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Home My WebLink AboutRural Utility Business Advisor Program RUBA Quarterly Report July 1-September 30 2008Rural Utility Business Advisor Program RUBA Quarterly Report July 1 - September 30, 2008 First Quarter FY09 WBA RURAL UTILITY BUSINESS ADVISOR RUBA Program Manager Elizabeth Manfred 550 W. 7th Ave., Suite 1770 Anchorage, AK 99501-3569 [Elizabeth's office is on the 16th floor in Suite 1640] 907-269-4556 (phone) 907-269-4563 (fax) elizabeth.manfred@alaska.gov Rural Utility Business Advisor (RUBA) Program Activity Report July 1 — September 30, 2008 Scope of Report This report summarizes activities of the Department of Commerce, Community, and Economic Development (Commerce), Division of Community & Regional Affairs, (DCRA) in regards to the Rural Utility Business Advisor (RUBA) Program. The report documents RUBA activities for the period of July 1 through September 30, 2008. This report describes the activities in two general areas. The first area is program activity not specifically associated with direct community assistance. The second part of the report is divided into RUBA and non-RUBA community reporting which describes the status and activity of specific communities. The RUBA communities have signed RUBA agreements requesting assistance and developed a work plan with RUBA staff to meet specific capacity building goals. Those communities listed as non-RUBA are communities that did not have a signed RUBA agreement; however they had requested and received staff travel and on-site assistance this quarter. Major Issues Staffing Julie Dirks accepted the LGS III position in the Anchorage office on July 7. Her primary duties will be to provide on-site assistance and training to local governments with sanitation issues and projects. Julie previously was a Tribal Administrator, City Administrator, City Clerk/Treasurer, Grants Writer, and a Community Development Specialist. These experiences bring an important history and understanding to Julie’s new position of local government specialist and utility management advisor (depending on which hat she is wearing) to the communities in the Aleutians and the road system north of Anchorage. Hazel Keezer accepted the LGS III position in Bethel. Hazel will provide managerial and technical on-site assistance to communities in the Yukon Kuskokwim region. She will also assist with training for utility management classes held in regional hubs around the state. As a former employee of the Alaska Department of Labor and Office of Children’s Services in Bethel, Hazel has extensive travel experience in the region. She will transfer her previous network of contacts and assistance to assist as local governments obtain much needed sanitation projects and learn the skills to build capacity and sustainability. RUBA Program Scope of Report Weather Issues: Weather continues to hamper RUBA staff as they travel to provide on-site technical and managerial assistance. Several of the on-site technical assistance trips were postponed or extended due to weather preventing scheduled flights. The weather has also hampered fuel deliveries to communities. These communities may be forced to have fuel delivered by air which will add additional expense to the handling charge. This additional expense will force utilities to raise rates to cover the cost of providing service. Utility Rate Studies: Several community trips were made this quarter to test run the utility rate setting guide. RUBA contracted Turnagain Press to develop an interactive Excel spreadsheet and associated guidebook for setting rural water and wastewater utility rates. One requested community trip was made to Larsen Bay to collect financial and operational data necessary. RUBA staff identified that currently revenue from utility rates pay approximately half of the operating expenses. The data provided by the utility staff was entered into the Excel spreadsheet. Rates based on estimated use by each customer were calculated by the spreadsheet; however, adjustments to the rates were necessary to create a seasonal rate structure for lodge businesses. Other minor limitations to the spreadsheet were identified and minor adjustments were made. Rates were structured several different ways and discussed with city staff, the mayor, and a council member. A report that included recommended rates and an explanation of how the proposed rates were determined was written and provided to the city. Discussions are underway with the creators of the rate setting spreadsheets to make corrections and modifications that will improve the usefulness. The spreadsheet and guidebook will be published and released next quarter. Coordination/Communication Village Safe Water (VSW): The State of Alaska, Village Safe Water program, in partnership with the US Environmental Protection Agency (EPA), the US Department of Agriculture, Rural Development (RD), The Indian Health Service (IHS) and the Alaska Native Tribal health Consortium (ANTHC) provides funding for rural sanitation projects through the state’s Capital Improvement Program (CIP), matching Alaska Native Village and Rural Alaska Village Grant funds allocated by EPA and RD respectively. It is the responsibility of the federal agencies providing funds for this program to establish and maintain internal controls to ensure that these projects are properly monitored and completed within acceptable parameters. Portions of the funding from these programs remain unused; some projects were completed under budget, while others are stalled. EPA has determined that stalled or unused funding will be reallocated and made available to active ongoing efforts or new projects. The RUBA program manager met with representatives of the above named agencies to review supplemental funding applications which included detailed cost estimates to complete items in the original scope of work, or a financial analysis of completed projects. Applications were scored according to a reallocation methodology and funds were awarded to complete both VSW and ANTHC construction projects. VSW has developed an orientation process for new project engineers that include meeting with related sanitation agency representatives and interviewing them regarding the services they provide. The RUBA program manager met with new hire VSW Engineer David Longtin to provide an overview of the program and the resources available. A community listing of assigned RUBA staff was also shared. RUBA Quarterly Report — Ist Quarter FY09 -2- RUBA Program Scope of Report Alaska Native Tribal Health Consortium (ANTHC): ANTHC Utility Business Support Specialists continue to share trip reports to communities made by the two ANTHC Utility Business Support Specialists. ANTHC hired two Utility Business Support Specialists to provide management support for communities receiving sanitation project funding from ANTHC. The Utility Business Support Specialists identify which communities are not meeting RUBA management assessment essential indicators and are unable to access project funds due to deficient indicators. They then coordinate travel with RUBA staff or travel alone to provide additional on-site management training and monitor the progress. This cooperative effort between RUBA and ANTHC has a proven benefit to rural utilities as shown by the increased assessments now meeting essential indicators. The concentrated effort of the utility management specialists for ANTHC communities also allows RUBA staff more time to assist municipalities and non-profits. RUBA staff continues to be solely responsible for conducting management assessments; however, the additional support from ANTHC in meeting criteria identified by RUBA benefits everyone. Alaska Rural Utility Collaborative (ARUC): Anchorage RUBA staff met with ARUC management to discuss renewing the RUBA grant award. ARUC is a pilot project to develop a statewide utility to offer centralized management and accounting functions to member communities. Last year RUBA provided grant funds to assist the pilot project as they recruit additional communities and become self-sustaining. ARUC has requested assistance for one more year and an additional grant is being considered when the monthly finance report formatting is changed. Monthly finance reports must list all sources of revenue and expense with a comparison to the adopted budget. A requirement of the grant is that ARUC staff provides monthly finance reports to RUBA of the seven communities they provide utility management services and to the governing bodies of each member community. Bristol Bay Area Health Corporation (BBAHC): BBAHC continues to support utility management training in their region. The director of environmental health for BBAHC established the goal of co-sponsoring and funding a minimum of three regional utility management classes per year. One of these classes was scheduled during the quarter; however, it was necessary to reschedule it due to weather. The RUBA program also has a mini-grant program to reimburse lodging and airfare for participants when BBHAC has expended their funds. Remote Maintenance Workers (RMW): RMW Doug Abbas contacted RUBA to schedule a utility management course for his region. Utility operators attending the course receive three core CEU’s which satisfy continued education requirements for state operator certification. Aleutian Pribilof Islands Association (APIA) will co-sponsor the Organizational Management for Rural Utilities that is scheduled in early December and will be held in their conference room. A class size of 15 is preferred; participants from the APIA region will be given priority registration and other regional representation may attend if space is available. RUBA Quarterly Report — Ist Quarter FY09 -3- RUBA Program Scope of Report Environmental Protection Agency (EPA): Anchorage based EPA staff lead a rural orientation trip for various federal funding agencies. They hosted a group visit to Hooper Bay, Chefornak, Fort Yukon, and Beaver. They also held a day meeting in Anchorage to discuss issues and programs that are unique to Alaska. The RUBA program manager presented highlights of the program and demonstrated how the program assists communities in increasing their sustainability. A lively question and answer period followed the presentation. Of particular interest was the QuickBooks Pro and utility management training course RUBA sponsors. Indigenous Planning Conference: Joe Sarcone, Rural Sanitation Coordinator, U.S. Environmental Protection Agency Region 10 and Nome RUBA staff co-presented at the Indigenous Planning Conference held in Anchorage this quarter. The emphasis was on exploring how and why communities should plan for final sanitation projects. The main questions asked were what type of planning contributes to capacity building and what level of indigenous input should happen in the rural planning process. Alaska Rural Water Association (ARWA): Alaska Rural Water Association (ARWA) and RUBA signed a grant agreement to provide a Utility Manager Certification for Alaska utility managers who meet education and experience criteria) The Alaska Department of Environmental Conservation, Division of Water maintains a certification program for water and wastewater operators. Other than an occupational endorsement program offered by the University of Alaska using RUBA prepared materials, there is no comparable certification program for utility managers. The RUBA program has developed and offered the training courses which will qualify participants for a utility manager certificate. ARWA has added a link to their web site and will maintain the training data base that will be available to the public. Alaska Water Wastewater Management Association (AWWMA): Juneau RUBA staff participated in a two-day Alaska Water Wastewater Management Association training conference held in Sitka. The Annual Southeast Conference provided water and wastewater professionals with an opportunity to receive continuing education units (CEU) required for maintaining their water and wastewater operator certificates. Over 50 utility managers and operators attended this year's conference. The RUBA program provided five travel scholarships to utility managers and operators that could not have attended without the financial support. Technical Assistance Providers (TAP): Juneau RUBA staff participated in a meeting with other rural sanitation professionals on July 9 to provide intensive, coordinated, and ongoing technical assistance to distressed public water systems. The TAP group consists of state, federal, and non-profit organizations working to improve and optimize public drinking water systems in Alaska. Currently there are four public water systems receiving assistance from the group; these systems include Gambell, Scammon Bay, Tununak, and Hydaburg. TAP staff do not travel to the communities and therefore lack on-site knowledge of local issues affecting the sanitation facilities. RUBA continues to share staff trip reports with the TAP staff for posting on their web site. RUBA Quarterly Report — Ist Quarter FY09 -4- RUBA Program Scope of Report The RUBA Program Manager attended the September TAP meeting and provided a brief presentation describing the RUBA program and how it accomplishes the programs missions and objectives. TAP members have requested notification of future scheduled utility management training courses to enable them to attend when possible or notify the utilities they work with and encourage participation in the training. Regulatory Commission of Alaska (RCA): RUBA staff attended a RCA hearing in July and provided comments several times since then regarding the City of Adak electric services. RCA had required the city to respond to questions regarding filings not received, electrical billing practices, accounts receivable and accounts payable for the utility and status of known safety concerns. Adak is also experiencing a fuel crisis and is unable to purchase more fuel to generate electricity which affects the water and wastewater service. These issues were not resolved as of the end of the quarter. University of Alaska Fairbanks (UAF): Anchorage RUBA staff met with Kevin Illingsworth, Interior-Aleutians Campus, University of Alaska Fairbanks (UAF), and Bill Hall, Cooperative Extension Service (CES), to discuss the Occupational Endorsement (OE) program for RUBA Utility Management classes. UAF has certified the series of six utility management courses developed and presented by RUBA staff for college credit. The meeting this quarter was to discuss performing a ‘test’ run of regularly scheduled classes (one per quarter) starting in the Fall 2009 so that in theory a person could obtain an OE within 18 months. RUBA will continue to offer classes in regional hubs off campus which may also earn college credit. UAF and RUBA prefer using RUBA staff as instructors to better control content and delivery of course materials and to keep costs lower for participants. Senate Indian Affairs Hearing: Bethel RUBA staff was invited to attend and participate in the Senate Indian Affairs Hearing held by U.S. Senator Murkowski. Presentations were made regarding the high cost of energy, transportation and fuel prices in rural Alaska and the effects on costs to provide public services. Statistics of current economic conditions and proposed solutions were presented by Alaska Federation of Natives, First Alaskans Institute, and Alaska Energy Authority. Representatives from Yukon Kuskokwim Health Corporation, the Association of Village Council Presidents and the regional housing authority also spoke to local economic conditions. The U.S. Department of the Interior and Department of Energy spoke to possible solutions to alleviate the impact of energy costs which ranged from the development of alternative energy projects, changing eligibility requirements for certain funding sources, developing an energy cooperative consisting of cities, village corporations, school districts, etc., to public relations programs to promote reduction of individual energy use. Bethel RUBA staff will share this information with utility management within the region. RUBA Quarterly Report — Ist Quarter FY09 -5- RUBA Program Scope of Report Northwest Arctic Regional Energy Summit: Kotzebue RUBA staff was invited to participate in the three-day Northwest Arctic Regional Energy Summit funded by the Northwest Alaska Leadership Team. Summit participants included representatives from NANA, Maniilaq, Northwest Arctic Borough, and the Northwest Arctic Borough School District. Break-out sessions for sub-regional groups occurred with RUBA participating in the Kotzebue group. Each group identified short and long term energy needs and the effects on infrastructure. The Kotzebue sub-group requested RUBA recruit local leaders to form a Community Emergency Task Force to work on immediate issues. Department of Environmental Conservation (DEC): Kotzebue RUBA staff responded to requests for rate setting assistance in response to a new water test requirement. RUBA staff estimated that a community within the Northwest Arctic Borough will have to pay an additional $2,600 annually to comply with the new Department of Environmental Conservation Drinking Water Program rate starting October 1. The Long Term 2 Enhanced Surface Water Treatment rule requires water systems to sample every two weeks for cryptosporidium and E. Coli concentrations and to determine whether additional treatment is required. This applies to systems using surface water and ground water under direct influence of surface water and serving less than 10,000 people. Communities will need to examine their rates to allow for the additional expense this testing requires. Rural Alaska Pilot Project (RAPP): On August 7, Anchorage RUBA staff attended the RAPP meeting at the Anchorage IRS office. Upcoming IRS Employment Tax workshop schedules for the remainder of the year were discussed. Training is scheduled for December in Anchorage and RUBA was invited to speak regarding assistance provided to communities. RUBA will also present at the Tanana Chiefs Conference workshop in Fairbanks. The IRS Indian Tribal Government Specialist stated that the Association of Village Council of Presidents (AVCP) has also expressed interest in having a tax workshop in Bethel. RUBA provides training reimbursement to staff from utilities that are experiencing tax reporting issues. Power Cost Equalization (PCE) Briefing: RUBA staff attended a PCE briefing held in Anchorage in July. The meeting was scheduled in response to legislative inquires regarding the rural utility debt issue and the relationship to the PCE program. To help prepare legislators and staff for any discussion that may arise in a special session or the next legislative session, a briefing was held regarding the PCE program and what it means to rural communities and utility service costs. Director Meera Kohler, Alaska Village Electric Cooperative, gave an informative overview of the program and answered questions from the Anchorage attendees and those connected by videoconference from Juneau and Fairbanks. Communities participating in the PCE program receive subsidy payments to electric costs. These subsidies lower operating costs for water and wastewater services. RUBA Quarterly Report — Ist Quarter FY09 -6- RUBA Program Scope of Report Alternate Energy Success Story: Evelyn Thomas, Crooked Creek Traditional Council, contacted the RUBA program manager to share her success story and thank RUBA for their contribution to that accomplishment. The Crooked Creek Traditional Council had just completed their sanitation project of recovering waste heat from the electric generators to heat the washeteria. This was accomplished five years after the construction funding was first awarded. Ms. Thomas had worked with RUBA staff to make changes to management practices for current utility services. Assistance provided and documentation received during a RUBA on-site trip this spring resulted in all essential management indicators being met which allowed grant funds to be released for the alternate energy project. The project engineer states the washeteria will not need to engage the boilers for heat unless the outside temperature drops to minus 60 degrees (which it does occasionally.) Performance Goals Staff Development: Statewide Single Audit Coordinator Colleen Campbell conducted a presentation on September 30 for interested RUBA staff members in Anchorage. The single audit presentation covered both federal and state audit guidelines and included a wealth of information on the history of the Single Audit Act, what entities are affected, audit guidelines and standards, the elements of an audit reporting package, and how to interpret an audit report. The presentation was very useful for those staff members that work with communities that rely on grant funds for capital projects and are often required to have single audits. Instructions for conducting a state single audit are contained in the State of Alaska Audit Guide and Compliance Supplement for State Single Audits. This publication can be found of the Division of Finance’s webpage. Travel to Communities On-site Management Assistance: While not formally listed as a performance standard, travel to communities is a critical component of the RUBA program. Upon invitation from communities, RUBA staff completed 49 trips to 31 communities during the first quarter of FY09. Fifteen RUBA staff spent a total of 117 days providing on-site assistance, conducting management assessments and follow-up assistance, providing guidance relating to utility rate setting, financial accounting and reporting, conducted elections training, developed utility work plans, attended a Federal Emergency Management Agency (FEMA) flood planning meeting, and assisted in the development of cooperative agreements between city, tribal, and community entities. Management Assessments and Follow-up Assistance: RUBA staff members were invited to 17 communities to complete utility management assessments this quarter. RUBA is now monitoring a total of 163 management assessments. RUBA staff requires a minimum of a monthly finance report from each of these communities and in several instances, additional documentation to assess management capacity. Thirty-one communities received on-site assistance and provided documentation to support a showing of improvement in the total score of both essential and sustainable indicators. RUBA Quarterly Report — Ist Quarter FY09 Te, RUBA Program Scope of Report Increased On-Site Assistance through use of Contractual Staff Alaska Rural Utilities Collaborative: A renewal grant was presented to and signed by the Alaska Rural Utilities Collaborative (ARUC) who took over management with plans to expand the pilot project statewide. ARUC will provide management services from a base in Anchorage. The RUBA program funds an employee for ARUC who identifies and recruits utilities statewide that 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. ARUC also provides the financial management reports to the seven communities they now assist. QuickBooks Pro Assistance: The RUBA program has contracted Turnagain Press to provide on-site installation and training for three RUBA communities per year. The contractors travel 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 conducted the first trip to the City of Houston. Additionally, Turnagain Press has provided telephone and web-based support. QuickBooks Pro is a user friendly computer software capable of handling all aspects of municipal and tribal government accounting needs. Alaska Rural Water Association: As the utility training management series added two new 32-hour courses this quarter and requests for regional training continues to grow, RUBA looked for an outside source to maintain the utility management training data base. Recognizing the positive impact management training has on the sustainability of water and wastewater utilities, RUBA proposed to encourage and recognize those utility managers, staff, and related others that wish to earn a utility management certificate. RUBA does not have sufficient staff to both provide training and maintain a data base and issue the certificates. A grant was signed to contract ARWA to develop and maintain a training data base that will document past and future RUBA training sessions. ARWA will also present a nationally recognized ARWA Utility Management Certificate to those participants who successfully complete all six RUBA utility management courses. The training data base is available to the public on the ARWA web site. Training Classes Presented Kotzebue: The RUBA Utility Clerk Training course was presented in Kotzebue during the week of July 21-25. Eleven students from Ambler, Buckland, Kiana, Kotzebue, Noorvik, Point Hope, Selewik, and Shungnak participated in the training. The Utility Clerk Training is the newest course in the series of 32-hour management courses presented by the RUBA program designed to build management capacity in rural utility staff. RUBA program staff from Kotzebue, Fairbanks, and Anchorage cosponsored this class at the request of Northwest Arctic Borough. Course topics include public relations, open meetings, office management, elections, financial management, and utility-related ordinances and resolutions. RUBA Quarterly Report — Ist Quarter FY09 -8- RUBA Program Scope of Report Thorne Bay: The Organizational Management for Rural Utilities course was presented in Thorne Bay during the week of August 11-15. Eleven students from Craig, Kake, Kasaan, Klawock, Klukwan, and Thorne Bay participated in the training. Organizational Management for Rural Utilities is one course in the 32-hour management series presented by the RUBA program designed to build management capacity in rural utility staff. RUBA program staff from Juneau and Anchorage cosponsored this class at the request of the City of Thorne Bay. Course topics included levels of service, organizational structure, utility roles, responsibilities and accountability, utility ordinances, customer agreements, communication, and administration of a utility. Scholarships for Utility Staff Training: As a result of higher expenses to provide rural utility services, many utilities were forced to cut their budgets in the area of training. RUBA has established a training mini-grant program to provide airfare and lodging reimbursements to utility staff who attend RUBA sponsored classes. This quarter, RUBA provided reimbursement to 14 students and 9 sanitation operators who attended the Utility Clerk Training, the Organizational Management for Rural Utilities, Southeast Alaska Water Wastewater Management Association, or the Rural Sanitation Utility Training in Bethel. The training funds require attendance and participation in the complete course prior to reimbursement being issued. A total of $17,045.88 was awarded to for the 23 participants. RUBA Quarterly Report — Ist Quarter FY09 +92 Legend * On Site Assistance @ UTM Training +* RUBAAssessment RUBA Program Activity Map July 1 through September 30, 2008 Point Hope a ‘ Noon ik e Anaktuvuk Pass Noatak. co a na mbler Koteebu ind sen « Shungnak Fort Yukon DéSting-s Selawik ¥ “Buckland Elim one « Manley Hot Springs Galena Emmonak ae ee oe +# Shageluk Gulkana 1, Gakona ‘as Poin He u fulkak 4 Sleetmute "Glennallen Tununak *Chiathbaluk \a@ wend eNsiccnak ‘kolianek New sin REE Ka¢hemak a A MaHORSGLD -"Nanwalek , «Port Lions Port Heiden \arsen Bay July — August — September 2008 1 Quarter FY09 - RUBA Report Table of Contents Gambell... Galena.... Glennallen... Golovin....... Hooper Bay Kachemak Selo. Kasigluk..... Koliganek Kwethluk. Kwigillingok . Larsen Bay. Nanwalek Nondalton .. Pitka’s Point .. Port Heiden Native Council . Saint Mary’s. 129 Selawik..... 135 Shageluk.. 141 Sleetmute. 147 Tuluksak..... July — August — September 2008 I Quarter FY09 - RUBA Report July — August — September 2008 1 Quarter FY09 - RUBA Report eee a ee a Keport Table of Contents Non-RUBA Communities AdaK wrccccsssersersecssssssessesesssescsssssssssnscesssssssssssessessseseseasacsseseeres 159 Akiachak........ccccceee 159 ...160 Angoon..... +160 Chuathbalu 160 ELM ...sesecsssssesecscsesesnenesssscsesecssenessenssessnenssessensssscsessssvsosssassesscseseseoesesesessesessessecacacaes 161 KASAANL...ssesssecsssesscncecescscsscncenenessneccsnssssesssesessssssnssescsnsecssausnenssesscscsesetscsesessssesesecasseses 161 Kobuk.... 161 Koyukuk ... 161 Manokotak.........ssssees +162 Manley Hot Spring: +0162 New Stuyahok............ 162 Port Lions .... July — August — September 2008 1° Quarter FY09 - RUBA Report July — August — September 2008 1" Quarter FY09 - RUBA Report OOO ees eee’ Community Activity Reports First Quarter FY09 July 1 — September 30, 2008 July — August — September 2008 1 Quarter FY09 - RUBA Report eS eee ee Akiak Activity Report Community Overview Lead RUBA Staff: Flora Olrun, Bethel Office ~ 2007 Population: 350 Region: Lower Kuskokwim ed Local Government: Unincorporated ‘\ 2 a a PP A new well, water treatment plant and storage tank were all recently completed. The school and Akiak Native community building are connected directly to the water plant. The school pays for water services on a quarterly basis to the Native Community of Akiak. Individual wells, septic systems and plumbing were installed in 14 HUD homes during 1997. The community has plans to install plumbing for 53 homes for water and sewer services. The City provides septic pumping service at least once or twice a year to some residential and commercial buildings. Most residents are dependent upon the washeteria for laundry services. Residents who haul water purchase the water with prepaid tokens from the Native Community of Akiak. The washeteria is managed by the Akiak Native Community and is located in their building. RUBA Activity This Reporting Period Akiak Native Community currently meets all essential management indicators. They submitted their 2009 budget and monthly financial statement ending August, 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. The last IRS report shows they are in compliance with filing requirements and deposits. As of August 8, 2008 the Akiak Community Water System was on the Environmental Protection Agency's Significant Noncompliance List for missed monitoring reports and may be able to return to compliance by July, 2009. The Native Community of Akiak has 36 residential, one church, and two commercial customers connected to the piped water system. July — August — September 2008 I Quarter FY09 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No RX All revenue and expenses for the utility are listed in the utility budget. X The utility has adopted a balanced realistic budget. Xl Monthly financial reports are prepared and submitted to the policy making body. & The utility is current in paying all water/wastewater electric bills. 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 NA &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 has Akiak's 2009 budget on file. Monthly financial expenditure reports are being submitted to the council based on the approved 2009 budget. The last monthly report submitted to the Bethel office is for August, 2008. The YTD revenues are above the YTD expenditures. They are current on all water/wastewater electric bills. 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. The council receives manager's reports at regularly scheduled monthly meetings, and budget amendments are passed when it is necessary. Accounting Systems Essential Indicators Yes 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. RRKK Wee Ze Ps XN July — August — September 2008 1 Quarter FY09 - RUBA Report —— —— ———— S eeS< 00 Eee port Accounting System Comments: Section 2.14 of Akiak's Water and Sewer Ordinance contains language for service billing. The community has thirty-six residential, one church, and two commercial connections to the piped water and sewer system. Customers are billed on a regular basis and collection policies are enforced. The QuickBooks program keeps all payroll, accounts payable and receivable, and cash disbursements in order. Tax Problems Essential Indicators Yes No X The utility has a system to accurately calculate, track, and report payroll tax liabilities. & The utility is current on filing tax reports. X The utility is current on making tax deposits. & If there are any past tax liabilities, a repayment agreement has been signed and Tepayments are current. Tax Problems Comments: The IRS and DOL deem Akiak compliant at this time and there are no recorded notices of federal tax liens against the Native Community of Akiak as of September 22, 2008. 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. 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. The utility provides training opportunities to staff as needed and available. kX & WR -9- July — August — September 2008 1° Quarter FY09 - RUBA Report Personnel System Comments: Worker's compensation is current and posted. The insurance is provided by Liberty Northwest and is valid through 1/12/2009. The Native Community of Akiak has a personnel policy which was completed by a consultant in 2003. Evaluations are informal using the personnel policy as a parameter. The evaluations should comply with the policy and be documented in each individual staff personnel file. All training certificates are placed in staff files. The Executive Director provides adequate opportunities for staff to attend training sessions. The personnel files are up to date and contain I-9's and letters of acceptance. 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 XXRXRRR xX 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. Organizational Management Comments: The Bethel regional office has a copy of Akiak's approved water and sewer ordinance. The Akiak Native Community owns and operates the water service. The Executive Director and the bookkeeper for the Akiak Native Community are experienced and competent. The water service has an adequately trained operator who has Level 1 Water Treatment and Water Distribution certification. Akiak Native Community meets once a month and posts the agenda for each meeting where the public has access to the information. The Akiak Native Community is not required to comply with the Open Meetings Act, however, they voluntarily comply with it. -10- July — August — September 2008 1" Quarter FY09 - RUBA Report Operation of Utility Essential Indicators Yes No Xi The utility operator(s) are actively working towards necessary certification. XJ 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 z checks” the facilities to see that the maintenance items are being completed. ® The utility has a safety manual and holds safety meetings. X The utility is operating at the level of service that was proposed. Xi The operator provides status reports to the manager on a routine basis. X The utility has completed and distributed its Consumer Confidence Report (CCR). XX] The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. 1 The utility maintains a critical spare parts list. Operation of Utility Comments: The preventative maintenance plan is on file in the Bethel regional office. Documentation reflecting a weekly written status report by the operator to the Executive Director is on file. The last Consumer Confidence Report was dated 6/28/07. The utility is currently on the significant noncompliance list. RUBA Activities For The Coming Quarter Akiak Native Community currently meets all of the essential capacity indicators. RUBA staff will continue to work with the Akiak Native Community staff on sustainable indicators. -1l- July — August — September 2008 1° Quarter FY09 - RUBA Report — OOO EE ree pore Alakanuk Activity Report Community Overview Lead RUBA Staff: Hazel Keezer, Bethel Office a 2007 Population: 681 Region: Lower Yukon ed Local Government: 2™ Class City ‘ v, 2 pe The City of Alakanuk operates the piped water and went 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 The City of Alakanuk currently does not meet all RUBA essential management indicators. The city has been without a clerk and bookkeeper. The city's administrator is filling in for those positions until they can be filled. This has effected the city's ability to meet all essential indicators. ~13- July — August — September 2008 1° Quarter FY09 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No & All revenue and expenses for the utility are listed in the utility budget. &] The utility has adopted a balanced realistic budget. &] Monthly financial reports are prepared and submitted to the policy making body. XxX The utility is current in paying all water/wastewater electric bills. & The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. X The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators XX] The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. & YTD revenues are at a level equal to or above those budgeted. {J YTD expenditures are at a level equal to or below those budgeted. x A monthly manager’s report is prepared. XX] Budget amendments are completed and adopted as necessary. Finances Comments: The budget for FY09 has not been adopted. The FY 09 water and sewer was the only detailed budget form completed. Monthly financial reports are current only to May 2008. The city is current on paying all water/wastewater bills to Alaska Village Electric Cooperative. A fuel purchase of 8,000 gallons made recently and an additional 10,000 gallons of fuel in the city holding tanks are reportedly adequate for the winter. The monthly manager's report is given verbally to the council. -14- July — August — September 2008 1 Quarter FY09 - RUBA Report 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. XX 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. MXN c XR Accounting System Comments: The city utility ordinance was effective as of March of 2008. The grace period is 45 days for utility bills. An accounts payable system is not currently in place due to a vacant bookkeeper position. A manual ledger is being used for accounts receivable to track utility payments. Tax Problems Essential Indicators Yes No & The utility has a system to accurately calculate, track, and report payroll tax liabilities. Xx The utility is current on filing tax reports. The utility is current on making tax deposits. & Ifthere are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The IRS deemed the taxpayer in compliance currently with federal employment tax deposits and reports; however, there is a Notice of Federal Tax Lien filed for 2004 2nd qtr and 2007 4th qtr. July — August — September 2008 1 Quarter FY09 - RUBA Report Personnel System Essential Indicators Yes No . &l The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators & xX We Rw 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. 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. Job openings are posted in at least three public places. The probationary period is three months from the date of appointment. The administrator provides on the job training for new employees and other training is given if funding is available. 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 is 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 RWOkKWHN No & The entity that owns the utility is known and the entity that will operate the utility is set. The policy making body is active in policy making of the utility. The policy making body enforces utility policy. The utility has an adequately trained manager. The utility has an adequately trained bookkeeper. The utility has an adequately trained operator(s). The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators w ® W The utility has adopted an organizational chart that reflects the current structure. The policy making body meets as required. The utility complies with the “Open Meetings Act” for all meetings. - 16- July — August — September 2008 1 Quarter FY09 - RUBA Report ESSE AOE Organizational Management Comments: The City of Alakanuk is known to manage the utility. The city council meets regularly once a month. The bookkeeper position has been vacant and the position had not been advertised during the time of this assessment. The administrator is currently filling the duties of the bookkeeper. The administrator has held his position for 16 months and has received utility management, block grant, and QuickBooks training. The water operator has Water Distribution | and Water Treatment | certifications. 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 unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Consumer Confidence Report (CCR). &) The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. X KRORXKRX ke Operation of Utility Comments: The City of Alakanuk currently operates a Water Treatment 2 system, a Water Distribution 2 system, and a Wastewater Collection | system. They have three part-time operators who are all working toward varying degrees of certification. The lead operator was an operator for 24+ years but allowed his certification to lapse. He will retake the test in Bethel in October. The Alakanuk system is on the Significant Non-Compliance list for Stage 1 and Surface Water violations. RUBA Activities For The Coming Quarter RUBA staff will monitor the utility and provide assistance when requested. -17- July — August — September 2008 I Quarter FY09 - RUBA Report -18- July — August — September 2008 1“ Quarter FY09 - RUBA Report SO A Report Atmautluak Activity Report Community Overview Lead RUBA Staff: Ken Berlin, Bethel Office ~ 2007 Population: 304 Region: Lower Kuskokwim ed Local Government: Traditional Council “3 ‘ 7 hee a, PP Residents haul treated well water, or water from the aot Pitmiktakik River. Honeybuckets are hauled by residents to sewage bunkers. None of the homes has plumbing. The school is connected to the water plant. Funds have been requested to conduct a master plan for future infrastructure development, and to construct. RUBA Activity This Reporting Period RUBA staff traveled to Atmautluak on June 2, 2008 and conducted a RUBA assessment of management indicators with administration and finance staff of the Atmautluak Traditional Council. The Traditional Council operates a washeteria/water treatment plant and a honeybucket/bin haul system for septic waste. The washeteria was not operating this spring due to a frozen wastewater line to the sewage lagoon but re-opened after the weather warmed up. This has been a problem every winter. The Traditional Council has hired a contractor/consultant to do the bookkeeping and currently meets about half of the RUBA essential management indicators. RUBA assistance has been requested in correcting the deficient essential indicators. In June 2008 RUBA staff received the 2008 budget along with finance reports through May. RUBA has not received reports for June through September. -19- July — August — September 2008 1 Quarter FY09 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No Ri 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. Xx The utility is current in paying all water/wastewater electric bills. x The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. X The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators XX] The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. YTD revenues are at a level equal to or above those budgeted. YTD expenditures are at a level equal to or below those budgeted. & A monthly manager’s report is prepared. X Budget amendments are completed and adopted as necessary. Finances Comments: The honey bucket container haul system, and washeteria/water treatment plant (WTP) are subsidized through gaming and sales tax revenue. The washeteria/water treatment plant gets fuel in exchange for water and sewer service from the Lower Kuskokwim School District. The WTP is getting free electricity from the tribally owned electric utility. The 2008 budget and finance reports for January through May 2008 are on file. Accounting Systems Essential Indicators Yes No KX) The utility has adopted a collection policy and actively follows it. & The utility bills customers on a regular basis. Xl An accounts receivable system is in place which track customers and reports past due accounts and amounts. X An accounts payable system is in place. The payroll system correctly calculates payroll and keeps records X A cash receipt system is in place that records incoming money and what it was for. & The utility has a cash disbursement system that records how money was spent. Sustainable Indicators Xl A chart of accounts is used that identifies categories in a reasonable, usable manner. &] Monthly bank reconciliation’s have been completed for all utility accounts. ® The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. -20- July — August — September 2008 1 Quarter FY09 - RUBA Report a em) wa Pore Accounting System Comments: The utilities are subsidized through sales tax and gaming. Accounting is done with QuickBooks Pro. ATC charges $30 per month for honey bucket haul but the collection rate is very low due to the high cost of other basic needs of residents. The collection policy is enforced as much as possible but the tribe is not aggressive in this area. Tax Problems Essential Indicators Yes No X The utility has a system to accurately calculate, track, and report payroll tax liabilities. KX] The utility is current on filing tax reports. The utility is current on making tax deposits. KX] If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: 941 Ist quarterly report was filed but payroll taxes were not fully paid. State DOL/ESC Ist quarterly report has not been filed nor paid. Payroll tax deposits have not been paid since mid March. The tribe is working with the IRS on these problems. Personnel System Essential Indicators Yes No XI The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators xX The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. X The utility has adequate written job descriptions for all positions. XX The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. 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. &% ww Personnel System Comments: The Tribe has not sent RUBA a copy of their insurance certificate. The personnel policy is being amended. A personnel evaluation form is completed and annual evaluations will be conducted for each employee annually starting this year. =915 July — August — September 2008 1° Quarter FY09 - RUBA Report Organizational Management Essential Indicators Yes No X The entity that owns the utility is known and the entity that will operate the utility is set. &] The policy making body is active in policy making of the utility. KK] The policy making body enforces utility policy. & The utility has an adequately trained manager. xX The utility has an adequately trained bookkeeper. Xl The utility has an adequately trained operator(s). RX 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. XxX The utility complies with the “Open Meetings Act” for all meetings. Organizational Management Comments: ATC administrator has experience and is competent. The bookkeeper has been on the job training since last fall and appears to have a good understanding of the QuickBooks Pro system. Also ATC administration and finance works closely with a consultant who travels to the village about every quarter. ATC adopted policies for the utility services. The collection policy is not enforced aggressively due to the economic hardships being experienced by residents due to the high cost of other basic needs. Ordinances (or rules and regulations) necessary to give the utility authority to operate are adopted. Operation of Utility Essential Indicators Yes No 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. The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Consumer Confidence Report (CCR). KX] The utility is not on the Significant Non-Compliance (SNC) list. x The utility maintains an inventory control list. X The utility maintains a critical spare parts list. Kk WH Operation of Utility Comments: The SNC list shows violations in Stage 1 and Arsenic testing for the utility. July — August — September 2008 I" Quarter FY09 - RUBA Report ———— EOE EE RUD A Report RUBA Activities For The Coming Quarter RUBA recommends the ATC manager attend a RUBA Utility Management Training session and forward to RUBA copies of finance reports each and every month. RUBA staff will assist with IRS problems if requested. The utility needs to send in samples for Stage 1 and Arsenic testing to comply with water quality regulations. -23- July — August — September 2008 I Quarter FY09 - RUBA Report -24- July — August — September 2008 1 Quarter FY09 - RUBA Report Emmonak Activity Report Community Overview Lead RUBA Staff: Hazel Keezer, Bethel Regional Office 2007 Population: 796 ~ Region: Yukon-Kuskokwim Delta Local Governments: 2™ Class City ad The City of Emmonak owns and operates the piped “A ~ water/sewer system. The City also owns and operates Mitt 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 members traveled to Emmonak this quarter to conduct a RUBA assessment of management capacity. At the time of the assessment, Councilmember Walter Kloepfer was acting as the city manager. Since the assessment, the City has offered the city manager position to Leon Kiana and he accepted. City Treasurer Antonia Kameroff assisted RUBA staff in answering the financial and accounting assessment questions and provided copies of the current budget, which has yet to be adopted. The City of Emmonak has a large staff that appears well organized and capable of managing its utilities and other enterprises. Most essential management capacity indicators are currently being met with the exception of the budget, which is to go before the council at the next meeting, and current financial reports. July — August — September 2008 1° Quarter FY09 - RUBA Report Capacity Indicators Finances Yes No XX Allrevenue 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. Xx Xl The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. KI The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. &X The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. {& YTD revenues are at a level equal to or above those budgeted. & YTD expenditures are at a level equal to or below those budgeted. X A monthly manager’s report is prepared. XX] Budget amendments are completed and adopted as necessary. Finances Comments: The budget for FY09 has not been adopted by the city council and monthly financial reports are not currently being prepared and submitted to the council. The City is current paying all water utility electric bills to Alaska Village Electric Cooperative. A fuel purchase of 8,111 gallons was made recently and the utility has a plan for purchasing an adequate fuel supply. At the regular city council meeting held on July 24, 2008, a written manager's report was provided to the council. Accounting Systems Essential Indicators Yes No Wd The utility has adopted a collection policy and actively follows it. &X The utility bills customers on a regular basis. Xl An accounts receivable system is in place which track customers and reports past due accounts and amounts. X An accounts payable system is in place. & The payroll system correctly calculates payroll and keeps records ® A cash receipt system is in place that records incoming money and what it was for. Xl 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. HRI - 26 - July — August — September 2008 1“ Quarter FY09 - RUBA Report eee EE AUDA Report Accounting System Comments: The City of Emmonak is enforcing a collection policy. There is grace period of 30 days before disconnection of services, unless a payment plan is arranged. The treasurer reported that they have been also able to collect on past due accounts by collecting money from customers that are participating in Bingo. QuickBooks is used for payroll, accounts receivable, accounts payable and utility billing. Excel is also used to track customers past due accounts and amounts. A copy of a purchase order was provided to RUBA. Purchase orders require written approval and include who is requesting the purchase, the department, account, and unit price. Tax Problems Essential Indicators Yes No & The utility has a system to accurately calculate, track, and report payroll tax liabilities. &X The utility is current on filing tax reports. 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: IRS reported on September 23, 2008 that the City is compliant with filing and deposit requirements. There is no record of tax liens for the City. The Alaska Department of Labor reported that the City is current with State ESC tax requirements. Personnel System Essential Indicators Yes No & 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. 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. 2 2 We we ‘ew! -27- July — August — September 2008 1 Quarter FY09 - RUBA Report Personnel System Comments: Umialik Insurance Co. provides insurance coverage effective 2/08 to 2/09. The City has an adopted personnel policy that includes sections for hiring, evaluation, and probation. Vacant positions are posted until filled. The City of Emmonak provides maximum employment opportunity to Emmonak residents. New hires are on a probationary period for three months and performance evaluations are done by the city council or the city manager. The city council screens and hires applicants for the positions of police chief, city clerk, city treasurer, and city attorney. Organizational Management Essential Indicators Yes No X The entity that owns the utility is known and the entity that will operate the utility is set. Xx The policy making body is active in policy making of the utility. Xl 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). Xl 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. X The policy making body meets as required. xl The utility complies with the open meeting act for all meetings. Organizational Management Comments: The City of Emmonak is known as the provider for water and sewer services and has adopted an ordinance that authorizes it to operate the utility. Meeting minutes for May and July have been received by RUBA. The June meeting was a special city council meeting and there is no record of the council meeting for August of 2008. The last known meeting was held on September 11, 2008. -28- July — August — September 2008 1 Quarter FY09 - RUBA Report a a a an ann a OTE Operation of Utility Essential Indicators Yes No X The utility operator(s) are actively working towards necessary certification. 4] The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. & = The utility has a safety manual and holds safety meetings. X Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. xX) The utility is operating at the level of service that was proposed. X The operator provides status reports to the manager on a routine basis. &X The utility has completed and distributed its Community Confidence Report (CCR). & = The utility is not on the Significant Non-Compliance (SNC) list. & The utility maintains an inventory control list. & = The utility maintains a critical spare parts list. Operation of Utility Comments: The utility is listed on the Significant Non-Compliance list for stage 1 violations. Monthly operator reports are not being submitted with sufficient data or in a timely manner despite repeated compliance actions. A water and sewer operational manual was provided to RUBA, which outlined daily and monthly system routines including weekly safety meetings. The water operator currently holds Water Distribution 2, Wastewater Treatment 1, and Wastewater Collection | certificates. RUBA Activities for the Coming Quarter: RUBA staff is available to provide assistance with any management capacity indicators that are not being met. -29- July — August — September 2008 1“ Quarter FY09 - RUBA Report -30- July — August — September 2008 1" Quarter FY09 - RUBA Report Gambell Activity Report Community Overview Lead RUBA Staff: Josie Bahnke, Nome Office 2007 Population: 662 . 44 Region: Bering Straits Local Government: 2" Class City od Water is derived from a shallow aquifer at the base of Sivuokuk Mountain, and is treated and stored in three \ Ngee, oe P 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 In partnership with Village Safe Water, the City is constructing a large water storage tank during this summer. Water treatment efforts are currently focused on corrosion control which are being implemented at this time. A new operator was hired this quarter and completed the Introduction to Small Water Systems training on August 25-29, 2008 in Nome. Nome RUBA staff provided an update during a Technical Assistance Providers Group meeting on September 25, 2008 via teleconference. 3 ice July — August — September 2008 1" Quarter FY09 - 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. X Monthly financial reports are prepared and submitted to the policy making body. RX The utility is current in paying all water/wastewater electric bills. & The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. & The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators x The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. YTD revenues are at a level equal to or above those budgeted. YTD expenditures are at a level equal to or below those budgeted. A monthly manager’s report is prepared. &X] Budget amendments are completed and adopted as necessary. RRR Finances Comments: The City Council adopted a FY09 budget on May 26, 2008. Monthly financial reports are being prepared by the utility clerk and submitted to the council. With the help of Revenue Sharing and Payment in Lieu of Taxes, the City and utility are able to provide adequate resources to operate and maintain water and sewer infrastructure. According to the utility clerk, a budget amendment will be necessary in upcoming months to adequately reflect current spending priorities. Accounting Systems Essential Indicators Yes No x The utility has adopted a collection policy and actively follows it. Xl The utility bills customers on a regular basis. x An accounts receivable system is in place which track customers and reports past due accounts and amounts. 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. Xl The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators xX A chart of accounts is used that identifies categories in a reasonable, usable manner. ® Monthly bank reconciliation’s have been completed for all utility accounts. X The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. Accounting System Comments: The 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 manual NEBS cash receipt system is also used for accounts receivable and an Economic Register is used for manually tracking expenditures. -32- July — August — September 2008 1 Quarter FY09 - RUBA Report —_— ee A Report Tax Problems Essential Indicators Yes No X The utility has a system to accurately calculate, track, and report payroll tax liabilities. X The utility is current on filing tax reports. The utility is current on making tax deposits. Xi 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) and State Department of Labor, Employment Security Division this quarter. 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. 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. &X The utility provides training opportunities to staff as needed and available. Xe Personnel System Comments: Gambell Water and Sewer is insured by the Alaska Municipal League-Joint Insurance Association (AML-JIA) for fiscal year 2009. The council paid all of the insurance bill with their 2009 Revenue Sharing payment. -33- July — August — September 2008 1 Quarter FY09 - RUBA Report Organizational Management Essential Indicators Yes No 4 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 X The policy making body meets as required. X The utility complies with the open meeting act for all meetings. XRRRRH 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 utility board is meeting regularly during construction season and the Mayor provides supervision to all city and utility staff. Operation of Utility Essential Indicators Yes No & 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). EI 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. XWORRR & 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 2007 Consumer Confidence Report (CCR) was completed with the assistance of Norton Sound Health Corporation. Gambell water system is on the SNC list currently for Stage | 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. -34- July — August — September 2008 1 Quarter FY09 - RUBA Report eee A Report RUBA Activities For The Coming Quarter Nome RUBA staff will travel to Gambell this quarter to provide on-site assistance to the utility clerk and verify financial status. To the extent possible, RUBA staff will continue participation with the Technical Assistance Providers Group via teleconference. July — August — September 2008 1° Quarter FY09 - RUBA Report — Ne eee eport Galena Activity Report Community Overview Lead RUBA Staff: Jeremy Johnson, Fairbanks Office 2007 Population: 610 Region: Interior Local Government: 1* Class City Water is derived from wells and is treated. Twenty- eight residences and the school are connected to a piped water and sewer system. There are 110 households that use a flush/haul system, 20 households use honeybuckets, and others have individual septic tanks. Construction of a water treatment system and storage tank are underway. An additional 70 homes are being added to the piped water system. Refuse collection and landfill service are provided by the City. The City began operating the landfill, located on the former Campion AFS grounds, in 1997. Improvements are complete. There is a 200,000 gallon reservoir and a community leach field. RUBA Activity This Reporting Period The newly hired city clerk traveled to Fairbanks for three days of training with DCRA/RUBA staff. On two separate occasions she has provided the city meeting minutes to this department for review prior to submission to the city council. As elections approach, she has submitted a sample ballot and asked for clarification on election ordinances. On July 28-29, 2008, RUBA staff met with Galena city staff to complete a RUBA assessment of management capacity indicators. City staff provided documentation supporting the conclusions in this report. Specific documents used in this report are on file in the Fairbanks regional office. -37- July — August — September 2008 I Quarter FY09 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No X All revenue and expenses for the utility are listed in the utility budget. 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. ® 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. & 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. XK A monthly manager’s report is prepared. X Budget amendments are completed and adopted as necessary. Finances Comments: RUBA staff visited Galena at the end of July 2008. A copy of the FY 09 budget was reviewed; all revenue and expenses are listed in the utility budget, it is balanced and the public works utility portion of the budget is subsidized with a $155,700 transfer from the general fund. Public works includes hauled and piped water, solid waste (trash), sewer haul, and city equipment rental. The electric utility portion of the budget is also balanced based upon $406,508 income from one of three options: electricity rate increase, general fund transfer, or using fuel from the closed Air Force base that the City is assuming ownership of on October 1, 2008. While user fees for either utility are not adequate to cover expenses, there are sufficient sources of revenue and options to subsidize the utilities. The City has bulk fuel tanks and Crowley maintains a distribution center in town. There is adequate fuel to heat the city buildings and for generating electricity. City buildings have boilers but they are used only at times of peak demand (coldest portions of winter) because the heat generated from the electric plant is piped to the surrounding buildings. The water plant operator provides daily verbal reports to the city manager and the city manager is directly in charge of the electric plant and communicates daily with the staff. The city manager provides detailed reports to the city council at the regular meetings; these reports (approximately four pages) are incorporated into the council meeting minutes. -38- July — August — September 2008 1" Quarter FY09 - RUBA Report —— eee EE ROD A 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. Kee XR XI Sustainable Indicators X A chart of accounts is used that identifies categories in a reasonable, usable manner. &X Monthly bank reconciliation’s have been completed for all utility accounts. X The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. Accounting System Comments: The City of Galena uses QuickBooks Enterprise Solutions for all of its financial and accounting needs. The accounting staff consists of three staff persons, an A/R clerk, A/P clerk, and a finance director. A collection policy is in city ordinance and states that all city services will be discontinued until payment is made. This appears to be very effective, as the collection rate is quite high. There are a number of customers with a very nominal balance owed ($1-$40) that appear to pay every other month. The collection rate is 84%, but if customers with balances less than $50 are excluded, (doing so would provide a more accurate picture because customers with small balances owed do pay as opposed to those with recurring delinquent accounts) then the collection rate is averaged at 95%. According to the Accounts Payable Aging Summary report for FY 08 the City has some large outstanding bills. For the periods: 1-30 days $38,000; 31-60 days $107,000; 61-90 days $3,000: and greater than 90 days $395,000 (amounts are all rounded). If any general statement were to be made based on the report, it would be that the total amounts owed are to only a few entities and that the City is not delinquent to a great number of suppliers. It should be noted that RUBA staff has limited access to financial reports and cannot make any conclusions other than those based on the reports provided. Galena uses QuickBooks Enterprise Solutions, which is not compatible with QuickBooks Pro, so further research is not possible. As is standard with all QuickBooks products, an adequate system is in place for tracking, recording, and reporting transactions. A wire bound receipt book is used for all customer payments and the receipt is given to the customer while they are in the office. The receipt book is used to enter payments against the customer balance into QuickBooks; this is a daily occurrence. Day-to-day purchase requests go though a chain of command up to the city manager and finance director who has control of city credit cards. RUBA staff does not know if every purchase is compared to the budget prior to approval. For large purchases, approval of the city council is required and council revenue tracking is done with monthly financial reports. At the time of the RUBA assessment, the main bank account was last reconciled on April 30, 2008; city staff told RUBA staff that the contracted CPA will be making monthly visits and reconciliation will be one of his duties. This report will be updated when documentation of this task being completed is received. -39- July — August — September 2008 1° Quarter FY09 - RUBA Report Tax Problems Essential Indicators Yes No X The utility has a system to accurately calculate, track, and report payroll tax liabilities. &] The utility is current on filing tax reports. The utility is current on making tax deposits. XX] If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The City of Galena owes both State of Alaska Department of Labor taxes and Federal taxes. The Department of Labor states that all reports are posted except for the 2nd quarter 2008; it was due July 31 and at the time of this report, has not been received. A large balance is due from the 3rd quarter 2006 to Ist quarter 2008 and that the last payment was made in April 2008. Currently, there is no repayment contract in place but based on a conversation between the City and DOL, an electronic funds transfer for partial payment would be established. The DOL agent suggested to RUBA staff that a formal deferred payment plan would help protect Galena from bank levies. The IRS reported that the Ist and 2nd quarter 2008 taxes have been paid. For the 3rd and 4th quarters of 2007, there are ‘failure to deposit’ penalties. The IRS agent offered two options, the first is to pay the amount and the second is to write a letter asking for an abatement of penalty. That request does not guarantee that abatement will occur, but as the request does not need to be lengthy, it is worth the time. RUBA staff can assist in reviewing the letter prior to submittal. A large balance is owed from the 4th quarter 2005. Currently, Galena is in automated collections from the IRS. This is either automated phone calls or emails attempting to collect the back taxes; automated collections is the last step prior to a visit from a field representative dispatched to the location to determine assets and seize property. To resolve the issue, Galena would have to audit 2005 actual wages paid and taxes; if the W2s are correct then the amount owed stands. If, after the audit, it was discovered that the W2s were incorrect, then the actual amount should be reported to the IRS for resolution. Personnel System Essential Indicators Yes No X The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators &l 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. 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. ® The utility provides training opportunities to staff as needed and available. - 40 - July — August — September 2008 1" Quarter FY09 - RUBA Report eS ee port Personnel System Comments: Workers compensation insurance is through Alaska Municipal League-Joint Insurance Association and is in effect until July 2009. The personnel policy and procedure manual is comprehensive; a copy is provided to each new hire with a signature page that acknowledges receipt which is filed in their personnel folder. RUBA staff has copies of job descriptions for city positions and the annual evaluations are based on the position description. RUBA staff and city staff were not able to locate a specific written hiring process. The standard process is that a vacancy notice is posted in town at four locations and the notice is read on the local public radio station for ten days. Applicants fill out the application; if there is more than one applicant, a list of interview questions is created for the interviewer. RUBA staff was told that the City follows the school district format; RUBA does not have a copy or any knowledge of the school district format. Galena Personnel Policies and Procedures Title 15 (15.10.430 (A) (1)) states that there are to be two separate personnel files for each employee, one public and one confidential. Between the two files, all necessary documents are retained. Included in the confidential files are evaluations, which are done after the six-month probationary period. New hires are provided with orientation and job-training, to the extent needed for the position. For example, the recently hired city clerk was in Fairbanks for computer classes and approximately three days of intensive training with RUBA staff. Organizational Management Essential Indicators Yes No Xl 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. Xi 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 KK] The utility has adopted an organizational chart that reflects the current structure. & The policy making body meets as required. Xl The utility complies with the open meeting act for all meetings. Organizational Management Comments: The City is the owner of the water and electrical plants and city employees operate the utility. A new employee is scheduled to start in the water plant after the formal Air Force Base transfer on October 1; the employee currently maintains the water system to support the base. The city council is the policy making body and the city manager directs the day-to-day management and enforcement. Galena code title 13 establishes the authority for operations. An adopted organizational chart is not used but when asked by RUBA staff, the city manager was able to draw one up by hand. To satisfy this indicator, the organizational chart would need to be approved by the city council. -41- July — August — September 2008 1 Quarter FY09 - RUBA Report Operation of Utility Essential Indicators Yes No &X The utility operator(s) are actively working towards necessary certification. xX The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). KI The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. Xl MHORRK WX Operation of Utility Comments: The current water operator has a level 2 water treatment certificate and the October | Base transfer employee has a water treatment level 2 and a water distribution level 1. As stated previously, the city manager makes routine visits to the plant and the water operator talks with the city manager daily. The water plant employee attends weekly safety meetings at the power plant. There has not been any major outage in the level of service and it is operating at the level proposed. RUBA staff has on hand a copy of the recent CCR and a list of inventory and spare parts. The utility is on the SNC list for stage 1 violations during the first quarter of 2008; return to compliance will occur December 2008 if no other violations happen. RUBA Activities For The Coming Quarter RUBA staff will monitor and assist as needed by phone, email, and in-person contact as requested. July — August — September 2008 1 Quarter FY09 - RUBA Report Glennallen Activity Report Community Overview Lead RUBA Staff: Julie Dirks, Anchorage Office 2007 Population: 589 Region: Copper River Local Government: Unincorporated od All year-round homes are fully plumbed. Although most residents have private wells in the Glennallen area, the water is often of poor quality. Glennallen Heights utilizes two wells to serve a piped system, and a local private business delivers water by truck to fill home water tanks. The majority of downtown is connected to a piped sewage system operated by the Glennallen Improvement Corp. The sewage system serves 52 homes and businesses, and is being expanded to the Alaska Bible College and the Glennallen Heights subdivision. Most residences have identified septic tank systems but permafrost and high water tables cause drainage failures. Refuse collection services and the Class 2 permitted landfill are operated by Copper Basin Sanitation in Glennallen. Copper Valley Electric purchases power from the state-owned Solomon Gulch Hydro Facility and owns diesel plants in Glennallen and Valdez. RUBA Activity This Reporting Period The last assessment was conducted on August 28, 2007. A trip was made to Glennallen on September 29-30, 2008. Current documentation was obtained from the Glennallen Improvement Corporation to up- date the RUBA assessment. The corporation manager reports that the project is nearly complete with 73 service connections being made to-date over a distance of about 3 miles along the main road in Glennallen. There is still manhole work in progress and some punch list items need to be taken care of. The Glennallen Improvement Corporation has completed a feasibility study for installing a water distribution system that will be presented to the public for consideration. -43- July — August — September 2008 1 Quarter FY09 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No x All revenue and expenses for the utility are listed in the utility budget. XJ 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 EK] 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. Xl 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 only function of the Glennallen Improvement Corporation is the utility service. Current financial statements provided indicate that there is enough revenue coming in to cover operations but it appears there is nothing being set aside for repair and replacement. The budget report was in a non-standard format with the amount of revenue (Collections) being entered as a positive number and the expenditures being subtracted from the revenue. Year to date revenues and expenditures are available on a separate report. Accounting Systems Essential Indicators Yes No bd 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. Xm HMR e o WRN -44- July — August — September 2008 1" Quarter FY09 - RUBA Report Accounting System Comments: A review of the A/R report dated 9/1/08 indicates that A/R totaled $14,737. Half of the A/R is more than 90 days past due. This represents 19% of the total budgeted $77,305 for 2008. The majority of these past due amounts are from the non-residential customers in Glennallen. Tax Problems Essential Indicators Yes No & The utility has a system to accurately calculate, track, and report payroll tax liabilities. Xi 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: Copies of 941/ESC quarterly reports for the quarters ending 9/07, 12/07, 3/08, and 6/08 were provided during the assessment up-date. The State DOL and Internal Revenue Service both report that GIC is current with ESC reports and payments. 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. i &% kX Rw Personnel System Comments: The corporation manager reported that no progress has been made on personnel policies and procedures. There are only two part-time employees of the Glennallen Improvement Association. July — August — September 2008 1" Quarter FY09 - RUBA Report Organizational Management Essential Indicators Yes No & The entity that owns the utility is known and the entity that will operate the utility is set. ® The policy making body is active in policy making of the utility. XK) The policy making body enforces utility policy. Xl The utility has an adequately trained manager. x The utility has an adequately trained bookkeeper. Xl The utility has an adequately trained operator(s). Xl 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 utility has an operator who is certified in wastewater collection and treatment. The operator's certification will expire in December 2008. The manager will attend a UTM class in Anchorage to obtain the necessary CEUs to renew his wastewater certifications. The utility has a strong utility ordinance in place but the collections policy is not being followed. The bookkeeping and accounting functions for the utility are contracted out to an individual. Operation of Utility Essential Indicators Yes No Ri 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 kK The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. ®) The utility has a safety manual and holds safety meetings. X Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. &X The utility is operating at the level of service that was proposed. X The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. Xkkm Operation of Utility Comments: The utility has an operator who is certified in wastewater collection and treatment and the operator's certification will expire in December 2008. The manager will attend a UTM class in Anchorage to obtain the necessary CEUs to renew his wastewater certifications. GIC provides piped sewer service to the residents of Glennallen. - 46 - July — August — September 2008 1" Quarter FY09 - RUBA Report RUBA Activities For The Coming Quarter Information will be provided, if requested, on collections and budget formats. RUBA remains available by phone, email, and fax to assist the Glennallen Improvement Corporation. -47- July — August — September 2008 1“ Quarter FY09 - RUBA Report - 48 - July — August — September 2008 1" Quarter FY09 - RUBA Report Golovin Activity Report Community Overview Lead RUBA Staff: Josie Bahnke, Nome Office 2007 Population: 167 Region: Bering Straits Local Government: 2"! Class City 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 Nome RUBA staff travelled to Golovin on July 30, 2008 to assist temporary city staff with the completion of Internal Revenue Service (IRS) form 941 for second quarter 2008. Completing the form for the IRS by the July 31, 2008 deadline, the City was able to avoid penalties. After one month of unauthorized leave without pay, the city clerk was terminated. The utility clerk and bookkeeper are sharing the duties until a new city clerk is hired. -49- July — August — September 2008 1" Quarter FY09 - RUBA Report Capacity Indicators Essential Indicators Finances Yes No Xl x xX x Xl & X X & ba 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 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: At the time of this report, the city council has not adopted a FY09 budget. Due to no budget being adopted, monthly financial reports are incomplete. Financial management of the piped water and sewer system, washeteria, and landfill is the responsibility of the utility clerk. Last fiscal year, Nome RUBA staff received monthly financial reports consistently from the utility clerk, Annette Henry. Annette worked with RUBA staff to prepare a FY09 water and sewer utility budget and set rates for the fuel sales enterprise. The city council has not taken action on either item. Accounting Systems Essential Indicators Yes RRRK WRX 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. Si = a Rkw 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. July — August — September 2008 1 Quarter FY09 - RUBA Report a oe en ae TE 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 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. XX] 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. However, the Alaska Department of Labor, Employment Security Division has not verified their status. 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. &X The utility has adopted and follows a written personnel evaluation process that ties the job x description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: 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. AS Personnel System Comments: The City of Golovin has workers’ compensation insurance through AML/JIA for 2009 but no payment has been made since 6/30/08. The entire council participates and conducts evaluations of city employees. However, this does not include probationary employees. -51- July — August — September 2008 1" Quarter FY09 - RUBA Report Organizational Management Essential Indicators Yes No X The entity that owns the utility is known and the entity that will operate the utility is set. 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. X 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. X The policy making body meets as required. XxX The utility complies with the open meeting act for all meetings. Organizational Management Comments: The city council is the policy making body for the utility. Presently, the utility does not have a manager; however, the duties of the manager are being performed by the utility clerk. The primary operator has many years experience and is mentoring the secondary operator, who has delivered water in the past. 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. 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. 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. HWOkRKN Operation of Utility Comments: Wayne Henry is certified in Level 1, Water Distribution. Level 2 certification will be necessary for the new system. July — August — September 2008 1 Quarter FY09 - RUBA Report eee A Apr 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. July — August — September 2008 I Quarter FY09 - RUBA Report July — August — September 2008 1 Quarter FY09 - RUBA Report Goodnews Bay Activity Report Community Overview Lead RUBA Staff: Ralph Andrew, Dillingham Office 2007 Population: 235 Region: Dillingham Local Governments: Tribal Council od The Native Village of Goodnews Bay operates a \ Phen, AP” washeteria central watering point, provides for honey bucket haul, and has a sewage lagoon. The tribe, the policy making body for the utility, assumed water/sewer utility management from a community utility board in August 2005. Currently, treated well water is hauled from the watering point at the washeteria/clinic facility. Most homes are currently not plumbed. A piped water and gravity sewer system with plumbing for 70 + homes is under construction. The project funding is expected to plumb homes including installation of fixtures. RUBA Activity This Reporting Period The Native Village of Goodnews Bay is jointly managing the water/sewer utility with Alaska Rural Utility Collaborative (ARUC). The RUBA assessment of management indicators conducted with ARUC is updated periodically to reflect the current status of RUBA indicators. The community water- sewer project, led by the Alaska Native Tribal Health Consortium (ANTHC), remains underway and is nearing completion. A sanitation business plan, a special sanitation grant condition under development by a consultant, reportedly is nearly finished. Most of RUBA's contact with Goodnews Bay during the quarter was with city government officials on topics including personnel, payroll, and one inquiry concerning local option elections. ' nm n ’ July — August — September 2008 1" Quarter FY09 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No x All revenue and expenses for the utility are listed in the utility budget. x The utility has adopted a balanced realistic budget. & Monthly financial reports are prepared and submitted to the policy making body. xl The utility is current in paying all water/wastewater electric bills. KI 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. Xl A monthly manager’s report is prepared. X Budget amendments are completed and adopted as necessary. Finances Comments: The utility budget is balanced and realistic. ARUC staff produce monthly financial reports presenting year-to-date activity. ARUC subsidizes the utility when revenues fall short of expenditures, as is presently the case for the month ending August 2008, the most current report provided by ARUC. In prior quarters, ARUC was working with the village council to improve utility customer collections. Accounting Systems Essential Indicators Yes No & The utility has adopted a collection policy and actively follows it. x The utility bills customers on a regular basis. &X An accounts receivable system is in place which track customers and reports past due accounts and amounts. x An accounts payable system is in place. Wx 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. July — August — September 2008 1 Quarter FY09 - RUBA Report Accounting System Comments: Utility billing continues through services provided by ANTHC. ARUC operates under a standard water/sewer ordinance that includes a collections policy. ARUC maintains a workers compensation policy and uses computerized accounting to monitor and track finances. 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: According to the IRS Taxpayer Advocate Service dated October 10, 2008, the ARUC was meeting federal tax obligations. On October 14, 2008 the Alaska Department of Labor confirmed compliance with Alaska ESC tax obligations for the quarter ending June 30, 2008. 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. Xl & Wk WW &X Personnel System Comments: Workers compensation insurance coverage is current. ARUC abides by a comprehensive personnel policy. July — August — September 2008 1" Quarter FY09 - RUBA Report Organizational Management Essential Indicators Yes No X The entity that owns the utility is known and the entity that will operate the utility is set. & The policy making body is active in policy making of the utility. & 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). Xd 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: ARUC oversees water-sewer utility management with the village council and actively enforces utility policy and operates under a water/sewer ordinance. Billing services continue to be handled by ARUC. The water operator is trained. 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. ie 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). 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. Sustainab) X KMWORKRK Xe Operation of Utility Comments: The primary water operator possesses required certification. The operator utilizes a preventative maintenance plan and provides reports to the ARUC utility manager. According to an Alaska Department of Environmental Conservation (ADEC) report dated August 8, 2008, the utility is presently on the SNC list for failure to submit a waiver renewal for SOC/OOC. RUBA recommends return to compliance in accordance with options set forth by ADEC. July — August — September 2008 1° Quarter FY09 - RUBA Report RUBA Activities For The Coming Quarter RUBA will maintain contact with the Native Village of Goodnews Bay and will check in periodically with ARUC as they strive to maintain compliance with sanitation grant conditions. -59- July — August — September 2008 1 Quarter FY09 - RUBA Report Hoonah Activity Report Community Overview Lead RUBA Staff: Lawrence Blood, Juneau Office 2007 Population: 852 Region: Southeast Local Governments: 1* Class City od Water is derived from Shotter, Dalton, and Spud Creeks, treated, and piped to all homes and facilities. A new water treatment facility was completed in October 1998. Piped sewage is processed in a sewage treatment plant and 98% of homes are fully plumbed. The City provides garbage collection services twice weekly. The Tlingit-Haida Regional Electric Authority operates three diesel-fueled generators in Hoonah. RUBA Activity This Reporting Period Juneau RUBA staff traveled to the community and completed a RUBA assessment on July 17, 2008. Since the RUBA assessment was completed, the council has met to discuss the recommendations and city staff has started providing financial reports on a monthly basis. The City provided documentation which satisfies two additional sustainable indicators. The City currently meets all essential indicators. -61- July — August — September 2008 1 Quarter FY09 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No x All revenue and expenses for the utility are listed in the utility budget. The utility has adopted a balanced realistic budget. ® Monthly financial reports are prepared and submitted to the policy making body. X The utility is current in paying all water/wastewater electric bills. & 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 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. Xl A monthly manager’s report is prepared. X Budget amendments are completed and adopted as necessary. Finances Comments: The council adopted a balanced FY08 budget on December 18, 2007. The budget is based on the calendar year, January | through December 31 and includes general government operation, community services departments, and enterprise funds. An evaluation between the FY-08 utility budget and actual FY-07 revenues and expenses suggests that the budget is adequately detailed and realistic. The mayor, who also serves as the utility manager, gives a verbal financial report to the council at monthly meetings. Financial reports, including a profit and loss statement, balance sheet, and budget vs. actual profit and loss are available to council members; however, are not currently included in the council meeting packets. The council relies on the mayor to oversee the finances of the City and for the execution of the budget. The council provides its oversight by performing quarterly budget reviews. To meet the criteria for this essential indicator and as an improvement to the current practice, the mayor will begin providing financial reports to council members on a monthly basis starting at the August 2008 council meeting. The City is current on all electricity bills through July 2008. Electricity is provided through Inside Passage Electric Cooperative (IPEC) at $0.22 per kilowatt hour (KPH) after Power Cost Equalization (PCE). Approximately 13% of the overall water and wastewater operating cost is for electricity. The community has a bulk fuel facility owned by Hoonah Trading Company which is comprised of propane, gasoline, and diesel storage tanks sufficient to meet the community's needs. The City has a ‘keep full’ contract with Hoonah Trading with adequate funds budgeted for fuel purchases. The utility receives revenues sufficient to cover operating expenses and repair and replacement costs. In prior years, the utility relied on inter-fund transfers and general fund subsidies to balance the utility budget. This year, the FY-08 budget has revenue projections exceeding expenditures by $4850 which includes expected repair and replacement cost. The City provides water, wastewater, and solid waste utility services to the local population for the following combined fees (including sales tax): regular residential = $90.56 per month; senior citizen residential = $55.04 per month; commercial = $125.35 per month; and a metered rate structure for large volume users. Large volume users include Hoonah City Schools, Hoonah Cold Storage, and Point Sophia. Year-to-date revenues and expenses are generally inline with budgeted projections. Total utility revenues and expenses are slightly below the expectations for 3rd quarter FY-08. July — August — September 2008 1“ Quarter FY09 - RUBA Report 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. & An accounts payable system is in place. &X The payroll system correctly calculates payroll and keeps records Xi A cash receipt system is in place that records incoming money and what it was for. xX] The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators XK A chart of accounts is used that identifies categories in a reasonable, usable manner. XxX] 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 City of Hoonah has adopted and actively follows a collections policy as detailed in Title 13 of the Hoonah Municipal Code. The City actively pursues delinquent utility accounts. The collection policy establishes a $5.00 late fee and a simple interest charge of 1 percent per month for all unpaid accounts 20 days or more in arrears. The simple interest charge of | percent per month exceeds the Alaska statutory limit of 10.5 percent per year. The City terminates utility service 10 days after giving written notice and an opportunity for a public hearing. If service is terminated, a $30.00 disconnection fee and a $30.00 reconnect fee are assessed. Restoration of service after discontinuance for nonpayment of bills is made after payment of current and past due charges and payment of reconnect fees have been made. Customers having their service reconnected after discontinuance are also required to provide a $100.00 deposit that is additional to the initial water and sewer deposit. The City bills customers on a monthly basis for services received during the preceding month. Payments are due immediately upon receipt of the monthly statement. If payments are not received by the last business day of the month, the entire unpaid balance becomes delinquent. The City bills customers using a statement that does not list water, wastewater, and solid waste charges separately. The statement includes only a single charge which is for the combined utility services. The billing practice of using a single charge for all utility services is inconsistent with Hoonah Municipal Code 13.04.030 that requires services to be listed separately. The City is currently using Caselle accounting software for its accounting system. Caselle software was specifically designed for municipal and utility applications. It incorporates several integrated and expandable modules for general fund accounting, utility billing and control, and payroll. The accounts payable module issues checks, manages vendor information and interfaces with Requisitions, Purchase Orders, and General Ledger modules to enable full encumbrance accounting. The accounts receivable module maintains customer account and payment information, documents customer payments and reports past due accounts with corresponding amounts, generates user-designed invoices, statements, letters, and delinquent notices, and automatically calculates penalties, late fees, and sales tax. Caselle meets payroll reporting requirements for Alaska and provides annual IRS Circular E updates. The accounting technician reported that this accounting system is working well; however, it is considerably different from other accounting programs that she has used in the past. The accounting technician would like to receive additional training on the program to take advantage of the full range of software functions. The accounting technician completes monthly bank reconciliations and reports reconciling all bank accounts through May 2008. The City uses a purchase order system for all purchases, but reportedly does not always compare proposed purchases to budgeted amounts. -63- July — August — September 2008 1 Quarter FY09 - RUBA Report Tax Problems Essential Indicators Yes No X The utility has a system to accurately calculate, track, and report payroll tax liabilities. X The utility is current on filing tax reports. X The utility is current on making tax deposits. Xi If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The City of Hoonah uses Caselle accounting software to calculate, track, and report payroll liabilities. They are current on filing their tax reports and making tax deposits. On 7/17/2008 the city manager authorized RUBA staff to obtain federal tax information from the Internal Revenue Service (IRS) and employment security information from the Alaska Department of Labor and Workforce Development (ADOLWD). Based upon the information received, as of 7/18/08, the City of Hoonah is deemed compliant by both the IRS and ADOLWD. The City is current with all tax reports and tax deposits. The City has not received any ADOLWD or IRS letter letters within the past year. 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 & wk kw X Personnel System Comments: The City currently carries workers compensation insurance through AML/JIA. The policy runs from 7/01/08 through 06/30/09. The policy covers work-related accidents and occupational diseases up to the Alaska statutory limits for each occurrence. A copy of the workers compensation policy is posted in accordance with state statute at the following locations: City Hall, Water Treatment Plant, and Public Works Shop. The City of Hoonah has a well established and implemented personnel management system. The City has an adopted personnel policy handbook. Every employee is required to submit a signed statement that they have read and understand the Personnel Policy Handbook. The City has a written hiring procedure in Chapter 3.48 of the municipal code. Job descriptions are up to date and the personnel files are very well organized with all the necessary employee documents. The City provides annual evaluations for all employees. Employees are offered ample professional training opportunities. -64- July — August — September 2008 I Quarter FY09 - RUBA Report Se eee ner Organizational Management Essential Indicators Yes No & MRKKKK The entity that owns the utility is known and the entity that will operate the utility is set. The policy making body is active in policy making of the utility. The policy making body enforces utility policy. The utility has an adequately trained manager. The utility has an adequately trained bookkeeper. The utility has an adequately trained operator(s). The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators x xX Pe 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: Hoonah residents are by and large aware that the City owns and operates the water, wastewater, and solid waste utilities and the city council is very active in making and enforcing utility policy. The mayor and city administrative staff are well trained in the organizational and fiscal management of the utility. The utility operators are certified at the appropriate levels to operate the City's level-2 water treatment and level-1 water distribution, wastewater collection, and wastewater treatment facilities. 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. 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. XK 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. July — August — September 2008 1° Quarter FY09 - RUBA Report Operation of Utility Comments: The City has 2 certified utility operators. The utility operator, Ronny Roberts, has the following certifications: Wastewater Collection 2 Exp. 12/31/09 Wastewater Treatment 2 Exp. 12/31/10 Water Treatment 2 Exp. 12/31/08 Water Distribution 2 Exp. 12/31/09 The utility operator, Billy Miller, has the following certifications: Wastewater Collection 1 Exp. 12/31/10 Wastewater Treatment 1 Exp. 12/31/10 Water Treatment 1 Exp. 12/31/10 Water Distribution 1 Exp. 12/31/10 The operator has a preventive maintenance plan for the sanitation facilities contained within the utility operations manual. The water and wastewater utility staff consists of a public works supervisor and four utility operators. The public works supervisor is responsible for overall utility operations. The water operator and public works supervisor communicate in-person daily and the operator maintains a written log of maintenance activities and concerns. The public works supervisor prepares monthly written reports and conducts facilities 'spot checks’ to verify maintenance items are being completed. The public works supervisor reports that the utility has a safety manual and holds safety meetings as part of the AML/JIA risk management program. The public works supervisor reports that the water utility is operating at the proposed level of service. Neither the water nor wastewater utility has suffered any major problems or outages due to management issues. The water utility completes and distributes its Community Confidence Report (CCR) and is not on the Significant Non-Compliance List. The water operator maintains an adequate level of tools, supplies, and spare parts and manages the stock through an inventory control list and a critical spare parts list. RUBA Activities For The Coming Quarter 1) RUBA staff will continue to offer RUBA assistance as needed or requested to improve utility management practices. 2) 32-hour Personnel Management Course in Juneau December 1-5, 2008. - 66 - July — August — September 2008 1 Quarter FY09 - RUBA Report Hooper Bay Activity Report Community Overview Lead RUBA Staff: Ken Berlin, Bethel Office 2007 Population: 1,149 Region: Yukon-Kuskokwim Delta Local Governments: 2" Class City ad The City of Hooper Bay operates multiple watering v Pete, OT 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 through August 2008, a 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. -67- July — August — September 2008 1° Quarter FY09 - RUBA Report Capacity Indicators Finances Essential Indicators Yes Xk XXX & 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 ps & & ba 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: All indicators continue to be met. FY 2009 budget is on file. Monthly financial reports up to August 2008 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. Hooper Bay is also looking into waste heat recovery and wind generation. Accounting Systems Essential Indicators Yes XXKX HR The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. An accounts receivable system is in place which track customers and reports past due accounts and amounts. An accounts payable system is in place. The payroll system correctly calculates payroll and keeps records A cash receipt system is in place that records incoming money and what it was for. The Utility has a cash disbursement system that records how money was Spent. Ss ij a XikK® 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. - 68 - July — August — September 2008 1 Quarter FY09 - RUBA Report 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. 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 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 px The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators XI The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. Ri 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. RX The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. 4] The utility provides training opportunities to staff as needed and available. Personnel System Comments: 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. -69- July — August — September 2008 1 Quarter FY09 - RUBA Report Organizational Management Essential Indicators Yes No &X WNXXXR The entity that owns the utility is known and the entity that will operate the utility is set. The policy making body is active in policy making of the utility. The policy making body enforces utility policy. The utility has an adequately trained manager. The utility has an adequately trained bookkeeper. The utility has an adequately trained operator(s). The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators & & X The utility has adopted an organizational chart that reflects the current structure. The policy making body meets as required. The utility complies with the open 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 Xl The utility operator(s) are actively working towards necessary certification. Xl The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators X The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. 4] The utility has a safety manual and holds safety meetings. X Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. X The utility is operating at the level of service that was proposed. x The operator provides status reports to the manager on a routine basis. & The utility has completed and distributed its Community Confidence Report (CCR). Xl The utility is not on the Significant Non-Compliance (SNC) list. X The utility maintains an inventory control list. X The utility maintains a critical spare parts list. Operation of Utility Comments: 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. -70- July — August — September 2008 I Quarter FY09 - RUBA 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. -71- July — August — September 2008 1 Quarter FY09 - RUBA Report July — August — September 2008 1 Quarter FY09 - RUBA Report Kachemak Selo Activity Report Community Overview Lead RUBA Staff: Earl Gibson, Anchorage Office 2007 Population: 165 Region: Kenai Peninsula Local Governments: Unincorporated ad Kachemak Selo is an unincorporated village of v al approximately 164 Russian Orthodox Old Believers, 20 miles east of Homer on Kachemak Bay. The village is in an area with limited surface and ground water resources. Kachemak Selo has a Class A, ground water system serving 27 occupied homes and 3 vacant houses. A Class C system serves five homes, and two homes are served by a private water system. Wastewater systems are individual onsite disposal systems. None of the water systems are approved for operation by ADEC. RUBA Activity This Reporting Period On September 25, 2008, RUBA staff met with members of the Kachemak Selo water utility board to complete a RUBA assessment of management capacity indicators. The village provided limited documentation supporting the conclusions in this report. Specific documents used in this report are available for review in the Anchorage office. 732 July — August — September 2008 I Quarter FY09 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No X All revenue and expenses for the utility are listed in the utility budget. X The utility has adopted a balanced realistic budget. & 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 XJ The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. & YTD revenues are at a level equal to or above those budgeted. J YTD expenditures are at a level equal to or below those budgeted. & A monthly manager’s report is prepared. 1 Budget amendments are completed and adopted as necessary. Finances Comments: Kachemak Selo is working with Kathy Kacher, Aurora Taxes and Accounting, Inc. She assisted the community in developing their non-profit status and an adopted budget for 2009. The name of the organization is 'The Village of Kachemak Selo Cooperative Water Company Incorporated.’ The utility's budget is for the current water system. As the project grows, changes will be made and the budget adjusted accordingly. A monthly financial statement is not prepared because accounting and billing systems have not been set up. When these systems are in place, the statement will be developed by Aurora Taxes, who assisted with their current adopted budget. Without a financial report, it is unclear whether sufficient revenues are being collected or whether revenues and expenditures are tracking with the budget. Electricity is supplied by the Homer Electric Association and the trash is handled by the Kenai Peninsula Borough refuse transfer station. Currently, the system does not have need for fuel to tun the utility. The ultraviolet light system runs off electricity supplied by the school. Payment of electricity is made directly from the school lease and paid directly to Homer Electric Association for the - community. A monthly manager's report is verbally provided on expenses and needs for the utility but not documented in the meeting minutes. The community does have a set budget and takes care of whatever needs they may have at the time. -74- July — August — September 2008 1 Quarter FY09 - 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. XK KK xX Accounting System Comments: Currently, there is no accounting system for the utility. The current way of paying bills is the manager coordinates with residents what the total expenses are periodically and asks for a certain amount from each household to meet the costs. The community maintains a bank account for this purpose. As a newly established utility, it will be necessary to develop a collections policy. The manager stated that a billing system will be developed and maintained by the utility. A system will need to be developed to assist the utility in maintaining an accounting system for payroll, budgets, billings, and chart of accounts. The manager stated they were looking at a proposed charge of $50.00 a month to help cover costs. 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. X The utility is current on making tax deposits. Xi If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The Village of Kachemak Selo recently established themselves in a non-profit status (501 (c) (12)) and just received approval of an EIN from the IRS. Currently, there are no paid positions for this utility. July — August — September 2008 1" Quarter FY09 - 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. Xi &X ke ke x Personnel System Comments: The utility does not have a worker's compensation policy in effect because currently, there are no paid positions for this utility. A personnel system that will encompass a personnel policy, job descriptions, and evaluations will need to be developed. The utility can contact their LGS for assistance in meeting the requirements Organizational Management Essential Indicators Yes No RX 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). XK The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators KK] 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. WR -76- July — August — September 2008 1° Quarter FY09 - RUBA Report Organizational Management Comments: The community provided Articles of Amendment for non-profit status as documentation that the utility is owned and operated by the community. However, the utility does not have a utility ordinance in place showing authorization to operate. The policy making body is making decisions concerning the utility and there are written minutes provided. The manager provided a certificate of training and is the only certified operator. He is adequately trained to run the water utility and has some training in maintaining financials for the utility. Currently, the utility does not have a local bookkeeper and these services are provided by Aurora Taxes and Accounting in Anchor Point. The policy making body meets when necessary for utility business. The utility does not post public meeting notices to comply with the Open Meetings Act for all meetings; however, the minutes are recorded and available. 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 DJ 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. xX 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. X 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. EX The utility maintains a critical spare parts list. Operation of Utility Comments: The utility does not have a preventative maintenance plan developed for the existing utility. Currently, the manager and operator is the same person with no reports required at present time. A safety manual specific to the community's water system should be created; participation in a safety program is recommended with documentation of meetings and meeting subjects. The current CCR is completed, as well as monthly testing of water. The utility is not listed on the Significant Non-Compliance (SNC) list. However, the utility is not currently compliant with all water regulations since they are under a boil water notice from the EPA. There were no lists for inventory and critical spare parts. RUBA Activities For The Coming Quarter RUBA staff will maintain contact and offer assistance with drafting a utility ordinance using the model ordinance provided to the utility. -17- July — August — September 2008 1° Quarter FY09 - RUBA Report -78- July — August — September 2008 1" Quarter FY09 - RUBA Report Kasigluk Activity Report Community Overview Lead RUBA Staff: Ken Berlin, Bethel Office 2007 Population: 534 Region: Yukon-Kuskokwim Delta Local Governments: Unorganized af “3 x Treated well water is hauled from the washeteria in Preteen, pe AO” 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 traveled to Kasigluk June 23, 2008 and met with the bookkeeper to provide assistance with drafting the 2008 budget and finance reports for January through May 2008. The finance reports were previously completed through December 2007. Since Kasigluk is on a calendar year it was easy to get the actual revenues and expenditure figures. The main increases in expenditures came from fuel and other related costs. Once the budget is adopted by the council, the finance reports will be updated. As of September 30 the budget and finance reports have not been received in the Bethel RUBA office. The administrative staff at Kasigluk were contacted concerning the budget and finance reports to no avail. -79 - July — August — September 2008 I Quarter FY09 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No XX All revenue and expenses for the utility are listed in the utility budget. X The utility has adopted a balanced realistic budget. ] Monthly financial reports are prepared and submitted to the policy making body. X The utility is current in paying all water/wastewater electric bills. & 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. Ri A monthly manager’s report is prepared. &X Budget amendments are completed and adopted as necessary. Finances Comments: The 2008 budget is being worked on by the bookkeeper. Monthly financial reports are current to December 2007 and are produced with QuickBooks Pro and converted into Excel format. Finance reports for January to May will be completed after the 2008 budget is adopted by the Traditional Council. Monthly manager's reports are done verbally, however it is recommended that they be 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 The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. An accounts receivable system is in place which track customers and reports past due accounts and amounts. An accounts payable system is in place. The payroll system correctly calculates payroll and keeps records A cash receipt system is in place that records incoming money and what it was for. The Utility has a cash disbursement system that records how money was spent. tainable Indicators A chart of accounts is used that identifies categories in a reasonable, usable manner. Monthly bank reconciliation’s have been completed for all utility accounts. The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. BRRK WHR n S @ XR -80- July — August — September 2008 1° Quarter FY09 - RUBA 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 X 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. X 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 were verified by documentation from the community. An IRS letter stating the 2005 and 2006 tax years were accepted without any changes was received in June 2008. The IRS deems Kasigluk compliant at this time. 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. Xk wk ww Personnel System Comments: Kasigluk is covered through Umialik Insurance Co. effective 1/08 to 1/09. They have adopted a personnel policy and follow the evaluation, hiring, and probation policy. They also provide training when funding allows. -81- July — August — September 2008 I Quarter FY09 - RUBA Report Organizational Management Essential Indicators Yes No Xx MRK 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. Sustainabl Xx & yi le 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: A new bookkeeper was hired who has experience in accounting (QuickBooks Pro). The administrator, who is also the utility manager, also has QuickBooks experience and is competent. Kasigluk Traditional and Elders Council adopted the utility ordinance by resolution and enforcement started in August 2005. It continues to be maintained. 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. Sustainabl X NMOKXX KN le 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. July — August — September 2008 1 Quarter FY09 - RUBA Report Operation of Utility Comments: RUBA staff has requested documentation of utility operator certification. Kasigluk Washeteria is on the Significant Non-Complier list for violations occurring in December 2007 for failing to submit monthly bacti samples and lack of annual TTHM/HaaS sampling. There is no known hardware problem. The system may return to compliance with 12 consecutive months of Stage 1 requirements and the annual sampling of TTHM/HAAS. RUBA Activities For The Coming Quarter Need 2008 budget. Need finance reports from January to September 2008. -$3- July — August — September 2008 1° Quarter FY09 - RUBA Report - 84 - July — August — September 2008 1° Quarter FY09 - RUBA Report Koliganek Activity Report Community Overview Lead RUBA Staff: Ralph Andrew, Dillingham Regional Office 2007 Population: 192 Region: Dillingham Local Governments: Tribal Council df Koliganek has operated a piped system for over 25 years. Water is derived from a well and is treated. Thirty-three homes and facilities are connected to the piped water and a community septic tank. Eight homes have individual wells and septic systems. Fifteen homes haul water and honeybuckets. Koliganek purchases power from the school district, and also owns its own generator. The village has a 'code.red' fire suppression unit and one village public safety officer. The community has completed a water and sewer feasibility study and is competing for funds to make improvements with the goal of connecting the entire community. RUBA Activity This Reporting Period At the request of the village council, RUBA conducted an assessment of management indicators in Koliganek on September 4, 2008. The water/sewer utility, operated by the village council, anticipates applying for sanitation funding, including state Village Safe Water grant funding, to renovate the existing sanitation infrastructure. The village council is taking a proactive step by requesting the RUBA assessment well in advance of hoped-for sanitation grant funding. July — August — September 2008 1° Quarter FY09 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No XX All revenue and expenses for the utility are listed in the utility budget. X<] The utility has adopted a balanced realistic budget. XX Monthly financial reports are prepared and submitted to the policy making body. The utility is current in paying all water/wastewater electric bills. The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. XX] The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. YTD revenues are at a level equal to or above those budgeted. YTD expenditures are at a level equal to or below those budgeted. A monthly manager’s report is prepared. Xl Budget amendments are completed and adopted as necessary. & & RR Finances Comments: The village council has adopted an FY 2008 entity budget for the federal fiscal year ending September 30, 2008. A budget specific to the water/sewer utility has not been assembled or adopted. Staff use QuickBooks for some, but not all, of the bookkeeping and do not presently produce a water/sewer monthly financial report. According to village council reports, the year-to-date water/sewer revenues exceeded expenses; RUBA awaits confirmation in the form of a monthly financial report. Water/sewer revenues include a subsidy from a known source. Fuel supplies remain sufficient. The council president informed RUBA they will again seek financing through the Alaska Energy Authority, noting the price of fuel has increased dramatically in recent months. The water operator presents monthly verbal operational reports to the council; the administrator presents utility financial reports. Accounting Systems Essential Indicators Yes No The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. An accounts receivable system is in place which track customers and reports past due accounts and amounts. An accounts payable system is in place. The payroll system correctly calculates payroll and keeps records A cash receipt system is in place that records incoming money and what it was for. The Utility has a cash disbursement system that records how money was spent. 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. KKK KR n & RRR -86- July — August — September 2008 I‘ Quarter FY09 - RUBA Report eee eee eee er’ Accounting System Comments: The utility enforces the water/sewer collections policies but does not presently have in place a water/sewer ordinance. The administrator reconciles bank accounts monthly, maintains manual customer ledgers, and utilizes some, but not all, available QuickBooks computerized accounting modules. Staff's filing and recordkeeping practices appear effective. Staff process payroll manually. 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. 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: According to correspondence from the IRS Taxpayer Advocate Service dated September 9, 2008, the council is presently complying with federal tax reporting and payment obligations and are reviewing prior report submissions. Correspondence from the Alaska Department of Labor dated September 29, 2008 indicates the council is complying with employment security division requirements. Personnel System Essential Indicators Yes No KX 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. 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 Personnel System Comments: The employer's notice of insurance through Liberty Northwest shows coverage for a one-year period ending July 1, 2008. RUBA requested a copy of the current notice for the file. Staff utilizes a well- written policy and procedures manual that includes comprehensive sections on personnel and finance, among other topics. The employee personnel folders presently include comprehensive documentation but job descriptions can benefit from review and an update to facilitate performance and effective management of human resources. -87- July — August — September 2008 I Quarter FY09 - RUBA Report 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). XK 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. XxX The policy making body meets as required. x The utility complies with the open meeting act for all meetings. NHN Organizational Management Comments: The council operates the utility and enforces policies on collections but should adopt formal rules and regulations to facilitate effective utility management. RUBA provided staff with a sample water/sewer ordinance. The administrator is trained and has several years of experience, handles accounting and recordkeeping and reports directly to the village council president. A trained water operator, who also reports directly to the village council president, oversees utility operations and is seeking further training to facilitate certification. The utility employs an alternate water operator. Concerning meetings where public water/sewer system discussion is anticipated, RUBA recommends the village council continue inviting all members of the public to participate. Operation of Utility Essential Indicators Yes No Ri 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. 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. The utility maintains an inventory control list. The utility maintains a critical spare parts list. XXWK & XR -88 - July — August — September 2008 1 Quarter FY09 - RUBA Report Operation of Utility Comments: The water operator is trained and voiced plans to gain current certification for water treatment, water distribution, wastewater collection, and wastewater treatment. Utility staff follow a preventative maintenance plan and maintain contact with regional Remote Maintenance Worker staff. RUBA recommends safety meetings and suggests formation of a safety committee. The utility published its * 2007 Consumer Confidence Report timely. RUBA requests a copy of the utility's inventory control list and critical spare parts list. RUBA Activities For The Coming Quarter RUBA staff will maintain contact with the village council and is available to provide assistance with resolution of management capacity indicators that are not being met. -89- July — August — September 2008 1 Quarter FY09 - RUBA Report ————— A Report Kwethluk Activity Report Community Overview Lead RUBA Staff: Ken Berlin, Bethel Office 2007 Population: 192 Region: Dillingham Local Governments: Tribal Council The City of Kwethluk operates the water treatment plant, washeteria, garbage collection, and the honey-bucket haul system for the community. The City of Kwethluk, along with the Sanitation Committee, is the policy making body for the utility. A new washeteria/water treatment plant is still under construction through Alaska Native Tribal Health Consortium (ANTHC) engineering services. The school and teachers’ housing have their own water sewer systems. There are honeybucket bins located sparingly throughout the community for the container haul system; these are hauled to the sewage lagoon on a regular basis. Very few homes have running water or plumbing for showers, but many residents have sauna/steambath houses. RUBA Activity This Reporting Period Bethel RUBA staff traveled to Kwethluk on June 26, 2008 and met with the bookkeeper to complete an update of the RUBA management assessment. The 2009 budget is balanced and the finance reports are up to date to August 2008. The bookkeeper provided all necessary documentation and the City of Kwethluk currently meets all essential indicators in the RUBA assessment. Meeting all essential management indicators qualifies them for application and award of sanitation construction project funds. The city administration and finance department are to be commended for doing a good job in keeping up with the required documentations. -91- July — August — September 2008 1° Quarter FY09 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No <] All revenue and expenses for the utility are listed in the utility budget. &] The utility has adopted a balanced realistic budget. &] Monthly financial reports are prepared and submitted to the policy making body. & The utility is current in paying all water/wastewater electric bills. &] The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. XX] The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators 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. NRE Finances Comments: The FY 2009 budget is balanced and adopted. RUBA has been provided copies of finance reports through August 2008. Electric bills are paid when received and fuel was ordered for the washeteria and other city buildings. Accounting Systems Essential Indicators Yes No ® The utility has adopted a collection policy and actively follows it. Xl The utility bills customers on a regular basis. An accounts receivable system is in place which track customers and reports past due accounts and amounts. 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. NNkk 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. &X The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. -92- July — August — September 2008 1° Quarter FY09 - RUBA Report ee eee ee POT Accounting System Comments: The City has a collection policy and the council is now enforcing it. Billings go out on a monthly basis and honey bucket bins are taken away from customers who do not pay their bills. The accounts receivable and accounts payable systems are verified by documentation. Tax Problems Essential Indicators Yes No Xi 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: Copies of all quarterly reports and tax deposits were presented during the June 2008 assessment. The IRS confirmed compliance on 6/30/08. Personnel System Essential Indicators Yes No i 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. &] 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. XK The utility provides training opportunities to staff as needed and available. Personnel System Comments: Documentation of workers compensation insurance has been verified with the state, however, a copy of the Employer's Notice of Insurance has not been provided by the City of Kwethluk. The personnel policy, job descriptions, evaluation process, hiring process, probationary and training are on file. Administration needs to go through each employee personnel file and make certain all contain the required documents. - 93 - July — August — September 2008 1“ Quarter FY09 - RUBA Report — ee eee Pe Organizational Management Essential Indicators Yes No Xl The entity that owns the utility is known and the entity that will operate the utility is set. xX The policy making body is active in policy making of the utility. XI The policy making body enforces utility policy. 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 X The utility has adopted an organizational chart that reflects the current structure. & The policy making body meets as required. xX The utility complies with the open meeting act for all meetings. Organizational Management Comments: The ordinance establishing the utility is on file and is now being enforced. The utility has a trained manager, bookkeeper and operators with certification. A utility clerk position is going to be posted and hired by September. Operation of Utility Essential Indicators Yes No xX 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. Xx 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. ® The utility has completed and distributed its Community Confidence Report (CCR). X The utility is not on the Significant Non-Compliance (SNC) list. x The utility maintains an inventory control list. X The utility maintains a critical spare parts list. Operation of Utility Comments: A copy of the preventative maintenance plan was obtained by RUBA on 8/22/07. The critical spare parts list is on file. RUBA Activities For The Coming Quarter RUBA will continue to monitor finance reports and other essential indicators. -94- July — August — September 2008 1 Quarter FY09 - RUBA Report Kwigillingok Activity Report Community Overview Lead RUBA Staff: Flora Olrun, Bethel Office 2007 Population: 361 Region: Bethel Local Government: Tribal Council od “*; Vi The Village Council operates the central watering point and washeteria. Water is currently derived from snow and ice melt and a lake reservoir, is treated, and hauled by residents from the washeteria. Water shortages are common. The school operates its own surface water treatment facility, but shares a sewage lagoon with the washeteria. Homes are not plumbed. Honey buckets are disposed of by residents. Infrastructure improvements are underway to develop a community system. RUBA Activity This Reporting Period The Native Village of Kwigillingok submitted FY 08 budget with supporting documents and monthly financial statements up to month ending July, 2008. They have worker's compensation insurance coverage with Alaska National Insurance Company until May 9, 2009. Kwigillingok Washeteria is on the Environmental Protection Agency's Significant Noncompliance List which was dated August 8, 2008. The utility may be able to return to compliance by January of 2009. They applied to Alaska Energy Authority for their fall fuel purchase. The State of Alaska, Department of Labor found the Native Village of Kwigillingok to be compliant with employment security taxes. -95- July — August — September 2008 1 Quarter FY09 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No x All revenue and expenses for the utility are listed in the utility budget. Kl The utility has adopted a balanced realistic budget. X Monthly financial reports are prepared and submitted to the policy making body. X The utility is current in paying all water/wastewater electric bills. X The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. Xl The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. RN Sustainable Indicators Kl 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. XK Finances Comments: The Native Village of Kwigillingok operates the laundromat. The water supply from the watering point in the laundromat is not safe for human consumption and there are signs posted throughout the community, including private homes. The signs prohibit the use of the water for drinking, and provide instructions on how to boil water to make it safe for human consumption. The filtering system for the water is not complete. Community members use rain water and ice for drinking. The tribe provides services to evacuate sewer tanks and haul services. The budget did not contain the subsidized revenue source, which is heavy equipment rental income; that information was contained in a separate document. The budget also did not contain an expense line item for chemicals and testing due to the fact this system prohibits human consumption of the water and their filtering system is not complete. Based on this information, the water, sewer and laundromat budget contains all operating items for the operation of the utilities. The Native Village of Kwigillingok adopts the annual budget, approves amendments, and receives monthly financial statements and progress reports from the utility manager. Both the laundromat and the tribal office building are up to date with electrical bills. The tribe has submitted a loan application to Alaska Energy Authority for their fall fuel purchase. Their fuel capacity is 103,000 gallons. When needed, the utility is subsidized from heavy equipment rental income as well as the general fund. Equipment rental income can range between a high of $10,000 a month to zero. They have bobcats, dozers, a front-end loader and a tiller. Other smaller equipment is available for rent like trailers and fuel carts. The budget includes a nominal amount for repair and replacement costs. The last financial statement submitted for the month ending July, 2008 reflects that the actual YTD revenues and expenses are in line with the budget. -96- July — August — September 2008 1° Quarter FY09 - 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. Xl An accounts receivable system is in place which track customers and reports past due accounts and amounts, X An accounts payable system is in place. X The payroll system correctly calculates payroll and keeps records & A cash receipt system is in place that records incoming money and what it was for. XxX 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. XI The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. Accounting Comments: The utility has a collection policy and actively follows it. When customer's past due accounts reach ninety days, they no longer receive services until their outstanding bill is paid in full. A past due list of customers who no longer will receive services until their outstanding bill is paid was provided to RUBA. Customers are billed at the beginning of each month. A service order system is in place which tracks the amount of working hours for the utility operator and provides backup for customer billing. The tribe uses QuickBooks 2008 and it has the capacity to track customer's accounts, accounts payable and accounts receivable, correctly calculate payroll, and do financial reports. A chart of accounts was submitted to the Bethel regional office file for both the tribal and utility accounts. Bank reconciliations are done on a regular basis. A sample purchase order form, which requires prior approval before purchases are made, was also provided to RUBA. Tax Problems Essential Indicators Yes No Ri The utility has a system to accurately calculate, track, and report payroll tax liabilities. X The utility is current on filing tax reports. X The utility is current on making tax deposits. X If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The Native Community of Kwigillingok uses QuickBooks 2008, which has the capacity to calculate. track and report payroll tax liabilities. According to the IRS, Kwigillingok is current with federal reports and tax deposit requirements and is also current with state ESC requirements. -97- July — August — September 2008 1" Quarter FY09 - 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. ® The utility provides training opportunities to staff as needed and available. xX Wk we Personnel System Comments: Kwigillingok IRA submitted a copy of their worker's compensation insurance coverage which is valid until May 9, 2009. The Bethel regional office has a copy of the personnel policy as well as job descriptions for the tribal administrator, primary laundry attendant, utilities director and tribal accountant. All staff are evaluated each year. The utilities director emphasized that the operators are on a performance based evaluation and their hours are based on their workload. The utility personnel files are complete and contain I-9's. The personnel policy does contain provisions for an employee probation period which is followed. When training opportunities become available for employees, they are allowed to attend. Organizational Management Essential Indicators Yes No 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 NNNNNHS &X The utility has adopted an organizational chart that reflects the current structure. Xl The policy making body meets as required. x The utility complies with the open meeting act for all meetings. - 98 - July — August — September 2008 1 Quarter FY09 - RUBA Report Organizational Management Comments: The utility is operated by the Native Village of Kwigillingok. The council meets regularly each month and is active in policy making for the utility. Although they are not required, the council complies with the Open Meetings Act for each regular meeting they hold. The meetings are advertised three days in advance by posting written flyers throughout the community. The utility manager has worked for the Native Village of Kwigillingok since 1983. The bookkeeper has worked a little over a year and transferred from the Yukon Kuskokwim Health Corporation where she worked in payroll. The laundry operator has worked for Kwigillingok for approximately two years. The bookkeeper and utility operator attends training sessions when they become available. Utility Ordinance number 2005-10-01, which was passed on October 28, 2005, was submitted to the Bethel regional office as was an organizational chart, which is reflective of the current structure. These documents are in the community file. Operation of Utility Essential Indicators Yes No X The utility operator(s) are actively working towards necessary certification. 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. 4} Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. X The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. XRXWO Operation of Utility Comments: The utility operator worked for the Native Village of Kwigillingok since 1983 and attends training sessions when they are available. The Bethel regional office file contains forms for annual, quarterly and monthly preventative maintenance reports. The utility manager does spot checks to the laundromat and verbally receives information on maintenance and other issues which is written and presented to the council at their monthly meetings. The utility manager stated he holds safety meetings once a week but did not submit a written safety manual. The utility has not suffered any major problems or outages due to management issues to date. The utility ordinance states that the primary service shall be to provide water haul service and sewage tank evacuation of homes. Because the filtering system is not complete, the water service is limited to use for nonhuman consumption purposes such as for the laundromat. There is no water haul service offered yet. No Consumer Confidence Reports, inventory control or critical spare parts lists were provided. Kwigillingok is on the Significant Non-Compliance list and should be able to return to compliance by 2009. -99- July — August — September 2008 1° Quarter FY09 - RUBA Report RUBA Activities For The Coming Quarter Continue to work with the Utility Manager on deficient management indicators. - 100- July — August — September 2008 1 Quarter FY09 - RUBA Report Larsen Bay Activity Report Community Overview Lead RUBA Staff: Tammy Helms, Anchorage Office 2007 Population: 83 Region: Kodiak Island Local Government: 2™ Class City located within the Kodiak Island Borough, Tribal Council ed Naina, oO” Water is supplied from two groundwater sources- gravity feed from the hydro plant, and a well as backup, and stored in a 200,000 gallon tank. A water supply line is connected to the penstock of the hydroelectric plant and used a majority of the time to reduce utility expenses to both the service plant and the customer. All 40 homes are connected to the piped water system. A community septic tank with an outfall line serves these homes, and the majority are fully plumbed. Weekly refuse collection services are provided. The community incinerator is currently unusable and all refuse is deposited at the landfill site. The City has been funded for a water treatment plant project from the Village Safe Water (VSW) program. RUBA Activity This Reporting Period On September 24, 2008 RUBA staff traveled to Larsen Bay to assist the city clerk complete the FY09 budget for the council's review and train the new billing clerk. After numerous onsite visits to Larsen Bay and training four previous city clerks in the last 3 years, the City is finally showing signs of improvement and stability in not only staff but in regular office practices such as billing and collections. The new billing clerk has had exposure to QuickBooks in the past and is knowledgeable of the village setting. RUBA staff will continue to provide assistance to the community and work towards meeting all the essential indicators. - 101 - July — August — September 2008 1° Quarter FY09 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No X All revenue and expenses for the utility are listed in the utility budget. Xl The utility has adopted a balanced realistic budget. Monthly financial reports are prepared and submitted to the policy making body. Xx The utility is current in paying all water/wastewater electric bills. 4] 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. 1S Sustainable Indicators XX] The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. & YTD revenues are at a level equal to or above those budgeted. & YTD expenditures are at a level equal to or below those budgeted. & A monthly manager’s report is prepared. & Budget amendments are completed and adopted as necessary. Finances Comments: The City of Larsen Bay drafted a FY 09 budget with RUBA assistance, although it was not adopted until August 2008. The clerk presents a profit and loss statement, as well as a profit and loss by class to the council monthly. However, a report with year to date revenues and expenses compared to the budget is not provided. The interfaculty bills have not been paid for over a year due to not having a consistent office staff. During the on-site RUBA visit, staff trained the city clerk on how to pay the interfaculty bills, and the clerk feels confident that she will be able to keep them current in the future. During the on-site visit, the City received confirmation of a RAFS loan to purchase fuel. The City has placed an order for 15,000 gal gas, 8,000gal #1 fuel and 40,000gal diesel. The water and sewer revenues are not sufficient to cover operating expenses; however, the City subsidizes its water and sewer utility through electric sales. A line item for the subsidy has been approved within the budget. Manager/ operator reports are given verbally to the council. 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. & 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. XI The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators X A chart of accounts is used that identifies categories in a reasonable, usable manner. Xl Monthly bank reconciliation’s have been completed for all utility accounts. 4] The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. - 102 - July — August — September 2008 1" Quarter FY09 - RUBA Report ——— OES Ee ree pO Accounting Comments: The new city clerk has made it a priority to actively and consistently enforce the collection policy. The City utilizes QuickBooks for accounts receivable, accounts payable, and payroll. The QuickBooks system is set up properly and has been a tool in the past to reliably keep the City's finances in order. Currently, bills are going out on a regular basis. It is recommended that the council support and encourage the clerk's efforts to implement the City's collection policy. Normal procedures when purchasing are for the operator to inform the clerk of the material and price of the purchase, then the clerk creates a purchase order and allows the operator to order the material. Tax Problems Essential Indicators Yes No Xx The utility has a system to accurately calculate, track, and report payroll tax liabilities. & The utility is current on filing tax reports. Xl The utility is current on making tax deposits. Ri If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: Last quarter, the City struggled to pay the monthly payroll liabilities to the bank due to staffing issues, but has managed, with RUBA assistance, to submit the quarterly reports to the IRS on time. To date, the » City has not received any non-compliance notices from the IRS. ~ 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. X The utility provides training opportunities to staff as needed and available. Xx &% KR Xe Personnel System Comments: The City of Larsen Bay has a posted workers’ compensation insurance policy in effect from 7/1/08 to 7/1/09 with AML/JIA. 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. - 103 - July — August — September 2008 1 Quarter FY09 - RUBA Report Organizational Management Essential Indicators Yes No KK] 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. X The utility has an adequately trained manager. X The utility has an adequately trained bookkeeper. The utility has an adequately trained operator(s). Xx 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: Currently, five of the seven council seats are up for election. In the past year the city council has had three council members resign, which has caused inconsistency and lack of enforcement of city policy. Although the city clerk is new, she has shown great improvement over the last onsite visit. Her consistency is an asset to the city office. It is critical that the council supports the clerk in pursuing collections. The current utility operator is trained but has not passed the certification test. Operation of Utility Essential Indicators Yes No Xx The utility operator(s) are actively working towards necessary certification. X The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators X] The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. &] The utility has a safety manual and holds safety meetings. X Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. XX] The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. Xi Rw - 104 - July — August — September 2008 1° Quarter FY09 - RUBA Report 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 continue to work with the community to meet all of the unmet management indicators. - 105 - July — August — September 2008 1° Quarter FY09 - RUBA Report - 106 - July — August — September 2008 1° Quarter FY09 - RUBA Report Nanwalek Activity Report Community Overview Lead RUBA Staff: Tammy Helms, Anchorage Office 2007 Population: 222 Region: Kenai Peninsula Local Governments: Tribal 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 On September 30, 2008 Anchorage RUBA staff along with Steve Evavold, Remote Maintenance Worker (RMW) and ANTHC staff traveled to Nanwalek to complete a RUBA assessment. -107- July — August — September 2008 1° Quarter FY09 - RUBA Report Capacity Indicators Finances Essential Indicators Yes X ® xX No v4 & Ww 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 RRR 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: Currently, the Nanwalek IRA Tribal Council is operating without a FY09 budget. The bookkeeper stated that he was waiting to see what federal programs might be cut before he started drafting the FY09 budget for the Council. He also stated it could take up to five months to find out what cut backs would take place. Because there is no budget, the bookkeeper is not able to present a budget vs. actual report to the council. Although the bookkeeper did state he does prepare and submit to the council a profit and loss by class report. The Housing Authority manages the fuel sales for the community. The bulk fuel facilities consist of a 24,000 gal. diesel tank and a 12,000 gal. gas tank, which are kept with an adequate supply of fuel year round. Nanwalek IRA Tribal Council receives IHS funds by-passed through Chugachmiut. The Tribe uses those funds to subsidize the water and sewer enterprise. The bookkeeper provided profit and loss reports that identified sufficient income to cover operating expenses for the utility. - 108 - July — August — September 2008 1" Quarter FY09 - RUBA Report Accounting Systems Essential Indicators Yes No Kl The utility has adopted a collection policy and actively follows it. X= The utility bills customers on a regular basis. XX An accounts receivable system is in place which 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 Xl A cash receipt system is in place that records incoming money and what it was for. Xl The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators 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. RR Accounting System Comments: The Tribe has an adopted collection policy but does not actively follow it. Although not all of the homes have curb stops that allow disconnection, some of the homes do and are not being disconnected for non-payment. Until recently, customers were being billed by the ANTHC billing program. Due to lack of payments, ANTHC discontinued the service and customers have not been billed since that time. However, a few customers continued to pay monthly and those payments were tracked through the QuickBooks accounting system that the Tribe utilizes. This system is used for both accounts receivable and accounts payable. When supplies are needed for the utility, the operator notifies the bookkeeper then submits a check request to the administrator, who in turn either approves or denies the request. Any purchase exceeding $5,000 must be pre-approved by the council. Tax Problems Essential Indicators Yes No X The utility has a system to accurately calculate, track, and report payroll tax liabilities. Xi The utility is current on filing tax reports. Xi The utility is current on making tax deposits. ® If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The Tribe has signed a tax release form; the IRS and DOL responded that the tribe is currently compliant with all reports and deposits. All payroll is calculated, tracked and payroll tax liabilities reports are done through QuickBooks. - 109- July — August — September 2008 1° Quarter FY09 - RUBA Report Personnel System Essential Indicators Yes No & The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators &X The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. 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. xX wk wR Personnel System Comments: The Nanwalek IRA Tribal Council has a posted workers compensation insurance policy in effect from 3/21/08 to 3/21/09 with Liberty Northwest Insurance Corporation. The Tribe reports that they follow their written personnel policy closely. They are currently updating and revising the written job descriptions for all positions within the Tribe. 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. 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. RX The policy making body is active in policy making of the utility. XX The policy making body enforces utility policy. x The utility has an adequately trained manager. X The utility has an adequately trained bookkeeper. & The utility has an adequately trained operator(s). & The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators Xl The utility has adopted an organizational chart that reflects the current structure. x The policy making body meets as required. X The utility complies with the open meeting act for all meetings. - 110- July — August — September 2008 1" Quarter FY09 - RUBA Report Organizational Management Comments: The council meets monthly and is active in policymaking, although it is not always active in enforcing the policy. The bookkeeper was the prior utility operator and 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 Tribe does not have a certificated utility operator, although the current operator is trained to competently run the water system. The system is rated by the State of Alaska as a level 2 plant. Due to the hour requirements that a level 2 operator must submit to obtain that certification, Nanwalek can not afford to pay the operator to meet the requirements. The utility has adopted an ordinance that authorizes it to operate. They have also received their Provisional Certificate from the Regulatory Commission of Alaska, however, Tribal staff members were not aware that the water and sewer ordinance existed. Operation of Utility Essential Indicators Yes No X The utility operator(s) are actively working towards necessary certification. X The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. &X The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/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. &X The utility maintains an inventory control list. &] The utility maintains a critical spare parts list. KX & Operation of Utility Comments: The Nanwalek IRA Tribal Council has applied for and has received their RCA Provisional Certification. In speaking with the Remote Maintenance Worker, Steve Evavold of Village Safe Water, there is a preventative maintenance plan for the existing system. The utility operator reports verbally to the Tribal Administrator when there is a problem, she can foresee one, or to report the system is running well. A last copy of a CCR was completed for 2006 with the help of ANTHC. The utility does not meet all required drinking water regulations. The Tribe is currently on the 8/8/08 SNC list for Stage one violations and monitoring violations for SWTR. The utility operator and Council try to keep needed critical spare parts on hand but supplies and parts are not recorded on a written list. RUBA Activities For The Coming Quarter RUBA staff will continue to work with the Nanwalek IRA Council as requested to assist them in meeting all of the unmet management indicators. -1il- July — August — September 2008 1 Quarter FY09 - RUBA Report July — August — September 2008 1° Quarter FY09 - RUBA Report Nondalton Activity Report Community Overview Lead RUBA Staff: Tammy Helms, Anchorage Office 2007 Population: 196 Region: Alaska Peninsula Local Governments: 2™ Class City od The City of Nondalton operates the piped water and sewer “Ae ! : : ’ . Phen, oe AP 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 |1 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 The City of Nondalton has contracted with a Certified Public Accountant to assist the community's bookkeeper to maintain the accounting records and to ensure compliance with grants and payroll reporting requirements on an ongoing basis. The CPA is training the bookkeeper in the use of the QuickBooks accounting program. Earlier inconsistencies in the accounting records and reports have been resolved and an employer's notice of insurance has been provided to document the City's renewed workers! compensation insurance coverage. The City of Nondalton currently meets all essential management indicators. -113- July — August — September 2008 1" Quarter FY09 - RUBA Report Capacity Indicators Finances Essential Indicators Yes . & Wkdd 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. 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 xX y The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. YTD revenues are at a level equal to or above those budgeted. YTD expenditures are at a level equal to or below those budgeted. A monthly manager’s report is prepared. Budget amendments are completed and adopted as necessary. Finances Comments: A balanced and realistic budget for FY09 was adopted by the city council June 10, 2008 which includes an R and R expense line item. A Certified Public Accountant has been hired to maintain the financial records and train the community's bookkeeper. Financial reports are created using QuickBooks that compare month-to-date and year-to-date expense and revenue information with budgeted amounts. Accounting Systems Essential Indicators Yes & 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. Xx An accounts payable system is in place. X The payroll system correctly calculates payroll and keeps records xl A cash receipt system is in place that records incoming money and what it was for. The utility has a cash disbursement system that records how money was spent. n = w co Hee ainable Indicators A chart of accounts is used that identifies categories in a reasonable, usable manner. Monthly bank reconciliation’s have been completed for all utility accounts. The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. - 114- July — August — September 2008 I Quarter FY09 - RUBA Report 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 QuickBooks Pro 2007 version accounting software is used and the manual NEBS receipt system is also being used to document customer payments. The City's chart of accounts is set up through the 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. Tax Problems Essential Indicators Yes No X The utility has a system to accurately calculate, track, and report payroll tax liabilities. X The utility is current on filing tax reports. ® The utility is current on making tax deposits. X If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The IRS reported on May 13, 2008 that the City of Nondalton is current with federal payroll tax report and deposit requirements. The City of Nondalton is also compliant with the State of Alaska Quarterly Contributions reports. 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. &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. 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. Personnel System Comments: The City of Nondalton has a current Workers Compensation policy that is effective through June 30, 2009. The City utilizes a personnel policy that was previously reviewed by DCCED; job descriptions are written and all personnel files are neatly organized and contain the required documentation. New hires have a probationary period and employees are given the opportunity to travel for training as needed. -115- July — August — September 2008 1° Quarter FY09 - RUBA Report Organizational Management Essential Indicators Yes No The entity that owns the utility is known and the entity that will operate the utility is set. The policy making body is active in policy making of the utility. The policy making body enforces utility policy. The utility has an adequately trained manager. The utility has an adequately trained bookkeeper. The utility has an adequately trained operator(s). The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators ® The utility has adopted an organizational chart that reflects the current structure. X) The policy making body meets as required. &X The utility complies with the open meeting act for all meetings. RWRRKRE Organizational Management Comments: The City of Nondalton is the owner of the utility. The decision making authority and enforcement of the utility policy is vested in the council. The city administrator has oversight of the utility and maintains the books for the utility with the assistance of a Certified Public Accountant. The mayor and the water plant operator see that the day to day duties of the plant are performed and defer all of the administrative duties to the city administrator. In the past, the City of Nondalton struggled with collection of payments from its customers. A creative seasonal strategy was implemented where customers with no source of income or alternative method of payment agree 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 plan is successful in helping to collect past due utility balances, but absorbing the insurance costs and employment taxes means additional expense to the City. To limit the additional expense, the plan should be used only for paying off past due amounts. - 116- July — August — September 2008 1° Quarter FY09 - RUBA Report Operation of Utility Essential Indicators Yes No xX The utility operator(s) are actively working towards necessary certification. &X The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Consumer Confidence Report (CCR). &X 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 WORKER 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 that have the following certifications: Water Treatment Provisional Water Distribution OIT x 2 Water Treatment OIT x 2. The utility is currently on the Significant Non- Complier List for violating the MCL for arsenic. The utility maintains an inventory control list and a critical spare parts list is prepared and on file. RUBA Activities For The Coming Quarter RUBA staff will monitor financial reports and provide assistance as requested. -1W17- July — August — September 2008 1" Quarter FY09 - RUBA Report - 118 - July — August — September 2008 1° Quarter FY09 - RUBA Report ———— eee EE ROD A Report Pitka’s Point Activity Report Community Overview Lead RUBA Staff: Flora Olrun, Bethel Office 2007 Population: 103 Region: Lower Yukon Local Governments: Tribal Council of Water is supplied by a small stream and infiltration gallery. Residents haul treated water from the washeteria and use honey buckets. 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 Pitka's Point passed all essential indicators. Their 2008 budget is on file. The last monthly financial report submitted to the Bethel regional office was for the month ending August, 2008. They are currently on the Environmental Protection Agency's Significant Non-Compliance list. If they continue to meet requirements, they should return to compliance within six months. IRS found Pitka's Point Village Council to be compliant with all reports, tax payments and there are no outstanding federal tax liens. Worker's compensation insurance is valid through April 6, 2009 and is provided by Liberty Northwest Insurance Corporation. -119- July — August — September 2008 1 Quarter FY09 - RUBA Report Capacity Indicators Finances Yes No &X All revenue and expenses for the utility are listed in the utility budget. x The utility has adopted a balanced realistic budget. X Monthly financial reports are prepared and submitted to the policy making body. & The utility is current in paying all water/wastewater electric bills. X The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. RX 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. X YTD expenditures are at a level equal to or below those budgeted. &X A monthly manager’s report is prepared. X Budget amendments are completed and adopted as necessary. Finances Comments: The tribal administrator's position is vacant. The bookkeeper and utility operator have taken on the administrator's responsibilities and have done a good job keeping the accounting records current and the required reports up to date. The council uses the calendar year for their fiscal year and has an adopted FY08 budget. The budget is realistic and covers operating and repair costs. Their utility, Safewater, is subsidized with discretionary funds from the general fund. They submitted their monthly financial statement for the month ending August, 2008. The utility is current on water/wastewater electric bills and is subsidized from the general fund. 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 road, so they have no need to store a huge amount of heating fuel and only purchase enough to fill their 500 gallon tank. They recently purchased 100 gallons which cost $7.03 per gallon. Monthly reports to the council are verbal. - 120- July — August — September 2008 1" Quarter FY09 - 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. XXX HX 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 is on file. Bank accounts for the 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. &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 utility is currently in compliance with 941 quarterly reports with IRS and state reporting. A copy of the Authorization to Request Federal Tax Information dated 7/16/08 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 State of Alaska, Department of Labor reported that Pitka's Point is compliant with employment security taxes. -121- July — August — September 2008 1 Quarter FY09 - RUBA Report Personnel System Essential Indicators Yes No &X The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators & X xX Xl The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. The utility provides training opportunities to staff as needed and available. Personnel System Comments: Worker's compensation insurance is in effect through April 6, 2009 with Liberty Northwest Insurance Company. A draft personnel policy which contains language for the hiring process, probation period and evaluation of employees is on file. The personnel policy has to be approved by the council. Job descriptions for the tribal administrator, tribal clerk, bookkeeper, maintenance worker, custodial worker and maintenance man (public works director) are on file. Evaluations have not been done for employees but their files contain I-9s and are complete. July — August — September 2008 1° Quarter FY09 - RUBA Report Luly — august September “ON Qeaarter FY09 - RUBA Report Organizational Management Essential Indicators Yes No xX 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. X The utility has an adequately trained bookkeeper. X The utility has an adequately trained operator(s). Xi The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate, Sustainable Indicators Xl i XI The utility has adopted an organizational chart that reflects the current structure. The policy making body meets as required. The utility complies with the open meeting act for all meetings. Organizational Management Comments: The Bethel regional office has on file a water and sewer utility ordinance for Pitka's Point. The Pitka's Point Traditional Council meets monthly and is active in policy making for the utility. The tribal administrator's position is currently vacant but the bookkeeper and utility worker have successfully kept accounting records and required reports up to date. 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. 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. The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators X k% & X XRROR Xi The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. - 123 - July — August — September 2008 1 Quarter FY09 - RUBA Report Operation of Utility Comments: The water treatment plant operator has successfully attended past training and will attend additional sessions when they become available. The Bethel file contains a sample of their daily preventative maintenance check list and water data sheet. The tribal council receives written operations and maintenance information and monthly reports from the utility operator. They do have a safety manual but have 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. The tribal administrator's position is vacant and all utility reports are given directly to the council. Their latest consumer confidence report dated 2007 is on file. They are currently on the Department of Environmental Protection Agency's SNC list. If they meet reporting requirements, they should return to compliance within 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. RUBA staff will continue to work with Pitka's Point on correcting deficient sustainable indicators. - 124- July — August — September 2008 I Quarter FY09 - RUBA Report Port Heiden Native Council Activity Report Community Overview Lead RUBA Staff: Julie Dirks, Anchorage Office 2007 Population: 87 Region: Alaska Peninsula Local Governments: 2™ Class City of Individual wells and septic tank systems are used by most homes in Port Heiden. The school operates its own well and treatment system. 31 of 37 occupied households are fully plumbed. The City currently provides septic pumping services, and collects refuse three times a week. The landfill is located 6.5 miles northeast of the community. A VSW project is underway that is replacing septic tanks, and a new septic pumper truck is to be purchased and operated by the tribal council, replacing the service previously offered by the city. Another VSW grant will provide funds to construction washeteria. RUBA Activity This Reporting Period A visit was made to Port Heiden and a RUBA assessment done in September, 2008. The Native Village of Port Heiden has no experience operating a utility but plans to operate a new washeteria as an enterprise. Since they have no experience operating a utility, not all the requested documentation was available. The draft assessment has been submitted to the village and will be finalized during the next quarter. It has been recommended that the Native Village of Port Heiden prepared a business plan for operating the washeteria that addresses the essential and sustainable capacity indicators. -125- July — August — September 2008 I Quarter FY09 - RUBA Report Capacity Indicators Finances Yes No XX All revenue and expenses for the utility are listed in the utility budget. XX] The utility has adopted a balanced realistic budget. XX Monthly financial reports are prepared and submitted to the policy making body. 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. Kd = 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. 4 X X YTD revenues are at a level equal to or above those budgeted. X YTD expenditures are at a level equal to or below those budgeted. & A monthly manager’s report is prepared. X Budget amendments are completed and adopted as necessary. Finances Comments: The Native Village of Port Heiden manages 34 funds that include funds from BIA, EPA, IHS, States of Alaska and other sources. The QuickBooks classes feature is used to track financial activity and payroll. Accounting Systems Essential Indicators Yes No & The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. & An accounts receivable system is in place which tracks customers and reports past due accounts and amounts. An accounts payable system is in place. The payroll system correctly calculates payroll and keeps records A cash receipt system is in place that records incoming money and what it was for. The utility has a cash disbursement system that records how money was spent. RRR Sustainable Indicators Xl) A chart of accounts is used that identifies categories in a reasonable, usable manner. Xl Monthly bank reconciliation’s have been completed for all utility accounts. X The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. Accounting System Comments: The tribe does not presently operate any utilities in the community. However, a utility ordinance was adopted by the tribe for a sewage disposal utility that ended up being operated by the City. The ordinance contains information about collections, fees to be charged, etc. Information was requested about the NVPH accounts receivable system but no response has been received as yet. The NVPH used QuickBooks to track revenue and expendituress for 34 funds. - 126- July — August — September 2008 1° Quarter FY09 - RUBA Report Tax Problems Essential Indicators Yes No Xx The utility has a system to accurately calculate, track, and report payroll tax liabilities. Xl The utility is current on filing tax reports. X The utility is current on making tax deposits. xX If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The NVPH is in compliance with federal and state tax reporting and deposits. Personnel System Essential Indicators Yes No &l The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators & (1 The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. KK] The utility has adequate written job descriptions for all positions. &] The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. ® The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. 1 The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. & The utility provides training opportunities to staff as needed and available. Xl Personnel System Comments: The NVPH has a Native preference policy in place that gives priority to Alaska Natives when filling positions. The Native preference in hiring is not allowed to be exercised when filling positions funded by the VSW program. Positions are advertised for a minimum of ten days. The tribal council appoints employees, though they may delegate this responsibility. There is no mention in the policies of a personnel evaluation process. -127- July — August — September 2008 1 Quarter FY09 - RUBA Report Organizational Management Essential Indicators Yes No &X The entity that owns the utility is known and the entity that will operate the utility is set. & The policy making body is active in policy making of the utility. XJ 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). {The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators X The utility has adopted an organizational chart that reflects the current structure. Xl The policy making body meets as required. Xl The utility complies with the open meeting act for all meetings. Organizational Management Comments: The NVPH Council meets once monthly except during the summer months when all council members fish commercially. The tribal entity is active and known in the community. Administrative staff have demonstrated they can effectively manage tribal grants, contracts, and facilities. Operation of Utility Essential Indicators Yes No & 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 XXXXRH kM Operation of Utility Comments: The NVPH currently has no experience operating utilities. RUBA Activities For The Coming Quarter The draft RUBA assessment will be finalized in October. RUBA staff will provide assistance as requested by phone, fax, and e-mail to meet capacity indicators. City of Port Heiden staff on items that were requested to complete the assessment up-date. - 128- July — August — September 2008 1° Quarter FY09 - RUBA Report Saint Mary’s Activity Report Community Overview Lead RUBA Staff: Flora Olrun, Bethel Office 2007 Population: 549 Region: Lower Yukon Local Governments: 1* Class City od 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 honey buckets; the City provides hauling services. 20 new HUD houses were recently connected to the system. A new honey bucket disposal site is under construction. Funds have been requested to repair plumbing in 40 older homes, and to study replacement of the failing 30-year-old water and sewer mains. A washeteria is available nearby at Pitka's Point. The landfill must be relocated. RUBA Activity This Quarter Documentation was received and is on file in the Bethel regional office to support the RUBA findings listed below. The City of Saint Mary's has met all of the essential capacity indicators and a majority of the sustainable ones. They are fortunate in having a very well trained stable staff. -129- July — August — September 2008 I Quarter FY09 - 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. &l 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. Xl The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses, Sustainable Indicators xX The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. Xl YTD revenues are at a level equal to or above those budgeted. x) YTD expenditures are at a level equal to or below those budgeted. X A monthly manager’s report is prepared. & Budget amendments are completed and adopted as necessary. Finances Comments: A budget for fiscal year 2009 was submitted for the St. Mary's file located in the Bethel regional office. The budget had been enacted by the City of St. Mary's Council on May 21, 2008. Part of the budget included revenues and expenses for the Freshwater and Wastewater Utility Systems, Solid Waste Collection and Disposal. The budget is balanced and realistic and contains a line item for repairs and maintenance. The utility is current on all water and wastewater electric bills. When it is needed, the City of St. Mary's subsidizes the utility services with income from the general fund, specifically from gravel haul services and equipment rental income. The City purchases fuel from Crowley who has a fuel distribution tank farm located in St. Mary's. The City orders fuel twice a year, spring and fall. The last purchase was for 4,000 gallons of unleaded gas, and 20,000 gallons of heating fuel. The latest monthly financial report is on a year-to-date basis. The last monthly report on file in the Bethel regional office is for the month ending August, 2008. The need to make budget amendments is rare due to the fact that the budget is developed based on last years income and revenues. Under ordinance, the city manager is allowed to transfer ten percent of funds between departments without council approval. - 130- July — August — September 2008 1 Quarter FY09 - 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. KXXXR kM a Hee Accounting Comments: There is a collection policy located in the Code of Ordinances, Sections 2.13.50-2.13.65. A copy of the ordinance is in their file located in the Bethel regional office. A copy of a customer billing was provided, which is sent out on a monthly basis. The billing contains a forwarded balance, current billing for water, sewer and garbage collection separated into different line items. Past due sections for current amount due, 30 days, 60 days, 90 days and over 90 days past due are also included in the monthly statement. The city uses QuickBooks Pro for their accounting system. All accounts payable, receivable and payroll transactions are run through QuickBooks Pro. A copy of their chart of accounts was submitted to the Bethel regional office and is actively being used. A copy of a purchase order was submitted which reflects a pre-approval requirement for purchases. And a copy of their procurement policy, Chapter 4.05 was also submitted and placed in their file. Tax Problems Essential Indicators Yes No Xl The utility has a system to accurately calculate, track, and report payroll tax liabilities. x The utility is current on filing tax reports. x The utility is current on making tax deposits. X If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The IRS and Alaska Department of Labor deemed the City of St. Mary's compliant this quarter. - 131- July — August — September 2008 1° Quarter FY09 - RUBA Report Personnel System Essential Indicators Yes No XI The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators R 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. We The utility has an adequate written hiring process. ® The utility has personnel folders on every employee that contain at least: 1-9, Job Application and Letter of Acceptance. ® The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. &X The utility provides training opportunities to staff as needed and available. Personnel System Comments: The City of St. Mary's is insured by Alaska Municipal League Joint Insurance Association, Inc. through 7-1-2009. Proof of the workers compensation insurance coverage has been placed in their file located in Bethel regional office. The City has a personnel policy which was adopted in 1996 and needs to be reviewed and updated. Job descriptions for the following positions have been submitted: operator, water and sewer utilities and assistant operator for the water and sewer services. Copies of Ordinance Chapter 2.05, which stipulates powers, duties and responsibilities of the city clerk and city manager, were submitted. 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. St. Mary's recently experienced a vacancy with the bookkeeper’s position, but the city manager has hired a new person who will eventually need to attend training sessions when they become available. - 132- July — August — September 2008 1° Quarter FY09 - RUBA Report Seen eennyeeltst geese sangnsn ees met ininnan-nureeenesreone nent pain tenn Organizational Management Essential Indicators Yes No NHN NKKIK The entity that owns the utility is known and the entity that will operate the utility is set. The policy making body is active in policy making of the utility. The policy making body enforces utility policy. The utility has an adequately trained manager. The utility has an adequately trained bookkeeper. The utility has an adequately trained operator(s). The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators & w w The utility has adopted an organizational chart that reflects the current structure. The policy making body meets as required. The utility complies with the open meeting act for all meetings. Organizational Management Comments: The city council is active in policy making for the utility. The council meets monthly at which time they hear status and financial reports by the city manager for the utility services. The utility worker has been employed by the City of St. Mary's since 1998 and has training certificates as high as level four for water distribution. The city manager has attended college, taken accounting courses and worked for approximately two years for the City of St. Mary's. The City uses QuickBooks Pro for all departments. A copy of Ordinance 2.13 for the Division of Freshwater and Wastewater Utilities System is on file. The City currently has no adopted organizational chart. The city manager submitted a handwritten copy based on language from their ordinance. The city council meets monthly and complies with the open meetings act which is in compliance with their code of ordinances. Operation of Utility Essential Indicators The utility operator(s) are actively working towards necessary certification. The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators Yes No X x Xi Xl & & & & & & Xx The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. The utility has a safety manual and holds safety meetings. 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. - 133 - July — August — September 2008 1° Quarter FY09 - 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. A sample of their inventory control list and task description for the water and sewer system for 2007 and 2008 was submitted. It was not clear whether or not safety meetings had been held. Saint Mary's is not on the Significant Non-Complier list. Copies of their Consumer Confidence Report and critical spare parts list are on file in the Bethel regional office. RUBA Activities For The Coming Quarter The City of Saint Mary's has met all of the essential management capacity indicators. Bethel RUBA staff will continue to work with Saint Mary's to satisfy deficient sustainable indicators. - 134- July — August — September 2008 : 1 Quarter FY09 - RUBA Report a eS =o epremiben A Queaarter FY09 - RUBA Report Selawik Bay Activity Report Community Overview Lead RUBA Staff: Margaret Hansen, Kotzebue Office 2007 Population: 828 Region: Northwest Arctic Local Governments: 2™ Class City, od The community has piped water and sewer throughout “he the entire community now. 96% fully piped. Water plant Pm go 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 need to be implemented. RUBA Activity This Quarter Kotzebue RUBA staff plans to travel to Selawik in November to do a follow up assessment and draft a work plan between the City and RUBA outlining the goals and responsibilities of each party. RUBA staff was in contact with Alaska Municipal League/Joint Insurance Association (AML/JIA), at the request of the City regarding a report of possible non-compliance. Selawik was having difficulties meeting insurance premiums but plans to pay it in full once the Permanent Fund Dividends arrive. The City of Selawik has paid their old fuel bill with their Community Revenue Sharing. - 135- July — August — September 2008 1° Quarter FY09 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No All revenue and expenses for the utility are listed in the utility budget. The utility has adopted a balanced realistic budget. Monthly financial reports are prepared and submitted to the policy making body. XX] The utility is current in paying all water/wastewater electric bills. The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. XK] The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators &X] The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. & YTD revenues are at a level equal to or above those budgeted. & YTD expenditures are at a level equal to or below those budgeted. &X A monthly manager’s report is prepared. X Budget amendments are completed and adopted as necessary. KKK X Finances Comments: The City owes AVEC for past due electric bills from last winter but is scheduled to pay that off this month. RUBA staff still has not received a copy of their Excel monthly financial report; information is transferred from QuickBooks to produce a report for the city council every month. 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. XXX Ne 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. - 136- July — August — September 2008 1 Quarter FY09 - RUBA Report Accounting Comments: The bookkeeper reported that only two homes were disconnected this summer; the rest assigned permanent dividends to the City and agreed to include the balance in prepayments this next year. 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. x The utility is current on making tax deposits. x If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The IRS has deemed Selawik in compliance at this time. The City is also in compliance with state tax liabilities. Personnel System Essential Indicators Yes No x The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators Xi The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. X The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. X The utility has an adequate written hiring process. X The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. X The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. X The utility provides training opportunities to staff as needed and available. Personnel System Comments: The City is in the process of updating their insurance and working out a payment plan. AML/JIA reports that they are waiting for the another payment from Selawik at this time. - 137- July — August — September 2008 1° Quarter FY09 - RUBA Report Organizational Management Essential Indicators Yes No x The entity that owns the utility is known and the entity that will operate the utility is set. xX 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 WNXKR xX 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: Utility policies have been enforced this last quarter. The council was reminded that in order to satisfy RUBA assessment indicators, collection policies need to be followed so that revenues can be collected timely. 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. 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 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 WORM - 138- July — August — September 2008 1° Quarter FY09 - RUBA Report Operation of Utility Comments: The system needs new hardware to resolve the violations that have caused them to be 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 the 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 RUBA staff plans to travel to Selawik to do a work plan and an assessment in November. - 139- July — August — September 2008 I“ Quarter FY09 - RUBA Report - 140 - July — August — September 2008 1° Quarter FY09 - RUBA Report Shageluk Activity Report Community Overview Lead RUBA Staff: Flora Olrun, Bethel Office 2007 Population: 118 Region: Yukon-Kuskokwim Delta Local Governments: 2" Class City Residents haul treated well water and dispose of honey buckets in pit privies or bunkers. Residents are dependent upon the washeteria for bathing, laundry, and water, since no homes are fully plumbed. HUD houses constructed in 1991 use pit privies. The City washeteria/water treatment plant provides water to the city office building, post office and clinic. The school is connected to the sewer pipes. A sanitation master plan has been completed and funds are needed to proceed with the design and engineering of a community system. RUBA Activity This Quarter Because of limited revenues, the City of Shageluk reduced their open hours to Mondays, Wednesdays, and Fridays and the council reduced the office staff to the administrator's position. Shageluk has submitted their 2009 budget but has to submit current monthly financial statements. They are not on the Environmental Protection Agency's Significant Non-Compliant List. -141- July — August — September 2008 1" Quarter FY09 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No Kl All revenue and expenses for the utility are listed in the utility budget. X The utility has adopted a balanced realistic budget. DX] Monthly financial reports are prepared and submitted to the policy making body. & The utility is current in paying all water/wastewater electric bills. & The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. &X] The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators X] The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. KX] YTD revenues are at a level equal to or above those budgeted. bX] YTD expenditures are at a level equal to or below those budgeted. X A monthly manager’s report is prepared. a) Budget amendments are completed and adopted as necessary. Finances Comments: The FY09 budget is on file. The last monthly financial report on file is for March 31, 2008. Because the monthly financial reports are not up to date, it can not be determined whether or not YTD revenues and expenditures are above or below the budget. Written financial reports and an outline for the manager's narrative report are placed in the meeting packets and given to council members prior to each council meeting. At the meeting, the administrator verbally updates the council on financial and other city issues. The utility is current on meeting payments for their outstanding electric bill. Fuel purchased was for 7,000 gallons and is waiting for additional revenues to cover the cost. The purchase is 3,000 gallons less than last summer's purchase of 10,000 gallons. Accounting Systems Essential Indicators Yes No XK The utility has adopted a collection policy and actively follows it. Xl The utility bills customers on a regular basis. x An accounts receivable system is in place which track customers and reports past due accounts and amounts. &X An accounts payable system is in place. &X The payroll system correctly calculates payroll and keeps records A cash receipt system is in place that records incoming money and what it was for. Xl The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators x A chart of accounts is used that identifies categories in a reasonable, usable manner. X Monthly bank reconciliation’s have been completed for all utility accounts. X The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. July — August — September 2008 1° Quarter FY09 - RUBA Report Accounting Comments: A copy of Shageluk's utility ordinance is on file in the Bethel regional office. The City does not have a water and sewer system in place to serve all residents. The school and the post office are billed on a monthly basis. The system for accounts payable and accounts receivable is in place and is done manually. The payroll system is done manually and has been adequate to meet their record keeping needs and to keep up to date with 941 tax reports. A chart of accounts has been developed and is used to track cash receipts and disbursements. Bank reconciliations are up to date. A purchase order form has been developed for the utility service workers and a copy is contained in the file. Tax Problems Essential Indicators Yes No XxX The utility has a system to accurately calculate, track, and report payroll tax liabilities. XX The utility is current on filing tax reports. xl The utility is current on making tax deposits. Xx If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: According to the last IRS report, the City of Shageluk is missing one 941 report for the third quarter of 2007. IRS has the payment for this quarter but does not have the completed report. A copy of the report has been forwarded to IRS from the City of Shageluk. Otherwise they are in compliance with all other filing and deposit requirements and have no liens. The State of Alaska, Department of Labor stated the * City of Shageluk is in compliance with employment security tax requirements. 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. Xi The utility has adequate written job descriptions for all positions. I The utility has adopted and follows a written personnel evaluation process that ties the job 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. Xie - 143 - July — August — September 2008 I Quarter FY09 - RUBA Report Personnel System Comments: Shageluk's workmen's compensation insurance is valid through 7/1/2009. Job descriptions for the utility workers are adequate and contained in the file. Since the new administrator has come on board, there have been no evaluations for the utility staff. Personnel folders are kept up to date with I-9's, job applications and completed personnel action forms. The utility worker is given adequate training opportunities when available. Organizational Management Essential Indicators Yes No The entity that owns the utility is known and the entity that will operate the utility is set. The policy making body is active in policy making of the utility. The policy making body enforces utility policy. The utility has an adequately trained manager. The utility has an adequately trained bookkeeper. The utility has an adequately trained operator(s). The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators The utility has adopted an organizational chart that reflects the current structure. & & The policy making body meets as required. XI The utility complies with the open meeting act for all meetings. XXXMXKX Organizational Management Comments: The entity is known and set and the council is active in policy making for the utility. The school receives sewer service, and evacuation service for the ten private homes that have privies is done ona prepaid basis. The council needs to ensure that the city administrator continues to maintain the billing system for the school. The administrator manages the utility services and maintains the accounting system. The office staff was reduced to the administrator's position and the open hours were reduced from five open days to three. The utility worker is adequately trained and experienced. Shageluk's utility ordinance is on file. An organizational chart that reflects the current structure is posted in the Shageluk office. The city council meets on a monthly basis and complies with the Open Meetings Act. -144- July — August — September 2008 1‘ Quarter FY09 - RUBA Report — Ee eee pore Operation of Utility Essential Indicators Yes Xd bs 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 RXRKK kx & &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: The utility operator has a Water Treatment and Distribution Provisional Certificate which expires on 12/31/09. Shageluk's preventative maintenance plan is contained under Chapter 2 of the Operations and Maintenance Manual. A written daily log is kept each day by the utility worker. He uses the forms from the Operations and Maintenance manual. In addition, he gives a monthly verbal report to the city council. Copies of the utility worker's maintenance check list and daily work report are contained in the Bethel regional office file. The 2007 annual water quality report is filed in the Bethel regional office and was prepared by Water Systems Services. A copy of Shageluk's safety policy is located in the Bethel regional office file. The utility is not on the Significant Non-Compliance list. Inventory control and critical spare parts lists are not being maintained. RUBA Activities For The Coming Quarter RUBA staff will continue to work with the City of Shageluk to satisfy deficient essential and sustainable indicators. - 145- July — August — September 2008 1° Quarter FY09 - RUBA Report - 146 - July — August — September 2008 1° Quarter FY09 - RUBA Report Sleetmute Activity Report Community Overview Lead RUBA Staff: Ken Berlin, Bethel Office 2007 Population: 92 Region: Yukon-Kuskokwim Delta Local Governments: Unincorporated od A new pumphouse with treated water and several “Ae pos individual wells are used in the community. Currently, ON, 21 homes, community hall, washeteria and the school are hooked to the new piped water and sewer system. There are nine homes with individual wells and septic tanks. There is a landfill site southeast of the airstrip. RUBA Activity This Quarter RUBA staff traveled to Sleetmute July 16, 2008 to conduct a RUBA assessment of management indicators. RUBA staff met with the Sleetmute Traditional Council administration and finance staff, which provided the necessary financial records and documentation needed to complete the assessment. The Sleetmute Traditional Council currently meets all essential management indicators. The administrative and finance staff have several years of experience and training and are competent. The 2008 calendar year budget is on file along with finance reports up to June. The tribal administrator resigned in August due to personal reasons and the position is still not filled. Finance reports are needed for July to September 2008. - 147- July — August — September 2008 1° Quarter FY09 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No xX All revenue and expenses for the utility are listed in the utility budget. & 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. 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 EX 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. {I A monthly manager’s report is prepared. &] Budget amendments are completed and adopted as necessary. Finances Comments: The council staff uses QuickBooks Pro as their accounting system. The bookkeeper was trained in using the QuickBooks Pro by Meridian consultant staff. The 2008 budget and finance reports up to June are on file. Finance reports for July to September have not been submitted. 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. MXkK KR Sustainable Indicators Xi A chart of accounts is used that identifies categories in a reasonable, usable manner. x) Monthly bank reconciliation’s have been completed for all utility accounts. & The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. - 148 - July — August — September 2008 1 Quarter FY09 - RUBA Report Accounting Comments: The council has adopted a water sewer collection policy for the community and council staff said the policy is followed. The council staff uses the QuickBooks program and all accounting information is entered into the computer. RUBA staff was provided a copy of a QuickBooks back-up for review. Tax Problems Essential Indicators Yes No Xl The utility has a system to accurately calculate, track, and report payroll tax liabilities. Xl The utility is current on filing tax reports. 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: Sleetmute Traditional Council was deemed compliant by IRS on July 21, 2008. Personnel System Essential Indicators Yes No Xl The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators i The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. 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. 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. ® The utility provides training opportunities to staff as needed and available. Personnel System Comments: Workers Compensation Insurance is provide by Alaska National Insurance Company effective 10/07 to 10/08. - 149- July — August — September 2008 1° Quarter FY09 - RUBA Report Organizational Management Essential Indicators Yes No The entity that owns the utility is known and the entity that will operate the utility is set. The policy making body is active in policy making of the utility. The policy making body enforces utility policy. & The utility has an adequately trained manager. [J The utility has an adequately trained bookkeeper. The utility has an adequately trained operator(s). The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators MXRORMN Xi The utility has adopted an organizational chart that reflects the current structure. Xl The policy making body meets as required. X The utility complies with the open meeting act for all meetings. Organizational Management Comments: Sleetmute Traditional Council operates and owns the utility. The policy making body is active and all the pertinent policies are in place. All the policies are being enforced. The manager's position is vacant. The bookkeeper and operators are all trained. 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 Xl The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. R The utility has a safety manual and holds safety meetings. X Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. x The utility is operating at the level of service that was proposed. X The operator provides status reports to the manager on a routine basis. xl The utility has completed and distributed its Community Confidence Report (CCR). KX The utility is not on the Significant Non-Compliance (SNC) list. x The utility maintains an inventory control list. X The utility maintains a critical spare parts list. Operation of Utility Comments: The main operator is certified and competent in his work. SNC lists nitrate violation for 2007 and Ist quarter 2008. Last stage | violation December 2007 for failing to report DS CI residual level M and R at same time and place as monthly bacti. - 150- July — August — September 2008 1° Quarter FY09 - RUBA Report RUBA Activities For The Coming Quarter RUBA staff will continue monitoring monthly finance reports, other documents, and address and work on SNC violations. - 151 - July — August — September 2008 1° Quarter FY09 - RUBA Report July — August — September 2008 1 Quarter FY09 - RUBA Report eee ese oO Tuluksak Activity Report Community Overview Lead RUBA Staff: Hazel Keezer, Bethel Office 2007 Population: 466 Region: Lower Kuskokwim Local Governments: Tribal Council ad “Re we The tribal council operates the washeteria, water No etme, OP 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 the Native Community of Tuluksak to conduct a RUBA management assessment. Essential indicators in the areas of Finances and Taxes were found to be deficient. - 153 - July — August — September 2008 I‘ Quarter FY09 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No XX] All revenue and expenses for the utility are listed in the utility budget. XX The utility has adopted a balanced realistic budget. XX Monthly financial reports are prepared and submitted to the policy making body. x The utility is current in paying all water/wastewater electric bills. x The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. XX] 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. KI YTD revenues are at a level equal to or above those budgeted. XX] YTD expenditures are at a level equal to or below those budgeted. {&] A monthly manager’s report is prepared. &X] Budget amendments are completed and adopted as necessary. Finances Comments: Changes had to be made to the utility's budget. Tuluksak's contracted Certified Public Account entered operating revenues received from the local school district for the water plant. The council reviewed and adopted the amended changes; however, the budget is incomplete. Operating expenditures for each department have not been entered. Tuluksak has an adequate financial plan for purchase of a fuel supply to run the utility. A manager's monthly report or meeting minutes have not been provided. It is unknown if reports are given verbally or documented in the council's meeting minutes. Accounting Systems Essential Indicators Yes No The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. An accounts receivable system is in place which track customers and reports past due accounts and amounts. An accounts payable system is in place. The payroll system correctly calculates payroll and keeps records A cash receipt system is in place that records incoming money and what it was for. The Utility has a cash disbursement system that records how money was spent. stainable Indicators A chart of accounts is used that identifies categories in a reasonable, usable manner. Monthly bank reconciliation’s have been completed for all utility accounts. The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. Xk HM n i] o Xe - 154- July — August — September 2008 1 Quarter FY09 - RUBA Report Accounting System Comments: A billing system is set up with individual household accounts. Billings are done on a monthly basis for the sewer haul. Utilities and sewage haul ordinances have been adopted by the tribe and letters are sent to Tuluksak residents enforcing the collection of sewer haul fees. All accounting and billings are done with QuickBooks Pro. Their payroll tax calculations are done through QuickBooks Pro. When making purchase orders, the purchase order is filled out, the bookkeeper checks it against the budget, and then it is submitted to the administrator for approval. Tax Problems Essential Indicators Yes No QR The utility has a system to accurately calculate, track, and report payroll tax liabilities. XI The utility is current on filing tax reports. & The utility is current on making tax deposits. XX] Ifthere are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: Payroll tax calculations are completed using QuickBooks Pro accounting software. Information from the Taxpayer Advocate that was provided showed that Tuluksak Native Community owed federal taxes for 1st qtr of 2008 and that they liad not filed the 941 quarterly report for the 2nd qtr 2008. RUBA , discussed this with the tribe's contracted accountant who indicated the problems were resolved. RUBA _ staff will resubmit a release for updated information. : 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. EX 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. ® The utility provides training opportunities to staff as needed and available. kX kw Personnel System Comments: Tuluksak has insurance coverage through Umialik Insurance Co. effective 5/08 to 5/09. The Tribe provided a copy of the Personnel Policy and Procedures manual with job descriptions. Tribal members that are residents are considered for first employment preference. There is a formal written hiring process and a 90 day probationary period. There were no personnel folders to view. The utility provides training to its employees when funds are available. - 155 - July — August — September 2008 I Quarter FY09 - RUBA Report Organizational Management Essential Indicators Yes No The entity that owns the utility is known and the entity that will operate the utility is set. The policy making body is active in policy making of the utility. The policy making body enforces utility policy. The utility has an adequately trained manager. The utility has an adequately trained bookkeeper. The utility has an adequately trained operator(s). The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators WHNKRRR & The utility has adopted an organizational chart that reflects the current structure. Xl The policy making body meets as required. X The utility complies with the open meeting act for all meetings. Organizational Management Comments: There are now two sets of utility ordinances. One is adopted for the sewer haul system. The second is a two part ordinance in anticipation of a piped water and sewer system and was signed by the council on December 31, 2007. The first part of the ordinance establishes a utility board and the second part is for the utility procedures. An ordinance authorizing the implementation of a sewage haul collection fee was adopted on June 20, 2006. The tribal administrator worked with a federal grant program before taking on the position in January of 2008. The bookkeeper is proficient in QuickBooks. The City has three operators with certifications for water treatment Operator in Training (OIT) and water distribution OIT. The lead operator has boiler maintenance training. Operation of Utility Essential Indicators Yes No A) The utility operator(s) are actively working towards necessary certification. y The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators Xd The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. Xk we Xk - 156 - July — August — September 2008 1 Quarter FY09 - RUBA Report Operation of Utility Comments: The utility is on the Significant Non-Complier list with the last violation occurring in May 2008 for lack of DS Cl residual MR same time/place as monthly bacti, although TCR samples are consistently submitted. A copy of the preventive maintenance was provided. Verbal accounts of the operation are given to the manager on a day to day basis. If an emergency arises, the administrator is contacted immediately. The lead operator normally meets monthly with his staff to discuss utility issues and safety; however, the operators did not meet in September due to moose hunting season. A copy of the CCR was completed in June of 2008. The water operator does not have an inventory control list or a critical spare parts list. RUBA Activities For The Coming Quarter RUBA staff is available to provide assistance with any management capacity indicators that are not being met. - 157- July - August — September 2008 1° Quarter FY09 - RUBA Report Lay = August ~ sepremBer 20C8 TL Queaarter FY09 - RUBA Report - 158 - July — August — September 2008 1 Quarter FY09 - RUBA Report Non-RUBA Communities Adak John Nickels, LGS/RUBA, Anchorage Office The City of Adak currently does not meet all RUBA essential management indicators. A fuel crisis that began in June has continued through the summer and still remains unresolved. The City of Adak owes over $500,000 for fuel expense to Aleut Enterprises LLC and has been unable to pay, causing the fuel supplier to refuse further fuel deliveries. Part of the reason the City cannot pay is because the utility's largest customer, Adak Fisheries, has not paid what it owes for past due utility billings. The City has failed to follow the collection policy despite recommendations by DCRA staff numerous times since a management assessment was conducted in 2006. In early September, the community resorted to a power schedule whereby power was turned on only a couple of times each day for a few hours to stretch a very limited fuel supply. There have been health and welfare issues expressed by the local clinic and the Aleutian Region School District has been severely impacted in its ability to deliver education and fears the loss of teaching personnel. There are safety concerns regarding the airport and the reliability of airport lights and navigation aids. With only a few days of fuel remaining, Aleut Enterprises informed DCRA staff that on September 16, the City of Adak and the fuel supplier, Aleut Enterprises, reached an agreement. Five thousand gallons of fuel were supplied to the City while other options to resolve the problem are explored, including financial assistance from state agencies or operation of the electric utility by some other entity. The city clerk, city manager, and a council member all resigned their positions shortly after the September 16 meeting. A temporary clerk is filling in until a permanent replacement can be hired. In the mayor's absence, the vice mayor has been filling in for the manager. In addition to the collections issue, a budget for FY09 was submitted to DCRA that had apparently been adopted by the council without proper notice for a public hearing. The City was notified of the error and instructed in how to properly adopt the budget. Akiachak Ken Berlin, LGS/RUBA, Bethel Regional Office On August 19, 2008 RUBA staff traveled to Akiachak and updated the RUBA management report. All the essential indicators were met except for: finance reports for the washeteria and garbage collection utility departments and unpaid payroll taxes in the first quarter of 2008. The Yupit School District (YSD) and the Akiachak Native Community (ANC) signed a new water and sewer contract in which the'YSD will pay $35,000 per quarter. The ANC offices moved into their new office building in June 2008 and are still in the process of moving files and other essential office supplies. Some services were disrupted for a while but are now returning to normal. A balanced 2008 budget was received in our office on 2/27/08. Monthly finance reports are up to date to July 2008. - 159 - July — August — September 2008 1° Quarter FY09 - RUBA Report Anaktuvuk Pass Jeremy Johnson, LGS/RUBA, Fairbanks Regional Office Anchorage and Fairbanks staff traveled to Anaktuvuk Pass August 25, 2008 at the request of the mayor to meet with and provide elections training to the new city clerk. The city council is responsible for management of the utility services in Anaktuvuk Pass. RUBA staff reviewed the election calendar with the clerk, which was compared to the local ordinances and modified accordingly to establish a correct time line of duties to accomplish. The calendar then served as a training outline of topics to cover which included types of public notice for voter registration, candidacy requirements, absentee ballot requests, ballot preparation, and canvass board meeting. As items were discussed, the topic matter was cross referenced in both local ordinance and state statutes. RUBA staff also reviewed the community’s election files and identified needed forms and training materials for the clerk to review. RUBA staff also toured the water and wastewater plants and took pictures of local infrastructure for the community data base. Angoon Lawrence Blood, LGS/RUBA, Juneau Regional Office In past quarters, Angoon has made notable progress towards addressing deficient essential indicators, however, during first Quarter FY-09, there was little additional improvement. The Mayor was largely unavailable throughout the summer which curtailed community visits and further work towards addressing deficient essential indicators. RUBA staff has been in communication with City staff and provided telephonic assistance. The RUBA program provided a travel scholarship for the water operator to attend the annual AWWMA southeast training conference. Chuathbaluk Ken Berlin, LGS/RUBA, Bethel Regional Office Bethel RUBA staff traveled to Chuathbaluk August 27, 2008 to attend a joint meeting with the City of Chuathbaluk and the Chuathbaluk Traditional Council concerning a proposed Memorandum of Agreement (MOA) to contract City operations and services to the Traditional Council. The meeting was also attended by about 20 residents. Staff members went over the proposed MOA and answered questions from the residents in attendance. Another public meeting is scheduled for the end of September on the same subject. RUBA staff received faxed copies of the FY 2007 Certified Finance Statement, FY 2008 budget, which is balanced, and monthly finance reports up to July. The city administrative and finance staff are both competent and stable. The city manager for Chuathbaluk called with questions on how payroll is reported on the finance reports. RUBA staff reviewed the correct procedures and confirmed he was doing it right. - 160 - July — August — September 2008 1° Quarter FY09 - RUBA Report Elim Josie Bahnke, LGS/RUBA, Nome Regional Office On August 12, 2008, Nome RUBA staff traveled to Elim to provide an explanation of FY09 budget detail sheets to the city council and help with the completion of the FY07 Certified Financial Statement. Consultation was also provided to the council regarding organizational and personnel management issues. Nome staff presented a RUBA agreement for their consideration. By signing the agreement, the City will benefit from training and technical assistance provided by RUBA staff, and will increase management capacity to operate and maintain the water and sewer infrastructure. During the site visit, Nome staff assisted with job description revisions and computer assistance. On September 9, 2008, the city council approved the Mayor to sign a RUBA assistance agreement. This quarter, a local construction crew replaced sewer mains in partnership with the Alaska Native Tribal Health Consortium (ANTHC). The city clerk and bookkeeper resigned this quarter and have been replaced by new staff. Kasaan Lawrence Blood, LGS/RUBA, Juneau Regional Office At the request of the City, RUBA staff travel to the community July 21 - 23, 2008 to assist the Mayor with required financial reporting and drafting an FY09 budget. With this assistance, the City is presently satisfying all of the RUBA essential management indicators. Over the last quarter, the City has made a real effort to improve it's utility collections. The City submits supporting documentation on a quarterly basis consisting of monthly financial reports. The mayor and city clerk attended and completed a RUBA sponsored Organizational Management for Rural Utilities class in Thorne Bay August 11-15, 2008. Kobuk Margaret Hansen, LGS/RUBA, Kotzebue Regional Office RUBA staff was able to travel to Kobuk in July to provide on-site training and assistance with the FY 07 certified financial statement which was completed and qualified them to receive state revenue sharing. Kotzebue RUBA staff provided email, phone and fax assistance to the temporary utility manager and new administrator on calculating the new electric kwh and fuel surcharge rate to recover the increased cost of fuel. The City was also out of gas. RUBA reviewed their fuel account and discovered a check written from the general fund for the last fuel order was retumed for non-sufficient funds. Money was taken from the fuel account to purchase a cashiers check to order $23,000 (3,300 gallons) of gas. It was also noted that the City had been selling the fuel for the same price they paid. Koyukuk Leroy Seppilu, LGS/RUBA, Fairbanks Regional Office Fairbanks RUBA staff traveled to Koyukuk twice this quarter. The city barely managed to have its fuel order delivered at the last minute. The City ordered its fuel in August and submitted the loan paperwork to Alaska Energy Authority to borrow up to $131,000 to purchase fuel. The City has fuel sales and electric enterprises and also uses fuel for its washeteria and city office. The FY '09 budget was approved and passed in September. The washeteria still operates in the red as the fuel and electric expenses are not billed by the city-owned electric company. - 161- July — August — September 2008 1 Quarter FY09 - RUBA Report Se eee OE Manokotak Ralph Andrew, LGS/RUBA, Dillingham Regional Office RUBA maintained contact with city staff during the quarter in Manokotak as they worked to maintain satisfactory RUBA management assessment indicators. RUBA provided onsite support to city staff on topics including budgeting, financial reporting, and updated the RUBA assessment report on September 11-12, 2008. The City maintains contact with the Village Safe Water engineer assigned to the community. The City hired a new city clerk during the quarter. During RUBA's September visit, assistance was provided to the clerk on topics including municipal election planning. Manley Hot Springs Jeremy Johnson, LGS/RUBA, Fairbanks Regional Office RUBA staff Elizabeth Manfred and Jeremy Johnson traveled to Manley Hot Springs on July 30, 2008 to assist the Manley Hot Springs Community Association in reviewing, interpreting, and suggesting revision of their by-laws, articles of incorporation, and policies. There was confusion between association board members’ understanding of the guiding documents and the suggested corrections should assist streamlining and encouraging more productive meetings. There is discord between the community association and the Native Village of Manley, which has lead to a lack of information sharing between the two entities. A recent hiring issue concerning employment for the dump maintenance worker brought the misunderstandings to the surface and provided the impetus to seek outside assistance. The association asked for assistance in providing training on how to run effective meetings and asked that Jeremy Johnson, RUBA/LGS, return on September 25 to attend the annual meeting. Fairbanks staff returned to Manley Hot Springs on August 28 to attend a general membership meeting. Draft amendments to the Association’s by-laws and articles of incorporation were reviewed in preparation for adoption. RUBA staff pointed out an error in the proposed change to the by-laws that would have conflicted with the articles of incorporation and was contrary to what the association was trying to achieve. The language was reworded and the changes were adopted. The State of Alaska Revenue Sharing program funding application process was also on the agenda. RUBA staff was able to advise and assist in the proper completion of the forms. New Stuyahok Ralph Andrew, LGS/RUBA, Dillingham Regional Office RUBA traveled to New Stuyahok July 30, 2008 - August 1, 2008 to assist city staff with utility management and update the RUBA Assessment of Management Indicators, a special sanitation grant condition. City staff are presently working to resolve deficient RUBA assessment essential indicators. RUBA provided assistance to the city administrator and water operator with tasks including financial report assembly and budgeting during the quarter. In project-related matters, the City anticipates timely completion of the sewage lagoon renovation by fall 2008. Construction of the new public school and teacher housing continues. The school is expected to be ready for occupation by late 2008. Port Lions Tammy Helms LGS/RUBA, Anchorage Office RUBA staff traveled to Port Lions on September 25, 2008 to assist the city clerk in compiling financial information for and completing the FY 08 Certified Financial Statement. This statement is a required form for the City to be able to access state funding that will assist in the purchase of fuel. Upon the departure of RUBA staff the FY08 Certified Financial Statement was completed and ready for the city council's review. Port Lions continues to be a healthy community with stable reliable staff. The city clerk has become more confident in her role and in working within QuickBooks. - 162 - July — August — September 2008 1 Quarter FY09 - RUBA Report —_— — OEE ere Ore Shishmaref Karlin Itchoak, LGS/RUBA, Nome Regional Office RUBA staff has been in communication with the City of Shishmaref staff and council members throughout the quarter. The City of Shishmaref has paid all back taxes owed to the IRS for 2005. Congratulations to the City of Shishmaref for a job well done! The bookkeeper for the City of Shishmaref called Nome RUBA staff requesting a boiler-plate bulk fuel agreement. Nome RUBA staff faxed the bookkeeper a sample agreement and offered to assist in drafting an agreement for the City. RUBA staff also suggested including a contract term establishing a lease amount per gallon of fuel stored. In addition, Nome RUBA staff provided technical assistance via phone, fax, and e-mail this quarter to the city clerk, bookkeeper, and city treasurer. This included assistance with ordinance drafting, council member retention issues, sales tax questions, and mediation with the Army Corp. of Engineers. The City of Shishmaref meets all essential management indicators at this time. Teller Josie Bahnke, LGS/RUBA, Nome Regional Office Nome DCRA staff accompanied Internal Revenue Service (IRS) Collections Agent Janice Stowell, to the communities of Teller and Golovin this quarter. Nome staff works closely with the IRS to assist communities with payroll tax deposit and reporting compliance issues. In Teller, Nome and IRS staff assisted with the completion of form 941 for the first and second quarter of 2008. Unfortunately, the City did not make deposits during either quarter and will owe the IRS a considerable balance to return to compliance. In Golovin, Nome staff assisted with the completion of form 941 for second quarter 2008. Completing the form for the IRS by the deadline, both cities will avoid penalties. Other assistance provided by DCRA staff during the course of the onsite visit to Teller included training with financial recordkeeping and a FY07 Certified Financial Statement. In Golovin, assistance was provided with the acquisition of a loader through a FY09 legislative grant and review of the FY09 budget. Additional requests for information and technical assistance will be carried out by Nome staff in the following week. The week of August 4, 2008, the Teller city clerk worked in the Nome office on completing the FY08 budget and FY06 Certified Financial Statement. A resolution was adopted for the FY06 certified financial statement on September 8, 2008. A FY08 budget appropriations ordinance was adopted by the city council on September 16, 2008. Nome RUBA staff provided the city clerk a calendar of deadlines and other pertinent documents for the city's regular election scheduled for October 7, 2008. In July, a new honeybucket haul truck arrived in Nome and was transported to Teller. . - 163 - July — August — September 2008 1 Quarter FY09 - RUBA Report SSO ee eeport Thorne Bay Lawrence Blood, LGS/RUBA, Juneau Regional Office Through RUBA program funding, the public works director attended a 2-day Alaska Water Wastewater Management Association (AWWMA) training conference held in Sitka. The training conference provided him an opportunity to receive continuing education units (CEU's) required for maintaining his water and wastewater operator certificates. In August 2008, Thorne Bay hosted a 32- hour Organizational Management course presented by RUBA staff with the target audience being sanitation operators and managers from Prince of Wales Island and the Southeast Alaska region. The community continues to submit supporting documentation on a quarterly basis consisting of monthly financial reports. The documents received during the last quarter, confirms that Thorne Bay still successfully meets all essential capacity indicators. Wales Karlin Itchoak, LGS/RUBA, Nome Regional Office RUBA staff has been in communication with the city mayor, council members, and staff on a regular basis throughout the quarter. Mayor Frank Crisci contacted Nome RUBA staff looking for a grant for spill containment gear, two 15 thousand gallon double-walled fuel tanks, and a single 10 thousand gallon double-walled oil tank. Nome RUBA staff will research the availability of such grants. In the meantime, Nome staff gave Mayor Crisci the contact information for the Rasmuson Foundation's program officer who mentioned that projects in Western Alaska are under-represented. The mayor called Nome RUBA staff regarding issues relating to the preparation and installation of a water transmission line being installed by Village Safe Water. He mentioned that the route of the line needed to be changed, which will cause delay in the project. The line was initially going to go through the snow fence and a swamp. Mr. Crisci had concerns with the equipment lease agreement pertaining to the lease of the City's 4-wheeler, back hoe and 8-wheeler. Nome RUBA staff drafted an alternative lease agreement, which was signed by both parties. In addition, the mayor held a meeting with the IRA tribal council regarding the agreement over the bulk fuel farm and stated that the Tribe did not want to be charged fees. The mayor and the Tribe worked out a written agreement in which the Tribe would be responsible for all operations and maintenance costs. The City will continue paying for the emergency response plans, insurance, and emergency response equipment. The City of Wales meets all essential management indicators at this time. - 164 -