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Rural Utility Business Advisor Program RUBA Quarterly Report Oct 1-Dec 31 2008
Rural Utility Business Advisor Program RUBA Quarterly Report October 1 - December 31, 2008 Second 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 October 1 — December 31, 2008 Scope of Report This report summarizes activities of the Department of Commerce, Community, and Economic Development (Commerce), Division of Community and Regional Affairs, (DCRA) in regards to the Rural Utility Business Advisor (RUBA) Program. The report documents RUBA activities for the period of October | through December 31, 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 A RUBA program organizational goal was realized October 1 with the hire of a Local Government Specialist (LGS) IV position. John Nickels II was appointed to assume duties of supervision of the three Anchorage RUBA staff and the two training and materials development staff. He will also oversee RUBA contracts. John served Aleutian and Bristol Bay communities as an Anchorage based LGS III for three years. He brings a vast knowledge base and experience level of commercial fishing, rural Alaska needs, and subsistence issues due to living and working in the Aleutians for 20 plus years. John helped False Pass incorporate as a 2™ class city, sat on the city council from incorporation until becoming Mayor and Administrator. These skills plus a keen sense of humor and high level of intelligence allow him to deal fairly with all requests from staff, rural communities, contractors, and sanitation related agencies. Confucius said, “In all things, success depends on previous preparation.” Nome staff Josie Bahnke worked for RUBA for five years preparing for her new position as Nome City Manager. She stepped into the job on November 15, 2008 and strengthens the RUBA and Division of Community and Regional Affairs ties to the City of Nome. Josie was a strong champion for her assigned RUBA communities finding many innovative methods to assist them in securing and managing sanitation infrastructure. Her ability to network with funding agencies and arrange regional training opportunities will be missed. RUBA Program Scope of Report Karlin Itchoak resigned his Nome position as of December 19, 2008. He expressed gratitude for the opportunity to provide community service with the hopes of a continuing career in some form of local government. Leroy Seppilu requested a lateral transfer from the Fairbanks office to Nome. He originally worked for RUBA from the Nome office and has also worked from the Anchorage and Fairbanks offices. His first day back in Nome was December 12. His experience working from three regional offices has given him a broad vision of statewide sanitation issues. Recruitment is currently posted for Local Government Specialist positions in both Nome and Fairbanks. Fuel Issues: RUBA staff fielded several community requests for assistance seeking funding for emergency deliveries of fuel. Severe winter weather arrived early this year before all fuel barges were able to complete deliveries. Some communities will be required to fly in fuel supplies which will substantially raise the rates. Weather: 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 also prevented several registered participants from arriving to scheduled RUBA classes. The severe winter weather started early and unexpectedly this year resulting in rivers freezing before all fuel barges completed their deliveries. Local Economy: The fuel issues and severe weather have exacerbated the lack of local economy in many areas of Western Alaska. Several of the fishing communities reported small processing plants closed due to increased operation and maintenance costs. This coupled with the closure of some commercial fishing seasons caused an estimated half of normal summer revenue being realized in many homes. Communities and residents are calling RUBA staff seeking resources to assist with payments for utility services, fuel, and food. RUBA helps identify what programs are available, however, the RUBA program is advisory only and not a funding source. Coordination/Communication Alaska Municipal League (AML): The Alaska Municipal League (AML) is a voluntary, nonprofit, nonpartisan, statewide organization of 137 cities, boroughs, and unified municipalities, representing over 98% of Alaska’s residents. AML also offers Associate status to organizations and commercial firms, and Affiliate status to professional associations of municipal officers. AML held their 58" Annual Local Government Conference in Ketchikan, Alaska November 12-14, 2008. The RUBA Program Manager attended the conference and provided information to attendees about the services and resources RUBA provides. RUBA also attended and provided information for the policy section meeting regarding public works and infrastructure. RUBA Quarterly Report — 2nd Quarter FY09 ss RUBA Program Scope of Report Alaska Rural Utility Collaborative (ARUC): RUBA renewed the contract with ARUC management for the remainder of FY09. ARUC is a pilot project to develop a statewide utility to offer centralized management and accounting functions to small rural member communities. Last year RUBA provided grant funds for the pilot project. Additional funding was requested to recruit additional communities and become self-sustaining. The RUBA grant was awarded with the requirement for submittal of monthly finance reports for all communities managed by ARUC. The monthly finance reports must list all sources of revenue and expense with a comparison to the adopted budget. This requirement extends to also providing the finance reports to the governing body of each utility. The pilot project began with seven utilities; recently three additional utilities have signed on and relinquished management responsibilities to ARUC. Alaska Rural Water Association (ARWA): The Alaska Rural Water Association (ARWA) hosted their 10" annual conference November 3-6 at the Anchorage Downtown Marriott. Participants represented utility operators, managers, and governing body staff from statewide water and wastewater systems. The conference addresses source water protection, on-site technical assistance, and water/wastewater training. RUBA was invited this year to share information regarding the training opportunities we present and the training reimbursement funds available. RUBA also provided five training scholarships to operators attending this training who will receive credits towards maintaining their certification. 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. AWWMA held their mid-year executive board meeting November 21, 2008. The RUBA Program Manager sits as the secretary on this board and attended the meeting. Workshops and training opportunities were discussed and planning for the annual conference in May began. AWWMA board raised the issue of supporting the certified utility manager program. This topic will require scheduling a meeting with the president and RUBA program manager at a later date. Association of Village Council Presidents (AVCP): Bethel RUBA staff attended the AVCP 44" Annual Convention October 7, 8, 9, 2008 in Bethel. AVCP provides social, economic, and educational services to 56 federally recognized Native Alaskan tribes in the Yukon- Kuskokwim Delta. The convention attendance provided an opportunity to network with representatives from the region and discuss the agenda items concerning the relationship of sanitation needs to regional housing issues, energy needs, and transportation. Other agenda items of interest included the Donlin Creek mine, subsistence and development of a Native American Bank. Governor Palin and Senator Hoffman attended to provide legislative reports. RUBA Quarterly Report — 2nd Quarter FY09 -3- RUBA Program Scope of Report Community Plans Update: Dillingham Regional Office staff traveled to Togiak December 15-16 with Juneau DCRA staff to meet with city officials about their efforts to update community plans. RUBA staff also had the opportunity to meet with water/wastewater utility staff about sanitation project planning, an effort that the public works director hopes to coordinate with roads projects presently being discussed by the city and tribal government. RUBA also reviewed accounting procedures with utility staff and provided a utility accounting handbook published by RUBA. Denali Commission: RUBA staff attended a meeting on November 21 with the Denali Commission, Chignik Bay Tribal Council, and Harris Sub-Regional Clinic. The purpose of the meeting was to provide an information overview of the 5,468 square foot sub-regional health clinic which would serve the communities of Chignik Bay, Chignik Lake, Chignik Lagoon, Ivanoff Bay, Perryville, and Port Heiden. CE2 Engineers are responsible for construction management with Chignik Bay Tribal Council being the lead project manager using a force account management plan. The Chignik Bay Tribal Council will own and operate the new facility. A major concern with the project is to ensure there is enough funding for completion of the project due to unexpected cost over-runs. During the meeting, the group was informed by the grant administrator that federal requirements prohibit a Community Development Block Grant be used for purchasing equipment and fixtures. Also they were informed that all work must stop on the project if a CDBG grant is applied for which convinced the group to seek additional funding elsewhere. Environmental Protection Agency (EPA): Check Up Program for Small Systems (CUPSS) is an asset management tool developed by the EPA for small drinking water and wastewater utilities with fewer than 1,000 connections. With the CUPSS software, a utility gains a better understanding of its financial situation and can develop a tailored asset management plan by recording its capital assets and managing a schedule of required tasks. RUBA has awarded a small grant to the City of Thome Bay to implement the CUPSS software to test the applicability of the system to rural Alaska. RUBA will provide the financial assistance to help cover administrative needs. In return, the city will provide the RUBA program with invaluable information through progress reports, presentations, and other documentation to help implement CUPSS software throughout the state. Internal Revenue Service (IRS): Fairbanks RUBA staff gave a presentation at the IRS sponsored Indian Tribal Government employment tax workshop in Fairbanks on December 15. RUBA staff spoke to the importance of being current with tax filings and deposits, the significance of a RUBA management assessment, and the impact that being tax delinquent has on receiving funding for capital improvement projects. Copies of the Division of Community and Regional Affairs Lien Watch publication were distributed as well as the tax reporting criteria found on the RUBA assessment and a sample Authorization to Request Federal Tax Information form. The State of Alaska also presented information regarding ESC tax requirements. RUBA Quarterly Report — 2nd Quarter FY09 -4- RUBA Program Scope of Report Kotzebue Elder’s Assistance Day: Kotzebue RUBA staff Margaret Hansen assisted the community of Kotzebue in coordinating 50 volunteers from Shell Oil who, as volunteers, traveled to Kotzebue to install free energy kits in elder’s homes. Over 70 volunteers from organizations within Kotzebue also participated in this volunteer effort to install window covers, weather stripping, outlet seal insulators and install energy saving light bulbs for approximately 70 elder’s homes. Prior to this event, a majority of the homes were paying approximately $1000 per month in fuel and electric costs. The energy consumption savings may be reflected in lowering sanitation collection efforts. A follow-up survey is planned to identify housing and sanitation needs and what resources are available to address these needs. 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 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. The Department of Environmental Conservation Village Safe Water Remote Maintenance Worker (RMW) program provides technical assistance to rural communities. In many cases, RMW’s and RUBA staff travel together providing both technical and managerial assistance to sanitation projects in rural Alaska. RMW Steve Evavold approached RUBA staff with the innovative idea of creating a calendar for the communities in the Kodiak region. The calendar has water operator and utility clerk related duties noted in an effort to prevent significant non-compliance errors occurring. Errors, such as not submitting water samples for testing timely, result in penalties and fines and may even prevent future construction funding for sanitation projects. RUBA staff created the calendars using regional pictures and will distribute them to each clerk and operator within the Kodiak region. The goal is to expand this calendar production to other regions next year. Technical Assistance Providers (TAP): Anchorage and Nome RUBA staff attended the TAP meeting December 10. The discussion at the meeting was about adding Shaktoolik to the list of communities assigned to receive technical assistance. It was noted that there are some hardware issues with the water utility and a financial issue with the Internal Revenue Service. TAP requested current information about Shaktoolik from RUBA. Nome staff informed the group that we do not have a current RUBA management assessment of Shaktoolik and will schedule one as soon as possible. The issue was tabled until completion of the assessment. The group also discussed a sewage problem at Scammon Bay. An ongoing problem of sewage backing up into homes will require more money and technical assistance than the TAP group can provide. Assistance will be requested from Village Safe Water and Alaska Native Tribal Health Consortium. Nome RUBA staff also participated in the November TAP meetings with several city council members of the City of Gambell via teleconference. Business conducted included an update from Gambell and an introduction and welcome from the new mayor. An update of the Village Safe Water (VSW) construction project, corrosion control and a compliance report $$. <= 8 RUBA Quarterly Report — 2nd Quarter FY09 -5- RUBA Program Scope of Report were provided. VSW will be traveling to Gambell in November to do final inspections on three lift stations. DEC expressed concerns about the sewer in regards to reverse grade pipe while upgrading the systems. The agency will offer lift station operations training and is interested in training both operators and back-up operators. Nome RUBA staff will continue working with Gambell and the inter-agencies to provide technical assistance. Regulatory Commission of Alaska (RCA): RUBA staff attended a workshop held by the RCA on October 20 for the purpose of hearing from entities interested in providing electric services on the island of Adak. Adak sanitation services all depend upon a reliable electric source. The RCA recently found cause to revoke the city’s Certificate of Public Convenience and Necessity and is seeking another utility to provide the service. The RCA heard testimony regarding the impacts of the city’s failure over recent months to provide reliable electrical power and the need to find a replacement soon. Those attending the workshop supported the idea of TDX taking over management of the utility. Based on the information learned at the workshop, a loan from Rural Alaska Fuel Services was approved to purchase a supply of fuel to maintain the utility until new management could be found. TDX Power was authorized to take over operation of Adak’s electric utility December 1, 2008. Rural Alaska Pilot Project (RAPP): Anchorage RUBA staff attended the RAPP meeting held at the Internal Revenue Service (IRS) office in Anchorage On November 13. RAPP meetings are held quarterly to discuss how rural Alaskan tribal and municipal governments can be assisted with their financial and tax problems. The IRS Authorization to Request Federal Tax Information form was discussed; this form is used by RUBA staff and others to verify the tax status of communities. The IRS reported having a few issues with current submittals and requested RUBA staff assist with distributing the corrected form and instructions. Other topics discussed included announcements of scheduled IRS trainings and a Gaming Excise Tax class with the Alaska Department of Revenue. Tribal Environmental Leadership Award: The 14" Annual Alaska Tribal Conference on Environmental Management was held in Anchorage October 28. The focus of the conference was environmental sustainability in changing times and climate. Each year, individuals and agencies are recognized for their contributions for environmental achievement in Alaska. Nominations are requested from tribal councils, village administrators, environmental program staff, and health organizations to recognize community members and professionals for their dedication to and passion for protecting the environmental health of Alaskan communities. This year, the RUBA Program Manager Elizabeth Manfred received a “Tribal Environmental Leader Award” on behalf of the RUBA program staff. It is a great honor to receive this award and recognition of the RUBA staff efforts to assist communities in their quest for capacity and sustainability in providing sanitation services to rural Alaskans. ee = Te —=——= ee RUBA Quarterly Report — 2nd Quarter FY09 -6- RUBA Program Scope of Report University of Alaska Fairbanks (UAF): RUBA has partnered with the UAF to offer RUBA classes that earn college credits. Currently, RUBA has embarked on a pilot project offering the entire series of RUBA classes at the UAF-Yukon Flats campus in Fort Yukon. Credits students earn would count toward an Occupational Endorsement in Rural Utilities Management under the UAF Tribal Management Program. RUBA classes are offered tuition- free and RUBA may reimburse travel and lodging expenses upon completion of a class. To earn college credits, a student must submit a UAF registration form and credit fee of $75.00. Village Safe Water (VSW): At the request of a VSW Engineer, RUBA staff attended a meeting in the offices of Bristol Environmental & Engineering Services November 12 to discuss future sanitation projects for the community of Adak. Representatives of the Village Safe Water (VSW) program, Aleut Corporation, and the Regulatory Commission of Alaska (RCA) attended, as well as an Adak City Council Member. Bristol Environmental is in the process of revising a feasibility study for water and wastewater projects on the island and is looking for information from involved agencies and residents. The Aleut Corporation presented information on which parts of the former Navy base they would like utility services to continue and which areas will be abandoned. The condition of the existing water and wastewater systems and the areas currently inhabited were reviewed; much of the existing infrastructure left by the Navy is deteriorating with age. A VSW project to replace a malfunctioning and dangerous pressure relief valve in the community’s aging water system is nearly complete. Future sanitation projects will depend on a plan for community development, findings of the revised feasibility report, and the city’s ability to meet RUBA management assessment indicators. City management deficiencies over the last several years have resulted in a recent RCA decision to revoke the city’s certificate authorizing the operation of the electric utility. Performance Goals Staff Development: Anchorage RUBA staff traveled to Dillingham on October 23. The purpose of the trip was to review and edit the guidelines used by RUBA staff when conducting utility management assessments. These guidelines are intended to promote a consistent approach to collecting documentation of utility management practices. As meeting all essential indicators is now required prior to release of sanitation construction funding, it is important that all staff apply consistent guidelines for acceptable documentation. Anchorage and Dillingham staff will finalize and publish the new guidelines. One-on-one training will also be provided to all regional RUBA staff to ensure consistency in the process. The guideline information will also be shared with funding agencies, project engineers, and utility managers. These guidelines and a blank RUBA assessment form are provided to the utility staff prior to the on-site visit to conduct the initial assessment. RUBA Quarterly Report — 2nd Quarter FY09 - Fa RUBA Program Scope of Report Bethel RUBA staff attended the wage and hour seminar held in Bethel December 4 and presented by the Alaska Department of Labor and Workforce Development. The seminar topics included statute regulations for employment of children, defining exempt and salaried employees, overtime pay, and state and federal minimum wages. Information learned at this seminar will be useful when providing on-site assistance to both tribal and municipal governments. Bethel RUBA staff attended the ANCSA 14(c) workshop held in Bethel on November 5 and 6. The workshop covered the process and issues of Native corporations transferring 14(c) lands to municipalities and private owners. Approximately ten organizations from the Kuskokwim and Lower Yukon region had completed their 14(c) transfers. Four entities are still in the process of transfers and the rest have not submitted their map boundaries to the Bureau of Land Management yet as required to begin the process. At the end of the workshop, each community was given an opportunity to discuss their map of boundaries, both potential and planned. RUBA attended and facilitated regarding questions of locations for potential sanitation projects. Statewide Single Audit Coordinator Colleen Campbell conducted a presentation in Anchorage for interested RUBA staff. The single audit presentation covered both federal and state single audit guidelines and included a wealth of information on the history of the single audit act, what entities are affected, audit guidelines and standards, elements of audit reporting, and how to interpret an audit report. The presentation was useful for staff that work with communities who receive grant funds for capital projects and are often required to have single audits. Fairbanks and Dillingham RUBA staff met in Anchorage for approximately three days to continue revising the Introduction to Utility Management training manual. Two sections of the manual need substantial revision as regulations and policies have changed in recent years. It is anticipated that the student manual will be completed and ready for publication before years end. The impetus to complete this update is driven by a request to teach the material to three high school students from each village on Kodiak Island. The school district there is arranging transportation and housing of the students in Kodiak with RUBA responsible for the training and materials. On November 18, RUBA staff attended a presentation by Sheri Sommerville, Alaska State Library services. The main portion of her presentation covered the Testing & Education Reference Center (TERC) which allows people to search for a college, vocational or technical school, register for an automated scholarship matching service, and practice for various standardized tests. The presentation also included information pertinent to local government issues and the RUBA Certified Managers training. Somerville also reminded state employees to send eight hard copies of our department publications to the Alaska State Library for cataloging. They are evolving toward working with electronic versions as well. RUBA Quarterly Report — 2nd Quarter FY09 -§8- RUBA Program Scope of Report New Publications: RUBA staff updated the publication An Agency Guide to Community Tax Issues. This publication and the accompanying form titled Authorization to Request Federal Tax Information, is used by RUBA staff and funding agencies to check community status with the Internal Revenue Service (IRS) and the Alaska State Department of Labor (DOL). The person requesting information from the IRS must have authorization from the community to view its tax status. 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 34 trips to 30 communities during the second quarter of FY09. Fifteen RUBA staff spent a total of 57 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 community planning meetings, 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 12 communities to complete utility management assessments this quarter. RUBA is now monitoring a total of 169 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 communities received on-site assistance and provided documentation to support a showing of improvement in the total score of both essential and sustainable indicators. Increased On-Site Assistance through use of Contractual Staff 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. RUBA Quarterly Report — 2nd Quarter FY09 -9- RUBA Program Scope of Report 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, Tumagain 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. RUBA also continues to support a second grant with Turnagain Press for regional QuickBooks for Beginners classes. Each class is four days of hands on computerized accounting classes for a maximum class size of 15 students. RUBA staff nominate utility clerks and bookkeepers who are allowed reimbursement for lodging and transportation costs upon completion of the course Training Classes Presented Bethel: RUBA staff presented a 32-hour Utility Clerk Training class for rural clerks during the week of November 17 in Bethel. The course was recently developed for RUBA through a contract with materials designed for city, tribal and utility clerks. It addresses the issues of public relations, meetings, office management, elections, financial management, billings, collections, ordinances, resolutions, and by-laws. Fifteen students from Alakanuk, Chuathbaluk, Eek, Emmonak, Kotlik, Pilot Station, Scammon Bay, St. Marys, Tuluksak, and Upper Kalskag participated in this opportunity to build skills. Students expressed their appreciation of both the instruction and the chance to network and build relationships with their peers in the region. Sitka: RUBA sponsored a QuickBooks class for governmental accounting in Sitka November 17-21. Eleven students from the communities of Thorne Bay, Coffman Cove, Pelican, Angoon, Klukwan, Kake, Kasaan, Hydaburg and Gustavus attended the course. This week-long class focuses on the unique aspects of maintaining accurate governmental financial records and helps address the problem of maintaining accurate governmental financial records and maintaining qualified bookkeeping staff in small rural communities. As one city administrator was recently quoted, “with the constant turnover in employees and the difficulty in finding trained bookkeepers, the RUBA QuickBooks classes are invaluable.” The regional QuickBooks classes have become one of the mainstay training opportunities in the RUBA training portfolio. Much of this is due to the applicability of the material and quality of instruction. The contracted instructors, Joanna Knapp and Pati Crofut of Turnagain Press, have gained a positive reputation around the state with city bookkeepers and accountants. Another key element in the success and popularity of the regional QuickBooks classes is the effective partnership building. The RUBA program routinely partners with training organizations and regional health corporations to maximize the benefit to rural communities. In the case of this class, special thanks goes to the Alaska Training/Technical Assistance Center for administrative assistance, donation of training space, computer use, and help in advertising the class. RUBA Quarterly Report — 2nd Quarter FY09 -10- RUBA Program Scope of Report Anchorage: The Organizational Management for Rural Utilities course was presented in Anchorage during the week of December 1-5, 2008. Due to bad weather, not all registered participants were able to attend and the final class total was nine students from Anchor Point, Newhalen, Cordova, Anchorage, Sand Point, Cold Bay, and Saint Paul. The Aleutian Pribilof Island Association co-sponsored this course and provided the training room. 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. 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 21 students and 5 sanitation operators who attended the Utility Clerk Training, QuickBooks Pro Beginner’s Class, Organizational Management for Rural Utilities, or the Alaska Water Wastewater Management Association conference. The training funds require attendance and participation in the complete course prior to reimbursement being issued. A total of $19,432.01 was awarded to the 26 participants. RUBA Quarterly Report — 2nd Quarter FY09 -il- RUBA Program Activity Map October 1 through December 31, 2008 Legend eZ On-Site Visits {ds Assessments & UTM Students a Hydaburg Gold Bay Old Harbor Sand Point Rural Utility Business Advisor (RUBA) Program Activity Report October 1 — December 31, 2008 Scope of Report This report summarizes activities of the Department of Commerce, Community, and Economic Development (Commerce), Division of Community and Regional Affairs, (DCRA) in regards to the Rural Utility Business Advisor (RUBA) Program. The report documents RUBA activities for the period of October | through December 31, 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 A RUBA program organizational goal was realized October 1 with the hire of a Local Government Specialist (LGS) IV position. John Nickels II was appointed to assume duties of supervision of the three Anchorage RUBA staff and the two training and materials development staff. He will also oversee RUBA contracts. John served Aleutian and Bristol Bay communities as an Anchorage based LGS III for three years. He brings a vast knowledge base and experience level of commercial fishing, rural Alaska needs, and subsistence issues _ due to living and working in the Aleutians for 20 plus years. John helped False Pass incorporate as a 2™ class city, sat on the city council from incorporation until becoming Mayor and Administrator. These skills plus a keen sense of humor and high level of intelligence allow him to deal fairly with all requests from staff, rural communities, contractors, and sanitation related agencies. Confucius said, “In all things, success depends on previous preparation.” Nome staff Josie Bahnke worked for RUBA for five years preparing for her new position as Nome City Manager. She stepped into the job on November 15, 2008 and strengthens the RUBA and Division of Community and Regional Affairs ties to the City of Nome. Josie was a strong champion for her assigned RUBA communities finding many innovative methods to assist them in securing and managing sanitation infrastructure. Her ability to network with funding agencies and arrange regional training opportunities will be missed. RUBA Program Scope of Report Karlin Itchoak resigned his Nome position as of December 19, 2008. He expressed gratitude for the opportunity to provide community service with the hopes of a continuing career in some form of local government. Leroy Seppilu requested a lateral transfer from the Fairbanks office to Nome. He originally worked for RUBA from the Nome office and has also worked from the Anchorage and Fairbanks offices. His first day back in Nome was December 12. His experience working from three regional offices has given him a broad vision of statewide sanitation issues. Recruitment is currently posted for Local Government Specialist positions in both Nome and Fairbanks. Fuel Issues: RUBA staff fielded several community requests for assistance seeking funding for emergency deliveries of fuel. Severe winter weather arrived early this year before all fuel barges were able to complete deliveries. Some communities will be required to fly in fuel supplies which will substantially raise the rates. Weather: 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 also prevented several registered participants from arriving to scheduled RUBA classes. The severe winter weather started early and unexpectedly this year resulting in rivers freezing before all fuel barges completed their deliveries. Local Economy: The fuel issues and severe weather have exacerbated the lack of local economy in many areas of Western Alaska. Several of the fishing communities reported small processing plants closed due to increased operation and maintenance costs. This coupled with the closure of some commercial fishing seasons caused an estimated half of normal summer revenue being realized in many homes. Communities and residents are calling RUBA staff seeking resources to assist with payments for utility services, fuel, and food. RUBA helps identify what programs are available, however, the RUBA program is advisory only and not a funding source. Coordination/Communication Alaska Municipal League (AML): The Alaska Municipal League (AML) is a voluntary, nonprofit, nonpartisan, statewide organization of 137 cities, boroughs, and unified municipalities, representing over 98% of Alaska’s residents. AML also offers Associate status to organizations and commercial firms, and Affiliate status to professional associations of municipal officers. AML held their 58" Annual Local Government Conference in Ketchikan, Alaska November 12-14, 2008. The RUBA Program Manager attended the conference and provided information to attendees about the services and resources RUBA provides. RUBA also attended and provided information for the policy section meeting regarding public works and infrastructure. RUBA Quarterly Report — 2nd Quarter FY09 -2- RUBA Program Scope of Report Alaska Rural Utility Collaborative (ARUC): RUBA renewed the contract with ARUC management for the remainder of FY09. ARUC is a pilot project to develop a statewide utility to offer centralized management and accounting functions to small rural member communities. Last year RUBA provided grant funds for the pilot project. Additional funding was requested to recruit additional communities and become self-sustaining. The RUBA grant was awarded with the requirement for submittal of monthly finance reports for all communities managed by ARUC. The monthly finance reports must list all sources of revenue and expense with a comparison to the adopted budget. This requirement extends to also providing the finance reports to the governing body of each utility. The pilot project began with seven utilities; recently three additional utilities have signed on and relinquished management responsibilities to ARUC. Alaska Rural Water Association (ARWA): The Alaska Rural Water Association (ARWA) hosted their 10" annual conference November 3-6 at the Anchorage Downtown Marriott. Participants represented utility operators, managers, and governing body staff from statewide water and wastewater systems. The conference addresses source water protection, on-site technical assistance, and water/wastewater training. RUBA was invited this year to share information regarding the training opportunities we present and the training reimbursement funds available. RUBA also provided five training scholarships to operators attending this training who will receive credits towards maintaining their certification. 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. AWWM<A held their mid-year executive board meeting November 21, 2008. The RUBA Program Manager sits as the secretary on this board and attended the meeting. Workshops and training opportunities were discussed and planning for the annual conference in May began. AWWMA board raised the issue of supporting the certified utility manager program. This topic will require scheduling a meeting with the president and RUBA program manager at a later date. Association of Village Council Presidents (AVCP): Bethel RUBA staff attended the AVCP 44™ Annual Convention October 7, 8, 9, 2008 in Bethel. AVCP provides social, economic, and educational services to 56 federally recognized Native Alaskan tribes in the Yukon- Kuskokwim Delta. The convention attendance provided an opportunity to network with representatives from the region and discuss the agenda items concerning the relationship of sanitation needs to regional housing issues, energy needs, and transportation. Other agenda items of interest included the Donlin Creek mine, subsistence and development of a Native American Bank. Governor Palin and Senator Hoffman attended to provide legislative reports. RUBA Quarterly Report — 2nd Quarter FY09 -3- RUBA Program Scope of Report Community Plans Update: Dillingham Regional Office staff traveled to Togiak December 15-16 with Juneau DCRA staff to meet with city officials about their efforts to update community plans. RUBA staff also had the opportunity to meet with water/wastewater utility staff about sanitation project planning, an effort that the public works director hopes to coordinate with roads projects presently being discussed by the city and tribal government. RUBA also reviewed accounting procedures with utility staff and provided a utility accounting handbook published by RUBA. Denali Commission: RUBA staff attended a meeting on November 21 with the Denali Commission, Chignik Bay Tribal Council, and Harris Sub-Regional Clinic. The purpose of the meeting was to provide an information overview of the 5,468 square foot sub-regional health clinic which would serve the communities of Chignik Bay, Chignik Lake, Chignik Lagoon, Ivanoff Bay, Perryville, and Port Heiden. CE2 Engineers are responsible for construction management with Chignik Bay Tribal Council being the lead project manager using a force account management plan. The Chignik Bay Tribal Council will own and operate the new facility. A major concern with the project is to ensure there is enough funding for completion of the project due to unexpected cost over-runs. During the meeting, the group was informed by the grant administrator that federal requirements prohibit a Community Development Block Grant be used for purchasing equipment and fixtures. Also they were informed that all work must stop on the project if a CDBG grant is applied for which convinced the group to seek additional funding elsewhere. Environmental Protection Agency (EPA): Check Up Program for Small Systems (CUPSS) is an asset management tool developed by the EPA for small drinking water and wastewater utilities with fewer than 1,000 connections. With the CUPSS software, a utility gains a better understanding of its financial situation and can develop a tailored asset management plan by recording its capital assets and managing a schedule of required tasks. RUBA has awarded a small grant to the City of Thome Bay to implement the CUPSS software to test the applicability of the system to rural Alaska. RUBA will provide the financial assistance to help cover administrative needs. In return, the city will provide the RUBA program with invaluable information through progress reports, presentations, and other documentation to help implement CUPSS software throughout the state. Internal Revenue Service (IRS): Fairbanks RUBA staff gave a presentation at the IRS sponsored Indian Tribal Government employment tax workshop in Fairbanks on December 15. RUBA staff spoke to the importance of being current with tax filings and deposits, the significance of a RUBA management assessment, and the impact that being tax delinquent has on receiving funding for capital improvement projects. Copies of the Division of Community and Regional Affairs Lien Watch publication were distributed as well as the tax reporting criteria found on the RUBA assessment and a sample Authorization to Request Federal Tax Information form. The State of Alaska also presented information regarding ESC tax requirements. ee RUBA Quarterly Report — 2nd Quarter FY09 -4- RUBA Program Scope of Report Kotzebue Elder’s Assistance Day: Kotzebue RUBA staff Margaret Hansen assisted the community of Kotzebue in coordinating 50 volunteers from Shell Oil who, as volunteers, traveled to Kotzebue to install free energy kits in elder’s homes. Over 70 volunteers from organizations within Kotzebue also participated in this volunteer effort to install window covers, weather stripping, outlet seal insulators and install energy saving light bulbs for approximately 70 elder’s homes. Prior to this event, a majority of the homes were paying approximately $1000 per month in fuel and electric costs. The energy consumption savings may be reflected in lowering sanitation collection efforts. A follow-up survey is planned to identify housing and sanitation needs and what resources are available to address these needs. 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 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. The Department of Environmental Conservation Village Safe Water Remote Maintenance Worker (RMW) program provides technical assistance to rural communities. In many cases, RMW’s and RUBA staff travel together providing both technical and managerial assistance to sanitation projects in rural Alaska. RMW Steve Evavold approached RUBA staff with the innovative idea of creating a calendar for the communities in the Kodiak region. The calendar has water operator and utility clerk related duties noted in an effort to prevent significant non-compliance errors occurring. Errors, such as not submitting water samples for testing timely, result in penalties and fines and may even prevent future construction funding for sanitation projects. RUBA staff created the calendars using regional pictures and will distribute them to each clerk and operator within the Kodiak region. The goal is to expand this calendar production to other regions next year. Technical Assistance Providers (TAP): Anchorage and Nome RUBA staff attended the TAP meeting December 10. The discussion at the meeting was about adding Shaktoolik to the list of communities assigned to receive technical assistance. It was noted that there are some hardware issues with the water utility and a financial issue with the Internal Revenue Service. TAP requested current information about Shaktoolik from RUBA. Nome staff informed the group that we do not have a current RUBA management assessment of Shaktoolik and will schedule one as soon as possible. The issue was tabled until completion of the assessment. The group also discussed a sewage problem at Scammon Bay. An ongoing problem of sewage backing up into homes will require more money and technical assistance than the TAP group can provide. Assistance will be requested from Village Safe Water and Alaska Native Tribal Health Consortium. Nome RUBA staff also participated in the November TAP meetings with several city council members of the City of Gambell via teleconference. Business conducted included an update from Gambell and an introduction and welcome from the new mayor. An update of the Village Safe Water (VSW) construction project, corrosion control and a compliance report = RUBA Quarterly Report — 2nd Quarter FY09 7 ————— ——= = —= an ' RUBA Program Scope of Report were provided. VSW will be traveling to Gambell in November to do final inspections on three lift stations. DEC expressed concerns about the sewer in regards to reverse grade pipe while upgrading the systems. The agency will offer lift station operations training and is interested in training both operators and back-up operators. Nome RUBA staff will continue working with Gambell and the inter-agencies to provide technical assistance. Regulatory Commission of Alaska (RCA): RUBA staff attended a workshop held by the RCA on October 20 for the purpose of hearing from entities interested in providing electric services on the island of Adak. Adak sanitation services all depend upon a reliable electric source. The RCA recently found cause to revoke the city’s Certificate of Public Convenience and Necessity and is seeking another utility to provide the service. The RCA heard testimony regarding the impacts of the city’s failure over recent months to provide reliable electrical power and the need to find a replacement soon. Those attending the workshop supported the idea of TDX taking over management of the utility. Based on the information learned at the workshop, a loan from Rural Alaska Fuel Services was approved to purchase a supply of fuel to maintain the utility until new management could be found. TDX Power was authorized to take over operation of Adak’s electric utility December 1, 2008. Rural Alaska Pilot Project (RAPP): Anchorage RUBA staff attended the RAPP meeting held at the Internal Revenue Service (IRS) office in Anchorage On November 13. RAPP meetings are held quarterly to discuss how rural Alaskan tribal and municipal governments can be assisted with their financial and tax problems. The IRS Authorization to Request Federal Tax Information form was discussed; this form is used by RUBA staff and others to verify the tax status of communities. The IRS reported having a few issues with current submittals and requested RUBA staff assist with distributing the corrected form and instructions. Other topics discussed included announcements of scheduled IRS trainings and a Gaming Excise Tax class with the Alaska Department of Revenue. Tribal Environmental Leadership Award: The 14" Annual Alaska Tribal Conference on Environmental Management was held in Anchorage October 28. The focus of the conference was environmental sustainability in changing times and climate. Each year, individuals and agencies are recognized for their contributions for environmental achievement in Alaska. Nominations are requested from tribal councils, village administrators, environmental program staff, and health organizations to recognize community members and professionals for their dedication to and passion for protecting the environmental health of Alaskan communities. This year, the RUBA Program Manager Elizabeth Manfred received a “Tribal Environmental Leader Award” on behalf of the RUBA program staff. It is a great honor to receive this award and recognition of the RUBA staff efforts to assist communities in their quest for capacity and sustainability in providing sanitation services to rural Alaskans. RUBA Quarterly Report — 2nd Quarter FY09 -6- RUBA Program Scope of Report University of Alaska Fairbanks (UAF): RUBA has partnered with the UAF to offer RUBA classes that earn college credits. Currently, RUBA has embarked on a pilot project offering the entire series of RUBA classes at the UAF-Yukon Flats campus in Fort Yukon. Credits students earn would count toward an Occupational Endorsement in Rural Utilities Management under the UAF Tribal Management Program. RUBA classes are offered tuition- free and RUBA may reimburse travel and lodging expenses upon completion of a class. To earn college credits, a student must submit a UAF registration form and credit fee of $75.00. Village Safe Water (VSW): At the request of a VSW Engineer, RUBA staff attended a meeting in the offices of Bristol Environmental & Engineering Services November 12 to discuss future sanitation projects for the community of Adak. Representatives of the Village Safe Water (VSW) program, Aleut Corporation, and the Regulatory Commission of Alaska (RCA) attended, as well as an Adak City Council Member. Bristol Environmental is in the process of revising a feasibility study for water and wastewater projects on the island and is looking for information from involved agencies and residents. The Aleut Corporation presented information on which parts of the former Navy base they would like utility services to continue and which areas will be abandoned. The condition of the existing water and wastewater systems and the areas currently inhabited were reviewed; much of the existing infrastructure left by the Navy is deteriorating with age. A VSW project to replace a malfunctioning and dangerous pressure relief valve in the community’s aging water system is nearly complete. Future sanitation projects will depend on a plan for community development, findings of the revised feasibility report, and the city’s ability to meet RUBA management assessment indicators. City management deficiencies over the last several years have resulted in a recent RCA decision to revoke the city’s certificate authorizing the operation of the electric utility. Performance Goals Staff Development: Anchorage RUBA staff traveled to Dillingham on October 23. The purpose of the trip was to review and edit the guidelines used by RUBA staff when conducting utility management assessments. These guidelines are intended to promote a consistent approach to collecting documentation of utility management practices. As meeting all essential indicators is now required prior to release of sanitation construction funding, it is important that all staff apply consistent guidelines for acceptable documentation. Anchorage and Dillingham staff will finalize and publish the new guidelines. One-on-one training will also be provided to all regional RUBA staff to ensure consistency in the process. The guideline information will also be shared with funding agencies, project engineers, and utility managers. These guidelines and a blank RUBA assessment form are provided to the utility staff prior to the on-site visit to conduct the initial assessment. a a SEER EEREREneemmeeeeeememmmmmmemeeeeneeeeeemeeeeeeeeee=ee at RUBA Quarterly Report — 2nd Quarter FY09 -7- RUBA Program Scope of Report Bethel RUBA staff attended the wage and hour seminar held in Bethel December 4 and presented by the Alaska Department of Labor and Workforce Development. The seminar topics included statute regulations for employment of children, defining exempt and salaried employees, overtime pay, and state and federal minimum wages. Information learned at this seminar will be useful when providing on-site assistance to both tribal and municipal governments. Bethel RUBA staff attended the ANCSA 14(c) workshop held in Bethel on November 5 and 6. The workshop covered the process and issues of Native corporations transferring 14(c) lands to municipalities and private owners. Approximately ten organizations from the Kuskokwim and Lower Yukon region had completed their 14(c) transfers. Four entities are still in the process of transfers and the rest have not submitted their map boundaries to the Bureau of Land Management yet as required to begin the process. At the end of the workshop, each community was given an opportunity to discuss their map of boundaries, both potential and planned. RUBA attended and facilitated regarding questions of locations for potential sanitation projects. Statewide Single Audit Coordinator Colleen Campbell conducted a presentation in Anchorage for interested RUBA staff. The single audit presentation covered both federal and state single audit guidelines and included a wealth of information on the history of the single audit act, what entities are affected, audit guidelines and standards, elements of audit reporting, and how to interpret an audit report. The presentation was useful for staff that work with communities who receive grant funds for capital projects and are often required to have single audits. Fairbanks and Dillingham RUBA staff met in Anchorage for approximately three days to continue revising the Introduction to Utility Management training manual. Two sections of the manual need substantial revision as regulations and policies have changed in recent years. It is anticipated that the student manual will be completed and ready for publication before years end. The impetus to complete this update is driven by a request to teach the material to three high school students from each village on Kodiak Island. The school district there is arranging transportation and housing of the students in Kodiak with RUBA responsible for the training and materials. On November 18, RUBA staff attended a presentation by Sheri Sommerville, Alaska State Library services. The main portion of her presentation covered the Testing & Education Reference Center (TERC) which allows people to search for a college, vocational or technical school, register for an automated scholarship matching service, and practice for various standardized tests. The presentation also included information pertinent to local government issues and the RUBA Certified Managers training. Somerville also reminded state employees to send eight hard copies of our department publications to the Alaska State Library for cataloging. They are evolving toward working with electronic versions as well. RUBA Quarterly Report — 2nd Quarter FY09 -8- RUBA Program Scope of Report New Publications: RUBA staff updated the publication An Agency Guide to Community Tax Issues. This publication and the accompanying form titled Authorization to Request Federal Tax Information, is used by RUBA staff and funding agencies to check community status with the Internal Revenue Service (IRS) and the Alaska State Department of Labor (DOL). The person requesting information from the IRS must have authorization from the community to view its tax status. 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 34 trips to 30 communities during the second quarter of FY09. Fifteen RUBA staff spent a total of 57 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 community planning meetings, 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 12 communities to complete utility management assessments this quarter. RUBA is now ‘monitoring a total of 169 management assessments. RUBA staff requires a minimum of a *~, monthly finance report from each of these communities and, in several instances, additional ss documentation to assess management capacity. Thirty communities received on-site assistance and provided documentation to support a showing of improvement in the total score of both essential and sustainable indicators. Increased On-Site Assistance through use of Contractual Staff 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. RUBA Quarterly Report — 2nd Quarter FY09 -9- RUBA Program Scope of Report 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. RUBA also continues to support a second grant with Turnagain Press for regional QuickBooks for Beginners classes. Each class is four days of hands on computerized accounting classes for a maximum class size of 15 students. RUBA staff nominate utility clerks and bookkeepers who are allowed reimbursement for lodging and transportation costs upon completion of the course Training Classes Presented Bethel: RUBA staff presented a 32-hour Utility Clerk Training class for rural clerks during the week of November 17 in Bethel. The course was recently developed for RUBA through a contract with materials designed for city, tribal and utility clerks. It addresses the issues of public relations, meetings, office management, elections, financial management, billings, collections, ordinances, resolutions, and by-laws. Fifteen students from Alakanuk, Chuathbaluk, Eek, Emmonak, Kotlik, Pilot Station, Scammon Bay, St. Marys, Tuluksak, and Upper Kalskag participated in this opportunity to build skills. Students expressed their appreciation of both the instruction and the chance to network and build relationships with their peers in the region. Sitka: RUBA sponsored a QuickBooks class for governmental accounting in Sitka November 17-21. Eleven students from the communities of Thorne Bay, Coffman Cove, Pelican, Angoon, Klukwan, Kake, Kasaan, Hydaburg and Gustavus attended the course. This week-long class focuses on the unique aspects of maintaining accurate governmental financial records and helps address the problem of maintaining accurate governmental financial records and maintaining qualified bookkeeping staff in small rural communities. As one city administrator was recently quoted, “with the constant turnover in employees and the difficulty in finding trained bookkeepers, the RUBA QuickBooks classes are invaluable.” The regional QuickBooks classes have become one of the mainstay training opportunities in the RUBA training portfolio. Much of this is due to the applicability of the material and quality of instruction. The contracted instructors, Joanna Knapp and Pati Crofut of Turnagain Press, have gained a positive reputation around the state with city bookkeepers and accountants. Another key element in the success and popularity of the regional QuickBooks classes is the effective partnership building. The RUBA program routinely partners with training organizations and regional health corporations to maximize the benefit to rural communities. In the case of this class, special thanks goes to the Alaska Training/Technical Assistance Center for administrative assistance, donation of training space, computer use, and help in advertising the class. RUBA Quarterly Report — 2nd Quarter FY09 -10- RUBA Program Scope of Report Anchorage: The Organizational Management for Rural Utilities course was presented in Anchorage during the week of December 1-5, 2008. Due to bad weather, not all registered participants were able to attend and the final class total was nine students from Anchor Point, Newhalen, Cordova, Anchorage, Sand Point, Cold Bay, and Saint Paul. The Aleutian Pribilof Island Association co-sponsored this course and provided the training room. 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. 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 21 students and 5 sanitation operators who attended the Utility Clerk Training, QuickBooks Pro Beginner’s Class, Organizational Management for Rural Utilities, or the Alaska Water Wastewater Management Association conference. The training funds require attendance and participation in the complete course prior to reimbursement being issued. A total of $19,432.01 was awarded to the 26 participants. RUBA Quarterly Report — 2nd Quarter FY09 -Il- RUBA Program Activity Map October 1 through December 31, 2008 Legend eZ On-Site Visits (ds Assessments & UTM Students e Vo; Kk; Seldovia Port Alexander © Thorne Bay F Kasaan Hydaburg td October — November — December 2008 2" Quarter FY09 - RUBA Report Table of Contents Koliganek Kwethluk Kwigillingok Larsen Bay Nanwalek Nightmute Nondalton 2295 Port Heiden Native Council.......... 101 Saint Mary’s .........ssesseee 107 Selawik..... 113 Shageluk 119 PUK Salk --..c2c..csssersssrseonrossesencssesensocsossossessnocescsensensrsasooesesseacseseenosissesessarcverscestusseesoeet 125 October — November — December 2008 2" Quarter FY09 - RUBA Report Table of Contents Non-RUBA Communities PRAM oscscescat sc. ccossoscenaccasseovsesseass+csstcasueeus=<ssdsatanseeses:sssestezset es covssuevsvavat (it. eursivest (oes 137 Anchor Point... 137 AMQOON ...ssssssssesssesesesesceeseseeesesesesesesseeeesseseseseneacess 138 Chefornnak ........ccsccssccsssssssscssessscssssessesssccsssesesees 138 Chenega Bay Cold Bay... Kasigluk... Kobuk.... Nunapitchuk.........ccscscsscssssssssssssssesssesssssssesesesssseseseeees Old Harbor Port Alexander... Quinhagak... 143 Seldovia........ 143 Stevens Village..........ccssssscsrscsssssssssecsesessssessssscesessssccssseseseccasessorsasasensasessaseseoseceseeces 143 T eM 0Y-..cscscescesseseovesseceuscosesensovenseasonsecssouseasessuveqseoseesscsecesoesoeeseissceveveosesdeassssstorsseacssossoos 144 Thorne Bay.. 144 EM OD Kresvoscase. 1s cosvsvenntcosesevsunsenssss ucsoneseasss:ansvsncnsesnsss css seeslaeus ts saassessseeseies |; oussesses cs ove 144 VOZMESENKA ......sssssesssessssssescessssssscsssssnscsssssesssecsesssssssssensssesescsseessseeseceseeesseeseessessssssees 145 October — November — December 2008 2" Quarter FY09 - RUBA Report Community Activity Reports Second Quarter FY09 October 1 — December 31, 2008 October — November — December 2008 2" Quarter FY09 - RUBA Report Akhiok Activity Report Community Overview Lead RUBA Staff: Tammy Helms, Anchorage Office oy 2007 Population: 33 Region: Kodiak Island Local Government: 2™ Class City oe . ; . ‘i Fates, tO Water is derived from a dam and reservoir on a small stream, is treated and stored. Akhiok provides a piped gravity water and sewer system that serves all 25 homes in the community. The community is currently boiling its drinking water-- a new water source is needed. A new landfill site is under development. Electricity is provided by City of Akhiok. RUBA Activity This Reporting Period RUBA staff traveled to the City of Akhiok October 27 and met with Vice-Mayor Dan McCoy to conduct a RUBA management assessment. The vice-mayor ‘wears many hats' in the community, including vice mayor, water operator, electric utility operator, and maintenance, and it was apparent during the visit that he is becoming overwhelmed with all the demands of the various positions and is in need of some relief. The City of Akhiok is currently not meeting all RUBA essential management indicators relating to the accounting system and the collection rate for the water/sewer/garbage utility services. Residents are charged a flat rate of $30 for water/sewer/garbage and $150 for electric (seniors and singles are charged $50 for electric). The collection rate is reportedly anywhere from 50% to almost 100%; the actual figure could not be verified with accounting records. The City of Akhiok will have to be proactive and consistent in order to make necessary changes that will satisfy the deficient RUBA essential indicators. RUBA staff will continue to provide assistance to the community and work towards meeting all RUBA indicators. The community should be congratulated on purchasing 23,000 gallons of fuel with no outside lender. The fuel will be used only for the electric generators. October — November — December 2008 2" Quarter FY09 - RUBA Report Capacity Indicators Essential Indicators Finances Yes No xl x xX Xl xl 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 &X & XI 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 Akhiok drafted, adopted and submitted a balanced FY 09 budget. All revenue and expenses for the water/sewer utility are listed within the budget. Currently no financial reports are being prepared or submitted to the policy making body, therefore it is unclear if there are sufficient revenue available to cover utility expenses. The city owns the electric generator that supplies electricity to the community and operates the electric company. Electricity is not billed to the inter-facilities of the city. The city recently purchased approximately 23,000 gallons of diesel for the generators. The community should be congratulated on purchasing the fuel independently without an outside lending source. The water and sewer revenues are not sufficient to cover operating expenses; therefore the city subsidizes its water and sewer utility with a combination of the community revenue sharing funds from the State of Alaska and office space rental from the local Native corporation. Accounting Systems Essential Indicators Yes XXX We 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. KX] 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. -8- October — November — December 2008 2" Quarter FY09 - RUBA Report Accounting System Comments:: Currently the city has not adopted a collection policy. It is recommended the council draft, adopt and implement a collection policy immediately. The city utilizes Corel WordPerfect for the monthly billing. The city began charging $30 for water/sewer/garbage in April 2008; before that time, customers were not being charged for service. Each monthly invoice shows the date of billing, description of services, amount due, amount paid and total amount due. Because they use a WordPerfect program for billing, there is no way to report on past due accounts and amounts other than manually calculating off of the WordPerfect program. Due to the small size of the community, this manual system for reporting is sufficient for accounts receivable. For accounts payable and payroll there is no computerized system; however they have a manual system in place that is effective. The current system for cash receipts to record incoming money is for staff to write a receipt of payment to the customer, enter the payment within the word perfect system under the customers name, then the Mayor or Vice Mayor makes a deposit to the bank. The city currently uses a checkbook register to record who checks are written to. This system does not accurately reflect which class or account the funds are to be expended from. 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. 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 reported the city has not filed 941 returns for the 4th quarter of 2007 and the first three quarters of 2008. The city has also not yet filed the third quarter Department of Labor report. Personnel System Essential Indicators Yes No 1 The utility has a posted workers compensation insurance Policy in effect. Sustainable Indicators XX] The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. The utility provides training opportunities to staff as needed and available. xX &% XX We October — November — December 2008 2" Quarter FY09 - RUBA Report Personnel System Comments: The City of Akhiok currently does not have any workers' compensation insurance policy. The city's current hiring process is historical and is not written. Job notices are posted with the job title and description for 10 days. Interested applicants apply at the city office. There is currently no personnel policy or current job descriptions for employees. Training opportunities to staff are provided as funds allow or opportunities by other sponsors come available. Organizational Management Essential Indicators Yes No x The entity that owns the utility is known and the entity that will operate the utility is set. XX] The policy making body is active in policy making of the utility. XX] The policy making body enforces utility policy. The utility has an adequately trained manager. The utility has an adequately trained bookkeeper. The utility has an adequately trained operator(s). X] The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators &X The utility has adopted an organizational chart that reflects the current structure. X The policy making body meets as required. X The utility complies with the “Open Meetings Act” for all meetings. NKK Organizational Management Comments: The council strives to hold their monthly meeting when a quorum is available; however enforcing actions of disconnections has historically been difficult. The mayor/utility operator attended the Organizational Management class held by RUBA in 2007. The vice-mayor/bookkeeper attended 2006 Financial Management training held by the RUBA program. The current utility operator is trained and holds a Provisional Level 1 certification in both water treatment and distribution. The City of Akhiok does not currently have a water/sewer ordinance, collection policy or personnel policy. It is recommended it work with RUBA staff to draft the necessary ordinances and policy. -10- October — November — December 2008 2" Quarter FY09 - RUBA Report Operation of Utility Essential Indicators Yes No x The utility operator(s) are actively working towards necessary certification. x The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators 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. X Utility facilities have not suffered any major problems/outages due to management issues that are unresolved. : KX] The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Consumer Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. XX] The utility maintains an inventory control list. &] The utility maintains a critical spare parts list. HERE Operation of Utility Comments: In speaking with Remote Maintenance Worker Steve Evavold of Village Safe Water, there is a preventative maintenance plan for the existing system. The current utility operator is trained and holds a Provisional Level | certification in both water treatment and distribution. Historically, the utility operator reports to the council when there is a problem or he can foresee one. The utility meets all required drinking water regulations and is not currently on the SNC list. The utility operator and council try to keep needed critical spare parts on hand. There is no written inventory or spare parts list; however, the operator has a mental count of control and spare parts within the plant. RUBA Activities For The Coming Quarter RUBA staff will continue to work with the City of Akhiok to meet the unmet indicators. -l1- October — November — December 2008 2" Quarter FY09 - RUBA Report Akiak Activity Report Community Overview Lead RUBA Staff: Flora Olrun, Bethel Office 2007 Population: 350 Region: Lower Kuskokwim od Local Government: Unincorporated A new well, water treatment plant and storage tank were 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 November, 2008. The reports are in their file located in the Bethel regional DCRA office. Their worker's compensation insurance is current through January 12, 2010 through Liberty Northwest. The last IRS report shows they are in compliance with filing requirements and deposits. As of October, 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 June, 2009. The Native Community of Akiak has 36 residential, one church, and two commercial customers connected to the piped water system. -13- October — November — December 2008 2" 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. 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. xl The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. Xl The utility is receiving revenues (user fees or other sources) sufficient to cover operating ex penses. Sustainable Indicators X The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. x YTD revenues are at a level equal to or above those budgeted. x YTD expenditures are at a level equal to or below those budgeted. Kl A monthly manager’s report is prepared. &X 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 November, 2008. The YTD revenues are above the YTD expenditures. They are current on all water/wastewater electric bills. The community has an adequate supply of fuel on hand. The council receives manager's reports at regularly scheduled monthly meetings, and budget amendments are passed when it is necessary. Accounting Systems Essential Indicators Yes No Xl The utility has adopted a collection policy and actively follows it. Kl The utility bills customers on a regular basis. Xl An accounts receivable system is in place which tracks customers and reports past due accounts and amounts. X An accounts payable system is in place. X The payroll system correctly calculates payroll and keeps records X A cash receipt system is in place that records incoming money and what it was for. &X The utility has a cash disbursement system that records how money was spent. Sustainable Indicators Xl A chart of accounts is used that identifies categories in a reasonable, usable manner. &X Monthly bank reconciliation’s have been completed for all utility accounts. X The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. -14- October — November — December 2008 2" Quarter FY09 - RUBA Report 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. Xl The utility is current on filing tax reports. x The utility is current on making tax deposits. xl If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The IRS and 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 December 15, 2008. Personnel System Essential Indicators Yes No o& The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators “& The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. x The utility has adequate written job descriptions for all positions. &] The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. The utility provides training opportunities to staff as needed and available. kX kX Ww October — November — December 2008 2" 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 HNKKHEX XK The utility has adopted an organizational chart that reflects the current structure. Kl The policy making body meets as required. Kl 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. -16- October — November — December 2008 an Quarter FY09 - RUBA Report Operation of Utility Essential Indicators Yes No Xl The utility operator(s) are actively working towards necessary certification. & The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators X The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. x The utility has a safety manual and holds safety meetings. xX Utility facilities have not suffered any major problems/outages due to management issues that are unresolved. & The utility is operating at the level of service that was proposed. Xi The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Consumer Confidence Report (CCR). & The utility is not on the Significant Non-Compliance (SNC) list. &] The utility maintains an inventory control list. &] The utility maintains a critical spare parts list. Operation of Utility Comments: The preventative maintenance plan is on file in the Bethel regional office. Documentation reflecting a weekly written status report by the operator to the Executive Director is on file. The Consumer Confidence Report dated 6/28/07 is on file in the Bethel regional office. The utility is currently on the significant noncompliance list. 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. -17- October — November — December 2008 2" Quarter FY09 - RUBA Report Alakanuk Activity Report Community Overview Lead RUBA Staff: Hazel Keezer, Bethel Office oy, 2007 Population: 681 Region: Lower Yukon od Local Government: 2™ Class City : . . Patna tO The City of Alakanuk operates the piped water and sewer system, the central watering point, flush tank and haul system, and washeteria/sauna service. The city council is the policy making body for the utility. Construction began in 1995 to provide piped water and sewer to 170 homes and the school. In 1998, 83 homes, the school and teacher's housing were first connected. Today, there are 132 utility customers hooked up to the system. Water is derived from the slough, treated, stored in a tank, and piped to most of the community. New facilities include a water treatment plant, heated 300,000-gallon water storage tank, vacuum sewage plant, sewage lagoon, arctic piping and household plumbing. The new subdivision has been completed with all homes connected to the piped system. There are plans to hook up the other side of the river in the near future. The new airport construction is on-going. RUBA Activity This Reporting Period RUBA contact this quarter was by telephone, fax and email. RUBA staff provided Utility Clerk's training in November in Bethel; the tribal administrator and newly hired bookkeeper from Alakanuk attended. -19- October — November — December 2008 2" 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. & Monthly financial reports are prepared and submitted to the policy making body. The utility is current in paying all water/wastewater electric bills. & Xx The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. &] The utility is receiving revenues (user fees or other sources) sufficient to cover operating ex penses. 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. &] Budget amendments are completed and adopted as necessary. Finances Comments: The city's budget for FY09 has not been adopted. A draft FY 09 water and sewer budget is the only detailed budget form completed. No monthly financial reports have been received since May 2008. The city currently has an installment agreement with Alaska Village Electric Cooperative to repay past due electric bills. The fuel purchase of 8,000 gallons had been made and there is an additional 10,000 gallons fuel supply in the city holding tanks. The monthly manager's report is given verbally to the council. -20- October — November — December 2008 2" Quarter FY09 - RUBA Report Accounting Systems Essential Indicators Yes No Xl The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. X An accounts receivable system is in place which track customers and reports past due accounts and amounts. Kl An accounts payable system is in place. Xi The payroll system correctly calculates payroll and keeps records X A cash receipt system is in place that records incoming money and what it was for. Xl The utility has a cash disbursement system that records how money was spent. Sustainable Indicators X A chart of accounts is used that identifies categories in a reasonable, usable manner. x Monthly bank reconciliation’s have been completed for all utility accounts. &) 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 utility ordinance was effective as of March 2008 and includes a collection policy. The grace period is 45 days for past due utility bills. The administrator enters and calculates payroll with QuickBooks Pro. A manual ledger is being used for accounts receivable to track utility payments. Tax Problems Essential Indicators Yes No X The utility has a system to accurately calculate, track, and report payroll tax liabilities. & OC The utility is current on filing tax reports. & The utility is current on making tax deposits. 1] If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The IRS deemed the city in compliance with federal employment tax report requirements; however, federal tax deposits are not current. There is a Notice of Federal Tax Lien recorded for 2004 2nd qtr and 2007 4th qtr. The Alaska Department of Labor reported that the city is current with state ESC tax requirements. -21- October — November — December 2008 2" Quarter FY09 - RUBA Report Personnel System Essential Indicators Yes No x The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators & The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. X The utility provides training opportunities to staff as needed and available. kX KX RR Personnel System Comments: Alakanuk is covered through Umialik Insurance Co. effective 2/08 to 2/09. Job openings are posted in at least three public places. The probationary period is three months from the date of appointment. The administrator provides on the job training for new employees and other training is given if funding is available. Organizational Management Essential Indicators Yes 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 XK The policy making body meets as required. Kl The utility complies with the “Open Meetings Act” for all meetings. HRKKRR ~222 October — November — December 2008 2" Quarter FY09 - RUBA Report Organizational Management Comments: The City of Alakanuk is known to manage the utility. The city council meets regularly once a month. The administrator has been in his position for about two years and has received grant, QuickBooks, and RUBA utility management training. The water operator has Water Distribution 1 and Water Treatment 1 certifications. Operation of Utility Essential Indicators Yes xX 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. Xx The utility has a safety manual and holds safety meetings. Kl 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. XI The operator provides status reports to the manager on a routine basis. xX 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. x The utility maintains a critical spare parts list. Operation of Utility Comments: Alakanuk Water System is on the significant non-compliance list for violations Stage 1 violations and Surface Water. The water operator has Water Distribution land Water Treatment | certifications. RUBA Activities For The Coming Quarter RUBA staff will monitor the utility and provide assistance when requested. -23- October — November — December 2008 2" Quarter FY09 - RUBA Report Atmautluak Activity Report Community Overview Lead RUBA Staff: Ken Berlin, Bethel Office 2007 Population: 304 Region: Lower Kuskokwim od Local Government: Traditional Council Residents haul treated well water, or water from the Pitmiktakik River. Honeybuckets are hauled by residents to sewage bunkers. None of the homes has plumbing. The school is connected to the water plant. Funds have been requested to conduct a master plan for future infrastructure development, and to construct. RUBA Activity This Reporting Period Bethel RUBA staff attempts to contact Atmautluak Traditional Council were unsuccessful this quarter. No documentation supporting requirements for capacity indicators was received; therefore, those indicators are marked deficient until] documentation supporting them is received. Atmautluak Traditional Council has hired an off-site financial accountant who is not submitting reports to RUBA or the council. RUBA has corresponded with the accountant and provided samples of formats for financial reports. As of this date, Atmautluak Traditional Council does not meet essential capacity indicators in the areas of finances, accounting systems, tax problems, personnel issues and organizational management. Until these indicator deficiencies are met, funding for sanitation upgrades will not be released. October — November — December 2008 2" Quarter FY09 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No K 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. XX] The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. XJ) 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. X Budget amendments are completed and adopted as necessary. Hex 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. 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. HHREK KR a WOR -26- October — November — December 2008 2" Quarter FY09 - RUBA Report Accounting System Comments: The utilities are subsidized through sales tax and gaming. Accounting is done with QuickBooks Pro. ATC charges $30 per month for honey bucket haul but the collection rate is very low due to the high cost of other basic needs of residents. The collection policy is enforced as much as possible but the tribe is not aggressive in this area. Tax Problems Essential Indicators Yes No x The utility has a system to accurately calculate, track, and report payroll tax liabilities. KX] 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: 941 Ist quarterly report was filed but payroll taxes were not fully paid. State DOL/ESC 1st quarterly report has not been filed nor paid. Payroll tax deposits have not been paid either. Previous contact with the tribe stated they were working with the IRS on these problems. Personnel System Essential Indicators Yes No I 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. & RW Personnel System Comments: The tribe has not sent RUBA a copy of their insurance certificate. The personnel policy is being amended. A personnel evaluation form is completed and annual evaluations will be conducted for each employee annually starting this year. -27- October — November — December 2008 2" 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. XX The policy making body enforces utility policy. The utility has an adequately trained manager. The utility has an adequately trained bookkeeper. The utility has an adequately trained operator(s). The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators The utility has adopted an organizational chart that reflects the current structure. & x) The policy making body meets as required. 4} The utility complies with the “Open Meetings Act” for all meetings. WHKX 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. 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. The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Consumer Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. Xl The utility maintains an inventory control list. x The utility maintains a critical spare parts list. Ke Xe Xk Operation of Utility Comments: The SNC list shows violations in Stage 1 and Arsenic testing for the utility. -28- October — November — December 2008 2" Quarter FY09 - RUBA 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. RUBA staff will contact Atmautluak to work on problems listed above. -29- October — November — December 2008 '2™ Quarter FY09 - RUBA Report Elim Activity Report Community Overview Lead RUBA Staff: Josie Bahnke, Nome Regional Office 2007 Population: 309 Region: Bering Straits Local Governments: 2" Class City od Water is derived from a well and is treated. BIA and HUD housing, and water and sewer systems built by PHS in 1974, have provided residents with piped water and sewer, indoor water heaters and plumbing and in-home washers and dryers. Waste flows out to a sewage treatment plant with ocean outfall. The landfill is not permitted. The city needs a new water source, since water shortages occur and to replace cracked PVC pipes. RUBA Activity This Reporting Period The Nome RUBA staff assigned to serve Elim resigned this quarter and recruitment is ongoing for a replacement. In the meantime, RUBA staff member Karlin Itchoak provided service regarding training opportunities and city employee responsibilities. The new city clerk has completed QuickBooks training and requested that RUBA keep her informed of future training opportunities. 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. Elim signed a RUBA assistance agreement in September. The agreement assures the community that RUBA staff will schedule quarterly site visits to provide training and management assistance. Due to the staff turnover, there was no site visit made in this quarter. That lack will be remedied next quarter. They are meeting all but one essential management indicator. -31- October — November — December 2008 2" Quarter FY09 - RUBA Report Capacity Indicators Essential Indicators Finances Yes No x xX We & 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 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 Elim adopted a FY09 budget appropriations ordinance on June 19, 2008. With RUBA assistance, the council adopted an amended budget with corrected budget detail sheets on August 12, 2008. The council is receiving financial reports that compare monthly income and expenses but do not compare to the budget. The city purchased approximately 27,000 gallons of heating fuel at $4.89 per gallon for a total fuel bill of $132,030. The fuel was purchased by Norton Sound Economic Ddevelopment Corporation on the City of Elim's behalf and they have offered alternative payment options that include monthly payments or deduction from the city's 2008 Community Benefit Share ($100,000). The operator provides a detailed written report that is provided to the council monthly. Accounting Systems Essential Indicators Yes No XXXK RK The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. An accounts receivable system is in place which track customers and reports past due accounts and amounts. An accounts payable system is in place. The payroll system correctly calculates payroll and keeps records A cash receipt system is in place that records incoming money and what it was for. The Utility has a cash disbursement system that records how money was spent. Su @ HK 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. October — November — December 2008 2" Quarter FY09 - RUBA Report Accounting System Comments: The City of Elim utilizes a combination of manual and computerized financial record keeping systems. The accounting software, QuickBooks Pro 2007 version, is utilized consistently. A NEBS receipt system is utilized to document sales tax and other payments. The city recently contracted with the ANTHC to provide water and sewer customer billing services. The City of Elim follows their collection policy consistently and as a result, they have a high collection rate. Tax Problems Essential Indicators Yes No X The utility has a system to accurately calculate, track, and report payroll tax liabilities. X The utility is current on filing tax reports. X The utility is current on making tax deposits. X If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The City of Elim is current with State and Federal deposits and reporting. Personnel System Essential Indicators Yes No Xx The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators X The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. XxX 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. X The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. XX The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. &X The utility provides training opportunities to staff as needed and available. -33- October — November — December 2008 au Quarter FY09 - RUBA Report Personnel System Comments: The City of Elim is currently insured by the Alaska Municipal League, Joint Insurance Association (AML-JIA) and in good standing for FY 2009. The City of Elim follows their personnel policy and has written job descriptions for all employees. Staff has expressed a desire to update policies and this will be included in the RUBA workplan. RUBA staff provided assistance with job descriptions revisions this quarter. However, work needs to be done on a formal orientation for new hires with job oversight and training. 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. Xl The policy making body is active in policy making of the utility. Xl The policy making body enforces utility policy. Xl The utility has an adequately trained manager. &] The utility has an adequately trained bookkeeper. xX The utility has an adequately trained operator(s). X The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators x The utility has adopted an organizational chart that reflects the current structure. x The policy making body meets as required. X The utility complies with the open meeting act for all meetings. Organizational Management Comments: The city is the owner of the water and sewer utility. The decision making authority and enforcement of utility policy is vested in the city council. Chapter 36-Water and Sewer System of the Code of Ordinances outlines the rules and regulations of the utility. A committee of the council has recently been formed to address utility issues and has expressed interest in RUBA assistance with ordinance amendments. A review of the ordinance will be included in the RUBA workplan. The new city clerk is responsible for utility management and will require Utility Management training in the future. The new bookkeeper moved to Elim from Golovin and previously worked there as theutility clerk. -34- October — November — December 2008 2™ Quarter FY09 - RUBA Report Operation of Utility Essential Indicators Yes No X The utility operator(s) are actively working towards necessary certification. X The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators 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. XRERKRK & Operation of Utility Comments: The utility operator is certified in water distribution and water treatment at the Operator in Training (OIT) level. He also has provisional certification in wastewater collection and wastewater treatment. In addition to salary, utility operator incentive pay is provided on a monthly basis for water sampling, documenting daily activities, fuel tank and water meter readings, connection and disconnection of homes to the water and sewer system, and safety inspections. The 2007 Consumer Confidence Report was completed and distributed with the assistance of Norton Sound Health Corporation, Office of Environmental Health. At present, the system has returned to compliance with the Surface Water Treatment Rule (SWTR) and meets all regulatory criteria. In partnership with ANTHC, the city has project funding for water treatment plant upgrades, water service line connections, and rehabilitation of water/sewer mainline and service lines. RUBA Activities for the Coming Quarter: Nome RUBA staff will provide ongoing technical assistance and training to the City of Elim staff regarding financial matters and ordinance development. RUBA staff continues to be available to provide assistance with any management capacity indicators that are not being met. October — November — December 2008 2" 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 od The City of Emmonak owns and operates the piped “Re pe water/sewer system. The city also owns and operates ONO 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 contacted Leon Kiana, the city's newly hired manager. He and the city treasurer are working on completing the budget and monthly financial statement. Once a realistic budget and the monthly financial statements are completed, the city will have met all RUBA essential management indicators. -37- October — November — December 2008 2" Quarter FY09 - RUBA Report Capacity Indicators Essential Indicators Finances Yes No x x X xl x xX All revenue and expenses for the utility are listed in the utility budget. The utility has adopted a balanced realistic budget. Monthly financial reports are prepared and submitted to the policy making body. The utility is current in paying all water/wastewater electric bills. The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators & & Xl & &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 budget for FY09 has not been adopted by the city council. Monthly financial reports are not currently being prepared and submitted to the council. The city is current on paying all electric bills to Alaska Village Electric Cooperative. A winter fuel purchase of 8,111 gallons was made and delivered for the utility. 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 X KKK KH No The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. An accounts receivable system is in place which track customers and reports past due accounts and amounts. An accounts payable system is in place. The payroll system correctly calculates payroll and keeps records A cash receipt system is in place that records incoming money and what it was for. The Utility has a cash disbursement system that records how money was spent. Su a XR 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. -38- October — November — December 2008 2” Quarter FY09 - RUBA Report Accounting System Comments: The City of Emmonak enforces a collection policy. There is a 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 gaming. Customers must pay the monthly minimum if there are three months past due. 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 the purchase order was provided. Purchase orders require written approval from the manager or the bookkeeper. The purchase order form includes who requests the purchase, the department, account, and unit price. Tax Problems Essential Indicators Yes No 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: IRS reported on September 23, 2008, the city was deemed compliant for 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 Xx The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators X The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. 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. ~392 October — November — December 2008 2" Quarter FY09 - RUBA Report Personnel System Comments: Emmonak is covered through Umialik Insurance Co. effective 2/08 to 2/09. They have adopted a personnel policy that includes sections for hiring, evaluation, and probation. Vacant positions are posted until filled. New hires are on a probationary period for three months and performance evaluations are done by the city council or the city manager. The city manager and city council have the authority to hire. The Emmonak city council screens and hires for the positions of police chief, clerk, treasurer and city attorney. 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. 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). — 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. XX The policy making body meets as required. X The utility complies with the open meeting act for all meetings. Organizational Management Comments: The City of Emmonak is known as the provider for water and sewer services and has adopted an ordinance that authorizes it to operate. The city manager position was vacant but was filled recently. The bookkeeper worked in accounts payable prior to taking the position as the city's full time bookkeeper. The water operator currently holds Water Distribution 2, Wastewater Treatment 1, and Wastewater Collection 1 certificates. Meeting minutes for May and July have been collected. There is no record of the council meeting for August of 2008. Last known meeting was held on September 11, 2008. -40- October — November — December 2008 2" Quarter FY09 - RUBA Report Operation of Utility Essential Indicators Yes No x The utility operator(s) are actively working towards necessary certification. x The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). 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. & KKK WX Xx 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 assistance actions. A water and sewer operational manual was provided. The manual had daily and monthly systems routines in place. The water operator currently holds Water Distribution 2, Wastewater Treatment 1, and Wastewater Collection 1 certificates. RUBA Activities for the Coming Quarter: RUBA staff is available to provide assistance with any management capacity indicators that are not being met. -41- October — November — December 2008 2" Quarter FY09 - RUBA Report False Pass Activity Report Community Overview Lead RUBA Staff: Julie Dirks, Anchorage Office 2007 Population: 46 Region: Aleutians Local Government: 2" Class City ed City provided services include piped water, electric, refuse collection, landfill, public safety office, volunteer fire, dock, airport (state contract), roads, community hall, youth center, Alaska Rural Communications Service (ARCS) television broadcast support, library, boat haul-out, pet registration, driver licenses, and voter registration. The city also owns and maintains the buildings housing the post office, library, and clinic. Construction of Bering Pacific Seafoods is complete and the first year of operation over. A small boat harbor is near completion. Water is derived from a nearby spring and reservoir and is treated and stored in two 60,000-gallon tanks. Most homes are connected to the piped water system. Over 80% of the homes are fully plumbed. Most residents have individual septic tanks, however many are experiencing leachfield failure. While not currently operating, wastewater from seafood processing flows directly into an outfall line. A community-wide septic system is designed and funding for construction is being sought. RUBA Activity This Reporting Period A trip was made to False Pass October 6-9, 2008. The RUBA assessment was updated during that trip. Some of the requested documentation was provided while RUBA staff were present in False Pass; the remainder was to be sent by the city clerk at a later date. Additional documentation has not yet been received though several written and verbal requests were made throughout the quarter. The FY 09 operating budget shows that not all utility expenditures are being tracked separately. A sample chart of accounts and sample QuickBooks data file was done by RUBA staff and sent to False Pass. The deputy city clerk informed RUBA staff that city staff were too busy at this time to deal with revising their accounting system. City staff was enrolled in UTM Organizational Management training this quarter, but did not attend. The Alaska Department of Labor recently imposed a lien for the quarter ending 6/30/08. IRS has informed RUBA staff that the city did not file 941 reports for quarters ending 9/30/07 through 6/30/08. The city is applying for funds from the USDA Rural Development Program to develop a new landfill site. Financial statements submitted by the city to USDA were unacceptable; the balance sheet in particular had problems. USDA recommended that city staff contact RUBA for assistance with their accounting issues. The city clerk sent a balance sheet for the overall city, landfill, and water utility on December 22, 2008 for RUBA review. - 43 - October — November — December 2008 2"! Quarter FY09 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No &] All revenue and expenses for the utility are listed in the utility budget. XX] The utility has adopted a balanced realistic budget. XX] Monthly financial reports are prepared and submitted to the policy making body. KX] The utility is current in paying all water/wastewater electric bills. x The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. &] The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. YTD revenues are at a level equal to or above those budgeted. YTD expenditures are at a level equal to or below those budgeted. A monthly manager’s report is prepared. x Budget amendments are completed and adopted as necessary. & Daa 4 Finances Comments: The FY09 operating budget tracks utility revenue and some utility expenses. Utility personnel expenses, insurance, and other utility expenses are not being tracked separately from other city expenses. City staff report that a monthly manager's report is provided verbally. A copy of meeting minutes that mention a report being given was requested but not received. 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. HKXKK XK Accounting System Comments: City staff use QuickBooks Pro accounting software supplemented by Excel spreadsheets. The chart of accounts is confusing and needs to be revised. No documentation showing that bank accounts have been reconciled regularly has been provided. -44- October — November — December 2008 2” 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. If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Kik& Tax Problems Comments: The City of False Pass has met current filing and deposit requirements per the State DOL staff. The IRS reports that 941 for 9/30/07, 12/31/07, 3/31/08, and 6/30/08 have not been received. The Alaska Department of Labor issued a lien for 6/30/08 ESC on False Pass. Personnel System Essential Indicators Yes No X The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators X The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. X The utility has adequate written job descriptions for all positions. &X The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. X The utility has an adequate written hiring process. XK] 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 notice of insurance for worker’s compensation was requested but has not been received by RUBA staff. -45- October — November — December 2008 2" Quarter FY09 - RUBA Report Organizational Management Essential Indicators Yes No Kl The entity that owns the utility is known and the entity that will operate the utility is set. Kl The policy making body is active in policy making of the utility. XX The policy making body enforces utility policy. XX The utility has an adequately trained manager. XX] The utility has an adequately trained bookkeeper. &] The utility has an adequately trained operator(s). & The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators Xl 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: The local governing body is active in amending and adopting utility policy. They meet as required and the meetings are noticed properly. The current operator has been on the job for several months but is not currently certified. He has experience working on small water systems. Remote Maintenance Worker (RMW) Doug Abbas travels to the community to provide on-site operator training as the community has cut all travel and training due to budget constraints. Operation of Utility Essential Indicators Yes No X The utility operator(s) are actively working towards necessary certification. Xl The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators x The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. XX] The utility has a safety manual and holds safety meetings. x Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. Xl The utility is operating at the level of service that was proposed. x The operator provides status reports to the manager on a routine basis. x The utility has completed and distributed its Community Confidence Report (CCR). X The utility is not on the Significant Non-Compliance (SNC) list. & The utility maintains an inventory control list. x The utility maintains a critical spare parts list. Operation of Utility Comments: The operator needs to renew his water certification. The regional RMW makes periodic trips to the area and assists operators that are working to become certified. The utility operator presents a monthly report verbally at each council meeting. - 46 - October — November — December 2008 2" Quarter FY09 - RUBA Report RUBA Activities For The Coming Quarter RUBA staff will assist the City of False Pass as requested with resolving issues with their chart of accounts and QuickBooks set-up, as well as setting up their FY10 budget. RUBA will assist as requested with resolving payroll tax reporting issues and other assistance will be provided by phone, email, and fax. The deputy city clerk plans to attend QuickBooks training January 26-29, 2009. -47- October — November — December 2008 2 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 washeteria central watering point, provides for honey bucket haul, and has a sewage lagoon. The tribe, the policy making body for the utility, assumed water/sewer utility management from a community utility board in August 2005. Currently, treated well water is hauled from the watering point at the washeteria/clinic facility. Most homes are currently not plumbed. A piped water and gravity sewer system with plumbing for 70 + homes is under construction. The project funding is expected to plumb homes including installation of fixtures. RUBA Activity This Reporting Period The Native Village of Goodnews Bay continues jointly managing the water/sewer utility with the Alaska Native Tribal Health Consortium's Alaska Rural Utility Collaborative (ARUC). The RUBA Assessment of Management Indicators, a special sanitation grant condition, conducted for ARUC is updated periodically to reflect the current status of RUBA indicators. The community water-sewer project, led by the Alaska Native Tribal Health Consortium (ANTHC), remains underway and is nearing completion. The city is reportedly staffing the washeteria which, according to ANTHC officials, will be closed upon final installation of plumbing into resident's homes and completion of the sanitation project next summer. -~49- October — November — December 2008 2" Quarter FY09 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No 4} All revenue and expenses for the utility are listed in the utility budget. x The utility has adopted a balanced realistic budget. x Monthly financial reports are prepared and submitted to the policy making body. x The utility is current in paying all water/wastewater electric bills. x The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. x The utility is receiving revenues (user fees or other sources) sufficient to cover operating ex penses. 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. RIK Finances Comments: The utility budget is balanced and realistic. ARUC staff produce monthly financial reports presenting year-to-date activity. Year-to-date water/sewer expenditures exceeded revenues through October 2008; however, ARUC subsidizes the utility when revenues fall short. The utility is current on its electric bills and indicates fuel is sufficient for operations. Manager's reports are prepared, and budgets, in prior quarters, were amended as necessary. Accounting Systems Essential Indicators Yes No x The utility has adopted a collection policy and actively follows it. Kl 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. Xl The payroll system correctly calculates payroll and keeps records A cash receipt system is in place that records incoming money and what it was for. xl The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators xl A chart of accounts is used that identifies categories in a reasonable, usable manner. x Monthly bank reconciliation’s have been completed for all utility accounts. X The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. - 50- October — November — December 2008 2" Quarter FY09 - RUBA Report Accounting System Comments: The ARUC bills customers consistently. ARUC operates under an agreement with the village council and a water/sewer ordinance that includes a collections policy. ARUC maintains a workers compensation policy and uses computerized accounting to monitor and track finances. ARUC maintains accounting records including accounts payable, receivable, and payroll under direction of a utility manager based in their central office in Anchorage. ARUC maintains a chart of accounts, reconciles bank accounts, and utilizes a purchasing system that requires approval prior to purchase. Tax Problems Essential Indicators Yes No Kl The utility has a system to accurately calculate, track, and report payroll tax liabilities. & The utility is current on filing tax reports. x The utility is current on making tax deposits. X If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: According to the IRS Taxpayer Advocate Service on December 30, 2008, the ARUC is meeting its federal tax obligations. On December 30, 2008 the Alaska Department of Labor confirmed ARUC is meeting Alaska ESC tax obligations for the quarter ending September 30, 2008. 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. XK 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. &X The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. xX The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. & The utility provides training opportunities to staff as needed and available. Personnel System Comments: Workers compensation insurance coverage, purchased for ANTHC through Alaska National Insurance Company is reportedly current until October 1, 2009. ARUC abides by a comprehensive personnel policy, maintains personnel folders, utilizes a probationary period for new hires, and provides training opportunities to staff. -51- October — November — December 2008 2" Quarter FY09 - RUBA Report Organizational Management Essential Indicators Yes & WHNRKE 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 xX & & The utility has adopted an organizational chart that reflects the current structure. The policy making body meets as required. The utility complies with the open meeting act for all meetings. Organizational Management Comments: ARUC oversees water/sewer utility management with the village council through a written, contractual agreement, and actively enforces utility policy. According to the agreement, ARUC is to meet with an advisory council that includes representation from the community. A water/sewer ordinance is in place. ARUC continues managing utility billing and collection services. The water operator is trained. ARUC employs trained bookkeeping and management staff. Operation of Utility Essential Indicators Yes & I The utility operator(s) are actively working towards necessary certification. The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators XI XIN RRO 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. -52- October — November — December 2008 2" Quarter FY09 - RUBA Report ——$—$—————————— eee ee A KepOre 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 November 13, 2008, the utility is presently on the SNC list for failure to submit a waiver renewal for SOC/OOC. RUBA recommends resolution of the violation in accordance with recommendations advised by ADEC. RUBA Activities For The Coming Quarter RUBA will maintain contact with the Native Village of Goodnews Bay and will check in periodically with ARUC as they strive to maintain compliance with sanitation grant conditions. -53- October — November — December 2008 2" Quarter FY09 - RUBA Report Karluk Activity Report Community Overview Lead RUBA Staff: Tammy Helms, Anchorage Office 2007 Population: 26 Region: Kodiak Island Local Governments: Unorganized od The Indian Health Service constructed a piped water Neha, ee APT” and community septic system in 1978. Water is supplied by a creek, is treated and stored in a 50,000- gallon tank. All occupied homes are fully plumbed. A feasibility study is needed to examine alternatives for water treatment, sewage disposal and solid waste. There is no refuse collection service, and the landfill is a temporary, unpermitted site. The school organizes aluminum recycling. RUBA Activity This Reporting Period On October 27, RUBA staff met with the Karluk IRA Tribal President to conduct a RUBA management assessment. The Karluk IRA Tribal Council is currently not meeting all of the essential management indicators. Karluk has a rate set for water/sewer service and has even applied for and received the RCA Provisional Certificate of Public Convenience and Necessity; however, they are not billing their water/sewer customers for service. The community utilizes Power Stat meters for electricity that require payment in advance and the utility clerk is researching the possibility of adding the water/sewer charge to the Power Stats to streamline collections. The tribe is fortunate in the fact their staff has been stable and reliable for many years, but the administration will have to be proactive and consistent in making the necessary changes that will satisfy the deficient essential indicators. RUBA staff will continue to provide assistance to the community and work towards meeting all RUBA management indicators. October — November — December 2008 2" Quarter FY09 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No b 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. Xx & 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 ex penses. Sustainable Indicators XX] The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. XX] YTD revenues are at a level equal to or above those budgeted. XK] YTD expenditures are at a level equal to or below those budgeted. 4} A monthly manager’s report is prepared. &X Budget amendments are completed and adopted as necessary. Finances Comments: Currently, the tribal council is not charging for water/sewer services. In 2008, the tribe applied for and received the RCA provisional certification, which included a rate schedule. The council would like to review those rates before implementing them and are preparing to do so in a future meeting. Until that time, the tribe is using the IHS funds they receive to subsidize the water utility. The tribe does not have a specified water/sewer budget, therefore they are unable to create monthly financial reports that accurately show and compare the YTD revenue and expenses to annual budgeted amounts; however, they do have an entity budget for the programs run by the tribal council and financial reports for those programs are presented to the council at the monthly meetings. In 2007, the tribe switched accountants and began a more hands on approach to the finances of the tribe. Although the tribal council has an accountant, the tribal staff has been trained to enter data and write checks using the QuickBooks program. The tribe owns the electric generators that supply electricity to the community and operate the Alutiiq Light and Power Company. Electricity is not billed to the interfaculty’s of the tribe. In the winter of 2008, the community submitted an emergency declaration because the Delta Western barge did not arrive with the community's fuel supply. The tribe ultimately had to fly fuel to the community at a high cost but has since received a fuel delivery that will last approximately 1.5 years. Manager/ operator reports are given verbally when requested from the council or when there are problems or changes. - 56- October — November — December 2008 2" 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. XX] 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. NXE 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: As part of the approval process for the RCA provisional certification the tribe adopted a billing and collection policy; however, the council is uncertain of how well the policy will work because the locations of all the curb stops are unknown. The tribe utilizes QuickBooks for program revenue, accounts payable and payroll. The QuickBooks system is set up properly and will be a tool in the water/sewer accounts receivable once the tribe begins charging customers. Tax Problems Essential Indicators Yes No xX The utility has a system to accurately calculate, track,.and report payroll tax liabilities. XX] The utility is current on filing tax reports. XX] The utility is current on making tax deposits. XX Ifthere are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: As stated previously, the tribe has a QuickBooks system that accurately tracks, calculates and reports payroll tax liabilities. The IRS has reported the tribe owes federal 941 taxes for the 2nd qtr of 2008 and has not filed for the 3rd qtr of 2008. A 57 October — November — December 2008 2" Quarter FY09 - RUBA Report Personnel System Essential Indicators Yes No xX] The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators X The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. 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. Xl The utility has an adequate written hiring process. XK The utility has personnel folders on every employee that contain at least: 1-9, 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 Karluk IRA Tribal Council has a posted workers compensation insurance policy in effect from 1/30/08 to 1/30/09 with AK National Insurance. The tribe reports they have adopted a written personnel policy and follow it closely. The probation period for new hires is 90 days. Each employee file contains a minimum of a written job description, W-2, and an I-9. Training opportunities to staff are provided as funds allow or opportunities by other sponsors come available. 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. & 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). 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. & & The policy making body meets as required. X The utility complies with the open meeting act for all meetings. Organizational Management Comments: The community members acknowledge the Karluk IRA tribe as the governing body operating the water/sewer utility. The council meets monthly and is active in policy making. As stated above, the council would like to review the rate and collection policy before implementing them and are preparing to do so in a future meeting. The utility manager is also the water operator and is certified as a small treated water system operator. - 58 - October — November — December 2008 2" Quarter FY09 - RUBA Report Operation of Utility Essential Indicators Yes No Xx The utility operator(s) are actively working towards necessary certification. xX The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators &X The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. & The utility has a safety manual and holds safety meetings. x Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. KX] The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. &] The utility maintains an inventory control list. &X] The utility maintains a critical spare parts list. KKX Operation of Utility Comments: The Karluk IRA Tribal Council has applied for and has received their RCA Provisional Certification. A preventative maintenance plan was developed for the sanitation facility in the early 1980s when the system was originally constructed. Currently, the RMW for the community works closely with the utility operator to maintain the system. The utility operator reports verbally to the Tribal President when there is a problem, she can foresee one, or to report the system is running well. A copy of the CCR was completed with the help of ADEC. The utility operator and council try to keep needed critical spare parts on hand. There is no written inventory or spare parts list; however, the operator has a mental count of control and spare parts within the plant. RUBA Activities For The Coming Quarter As long as the village keeps actively working on their own behalf, RUBA support should be provided. RUBA staff and Village Safe Water staff will continue to communicate on the upcoming needs of Karluk and work on meeting the unmet indicators. -~59- October — November — December 2008 2" 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 od 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. During the quarter the village administrator left the position. The water operator and village council president are presently covering day-to-day administrative tasks. RUBA continues offering assistance to the council which at the time of this report was working to resolve several deficient RUBA essential indicators. Koliganek does not meet all essential capacity indicators at this time. Areas identified with deficiencies include finances, accounting systems, tax problems, personnel system, and organizational management. RUBA staff will maintain contact with the village council and will continue to provide assistance upon request. 261- October — November — December 2008 2" Quarter FY09 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No XX) All revenue and expenses for the utility are listed in the utility budget. XX] The utility has adopted a balanced realistic budget. X<] Monthly financial reports are prepared and submitted to the policy making body. x The utility is current in paying all water/wastewater electric bills. Xd The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. KI 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. NHK 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. RUBA requested a budget upon adoption, offered assistance, and awaits a response. Staff use QuickBooks for some, but not all, 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 and will update this report upon receipt. RUBA provided a sample monthly financial report template along with an orientation to the template. Water/sewer revenues include a subsidy from a known source. Fuel supplies remain sufficient according to council staff. 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. -62- October — November — December 2008 2” Quarter FY09 - RUBA Report Accounting Systems Essential Indicators Yes No XX] The utility has adopted a collection policy and actively follows it. X] The utility bills customers on a regular basis. An accounts receivable system is in place which track customers and reports past due accounts and amounts. An accounts payable system is in place. The payroll system correctly calculates payroll and keeps records 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. KKKK Sustainable Indicators xl A chart of accounts is used that identifies categories in a reasonable, usable manner. XX] Monthly bank reconciliation’s have been completed for all utility accounts. &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: In prior quarters the utility enforced the water/sewer collections policies but did not have in place a water/sewer ordinance. RUBA awaits confirmation from the council that collections are presently being enforced. RUBA provided a sample ordinance including a collection policy and offered assistance upon request. In prior quarters the administrator reconciled bank accounts monthly, maintained manual customer ledgers, and utilized some, but not all, available QuickBooks computerized accounting modules. Staff use QuickBooks for processing payroll to facilitate accurate compensation and payroll tax calculations. Whether these tasks are being carried out now is unclear; RUBA awaits confirmation from the village council. 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. Xl The utility is current on filing tax reports. XX] The utility is current on making tax deposits. x If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: According to correspondence from the IRS Taxpayer Advocate Service on December 30, 2008, the council is presently complying with most but not all federal tax reporting and payment obligations. Correspondence from the Alaska Department of Labor on December 30, 2008 indicates the council is complying with employment security division tax requirements. -63- October — November — December 2008 2" Quarter FY09 - RUBA Report Personnel System Essential Indicators Yes No XK 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. &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: -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. Xl The utility provides training opportunities to staff as needed and available. Personnel System Comments: The employer's notice of insurance through Liberty Northwest shows coverage for a one-year period ending July 1, 2008. RUBA has requested a copy of the current notice and will update this report upon receipt. 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. 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. XX] The policy making body enforces utility policy. XX] The utility has an adequately trained manager. XX] The utility has an adequately trained bookkeeper. x The utility has an adequately trained operator(s). &] The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators The utility has adopted an organizational chart that reflects the current structure. Kl The policy making body meets as required. ® The utility complies with the open meeting act for all meetings. -64- October — November — December 2008 2" Quarter FY09 - RUBA Report 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 who served as bookkeeper and utility manager in prior quarters was trained and has several years of experience; it is unclear at this time if the council has hired a trained administrator. A trained water operator 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 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. XX] The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. XX] The utility maintains an inventory control list. The utility maintains a critical spare parts list. X RXR 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 will continue to provide assistance upon request. October — November — December 2008 2” Quarter FY09 - RUBA Report Kwethluk Activity Report Community Overview Lead RUBA Staff: Ken Berlin, Bethel Office 2007 Population: 192 Region: Dillingham Local Governments: Tribal Council od 4; The City of Kwethluk operates the water treatment Neate, AP” plant, washeteria, garbage collection, and the honey-bucket haul system for the community. The City of Kwethluk, along with the Sanitation Committee, is the policy making body for the utility. A new washeteria/water treatment plant is still under construction through Alaska Native Tribal Health Consortium (ANTHC) engineering services. The school and teachers' housing have their own water sewer systems. There are honeybucket bins located sparingly throughout the community for the container haul system; these are hauled to the sewage lagoon on a regular basis. Very few homes have running water or plumbing for showers, but many residents have sauna/steam bath houses. RUBA Activity This Reporting Period Bethel RUBA staff maintained contact with Kwethluk and received the monthly finance reports through November 2008. Review of these finance reports shows Kwethluk to continue meeting finance essential indicators. Bethel RUBA staff received a copy of a joint resolution from the City of Kwethluk, Organized Village of Kwethluk, and Kwelthluk Incorporated declaring a state of emergency due to a shortage of fuel in the community. The high school and the city are providing a limited amount of fuel per day for residents. The electric utility has approximately 2400 gallons left in their reserve tanks. The fuel delivery barge had to turn back due to early icing in the river. The Kuskokwim river froze up early this year and caught everyone by surprise. Once the limited amount of fuel is depleted, fuel will have to be flown in at great expense to everyone. -67- October — November — December 2008 2" Quarter FY09 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No 4} All revenue and expenses for the utility are listed in the utility budget. x The utility has adopted a balanced realistic budget. x Monthly financial reports are prepared and submitted to the policy making body. x The utility is current in paying all water/wastewater electric bills. x The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. ® 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. MMR Finances Comments: The FY 2009 budget is balanced and adopted. RUBA has been provided copies of finance reports through November 2008. Electric bills are paid when received and fuel was ordered for the washeteria and other city buildings. As noted above, the fuel was ordered and paid for but not delivered due to an icing problem. Fuel may have to be flown in at great expense which may effect the revenues for the utility. Accounting Systems Essential Indicators Yes No x The utility has adopted a collection policy and actively follows it. x The utility bills customers on a regular basis. x An accounts receivable system is in place which track customers and reports past due accounts and amounts. xl An accounts payable system is in place. Xl 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. Xx The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators x A chart of accounts is used that identifies categories in a reasonable, usable manner. xl Monthly bank reconciliation’s have been completed for all utility accounts. | The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. - 68 - October — November — December 2008 2” Quarter FY09 - RUBA Report 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 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: Copies of all quarterly reports and tax deposits are on file in the Bethel office. The IRS and Department of Labor have deemed the utility compliant with tax issues. Personnel System Essential Indicators _ Yes No 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. 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: 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. i X 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. - 69 - October — November — December 2008 2"! 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. Xx The policy making body enforces utility policy. x The utility has an adequately trained manager. xX 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. Xx X The policy making body meets as required. 4) 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. 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. XK The utility has a safety manual and holds safety meetings. x Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. &) The operator provides status reports to the manager on a routine basis. X The utility has completed and distributed its Community Confidence Report (CCR). x The utility is not on the Significant Non-Compliance (SNC) list. Xl The utility maintains an inventory control list. X The utility maintains a critical spare parts list. Operation of Utility Comments: A copy of the preventative maintenance plan was obtained by RUBA on 8/22/07. The critical spare parts list is on file. RUBA Activities For The Coming Quarter RUBA will continue to monitor finance reports and other essential indicators. -70- October — November — December 2008 2 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 The Village Council operates the central watering point rae, AO 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 a FY 08 budget with supporting documents and monthly financial statements up to month ending October 2009. They have worker's compensation insurance coverage with Alaska National Insurance Company until May 9, 2009. The Kwigillingok Washeteria is on the Environmental Protection Agency's Significant Noncompliance List which was dated October, 2008. They are compliant with employment security taxes. Currently Kwigillingok is meeting all essential management capacity indicators and a majority of the sustainable indicators. -71- October — November — December 2008 2” 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. Xx The utility has adopted a balanced realistic budget. Xl Monthly financial reports are prepared and submitted to the policy making body. Xl The utility is current in paying all water/wastewater electric bills. Xl The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. Xl The utility is receiving revenues (user fees or other sources) sufficient to cover operating ex penses. Sustainable Indicators xX 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. xX 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. Finances Comments: The budget did not contain the subsidized revenue source of heavy equipment rental income, however that information was contained in a separate document. The budget also did not contain an expense line item for chemicals and testing which is due to the fact this system prohibits human consumption of the water and their filtering system is not complete. Based on this information, the water, sewer and laundromat budget 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. 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 November 2008 reflects that the actual YTD revenues and expenses are in line with the budget. -72- October — November — December 2008 2” Quarter FY09 - RUBA Report —_——— ese rs nce pO 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. XXX WR S a NRX 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 KX 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: According to Alaska Department of Labor and Workforce Development, Kwigillingok is current with state ESC requirements. As of January 6, 2009 Kwigillingok is current on their Internal Revenue Service deposits, reports and there is no lien against them. -73- October — November — December 2008 2" Quarter FY09 - RUBA Report Personnel System Essential Indicators Yes No xX The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators Xl The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. 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: -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: 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 opportunites 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 HXRRHMKK Xx The utility has adopted an organizational chart that reflects the current structure. | The policy making body meets as required. x The utility complies with the open meeting act for all meetings. -74- October — November — December 2008 2" Quarter FY09 - RUBA Report ———— Se emt a Aeport Organizational Management Comments: The utility is operated by the Native Village of Kwigillingok. The council meets regularly each month and is active in policy making for the utility. Although they are not required, the council complies with the Open Meetings Act for each regular meeting they hold. The meetings are advertised three days in advance by posting written flyers throughout the community. The utility manager has worked for the Native Village of Kwigillingok since 1983. The bookkeeper has worked a little over a year and transferred from the Yukon Kuskokwim Health Corporation where she worked in payroll. The laundry operator has worked for Kwigillingok for approximately two years. The bookkeeper and utility operator attends training sessions when they become available. Utility Ordinance number 2005-10-01 was submitted to the Bethel regional office as was an organizational chart, which is reflective of the current structure. These documents are in the community file. Operation of Utility Essential Indicators Yes No & The utility operator(s) are actively working towards necessary certification. X The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators i 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. Xl 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. xX XXXWOR Operation of Utility Comments: The Native Village of Kwigillingok operates the laundromat. The water supply from the watering point in the laundromat is not safe for human consumption and there are signs posted throughout the community, including private homes. The signs prohibit the use of the water for drinking, and provide © instructions on how to boil water to make it safe for human consumption. Community members use rain water and ice for drinking. The tribe provides services to evacuate sewer tanks and haul services. The utility operator worked for the Native Village of Kwigillingok since 1983 and attends training sessions when they are available. The Bethel regional office file contains forms for annual, quarterly and monthly preventative maintenance reports. The utility manager does spot checks to the laundromat and verbally receives information on maintenance and other issues which is written and presented to the council at their monthly meetings. The utility manager stated he holds safety meetings once a week but did not submit a written safety manual. The utility has not suffered any major problems or outages due to management issues to date. The utility ordinance states that the primary service shall be to provide water haul service and sewage tank evacuation of homes. Because the filtering system is not complete, the water service is limited to use for nonhuman consumption purposes such as for the laundromat. There is no water haul service offered yet. No Consumer Confidence Reports, inventory control or critical spare parts lists were provided. Kwigillingok is on the Significant Non-Compliance list which is dated for October, 2008. -75- October — November — December 2008 2" Quarter FY09 - RUBA Report RUBA Activities For The Coming Quarter RUBA staff will continue to work with the utility manager on deficient management indicators. =46 October — November — December 2008 2" 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 od V eke ot PO” Water is supplied from two groundwater sources- gravity feed from the hydro plant, and a well as backup, and stored in a 200,000 gallon tank. A water supply line is connected to the penstock of the hydroelectric plant and used a majority of the time to reduce utility expenses to both the service plant and the customer. All 40 homes are connected to the piped water system. A community septic tank with an outfall line serves these homes, and the majority are fully plumbed. Weekly refuse collection services are provided. The community incinerator is currently unusable and all refuse is deposited at the landfill site. The city has been funded for a water treatment plant project from the Village Safe Water (VSW) program. RUBA Activity This Reporting Period RUBA staff has had weekly contact with the community assisting them with various tasks such as creating a sample personnel policy for the city council, guiding the clerk in payroll corrections and answering water and sewer billing questions. -77- October — November — December 2008 2" 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. XX) Monthly financial reports are prepared and submitted to the policy making body. XK 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 I 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 City of Larsen Bay drafted an FY09 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 report to the council monthly. However, a report with year-to-date revenues and expenses compared to the budget is not provided. Interfacility 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 interfacility 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 Rural Alaska Fuel Services (RAFS) loan to purchase fuel. In November the city received 15,000 gallons of gas, 8,000 gallons of #1 fuel and 40,000 gallons of diesel. 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. Xl The utility bills customers on a regular basis. x An accounts receivable system is in place which track customers and reports past due accounts and amounts. Kl An accounts payable system is in place. Xl The payroll system correctly calculates payroll and keeps records X A cash receipt system is in place that records incoming money and what it was for. 4 The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators X A chart of accounts is used that identifies categories in a reasonable, usable manner. Monthly bank reconciliation’s have been completed for all utility accounts. &X The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. - 78 - October — November — December 2008 2™ Quarter FY09 - RUBA Report 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 parchese, then the clerk creates a purchase order and allows the operator to order the material. Tax Problems Essential Indicators Yes No Xl The utility has a system to accurately calculate, track, and report payroll tax liabilities. xX The utility is current on filing tax reports. X The utility is current on making tax deposits. Xl If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: With RUBA assistance, the city has successfully submitted 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 Xl The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators XK] The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. Kl The utility provides training opportunities to staff as needed and available. Kh Ke MX 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 for staff are provided as funds allow or opportunities by other sponsors become available. -79 - October — November — December 2008 2" 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 &X] The utility has adopted an organizational chart that reflects the current structure. XK The policy making body meets as required. & The utility complies with the open meeting act for all meetings. HHNHXKR Organizational Management Comments: In October, five new council members were elected to the board. Since the elections the new council has focused on reviewing the city's policies and supporting the clerk in her efforts at collections. The current utility operator is trained but has not passed the certification test. Operation of Utility Essential Indicators Yes No XK The utility operator(s) are actively working towards necessary certification. Kl 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. X] 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. Kix KR -80- October — November — December 2008 2" 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 has scheduled an on-site visit for early January 2009 and will continue to work with the community to meet all of the unmet management indicators. -§81- October — November — December 2008 2" 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 od NM cee et OS 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 December 15, 2008 RUBA staff traveled to Nanwalek with Remote Maintenance Worker Steve Evavold to attend a tribal council meeting and address deficient RUBA management indicators with the council. The RUBA management assessment is a condition of a sanitation project funded by the Alaska Native Tribal Health Consortium (ANTHC). The project engineer has given the community until early in 2009 to meet all indicators or the project may be canceled. Mr. Evavold informed the council that the Alaska Department of Environmental Conservation (ADEC) was planning to enforce a compliance order by consent (COBC) on the tribe soon. Mr. Evavold explained the repercussions of the order and that the tribe should immediately begin working with ADEC staff to resolve the issue. RUBA staff then presented to the council the RUBA report and addressed the four unmet essential management indictors. In November, the council adopted a new water/sewer rate schedule. The administrator acknowledged that the schedule is unclear and requested assistance in reviewing and revising the schedule. RUBA staff assisted with revisions, which will be presented to the council at the next meeting. -§83- October — November — December 2008 2" Quarter FY09 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No Xx All revenue and expenses for the utility are listed in the utility budget. Xx The utility has adopted a balanced realistic budget. &X Monthly financial reports are prepared and submitted to the policy making body. 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 KX] The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. X] YTD revenues are at a level equal to or above those budgeted. YTD expenditures are at a level equal to or below those budgeted. XJ A monthly manager’s report is prepared. X Budget amendments are completed and adopted as necessary. Finances Comments: Recently the Nanwalek IRA Tribal Council created and adopted an FY09 water/sewer budget. The bookkeeper stated that the delay was caused by waiting to see what federal programs might be cut before he started drafting the FY09 budget for the council. He also stated that the budget would most likely have to be amended. Currently the bookkeeper is not presenting a budget vs. actual report to the council. Although the bookkeeper did state he does prepare and submit to the council a report of profit and loss by class. The Housing Authority manages the fuel sales for the community. The bulk fuel facilities consist of a 24,000 gallon diesel tank and a 12,000 gallon 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. -84- October — November — December 2008 2" Quarter FY09 - RUBA Report Accounting Systems Essential Indicators Yes No XX] The utility has adopted a collection policy and actively follows it. XX] The utility bills customers on a regular basis. An accounts receivable system is in place which 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. HXXR & S HRK Accounting System Comments: The tribe has adopted a 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. 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: 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 and tracked; payroll tax liabilities reports are done through QuickBooks. October — November — December 2008 2" Quarter FY09 - RUBA Report 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. xl The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. Xi The utility has an adequate written hiring process. X The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. x The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. x The utility provides training opportunities to staff as needed and available. Personnel System Comments: The Nanwalek IRA Tribal Council has a posted workers compensation insurance policy 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. The probation period for a 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 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 XXXWOwR x) The utility has adopted an organizational chart that reflects the current structure. &X The policy making body meets as required. Xl The utility complies with the open meeting act for all meetings. - 86- October — November — December 2008 2" 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 cannot 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. XX] The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Consumer Confidence Report (CCR). XX] The utility is not on the Significant Non-Compliance (SNC) list. & The utility maintains an inventory control list. XK] The utility maintains a critical spare parts list. XXX Ww 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 status verbally to the tribal administrator when there is a problem, when she foresees a problem, or when the system is running well. A CCR was completed for 2007 with the help of ANTHC. The utility does not meet all required drinking water regulations. The tribe is currently on the 810/08 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. =872 October — November — December 2008 2" Quarter FY09 - RUBA Report Nightmute Activity Report Community Overview Lead RUBA Staff: Hazel Keezer, Bethel Office 2007 Population: 244 Region: Lower Yukon Local Governments: 2" Class City od The City of Nightmute provides a small water facility, a which is the central watering point for residents to haul their own water. The city also provides water and sewer haul service. The city utility system has 42 residential units and 15 commercial units. The school has its own sewage lagoon. A washeteria is not available. The Nightmute power plant was acquired by AVEC in March 1998. Electricity is provided by AVEC. Papen, ot AP RUBA Activity This Quarter RUBA staff traveled to the City of Nightmute in this quarter to conduct a RUBA management assessment. RUBA staff also provided assistance to the city in developing a business license application for the city. The city imposes a local sales tax and wanted to have on record of what business and or services are provided in their community. RUBA had made contact earlier in the quarter to monitor the fuel delivery and supply. The city was able to place their order in advance and provide for the community needs for gas and heating fuel. -~89- October — November — December 2008 2” Quarter FY09 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No &] All revenue and expenses for the utility are listed in the utility budget. & The utility has adopted a balanced realistic budget. & Monthly financial reports are prepared and submitted to the policy making body. X The utility is current in paying all water/wastewater electric bills. X The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. KX The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators & The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. & YTD revenues are at a level equal to or above those budgeted. I 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 budget for FY09 had not been adopted. The last monthly financial reports received were for the month of October. The city was current in the 3rd quarter for the Alaska Village Electric Cooperative (AVEC) bill. A statement for the previous months have not been provided to determine that the city is paying all the electric bills. Accounting Systems Essential Indicators Yes No Xl The utility has adopted a collection policy and actively follows it. Xl The utility bills customers on a regular basis. xl An accounts receivable system is in place which tracks customers and reports past due accounts and amounts. xl An accounts payable system is in place. X The payroll system correctly calculates payroll and keeps records x A cash receipt system is in place that records incoming money and what it was for. 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. The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. -90- October — November — December 2008 2" Quarter FY09 - RUBA Report Accounting Comments: The collection policy is included in the utility service agreement that the customer signs. Payment is due in 30 days and interest is assessed on delinquent accounts. The city has biodegradable plastic liners for the customers that are using honey buckets and dumping the sewage into the lagoon. A manual accounting system of the NEBS cash receipt system is used to record revenues from customers. The payment is recorded in the customer records and then transferred to the computer. Collection of water and sewer billings has fallen and the city is looking at different options to enforce their collection policy. Tax Problems Essential Indicators Yes No XK] The utility has a system to accurately calculate, track, and report payroll tax liabilitie: The utility is current on filing tax reports. The utility is current on making tax deposits. If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. HR Tax Problems Comments: These indicators reflect that current federal tax information was not received at this time. They may be changed to reflect the true standing upon receiving updated information. A new release of information needs to be provided so that reports can be made by the IRS Taxpayer Advocate agency. The Department of Labor and Workforce development stated the city is current filing and making ESC deposits. -91- October — November — December 2008 2" Quarter FY09 - RUBA Report Personnel System Essential Indicators Yes No x} The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators KI 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. xX] The utility provides training opportunities to staff as needed and available. X Kw Personnel System Comments: The city has worker's compensation in effect for the period from July 01, 2008 through July 01, 2009. The City of Nightmute has a personnel policy manual. The council hires new employees and a condition of hire form is provided. The city has personnel folders on employees that contain completed +9 forms. Three months is the standard probationary period for permanent new hired employees. Training is provided when funding is available. Organizational Management Essential Indicators Yes No The entity that owns the utility is known and the entity that will operate the utility is set. The policy making body is active in policy making of the utility. The policy making body enforces utility policy. The utility has an adequately trained manager. The utility has an adequately trained bookkeeper. 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 XXX 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: The city sent the water operator for certification two or three times but he did not pass the tests. He has decided to resign from his position. The city is attempting to find, hire, and train a new water operator. -92- October — November — December 2008 2" Quarter FY09 - RUBA Report ee nee eee ee Operation of Utility Essential Indicators Yes No X The utility operator(s) are actively working towards necessary certification. XX] The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators &X The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. XX] The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). XX] The utility is not on the Significant Non-Compliance (SNC) list. &] The utility maintains an inventory control list. XX The utility maintains a critical spare parts list. KKK Operation of Utility Comments: The sewage haul and water delivery fee was raised to $27.50 from $25.00 on March 21, 2007. The city has been hiring temporary workers to conduct water sampling and paying $25.00 for conducting the sampling. The clinic is using a piped water system to fill their water holding tank. They are averaging about six sewage hauls a month for which they charge a fee; the city has not charged any fee for water usage, however. The utility account has sufficient funds for emergency purposes. The city also has funds available to order spare parts for customers when needed by them. RUBA Activities For The Coming Quarter RUBA will continue to work with city's bookkeeper and administrator to update any information that is not current in report. -93- October — November — December 2008 2™ Quarter FY09 - RUBA Report Nondalton Activity Report Community Overview Lead RUBA Staff: Jean Ayers, Anchorage Office 2007 Population: 196 Region: Alaska Peninsula Local Governments: 2 Class City od The City of Nondalton operates the piped water and sewer system and provides a central watering point for residents to haul their own water. The city council is the policy making body for the utility. An infiltration gallery at Six-Mile Lake supplies the community with treated water. There are 88,000 gallons of storage capacity. 70 residences are connected to the piped water and sewer system and are plumbed. Funds have been requested to extend the system to 11 newly constructed homes and to make system improvements -- demand has doubled over the past 12 years. Refuse collection is not provided. A new 5-acre landfill and burn box project were completed in 2005. Construction of the Iliamna-Nondalton road and bridge is pending. The INN Electric Cooperative owns a diesel plant in Newhalen and 50 miles of distribution line to connect Iliamna, Newhalen and Nondalton. The Tazimina Hydroelectric Project has recently been completed, and powers the three communities RUBA Activity This Reporting Period This community was recently reassigned to staff within the RUBA Program. The new local government specialist has contacted the City of Nondalton to update the RUBA Agreement and determine current status of both essential and sustainable indicators. As documentation is yet forthcoming, this report may not accurately reflect the status of the City of Nondalton. October — November — December 2008 2" 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. 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. Xx 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 KX] The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. XK] YTD revenues are at a level equal to or above those budgeted. XX] YTD expenditures are at a level equal to or below those budgeted. A monthly manager’s report is prepared. XX] Budget amendments are completed and adopted as necessary. Finances Comments: A balanced and realistic budget for FY09 was adopted by the city council in June 2008 and a Certified Public Accountant was hired to maintain the financial records and train the community's bookkeeper. However, DCRA has not yet received monthly financial or manager's reports in order to verify essential and sustainable indicators. Accounting Systems Essential Indicators Yes No Xl The utility has adopted a collection policy and actively follows it. x The utility bills customers on a regular basis. 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 X A cash receipt system is in place that records incoming money and what it was for. The utility has a cash disbursement system that records how money was spent. Sustainable Indicators X A chart of accounts is used that identifies categories in a reasonable, usable manner. & Monthly bank reconciliation’s have been completed for all utility accounts. x The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. -96- October — November — December 2008 2 Quarter FY09 - RUBA Report vee oa mec porls—» Accounting Systems Comments: The city's chart of accounts is set up through the QuickBooks program. Utility customers are to be billed regularly on or before the 20th of each month in accordance with the collection policy. However, DCRA has not yet received monthly financial reports in order to verify essential and sustainable indicators. 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. XX] The utility is current on making tax deposits. &X] If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: DCRA has no recent verification of state and federal tax status. Personnel System Essential Indicators Yes No Xl The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators & The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. x The utility provides training opportunities to staff as needed and available. Xx Be We 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. -97- October — November — December 2008 2" 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. XK 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. The utility has an adequately trained bookkeeper. xX The utility has an adequately trained operator(s). Kl 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. 4) The utility complies with the open meeting act for all meetings. Organizational Management Comments: The City of Nondalton is the owner of the utility. The decision making authority and enforcement of the utility policy is vested in the council. The city administrator has oversight of the utility and maintains the books for the utility 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. - 98 - October — November — December 2008 2" Quarter FY09 - RUBA Report Operation of Utility Essential Indicators Yes No &X The utility operator(s) are actively working towards necessary certification. &X The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators 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. Xx Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. | The utility is operating at the level of service that was proposed. &X The operator provides status reports to the manager on a routine basis. X The utility has completed and distributed its Consumer Confidence Report (CCR). x The utility is 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 utility is not currently on the Significant Non-Complier List. However, DCRA has not yet received reports in order to verify other indicators. The utility maintains an inventory control list and a critical spare parts list is prepared and on file. RUBA Activities For The Coming Quarter Upon receipt of requested documentation, RUBA staff will verify the status of essential and sustainable indicators and provide assistance as requested. -99- October — November — December 2008 2" 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 wf Individual wells and septic tank systems are used by most SoM 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. pe RUBA Activity This Reporting Period A visit was made to Port Heiden and a RUBA management assessment conducted in September, 2008. The Native Village of Port Heiden (NVPH) 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. It has been recommended that the Native Village of Port Heiden prepare a business plan for operating the washeteria that addresses the essential and sustainable capacity indicators. The RUBA assessment report was finalized in October, 2008. - 101 - October — November — December 2008 2" Quarter FY09 - RUBA Report Capacity Indicators Finances Yes No & All revenue and expenses for the utility are listed in the utility budget. XX The utility has adopted a balanced realistic budget. XX Monthly financial reports are prepared and submitted to the policy making body. The utility is current in paying all water/wastewater electric bills. &X & The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators & The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. &] YTD revenues are at a level equal to or above those budgeted. &X] YTD expenditures are at a level equal to or below those budgeted. XX A monthly manager’s report is prepared. &] Budget amendments are completed and adopted as necessary. Finances Comments: While there is no utility budget, the Native Village of Port Heiden manages 34 funds that include funds from BIA, EPA, IHS, State of Alaska and other sources. The QuickBooks classes feature is used to track financial activity and payroll. Accounting Systems Essential Indicators Yes No &] The utility has adopted a collection policy and actively follows it. KK] The utility bills customers on a regular basis. &) Anaccounts 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. HX Sustainable Indicators A chart of accounts is used that identifies categories in a reasonable, usable manner. Kl Monthly bank reconciliation’s have been completed for all utility accounts. & The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. Accounting System Comments: The tribe does not presently operate any utilities in the community. However, a utility ordinance was adopted by the tribe for a sewage disposal utility that ended up being operated by the city. The ordinance contains information about collections, fees to be charged, etc. Information was requested about the NVPH accounts receivable system but no response has been received as yet. The NVPH uses QuickBooks to track revenue and expenditures for 34 funds. - 102 - October — November — December 2008 2" 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. Kl 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 NVPH was reported to be in compliance with federal tax filing and deposit requirements as of September 23, 2008. The Alaska Department of Labor reported NVPH to be compliant with state employment tax reporting and deposits on September 19, 2008. 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. XX] The utility has adequate written job descriptions for all positions. XX The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. &X The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: +9, Job Application and Letter of Acceptance. XX] The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. & The utility provides training opportunities to staff as needed and available. X Personnel System Comments: Workers' compensation insurance expired September 25, 2008. A request for current documentation has been made by RUBA staff, which has not yet been received. 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. - 103 - October — November — December 2008 2" 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. x 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. I The utility has an adequately trained operator(s). The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators x The utility has adopted an organizational chart that reflects the current structure. x The policy making body meets as required. x The utility complies with the open meeting act for all meetings. 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 XX The utility operator(s) are actively working towards necessary certification. XX] The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. Xd XRXKRER Ww Operation of Utility Comments: The community currently does not have public water or wastewater systems. Residents rely on private wells and septic tanks, so there has been no need to meet water quality and operator certification requirements. NVPH currently has no experience operating utilities. - 104 - October — November — December 2008 2" Quarter FY09 - RUBA Report RUBA Activities For The Coming Quarter RUBA staff will provide assistance as requested by phone, fax, and e-mail to meet capacity indicators. RUBA staff will assist with the preparation of a business plan for operation of the washeteria if requested. - 105- October — November — December 2008 2 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. Twenty new HUD houses were recently connected to the system. A new honey bucket disposal site is under construction. Funds have been requested to repair plumbing in 40 older homes, and to study replacement of the failing 30-year-old water and sewer mains. A washeteria is available nearby at Pitka's Point. The landfill must be relocated. 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. City Clerk Tracey Joe attended the RUBA Utility Clerk's training held in Bethel November 17-21. Her opportunity to attend the class was good timing as she just began working for the city. The city manager resigned his job in November and a new manager, Debbie Grindle, was hired. RUBA spoke to Ms. Grindle about the prior management assessment and the documentation required to keep indicators current. - 107 - October — November — December 2008 2" 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. Xl Monthly financial reports are prepared and submitted to the policy making body. & The utility is current in paying all water/wastewater electric bills. a) 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. XK YTD revenues are at a level equal to or above those budgeted. XK YTD expenditures are at a level equal to or below those budgeted. x A monthly manager’s report is prepared. x) Budget amendments are completed and adopted as necessary. Finances Comments: A budget for fiscal year 2009 was submitted for the St. Mary's file located in the Bethel regional office. The budget had been enacted by the City of St. Mary's Council on May 21, 2008. Part of the budget included revenues and expenses for the Freshwater and Wastewater Utility Systems, Solid Waste Collection and Disposal. The budget is balanced and realistic and contains a line item for repairs and maintenance. The utility is current on all water and wastewater electric bills. When it is needed, the City of St. Mary's subsidizes the utility services with income from the general fund, specifically from gravel haul services and equipment rental income. The city purchases fuel from Crowley who has a fuel distribution tank farm located in St. Mary's. The city orders fuel twice a year, spring and fall. The last monthly report on file in the Bethel regional office is for the month ending November, 2008. 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. - 108 - October — November — December 2008 2" 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. HHXK KR a HRIK 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 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. Xl If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The IRS and Alaska Department of Labor deemed the City of St. Mary's compliant this quarter. - 109 - October — November — December 2008 2" Quarter FY09 - RUBA Report Personnel System Essential Indicators Yes No XxX The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators ® The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. X The utility has adequate written job descriptions for all positions. &] The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. x The utility provides training opportunities to staff as needed and available. Xk ww Personnel System Comments: The City of St. Mary's is insured by Alaska Municipal League Joint Insurance Association, Inc. through 7-1-2009. Proof of the workers compensation insurance coverage has been placed in their file located in Bethel regional office. The city has a personnel policy which was adopted in 1996 and needs to be reviewed and updated. Job descriptions for the following positions have been submitted: Operator, Water and Sewer Utilities and Assistant Operator for the water and sewer services. Copies of Ordinance Chapter 2.05, which stipulates powers, duties and responsibilities of the city clerk and city manager, were submitted. The city manager has complied with the informal evaluations but has not used written evaluations. The personnel file for the utility worker is complete. The turnover rate for the utility worker is very low; he has worked for the city for approximately ten years. He has many training certificates including Water Distribution Level 4 with an expiration date of 12-31-10. A new city manager started work in November, 2008 for the City of Saint Mary's. Organizational Management Essential Indicators Yes 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 XX] 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. HXRRRKR -110- October — November — December 2008 : 2" Quarter FY09 - RUBA Report P Organizational Management Comments: The city council is active in policy making for the utility. The council meets monthly at which time they hear status and financial reports by the city manager for the utility services. The utility worker has been employed by the City of St. Mary's since 1998 and has training certificates as high as level four for water distribution. The city uses QuickBooks Pro for all departments. A copy of Ordinance 2.13 for the Division of Freshwater and Wastewater Utilities System is on file. The city currently has no adopted organizational chart. The city manager submitted a handwritten copy based on language from their ordinance. The city council meets monthly and complies with the open meetings act which is in compliance with their code of ordinances. Operation of Utility Essential Indicators Yes No 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. 1] The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. 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. MHWwee wW 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. -111- October — November — December 2008 2" Quarter FY09 - RUBA Report Selawik Activity Report Community Overview Lead RUBA Staff: Margaret Hansen, Kotzebue Office 2007 Population: 828 Region: Northwest Arctic Local Governments: 2" Class City, od The community has piped water and sewer throughout A pe Bae, gre the entire community and is now 96% fully piped. Water plant upgrades and river pump system are being evaluated now for possible future projects. DEC has been in Selawik to do an evaluation of the water quality doing a comprehensive performance evaluation which will be helpful to determine what changes need to be implemented. RUBA Activity This Quarter Although RUBA staff contacted the city to provide updated information, RUBA staff was unable to obtain information provided to update this assessment. Without proper documentation, RUBA is unable to report all essential capacity indicators as being met. Kotzebue RUBA staff also contacted the community in October to ascertain if they were able to complete repair to the glycol leak in order to save money in high heat trace electricity for that line this winter. The person contacted was unable to confirm the repair was completed. - 113 - October — November — December 2008 2" Quarter FY09 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No All revenue and expenses for the utility are listed in the utility budget. KX] 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. X) The utility is receiving revenues (user fees or other sources) sufficient to cover operating ex penses. Sustainable Indicators KX] The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. &X YTD revenues are at a level equal to or above those budgeted. & YTD expenditures are at a level equal to or below those budgeted. x A monthly manager’s report is prepared. X Budget amendments are completed and adopted as necessary. Finances Comments: RUBA staff still has not received a copy of their Excel monthly financial report; information is transferred from Quick Books 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. Sustainable Indicators KKK MM X 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. -114- October — November — December 2008 2" Quarter FY09 - RUBA Report Accounting Comments: No new information to update this section. Tax Problems Essential Indicators Yes No XX] The utility has a system to accurately calculate, track, and report payroll tax liabilitie: The utility is current on filing tax reports. The utility is current on making tax deposits. If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. XXX Tax Problems Comments: Although last quarter IRS and the Alaska Department of Labor deemed them compliant, no new information has been received this quarter. Personnel System Essential Indicators Yes No x The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators X The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. X The utility has adequate written job descriptions for all positions. XK 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: 1-9, 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: According to RUBA staff contact with AML/JIA, the city still is making payments on their workmen's compensation policy. October — November — December 2008 2" Quarter FY09 - RUBA Report 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. &) 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. a a Organizational Management Comments: No new information at this time. Operation of Utility Essential Indicators Yes No XK The utility operator(s) are actively working towards necessary certification. x) The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators ® The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. &X The utility has a safety manual and holds safety meetings. XX] Utility facilities have not suffered any major problems/outages due to management issues that are 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. HON - 116 - October — November — December 2008 2" 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 had plans to travel to Selawik to do a work plan and an assessment in November of 2008 but was postponed until first quarter of 2009. - 117- October — November — December 2008 2" 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 od 43 : d di Ae os Residents haul treated well water and dispose of honey Mare, ot P 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 Bethel RUBA staff contacted Shageluk several times regarding the missing IRS reports for 2008 and 2007. The administrator stated she believed they were submitted and would contact the IRS directly. As of this date, there is still an issue regarding late deposits being made. 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, however, it is not a balanced realistic budget with all revenues and expenses identified. They are not on the Environmental Protection Agency's Significant Non-Compliant List. - 119- October — November — December 2008 2" 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. &] Monthly financial reports are prepared and submitted to the policy making body. &] The utility is current in paying all water/wastewater electric bills. xl The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. KX] The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators XX] The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. Xx) YTD revenues are at a level equal to or above those budgeted. &] YTD expenditures are at a level equal to or below those budgeted. x A monthly manager’s report is prepared. x Budget amendments are completed and adopted as necessary. Finances Comments: The FY09 budget is on file. The certified financial budget contains more expenditures than revenues and is not balanced. The certified financial statement did not contain detailed account items for each department and therefore it could not be determined whether or not all revenues and expenses are contained in the budget. The last monthly financial report on file in the Bethel regional office is for the end of August, 2008. The FY09 budget section in the monthly reports do not match the certified financial expenditure amount. 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 and whether or not repair and replacement costs are covered. 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. For the second quarter of 2008, it cannot be determined whether or not the utility is current on meeting payments for their outstanding electric bill. Fuel purchased was for 7,000 gallons and the City of Shageluk paid for the fuel on August 18, 2008. The purchase is 3,000 gallons less than last summer's purchase of 10,000 gallons. - 120- October — November — December 2008 2" Quarter FY09 - RUBA Report Accounting Systems Essential Indicators Yes No xX The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. 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. eK KK Sustainable Indicators X A chart of accounts is used that identifies categories in a reasonable, usable manner. x Monthly bank reconciliation’s have been completed for all utility accounts. &X The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. Accounting Comments: 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 Xl The utility has a system to accurately calculate, track, and report payroll tax liabilitie: KX] 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 last IRS report, the City of Shageluk is missing 941 reports for second quarter of 2008 and third quarter reports for 2007 and 2008. 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. -121- October — November — December 2008 2" Quarter FY09 - RUBA Report Personnel System Essential Indicators Yes No &X The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators &X The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. Xl The utility has adequate written job descriptions for all positions. KK The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. 4) The utility provides training opportunities to staff as needed and available. a) 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 ik Xl Daa a ed X The utility has adopted an organizational chart that reflects the current structure. X The policy making body meets as required. Xl The utility complies with the open meeting act for all meetings. - 122 - October — November — December 2008 2" Quarter FY09 - RUBA Report Organizational Management Comments: The entity is known and set and the council is active in policy making for the utility. The school receives sewer service, and evacuation service for the ten private homes that have privies is done on a prepaid basis. The council needs to ensure that the city administrator continues to maintain the billing system for the school. The administrator manages the utility services and maintains the accounting system. The office staff was reduced to the administrator's position and the open hours were reduced from five open days to three. The utility worker is adequately trained and experienced. Shageluk's utility ordinance is on file. An organizational chart that reflects the current structure is posted in the Shageluk office. The city council meets on a monthly basis and complies with the Open Meetings Act.. Operation of Utility Essential Indicators Yes No X The utility operator(s) are actively working towards necessary certification. X The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. XX] The utility maintains an inventory control list. KX] The utility maintains a critical spare parts list. be HERREK Ww 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. - 123 - October — November — December 2008 2" Quarter FY09 - RUBA Report Tuluksak Activity Report Community Overview Lead RUBA Staff: Hazel Keezer, Bethel Office 2007 Population: 466 Region: Lower Kuskokwim Local Governments: Tribal Council od 4; The tribal council operates the washeteria, water Nena, ot OT treatment plant, container haul system, and electrical services for the community. The tribal council is the policy making body for the utility services. Only one watering point, with storage capacity of 12,000 gallons, serves the entire community, washeteria, clinic, and the school. Residents haul honey-buckets to 21 bins located sparingly throughout the community. A feasibility study was completed to implement a piped water and sewer system in the future. A larger water storage tank, completion of a new lagoon, and water system improvements are the community's priorities RUBA Activity This Quarter RUBA staff traveled to the Native Community of Tuluksak in October to conduct an updated assessment of the RUBA management assessment. The essential indicators continued to be deficient in the area of finances. RUBA staff again traveled to Tuluksak in December to attend a community meeting regarding sanitation issues. Representatives from Village Safe Water, CE 2 Engineering, Remote Maintenance Worker program, RUBA, and the Tuluksak Council were all present. The Tuluksak Native Community has three open ongoing grants. Issues addressed were water treatment regulations, water testing and RUBA essential indicators. RUBA staff contacted the Tuluksak finance director to discuss a one-year warning issued from the Village Safe Water program. The community has a deadline to demonstrate financial capacity, which was found to be deficient in the RUBA management assessment. Correction of the problem is required as a condition of the construction grant for the sanitation project. Failure to make the necessary changes to management will mean the loss of construction funds and the community will have to begin the funding application process again. Errors in financial reporting were discussed and the financial director agreed that corrections would be made and the monthly financial reports would be prepared through December 2008 for review by RUBA staff. -125- October — November — December 2008 2" 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 ex penses. Sustainable Indicators KI The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. J 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: Tuluksak's Certified Public Account made amendments to the budget but had not entered operating expenditures for the utility. Tuluksak has an adequate financial plan for purchase of a fuel supply to run the utility. A written manager's monthly report was not provided. The special meeting that was held in December 2008 with RUBA and Village Safe Water had a secretary present to take minutes. RUBA staff maintains contact with the hired accountant who resides in Soldotna and the local utility staff. Accounting Systems Essential Indicators Yes No <] The utility has adopted a collection policy and actively follows it. XX] The utility bills customers on a regular basis. An accounts receivable system is in place which track customers and reports past due accounts and amounts. An accounts payable system is in place. The payroll system correctly calculates payroll and keeps records A cash receipt system is in place that records incoming money and what it was for. The Utility has a cash disbursement system that records how money was spent. RXR 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. Xl The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. - 126 - October — November — December 2008 2" Quarter FY09 - RUBA Report Accounting System Comments: A billing system is set up with individual household accounts. The utility had sent out a letter in the previous quarter advising the consumers that if they did not pay their bill, money would be taken from the electric pre-paid Power Stat cards. A new accounts receivable had not been provided. All accounting and billing is done with QuickBooks Pro. Their payroll tax calculations are done through QuickBooks Pro. When making purchase orders, the purchase order is filled out, the bookkeeper checks it against the budget, and then it is submitted to the administrator for approval. Tax Problems Essential Indicators Yes No Kl The utility has a system to accurately calculate, track, and report payroll tax liabilitie: xX) 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: Information from the Taxpayer Advocate that was provided showed that Tuluksak Native Community had paid the previous owed federal taxes from Ist qtr of 2008. The Department of Labor was contacted and the utility is current with all ESC requirements. Personnel System Essential Indicators Yes No & The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators X The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. 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. XX] The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. X The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. & The utility provides training opportunities to staff as needed and available. Personnel System Comments: Tuluksak has workers compensation insurance coverage through Umialik Insurance Co. effective 5/08 to 5/09. The tribe provided a copy of the personnel policy and procedures manual with job descriptions. Tribal members that are residents are considered for first employment preference. There is a formal written hiring process and a 90 day probationary period. There were no personnel folders to view. The utility provides training to its employees when funds are available. -127- October — November — December 2008 2" 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. x The utility has an adequately trained manager. The utility has an adequately trained bookkeeper. Xl 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. xX The policy making body meets as required. Xi The utility complies with the open meeting act for all meetings. Organizational Management Comments: There are now two sets of utility ordinances. One is adopted for the sewer haul system. The second is a two part ordinance in anticipation of a piped water and sewer system and was signed by the council on December 31, 2007. The first part of the ordinance establishes a utility board and the second part is for the utility procedures. An ordinance authorizing the implementation of a sewage haul collection fee was adopted on June 20, 2006. The tribal administrator worked with a federal grant program before taking on the position in January of 2008. The bookkeeper is proficient in QuickBooks. The city has three operators with certifications for water treatment Operator in Training (OIT) and water distribution OIT. The lead operator also has boiler maintenance training. Operation of Utility Essential Indicators Yes No a) 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 KX] The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). XX] The utility is not on the Significant Non-Compliance (SNC) list. XX] The utility maintains an inventory control list. &X] The utility maintains a critical spare parts list. XK kK - 128 - October — November — December 2008 2" Quarter FY09 - RUBA Report Operation of Utility Comments: The utility is on the Significant Non-Complier list. The violations were discussed at the special meeting of the council and Village Safe Water. A copy of the preventive maintenance plan was provided. Verbal accounts of the operation are given to the manager on a day-to-day basis. If an emergency arises, the administrator is contacted immediately. A copy of the CCR was completed in June of 2008. The water operator does not have an inventory control list or a critical spare parts list. RUBA Activities For The Coming Quarter RUBA staff is available to provide assistance with any management capacity indicators that are not being met. - 129- October — November — December 2008 2" Quarter FY09 - RUBA Report Tununak Activity Report Community Overview Lead RUBA Staff: Hazel Keezer, Bethel Office 2007 Population: 328 Region: Lower Kuskokwim Local Governments: Unorganized od Water is derived from Muskox Creek. A flush/haul NV ere ot OT” system began construction in 1992.25 homes and 4 commercial buildings have flush/haul systems in place to this date. The community has 2 bunkers in the village that are still in use by 41 residential homes for disposing of honeybuckets. The bunkers are made of ditches and do not have liners. The community relies on the washeteria for laundry only. The school provides its own piped water system, and sewage discharges to the village drainfield. The IRA is planning on a new washeteria and water plant. Electricity is provided by AVEC. RUBA Activity This Quarter Bethel RUBA staff traveled to Tununak to complete a RUBA management assessment of the Tununak IRA Council. The assessment of management capacity indicators is required prior to release of grant funds for a sanitation construction project. All essential indicators of the assessment must be met as they identify policies and practices that are critical to the short-term operation of the utility. At the time of this assessment, the Tununak IRA Council did not meet essential indicators in the areas of utility finance, accounting systems, organizational management and the operation of the utility. It should also be noted that the utility is on the significant non-compliance list and the community is on a boiled water requirement from the Department of Environmental Conservation. - 131- October — November — December 2008 2" 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. 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. &] The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators I The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. &X YTD revenues are at a level equal to or above those budgeted. &X] YTD expenditures are at a level equal to or below those budgeted. & A monthly manager’s report is prepared. XX] Budget amendments are completed and adopted as necessary. Finances Comments: The IRA has not adopted a budget for the utility. Monthly financial reports are not prepared or submitted to the council. The IRA has a financial plan for purchasing fuel from the local Native corporation using funds from the Community Block Grant. A manager's report is not prepared or is a report mentioned in the monthly meeting minutes. The IRA is current on paying the Alaska Village Electric Cooperative (AVEC) monthly statements. Accounting Systems Essential Indicators Yes No &X The utility has adopted a collection policy and actively follows it. XI The utility bills customers on a regular basis. An accounts receivable system is in place which track customers and reports past due accounts and amounts. 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. XK & 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. Xl The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. - 132 - October — November — December 2008 2" Quarter FY09 - RUBA Report Accounting System Comments: A draft utility ordinance was created in March of 2008 but has not been adopted by the council. The IRA does not send out monthly billing statements to customers receiving services. Verbal notice of collection of payment of sewage and water haul fees are given by utility workers when services are provided. The’ IRA uses a carbon copy receipt for payments received. The IRA also uses a purchase order form that must receive prior approval from the tribal administrator or council president, who checks it against the budget, and then it is submitted to the administrator for approval. Tax Problems Essential Indicators Yes No xl The utility has a system to accurately calculate, track, and report payroll tax liabilitie: x The utility is current on filing tax reports. QB 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 deemed the taxpayer in compliance with federal employment tax, reports and tax deposits. The Alaska Department of Labor reported that the city is current with state ESC tax requirements. Personnel System Essential Indicators Yes No X The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators X) The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. &® 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. Xl The utility has an adequate written hiring process. Kl) 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 Tununak IRA has current workers compensation in place with Liberty Northwest. The policy covers dates from May of 2008 to May of 2009. Tununak IRA has a complete personnel policy manual, and the IRA Board of Directors has full authority for decisions made in applying policies of the IRA. The tribal administrator screens applicants and the council makes all hiring decisions of full time employees. The probationary period is three months. On the job training and other training is provided as funding permits. - 133 - October — November — December 2008 . 2" 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 NXNMONKE 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: An agreement for transfer of management of the water and sewer system was made in June 2007. The Tununak Traditional Council transferred ownership and legal authority to the Native Village of Tununak I.R.A. Council. A copy of the organizational chart for the utility was provided. The tribal administrator held a previous position as a housing authority administrator and has experience working with BIA grants. The current bookkeeper has held his position since the year 2000. He has attended an IRS workshop and has on the job training. It is unknown what the water operator certification level is. Operation of Utility Essential Indicators Yes No &X] The utility operator(s) are actively working towards necessary certification. x The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators [<] The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. kX Wk za 4 HXIKIK - 134- October — November — December 2008 2" Quarter FY09 - RUBA Report Operation of Utility Comments: A search was made in the Alaska Certified Water/Wastewater Operator Database and there were no identified certified operators. The IRA utility does have a preventive maintenance plan for the water plant. The utility was unable to provide water services for several weeks in October 2008 due to a water pump failure. The operators report verbally to the administrator when problems with the utility. The Consumer Confidence Report was completed in June of 2008. The utility is on the SNC list and there is a boil water notice to the community issued by Department of Environmental Conservation (DEC). RUBA Activities For The Coming Quarter RUBA staff will continue to provide technical support to help Tununak IRA to meet essential and sustainable indicators for the RUBA assessment. October — November — December 2008 2" Quarter FY09 - RUBA Report Non-RUBA Communities Adak John Nickels, LGS/RUBA, Anchorage Office RUBA staff attended a workshop held by the Regulatory Commission of Alaska (RCA) October 20, 2008 in Anchorage for the purpose of hearing from entities interested in providing electric service on the island of Adak. The RCA found cause to revoke the city's Certificate of Public Convenience and Necessity and was looking for another utility to take over and provide the service. Representatives from TDX Power, Adak Fisheries, Adak Telephone Utility, the Aleut Corporation, and other individuals testified regarding the impacts of the city's failure to provide reliable electrical power and the need to find a suitable replacement. Funds from the Bridge Loan Program were provided by DCRA to the city to keep the generators operating through November. Effective December 1, 2008, TDX Power was granted temporary operating authority for the community's electric utility. Arrangements to purchase the utility's assets and take over permanently are underway. Future sanitation projects for the community were discussed at a meeting with Bristol Environmental and Engineering Services November 12, 2008. Representatives of the Village Safe Water (VSW) program, Aleut Corporation, and the Regulatory Commission of Alaska attended, as well as a City of Adak council member, who attended by teleconference. Bristol Environmental is in the process of revising a feasibility study for water and wastewater projects on the island. Future sanitation projects will depend on a community development plan, findings of the revised feasibility report, and the city's ability to meet RUBA management assessment indicators. The City of Adak does not currently meet all RUBA essential management indicators. 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 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; to date, RUBA staff has not received the properly adopted budget or financial reports. The city manager and city clerk resigned in September; a new clerk was hired soon after. RUBA staff familiarized her with the assessment issues but city staff and council members were more concerned with resolving the community's fuel supply and electric utility problem. Attempts to contact city staff in late December to discuss the status of RUBA indicators were unsuccessful. Anchor Point Earl Gibson, LGS/RUBA, Anchorage Office On November 24, 2008, Anchorage RUBA staff traveled to Anchor Point to meet with the president of Anchor Point Safe Water, who also owns Aurora Taxes and Accounting and is a QuickBooks certified trainer. We reviewed the community's RUBA management assessment and received updated documentation to support certain indicators. Overall, the president was very supportive and is training a clerk to assist with communities. She will continue to be a source of help to the communities with their taxes and utility accounting. Anchor Point Safe Water meets all essential management indicators. - 137- October — November — December 2008 2" Quarter FY09 - RUBA Report Angoon Lawrence Blood, LGS/RUBA, Juneau Regional Office RUBA staff has been in communication with city staff and provided telephonic assistance. The city was provided a travel and lodging scholarship for a city staff member to attend a RUBA program sponsored QuickBooks class held in Sitka October 17-21, 2008. The RUBA program also provided a travel scholarship for the water operator to attend the annual AWWMaA southeast training conference, however the water operator failed to take advantage of the offer. In past quarters, Angoon has made notable progress towards addressing deficient essential indicators; however, the community continues to struggle with a marginal utility bill collection rate and obtaining an operator which is certified at the appropriate level. The mayor feels that the collection rate is improving but additional increases in the collection rate is difficult due to the current economy in Angoon. The mayor has also been working on both training the back-up (volunteer) operator to achieve a level II water treatment certification and taking the initial steps of putting together a draft Alternate Method of Supervision Plan. He has contacted several level II water treatment operators who may provide utility supervision if the plan is approved. Chefornak Earl Gibson, LGS/RUBA, Anchorage Office On December 16-18, 2008, RUBA staff traveled to Chefornak in response to a request from the community to provide assistance with personnel policies, assist the council with a draft utility ordinance, and review essential indicators of the RUBA management assessment. RUBA staff met with the mayor and the administrator to review the utility and personnel ordinances in preparation for their January meeting. RUBA staff will continue to work with the city on other policies and issues. Chefornak does not currently meet all essential management indicators which are required prior to receiving sanitation construction funding. Chenega Bay Tammy Helms, LGS/RUBA, Anchorage Office On November 6, 2008, RUBA staff traveled to Chenega Bay to meet with the new tribal administrator and discuss the RUBA management assessment. Chenega is currently not meeting all of the essential management indicators in the area of 'Utility Finance.’ Within the last few months, the Chenega IRA Council hired the accounting firm Kerr, McVey, Sheaffer and Associates to handle all bookkeeping duties after the bookkeeper resigned and there was turnover in the tribal administrator position. After a review and update of the current assessment, new staff members now understand the RUBA assessment as well as the essential indicators that are currently unmet. RUBA will assist tribal staff in meeting those essential indicators and provide training for the council members as requested by the tribal administrator. Cold Bay Julie Dirks, LGS/RUBA, Anchorage Office On October 9, 2008 RUBA staff traveled to Cold Bay to meet with the city administrator. The management assessment was discussed along with council member training, RUBA utility management training, and QuickBooks training. The city administrator attended a RUBA sponsored UTM Organizational Management class held in Anchorage during December. She will attend a QuickBooks training class planned for January 2009. RUBA staff provided technical assistance to the city administrator and the mayor on various local government topics throughout the quarter. - 138 - October — November — December 2008 2" Quarter FY09 - RUBA Report Fort Yukon Andy Durny, LGS/RUBA, Fairbanks Regional Office Fairbanks and Anchorage RUBA staff traveled to Fort Yukon October 15, 2008 to review with city staff the RUBA management assessment report that was written last summer. RUBA management assessments are required for sanitation project funding and several essential management indicators were found to be deficient when the assessment was conducted. RUBA staff assigned to the community reviewed the city's finances with the city treasurer/city manager and verified that the city's budget has been adopted properly. Also, budget vs. actual monthly financial reports are being created for council members and workers compensation insurance has been secured. The City of Fort Yukon ‘now meets all essential management indicators. In November, the RUBA staff assigned to work with Fort Yukon transferred to Nome, and a different staff member was assigned to work with Fort Yukon, at least temporarily. The new staff member contacted the city via e mail and phone. The city treasurer provided an updated financial report for the water/sewer utility. Houston Julie Dirks, LGS/RUBA, Anchorage Office Anchorage RUBA staff completed two site visits to Houston this quarter. RUBA traveled to Houston on November 14 at the request of the city clerk to provide records management assistance. Information was provided on filing systems, retention schedules, and what is considered a permanent or historical record. While there it was noted that several community members believe there may be problems with contamination of the Houston water supply, which is within the Big Lake water shed. The city would like to pursue getting a water and sewer project. Anchorage RUBA staff traveled to Houston on December 10 to provide the city treasurer with training and assistance to complete the FY08 Certified Financial Statement. The treasurer is an experienced bookkeeper, though her background does not include government accounting. While there, RUBA learned that the city is now exploring the possibility of obtaining USDA loans for a community wastewater system. RUBA also spoke with the Mayor about attending an upcoming RUBA Planning for Utility Managers course scheduled in Anchorage February 23-27, 2009. Kachemak Selo Earl Gibson, LGS/RUBA, Anchorage Office On November 28, 2008, RUBA staff met with members of the Kachemak Selo water utility board to review a RUBA assessment of management capacity indicators. The community accepted the assessment report as written. Board members explained that the community’s preference for a water project would be to drill new wells, for which they are seeking funding. RUBA informed the community that the essential management indicators must be met on the assessment before any state monies could be received for sanitation projects. RUBA staff suggested community members visit nearby Voznesenka, to see their new water treatment facility. Also, RUBA staff recommended that the board members seek assistance from their bookkeeper (Aurora Taxes and Accounting, Inc.) or request RUBA assistance with meeting any of the management indicators. There were no changes in the RUBA assessment at this time. RUBA staff will continue to work with the community in drafting ordinances and policy procedures. - 139 - October — November — December 2008 2" Quarter FY09 - RUBA Report Kake Lawrence Blood, LGS/RUBA, Juneau Regional Office The city was released this quarter from a 2008 Employment Security Tax (EST) lien. This represented the only recorded and active lien against the City of Kake, which is now free from all tax lien related debt. The city now satisfactorily meets all essential indicators. Juneau RUBA staff continues to provide Kake with assistance in updating their utility ordinance and other financial management issues. RUBA staff traveled to the community this quarter to assist the Airport, Roads, and Water Committee in updating their utility ordinance. The city had two separate titles in their municipal code that addressed the water, wastewater, and solid waste utilities. In many instances, the two titles were contradictory and did not provide clear guidance on the subjects of billing and collections. With RUBA assistance, the committee finalized a new utility ordinance based on the model utility ordinance provided by the Regulatory Commission of Alaska for combined water / wastewater utilities. The new ordinance will be presented to the council for consideration at the January 13, 2009 council meeting. The city was provided travel and lodging scholarships for two city staff members to attenda RUBA program sponsored QuickBooks class held in Sitka October 17-21, 2008. Kasaan Lawrence Blood, LGS/RUBA, Juneau Regional Office The city was provided a travel and lodging scholarship for a city staff member to attend a RUBA program sponsored QuickBooks class held in Sitka October 17-21, 2008. QuickBooks is used by the city for all accounting activities and the staff member will now be able to use it with additional confidence and efficiency. 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. They are currently meeting all essential management capacity indicators. Kasigluk Ken Berlin, LGS/RUBA, Bethel Regional Office RUBA staff traveled to Kasigluk and worked with the bookkeeper for the Kasigluk Traditional Council on 11/25-29/08. Assistance was provided with the 2009 budget and monthly finance reports. After researching the 2007 and 2008 actual revenues and expenditures, a 2009 budget was drafted. We also worked on the 2008 finance reports for expenditures. The finance reports for the revenues were not completed. The Traditional Council is current on all payroll tax requirements and has workers! compensation insurance. - 140 - October — November — December 2008 2" Quarter FY09 - RUBA Report Kobuk Margaret Hansen, LGS/RUBA, Kotzebue Regional Office Kotzebue RUBA staff traveled to Kobuk at the request of the city who owns the electric utility. Due to high staff turnover, the Power Cost Equalization (PCE) reports were not being completed and the utility was on suspension from receiving subsidy payments. RUBA staff trained the mayor, who is serving as the temporary utility clerk, and helped catch up with six months of PCE reports plus two annual Regulatory Commission of Alaska (RCA) reports. The city had an outstanding bill to Alaska Village Electric Cooperative. RUBA contacted the Alaska Energy Authority and negotiated an agreement to allow the utility extra time to become compliant before losing all PCE payments for 2008. RUBA staff worked with utility staff to complete all RUBA reports and one annual report before leaving the community. The second annual report was completed by the end of December and satisfied the Alaska Energy Authority. Letters were sent to all residents informing them that they must pay past due bills or be disconnected. The lack of PCE payments was directly affecting the water and wastewater utility in the additional expense to provide a service. Receiving the PCE credit will allow the community to pay the AVEC debt and credit the Kobuk utility with their portion. Koyukuk Leroy Seppilu, LGS/RUBA, Fairbanks Regional Office Fairbanks RUBA staff worked with the city administrator to try to have leaks on the main waterlines fixed. There had been some leaks in the waterline from the washeteria to the school. The city ended up shutting off the waterlines to see what could be done. The main water plant operator was on travel status. The Fairbanks Remote Maintenance Workers (RMW) were also contacted to no avail as they were out traveling as well. RUBA staff went back to Fairbanks before the issue was resolved. RUBA left instructions on who to contact when the water plant operator got back. Manokotak Ralph Andrew, LGS/RUBA, Dillingham Regional Office RUBA maintained contact with City of Manokotak staff during the quarter as they worked to address several deficient RUBA management assessment indicators. In summary, city staff is working to resolve several deficient essential indicators and anticipates resolution by the end of January 2009. RUBA provided support to city staff, primarily with monthly financial reporting and budget recommendations. The Village Safe Water (VSW) engineer assigned to the community was in contact with city staff to encourage them to address and resolve deficient essential indicators. RUBA maintains contact with the VSW engineer concerning the status of the RUBA assessment. City staff continue reviewing and addressing recommendations RUBA offered after an onsite RUBA assessment in September 2008 including preparations for a water/sewer rate analysis. The city requested a water/sewer rate analysis in late December 2008 which will be scheduled next quarter. -141- October — November — December 2008 2" Quarter FY09 - RUBA Report Nikolai Tammy Helms, LGS/RUBA, Anchorage Office RUBA staff traveled to Nikolai October 6, 2008 with Tanana Chief's Conference engineer Trevor White to assist with final elections preparations and recommend changes to the current management of fuel sales. The visit follows several weeks of frequent contact with the community in preparation for an election. RUBA staff spoke with numerous past council members, candidates for the new council and community members about the election, which is the first held in the community in five years. Contact was also made with the local election official to answer questions concerning the election process. Unfortunately the election was contested and although RUBA staff made numerous attempts to assist the community in holding a special election the community did not show interest in receiving the assistance. The community remains unable to access state community revenue sharing funds until a valid election is held and certified. They continue to have a fuel crisis as they have no money to purchase fuel. DCRA staff also spoke with council and community members urging the community to commit to a pre-pay system for fuel purchasing. The current system is basically an honor system for gas sales and community members have not been charged at all for home heating fuel. If the current fuel sales system is not changed, Nikolai will be unable to pay its fuel loan or have the funds to order fuel after the current inventory is used. The City of Nikolai owes approx. $46,736 for the 2007 fuel delivery and has committed their FY09 State Revenue Sharing to the outstanding bill from the fuel supplier. Nunapitchuk Ken Berlin, LGS/RUBA, Bethel Regional Office The City of Nunapitchuck delivers water to community residents and there is a watering point in the washeteria for those who prefer to haul their own water. The washeteria also offers laundry, showers, and sauna services. The city also operates a flush haul septic system. Only the school has piped water and sewer service. On December 16, 2008 RUBA staff traveled to Nunapitchuk and worked the city's administration and finance staff to correct the deficiency RUBA indicators. Copies of the following were obtained: FY 2009 budget, monthly finance reports to October, quarterly reports, workers compensation insurance, electric bills, water and sewer business plan and fuel inventory. All of the essential indicators, except the taxes, not in compliance were corrected. The new city clerk needs to get more training and the bookkeeper needs training in QuickBooks Pro. Old Harbor Tammy Helms, LGS/RUBA, Anchorage Office On October 28, 2008 RUBA staff traveled to Old Harbor and met with City Mayor Rick Burns and City Treasurer Russell Fox to discuss current community needs for assistance. The Mayor requested assistance in drafting ordinances for harbor operations, property disposal, and equipment rental for city council review. RUBA staff also met the new city clerk and was available to answer questions and review the RUBA management assessment. The City of Old Harbor continues to meet all of the RUBA essential management indicators. The council has been proactive and dedicated in staying current will all aspects of the assessment. - 142 - October — November — December 2008 2" Quarter FY09 - RUBA Report Port Alexander Lawrence Blood, LGS/RUBA, Juneau Regional Office Juneau RUBA staff traveled with a RUBA sponsored QuickBooks contractor to Port Alexander on November 10-14, 2008. RUBA and the contractor provided program training, accounting system reconfiguration, and entered payroll information and water accounts into QuickBooks. RUBA has scheduled two more on-site visits to provide additional training and assistance. Upon completion of the Port Alexander site visits, the QuickBooks contractor will provide a customized user manual for the utility system accounting processes. This customized manual reduces trauma when the utility experiences staff turnover. The QuickBooks technical assistance and staff training provided should substantially increase the local government’s capacity in the area of financial management. Quinhagak Ken Berlin, LGS/RUBA, Bethel Regional Office RUBA staff traveled to Quinhagak December 10, 2008 and assisted city and tribal staff members that were working to correct deficient RUBA management indicators. The tribal council operates the water treatment plant and central watering point, water and sewer flush haul and washeteria under an Agreement of Understanding with the city. The community has plans for a piped water and sewer system and the RUBA management assessment is required for a project to occur. Management deficiencies relating to the FY 2009 budget, monthly finance reports, utility electric bills, fuel supply and workers compensation insurance were addressed and corrected. The City and the Native Village of Quinhagak currently meets all RUBA essential management indicators. The City and IRA have a working Agreement of Understanding where the IRA is contracted to provide all services previously provided by the city. r Seldovia Tammy Helms, LGS/RUBA, Anchorage Office On November 5, 2008, RUBA staff traveled to Seldovia at the city's request to meet with new City Manager Tim Dillon as well as other city staff to discuss water customer service agreements for the community. During a community tour, RUBA staff observed one home that had an outside water hose on to avoid the house water freezing. Approximately 4-5 gallons per minute of treated water was being wasted at no consequence to the customer. The group discussed the issue of customers wasting water and how having a customer agreement would give the city some leverage in dealing with the problem. RUBA staff provided several sample customer agreements for the city's use in developing one for Seldovia's water utility. Stevens Village Jeremy Johnson, LGS/RUBA, Fairbanks Regional Office Attempts to contact Stevens Village this quarter were unsuccessful. A meeting early in January 2008 between RUBA staff and the private financial company hired by Stevens Village was the last contact with this community. No documentation supporting essential indicator capacity requirements has been received, therefore, RUBA is unable to report them as positive at this time. Stevens Village does not meet all essential RUBA management indicators, although they have made positive progress with the creation of a preventative maintenance plan. Previous records indicate that the Stevens Village washeteria does not generate sufficient revenues on its own to meet operating expenses; it is subsidized by other funds. Although the tribal council has various program and project budgets, it does not have an overall budget that clearly identifies all its funds. The tribe has some very significant financial liabilities. It is unclear how Stevens Village will be able to pay all these liabilities, much less any annual subsidy for the water utility. RUBA does not have access to Stevens Village accounts; the tribe hired a private financial company, located in Fairbanks, to manage all accounting functions. - 143 - October — November — December 2008 2" Quarter FY09 - RUBA Report Teller Josie Bahnke, LGS/RUBA, Nome Regional Office Nome DCRA staff hosted a visit from the Teller city administrator who provided an update of events in Teller. The city will resume operation of the water plant from the school district and plans to send two local residents to water plant operator training. The city overpaid the IRS causing a substantial overdraft and requested RUBA assistance to seek reimbursement. The city received a CDBG grant to build a new clinic with a grand opening planned in January. The Norton Sound Hospital in Nome and Nome RUBA staff have been seeking ways to provide the city a new basketball court. The old basketball court was used as a foundation for the new clinic. Norton Sound Hospital and ANTHC have agreed to build the basketball court in the summer of 2009. The city has also requested assistance seeking additional Village Based Counselors (VBC) to deal with recent suicide attempts and maybe prevent additional suicides from occurring. The City of Teller does not meet all essential management indicators at this time. Thorne Bay Lawrence Blood, LGS/RUBA, Juneau Regional Office The City of Thorne Bay continues to meet all essential management indicators. Significant activities this quarter consisted of an agreement between the city and RUBA program to conduct a field trial of the Check Up Program for Small Systems (CUPSS) software. CUPSS is an asset management tool developed by the Environmental Protection Agency (EPA) for small drinking water and wastewater utilities with fewer than 1,000 connections. With the CUPSS software, a utility gains a better understanding of its financial situation and can develop a tailored asset management plan by recording its capital assets and managing a schedule of required tasks. The City of Thorne Bay has agreed to implement the CUPSS software to test its applicability with small water and wastewater systems in rural Alaska. The RUBA program will provide financial assistance through a small grant to help cover administrative needs. In return, the city will provide the RUBA program with invaluable information through progress reports, presentations, and other documentation to help implement the CUPSS software throughout the state. The city was provided a travel and lodging scholarship for a city staff members to attend a RUBA program sponsored QuickBooks class held in Sitka October 17-21, 2008. Two staff successfully completed the training. Togiak Ralph Andrew, LGS/RUBA, Dillingham Regional Office RUBA traveled to Togiak December 4-5, 2008 to update the RUBA Assessment of Management Indicators, a special sanitation grant condition. Presently RUBA is drafting a RUBA assessment report for city review and will finalize the report shortly. At this time the city appears to be satisfying all RUBA management essential indicators. During the visit, RUBA provided onsite assistance to city staff on topics including computerized bookkeeping and monthly financial reporting. RUBA also traveledto Togiak in mid-December with DCRA Planning staff to hear from the city council about their interests in community planning. During the visit, RUBA provided an overview of city council member roles and responsibilities to the city council at the invitation of the new mayor, Anna May Ferguson. -144- October — November — December 2008 2" Quarter FY09 - RUBA Report ee OOOO port Voznesenka Earl Gibson, LGS/RUBA, Anchorage Office On November 24, RUBA staff made an on-site visit to Voznesenka Water Utility and met Utility Operator Dimitri Basargin. Operator Basargin was receiving operator training in the new facility. RUBA staff also met with the contract accountant for Voznesenka, Kathy Kacher. We reviewed and discussed the RUBA management assessment. Voznesenka will soon be taking over the operation of the new water facility from Village Safe Water. We discussed Vosnesenka's budget and monthly financial report format. The utility has a proposed budget from Village Safe Water, but the community felt the figures given were not feasible and needed additional review. RUBA staff was informed that there would be additional information forthcoming when the President was available. We went over the assessment and the documentation that will be sent through their contract accountant. We ended the meeting with my sharing a list of items that RUBA staff needs in order to satisfy indicators on the RUBA assessment. RUBA staff will continue to provide assistance upon the request of the community.