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Rural Utility Business Advisor Program RUBA Quarterly Report Jan-March 31 2008
Rural Utility Business Advisor Program RUBA Quarterly Report January 1 - March 31, 2008 Third Quarter FY08 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, 2008 Scope of Report This report summarizes activities of the Department of Commerce, Community, and Economic Development (Commerce), Division of Community and Regional Affairs, (DCRA) in regards to the Rural Utility Business Advisor (RUBA) Program. The report documents RUBA activities for the period of January 1 through March 31, 2008. This report describes 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 staff traveled to and provided on-site assistance this quarter. Major Issues Staffing Karlin Itchoak accepted the position of Local Government Specialist in Nome. His duties will include providing on-site assistance to both tribal and municipal governments, presenting local government training and answering Rural Utility Business Advisor program . Tequests. Previously Karlin interned for Senators Frank Murkowski, Ted Stevens, and Fred Zharoff, was the first Native Student Body President for UAF, and served as the first Native Deputy Magistrate in Nome. To add to his UAF degrees in political science and Alaska Native studies, Karlin recently graduated from Gonzaga University in Spokane with a law degree. His expertise in tribal law and tribal affairs will be a great benefit to the RUBA program. Recruitment is currently posted for a Local Government Specialist position in Bethel to provide assistance to communities in that region. This position became vacant when Paul Chimiugak left in February. Weather and Fuel Delivery Issues: Extreme winter weather resulted in higher fuel consumption for many utilities. In a few cases, systems froze due to lack of fuel reserves and delivery. The additional fuel use significantly affects already strained finances in rural communities. A secondary issue is the continued rate of fuel price increase for heating oil and gasoline in rural Alaska which is hurting local economies, threatening public service, and affecting subsistence practices. RUBA Program Scope of Report Utility Management Training Materials: RUBA staff from regional offices met in Anchorage to work in updating the six RUBA utility management training courses. The revision of the materials ensures that content is up-to-date and relevant for students taking the classes. RUBA staff made progress in editing and refining existing course material and anticipate completion of the ‘Introduction to Sanitation Utility Management’ course next quarter. The ‘Personnel Management for Rural Utilities’ revision is completed and the other four courses should be finalized soon. In recent years, approximately 125 rural utility managers and staff participate annually in RUBA sponsored training, most of which are held in rural communities across Alaska. . Utility Rate Setting: Operational and maintenance costs continue to climb while local revenues are in a decline. Utilities across the state are contacting RUBA with requests to assist with rate analysis for utility services in an effort to decrease the need for general fund subsidies for what should be an enterprise service. Setting and reviewing water and wastewater utility rates is essential to sustaining the fiscal health or rural utilities; however, the rate setting process is often misunderstood and avoided by utility managers. The RUBA program has assisted several communities in justifying current rates and/or educating the customers with the need to increase rates. RUBA has also contracted Turnagain Press to develop an interactive Excel spreadsheet and associated guidebook for setting rural water-and wastewater utility rates. Coordination/Communication Alaska Rural Utility Collaborative: A grant agreement was signed between the Division of Community and Regional Affairs Rural Utility Business Advisor (RUBA) and the Alaska Native Tribal Health Consortium’s statewide utility association Alaska Rural Utility Collaborative (ARUC). ARUC is a pilot project to develop a regional utility that offers centralized management and accounting functions to member communities. Currently the communities of Upper Kalskag, Lower Kalskag, Russian Mission, Grayling, Goodnews Bay, Chevak, and Toksook Bay are ARUC members, however these seven communities do not fully fund the program. The grant agreement will support management and bookkeeping assistance to ARUC communities, which will relieve RUBA staff and reduce the delays other communities in the Yukon Kuskokwim region are encountering in receiving RUBA assistance with utility management issues. Reducing the delays will result in utilities being able to apply for funding quicker, and will increase the number of successful utilities being built. The period of performance for this grant agreement ends June 30, 2008, but may be renewed for two one-year periods. RUBA Quarterly Report — 3rd Quarter FY08 - n ' RUBA Program Scope of Report Bristol Bay Area Health Corporation: A grant agreement was signed between the Division of Community and Regional Affairs Rural Utility Business Advisor (RUBA) Program and the Bristol Bay Area Health Corporation (BBAHC). This agreement will reduce delays that communities are encountering in receiving assistance with utility management issues. Through this agreement, RUBA will fund a position hired by BBAHC that will work closely with RUBA staff in the Bristol Bay region to provide assistance to communities that are working to improve utility management capacity. The position will work with utilities to satisfy deficient management indicators found while conducting RUBA management assessments. This involves changing management practices, policies, and systems and entails interacting with utility staff on day-to-day issues, and providing advice and assistance to city and tribal councils, which are often the policy making boards for rural utilities. The period of performance for this grant agreement ends June 30, 2008, but may be renewed for two one-year periods. Remote Maintenance Workers: Remote Maintenance Worker (RMW) Steve Evavold contacted RUBA with a proactive plan to assist rural water operators. He had identified the lack of all operators completing water tests routinely as required by federal and state regulations. The RMW asked RUBA staff to help create a calendar with important water plant operations and maintenance items listed for sanitation requirements. These items include routine test dates, training opportunities, and available resources. RUBA staff and the RMW inserted rural water plant photos for the background of each month to increase awareness of the variety of the systems. The calendar was distributed to the Kodiak region for input and suggestions from operators. It was well received and will be copied and distributed to a wider base. Alaska Rural Water Association (ARWA): RUBA staff met with Alaska Rural Water Association staff to explore the possibility of the Certified Utility Manager Program. RUBA proposes a small grant to fund the management of a training data base, testing and scoring of training completed, and issuance of a certificate upon successful completion of eight RUBA utility management courses. RUBA has developed the six courses as 32-hour presentations in the areas of planning, organizational, personnel, operations, finances, and introduction to utility management, governing body roles and utility clerk duties. These courses are constructed to cover material that will unite the manager and operator in their role to provide safe clean water. The State of Alaska, Department of Environmental Conservation manages the Certified Water/Wastewater Operators program, however there is no current certification for water/wastewater managers. RUBA Quarterly Report — 3rd Quarter FY08 -3- RUBA Program Scope of Report Technical Assistance Providers (TAP): On March 19, 2008, Juneau RUBA staff participated in a meeting with other rural sanitation professionals to provide intensive, coordinated, and ongoing technical assistance to the Hydaburg public water system staff. Monthly meetings are conducted between individual water systems and Alaska Department of Environmental Conservation drinking water project engineers, remote maintenance workers, and RUBA contacts assigned to the community. TAP members provide the system with short-term goals to be accomplished over the month, review accomplishments from the previous month, and provide necessary support. Currently there are four (Gambell, Scammon Bay, Tununak, and Hydaburg) public water systems receiving assistance from the group. Southeast Conference: Juneau RUBA staff attended the Southeast Conference mid-session summit meeting in Juneau on March 27, 2008. For two days, Southeast Conference members including municipalities, Native corporations, village councils, regional and local businesses, civic organizations, and individuals from throughout the region met to discuss legislative priorities with their legislators. The topics discussed during the meetings were centered on regional transportation, timber, energy, fisheries, tourism, economic development, and sanitation projects. Norton Sound Health Corporation (NSHC): Nome RUBA staff received a request from NSHC to assist in drafting a joint utility board ordinance for the City of Golovin. The Mayor of Golovin and City Council reported feeling overwhelmed with personnel issues and the responsibilities of owning and operating both an electric and water/wastewater utility. They desired to form a joint utility board to administer both enterprises. RUBA staff drafted a joint utility board ordinance and is coordinating a trip to Golovin with the Remote Maintenance Worker (RMW), Alaska Native Tribal Health Consortium (ANTHC) engineer and RUBA to address administrative and mechanical issues with the city. NSHC also requested Nome RUBA staff prepare a presentation for the new NSHC-CEO from Alabama. Since he was unfamiliar with Alaska, an overview of types of local governments was included in the presentation along with the state community and regional map. Additional information was compiled in an issue paper that outlined an explanation of local government infrastructure and funding issues for Bering Strait communities. Dillingham Village Leader Workshop: Dillingham RUBA staff provided an overview of the RUBA program and the Division of Community and Regional Affairs (DCRA) programs and services to a training workshop for village administrators and tribal council presidents sponsored by the Bristol Bay Native Association, a regional nonprofit serving the communities in Bristol Bay. Approximately 40 village staff and elected officials attended the event representing 20 Bristol Bay communities. Participants expressed interest in RUBA training offerings, the DCRA website, and statewide fuel price data collected by DCRA Research and Analysis staff. — —_ RUBA Quarterly Report — 3rd Quarter FY08 -4- RUBA Program Scope of Report Kodiak Regional Leadership Forum: RUBA staff member Tammy Helms attended the Kodiak Archipelago Rural Regional Leadership Forum January 30-February 1, 2008. All six communities on Kodiak had between one to four representatives attend. Chiniak also had two representatives. Staff from the Kodiak College, Denali Commission, and Kodiak Area Native Association were in attendance and gave presentations as well as other state and federal agencies who provide assistance to the communities. RUBA staff presented information notifying the communities of the scheduled utility management training, proposed changes to the Village Safe Water funding process, and assistance and resources that the RUBA program is able to provide. Two major focuses of the forum were formation of a fuel purchasing cooperative and community health issues including sanitation projects. Northwest Arctic Borough: Kotzebue RUBA staff coordinated with the Northwest Arctic Borough, Denali Commission and USDA to discuss regional water/wastewater issues. The discussion centered around the need to collaborate what all communities and agencies can do to eliminate barriers to water and wastewater problems identified within the Northwest Arctic Borough. Also discussed were serious concerns about the long-term viability of current and proposed water/wastewater projects in off-road villages. A need to form a region-wide systematic approach to address and prevent insufficient funding for design and construction and the related problems was addressed. The group decided that the borough will take the lead in setting up a water/wastewater consortium meeting with agencies and communities within the borough next quarter. University of Alaska, Fairbanks: Anchorage RUBA staff traveled to Fairbanks to continue working on the Occupational Endorsement program for certifying utility managers. Students seeking the occupational endorsement from the university will complete participation in six RUBA utility management courses and pass a final competency test. The University has bestowed adjunct professor status upon RUBA staff which qualifies participants to receive college credits for each class completed. Discussion continues as to scheduling classes on campus or continuing to hold them in regional hubs throughout the state. Department of Environmental Conservation (DEC): The RUBA Program Manager attended a joint meeting with DEC, USDA-RD, EPA, IHS, and ANTHC to discuss changes to the state sanitation Capital Improvement Program grant application and the Federal Sanitation Deficiency System scoring process. One significant change to the application process that will significantly affect RUBA work load is the requirement of each applicant to have a completed RUBA management assessment and meet all essential indicators of that assessment prior to submitting the application in June 2008. On March 24, 2008, DEC-Village Safe Water also requested that the RUBA Program Manager co-present information to the Denali Commission staff regarding the topic of sustainability and the VSW project funding process in general. Specific topics covered included: eligibility factors for VSW funding including capacity assessments; scoring and prioritization criteria for funding allocation; construction funding conditions including business plans; capital and operating cost limitations; and, sanitation facility master plans and the approval process. RUBA Quarterly Report — 3rd Quarter FY08 -5- RUBA Program Scope of Report Internal Revenue Service: RUBA staff attended a meeting of the Rural Alaska Pilot Project (RAPP) at the Internal Revenue Service (IRS) office in Anchorage February 7, 2008. Attending the meeting were staff from IRS, the Denali Commission, and the Alaska Department of Commerce, Community, and Economic Development. RAPP meetings are held quarterly to discuss how rural Alaskan tribal and municipal governments can be assisted with their financial and tax problems. IRS representatives reported on the employment tax workshops that they continue to hold. A workshop held at the Bureau of Indian Affairs (BIA) Provider’s Conference in Anchorage was well attended with 88 participants and plans were made to hold the workshop twice in Anchorage in April. The IRS is planning another workshop in December for the Tanana Chief’s Conference and is looking for opportunities to present these workshops regionally. RUBA staff presented several copies of the recently printed “Introduction to QuickBooks for Sanitation Utilities’ manual to the IRS tribal government staff. U.S. Army Corps of Engineers: RUBA staff met with representatives from the U.S. Army Corps of Engineers, Federal Emergency Management Association (FEMA), and Alaska Coastal Management Program (ACMP) staff in February. The Corps of Engineers spoke to changes in Congress in 2005 to deal with erosion. They stated that 187 communities have expressed some version of erosion occurring in their area. The plan in Alaska is to identify erosion issues and judge the relativity of the erosion. Detailed assessments of erosion in Alaska will include a two to three page write-up plus aerial photos for each community. RUBA staff will review the assessments and provide comments regarding the erosion effects on the utility infrastructure prior to the documents being finalized and published. Denali Commission: The Denali Commission Program Managers invited the RUBA Program Manager to attend their staff meeting and explain the process for management assessments in rural communities. Of particular interest was the continued monitoring and requirement for additional documentation after the initial assessment is completed. The Denali Commission staff is entertaining the idea of requiring their project communities to request a management assessment prior to project funding awards. RUBA discussed how infrastructure decisions are made and stressed how one project ties in with others. It was also noted that projects should not be built that current local infrastructure cannot support. The Denali Commission staff and RUBA Manager agreed to cooperate and support each other in the future projects. Alaska Municipal League: Alaska Municipal League/Joint Insurance Association (AML/JIA) Risk Manager Grady Fisher requested RUBA staff present information regarding QuickBooks Pro Accounting during their annual Risk Management Conference. Anchorage RUBA staff distributed copies of the newly published 2007 Introduction to QuickBooks for Sanitation Utilities and spoke to the steps to set up billing and collection procedures using QuickBooks Pro. QuickBooks Pro is a user friendly, low cost computer based accounting system with capacity to handle all rural community accounting needs. RUBA Quarterly Report ~ 3rd Quarter FY08 -6- RUBA Program Scope of Report Performance Goals Staff Development: RUBA staff from the Anchorage, Fairbanks, and Nome regional offices attended a training course on the Power Cost Equalization (PCE) program that was held in Anchorage March 4-6, 2008. The Alaska Energy Authority (AEA) in conjunction with the Regulatory Commission of Alaska (RCA) sponsored the training which covered topics such as RCA and AEA filing requirements (monthly and annually), customer ledgers, and billing. The training utilized hands-on practice with filing reports, manual customer ledger KWH calculations used, line loss calculations, how to determine weighted average price of fuel, and depreciation and amortization schedules. Lots of hands on repetition in completing the reports cemented the training. The training was valuable to RUBA staff that often assists communities with PCE reporting issues. PCE subsidies provide a revenue source to communities which also affect utility operational expenses. RUBA staff assigned to publications and material development attended a two day Power Point workshop. This workshop taught skills to create impressive presentations using templates as a ready-made starting point and how to use existing presentations to create different shows for a variety of audiences. The RUBA program has developed eight 32-hour utility management related training courses plus various single topic trainings and all use power point to some degree. New Publication: Completion of a contract with Turnagain Press of Anchorage resulted in a new manual entitled QuickBooks for Sanitation Utilities. This publication is a comprehensive user manual for city and tribal clerks that use QuickBooks Pro accounting software for managing utilities and other community enterprise services. The manual replaces earlier versions with more complete, up-to-date information designed to accommodate accounting situations unique to rural utility management. Travel to Communities On-site Management Assistance: While not formally listed as a performance standard, travel to communities is critical to fulfilling the RUBA program mission. At the invitation of communities, RUBA staff completed 65 trips to 46 communities during the third quarter of FY08. Fifteen RUBA staff spent a total of 161 days providing on-site assistance including conducting management assessments, city clerk training, city administor training, new utility planning, and providing guidance relating to financial accounting and reporting, utility rate setting, collections, billing, codifying city ordinances, and preparing IRS repayment agreements. Management Assessments and Follow-up Assistance: For the third quarter of FY08, RUBA staff conducted 141 management capacity assessments or reassessments. Of the 141 communities, 77 now meet all essential indicators. This is a 24% increase in communities served who are now meeting all essential indicators which are required to be met for receiving sanitation project funding. In addition, 14 communities now meet all sustainable indicators with 20 additional communities showing a gain in the number of sustainable indicators met. RUBA Quarterly Report — 3rd Quarter FY08 . -7- RUBA Program Scope of Report Increased On-Site Assistance through use of Contractual Staff On-site Management Assistance: Due to a concentrated effort by the state to maintain the status quo of the number of state employees, the RUBA program identified a need and has the funds to hire additional staff, yet is unable to do so. To fill that need, RUBA presented a grant to a regional nonprofit corporation who will hire local staff to perform services related to rural sanitation projects and management of those projects. Bristol Bay Area Health Corporation signed the first grant and is in the process of recruiting a new staff member. This person will be housed in the RUBA Dillingham regional office and mentored by RUBA staff. Alaska Rural Utilities Collaborative: A grant was presented to and signed by the Alaska Rural Utilities Collaborative (ARUC) who will take over and expand statewide the pilot project started in the Yukon Kuskokwim region. ARUC will provide management services _ from a base in Anchorage. The RUBA grant will fund an employee for ARUC who will identify and recruit utilities across the state who do not have the local labor pool or resources to manage their utilities. ARUC provides accounting services and training costs for utility operators. RUBA will continue to receive and monitor monthly finance reports from communities served by ARUC. QuickBooks Pro Assistance: The RUBA program has contracted Turnagain Press to provide on-site installation and training for three RUBA communities per year. Turnagain Press travels to each community a total of three trips approximately thirty days apart to work one-on-one with two utility staff. RUBA staff follows a nomination process to identify which communities receive this assistance. This quarter, Turnagain Press completed the third trip to Port Lions to complete set-up of the utility and training of the staff. They also provided a customized desk top manual for the community. Turnagain Press also made the first two trips to Fort Yukon to install QuickBooks Pro and begin set- up and training. Additionally, Turnagain Press has provided telephone and web-based support. Communities who have received the on-site installation and subsequent training have reported 100% satisfaction with the contractor’s ability to resolve their QuickBooks’ related issues. QuickBooks Pro is a user friendly efficient computer software capable of handling all aspects of municipal and tribal government accounting needs. = —~——_— ——. RUBA Quarterly Report — 3rd Quarter FY08 -8- RUBA Program Scope of Report Training Classes Presented Anchorage: On February 11-15, 2008, the Financial Management for Rural Utilities course was presented in Anchorage. Nine students from Akutan, Anchorage, Beaver, Cold Bay, Homer, Nunam Iqua, Quinhagak, and Thorne Bay participated in the training. Financial Management for Rural Utilities is one course in the series of six 32-hour management courses presented by the RUBA program designed to build management capacity in rural utility staff. RUBA program staff from Anchorage cosponsored this class at the request of Aleutian Pribilof Islands Association. Course topics and supporting reference materials included utility budgets, chart of accounts, rate setting, collections, financial reports, and managerial reports. The course also emphasized the importance of teamwork between the operator, clerk, and council to reduce utility costs, complete customer billings, pursue customer collections, and make sound financial management decisions. Bethel: On February 25-29, 2008, the Introduction to Rural Utility Management course was presented in Bethel. Twelve students from Alakanuk, Bethel, Kipnuk, Kwethluk, Saint Mary’s, Tuluksak, and Tununak participated in the training. Introduction to Rural Utility Management is the first course in the series of six 32-hour management courses presented by the RUBA program designed to build management capacity in rural utility staff. RUBA program staff from Anchorage and Bethel cosponsored this class at the request of Yukon- Kuskokwim Health Corporation. This course provides an introduction and overview to managing a water/wastewater system. The course materials also provide a brief overview of the five other courses in the utility management series. Dillingham: On February 4-8, 2008, the Organizational Management for Rural Utilities course was presented in Dillingham. Ten students from Chignik, Chignik Lake, Ekwok, Goodnews Bay, Levelok, Naknek, Newhalen, and Nondalton participated in the training. Organizational Management for Rural Utilities is one course in the series of six 32-hour management courses presented by the RUBA program designed to build management capacity in rural utility staff. RUBA program staff from Dillingham and Juneau cosponsored this class at the request of Bristol Bay Area Health Corporation. Course topics include levels of service; organizational structure; utility roles, responsibilities, and accountability; utility ordinances; customer agreements; communication; and administration of a utility. = = — RUBA Quarterly Report — 3rd Quarter FY08 -9- RUBA Program Scope of Report Kodiak: On January 14-18, 2008, a 24-hour QuickBooks Pro computerized accounting class was presented in Kodiak. Eleven students from Akhiok, Karluk, Kodiak, Larsen Bay, Old Harbor, and Port Lions participated in the training. The course was instructed by contractors Pati Crofut and Joanna Knapp of Turnagain Press under an ongoing contract with the RUBA program. The course focused on accounting for local governments and helped students develop accounting skills through hands-on exercises. Course topics included creating a chart of accounts, setting up and working with a budget, billing, payroll, bank reconciliations, and more. Each student received a QuickBooks Pro instruction manual developed specifically for local government accounting practices. The instructors also provided one-on-one support to communities who had brought copies of their current QuickBooks Pro files. Nome: On February 25-29, 2008, the Personnel Management for Rural Utilities course was presented in Nome. Eight students from Brevig Mission, Elim, Koyuk, Saint Michael, Savoonga, Shishmaref, Teller, and White Mountain participated in the training. Personnel Management for Rural Utilities is one course in the series of six 32-hour management courses presented by the RUBA program and designed to build management capacity in tural utility staff. RUBA program staff from Nome, Kotzebue, and Anchorage cosponsored this class at the request of Norton Sound Economic Development Corporation. Course topics and supporting reference materials addressed personnel policies and procedures, hiring practices, workplace safety, disciplinary procedures, communication styles, and motivation methods. 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 mini-grant fund to provide airfare and lodging reimbursements to utility staff who attend RUBA sponsored classes. This quarter, RUBA provided reimbursement to 21 students who attended RUBA sponsored classes. This supported utility training needs for a total of $20,639.63. Coordination with Sanitation Entities and Policy Groups Conference Presentations: The RUBA Program Manager sits on the executive board of Alaska Water Wastewater Management Association and attended planning meetings to coordinate the annual association meeting scheduled for May in Anchorage. RUBA will present two sessions during the annual conference. RUBA Quarterly Report — 3rd Quarter FY08 -10- RUBA Program Scope of Report RUBA Program Activity Map January 1 through March 31, 2008 Legend + UTM Students # On-Site Visits RUBA Quarterly Report — 3rd Quarter FY08 -ll- January — February — March 2008 3" Quarter FY08 - RUBA Report a eee A Keport Table of Contents Crooked Creek .. 37 Emmonak... 2-43 Gambell.. we 4D Golovin .. 55 Hooper Bay -61 Hughes ........... 67 Huslia....: 73 Kasigluk. 79 Larsen Bay . 85 Mekoryuk oI] Nanwalek 97 Napaskiak ..103 Newhalen ... 109 Nightmute ...... IS Nondalton... 121 Old Harbor. Pitka’s Poini Platinum... “ Saint Mary’s 145 Selawik....... 151 Shageluk................ 157 Stevens Village . .. 163 Tuluksak.........esececeseesesesseeesssesessesssseescsnesssesscsesessesuessuesessseesessssesssneseaeecacsucsssesecesacssveavaneesecaee 169 a nonce sseenp coin svensewscersdacecusimeatrcusssascnighestasessecicanefensavarsesgsosnecadscictnsesesescosaesanan 175 January — February — March 2008 3” Quarter FY08 - RUBA Report January — February — March 2008 3" Quarter FY08 - RUBA Report eee ES RUD A Report Table of Contents Non-RUBA Communities Nunapitchuk Pilot Point Point Hope Port Lions.... Scammon Bay .... January - February — March 2008 3” Quarter FY08 - RUBA Report January — February — March 2008 3 Quarter FY08 - RUBA Report eee EE ROA Report Community Activity Reports Third Quarter FY08 January | — March 31, 2008 January — February — March 2008 3” Quarter FY08 - RUBA Report -6- January — February — March 2008 3” Quarter FY08 - RUBA Report Akiak Activity Report Community Overview Lead RUBA Staff: Flora Olrun, Bethel Office ~% 2003 Population: 378 Region: Lower Kuskokwim ed Local Government: Unincorporated “3 ‘ Ty ol A new well, water treatment plant and storage tank were steer 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 The Native Community of Akiak had a RUBA assessment done on August 9, 2007 and failed several essential indicators. On February 19, 2008 they met all essential indicators for the assessment. They submitted the 2008 budget and monthly financial statement ending February 29, 2008. The reports are in their file located in the Bethel regional office. Their worker's compensation insurance is current through January 12, 2009 through Liberty Northwest. They were found to be in compliance with filing of tax reports and deposit requirements. Akiak Community Water System's last stage | violation was in February, 2007. They should return to compliance by February, 2008. They submitted daily operation records dated for the month of February 2008 and a monthly log sheet for their water system. January — February — March 2008 3" Quarter FY08 - 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 &X The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. Xl YTD revenues are at a level equal to or above those budgeted. Xl YTD expenditures are at a level equal to or below those budgeted. x] A monthly manager’s report is prepared. X Budget amendments are completed and adopted as necessary. Finances Comments: On November 7, 2007 Akiak Native Community approved the 2008 Water Treatment Plant and Laundry budget. The budget is balanced and realistic, and contains sufficient revenues to cover operating expenses. Monthly financial expenditure reports are being submitted to the council based on the approved 2008 budget. The Tribe had a large, delinquent electricity bill. On November 7, 2007 written notification was received by the Bethel office, from the City of Akiak stating they zeroed out the bill and Akiak Native Community ordered 5000 gallons of fuel. Fuel is stored at the water house which has a thousand gallon storage tank. The remainder of the fuel is stored at the bulk fuel tank farm which is owned by the Native Community of Akiak. If additional fuel is needed, it is purchased from the local village corporation. 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. 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. MHXMK XR n eS oa MXk January — February — March 2008 3 Quarter FY08 - RUBA Report ee TES | RUBA Report’ Accounting System Comments: Under Akiak's Code of Water and Sewer Ordinance, Section 2.14 contains language for billing and payments. The Tribe has one customer for water service, the Yupiit School District. The tribal office building is also provided water service. The school is the only customer that is invoiced and they pay a flat rate each quarter. Individual residents purchase prepaid tokens for water. Accounting records for the water service are currently being identified as part of the general fund. The QuickBooks program can identify the accounts as separate accounts. The water service account needs to be separated from the general account. Both the accounting clerk and the executive director expressed their need for additional training in QuickBooks. 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. If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: IRS has deemed the Native Community of Akiak compliant with tax filing and tax deposit requirements. 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. &X The utility has adequate written job descriptions for all positions. KK] The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. The utility provides training opportunities to staff as needed and available. &% &® Ww -9- January — February — March 2008 3" Quarter FY08 - RUBA Report Personnel System Comments: Worker's compensation is current and posted. The insurance is through Liberty Northwest and is good through 1/12/2009. The Native Community of Akiak has a personnel policy which was completed by a consultant in 2003. The Executive Director expressed a need for the personnel policy to be updated. 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. On December 26, 2007 the Executive Director called and said the personnel files are now updated and contain I-9's, letters of acceptance and hire. 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 NHXXRRRY X The utility has adopted an organizational chart that reflects the current structure. xl The policy making body meets as required. x) The utility complies with the “Open Meetings Act” for all meetings. Organizational Management Comments: On February 29, 2008 Akiak sent a copy of their meeting minutes for February 19, 2008 where they approved their Water and Sewer Ordinance. Copies of the meeting minutes and ordinance are contained in their file located in the Bethel regional office. 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 1 Water Treatment and Water Distribution certification. The community does not have piped water to individual homes yet but in preparation for when it does occur, the council approved a Water and Sewer Ordinance. 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. -10- January — February — March 2008 3” Quarter FY08 - RUBA Report ——— OO he port Operation of Utility Essential Indicators Yes No 4} The utility operator(s) are actively working towards necessary certification. X The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators 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. 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). KK] The utility is not on the Significant Non-Compliance (SNC) list. {The utility maintains an inventory control list. The utility maintains a critical spare parts list. HRN 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 last Consumer Confidence Report was dated 6/28/07. Akiak Community Water System's last stage 1 violation was in February, 2007. They should return to compliance by February, 2008. RUBA Activities For The Coming Quarter On February 29, 2008 Akiak Native Community met all of the essential capacity indicators. RUBA staff will continue to work with the Akiak Native Community staff on sustainable indicators. -1l- January — February - March 2008 3” Quarter FY08 - RUBA Report January — February — March 2008 3" Quarter FY08 - RUBA Report Alakanuk Activity Report Community Overview Lead RUBA Staff: Elizabeth Manfred, Bethel Office my, 2003 Population: 678 Region: Lower Yukon of Local Government: 2™ Class City a ~~ The City of Alakanuk operates the piped water and secant 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 RUBA staff traveled with the Village Safewater (VSW) Engineer to Alakanuk in March to meet with city staff and complete a RUBA assessment of management capacity indicators. A sanitation project to install plumbing and hook approximately eight homes to the existing service has been on hold due to not meeting several essential indicators. RUBA met with the mayor, manager, water operators and tribal administrator to ask questions concerning the managment process for the utility and receive documentation of those policies and processes. The city now has an energetic administrator who has attended utility management training and adopted many of the new skills he learned. RUBA staff toured the water treatment plant which also houses the washeteria and saunas. Remodeling was underway in the women's sauna area with plans to remodel the men's sauna also. The building is very old yet well maintained. Concessions sold in the washeteria are an additonal revenue source for the city. The city meets all essential management indicators at this time. A VSW funded project will mobilize in May 2008 for service connections and house plumbing for homes that were moved out of the erosion zone. -13- January — February — March 2008 3 Quarter FY08 - 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. & The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. RX 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. XJ YTD revenues are at a level equal to or above those budgeted. & YTD expenditures are at a level equal to or below those budgeted. &® A monthly manager’s report is prepared. —X] Budget amendments are completed and adopted as necessary. Finances Comments: Monthly finance reports are prepared as two separate documents. RUBA staff will work with Alakanuk staff to develop a single simple report which will compile all finance information on one page and make it easier for the governing body to read and understand. The monthly expenditure report lists, by department, the adopted budget, the month-to-date, the year-to-date and the amount remaining. The revenue report is by month and year-to-date. RUBA staff will work with city staff to incorporate the adopted revenue budget in future reports. The city is current on paying all water/wastewater bills to Alaska Village Electric Coopertive (AVEC). The city has fuel storage capacity of 40,000 gallons. The utility fuel is metered with an average of 12,500 gallons used annually. Presently the utility serves 119 residential customers, 4 commercial customers, and 7 metered customers piped water and sewer. Three residents and one commercial customer receive regular water delivery. -14- January — February — March 2008 3 Quarter FY08 - RUBA Report a ee Ort Accounting Systems Essential Indicators Yes No &X) The utility has adopted a collection policy and actively follows it. X The utility bills customers on a regular basis. ® An accounts receivable system is in place which track customers and reports past due accounts and amounts. &) An accounts payable system is in place. Xl 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 &) 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. 4] The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. Accounting System Comments: The utility issues joint monthly statements for both water and sewer. They are changing the collection procedure to shorten the 90 day grace period after a bill is issued and prior to disconnection. QuickBooks Pro is used for all accounting functions including payroll, accounts receivable and accounts payable. The utility opeartor also keeps a copy of any invoce submitted for payment and checks with the clerk to see if payment has been issued. This works as an internal check and balance system. When operators need to purchase items, they research vendor information and submit the request to administration. The rquest is checked against the budget and a purchase is approved or denied. Tax Problems Essential Indicators Yes No 4} 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: Recent IRS tax liens have been released and a repayment agreement signed and approved. The IRS states that the city is meeting the repayment schedule and has deemed the city compliant at this time. January — February — March 2008 3 Quarter FY08 - 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. 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. & WH Personnel System Comments: The City of Alakanuk has a posted worker's compensation insurance policy from Umialik Insurance Company for the period of February 12, 2008 through February 12, 2009. This insurance policy covers utility staff and city workers. The city has an adopted Personnel Policy which was originally reviewed by Commerce. RUBA staff will work with the city to review it and suggest revisions as new employee/employer laws have changed. All staff are at-will hire. On-site training is initially provided when hired with travel and off-site training allowed and encouraged as funding permits. 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 Meetings Act” for all meetings. NNNKXwe -16- January — February — March 2008 3 Quarter FY08 - RUBA Report —— th ES = ROD A Report Organizational Management Comments: The utility is managed by the City of Alakanuk. The city council meets regulary and is active in enforcing colections and adopting new policies. Recently they researched utility revenues and expenses and determined user fees were not meeting expenses. A proposed rate increase was adopted and will begin May 1, 2008. The collection policy is also being revised to shorten the grace period for non- payment/disconnection from 90 days to 45 days. The manager recently attended the first course (Introduction to Management of Rural Utilities) of the series of RUBA sponsored management classes in Bethel. 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 facilities. Sustainable Indicators &X The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. x The utility has a safety manual and holds safety meetings. &) 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). 1] The utility is not on the Significant Non-Compliance (SNC) list. & The utility maintains an inventory control list. X The utility maintains a critical spare parts list. Operation of Utility Comments: The City of Alakanuk currently operates a Water Treatment 2 system, a Water Distribution 2 system, and a Wasterwater Collection 1 system. They have three part-time operators who are all working toward varying degrees of certification. The lead operator was an opeartor for 24+ yaers but allowed hi certification to lapse. He will retake the test in Bethel in April. The Alakanuk system is on the Significant Non-Compliance list for Stage 1 and Surface Water violations. The system recently fully installed the necessary equipment for continuous recording or CFE turbity data, but they are still trying to work through some operational issues. RUBA will work with the city to draft a safety manual and assist in revising it to Alakanuk’s needs. RUBA Activities For The Coming Quarter RUBA staff will monitor monthly finance reports and assist city accounting staff in developing an easier report format. RUBA will schedule another on-site visit to work with the manager on personnel issues. -17.- January — February - March 2008 3” Quarter FY08 - RUBA Report -18- January — February —- March 2008 3” Quarter FY08 - RUBA Report ———— OS RDA REpOrt Angoon Activity Report Community Overview Lead RUBA Staff Lawrence Blood, Juneau Office oN 2003 Population: 497 Region: Southeast Local Government: 2™ Class City od Vie, AP Angoon is located in Southeast Alaska on Admiralty Island and is connected via the Alaska Marine Highway System. The City of Angoon operates and manages a piped water and sewer system. The city council is the policy making body for the utility. 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 The City of Angoon has made notable progress this quarter towards addressing deficient essential indicators. The FY-08 Budget has been adopted by the council, a workers compensation policy is now in place and the City reports an effort to collect on past due accounts. -19- January — February — March 2008 3" Quarter FY08 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No & XXXN & 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 Xi & x x 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 recently completed their FY-08 Budget. The completion of the FY-08 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. RUBA staff has scheduled a community visit in April to assist the council with a budget workshop to provide an adequate budget process and hopefully produce a balanced realistic FY-09 budget. -20- January — February — March 2008 3 Quarter FY08 - RUBA Report ee h— ee eer’ Accounting Systems Essential Indicators Yes No XX] The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. An accounts receivable system is in place which tracks customers and reports past due accounts and amounts. An accounts payable system is in place. The payroll system correctly calculates payroll and keeps records A cash receipt system is in place that records incoming money and what it was for. The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators A chart of accounts is used that identifies categories in a reasonable, usable manner. &] Monthly bank reconciliation’s have been completed for all utility accounts. XX The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. & XXke Wf Accounting System Comments: In the past, the City did not actively enforce collections on delinquent accounts and the provisions contained in the utility ordinance and collection policy were not routinely followed. As a result, the utility has a large number of accounts that are 90 days past due with a total outstanding accounts receivable in excess of $300,000. The City's collection rate was last calculated at 39%. The Mayor reported an effort to encourage customers to pay past due amounts and remain current on their utility account. This effort should result in an improved collection rate for 4th Quarter 2008. Tax Problems Essential Indicators Yes No & The utility has a system to accurately calculate, track, and report payroll tax liabilities. & The utility is current on filing tax reports. &) The utility is current on making tax deposits. &X] If there are any past tax liabilities, a repayment agreement has been signed and Tepayments are current. Tax Problems Comments: With the tum-over in finance staff, the City was unable to locate any copies of their 941 filings. They are not compliant with the IRS requirements at this time. 221 January — February — March 2008 3” Quarter FY08 - RUBA Report Personnel System Essential Indicators Yes No & The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators ® The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. XX 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. J 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: The City currently carries workers compensation insurance through AML/JIA. The policy runs through 06/30/08. 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. Organizational Management Essential Indicators Yes No & The entity that owns the utility is known and the entity that will operate the utility is set. X The policy making body is active in policy making of the utility. & 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 XX 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 bookkeeper position is currently vacant and the City has no employees who are formerly trained in QuickBooks. The account receivable clerk is making arrangements to attend QuickBooks training next quarter. 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. January — February — March 2008 3” Quarter FY08 - RUBA Report Operation of Utility Essential Indicators Yes No & The utility operator(s) are actively working towards necessary certification. x The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. &X The utility has a safety manual and holds safety meetings. XX] Utility facilities have not suffered any major problems/outages due to management issues that are 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). XX) The utility is not on the Significant Non-Compliance (SNC) list. &X] The utility maintains an inventory control list. KX The utility maintains a critical spare parts list. KNX 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 community was able to address one of the violations by acquiring a working chart recorder that was surplus equipment from the City of Kake and by filing turbidity and chlorine reports on a timely basis and on the appropriate forms. 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 Altemate Method of Supervision Plan and has contacted a level II water treatment operator in the City of Hoonah 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 concems 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: 1) assist in the development of an FY-09 Budget, 2) continue to provide support for increasing collection rates and pursuing delinquent water utility accounts. -23- January — February — March 2008 3” Quarter FY08 - RUBA Report Lal January — February — March 2008 3” Quarter FY08 - RUBA Report Chignik Activity Report Community Overview Lead RUBA Staff: Earl Gibson, Anchorage Office 2003 Population: 95 Region: Alaska Peninsula Local Governments: 2™ Class City od Water is supplied by Indian Creek, which has a dam oe and a reservoir. Water is treated and piped into most of the homes and the school, and a well is available for back-up water supply. A second system serves the Trident fish processor, the airport area, and a few homes, and utilizes a groundwater well as a source. A project now underway will eliminate the dual system by extending a new mainline from a new storage tank at one end of town to the airport at the other end of town. Improvements to the treatment plant will include new filters and upgraded valving and chemical feed equipment. Piped sewage for most of the community is collected in three group systems into community septic tanks and wastewater is discharged via ocean outfall lines. Approximately 45 homes are served, and the remaining few homes use individual septic tanks. An improvement project now underway will replace the multiple system structure with a unified sewer system for the entire community. A new permitted landfill and access road were recently completed. A study is needed to examine the feasibility of hydroelectric generation at Indian Lake. Electricity is provided by city owned Chignik Electric. RUBA Activity This Reporting Period On January 30, 2008, RUBA staff traveled to Chignik to update the RUBA management assessment and introduce the newly assigned RUBA staff. We were met by the VPSO, who took us to the city office. RUBA staff met with the deputy clerk and mayor. The city clerk was unavailable due to family emergency. RUBA staff discussed with Mayor new upgrade changes that have occurred with the utility. The city was now on the Rural Power System Upgrade program. Due to previous problems with keeping accounts from being overdue, the new POWERSTAT system (prepaid service) has made it simple and easy to keep accounts current and reduced or some cases eliminated overdue balances. We also discussed the new sewer project and visited the location where construction has started in getting the holding tanks in place. The next day, RUBA met again with city staff to discuss the status of the City of Chignik. Staff took time to visit the utility shop and to meet with shop employees and check on update of the city's management capacity assessment. The shop did have an inventory list and critical spare parts list. RUBA staff will continue to offer assistance to the community upon their request. ' n nm ‘ January — February — March 2008 3” Quarter FY08 - RUBA Report Capacity Indicators Finances Yes No Xl All revenue and expenses for the utility are listed in the utility budget. & The utility has adopted a balanced realistic budget. &® Monthly financial reports are prepared and submitted to the policy making body. & The utility is current in paying all water/wastewater electric bills. &X The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. ® The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. 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 staff is currently using QuickBooks Pro 2007 for all accounting and the city's enterprises are organized as separate departments within one company. This has made it easier for the new clerk to create meaningful financial reports. The city continues to see a significant increase in their collection rate. The current rate is not yet calculated but is anticipated to be well over 85%. Chignik does not have a manager and monthly manager reports are not submitted to the council. However, status reports are submitted by the city staff as deemed necessary. The city has seen an increase from last year on their raw fish tax and the plan is to purchase fuel on credit and pay for it with tax revenues. As of October |, 2007, city staff established a fuel loan account to cover this winter's fuel consumption and will pay in monthly installments with the first payment made in September for October. 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. XXXK KKK i] a Kk& -26- January — February — March 2008 3” Quarter FY08 - RUBA Report ee ne Report Accounting System Comments: The city uses QuickBooks Pro 2007 for all accounting functions. The council has adopted a water sewer collection policy for the community and is reducing overdue customer debt and disconnecting the water service for non-payment. The utility has 88 customers. All but two customers pay on a regular basis. Of the two customers, one is on a payment plan and the other refuses to pay for their utilities. The city has good credit with Delta Western and Rural Alaska Fuels. The plan is to purchase fuel for the winter on credit. The revenues from the raw fish tax will then be used to pay for fuel on a monthly basis. Tax Problems Essential Indicators Yes No Xl The utility has a system to accurately calculate, track, and report payroll tax liabilities. & The utility is current on filing tax reports. &X The utility is current on making tax deposits. X If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: Payroll is completed using QuickBooks Pro, which calculates, tracks, and reports payroll tax. The City of Chignik maintains current reports/deposits with IRS and DOL. In response to an Authorization to Request Federal Tax Information, the IRS reported that the City of Chignik is current in filing tax reports and deposits. Personnel System Essential Indicators Yes No & The utility has a posted workers compensation insurance policy in effect. : Sustainable Indicators &) The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. X The utility has adequate written job descriptions for all positions. 1 The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. 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. wm -27- January — February — March 2008 3 Quarter FY08 - RUBA Report Personnel System Comments: The City currently has workers’ compensation insurance coverage provided by the Alaska Municipal League Joint Insurance Association. There are job descriptions in place for some of the City's employees but descriptions are needed for other City positions. Performance evaluations have not been established or put into place by the City staff, however, at the Mayor's request, a sample evaluation was provided by RUBA. The City has adopted a personnel policy for the community that was revised by the City Council on June 15, 1995. As of August 23, 2007, the City's personnel policy is generally adequate but staff agrees the policy should be updated to include an evaluation process. New hires receive a 90- day probation period, then the Council performs a verbal evaluation to determine whether the probationary employee should be retained permanently or dismissed. The decision is reflected in the minutes. RUBA staff can assist with updated personnel policies and job descriptions. Organizational Management Essential Indicators Yes No &X The entity that owns the utility is known and the entity that will operate the utility is set. The policy making body is active in policy making of the utility. The policy making body enforces utility policy. 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. RRR Organizational Management Comments: The new City Clerk is in the process of getting a handle on the day to day utility management, with assistance from the Mayor. The City has three operators with certifications for water treatment Operator In Training (OIT) and water distribution OIT. With the new City Clerk in place, the City staff will re- address developing an organizational chart. -28- January — February — March 2008 3 Quarter FY08 - RUBA Report — A 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 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 RWONRR Operation of Utility Comments: The Bristol Bay Area Health Corporation (BBAHC) provides training money and encourages operators to continue professional growth. BBAHC sends a remote maintenance worker (RMW) periodically to provide local training and support. City operators are taking part in AML/JIA's Loss Control Incentive Program, which brings operators together via teleconference each month for a safety meeting. The water utility is currently listed as a Significant Non-Complier because of low chlorine residuals in samples taken late last year. RUBA Activities for the Coming Quarter: RUBA Staff will continue to work with the community to help maintain their compliance with the RUBA assessment. -29- January — February — March 2008 3” Quarter FY08 - RUBA Report - 30- January — February — March 2008 3” Quarter FY08 - RUBA Report Chignik Lake Activity Report Community Overview Lead RUBA Staff: Earl Gibson, Anchorage Office 2003 Population: 117 yw NF Region: Alaska Peninsula Local Governments: Unincorporated od Well water is piped directly to 32 households. An old or po wood staved storage tank has been dismantled and a PMA oot large steel storage tank has been constructed farther from the community, at a higher elevation and close to a series of new wells. As part of the project, a new water treatment facility will also be built. The school has its own well. Approximately 70% of the homes are plumbed. Fifteen HUD homes are connected to a central sewer system with a waste pump and lagoon; the remainder use individual septic systems. Funds have been provided by VSW to develop a water and sewer Master Plan. Refuse is disposed of by residents in the new landfill. A power consolidation project was recently finished that generates power year-round from school district owned equipment, and is distributed to the community by Chignik Lake Electric. IGAP funded a project to install Powerstat prepay electric meters for residents in the village, which was completed in early 2006. RUBA Activity This Reporting Period On January 28, 2008, RUBA staff traveled to Chignik Lake and met with Della Kalmakoff, Tribal Administrator, to complete a RUBA Assessment of Management Capacity Indicators. Tribal staff provided the documentation supporting the positive conclusions in this report. In many areas, Tribal staff was unable to provide documentation and those areas remain non-compliant. RUBA staff continues to offer assistance to the community and to assist the community in becoming compliant. -31- January — February — March 2008 3” Quarter FY08 - RUBA Report Capacity Indicators Finances Yes No { All revenue and expenses for the utility are listed in the utility budget. XX The utility has adopted a balanced realistic budget. XX Monthly financial reports are prepared and submitted to the policy making body. XX) The utility is current in paying all water/wastewater electric bills. x The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. XX) The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. 2 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 financial and accounting elements of the utility's management are consistent with the assessment completed in November 2006. There is a mixture of manual and computerized procedures using QuickBooks Pro 2006 accounting software. There was a form of a budget for the water/sewer utility; however, was not sure if it had been adopted and entered into the QuickBooks program and the year-to- date revenue and expense data needed for monthly. financial reports was not readily available. Without this information, accurate reports were not available for review by the council. This also made it difficult to know if the utility is receiving sufficient revenues to cover operating expenses. During the assessment, it was discovered that the water utility was not current with paying their electric bill. A significant amount is owed, and the balance has remained unchanged for some time, indicating the water utility has not been billed for at least the last few months. In addition, the amounts that had been billed per month exceeded the budgeted amount for water utility electric for the whole year. The administrator did say that some of the residents are now on the new POWERSTAT (pre-pay) system and the rest of the community would eventually be put on the system. This action would help in collecting past due balances. She also stated that there was a plan to use an outside agency to do collections since there was a problem with collecting present and past due balances. This is something to be discussed at the next council meeting. There is a washeteria service operated from the water building with unreported revenues at this time. At this time there are no revenues available for repair and replacement costs, nor have funds for this been budgeted or set aside. Year-to-date revenue and expense data was not available, so it is unknown whether revenue and spending are above or below budgeted levels. The administrator just took over three weeks prior to this assessment, which meant that there is no written manager's report and very limited briefings to the council. January — February — March 2008 34 Quarter FY08 - RUBA Report ————— Se ee Report Accounting Systems Essential Indicators Yes N & The utility has adopted a collection policy and actively follows it. XK 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. KX Anaccounts payable system is in place. X The payroll system correctly calculates payroll and keeps records & A cash receipt system is in place that records incoming money and what it was for. X The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators A chart of accounts is used that identifies categories in a reasonable, usable manner. & Monthly bank reconciliation’s have been completed for all utility accounts. KX) The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. Accounting System Comments: The utility has an ordinance covering the operation of water, sewer, and garbage service utilities, which - includes sections containing collection procedures. Due to a number of changes in staff personnel and the lack of available information, the new administrator is in the process of reviewing the system that was set up. She did state that there were a number of over due balances and a new process is going to be set up to collect those balances. Currently, they are collecting 5% of past due balance with each new purchase of power to pay off past due electrical billings. This is not done for the water utility billing but is part of their plan for increased revenue. An accounts payable system is not in use. RUBA staff left a form to help them document and track payments and balances for large, long term, or past due amounts. Current balances for known liabilities such as a fuel loan, purchased power from Lake and Peninsula Borough, and IRS indebtedness are not presented regularly to the council. A manual system is used for cash receipts. It does not offer an easy way to determine how much revenue had been received from the utility on a month-to-date or year-to-date basis. QuickBooks software contains a Chart of Accounts. The new administrator was in the process of verifying that monthly bank reconciliations were being done using the bank statements along with the check register in the QuickBooks accounting program. There is a purchasing system that utilizes prior approval or coordination with a budget. Supplies and parts are ordered by the operator as needed and billed to the Village Council without prior approval from the Administrator. -33- January — February — March 2008 3" Quarter FY08 - RUBA Report Tax Problems Essential Indicators Yes w No XR 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 utility uses the QuickBooks program to calculate and track payroll taxes. At the time of this assessment, copies of recent Department of Labor quarterly reports were not provided; there were no current copies of IRS 941 quarterly reports available. An IRS request did show taxes being owed over a period of quarters. There is an outstanding federal judgment against the Chignik Lake Village Council. Village staff indicated this occurred as a result of a contractor using the village EIN number in connection with errors made on payroll reports and tax deposits during a road construction project. After a court appearance, the community has been deemed responsible for the outstanding balance. The community is working with IRS to pay owed taxes. RUBA staff is working closely with the community to make sure all payments are documented in their files. Personnel System Essential Indicators Yes No & The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators w & 2 2 ww 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. -34- January — February — March 2008 3” Quarter FY08 - RUBA Report eA ES AOD A Report Personnel System Comments: Worker's compensation insurance is provided by Alaska National Insurance Company, with a policy currently in effect for the Village Council until 10/1/2008. The Chignik Lake Employee Policies and Procedures manual contains job descriptions, and a hiring process. Personnel folders are kept for each employee, and village staff indicated that evaluations are being completed. Village staff is taking advantage of training opportunities as time and finances allow. The administrator stated that a written performance evaluation is done for office staff, but not for the maintenance position. The administrator requested the council evaluate this position, and it is unknown whether it was done. A probationary period for new hires is utilized. Personnel folders are being updated as changes occur. Employment recruitment is done within the community first, as hiring locally solves the housing problem. When the need arises and an opportunity is presented, employees are encouraged to attend job-related training. 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. XJ] 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 XX & 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 Chignik Lake Village Council owns and operates the community's utilities; they meet regularly, and have demonstrated an interest and willingness to adopt the necessary policies and rules to operate them. However, in the area of collections, there is a lack of policy enforcement by the Council. Per the administrator, there are quite a few members in the community that have yet to bring their accounts current. The most current documentation available shows more than 50% of households delinquent on their utility bills. A plan to include water sewer utility payments in the Power Stat (pre-pay) system used by the electric utility should resolve this issue and will be introduced to the community. The new administrator, who performs many of the day-to-day management tasks, has received training in the past in fulfilling requirements of the Power Cost Equalization (PCE) program while working as the assistant, as well as RUBA's Financial Management for Utilities. The administrator would benefit greatly from further training in utility management, and the QuickBooks program. Increased familiarity and use of the QuickBooks program would resolve problems involving budgets and financial reports including accounts payable. An organizational chart was provided to RUBA staff showing all positions within the village community. ' w nm 1 January — February — March 2008 3” Quarter FY08 - 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. xl The utility is operating at the level of service that was proposed. XX] The operator provides status reports to the manager on a routine basis. XX] The utility has completed and distributed its Community Confidence Report (CCR). Xl Xx 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 operator for the water/sewer utility is Operator in Training (OIT) certified, and has held the position for several years. The utility appears to be operating at a level of service acceptable to the community; however, their system no longer has a storage tank, and depends on a pump to maintain water pressure (24 hours a day). Some residents report occasional low water pressure: there is some concern about the availability of water for fire fighting. The administrator might receive a routine verbal status report from the operator. Administrator stated a current CCR had been completed, but there was no copy available from review. The utility is not on the current SNC list. Operation of the utility would improve greatly if there were monthly written operation and maintenance reports from the operator, and lists for inventory and critical spare parts were maintained. Safety would be enhanced with regular safety meetings and the implementation ofa safety. RUBA Activities for the Coming Quarter: The Chignik Lake Village Council has not met all of the essential capacity indicators. In order to meet them, the utility must take action to correcting those essential capacity indicators that make the utility compliant, i.e. Utility Finance, Operation of Utility, Tax Problems, Accounting System, and Organizational Management. By implementing the above recommendations, the Chignik Lake Village Council will put itself into position to better meet unanticipated financial costs and ensure that employees are aware of their conditions of employment. Constant follow through of procedures and open communication between RUBA Staff and village staff will help to avoid repeated write-ups and create a successful compliant program for the community. The Chignik Lake Village Council staff was open and helpful with providing information to complete this assessment. They realize the importance of community health, financial stability, effective utility management practice and sustainability. RUBA staff is available to provide assistance for any essential and sustainable capacity indicators that. are not currently being met. - 36- January — February — March 2008 3" Quarter FY08 - RUBA Report ————— SO i RE Rep Ore Crooked Creek Activity Report Community Overview Lead RUBA Staff: Melissa Taylor, Anchorage Office 2003 Population: 145 Region: Yukon-Kuskokwim Delta Local Governments: Unorganized od Most homes lack plumbing; residents haul water and honeybuckets. A new well provides treated water, and a new washeteria has been completed. The school, store, and three homes have individual wells, septic tanks and plumbing. The school septic drain field is failing. The community needs a new water tank and landfill with access road. Electricity is provided by Middle Kuskokwim Electric Cooperative. RUBA Activity This Reporting Period RUBA staff made an on-site visit to Crooked Creek on February 19-20 to conduct a RUBA management assessment. The community was well prepared and helpful in gathering required information for the assessment. RUBA staff assisted with researching the tribe's constitution and bylaws and provided technical assistance in developing a resolution for the development of a water/wastewater utility system. RUBA also provided assistance in developing a colection policy for the traditional council. The Crooked Creek Traditional Council met all of the essential indicators. -37- January — February - March 2008 3” Quarter FY08 - RUBA Report Capacity Indicators Finances Yes No All revenue and expenses for the utility are listed in the utility budget. The utility has adopted a balanced realistic budget. Monthly financial reports are prepared and submitted to the policy making body. The utility is current in paying all water/wastewater electric bills. The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Kk WRK 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. x Budget amendments are completed and adopted as necessary. Finances Comments: Crooked Creek Traditional Council receives their tribal funds directly for the U.S. Bureau of Indian Affairs (BIA). Some of the various tribal funds they receive are in the form of mini grants. For example they receive an ICWA grant (Indian Child Welfare grant), IRR (Indian Reservations Roads Grant), Environmental Protection Grant (EPA) and Water Resources grant to name a few. Their total revenues are put into a general fund account and expenses are charged to their respective accounts. Because the tribe uses a chart of accounts, the financial manager was able to extract all revenues and expenses from the general account and develop a utility budget. RUBA recommends maintaining a water/wastewater utility budget separate from the general account. This will allow the financial manager easier access to information which in turn can be used to prepare and submit (required) monthly financial reports to the council. Not only are these reports a requirement of this assessment but regular monthly financial reports will assist the council when making sound informed financial decisions. The financial manager currently provides monthly verbal status reports to the council as requested and submits quarterly financial reports to the BIA. Recently the Traditional Council was sussessful in negotiationg an indirect rate with the U.S. Department of Interior. The indirect rate will be utilized to offset some of their administrative costs. The tribal council has fuel on hand and has plans to purchase more when and as needed. -38- January — February — March 2008 3" Quarter FY08 - RUBA Report —— rem A Report Accounting Systems Essential Indicators Yes No &X The utility has adopted a collection policy and actively follows it. XK The utility bills customers on a regular basis. X An accounts receivable system is in place which track customers and reports past due accounts and amounts. &X An accounts payable system is in place. X The payroll system correctly calculates payroll and keeps records X A cash receipt system is in place that records incoming money and what it was for. The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators A chart of accounts is used that identifies categories in a reasonable, usable manner. &X Monthly bank reconciliation’s have been completed for all utility accounts. Xl The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. Accounting System Comments: The Traditional Council has a Procurement Policy on file; this policy was adopted by the council in 2001. The purchasing process involves a tribal council employee completing a purchase order and then submitting it to the Tribal Administrator for review of the program budget prior to purchase. Big ticket items require purchase approval from the council. The Traditional Council sends monthly statements and records all sales transactions with receipts. The receipts are recorded manually then transferred into QuickBooks where they are charted to individual customer accounts. RUBA was unable to determine the council collection rate during this visit however, the information will be noted as it becomes available. Tax Problems Essential Indicators Yes No 4} 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. Xi If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: After several attempts to understand and straighten out the Traditional Council tax situation, the IRS sent the council notification of a credit balance. The IRS has deemed the Traditional Council complaint with the federal employment and/or excise tax filing requirement and compliant with federal tax deposit requirements. -39- January — February — March 2008 3 Quarter FY08 - RUBA Report Personnel System Essential Indicators Yes No & The utility has a posted workers compensation insurance policy in effect. Sustain & & kw X 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: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. The utility provides training opportunities to staff as needed and available. Personnel System Comments: The Traditional Council is insured under Umialik Insurance Company in Anchorage. The period of coverage is from 1/19/08 to 1/19/09. The Traditional Council follows their personnel policy and has written job descriptions for all employees. Personnel files consist of all necessary information except for the 1(9) which are on order. Organizational Management Essential Indicators Yes X HRWHk 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. The utility complies with the open meeting act for all meetings. Organizational Management Comments: On the evening of March 11, 2008, the Crooked Creek Traditional Council signed a resolution adopting a utility ordinance. The Traditional council is the owner of the water/wastewater utility. The decision making authority and enforcement of utility policy is vested in the Traditional Council. A recent amendment to the bylaws outlines the rules and regulations of the utility. -40- January — February — March 2008 3” Quarter FY08 - RUBA Report he ict gigw__'C_Ct-_—_ meee Operation of Utility Essential Indicators Yes No &X The utility operator(s) are actively working towards necessary certification. X The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators & The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. &X The utility has a safety manual and holds safety meetings. 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. &] The utility has completed and distributed its Community Confidence Report (CCR). me) The utility is not on the Significant Non-Compliance (SNC) list. Xl The utility maintains an inventory control list. & The utility maintains a critical spare parts list. Operation of Utility Comments: Tom Parent is the primary operator for Crooked Creek's Utility. Tom holds the following Alaska Water and Wastewater certifications: Water Distribution OIT, Wastewater Treatment OIT, Wastewater Collections OIT and Water Treatment I. Tom also prepared and distributed the 2006 Consumer Confidence Report. At present Crooked Creek is not on the Significant Non-Compliance List (SNC) for any violations on the Surface Water Treatment Rule (SWTR) and meets all regulatory criteria. RUBA Activities for the Coming Quarter: The Traditional Council staff were open and helpful with providing information to complete their RUBA assessment. RUBA staff will work with the Traditional Council to improve their sustainable indicators in the area of utility finance. -41- January — February — March 2008 3 Quarter FY08 - RUBA Report January — February — March 2008 3” Quarter FY08 - RUBA Report Emmonak Activity Report Community Overview Lead RUBA Staff: Elizabeth Manfred, Bethel Regional Office 2003 Population: 740 wy 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 Ot go the washeteria/sauna. A new washeteria construction is in the last stage of completion. The City council is the policy making body for this utility. Water is derived from the Yukon river and is treated. Piped water and sewer services are provided to most of the residents of Emmonak. Currently, there are 206 connected to this system. Out of those connected, there are 185 residential homes and 23 businesses in service. The next water/sewer Village Safe Water funding will connect six new Emmonak tribal housing units. RUBA Activity This Reporting Period RUBA staff traveled to Emmonak this quarter with the Village Safewater Engineer. City staff had requested assistance with a QuickBooks accounting issue. RUBA staff worked with the city finance officer and provided a copy of the newly printed 'QuickBooks for Sanitation Utilities' guide. This guide was printed by contractors through a contract from RUBA. City staff may attend the regional QuickBooks Pro training provided by a RUBA grant scheduled in Bethel in April if it does not coincide with attendance of IRS classes in Anchorage. RUBA staff also attended meetings with city staff and the VSW engineer regarding issues with the vacuum water and sewer system. VSW requested that city staff prioritize the Capital Improvement Project (CIP) project list submitted so projects could be completed in the order funding is received. The Mayor invited RUBA staff to return next quarter to update the RUBA assessment and provide assistance with unmet indicators. A trip will be planned and the Anchorage LGS will travel to provide QuickBooks on-site training. Emmonak continues to be well managed with a professional proactive manager and staff. They meet all essential indicators at this time. ° - 43 - January — February — March 2008 3” Quarter FY08 - RUBA Report Capacity Indicators Finances Yes No x All revenue and expenses for the utility are listed in the utility budget. Xl The utility has adopted a balanced realistic budget. X Monthly financial reports are prepared and submitted to the policy making body. Xl The utility is current in paying all water/wastewater electric bills. Xl The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. Xl The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. 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. WHkk Finances Comments: The city budget has been completed and copies were sent to the Juneau office and also the Anchorage office for review. The administrator is now working on the FY06 Certified Financial Statement. Bethel RUBA staff will be reassigned next quarter and a follow-up trip is planned to receive updated documentation. 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. HXNEK RRR eS WOw Accounting System Comments: The bank reconciliation for the gaming account is completed. Some department's reconciliations have to start as far back as 2005. The general fund bank reconciliations are almost complete, according to the bookkeeper. -44- January — February — March 2008 3” Quarter FY08 - RUBA Report Sottesetelapeneneeanfieeenlens nse enero oe on easement ee 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: The IRS has deemed the city compliant with tax reporting and deposits. Stable staff and sound accounting practices make Emmonak a role model for tax reporting. 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. xX 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. KK] The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. & The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. &) The utility provides training opportunities to staff as needed and available. Personnel System Comments: The bookkeeper is making sure that the I-9's will be completed for all employees. They have insurance through AML/JIA which expires July 1, 2008. ' a nm ' January — February — March 2008 3" Quarter FY08 - 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 X HRRR KX &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 is in the process of reviewing and updating the current ordinances. John Moses, of the City’s Lands Department stated that the Council has yet to review the proposed utility ordinance which would replace the current ordinance. He is hopeful that the new city council will review the draft ordinance . and adopt 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 XK 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. Kk Wak -46- January — February — March 2008 3” Quarter FY08 - RUBA Report Operation of Utility Comments: After the lead operator resigned in April 2007, a new operator was hired who is Level I certified; the Administrator would like to hire a Level II operator. RUBA staff recommended he call YKHC/OEH for assistance in certifying an operator at Level II. RUBA Activities for the Coming Quarter: RUBA staff will continue to request and monitor monthly finance reports and assist when requested. -47- January — February — March 2008 3” Quarter FY08 - RUBA Report - 48 - January — February — March 2008 3” Quarter FY08 - RUBA Report Gambell Activity Report Community Overview Lead RUBA Staff: Josie Bahnke, Nome Office 2003 Population: 648 Region: Bering Straits Local Government: 2™ Class City df Water is derived from a shallow aquifer at the base of Sivuokuk Mountain, and is treated and stored in three storage tanks. One hundred twenty-one homes and 13 public and commercial buildings including the school and washeteria are now connected to the piped water and sewer system. Forty three homes in the original town site still haul water and honey buckets. A feasibility study is complete. A new water source and additional water storage tanks are needed to ensure no shortages will occur. Significant infrastructure growth is proposed over the next 5 years. The first phase of improvements upgraded the existing infrastructure, including water treatment; lift station upgrades, and a 2.2 million gallon water storage tank. The second phase will be to develop a well field 2 miles outside of town at the south end of Troutman Lake, and construct a summer only raw water transmission line. The third phase will be water and sewer service to Old Town (approximately 43 service connections). Ultimately, there will be 174 residential services. RUBA Activity This Reporting Period Nome RUBA staff traveled to Gambell on January 9-10, 2008 to provide the new utility clerk with training and financial management assistance. On January 10, RUBA staff presented a year-to-date financial report of the water and sewer utility to the city council. The council also received an update from Village Safe Water Engineer (VSW) Debra Addie on projects for the upcoming construction season. In addition to providing utility management assistance, Nome RUBA staff also worked with Mayor Apatiki on legislative funding requests. Due to miscommunication with a local air carrier, the new utility clerk was not able to attend personnel management training in Nome the week of February 25-29, 2009. Due to bad weather in January, a pumps and pumping training for operators was cancelled. In partnership with Village Safe Water, the city made lift station upgrades this past year and will construct a large water storage tank during the summer of 2008. -49- January — February — March 2008 3” Quarter FY08 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No X All revenue and expenses for the utility are listed in the utility budget. Xl The utility has adopted a balanced realistic budget. x Monthly financial reports are prepared and submitted to the policy making body. x The utility is current in paying all water/wastewater electric bills. & The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. &X The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators 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 ata 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: Monthly financial reports are being prepared by the new utility clerk and submitted to the council. In the past, RUBA staff worked with the utility clerk on improving these reports, A rate increase implemented by the city council in late February 2007 has greatly improved the utility's overall financial picture. January — February — March 2008 3 Quarter FY08 - RUBA Report ——$————— ee ee 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. XRKX KR S a XXX Accounting System Comments: The utility has an adopted collection policy, and follows it consistently. The utility and city clerk use QuickBooks Pro for payroll, accounts receivable, and billing. A NEBS cash receipt system is manually utilized for accounts receivable and an Economic Register for manually tracking expenditures. Tax Problems Essential Indicators Yes No &X The utility has a system to accurately calculate, track, and report payroll tax liabilities. Xl The utility is current on filing tax reports. KI The utility is current on making tax deposits. a} If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The City of Gambell is in good standing with the Internal Revenue Service (IRS) this quarter. The City utilized their FY 2008 Community Energy Assistance Program (CEAP) funds to pay off a past due balance to the IRS. -S5]- January — February — March 2008 3” Quarter FY08 - RUBA Report 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: 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. HX Personnel System Comments: Gambell Water and Sewer is insured by the Alaska Municipal League-Joint Insurance Association (AML-JIA) for fiscal year 2008. The council paid a large portion of the insurance bill with their Community Energy Assistance Program grant. Organizational Management Essential Indicators : Yes No ® The entity that owns the utility is known and the entity that will operate the utility is set. x The policy making body is active in policy making of the utility. x The policy making body enforces utility policy. x The utility has an adequately trained manager. & The utility has an adequately trained bookkeeper. X 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 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 Gambell is the owner of the utility. Decision making authority and enforcement of utility policy has alternated from the utility board to the city council. At this time, the Mayor provides supervision to all city and utility staff. January — February — March 2008 3” Quarter FY08 - 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 &] 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). 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. XWOKRR w Operation of Utility Comments: Village Safe Water (VSW), through a contract with CRW Engineers, has completed a $340,000 water treatment upgrade and design for a new $3.4 million water tank. The 2006 Consumer Confidence Report (CCR) was completed with the assistance of Norton Sound Health Corporation. The utility clerk is working on the 2007 (CCR) report at this time. Gambell water system is on a SNC list at this time for Stage 1 violations. A new water system is being designed. Because of funding issues, construction was postponed until summer of 2009. A new storage tank will be built in 2008 in preparation of developing a new water source. RUBA Activities For The Coming Quarter Nome RUBA staff will travel to Gambell this quarter to provide on-site assistance to the new utility clerk and verify financial status. To the extent possible, RUBA staff will continue participation with the Technical Assistance Providers Group via teleconference. Staff from Village Safe Water, Alaska Native Tribal Health Consortium and Norton Sound Health Corporation will begin the pilot study for the new water treatment plant. January — February — March 2008 3” Quarter FY08 - RUBA Report January — February — March 2008 3" Quarter FY08 - RUBA Report Golovin Activity Report Community Overview Lead RUBA Staff: Josie Bahnke, Nome Office 2003 Population: 146 Region: Bering Straits Local Government: 2 Class City od The City of Golovin is responsible for the management of the water supply and storage system, as well as water treatment plant and washeteria. In conjunction with Alaska Native Tribal Health Consortium (ANTHC), a community-wide piped water and sewer system was constructed last year. Water is pumped from Chinik Creek, treated, and stored in three heated water storage tanks. A new 1.2 million-gallon water tank has been built and a new washeteria is still under construction. At present there are twenty six commercial and residential customers in the downtown area. RUBA Activity This Reporting Period At the request of Mayor Punguk, Nome RUBA staff assisted with organizational and personnel management issues this quarter. This included drafting a joint utility board ordinance and revising the water plant operator job description. During the week of February 25-29, Vice-Mayor Kathy Fagerstrom attended only the first day of the RUBA sponsored personnel management workshop held in Nome. January — February — March 2008 3” Quarter FY08 - RUBA Report Capacity Indicators Essential Indicators Finances Yes No x XN X Xl x XK 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 RR 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: Financial management of the piped water and sewer system, washeteria, and landfill is the responsibility of the utility clerk. Nome RUBA staff received improved monthly financial reports consistently from Utility Clerk Annette Henry, this quarter. As of March 31, 2008, the sanitation utility has generated $108,690 in revenue and has expended $102,826 year to date. Accounting Systems Essential Indicators Yes No Heke MeN The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. An accounts receivable system is in place which track customers and reports past due accounts and amounts. An accounts payable system is in place. The payroll system correctly calculates payroll and keeps records A cash receipt system is in place that records incoming money and what it was for. The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators & & X 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 2008 3” Quarter FY08 - RUBA Report eee AE Report Accounting System Comments: The utility clerk bills water and sewer customers once a month and water customers when their bill reaches $200.00. Utility staff utilizes both manual (NEBS) and computerized (QuickBooks Pro) accounting systems. Tax Problems Essential Indicators Yes No & The utility has a system to accurately calculate, track, and report payroll tax liabilities. X The utility is current on filing tax reports. Xl The utility is current on making tax deposits. & If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The City of Golovin has prioritized regular tax deposits and filing tax reports to avoid penalties and interest. The IRS has deemed them in compliance at this time. In addition to federal tax compliance, the city is also current with Alaska Department of Labor tax 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. x The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. &] The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. X The utility provides training opportunities to staff as needed and available. bs Personnel System Comments: The City of Golovin has workers’ compensation insurance through AML/JIA for 2008 and is in good standing. The entire council participates and conducts evaluations of city employees. However, this does not include probationary employees. -57- January — February — March 2008 3” Quarter FY08 - RUBA Report Organizational Management Essential Indicators Yes No i The entity that owns the utility is known and the entity that will operate the utility is set. The policy making body is active in policy making of the utility. 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. NHMHMXXK Organizational Management Comments: The city council is the policy making body for the utility. Presently, the utility does not have a manager. The duties of the manager are being performed by the utility clerk. At the advice of RUBA staff, organizational structure changes were made and it has enabled the city to run the new water and sewer and electric utilities more efficiently. This included transferring the utility clerk position to the Golovin Power Utility which has created a combined billing process for the electric and water/sewer enterprise. At the request of the council, RUBA staff worked on a joint utility ordinance this quarter that includes the formation of a utility board. The primary operator has many years experience and is mentoring the secondary operator, who has delivered water in the past. January — February — March 2008 3” Quarter FY08 - RUBA Report — OO eee eport 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 Xd RRO 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. Operation of Utility Comments: Wayne Henry is certified in Level 1, Water Distribution. Level 2 certification will be necessary for the te new system. Compliance issues are being addressed by the remote maintenance worker. RUBA staff. received reports this quarter that there were freeze ups at the city office, washeteria, and health clinic. RUBA Activities For The Coming Quarter RUBA staff will schedule travel to Golovin this quarter to provide on-site training and assistance to the utility clerk and new council. January — February — March 2008 3" Quarter FY08 - RUBA Report - 60 - January — February - March 2008 3" Quarter FY08 - RUBA Report eS ADA Report Hooper Bay Activity Report Community Overview Lead RUBA Staff: Ken Berlin, Bethel Office 2003 Population: 1,133 Region: Yukon-Kuskokwim Delta Local Governments: 2™ Class City ad The City of Hooper Bay operates multiple watering points within the village and a solid waste and wastewater lagoon. The residents self-haul their own garbage and honey buckets. Hooper Bay Utility Advisory Board advises the city council on utility operations and management. The new school's water and wastewater is connected to the new Water Treatment Plant. The watering point at the old town site is connected to processed water from the new water treatment plant. The HPB Traditional Council is pursuing a solid waste management grant to upgrade the existing lagoon. In FY08 over 75 homes will be connected to the water and sewer lines. The water and sewer project is planned to be completed in 2010. _RUBA Activity This Reporting Period — RUBA received copies of the monthly financial reports, user fee collection report, and tax deposit payment confirmations. Hooper Bay continues to meet all essential management capacity indicators. Administration and finance staff are stable and competent. The administrator for the City of Hooper Bay sent an e-mail saying the washeteria's 20,000 gallon tank zeroed out on 2/28/08. The City bought 2,000 gallons and filled up the day tank but the washeteria will need another 11,000 gallons to last until the end of May. The city is requesting 10,000 gallons from Alaska Village Electric Coopeartive (AVEC) and the school district. Heating fuel in Hooper Bay is over $5.00 per gallon. The lack of fuel is due to engineering problems resulting in using more fuel then projected. This is the first full winter for washeteria fuel usage to reveal this problem. -61- January — February — March 2008 3” Quarter FY08 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No & (1 Allrevenue 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. & 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 XK 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. &® Budget amendments are completed and adopted as necessary. Finances Comments: All indicators continue to be met. FY 2008 budget is on file. Monthly financial reports and copies of statements show they are in compliance and meet the indicators. Washeteria operating costs continue to be subsized when necessary through user fees and the Yukon Fuel lease funds. The city administration of Hooper Bay is concerned about the fuel prices skyrocketing in the coming year and recommend ~ forming a cooperative to buy bulk fuel. With Crowley as a local fuel distributer, a fuel cooperative will be hard to accomplish. Accounting Systems Essential Indicators Yes No &X The utility has adopted a collection policy and actively follows it. X The utility bills customers on a regular basis. X An accounts receivable system is in place which track customers and reports past due accounts and amounts. X An accounts payable system is in place. & The payroll system correctly calculates payroll and keeps records w & A cash receipt system is in place that records incoming money and what it was for. The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators A chart of accounts is used that identifies categories in a reasonable, usable manner. & X Monthly bank reconciliation’s have been completed for all utility accounts. &X The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. -62- January — February — March 2008 3" Quarter FY08 - RUBA Report eS Accounting System Comments: All of the above indicators are reviewed through reports received from the community on a monthly and quarterly basis and are on file in the Bethel RUBA office. Tax Problems Essential Indicators Yes No &X The utility has a system to accurately calculate, track, and report payroll tax liabilities. Xl The utility is current on filing tax reports. & The utility is current on making tax deposits. Xl If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The community continues to be in compliance with tax requirements. The city pays payroll tax deposits electronically and copies of deposit slips are on file in the RUBA Bethel office. 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. X The utility provides training opportunities to staff as needed and available. &% we ww Personnel System Comments: RUBA has on file copies of documentation for the above indicators. Workers' compensation is checked to make sure coverage is still in place every quarter. Qualified long term staff in the city administration is a benefit to this organization. -6§3- January — February — March 2008 3” Quarter FY08 - 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. 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 HRNKNHX X 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: All indicators continue to be met. The city continues to make sure the operators are current with certification. Operation of Utility Essential Indicators Yes No & The utility operator(s) are actively working towards necessary certification. xX The utility has a preventative maintenance plan developed for the existing sanitation . facilities. Sustainable Indicators The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. 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 NMOWKW KM Operation of Utility Comments: All indicators continue to be met. RUBA will continue to recommend to the city and operators to inform the CE2 consultants to include the inventory control and critical spare parts lists in the operations and maintenance manual for the new facility as well as the safety manual. ='64)- January — February — March 2008 3” Quarter FY08 - RUBA Report eee EE ABA Report RUBA Activities For The Coming Quarter RUBA staff will continue monitoring monthly financial and sanitation user fee reports, and will assist with utility or local government issues if requested. -645- January — February — March 2008 3" Quarter FY08 - RUBA Report oS -66- January — February — March 2008 3 Quarter FY08 - RUBA Report Hughes Activity Report Community Overview Lead RUBA Staff: Leroy Seppilu, Fairbanks Office 2003 Population: 69 Region: Interior Local Governments: 2™ Class City od In 1968, a community water distribution system and Serena, et OT 7 individual household septic tanks were constructed. Initially the system worked well, and was expanded in 1973; however, the system froze during 1983 leaving only a few facilities operational. Thirty outhouses were constructed in 1984 to replace the frozen septic systems. Mant Hughes residents currently haul treated water from the central watering point. Eleven houses are served with piped water, plus the school, teacher's apartments, clinic and the city/tribe offices. The community facilities are connected to septic tanks. No homes have complete plumbing; most use honeybuckets and outhouses. The city uses an incinerator to reduce the volume of refuse, and participates in a recycling program. Preliminary work has begun on a new landfill site, new sewage lagoon and water treatment improvements. Electricity is provided by Hughes Power and Light. There is one school in the community, attended by 17 students. A local clinic is located in Hughes, tended by a health aide. RUBA Activity This Reporting Period At the invitation of the city, Fairbanks RUBA staff traveled to the community of Hughes to perform a RUBA assessment on March 27, 2008. The management assessment was completed and the city successfully met all essential and sustainable capacity indicators at this time. The Hughes office is using QuickBooks Pro for all accounting processes. -67- January - February — March 2008 3 Quarter FY08 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No Xl All revenue and expenses for the utility are listed in the utility budget. Xl The utility has adopted a balanced realistic budget. x Monthly financial reports are prepared and submitted to the policy making body. ® 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 RX The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. & YTD revenues are at a level equal to or above those budgeted. XJ 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: Like most of the villages in the shallow upper river areas of the Interior region, the City of Hughes has to air freight all its fuel in from Fairbanks at a substantially high cost. Gasoline is sold at $5.00 a gallon and fuel oil at $5.50 a gallon. The city owns the fuel sales utility. The city uses a comprehensive monthly financial statements with (current) budget, monthly, year-to-date revenue and expenditures and expected revenue and expenditures categories. An Excel spreadsheet converted from QuickBooks Pro is used for all financial processes. 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. & w & The payroll system correctly calculates payroll and keeps records A cash receipt system is in place that records incoming money and what it was for. The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators X A chart of accounts is used that identifies categories in a reasonable, usable manner. &X Monthly bank reconciliation’s have been completed for all utility accounts. &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 2008 3" Quarter FY08 - RUBA Report Accounting System Comments: Both the city administrator and city clerk were recently trained with basic QuickBooks Pro accounting software by an accounting firm from Fairbanks. The training lasted a week. The city uses all aspects of the QuickBooks Pro accounting software program, including payroll, payroll recordkeeping, utility billing, etc. Tax Problems Essential Indicators Yes No &X The utility has a system to accurately calculate, track, and report payroll tax liabilities. x The utility is current on filing tax reports. & The utility is current on making tax deposits. & If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The city is current on all quarterly tax reports and payments. The city submits payments to IRS who has deemed them compliant at this time. The city's employer rate for Employment Security Compensation (ESC) for 2008 is 1.66% and they are compliant with state tax filings. 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 attomey, AML, or DCED for topics and language. The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. X The utility provides training opportunities to staff as needed and available. X we WN Personnel System Comments: One of the things that RUBA checked was the city clerk's ability to learn fairly complex financial issues, such as the Power Cost Equalization (PCE) program reports done by the city. The city owns and runs the electric utility. The city administrator taught the city clerk how to do the PCE reports. Apparently, the training was very effective, since the electric utility received over $27,000 in PCE subsidies last year. The city, despite being very small, is very well organized and has good personnel policies that is followed. Most of the employees are long-time except for the new water plant operator, who was hired in October, 2007. He already is Provisional | (formerly OIT) certified. -69- January — February — March 2008 3" Quarter FY08 - 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. x The policy making body is active in policy making of the utility. Xl The policy making body enforces utility policy. x The utility has an adequately trained manager. x The utility has an adequately trained bookkeeper. ® The utility has an adequately trained operator(s). 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. x The policy making body meets as required. & The utility complies with the open meeting act for all meetings. Organizational Management Comments: The long-time city administrator has effectively trained the city clerk with all her responsibilities and duties. RUBA's observation was that she learns quickly and is a very capable person. She was able to find all the information RUBA asked for while the assessment was being made. The city's water/sewer utility ordinance is current and is updated on a regular basis. 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 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. & NXMMKX WN Operation of Utility Comments: The utility operator is newly hired and recently attended a Remote Maintenance Worker (RMW) sponsored training in which he was certified as Water Operator Provision 1. -70- January — February — March 2008 3” Quarter FY08 - RUBA Report ——— ree Report RUBA Activities For The Coming Quarter Hughes is not a RUBA community. RUBA made the updated assessment because Alaska Native Tribal Health Consortium (ANTHC) requested that a RUBA assessment be made as there is an upcoming sanitation project. RUBA staff will continue to monitor the community and provide assistance as requests are made. -71- January — February — March 2008 3" Quarter FY08 - RUBA Report January — February — March 2008 3” Quarter FY08 - RUBA Report Huslia Activity Report Community Overview Lead RUBA Staff: Leroy Seppilu, Fairbanks Office 2003 Population: 265 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 At the invitation of the city, Fairbanks RUBA staff traveled to the community of Hughes to perform a RUBA assessment on March 27, 2008. The management assessment was completed and the city successfully met all essential and sustainable capacity indicators at this time. The Hughes office is using QuickBooks Pro for all accounting processes. The city successfully passed the RUBA assessment. The City of Huslia is not a RUBA community. Fairbanks RUBA staff will continue to provide support telephonically or otherwise. -73- January — February — March 2008 3" Quarter FY08 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No X All revenue and expenses for the utility are listed in the utility budget. Xl The utility has adopted a balanced realistic budget. X Monthly financial reports are prepared and submitted to the policy making body. Xl The utility is current in paying all water/wastewater electric bills. Xd 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. X YTD revenues are at a level equal to or above those budgeted. & YTD expenditures are at a level equal to or below those budgeted. & A monthly manager’s report is prepared. & Budget amendments are completed and adopted as necessary. Finances Comments: The city administrator provided all the necessary information needed for the RUBA assessment. The city charges the school district $950 a month for water/sewer services, residential customers are charged $75/month. There are approximately 80 water/sewer utility customers total, including the school. Commercial customers are charged the same rate as residential customers. We surmised that there would really be only two customers that would be identified as commercial customers, that is, the clinic and the local store. Both consume very small amounts of water. The current budget reflects a realistic revenue and expenses for this fiscal year. The city has continually operated one of the oldest rural community water/sewer utility systems since mid-1970s. The city purchases fuel annually and pays the fuel bill before it is delivered by barge each year. Monthly financial reports are made using QuickBooks Pro format. The city administrator has extensive experience with QBP. The city passed its FY '08 budget slightly late (July '07) due to extensive subsistence activities of the community, as it is sometimes difficult to get the majority of the council members together during summers. -74- January — February — March 2008 3” Quarter FY08 - RUBA Report Accounting Systems Essential Indicators Yes No The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. An accounts receivable system is in place which track customers and reports past due accounts and amounts. An accounts payable system is in place. The payroll system correctly calculates payroll and keeps records 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. HHEXK WH i a XRR Accounting System Comments: The city has a high rate of water/sewer utility collections. The past due customers are notified after two months. The administrator brings up the past due accounts to the city council during the regular monthly council meetings for approval to disconnect. There are some residential customers that do not have disconnect valves, so the city has to wait until spring to make the disconnections. Most of the water/sewer utility customers pay up or make payment plans when threatened with disconnection notices. There are at least 8 water/sewer utility customers that have left town that the city is having difficulty collecting. The administrator is working to have their Permanent Fund Dividend checks garnished for the amount past due. 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. Xi The utility is current on making tax deposits. Xi If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The city administrator makes all the reports and tax liabilities are paid monthly. The city's current Employment Security Compensation (ESC) employer tax rate is at 1%. A Release of Tax Information agreement was signed by the city to allow RUBA to get information about the city's tax liability payments and reports. The IRS and Alaska Department of Labor have deemed Huslia compliant at this time. January — February — March 2008 3” Quarter FY08 - RUBA Report 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. 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. Personnel System Comments: The city administrator has been employed for about 28 years and has extensive experience with personnel management and recordkeeping. The city's insurance and workers’ compensation coverage is through Alaska Municipal League-Joint Insurance Association (AML-JIA) and is posted in the city office and expires on July 1, 2008. Employee training is encouraged as funds allow. -76- January — February — March 2008 3 Quarter FY08 - RUBA Report —————— Eee ee ROME Organizational Management Essential Indicators Yes No XI The entity that owns the utility is known and the entity that will operate the utility is set. The policy making body is active in policy making of the utility. The policy making body enforces utility policy. The utility has an adequately trained manager. The utility has an adequately trained bookkeeper. The utility has an adequately trained operator(s). The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators x The utility has adopted an organizational chart that reflects the current structure. &X The policy making body meets as required. X The utility complies with the open meeting act for all meetings. HNXXNR Organizational Management Comments: The city council meets every the first Friday of each month and utility issues are on the agenda. The city administrator is required to provide a monthly report of the status of the utilities during the meetings. The city recently revised its water/sewer utility ordinance. Some of the water/sewer utility customers can't be disconnected until spring because there are no disconnect valves. These are the customers that have older equipment from the mid-1970s and are in the process of being replaced with a newer system that will make it possible to disconnect by the utility when necessary. Most of the utility customers pay their bills when reminded that they will be disconnected when utility bills are past due. The city administrator has won at least two Managers of the Year awards from Tanana Chiefs Conference, OEH dept. The water plant operator has extensive experience as well and has worked for the city since mid 1990s. He has obtained several certifications and is more than adequately trained. -77- January — February — March 2008 3" Quarter FY08 - RUBA Report Operation of Utility Essential Indicators Yes No & Xl 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 RRKRRRK kX 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 operator has worked for the city for a very long time and is current with all the necessary certification requirements. He has worked for the utility for about 10-15 years. His certifications are numerous and very impressive! RUBA Activities For The Coming Quarter The City successfully passed the RUBA assessment. The City of Huslia is nota RUBA community. Fairbanks RUBA staff will continue to provide support telephonically or otherwise. -78 - January — February — March 2008 3 Quarter FY08 - RUBA Report ——$————— Ob EES RUD A Report Kasigluk Activity Report Community Overview Lead RUBA Staff: Ken Berlin, Bethel Office 2003 Population: 534 Region: Yukon-Kuskokwim Delta Local Governments: Unorganized af Treated well water is hauled from the washeteria in Naren, et AO 7 the old village site of Kasigluk. The new village area known as Akula Heights uses the school well. Honey buckets are dumped into sewage bins and hauled to the lagoon. Homes are not plumbed, and residents are reliant on the washeteria for bathing and laundry. Major infrastructure improvements have been funded, including two new wells, water treatment plant, a 100,000-gal. storage tank, a washeteria and new sewage lagoon. Electricity is provided by AVEC. AVEC installed three wind generators in 2006. RUBA Activity This Reporting Period RUBA staff received finance reports current to December 2007. The administration and finance staff stabilized during the last year and resolved most of the finance related problems. Workers Compensation Insurance coverage effective to 12/2008 was obtained in January 2008. -79- January — February — March 2008 3 Quarter FY08 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No XX] All revenue and expenses for the utility are listed in the utility budget. The utility has adopted a balanced realistic budget. XX Monthly financial reports are prepared and submitted to the policy making body. Xl The utility is current in paying all water/wastewater electric bills. & The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. X The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators &J = The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. &] YTD revenues are at a level equal to or above those budgeted. & YTD expenditures are at a level equal to or below those budgeted. X A monthly manager’s report is prepared. &) Budget amendments are completed and adopted as necessary. Finances Comments: The 2008 budget has not been received. Monthly financial reports are current to December 2007 and are produced with QuickBooks Pro and converted into Excel format. Finance reports for January to March were not submitted. Monthly manager's reports are done verbally, recommended written. Sewer haul and trash haul is subsidized by gaming. The billing system for water and sewer was set up and implemented in August 2005. A manual accounts receivable and payable system is being used. Accounting Systems Essential Indicators Yes No xl The utility has adopted a collection policy and actively follows it. x) The utility bills customers on a regular basis. &® 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. 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. 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. -80- January — February — March 2008 3” Quarter FY08 - RUBA Report OE ES = AE RepOrt Accounting System Comments: The Tribe has a utility ordinance adopted by resolution on Aug. 14, 2003 and amended in July 2005. Enforcement of the ordinance started in August 2005. A billing system is set up with individual household accounts. 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. 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: Payroll tax liabilities and reports need to be verified by IRS and documentation from community. Personnel System Essential Indicators Yes No & The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. ® The utility provides training opportunities to staff as needed and available. X KX WK we Personnel System Comments: Kasigluk is covered through Umialik Insurance Co. effective 12/07 to 12/08. They have adopted a personnel policy and follow the evaluation, hiring, and probation policy. They also provide training when funding allows. -81- January — February — March 2008 3” Quarter FY08 - RUBA Report Organizational Management Essential Indicators Yes & HRRXHK 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 v4 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: A new bookkeeper was hired who has experience in accounting (QuickBooks Pro). The administrator, who is also the utility manager, also has QB experience and is competent. Kasigluk Traditional and Elders Council adopted the utility ordinance by resolution and enforcement started in August 2005. Operation of Utility Essential Indicators Yes i 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 & HWOkKKW ww The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. The utility has a safety manual and holds safety meetings. 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. January — February — March 2008 . 3” Quarter FY08 - RUBA Report Operation of Utility Comments: RUBA staff has requested documentation of utility operator certification. Kasigluk Washeteria is on the significant non-compliance list for violations occurring in December 2007 for failing to submit monthly bacti and lack of annual TTHM/HaaS sampling. There is no known hardware problem. The system may retum to compliance with 12 consesecutie months of Stage | requirements and the annual sampling of TTHM/HAAS. RUBA Activities For The Coming Quarter Need 2008 budget. Need finance reports to March 2008. Tax status verification by IRS is needed. -§83- January — February — March 2008 3 Quarter FY08 - RUBA Report - 84- January — February — March 2008 3” Quarter FY08 - RUBA Report ne = RE EPO Larsen Bay Activity Report Community Overview Lead RUBA Staff: Tammy Helms, Anchorage Office 2003 Population: 97 Region: Kodiak Island Local Government: 2" Class City located within the Kodiak Island Borough, Tribal Council od NV cote, ot POO 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 RUBA staff makes daily to weekly contact with City of Larsen Bay staff assisting with QuickBooks questions and other local government issues. Due to lack of a local adequate hiring pool, a city clerk has not been hired. The past clerk had agreed to work as needed until another qualified clerk could be hired and trained but has recently decided that she can no longer assist. The community has had an ongoing fuel crisis over the last year. In November, with a loan from Rural Alaska Fuel Services (RAFS), the city was able to purchase fuel for resale. The city is once again in the same situation. There is not enough fuel for the community and businesses to last throughout the busy summer months. The city still has an outstanding loan with the Alaska Energy Authority (AEA) and has not repaid the RAFS November loan. They do not have the financial capabilities at this time to purchase more fuel and will not be able to get a loan from AEA. January — February — March 2008 3 Quarter FY08 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No Xl All revenue and expenses for the utility are listed in the utility budget. x The utility has adopted a balanced realistic budget. & Monthly financial reports are prepared and submitted to the policy making body. & The utility is current in paying all water/wastewater electric bills. & The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. XK The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators & The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. & YTD revenues are at a level equal to or above those budgeted. KX] YTD expenditures are at a level equal to or below those budgeted. xX A monthly manager’s report is prepared. & Budget amendments are completed and adopted as necessary. Finances Comments: RUBA staff assisted the city clerk with preparing the FY 08 budget, which was adopted by the council. In the fall of 2007 the city acquired another loan from RAFS to purchase more fuel. They ordered 45,000 gal. of #2 diesel, 10,000 gal. of gas and 8,000 gal. of #1 fuel. The water and sewer revenues are not sufficient to cover operating expenses. Manager/ operator reports are given verbally when requested from the council. Accounting Systems Essential Indicators Yes No KK The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. An accounts receivable system is in place which 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. XXX & 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. &) The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. - 86 - January — February — March 2008 3” Quarter FY08 - RUBA Report Accounting Comments: Although the city has an adopted collection policy, it has not been actively or 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 not going out on a regular basis due to staffing issues. Tax Problems Essential Indicators Yes No &X The utility has a system to accurately calculate, track, and report payroll tax liabilities. X The utility is current on filing tax reports. X The utility is current on making tax deposits. X If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: As of 3/20/08 the City of Larsen Bay was in compliance with the IRS and State of Alaska. 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. X The utility provides training opportunities to staff as needed and available. Xl kX KK Rw Personnel System Comments: The City of Larsen Bay has a posted workers’ compensation insurance policy in effect from 7/1/07 to 7/1/08 with AML/JIA. The city's current hiring process is historical and is not written. Job notices are posted with the job title and description for 10 days. Interested applicants apply at the city office. There is currently no probationary period for employees. Training opportunities to staff are provided as funds allow or opportunities by other sponsors come available. -87- January — February — March 2008 3” Quarter FY08 - 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. & The policy making body is active in policy making of the utility. &X The policy making body enforces utility policy. x The utility has an adequately trained manager. XX The utility has an adequately trained bookkeeper. X 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. Xl The policy making body meets as required. XK The utility complies with the open meeting act for all meetings. Organizational Management Comments: The current utility operator is trained but has not passed the certification test. The interim clerk has no prior bookkeeping experience. The city council presently does not enforce the collection policy consistently. Efforts to once again enforce the policy are being pursued. -88- January — February — March 2008 3” Quarter FY08 - RUBA Report te ET FEUS = RUD A MEPOTE 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 XK] 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. Kl 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). X) The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. & The utility maintains a critical spare parts list. Xi Operation of Utility Comments: The remote maintenance worker for the region reports that there is a preventative maintenance plan for the existing system. The current utility operator is trained and can run the system but has not passed the certification test. The utility operator reports to the Mayor or Vice-Mayor 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. The utility does not meet all required drinking water regulations and is currently on the SNC list for treatment technique violations and monitoring violations for Stage one and SWTR. The utility operator and council attempt to keep needed critical spare parts on hand. RUBA Activities For The Coming Quarter RUBA staff will provide assistance and will be traveling to the community to offer more assistance in April. -89- January — February — March 2008 3" Quarter FY08 - RUBA Report - 90 - January — February — March 2008 3” Quarter FY08 - RUBA Report Mekoryuk Activity Report Community Overview Lead RUBA Staff: Elizabeth Manfred, Bethel Office 2003 Population: 192 Region: Lower Kuskokwim Local Government: Unorganized Borough od Water is derived from a well, treated and stored in a tank. A new flush/haul system currently serves about 90% of the homes. Funds have been provided to complete the remaining homes which are using honey buckets. The school has its own well and needs a new water treatment system. The washeteria has piped disposal to a new permitted sewage lagoon. RUBA Activity This Reporting Period The management of the utility is by the Native Village of Mekoryuk (NVM), as it operates and manages the utility services through a Memorandum of Agreement with the City of Mekoryuk. The Native Village of Mekoryuk meets all essential indicators at this time. Bethel RUBA staff will continue to monitor the management and receive documentation to support the indicators. The Tribal Administrator reported that the community's fresh water supply had been lost through a leak in the reservoir. The community had no drinking water for a short time. Community members were collecting water from the river for personal use. The school, who has their own water treatment system, agreed to provide 2,500 gallons of water a week and the tribe prioritized the elders and homes with children to get the water first. The village clinic will be provided water when requests are submitted. The water/wastewater department has a 100 gallon delivery tank available to make deliveries. The tribal administrator is contacting state agencies for assistance and is concerned that this emergency will deplete the water/wastewater reserve funds. Heals January — February — March 2008 3" Quarter FY08 - RUBA Report Capacity Indicators Finances Essential Indicators Yes kK XXww & 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 & & 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: The Native Village of Mekoryuk (NVM) submitted the budget and monthly finance reports in an acceptable format. They continue to email the monthly finance reports which show year-to-date, monthly, and budgeted amounts. The manager's reports are done by both the city and NVM. The manager's report showed some fluctuations in major expenses. These were identified as work on the water reservoir and a major fuel purchase. The expense for the washeteria water reservoir was submitted to the project engineer and will be reimbursed. 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. 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. 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 2008 3” Quarter FY08 - RUBA Report Accounting Comments: The tribe keeps records manually and records them in the computer as soon as the transaction is complete. They use Windows XP and QuickBooks Pro 05. They also record receipts with a NEBS manual system. Cash is received, the customer receives a receipt, and it is recorded in the QuickBooks system. Their accounts receivable shows outstanding customer balances of which the majority are people that have moved out of the service area. NVM adopted a purchasing system in 2001. Purchases are first checked to see if sufficient funds are available. If the request is approved, a check is cut and the invoice and check stub are stapled together and filed. Tax Problems Essential Indicators Yes No 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: NVM is interested in adopting the electronic fund payment transaction (EFPT) system for payment. In the meantime, whatever they are doing is right! In a reply from the Taxpayer Advocate, the tribal entity is deemed compliant with filing reports and making deposits. 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. &% &®% wR Be -93- January — February — March 2008 3” Quarter FY08 - RUBA Report Personnel System Comments: The Tribe has worker's compensation insurance through Alaska National Insurance Company through June 22, 2008. There are job descriptions for the city and tribal personnel in the Memorandum of Agreement. NVM uses both the tribal and city personnel policies in dealing with employee issues. Using the city personnel policy, a vacancy is advertised for 15 days. Hiring’s and promotions are based on merit and ability. Performance evaluations are completed by supervisors every six months to ensure productivity, correct weaknesses, and encourage and recognize strengths. There is a 90 day probationary period for new hires. 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. & The utility complies with the open meeting act for all meetings. XRXRRRW Organizational Management Comments: The bookkeeper is highly proficient in the use of QuickBooks Pro. He attended a refresher course in May 2007. The water plant operator has a Level I certificate in Water Distribution and Treatment, and is Operator in Training (OIT) certified in Wastewater and Wastewater Treatment. He has also received training in electrical workshop and boiler maintenance. The alternate plant operator has an OIT certificate in Water Distribution and a Level I certificate in Water Treatment. The City is active in policy making of the utility; they have been reviewing their budget and making changes when needed. -94- January — February — March 2008 3” Quarter FY08 - RUBA Report een AOA Report Operation of Utility Essential Indicators Yes No Xl 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. 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. 4} The operator provides status reports to the manager on a routine basis. 4] The utility has completéd and distributed its Community Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. X The utility maintains an inventory control list. & The utility maintains a critical spare parts list. Operation of Utility Comments: There are currently ten buildings that need flush tank and haul units; eight are residential and two are commercial. The washeteria water reservoir had a tear in the line system. It was repaired using city funds which will be reimbursed by the project. RUBA Activities For The Coming Quarter RUBA staff will continue providing technical assistance when requested; request monthly finance reports and assist with technical aspect of the reports; and will travel to Mekoryuk for reassessment of the Memorandum of Agreement and to renew the RUBA Agreement. -95- January — February — March 2008 3" Quarter FY08 - RUBA Report -96- January — February — March 2008 3" Quarter FY08 - RUBA Report eee ee Re Ep OE Nanwalek Activity Report Community Overview Lead RUBA Staff: Tammy Helms, Anchorage Office 2003 Population: 222 Region: Kenai Peninsula Local Governments: Tribal ed “3 N's: Water is derived from a surface stream and is treated; a new surface water source is under development. Nanwalek has a piped water and sewer system which serves all homes in the village; most are completely plumbed. The village needs a larger water storage tank, new water and sewer mains, new fire hydrants, and a landfill expansion. RUBA Activity This Quarter In January a new administrator was hired to replace the previous administrator that had resigned in July. RUBA staff has contacted the new administrator and will be traveling to Nanwalek to discuss the RUBA assessment and program. The administrator position is paid through Chugachmuit. The Nanwalek IRA Council contracted with the Alaska Native Tribal Health Consortium, (ANTHC) Statewide Utility Association's billing program in 2007. There are approximately 40-45 water connections that are billed through the program. Although the council was hopeful that more customers would pay their bill with an outside entity doing the billing, only three to five customers have been paying. The tribe is unable to disconnect those customers who are not paying because when the distribution system was installed, curb stops where not included in the project. -97- January — February - March 2008 3 Quarter FY08 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No Xl All revenue and expenses for the utility are listed in the utility budget. xl The utility has adopted a balanced realistic budget. & 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. Kl 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. RRR Finances Comments: Nanwalek IRA Tribal Council receives Indian Health Service funds by-passed through Chugachmiut. The tribal bookkeeper provided a profit and loss budget vs. actual report that identified sufficient funds to cover operating expenses for the utility. The monthly financial report submitted to the council consists of a QuickBooks Budget vs. Actual report, along with a Profit and Loss by Class statement. Accounting Systems Essential Indicators Yes No X The utility has adopted a collection policy and actively follows it. X The utility bills customers on a regular basis. X An accounts receivable system is in place which 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. HH 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. - 98 - January — February — March 2008 3” Quarter FY08 - RUBA Report Fadl! AA cl Pllc A ME Mafia eal cai Accounting System Comments: The tribe utilizes a variety of different computer programs (QuickBooks and Excel) for accounts receivable and accounts payable, depending on the service type. The water/sewer service is billed through Excel. The expenses are tracked and reported through QuickBooks. It is recommended that the tribe use QuickBooks for all their utilities to keep the revenues and expenses in one program. 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. X The utility is current on making tax deposits. &X If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: All payroll is calculated, tracked and payroll tax liabilities reports are done, using QuickBooks. The Tribe signed a tax release form; the IRS responded that the Tribe is currently compliant with all 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 attomey, AML, or DCED for topics and language. X The utility has adequate written job descriptions for all positions. Xl The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. & 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 Nanwalek IRA Tribal Council has a posted workers compensation insurance policy with Alaska National Insurance. The tribe reports that they follow their written personnel policy closely, and all employees are provided a copy. The probation period for new hire is 90 days. Training opportunities to staff are provided as funds allow or opportunities by other sponsors come available. -99 - January — February — March 2008 3” Quarter FY08 - 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. & X The policy making body meets as required. & The utility complies with the open meeting act for all meetings. XXRRRKN Organizational Management Comments: The council meets monthly, is active in policymaking, and in enforcing policy. The bookkeeper was the prior utility operator; although he is not currently certified, he helps the current operator when necessary. This experience helps him in being knowledgeable and well versed in the utility in all aspects, from billing to the obstacles the utility faces. The council has reviewed and revised the necessary ordinances that allow the utility to run productively. Operation of Utility Essential Indicators Yes No Xl 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 not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. XI HOR Ww - 100 - January — February ~ March 2008 3 Quarter FY08 - RUBA Report Operation of Utility Comments: The Nanwalek IRA Tribal Council has applied for and received their Regulatory Commission of Alaska Provisional Certification. A preventative maintenance plan was developed and adopted for the sanitation facility. The utility operator reports verbally to the tribal administrator when there is a problem, he can foresee one, or to report the system is running well. A copy of the CCR was completed with the help of Alaska Native Tribal Health Consortium. The utility operator and council try to keep needed critical spare parts on hand. RUBA Activities For The Coming Quarter RUBA staff will travel to the community in May to meet with the new administrator and council. - 101 - January — February —- March 2008 3” Quarter FY08 - RUBA Report - 102 - January — February — March 2008 3" Quarter FY08 - RUBA Report Napaskiak Activity Report Community Overview Lead RUBA Staff: Flora Olrun, Bethel Office 2003 Population: 428 Region: Lower Kuskokwim Local Governments: Tribal Council The Tribal Council in Napaskiak operates and maintains the washeteria, water treatment plant, honey-bucket and flush haul systems respectively for the community. They also have fuel sales to the community. They are in the process of building a new water plan and a new lagoon. The Village Council operates the utility services under a Memorandum of Agreement with the City and is the policy making body. Residents haul treated water from the central point and one of two watering points pre-located in the community. The school has its own well, but needs a new water treatment system. ' RUBA Activity This Quarter RUBA staff traveled to Napaskiak on March 13, 2008 to conduct a RUBA management assessment as a condition of funding for a sanitation project. Napaskiak Traditional Council did not meet all essential and sustainable indicators at this time. The City of Napaskiak owns the utility and allows the Traditional Council to manage the service without a current memorandum of agreement. They do not have worker's compensation insurance coverage. The community has tax reporting issues at this time which will need to be corrected in order for them to meet all essential capacity indicators. - 103 - January — February — March 2008 3” Quarter FY08 - RUBA Report Capacity Indicators Finances Essential Indicators Yes kl KXRKR & All revenue and expenses for the utility are listed in the utility budget. The utility has adopted a balanced realistic budget. Monthly financial reports are prepared and submitted to the policy making body. The utility is current in paying all water/wastewater electric bills. The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators X & X & &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 Bethel regional office received Napaskiak's 2008 budget and it is on file. The budget is balanced and contains adequate revenues to cover operating expenses and repair and replacement costs for the utility. The utility budget is subsidized from gaming revenues and fuel sales income when needed. A monthly financial report was submitted which contained revenues as well as expenses for the month of January, 2008. They are current on all water/wastewater electric bills. Napaskiak is the local supplier for heating fuel and gasoline. Their last purchase was in October for gas and February for heating fuel. They receive fuel and gas supplies through the summer and fall barge services and fuel trucks when an ice-road is cleared on the river during the winter. Their storage capacity for gas is 10,000 gallons and 30,000 gallons for heating fuel. The tribal administrator provides the council with verbal reports. Minutes for a regular council meeting held on January 29, 2008 which contains a record of the tribal administrator's report is contained in the Bethel regional office. - 104 - January — February — March 2008 3” Quarter FY08 - RUBA Report Accounting Systems Essential Indicators Yes No The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. An accounts receivable system is in place which 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. XHRKRK RM 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. Accounting System Comments: Napaskiak's utility ordinance is on file in the Bethel regional office. Under section 11, billing procedures, this section describes the collection policy. Customers are billed in accordance with the utility ordinance. Napaskiak uses the Cougar Mountain program for their accounting system. A sample copy of a customer's monthly bill is on file. It contains billing for water delivery and sewer pump services. The Cougar Mountain program is capable of producing daily, weekly and monthly billing and collection reports. Samples of each type of report are contained in the Bethel regional office file. They submitted a copy of their chart of accounts to the Bethel regional office. The Chief Financial Officer and bookkeeper are scheduled to attend a QuickBooks training session in Bethel during the month of April, 2008. Monthly bank reconciliations have not been done for the utility accounts. They have a procurement policy for their tribal housing program and a purchase requisition form which requires prior approval for general purchases. - 105 - January — February — March 2008 3 Quarter FY08 - RUBA Report Tax Problems Essential Indicators Yes No Xi 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: Napaskiak uses the Cougar Mountain program which has the capacity to calculate, track and report payroll tax liabilities. On February 15, 2008 Internal Revenue Service found the Native Village of Napaskiak to be in compliance with federal tax deposit requirements. But the IRS report also stated they owe federal taxes for 2007 and have no payment agreement for this year. For 2006 a tax lien was recorded in the Bethel Recording District for an outstanding federal tax amount. And they have not filed returns for the 9/2007 and 12/2007. Napaskiak submitted copies of 941 IRS reports for the first three quarters in 2007. Evidence of making the required deposits against the reports was not submitted. The last quarter ending December 2007 is missing from the submitted 941 copies. And they submitted copies of State of Alaska Employment Security Contribution reports for quarters ending June 30, 2007, September 30, 2007 and December 31, 2007. Personnel System Essential Indicators Yes No & 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. The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. The utility provides training opportunities to staff as needed and available. x kX Wk Ww - 106 - January — February — March 2008 3” Quarter FY08 - RUBA Report ——— ees ee’ Personnel System Comments: Napaskiak does not have workers compensation insurance coverage yet. They did submit a copy of workers compensation application to Malone Company Insurance in Bethel. The tribal council is scheduled to meet the week of March 17th at which time the tribal administrator will get approval to proceed with the workers compensation application. A personnel policy which became effective on February 8, 2001 was submitted to the Bethel regional office. They have an employee acknowledgement form stating that the policy was read by the employees. Job descriptions were provided for the following job positions: Tribal Administrator, Chief Financial Officer, Honey Bucket Haul System Operator, and Well Operator. Evaluations are done annually in compliance with the personnel policy. Personnel files are complete and contain I-9's, job applications and evidence of acceptance. The personnel policy addresses the hiring process, probation periods and annual evaluations. The utility does provide training opportunities to staff. The chief financial officer and bookkeeper are scheduled to attend QuickBooks training during the week of April 21st, 2008. Organizational Management Essential Indicators Yes No &] The entity that owns the utility is known and the entity that will operate the utility is set. &) The policy making body is active in policy making of the utility. &X The policy making body enforces utility policy. &X The utility has an adequately trained manager. 1 The utility has an adequately trained bookkeeper. KX] The utility has an adequately trained operator(s). K] The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators Xl The utility has adopted an organizational chart that reflects the current structure. & The policy making body meets as required. & C1 The utility complies with the open meeting act for all meetings. Organizational Management Comments: All the utility facilities are owned by the City of Napaskiak. There is no current Memorandum of Agreement signed between the city and tribal council. Therefore Napaskiak Traditional Council does not have evidence of authority to operate the utilities. The tribal administrator has worked for the council for many years. The chief financial officer and bookkeeper need more training with general accounting procedures. The water treatment plant operator needs more training and is scheduled to go a training session in April of 2008. The copy of an organizational chart which was written into the Napaskiak business Plan for the water and sewer utility was submitted to the Bethel regional office. Napaskiak Tribal Council has a five member council. A letter signed by three members supporting the Business plan was submitted. Therefore the organizational chart which is contained in the business plan is approved. The council has regular monthly council meetings and voluntarily complies with the Open Meetings Act, although they are not required to do so. - 107- January — February — March 2008 j 3 Quarter FY08 - RUBA 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 x iw X Xkkm The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Consumer Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. Operation of Utility Comments: The utility operator is scheduled to attend a training session scheduled for April of 2008. Napaskiak submitted their daily preventative maintenance list for the month of February, 2008. No safety manual was submitted to the Bethel regional office. The tribal administrator stated that they held weekly staff meetings where safety issues were covered. The tribal administrator spots checks the facilities on a regular basis and receives monthly reports from the utility operator. A copy of 2006 Consumer Confidence Report was provided but they have not completed the 2007 CCR report. Napaskiak Traditional Council is on the latest Significant Non-compliance List (SNC) for an August, 2007 for a reporting violation for failing to collect monthly coliform sample. They should be able to return to compliance by five or six months. No inventory control list or critical spare parts list was submitted to the Bethel regional office. RUBA Activities For The Coming Quarter Napaskiak Traditional Council has not met all essential and sustainable indicators. Continue to work with council staff on the indicators. - 108 - January — February — March 2008 3” Quarter FY08 - RUBA Report Newhalen Activity Report Community Overview Lead RUBA Staff: Melissa Taylor, Anchorage Office 2003 Population: 183 Region: Alaska Peninsula Local Governments: 2" Class City od “, 5 NV rea, AP Water is derived from a well and is treated at the washeteria. A piped system serves all 40 homes. A piped sewage system serves 10 homes and facilities and the remaining 30 use individual septic systems. Most residences are fully plumbed. The City provides septic pumping services. The Village Council operates a washeteria. Newhalen has requested funding to relocate the landfill; it is nearing capacity and there is heavy tourist use during the summer months. The school recycles aluminum and newspapers. The INN Electric Cooperative owns a diesel plant in Newhalen and 50 miles of distribution line to connect the three communities. The Tazimina Hydroelectric Project has recently been completed, and powers Iliamna, Newhalen and Nondalton. ~ RUBA Activity This Quarter RUBA staff traveled to Newhalen this quarter to conduct a management capacity assessment. The last assessment was completed in 2006. Thanks to the hard work of the City Administrator the city has come a long way and is much closer at meeting the essential indicators. Unfortunately the main indicator that is holding the city back at this time is the collection rate of utility. The Newhalen water/wastewater utility is far from becoming a self sustaining utility. - 109- January — February — March 2008 3” Quarter FY08 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No & All revenue and expenses for the utility are listed in the utility budget. x The utility has adopted a balanced realistic budget. & Monthly financial reports are prepared and submitted to the policy making body. X The utility is current in paying all water/wastewater electric bills. & The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. & 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. &) YTD revenues are at a level equal to or above those budgeted. 4} YTD expenditures are at a level equal to or below those budgeted. Xx] A monthly manager’s report is prepared. &X Budget amendments are completed and adopted as necessary. Finances Comments: The City of Newhalen adopted a FY08 Budget appropriations ordinance on June 14, 2007. The budget indicates the utility would generate $15,620 in revenues and their expenses for this fiscal year were estimated at 29,483; the shortfall of $13,863 will be subsidized with money the utility receives from Small Claims and PFD assignments, (Permanent Fund Dividend). In the past the city would subsidize the utility budget with money it received from the State (i.e., revenue shares or Municipal Energy Assistance funds). The utility has approximately forty-one (41) customers. Thirty-two (32) of those customers are delinquent on their utility bills. As of March 3, 2008 the utility is owed approximately $24,773.40. Twenty-One (21) customers out of the thirty-two (32) delinquent customers will receive a small claims notice within the month. This puts the utility's current collection rate at only 22%. With 78% of the population not paying for their utilities, an unfair burden is placed on a handful of people who consistently pay and the city's general fund which has no alternative but to support the utility. The utility is far from becoming self-sustaining. The current utility rates are $25. a month for water and $20. a month for sewer. Customer fees are in line with the costs associated with providing the service however; as upgrades to the system are completed, the city will have to reevaluate their customer fees and revisit their collection policies as well as develop creative ways to get their customers to pay for their services. Monthly financial reports are prepared on an excel spreadsheet format and submitted to the policy making body. The City of Newhalen is current on all electric and other bills that relate to the utility system. The city also has an adequate fuel supply on hand and funds available to purchase more fuel in the event it becomes necessary. - 110- January — February — March 2008 3” Quarter FY08 - RUBA Report Accounting Systems Essential Indicators Yes No & The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. xX An accounts receivable system is in place which tracks customers and reports past due accounts and amounts. Xl An accounts payable system is in place. 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. X The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators &] Acchart of accounts is used that identifies categories in a reasonable, usable manner. & Monthly bank reconciliation’s have been completed for all utility accounts. XX] The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. Accounting System Comments: The last phase of the city's collection policy is a small claims action. Unfortunately for the city of Newhalen the city administrator prepared and recently filed twenty-one (21) claims. Filing this many small claims actions will cost the utility approximately $2625.00, excluding mailing and service fees. The City of Newhalen utilizes a combination of manual and computerized financial record keeping ,systems. The accounting software, QuickBooks Pro 2007 version is utilized consistently. The administrator also uses an Excel spreadsheet to track expenses and revenues and for submitting monthly financial reports to the council. The NEBS receipt system is still being utilized to document customer payments. The city's chart of accounts is set up through QuickBooks program. The city has a purchasing policy whereby all purchase requests are written on a purchase order; the city administrator reviews the budgets and makes purchases accordingly. Any purchases over the value of $500 will be presented to the city council for their approval prior to purchasing. Tax Problems Essential Indicators Yes No x The utility has a system to accurately calculate, track, and report payroll tax liabilities. X The utility is current on filing tax reports. Xi The utility is current on making tax deposits. Xi If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The IRS has deemed the City of Newhalen compliant with federal employment and or excise tax filing requirements and complaint with the Federal Tax Deposit requirements. The City of Newhalen is also compliant with the State of Alaska Quarterly Contributions reports. -Ifl- January — February — March 2008 3” Quarter FY08 - 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 attomey, AML, or DCED for topics and language. & The utility has adequate written job descriptions for all positions. &] The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. &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. x The utility provides training opportunities to staff as needed and available. XI Personnel System Comments: The City of Newhalen has a Workers Compensation policy purchased through AML/JIA with an active policy date of July 1, 2007 through July 1, 2008. The city utilizes a personnel policy that was previously reviewed by DCCED, job descriptions are written and a few recently revised. All of their personnel files are neatly organized and filed in alphabetical order. All files contain an I-9, job application and letter of acceptance. New hires have a probationary period and employees are given the opportunity to travel for training as needed. The utility manager will be attending a utility training in Dillingham April 8-10, 2008. 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 KX] 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. HNNXXXX January — February — March 2008 3" Quarter FY08 - RUBA Report Organizational Management Comments: The City of Newhalen is the owner of the water/wastewater utility. The decision making authority and enforcement of the utility policy is vested in the council. The collection rate for the city is currently at 22%. The city will need to increase their current collection rate and strengthen their collection policy. 78% of the utilities customers are delinquent, this means only nine (9) customers are paying for their utilities. The city administrator is the manager of the utility and the mayor and the water plant operator see to it that the day-to-day duties of the plant are performed. They defer all of the administrative duties to the city administrator. Operation of Utility Essential Indicators Yes No : X The utility operator(s) are actively working towards necessary certification. &l The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators KX The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. KK] The utility has a safety manual and holds safety meetings. KX] 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). &X] 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. XMX Operation of Utility Comments: The city does not have a safety manual and has not scheduled a safety meeting. RUBA staff will assist as requested in this area. Wassily Ishnook is the primary plant operator of the utility. Wassily currently does not hold any water/waste water utility certificates. Wassily is in the process of educating himself further in this area and is planning to attend water utility training in Dillingham on April 8-10, 2008. At present The City of Newhalen is on the Significant Non-Complier list for Village Safe Water Funding Condition Use (SNC) for a monitoring violation with an MCL violation stemming from some positive samples. The system needs six months of Total coliform sampling (0 of 6 months towards compliance) to return to compliance. RUBA Activities For The Coming Quarter The City of Newhalen has not met all of the essential indicators. In order to meet them, the utility must take the following actions, enforce the utilities collection policy and improve the utilities collection rate. The city should also adopt a safety manual and conduct regular safety meetings safety meetings, develop and maintain an inventory control and comply with the required sampling recommendations in order to get off of the SNC list. RUBA staff will provide assistance via, phone, facsimile and email to the community as needed and requested. - 113 - January — February — March 2008 3" Quarter FY08 - RUBA Report eS -114- January — February — March 2008 3 Quarter FY08 - RUBA Report ee er ee ae eon ee Nightmute Activity Report Community Overview Lead RUBA Staff: Elizabeth Manfred, Bethel Office 2003 Population: 228 Region: Yukon-Kuskokwim Delta Local Governments: 2" Class City od Veta e pe AO : The City of Nightmute provides a small water facility, which is the central watering point for residents to haul their own water. The City also provides water and sewer haul service. The city utility system has 37 residential units, 5 commercial/residential and 6 commercial units. The school has its own sewage lagoon. A washeteria is not available. The Nightmute power plant was acquired by AVEC in March 1998. Electricity is provided by AVEC. RUBA Activity This Quarter The City of Nightmute experienced tumover in both the administrator and bookkeeper positions. Nick Tom Jr. accepted the administrator job in February. His previous experience was with the Newtok Traditional Council. He brings management skill to the position and is working hard to add municipal government experience to his responsibilities. His first major issue concerned a local business who is collecting sales tax yet is not reporting it or submitting it to the city per ordinance. Former City Bookkeeper Elizabeth Joe is assisting with training the new bookkeeper in the areas of monthly finance reports. She had agreed to do so when submitting a resignation. Her past experience will be very important in maintaining the stability of the accounting process, especially with billings and collections. January — February — March 2008 3 Quarter FY08 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No All revenue and expenses for the utility are listed in the utility budget. The utility has adopted a balanced realistic budget. Monthly financial reports are prepared and submitted to the policy making body. The utility is current in paying all water/wastewater electric bills. KX] The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. X The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. YTD revenues are at a level equal to or above those budgeted. YTD expenditures are at a level equal to or below those budgeted. A monthly manager’s report is prepared. Budget amendments are completed and adopted as necessary. RNNE XXRR Finances Comments: The city has sent all required financial documents to Juneau required to receive the Community Energy Assistance Program (CEAP) monies. Monthly financial reports are received in the Bethel office. The city has requested the Payment in Lieu of Taxes (PILT) funds be sent directly to Crowley Marine Services for a fuel order. Passage of a resolution to request this must be received in Juneau before the department can release the funds. 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. 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. HXXK WKN nm oc kim -116- January — February — March 2008 3” Quarter FY08 - RUBA Report Accounting System Comments: The collection policy is included in the utility service agreement that the customer signs. Collection is due in 30 days and interest is assessed on delinquent accounts. The city has biodegradable plastic liners for the customers that are using honey buckets and dumping the sewage into the lagoon. A NEBS cash receipt system is used to record revenues from customers. The payment is recorded in the customer records and then transferred to the computer. A sample purchase procedure system was offered to the city for their review and adoption. 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. xX 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 is current with payroll tax liability payments and quarterly reports. However, they have received a notice letter for the tax year 2004, in which the statements do not match the tax returns. The bookkeeper will review the tax information and make the corrections. Personnel System Essential Indicators Yes No Xl The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators x The utility has adopted and uses a Personnel Policy, which has been reviewed by an attomey, AML, or DCED for topics and language. XX] 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. Kl The utility has an adequate written hiring process. Xl The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. X The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. 1] The utility provides training opportunities to staff as needed and available. Personnel System Comments: The city has worker's compensation insurance through AML/JIA. The insurance covers the period July 01, 2007 to July 01, 200 -117- January — February — March 2008 3” Quarter FY08 - 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 RRR xX] The utility has adopted an organizational chart that reflects the current structure. X The policy making body meets as required. RX The utility complies with the open meeting act for all meetings. Organizational Management Comments: The city sent the water operator for certification two or three times but he did not pass the tests. He has decided to resign from his position. The city is attempting to find, hire and train a new water operator. 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. XJ The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Consumer Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. XX] The utility maintains an inventory control list. XX] The utility maintains a critical spare parts list. KXKKeX w Operation of Utility Comments: The sewage haul and water delivery fee was raised to $27.50 from $25.00. The city has been hiring temporary workers to conduct water sampling and paying $25.00 for conducting the sampling. The clinic is using a piped water system to fill their water holding tank. They are averaging about six sewage hauls a month for which they are charged a fee; the city has not charged any fee for water usage, however. The utility account has sufficient funds for emergency purposes. The city also has funds available to order spare parts for customers when needed by them. - 118- January — February — March 2008 3 Quarter FY08 - RUBA Report RUBA Activities For The Coming Quarter RUBA staff will request a preventative maintenance plan for the facility and equipment and is sending the utility a tax release form for signature. RUBA will continue requesting monthly financial reports. - 119- January — February — March 2008 3 Quarter FY08 - RUBA Report Nondalton Activity Report Community Overview Lead RUBA Staff: Melissa Taylor, Anchorage Office 2003 Population: 203 Region: Alaska Peninsula Local Governments: 2 Class City The City of Nondalton operates the piped water and sewer 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 11 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 Anchorage RUBA staff traveled to Nondalton in March to conduct a management capacity assessment. The last assessment was completed in 2007. Unfortunately a few of the essential indicators have not been met at this time. RUBA staff is available to assist the city with their attempt to meet all of the essential indicators and will help them move forward on any pending projects. January — February — March 2008 3" Quarter FY08 - 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. XI 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 XX] The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. XX YTD revenues are at a level equal to or above those budgeted. [] YTD expenditures are at a level equal to or below those budgeted. Xl A monthly manager’s report is prepared. & Budget amendments are completed and adopted as necessary. Finances Comments: The City of Nondalton adopted a FY08 Budget appropriations ordinance on May 10, 2007. According to the former city administrator, the utility expects to generate $79,702.00 in revenues from a variety of sources as well as customer generated funds. Other source funds will include fees received from the refuse haul service, land lease revenues and a mail contract. Even though these funds are earmarked to support the utility they are not listed as such in the FY08 appropriations ordinance. With expenses in the amount of $75,855 the utility is very close to becoming self sustaining. However, on review of the customer account print outs discrepancies are evidenced in billings. The current city administrator states she has not received training on the new software QuickBooks and as such she acknowledges accounts may not be accurate. With out an accurate snapshot of accounts receivable (customer accounts) it is difficult to determine the financial status of the utility account and the collection rate could not be determined at this time. The city administrator gives the council a verbal monthly report and provides the council with a monthly profit and loss report generated from the QuickBooks Pro system however; if the accounts are inaccurate the verbal reports are inaccurate. Anchorage RUBA staff was contacted in December of 2007 and notified that the City of Nondalton was experiencing a fuel delivery emergency situation. The city was able to have the fuel delivered just before Christmas. According to the administrator, the city has enough fuel on hand and is doing well with their fuel sales. The city will continue to replenish their fuel supply as needed. January — February — March 2008 3 Quarter FY08 - RUBA Report ee ee Np Or Accounting Systems Essential Indicators Yes No Xl The utility has adopted a collection policy and actively follows it. & The utility bills customers on a regular basis. &X Anaccounts 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 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. XwWOR zB Rex Accounting Systems Comments: The City of Nondalton adopted a revised collection policy in 2006 to include the solid waste disposal, sewage and water. The policy making body works very hard to enforce their policies. Utility customers are billed regularly on or before the 20th of each month. The city utilizes a combination of manual and computerized financial record keeping systems. The accounting software, QuickBooks Pro 2007 version is utilized consistently. The NEBS receipt system is still being utilized to document customer payments. The city’s chart of accounts is set up through QuickBooks program. Payroll taxes currently are not calculated correctly because the city has not subscribed to the QuickBooks Pro fiscal tax updates. The city has a purchasing policy whereby all purchase requests are written on a purchase order; the city administrator reviews the budgets and makes purchases accordingly. Any purchases exceeding the proposed budgeted amount will need to be presented to the city council for their 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. X &] If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The IRS has deemed the City of Nondalton non-compliant with federal taxes because they owe federal taxes for the last quarter in 2007. The city may also owe additional taxes that have not yet been posted. The first quarterly reports were due to the IRS on March 15, 2008. Staff may want to contact their tax advocate and find out if and how much money is owed for the first quarter. The City of Nondalton is compliant with the State of Alaska Quarterly Contributions reports. January — February — March 2008 3” Quarter FY08 - RUBA Report Personnel System Essential Indicators Yes No Xl The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators X The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. X The utility provides training opportunities to staff as needed and available. Kh KX We Personnel System Comments: The City of Nondalton has a Workers Compensation policy purchased through Umialik Insurance Company. The policy has an active date of May 23, 2007 through May 23, 2008. 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. - 124 - January — February — March 2008 3 Quarter FY08 - RUBA Report Organizational Management Essential Indicators Yes No a) The entity that owns the utility is known and the entity that will operate the utility is set. X The policy making body is active in policy making of the utility. &X The policy making body enforces utility policy. &] The utility has an adequately trained manager. XX 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 &X The utility has adopted an organizational chart that reflects the current structure. & The policy making body meets as required. X The utility complies with the open meeting act for all meetings. Organizational Management Comments: The City 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. In the past the City of Nondalton struggled with collection of payments from its customers. A creative seasonal strategy was suggested and implemented and is as follows: The City of Nondalton may propose a payment solution to an individual who has a rather large balance owed and who has expressed a desire to pay for their services but has no source of income or alternative method of payment other than this agreement. The city agrees to employ and the customer agrees to perform specific (day labor) duties in lieu of a $10 hourly payment for general labor tasks and $20.00 for construction type activities. This employment is considered temporary and seasonal. The total number of allowed hours/worked per week is 40 and the length of employment allowed is up to a 4 week period. The city agrees to pay employment taxes and workers compensation insurance for individuals employed under this arrangement. The payment to the worker is in the form of a credit to the customers account. (For example if a customer works 5 hours at $10.00 an hour, $50.00 is credited to their account). If the city absorbs the insurance costs and employment taxes the contract is not reflecting the true cost to the city. The process seems fairly straight forward however, the utility's customer records are very difficult to decipher. The city administrator will need to revisit all these accounts and assure accuracy. Additionally, upon review of the utility budget each service (i.e., water, sewer and refuse haul) appear to have an overall credit balance. This would indicate that all customers are paying or certain individuals are prepaying. Customers that are reported to have a negative balance are in fact reflecting a credit balance. Without access to each customer account it is impossible to determine the exact status of the utility account. The mayor and the water plant operator see to it that the day to day duties of the plant are performed and defer all of the administrative duties to the city administrator. January — February — March 2008 3m Quarter FY08 - RUBA Report Operation of Utility Essential Indicators Yes No ® The utility operator(s) are actively working towards necessary certification. Xd 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. y HWKKNK WN Operation of Utility Comments: The city has adopted a safety manual and has scheduled safety meetings. The City of Nondalton has three utility plant operators. Operators have the following certifications. Water Treatment Provisional Water Distribution OIT x 2 Water Treatment OIT x 2 the utility has completed and posted its CCR report and at the present time the City of Nondalton is not on the Significant Non-complier List for VSW Funding. The utility maintains an inventory control list and a critical spare parts list is prepared and on file. RUBA Activities For The Coming Quarter The City of Nondalton have not met all of the essential indicators however, RUBA staff plans to provide assistance in every area that assistance is requested. RUBA staff is available to provide on-site training or via phone or email. - 126- January — February — March 2008 3” Quarter FY08 - RUBA Report Old Harbor Activity Report Community Overview Lead RUBA Staff: Tammy Helms, Anchorage Office 2003 Population: 200 Region: Kodiak Island Local Governments: 2™ Class City od * Water is supplied by a dammed creek and an infiltration Vo a pe gallery, is treated and stored in a tank, then distributed via pipes. A community septic tank treats piped sewage. All residences are connected to the public water and sewer system and have complete plumbing. Refuse collection services are not available, although the City has requested funding for dumpsters and vehicles to do so. The landfill was recently relocated. They are interested in developing hydroelectricity. Electricity is provided by AVEC. There is one school located in the community, attended by 62 students. Local hospitals or health clinics include Old Harbor Health Clinic (286-2205). Old Harbor is classified as an isolated village, and it is found in EMS Region 2G in the Kodiak Region. Emergency Services have coastal and air access. Emergency service is provided by volunteers and a health aide. Auxiliary health care is provided by Old Harbor Village Response Team (286-2293/2270). RUBA Activity This Reporting Period In January one member of the Old Harbor City Council attended the QuickBooks training in Anchorage sponsored by RUBA. The Council Member found the course to be informative and helpful in many areas and was able to share her new knowledge to benefit the city and community. Old Harbor continues to meet all essential management indicators. January — February — March 2008 3” Quarter FY08 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No & All revenue and expenses for the utility are listed in the utility budget. X The utility has adopted a balanced realistic budget. x Monthly financial reports are prepared and submitted to the policy making body. X The utility is current in paying all water/wastewater electric bills. & The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. x The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators 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. KX] Budget amendments are completed and adopted as necessary. kW Finances Comments: Monthly financial reports are prepared via QuickBooks by city Treasurer Russell Fox. The council is presented a monthly/year-to-date budget report along with a profit and loss statement. The city has an adequate fuel supply on hand for the winter months. In the event of emergency repairs, the city will purchase the parts from the general fund. The water and sewer revenues are not sufficient to cover operating expenses; however, the city subsidizes its water and sewer utility through fuel sales. Due to the newly adopted collection policy and enforcement of it, revenues have been above those budgeted. The council has also been diligent in working with the city clerk and treasurer, resulting in expenditures that have been below those budgeted. - 128 - January — February — March 2008 3" Quarter FY08 - RUBA Report Accounting Systems Essential Indicators Yes No & The utility has adopted a collection policy and actively follows it. & The utility bills customers on a regular basis. & An accounts receivable system is in place which tracks customers and reports past due accounts and amounts. X An accounts payable system is in place. &X The payroll system correctly calculates payroll and keeps records &X A cash receipt system is in place that records incoming money and what it was for. &X The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators & A chart of accounts is used that identifies categories in a reasonable, usable manner. X Monthly bank reconciliation’s have been completed for all utility accounts. X The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. Accounting Systems Comments: The city has adopted a collection policy and the council has supported the city clerk and treasurer in implementing it. The city utilizes QuickBooks for accounts receivable and accounts payable. The city administrator appears to be knowledgeable and fluent in working with QuickBooks. The city bills customers separately for fuel and water services. Bills are mailed before the 15th of each month. Accounts payable are set aside in a designated location and paid twice a month. Tax Problems Essential Indicators Yes No a} The utility has a system to accurately calculate, track, and report payroll tax liabilities. Xx The utility is current on filing tax reports. & CO The utility is current on making tax deposits. & If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The city has signed a tax release form. IRS and DOL both report that the City has no deficiencies at this time. -129- January — February — March 2008 3 Quarter FY08 - RUBA Report Personnel System Essential Indicators Yes No xX The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators &X x Hk ww XX] The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. The utility provides training opportunities to staff as needed and available. Personnel System Comments: The City of Old Harbor has a posted workers compensation insurance policy in effect from 7/1/07 to 7/1/08 with AML/JIA. 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 in the city office. There is currently no probationary period for employees, and evaluations are done on an as needed basis when requested by the employee or council. Training opportunities to staff are provided as funds allow or opportunities by other sponsors come available such as Kodiak Area Native Association and Village Safe Water. Organizational Management Essential Indicators Yes HXRNeXRR 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. The utility complies with the open meeting act for all meetings. - 130- January — February — March 2008 3” Quarter FY08 - RUBA Report Organizational Management Comments: The mayor stated that the council is active in policy making. The council has made an active effort to hold regular scheduled monthly meetings. The current utility operator is trained and certified. The community also has a trained employee who will be seeking certification in the near future through Village Safe Water. The treasurer is knowledgeable in QuickBooks and has been working with the program since 1996. The treasurer expressed interest in working with the RUBA program to draft an organizational chart that reflects the current structure for council approval and adoption. The city clerk has shown the ability to perform the tasks as city clerk. 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. XK 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 im MMe Operation of Utility Comments: In speaking with the remote maintenance worker for Village Safe Water, Steve Evavold, there is a preventative maintenance plan for the existing system. The current utility operator is trained and certified, and the community also has a trained employee who will be seeking certification in the near future through Village Safe Water training programs. The utility operator reports to the mayor when there is a problem or he can foresee one. The utility operator and council attempt to keep needed critical spare parts on hand. RUBA Activities For The Coming Quarter RUBA staff will continue to provide telephone, fax, and e-mail support and assistance as needed. -131- January — February - March 2008 3" Quarter FY08 - RUBA Report eS — January — February — March 2008 3” Quarter FY08 - RUBA Report Pitka’s Point Activity Report Community Overview Lead RUBA Staff: Flora Olrun, Bethel Office 2003 Population: 103 Region: Lower Yukon Local Governments: Tribal Council Water is supplied by a small stream and infiltration gallery. Residents haul treated water from the washeteria and use honeybuckets. Approximately one-fourth of homes have running water for the kitchen. A few homes and facilities are connected to a community septic tank, but no homes have complete service. The water treatment plant and washeteria were recently renovated. The community wants to develop a piped water and sewer system, and a master plan was completed in February 2004. AVEC provides electricity through a transmission line from St. Mary's. RUBA Activity This Reporting Period Bethel RUBA staff traveled to Pitka’s Point on February 7, 2008 to complete a RUBA management assessment. Their 2008 budget in on file. The last monthly financial report submitted to the Bethel regional office was for the month ending March, 2008. On February 29, 2008 Pitka’s Point submitted their Daily Preventative Maintenance Plan Check List. They are currently on the Significant Non- Compliance list for a September 2007 violation with low free chlorine level readings and high turbity level including prior months. If they continue to meet requirements, they should return to compliance by six months. A copy of the Authorization to Request Federal Tax Information dated, 1/7/08 is on file in the Bethel regional office. IRS found Pitka's Point Village Council to be compliant with all reports, tax payments and there are no outstanding federal tax liens. Their worker's compensation insurance expired on March 1, 2008. - 133- January — February — March 2008 3" Quarter FY08 - RUBA Report Capacity Indicators Finances Yes No xX All revenue and expenses for the utility are listed in the utility budget. & 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. &) 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. &X 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 tribal administrator provides financial reports to the tribal council on a monthly basis. Pitka’s Point submitted their budget for 2008 signed by their council president, Ruth Riley. Overall the budget contains enough revenues to cover total expenditure costs for the year, therefore is balanced. Their utility, Safewater, is subsidized with discretionary funds from the general fund. The budget contains a line item for repairs and has sufficient revenue to cover operating costs. On February 14, 2008 they submitted a monthly financial statement which contained the budget, monthly expenditures and balance. The utility is current on water/wastewater electric bills and is subsidized from the general fund. Copies of January, 2008 payments made to Alaska Village Electric Corp. are on file. Pitka’s Point purchases fuel from Crowley Marine who has a tank farm in St. Mary's. Pitka’s Point is connected to Saint Mary's by a road. Because of this, they have no need to store a huge amount of heating fuel and only purchase enough to fill their 500 gallon tank. Monthly reports to the council are verbal, a copy of the minutes dated January 23, 2008 is located in the Bethel regional office file. - 134- January — February — March 2008 3” Quarter FY08 - RUBA Report Accounting Systems Essential Indicators Yes No The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. An accounts receivable system is in place which 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. XHHRRX KRM 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. Xl The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. Accounting System Comments: All essential and sustainable capacity indicators are met in this area. A utility ordinance exists for this organization and a copy is on file. The utility ordinance contains a collection policy under section twelve. Trash and sewer services are prepaid before services are rendered. Although these services are available to the public, many people choose to do this work themselves. Customer billing for water deliveries, which is done with a delivery truck, was implemented in February 2006 and a sample is on file. This system has an internal chart of accounts and a copy on file. The following bank accounts, General Fund and Safewater, are reconciled on a regular basis by the bookkeeper. A copy of their purchase order that requires prior approval for purchases is on file. The following customer documents are on file: price lists for the Laundromat which includes prices per gallon for hot and cold water, prices for water deliveries and trash pickup services, customer receivables for trash pick-up, and a sample customer account for water deliveries. 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. Xl If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: They are currently in compliance with 941 quarterly reports with IRS and state reporting at this time. A copy of the Authorization to Request Federal Tax Information dated, 1/7/08 is on file in the Bethel regional office. IRS has found Pitka's Point Village Council to be compliant with all reports, tax payments and there are no outstanding federal tax liens. The last four quarterly tax reports are on file in the Bethel regional office. January — February — March 2008 3” Quarter FY08 - RUBA Report Personnel System Essential Indicators Yes No &) The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators &] The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. & The utility has adequate written job descriptions for all positions. &] The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. & The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. & The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. & The utility provides training opportunities to staff as needed and available. Personnel System Comments: Their worker's compensation insurance expired on March 1, 2008. Copy of their personnel policy is on file but does not contain language for a hiring process, probation period or evaluation of employees. Job ° descriptions for the Tribal Administrator, Tribal Clerk, Bookkeeper, Maintenance Worker, Custodial Worker and Maintenance Man (Public Works Director) are on file. The tribal administrator has not conducted any written personnel evaluations. Employee files contain I-9s and are complete. - 136- January — February — March 2008 3” Quarter FY08 - 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. XK) The utility complies with the open meeting act for all meetings. XHXNNKRK Organizational Management Comments: The Bethel regional office has on file a Water and Sewer Utility Ordinance for Pitka's Point which was approved on February 2, 2006 and signed by the Traditional President and Secretary. The Pitka’s Point Traditional Council meets monthly and is active in policy making of the utility: The utility worker has worked for Pitka’s Point Safewater for two years and there are plans for him to attend additional training when it becomes available. Copies of his successful completion of Introduction to Small Wastewater Systems for March 22, 2007 and Electrical Control for Utility Operators for May 24, 2007 are on file. The bookkeeper will attend the utility management training workshop in Bethel in February. There is no organizational chart that has been approved the council. The tribal council meets monthly and they are in compliance with the open meetings act, although it is not required for tribal entities. Operation of Utility Essential Indicators Yes No ® The utility operator(s) are actively working towards necessary certification. XK) The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators &X] The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. &] The utility has a safety manual and holds safety meetings. ®) Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). 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 KRKKKX January — February — March 2008 3 Quarter FY08 - RUBA Report Operation of Utility Comments: The Water Treatment Plant Operator has taken and completed Introduction to Small Wastewater Systems Training in March of 2007. He also expressed a desire to take Boiler Maintenance training. On February 29, 2008 Pitka’s Point submitted their recent Daily Preventative Maintenance Plan Check List. The tribal administrator receives handwritten operations and maintenance information, does not receive any monthly reports from the utility operator and does not carry out spot checks. They do have a safety manual but has not conducted any safety meetings. The customer service agreement lists the utility services that would be provided by Pitka’s Point. Pitka’s Point Safewater is continuing to operate at the level of service stipulated in the agreement. Their latest consumer confidence report dated 2006 is on file. They still have to complete the consumer confidence report for 2007. They are currently on the SNC list for September 2007 violation with low free chlorine level readings and high turbity levels including prior months. If they meet reporting requirements, they should return to compliance by six months. They did not submit an inventory control list or a critical spare parts list. RUBA Activities For The Coming Quarter Pitka’s Point has met all of the essential capacity indicators. Continue to work with Pitka’s Point on the recommended sustainable indicators to be implemented. - 138 - January — February — March 2008 3” Quarter FY08 - RUBA Report EO EO A Report Platinum Activity Report Community Overview Lead RUBA Staff: Ralph Andrew, Dillingham Office 2003 Population: 38 Region: Dillingham Local Governments: Tribal Council rr Nine private homes reportedly have individual water wells, septic systems and plumbing. During the summer, untreated water is hauled from approximately twenty watering points. During winter, residents dig holes in the ice to draw water. Homes without water and sewer service utilize honey buckets which are disposed of in seepage pits or the slough. A washeteria was constructed but is not in use. A DEC/VSW Water/Sewer and Solid Waste Feasibility Study was funded in FY 2003 to assess water, sewer and solid waste needs including a water storage tank, new water treatment plant, connections and plumbing, sludge disposal site, and landfill. A Village Safe Water project to renovate the water/sewer system is moving forward and construction will start as early as summer 2007. The City operates the electric utility and landfill. Community fuel storage capacity is as follows: Arvig Inc. (67,100 gals.); City Power Plant (5,600); Lower Kuskokwim Schools (7,000). RUBA Activity This Reporting Period RUBA traveled to Platinum in March 2008 to provide onsite assistance and review RUBA Assessment Management Indicators. Village council staff continue to maintain satisfactory RUBA essential indicators and maintain contact with the Village Safe Water engineer and Remote Maintenance Worker based at Yukon-Kuskokwim Health Corporation. The village council is presently satisfying all of the RUBA Essential Indicators. Concerning city-operated utilities, RUBA provided assistance to city officials during the quarter with budgeting and assembly of certified financial statements. With completion of the FY 2008 budget, the city can now access much-needed FY 2008 state energy assistance funding. - 139- January — February — March 2008 3" Quarter FY08 - RUBA Report Capacity Indicators Finances Yes No x & &X X x X All revenue and expenses for the utility are listed in the utility budget. The utility has adopted a balanced realistic budget. Monthly financial reports are prepared and submitted to the policy making body. The utility is current in paying all water/wastewater electric bills. The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators XXnN 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 village council's calendar-year 2008 water/sewer budget, adopted in December 2007 is balanced and realistic. Budgeted revenues exceed budgeted expenditures and as such, RUBA recommends any available surplus be set aside for repair and replacement costs. Year-to-date revenues are presently covering operating expenditures. Staff consistently provide financial and operational reports to the village council. Staff uses QuickBooks accounting software and spreadsheet-based financial reports provided by RUBA. Accounting Systems Essential Indicators Yes KKKHK WKH 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. Su a Xow 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. - 140- January — February — March 2008 3” Quarter FY08 - RUBA Report Accounting System Comments: The village council serves as the utility board and enforces the water/sewer ordinance including a collections policy. Staff use QuickBooks accounting software for bookkeeping including payroll processing. Staff abide by a procurement process that requires approval prior to purchase. RUBA continues to recommend consistent monthly reconciliation of all bank accounts. Tax Problems Essential Indicators Yes No Xd The utility has a system to accurately calculate, track, and report payroll tax liabilities. Xl The utility is current on filing tax reports. & The utility is current on making tax deposits. Xi If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: According to the IRS Taxpayer Advocate Service on March 17, 2008, the village council is presently meeting federal tax obligations. Personnel System Essential Indicators Yes No & The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators ® The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. X The utility has adequate written job descriptions for all positions. : &) The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. & The utility has an adequate written hiring process. &] The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. & The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. Xl The utility provides training opportunities to staff as needed and available. Personnel System Comments: The village council workers' compensation insurance coverage is current through March 25, 2008. Staff utilizes a comprehensive personnel policy and are presently reviewing its content to ensure it meets current standards. Personnel recordkeeping improved in recent quarters and RUBA recommends further improvements with respect to personnel record filing. - 141- January — February — March 2008 3 Quarter FY08 - 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. & X) The policy making body meets as required. X The utility complies with the open meeting act for all meetings. KXRNKKR Organizational Management Comments: The village council actively sets utility policy. RUBA encourages the council to continue inviting the public to participate in matters related to the public water/sewer system. The village administrator is presently seeking a qualified alternate water operator to facilitate staffing continuity. Administrative staff are trained and are granted access to training opportunities by the village council. The council meets regularly and has expressed ongoing desire to maintain compliance with sanitation grant conditions. 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 K) 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. I 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. ie wee January — February — March 2008 3” Quarter FY08 - RUBA Report Operation of Utility Comments: A trained water operator continues to oversee the work of a newly hired water operator. The utility remains listed on the Significant Non-Complier (SNC) list for a Surface Water Treatment Rule Unfiltered violation but is actively seeking system improvements that will facilitate compliance. The utility timely submitted its 2006 Consumer Confidence Report. The water operator utilizes a checklist of operational requirements provided by the Remote Maintenance Worker and indicated plans to identify an inventory control list and critical spare parts list. RUBA Activities For The Coming Quarter RUBA maintains contact with the village council as they work to maintain satisfactory RUBA essential indicators. RUBA plans to finalize a RUBA workplan jointly with the village council. The workplan is an outcome-oriented task list intended to facilitate ongoing capacity development. - 143- January — February — March 2008 3 Quarter FY08 - RUBA Report - 144 - January — February — March 2008 3" Quarter FY08 - RUBA Report Saint Mary’s Activity Report Community Overview Lead RUBA Staff: Flora Olrun, Bethel Office 2003 Population: 570 Region: Lower Yukon Local Governments: |* Class City Water is derived from Alstrom Creek reservoir and is 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 honeybuckets: the City provides hauling services. 20 new HUD houses were recently connected to the system. A new honeybucket 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. RUBA Activity This Quarter Bethel RUBA staff traveled to St. Mary's this quarter to complete a management assessment per the community's request. Documentation was received and is on file in the Bethel regional office to support the findings listed below. The City of Saint Mary's has met all of the essential capacity indicators and a majority of the sustainable ones. They are fortunate in having a very well trained stable staff. January — February — March 2008 3" Quarter FY08 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No Xl All revenue and expenses for the utility are listed in the utility budget. & The utility has adopted a balanced realistic budget. & Monthly financial reports are prepared and submitted to the policy making body. Xl The utility is current in paying all water/wastewater electric bills. x The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. & 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: A budget for fiscal year 2008 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 1, 2007. 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. Their last purchase reflects a purchase of 1,500 gallons of gasoline and 30,000 gallons of heating fuel. The city manager submitted a copy of his last monthly report that was given to the city council. The latest monthly financial reports is on a year-to-date basis. The last report was adjusted to reflect monthly expenditures and a copy for time period ending December, 2007 in on file. The need to make budget amendments are 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. - 146- January — February — March 2008 3” Quarter FY08 - RUBA Report Accounting Systems Essential Indicators Yes No The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. An accounts receivable system is in place which tracks customers and reports past due accounts and amounts. An accounts payable system is in place. The payroll system correctly calculates payroll and keeps records A cash receipt system is in place that records incoming money and what it was for. The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators A chart of accounts is used that identifies categories in a reasonable, usable manner. Monthly bank reconciliation’s have been completed for all utility accounts. The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. HRRRX KM a hem Accounting Comments: They have a collection policy located in their 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 recently transferred their accounting system from American Fundware to “4 QuickBooks Pro. All accounts payable, receivable and payroll transactions are run through QuickBooks ~ Pro. A copy of their chart of accounts was submitted which 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 X The utility has a system to accurately calculate, track, and report payroll tax liabilities. Kl 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 of St. Mary’s Internal Revenue report reflects a compliance with tax filing requirements, deposits, and no tax liens was located. Copies of previous four quarters 941 reports have been placed in the Bethel regional office file. The next quarterly report is being worked on and will be submitted to IRS when completed. - 147- January — February — March 2008 3" Quarter FY08 - RUBA Report Personnel System Essential Indicators Yes No &X The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators xX) The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. & The utility has adequate written job descriptions for all positions. 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. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. ' X The utility provides training opportunities to staff as needed and available. X ww Personnel System Comments: The City of St. Mary’s is covered by Alaska Municipal League Joint Insurance Association, Inc. and their insurance is good through 7-1-2008. Proof of the workers compensation insurance coverage has been placed in their file located in Bethel regional office. The city does have a personnel policy which was done 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. Under the personnel policy, job evaluations are to be done informally daily and eventually done in a formal way after successful completion of the probationary period. Additional evaluations are specified but have no timeframe. 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. - 148 - January — February — March 2008 3” Quarter FY08 - 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. HRR KKK & The policy making body meets as required. &X The utility complies with the open meeting act for all meetings. Organizational Management Comments: The city council is active in policy making for the utility. They are currently reviewing a proposed rate change for utility services. 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 “manager and city clerk attended college, and have had accounting courses as well as worked for “approximately two years each for the City of St. Mary’s. They share bookkeeping responsibilities for “the city and use 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 schart. 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 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. &] The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). KK] The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. xX) HNO - 149- January — February — March 2008 3 Quarter FY08 - RUBA Report Operation of Utility Comments: The Utility Worker has many training certificates including Water Distribution Level 4 with an expiration date of 12/31/10. An inventory control list dated 1/24/08 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. According to January, 2008 Significant Non-complier List, St. Mary's was on the list for a 2007 violation. They should return to compliance within three to six month. The latest 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 capacity indicators. Bethel RUBA staff will continue to work with Saint Mary’s on changing the recommended sustainable indicators to be implemented. - 150 - January — February — March 2008 3™ Quarter FY08 - RUBA Report Selawik Bay Activity Report Community Overview Lead RUBA Staff: Margaret Hansen, Kotzebue Office 2003 Population: 767 Region: Northwest Arctic Local Governments: 2" Class City, od The community has piped water and sewer throughout ee po ad the entire community now. 96% fully piped. Water plant te 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 doing a Comprehensive Performance Evaluation which will be helpful to determine what changes needs to be implemented. RUBA Activity This Quarter RUBA staff received confirmation from IRS that the city is in compliance with all tax reporting. RUBA staff has received a signed RUBA agreement which has been forwarded to central office for approval and signature. A work plan will be drafted by RUBA and city staff which will ensure quarterly on-site visits to provide management assistance in meeting all essential and sustainable indicators. - 151- January — February — March 2008 3” Quarter FY08 - 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. 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. & The utility is receiving revenues (user fees or other sources) sufficient to cover operating ex penses. Sustainable Indicators The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. & YTD revenues are at a level equal to or above those budgeted. ] YTD expenditures are at a level equal to or below those budgeted. XK A monthly manager’s report is prepared. ® Budget amendments are completed and adopted as necessary. Finances Comments: The city has had to do unplanned repairs to the water/sewer system so just passed an amended budget in March but still have not increased user fees to cover the costs of operating and maintaining the water/sewer system. Because of this, they have not been able to pay their electric bill timely and their old fuel loan. 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. XRERE Ky a XRe January — February — March 2008 3” Quarter FY08 - RUBA Report Accounting Comments: There has been no confirmation that the delinquent accounts have been taken care of or disconnected following policy. 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. xX 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: Confirmation was received from the IRS that the city is in compliance and have no past due tax liabilities. The city is also in compliance with state tax liabilities. 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. x kX Wk We Xl Personnel System Comments: The city has worker's compensation coverage until June 08. The city has had no turnover and continues to do well in this area. -1 mn 3- January — February — March 2008 3” Quarter FY08 - 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. KK] The policy making body enforces utility policy. Xm The utility has an adequately trained manager. The utility has an adequately trained bookkeeper. The utility has an adequately trained operator(s). The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators The utility has adopted an organizational chart that reflects the current structure. & Xl The policy making body meets as required. & The utility complies with the open meeting act for all meetings. WX Organizational Management Comments: Enforcement of utility policy, especially in the area of collections, still needs to be documented. RUBA staff will attempt to travel to Selawik once the agreement has been finalized. A work plan addressing the deficient essential and sustainable indicators will be drafted and assistance provided. 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 X The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. Xl The utility has a safety manual and holds safety meetings. 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). OJ 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. - 154 - January — February — March 2008 3 Quarter FY08 - RUBA Report Operation of Utility Comments: The system needs new hardware to resolve the violations that have them on the significant non- compliance list. This will require installation of a new recorder that records higher values. A new water treatment plant is in early stages of design. Insufficient funding for the proposed water treatment system has stopped progress for now. Inadequate operator attention combined with lack of automation and inadequate treatment capacity have resulted in the majority of their treated water quality problems. RUBA Activities For The Coming Quarter The City has signed an RUBA agreement which just sent to central office for approval. Once signed, RUBA staff expects to arrange a trip to follow up with assessment and cover issues in order for them to have a sustainable system meeting all essential criteria. January — February — March 2008 3” Quarter FY08 - RUBA Report - 156 - January — February — March 2008 3” Quarter FY08 - RUBA Report Shageluk Activity Report Community Overview Lead RUBA Staff: Flora Olrun, Bethel Office 2003 Population: 129 Region: Yukon-Kuskokwim Delta Local Governments: 2™ Class City, od Residents haul treated well water and dispose of honey or po buckets in pit privies or bunkers. Residents are Nan yet : 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 An assessment of management capacity was completed in September 2007. FY 2008 budget and finance reports through the end of February, 2008 are on file in the Bethel RUBA office. The City of Shageluk has met all of the essential capacity indicators. RUBA staff received a copy of Shageluk's worker's compensation insurance coverage that is good through 7/1/2008. They are covered by Alaska Municipal League Insurance Association, Inc. The City of Shageluk is not on the Significant Non- Compliant List as of the January 2008 report. -157- January - February — March 2008 3 Quarter FY08 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No & All revenue and expenses for the utility are listed in the utility budget. Xl The utility has adopted a balanced realistic budget. Xl Monthly financial reports are prepared and submitted to the policy making body. Xl The utility is current in paying all water/wastewater electric bills. x The utility has on hand a year’s adequate fuel supply or it has financial plan to X purchase an adequate. The utility is receiving revenues (user fees or other sources) sufficient to cover operating ex pen Ses. Sustain 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: The FY08 budget is on file. The budget includes a line item for repair and replacement costs. Monthly financial reports are current to the end of December, 2007 and are on file in the Bethel office. The format of the financial statements is as follows: annual budgeted amount for FY08, month-to-date expenditures, year-to-date expenditures and balance. Written financial reports and outline for the administrator's narrative report are placed in the meeting packets and given to the council members prior to each regularly scheduled,monthly council meeting. At the meeting, the administrator verbally updates the council on financial and other city issues. The utility is current on meeting payments for all water/wastewater and electric bills. Fuel purchased for FY08 was 10,000 gallons and has been fully paid for: The purchase brings the fuel supply to an adequate level for the utility services. Accounting Systems Essential Indicators Yes Xk KR & 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 w & & 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. - 158 - January — February — March 2008 3” Quarter FY08 - RUBA Report Accounting Comments: The City of Shageluk adopted a water and sewer ordinance in 2005 and a copy is on file in the Bethel regional office. The city is converting the manual accounting system to the QuickBooks Pro computer system. Accounts receivables are in the system but accounts payable are still done manually. For the payroll system, QuickBooks has been set up to calculate the net pay for each employee. Processing the checks and the payroll register is done manually. A sample billing copy for sewer services is on file in the Bethel regional office. The City does not have a water and sewer system to serve all residents. A draft chart of accounts has been developed but is not being used. The administrator plans to use the new chart of accounts after she completes the setup of QuickBooks Pro. The file containing the bank statements is not up to date, thus a complete reconciliation for the utility service has not been done since the new administrator came on board. A purchase order form has been developed for the utility service workers and a copy is on file with RUBA. Tax Problems Essential Indicators Yes No Xl The utility has a system to accurately calculate, track, and report payroll tax liabilities. &l 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: QuickBooks Pro calculates each employee's tax deductions. The payroll journal is kept manually and IRS quarterly reports are up to date. Copies of the last four quarterly IRS tax reports are on file in the Bethel office. The city of Shageluk was declared compliant by IRS on 8/1/07. 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. 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. 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. | 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. - 159 - January — February — March 2008 3” Quarter FY08 - RUBA Report Personnel System Comments: The personnel policy is completed but has not been adopted to date. RUBA received an updated copy of the City of Shageluk's workers' compensation insurance coverage through Alaska Municipal League Insurance Association, Inc. The city has coverage until 7/1/2008 and a copy of the insurance document is on file in the Bethel regional office. Job descriptions for the utility workers are adequate. Since the new administrator has come on board, there have been no evaluations conducted for the utility staff. Personnel folders are kept up to date with I-9s, 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 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. XNXXeXRw Organizational Management Comments: The city is enforcing utility policies with the YKHC health clinic, city office building and post office for water/sewer services. The school receives only sewer services and is billed each month. Evacuation services for the ten private homes that have privies are done on a prepaid basis. The bookkeeper position was filled in August, 2007. Both the city administrator and bookkeeper need QuickBooks Pro training. The utility worker is adequately trained and experienced. - 160- January — February — March 2008 3” Quarter FY08 - 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 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. 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. r 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. XX The utility maintains a critical spare parts list. HRRER & Operation of Utility Comments: The utility worker enrolled in Introduction to Small Water Systems Provisional level I Review and State Certification’ class September 17th through the 21st, 2007 in Fairbanks. A preventative maintenance plan is contained in chapter two of the Shageluk Operations and Maintenance Manual. A written daily log is kept each day by the utility worker; however, he needs to use the forms from the operations and maintenance manual. The operator gives a monthly verbal report to the city council each month. The 2006 annual water quality report is on file in the Bethel regional office which was prepared by Water Systems Services. The utility worker has not had any safety meetings and was not able to locate a safety manual. A letter is on file in the Bethel RUBA office from the Department of Environmental Conservation dated September 10, 2007, indicating that the City of Shageluk Water System was taken off the Significant Non-complier List (SNC) for prior stage | violations. Inventory control and critical spare parts lists are not being maintained. RUBA Activities For The Coming Quarter RUBA staff will be available if requested to assist with sustainable indicators. It is recommended that a chart of accounts is used that identifies categories in a reasonable, usable manner. Reconciliation of utility accounts needs to be completed monthly. Written personnel evaluations for the utility workers that tie the job description to the evaluations need to be completed. A safety manual needs to be located or developed and regular safety meetings held. Inventory control and critical spare parts lists need to be maintained for the utility services. The utility worker needs to use the forms from the operations and maintenance manual for his daily written logs. - 161- January — February — March 2008 3” Quarter FY08 - RUBA Report - 162 - January — February — March 2008 3" Quarter FY08 - RUBA Report —[—$S—_ — ES ees S ee eee pon Stevens Village Activity Report Community Overview Lead RUBA Staff: Jeremy Johnson, Fairbanks Office a 2003 Population: 68 Region: Interior Local Governments: IRA Council od ‘ . eee Prene, t AO Stevens Village has a small washeteria with three washers, two dryers, two showers, and two bathrooms. The washeteria was upgraded in 2002. The water plant provides service to the school and to the health clinic. Residents haul water from a watering point, and use honey buckets and outhouses for sewage disposal. Sewage from the washeteria, clinic and school is disposed of in a lagoon. The lagoon is probably filled near capacity and should be discharged. A Village Safe Water sanitation planning feasibility study was completed in 2002, but was not approved. The scope of the new feasibility study has been changed several times to include additional alternatives in an effort to try to identify options that are affordable to the community. Stevens Village had planned on constructing a new multi-use facility to include a Denali Commission funded clinic and a hygiene center with public showers and restroom facilities, but may be looking at renovating existing facilities as a more viable option. A design for a new solid waste facility has been completed. RUBA Activity This Reporting Period Aside from a meeting, early in January, between RUBA staff and the private financial company hired by Steven Village, there has been no contact. Stevens Village does not meet all essential RUBA indicators, although they have made positive progress with the creation of a preventative maintenance plan. Previous records indicate that the Stevens Village washeteria does not generate sufficient revenues on its own to meet operating expenses; it is subsidized by other funds. Although the tribal council has various program and project budgets, it does not have an overall budget that clearly identifies all its funds. The tribe has some very significant financial liabilities. It is unclear how Stevens Village will be able to pay all these liabilities, much less any annual subsidy for the water utility. RUBA does not have access to Stevens Village accounts; the tribe hired a private financial company, located in Fairbanks, to manage all financial aspects. There was no RUBA activity this quarter other than minimal phone contact with the administrative assistant and a meeting between RUBA staff and the private financial company. - 163 - January — February — March 2008 3” Quarter FY08 - RUBA Report Capacity Indicators Essential Indicators Finances Yes No x Xl be xX Kl Xl & & w All revenue and expenses for the utility are listed in the utility budget. The utility has adopted a balanced realistic budget. Monthly financial reports are prepared and submitted to the policy making body. The utility is current in paying all water/wastewater electric bills. The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. This was not in Johnny’ table. 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: Previously available financial records indicated that annual utility expenses exceed annual revenues by approximately $68,000. It is possible that improved recordkeeping will show the actual deficit to be somewhat lower. Nonetheless, the community must be able to identify the source of funding for any subsidy of the utility and must be able to confirm the availability of those funds. The community did not have an overall budget that clearly identifies all of its income and expenditures. There is some concern that the community may have significant debt. At a meeting between RUBA staff and a private financial company, it was indicated that a new budget has been drafted (Stevens Village is on the Federal fiscal year) and should be adopted in the third week of January 2008. A previously overdrawn line of credit was paid and closed, the 2005 audit was recently received, and the 2006 audit is expected in early February 2008. - 164 - January — February — March 2008 3” Quarter FY08 - RUBA Report 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 tracks 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 X A cash receipt system is in place that records incoming money and what it was for. & The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators X A chart of accounts is used that identifies categories in a reasonable, usable manner. & 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 washeteria receives income from user fees and from charges for water/sewer service to the school. The school is billed and pays on a regular basis. The washeteria has not yet had to implement a collection policy. The electric utility bills on a regular basis, and has a collection policy; the Tribe has been taking steps to actively follow it. The hiring of the private financial company has improved the financial outlook for Stevens Village. At the meeting, it was indicated that the accounting system has been streamlined and the QuickBooks system is in much better shape. The QuickBooks program tracks customer accounts and reports past due amounts, accounts payable, and payroll records. A cash receipt and cash disbursement system is in’place to record and track income and expenses. All expenditures are made by check, but some improvements may be needed. The chart of accounts identifies categories in a reasonable, usable manner but there is room for improvement. 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: According to phone contact with IRS and with the Alaska Department of Labor, Stevens Village is current on filing its deposits and reports. - 165- January — February — March 2008 - 3” Quarter FY08 - RUBA Report Personnel System Essential Indicators Yes No & 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. X 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. Xd The utility provides training opportunities to staff as needed and available. The utility has a posted workers compensation insurance policy in effect. Personnel System Comments: The tribal council has a personnel policy that was prepared by a consultant in 1999 and approved in 2001. The council is considering making changes and updating the policy. Job descriptions are not available for all employees and no evaluations have taken place in recent years. The personnel policy includes a probationary period for new hires, but not evaluations at the end of the probationary period. 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. l The utility has an adequately trained manager. Xl 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. - 166 - January — February — March 2008 3 Quarter FY08 - RUBA Report Organizational Management Comments: The tribal council is the entity that operates the utility and has taken steps to become more active in making and enforcing policy. The tribal administrator has received training from Alaska Vocational Technical Center (AVTECH), Tanana Chief's Conference (TCC) and RUBA. The administrative assistant has received QuickBooks training through the University of Alaska Fairbanks and has previous QuickBooks experience. The washeteria has not needed an ordinance to operate. A water/sewer ordinance will be needed if the utility plans to provide expanded service to customers in the future (e.g. flush/haul system or piped system). The electric utility has policies and procedures. The tribal council does not have a current organizational chart. The council meets on a regular basis, although occasionally meetings are postponed for lack of a quorum, notably during the summer months. Meetings are open to the public. Operation of Utility Essential Indicators Yes No & The utility operator(s) are actively working towards necessary certification. XK) The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators 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. KX] 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. &X] The utility maintains an inventory control list. &X] The utility maintains a critical spare parts list. XRXX WN Operation of Utility Comments: The operator has a Water Treatment OIT certificate and a Water Distribution OIT certificate, both current until 12/31/08. A written preventative maintenance plan was recently provided to RUBA staff from the remote maintenance worker. The manager receives informal reports from the operator and spot checks the washeteria facility on an informal basis. The utility has safety data sheets but a safety manual was not available. RUBA Activities For The Coming Quarter A site visit is anticipated, although none is currently scheduled. Council elections will be held in January 2008 and shortly after elections, a general meeting occurs with many different agencies attending. When the meeting is scheduled, the private financial company will be contacting RUBA staff for an invitation.--This did not happen. - 167- January -— February — March 2008 3” Quarter FY08 - RUBA Report - 168 - January — February — March 2008 3” Quarter FY08 - RUBA Report Tuluksak Activity Report Community Overview Lead RUBA Staff: Paul Chimiugak, Bethel Office 2003 Population: 466 Region: Lower Kuskokwim Local Governments: Tribal Council ad The tribal council operates the washeteria, water Meee, nom . 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 less than 7,000 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 traveled to Tuluksak in February to reassess the management of the utility services. This quarter the Tribal Council resumed operation of the water treatment plant and signed a contract with the school containing rates to charge for water provided. Previously the school had provided the water operators. The Yupiit School District has accepted responsibility for paying the electricity for the water treatment facility. In addition the school district provides approximately 3,000 gallons of heating fuel annually. The Tribal staff have requested that RUBA staff return to the community and provide on-site assistance with meeting essential indicators. The Village Safewater engineer, Alaska Energy Authority staff, and Yupik School District staff offered to assist RUBA in accommodating Tuluksak as they reorganize and accept the new responsibility of providing water to their residents. The utility manager traveled to Bethel in February to attend a RUBA sponsored utility management course. He was an active participant and shared local experiences with the class. - 169 - January — February — March 2008 3” Quarter FY08 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No & & Xd X 4 & 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 ® & & Xd 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: Tuluksak Native Community did not provide an adopted FY08 budget or monthly finance reports. Their fiscal year is January | through December 31. The Yupiit School District (YPD) has accepted responsibility for paying the electricity for the water treatment plant. They also provide approximately 3,000 gallons of heating fuel annually for the water treatment plant under a contract with the tribe which was signed on December 31, 2007. Without submission of the budget, determination that there are sufficient revenues to cover operating expenses is not possible. No written proof of manager's reports was received. The fuel situation is in question at this time, the tribal storage tanks did not pass Coast Guard review and they are a couple of months behind on the fuel loan. They do not meet the criteria of having sufficient fuel or a financial plan to purchase it. -170- January — February — March 2008 3” Quarter FY08 - RUBA 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. &] An accounts receivable system is in place which track customers and reports past due accounts and amounts. &X An accounts payable system is in place. The payroll system correctly calculates payroll and keeps records A cash receipt system is in place that records incoming money and what it was for. 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. Da AA c He ' Accounting System Comments: According to the unsigned copy of the current utility ordinance for the container haul system, the customer is to be billed monthly. The utility bookkeeper has not been billing the customers due to the postage rate and the fact that the payment of the container haul has been integrated into the Electric Power Stat prepay card system. A percentage of the delinquent haul bill is also collected with each electric prepay purchase. All revenues received and expense or purchase requests are sent to the contracted management service in Soldotna for processing. A purchasing system is followed which was shared verbally at the time of the assessment. There are no written procedures for purchasing at this time. An accounts payable report showing who they owe money to was not made available at the time of the assessment. 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. X The utility is current on filing tax reports. X The utility is current on making tax deposits. &X If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: All payroll checks and payroll tax payments are managed and kept current through the financial management firm in the Soldotna office. There was a verbal confirmation by the IRS agent that Tuluksak is in compliance as of the date of the assessment. -171- January — February — March 2008 3” Quarter FY08 - RUBA Report Personnel System Essential Indicators Yes No XJ 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. Dd 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 ww Personnel System Comments: Proof of workers compensation insurance coverage was not posted in the Tuluksak office and none was provided to the Bethel office. Tuluksak Native Community does not have a personnel policy that contains employee evaluation procedures, hiring process, etc. A personnel filing system should be set up and proper records maintained. Training is encouraged by the utility and provided as funding is available. The utility manager attended a RUBA utility management course presented in Bethel this quarter. 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 XRNRNRR & The utility has adopted an organizational chart that reflects the current structure. & The policy making body meets as required. R 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 washeteria and container 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. As a tribal council they are not required to follow the open meetings act, however they do try to follow posting and meeting requirements. January — February — March 2008 3” Quarter FY08 - RUBA Report Operation of Utility Essential Indicators Yes No Xl 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. &X 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. KX] The utility maintains an inventory control list. EK The utility maintains a critical spare parts list. XXXX w Operation of Utility Comments: The utility has two utility operators, one is certified and his certificate is hanging in the office. They have hired an accountant to help out in the utility office. In conducting a walk-through of the water treatment facility, RUBA could not find any operating and maintenance manuals, preventative maintenance check off lists, inventory control or critical spare parts lists. What RUBA did find was a daily activity log written in a notebook. RUBA staff will provide a sample copy ofa safety manual, inventory control list, and a critical spare parts list. RUBA Activities For The Coming Quarter RUBA staff will continue to monitor the monthly financial reports, request a copy of the budget to support the budget ordinance, and request an accounts payable report showing vendors. Staff will assist, if requested, with a utility ordinance that includes a collections policy, and job descriptions. -173- January — February — March 2008 3 Quarter FY08 - RUBA Report -174- January — February — March 2008 3™ Quarter FY08 - RUBA Report Ventie Activity Report Community Overview Lead RUBA Staff: Leroy Seppilu, Fairbanks Office 2003 Population: 184 Region: Interior Local Governments: Tribal Council ad Water is derived from a well near the Chandalar River, then treated and stored in a tank. The existing well has an interim permit pending determination of whether it is to be classified as groundwater or ground water under the direct influence of surface water (GWUDISW). A circulating system and septic tank system constructed in 1980 failed within two years of construction. The water transmission line froze last year, and the utility is still using 'fire hoses' on a portion of its water transmission line, until funding is available for a more permanent solution. Currently six homes and the health clinic are on a flush/haul system. A washeteria constructed in the early 1990's has 6 washers and six dryers, plus shower facilities. Electricity is provided by Venetie Village Electric. The washeteria also uses a small solar power system to provide some electricity. Construction of a new lagoon was completed in 2005, and it has been operating satisfactorily. There are plans for construction of a haul garage and for installation of 15 more water/sewer haul services. completion of a new lagoon, and water system improvements are the community's priorities. RUBA Activity This Quarter Fairbanks RUBA staff made an on-site visit to the community at the request of the tribe. RUBA staff interviewed Eddie Frank, Tribal Administrator, for the Venetie Traditional Council. The Tribal Administrator fully cooperated with RUBA and provided all the necessary documents when it was available. The Venetie Traditional Council does not meet all essential and sustainable indicators at this time. RUBA staff will offer assistance in the areas of Finances, Accounting, Organizations and Operations to correct deficient indicators. January — February — March 2008 3” Quarter FY08 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No KK] Allrevenue and expenses for the utility are listed in the utility budget. &] 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. & The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators KK] The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. XK] YTD revenues are at a level equal to or above those budgeted. KK] 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: RUBA partially reviewed the finances of the Tribe's electric utility. Currently, the Tribe does not make annual budgets for its finances. Most of the revenues are from federal grants. The Tribe's electric utility has a very high outstanding receivables from residential customers. The Tribal Administrator supplied a ball-park figure of at least $60,000, but RUBA was not able to confirm it. The tribe owns the electric utility and does not bill the other utilities run by the tribe. Fuel sales is also run by the tribe and has to be air-freighted in at a substantially high cost. Chandalar River is too shallow year-round to barge the fuel in. -176- January — February — March 2008 3" Quarter FY08 - RUBA 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. 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. 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. XRRW Accounting System Comments: As is with most traditional councils, the Tribe does not have formal written policies, including for electric, washeteria and water plant utilities. We were not able to confirm exactly how much is owed to the utility by the residential customers, although the customers are billed regularly on a monthly basis, but is in the thousands. The tribal administrator has extensive experience with payroll, payroll records and payroll taxes. Checking accounts are kept manually and monthly bank reconciliations are also done manually. 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. Xl If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The tribal administrator has managed to pay off the past due taxes owed to IRS from the past. Payroll tax reports are done manually by the tribal administrator. The IRS deems Venetie compliant at this time. -177- January — February - March 2008 3 Quarter FY08 - RUBA Report Personnel System Essential Indicators Yes No Xl The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators Xx The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. 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. 4} The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. XK) The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. X The utility provides training opportunities to staff as needed and available. Personnel System Comments: The tribe has insurance and workers compensation coverage through Tanana Chiefs Conference (TCC), Inc., and also uses TCCs personnel policies and procedures. Organizational Management Essential Indicators Yes No Xi 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. XJ The policy making body enforces utility policy. The utility has an adequately trained manager. & The utility has an adequately trained bookkeeper. X The utility has an adequately trained operator(s). &] The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators &) 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 tribe does not have utility ordinances for all their utilities they operate. The tribal administrator has very strong financial management experience but has no computer experience. The tribe needs to hire a bookkeeper to offset some of the duties and responsibilities of the tribal administrator since he is overwhelmed most of the time with work. -178 - January — February — March 2008 3” Quarter FY08 - RUBA Report ——$—$————$———— SSE een one 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. &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. 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. & The utility maintains a critical spare parts list. Operation of Utility Comments: The utility operator is scheduled to attend the next Provisional 1 (formerly OIT) training. RUBA Activities For The Coming Quarter With the RUBA assessment findings, these bullets are recommended to the tribe by RUBA staff: 'Draft comprehensive utilities budgets for the Tribe with itemized revenues and expenditures "Review revenues and expenditures to see if revenues cover the expenditures in all the utilities run by the Tribe. ‘Review and actively collect accounts receivables. ‘Inform the tribal council what is owed to the Tribe by all utilities customers 'Hire a utilities bookkeeper to work with the tribal administrator ‘Develop a comprehensive monthly financial report for the utilities ‘Obtain a computer for the tribal administrator and provide computer training 'Develop utility ordinances for all the tribally owned utilities These issues will take several months and the tribal administrator is willing to work with RUBA staff to address these issues. -179- January — February — March 2008 3" Quarter FY08 - RUBA Report - 180 - January — February — March 2008 3" Quarter FY08 - RUBA Report Non-RUBA Communities Ambler Margaret Hansen, LGS/RUBA, Kotzebue Regional Office Kotzebue RUBA/LGS traveled to Ambler and provided on-site training and assistance to the new administrator on year end tax reporting and financial management. Ambler's city clerk quit and a temporary hire received the training. Hopefully this temporary clerk will remain. With all the turnover for this city, it has been hard for them to keep up with all of the financial management procedures. Although the previous clerk was behind a couple months of financial reporting, they had kept up with recording onto the journals including the payroll which made it easier to complete the year end tax reporting training. Akiachak Ken Berlin, LGS/RUBA, Bethel Regional Office On February 7, 2008 RUBA staff traveled to Akiachak and provided onsite assistance in developing a 2008 budget and finance reports. A balanced 2008 budget was received in our office on 2/27/08. A monthly finance report for January 2008 was received on 2/28/08. Akiachak continues to meet all essential management indicators. February and March finance reports were not received as promised by the bookkeeper. Chalkyitsik Leroy Seppilu, LGS/RUBA, Fairbanks Regional Office RUBA staff assigned to the community went with the previous RUBA staff, Eileen Kozevnikoff, to work with the tribe on the Power-Cost-Equalization (PCE) reports. RUBA staff stayed in the community for two days and the LGS staff stayed an extra day to complete the Power Cost Equalization (PCE) monthly reports. The reports were completed and submitted to the Regulatory Commission of Alaska (RCA). Submittal of these reports will release PCE payments that have been with held due to non-compliance. The utility plans to use the PCE funds to purchase fuel which has to be flown in at great expense. Elim Josie Bahnke, LGS/RUBA, Nome Regional Office RUBA staff made a visit on February 6-7, 2008, to Elim to provide on-site RUBA assistance and local government training to the new City Clerk, Art Amaktoolik. Art successfully completed a 32-hour Personnel Management for Utilities workshop sponsored by RUBA in Nome on February 25-29, 2008. At the request of Mayor Ed Katongan, RUBA staff assisted with a resolution to the Legislature for capital project funding priorities to be included in the FY09 Capital budget. - 181- January — February — March 2008 3 Quarter FY08 - RUBA Report Fort Yukon Jeremy Johnson, LGS/RUBA, Fairbanks Regional Office Fairbanks RUBA staff traveled to Fort Yukon three times this quarter and determined that they do not currently meet all essential indicators. LGS/RUBA staff also maintained contact with the city manager and the city clerk via phone, fax, email, and an on-site visit responding to questions regarding budgeting, financial reporting and elections. Staff turnover continues to be an issue. This quarter an accounting clerk resigned and a new clerk was hired, the city manager was removed from office, and the maintenance director submitted his resignation, although he will continue as the water plant operator. A current city council member, Paul Shewfelt, is the acting city manager. Recruitment is ongoing. The community was selected to receive three, onsite, intensive QuickBooks trainings by a contractor which was completed March 26, 2008. Goodnews Bay Ralph Andrew, LGS/RUBA, Dillingham Regional Office RUBA traveled to Goodnews Bay during the quarter to meet with city officials on ongoing matters. During the visit RUBA met with tribal officials to share RUBA Assessment status information and to offer ongoing assistance upon request. The tribe is jointly managing the water/sewer utility with Alaska Rural Utility Collaborative (ARUC). The RUBA Assessment of Management Indicators, conducted with ARUC is presently being updated and current information will be posted shortly. The community's water-sewer project, led by the Alaska Native Tribal Health Consortium, remains underway and is said to have a completion timeframe of fall 2008. A sanitation business plan, a special sanitation grant condition, is under development by a consultant and is nearing completion. The tribe maintains an interest in improving solid waste infrastructure. Houston Melissa Taylor, LGS/RUBA, Anchorage, Office The City of Houston recently experienced a great deal of staff turnover. City council members were trying to provide coverage of office duties while the recruiting process was happening. The Acting Mayor contacted Anchorage Local Government Specialist and RUBA staff with a request for assistance. Anchorage staff made three trips to Houston this quarter to provide resources, technical assistance and managerial assistance. The reorganization will have a direct effect on the provision of health and welfare services to community residents. Kake Lawrence Blood, LGS/RUBA, Juneau Regional Office Juneau RUBA staff traveled to Kake on March 11, 2008 to provide on-site assistance with management indicators. The City of Kake recently completed several critical tasks to address deficient essential indicators and a Department of Environmental Conservation (DEC) issued notice violation. These actions included adopting an FY-08 budget, completion and distribution of their Consumer Confidence Report, focused efforts on improving the utility's collection rate, and the water utility operator successfully completed a provisional water treatment class and certification exam. The city of Kake now meets all RUBA essential management indicators. RUBA staff will assist the city in maintaining their current level of management capacity and to make improvements in other areas of utility management. RUBA staff continues to provide Kake with assistance on financial management, FY-09 budget development and other assistance as requested. January — February — March 2008 3” Quarter FY08 - RUBA Report Kipnuk Ken Berlin, LGS/RUBA, Bethel Regional Office On 2/13/08 RUBA staff traveled to Kipnuk and met with the traditional council president as well as administration and finance staff. The purpose of the trip was to assist the community with the water and sewer billing system and monthly finance reports. The existing billing system, which was set up using Excel, was converted to QuickBooks Pro. Current billings should be out by next week; billings were not done last quarter. The current monthly financial report format was reviewed and the finance staff agreed to adopt a budget vs. actual format to comply with RUBA management standards. RUBA staff discussed with the Traditional Council President the importance of correcting deficient RUBA management indicators to avoid delays in the construction of a community water and sewer project. In late February a 2008 budget and finance reports were received in the Bethel office. The budget and reports were in good format but needed a little more work. A follow up letter was send to Kipnuk with recommendations. Koyukuk Leroy Seppilu, LGS/RUBA, Fairbanks Office As a continuing effort to work with the City of Koyukuk, Fairbanks RUBA staff traveled to the city to work with the city administrator and to provide training with computer use and QuickBooks Pro. The utility currently uses QuickBooks Pro for utility billings and collections. The new electric utility clerk also attended an Alaska Energy Authority (AEA) sponsored Power Cost Equalization (PCE) report training in Anchorage. RUBA staff had encouraged the clerk to come to the training since he is very new with his job. Nunapitchuk Ken Berlin, LGS/RUBA, Bethel Regional Office RUBA staff traveled to Nunapitchuk March 28, 2008 to collect financial and operational data necessary to conduct a utility rate study. In addition to documenting the utility's revenue requirement and determining appropriate rates, the rate study data will be used in developing a water and wastewater rate setting spread sheet and guidebook, which a RUBA contractor is now working on developing. The City of Nunapitchuk delivers water to community residents and there is a watering point in the washeteria for those who prefer to haul their own water. The washeteria also offers laundry, showers, and sauna services. The city also operates a flush haul septic system. Only the school has piped water and sewer service. FY07 financial statements for the water and sewer utility (combined) and the washeteria were provided that document utility expenses and revenues for the period. Water meter data is available for only the school, so much of the water use data will have to be estimated based on billing information that documents numbers of water deliveries, loads of laundry, and showers paid. The data will be reviewed and a report written that includes recommendations for improvements to management and appropriate rates. - 183 - January — February — March 2008 3" Quarter FY08 - RUBA Report Pilot Point Ear] Gibson, LGS/RUBA, Anchorage Office Anchorage RUBA staff traveled to Pilot Point March 11-12, 2008, to assist the city manager and to attend a city council meeting. The city manager has been performing the duties of city clerk and treasurer and RUBA staff assisted her with some administrative issues and suggestions for increasing the efficiency of her office. Through her dedication to making improvements in the City's financial management, she has been able to pay off past city debts and recently made the last payment on their Bulk Fuel Bridge Loan. The city manager requested assistance with ideas to encourage public participation, as she and members of the council would like to see more community involvement. RUBA staff discussed with her the creation of a RUBA work plan to provide better service to her and the community. RUBA staff attended a city council meeting the evening of March 11, 2008, when a Mayor, Steve Kramer, was finally selected after many months of trying to get this accomplished. A vacant council seat was also filled by new Council member Diane Griechen. Overall, it was a good meeting that will continually improve now that there is a Mayor to conduct meetings to keep everything on task with the agenda. RUBA staff will continue to work with city on any problems they may have and provide assistance upon request. RUBA staff will work with the City Manager to put together a work plan that will help meet their work needs. RUBA staff traveled to Pilot Point January 7-9, 2008, to meet with City Manager and new council members. RUBA staff met with City Manager and Steve Kramer, Fuel Distributor, to discuss fuel issue. Due to the extreme cold weather, some of the fuel had jelled in the tank. Currently, there was enough fuel to hold out until the next delivery, which would be flown in. Mr. Kramer was doing an exceptional job working with fuel supply and communicating with outside agencies to get in more fuel. RUBA staff will continue to work with Pilot Point and staff upon their request for assistance. Point Hope Margaret Hansen LGS/RUBA, Kotzebue Regional Office RUBA staff traveled to Point Hope on January 16-18, 2008 to assist the new mayor, bookkeeper, and clerk with an application for a Non-NPRA capacity build grant for the North Slope Borough. Ideas for the grant request were discussed, cost estimates gathered, and a financial statement created to support the application. The Non-NPRA grant from the borough will help with debts to IRS, Xerox and an old bank loan. RUBA staff also assisted in writing job descriptions and creating a new Excel document for financial reporting. City staff and the mayor have agreed to provide financial reports to the city council each month. RUBA staff plans a return visit in April to provide training and assistance with drafting of the FY09 budget. The City of Point Hope notified RUBA staff that they had received the grant applied for with RUBA assistance in the amount of $220,000. The grant will be used for financial management programs. - 184 - January — February — March 2008 3” Quarter FY08 - RUBA Report Port Lions Tammy Helms LGS/RUBA, Anchorage Office Anchorage RUBA staff traveled with a contractor to the City of Port Lions February 6-8, 2008 to correct deficiencies in the City's current QuickBooks program, and to provide QuickBooks training to the city clerk. Changes to the current accounting system included reconfiguration of the city's chart of accounts and the water/sewer accounts were entered into memorized transactions. Assistance was also provided with the preparation of a certified financial statement for the council. RUBA has scheduled two more community visits 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. Scammon Bay Paul Chimiugak, LGS/RUBA, Bethel Regional Office Bethel staff has continued to monitor the documentation required to meet all essential indicators. Bethel RUBA staff was contacted by the city manager with a request for assistance with updating the Scammon Bay Business Plan. RUBA is available to review the plan and make comments, however, the initial work must be done by the community. Teller Josie Bahnke, LGS/RUBA, Nome Regional Office Despite Nome RUBA staff travelling to Teller three times last quarter to provide assistance with the FY 08 budget, the city council has still not adopted a budget. The Village Safe Water (VSW) engineer, Lynn Marino, and staff from the Division of Community and Regional Affairs Anchorage Office, planning section, travelled to Teller in February to discuss land use planning and future sanitation projects. This quarter, RUBA staff assisted city staff again with the FY 08 budget, provided advice with a heating oil shortage, and technical assistance with the City Special Election. Sarah Okboak, Vice Mayor and acting city clerk, successfully completed a 32-hour RUBA sponsored personnel management workshop in Nome the last week of February. Last quarter, Nome RUBA staff assisted with the completion of a funding request for a new honey bucket haul truck and learned that it was approved for funding in the amount of $114,000. The truck will be delivered to Teller in the next few months when the first barge arrives. Thorne Bay Lawrence Blood, LGS/RUBA, Juneau Regional Office Thorne Bay meets all management essential indicators and a majority of the sustainable indicators. RUBA staff also traveled to Thome Bay for the initial QuickBooks Pro accounting software installation and training. A contractor was hired by the RUBA program to provide this service to the utility department in Thome Bay. The contractor and RUBA will makes three separate trips to Thorne Bay to provide on-site training and after the third trip will draft and produce a customized QuickBooks manual for the community. Using the Division of Community and Regional Assistance (DCRA) business plan template, RUBA staff assisted Thorne Bay utility staff in drafting a business plan for the water treatment and water distribution systems. The community applied for a Village Safe Water (VSW) grant to upgrade their water treatment facility and believed that a current business plan was required. The city is also drafting a business plan for the wastewater system. January — February — March 2008 3 Quarter FY08 - RUBA Report Wales Karlin Itchoak, LGS/RUBA, Nome Regional Office Karlin Itchoak was hired by the Division or Community and Regional Affairs (DCRA) in February and will be providing RUBA assistance to the community. This quarter, Nome RUBA staff assisted Mayor Crisci with a land records search for ownership of bulk fuel tanks in Wales. The community land status map does not include a notation about ownership of the tank farm. During the search, Nome RUBA leamed that in the early 1990's Alaska Energy Authority (AEA) had a bulk fuel project in Wales. Nome RUBA referred Mayor Crisci to AEA for more information regarding this matter. During the last week of January, Village Safe Water engineer, Doug Poage, travelled to Wales to meet with the council regarding planned work for 2008. In order for projects to proceed, the City of Wales needs to meet RUBA essential management indicators. At the time of this report, the city has purchased worker's compensation insurance and is actively working to resolve other financial matters. - 186 -