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HomeMy WebLinkAboutRural Utility Business Advisor Program July 1- September 30 2007 Rural Utility Business Advisor Program RUBA Quarterly Report July 1 - September 30, 2007 First Quarter FY08 Fw BA RURAL UTILITY BUSINESS ADVISOR RUBA Program Manager Elizabeth Manfred 550 W. 7th Ave., Suite 1770 Anchorage, AK 99501-3510 [Elizabeth's office is on the 16th floor in Suite 1640] 907-269-4556 (phone) 907-269-4563 (fax) elizabeth.manfred@alaska.gov Rural Utility Business Advisor (RUBA) Program Activity Report July 1 — September 30, 2007 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 July 1 through September 30, 2007. This report describes activities in two general areas. The first area is program activity not specifically associated with direct community assistance. The second part of the report is divided into RUBA and Non-RUBA community reporting which describes the status and activity of specific communities. The RUBA communities have signed RUBA Agreements requesting assistance and developed a work plan with RUBA staff to meet specific capacity building goals. Those communities listed as non-RUBA are communities that staff traveled to and provided on-site assistance this quarter. Major Issues Staffing With the below listed new hires, the Rural Utilities Business Advisor (RUBA) Program is fully staffed. Flora Olrun accepted the position of Local Government Specialist (LGS) III in Bethel. Flora is a Local Government Specialist alumni having worked for the Department of Community and Regional Affairs in 1992 to 2000. She left the Department to work as Executive Director. of Orutsararmuit Native Council (ONC), the local Bethel Tribal Council, and returns to the position of LGS with a strong understanding of tribal policies and issues. She is an asset with her history of the department, experience and knowledge of the region, and desire to provide service to both tribes and municipalities. Earl “Tank” Gibson accepted the position of Local Government Specialist II in Anchorage. While in the military, Tank obtained rural experience traveling throughout Alaska administering Armed Services Vocational Aptitude Battery tests. After the military duty, Tank worked with Alaska Labor Relations and Alaska Department of Transportation. He has a strong background in training and will be a welcome addition to the utility management classes presented by the RUBA Program. Jeremy Johnson accepted the position of Local Government Specialist II in Fairbanks. Jeremy is a native of Fairbanks and a graduate of the University of Fairbanks. Most recently he worked for the Department of Natural Resources in Anchorage which allowed him to establish and maintain effective relationships with multiple government entities. That experience and previous banking employment brings strengths in finance and project management to the RUBA Program. RUBA Program Scope of Report Erosion Continues to Threaten Community Infrastructure A working group including Alaska Village Electric Cooperative (AVEC), Northwest Arctic Borough, United Stated Coast Guard (USCG), Army Corps of Engineers, Village Safe Water, Department of Transportation and RUBA continue to work together to prepare for winter storms in various communities. Erosion is threatening infrastructure in the northern coastal communities. In Kivalina, AVEC was forced to relocate the fuel tanks as the closest of 13 full tanks was within 50 feet of the seawall. Bethel, Dillingham, Kaktovik, Kivalina, Newtok, Shishmaref and Unalakleet all continue to suffer serious annual erosion damage. Coordination/Communication Rural Utility Cooperative: RUBA continues to monitor the monthly financial reports of the nine communities managed by the Yukon Kuskokwim Health Corporation (YKHC), Rural Utility Cooperative (RUC) division. Memorandums of Agreement were signed with the communities and RUC allowing RUC to provide all aspects of utility management. The monthly finance reports submitted by RUC support their mission to build capacity in the sanitation utility services provided. RUC fills the need for sound utility management practices within the Yukon region. Alaska Native Tribal Health Consortium: Alaska Native Tribal Health Consortium (ANTHC) notified RUBA that they will absorb the RUC program in January 2008 and expand it to offer utility management assistance statewide. The new program will be called the Alaska Rural Utilities Collaborative (ARUC). RUBA and ANTHC officials will cooperate to identify small utilities with big problems that would benefit from ARUC’s professional management assistance. ARUC will sign a Memorandum of Agreement with the utility to assume responsibility for all management aspects including training and certification of operators. RUBA will monitor monthly finance reports from utilities served by ARUC and provide support when requested. Aleut Corporation Sanitation Project Planning: RUBA staff attended a meeting at the Aleut Corporation office in Anchorage September 17, 2007 to discuss issues regarding Village Safe Water (VSW) sanitation projects for Adak. Also attending the meeting were representatives from DEC/VSW program, Bristol Environmental Engineers, the Aleutian Pribilof Islands Association Remote Maintenance Worker, City of Adak, and the Aleut Corporation. Existing VSW grants for the City of Adak were discussed including spending limitations and grant conditions. RUBA staff presented a general overview of the RUBA assessment process and commented on specific essential indicators that are currently not met by the city. Engineers from Bristol Environmental and DEC/VSW discussed regulatory compliance issues as well as problems caused by the age and poor condition of the water and sewer system. Everyone agreed that a new but smaller system would be better than attempting to repair the existing system, but the lack of a development plan for the community makes planning a new system very difficult. The Aleut Corporation agreed that a housing plan is needed and the process to create one is started. The City of Adak also agreed RUBA Quarterly Report — Ist Quarter FY08 nw RUBA Program Scope of Report to work to satisfy RUBA essential indicators and to become compliant with DEC drinking water regulations. University of Alaska Fairbanks: RUBA and the University of Alaska have been developing a Utility Manager Certification program. The course materials include the series of 32-hour rural utility management classes presented by RUBA in statewide regional locations. The university had previously certified the teaching materials and awarded college credits for successful participation in the courses. The new plan is to teach the courses on campus and award a Certification of Occupational Endorsement for Utility Managers who complete all six RUBA courses. A meeting with the Occupational Endorsement Advisory Committee will be held next quarter to identify potential adjunct instructors and former students who may be interested in credit for prior learning. President Hamilton approved and signed the Rural Utilities Training Occupational Endorsement after a review process that involved seven levels of university bureaucracy. The occupational endorsement program will be administered within the University of Fairbanks, College of Rural Community Development Tribal Management Program. Department of Environmental Conservation (DEC): Staff from the RUBA program participated in the Village Safe Water and the Sanitation Deficiency System (SDS) grant scoring committee. RUBA staff has participated in the scoring of the VSW grants for the past eight years. There were approximately 40 applications for the VSW grants. In addition, there were 18 applications to VSW to fund sanitation planning studies. This is the second year that staff has assisted in scoring the SDS grant requests. The SDS system attempts to document all sanitation needs of Native communities in Alaska and only the highest 60 of these requests were scored. Construction funding through the VSW and SDS has ranged from over $115 million in 2003 to an estimated $83 million in 2007. Multi-Agency Cooperation Provides Technical Assistance to Prince of Wales Island Communities: Staff members from RUBA, Alaska Department of Environmental Conservation (ADEC), Village Safe Water (VSW), Southeast Alaska Regional Health Consortium (SEARCH) Environmental Health, and Alaska Rural Water Association (ARWA) traveled together to provide managerial and technical assistance to Prince of Wales communities. All of the communities are experiencing significant management, regulatory, water quality, and operational problems with their sanitation systems. The group met with city leadership including the utility operators to identify specific areas where the utility could make immediate improvements. The group also participated in community meetings to answer questions and listen to community member concerns regarding the sanitation systems. The most significant and recurring issue addressed in these meetings was with the water quality. Bristol Bay Leadership Meeting: RUBA staff coordinated Commerce Commissioner Emil Notti and Deputy Commissioner Mike Black travels to Dillingham August 1-2, 2007 to attend a round table discussion with regional agency leaders. Agencies represented included the Bristol Bay Area Health Corporation, Bristol Bay Economic Development Corporation, Bristol Bay Native Association, the regional housing authority, the regional seafood development association, and the regional native corporation. The Commissioner also met ES RUBA Quarterly Report — Ist Quarter FY08 a3 = RUBA Program Scope of Report with municipal officials, the Chamber of Commerce, and local business leaders to learn concerns, challenges, and opportunities. Leaders voiced concerns about high energy costs, rising gasoline and heating fuel prices, public health needs and how these issues affect sanitation projects. The meetings provided an opportunity for the Commissioner to give updates on priorities of the Department of Commerce, Community and Economic Development (DCCED) and the Division of Community and Regional Affairs (DCRA). National Rural Water Association (NRWA): RUBA staff attended the National Rural Water Association Leadership Conference held at the Pennsylvania Convention Center in Philadelphia September 23-26, 2007. In addition to an exhibition hall with over one hundred industry related exhibitors, there was a wide variety of informative presentations of interest to managers, board members, and others that are involved with rural water and sewer utilities. The presentations involved subjects such as funding rural sanitation projects, financial planning for utilities, basic board member responsibilities, retaining utility employees, and charging enough to fund reserves. The conference provided a great opportunity to meet and socialize with others while learning how the provision of water and sewer service areas vary in different parts of the country. RUBA staff has requested the opportunity to present a session on the challenges of water and sewer service in rural Alaska at the next annual NRWA Conference. Remote Maintenance Workers (RMW): Aleutian Pribilof Island Association (APIA) RMW Doug Abbas co-presented the RUBA Operations Management for Rural Utilities 32- hour course in Dillingham this quarter. The RMW program is coordinating with RUBA to edit and rewrite the Operational Management for Rural Utilities course material which made his participation in presenting the class invaluable. The course teaches utility managers to relate to and understand the duties and responsibilities of utility operators. RMW Doug Abbas has attended semi-monthly meetings with RUBA to edit the current material for presentation to a utility manager audience. After presenting the course, comments from participants were that the original course was targeted more for operators. Doug’s technical experience and knowledge will help in changing the direction of the material from operators to managers. At the request of Remote Maintenance Worker (RMW) Steve Evavold, RUBA staff traveled to Larsen Bay to attend a community meeting regarding the replacement water treatment plant. ANTHC Engineers and representatives from Icicle Seafoods were also in attendance. Information concerning the upcoming water plant project was provided and grant conditions, including continuation of meeting essential management indicators, were discussed. This initial meeting was short and to the point, yet very productive. RUBA staff also traveled with RMW Evavold to Old Harbor to discuss their upcoming water treatment plant construction and the issues the city needs to address such as raising the water rates. The city manager stated the city council is discussing water rates and are focusing their energy on collection of past due accounts. RUBA staff worked with the manager and city clerk to complete the FY08 budget and adopt and implement a fuel ordinance. RUBA Quarterly Report — Ist Quarter FY08 -4- RUBA Program Scope of Report Internal Revenue Service: On July 12, 2007, RUBA staff attended a meeting of the Rural Alaska Pilot Project (RAPP) with representatives from IRS, Denali Commission, Department of Labor and the Division of Retirement & Benefits, State of Alaska. The quarterly meetings are held to discuss how rural Alaskan governmental entities, both tribal and municipal, can receive assistance with their financial, bookkeeping, and tax problems. The Authorization to Request Federal Tax Information form was again discussed and suggestions for modification were noted. The IRS/Taxpayer Advocate reported the declining quality of the authorization form due to illegible handwriting and fax “shrinkage.” It was suggested that since this is a PDF form that the requestor completes the form on-line, then print and sign it before faxing it to DCCED/RUBA or the Denali Commission. New training opportunities were also noted. PERS/TRS will be conducting a work shop in Juneau November 13-15 which will include a slot on the agenda for gaming information. Technical Assistance (TA) Providers: Members of the TA Providers group include representatives from Alaska Department of Environmental Conservation (ADEC) Division of Water Village Safe Water Program, Alaska Native Tribal Health Consortium (ANTHC), Environmental Protection Agency (EPA) Remote Maintenance Workers, Rural Community Assistance Corporation (RCAC), and RUBA. It was decided at the last meeting to split up the TA Provider business meeting and the community assistance meetings and meet twice monthly. The group continues to monitor progress made in Gambell and has contacted Scammon Bay, Tununak and Hydaburg with offers to provide technical and management assistance. Alaska Water Wastewater Management Association (AWWMA): RUBA staff attended the AWWMA Southeast conference held in Juneau and made a presentation regarding state negotiated purchasing contracts. These contracts provide significant savings that utilities may not be able to otherwise achieve through normal contracting activities. When utilities combine their purchasing with state contracts, they leverage their money in purchasing volume to receive the best prices. The presentation unveiled a new website set up specifically for political subdivisions of the state to access these contracts. Denali Commission: The Denali Commission Planning Work Group supports the practice of good planning at all levels. Good planning is defined as planning that is locally driven, promotes cost-effective infrastructure that can be locally maintained, is environmentally sustainable, enhances the growth of a diverse economy, and assists agency responses to community needs. The planning work group requested that RUBA present information regarding the RUBA management assessment process during their July 19 meeting. RUBA Program Manager shared information regarding how the management assessment process has developed over time to meet the needs of both agencies and communities in ensuring the successful management of rural sanitation projects, and plays a key role in funding for sanitation construction. The management assessment is a resource available to other agencies in planning cost-effective infrastructure that can be locally maintained. The assessment and on-site assistance is provided at the request of the community and at no cost to the community. The community must meet the essential capacity indicators prior to Village Safe Water releasing construction funds. Assessments are updated quarterly. RUBA Quarterly Report — Ist Quarter FY08 - mn ‘ RUBA Program Scope of Report Kawerek Inc: Kawerek Inc. is the regional native nonprofit organization for the Bering Strait region. On September 27, Nome RUBA staff worked closely with Kawerek’s General Counsel, John Bioff, to co-instruct workshops on local government topics at the Kawerak Inc. annual conference. The ‘Conducting Effective Meetings’ workshop was attended by sixteen participants who may use the skills learned to become effective council members or utility board members. This training was delivered with a combination of flip charts, interactive exercises, and role playing. Despite distractions that included a power outage and the smell of a butchered seal, the participant evaluations were very positive. Performance Goals Travel to Communities: RUBA On-site Assistance: While not formally listed as a performance standard, travel to communities is critical to fulfilling the RUBA Program mission. At the invitation of communities, RUBA staff completed 59 trips to 44 communities during the first quarter of FY08. Sixteen RUBA staff spent a total of 128 days providing on-site assistance including conducting management assessments, city clerk training, city administrator training, new utility planning, and providing guidance relating to financial accounting and reporting, utility rate setting, collections, billing, codifying city ordinances, and preparing IRS repayment agreements. Management Assessments: Management Assessments and Follow-up Assistance: For the first quarter of FY08, RUBA staff completed 40 management capacity assessments or reassessments. Of the 40 communities, 18 meet all essential indicators, including six that did not previously meet all essential indicators. In addition, nine communities have gains in the number of sustainable indicators met, with three of these meeting all sustainable indicators. Increased On-Site Assistance Through Use of Contractual Staff: On-site Management Assistance: Due to a concentrated effort by the state to maintain the status quo of the number of state employees, the RUBA program has the need and the funds to hire additional staff, yet is unable to do so. To fill that need, RUBA proposes to award grants to regional nonprofit corporations who will hire local staff to perform services related to rural sanitation projects and management of those projects. A grant was drafted and presented to Bristol Bay Area Health Corporation (BBAHC) for review to provide on-site assistance to communities in the Bristol Bay region. The grant will allow BBAHC to hire a staff member who will assist communities in the region in much the same manner as RUBA staff. This staff person will be working from the same office as the Dillingham RUBA staff member and will be closely mentored by the RUBA staff. Alaska Rural Utilities Collaborative: A grant was drafted and presented to Alaska Native Tribal Health Consortium (ANTHC) who will takeover and expand statewide the Rural Utilities Cooperative (RUC). Presently the RUC only serves utilities within the RUBA Quarterly Report — Ist Quarter FY08 -6- RUBA Program Scope of Report Yukon Kuskokwim region. ANTHC will provide a management service known as the Alaska Rural Utilities Collaborative (ARUC). The RUBA grant will fund an employee for ARUC who will identify and recruit utilities across the state to join the program and receive the benefit of leveraging management and training costs. RUBA will receive and monitor monthly finance reports from communities served by ARUC. QuickBooks Pro Assistance: The RUBA program has contracted Turnagain Press to provide on-site installation and training for three RUBA communities per year. Turnagain Press travels to each community a total of three trips approximately thirty days apart to work one-on-one with two utility staff. RUBA staff follows a nomination process to identify which communities receive this assistance. This quarter, Turnagain Press completed two on-site trips to Nondalton to complete set-up of the utility and training of utility staff. Additionally, Turnagain Press has provided telephone and web-based support. Communities who have received the on-site installation and subsequent training have report 100% satisfaction with the contractor’s ability to resolve their QuickBooks related issues. Training Classes Presented: Dillingham: The Operational Management for Rural Utilities course was presented in Dillingham from August 6-10, 2007. RUBA staff from Anchorage and Dillingham were assisted in presentation by Remote Maintenance Worker (RMW) Doug Abbas. This class was cosponsored by Bristol Bay Native Health Corporation. This course teaches utility staff how to keep a water/wastewater system running safely and efficiently. Topics of the course include safety, operations and maintenance scheduling, data collection and reporting, public relations, inventory control, and contingency planning. Eight participants from the communities of Kokhanok, Newhalen, New Stuyahok, Nondalton, Platinum, Thorne Bay, and Togiak attended this class. Fairbanks: The Introduction to Rural Utility Management course was presented in Fairbanks from September 24-27, 2007. RUBA staff from Fairbanks cosponsored this class at the request of Tanana Chief’s Conference. The Introduction to Rural Utility Management course provides an introduction and overview to managing a water/wastewater system. The course materials also provide a brief overview of the five other courses in the utility management series. Eight participants from the communities of Anchorage, Arctic Village, Bethel, Rampart, Ruby, and Shageluk attended this course. Scholarships for Utility Staff Training: As a result of higher expenses to provide rural utility services, many utilities were forced to cut their budgets in the area of training. RUBA has established a mini-grant fund to provide airfare and lodging reimbursements to utility staff who attend RUBA sponsored classes. This quarter, RUBA provided reimbursement to four of the 16 students who attended RUBA classes. New Tools to Assist Rural Utilities RUBA Quarterly Report — Ist Quarter FY08 aS RU BA Program Scope of Report Elected Officials Training Manual: Based on research and documentation provided by RUBA, a contractor was hired to draft a 32-hour student manual for Elected Officials Training. This manual will become one of the utility management series presented by RUBA and endorsed by the University of Alaska Fairbanks. The student manual was completed in September. After review by RUBA staff, an additional contract will be issued to complete an instructor’s manual for the same topic. Once the instructor’s manual is completed, the course will be presented in a regional setting. RUBA is presently on schedule to offer this course by the end of FY08. Utility Clerk Training: Based on research and documentation provided by RUBA, a contractor was hired to draft a 32-hour student manual titled Utility Clerk Training. This manual will become one of the utility management series presented by RUBA and endorsed by the University of Fairbanks. The student manual was completed in September. After review by RUBA staff, an additional contract will be issued to complete an instructor’s manual for the same topic. Once the instructor’s manual is completed, the course will be presented in a regional setting. RUBA is presently on schedule to offer this course by the end of FY08. Certified Utility Manager Program: RUBA contacted the University of Alaska previously with the goal of offering the series of utility management courses through the university and issuing a Utility Manager Certificate to all who completed the series. The university did accept the course materials for college credit and has continued to work with RUBA to develop the certification program. This quarter President Mark Hamilton signed off on the paperwork to create what will be called an occupational endorsement rather than certificate. The program will be executed by the University of Alaska Fairbanks, Cooperative Extension Service. New Publication Development: Financial management of rural utilities is an ongoing area of concern. RUBA noted that high staff turnover and lack of training in accounting caused a majority of the financial record keeping problems that occurred. RUBA chose to support QuickBooks Pro as the most efficient and user friendly computer accounting program available. In an effort to provide additional consistent QuickBooks Pro training, RUBA contracted with Turnagain Press to draft an Introduction to QuickBooks for Sanitation Utilities manual. This manual was completed in July and is ready for printing. An RFP will be issued for the printing of the manual and distribution will begin as soon as possible. UTM Course Revision: In FY08, RUBA will be updating, editing, revising, and reprinting all six of the utility management courses. This quarter, an RFP was issued and a technical editor was contracted to assist with this project. The contract editor will begin work in the second quarter of FY08. Coordination with Sanitation Entities and Policy Groups Conference Presentations: This quarter, RUBA staff attended the Alaska Water and Wastewater Management Association (AWWMA) Southeast conference. While at the RUBA Quarterly Report — Ist Quarter FY08 -8- RUBA Program Scope of Report conference, RUBA and Alaska Department of Administration (DOA) presented information regarding the state contracting opportunity. RUBA and DOA unveiled a new website which allows municipal entities to take advantage of state purchasing contracts. Municipal utilities will leverage their money when participating in the state system. Village Safe Water — Capital Improvement Grant Scoring Committee: A RUBA staff person was appointed to the VSW Capital Improvement Grant Scoring Committee. This committee met last quarter to review applications and draft an awards list. This quarter, the committee met to research applicants’ requests for additional review and to finalize the grant awards. RUBA Program Activity Map July 1 through September 30, 2007 - " swoon nel 6 Ae Se Pca ~aeorr Patey ~ ene “ a. oo \ -_ see 0" ghee sara Snr rn on Cn ee nomen a” Ps ® On Site Assistance 4 Ruba Assessment UTM Training RUBA Quarterly Report — Ist Quarter FY08 -9- RUBA Program Scope of Report RUBA Quarterly Report — Ist Quarter FY08 -10- July — August — September 2007 1“ Quarter FY08 - RUBA Report Table of Contents Akiak....... Alakanuk : Anchor Point. 17 Angoon.... 21 Chignik 27 Elim.. 233 Emmonak 39 False Pass 45 Gambell «S51 Golovin... 57 Gulkana.. 63 Hooper Bay 69 Kasigluk..... 75 Larsen Bay . 81 Marshall . 87 Nanwalek 93 Newhalen 99 Nightmute .. -105 Nikolaevsk . 111 Nondalton... -117 Old Harbor. 123 Platinum........... -129 Scammon Bay .. 135 Shageluk........... 141 Stevens Village .... 147 Tuluksak........... 153 Venetie Traditional Counci July — August — September 2007 I Quarter F¥08 - RUBA Report Table of Contents Non-RUBA Communities Brevig Mission. Buckland Chalkyitsik Clark’s Point Deering Elfin Cove.... New Stuyahok.. Northway Pilot Point .... Shungnak .. Tanacross .. Teller.. Thorne Bay .. Wales .... Whittier . July — August — September 2007 “Quarter FY08 - RUBA Report ne BA REpOrt Community Activity Reports First Quarter FY08 July 1 — September 30, 2007 = July — August — September 2007 1“ Quarter FY08 - RUBA Report ee Ee ee pore Akiak Activity Report Community Overview Lead RUBA Staff: Flora Olrun, Bethel Office 2003 Population: 378 Region: Lower Kuskokwim Local Government: Unincorporated ed 4: v oN, por * A new well, water treatment plant and storage tank were : recently completed. The school and clinic are connected directly to the water plant. Individual wells, septic systems and plumbing were installed in 14 HUD homes during 1997. Sewage disposal is currently by septic tanks, honeybuckets or privies, but major improvements are underway. A piped water and gravity sewer system is under construction, with household plumbing. Sixty seven homes need water and sewer services. Most residents are dependent upon the washeteria for laundry and bathing. The City provides septic pumping service at least once or twice a year to some residential and commercial buildings. RUBA Activity This Reporting Period Due to a change in Bethel RUBA staff, this community was reassigned this quarter. Division of Community & Regional Affairs Director, RUBA Program Manager and the newly assigned RUBA staff all traveled to Akiak to complete a RUBA management assessment and attend an IRA council meeting at the request of the council. The Administrator submitted monthly finance reports and requested assistance with formatting them to give the most information to the governing body. The Administrator has effected several positive changes in the management which will be reflected in the new assessment, which was completed on 8/9/07. July — August — September 2007 1“Quarter FY08 - RUBA Report Ly P. P 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. Xl Monthly financial reports are prepared and submitted to the policy making body. XX The utility is current in paying all water/wastewater electric bills. X The utility has on hand a year’s adequate fuel supply or it has financial plan to y' purchase an adequate. Oj Kl The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. . Sustainable Indicators &] The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. & YTD revenues are at a level equal to or above those budgeted. & YTD expenditures are at a level equal to or below those budgeted. & A monthly manager’s report is prepared. Budget amendments are completed and adopted as necessary. Finances Comments: The budget needs to be revised, the following expense items should be added: travel, electricity, and water services to the Tribal building. The subsidized amount from the general fund should be reflected in the budget to balance income and expenses. The Tribe has a large, delinquent electricity bill but is making payments and attempting to negotiate with the provider. They have been able to make payments on their current monthly electric bills. Akiak Native Community ordered 5000 gallons of fuel. Fuel is stored at the water house which has a thousand gallon storage tank. The remainder of the fuel is stored at the bulk fuel tank farm which is owned by the Native Community of Akiak. If additional fuel is needed, it is purchased from the local village corporation. Regular reports to the Council by the Executive Director are recorded in the meeting minutes. Accounting Systems Essential Indicators Yes No XX) The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. An accounts receivable system is in place which tracks customers and reports past due accounts and amounts. An accounts payable system is in place. The payroll system correctly calculates payroll and keeps records A cash receipt system is in place that records incoming money and what it was for. The utility has a cash disbursement system that records how money was spent. XRXeX Wh Sustainable Indicators & A chart of accounts is used that identifies categories in a reasonable, usable manner. Xl Monthly bank reconciliation’s have been completed for all utility accounts. X The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. -6- July — August — September 2007 “Quarter FY08 - RUBA Report eee RA Report Accounting System Comments: The Tribe has one customer for water service, the Yupiit School District. The Tribal office building is also provided water service. The school is the only customer that is invoiced and they pay a flat rate” each quarter. Individual residents purchase prepaid tokens for water. Accounting records for the water service are currently being identified as part of the general fund. The QuickBooks program can identify the accounts as separate accounts. The water service account needs to be separated from the general account. Both the accounting clerk and the Executive Director expressed their need for additional training in QuickBooks. Tax Problems Essential Indicators Yes No & The utility has a system to accurately calculate, track, and report payroll tax liabilities. ® The utility is current on filing tax reports. & The utility is current on making tax deposits. & If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: On 10/03/07, IRS has deemed the Native Community of Akiak compliant with tax filing and tax deposit requirements. There are no recorded notices of federal tax liens against the Native Community of Akiak. a Personnel System Essential Indicators Yes No &X The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators & The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. & The utility has adequate written job descriptions for all positions. XX] The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. The utility provides training opportunities to staff as needed and available. kX &® OR July — August — September 2007 1“ Quarter F¥08 - RUBA Report Personnel System Comments: Workers' compensation is current and posted. The insurance is through Liberty Northwest and is good through 1/12/2008. The Native Community of Akiak has a personnel policy which was completed by a consultant in 2003. The Executive Director expressed a need for the personnel policy to be updated. Evaluations are informal using the personnel policy as a parameter. The evaluations should comply with the policy and be documented in each individual staff personnel file. I-9's are contained in the personnel files of the water service employees but the job application and completed documentation reflecting approval and acceptance of the hiring date, job title, and wage rate also need to be included. All training certificates should be placed in staff files. The Executive Director provides adequate opportunities for staff to attend training sessions. Organizational Management Essential Indicators Yes No X The entity that owns the utility is known and the entity that will operate the utility is set. & The policy making body is active in policy making of the utility. The policy making body enforces utility policy. The utility has an adequately trained manager. The utility has an adequately trained bookkeeper. The utility has an adequately trained operator(s). & The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators KRM Xl The utility has adopted an organizational chart that reflects the current structure. ® The policy making body meets as required. X The utility complies with the “Open Meetings Act” for all meetings. Organizational Management Comments: The Akiak Native Community owns and operates the water service. The Executive Director and the bookkeeper for the Akiak Native Community are experienced and competent. The water service has an adequately trained operator who has Level 1 Water Treatment and Water Distribution certification. The community does not have piped water to individual homes yet but in preparation for when it does occur, they drafted a water and sewer utility ordinance. Akiak Native Community meets once a month and posts the agenda for each meeting where the public has access to the information. The Akiak Native Community is not required to comply with the Open Meetings Act, however, they voluntarily comply with it. July — August — September 2007 1“ Quarter F¥08 - RUBA Report ——— Otc TES = RBA Report Operation of Utility Essential Indicators Yes No & The utility operator(s) are actively working towards necessary certification. é X The utility has a preventative maintenance plan developed for the existing sanitation facilities. ee nee snennensneennnnnrnsntneennerenernenennene Sustainable Indicators The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. X The utility has a safety manual and holds safety meetings. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Consumer Confidence Report (CCR). XK 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. XRRRK Operation of Utility Comments: The preventative maintenance plan is on file in the Bethel regional office. Documentation reflecting a weekly written status report by the operator to the Executive Director is on file. The last Consumer Confidence Report was dated 6/28/07. Akiak Community Water System's last stage 1 violation was in February, 2007. They should return to compliance by Feburary, 2008. 2a RUBA Activities For The Coming Quarter The Akiak Native Community has not met all of the essential capacity indicators. In order to meet them, the utility must take the following actions: List all revenue and expenses for the utility in the utility budget; adopt a balanced realistic budget; prepare monthly financial statements and submit to the policy making body; pay all water/wastewater electric bills; ensure that the utility is receiving (user fees or other sources) sufficient to cover operating expense; adopt a collection policy and actively follow it; contact IRS and clear up tax filing issue; ensure that the policy making body is active in policy making of the utility; adopt the necessary ordinances (or rules and regulations) to give Akiak Native Community authority to operate. RUBA staff will assist the community with meeting these indicators if requested. July — August — September 2007 !“Quarter FY08 - RUBA Report Alakanuk Activity Report Community Overview Lead RUBA Staff: Paul Chimiugak, Bethel Office 2003 Population: 678 Region: Lower Yukon Local Government: 2" Class City od Ae wt The City of Alakanuk operates the piped water and nae sewer system, the central watering point, flush tank and haul system, and washeteria/sauna service. The City Council is the policy making body for the utility. Construction began in 1995 to provide piped water and sewer to 170 homes and the school. In 1998, 83 homes, the school and teacher's housing were first connected. Today, there are 132 utility customers hooked up to the system. Water is derived from the slough, treated, stored in a tank, and piped to most of the community. New facilities include a water treatment plant, heated 300,000-gallon water storage tank, vacuum sewage plant, sewage lagoon, arctic piping and household plumbing. The new subdivision has been completed with all homes connected to the piped system. There are plans to hook up the other side of the river in the near future. The new airport construction is on-going. RUBA Activity This Reporting Period RUBA staff traveled to Alakanuk on August 28, 2007 to conduct aRUBA management assessment. Currently funded sanitation projects for Alakanuk continue to be withheld as Alakanuk does not meet essential indicators of the management assessment. Alakanuk continues to have financial and administrative management problems. The City currently has no insurance coverage and has not adopted a budget; financial reports are not created and reconciliation of bank accounts is not performed. The City of Alakanuk does not meet all RUBA essential indicators. -d1- July — August — September 2007 I“Quarter FY08 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No XX All revenue and expenses for the utility are listed in the utility budget. 1 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. KK] The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. e utility is receiving revenues (user fees or other sources) sufficient to cover 1] The utility i iving fe th fficient t operating expenses. Sustainable Indicators KK] The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. & 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 has yet to complete its FY08 budget, FY06 certified financial statement and FY08 Community Energy Assistance Program forms. There have been no monthly financial reports from the City for some time. The Administrator has budgeted CEAP funds to purchase fuel and petroleum products, but the fuel cannot be purchased until all required financial documents are sent to Juneau. The only financial report received by the Council recently was a verbal financial summary report from the Bookkeeper at a regular meeting. According to the Administrator, the financial report summarized the washeteria earnings and expenses. A manager's report was requested by RUBA, but there was none available either written or in the minutes. RUBA recommended that the Administrator work at creating manager reports for the Council. Accounting Systems Essential Indicators Yes No ® The utility has adopted a collection policy and actively follows it. x) The utility bills customers on a regular basis. ® An accounts receivable system is in place which track customers and reports past due accounts and amounts. & An accounts payable system is in place. The payroll system correctly calculates payroll and keeps records 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. Hew & -12- July — August — September 2007 1 Quarter FYQ8 - RUBA Report ee hw tc 208 RUBA Report Accounting System Comments: The City sends out monthly statements to customers, and the Water Plant Operator has been making disconnections to delinquent customers. Bank reconciliations have not been completed in recent months. Purchase order approval procedures need to be updated or implemented. Tax Problems Essential Indicators Yes No & The utility has a system to accurately calculate, track, and report payroll tax liabilities. ® The utility is current on filing tax reports. XX] The utility is current on making tax deposits. x If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The City is current with the quarterly payroll tax reports according to the IRS, however, there is a past due balance. The Bookkeeper/Clerk is aware of the problem and the IRS agent met with the Council members on August 28; he will negotiate with the City on resolving the past due tax issue. Personnel System Essential Indicators Yes No &] The utility has a posted workers com ensation 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. DJ The utility has an adequate written hiring process. & The utility has personnel folders on every employee that contain at least: 1-9, Job Application and Letter of Acceptance. 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: The City is operating without insurance at this time because insufficient funds are available. There has been a new administrator since January of 2007. The City recently released the City Clerk and Bookkeeper because of poor work attendance and hired two new em ployees; both employees have the same job title of Bookkeeper/Clerk. I-9 forms need to be completed by the City employees. July — August — September 2007 1 Quarter FY08 - RUBA Report Organizational Management Essential Indicators Yes XXXOKRW 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 be X X The utility has adopted an organizational chart that reflects the current structure. The policy making body meets as required. The utility complies with the “Open Meetings Act” for all meetings. Organizational Management Comments: The Council is enforcing collections and the water plant operator disconnects delinquent water/sewer customers. The Administrator would benefit by attending utility management classes and the new bookkeepers may need further training in financial management. Operation of Utility Essential Indicators Yes & & No The utility operator(s) are actively working towards necessary certification. The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators X XRORRK WH The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Consumer Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. -14- July — August — September 2007 “Quarter FY08 - RUBA Report eee A Report Operation of Utility Comments: The alternate water operator is now certified as a water operator after receiving training in Bethel. The Lead Water Plant Operator has been an operator for 24+ years, but his certificates have expired. The~ water plant has been getting spare parts when needed. RUBA Activities For The Coming Quarter RUBA staff will continue to request monthly financial reports; offer assistance with bank reconciliations; request latest IRS/DOL notices and letters; request notification of current insurance policy; provide information required for personnel folders; and continue requesting an organizational chart. July — August — September 2007 1“ Quarter FY08 - RUBA Report Anchor Point Activity Report Community Overview Lead RUBA Staff Jimmy Smith, Anchorage Office 2003 Population: 1792 Region: Kenai Peninsula od Local Government: Unincorporated A 4 Most residents have individual wells, septic tanks, and Pty et AP complete indoor plumbing. A new well, water treatment plant, and water distribution mains were recently installed in an area serving five homes. An expansion of the piped water system to the school, homes and businesses along the Sterling Highway is underway. The school well has been shown to contain lead and some area wells are contaminated with benzene. The Anchor Point Safe Water Corp. was formed to pursue development of a safe water system. The Borough Refuse Transfer Facility is located at Mile 157 Sterling Hwy. RUBA Activity This Reporting Period RUBA staff traveled to the community in late July 2007 and met with the President of Anchor Point Safewater Corporation. The President continues to provide financial reports to RUBA staff for review. The staff continues to work with RUBA to improve the management capacity of the utility. The staff has been working closely with Village Safewater engineer to get construction funding for the water system upgrades. The contractor has been wrapping up the water main work and will be focus ing on the upgrades to the water treatment plant and the water haul system. The contractor has been laying out the water and sewer pipes for the residents of Anchor Point this summer. 17 July — August — September 2007 1 Quarter FY08 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No & All revenue and expenses for the utility are listed in the utility budget. X The utility has adopted a balanced realistic budget. X Monthly financial reports are prepared and submitted to the policy making body. & 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. ia Sustainable Indicators &] The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. YTD revenues are at a level equal to or above those budgeted. YTD expenditures are at a level equal to or below those budgeted. A monthly manager’s report is prepared. Budget amendments are completed and adopted as necessary. XR Finances Comments: QuickBooks is used by Aurora Accounting and Taxes for all financial accounting of the utility. The financial reports are provided to the Corporation Board members for review at the meetings. 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. ainable Indicators A chart of accounts is used that identifies categories in a reasonable, usable manner. Monthly bank reconciliation’s have been completed for all utility accounts. The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. XXRK WeW n ec a o Www Accounting System Comments: The contractor Aurora Accounting and Taxes takes care of all accounting functions for the Corporation using QuickBooks accounting software. The utility adheres to the collection policy adopted by the Corporation Board and makes sure all customers understand the policy. =138- July — August — September 2007 Quarter F¥08 - RUBA Report ttt BI ~ RUBA Report, Tax Problems Essential Indicators Yes No & The utility has a system to accurately calculate, track, and report payroll tax liabilities. XX The utility is current on filing tax reports. & The utility is current on making tax deposits. & If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The Anchor Point Safewater Corporation President signed an Authorization to Request Federal Tax Information on July 17, 2007. The signed authorization was forwarded to the Internal Revenue Service (IRS) who reported the Corporation has not filed 941 reports for the fourth quarter of 2003 and the first quarter of 2004. The utility owes the IRS a small amount and needs to complete a 940 report for 2003. The utility is working with the IRS to resolve these issues. Personnel System Essential Indicators Yes No & The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators &) The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. s The utility has adequate written job descriptions for all positions. > The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. XX The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. &X The utility provides training opportunities to staff as needed and available. KK we Personnel System Comments: The utility staff has been working on a personnel policy for the utility. The staff hopes to have a draft personnel policy completed by the fall of 2007. -19- July — August — September 2007 1“Quarter FY08 - RUBA Report Organizational Management Essential Indicators Yes No The entity that owns the utility is known and the entity that will operate the utility is set. The policy making body is active in policy making of the utility. The policy making body enforces utility policy. The utility has an adequately trained manager. The utility has an adequately trained bookkeeper. The utility has an adequately trained operator(s). The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators The utility has adopted an organizational chart that reflects the current structure. The policy making body meets as required. The utility complies with the “Open Meetings Act” for all meetings. HXXRREK XR Organizational Management Comments: The utility does not have a manager in place but the President of the Corporation acts as a manager for the utility. The Corporation Board members oversee the operation of the utility and have hired Aurora Taxes and Accounting staff to take care of the day-to-day utility operations. Operation of Utility Essential Indicators Yes No &® The utility operator(s) are actively working towards necessary certification. &X The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. X The utility has a safety manual and holds safety meetings. 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. HXKReXN Operation of Utility Comments: The utility has a qualified operator and has been working with the Village Safe Water engineer and a contractor to get the utility's facility in better working condition. The utility is in the process of training an alternate operator. RUBA Activities For The Coming Quarter RUBA staff continues to provide assistance via, phone, facsimile and email to the community. July — August — September 2007 1 Quarter FY08 - RUBA Report Angoon Activity Report Community Overview Lead RUBA Staff Lawrence Blood, Juneau Office % 2003 Population: 497 Region: Southeast Local Government: 2" Class City ed Ve Angoon is located in Southeast Alaska on Admiralty Te, Island and is connected via the Alaska Marine Highway System. The City of Angoon operates and manages a piped water and sewer system. The city council is the policy making body for the utility. Surface water is derived from the Tillinghast Lake Reservoir, is treated, and piped throughout the community. The City of Angoon has operated a piped water system since 1977. Greater than 95% of homes have complete plumbing. Piped sewage is processed at a secondary treatment plant that flows to an ocean outfall. A feasibility study to examine water and sewer service for a new 62-lot subdivision is underway under the auspices of Alaska Native Tribal Health Consortium (ANTHC). On a weekly basis, the City collects and deposits refuse at a municipal landfill located approximately two miles from Angoon. The Inside Passage Electric Cooperative (IPEC) provides electricity. Although the water treatment plant is operating and provides adequate potable water, the City of Angoon is attempting to address numerous community-identified concerns. First, the water source intake pipe is frequently constricted by debris, which has caused the water treatment plant to occasionally cease operations. Second, the wet well is considered too shallow, which is believed to be the cause of pump cavitations, pump burnout, and high operating cost due to staffing and pump replacements. Third, pumping water from Tillinghast Lake Reservoir is believed to create a higher electrical cost. Fourth, the walkway to the water intake location is in need of repair or complete replacement. A gravity fed water supply from Mount Hood is perceived to be a long-term solution to the City's current and future water utility needs. RUBA Activity This Reporting Period Juneau RUBA staff traveled to Angoon twice this quarter to provide technical assistance in creating a balanced and realistic FY08 budget. The City has recently experienced a series of serious financial problems resulting from an inadequate annual budget process. It was the intention of RUBA staff to assist in the budget process by analyzing historical data and past budget performance. The recent efforts in creating a FY08 budget have been impeded by the resignations of the Mayor, City Clerk and finance staff. When the situation stabilizes, RUBA staff will continue to assist the community in creating a balanced budget and in addressing other deficient essential indicators. July — August — September 2007 1‘Quarter FY08 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No & All revenue and expenses for the utility are listed in the utility budget. X The utility has adopted a balanced realistic budget. &) Monthly financial reports are prepared and submitted to the policy making body. & The utility is current in paying all water/wastewater electric bills. I The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. 1 The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators XX The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. & YTD revenues are at a level equal to or above those budgeted. {& YTD expenditures are at a level equal to or below those budgeted. & A monthly manager’s report is prepared. I Budget amendments are completed and adopted as necessary. Finances Comments: The City continues to struggle with being able to meet all of their accounts payable including making electric payments on time and purchasing heating fuel. On June 26, 2007, the City had their electricity disconnected due to non-payment. The City worked out a repayment plan with the Inside Passage Electric Cooperative; however there is concern that the City does not have the ongoing financial resources to fulfill their obligations and will continue to have problems. The City has not yet completed their FY08 budget. Until the budget is completed and adopted by the Council, the City fails to meet the criteria of several essential and sustainable indicators. In completing the FY 08 budget, the City is encouraged to consider historical data and past budget performance. Previous City budgets were essentially unrealistic. The City budgeted for the potential income from enterprise funds by budgeting what was billed to the customers vs. what was actually collected. The City currently has a 39% collection rate which created a huge disparity between budgeted income and the end of year actual income. The Council does not make budget amendments during the fiscal year. Once the Council has adopted the budget, it remains the same until the next year’s budget is prepared. July — August — September 2007 1“ Quarter F¥08 - RUBA Report SS ee eee a eport Accounting Systems Essential Indicators Yes No Xl The utility has adopted a collection policy and actively follows it. KI 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. XRXX a Accounting System Comments: The Council recently reviewed and updated the utility's collection policy; however, there is little enforcement on delinquent accounts and the provisions contained in the policy are not routinely followed. Utility bills are not sent out on a regular basis and follow-up procedures are not being adhered to. As a result, the utility has a large number of accounts that are 90 days past due with a total outstanding accounts receivable in excess of $300,000. Tax Problems Essential Indicators Yes No & The utility has a system to accurately calculate, track, and report payroll tax liabilities. The utility is current on filing tax reports. KI The utility is current on making tax deposits. XX] If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: With the turn-over in finance staff, the City was unable to locate any copies of their 941 filings. The community is believed to be current on their tax deposits because of an overpayment last year. The City does have other unpaid payroll liabilities including child support which was withheld from an employee and has not yet been turned over to the State. July — August — September 2007 1“‘Quarter FY08 - RUBA Report g P. P. Personnel System Essential Indicators Yes No 1 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. 1 The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. KX] The utility provides training opportunities to staff as needed and available. Xe & Personnel System Comments: The City's workers' compensation insurance was cancelled due to nonpayment. The utility has an adopted personnel policy included in the public services ordinance. The utility has well organized personnel files containing the necessary INS forms, IRS forms, acceptance letters and any disciplinary actions. The utility is lacking written job descriptions and a formal evaluation and hiring process. Organizational Management Essential Indicators Yes No & The entity that owns the utility is known and the entity that will operate the utility is set. X The policy making body is active in policy making of the utility. The policy making body enforces utility policy. KK] 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 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. July — August — September 2007 1“ Quarter FYQ8 - RUBA Report a ee rl ~ RUBA Report Organizational Management Comments: There has been recent employee turnover in the City's bookkeeper and accounting clerk positions. The bookkeeper position is currently vacant. The City does not have a written organizational chart that reflects the current municipal structure. The City Council meets as required and complies with the Open Meetings Act. Operation of Utility Essential Indicators Yes No & The utility operator(s) are actively working towards necessary certification. X The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators XK The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. & The utility has a safety manual and holds safety meetings. XX] Utility facilities have not suffered any major problems/outages due to management issues that are unresolved. XK The utility is operating at the level of service that was proposed. & The operator provides status reports to the manager on a routine basis. & The utility has completed and distributed its Consumer Confidence Report (CCR). XX The utility is not on the Significant Non-Compliance (SNC) list. (1) & The utility maintains an inventory control list. XX] The utility maintains a critical spare parts list. Operation of Utility Comments: The utility is on the Significant Non-Compliance (SNC) list because it does not meet the Long-term 1 / Enhanced surface water treatment rule and was issued a notice of violation (NOV)on January 5, 2007. On August 9, 2007, Department of Environmental Conservation (DEC) sent a letter concerning the continued non-compliance with the requirements contained in the January Sth notice of violation (NOV). The letter addressed two specific violations. The first violation was issued for failure to report the results of regular turbidity and chlorine monitoring and the second violation was for failing to have an operator certified at the appropriate level. The letter indicated that further failure to address the NOV would result in DEC taking formal legal action and/ or assessment of administrative penalties. The community was able to address one of the violations by acquiring a working chart recorder that was surplus equipment from the City of Kake and by filing turbidity and chlorine reports on a timely basis and on the appropriate forms. The violation concerning having an operator at the appropriate level has yet to be rectified. The City will need to either hire a certified level II operator or seek approval of an Alternate Method of Supervision Plan (AMOS). The City has taken the initial steps of putting together a draft Alternate Method of Supervision Plan and has contacted a level II water treatment operator in the City of Hoonah who may provide utility supervision if the plan is approved. The utility maintains very few critical spare parts and has an inadequate level of supplies and chemicals. The operators do not maintain an inventory control or critical spare parts list. The utility operators have expressed several concerns with safety including the physical condition of the water treatment plant, exposure to chemicals and the lack of communications outside of the city offices. July — August — September 2007 1“ Quarter FY08 - RUBA Report RUBA Activities For The Coming Quarter RUBA activities for the coming quarter will include: 1) Addressing the deficient essential indicators that were identified in the latest assessment of management capacity indicators. 2) Continue to provide support for increasing collection rates and pursuing delinquent water utility accounts. July — August — September 2007 1“ Quarter FY08 - RUBA Report Chignik Activity Report Community Overview Lead RUBA Staff: Earl Gibson, Anchorage Office 2003 Population: 95 ww Region: Alaska Peninsula Local Governments: 2" Class City ed Water is supplied by Indian Creek, which has a dam “Ae po and a reservoir. Water is treated and piped into most of ON ee the homes and the school, and a well is available for back-up water supply. A second system serves the Trident fish processor, the airport area and a few homes, and utilizes a groundwater well as a source. A project now underway will eliminate the dual system by extending a new mainline from a new storage tank at one end of town to the airport at the other end of town. Improvements to the treatment plant will include new filters and upgraded chemical feed equipment. Piped sewage for most of the community is collected in three group systems into community septic tanks and wastewater is discharged via ocean outfall lines. Approximately 45 homes are served, and the remaining few homes use individual septic tanks. An improvement project now underway will replace the multiple system structure with a unified sewer system for the entire community. A new permitted landfill and access road were recently completed. A study is needed to examine the feasibility of hydroelectric generation at Indian Lake. Electricity is provided by Chignik Electric. RUBA Activity This Reporting Period On August 22, 2007, RUBA staff traveled to Chignik to update the RUBA management assessment and introduce the newly assigned RUBA staff. A new City Clerk has been hired as of October 1, 2007. He is in the process of going through all records to make sure all financial reporting has been done and collection issues are taken care of. Prior to the new clerk's arrival, current financial reports had been received and accounts receivable summaries indicate customer debt had been reduced as of September 2007. An IRS response to a request for federal tax information dated September 2007 indicates the City is current with tax reporting and deposits. The City currently meets all RUBA essential management capacity indicators. Re July — August — September 2007 1“Quarter FY08 - RUBA Report Capacity Indicators Finances Yes xX &kXKRKN No All revenue and expenses for the utility are listed in the utility budget. The utility has adopted a balanced realistic budget. Monthly financial reports are prepared and submitted to the policy making body. The utility is current in paying all water/wastewater electric bills. The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. X XN 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 FY08 budget was adopted June 11, 2007. The City staff is currently using QuickBooks Pro 2007 for all accounting and the City's enterprises are organized as separate departments within one company. This has made it easier for the new clerk to create meaningful financial reports. The City has seen a significant increase in their collection rate over the summer. The current rate is not yet calculated but is anticipated to be well over 85%. Chignik does not have a manager and monthly manager reports are not submitted to the Council. However, status reports are submitted by the City staff as deemed necessary. The City has seen an increase from last year on their raw fish tax and the plan is to purchase fuel on credit and pay for it with tax revenues. As of October 1, 2007, City staff established a fuel loan account to cover this winter's fuel consumption and will pay in monthly installments with the first payment made in September for October. Accounting Systems Essential Indicators Yes X HRXX Ww 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 sys tem 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. S eS a XR tainab le Indicators A chart of accounts is used that identifies categories in a reasonable, usable manner. Monthly bank reconciliation’s have been completed for all utility accounts. The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. > July — August — September 2007 Quarter FY08 - RUBA Report —_——$—$—_——— emer pont Accounting System Comments: The City uses QuickBooks Pro 2007 for all accounting functions. The Council has adopted a water sewer collection policy for the community and is reducing overdue customer debt and disconnecting the water service for non-payment. The utility has 88 customers. All but two customers pay ona regular - basis. Of the two customers, one is on a payment plan and the other refuses to pay for their utilities. The City has good credit with Delta Western and Rural Alaska Fuels. The plan is to purchase fuel for the winter on credit. The revenues from the raw fish tax will then be used to pay for fuel on a monthly basis. Tax Problems Essential Indicators Yes No & The utility has a system to accurately calculate, track, and report payroll tax liabilities. & The utility is current on filing tax reports. & The utility is current on making tax deposits. &® If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: Payroll is completed using QuickBooks Pro, which calculates, tracks, and reports payroll tax. The City of Chignik maintains current reports/deposits with IRS and DOL. In response to an Authorization to *- Request Federal Tax Information dated September 20, 2007, the IRS reported that the City of Chignik- is current in filing tax reports and deposits. Personnel System Essential Indicators Yes No & The utility has a posted workers com pensation insurance policy in effect. Sustainable Indicators & The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. & The utility has adequate written job descriptions for all positions. X The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. Xl The utility provides training opportunities to staff as needed and available. hm July — August — September 2007 1 Quarter FYO8 - RUBA Report Personnel System Comments: The City currently has workers' compensation insurance coverage provided by the Alaska Municipal League Joint Insurance Association. There are job descriptions in place for some of the City's employees but descriptions are needed for other City positions. Performance evaluations have not been established or put into place by the City staff, however, at the Mayor's request, a sample evaluation was provided by RUBA. The City has adopted a personnel policy for the community that was revised by the City Council on June 15, 1995. As of August 23, 2007, the City's personnel policy is generally adequate but staff agrees the policy should be updated to include an evaluation process. New hires receive a 90- day probation period, then the Council performs a verbal evaluation to determine whether the probationary employee should be retained permanently or dismissed. The decision is reflected in the minutes. RUBA staff can assist with updated personnel policies and job descriptions. Organizational Management Essential Indicators Yes No &X The entity that owns the utility is known and the entity that will operate the utility is set. & The policy making body is active in policy making of the utility. & The policy making body enforces utility policy. &® The utility has an adequately trained m anager. X The utility has an adequately trained book keeper. 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 KK) The utility has adopted an organizational chart that reflects the current structure. Xl The policy making body meets as required. Xl The utility complies with the open meeting act for all meetings. Organizational Management Comments: The new City Clerk is in the process of getting a handle on the day to day utility management, with assistance from the Mayor. The City has three operators with certifications for water treatment Operator In Training (OIT) and water distribution OIT. With the new City Clerk in place, the City staff will re- address developing an organizational chart. - 30- July — August — September 2007 1 Quarter F¥08 - RUBA Report a ——— Otc YO - ROBA Report Operation of Utility Essential Indicators Yes No & The utility operator(s) are actively working towards necessary certification. & The utility has a preventative maintenance plan developed for the existing sanitation facilities. eerie 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. XKKXKK Operation of Utility Comments: The Bristol Bay Area Health Corporation (BBAHC) provides training money and encourages operators to continue professional growth. BBAHC sends a remote maintenance worker (RM W) periodically to provide local training and support. City operators are taking part in AML/JIA's Loss Control Incentive 2 Program, which brings operators together via teleconference each month for a safety meeting. The water utility is currently listed as a Significant Non-Complier because of low chlorine residuals in samples taken late last year. RUBA Activities for the Coming Quarter: RUBA staff has made contact with the new City Clerk and will continue to offer assistance with sustainable indicators identified on an existing work plan, or other local government issues. -3t- July — August — September 2007 1 Quarter FY08 - RUBA Report Elim Activity Report Community Overview Lead RUBA Staff: Melissa Taylor, Nome Regional Office 2003 Population: 302 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 Fe AP 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 On September 10-11, 2007 Nome RUBA staff traveled to Elim to complete a RUBA assessment of management capacity. Most elements considered essential for utility management are in place yet several essential indicators were found to be deficient. While a budget was adopted, as a fiscal plan it lacks the level of detail necessary for good financial management. Financial reports that track budget performance are not created, further limiting the policy making body's ability to make good management decisions. The utility also has past due IRS debt, however, efforts to resolve this issue with a payment plan are under way, and the utility is compliant with current filing and deposit requirements. July — August — September 2007 I“Quarter F¥08 - RUBA Report Capacity Indicators Finances Yes No &] Allrevenue and expenses for the utility are listed in the utility budget. KK] The utility has adopted a balanced realistic budget. I Monthly financial reports are prepared and submitted to the policy making body. X The utility is current in paying all water/wastewater electric bills. & The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. KX) The utility is receiving revenues (user fees or other sources) sufficient to cover ___ operating expenses. SREBRSn) 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 City of Elim adopted a FY08 budget appropriations ordinance on June 21, 2007. However, the budget is a three page summary that does not include a detailed account of expenditures. For example, the utility budget states that it will break even by generating $99,800 in revenue and expending the same amount. There is no detail on what the $99,800 has been budgeted for (i.e. Chemicals, equipment, wages, and vehicle maintenance). While the water and sewer utility appears to balance on paper, it is not realistic due to the fact that it is incomplete. The Council does not receive monthly financial reports to monitor the budget and compare budget projections with what is really happening. The City purchased approximately 18,000 gallons of heating fuel at $2.88 per gallon for a total fuel bill of $51,849. The fuel was purchased by Norton Sound Economic Development Corporation (NSEDC) on the City of Elim's behalf and they have offered alternative payment options that include $4,320 monthly payments or deduction from the City's 2007 Community Benefit Share. Due to lack of financial information, RUBA staff was unable to determine whether or not the utility was generating enough revenues to sustain the utility. RUBA and City staff determined that during the months of June-August 2007 the utility had an 83% residential customer collection rate. The operator provides a detailed written report that is provided to the Council monthly. The City Clerk, who manages City affairs, provides verbal reports to the Council. 34. July — August — September 2007 1 Quarter FY08 - RUBA Report TT Kh eet BI RUBA Report Accounting Systems Essential Indicators Yes No ® The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. An accounts receivable system is in place which track customers and reports past due accounts and amounts. An accounts payable system is in place. The payroll system correctly calculates payroll and keeps records A cash receipt system is in place that records incoming money and what it was for. The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators A chart of accounts is used that identifies categories in a reasonable, usable manner. Monthly bank reconciliation’s have been completed for all utility accounts. The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. XKRK XR 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 customer payments and then entered into the computer and on customer cards. The bookkeeper does a wonderful job of entering information into the system. However, the information is not classified by department. The City of Elim recently revised and follows their collection policy; billing is conducted consistently and efficiently. Tax Problems Essential Indicators Yes No ® The utility has a system to accurately calculate, track, and report payroll tax liabilities. ® The utility is current on filing tax reports. Xl The utility is current on making tax deposits. & If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The City of Elim is current with State and Federal deposits and reporting. However, they owe the IRS payroll taxes for three quarters in 2005. The Council has approved a plan to repay the IRS with annual State funding allocations. Once a FY06 certified financial statement is completed and sent to the Juneau DCCED office, the City is eligible to receive Community Energy Assistance Program (CEAP) and Federal Payment in Lieu of Taxes (PILT) funds. Combined, the City will reduce its IRS liability significantly. A repayment agreement will need to be signed for the remaining amount. July — August — September 2007 I Quarter FY08 - RUBA Report Personnel System Essential Indicators Yes & Sustainab X X Ww & & No The utility has a posted workers compensation insurance policy in effect. le Indicators The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. The utility provides training opportunities to staff as needed and available. Personnel System Comments: The City of Elim is currently insured by the Alaska Municipal League, Joint Insurance Association (AML-JIA) and in good standing for FY2008. A resolution was adopted by the Council stating that the City will pay $2,274.54 a month through April 2008 for the policy. 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 job descriptions as the current ones are outdated. Personnel files consist of all necessary information except for a letter of acceptance. Organizational Management Essential Indicators Yes x XXX 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 m anager. The utility has an adequately trained book keeper. The utility has an adequately trained operator(s ). The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators & The utility has adopted an organizational chart that reflects the current structure. & X The policy making body meets as required. The utility complies with the open meeting act for all meetings. - 36- July — August — September 2007 1Quarter FY08 - RUBA Report i) P. P. Organizational Manage ment 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. The City Clerk is responsible for utility management. With 20 years of experience, the Clerk is familiar with every aspect of the Water/Sewer utility. The Bookkeeper has successfully completed Utility Financial Management and a QuickBooks class sponsored by the RUBA Program. An organizational chart was not located. Operation of Utility Essential Indicators Yes No & The utility operator(s) are actively working towards necessary certification. & The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators & (© The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. KXRXRXR WN 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 2006 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 has offered 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 essential or sustainable management capacity indicators that are not being met. July — August — September 2007 1“Quarter FY08 - RUBA Report i gs P Emmonak Activity Report Community Overview Lead RUBA Staff: Paul Chimiugak, Bethel Regional Office 2003 Population: 740 Region: Yukon-Kuskokwim Delta Local Governments: 2" Class City od The City of Emmonak owns and operates the piped “3 ~~ water/sewer system. The City also owns and operates Pe yt AO the washeteria/sauna. A new washeteria construction is in the last stage of completion. The City council is the policy making body for this utility. Water is derived from the Yukon River and is treated. Piped water and sewer services are provided to most of the residents of Emmonak. Currently, there are 206 connected to this system. Out of those connected, there are 185 residential homes and 23 businesses in service. The next water/sewer Village Safe Water (VSW) funding will connect six new Emmonak tribal housing units. RUBA Activity This Reporting Period RUBA staff maintained contact with the Emmonak Manager who stated that they have numerous upcoming projects which were funded. The main project is the street light and road renovations to the airport; the washeteria renovation was also funded. The only project that was not funded was the water and sewer pipe system to the airport terminal. There was a reported septic system failure in the community which resulted in exposed raw sewage and the need for inoculations to protect public health. The City Manager reported that the problem was not a result of the City cutting off water and sewer service, but that certain customer's systems froze last winter when power was disconnected by the Alaska Village Electric Cooperative. AVEC discontinued electrical service to the homes because the customers were three years behind in payment. -39- July — August — September 2007 1“Quarter FY08 - RUBA Report Capacity Indicators Finances Yes No All revenue and expenses for the utility are listed in the utility budget. The utility has adopted a balanced realistic budget. Monthly financial reports are prepared and submitted to the policy making body. The utility is current in paying all water/wastewater electric bills. The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. _. 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. xX &® RRR XRRXX Finances Comments: The City budget has been completed and copies were sent to the Juneau office and also the Anchorage office for review. The Administrator is now working on the FY06 CFS. Accounting Systems Essential Indicators Yes No ® The utility has adopted a collection policy and actively follows it. x The utility bills customers on a regular basis. X An accounts receivable system is in place which track customers and reports past due accounts and amounts. & An accounts payable sys tem is in place. The payroll system correctly calculates payroll and keeps records ® A cash receipt system is in place that records incoming money and what it was for. ® The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators X A chart of accounts is used that identifies categories in a reasonable, usable manner. & Monthly bank reconciliation’s have been completed for all utility accounts. x The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. - 40 - July — August — September 2007 “Quarter FY08 - RUBA Report SS te RBA Report, Accounting System Comments: The bank reconciliation for the gaming account is completed. Some department's reconciliations have to start as far back as 2005. The general fund bank reconciliations are almost complete, according to the bookkeeper. Tax Problems Essential Indicators Yes No & The utility has a system to accurately calculate, track, and report payroll tax liabilities. Kl The utility is current on filing tax reports. &® The utility is current on making tax deposits. KX) If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The City has not had any problem with IRS to date. Personnel System Essential Indicators Yes No &X) The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators & The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. x The utility has adequate written job descriptions for all positions. X The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. & The utility has an adequate written hiring process. XX] The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. & The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. X The utility provides training opportunities to staff as needed and available. Personnel System Comments: The bookkeeper is making sure that the I-9's will be completed for all employees. They have insurance through AML/JIA which expires July 1, 2008. -41- July — August — September 2007 1 Quarter FY08 - 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 book keeper. The utility has an adequately trained operator(s ). Xl The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators &® The utility has adopted an organizational chart that reflects the current structure. & The policy making body meets as required. X The utility complies with the open meeting act for all meetings. HRRRR Organizational Management Comments: John Moses, of the City's Lands Department stated that the Council has yet to review the proposed utility ordinance which would replace the current ordinance. He is hopeful that the new City Council will review the draft ordinance and adopt it. Operation of Utility Essential Indicators Yes No & 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. KKH XR July — August — September 2007 “Quarter FY08 - RUBA Report eee RA REPON Operation of Utility Comments: After the lead operator resigned in April 2007, a new operator was hired who is Level I certified; the Administrator would like to hire a Level II operator. RUBA staff recommended he call Yukon Kuskokwim Health Corporation/O ffice of Environmental Health (YKHC/OEH) for assistance in certifying an operator at Level II. RUBA Activities for the Coming Quarter: RUBA staff will continue to request and monitor monthly finance reports and assist when requested. July — August — September 2007 1“ Quarter FYQ8 - RUBA Report False Pass Activity Report Community Overview Lead RUBA Staff: John Nickels, Anchorage Office 2003 Population: 69 Region: Aleutians Local Government: 2™ Class City located within the Aleutians East Borough. ed City provided services include piped water, electric, Vee, xO refuse collection, landfill, public safety office, volunteer fire, dock, airport (state contract), roads, community hall, youth center, library, boat haul-out, pet registration, driver licenses, and voter registration. The City also maintains the buildings housing the post office, library, and clinic. Construction of a small boat harbor began in 2006. 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. Almost 80% of the homes are fully plumbed. Many residents have individual septic tanks; 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 Contact with the community this quarter was via email and telephone. RUBA staff met with a contractor in July working for the community on a site survey required for a community septic system that is being designed. RUBA contacted the City Clerk in August with a reminder to submit the necessary documents to receive Community Energy Assistance Program funds. The City Clerk had some questions about the program which were answered. A copy of the FY08 budget and a budget vs. actual financial report through September has been provided to RUBA. The community continues to meet all essential indicators. July — August — September 2007 1 Quarter FY08 - RUBA Report Capacity Indicators Finances Essential Indicators Yes XK XX Xi No All revenue and expenses for the utility are listed in the utility budget. The utility has adopted a balanced realistic budget. Monthly financial reports are prepared and submitted to the policy making body. The utility is current in paying all water/wastewater electric bills. The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators & & Xl The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. YTD revenues are at a level equal to or above those budgeted. YTD expenditures are at a level equal to or below those budgeted. A monthly manager’s report is prepared. Budget amendments are completed and adopted as necessary. Finances Comments: A budget for FY08 was adopted July 28, 2007. A small anticipated deficit will be absorbed with savings, which are adequate to also cover most unexpected emergency expenses. The Clerk produces a QuickBooks Profit and Loss Budget vs. Actual Report for use by the Council members each month. Copies of current bank statements showing account activity and balances for the City's checking and savings accounts are also provided regularly to council members. Accounting Systems Essential Indicators The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. An accounts receivable system is in place which track customers and reports past due accounts and amounts. An accounts payable sys tem is in place. The payroll system correctly calculates payroll and keeps records A cash receipt system is in place that records incoming money and what it was for. The Utility has a cash disbursement system that records how money was spent. Yes No &X & x x Xl Xl x Sustainab| & x x le 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. - 46- July — August — September 2007 1 Quarter FY08 - RUBA Report ttc FV08 - RUBA Report Accounting Systems Comments: All essential accounting systems are in place using QuickBooks Pro accounting software. The utility continues to actively enforce the collection policy with success. The utility bills monthly and all customer service charges are combined on one invoice to avoid confusion. Tax Problems Essential Indicators Yes No &) The utility has a system to accurately calculate, track, and report payroll tax liabilities. & The utility is current on filing tax reports. & The utility is current on making tax deposits. & If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The City remains current on all tax reports and deposits. Personnel System Essential Indicators Yes No & 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. &) 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: 1-9, Job Application and Letter of Acceptance. i} The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. & The utility provides training opportunities to staff as needed and available. Personnel System Comments: The City carries workers’ compensation insurance with AML/JIA and has received the Gold Pan award for an excellent safety record. Insurance is current for the period July 1, 2007 through July 1, 2008. Personnel folders for all employees are in place. The City Clerk attended QuickBooks training in December 2006 and is interested in further training. -47- July — August — September 2007 1‘Quarter FY08 - RUBA Report Organizational Management Essential Indicators Yes No i The entity that owns the utility is known and the entity that will operate the utility is set. The policy making body is active in policy making of the utility. The policy making body enforces utility policy. The utility has an adequately trained m anager. The utility has an adequately trained book keeper. The utility has an adequately trained operator‘(s ). The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators x The utility has adopted an organizational chart that reflects the current structure. ® The policy making body meets as required. & The utility complies with the open meeting act for all meetings. XXXXew Organizational Management Comments: The local governing body is very active in amending, adopting, and enforcing utility policy. They meet as required and the meetings are noticed properly. The utility operator, bookkeeper, and manager are all qualified individuals. 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 the loss of Municipal Revenue Sharing and lower levels of locally generated tax revenues, largely a result of the decline in the salmon fishery. Operation of Utility Essential Indicators Yes No X The utility operator(s) are actively working towards necessary certification. ® The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. & The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. X HHORRX W Operation of Utility Comments: The City expects the current operator to resign and is looking for a new water operator. The regional RMW makes frequent trips to the area and assists operators that are working to become certified. The utility operator presents a monthly meeting verbally or written at each council meeting. - 48 - July — August — September 2007 “Quarter FY08 - RUBA Report —— EE UDA Keport RUBA Activities For The Coming Quarter RUBA staff will continue to offer assistance with sustainable indicators, as well as any other local government issues. A trip to the community is expected to occur sometime in the next quarter to introduce new RUBA staff and to review RUBA assessment indicators. -49- July — August — September 2007 1 Quarter FY08 - RUBA Report Gambell Activity Report Community Overview Lead RUBA Staff: Josie Bahnke, Nome Office 2003 Population: 648 Region: Bering Straits Local Government: 2" Class City od Water is derived from a shallow aquifer at the base of Sivuokuk Mountain, and is treated and stored in three v storage tanks. One hundred twenty one homes and 13 public and commercial buildings including the school and washeteria are now connected to the piped water and sewer system. Forty three homes in the original townsite still haul water and honeybuckets. A feasibility study is complete. A new water source and additional water storage tanks are needed to ensure no shortages will occur. Significant infrastructure growth is proposed over the next 5 years. The first phase of improvements upgraded the existing infrastructure, including water treatment, lift station upgrades, and a 2.2 million gallon water storage tank. The second phase will be to develop a well field 2 miles outside of town at the south end of Troutman Lake, and construct a summer only raw water transmission line. The third phase will be water and sewer service to Old Town (approximately 43 service connections). Ultimately, there will be 174 residential services. Pea, AP RUBA Activity This Reporting Period At the request of the community and the Village Safe Water Engineer Debra Addie, Nome and Anchorage RUBA staff made a site visit to Gambell on August 13, 2007. Activities for the day included a tour of the water treatment plant and pump house with the Utility Clerk and Water Operator. The purpose of the tour was to familiarize utility management staff with inventory, critical spare part needs, and a basic understanding of facility operations. In addition to the tour, Nome RUBA staff assisted the Utility Clerk with the compilation of a monthly financial report and calculation of collection rates for the months of May-July. For residential customers, the collection rate is at 70% for the last three months. Follow-up items for the trip include working with Mayor Debbie Apatiki on FY08 utility budget amendments, and dedication of FY 08 Community Energy Assistance Program funds to procure bag filters and gauges for the water treatment plant. In partnership with Village Safe Water, the City made lift station upgrades this summer and will construct a large water storage tank next year. July — August — September 2007 1“Quarter FY08 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No x All revenue and expenses for the utility are listed in the utility budget. Ri The utility has adopted a balanced realistic budget. Ri Monthly financial reports are prepared and submitted to the policy making body. Ri The utility is current in paying all water/wastewater electric bills. X The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. Xi The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators 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. Ri 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 Council adopted FY 08 budget in June 2007. Monthly financial reports are being prepared by the new Utility Clerk and submitted to the Council. This quarter, RUBA staff worked with the Utility Clerk on improving these reports. A rate increase implemented by the City Council in late February 2007 has greatly improved the utility's overall financial picture. Nome RUBA staff recommended amending budget items for FY 08 that include water plant supplies/chemicals and equipment maintenance and repairs. Both line items were over expended in FY 2007. July 7 August _ September 2007 tial Quarter FYO8 - RUBA Report Accounting Systems Essential Indicators Yes No The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. An accounts receivable system is in place which track customers and reports past due accounts and amounts. An accounts payable sys tem 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. XRKRX WX e XX Accounting System Comments: The utility has an adopted collection policy, and follows it consistently. The utility and City clerk use QuickBooks Pro for payroll, accounts receivable, and billing. A NEBS cash receipt system is utilized for accounts receivable and Economic Register for tracking expenditures. Tax Problems Essential Indicators FAS Yes No Xl The utility has a system to accurately calculate, track, and report payroll tax liabilities. & The utility is current on filing tax reports. XK) The utility is current on making tax deposits. ® If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The City of Gambell is in good standing with the Internal Revenue Service (IRS) this quarter. The City utilized their FY 2008 Community Energy Assistance Program funds to pay off a past due balance to the IRS. July — August — September 2007 1Quarter FY08 - RUBA Report Personnel System Essential Indicators Yes No & 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. & 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. XK) 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. Personnel System Comments: Gambell Water and Sewer is insured by the Alaska Municipal League-Joint Insurance Association (AML-JIA) for fiscal year 2008 and is in good standing. The Council paid a large portion of the insurance bill with their Community Energy Assistance Program grant. Organizational Management Essential Indicators Yes No & The entity that owns the utility is known and the entity that will operate the utility is set. 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 m anager. The utility has an adequately trained book keeper. The utility has an adequately trained operator(s ). The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators X The utility has adopted an organizational chart that reflects the current structure. & The policy making body meets as required. X The utility complies with the open meeting act for all meetings. RHNMH Organizational Management Comments: The City of Gambell is the owner of the utility. Decision making authority and enforcement of utility policy has alternated from the Utility Board to the City Council. At this time, the Mayor provides supervision to all City and utility staff. July — August — September 2007 1“ Quarter FY08 - RUBA Report —_— ETS = RUBA Report Operation of Utility Essential Indicators Yes No ® The utility operator(s) are actively working towards necessary certification. : & The utility has a preventative maintenance plan developed for the existing sanitation facilities. ee Lente nestnenenrenneeeennrnntneennennnee S ustainable Indicators XI The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. The utility has a safety manual and holds safety meetings. & Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). XX] The utility is not on the Significant Non-Compliance (SNC) list. O The utility maintains an inventory control list. The utility maintains a critical spare parts list. XRORRN Operation of Utility Comments: Village Safe Water (VSW), through contract with CRW Engineers, is moving ahead with a $340,000 water treatment upgrade and design for a new $3.4 million water tank. The 2006 Consumer Confidence Report was completed with the assistance of Norton Sound Health Corporation. RUBA Activities For The Coming Quarter Nome RUBA staff will travel to Gambell this quarter to provide on-site assistance to work with City and utility staff and verify financial status. To the extent possible, RUBA staff will continue participation with the Technical Assistance Providers Group via teleconference. Staff from Village Safe Water, Alaska Native Tribal Health Consortium and Norton Sound Health Corporation will begin the pilot study for the new water treatment plant. Both the City and Utility Clerk will attend a two day payroll tax workshop co-sponsored by RUBA on October 16 and 17, 2007 in Nome. July — August — September 2007 1“ Quarter FY08 - RUBA Report Golovin Activity Report Community Overview Lead RUBA Staff: Josie Bahnke, Nome Office 2003 Population: 146 Region: Bering Straits Local Government: 2" Class City ~ 7 4: The City of Golovin is responsible for the management of the water supply and storage system, as well as N water treatment plant and washeteria. In conjunction with Alaska Native Tribal Health Consortium (ANTHC), they are in the process of constructing a community-wide piped water and sewer system. Water is pumped from Chinik Creek, treated, and stored in three heated water storage tanks. A new 1.2 million-gallon water tank has been built, new washeteria is under construction, and a water/sewer project is underway. Thirteen homes, the clinic, the school, and a church were hooked up downtown to water and sewer. Since then, 13 more residential connections are receiving water and sewer service bringing the total to 26. . 2a, 0m : RUBA Activity This Reporting Period At the request of the City Council, Nome RUBA staff traveled to Golovin on July 24, 2007 to work with the new Utility Clerk on financial record keeping, monthly financial reports, review of FYO8 budget, and RUBA essential indicators. On the evening of July 24, Nome staff attended a City Council meeting to present a RUBA program update, review of draft fuel sales and municipal dock ordinances, set fuel rates for the City-owned electric utility and retail sales, and the introduction of the FY 08 budget. The ordinances were drafted by RUBA at the request of the Council and will be introduced for first reading at the next regular meeting. This year, the City participated in the Norton Sound Economic Development Corporation (NSEDC) Consolidated Bulk Fuel Purchasing Program. The program was developed in 2006 by NSEDC to address high fuel costs in the region. After factoring projected monthly sales, operation and maintenance costs of current services, and reserves necessary for FY09, the retail price of heating fuel and gas decreased overall by 12% from FY07. Electric costs will remain at 54 cents per kilowatt-hour, heating fuel dropped from $4.42 to $4.00 a gallon, and $4.90 to $4.25 a gallon for gasoline. Nome RUBA staff also provided assistance with personnel issues, outstanding accounts receivable, lease agreements, and ordinance codification. A follow-up trip to Golovin in September is being planned. July — August — September 2007 I“ Quarter FY08 - RUBA Report ‘P P. Capacity Indicators Essential Indicators All revenue and expenses for the utility are listed in the utility budget. The utility has adopted a balanced realis tic 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. Finances Yes No &X X Xx x X Xx The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators ® X The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. & YTD revenues are at a level equal to or above those budgeted. & YTD expenditures are at a level equal to or below those budgeted. A monthly manager’s report is prepared. &] Budget amendments are completed and adopted as necessary. Finances Comments: The FY08 budget was adopted in July 2007. Financial management of the new piped water and se wer system is the responsibility of the Utility Clerk. This position has been held by four people in the last year. Nome RUBA staff traveled to Golovin this quarter to provide on-site assistance to the new clerk and train her with monthly financial reports. Accounting Systems Essential Indicators The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. An accounts receivable system is in place which track customers and reports past due accounts and amounts. An accounts payable sys tem 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. le 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. Yes No Xx & x & & X x Sustainab| & &X Xx The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. ta xe July — August — September 2007 1 Quarter FY08 - RUBA Report TT RUD A Report Accounting System Comments: The Utility Clerk bills water and sewer customers once a month and water customers when their bill reaches $200.00. Utility staff utilizes both a manual (NEBS) and computerized system (QuickBooks Pro). Tax Problems Essential Indicators Yes No & The utility has a system to accurately calculate, track, and report payroll tax liabilities. & The utility is current on filing tax reports. X The utility is current on making tax deposits. & If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The City of Golovin has prioritized regular tax deposits and filing tax reports to avoid penalties and interest. The IRS has deemed them in compliance at this time. Personnel System Essential Indicators Yes No bx The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators 7 &) 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. Rw kX O & July — August — September 2007 1“Quarter FY08 - RUBA Report Personnel System Comments: The City of Golovin has workers' compensation insurance through AML/JIA for 2008 and is in good standing. This quarter, Nome RUBA provided the City Clerk with numerous job descriptions that were adopted by the City Council. The entire Council participates and conducts evaluations of City employees. However, this does not include probationary employees. Organizational Management Essential Indicators Yes No X The entity that owns the utility is known and the entity that will operate the utility is set. The policy making body is active in policy making of the utility. The policy making body enforces utility policy. The utility has an adequately trained m anager. The utility has an adequately trained book keeper. The utility has an adequately trained operator(s ). The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators &® The utility has adopted an organizational chart that reflects the current structure. &® The policy making body meets as required. X The utility complies with the open meeting act for all meetings. XXXRNW Organizational Management Comments: The City Council is the policy making body for the utility. Presently, the utility does not have a manager. The duties of the manager are being performed by the Utility Clerk. At the advice of RUBA staff, organizational structure changes were made in the fall of 2006 and it has enabled the City to run the new water and sewer and electric utilities more efficiently. This included transferring the Utility Clerk position to the Golovin Power Utility which has created a combined billing process for the electric and water/sewer enterprise. At the request of the Council, RUBA staff is working on a joint utility ordinance that includes the formation of a utility board. This quarter, new primary and secondary operators were hired. The Primary Operator has many years experience and is mentoring the Secondary Operator, who has delivered water in the past. - 60 - July — August — September 2007 1“ Quarter FY08 - RUBA Report ‘ PB: eee i ll cpr Operation of Utility Essential Indicators Yes No & The utility operator(s) are actively working towards necessary certification. £ ® The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). & The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. X XHORRK WX Operation of Utility Comments: Wayne Henry is certified in Level 1, Water Distribution. Level 2 certification will be necessary for the new system. With the assistance of Norton Sound Health Corporation, the City completed the Golovin Consumer Confidence Report this quarter. Compliance issues are being addressed by the Remote Maintenance Worker. RUBA Activities For The Coming Quarter RUBA staff will schedule travel to Golovin in November to provide on-site training and assistance to the new Utility Clerk and Council. Tasks include working with the Council on a joint electric and water/sewer utility ordinance. -61- July — August — September 2007 “Quarter FY08 - RUBA Report Gulkana Activity Report Community Overview Lead RUBA Staff: Jimmy Smith, Anchorage Office 2003 Population: 101 Region: Copper River Local Government: Tribal Council od Water is currently derived from a well, is treated and stored in a 100,000-gal. tank. Due to iron and magnesium levels, new infiltration galleries on the Gulkana River and water treatment improvements are still under construction. A piped water and se wer system serves most homes. A community septic tank treats wastewater. A number of residences also use individual wells and septic tanks. A master plan has been completed to examine connection of all homes to a new system. Permafrost and high water tables are problematic in this region. The Public Health Service constructed a laundromat in 1976, but it is not functioning; a washeteria is needed in the community. RUBA Activity This Reporting Period On August 29, 2007, RUBA staff traveled to Gulkana and met with Lamonica 'Bry' Claw, Administrator for Gulkana Village Council, to complete a RUBA assessment of management capacity indicators. The staff provided the documentation supporting the conclusions of the assessment report. Specific documents used in this report are available with the RUBA staff for review. Gulkana meets all essential management indicators at this time. A contractor was hired to train utility staff with QuickBooks 2007 in late July of 2007. July — August — September 2007 1“Quarter FY08 - RUBA Report Capacity Indicators Finances Essential Indicators Yes Xk XX w All revenue and expenses for the utility are listed in the utility budget. The utility has adopted a balanced realistic budget. Monthly financial reports are prepared and submitted to the policy making body. The utility is current in paying all water/wastewater electric bills. The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainab &® & = le Indicators The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. YTD revenues are at a level equal to or above those budgeted. YTD expenditures are at a level equal to or below those budgeted. A monthly manager’s report is prepared. Budget amendments are completed and adopted as necessary. Finances Comments: The Tribal staff has been providing monthly financial reports to RUBA staff for review. The Tribal staff uses QuickBooks 2007 for all the utility finances including the operations of the Tribal Council. The water and sewer utility budget report has revenue and expense line items listed with the remaining balance of the approved budget. The Tribe subsidizes the utility expense from their housing rental income. The Tribal Administrator provides a verbal report to the Village Council members at their regular scheduled meetings. RUBA staff recommended that the Tribal Administrator have a written report of utility activities for Council members on a monthly basis. Accounting Systems Essential Indicators Yes HHXX ew 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 sys tem is in place. The payroll system correctly calculates payroll and keeps records A cash receipt system is in place that records incoming money and what it was for. The Utility has a cash disbursement system that records how money was spent. Ss S a Rime tainab| le 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. - 64- July — August — September 2007 1 Quarter F¥08 - RUBA Report _— ee Report Accounting System Comments: The Village Council hired a QuickBooks consultant to train the staff on the 2007 QuickBooks software in late July. The training was held for several days in Gulkana by the QuickBooks consultant. The Village Council has a procurement policy in place for supplies, equipment and contracts. Purchases over $500 must be approved by the Tribal Administrator and Accountant. Purchases less than $500 are approved by the Tribal Administrator. Tax Problems Essential Indicators Yes No 4] The utility has a system to accurately calculate, track, and report payroll tax liabilities. & The utility is current on filing tax reports. & The utility is current on making tax deposits. & If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The Internal Revenue Service (IRS) has indicated the Village Council is in compliance with tax filing and deposit requirements and there are no federal tax liens against the Village Council. Personnel System Essential Indicators 4 Yes No Z &® 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. Kl 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. & 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. ' nn mn ' July — August — September 2007 1“ Quarter FY08 - RUBA Report a Personnel System Comments: The Village Council has workers' compensation insurance through Umialik Insurance Company that will expire in April 2008. The Village Council has a personnel policy in place including job descriptions for all employees working for the Council. Ifa position becomes vacant, the position is advertised and qualified candidates are interviewed for the position. Once an employee has been selected for a position, they are on a 90 day probationary period. Organizational Management Essential Indicators Yes No & The entity that owns the utility is known and the entity that will operate the utility is set. X The policy making body is active in policy making of the utility. &X The policy making body enforces utility policy. & The utility has an adequately trained m anager. X The utility has an adequately trained book keeper. 4 The utility has an adequately trained operator(s ). ® The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators & The utility has adopted an organizational chart that reflects the current structure. X The policy making body meets as required. x The utility complies with the open meeting act for all meetings. Organizational Management Comments: The Village Council adopted a water and sewer ordinance in 2000 which is followed by utility staff and customers. The Tribal Administrator reports to the Village Council President on the activities of the utility on a regular basis. The Tribal Administrator and Bookkeeper have been in their positions for several years; these long term employees have meant stability for the utility. - 66- July — August — September 2007 1“Quarter FY08 - RUBA Report ere lk RUBA Report Operation of Utility Essential Indicators Yes No X The utility operator(s) are actively working towards necessary certification. RX The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators ® The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. X The utility has a safety manual and holds safety meetings. & Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. & The utility is operating at the level of service that was proposed. &® The operator provides status reports to the manager on a routine basis. K) The utility has completed and distributed its Community Confidence Report (CCR). Kl The utility is not on the Significant Non-Compliance (SNC) list. oO The utility maintains an inventory control list. & The utility maintains a critical spare parts list. Operation of Utility Comments: The operator provides verbal reports to the Administrator of the activities of the utility. The operators for the utility are Operator in Training (OIT) certified in water distribution and water treatment and the certification expires in December 2008. The Administrator is concerned that a new lift station that is in place will create additional operating expense for the utility. RUBA Activities For The Coming Quarter RUBA assistance will be provided to the community if requested. RUBA staff will provide assistance via phone, facsimile and email to the community. July — August — September 2007 “Quarter FY08 - RUBA Report ) Pp Hooper Bay Activity Report Community Overview Lead RUBA Staff: Ken Berlin, Bethel Office 2003 Population: 1,133 Region: Yukon-Kuskokwim Delta Local Governments: 2" Class City od 4; The City of Hooper Bay operates multiple watering >» Pecan, ne AP points within the village and a solid waste and waste-water lagoon. The residents self-haul their own garbage and honey buckets. Hooper Bay Utility Adv isory Board advises the City Council on utility operations and management. The new school's water and waste water is connected to the new water treatment plant. The watering point at the Old Town-site is connected for processed water from the new water treatment plant. The Hooper Bay Traditional Council is pursuing a Solid- Waste Management Grant to upgrade the existing lagoon. In FY 08 over 75 homes will be connected to the water and sewer lines. The water and sewer project is planned to be completed in 2010. RUBA Activity This Reporting Period This quarter, RUBA received copies of the monthly financial reports, user fee collection report, tax deposit payment confirmations, employers Federal 941 reports, and the Alaska Dept. of labor ESC report. Hooper Bay continues to meet all essential management capacity indicators. Administration and finance staff are stable and competent. The old washeteria caught on fire and was damaged in September. Work on the new washeteria was accelerated and the grand opening was on September 19, 2007. It was attended by State DEC and EPA. - 69- July — August — September 2007 1“Quarter FY08 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No &® All revenue and expenses for the utility are listed in the utility budget. & The utility has adopted a balanced realistic budget. Xl Monthly financial reports are prepared and submitted to the policy making body. X The utility is current in paying all water/wastewater electric bills. X The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. Xl The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators QR The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. Xi 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. R Budget amendments are completed and adopted as necessary. Finances Comments: All indicators continue to be met. FY 2008 budget is on file. Monthly financial reports and copies of statements show they are in compliance and meet the indicators. Washeteria operating costs continue to be subsized when necessary through user fees and the Yukon Fuel lease funds. 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 sys tem 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. HH WH S a ke Accounting System Comments: All of the above indicators are reviewed through reports received from the community on a monthly and quarterly basis and are on file in the Bethel RUBA office. -70- July — August — September 2007 1“ Quarter FY08 - RUBA Report eee ne A Report Tax Problems Essential Indicators Yes No Xi The utility has a system to accurately calculate, track, and report payroll tax liabilities. ® The utility is current on filing tax reports. Xi The utility is current on making tax deposits. ® If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The community continues to be in compliance with tax requirements. The City uses electronic deposits for payroll tax deposits and copies of deposit slips are on file in the RUBA Bethel office. Personnel System Essential Indicators Yes No & The utility has a posted workers com pensation insurance policy in effect. Sustainable Indicators QR 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. kl 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. Xi The utility provides training opportunities to staff as needed and available. Personnel System Comments: RUBA has on file, copies of documentation for the above indicators. Workers' compensation is checked to make sure coverage is still in place every quarter. Qualified long term staff in the City administration is a benefit to this organization. =i July — August — September 2007 1 Quarter FY08 - RUBA Report Organizational Management Essential Indicators Yes X XRRRMR 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 m anager. The utility has an adequately trained book keeper. 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. Sustaina & Xi & ble Indicators The utility has adopted an organizational chart that reflects the current structure. The policy making body meets as required. The utility complies with the open meeting act for all meetings. Organizational Management Comments: All indicators continue to be met. The City continues to make sure the operators are current with certification. Operation of Utility Essential Indicators Yes & w No The utility operator(s) are actively working towards necessary certification. The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators x XRXRXRR WW The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. Operation of Utility Comments: All indicators continue to be met. RUBA will continue to recommend to the City and operators to inform the CE2 consultants to include the inventory control and critical spare parts lists in the operations and maintenance manual for the new facility as well as the safety manual. -72- July — August — September 2007 1 Quarter FY08 - RUBA Report a ater P08 ~ RUBA Report RUBA Activities For The Coming Quarter RUBA staff will continue monitoring monthly financial and sanitation user fee reports to ensure that the utility continues to meet the 91% special grant condition. July — August — September 2007 Quarter FY08 - RUBA Report Kasigluk Activity Report Community Overview Lead RUBA Staff: Ken Berlin, Bethel Office 2003 Population: 534 Region: Yukon-Kuskokwim Delta Local Governments: Unorganized ed “A. ay Treated well water is hauled from the washeteria in Nea, AP the old village site of Kasigluk. The new village area known as Akula Heights uses the school well. Honey buckets are dumped into sewage bins and hauled to the lagoon. Homes are not plumbed, and residents are reliant on the washeteria for bathing and laundry. Major infrastructure improvements have been funded, including two new wells, water treatment plant, and a 100,000-gal. storage tank, a washeteria and new sewage lagoon. Electricity is provided by AVEC. AVEC installed three wind generators in 2006. RUBA Activity This Reporting Period RUBA staff received finance reports current to August 2007. The administration and finance staff stabilized during the last three quarters and the problems that nearly shut down the water and sewer project were addressed and corrected. July — August — September 2007 1‘Quarter FY08 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No X All revenue and expenses for the utility are listed in the utility budget. x The utility has adopted a balanced realistic budget. X Monthly financial reports are prepared and submitted to the policy making body. ® The utility is current in paying all water/wastewater electric bills. & The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. & The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators & The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. & YTD revenues are at a level equal to or above those budgeted. & YTD expenditures are at a level equal to or below those budgeted. &® A monthly manager’s report is prepared. & Budget amendments are completed and adopted as necessary. Finances Comments: The 2007 budget was approved and passed in March 2007. Monthly financial reports are current to August 2007 and are produced with QuickBooks Pro and converted into Excel format. Monthly manager's reports are done verbally, recommended written. Sewer haul and trash haul is subsidized by gaming. The billing system for water and sewer was set up and implemented in August 2005. A manual accounts receivable and payable system is being used. Accounting Systems Essential Indicators Yes No 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 sys tem 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. XRXKX Wh Ok Accounting System Comments: The Tribe has a utility ordinance adopted by resolution on Aug. 14, 2003 and amended in July 2005. Enforcement of the ordinance started in August 2005. A billing system is set up with individual household accounts. July — August — September 2007 1“Quarter FY08 - RUBA Report a er a ~ RBA Report Tax Problems Essential Indicators Yes No & The utility has a system to accurately calculate, track, and report payroll tax liabilities. X The utility is current on filing tax reports. KX The utility is current on making tax deposits. & If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The quarterly reports were filed but not all the payroll tax liabilities were paid according to the IRS. A payment plan was negotiated between IRS and Kasigluk Traditional Council in March 2007. Personnel System Essential Indicators Yes No px 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. 4} 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. sg X The utility has an adequate written hiring process. 7 &X The utility has personnel folders on every employee that contain at least: 1-9, Job Application and Letter of Acceptance. & The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. XK The utility provides training opportunities to staff as needed and available. Personnel System Comments: The utility is insured through Alaska National Insurance Company effective from 10/1/06 to 10/1/2007. -77- July — August — September 2007 IQuarter F¥08 - RUBA Report Organizational Management Essential Indicators Yes Xl 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. XHHXXXee The utility has an adequately trained book keeper. 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. Sustaina ble Indicators The utility has adopted an organizational chart that reflects the current structure. ba & & The policy making body meets as required. The utility complies with the open meeting act for all meetings. Organizational Management Comments: Anew Bookkeeper was hired in March 2007 who has experience in accounting (QuickBooks Pro). The Administrator, who is also the utility manager, also has QB experience and is competent. Kasig luk Traditional and Elders Council adopted the utility ordinance by resolution and enforcement started in August 2005. Operation of Utility Essential Indicators Yes No & The utility operator(s) are actively working towards necessary certification. x The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators X The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. &X The utility has a safety manual and holds safety meetings. & Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. & The utility is operating at the level of service that was proposed. & The operator provides status reports to the manager on a routine basis. x The utility has completed and distributed its Community Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. X The utility maintains an inventory control list. X The utility maintains a critical spare parts list. July — August — September 2007 Quarter FY08 - RUBA Report a wetter BS ~ RUBA Report Operation of Utility Comments: RUBA staff has requested copies of OIT certificates. RUBA Activities For The Coming Quarter RUBA will request status updates on the payments to IRS on unpaid payroll tax liabilities and payroll tax deposits; copies of current finance reports, and copies of operator certificates. -79- July — August — September 2007 I“Quarter FY08 - RUBA Report Larsen Bay Activity Report Community Overview Lead RUBA Staff: Tammy Helms, Anchorage Office 2003 Population: 97 Region: Kodiak Island Local Government: 2™ Class City located within the Kodiak Island Borough, Tribal Council od Meee, et POM 7 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 Village Safe Water. RUBA Activity This Reporting Period RUBA staff makes weekly contact with City of Larsen Bay staff assisting with QuickBooks questions and other issues; a new City Clerk was hired in June. The community has had an ongoing fuel crisis over the last year. The City sells fuel locally but has been very lax in collecting for the sale of fuel. This has made it difficult to make payments on two large fuel loans with Rural Alaska Fuel Services (RAFS) and the Alaska Energy Authority (AEA). FY08 Community Energy Assistance Program funds were used to pay off the RAFS loan but the City is currently behind with loan payments to AEA. Recently, the City acquired another loan from RAFS to purchase 45,000 gallons of #2 diesel, 10,000 gallons of gasoline and 8,000 gallons #1 heating fuel. Unless the City enforces its billings and collection policy, RUBA staff foresees the City being in crisis again by spring. RUBA stressed the importance of enforcing collections and helped draft a fuel sales ordinance. The ordinance has been introduced to the Council, but not adopted. In September the Billing Clerk unexpectedly left town and never returned. The Council will be meeting soon to discuss what action should be taken. The City Clerk is on task with election material timeline chores. The City Council has two 3-year seats and one 1-year seat open. -81- July — August — September 2007 1Quarter FY08 - RUBA Report i) P. P Capacity Indicators Finances Essential Indicators YesNo &® 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. X The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. XX] The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators &] The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. & YTD revenues are at a level equal to or above those budgeted. & YTD expenditures are at a level equal to or below those budgeted. & A monthly manager’s report is prepared. & Budget amendments are completed and adopted as necessary. Finances Comments: RUBA staff assisted the City Clerk with preparing the FY08 budget which was adopted by the Council. Recently, the City acquired another loan from RAFS to purchase more fuel. They ordered 45,000 gal. of #2 diesel, 10,000 gal. of gas and 8,000 gal. of #1 fuel. The water and sewer revenues are not sufficient to cover operating expenses. Manager/ operator reports are given verbally when requested from the Council. Accounting Systems Essential Indicators Yes No & 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 sys tem 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. XHHXX WW Sustainable Indicators & A chart of accounts is used that identifies categories in a reasonable, usable manner. & Monthly bank reconciliation’s have been completed for all utility accounts. X The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. - §2- July — August — September 2007 1“Quarter FY08 - RUBA Report et AU A Report Accounting Comments: Although the City has an adopted collection policy, it has not been actively or consistently enforcing it. A new City Clerk was hired in June. 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. Tax Problems Essential Indicators Yes No X The utility has a system to accurately calculate, track, and report payroll tax liabilities. x The utility is current on filing tax reports. & The utility is current on making tax deposits. XX Iifthere are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: RUBA staff is currently working to verify tax compliance status with the IRS. Personnel System Essential Indicators Yes No ® The utility has a posted workers com pensation 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. XJ The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. XK) The utility provides training opportunities to staff as needed and available. July — August — September 2007 1 Quarter FY08 - RUBA Report Personnel System Comments: The City of Larsen Bay has a posted workers' compensation insurance policy in effect from 7/1/07 to 7/1/08 with AML/JIA. The City's current hiring process is historical and is not written. Job notices are posted with the job title and description for 10 days. Interested applicants apply at the City office. There is currently no probationary period for employees. Training opportunities to staff are provided as funds allow or opportunities by other sponsors come available. Organizational Management Essential Indicators Yes No | The entity that owns the utility is known and the entity that will operate the utility is set. XX The policy making body is active in policy making of the utility. & The policy making body enforces utility policy. The utility has an adequately trained m anager. The utility has an adequately trained book keeper. The utility has an adequately trained operator(s ). The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators The utility has adopted an organizational chart that reflects the current structure. X The policy making body meets as required. ® The utility complies with the open meeting act for all meetings. XRR Organizational Management Comments: The current utility operator is trained but has not passed the OIT test. The new City Clerk has bookkeeping experience. The City Council presently does not consistently enforce the collection policy. Efforts to once again enforce the policy are being pursued. -84- July — August — September 2007 !“Quarter FY08 - RUBA Report ——— eet B08 ~ RUBA Report Operation of Utility Essential Indicators Yes & & No The utility operator(s) are actively working towards necessary certification. The utility has a preventative maintenance plan developed for the existing sanitation facilities. ensues Sustainable Indicators ps4 X & & & & w The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. Operation of Utility Comments: The 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 sy stem but has not passed the OIT test. Historically, 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. The City is currently on the SNC list for treatment technique violations and monitoring violations for Stage one and SWTR. The utility operator and Council attempt to keep needed critical spare parts on hand. RUBA Activities For The Coming Quarter RUBA staff will travel to Larsen Bay in December to provide assistance with quarterly reports and training for the new City Clerk. ‘ oo uw ' July — August — September 2007 “Quarter F¥08 - RUBA Report i) P. 14 Marshall Activity Report Community Overview Lead RUBA Staff: Jimmy Smith, Anchorage Office 2003 Population: 370 Region: Lower Yukon Local Government: 2" Class City od Monee, oe ow Water is derived from two wells, which were new in 1991. Approximately 70% of the City (60 homes) are served by a piped circulating water and sewer system and have full plumbing. The remainder haul water and use honeybuckets. The community plans to expand the system to the remaining unserved 19 homes and the fish processing plant, and to replace the older part of the system installed in the late 1970s. A new landfill and access road were completed in 1997, and the City has begun a refuse collection service. RUBA Activity This Reporting Period RUBA staff has been providing assistance to the community via email, facsimile and phone. In July the Marshall Traditional Council and Ohogamiut Traditional Council wrote a commitment letter in support of using the tribe’s Indian Community Development Block Grant for the completion of City of Marshall's community hall. The City staff has been working with their attorney to settle a lawsuit that was filed by one of the contractors for non payment for work on the community hall. Hopefully the City can settle on the lawsuit with the contractor. RUBA staff provided assistance to the City staff to work closely with the Internal Revenue Service to settle on a levy that was filed against the individual not the City of Marshall. -87- July — August — September 2007 1 Quarter FY08 - RUBA Report Capacity Indicators Finances Essential Indicators YesNo X HX & 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 & & w The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. YTD revenues are at a level equal to or above those budgeted. YTD expenditures are at a level equal to or below those budgeted. A monthly manager’s report is prepared. Budget amendments are completed and adopted as necessary. Finances Comments: The City staff continues to provide financial reports to RUBA staff for review. The staff continues to use QuickBooks Pro for all financial activities of the City such as billing customers, payroll, paying vendors and reconciling bank accounts. Accounting Systems Essential Indicators Yes No XRKRR Wee 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 sys tem 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. tain HeR? able 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. - 88- July — August — September 2007 1“ Quarter F¥Q8 - RUBA Report a hw et BS RUBA Report Accounting Comments: The staff continues to use the QuickBooks Pro software program for all accounting functions of the City. The staff has become very proficient in using the software and have gone to several other communities to train in how to set up and use the QuickBooks software. RUBA staff trained the City staff how to back up the Quick Books files and removed old programs and cleaned up one of the computers. Tax Problems Essential Indicators Yes No & The utility has a system to accurately calculate, track, and report payroll tax liabilities. Xl The utility is current on filing tax reports. &X The utility is current on making tax deposits. & If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: Per the Internal Revenue Service (IRS), the City is in compliance with the IRS for filing tax reports and are current in tax deposits. Personnel System Essential Indicators Yes No & The utili 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: 1-9, 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. - 89- July — August — September 2007 1‘Quarter FY08 - RUBA Report EE EE SnD eT Personnel System Comments: The City has workers compensation coverage through Alaska Municipal League Insurance that will expire July 1, 2008. The City staff has been following the personnel policy for all substitute and temporary hires. Organizational Management Essential Indicators Yes No The entity that owns the utility is known and the entity that will operate the utility is set. The policy making body is active in policy making of the utility. The policy making body enforces utility policy. The utility has an adequately trained m anager. The utility has an adequately trained book keeper. The utility has an adequately trained operator(s ). The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators X The utility has adopted an organizational chart that reflects the current structure. & The policy making body meets as required. & The utility complies with the open meeting act for all meetings. NXNMNH Organizational Management Comments: The City Council may have to work with their attorney to address the potential vendor payments that will have to be paid along with the IRS. Although these are not water sewer related, this may have an adverse impact on all the City finances. The utility operator for the City is a council member, and was hired as a superintendent by a contracting firm, but still resides in the community. - 90- July — August ~ September 2007 1“ Quarter FY08 - RUBA Report ee ROA Report Operation of Utility Essential Indicators Yes No Xl The utility operator(s) are actively working towards necessary certification. & The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators xX The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. &] The utility has a safety manual and holds safety meetings. &®) Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. XK The utility is operating at the level of service that was proposed. & The operator provides status reports to the manager on a routine basis. & The utility has completed and distributed its Community Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. & The utility maintains an inventory control list. &] The utility maintains a critical spare parts list. Operation of Utility Comments: The utility created a preventative maintenance plan for their operation. A copy of the plan was submitted to the RUBA staff by the mayor. RUBA Activities For The Coming Quarter RUBA staff will continue to provide assistance via facsimile, phone and email to the City staff. -91- July — August — September 2007 1“ Quarter FY08 - RUBA Report Nanwalek Activity Report Community Overview Lead RUBA Staff: Tammy Helms, Anchorage Office 2003 Population: 222 Region: Kenai Peninsula Local Governments: Tribal od 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 RUBA staff has recently been notified that the current Administrator for the Nanwalek IRA Tribe resigned. The Administrator's last day was be Sept. 7, 2007 but the Council requested her to continue to stay on another two weeks. The position is paid through Chugachmiut; currently there is no replacement applying for the position. In June the Nanwalek IRA Council contracted with the Alaska Native Tribal Health Consortium, (ANTHC) Statewide Utility Association's billing program. The community has had problems with regular billing due to staff turnover and has a low collection rate. There are approximately 40-45 water connections that are billed through the program. In speaking with the billing program they stated that the billings have gone out timely each month but only 5-10 customers have been paying. The Tribe is unable to disconnect those customers who are not paying because when the distribution system was installed curb stops where not included in the project. - 93 - July — August — September 2007 1'“Quarter FY08 - RUBA Report Capacity Indicators Finances Essential Indicators Yes ® KRM X No All revenue and expenses for the utility are listed in the utility budget. The utility has adopted a balanced realistic budget. Monthly financial reports are prepared and submitted to the policy making body. The utility is current in paying all water/wastewater electric bills. The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustain: XN &X able Indicators The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. YTD revenues are at a level equal to or above those budgeted. YTD expenditures are at a level equal to or below those budgeted. A monthly manager’s report is prepared. Budget amendments are completed and adopted as necessary. Finances Comments: Nanwalek IRA Tribal Council receives Indian Health Service funds by-passed through Chugachmiut. The Tribal Bookkeeper provided a profit and loss budget vs. actual report that identified sufficient funds to cover operating expenses for the utility. The monthly financial report submitted to the Council consists of a QuickBooks Budget vs. Actual report, along with a Profit and Loss by Class statement. Accounting Systems Essential Indicators Yes HHXK 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 sys tem is in place. The payroll system correctly calculates payroll and keeps records A cash receipt system is in place that records incoming money and what it was for. The Utility has a cash disbursement system that records how money was spent. Ss NIKI stainable Indicators A chart of accounts is used that identifies categories in a reasonable, usable manner. Monthly bank reconciliation’s have been completed for all utility accounts. The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. -94- July — August — September 2007 “Quarter F¥08 - RUBA Report Accounting System Comments: The Tribe utilizes a variety of different computer programs (QuickBooks and Excel) for accounts receivable and accounts payable, depending on the service type. The water/sewer service is billed through Excel. The expenses are tracked and reported through QuickBooks. It is recommended that the Tribe use QuickBooks for all their utilities to keep the revenues and expenses in one program. RUBA staff provided on-site training to the Billing Clerk to bill through QuickBooks to allow easier and less time consuming billing procedures. In June, the Council adopted a billing and collection ordinance. Tax Problems Essential Indicators Yes No &X O 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: All payroll is calculated, tracked and payroll tax liabilities reports are done, through QuickBooks. The Tribe signed a tax release form; the IRS responded that the Tribe is currently compliant with all requirements. Personnel System Essential Indicators Yes No &X The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators X The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. &® The utility has adequate written job descriptions for all positions. i} The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. &X The utility has an adequate written hiring process. ® The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. X The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. X The utility provides training opportunities to staff as needed and available. Personnel System Comments: The Nanwalek IRA Tribal Council has a posted workers compensation insurance policy with Alaska National Insurance. The Tribe reports that they follow their written personnel policy closely, and all employees are provided a copy. The Billing Clerk reviewed portions of the manual with RUBA staff. The probation period for new hire is 90 days. Training opportunities to staff are provided as funds allow or opportunities by other sponsors come available. The water plant operator has a current Operator in Training (OIT) certificate. -95- July — August — September 2007 1Quarter FY08 - RUBA Report Organizational Management Essential Indicators Yes HRKRKRW 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 m anager. The utility has an adequately trained book keeper. 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. Sustain: X Xl Xx able Indicators The utility has adopted an organizational chart that reflects the current structure. The policy making body meets as required. The utility complies with the open meeting act for all meetings. Organizational Management Comments: The Council meets monthly, is active in policymaking, and in enforcing policy. The bookkeeper was the prior utility operator; although he is not currently certified, he helps the current operator when necessary. This experience helps him in being knowledgeable and well versed in the utility in all aspects, from billing to the obstacles the utility faces. The Tribe has an Operator In Training (OIT) trained utility operator; however, the system is rated by the State of Alaska as a level two plant. Due to the hour requirements that a level one or two operator must fulfill to obtain that certification, Nanwalek's operator cannot currently meet the requirements. The Council has reviewed and revised the necessary ordinances that allow the utility to run productively. Operation of Utility Essential Indicators Yes & & No The utility operator(s) are actively working towards necessary certification. The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators & HOXRR Ww ® X 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 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. - 96- July — August — September 2007 1“Quarter FY08 - RUBA Report —— attr BUS - RUBA Report Operation of Utility Comments: The Nanwalek IRA Tribal Council has applied for and received their Regulatory Commission of Alaska Provisional Certification. A preventative maintenance plan was developed and adopted for the sanitation facility. The Utility Operator reports verbally to the Tribal Administrator when there isa problem, he can foresee one, or to report the system is running well. A copy of the CCR was completed with the help of Alaska Native Tribal Health Consortium. The utility operator and Council try to keep needed critical spare parts on hand. RUBA Activities For The Coming Quarter The Council members appear to be focused on training the Council as a whole and staff to allow efficient and effective continuity of the administration and community. RUBA staff will work with the Tribe to provide the requested training and information. -97- July — August — September 2007 I“Quarter FY08 - RUBA Report ee SS en ed - 98 - July — August — September 2007 1“ Quarter FY08 - RUBA Report Newhalen Activity Report Community Overview Lead RUBA Staff: Jimmy Smith, Anchorage Office 2003 Population: 183 Region: Alaska Peninsula Local Governments: 2" Class City od [Sag Water is derived from a well and is treated at the washeteria. A piped system serves all 40 homes. A piped sewage system serves 10 homes and facilities and the remaining 30 use individual septic systems. Most residences are fully plumbed. The City provides septic pumping services. The Village Council operates a washeteria. Newhalen has requested funding to relocate the landfill; it is nearing capacity and there is heavy tourist use during the summer months. The school recycles aluminum and newspapers. The Iliamna Newhalen Nondalton (INN) Electric Cooperative owns a diesel plant in Newhalen and 50 miles of distribution line to connect the three communities. The Tazimina Hydroelectric Project has recently been completed, and powers Iliamna, Newhalen and Nondalton. RUBA Activity This Quarter The City staff continues to provide Excel formatted financial reports to RUBA staff for review. The staff also provides City Council meeting minutes each month for RUBA review. It is important that the staff and council members follow the adopted budget for FY08. -99- July — August — September 2007 ‘Quarter FY08 - RUBA Report ‘P ‘P Capacity Indicators Finances Essential Indicators Yes No All revenue and expenses for the utility are listed in the utility budget. XX The utility has adopted a balanced realistic budget. Monthly financial reports are prepared and submitted to the policy making body. The utility is current in paying all water/wastewater electric bills. k XN 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. 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. I Budget amendments are completed and adopted as necessary. Xe Finances Comments: The adopted FY08 budget projects more expenses than revenues. The shortfall in revenues will have to be subsidized with general funds or other sources for FY08. RUBA recommends a water and sewer rate increase. 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 sys tem 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. Xl Monthly bank reconciliation’s have been completed for all utility accounts. XX] The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. XXX WH & - 100- July — August — September 2007 1“ Quarter FY08 - RUBA Report i} P. ttc FYN8 ~ RUBA Report Accounting System Comments: The City staff should look into purchasing an accounting software for the community. This will eliminate the Excel entries made to the Excel spreadsheet and will save the staff a lot of their time. Once an accounting system has been purchased, staff will need to be trained. Newhalen will be nominated to receive QuickBooks Pro installation and training through the RUBA sponsored program. Tax Problems Essential Indicators Yes No X The utility has a system to accurately calculate, track, and report payroll tax liabilities. ® The utility is current on filing tax reports. X The utility is current on making tax deposits. X If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: Another Authorization to Request Federal Tax Information needs to be signed by the Mayor to make sure the City is in compliance with the Internal Revenue Service (IRS) reporting requirements. The last quarter report from the IRS indicated the community is in compliance with all reporting to the IRS. No changes have been made to the essential indicators from the last quarter. Personnel System oS Essential Indicators Yes No X The utili Sustainable Indicators & The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. ® The utility has adequate written job descriptions for all positions. Kl 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. has a posted workers compensation insurance polic in effect. Personnel System Comments: The City renewed their workers compensation with Alaska Municipal League Joint Insurance Association, Inc. which will expire on July 1, 2008. - 101 - July — August — September 2007 1‘Quarter F¥08 - 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 m anager. The utility has an adequately trained book keeper. 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. RX The utility complies with the open meeting act for all meetings. HXRRRRN Organizational Management Comments: The Council meeting minutes are provided to the RUBA staff each month. The City Council is active with enforcing the water and sewer ordinance. The Council has taken some of the customers to small claims court and others are making arrangements for a repayment plan to the utility for past due invoices. Operation of Utility Essential Indicators Yes No & The utility operator(s) are actively working towards necessary certification. The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators &] The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. The utility has a safety manual and holds safety meetings. & Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Consumer Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. &) The utility maintains a critical spare parts list. HRKY Operation of Utility Comments: The current operator is working on getting his certification for the City. - 102- July — August — September 2007 1 Quarter FY08 - RUBA Report jj eee RUBA Activities For The Coming Quarter RUBA staff will provide assistance via, phone, facsimile and email to the community. - 103 - July — August — September 2007 1 Quarter FY08 - RUBA Report Nightmute Activity Report Community Overview Lead RUBA Staff: Paul Chimiugak Bethel Office 2003 Population: 228 Region: Yukon-Kuskokwim Delta Local Governments: 2" Class City ed v PR ot OP ies The City of Nightmute provides a small water facility, which is the central watering point for residents to haul their own water. The City also provides water and sewer haul service. The city utility system has 37 residential units, 5 commercial/residential and 6 commercial units. The school has its own sewage lagoon. A washeteria is not available. The Nightmute power plant was acquired by AVEC in March 1998. Electricity is provided by AVEC. RUBA Activity This Quarter Bethel RUBA staff traveled to Nightmute on September 25, 2007 to conduct a RUBA assessment of management capacity for the City. There has been a big improvement in the administration of the City with the hire of the current Bookkeeper who works well with the Administrator. The City has sent all required FY08 financial documents to Juneau and has been sending monthly financial reports to the Bethel RUBA office. The City is the only fuel distributor in the community, selling gasoline and heating fuel. The Administrator expects gasoline to run out first this winter, and will limit heating fuel sales when there is five thousand gallons left for the community. The Administrator is hopeful that the current supply will last until spring but residents may have to depend on surrounding communities for fuel. - 105 - July — August — September 2007 1“ Quarter FY08 - RUBA Report ‘} P: ‘P. Capacity Indicators Finances Essential Indicators YesNo ® All revenue and expenses for the utility are listed in the utility budget. &®) The utility has adopted a balanced realistic budget. x Monthly financial reports are prepared and submitted to the policy making body. &® The utility is current in paying all water/wastewater electric bills. The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. ® The utility is receiving revenues (user fees or other sources) sufficient to cover operating _ expenses. Sustainable Indicators XX The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. YTD revenues are at a level equal to or above those budgeted. YTD expenditures are at a level equal to or below those budgeted. A monthly manager’s report is prepared. Budget amendments are completed and adopted as necessary. XXX Finances Comments: The City has sent all required financial documents to Juneau required to receive the Community Energy Assistance Program (CEAP) monies. Monthly financial reports are received in the Bethel office. Accounting Systems Essential Indicators Yes No &X The utility has adopted a collection policy and actively follows it. ® The utility bills customers on a regular basis. X An accounts receivable system is in place which tracks customers and reports past due accounts and amounts. An accounts payable sys tem 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 a Xe - 106- July — August — September 2007 1“ Quarter F¥08 - RUBA Report i} P. OEM tc YG - ROBA Report Accounting System Comments: The collection policy is included in the utility service agreement that the customer signs. Collection is due in 30 days and interest is assessed on delinquent accounts. The City has biodegradable plastic liners for the customers that are using honey buckets and dumping the sewage into the lagoon. A NEBS cash receipt system is used to record revenues from customers. The payment is recorded in the customer records and then transferred to the computer. A sample purchase procedure system was offered to the City for their review and adoption. Tax Problems Essential Indicators Yes No X The utility has a system to accurately calculate, track, and report payroll tax liabilities. & The utility is current on filing tax reports. X The utility is current on making tax deposits. XK] Ifthere are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The City is current with payroll tax liability payments and quarterly reports. However, they have received a notice letter for the tax year 2004, in which the statements do not match the tax returns. The bookkeeper will review the tax information and make the corrections. Personnel System Essential Indicators Yes No & The utili has a posted workers compensation insurance polic 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. Xl) The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. The utility provides training opportunities to staff as needed and available. Personnel System Comments: The City has worker's compensation insurance through AML/JIA. The insurance covers the period July 01, 2007 to July 01, 2008. - 107 - July — August — September 2007 1 Quarter FY08 - RUBA Report Organizational Management Essential Indicators Yes No & The entity that owns the utility is known and the entity that will operate the utility is set. & The policy making body is active in policy making of the utility. | The policy making body enforces utility policy. &X The utility has an adequately trained m anager. &X The utility has an adequately trained book keeper. XK The utility has an adequately trained operator(s ). X The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators X The utility has adopted an organizational chart that reflects the current structure. ® The policy making body meets as required. X The utility complies with the open meeting act for all meetings. Organizational Management Comments: The City sent the water operator for certification two or three times but he did not pass the tests. He has decided to resign from his position. The City is attempting to find, hire and train a new water operator. Operation of Utility Essential Indicators Yes No XX The utility operator(s) are actively working towards necessary certification. X= The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. &] The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Consumer Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. &] The utility maintains an inventory control list. KK] The utility maintains a critical spare parts list. X KXRRK w 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 anyone to conduct water sampling at $25.00 for conducting the sampling. The clinic is using a piped water system to fill their water holding tank. They are averaging about six sewage hauls a month for which they are charged a fee; the City has not charged any fee for water usage, however. The utility account has sufficient funds for emergency purposes. The City also has funds available to order spare parts for customers when needed by them. - 108 - July — August — September 2007 1 Quarter FY08 - RUBA Report ee a ROB A Report RUBA Activities For The Coming Quarter RUBA staff will request a preventative maintenance plan for the facility and equipment and is sending the utility a tax release form for signature. RUBA will continue requesting monthly financial reports. - 109 - July — August — September 2007 I“Quarter F¥08 - RUBA Report Nikolaevsk Activity Report Community Overview Lead RUBA Staff: Jimmy Smith, Anchorage Office 2003 Population: 304 Region: Kenai Peninsula Local Governments: Non-Profit od Nea et POO A new water treatment building, water mains and household water service lines were installed in 1997. The majority of homes are fully plumbed - 49 residents, the school and community-wide fire hydrants are connected to the water system. Eighty percent of households use septic tanks for sewage disposal. Two subdivisions (Nahodka and Kluchevaya) are located outside of the main hub of Nikolaevsk. They have an independent water system that taps two local springs; they do not want to be connected to the new water sy stem. The community has asked for funding to remedy failing individual septic tanks. A Kenai Peninsula Borough refuse transfer site is located in Anchor Point, at mile 157 Sterling Hwy. RUBA Activity This Quarter RUBA staff has been receiving financial reports from the utility manager. RUBA staff traveled to the community in late July 2007 and reviewed the RUBA quarterly report with the utility manager. The stability and professionalism of the staff contributes to them continuing to meet all RUBA essential indicators. -1it- July — August — September 2007 1 Quarter FY08 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No & All revenue and expenses for the utility are listed in the utility budget. ® The utility has adopted a balanced realistic budget. & Monthly financial reports are prepared and submitted to the policy making body. X The utility is current in paying all water/wastewater electric bills. & The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. Xx The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. ine Sustainable Indicators &® The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. X YTD revenues are at a level equal to or above those budgeted. x YTD expenditures are at a level equal to or below those budgeted. &X A monthly manager’s report is prepared. & Budget amendments are completed and adopted as necessary. Finances Comments: The utility continues to provide financial reports to the RUBA staff for review each month. Utility staff continue to use QuickBooks 2004 software for all financial record keeping. They will be invited to attend a RUBA sponsored QuickBooks training when it is scheduled in Anchorage. Accounting Systems Essential Indicators Yes No X The utility has adopted a collection policy and actively follows it. X The utility bills customers on a regular basis. x An accounts receivable system is in place which tracks customers and reports past due accounts and amounts. A) An accounts payable sys tem 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. 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. July — August — September 2007 1“Quarter F¥08 - RUBA Report t) P. P. Accounting System Comments: Utility staff is very knowledgeable in using the QuickBooks 2004 software program. It is used for all aspects of accounts receivable, accounts payable, and payroll. Monthly financial reports are provided to the RUBA staff each month for review. Tax Problems Essential Indicators Yes No X The utility has a system to accurately calculate, track, and report payroll tax liabilities. DX The utility is current on filing tax reports. ® The utility is current on making tax deposits. R If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The utility manager signed an Authorization to Request Federal Tax Information on J uly 17, 2007. The form was forwarded to the Internal Revenue Service (IRS) by the RUBA staff. The IRS indicated the community has not filed 941 reports for the first quarter of 2007 or filed a 990 report for the last quarter of 2006. The community is working with the IRS to resolve the reports for the community. Personnel System Essential Indicators Yes No &® The utility has a posted workers com Sustainable Indicators X The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. ® The utility has adequate written job descriptions for all positions. ® The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. & The utility has an adequate written hiring process. 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: The Utility Manager has attended all six of the RUBA utility management series courses; the Utility Operator has completed all but one. The Utility Board supports their staff in receiving utility management training. July — August — September 2007 1“ Quarter FY08 - RUBA Report Organizational Management Essential Indicators Yes No The entity that owns the utility is known and the entity that will operate the utility is set. The policy making body is active in policy making of the utility. The policy making body enforces utility policy. The utility has an adequately trained m anager. The utility has an adequately trained book keeper. 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. & The utility complies with the open meeting act for all meetings. KRXRKR Organizational Management Comments: The policy making body has supported the utility staff in receiving training from the RUBA utility management series of courses. The policy making body and utility staff have enforced the utility ordinance for nonpayment of services or assisted customers in making arrangements to become current with their utility bills. Operation of Utility Essential Indicators Yes No &X The utility operator(s) are actively working towards necessary certification. ® The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its 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. & HRXKKR WW Operation of Utility Comments: The utility is well operated by the staff, and improvements continue to be made. During the construction season, safety meetings are held at the utility office. Staff members have attended several RUBA sponsored utility management courses. The system's hardware issues were addressed, and the system has been meeting the reporting requirements. -114- July — August — September 2007 1 Quarter FY08 - RUBA Report tet B08 ~ RUBA Report RUBA Activities For The Coming Quarter RUBA staff will continue to provide assistance to the community via on-site visits, phone and facsimile. July — August — September 2007 Quarter FY08 - RUBA Report Nondalton Activity Report Community Overview Lead RUBA Staff: Jimmy Smith, Anchorage Office 2003 Population: 203 Region: Alaska Peninsula Local Governments: 2" Class City ed The City of Nondalton operates the piped water and sewer “ee wes ; : i ; Pena, ot AP system and provides a central watering point for residents to haul their own water. The City Council is the policy making body for the utility. An infiltration gallery at Six-Mile Lake supplies the community with treated water. There is 88,000 gallons of storage capacity. Seventy 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 was completed in 2005. Construction of the Iliamna-Nondalton road and bridge is pending. The Iliamna Newhalen Nondalton (INN) Electric Cooperative owns a diesel plant in Newhalen and 50 miles of distribution line to connect Iliamna, Newhalen and Nondalton. The Tazimina Hydroelectric Project has recently been completed, and powers the three communities. RUBA Activity This Reporting Period The City staff is using the QuickBooks Pro software for the community. The QuickBooks consultant, contracted by the RUBA program, completed the last of three trips to the community to provide on-site training. The consultant reported that the staff is getting proficient with the software and is requesting advanced training, which is not a portion of this contract. pais July — August — September 2007 1 Quarter FY08 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No X All revenue and expenses for the utility are listed in the utility budget. & The utility has adopted a balanced realistic budget. X Monthly financial reports are prepared and submitted to the policy making body. & The utility is current in paying all water/wastewater electric bills. &X The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. Xi The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators &] The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. YTD revenues are at a level equal to or above those budgeted. YTD expenditures are at a level equal to or below those budgeted. A monthly manager’s report is prepared. & Budget amendments are completed and adopted as necessary. XK Finances Comments: The City staff has entered all the financial data into the QuickBooks software program with the help of the QuickBooks consultant. This has saved a lot of the staff's time with the help of using the QuickBooks software program. The staff is learning and using Quick Books software program but would like additional training in learning all the aspects of the QuickBooks software program. - 118- July — August — September 2007 1“ Quarter FY08 - RUBA Report ttc FV08 ~ 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. 4] An accounts receivable system is in place which track customers and reports past due accounts and amounts. & An accounts payable system is in place. &X The payroll system correctly calculates payroll and keeps records & A cash receipt system is in place that records incoming money and what it was for. K) The utility has a cash disbursement system that records how money was spent. Sustainable Indicators RX A chart of accounts is used that identifies categories in a reasonable, usable manner. RX Monthly bank reconciliation’s have been completed for all utility accounts. XK) The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. Accounting Systems Comments: The City staff is becoming proficient enough in using the QuickBooks software program that they no longer maintain a manual accounting system. QuickBooks Pro is now used for all accounts payable, accounts receivable and payroll. The staff would like to attend an advanced QuickBooks training so they can learn more of the features of the QuickBooks software program. RUBA does not contract for advanced training, however will assist the City in finding a source that they may attend. 2 Tax Problems Essential Indicators Yes No & The utility has a system to accurately calculate, track, and report payroll tax liabilities. id The utility is current on filing tax reports. ®) The utility is current on making tax deposits. XK If there are any past tax liabilities, a Tepayment agreement has been signed and repayments are current. Tax Problems Comments: The City has remained current in making payments to the Internal Revenue Service (IRS) with their repayment agreement. The City made their last payment June 30, 2007 to the Department of Labor (DOL). The City needs to continue to be current with all payroll taxes to the IRS and DOL. -119- July — August — September 2007 I“Quarter FY08 - RUBA Report ) s P: Personnel System Essential Indicators Yes No Xx The utility has a posted workers compensation insurance policy in effect. Sustainable Indica tors & 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. & &W Personnel System Comments: The City's workers' compensation insurance was renewed and will now expire on May 23, 2008. Organizational Management Essential Indicators Yes No The entity that owns the utility is known and the entity that will operate the utility is set. The policy making body is active in policy making of the utility. The policy making body enforces utility policy. The utility has an adequately trained manager. The utility has an adequately trained bookkeeper. The utility has an adequately trained operator(s). The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators Ri 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. HRRXRRRN Organizational Management Comments: The policy making body meets regularly each month. The policy making body is very supportive of getting the staff trained in using the QuickBooks Pro software for the City. The staff enforces all utility ordinances adopted by the Council. - 120- July — August — September 2007 '“Quarter FY08 - RUBA Report — ttt B08 ~ RUBA Report Operation of Utility Essential Indicators Yes No & The utility operator(s) are actively working towards necessary certification. . ® The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators ® The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. & The utility has a safety manual and holds safety meetings. X Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Consumer Confidence Report (CCR). The utility is on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. RRR Operation of Utility Comments: Both the operator and the administrator attend all possible training. The progress the City made in meeting RUBA essential indicators and maintaining that level of proficiency is a tribute to their professional growth. RUBA Activities For The Coming Quarter RUBA staff plans to provide assistance via on-site visits, phone, facsimile and email. July — August — September 2007 1“ Quarter FY08 - RUBA Report Old Harbor Activity Report Community Overview Lead RUBA Staff: Tammy Helms, Anchorage Office 2003 Population: 200 Region: Kodiak Island Local Governments: 2" Class City ed Water is supplied by a dammed creek and an infiltration “Ae gallery, is treated and stored in a tank, then distributed via Pen, tO pipes. A community septic tank treats piped sewage. All residences are connected to the public water and sewer system and have complete plumbing. Refuse collection services are not available, although the City has requested funding for dumpsters and vehicles to do so. The landfill was recently relocated. They are interested in developing hydroelectricity. Electricity is provided by AVEC. There is one school located in the community, attended by 62 students. Local hospitals or health clinics include Old Harbor Health Clinic (286-2205). Old Harbor is classified as an isolated village, and it is found in EMS Region 2G in the Kodiak Region. Emergency Services have coastal and air access. Emergency service is provided by volunteers and a health aide. Auxiliary health care is provided by Old Harbor Village Response Team (286-2293/2270). RUBA Activity This Reporting Period This quarter, RUBA staff assisted the City Treasurer/Administrator in passing a fuel sales ordinance by the City Council. The City has recently tightened down on customers with past due balances. Some of those customers questioned the City's authority to not sell fuel to them because they had past due amounts. The City Council felt it would clarify issues if they had a fuel ordinance in place that outlined clearly the procedures and policy concerning the fuel sale operations. The City Clerk is on task with election material timeline chores. The City Council has three 3-year seats open. The City is scheduled to top off their fuel tanks with 6,000 gallons of #1 fuel, 9,000 gallons of #2 fuel, and 4,000 gal of gas on October 1, 2007. July — August — September 2007 1 Quarter FY08 - RUBA Report Capacity Indicators Finances Essential Indicators Yes XK XeXRM & No All revenue and expenses for the utility are listed in the utility budget. The utility has adopted a balanced realistic budget. Monthly financial reports are prepared and submitted to the policy making body. The utility is current in paying all water/wastewater electric bills. The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators XR ® ® 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: Monthly financial reports are prepared via QuickBooks by the City Treasurer, Russell Fox. The Council is presented a monthly/YTD budget report along with a profit and loss statement. The City currently plans on having fuel delivered the first week of October. This order will top off their holding capacity. In the event of emergency repairs, the City will purchase the parts from the general fund. The water and sewer revenues are not sufficient to cover operating expenses; however, the City subsidizes its water and sewer utility through the fuel sales. Due to the newly adopted collection policy and enforcement of it, revenues have been above those budgeted. The Council has also been diligent in working with the City Clerk and Treasurer, resulting in expenditures that have been below those budgeted. July — August — September 2007 1 Quarter FY08 - RUBA Report TG —— ait FNS 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. X An accounts receivable system is in place which tracks customers and reports past due accounts and amounts. xd An accounts payable system is in place. The payroll system correctly calculates payroll and keeps records R 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 Xi A chart of accounts is used that identifies categories in a reasonable, usable manner. X Monthly bank reconciliation’s have been completed for all utility accounts. &® The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. Accounting Systems Comments: The City has adopted a collection policy. The Council has supported the City Clerk and Treasurer in implementing the policy. The City utilizes QuickBooks for accounts receivable and accounts payable. The City Administrator appears to be knowledgeable and fluent in working with QuickBooks. The City bills customers separately for fuel and water services. Bills are mailed before the 15th of each month. Accounts payable are set aside in a designated location and paid twice a month. Tax Problems Essential Indicators Yes No & The utility has a system to accurately calculate, track, and report payroll tax liabilities. &®) The utility is current on filing tax reports. 4 The utility is current on making tax deposits. XK) If there are any past tax liabilities, a repayment agreement has been signed and repayments are Current. Tax Problems Comments: The City has signed a tax release form. IRS and DOL both report that the City has no deficiencies at this time. July — August — September 2007 I Quarter F¥08 - RUBA Report Personnel System Essential Indicators Yes No ® The utility has a posted workers compensation insurance policy in effect. Sustainable Indica tors & 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. X we ww Personnel System Comments: The City of Old Harbor has a posted workers compensation insurance policy in effect from 7/1/07 to 7/1/08 with AML/JIA. The City's current hiring process is historical and is not written. Job notices are posted with the job title and description for 10 days. Interested applicants apply in the City office. There is currently no probationary period for employees. Evaluations are done on an as needed basis when requested by the employee or Council. Training opportunities to staff are provided as funds allow or opportunities by other sponsors come available such as Kodiak Area Native Association and Village Safe Water. Organizational Management Essential Indicators Yes No The entity that owns the utility is known and the entity that will operate the utility is set. The policy making body is active in policy making of the utility. The policy making body enforces utility policy. The utility has an adequately trained manager. The utility has an adequately trained bookkeeper. The utility has an adequately trained operator(s). The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators The utility has adopted an organizational chart that reflects the current structure. & The policy making body meets as required. x The utility complies with the open meeting act for all meetings. XRRRRRM - 126- July — August — September 2007 “Quarter FY08 - RUBA Report TT Ss attr F08 ~ RUBA Report Organizational Management Comments: The Mayor stated that the Council is active in policy making. The Council has made an active effort to hold regular scheduled monthly meetings. The current utility operator is trained and OIT certified. The community also has a trained employee who will be seeking certification in the near future through © Village Safe Water. The Treasurer is knowledgeable in QuickBooks and has been working with the program since 1996. The Treasurer expressed interest in working with the RUBA program to draft an organization chart that reflects the current structure for Council approval and adoption. The City Clerk has shown the ability to perform the tasks as City Clerk. Operation of Utility Essential Indicators Yes No & The utility operator(s) are actively working towards necessary certification. & The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators & The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. 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). ‘ The utility is on the Significant Non-Compliance (SNC) list. 3 The utility maintains an inventory control list. The utility maintains a critical spare parts list. MXR Operation of Utility Comments: In speaking with the Remote Maintenance Worker for Village Safe Water, Steve Evavold, there is a preventative maintenance plan for the existing system. The current utility operator is trained and OIT certified. The community also has a trained employee who will be seeking certification in the near future through Village Safe Water training programs. Historically, the utility operator reports to the Mayor when there is a problem or he can foresee one. The utility operator and Council attempt to keep needed critical spare parts on hand. RUBA Activities For The Coming Quarter RUBA staff will continue to provide telephone, fax, and e-mail support and assistance as needed. -127- July — August — September 2007 1“ Quarter FY08 - RUBA Report he ener ee EEL FUG - RUBA Keport Platinum Activity Report Community Overview Lead RUBA Staff: Ralph Andrew, Dillingham Office 2003 Population: 39 Region: Dillingham Local Governments: Tribal Council ed Nine private homes reportedly have individual water wells, - septic systems and plumbing. During the summer, untreated water is hauled from approximately twenty watering points. During winter, residents dig holes in the ice to draw water. Homes without water and sewer service utilize honey buckets which are disposed of in seepage pits or the slough. A washeteria was constructed but is not in use. A Water and Sewer and Solid Waste Feasibility Study was funded in FY 2003 to assess water, sewer and solid waste needs including a water storage tank, new water treatment plant, connections & plumbing, sludge disposal site, and landfill. A Village Safe Water project to renovate the water/sewer system is moving forward and construction will start as early as summer 2007. The City operates the electric utility and landfill. Community fuel storage capacity is as follows: Arviq Inc. (67,100 gals.); City power plant (5,600 gals.); Lower Kuskokwim Schools (7,000 gals). RUBA Activity This Reporting Period RUBA traveled to Platinum September 25-26, 2007 to assist village council staff resolve deficient RUBA essential indicators. Consistent efforts by the village staff, with support from RUBA, resulted in resolution of all of the deficient RUBA essential indicators. The village administrator attended a RUBA utility management training course in Dillingham during the quarter. Village staff maintain contact with the Village Safe Water engineer and Remote Maintenance Worker assigned to the community. The community continues preparing for construction of a Coastal Villages Resource Fund-funded fish plant facility, a facility that may produce more local seasonal jobs for Platinum than any other employer in recent history. Concerning city-operated utilities, electric utility collections remain low. RUBA maintains contact with the mayor and city administrator and continues to recommend adoption of an electric ordinance and the FY 2008 budget. Budget adoption will facilitate access to state municipal assistance funding. -129- July — August — September 2007 I“ Quarter F¥08 - RUBA Report gs P P Capacity Indicators Finances Yes No X All revenue and expenses for the utility are listed in the utility budget. & The utility has adopted a balanced realis tic budget. Xi 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 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. XKNw Finances Comments: The Village Council budgets for the water-sewer utility on a calendar year basis. For the current year, 2007, the adopted water-sewer budget lists pertinent revenues and expenditures and is realistic. The Council supports staff in their efforts to enforce the utility ordinance including the policy on collections. Revenues, with support of a modest annual subsidy provided by the Village Council, are sufficient to cover operating expenditures. Staff reports monthly on operational and financial matters to the Village Council and recently improved financial reports with support from RUBA. 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 sys tem 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. XeXXX ww 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. - 130- July — August — September 2007 1“ Quarter FY08 - RUBA Report — ttc E08 - RUBA Report Accounting System Comments: The Village Council acts as the utility board and actively enforces a water-sewer ordinance that includes a collections policy. Staff uses QuickBooks computerized accounting software for utility billing, accounts payable, accounts receivable, and payroll. Staff continues to monitor cash receipts/disbursements and abide by a procurement process that requires approval prior to purchase. RUBA recommends staff reconcile banks accounts monthly. Tax Problems Essential Indicators Yes No &) The utility has a system to accurately calculate, track, and report payroll tax liabilities. ® The utility is current on filing tax reports. &X The utility is current on making tax deposits. & If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: According to the IRS Taxpayer Advocate Service on September 19, 2007, the Village Council is meeting federal tax obligations. Personnel System Essential Indicators Yes No &X The utility has a posted workers com pensation 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. X The utility has an adequate written hiring process. & The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. & The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. & The utility provides training opportunities to staff as needed and available. Personnel System Comments: The Village Council's workers' compensation insurance coverage is current through March 25, 2008. Staff utilizes a comprehensive personnel policy and improved personnel recordkeeping in recent months with improved personnel file documentation. -131- July — August — September 2007 1“ Quarter FY08 - RUBA Report Organizational Management Essential Indicators Yes No The entity that owns the utility is known and the entity that will operate the utility is set. The policy making body is active in policy making of the utility. The policy making body enforces utility policy. The utility has an adequately trained m anager. The utility has an adequately trained book keeper. 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. ® The utility complies with the open meeting act for all meetings. HRXRMRKN Organizational Management Comments: The Village Council actively sets utility policy. A new water operator was hired during the quarter and is seeking training under the direction and support of the prior operator. Administrative staff are trained and effectively maintain contact with agencies including the Remote Maintenance Worker, Village Safe Water, and RUBA. The Council meets regularly and continues to indicate a strong interest in maintaining compliance with sanitation grant conditions. Operation of Utility Essential Indicators Yes No ® The utility operator(s) are actively working towards necessary certification. X The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators ® The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. X The utility has a safety manual and holds safety meetings. & Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. KK] The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. x X XR - 132- July — August — September 2007 1“ Quarter FY08 - RUBA Report Ly g 14 Operation of Utility Comments: A trained water operator is presently overseeing the work of a newly hired water operator. The Remote Maintenance Worker assigned to the community was expected to visit Platinum late in the quarter to assist with installation of new pressure tanks and review of general operations. The utility remains listed” on the Significant Non-Complier (SNC) list for a Surface Water Treatment Rule Unfiltered violation but is actively seeking system improvements that will facilitate compliance. The utility timely submitted its 2006 Consumer Confidence Report. RUBA Activities For The Coming Quarter RUBA will maintain contact with the Village Council as they work to maintain satisfactory RUBA essential indicators. Village Council staff have requested ongoing RUBA assistance including an update to the RUBA Agreement and associated RUBA Workplan, a checklist intended to support capacity development. - 133- July — August — September 2007 1 Quarter FY08 - RUBA Report Scammon Bay Activity Report Community Overview Lead RUBA Staff: Paul Chimiugak, Bethel Office 2003 Population: 509 Region: Yukon-Kuskokwim Delta Local Governments: 2" Class City, od The City operates the piped water and sewer system. “Ae ~ Water is derived from an infiltration gallery located on a ON ot small stream south of the City, is treated and stored ina 100,000-gal. tank. The City Council is the policy making body for the utility. Nearly all homes and the school are connected to the piped water and sewer system and are plumbed. Only a few residents use honeybuckets, typically due to frozen pipe damage. There is no washeteria. A new landfill and access road were recently completed, but funds are needed for equipment. Alaska Village Electric Cooperative (AVEC) and the City are interested in developing a small hydroelectric plant. RUBA Activity This Quarter Bethel staff went to Scammon Bay on September 28, 2007, to conduct a RUBA management assessment of the City. They will be getting a new water treatment plant, the foundation is being readied behind the current treatment plant. After a walk through at the plant, it was discovered that they do have major potential problems with the plant. Pipes are rusting in the plant, it is a dark and dank facility. There are three new homes that need to be connected to the water and sewer system. The old school, which is now an office for the tribe, is being charged a fixed rate for the water/sewer service. - 13 a ' July — August — September 2007 I“Quarter FY08 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No &X All revenue and expenses for the utility are listed in the utility budget. 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. Xi The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. Ri The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustain: & & & able Indicators The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. YTD revenues are at a level equal to or above those budgeted. YTD expenditures are at a level equal to or below those budgeted. A monthly manager’s report is prepared. Budget amendments are completed and adopted as necessary. Finances Comments: The utility has sufficient funds in the account in case of emergencies. The Council reviews the City budget at least once a year. Bethel staff are provided excellently prepared monthly financial reports. The manager's reports are done verbally to the Council and are recorded in the meeting minutes. Accounting Systems Essential Indicators Yes XHEKR Wee 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 sys tem 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 Xm &X 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. - 136- July — August — September 2007 1“ Quarter FY08 - RUBA Report J) P: P. ttc FY08 - RUBA Report Accounting Comments: The collection process is slow at this time, according to the manager, summer and fall season are usually the slowest time for collections. Financial records are kept both manually and through the computer. They have a purchasing system in place, but it has yet to be officially adopted by the Council. Tax Problems Essential Indicators Yes No x The utility has a system to accurately calculate, track, and report payroll tax liabilities. & The utility is current on filing tax reports. X The utility is current on making tax deposits. & If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: There are no tax problems at this time. Personnel System Essential Indicators Yes No $ & The utility has a posted workers compensation insurance policy in effect. 4 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. R The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: 1-9, Job Application and Letter of Acceptance. & The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. X The utility provides training opportunities to staff as needed and available. XX Personnel System Comments: The worker's compensation insurance through AML/JIA runs from July 01, 2007 to July 01, 2008. The administration and the Council have not done any employee evaluations yet. - 137- July — August — September 2007 1Quarter FY08 - RUBA Report Organizational Management Essential Indicators Yes No The entity that owns the utility is known and the entity that will operate the utility is set. The policy making body is active in policy making of the utility. The policy making body enforces utility policy. The utility has an adequately trained manager. The utility has an adequately trained book keeper. The utility has an adequately trained operator(s ). KK] The utility has adopted the necessary ordinances (or rules and regulations) neces sary to give it the authority to operate. Sustainable Indicators ® The utility has adopted an organizational chart that reflects the current structure. Xl The policy making body meets as required. Xx The utility complies with the open meeting act for all meetings. WRRRRMX Organizational Management Comments: The manager said that he would like to have a water/sewer rate study done in the future. The City council has ordered that delinquent customers be disconnected. The utility ordinance is still in draft form and the council will pass it when they have a meeting. 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). Kl The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. &) The utility maintains a critical spare parts list. X WOKKW kw Operation of Utility Comments: On September 4, 2007, the administrator faxed in several pages of inventory control list that he had water plant operators fill out. The administrator made the control list after getting a possible list of items to inventory. The WTP will not be able to Return to Compliance (RTC) for filtration and turbidity monitoring simply because their system lacks the equipment to make these possible. The Manager will try to develop a Critical Spare Parts list with the Operators. - 138- July — August — September 2007 I“Quarter FY08 - RUBA Report RUBA Activities For The Coming Quarter RUBA staff will assist the utility to: Enforce the collection policy. Establish a repair and replacement account. -139- July — August — September 2007 1“Quarter FY08 - RUBA Report Shageluk Activity Report Community Overview Lead RUBA Staff: Flora Olrun, Bethel Office 2003 Population: 129 Region: Yukon-Kuskokwim Delta Local Governments: 2"! Class City, od Residents haul treated well water and dispose of honey “Ae 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 On September 5, 2007 RUBA staff traveled to Shageluk to conduct an assessment of management capacity. On previous trips, the Administrator was trained on fiscal management, recordkeeping, maintaining the filing system and personnel issues. QuickBooks Pro was purchased and installed last year by the previous administration but was not being used. The new Administrator has started transferring the manual accounting process into QuickBooks Pro. She attended an introduction to utility management training session and is becoming more confident about managing City operations as she learns more about operations and issues. A new bookkeeper was recently hired and will attend an upcoming QuickBooks Pro class. The utility worker is scheduled to attend certification training sessions in Fairbanks. FY 2008 budget and finance reports to August, 2007 are on file in the Bethel RUBA office. The City of Shageluk has met all of the essential capacity indicators. - 141 - July — August — September 2007 1Quarter FY08 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No & All revenue and expenses for the utility are listed in the utility budget. & The utility has adopted a balanced realistic budget. &X Monthly financial reports are prepared and submitted to the policy making body. & The utility is current in paying all water/wastewater electric bills. Ri 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. Xi Budget amendments are completed and adopted as necessary. Finances Comments: The FY08 budget is on file. The budget includes a line item for repair and replacement costs. Monthly financial reports are current to August 31, 2007 and are on file in the Bethel office. The format of the financial statements is as follows: annual budgeted amount for FY08, month-to-date expenditures, year- to-date expenditures and balance. Written financial reports and outline for the Administrator's narrative report are placed in the meeting packets and given to the Council members prior to each regularly scheduled monthly Council meeting. At the meeting, the Administrator verbally updates the Council on financial and other City issues. The utility is current on meeting payments for all water/wastewater and electric bills. Fuel purchased for FY08 was 10,000 gallons and has been fully paid for. The purchase brings the fuel supply to an adequate level for the utility services. Accounting Systems Essential Indicators Yes 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 sys tem 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. X The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators J 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. RRR We -142- July — August — September 2007 1“ Quarter FY08 - RUBA Report Accounting Comments: The City of Shageluk passed Ordinance number 05-02, Code of Water and Sewer Ordinance on November 23, 2005. A copy of the ordinance is on file in the Bethel regional office. The City is in the process of converting the manual accounting system to the QuickBooks Pro computer system. Accounts receivables are in the system but accounts payable are still done manually. For the payroll system, QuickBooks has been set up to calculate the net pay for each employee. Processing the checks and the payroll register is done manually. A billing copy for sewer services to a customer, dated 9/7/07, is on file in the Bethel regional office. The City does not have a water and sewer system to serve all residents. A draft chart of accounts has been developed but is not being used. The Administrator plans to use the new chart of accounts after she completes the setup of QuickBooks Pro. The file containing the bank statements is not up to date, thus a complete reconciliation for the utility service has not been done since the new Administrator came on board. A purchase order form has been developed for the utility service workers and a copy is on file with RUBA. Tax Problems Essential Indicators Yes No & The utility has a system to accurately calculate, track, and report payroll tax liabilities. & (1) The utility is current on filing tax reports. & The utility is current on making tax deposits. & If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: QuickBooks Pro calculates each employee's tax deductions. The payroll journal is kept manually and IRS quarterly reports are up to date. Copies of the last four quarterly IRS tax reports are on file in the Bethel office. The City of Shageluk was declared compliant by IRS on 8/1/07. Personnel System Essential Indicators Yes No & The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators & 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. a} The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. & The utility has an adequate written hiring process. & The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. X The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. & The utility provides training opportunities to staff as needed and available. - 143 - July — August — September 2007 I“Quarter FY08 - RUBA Report Personnel System Comments: The personnel policy is completed but has not been adopted to date. Shageluk's workmen’s compensation insurance is current through 1/2/2008. A copy is on file in the Bethel regional office. 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 conducted 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 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. ® The utility has an adequately trained m anager. X The utility has an adequately trained book keeper. K) 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 Manage ment Comments: The City is enforcing utility policies with the YKHC Health Clinic, City office building and Post Office for water/sewer services. The school receives only sewer services and is billed each month. Evacuation services for the ten private homes that have privies are done on a prepaid basis. The bookkeeper position was filled in mid-August, 2007. Both the City Administrator and Bookkeeper need to attend a QuickBooks Pro training session. The utility worker is adequately trained and experienced. The City Administrator will attend a utility management class in Fairbanks on September 24th through the 27th, 2007. - 144- July — August — September 2007 1 Quarter FY08 - RUBA Report a Ko ttc BS - RUBA Report Operation of Utility Essential Indicators Yes No x The utility operator(s) are actively working towards necessary certification. . | The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators x The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. Xl The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). 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. XRXRX Operation of Utility Comments: The utility worker is enrolled in 'Introduction to Small Water Systems Provisional level | Review and State Certification’ class scheduled for September 17th through the 21st, 2007 in Fairbanks. A preventative maintenance plan is contained under chapter two of the Shageluk Operations and Maintenance Manual. A written daily log is kept each day by the utility worker. He needs to use the forms from the Operations and Maintenance manual. Besides the daily written log, he gives a monthly verbal report to the City Council each month. The 2006 annual water quality report is on file in the Bethel regional office which was prepared by Water Systems Services. The utility worker has not had any safety meetings and was not able to locate a safety manual. A letter is contained in the Bethel office from the Department of Environmental Conservation, Division of Environmental Health dated September 10, 2007, indicating that the City of Shageluk Water System was taken off the Significant Non-complier List (SNC) for prior stage | violations. Inventory control list and critical spare parts list are not being maintained. RUBA Activities For The Coming Quarter RUBA staff will be available if requested to assist with sustainable indicators. It is recommended that a chart of accounts is used that identifies categories ina reasonable, usable manner. Reconciliation of utility accounts need to be completed monthly. Written personnel evaluations for the utility workers that tie the job description to the evaluations need to be completed. A safety manual needs to be located or developed and regular safety meetings held. Inventory control and critical spare parts lists need to be maintained for the utility services. The utility worker needs to use the forms from the Operations and Maintenance manual for his daily written logs. July — August — September 2007 I“ Quarter FY08 - RUBA Report Stevens Village Activity Report Community Overview Lead RUBA Staff: Andy Durny, Fairbanks Office 2003 Population: 68 Region: Interior Local Governments: IRA Council ed Stevens Village has a small washeteria with three washers, two dryers, two showers, and two bathrooms. The washeteria was upgraded in 2002. The water plant provides service to the school and to the health clinic. Residents haul water from a watering point, and use honey buckets and outhouses for sewage disposal. Sewage from the washeteria, clinic and school is disposed of in a lagoon. The lagoon is probably filled near capacity and should be discharged. A VSW sanitation planning feasibility study was completed in 2002, but a new feasibility study is being conducted. The scope of the new feasibility study has been changed several times to include additional alternatives. Stevens Village has a $1.644 million award from VSW for construction of a hygiene center’, which will be part of a multi-purpose building to include a Denali Commission funded health clinic. The original plan for the project included construction of new water/sewer transmission lines to the multi-purpose building, and installation of some water/sewer service lines, but design and construction of the project are on hold pending completion of the new feasibility study, which has been delayed at least several times already. Stevens Village IRA Council operates the electric utility, which is not currently in the PCE program. The old power plant burned down a few years ago and a new power plant was constructed to replace it. The washeteria and electric utility are subsidized by the Stevens Village IRA Council. A design for a new solid waste facility has been completed. RUBA Activity This Reporting Period Stevens Village does not meet all essential RUBA indicators. 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. There was no RUBA activity this quarter other than minimal phone contact with the administrative assistant. - 147- July — August — September 2007 ‘Quarter FY08 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No XX] All revenue and expenses for the utility are listed in the utility budget. &] The utility has adopted a balanced realistic budget. & 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. XK] The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators KK The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. This was not in Johnny’ table. YTD revenues are at a level equal to or above those budgeted. & YTD expenditures are at a level equal to or below those budgeted. & A monthly manager’s report is prepared. EX] Budget amendments are completed and adopted as necessary. Finances Comments: Available financial records indicate that annual utility expenses exceed annual revenues by approximately $68,000. It is possible that improved recordkeeping may show the actual deficit to be somewhat lower. Nonetheless, the community must be able to identify the source of funding for any subsidy of the utility and must be able to confirm the availability of those funds: at present, the community can do neither. The community does not have an overall budget that clearly identifies all of its income and expenditures: without an overall budget, the community is unable to confirm what funds--if any--are available to subsidize the utility. There is some concern that the community may have significant debt. - 148 - July — August — September 2007 1'“Quarter FY08 - RUBA Report ) P P 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 sys tem 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. XRX Ww X Sustainable Indicators & A chart of accounts is used that identifies categories in a reasonable, usable manner. & Monthly bank reconciliation’s have been completed for all utility accounts. & The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. Accounting System Comments: The washeteria receives income from user fees and from charges for water/sewer service to the school. The school is billed on a regular basis and pays on a regular basis. As such, the washeteria has not yet had to implement a collection policy. The electric utility bills on a regular basis, and has a collection policy; the Tribe has been taking steps to actively follow it. The QuickBooks program tracks customer accounts and reports past due amounts, accounts payable, and payroll records. A cash receipt and cash disbursement system is in place to record and track income and expenses. All expenditures are made by check. Some improvements may be needed. The chart of accounts identifies categories in a reasonable, usable manner but there is room for improvement. Tax Problems Essential Indicators Yes No ® The utility has a system to accurately calculate, track, and report payroll tax liabilities. ® The utility is current on filing tax reports. & The utility is current on making tax deposits. X If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: According to phone contact with IRS and with the Alaska Department of Labor, Stevens Village is current on filing its deposits and reports. - 149- July — August — September 2007 1 Quarter FY08 - RUBA Report Personnel System Essential Indicators Yes No &X) The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators Xx The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. The utility has adequate written job descriptions for all positions. x The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. & &X The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. {The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. ® The utility provides training opportunities to staff as needed and available. Personnel System Comments: The Tribal Council has a personnel policy that was prepared for it by a consultant in 1999 and approved in 2001. The Council is considering making changes and updating the policy. Job descriptions are not available for all employees. No evaluations have taken place in recent years. The personnel policy includes a probationary period for new hires, but not evaluations at the end of the probationary period. Organizational Management Essential Indicators Yes No ® 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 m anager. The utility has an adequately trained book keeper. The utility has an adequately trained operator(s ). KK] 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. HXXRH - 150- July — August — September 2007 1“ Quarter FY08 - RUBA Report RUD A Report Organizational Management Comments: The Tribal Council is the entity that operates the utility. The Council has taken steps to become more active in making and enforcing policy. The Tribal Administrator has received training from Alaska - Vocational Technical Center (AVTECH), Tanana Chief's Conference (TCC) and RUBA training. The’ administrative assistant has received QuickBooks training through UAF and has previous QuickBooks experience. The washeteria has not needed an ordinance to operate. A water/sewer ordinance will be needed if the utility plans to provide expanded service to customers in the future (e.g. flush/haul system or piped system). The electric utility has policies and procedures. The Tribal Council does not have a current organizational chart. The Council meets on a regular basis, although occasionally meetings are postponed for lack of a quorum, notably during the summer months. Meetings are open to the public. Operation of Utility Essential Indicators Yes No X The utility operator(s) are actively working towards necessary certification. & The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators XX] The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. &] The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. & The utility maintains an inventory control list. & The utility maintains a critical spare parts list. XWRXX Operation of Utility Comments: The operator has a Water Treatment OIT certificate and a Water Distribution OIT certificate, both good till 12/31/08. A written preventative maintenance plan was not available. The manager receives informal reports from the operator and spot checks the washeteria facility on an informal basis. The utility has safety data sheets but a safety manual was not available. RUBA Activities For The Coming Quarter RUBA staff will continue to monitor and assist. July — August — September 2007 1“ Quarter FY08 - RUBA Report a Ei cE OE eee OTT Tuluksak Activity Report Community Overview Lead RUBA Staff: Paul Chimiugak, Bethel Office 2003 Population: 466 Region: Lower Kuskokwim Local Governments: Tribal Council od The Tribal Council operates the washeteria, water SM cea, at POM . treatment plant, container haul system, and electrical services for the community. The Tribal Council is the policy making body for the utility services. Only one watering point, with storage capacity of less than 7,000 gallons, serves the entire community, washeteria, clinic, and the school. Residents haul honey-buckets to 21 bins located sparingly throughout the community. A feasibility study was completed to implement a piped water and sewer system in the future. A larger water storage tank, completion of a new lagoon, and water system improvements are the community's priorities. RUBA Activity This Quarter The Bethel staff traveled to Tuluksak to update a RUBA management assessment of the Tribal operations on August 31, 2007. The Yupiit School District is still operating the water treatment plant. The Tribe is struggling to keep the washeteria operational. Electric payments are falling way behind. The agreement with the school either needs to be re-negotiated or the Tribe needs to take back the operation and maintenance and start billing the school. The Tuluksak Native Community does not meet all essential management assessment indicators at this time. July — August — September 2007 1 Quarter FY08 - RUBA Report Capacity Indicators Essential Indicators Finances Yes No X X &X XK x X All revenue and expenses for the utility are listed in the utility budget. The utility has adopted a balanced realistic budget. Monthly financial reports are prepared and submitted to the policy making body. The utility is current in paying all water/wastewater electric bills. The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators ® & 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 the washeteria/water treatment plant and sewage haul has been completed, but the actual copy of the budget was not sent to the Bethel office for review. A copy of the budget ordinance was faxed to the office. They are now sending in the monthly financial reports to the office when requested. The budget is not included in the financial report. The fuel situation is in question at this time; the Tribal storage tanks did not pass Coast Guard review and they are a couple of months behind on the fuel loan. They do not meet the criteria of having sufficient fuel or a financial plan to purchase it. -1 nm 4- July — August — September 2007 1 Quarter FY08 - RUBA Report ‘ ig P. P. —[———— EES TAUBA Keport Accounting Systems Essential Indicators Yes No ® The utility has adopted a collection policy and actively follows it. x The utility bills customers on a regular basis. XX An accounts receivable system is in place which track customers and reports past due accounts and amounts. XX] An accounts payable sys tem 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. XR Sustainable Indicators & A chart of accounts is used that identifies categories ina 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: Collection of sewage haul payments has improved due to the fact that collection is made using the Powerstat cards. The bookkeeper is meticulously recording every payment that is made. An accounts payable report showing who they owe money to was not made available at the time of the assessment. Their payroll tax calculations are done through QuickBooks Pro. When making purchase orders, the purchase order is filled out, the bookkeeper checks it against the budget, then is submitted to the wt administrator for approval. . Tax Problems Essential Indicators Yes No ® The utility has a system to accurately calculate, track, and report payroll tax liabilities. &X The utility is current on filing tax reports. & The utility is current on making tax deposits. 4 if there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The past due taxes are still being paid out of the Anchorage office through a loan from a bank. They are now keeping current with the payroll tax liabilities. ' in on ' July — August — September 2007 1“Quarter FY08 - RUBA Report Personnel System Essential Indicators Yes No Xx The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators X 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. & The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. ® The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. & The utility provides training opportunities to staff as needed and available. Personnel System Comments: They have a current insurance policy in place which expires October 01, 2007. The hiring process is, the position is posted, when a person is hired they are hired by the administrator and is approved by the Council and they are given a 90 day probationary period. Currently the budget does not show any funds for staff training. They are seeking a training opportunity to get a certified Tribal water operator. A school district employee conducts the utility operations and maintenance of the water treatment plant. Organizational Management Essential Indicators Yes HRRXXw 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 book keeper. The utility has an adequately trained operator(s ). The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators & & & The utility has adopted an organizational chart that reflects the current structure. The policy making body meets as required. The utility complies with the open meeting act for all meetings. Organizational Management Comments: The Council has increased the sewage haul rate to $40.00 per month for each customer. The Council remains active in reviewing rates and making changes when necessary. As a Tribal entity they are not required to meet the open meetings act, however they do try to follow posting and meeting requirements. July — August — September 2007 I“ Quarter FY¥08 - RUBA Report Operation of Utility Essential Indicators Yes No &X The utility operator(s) are actively working towards necessary certification. & The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators ® The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. The utility has a safety manual and holds safety meetings. & Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. X XRRRN Operation of Utility Comments: They are still using the school district’s maintenance personnel to operate and maintain the treatment plant. The problem the Tribe is running into now is that they are finding that the washeteria revenue can not maintain the electric power usage, it is just barely breaking even to pay for the washeteria attendant. The washeteria/water treatment plant is running up a bill in electricity of a substantial amount. The agreement with the school district needs to be revisited and renegotiated with the expenses in mind. The school district operator gives monthly O and M reports to the Tribal meetings regularly. RUBA Activities For The Coming Quarter RUBA staff will continue to monitor monthly financial reports and request the current budget, an accounts payable report, the utility ordinance, collection policy and job descriptions. July — August — September 2007 1 Quarter FY08 - RUBA Report Venetie Activity Report Community Overview Lead RUBA Staff: Eileen Kozevnikoff, Fairbanks Office 2003 Population: 184 Region: Interior od Local Governments: Tribal Council 7 : : eee, oo oe a Water is derived from a well near the Chandalar River, then treated and stored in a tank. The existing well has an interim permit pending determination of whether it is to be classified as groundwater or ground water under the direct influence of surface water. A circulating system and septic tank system constructed in 1980 failed within two years of construction. The water transmission line froze last year, and the utility is still using 'fire hoses' on a portion of its water transmission line, until funding is available for a more permanent solution. Currently six homes and the health clinic are on a flush/haul system. A washeteria constructed in the early 1990's has six washers and six dryers, plus shower facilities. Electricity is provided by Venetie Village Electric. The washeteria also uses a small solar power system to provide some electricity. Construction of a new lagoon was completed in 2005, and it has been operating satisfactorily. There are plans for construction of a haul garage and for installation of 15 more water/sewer haul services. RUBA Activity This Reporting Period Contact with the Venetie Tribal Council has been via telephone this quarter. The new RUBA made contact with the Tribal Administrator, however the Administrator went on an extended subsistence leave before more contacts or a trip was planned. Contacts have been minimal during this quarter and a trip will be planned next quarter to update the assessment and provide assistance. - 159 - July — August — September 2007 I‘Quarter FY08 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No X All revenue and expenses for the utility are listed in the utility budget. Xl The utility has adopted a balanced realistic budget. kl Monthly financial reports are prepared and submitted to the policy making body. X The utility is current in paying all water/wastewater electric bills. ® The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. &) The utility is receiving revenues (user fees or other sources) sufficient to cover g operating expenses. Sustainable Indicators & The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. This was not in Johnny' table. Xi YTD revenues are at a level equal to or above those budgeted. ® YTD expenditures are at a level equal to or below those budgeted. & A monthly manager’s report is prepared. X Budget amendments are completed and adopted as necessary. Finances Comments: There has been minimal contact with the Tribe this quarter and only a couple of telephonic contacts were made. 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. X An accounts payable sys tem 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. X The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators ® A chart of accounts is used that identifies categories in a reasonable, usable manner. ® Monthly bank reconciliation’s have been completed for all utility accounts. ® The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. - 160- July — August — September 2007 Quarter FY08 - RUBA Report AUDA Keport Accounting System Comments: The Tribal Administrator has said that he is interested in having training with QuickBooks Pro. The Tribe has been invited to a future QuickBooks Pro training scheduled for Fairbanks in November. This class is sponsored and funded by DCRA/RUBA. Tax Problems Essential Indicators Yes No &) The utility has a system to accurately calculate, track, and report payroll tax liabilities. X The utility is current on filing tax reports. ® The utility is current on making tax deposits. Ri If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The Tribe still has a repayment plan in place with IRS for the years 2000-2003. The IRS reports they are currently in compliance. Personnel System Essential Indicators Yes No X) The utility has a posted workers compensation insurance policy in effect. . Sustainable Indicators & The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. x The utility has adequate written job descriptions for all positions. 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: 1-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. & The utility provides training opportunities to staff as needed and available. Personnel System Comments: The Tribe still currently only has two employees working in the office, two in the washeteria, two in the clinic and one in the power plant. The Administrator has expressed interest in having RUBA staff travel to the community to do a RUBA assessment next quarter. - 161 - July — August — September 2007 “Quarter FY08 - RUBA Report i) P. P. 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 m anager. The utility has an adequately trained book keeper. The utility has an adequately trained operator(s ). The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators & The utility has adopted an organizational chart that reflects the current structure. & The policy making body meets as required. X The utility complies with the open meeting act for all meetings. HRRWH Organizational Management Comments: There has not been any change on organizational management issues this quarter. Operation of Utility Essential Indicators Yes No X The utility operator(s) are actively working towards necessary certification. X The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators ® The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. &X] The utility has a safety manual and holds safety meetings. KX] Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). J 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. XRORKN Operation of Utility Comments: The operator is not certified as of yet. RUBA Activities For The Coming Quarter RUBA staff will travel to Venetie to meet with the Council and Tribal Administrator to conduct a RUBA assessment. The Tribal Administrator has invited the new RUBA staff to travel to the community. RUBA staff hopes to make at least two trips in the next quarter. - 162 - July — August — September 2007 1 Quarter FY08 - RUBA Report Non-RUBA Communities Adak John Nickels, LGS/RUBA, Anchorage Office DCA staff traveled to Adak July 15-19, 2007 at the community's request to assist the City Administrator and Council in preparing a repayment agreement with the IRS. The City had filed Form 941 quarterly tax reports but had not paid the taxes since the fourth quarter of 2005. Non-compliance with the IRS was pointed out ina RUBA assessment of management capacity indicators conducted at the City's request in October 2006. During the July visit, DCA staff reviewed the accounting system and records, assisted the Administrator in creating an FY08 budget, and projected cash flows for each quarter of the fiscal year. Revenues were identified and a payment plan devised that would pay the IRS debt by February 2008 while leaving sufficient cash flow for the City to continue operating. Adak City Manager Steve Hines and Consultant Lamar Cotten visited RUBA staff at the Anchorage regional office August 1, 2007. Manager Hines reported that payment for the second quarter 2007 payroll taxes had been made, and that payroll taxes were being handled electronically using a service provided by QuickBooks. Progress on the plan devised earlier to resolve IRS debt issues was discussed, as was the possibility of revising planned payments to the IRS to include sufficient funds earlier to pay off the trust fund debt. The ability to pay this amount earlier than planned depended on receipt of payment of the remaining past due utility balance owed by Adak Fisheries. RUBA staff attended a meeting at the Aleut Corporation office in Anchorage September 17, 2007 to discuss issues regarding Village Safe Water sanitation projects for Adak. RUBA staff presented to the group a general overview of the RUBA assessment process and commented on specific essential indicators that are currently not met be the City. DEC regulatory compliance issues as well as problems caused by the age and poor condition of the water and sewer system were also discussed. A new but smaller system would be better than attempting to repair the existing system, but lack of a development plan for the community makes planning a new system very difficult. Unfortunately, the community's 25 to 30 active households are spread out in various subdivisions that are largely uninhabited. The Aleut Corporation agreed that a housing plan is needed and the process to create one has started. The City of Adak has agreed to continue their efforts to satisfy RUBA essential indicators and to become compliant with DEC drinking water regulations. The City of Adak received a Notice of Levy from the IRS dated October 1, 2007. The IRS is attempting to collect unpaid employment taxes from the fourth quarter of 2005 to the present time. Despite earlier reports from the City that payroll taxes are now current, the IRS reports that payments from the City have not been received, and collections action is moving forward. Brevig Mission Melissa Taylor, LGS/RUBA, Nome Regional Office Nome RUBA staff visited Brevig Mission two times this quarter to provide financial assistance to the new bookkeeper and to the new BINGO manager. The BINGO department is still operating in the red. The City Council is going to make a decision in September or early October about whether they should allow their gaming permit to expire; they cannot continue to subsidize a department that cannot sustain itself. Buckland Margaret Hansen, LGS/RUBA, Kotzebue Regional Office RUBA staff provided assistance by phone, email and fax to the Administrator and Clerk that involved the City's water/sewer project. RUBA staff also traveled to the community to provide information on the RUBA Program including RUBA agreements and work plans. The Council will discuss this at the next regular meeting after the election. - 163 - July — August — September 2007 1“Quarter FY08 - RUBA Report Chalkyitsik Leroy Seppilu, LGS/RUBA, Fairbanks Regional Office Newly assigned RUBA staff traveled to the community this quarter to introduce himself and offer assistance. A limited RUBA re-assessment was completed and some findings were made. The Tribe is still very interested in getting into the Power Cost Equalization (PCE) Program that will allow residential customers to pay a subsidized electric rate. It currently charges $0.40 a kwh. Clark’s Point Ralph Andrew, LGS/RUBA, Dillingham Regional Office RUBA provided assistance to City officials during travel to Clark's Point twice in August 2007 on matters including fuel financing, fiscal year 2006 financial reporting, and the FY 2008 budget. The Division of Community and Regional Affairs Assistant Director Scott Ruby, participated in the mid- August visit. The City remains without full time administrative staff and is having a difficult time finding qualified staff. Presently, the Mayor is covering daily responsibilities in the City office and is making attempts to improve the City's financial standing via improved utility management, including billing. Late in the quarter, the City informed RUBA that a fuel delivery via barge was anticipated but financing was not yet secure. The City plans to purchase sufficient fuel to run the electric plant and if possible, some additional fuel for retail sales to residents. The City continues working to assemble an FY 2008 budget and other financial reports necessary to access state municipal assistance monies. Deering Margaret Hansen, LGS/RUBA, Kotzebue Regional Office Ipnatchiaq Electric (IP) called several times requesting assistance for the City to pay IP overdue fuel and electricity debt. IP needed the funds to pay for a new bulk fuel order. RUBA staff traveled to Deering in August 2007 to assist City staff in meeting the requirements of the Community Energy Assistance Program (CEAP) in order to receive energy assistance funding and relieve the cash flow problem. Elfin Lawrence Blood, LGS/RUBA, Juneau Regional Office RUBA and Department of Environmental Conservation (DEC) staff traveled to Elfin Cove to meet with the Community of Elfin Cove Non-Profit Corporation (CECN PC) to discuss continuous disinfection of their water system. Currently, the community utilizes a small untreated water sy stem; however, during a recent sanitary survey, several issues were identified that may force the community to adopt a treatment system. Recent water samples have tested positive for bacteriological contamination, an unidentified growth has been discovered in the water storage tank, and distribution lines running underneath the cove are joined together with clamps, which could allow contamination to occur. DEC will make a determination on the disinfection requirement after analysis of additional water samples. The community will be forced to establish an enterprise to run the water system and to start charging water fees if continuous disinfection is required. RUBA staff described the services that are available and offered assistance as the community moves through this process. - 164- July — August — September 2007 1 Quarter FY08 - RUBA Report Glennallen Jimmy Smith, LGS/RUBA, Anchorage Office On August 28, 2007, RUBA staff traveled to Glennallen to meet with Scott Strauss, Manager for - Glennallen Improvement Corporation (GIC) to complete a RUBA assessment of management capacity indicators. GIC staff provided the documentation supporting the conclusions of this report. Specific documents used in this report are available with the RUBA staff for review. The assessment is incomplete as the GIC staff did not sign the IRS Authorization to Release Federal Tax Information form. Once that information is received and if documented as in compliance with IRS, GIC will then meet all essential indicators. Until that time, continuation of sanitation construction funds are in jeopardy. With the help of a consultant, GIC continues to work on the Personnel Policy Manual for GIC including a purchasing policy system. Kiana Margaret Hansen, LGS/RUBA, Kotzebue Regional Office RUBA staff traveled to Kiana to provide assistance and training on their FY 08 budget and certified financial statement. RUBA staff attended a council meeting as they reviewed the draft FY08 budget. RUBA noted several inconsistencies within the draft budget and worked with the staff to produce a second draft with all revenues and expenditures identified. Assistance was also provided regarding the sales tax ordinance and outstanding receivables. Kobuk Margaret, LGS/RUBA, Kotzebue Regional Office Kotzebue RUBA staff traveled to Kobuk in August to assist and provide training to the new clerk on elections and the new utility clerk on Power Cost Equalization (PCE) reports. We completed nine months of reports and were able to request $26,000 of reimbursements to the City. In September, RUBA staff provided continued training as planned in preparing to complete the annual PCE report, drafting letters to delinquent customers and monthly financial reporting. Koyuk Melissa Taylor, LGS/RUBA, Nome Regional Office Anchorage and Nome RUBA staff traveled to Koyuk this quarter at the request of the community, and Nome RUBA staff traveled back to Koyuk a second time to provide follow-up technical assistance and review of the RUBA assessment. RUBA staff and City staff drafted revised city ordinances. RUBA is waiting for City officials to request assistance on further revisions. The only other major change that occurred in Koyuk this quarter is the replacement of the BINGO manager. - 165 - July — August — September 2007 1“Quarter FY08 - RUBA Report Kwethluk Ken Berlin, LGS/RUBA, Bethel Regional Office On July 24, 2007 the City of Kwethluk Bookkeeper delivered documents related to the RUBA essential indicators to RUBA staff at the Bethel office. The following documents were enclosed: FY 2008 budget, finance reports to June 2007, copy of current electric bill, 941 and ESC quarterly reports and copies of payroll tax deposits, City personnel policy and copies of job descriptions, operator certification, ordinance establishing water and sewer utility department, organizational chart, business plan and copies of reports by the manager and operator. On August 17, City Bookkeeper Margaret Pitka called RUBA staff with an update on the RUBA assessment. The June collection rate was at 82%. She requested QuickBooks Pro training and is going on maternity leave in November. None of the dryers at the washeteria are working and the City would like to use unspent grant funds to buy dryers. RUBA staff recommended she talk with the grant administrators in charge of the grants. August 22, 2007, RUBA staff traveled to Kwethluk and conducted an onsite RUBA assessment update and also attended a meeting and reported to the City Council on the findings of the assessment. The RUBA assessment was completed based on the documentation presented by the City staff. All of the essential indicators were met at the time of this trip and report. The City Council and staff worked very hard in the last couple of months to meet the RUBA requirements and they are to be commended for their work. Everyone involved in this water and sewer project, including the outside agencies, wants this project to go forward to completion. Minto Leroy Seppilu, LGS/RUBA, Fairbanks Regional Office RUBA staff traveled to Minto this quarter to assist the new Tribal Administrator with correcting some of the entries in QuickBooks Pro. Bank reconciliations, update of chart of accounts, personal leave adjustments and corrections to monthly water/sewer utility bills were all completed. The new Tribal Administrator was also taught how to make monthly financial reports using QuickBooks Pro accounting processes. RUBA staff will continue to monitor monthly finance reports and provide assistance as requested. RUBA is sponsoring a regional Introduction to QuickBooks class in Fairbanks during November. An invitation to Minto for this training will be extended. New Stuyahok Ralph Andrew, LGS/RUBA, Dillingham Regional Office RUBA provided on-site assistance to the Mayor and City staff with the RUBA assessment of management indicators September 19-21, 2007. The City is working hard to maintain satisfactory RUBA essential indicators associated with special sanitation grant conditions. RUBA assisted the City Administrator assemble a monthly financial report. Water/sewer customer fee collections could improve but overall water/sewer finances are stable and the Mayor is making a visible effort to strengthen collections. The water operator attended a RUBA utility management course during this quarter in Dillingham. Also of note, the new airport was completed, the new school construction continues, and ten new HUD homes are nearing completion. The HUD homes are expected to use a private septic system until the public wastewater system allows additional connections. The City hopes to see the sewage lagoon renovation project initiated next spring. Northway Eileen Kozevnikoff, LGS/RUBA, Fairbanks Regional Office On August 17, 2007 RUBA staff traveled to Northway and met with Tribal Administrator Daisy Northway to complete a RUBA management assessment. Northway has done a complete turnaround within the last six months with the hiring of the bookkeeper and they passed the RUBA assessment. - 166 - July — August — September 2007 1 Quarter FY08 - RUBA Report Pilot Point Earl Gibson, LGS/RUBA, Anchorage Office RUBA staff traveled to meet with City Manager Valerie Jefferies and to attend a meeting of the City Council September 10-12, 2007. RUBA assisted the City Manager with drafting of ordinances, ~ manager report format, and other administrative issues. At the City Council meeting, RUBA presented information on the roles and responsibilities of City staff and council members. The City Manager is doing an awesome job of running daily activities while meeting the necessary monthly and quarterly reports. The community continues to meet all essential indicators of the RUBA management assessment. Shungnak Margaret Hansen, LGS/RUBA, Kotzebue Regional Office RUBA staff traveled to Shungnak for an on-site visit to provide assistance with the annual Power Cost Equalization (PCE) report and to update the RUBA management assessment report. After discussing the RUBA assessment indicators with the staff, RUBA examined the insurance files and noted late payment notices. Upon calling the insurance company it was discovered the worker's compensation insurance had been cancelled for non-payment. RUBA researched insurance companies and assisted the staff in applying for a new policy. The administration has not kept current with IRS liabilities either and RUBA stressed the importance of meeting that indicator. Shungnak continues to experience cash flow problems and additional on-site assistance was requested. Tanacross es Leroy Seppilu, LGS/RUBA, Fairbanks Regional Office Fairbanks RUBA staff made a trip Tanacross to conduct a reassessment of management capacity indicators after a sanitation project was completed. The Tribe had a water/sewer utility extension project to a new housing area. Teller Josie Bahnke, LGS/RUBA, Nome Regional Office At the request of the Mayor, Nome RUBA staff traveled this quarter to Teller to provide RUBA assistance. The City is working in partnership with Village Safe Water and CE2 Engineers on the design and construction of a piped water and sewer system. Additionally, the City and the Native Village of Teller are working with Alaska Native Tribal Health Consortium. Thorne Bay Lawrence Blood, LGS/RUBA, Juneau Regional Office Juneau RUBA staff traveled to Thorne Bay on August 20 and 21, 2007 to complete an assessment of management capacity indicators. This assessment was requested by the City Administrator to document improvements made in management capacity in the areas of utilities billing and operational procedures. Thorne Bay now meets all RUBA management essential indicators and a majority of the sustainable indicators. - 167 - July — August — September 2007 I Quarter FY08 - RUBA Report Wales Melissa Taylor, LGS/RUBA, Nome Regional Office RUBA staff traveled to Wales once this quarter. RUBA staff is working closely with Norton Sound Economic Development Corporation (NSEDC) on a financial maintenance plan for the City. RUBA staff is also working with the City to review all of the completed ordinance revisions. During this quarter, the City of Wales, with the assistance of NSEDC, was able to pay many of their overdue bills and to completely pay the IRS up to the beginning of 2007. The City was also able to purchase enough fuel through the NSEDC fuel program to last through the winter. Whittier Elizabeth Manfred, LGS/RUBA, Anchorage Office At the request of the Whittier City Council, LGS Elizabeth Manfred traveled to Whittier to teach the City Clerk how to codify their ordinances. The previous city manager had budgeted $60,000 to complete this task through an outside publications firm. With a day of one-on-one training, the City Clerk completely updated the codification and now has the skills to maintain the city code and insert new ordinances as they are adopted. She will copy the updated code and provide each council member a corrected code. In one day, the city saved $60,000 and the clerk acquired a new skill that will continue to save them money! This codification project pin pointed the need to update the elections code after fall election season and to address deficiencies noted in the sanitation code. The Alaska Rural Water Association awarded Whittier the 'Best Tasting Water in Rural Alaska’ award at their annual Anchorage Conference in September. The water is tested occasionally and so pure that it is untreated. - 168 -