watson. This plan is large and a copy was not made but it was inspected by RUBA, it is currently housed next to the administrator's computer for easy access. The operator provides frequent updates to the manager both in person and over the phone. The manager/administrator then reiterates the information to the council at the monthly meetings. Both reports are provided orally and the summary is recorded in the meeting minutes. The administrator attends safety meeting telephonically and then mails the lesson to each employee. The new utility is functioning as designed except that the administrator mentioned the new wells have frozen in the extreme cold. The wellhead is not located inside the treatment facility, as is the case with the old utility. It is the opinion of the administrator that this is a design flaw. The temporary freeze has not yet effected production. As the structure has not been signed over from ANTHC, negotiations to work out the kinks are occurring. The utility has an inventory and critical spare parts list for the old plant but the new lists are still being created. Devan Currier, ANTHC engineer, said in a phone call that he is creating them for the new plant. The administrator creates the CCR and the utility is not on the SNC list. RUBA Activities For The Coming Quarter The city currently meets all RUBA essential indicators and most sustainable indicators. Fairbanks RUBA staff will continue to provide support telephonically or otherwise at the community's request. - 66- January — February — March 2009 3 Quarter FY09 - RUBA Report — rer re A Report Kwethluk Activity Report Community Overview Lead RUBA Staff: Ken Berlin, Bethel Regional Office 2007 Population: 192 Region: Dillingham Local Governments: Tribal Council ad The City of Kwethluk operates the water treatment plant, washeteria, garbage collection, and the honey-bucket haul system for the community. The City of Kwethluk, along with the Sanitation Committee, is the policy making body for the utility. A new washeteria/water treatment plant is still under construction through Alaska Native Tribal Health Consortium (ANTHC) engineering services. The school and teachers’ housing have their own water sewer systems. There are honeybucket bins located sparingly throughout the community for the container haul system; these are hauled to the sewage lagoon on a regular basis. Very few homes have running water or plumbing for showers, but many residents have sauna/steam bath houses. RUBA Activity This Reporting Period Bethel RUBA staff maintained contact with Kwethluk and received the monthly finance reports through January 2009. Review of these finance reports shows Kwethluk to continue meeting finance essential indicators. The City of Kwethluk Sanitation Committee holds regular monthly meetings and provides the RUBA office with copies of their meeting minutes. -67- January — February — March 2009 3” Quarter FY09 - 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. 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. 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: The FY 2009 budget is balanced and adopted. RUBA has been provided copies of finance reports through January 2009. Electric bills are paid when received and fuel was ordered for the washeteria and other city buildings. As noted above, the fuel was ordered and paid for but not delivered due to an icing problem. Fuel may have to be flown in at great expense which may effect the revenues for the utility. Accounting Systems Essential Indicators Yes No X The utility has adopted a collection policy and actively follows it. Xl The utility bills customers on a regular basis. x An accounts receivable system is in place which track customers and reports past due accounts and amounts. Kl An accounts payable system is in place. A) 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. x The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators RX 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. - 68 - January — February — March 2009 3 Quarter FY09 - RUBA Report — OE ERD A Keport Accounting System Comments: The city has a collection policy and the council is now enforcing it. Billings go out ona monthly basis and honey bucket bins are taken away from customers who do not pay their bills. The accounts receivable and accounts payable systems are verified by documentation. Tax Problems Essential Indicators Yes No &) The utility has a system to accurately calculate, track, and report payroll tax liabilities. 4} 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: Copies of all quarterly reports and tax deposits are on file in the Bethel office. The IRS and Department of Labor have deemed the utility compliant with 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. &X we Ww x Personnel System Comments: Documentation of workers compensation insurance has been verified with the state, however, a copy of the Employer's Notice of Insurance has not been provided by the City of Kwethluk. The personnel policy, job descriptions, evaluation process, hiring process, probationary and training are on file. Administration needs to go through each employee personnel file and make certain all contain the required documents. -69- January — February — March 2009 3” Quarter FY09 - 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 ® 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. NMMXKKKR Organizational Management Comments: The ordinance establishing the utility is on file and is now being enforced. The utility has a trained manager, bookkeeper and operators with certification. A utility clerk position is going to be posted and hired by September. 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 i} The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. ® The utility has a safety manual and holds safety meetings. Xl) Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. Kl 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. X The utility has completed and distributed its Community Confidence Report (CCR). x) The utility is not on the Significant Non-Compliance (SNC) list. X The utility maintains an inventory control list. X The utility maintains a critical spare parts list. Operation of Utility Comments: A copy of the preventative maintenance plan was obtained by RUBA on 8/22/07. The critical spare parts list is on file. RUBA Activities For The Coming Quarter RUBA will continue to monitor finance reports and other essential indicators. -70- January — February — March 2009 3” Quarter FY09 - RUBA Report ———— eee AUDA Report Kwigillingok Activity Report Community Overview Lead RUBA Staff: Flora Olrun, Bethel Office 2007 Population: 361 Region: Bethel Local Government: Tribal Council ed . Os The Village Council operates the central watering point ey and washeteria. Water is currently derived from snow and ice melt and a lake reservoir, is treated, and hauled by residents from the washeteria. Water shortages are common. The school operates its own surface water treatment facility, but shares a sewage lagoon with the washeteria. Homes are not plumbed. Honey buckets are disposed of by residents. Infrastructure improvements are underway to develop a community system. RUBA Activity This Reporting Period The Native Village of Kwigillingok's fiscal year is on the calendar year. They have not submitted a budget for FY 2009. They have submitted financial statements up to month ending December 2008. They have worker's compensation insurance coverage with Alaska National Insurance Company until May 9, 2009. The Kwigillingok Washeteria is on the Environmental Protection Agency's Significant Noncompliance List which was dated January, 2009. They are compliant with IRS and employment security taxes. Kwigillingok has not met all essential management capacity indicators. -71- January — February — March 2009 3” Quarter FY09 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No &] All revenue and expenses for the utility are listed in the utility budget. XX] 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. X 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. ee Sustainable Indicators &) The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. {& YTD revenues are at a level equal to or above those budgeted. Kl YTD expenditures are at a level equal to or below those budgeted. Xl A monthly manager’s report is prepared. X Budget amendments are completed and adopted as necessary. Finances Comments: Kwigillingok has not submitted FY 2009 budget. They use the calendar year. The budget for FY 2008 did not contain the subsidized revenue source of heavy equipment rental income, however that information was contained in a separate document. The budget also 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 FY 2008 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 for the month ending December 2008. Without current monthly financial statements actual YTD revenue and expenses can not be analyzed. January — February — March 2009 3” Quarter FY09 - RUBA Report ——— en BU RODA Report Accounting Systems Essential Indicators Yes No & The utility has adopted a collection policy and actively follows it. Xi The utility bills customers on a regular basis. XK An accounts receivable system is in place which track customers and reports past due accounts and amounts. XK An accounts payable system is in place. Xl 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 XK A chart of accounts is used that identifies categories in a reasonable, usable manner. Ds) Monthly bank reconciliation’s have been completed for all utility accounts. &) The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. Accounting Comments: The utility has a collection policy and actively follows it. When customer's 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. &X 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: According to Alaska Department of Labor and Workforce Development Kwigillingok is current with state ESC requirements. Kwigillingok is current on their Internal Revenue Service deposits, reports and there is no lien against them. -73- January — February — March 2009 3” Quarter FY09 - RUBA Report Personnel System Essential Indicators Yes X The utility has a posted workers compensation insurance policy in effect. Sustain & Kh XX NH X able 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: 1-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. The utility provides training opportunities to staff as needed and available. Personnel System Comments: Kwigillingok IRA submitted a copy of their worker's compensation insurance coverage which is valid until May 9, 2009. 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-9's. 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 HNKNKXK 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. -74- January — February — March 2009 ~ 3 Quarter FY09 - RUBA Report —— eee ee Kept 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 has worked a little over a year and transferred from the Yukon Kuskokwim Health Corporation where she worked in payroll. The Laundry Operator has worked for Kwigillingok for approximately two years. The bookkeeper and utility operator attends training sessions when they become available. Utility Ordinance number 2005-10-01 was submitted to the Bethel regional office as was an organizational chart, which is reflective of the current structure. These documents are in the community file. Operation of Utility Essential Indicators Yes No 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 X The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. The utility has a safety manual and holds safety meetings. X Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. 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 XRXKOR January — February — March 2009 3” Quarter FY09 - RUBA Report Operation of Utility Comments: The Native Village of Kwigillingok operates the laundromat. The water supply from the watering point in the laundromat is not safe for human consumption and there are signs posted throughout the community, including private homes. The signs prohibit the use of the water for drinking, and provide instructions 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 Noncomplier List for monitoring and failing to collect samples. They may be able to return to compliance by June, 2009. 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. Kwigillingok is on the Significant Non-Compliance list which is dated for January, 2009. RUBA Activities For The Coming Quarter Continue to work with the Utility Manager on deficient management indicators. Kwigillingok is on a calendar year and is still working on their 2009 budget. As soon as they have an approved 2009 budget the utility manager can catch up with monthly financial reports. - 76 - January — February — March 2009 3” Quarter FY09 - RUBA Report — — — —— — — eeOOcSS Se re ort 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 January 7, 2009, RUBA staff traveled to Larsen Bay to assist the city in meeting the RUBA essential management indicators and the end of year reporting requirements. During the onsite visit, RUBA staff worked with the city clerk, billing clerk, mayor and various council members on a variety of tasks. The FY09 budget was entered into the QuickBooks accounting program so that a monthly budget vs. actual financial report can be presented to the council. The FY08 Certified Financial Statement, quarterly Department of Labor, federal 941, and grant reports were also completed, as well as the end of year W-2's. The city requested additional onsite assistance; a RUBA agreement and work plan to revise the current ordinances and continue training for the city and billing clerks will be drafted and presented to the mayor for his signature. It is a pleasure to report after many years of high employee and council turnover, the City of Larsen Bay has stabilized and is currently meeting all the RUBA essential indicators. -77- January — February — March 2009 3” Quarter FY09 - 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. Xi The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators EX 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. XR Finances Comments: The City of Larsen Bay drafted and adopted a FY 09 budget with RUBA assistance. RUBA staff assisted the city clerk/billing clerk in entering the FY09 budget within QuickBooks and trained the clerk with preparing the proper financial reports which are submitted to the council monthly. The interfaculty bills are being paid on a quarterly basis to allow accurate tracking of all expenses. In the fall of 2008 the City of Larsen Bay received a fuel order of approx. 40,000 gal of #1 diesel fuel for the generators and heavy equipment. Although water and sewer revenues are not sufficient to cover operating expenses, the city subsidizes its water and sewer utility through the electric sales. This subsidy is listed as a line item on the budget. Manager/ operator reports are given verbally when requested from the council: however the operator has daily contact with the mayor and/or city clerk. Accounting Systems Essential Indicators Yes No X The utility has adopted a collection policy and actively follows it. Xl The utility bills customers on a regular basis. & 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. XxX 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 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. -78- January — February — March 2009 3 Quarter FY09 - RUBA Report ee ee eporrt 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 5th of every month in accordance to the city’s billing and collection policy. Monthly bank reconciliations are completed for each bank account then printed and filed for historical data. The city’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 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 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 mail to the IRS on time. As of 2/10/09 the city has not received any non-compliance notices from the IRS or DOL. Personnel System Essential Indicators Yes No xX 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. XK &® RX RW -79- January — February — March 2009 3" Quarter FY09 - RUBA Report Personnel System Comments: The City of Larsen Bay has a posted workers’ compensation insurance policy in effect from 7/1/08 to 7/1/09 with AML/JIA. On December 9, 2008 the city council adopted a personnel policy. The city has contacted AML/JIA to request a review of the personnel policy. 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. However, the Larsen Bay City Council with RUBA assistance, has drafted a personnel policy that the council is currently reviewing as well as a thorough review and revision of all job descriptions and personnel folders. 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 NXXRNRK X The utility has adopted an organizational chart that reflects the current structure. X The policy making body meets as required. X The utility complies with the open meeting act for all meetings. Organizational Management Comments: The City of Larsen Bay is known as the entity that owns and operates the utility, and is active in policy making for the utility. The city clerk, with the council’s 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 | test. - 80 - January — February — March 2009 3” Quarter FY09 - RUBA Report — eee EE RUDA 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 a) 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. 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. Kl x) The utility has completed and distributed its Community Confidence Report (CCR). &X The utility is not on the Significant Non-Compliance (SNC) list. KX] The utility maintains an inventory control list. XX] The utility maintains a critical spare parts list. 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 AML/JIA monthly safety meetings. The current utility operator is trained and can run the system and has passed the Provisional Level | 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 had requested a RUBA assistance agreement. RUBA staff drafted an agreement and workplan for the council which was accepted. RUBA staff will continue onsite visits quarterly to assist the community to meet all of the unmet management indicators. -81- January — February — March 2009 3” Quarter FY09 - RUBA Report -§82- January — February — March 2009 3” Quarter FY09 - RUBA Report ———— RUD A Report Metlakatla Activity Report Community Overview Lead RUBA Staff: Lawrence Blood, Juneau Office 2007 Population: 1397 Region: Southeast Local Government: Indian Reservation od Metlakatla Indian Community (MIC) provides piped water v Fethne oe AO” and piped gravity sewer to the community residents. Most homes are on the main water supply, which is fed from the Chester Lake complex. The main island and airport are supplied through the Yellow Lake complex, but this line is not maintained or treated and a warning was posted to that effect. RUBA Activity This Reporting Period Juneau RUBA staff traveled to the community and completed a RUBA assessment of management capacity indicators. The Metlakatla Indian Community has successfully met the criteria for all of the essential capacity indicators. - $83 - January — February — March 2009 3” Quarter FY09 - 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. & 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. &X YTD revenues are at a level equal to or above those budgeted. XK 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 fiscal year for the community is October | through September 30. By March | of each year, a budget committee including the mayor, treasurer and two council members at large meet to prepare a preliminary budget for submission to the council. The mayor presents the preliminary budget with a detailed justification for each line item submitted at the first regular council meeting in May. No later than the first regular council meeting in July, the council adopts its final budget. If the council fails to adopt a final budget, the previous fiscal year's budget is in effect until a new budget is adopted. The water, sewer and solid waste budgets are included in the general fund budget. The general fund is the primary operational fund for the community and is used to record activities which are not funded by federal or state grants. Governmental activities included in the general fund are general government administration, public safety, public works, health and social services and business-type activities. The business-type activities include the Smoke Shop, water bottling, cable TV, gaming activities, hatchery operation and harvest, fish packing, and boat loans. Upon comparing prior year revenue and expenses to current year projections, the budget appears to be justified and realistic. The treasurer makes verbal financial reports to the council on a monthly basis. Meeting minutes verify that written reports are provided at quarterly finance committee meetings. Utility finance reports do not compare budget projections against actual expenditures. As a condition for satisfying the monthly financial report essential indicator, the treasurer will enter utility budget information into the accounting system. This will make it possible to provide budget versus actual financial reports to the council. The community depends primarily on hydro-electric power provided by Metlakatla Power and Light which has the benefit of lowering utility expenses. Most community facilities are heated using electricity. The community does have a back-up diesel generator to guarantee continued utility operations during power outages. A visual inspection of the most recent electricity billings verifies that the utility is current with all electricity accounts for the water and wastewater systems. The community has a bulk fuel facility owned by Annette Island Gas which is sufficient to meet the community's needs. The utility maintains small fuel storage tanks and purchases fuel from Annette Island Gas as needed. The community offsets the cost of providing water, sewer, and garbage services to the local population by charging a combined rate of $45 per month for water, sewer, and garbage. Apartment complexes, senior housing and other quarters are charged specific rates depending on their size. A flat business rate of $59.40 per month is charged for all businesses regardless of size or amount of water used. This includes large water users -84- January — February — March 2009 3” Quarter FY09 - RUBA Report ——_ — atc EUS ~ RUBA Report such as school district buildings, Annette Island Packing Company and the water bottling plant. Utility rates have not been reviewed or adjusted in over four years. Utility related expenses exceeded revenues by over $200,000 in fiscal year 2008; however, the governing body elects to subsidize the water, sewer, and solid waste services with general funds. The primary source of general fund subsidy comes from community gaming activities. The general fund subsidy is stable and sufficient to cover operating expenses and repair and replacement (R and R) costs. Budget amendments are made throughout the year. The mayor is authorized by ordinance to modify the budget by redistribution of funds from one line item to another provided that no modification may reduce an item by more than ten percent or exceed two percent of the total budget. Larger amendments must be approved by the council. Accounting Systems Essential Indicators Yes No a} The utility has adopted a collection policy and actively follows it. &X The utility bills customers on a regular basis. xX 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. XK 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. X The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators XK 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. a} The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. Accounting Comments: The community has adopted three different collection policies which are contained in the Metlakatla Law and Order Code, Title 5, Chapter 6 for water service, Chapter 7 for wastewater, and Chapter 8 for solid waste. The community follows the collection policy and actively pursues delinquent utility accounts. The collection policy is somewhat flexible and contains several discretionary methods for collection of past due accounts. The community does not favor water service disconnection and will do so only as a last resort. One successful collection tactic used by the utility is to discontinue a customer's cable TV service until the water utility bill is paid. The utility also uses Permanent Fund Dividend (PFD) assignments and has used the tribal court system to enforce collections with some customers. The utility bills customers each month in the form of a statement which includes water, sewer, trash and cable TV. Water, sewer and trash fees are a combined charge with cable TV being listed separately on the statement. The statement clearly shows both current and past due amounts but fails to provide a due date. The utility sends out delinquency notices ten days after an account becomes delinquent. The community is currently using a source code based accounting software by Timpanogas Technologies. The software was originally intended for educational entities. The finance staff seems to be happy with the program and experiences few problems. The finance officer and treasurer both report that the software has adapted well to meet the needs for local government use, such as utility billing. The Timpanogas Technologies software is used for accounts receivable, accounts payable, and payroll. The Timpanogas software is relatively old but the company continues to support the software with updates and provides annual IRS Circular E updates. It calculates, tracks and reports payroll correctly and meets payroll reporting requirements for Alaska. 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 1-30 days, 30-60 days, 60-90 days, and over 90 days past due. The aging report fails to provide a cumulative total for all accounts. The community uses a purchase order system for all purchases and maintains a cash disbursement system to -8 n January — February — March 2009 3 Quarter FY09 - RUBA Report track expenditures. Department heads complete purchase orders which are then submitted to the purchasing department for an approval after it has been compared with remaining budgeted funds. The invoice is attached to the appropriate purchase order and checks are issued once a week. The Chart of Accounts provided to RUBA uses a ten digit number system. The finance director is comfortable with it and has used it successfully for several years. The treasurer completes monthly bank reconciliations and reports reconciling all bank accounts through February 2009. Tax Problems Essential Indicators Yes No Xl The utility has a system to accurately calculate, track, and report payroll tax liabilities. X The utility is current on filing tax reports. & 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: On 3/25/2009 the treasurer 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). RUBA staff visually inspected the community's last four form 941 employer's quarterly federal tax returns and verified electronic debits. The last four 941s were filed timely. The community has not received any correspondence from the Internal Revenue Service (IRS) or from the Alaska Department of Labor and Workforce Development (ADOLWD) regarding noncompliance within the last year. Personnel System Essential Indicators Yes No X The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators XK) The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. Xi 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. &X 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. Hk - 86- January — February — March 2009 3” Quarter FY09 - RUBA Report — EE RDA Report Personnel System Comments: Current coverage for workers compensation insurance was verified through Alaska National Insurance Company. The policy is effective from 10/1/08 through 09/30/09. The community has a well established and implemented personnel management system including an adopted personnel policy handbook. Every employee is required to submit a signed statement that they have read and understand the handbook. The 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 community 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 expressly outline each employee's required duties. However, according to the employee handbook, employee job descriptions are purported to be just guidelines. The handbook sets the expectation that the job descriptions will normally change over time and are not fixed community policy. Employees are expected to perform duties and handle responsibilities that are not part of their normal job. The community provides a rudimentary annual evaluation for all employees which are only loosely related to the employee's actual job description. The simplified performance appraisal is a one page preprinted form that uses a scale of one through five to evaluate work quality, productivity, job knowledge, reliability, attendance, independence, creativity, initiative, adherence to policy, interpersonal relationships, and judgment. There is inadequate space for the supervisor to provide meaningful written feedback concerning their job performance. The community has a personnel officer who remains involved throughout the entire hiring and firing process. A prescribed hiring and termination process is defined in the personnel policy and in Title 5, Chapter 9 of the Metlakatla Law and Order Code. All personnel are employed as ‘at-will' employees. The utility advertises job positions internally first. If the position remains vacant, it is then advertised locally. The community follows Public Law 93-638, Section 7, (b) which allows for a native hiring preference. The community gives preference to Alaska Natives and American Indians in all phases of employment and training which includes but is not limited to: hiring, promotions, transfers, and training opportunities. The community gives further hiring preference to Metlakatla Indian Community members and spouses of members. The community keeps records relating to employees in a personnel file. The personnel files are well organized and contain all the necessary employee documents. The community has received significant deficiency findings on their annual financial audits over the last few years for not having I-9 employment eligibility forms in the personnel files. The personnel officer satisfactorily explained that by community policy, certain records are kept in separate files, such as records relating to I-9 requirements. All files connected with an employee are considered strictly confidential, and are kept in a secure room and in a locked filing cabinet. The personnel officer 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 last 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. Formal training opportunities are limited and are provided to employees only when funding is available. The FY09 utility budget has allocated zero dollars towards travel and training. -87- January — February — March 2009 3” Quarter FY09 - 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 NRNXRRE x The utility has adopted an organizational chart that reflects the current structure. X The policy making body meets as required. X The utility complies with the open meeting act for all meetings. Organizational Management Comments: The Metlakatla Indian Community 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. Meetings are held the first Tuesday of each month with additional work sessions if necessary. Metlakatla is unique in Alaska in that it is a federally-recognized Indian tribe, occupying reservation land. In 1891, Congress set aside the Annette Island Reserve. The Metlakatla Indian Community organized under Indian Reorganization Act of 1934. Its constitution and by-laws established a local government with provisions for a twelve-member council and a judiciary. At the same time, the community adopted a corporate charter. These documents established a local government system for the community. Thus, Metlakatla is a political subdivision within Alaska that has been created by federal rather than state law. Over time, the council has adopted all the ordinances necessary to own and operate utility services. Title 5, Chapter 6 of the Metlakatla Law and Order code establishes the policies and procedures for the operation and maintenance of the community water supply system, Title 5, Chapter 7, for sewage disposal, Title 5, Chapter 8 for solid waste. 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. The manager for the sanitation utilities is the public works director. By ordinance, management responsibility for all public works utilities, including the water, wastewater and solid waste services are delegated to the director of public works. The community operates a class 2 water treatment system. The Alaska Certified Water/Wastewater Operator Database verifies that Jeff Benson, Public Works Director has the following certificate: Water Treatment 2 Exp. 12/31/09 Water and wastewater utility staff consists of four other public works employees that help operate and maintain the sanitary systems under the supervision of the public works director who has the appropriate level certification for the class 2 water treatment system. Currently there are no certified operators for the class | water distribution, wastewater treatment, and wastewater collection systems. The finance director is responsible for the maintenance of the books for all community services. This employee has held the position since 1992. Previous education and experience of the finance director includes positions as a business manager and a fund accountant. The community provided RUBA staff an organizational chart that reflects the current structure. The chart portrays the Metlakatla Indian Community as a hierarchical type organization with the direct relationship between supervisor and subordinate being shown. Community staff verified that the chart accurately reflects the organizational structure. -88- January — February — March 2009 3” Quarter FY09 - RUBA Report — eee EE RUB A Report 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. X The utility has a safety manual and holds safety meetings. x4} Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. Xl The utility is operating at the level of service that was proposed. & The operator provides status reports to the manager on a routine basis. Xl The utility has completed and distributed its Community Confidence Report (CCR). & The utility is not on the Significant Non-Compliance (SNC) list. XX The utility maintains an inventory control list. The utility maintains a critical spare parts list. Operation of Utility Comments: The community currently has uncertified operators maintaining the class | water distribution, wastewater treatment, and wastewater collection systems. The public works director reported that the operators are working towards their level | certification. To maintain the criteria for the operator certification essential indicator, the uncertified operators must demonstrate that they are actively seeking the necessary certifications to operate the utility, such as attending training courses, online training courses, or preparing for the level 1 exam. The water treatment system has a preventive maintenance plan for the sanitation facilities contained within the utility operations manual. The utility operators consult with the public works director on a regular basis and provide verbal status reports when significant issues arise. Written O and M reports are provided monthly. The public works director frequently visits the facilities and conducts random spot checks for maintenance items There is a safety manual located at the water treatment facility. The operators meet daily and the manager holds safety meetings to discuss safety issues before engaging in potentially hazardous operations. The public works director acknowledged that a proactive safety training program would be worthwhile. He stated that it is his intention to start a more formalized safety training program on a regular monthly schedule and take advantage of the training material that Alaska National Insurance provides free to its members. The public works director reports that the water utility is operating at the proposed level of service. Neither the water nor wastewater utility has suffered any major problems or outages due to management issues. The water utility provides drinking water quality information as required by the Safe Drinking Water Act and is not listed on the most recent (2/1 1/09) Significant Non-Compliance List. The utility does not maintain inventory control or critical spare parts lists. 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. RUBA Activities For The Coming Quarter RUBA staff will continue to offer RUBA assistance as needed or requested to improve utility management practices. -89- January — February — March 2009 3” Quarter FY09 - RUBA Report - 90 - January — February — March 2009 3 Quarter FY09 - RUBA Report Nondalton Activity Report Community Overview Lead RUBA Staff: Jean Ayers, Anchorage Office 2007 Population: 196 Region: Alaska Peninsula Local Governments: 2" Class City od + The City of Nondalton operates the piped water and sewer Va en system and provides a central watering point for residents to haul their own water. The city council is the policy making body for the utility. An infiltration gallery at Six-Mile Lake supplies the community with treated water. There are 88,000 gallons of storage capacity. 70 residences are connected to the piped water and sewer system and are plumbed. Funds have been requested to extend the system to || newly constructed homes and to make system improvements -- demand has doubled over the past 12 years. Refuse collection is not provided. A new 5-acre landfill and burn box project were completed in 2005. Construction of the Iliamna-Nondalton road and bridge is pending. The INN Electric Cooperative owns a diesel plant in Newhalen and 50 miles of distribution line to connect Iliamna, Newhalen and Nondalton. The Tazimina Hydroelectric Project has recently been completed, and powers the three communities RUBA Activity This Reporting Period Dawayne Constantine, of Summit Consulting, is coordinating with City of Nondalton staff to provide necessary information for updating this report. Contacts this quarter have been by email, telephone and fax. -91- January — February — March 2009 3 Quarter FY09 - RUBA Report Capacity Indicators Finances Essential Indicators Yes XK XXX 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. Sustain 4 & X able 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: A balanced and realistic budget for FY09 was adopted by the city council in June 2008 and a Certified Public Accountant was hired to maintain the financial records and train the community's bookkeeper. DCRA has received copies of monthly financial reports for January, February and March 2009 which are used to assess essential and sustainable indicators listed above. Accounting Systems Essential Indicators Yes Hkh Whe 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 c XR 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. -92- January — February — March 2009 3” Quarter FY09 - RUBA Report Accounting Systems Comments: The city's chart of accounts is set up through the QuickBooks program. Utility customers are billed regularly on or before the 20th of each month in accordance with the collection policy. 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. &X If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: DCRA staff has contacted the IRS and the State of Alaska Department of Labor to verify current federal tax filing and ESC deposit status. As of 03-31-09, the city appears to be compliant with these state and federal requirements. 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. The utility provides training opportunities to staff as needed and available. kX XK ww Xl Personnel System Comments: The City of Nondalton has a current workers' compensation policy that is effective through June 30, 2009. The city utilizes a personnel policy that was previously reviewed by DCCED; job descriptions are written and all personnel files are neatly organized and contain the required documentation. New hires have a probationary period and employees are given the opportunity to travel for training as needed. - 93 - January — February — March 2009 3” Quarter FY09 - 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 The utility has adopted an organizational chart that reflects the current structure. Xx &) The policy making body meets as required. XK) The utility complies with the open meeting act for all meetings. NXRNXRRN Organizational Management Comments: The City of Nondalton is the owner of the utility. The decision-making authority and enforcement of the utility policy is vested in the council. The city administrator has oversight of the utility and maintains the books for the utility with the assistance of a Certified Public Accountant. The mayor and the water plant operator see that the day-to-day duties of the plant are performed and defer all of the administrative duties to the 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 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 HRRWKK Operation of Utility Comments: The city plans to have other staff certified as back-up operators when Bristol Bay Area Health Corporation sets up a schedule for training. The utility is not currently on the Significant Non-Complier List. The utility maintains an inventory control list and a critical spare parts list is prepared and on file. -94- January — February — March 2009 3 Quarter FY09 - RUBA Report ————— Oat PEA - RODA Report RUBA Activities For The Coming Quarter DCRA RUBA staff has received documentation to assess the status of essential and sustainable indicators and looks forward to continued coordination with Nondalton. January — February — March 2009 3” Quarter FY09 - RUBA Report EEE eee - 96 - January — February — March 2009 3” Quarter FY09 - RUBA Report ct BEE ROB A Report Port Heiden Native Council Activity Report Community Overview Lead RUBA Staff: Julie Dirks, Anchorage Office 2007 Population: 87 Region: Alaska Peninsula Local Governments: 2™ Class City f Individual wells and septic tank systems are used by most Vo 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 On March 5, 2009 RUBA staff participated in a joint meeting with VSW, USDA, and the Native Village of Port Heiden. The washeteria project is at 35% design. The selected option includes a 1500 sq. ft. building that contains a treated watering point along with three to four commercial washer and dryers. The estimated cost is around $2 million. At this point there is $1.2 million funds committed to the project with $500,000 coming from the Denali Commission and the remaining $700,000 coming from EPA. The community is working with the USDA/RD program to obtain the remaining $800,000. Work will be started to get the project to 65% design. A site visit to Port Heiden was made by RUBA staff March 9-12, 2009. RUBA staff met with NVPH staff to review the RUBA assessment and discuss documentation that would change 'no' responses to 'yes’. Main identified activities include: revision of the NVPH utility ordinance to include the washeteria, training for a water operator and alternate, and development of a business plan once 65% design was completed and better operation estimates were available. -97- January — February — March 2009 3 Quarter FY09 - 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. X The utility is current in paying all water/wastewater electric bills. Xx 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. 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: While there is no utility budget, the Native Village of Port Heiden manages 34 funds that include funds from BIA, EPA, IHS, State of Alaska and other sources. The QuickBooks classes feature is used to track financial activity and payroll. 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 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. WeXkw 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. &® 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 tribe does not presently operate any utilities in the community. However, a utility ordinance was adopted by the tribe for a sewage disposal utility that ended up being operated by the city. The ordinance contains information about collections, fees to be charged, etc. Information was requested about the NVPH accounts receivable system but no response has been received as yet. The NVPH uses QuickBooks to track revenue and expenditures for 34 funds. - 98 - January — February — March 2009 3” Quarter FY09 - 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. XX] If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The NVPH was reported to be in compliance with federal and state tax filing and deposit requirements as of September, 2008. The tax status has not been verified recently. Personnel System Essential Indicators Yes No XI The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators & The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. 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. 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. Xx X Personnel System Comments: The NVPH provided a current Employer's Notice of Insurance to RUBA staff. The NVPH has a Native preference policy in place that gives priority to Alaska Natives when filling positions. The Native preference in hiring is not allowed to be exercised when filling positions funded by the VSW program. Positions are advertised for a minimum of ten days. The tribal council appoints employees, though they may delegate this responsibility. There is no mention in the policies of a personnel evaluation process. -99- January — February — March 2009 3” Quarter FY09 - 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. Xi The policy making body is active in policy making of the utility. X 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). &X] 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. a} The policy making body meets as required. XxX The utility complies with the open meeting act for all meetings. Organizational Management Comments: The NVPH Council meets once monthly except during the summer months when all council members fish commercially. The tribal entity is active and known in the community. Administrative staff have demonstrated they can effectively manage tribal grants, contracts, and facilities. Operation of Utility Essential Indicators Yes No KK] 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 HXXXKwe kh - 100 - January — February — March 2009 3 Quarter FY09 - RUBA Report OE ERD A Report Operation of Utility Comments: The community currently does not have public water or wastewater systems. Residents rely on private wells and septic tanks, so there has been no need to meet water quality and operator certification requirements. NVPH currently has no experience operating utilities. Implementing a safety manual and holding regular safety meetings would enhance safety. RUBA Activities For The Coming Quarter RUBA staff will provide assistance as requested by phone, fax, and e-mail to meet capacity indicators. RUBA staff will assist with the preparation of a business plan and revision of utility ordinance if requested by NVPH staff. - 101- January — February — March 2009 3" Quarter FY09 - RUBA Report - 102 - January — February — March 2009 3 Quarter FY09 - RUBA Report a ——— wk pore Saint Mary’s Activity Report Community Overview Lead RUBA Staff: Flora Olrun, Bethel Office 2007 Population: 549 Region: Lower Yukon Local Governments: 1* Class City of Water is derived from Alstrom Creek reservoir and is y treated. The majority of the city (120 homes and facilities) have complete plumbing and are connected to the piped water and sewer system. Waste heat from the power plant supports the circulating water system. A 1.7-million-gallon sewage lagoon provides waste treatment. Approximately 15 residences haul water and use honey buckets; the city provides hauling services. Twenty new HUD houses were recently connected to the system. A new honey bucket disposal site is under construction. Funds have been requested to repair plumbing in 40 older homes, and to study replacement of the failing 30-year-old water and sewer mains. A washeteria is available nearby at Pitka's Point. The landfill must be relocated. * Sea, OT RUBA Activity This Quarter Documentation was received and is on file in the Bethel regional office to support the RUBA findings listed below. The City of Saint Mary's has met all of the essential capacity indicators and a majority of the sustainable ones. The last monthly financial statement on file in the Bethel regional office is the month ending November, 2008. The City of Saint Mary's uses QuickBooks but had trouble switching over to the newer version. The city manager has experience with the newer version. Use of the older QuickBooks accounting software has affected the quality of the monthly finance reports sent to the. Bethel regional office. RUBA has contracted a QuickBooks help hotline and this information was faxed to Saint Mary's for their use. The hotline provides assistance via telephone, remote web site monitoring, email, or as a last resort, a site visit from the contractor. - 103 - January — February — March 2009 3” Quarter FY09 - 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. 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. 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. J 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: A budget for fiscal year 2009 was submitted for the St. Mary's file located in the Bethel regional office. The budget had been enacted by the City of St. Mary's Council on May 21, 2008. Part of the budget included revenues and expenses for the freshwater and wastewater utility systems, solid waste collection and disposal. The budget is balanced and realistic and contains a line item for repairs and maintenance. The utility is current on all water and wastewater electric bills. When it is needed, the City of St. Mary's subsidizes the utility services with income from the general fund, specifically from gravel haul services and equipment rental income. The city purchases fuel from Crowley who has a fuel distribution tank farm located in St. Mary's. The city orders fuel twice a year, spring and fall. The last monthly report on file in the Bethel regional office is for the month ending November, 2008. Because the monthly reports are not up to date, YTD revenues and expenditures can not be analyzed. The need to make budget amendments is rare due to the fact that the budget is developed based on last years income and revenues. Under ordinance, the city manager is allowed to transfer ten percent of funds between departments without council approval. - 104 - January — February — March 2009 3 Quarter FY09 - RUBA Report — EERE Report Accounting Systems Essential Indicators Yes No &X The utility has adopted a collection policy and actively follows it. Xx The utility bills customers on a regular basis. xX An accounts receivable system is in place which tracks 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. Xl 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: There is a collection policy located in the Code of Ordinances, Sections 2.13.50-2.13.65, A copy of the ordinance is in their file located in the Bethel regional office. A copy of a customer billing was provided, which is sent out on a monthly basis. The billing contains a forwarded balance, current billing for water, sewer and garbage collection separated into different line items. Past due sections for current amount due, 30 days, 60 days, 90 days and over 90 days past due are also included in the monthly statement. The city uses QuickBooks Pro for their accounting system. All accounts payable, receivable and payroll transactions are run through QuickBooks Pro. A copy of their chart of accounts was submitted to the Bethel regional office and is actively being used. A copy of a purchase order was submitted which reflects a pre-approval requirement for purchases. And a copy of their procurement policy, Chapter 4.05 was also submitted and placed in their file. Tax Problems Essential Indicators Yes No & The utility has a system to accurately calculate, track, and report payroll tax liabilities. Xl The utility is current on filing tax reports. &X 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 IRS and Alaska Department of Labor deemed the City of St. Mary's compliant this quarter. - 105 - January — February — March 2009 3” Quarter FY09 - RUBA 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. xX The utility has adequate written job descriptions for all positions. KX] The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. XK The utility has an adequate written hiring process. x The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. &X The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. &X The utility provides training opportunities to staff as needed and available. Personnel System Comments: The City of St. Mary's is insured by Alaska Municipal League Joint Insurance Association, Inc. through 7-1-2009. Proof of the workers compensation insurance coverage has been placed in their file located in Bethel regional office. The city has a personnel policy which was adopted in 1996 and needs to be reviewed and updated. Job descriptions for the following positions have been submitted: operator, water and sewer utilities and assistant operator for the water and sewer services. Copies of Ordinance Chapter 2.05, which stipulates powers, duties and responsibilities of the city clerk and city manager, were submitted. The city manager has complied with the informal evaluations but has not used written evaluations. The personnel file for the utility worker is complete. The turnover rate for the utility worker is very low; he has worked for the city for approximately ten years. He has many training certificates including Water Distribution Level 4 with an expiration date of 12-31-10. A new city manager started work in November, 2008 for the City of Saint Mary's. Organizational Management Essential Indicators Yes HRKNRRE 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. X The policy making body meets as required. & The utility complies with the open meeting act for all meetings. - 106 - January — February — March 2009 3” Quarter FY09 - RUBA Report a OE ENA ~ RUDA Report Organizational Management Comments: The city council is active in policy making for the utility. The council meets monthly at which time they hear status and financial reports by the city manager for the utility services. The utility worker has been employed by the City of St. Mary's since 1998 and has training certificates as high as level four for water distribution. The city uses QuickBooks Pro for all departments. A copy of Ordinance 2.13 for the Division of Freshwater and Wastewater Utilities System is on file. The city currently has no adopted organizational chart. The city manager submitted a handwritten copy based on language from their ordinance. The city council meets monthly and complies with the Open Meetings Act which is in compliance with their code of ordinances. Operation of Utility Essential Indicators Yes No a} 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. 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 XXXXKR Operation of Utility Comments: The utility worker has many training certificates including Water Distribution Level 4 with an expiration date of 12/31/10. A sample of their inventory control list and task description for the water and sewer system for 2007 and 2008 was submitted. It was not clear whether or not safety meetings had been held. Saint Mary's is not on the Significant Non-Complier list. Copies of their Consumer Confidence Report and critical spare parts list are on file in the Bethel regional office. RUBA Activities For The Coming Quarter The City of Saint Mary's has met all of the essential management capacity indicators. Bethel RUBA staff will work with Saint Mary's to satisfy deficient sustainable indicators. - 107 - January — February — March 2009 3" Quarter FY09 - RUBA Report - 108 - January — February — March 2009 3” Quarter FY09 - RUBA Report ——— Ee eet et eeport Scammon Bay Activity Report Community Overview Lead RUBA Staff: Hazel Keezer, Bethel Office 2007 Population: 517 Region: Yukon-Kuskokwim Delta Local Governments: 2™ Class City, of The city operates the piped water and sewer system. “ee Water is derived from an infiltration gallery located on a 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 region RUBA staff traveled to Scammon Bay February 17, 2009 and met with the city manager and city bookkeeper to conduct a RUBA management assessment, a condition for sanitation project funding. - 109- January — February — March 2009 3 Quarter FY09 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No Kl All revenue and expenses for the utility are listed in the utility budget. X The utility has adopted a balanced realistic budget. i) Monthly financial reports are prepared and submitted to the policy making body. &] 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 KK] 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. KX] YTD expenditures are at a level equal to or below those budgeted. X A monthly manager’s report is prepared. KK] Budget amendments are completed and adopted as necessary. Finances Comments: The City of Scammon Bay operates on a state fiscal year; the budget for FY09 was initially approved by the city council in September of 2008. However, the budget's revenue and expenditure summary section had not been completed. The city provided an ordinance adopting the amended budget in November of 2008. The monthly financial report lists expenses and revenue categories with columns for the FY 09 budgeted amount, monthly, year to date and remaining balances. The city has past due balances for each utility account with Alaska Village Electric Cooperative (AVEC). The last payment paid by the city is October of 2008. The city has 9,100 gallons of fuel to sufficiently run the utilities until the spring order is received. The city is receiving revenues from equipment rentals and other funding sources to cover operating expenses. The manager provides a verbal report to the council at regular scheduled monthly meetings. The monthly financial report shows that there are line items where the expenditures are higher than what was budgeted for the utility. Accounting Systems Essential Indicators Yes No X The utility has adopted a collection policy and actively follows it. Xl The utility bills customers on a regular basis. X An accounts receivable system is in place which track customers and reports past due accounts and amounts. Xi An accounts payable system is in place. x The payroll system correctly calculates payroll and keeps records Kl A cash receipt system is in place that records incoming money and what it was for. xX The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators X A chart of accounts is used that identifies categories in a reasonable, usable manner. Xl Monthly bank reconciliation’s have been completed for all utility accounts. XX The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. - 110- January — February — March 2009 3” Quarter FY09 - RUBA Report Accounting Comments: Bills are mailed on or before the end of each month and are due prior to the 20th day of the following month. A notice of delinquency shall be mailed out on or after ten days from when the account becomes delinquent. After a bill has reached an amount equivalent to three months of service, the city will send a turn off notice to the customer. The city uses QuickBooks to calculate payroll. The NEBS system is used for accounts receivable and payable. The city's administrator and bookkeeper are approved to sign purchase orders; however, the monthly financial reports show that there are line items where the expenditures are higher than what was budgeted for the utility. 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. KX] 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 IRS deemed the taxpayer non-compliant with federal employment tax filings and deposits. The city owes 941 report for the 4th quarter of 2008 and has not filed for the 3rd quarter in 2007. The Alaska Department of Labor reported that the city is current with state ESC tax requirements. Personnel System Essential Indicators Yes No XX 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. 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. &) The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. a} The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. Xl The utility provides training opportunities to staff as needed and available. -111- January — February — March 2009 3" Quarter FY09 - RUBA Report Personnel System Comments: The City of Scammon Bay has posted the workers compensation and is covered 7/1/2008 to 7/1/2009. The city has adopted and uses a personnel policy that was provided by DCCED (DCRA) and contains appropriate topics and language. The manager verbally hires new employees and gives verbal performance assessments when needed. The city has personnel folders on employees that contain complete I-9 forms. Three months is the standard probationary period for permanent employees. The manager provides on the job training for new employees and other training is provided when 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. The policy making body enforces utility policy. The utility has an adequately trained manager. The utility has an adequately trained bookkeeper. The utility has an adequately trained operator(s). The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators The utility has adopted an organizational chart that reflects the current structure. X The policy making body meets as required. X The utility complies with the open meeting act for all meetings. KRRXERRR Organizational Management Comments: The City of Scammon Bay is known to manage the utility. The city council meets regularly once a month. The city manager and bookkeeper have had training through DCCED (RUBA) and AML as well as extensive work history in local government and utility operations. The operators have on the job training and are working toward certification. The city does not have an organizational chart. The manager and the bookkeeper report to the mayor. All other staff in the utility report to the city manager. January — February — March 2009 3” Quarter FY09 - RUBA Report ———— St IE RODA Report 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 xX 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. 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. MWOkN Operation of Utility Comments: The water operators are scheduled to receive training through YKHC OHE program. The city has a CCR for Scammon Bay's public water system. The utility's water system is on the significant non- compliance list for a non-filtration issue and has been on a water boil notice since 2007. RUBA Activities For The Coming Quarter Provide on-site RUBA Assessment and assist in indicators that are not being met. - 113- January — February — March 2009 3" Quarter FY09 - RUBA Report -114- January — February — March 2009 3” Quarter FY09 - RUBA Report Selawik Activity Report Community Overview Lead RUBA Staff: Margaret Hansen, Kotzebue Office 2007 Population: 828 Region: Northwest Arctic Local Governments: 2™ Class City, ed The community has piped water and sewer throughout “4 the entire community and is now 96% fully piped. Water plant upgrades and river pump system are being evaluated now for possible future projects. DEC has been in Selawik to do an evaluation of the water quality and a comprehensive performance evaluation which will be helpful to determine what changes need to be implemented. * 2g, en . RUBA Activity This Quarter Kotzebue RUBA staff traveled to Selawik in February to work with the council and staff to provide training and assistance on financial management. Working with local staff, worksheets were completed showing that the city currently has incurred a $428,733 debt while trying to save their 20 million dollar water/wastewater infrastructure. Another worksheet prepared by RUBA showed that in one month (January 2009) the city was billed by Alaska Village Electric Cooperative (AVEC) $69,300 for a fuel cost charge as part of their electric bill. We also completed an amended budget showing that they will have a deficit of $385,277 at year end with the amended budget. We modified that amended budget even further in order for the city to make a $10,000 payment each month to help pay off their AVEC bill. This new amended budget reduces the office hours of operation to three hours a day on Monday Wednesday and Friday so someone can be in the office on those days to receive payments. - 115- January — February — March 2009 3” Quarter FY09 - 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. X Monthly financial reports are prepared and submitted to the policy making body. KX] The utility is current in paying all water/wastewater electric bills. XX 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 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. X Budget amendments are completed and adopted as necessary. Finances Comments: Although an amended budget was adopted, sufficient funds were not available for payment of the total AVEC bill by the end of this fiscal year. A payment of $10,000 each month has been budgeted, so they have passed a budget that is realistic for the funds they have coming in to operate. Although they are not receiving funds sufficient to cover their operating expenses mainly due to the electric cost, they had purchased enough fuel at the beginning of year to last until fall. A monthly managers report is prepared and the budget amendment has been adopted but because of the cost over-runs trying to save their water/wastewater system, there were not enough revenues to cover the expenses. Accounting Systems Essential Indicators Yes No The utility has adopted a collection policy and actively follows it. X The utility bills customers on a regular basis. &] An accounts receivable system is in place which track customers and reports past due accounts and amounts. & An accounts payable system is in place. {The payroll system correctly calculates payroll and keeps records X& Acash receipt system is in place that records incoming money and what it was for. Kl The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators &X A chart of accounts is used that identifies categories in a reasonable, usable manner. Ki Monthly bank reconciliation’s have been completed for all utility accounts. {The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. - 116- January — February — March 2009 3” Quarter FY09 - RUBA Report ———[—$————— Eee ee port Accounting Comments: At the time of my visit, even though they bill the customers monthly, they had outstanding accounts receivable for water/wastewater of $24,036 so they are not actively following the collection policy. They were advised that they need to increase their water/wastewater rate from $130 to $150 immediately and may need to increase it to $200 a month next fiscal year to get out of debt. The bookkeeper uses QuickBooks for all accounting needs, which she reconciles monthly and uses the budget as the chart of accounts to identify all revenues and expenses on an Excel monthly report in comparison to the budget. The utility has a purchasing system that requires approval prior to purchase but went way over budget to save their water/wastewater system. 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. KX] The utility is current on making tax deposits. KX] If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: Although QuickBooks is utilized to help track, report and pay taxes, payroll tax liabilities for the months of January or February had not been paid at the time of my visit. RUBA urged her to get caught up as soon as possible to avoid penalties and interest. 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. 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 & XX RW -117- January — February — March 2009 3” Quarter FY09 - RUBA Report Personnel System Comments: The city has workmen's compensation coverage until June 30, 2009 that is posted in the city office. The city has not had any turnover in personnel so all personnel folders are still current with written job descriptions. The city had to hire temporary positions for the water/wastewater utility that have signed I-9 forms and acceptance of the job and rate of pay forms. The city still utilizes the approved AML policies that provides a written evaluation process, including probationary period. The administrator is planning to attend the QuickBooks training in Kotzebue on May 4th. The alternate water plant operator plans to attend training offered in Kotzebue. 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. [x] The policy making body enforces utility policy. The utility has an adequately trained manager. The utility has an adequately trained bookkeeper. The utility has an adequately trained operator(s). The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators The utility has adopted an organizational chart that reflects the current structure. Xl X The policy making body meets as required. &® The utility complies with the open meeting act for all meetings. MWkN Organizational Management Comments: Although the city council adopted ordinances necessary to give it authority to operate, they have not been enforcing the collections policy allowing the accounts receivable to reach $24,000. The same city administrator, clerk, bookkeeper and operator have been working for over five years. The city has adopted an organizational chart that reflects the current structure and meets as required, complying with the Open Meetings Act. - 118 - January — February — March 2009 3 Quarter FY09 - RUBA Report 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 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. a X XWORR X Operation of Utility Comments: The operator is certified for wastewater treatment OIT, collection OIT, water distribution 1, water treatment 2 until 2011. Although the city has a preventative maintenance plan in place, not following it may be the cause of the financial problems they are having now. The city does receive a monthly report from the operator but the administrator needs to spot check facilities to see that maintenance items are being completed. At the time of my visit, the administrator could not reach the operator to find out if he has held safety meetings although there is a safety manual. Ninety percent of the system froze due to cold temperatures of around -60 and possible tripping of heat trace tapes being used since they could not find all the glycol leaks last summer. They have restored all but 40 homes and the Northwest Inupiat Housing Authority 20 apartment unit so it is not operating at the level of service that was proposed. The system has been 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. 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 continues to monitor and assist staff in following through with improvements as identified in this assessment. RUBA staff plans to return to the community in June 2009. - 119- January — February — March 2009 3 Quarter FY09 - RUBA Report ae ee OTE Shageluk Activity Report Community Overview Lead RUBA Staff: Flora Olrun, Bethel Office 2007 Population: 118 : Region: Yukon-Kuskokwim Delta Local Governments: 2™ Class City od Residents haul treated well water and dispose of honey buckets in pit privies or bunkers. Residents are dependent upon the washeteria for bathing, laundry, and water, since no homes are fully plumbed. HUD houses constructed in 1991 use pit privies. The city washeteria/water treatment plant provides water to the city office building, post office and clinic. The school is connected to the sewer pipes. A sanitation master plan has been completed and funds are needed to proceed with the design and engineering of a community system. RUBA Activity This Quarter Shageluk has submitted their 2009 budget summary and the detailed budget for the utilities. They are not on the Environmental Protection Agency's Significant Non-Compliant List. Shageluk is in compliance with all IRS reports, deposits and they have no outstanding liens. Three Bethel RUBA staff traveled to Shageluk on March 9-13, 2009 to conduct an elected officials training as requested by the community. Both city council members and city staff attended the training which covered an overview of government, roles and responsibilities, meetings, ordinances and resolutions, policies and procedures, financial management, and sustainability. -121- January — February — March 2009 3” Quarter FY09 - 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. 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. XxX 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. KX] YTD expenditures are at a level equal to or below those budgeted. Xi A monthly manager’s report is prepared. X Budget amendments are completed and adopted as necessary. Finances Comments: The FY09 budget and the detailed utility budget are on file in the Bethel regional office. The last monthly financial report on file in the Bethel regional office is for the end of December, 2008. Because the monthly financial statements are not current, YTD revenues and expenditures cannot be analyzed. Written financial reports and an outline for the manager's narrative report are placed in the meeting packets and given to council members prior to each council meeting. At the meeting, the administrator verbally updates the council on financial and other city issues. The utility is current on their electric bill. Fuel purchased was for 7,000 gallons and the City of Shageluk paid for the fuel on August 18, 2008. The purchase is 3,000 gallons less than last summer's purchase of 10,000 gallons. January — February — March 2009 3” Quarter FY09 - RUBA Report Accounting Systems Essential Indicators Yes XXK XR 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. Ss = a ra Mew ainable Indicators A chart of accounts is used that identifies categories in a reasonable, usable manner. Monthly bank reconciliation’s have been completed for all utility accounts. The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. Accounting Comments: A copy of Shageluk's utility ordinance is on file in the Bethel regional office. The city does not have a water and sewer system in place to serve all residents. The school and the post office are billed on a monthly basis. The system for accounts payable and accounts receivable is in place and is done manually. The payroll system is done manually and has been adequate to meet their record keeping needs and to keep up to date with 941 tax reports. A chart of accounts has been developed and is used to track cash receipts and disbursements. Bank reconciliations are up to date. A purchase order form has been developed for the utility service workers and a copy is contained in the file. Tax Problems Essential Indicators Yes RXR No The utility has a system to accurately calculate, track, and report payroll tax liabilities. The utility is current on filing tax reports. The utility is current on making tax deposits. If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: Shageluk is in compliance with all IRS filing, deposit requirements and have no liens. The State of Alaska, Department of Labor stated the City of Shageluk is in compliance with employment security tax requirements. - 123- January — February — March 2009 3” Quarter FY09 - RUBA Report Personnel System Essential Indicators Yes No &X The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators X The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. &X The utility has adequate written job descriptions for all positions. 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. EX] The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. K) The utility provides training opportunities to staff as needed and available. kim Personnel System Comments: Shageluk's workmen's compensation insurance is valid through 7/1/2009. Job descriptions for the utility workers are adequate and contained in the file. Since the new administrator has come on board, there have been no evaluations for the utility staff. Personnel folders are kept up to date with I-9's, job applications and completed personnel action forms. The utility worker is given adequate training opportunities when 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. Xl The utility complies with the open meeting act for all meetings. XRNKRRR -124- January — February — March 2009 3" Quarter FY09 - RUBA Report ——— eee AD Report Organizational Management Comments: The entity is known and set and the council is active in policy making for the utility. The school receives sewer service, and evacuation service for the ten private homes that have privies is done ona prepaid basis. The council needs to ensure that the city administrator continues to maintain the billing system for the school. The administrator manages the utility services and maintains the accounting system. The office staff was reduced to the administrator's position and the open hours were reduced from five open days to three. The utility worker is adequately trained and experienced. Shageluk's utility ordinance is on file. An organizational chart that reflects the current structure is posted in the Shageluk office. The city council meets on a monthly basis and complies with the Open Meetings Act. Operation of Utility Essential Indicators Yes No Xl The utility operator(s) are actively working towards necessary certification. &X The utility has a preventative maintenance plan developed for the existing sanitation faciliti Sustainable Indicators Xx 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. X Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. & The utility is operating at the level of service that was proposed. X The operator provides status reports to the manager on a routine basis. &X The utility has completed and distributed its Community Confidence Report (CCR). & The utility is not on the Significant Non-Compliance (SNC) list. Xi The utility maintains an inventory control list. The utility maintains a critical spare parts list. & Operation of Utility Comments: The utility operator has a Water Treatment and Distribution Provisional Certificate which expires on 12/31/09. Shageluk's preventative maintenance plan is contained under Chapter 2 of the Operations and Maintenance Manual. A written daily log is kept each day by the utility worker. He uses the forms from the Operations and Maintenance manual. In addition, he gives a monthly verbal report to the city council. Copies of the utility worker's maintenance check list and daily work report are contained in the Bethel regional office file. The 2007 annual water quality report is filed in the Bethel regional office and was prepared by Water Systems Services. A copy of Shageluk's safety policy is located in the Bethel regional office file. The utility is not on the Significant Non-Compliance list. Inventory control and critical spare parts lists are not being maintained. RUBA Activities For The Coming Quarter RUBA staff will continue to work with the City of Shageluk to satisfy sustainable indicators. - 125- January — February — March 2009 3” Quarter FY09 - RUBA Report - 126- January — February — March 2009 3 Quarter FY09 - RUBA Report Tuluksak Activity Report Community Overview Lead RUBA Staff: Hazel Keezer, Bethel Office 2007 Population: 466 Region: Lower Kuskokwim Local Governments: Tribal Council od The tribal council operates the washeteria, water V Nae, Om 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 RUBA staff contacted the contracted Tuluksak finance director to discuss a one-year letter warning from the Village Safe Water program. The community has a deadline to demonstrate financial capacity, which was found to be deficient in the RUBA management assessment. Correction of the problem is required as a condition of the construction grant for a sanitation project. Failure to make the necessary changes to management will mean loss of construction funds and the community will have to begin the funding application process again. Errors in financial reporting were discussed and the financial director agreed to make the changes. Monthly finance reports would be prepared and submitted to RUBA staff for review. Upon receiving the first finance report, it was noted that expenditures were higher than revenues. When contacted, the finance director stated she had entered a land lease amount in the wrong category. She explained that revenues from the lease and gaming subsidize the water utilities. RUBA shared information with local staff regarding the RUBA QuickBooks Pro contractor who operates a hotline for accounting issues. Tuluksak staff may call the hotline with questions and the contractor can offer assistance via remote web site. The contractor may also provide assistance via email, telephone, or thumb drives. As a last option, the contractor may travel to the community for a three day on-site visit to work directly with the staff. RUBA also contacted the administrator to see if the Tuluksak Native Community was providing the required monthly water samples as agreed to with Village Safe Water. Confirmation of the reporting was also made with VSW. -127- January — February — March 2009 3” Quarter FY09 - 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. & 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 XK] 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. &X YTD expenditures are at a level equal to or below those budgeted. XX] A monthly manager’s report is prepared. XxX Budget amendments are completed and adopted as necessary. Finances Comments: Tuluksak's Native Community completed a budget and provided explanations that an expenditure in the water plant was covered by revenues received from a land lease. RUBA was provided copies of February and March 2009 finance reports. Tuluksak contracts with a Certified Public Account for accounting practices. She made amendments to the budget to show that Tuluksak had requested additional funding later in the year to pay for an existing loan. A written manager's monthly report was not provided. Accounting Systems Essential Indicators Yes No The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. & An accounts receivable system is in place which track customers and reports past due accounts and amounts. XX 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 Xl A chart of accounts is used that identifies categories in a reasonable, usable manner. Xl Monthly bank reconciliation’s have been completed for all utility accounts. X The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. - 128- January — February — March 2009 3 Quarter FY09 - RUBA Report ——————— Eee ee Rep Ore Accounting System 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 out from the electric pre-paid power stat cards. A new accounts receivable had not been provided. 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 & 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 IRS Taxpayer Advocate Service provided updated release of information on April 13, 2009. The IRS has deemed the Tuluksak Native Community compliant for filing and making tax deposits. The Department of Labor was contacted and the utility is current with all ESC 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. 1] The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. X The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. & The utility provides training opportunities to staff as needed and available. kX Personnel System Comments: Tuluksak has workers compensation insurance coverage through Umialik Insurance Co. effective 5/08 to 5/09. 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. - 129- January — February — March 2009 3” Quarter FY09 - 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 MRXNeRR Xl 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: 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. 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 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. Xi The utility has a safety manual and holds safety meetings. & Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. X The utility is operating at the level of service that was proposed. X The operator provides status reports to the manager on a routine basis. &X 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. Kikiw - 130 - January — February — March 2009 3" Quarter FY09 - RUBA Report eee Report Operation of Utility Comments: The utility is on the Significant Non-Complier list. The violations were discussed at the special meeting to the council from Village Safe Water. 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 is available to provide assistance with any management capacity indicators that are not being met. - 131- January — February — March 2009 3 Quarter FY09 - RUBA Report - 132 - January — February — March 2009 3 Quarter FY09 - RUBA Report eS Oe A Keport Tununak Activity Report Community Overview Lead RUBA Staff: Hazel Keezer, Bethel Office 2007 Population: 328 Region: Lower Kuskokwim Local Governments: Unorganized ad Water is derived from Muskox Creek. A flush/haul system began construction in 1992. There are 25 homes and four commercial buildings that have flush/haul systems in place to this date. The community has 2 bunkers in the village that are still in use by 41 residential homes for disposing of honeybuckets. The bunkers are made of ditches and do not have liners. The community relies on the washeteria for laundry only. The school provides its own piped water system, and sewage discharges to the village drainfield. The IRA is planning on a new washeteria and water plant. Electricity is provided by AVEC. RUBA Activity This Quarter Bethel RUBA staff traveled to Tununak to complete a RUBA management assessment of the Tununak IRA Council in October 2008. At the time of the assessment, the Tununak IRA Council did not meet essential indicators in the areas of utility finance, accounting systems, organizational management and the operation of the utility. The utility is on the significant non-compliance list and the community is on a boiled water requirement from the Department of Environmental Conservation. RUBA contacted Tununak IRA Council this quarter to discuss the action plan for the Administrative Compliance Order for the public water system. The IRA Administrator met with DEC staff and Village Safe Water on February of 2009. The Tununak IRA has recently provided information and documentation to meet a few of the deficient indicators that were identified at the last assessment. RUBA will continue to monitor the utility service and offer assistance. - 133- January — February — March 2009 3” Quarter FY09 - RUBA Report Capacity Indicators Essential Indicators Finances Yes No Xx X & X Xx 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 X i y 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 IRA has not adopted a budget for the utility. Monthly financial reports are not prepared or submitted to the council. The IRA has a financial plan for purchasing fuel from the local Native corporation using funds from a grant. A manager's report is not prepared or is a report mentioned in the monthly meeting minutes. The IRA is current on paying the Alaska Village Electric Cooperative (AVEC) monthly statements. Accounting Systems Essential Indicators The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. An accounts receivable system is in place which track customers and reports past due accounts and amounts. An accounts payable system is in place. The payroll system correctly calculates payroll and keeps records A cash receipt system is in place that records incoming money and what it was for. The Utility has a cash disbursement system that records how money was spent. Yes No Xl x x & Xl & Xl Susi X &X Xx 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. - 134 - January — February — March 2009 3” Quarter FY09 - RUBA Report — ier id Report Accounting System Comments: A draft utility ordinance was created in March of 2008, however no budget has been adopted by the council. The IRA does send out monthly billing statements to customers receiving services. The IRA uses a carbon copy receipt for payments received. The IRA sent a copy of the IRA current monthly bank reconciliations. The IRA also uses a purchase order form that must receive prior approval from the Tribal Administrator or Council President. 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: No documentation was received to authorize RUBA to request tax information. Personnel System Essential Indicators Yes No Xl 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 &% Xk Rw Personnel System Comments: The Tununak IRA has a current workers compensation policy in place with Liberty Northwest. The policy covers dates from May 2008 to May 2009. Tununak IRA has a complete personnel policy manual. The IRA Board of Directors has full authority for decisions made in applying policies of the IRA. The Tribal Administrator screens applicants and the council makes all hiring decisions regarding full time employees. The probationary period is three months. On-the-job training and other training is provided as funding permits. - 135- January — February — March 2009 3" Quarter FY09 - 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). X The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators XXX ® The utility has adopted an organizational chart that reflects the current structure. Xi The policy making body meets as required. X The utility complies with the open meeting act for all meetings. Organizational Management Comments: An agreement for transfer of management of the water and sewer system was made on June 2007. The Tununak Traditional Council transferred ownership and legal authority to the Native Village of Tununak I.R.A. Council. A copy of the organizational chart for the utility was provided. The Tribal Administrator held a previous position as a housing authority administrator and has experience working with BIA grants. The current bookkeeper has held his position since the year 2000. He has attended an IRS workshop and has on-the-job training. The water operator is currently not certified in water/wastewater treatment. The city has provided an organizational chart. The IRA council is the governing body and the administrator reports to the council. The IRA employees report to the administrator. Operation of Utility Essential Indicators Yes No KX] 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. 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. kX Wk Xe RR - 136 - January — February — March 2009 3” Quarter FY09 - RUBA Report eee EA A Report Operation of Utility Comments: A search was made in the Alaska Certified Water/Wastewater Operator Database and there were no identified certified operators. The IRA utility does have a preventive maintenance plan for the water plant. The operators report verbally to the administrator when problems occur with the utility. The Consumer Confidence Report was completed in June of 2008. The Department of Environmental Conservation reports that the utility is on the SNC list for sampling and reporting requirements and a long term boil water notice was issued. RUBA Activities For The Coming Quarter Continue to provide technical support to help Tununak IRA to meet Essential and Sustainable Indicators for the RUBA assessment. -137- January — February — March 2009 3” Quarter FY09 - RUBA Report - 138- January — February — March 2009 3” Quarter FY09 - RUBA Report | Non-RUBA Communities Adak John Nickels, LGS/RUBA, Anchorage Office This quarter, the City of Adak hired a new city manager, John Schroeder. City staff was reminded of the status of the RUBA management indicators and progress has been made in making necessary changes. A budget ordinance was adopted properly by the city council February 18, 2009, which will allow the city to receive state revenue sharing funds. A budget for FY09 received by DCRA early in the fiscal year had apparently been adopted without the required public notice and RUBA advised the city of the error at that time. Also received by RUBA this quarter was a resolution by the council authorizing use of small claims court to collect past due utility accounts, and another resolution that adjusted city rates and service charges. Proof of current workers' compensation insurance was also provided to RUBA and the city is currently compliant with state and federal tax requirements. Assistance was provided to city staff in reviewing and interpreting a city fuel tax ordinance and the need to add a surcharge to city wastewater bills. Budget vs. actual and accounts receivable financial reports have been requested by RUBA, but not yet received. RUBA staff attended a teleconference with two Adak residents interested in DCRA assistance and reviewed with them services and assistance that could be provided. The possibility of a future onsite visit was discussed, but no request has been received. Aleknagik Ralph Andrew, LGS/RUBA, Dillingham Regional Office During the quarter RUBA traveled to Aleknagik with DCRA Planning staff to discuss planning interest and initiatives with the City of Aleknagik. According to the city administrator, the city council plans to update its comprehensive community plan and capital improvement projects list. During the visit, RUBA introduced himself to the new city clerk and offered assistance to the city administrator on the topic of deficient RUBA indicators. RUBA had a significant amount of contact with the city administrator during the quarter and continues providing assistance and recommendations as the city strives to maintain satisfactory RUBA Assessment of Management Indicators, a grant condition the city anticipates for water/sewer project funding. In prior quarters, the city was satisfying RUBA essential indicators but several essential indicators are presently listed as deficient. RUBA continues requesting RUBA assessment-related documentation from the city including written permission to obtain federal tax compliance confirmation and water/sewer monthly financial reports. The city continues working with the Alaska Native Tribal Health Consortium (ANTHC) to assess water/sewer infrastructure improvement options. - 139- January — February — March 2009 3” Quarter FY09 - RUBA Report Ambler Margaret Hansen, LGS/RUBA, Kotzebue Regional Office Kotzebue RUBA staff traveled to Ambler January 14, 2009 to provide financial management and year end tax report training to the new city administrator and financial report training to the council members. Three months of monthly financial reports, bank reconciliations, quarterly tax reports, and annual payroll reports were all completed. The council also enjoyed a two hour session on how to read a financial report in comparison to their budget, when to amend their budget, and reviewed their first draft washeteria budget. RUBA staff explained the need to monitor the revenue and expenses very closely, amend their budget as needed, and recommended they have a savings account to pay for repair and maintenance. They are hoping that a washeteria project will be complete and operational by July. This quarter, Kotzebue RUBA also provided phone, fax, and email assistance to the community with financial reports and fuel sales and storage problems. Anchor Point Earl Gibson, LGS/RUBA, Anchorage Office On March I 1, 2009, RUBA staff visited the Anchor Point office and met with the president of Anchor Point Safe Water, who also owns Aurora Taxes and Accounting and is a QuickBooks certified trainer. RUBA staff informed her of the clean findings on tax authorization review from the IRS. Overall, the president has been very supportive and has been sending her clerk and operator to training to assist them in their jobs. She is a continual help to other communities with their taxes and utility accounting. Anchor Point Safe Water meets all essential management indicators. Chefornak Earl Gibson, LGS/RUBA, Anchorage Office On January 21, 2009, RUBA staff received completed copies of the Utility Ordinance and Personnel Polices Ordinance. RUBA staff will continue to work with the community on their preventative maintenance plan to include checklists for operator reporting to the administrator and council. RUBA staff will continue to work with the city on other policies and issues. Chefornak does currently meet the majority of essential management indicators which are required prior to receiving sanitation construction funding. Chenega Bay Tammy Helms, LGS/RUBA, Anchorage Office Chenega is currently not meeting all of the essential management indicators in the area of 'Tax Problems’. The Chenega IRA Council hired the accounting firm Kerr, McVey, Sheaffer and Associates to handle all bookkeeping duties after the bookkeeper resigned. RUBA staff will continue to offer assistance in efforts to meet essential indicators and provide training at the councils request. - 140 - January — February — March 2009 3" Quarter FY09 - RUBA Report ——$—————————— SOE eee ei pert Chuathbaluk Ken Berlin, LGS/RUBA, Bethel Regional Office At the request of the community, Bethel RUBA staff traveled to Chuathbaluk on February 25 to attend a joint meeting between the City of Chuathbaluk and the Chuathbaluk Traditional Council concerning an Agreement for Services. The Traditional Council is proposing to contract all services provided, including administration and finances of the City of Chuathbaluk. The meeting is the third public meeting concerning this agreement and so far the public is in support of this plan. The next step now is to finalize the agreement and have an attorney review it. After the attorney review, the agreement will be posted for public review and a final public hearing date set at which time the agreement will be signed by both parties. The FY 2008 certified finance statement was submitted to Juneau as a requirement to receive a community revenue sharing payment. Circle Jeremy Johnson, LGS/RUBA, Fairbanks Regional Office The Circle Village Council met with Fairbanks RUBA staff to review the most recent management assessment and develop a work plan. The regional corporation has assumed all of the financial reporting aspects from the village council. There are sanitation projects funded without release of the funding due to the council's inability to pass the management assessment. RUBA staff will work with the village council and regional corporation to satisfy essential indicators so that the community can pass the assessment and continue with the infrastructure projects. Clark’s Point Ralph Andrew, LGS/RUBA, Fairbanks Regional Office Dillingham RUBA staff traveled to Clark's Point on February 17, 2009 with Rural Alaska Fuel Services (RAFS) staff to meet with city officials regarding fuel financing and related debt. The city is presently falling behind on state bridge loan payments to RAFS. The mayor, staff, and council members indicated a strong interest in raising electric utility rates and eliminating the flat-fee method of billing. The meeting reignited the city's interest in pay-as-you-go electric power metering and participation in the Power Cost Equalization (PCE) program. On a related note, RUBA staff provided the city with a budgeting spreadsheet tool, a monthly financial report template, and encouraged staff to continue to share information with the public about energy-related programs including state Alaska Housing Finance Corporation (AHFC) weatherization and the heating assistance program. Houston Julie Dirks, LGS/RUBA, Anchorage Office Anchorage RUBA staff attended a work session of the Houston City Council on March 5, 2009 to provide training on roles and responsibilities, conflict of interest, ethics, Open Meetings Act, ordinances, resolutions, and budgets. There were about 15 staff and members of the public present and each city council member was provided with a packet containing a city council primer, Open Meetings Act information, Title 29, sample ordinances, information about writing ordinances, conflict of interest, ethics, and other miscellaneous items. The City of Houston also requested assistance this quarter with a draft finance ordinance and questions involving budgeting, resolutions, and public meeting requirements. Community members believe there may be problems with contamination of the Houston water supply, which is within the Big Lake water shed, and would like the city to pursue getting a water and sewer project. City staff members are currently investigating funding sources. - 141- January — February — March 2009 3" Quarter FY09 - RUBA Report Kachemak Selo Earl Gibson, LGS/RUBA, Anchorage Office As of March 23, 2009, there were no changes in the RUBA assessment this quarter. However, the utility manager and president did attend the Operations Management for Rural Utilities training on March 9-13, 2009. They were also given an invitation to visit Anchor Point and Nikolaevsk water plants and to check out their operations. Kachemak Selo is searching for funding to get a water project that best suits their needs. Since there is no activity with a water utility, there has been no progress on drafting ordinances and policy and procedures. RUBA staff will continue to provide assistance at the request of the community. Kasaan Lawrence Blood, LGS/RUBA, Juneau Regional Office Over the last quarter, the city has made a real effort to improve its utility collections. The city submits supporting documentation on a quarterly basis consisting of monthly financial reports. They are currently meeting all essential management capacity indicators. Activities this quarter consisted of telephonic assistance with QuickBooks. The city was also provided a RUBA travel and lodging scholarship for one city staff member to attend the SDS meeting held in Saxman February 24-25, 2009. Kobuk Margaret Hansen, LGS/RUBA, Kotzebue Regional Office RUBA staff traveled to Kobuk January 29, 2009 at the community's request. Assistance and training were provided for the new administrator with quarterly and end of year payroll tax reports and monthly financial reports for the council. The city hired a utility clerk to oversee the water and wastewater as well as the electric utility, but there are still collection problems. RUBA staff assisted the community with overdue reports for the Power Cost Equalization (PCE) program and the Regulatory Commission of Alaska last quarter. PCE payments are again being received, but there is still a large outstanding debt owed to the Alaska Village Electric Cooperative (AVEC). The council needs to discuss with AVEC options for repayment. Manokotak Ralph Andrew, LGS/RUBA, Dillingham Regional Office RUBA maintained contact with City of Manokotak staff during the quarter as they worked to address several deficient RUBA management assessment indicators. RUBA traveled to the community February 12, 2009 with the newly assigned Village Safe Water (VSW) engineer and contractors working with the city to assemble a new sanitation feasibility study. City staff is working to resolve several deficient essential indicators and anticipates resolution shortly. RUBA provided support to city staff, primarily with monthly financial reporting and budget matters during the quarter. The VSW engineer assigned to the community was in contact with city staff to encourage resolution of deficient indicators. City staff continue reviewing and addressing recommendations RUBA provided during the February visit. Also during that visit, RUBA initiated work on a water/wastewater rate analysis expected to be complete by the coming quarter. January — February — March 2009 3 Quarter FY09 - RUBA Report — wr Bd Report, McGrath Tammy Helms, LGS/RUBA, Anchorage Office On January 14, 2009, Anchorage RUBA staff traveled with a QuickBooks contractor to the City of McGrath. This trip was the first of three onsite visits to install and provide training for the QuickBooks accounting system. RUBA staff and the QuickBooks contractor provided program training for city staff, accounting system reconfiguration, and entered customer accounts and payroll information into QuickBooks. A second onsite community visit was scheduled in February to provide additional onsite training and assistance. The QuickBooks technical assistance and staff training should substantially increase the local government's capacity in the area of financial management. Nelson Lagoon Julie Dirks, LGS/RUBA, Anchorage Office Justine Gunderson, Administrator of the Nelson Lagoon Village Council, contacted RUBA staff to schedule a RUBA assessment. The assessment will be done in the second quarter 2009. Efforts were made to recruit participants for QuickBooks and UTM courses with no success. The Remote Maintenance Worker (RMW) for Aluetian Pribilof Islands Association contacted RUBA staff regarding a winter storm and beach erosion exposing a portion of their water transmission line between the water source and the community. He also informed RUBA that the water line is frozen. They have an estimated 45 to 60 days of water in their storage tank and have asked for assistance in pursuing financial aid to replace or relocate at least 800 feet of water line. With this being the only potable water source for the entire community, it may be considered a public health threat and a loss of critical infrastructure. The Division of Homeland Security and Emergency Management was notified of the situation. The community has applied for a Climate Change Impact Assessment Grant which will provide an evaluation of the situation and recommendations. Nikolaevsk Earl Gibson, LGS/RUBA, Anchorage Office Two water plant operators completed the Operations Management class held in Ninilchik, Alaska, from March 9-13, 2009. This class focuses on what utility managers need to know about water and wastewater operations and included lessons on Public Relations, Data Collection and Reporting, Contingency Planning, Operations and Maintenance Scheduling, Safety, and Inventory Control. One of the two operators, Alexey Kalugin, has now completed the series of six utility management classes. Nikolaevsk now has in place a utility manager and an operator that have both completed all six utility management classes. A second operator has completed three out of the six classes. RUBA staff submitted a tax authorization request to the IRS and has received a report that the community is current with all taxes. Nikolaevsk continues to submit monthly finance reports in a format that compares revenues and expenses to adopted budget amounts. The stability and professionalism of the staff contributes to them continuing to meet all RUBA essential indicators. - 143 - January — February — March 2009 3 Quarter FY09 - RUBA Report Nikolai Tammy Helms, LGS/RUBA, Anchorage Office Over the past nine months, DCRA staff has had weekly contact with the Nikolai community and in August 2008 began assisting them with preparations for the first regular city council election in five years. The election was held in October but was contested. During the following three months, numerous offers to assist the community in holding a special election were made by DCRA staff without response, even though the community remained unable to access state community revenue sharing funds. On February 18, 2009, the Nikolai City Council passed a resolution to hold a special election on March 31, 2009. DCRA staff assisted with preparations to ensure the proper steps were taken to hold the election in accordance with the City of Nikolai ordinances. On March 31, 2009 the community held the special election to elect seven new city council members. DCRA Local Government Specialists traveled to the community at the community's request to provide assistance. DCRA staff members observed the election and were able to help with questions regarding the ballot counting process, posting the election results, and setting up the meeting to certify the results on April 3. There were lots of questions about how and when the new council members start their terms, elect officers, appoint a city clerk and business items that need immediate attention. Forty four of the 59 available voters turned out to vote. The newly elected council members as well as community members have requested assistance with training for the new council members. The community would benefit from further onsite assistance in the coming months. People were appreciative and thanked DCRA staff numerous times for coming to their community to help. Old Harbor Tammy Helms, LGS/RUBA, Anchorage Office The City of Old Harbor has been contacted about an upcoming Elected Officials training co-sponsored by the RUBA program. This training is scheduled in May and will be held in Kodiak. Funding is available for two staff members to attend the training at no cost to the community. RUBA staff attended the Kodiak Archipelago Rural Regional Leadership Forum held in Kodiak January 28-29, 2009. The City of Old Harbor was one of six Kodiak village communities that were in attendance. Individual community update presentations, regional transportation planning for an island-wide comprehensive transportation system feasibility study, as well as discussions on community health, rural zoning, mapping, and fisheries issues were discussed. DCRA is currently working with the Kodiak Island Housing Authority on a mapping project of the villages. RUBA staff presented to the Forum members information on the RUBA program and training opportunities available. A presentation by USDA-Rural Development gave an overview of the direct loans and grants available through USDA and there was a discussion on the utilities program and how those loans and grants can be used in conjunction with ANTHC or Village Safe Water funds. Water/Sewer projects continue to be a large need within the Kodiak villages. Butch White with the Alaska Energy Authority joined the meeting via teleconference to discuss alternative energy with a focus on wind powered projects. - 144 - January — February — March 2009 3” Quarter FY09 - RUBA Report eee EA A Apr Tanana Jermey Johnson, LGS/RUBA, Fairbanks Regional Office Fairbanks RUBA staff made a site visit to Tanana at the end of January 2009 to assist the utility in preparing a budget and review the RUBA report. RUBA staff attended a Too'gha board meeting and urged the utility to adopt a budget. Too'gha's prior budget ended in a deficit and their new fiscal year began October | without adopting a new budget. Two major budget areas needing corrections are the budgeted fuel and wage line items. RUBA staff encouraged the board to investigate purchasing a programmable thermostat that will automatically change the tempature by date and hour within the washeteria, as a three degree reduction equals a 9% savings. The board may also consider reducing hours and increasing user fees for water/wastewater services and the washeteria. Too'gha balanced the previous budget by requesting funds from the tribe and city. RUBA recommended that Too'gha request the anticipated deficit at the start of the year instead of operating in a negative budget cycle. The board decided to create a new budget, anticipate the financial shortfall, and request the amount in advance from the city and tribe. The board felt that savings can be had by implementing a number of actions discussed; increase user fees, reduce wages, and reduce heating costs. Thorne Bay Lawrence Blood, LGS/RUBA, Juneau Regional Office The City of Thorne Bay agreed to conduct a field trial of the Check Up Program for Small Systems (CUPSS) software. CUPSS is an asset management tool developed by the Environmental Protection Agency (EPA) for small drinking water and wastewater utilities. With the CUPSS software, a utility gains a better understanding of its financial situation and can develop a tailored asset management plan. The RUBA program is providing financial assistance through a small grant to help cover administrative needs. Initial reports from the city indicate there have been problems implementing the program and that it is not user friendly. The public works supervisor continues to enter data and work toward generating an asset management plan for Thorne Bay. The City of Thorne Bay continues to meet all essential management indicators; however, the utility is listed on the latest Significant Non- Complier list (2/11/09), for exceeding allowable disinfection by-products. Whitestone Community Association Jeremy Johnson, LGS/RUBA, Fairbanks Regional Office Fairbanks RUBA staff traveled to Whitestone on March 3, 2009. The purpose of the trip was to meet with the Whitestone Community Association (WCA) President for a tour of the community and to discuss infrastructure needs and funding resources. At the time of the visit, linemen from Golden Valley Electric were doing a live test of bringing power to the community. The community has created its own power and the new distribution lines into the community bring to fruition a multi-year project which will effectively reduce power costs by half. The Whitestone Community Association President also requested assistance from RUBA in making improvements to the Articles of Incorporation and Bylaws. It was the President’s desire to meet separately where more time would allow for actual language creation. WCA is also in the initial process of creating plans for a fire hall/EMT facility. In the short amount of time that the community has been established (1980s), there have been major infrastructure improvements with more projects planned. WCA has requested RUBA assistance in planning future projects to provide services to community members. - 145-