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HomeMy WebLinkAboutRural Utility Business Advisor Program Oct 1-December 31 2007Rural Utility ‘Business Advisor Program RUBA Quarterly Report October 1 - December 31, 2007 Second Quarter FY08 WBA RURAL UTILITY BUSINESS ADVISOR RUBA Program Manager Elizabeth Manfred 550 W. 7th Ave., Suite 1770 Anchorage, AK 99501-3569 [Elizabeth's office is on the 16th floor in Suite 1640] 907-269-4556 (phone) 907-269-4563 (fax) elizabeth.manfred@alaska.gov Rural Utility Business Advisor (RUBA) Program Activity Report October 1 — December 31, 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 October | through December 31, 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 Anchorage RUBA staff member Jimmy Smith was appointed by Commissioner Emil Notti to serve as the Business Development Specialist at the Denali Commission in partnership with the Department of Commerce, Community, and Economic Development. The position will explore ways for the Commission and Commerce, in cooperation with other agencies, to collaborate on rural community planning and infrastructure development projects. Mr. Smith previously worked with the RUBA program in Anchorage since August 2001 and with Commerce from 1993 to 1999 in the Bethel office. Jimmy’s knowledge and experience with rural communities makes him a great asset to the Denali Commission and as an ally and liaison between RUBA and the Commission. RUBA staff member Melissa Taylor transferred from the Nome office to Anchorage and will be assigned Jimmy Smith’s communities. She is eager to share her experiences of community service in the Nome region and blend it with new challenges found in the Anchorage region. Recruitment is currently posted for a Local Government Specialist position in Nome to provide on-site assistance to communities in that region. This position became vacant when Melissa Taylor transferred to Anchorage. Weather and Fuel Delivery Issues RUBA staff in Anchorage was made aware of several communities that, due to fall storms, did not receive necessary fuel shipments. A Delta Western fuel barge was laid up in Port Moller for several weeks due to weather. St. George, St. Paul, and Nikolski were the hardest hit by the lack of delivery. St. George rationed fuel for the power plant and discontinued deliveries of fuel for residents. St. Paul rationed fuel also. A crab vessel made an emergency RUBA Program Scope of Report delivery of 20,000 gallons to St. Paul. Nikolski arranged for small deliveries of fuel from Unalaska via both air and fishing vessel. These emergency fuel purchases came with a very high price to the community which is then passed on to the consumers. Emergency fuel purchase in Perryville was reported as high as $20/gallon. Coordination/Communication Alaska Municipal League (AML): The AML 57" Annual Local Government Conference was held in Fairbanks November 7-9, 2007. RUBA staff from Fairbanks, Nome, Dillingham and Anchorage attended the conference and sponsored a booth with various resource material and training information. It was an opportunity to make contact with municipalities who provide utility services and discuss their issues and needs. Future regional trainings will be scheduled based on requests received during this conference. Rural Utility Cooperative: RUBA received the final 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 they provide. RUC filled the need for sound utility management practices within the Yukon region. The RUC program will be absorbed by the Alaska Native Tribal Health Consortium beginning January 2008. 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. University of Alaska, Fairbanks: Anchorage RUBA staff traveled to Fairbanks in December to meet with University of Alaska, College of Rural Alaska staff to discuss the implementation of the Rural Utilities Business Management Occupational Endorsement. The University approved the Occupational Endorsement earlier this year, which is now offered as part of the College of Rural Alaska’s Tribal Management Program to students who complete a series of six utility management courses prepared and presented by RUBA. The courses, which are in the University of Alaska College Catalog, are those that have been taught by RUBA for a number of years in rural Alaska. Course subjects include utility financial management, operational management, utility organization, utility planning, personnel management, and an introductory course that covers the other five subjects. Discussion points of the meeting included procedures for scheduling classes, student registration, university approval of class instructors, and efforts to promote the course and the Occupational Endorsement. nN ' RUBA Quarterly Report — 2nd Quarter FY08 - RUBA Program Scope of Report Department of Environmental Conservation (DEC): The RUBA Program Manager met with a Legislative Auditor to discuss the relationship and mutual support of the RUBA Program and DEC Village Safe Water. The Legislative Auditor requested documentation of the RUBA management assessment process, explanation of the community participation in the assessment process and a report of the history of assessments for the past two years. The auditor stated he would recommend a change to the Village Safe Water (VSW) funding process to require that a community request and passes a management assessment prior to applying for sanitation funding. Previously, communities were awarded grants and then funds were not released until an assessment was passed, which may tie up the money for a period of years. The auditor’s recommendation will also be to reallocate money previously awarded yet unable to be released due to non-compliant assessments. Alaska Rural Water Association Annual Conference: Juneau RUBA staff presented a utility management session at the Alaska Rural Water Association’s 9" Annual Water Professionals Training Conference, November 5-8 held in Anchorage. The conference attracted approximately 100 water and wastewater operators and managers. During the conference, RUBA staff presented a session on utility business plan development and an overview of the RUBA Assessment of Management Capacity Indicators and how these documents impact potential facility construction funding. Remote Maintenance Workers (RMW): Remote Maintenance Worker Steve Evavold contacted RUBA with a proactive plan to assist rural water operators. Some operators were not completing water tests routinely as required by federal regulations. The RMW asked RUBA staff to help create a calendar with important water plant operations and maintenance items listed for sanitation requirements. These items include routine test dates, training opportunities, and available resources. RUBA staff and the RMW inserted rural water plant photos for the background of each month to increase awareness of the variety of water systems. The calendar was distributed to the Kodiak region for input and suggestions from operators. It was well received and will be copied and distributed to a wider base. Internal Revenue Service: RUBA staff attended a meeting of the Rural Alaska Pilot Project (RAPP) at the Internal Revenue Service (IRS) office in Anchorage on November 8, 2007. Attending the meeting were staff from IRS, the Denali Commission, Alaska Department of Commerce, Community, and Economic Development, and the U.S. Department of Housing and Urban Development (HUD). RAPP meetings are held quarterly to discuss how rural Alaska tribal and municipal governments can be assisted with their financial and tax problems. IRS representatives reported on the employment tax workshops that they continue to hold. A workshop was held in Nome in Mid-October; another was held during the BIA Providers Conference the final week of November in Anchorage. There are plans for additional tax workshops in Anchorage in April. The HUD representative reported that $5.9 million was recently awarded in Indian Community Development Block Grant funds for projects in about 20 communities. Also discussed was the need for assistance with the QuickBooks accounting program in many rural communities. RUBA staff reviewed the status of QuickBooks regional trainings, community on-site QuickBooks installations, and the new QuickBooks manual. RUBA Quarterly Report — 2nd Quarter FY08 -3- RUBA Program Scope of Report The Nome workshop was held October 16-17, 2007, with thirty-two city and tribal staff from the Bering Strait region participating. Subjects included payroll tax and bingo/pulltab accounting and reporting. The workshop was coordinated by Nome RUBA staff in partnership with Norton Sound Economic Development Corporation, Kawerak, Inc., Internal Revenue Service (IRS) Indian Tribal Government Division, and the State Department of Revenue Tax Division. The goal of the IRS workshop was to improve participant knowledge of computing correct taxes for payroll, completing Form 941 Quarterly Employment Tax Returns, making federal tax deposits, and avoiding penalties. The Alaska State Tax Division- Gaming Unit presented a program outline of Alaska Statute and Administrative Code. Norton Sound Economic Development Corporation (NSEDC): In an effort to expand community sanitation opportunities in the Bering Strait region, Nome RUBA staff assisted with the submittal of grant proposals to NSEDC for the cities of Teller, Wales, Golovin, and Shaktoolik. The proposals included requests for heavy equipment, septic tank pumper trucks, and washeteria renovations. Assistance included budget development, price quotes, statements of need, draft reviews, and financial documentation. The total request for the seven projects was $768,418. The NSEDC Board will meet in Nome on January 21-22, 2008 to award the projects. Kawerak, Inc.: At the request of the Kawerak, Inc. Tribal Affairs Director, Nome RUBA staff provided training to 11 tribal council presidents and two tribal affairs staff members on November 14, 2007 in Nome. The four hour workshop focused on holding effective meetings and was part of a three day training session to provide supervisory skills to village leadership who may be on governing boards for sanitation services. Tribal council presidents from Brevig Mission, Elim, Shaktoolik, Shishmaref, Council, King Island, Savoonga, Saint Michael, Wales, White Mountain, and Golovin participated in the hands-on workshop. Northwest Arctic Borough: Kotzebue RUBA staff participated in a joint meeting to discuss water/wastewater issues in the Northwest Arctic Borough region and provided an overview of changes in state funding over the years. Due to changes in state shared payments over the years, increased fuel and utility costs, old systems needing replacements, and loss of capital matching grants in FY03, cities have not been able to keep up with operation and maintenance costs. Cities in the region receive funding from the Northwest Arctic Borough, however, assembly members are concerned that they will not be able to continue funding utility service emergencies. More and more water operators are quitting due to stress and low pay, and many residents are unable to pay utility bills due to seasonal jobs. A teleconference to inform and involve additional agencies about a possible crisis of regional water/wastewater systems was proposed. Alaska-British Columbia Intertie Advisory Work Group: Juneau RUBA staff attended the Alaska-British Columbia Intertie Advisory Work Group meeting that addressed the relationship between the high cost of electricity and a community’s ability to deliver cost effective water and wastewater services. The group is an advisory group of the Alaska Energy Authority who is working towards the completion of an electric intertie to address the high costs experienced by diesel dependent communities. RUBA Quarterly Report — 2nd Quarter FY08 -4- RUBA Program Scope of Report 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. State of Alaska, Division of General Services: As part of Governor Palin’s initiative to ensure rural communities and other political subdivisions of the State have access to cost effective purchasing contracts, RUBA staff worked with the Division of General Services to inform communities about state negotiated purchasing contracts that can be used by local governments. As a result of this education effort, the City of Thorne Bay reported that they recently used the Cooperative State Contracts website and saved a significant amount of money while purchasing material for construction of public restrooms and a shower facility. 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 at a meeting information regarding the RUBA management assessment process. The 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, 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. Regulatory Commission of Alaska: RUBA staff provided assistance to the City of Adak with a Regulatory Commission of Alaska (RCA) letter stating that the RCA planned a hearing on the disposition of the City’s certificate to operate the electric utility. RUBA staff met with Adak Mayor Whitehead and RCA Administrative Law Judge T. W. Patch in December to discuss the numerous unresolved issues raised by the RCA and other agencies and the City’s recent efforts to become responsive and compliant. In response to the City’s letter, The RCA has granted a ninety-day extension with the understanding that several documents verifying recent election results, the City’s creation of the Compliance Committee, and the status of compliance deficiencies from prior RCA orders will be filed with the RCA. The loss of the City’s ability to produce and sell electric would directly affect their ability to provide sanitation services. wn ' RUBA Quarterly Report — 2nd Quarter FY08 - RUBA Program Scope of Report Alaska Water Wastewater Management Association (AWWMA): The RUBA Program Manager also serves as the Secretary to the Executive Board of AWWMA. In that capacity, RUBA attended the fall executive board meeting held in Anchorage December 14, 2007. The agenda allowed the action item of a presentation by the RUBA Program Manager regarding the Certified Utility Manager Program. The pitch was made for RUBA to provide AWWMA a grant to maintain the training data base and monitor the manager tests upon completion of course materials. AWWMA questioned their liability in signing the certification upon completion of training. They did not appear to support continued cooperation in this effort. RUBA will continue to pursue other avenues of support for the Certified Utility Manager Program. U.S. Department of Treasury: Dillingham RUBA staff traveled to Anchorage on October 5, 2007 to participate in a planning meeting for a pilot program funded by the U.S. Department of Treasury. Financial Education in Rural Alaska is a project being implemented by a federal-state partnership that is part of an ongoing effort of the Department of Treasury to promote financial literacy and have more Americans use financial institutions to increase their savings and improve money management skills. The Bristol Bay region has been identified as the project-site. The aim of the pilot project is to develop strategies that can be used around the state and across the country. A secondary goal for RUBA is to identify financial processes to assist in billing and collections for sanitation services. Meeting participants included the state Division of Banking and Securities, Division of Community & Regional Affairs, statewide non-profit agencies, and private financial institutions. Performance Goals Staff Development: Dillingham and Anchorage RUBA staff attended a course “The Essentials of Collections Law” in Anchorage. This course provided a one-day update on collecting debt effectively, safely and legally; using a mutual release agreement to your collection advantage; organizing and documenting procedures for collections; and, the high cost and consequence of violating a collections regulation. RUBA staff prepared and shared a report of lessons learned with other RUBA staff upon completion of the class. Fairbanks, Anchorage and Dillingham RUBA staff attended a live web-cast audio conference titled: Using Video and Multimedia Effectively in Power Point.” The speaker encouraged the use of, and demonstrated how to incorporate, movie clips and videos in Power Point presentation. This may be a useful technique for an organization running a continuous loop at an unmanned kiosk in a convention setting, but not worth the enormous amount of time, energy, and expertise to set up for any regular training setting. Quality varies directly depending on the type of equipment (high definition projector for instance) number of people hooked up to receive the video simultaneously, etc. In certain cases, even during our web- cast, the image would freeze or appear jerky or fuzzy. RUBA Quarterly Report — 2nd Quarter FY08 -6- RUBA Program Scope of Report Fairbanks RUBA staff attended a two-day publisher course and a two-day Power Point course in Fairbanks. The lessons learned will be applied to the continuing development of RUBA publications and training materials. RUBA staff from the seven regional offices attended a four-day annual staff training and development retreat in Anchorage. During the retreat, staff received information on numerous topics specific to the RUBA program and participated in a one-day training session on conflict resolution. RUBA staff are frequently called upon to mediate and facilitate between utility service providers and customers, governing bodies and citizens, and employers and employees while in communities providing on-site assistance. 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 63 trips to 40 communities during the second quarter of FY08. Sixteen RUBA staff spent a total of 182 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 and Follow-up Assistance: For the second quarter of FY08, RUBA staff completed 137 management capacity assessments or reassessments. Of the 137 communities, 62 meet all essential indicators, including nine that did not previously meet all essential indicators and 15 that improved essential indicators. In addition, 13 communities meet all sustainable indicators with 11 communities showing a gain in the number of sustainable indicators not met. 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. BBAHC grant administrators and RUBA grant administrators are working out a difference of how to include indirect costs in the proposed grant. Alaska Rural Utilities Collaborative: A grant was drafted and presented to Alaska Native Tribal Health Consortium (ANTHC) who will take over and expand statewide the Rural Utilities Cooperative (RUC). Presently the RUC only serves utilities within the RUBA Quarterly Report — 2nd Quarter FY08 -7- 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. ANTHC and RUBA are working out a difference of how to include indirect costs in the grant. QuickBooks Pro Assistance: The RUBA program has contracted Turnagain Press to provide on-site installation and training for three RUBA communities per year. Turnagain Press travels to each community a total of three trips approximately thirty days apart to work one-on-one with two utility staff. RUBA staff follows a nomination process to identify which communities receive this assistance. This quarter, Turnagain Press completed the third trip to Nondalton to complete set-up of the utility and training of utility staff. Turnagain Press and RUBA staff also made the first two trips to Port Lions to install and begin set-up and training. Additionally, Turnagain Press has provided telephone and web-based support. Communities who have received the on-site installation and subsequent training have report 100% satisfaction with the contractor’s ability to resolve their QuickBooks related issues. Training Classes Presented: Nome: On November 12-16, 2007, a 24-hour QuickBooks Pro computerized accounting class was presented in Nome. Nine students from Brevig Mission, Elim, Koyuk, Nome, Savoonga, and Teller participated in the training. The course was instructed by contractors Pati Crofut and Joanna Knapp of Turnagain Press under an ongoing contract with the RUBA program. The course focused on accounting for local governments and helped students develop accounting skills through hands-on exercises. Course topics included creating a chart of accounts, setting up and working with a budget, billing, payroll, bank reconciliations, and more. Each student received a QuickBooks Pro instruction manual developed specifically for local government accounting practices. The instructors also provided one-on-one support to communities who had brought copies of their current QuickBooks Pro files. Fairbanks: On November 5-9, 2007, a 24-hour QuickBooks Pro computerized accounting class was presented in Fairbanks. Nine students from Fort Yukon, Chalkyitsik, Tanana, Circle, Nondalton, Minto and Manley Hot Springs participated in the training. The course was instructed by contractors Pati Crofut and Joanna Knapp of Turnagain Press under an ongoing contract with the RUBA program. The course focused on accounting for local governments and helped students develop accounting skills through hands-on exercises. Course topics included creating a chart of accounts, setting up and working with a budget, billing, payroll, bank reconciliations, and more. Each student received a QuickBooks Pro instruction manual developed specifically for local government accounting practices. The instructors also provided one-on-one support to communities who had brought copies of their current QuickBooks Pro files. RUBA Quarterly Report — 2nd Quarter FY08 -8- RUBA Program Scope of Report Scholarships for Utility Staff Training: As a result of higher expenses to provide rural utility services, many utilities were forced to cut their budgets in the area of training. RUBA has established a 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. Coordination with Sanitation Entities and Policy Groups Conference Presentations: This quarter, RUBA staff attended the Alaska Rural Water Association conference in Anchorage and presented information concerning business plan development and the RUBA management assessment process. RUBA staff also attended the Alaska Water Wastewater Management Association Fall Executive Board meeting and presented information regarding the development of the Utility Managers Certification Program. RUBA Program Activity Map October 1 through December 31, 2007 Legend * OnSite Assistance + OnSite RUBA Assessment @ = QuickBooks Pro Training Russian Miseion © RUBA Quarterly Report — 2nd Quarter FY08 -9- October — November — December 2007 2" Quarter FY08 - RUBA Report Table of Contents Akiak.. Alakanuk... Anchor Point.... Kasigluk.... Larsen Bay Marshall . Mekoryuk.. Nanwalek Newhalen Nightmute . Nikolaevsk .... Scammon Bay .. Shageluk.... Stevens Village Tuluksak.... 7 Vakutat oe... cccceccccececesecsecsessessessesscsscssessueecssnesscsesucsucsesuessesscuesussesaesussseueaesusacesesucseesesessessesecees 171 October — November — December 2007 2" Quarter FY08 - RUBA Report Table of Contents Non-RUBA Communities October — November — December 2007 2” Quarter FY08 - RUBA Report Community Activity Reports Second Quarter FY08 October 1 — December 31, 2007 October — November — December 2007 2” Quarter FY08 - RUBA Report Akiak Activity Report Community Overview Lead RUBA Staff: Flora Olrun, Bethel Office oy 2003 Population: 378 Region: Lower Kuskokwim od Local Government: Unincorporated “z NV ~-* Pesan AP A new well, water treatment plant and storage tank = were recently completed. The school and Akiak Native community building are connected directly to the water plant. The school pays for water services on a quarterly basis to the Native Community of Akiak. Individual wells, septic systems and plumbing were installed in 14 HUD homes during 1997. The community has plans to install plumbing for 53 homes for water and sewer services. The City provides septic pumping service at least once or twice a year to some residential and commercial buildings. Most residents are dependent upon the washeteria for laundry services. Residents who haul water purchase the water with prepaid tokens from the Native Community of Akiak. The washeteria is managed by the Akiak Native Community and is located in their building. RUBA Activity This Reporting Period Division of 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. After the site visit, the Akiak Native Community Executive Director and Bookkeeper made considerable progress to correct deficiencies with the essential indicators. October — November — December 2007 2" Quarter FY08 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No Xl All revenue and expenses for the utility are listed in the utility budget. &X The utility has adopted a balanced realistic budget. 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. ® The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators X The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. Xl YTD revenues are at a level equal to or above those budgeted. X YTD expenditures are at a level equal to or below those budgeted. X A monthly manager’s report is prepared. Xx Budget amendments are completed and adopted as necessary. Finances Comments: On November 7, 2007 Akiak Native Community approved the 2008 Water Treatment Plant and Laundry budget. The budget is balanced and realistic, and contains sufficient revenues to cover operating expenses. Monthly financial expenditure reports are being submitted to the council based on the approved 2008 budget. The Tribe had a large, delinquent electricity bill. On November 7, 2007 written notification was received by the Bethel office, from the City of Akiak stating they zeroed out the bill Akiak Native Community ordered 5000 gallons of fuel. Fuel is stored at the water house which has a thousand gallon storage tank. The remainder of the fuel is stored at the bulk fuel tank farm which is owned by the Native Community of Akiak. If additional fuel is needed, it is purchased from the local village corporation. Accounting Systems Essential Indicators Yes No 1] 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. KKK kX 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. Hues October — November — December 2007 2" Quarter FY08 - RUBA 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 X The utility has a system to accurately calculate, track, and report payroll tax liabilities. Xx The utility is current on filing tax reports. X The utility is current on making tax deposits. x 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. Personnel System Essential Indicators Yes No X The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators XxX The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. X The utility has adequate written job descriptions for all positions. XX The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. The utility provides training opportunities to staff as needed and available. xX & RMR -9- October — November — December 2007 2” Quarter FY08 - RUBA Report Personnel System Comments: Workers’ compensation is current and posted. The insurance is through Liberty Northwest and is good through 1/12/2009. The Native Community of Akiak has a personnel policy which was completed by a consultant in 2003. The Executive Director expressed a need for the personnel policy to be updated. Evaluations are informal using the personnel policy as a parameter. The evaluations should comply with the policy and be documented in each individual staff personnel file. All training certificates are placed in staff files. The Executive Director provides adequate opportunities for staff to attend training sessions. On December 26, 2007 the Executive Director called and said the personnel files are now updated and contain I-9's, letters of acceptance and hire. Organizational Management Essential Indicators Yes No X The entity that owns the utility is known and the entity that will operate the utility is set. XX The policy making body is active in policy making of the utility. The policy making body enforces utility policy. The utility has an adequately trained manager. The utility has an adequately trained bookkeeper. The utility has an adequately trained operator(s). The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators XR X The utility has adopted an organizational chart that reflects the current structure. Xl The policy making body meets as required. X The utility complies with the “Open Meetings Act” for all meetings. Organizational Management Comments: 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. -10- October — November — December 2007 2" Quarter FY08 - RUBA Report Operation of Utility Essential Indicators Yes No X The utility operator(s) are actively working towards necessary certification. X The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. Xx 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). Xl] 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. RRRRK 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 | violation was in February, 2007. They should return to compliance by February, 2008. 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: 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. -11- October — November — December 2007 2" Quarter FY08 - RUBA Report Alakanuk Activity Report Community Overview Lead RUBA Staff: Paul Chimiugak, Bethel Office 2003 Population: 678 Region: Lower Yukon od Local Government: 2" Class City “2 Vs pO * The City of Alakanuk operates the piped water and sewer canna 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 contacted Alakanuk several times this quarter while monitoring the RUBA management assessment. Funded sanitation projects for Alakanuk continue to be withheld as Alakanuk does not meet essential indicators of the management assessment. While the city staff did provide a 2008 budget and a monthly finance report, the revenue information was not included. The City has not been successful in securing workers' compensation insurance. RUBA staff facilitated negotiations with an insurance company which resulted in lowering the premiums and coverage, however, the City was unable to pay the reduced quote. October — November — December 2007 2" Quarter FY08 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No &] Allrevenue and expenses for the utility are listed in the utility budget. XX The utility has adopted a balanced realistic budget. x Monthly financial reports are prepared and submitted to the policy making body. XX) The utility is current in paying all water/wastewater electric bills. XK The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. XK The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators XJ The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. XX YTD revenues are at a level equal to or above those budgeted. XX YTD expenditures are at a level equal to or below those budgeted. & A monthly manager’s report is prepared. XX] Budget amendments are completed and adopted as necessary. Finances Comments: The City completed the FY08 budget; however, without the revenue portions included in monthly finance reports, RUBA is unable to know if the budget is balanced and realistic. The FY06 certified financial statement is still required prior to receiving the FY08 Community Energy Assistance Program funds. Accounting Systems Essential Indicators Yes No X The utility has adopted a collection policy and actively follows it. x) The utility bills customers on a regular basis. &] An accounts receivable system is in place which track customers and reports past due accounts and amounts. & An accounts payable system is in place. xX The payroll system correctly calculates payroll and keeps records x A cash receipt system is in place that records incoming money and what it was for. ; x The utility has a cash disbursement system that records how money was spent. Sustainable Indicators A chart of accounts is used that identifies categories in a reasonable, usable manner. XX Monthly bank reconciliation’s have been completed for all utility accounts. &X The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. ray ace October — November — December 2007 2" Quarter FY08 - RUBA Report Accounting System Comments: The City sends out monthly statements to customers, and the water plant operator has been disconnecting delinquent customers. Bank reconciliations have not been completed in recent months. Purchase order approval procedures need to be updated or implemented. The bookkeeper has not completed revenue reports. Tax Problems Essential Indicators Yes No X The utility has a system to accurately calculate, track, and report payroll tax liabilities. X The utility is current on filing tax reports. XX The utility is current on making tax deposits. XX] Ifthere are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The City is current with quarterly payroll tax reports according to the IRS; however, there is a past due balance. The IRS removed a tax lien this quarter. Alakanuk will need to continue monthly reports and deposits and negotiate with the IRS regarding a payment plan for past due amounts. Personnel System Essential Indicators Yes No XI The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators X The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. X The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. XI The utility provides training opportunities to staff as needed and available. &% Wk 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 2007 who is very organized and dependable. He has been encouraged to begin an evaluation process of present employees. I-9 forms need to be completed by the city employees. October — November — December 2007 2" Quarter FY08 - RUBA Report Organizational Management Essential Indicators Yes No xX X x xX XxX Xx X The entity that owns the utility is known and the entity that will operate the utility is set. The policy making body is active in policy making of the utility. The policy making body enforces utility policy. The utility has an adequately trained manager. The utility has an adequately trained bookkeeper. The utility has an adequately trained operator(s). The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators & & & The utility has adopted an organizational chart that reflects the current structure. The policy making body meets as required. 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 The utility operator(s) are actively working towards necessary certification. The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators Yes No X XxX X X X xX X XxX Xx XxX X The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Consumer Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. - 16- October — November — December 2007 2" Quarter FY08 - RUBA 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. The utility is on the SNC list for Surface Water and Stage | violations. The earliest possible return to compliance would be in June 2008. 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. -17- October — November — December 2007 2" Quarter FY08 - RUBA Report Anchor Point Activity Report Community Overview Lead RUBA Staff Melissa Taylor, Anchorage Office 2003 Population: 1792 Region: Kenai Peninsula od Local Government: Unincorporated ae LB Most residents have individual wells, septic tanks, and Pat, ot OO 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 assignments changed this quarter and no travel to Anchor Point was completed. Anchor Point staff 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 the Village Safe Water engineer to get construction funding for the water system upgrades. The contractor has been wrapping up the water main work and will be focusing 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. -19- October — November — December 2007 2" 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. xX 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. xX The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. x The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. YTD revenues are at a level equal to or above those budgeted. YTD expenditures are at a level equal to or below those budgeted. A monthly manager’s report is prepared. Budget amendments are completed and adopted as necessary. HRXX 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 Xx] The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. x An accounts receivable system is in place which track customers and reports past due accounts and amounts. x An accounts payable system is in place. Xl The payroll system correctly calculates payroll and keeps records x A cash receipt system is in place that records incoming money and what it was for. 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. x The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. Accounting System Comments: The 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. -20- October — November — December 2007 2" Quarter FY08 - RUBA Report Tax Problems Essential Indicators Yes No Xl The utility has a system to accurately calculate, track, and report payroll tax liabilities. XX The utility is current on filing tax reports. &X The utility is current on making tax deposits. xX If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: At the time of publication of this report, it was unknown if the Anchor Point Safe water Corporation is 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. The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. X The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. X The utility provides training opportunities to staff as needed and available. X KK Xe Personnel System Comments: The utility staff has been working on a personnel policy for the utility. October — November — December 2007 2" Quarter FY08 - RUBA Report Organizational Management Essential Indicators Yes No The entity that owns the utility is known and the entity that will operate the utility is set. The policy making body is active in policy making of the utility. The policy making body enforces utility policy. The utility has an adequately trained manager. The utility has an adequately trained bookkeeper. The utility has an adequately trained operator(s). The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators X 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 Meetings Act” for all meetings. HRRRRR 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 Xl The utility operator(s) are actively working towards necessary certification. X The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators X The manager receives a monthly O&M report from the utility operator and routinely “spot 2m checks” the facilities to see that the maintenance items are being completed. x The utility has a safety manual and holds safety meetings. Xl The utility is operating at the level of service that was proposed. X The operator provides status reports to the manager on a routine basis. xX) The utility has completed and distributed its Consumer Confidence Report (CCR). X The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. XX] The utility maintains a critical spare parts list. 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. October — November — December 2007 2" Quarter FY08 - RUBA Report Ee port Angoon Activity Report Community Overview Lead RUBA Staff Lawrence Blood, Juneau Office 2003 Population: 497 Region: Southeast od Local Government: 2" Class City Angoon is located in Southeast Alaska on Admiralty Island and is connected via the Alaska Marine Highway System. The City of Angoon operates and manages a piped water and sewer system. The city council is the policy making body for the utility. Surface water is derived from the Tillinghast Lake Reservoir, is treated, and piped throughout the community. The City of Angoon has operated a piped water system since 1977. Greater than 95% of homes have complete plumbing. Piped sewage is processed at a secondary treatment plant that flows to an ocean outfall. On a weekly basis, the City collects and deposits refuse at a municipal landfill located approximately two miles from Angoon. The Inside Passage Electric Cooperative (IPEC) provides electricity. RUBA Activity This Reporting Period No significant RUBA activities occurred in the community this quarter. With the resignation of the mayor, city clerk, finance staff and one council member, efforts to address deficient indicators were fruitless. The political situation in Angoon seems to be settling down with completion of the municipal election. A new mayor and three council members were elected. October — November — December 2007 2” 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. XI The utility has adopted a balanced realistic budget. XX Monthly financial reports are prepared and submitted to the policy making body. XX] The utility is current in paying all water/wastewater electric bills. 1 The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. X] The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators XX The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. & YTD revenues are at a level equal to or above those budgeted. YTD expenditures are at a level equal to or below those budgeted. & A monthly manager’s report is prepared. &X Budget amendments are completed and adopted as necessary. Finances Comments: The City continues to struggle with being able to meet payroll, all of their accounts payable, including making electric payments on time, and purchasing heating fuel. In the past, the City has had their electricity disconnected due to non-payment. Going into 3rd quarter FY-08, 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 FY08 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. October — November — December 2007 2" Quarter FY08 - RUBA Report SSE EE een NOE Accounting Systems Essential Indicators Yes No X The utility has adopted a collection policy and actively follows it. X] The utility bills customers on a regular basis. An accounts receivable system is in place which 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. XX Monthly bank reconciliation’s have been completed for all utility accounts. XX] The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. WkRR Accounting System Comments: The council 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 X The utility has a system to accurately calculate, track, and report payroll tax liabilities. XX The utility is current on filing tax reports. XX The utility is current on making tax deposits. XX] If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: 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. October — November — December 2007 2" 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. 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: 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. XX] The utility provides training opportunities to staff as needed and available. Xk X 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 xX The entity that owns the utility is known and the entity that will operate the utility is set. x The policy making body is active in policy making of the utility. XX The policy making body enforces utility policy. &X The utility has an adequately trained manager. The utility has an adequately trained bookkeeper. XX The utility has an adequately trained operator(s). x The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators XX] The utility has adopted an organizational chart that reflects the current structure. xX The policy making body meets as required. X The utility complies with the “Open Meetings Act” for all meetings. Organizational Management Comments: There has been recent employee turnover in the City's bookkeeper and accounting clerk positions. The bookkeeper position is currently vacant. Currently, the City has no employees trained in QuickBooks. The RUBA program is making arrangements to send a staff member to QuickBooks training in Kodiak during 3rd Quarter FY-08. 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. October — November — December 2007 2 Quarter FY08 - RUBA Report Operation of Utility Essential Indicators Yes No X The utility operator(s) are actively working towards necessary certification. Xl The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators XX] The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. x The utility has a safety manual and holds safety meetings. XX] Utility facilities have not suffered any major problems/outages due to management issues that are unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Consumer Confidence Report (CCR). XI The utility is not on the Significant Non-Compliance (SNC) list. XX The utility maintains an inventory control list. XX The utility maintains a critical spare parts list. Hk Operation of Utility Comments: The utility is on the Significant Non-Compliance (SNC) list because it does not meet the Long-term | / Enhanced surface water treatment rule and was issued a notice of violation for failure to report the results of regular turbidity and chlorine monitoring and for failing to have an operator certified at the appropriate level. The community was able to address one of the violations by acquiring a working chart recorder that was surplus equipment from the City of Kake and by filing turbidity and chlorine reports on a timely basis and on the appropriate forms. The violation concerning having an operator at the appropriate level has yet to be rectified. The City will need to either hire a certified level II operator or seek approval of an Alternate Method of Supervision Plan (AMOS). The City has taken the initial steps of putting together a draft 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. RUBA Activities For The Coming Quarter RUBA activities for the coming quarter will include: 1) Assist in the completion of an FY08 Budget. 2) Acquire worker's compensation insurance. 3) Addressing the deficient essential indicators that were identified in the latest assessment of management capacity indicators. 4) Continue to provide support for increasing collection rates and pursuing delinquent water utility accounts. The RUBA program will provide a training grant to send a staff member to QuickBooks training in Kodiak. October — November — December 2007 2” Quarter FY08 - RUBA Report Chignik Activity Report Community Overview Lead RUBA Staff: Earl Gibson, Anchorage Office 2003 Population: 95 Region: Alaska Peninsula Local Governments: 2"! Class City od Water is supplied by Indian Creek, which has a dam and a reservoir. Water is treated and piped into most of the homes and the school, and a well is available for back-up water supply. A second system serves the Trident fish processor, the airport area, and a few homes, and utilizes a groundwater well as a source. A project now underway will eliminate the dual system by extending a new mainline from a new storage tank at one end of town to the airport at the other end of town. Improvements to the treatment plant will include new filters and upgraded valving and chemical feed equipment. Piped sewage for most of the community is collected in three group systems into community septic tanks and wastewater is discharged via ocean outfall lines. Approximately 45 homes are served, and the remaining few homes use individual septic tanks. An improvement project now underway will replace the multiple system structure with a unified sewer system for the entire community. A new permitted landfill and access road were recently completed. A study is needed to examine the feasibility of hydroelectric generation at Indian Lake. Electricity is provided by city owned Chignik Electric. RUBA Activity This Reporting Period On 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. October — November — December 2007 2" Quarter FY08 - RUBA Report Capacity Indicators Finances Yes No xX All revenue and expenses for the utility are listed in the utility budget. xX The utility has adopted a balanced realistic budget. XxX 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. 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. XA monthly manager’s report is prepared. X Budget amendments are completed and adopted as necessary. Kk & 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 |, 2007, city staff established a fuel loan account to cover this winter's fuel consumption and will pay in monthly installments with the first payment made in September for October. Accounting Systems Essential Indicators Yes No Xl The utility has adopted a collection policy and actively follows it. Xl The utility bills customers on a regular basis. x An accounts receivable system is in place which track customers and reports past due accounts and amounts. Xl An accounts payable system is in place. Xl The payroll system correctly calculates payroll and keeps records Xx A cash receipt system is in place that records incoming money and what it was for. _w 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. XxX Monthly bank reconciliation’s have been completed for all utility accounts. Xl The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. -30- October — November — December 2007 2" Quarter FY08 - RUBA Report Accounting System Comments: The City uses QuickBooks Pro 2007 for all accounting functions. The council has adopted a water sewer collection policy for the community and is reducing overdue customer debt and disconnecting the water service for non-payment. The utility has 88 customers. All but two customers pay on a regular basis. Of the two customers, one is on a payment plan and the other refuses to pay for their utilities. The City has good credit with Delta Western and Rural Alaska Fuels. The plan is to purchase fuel for the winter on credit. The revenues from the raw fish tax will then be used to pay for fuel on a monthly basis. Tax Problems Essential Indicators Yes No | The utility has a system to accurately calculate, track, and report payroll tax liabilities. X The utility is current on filing tax reports. & The utility is current on making tax deposits. Xl If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: 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 x The utility has a posted workers compensation insurance policy in effect. ih Sustainable Indicators &X The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. XK The utility has adequate written job descriptions for all positions. 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. 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. Xk Taqt October — November — December 2007 2" Quarter FY08 - RUBA Report Personnel System Comments: The City currently has workers' compensation insurance coverage provided by the Alaska Municipal League Joint Insurance Association. There are job descriptions in place for some of the City's employees but descriptions are needed for other city positions. Performance evaluations have not been established or put into place by the city staff, however, at the Mayor's request, a sample evaluation was provided by RUBA. The city has adopted a personnel policy for the community that was revised by the city council on June 15, 1995. As of August 23, 2007, the City's personnel policy is generally adequate but staff agrees the policy should be updated to include an evaluation process. New hires receive a 90- day probation period, and 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 XxX The entity that owns the utility is known and the entity that will operate the utility is set. Xl The policy making body is active in policy making of the utility. X The policy making body enforces utility policy. XxX The utility has an adequately trained manager. Xx The utility has an adequately trained bookkeeper. X The utility has an adequately trained operator(s). 4) The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators XX] The utility has adopted an organizational chart that reflects the current structure. XxX The policy making body meets as required. &X 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. Daa October — November — December 2007 2" Quarter FY08 - RUBA Report Operation of Utility Essential Indicators Yes No X The utility operator(s) are actively working towards necessary certification. X The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators 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. XX] Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). X The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. X HMORRE Operation of Utility Comments: The Bristol Bay Area Health Corporation (BBAHC) provides training money and encourages operators to continue professional growth. BBAHC sends a remote maintenance worker (RMW) periodically to provide local training and support. City operators are taking part in AML/JIA's Loss Control Incentive Program, which brings operators together via teleconference each month for a safety meeting. The water utility is currently listed as a Significant Non-Complier because of low chlorine residuals in samples taken late last year. RUBA Activities for the Coming Quarter: RUBA staff 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. October — November — December 2007 2" Quarter FY08 - RUBA Report Circle Activity Report Community Overview Lead RUBA Staff: Leroy Seppilu, Fairbanks Office 2003 Population: 90 Region: Interior Local Governments: Borough od Most homes haul treated well water from the *R. At washeteria/fire station or the school. Outhouses and Pa OP honey buckets are used for sewage disposal. All homes lack plumbing facilities. A feasibility study and master plan is underway to examine infrastructure alternatives. The landfill is located at mi. 156.5 Steese Hwy. Electricity is provided by Circle Electric Inc. RUBA Activity This Reporting Period Fairbanks RUBA staff and a business utility advisor from the Alaska Native Tribal Health Consortium traveled to Circle on Oct. 30-31, 2007, to conduct a RUBA assessment. Numerous management indicators were found to be deficient. RUBA staff assisted the Tribe in initiating a payment plan with the IRS for past due tax liabilities. RUBA also called State of Alaska Division of Investments regarding properties taken from the Tribe a few years ago to see if the Tribe can rent the former tribal office. Division of Investments requested a rental proposal that, if accepted, would allow the Tribe to rent the office space until the properties are sold. The tribal administrator successfully completed a four day basic QuickBooks Pro training held on Nov. 5-9 in Fairbanks. The instructors were under contract with DCCED's RUBA program to provide the training. ' too Nn ' October — November — December 2007 2” Quarter FY08 - RUBA Report Capacity Indicators Finances Yes No XX All revenue and expenses for the utility are listed in the utility budget. Kl The utility has adopted a balanced realistic budget. X Monthly financial reports are prepared and submitted to the policy making body. The utility is current in paying all water/wastewater electric bills. Pe &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. 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. X Xd YTD expenditures are at a level equal to or below those budgeted. A monthly manager’s report is prepared. &X] Budget amendments are completed and adopted as necessary. Finances Comments: The Tribe does not make an annual budget for its utility or for the Tribe's departments as a whole. The Tribe does not administer any of its federal or state grants because of past problems with grants that resulted in loss of grant funds. All the grants are currently administered by the Tanana Chief's Council. The Tribe does not have a bank account due to IRS having frozen their accounts for past due liabilities. The Tribe operates the washeteria with the sale of tokens for $2 each and $0.25 a minute for showers. The revenues average $400 per month and are used for operations and maintenance. The Tribe also sells treated water to the school at a flat rate of $1500 a month for 12 months per year. This revenue is passed through to TCC as part of the agreement for financial management. In turn, TCC pays for fuel and electric consumption. There are no monthly financial reports generated. The Tribe's fuel plan is the agreement with TCC for fuel to be provided. Accounting Systems Essential Indicators Yes No Xl The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. 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. I & The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators XX A chart of accounts is used that identifies categories in a reasonable, usable manner. XX Monthly bank reconciliation’s have been completed for all utility accounts. KX] The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. KKK WX - 36- October — November — December 2007 na Quarter FY08 - RUBA Report Accounting System Comments: The Tribe has a utility ordinance for the washeteria and water treatment plant. RUBA was unable to confirm that it was ever adopted. The Tribe bills one customer - the school. The school district encouraged the Tribe to bill it for the water purchases for recordkeeping purposes. The water bills are manually generated and sent to the school district monthly. Tax Problems Essential Indicators Yes No Xi XXX 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 Tribe has significant past due tax liabilities. The Tribe will contact the IRS and negotiate a repayment plan. While on-site, RUBA assisted the Tribe in making the initial contact with IRS to discuss the issue. The Tribe is also behind on submittal of Employment Security Contributions (ESC) quarterly tax reports even though it is not required to pay the taxes. The Employment Division stated reports with zero balances must be signed and submitted. Personnel System Essential Indicators Yes No Xl The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators &X Xk We He X The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. The utility provides training opportunities to staff as needed and available. Personnel System Comments: All of the Tribe's personnel policies and insurance (limited to paid tribal staff) continue to be under the control of TCC. October — November — December 2007 2” Quarter FY08 - RUBA Report Organizational Management Essential Indicators Yes No Kl The entity that owns the utility is known and the entity that will operate the utility is set. x The policy making body is active in policy making of the utility. The policy making body enforces utility policy. The utility has an adequately trained manager. The utility has an adequately trained bookkeeper. The utility has an adequately trained operator(s). Xl The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators XX The utility has adopted an organizational chart that reflects the current structure. xX The policy making body meets as required. &X The utility complies with the open meeting act for all meetings. MRK Organizational Management Comments: A couple of vacant Tribal Council seats were filled recently and the previous first chief was re-elected. The city administrator was recently appointed and needs training, especially in tribal finances. The Tribe recently appointed a water plant operator and he will also need training. 238. October — November — December 2007 2 Quarter FY08 - RUBA Report Operation of Utility Essential Indicators Yes No Xl The utility operator(s) are actively working towards necessary certification. XX] The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators 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. XX The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). X] 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. Xk & Operation of Utility Comments: A new water plant operator was hired in September 2007 and will require training. The Tribe is currently on the SNC list for Stage 1 violations. The new operator is working with the Remote Maintenance Worker to correct this. RUBA Activities for the Coming Quarter: RUBA staff plan a couple of trips in the next quarter to meet with the Tribal Council to determine what needs to be done to meet essential and sustainable indicators identified ina RUBA assessment. The Ist chief is willing to work with RUBA on meeting the indicators and we hope to have a RUBA agreement signed. I expect at least 3 trips to the community for RUBA work. -39- October — November — December 2007 2" Quarter FY08 - RUBA Report 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 ed The City of Emmonak owns and operates the piped “Re po water/sewer system. The City also owns and operates PR, et the washeteria/sauna. A new washeteria construction is in the last stage of completion. The City council is the policy making body for this utility. Water is derived from the Yukon river and is treated. Piped water and sewer services are provided to most of the residents of Emmonak. Currently, there are 206 connected to this system. Out of those connected, there are 185 residential homes and 23 businesses in service. The next water/sewer Village Safe Water funding will connect six new Emmonak tribal housing units. RUBA Activity This Reporting Period RUBA staff did not travel to Emmonak this quarter, however maintained contact via email and phone. RUBA staff had received information regarding a septic system failure that resulted in exposed raw sewage and the need for inoculations to protect public health. When contacted, the manager stated that Alaska Village Electric Cooperative (AVEC) had discontinued electric service to homes for non- payment and the homes water/wastewater systems froze which affected the community system. RUBA staff also provided assistance with a local elections issue. The City has provided election services to the Yukon Delta Fisheries Development Association (YDFDA) board at the same time they hold the city regular elections. A candidate for election took issue with the results and YDFDA requested a repeat election. RUBA advised the City to ensure that YDFDA would pay for the election expenses incurred. Emmonak continues to be well managed with a professional proactive manager amd staff. They meet all essential indicators at this time. -41- October — November — December 2007 2” 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. XI Budget amendments are completed and adopted as necessary. kX & XXX Xk & 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. Bethel RUBA staff was on leave a portion of the quarter and it is unknown if documentation was received to support the indicators. 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. Xl An accounts payable system is in place. Xl The payroll system correctly calculates payroll and keeps records Xl A cash receipt system is in place that records incoming money and what it was for. Xl The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators xX A chart of accounts is used that identifies categories in a reasonable, usable manner. XX Monthly bank reconciliation’s have been completed for all utility accounts. xX] The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. 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. October — November — December 2007 2" Quarter FY08 - RUBA Report Tax Problems Essential Indicators Yes X RIKI The utility has a system to accurately calculate, track, and report payroll tax liabilities. The utility is current on filing tax reports. The utility is current on making tax deposits. If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The IRS has deemed the City compliant with tax reporting and deposits. Stable staff and sound accounting practices make Emmonak a role model for tax reporting. Personnel System Essential Indicators Yes x The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators X Kk ww & &X The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. The utility provides training opportunities to staff as needed and available. 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. October — November — December 2007 2" Quarter FY08 - RUBA Report Organizational Management Essential Indicators Yes No X The entity that owns the utility is known and the entity that will operate the utility is set. The policy making body is active in policy making of the utility. The policy making body enforces utility policy. The utility has an adequately trained manager. The utility has an adequately trained bookkeeper. The utility has an adequately trained operator(s). The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators ® 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. NXKKE 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 XxX 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. Xk & Hk -44- October — November — December 2007 2" Quarter FY08 - RUBA Report Operation of Utility Comments: After the lead operator resigned in April 2007, a new operator was hired who is Level I certified; the Administrator would like to hire a Level II operator. RUBA staff recommended he call Yukon Kuskokwim Health Corporation/Office of Environmental Health 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. October — November — December 2007 2” Quarter FY08 - RUBA Report False Pass Activity Report Community Overview Lead RUBA Staff: Earl Gibson, Anchorage Office 2003 Population: 69 Region: Aleutians Local Government: 2" Class City located within the Aleutians East Borough. od City provided services include piped water, electric, V seen, eee refuse collection, landfill, public safety office, volunteer fire, dock, airport (state contract), roads, community hall, youth center, Alaska Rural Communications Service (ARCS) television broadcast support, library, boat haul-out, pet registration, driver licenses, and voter registration. The City also owns and maintains the buildings housing the post office, library, and clinic. Construction of a small boat harbor and fish processor is nearly complete. 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. Most residents have individual septic tanks, however many are experiencing leach field failure. While not currently operating, wastewater from seafood processing flows directly into an outfall line. A community-wide septic system is designed and funding for construction is being sought. RUBA Activity This Reporting Period Contact with the community this quarter was via email and telephone. The city clerk reports that a new maintenance employee was recently hired and there is concern that the school will close next year if student enrollment does not increase. A draft budget amendment is being prepared for presentation to the council at the January meeting. The community continues to meet all essential indicators. -47- October — November — December 2007 2™ Quarter FY08 - RUBA Report Capacity Indicators Finances Essential Indicators Yes X Xx kl XX X X X xX operating expenses. Sustainable Indicators 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 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. A budget amendment is being prepared for presentation to the council in January 2008. Accounting Systems Essential Indicators Yes XRKK whe S c a kkk The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. An accounts receivable system is in place which track customers and reports past due accounts and amounts. An accounts payable system is in place. The payroll system correctly calculates payroll and keeps records A cash receipt system is in place that records incoming money and what it was for. The Utility has a cash disbursement system that records how money was spent. tainable Indicators A chart of accounts is used that identifies categories in a reasonable, usable manner. Monthly bank reconciliation’s have been completed for all utility accounts. The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. 2485 October — November — December 2007 2” Quarter FY08 - RUBA Report Se ee pone 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 X The utility has a system to accurately calculate, track, and report payroll tax liabilities. Xl The utility is current on filing tax reports. Xl The utility is current on making tax deposits. bs If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The City remains current with IRS and Department of Labor payroll reports and deposits. Personnel System Essential Indicators Yes No Xl The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators Xx The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. &X The utility has adequate written job descriptions for all positions. X The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. ® The utility has an adequate written hiring process. KX] The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. X The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. xX The utility provides training opportunities to staff as needed and available. 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, however not all contain a letter of acceptance. -49- October — November — December 2007 2” Quarter FY08 - RUBA Report Organizational Management Essential Indicators Yes No X The entity that owns the utility is known and the entity that will operate the utility is set. The policy making body is active in policy making of the utility. The policy making body enforces utility policy. The utility has an adequately trained manager. The utility has an adequately trained bookkeeper. The utility has an adequately trained operator(s). The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators 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. XXXRew 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 budget constraints. Operation of Utility Essential Indicators Yes No x The utility operator(s) are actively working towards necessary certification. x The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators &X The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). X= The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. XWOXKK & Operation of Utility Comments: The City has two utility operators; one is a long-term employee, and the other was recently hired and moved to the community. The regional RMW makes frequent trips to the area and assists operators that are working to become certified. The utility operator presents a monthly report verbally or written at each council meeting. October — November — December 2007 2" Quarter FY08 - RUBA Report 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. October — November — December 2007 2" 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 storage tanks. One hundred twenty-one homes and 13 public and commercial buildings including the school and washeteria are now connected to the piped water and sewer system. Forty three homes in the original town site still haul water and honey buckets. A feasibility study is complete. A new water source and additional water storage tanks are needed to ensure no shortages will occur. Significant infrastructure growth is proposed over the next 5 years. The first phase of improvements upgraded the existing infrastructure, including water treatment; lift station upgrades, and a 2.2 million gallon water storage tank. The second phase will be to develop a well field 2 miles outside of town at the south end of Troutman Lake, and construct a summer only raw water transmission line. The third phase will be water and sewer service to Old Town (approximately 43 service connections). Ultimately, there will be 174 residential services. RUBA Activity This Reporting Period Nome RUBA staff was informed in October that the utility clerk resigned after approximately six months of employment with the water and sewer utility. The city clerk successfully completed a payroll tax workshop sponsored by the RUBA program in partnership with Kawerak, Inc. and the tribal division of the Internal Revenue Service (IRS) in October. Due to bad weather conditions, the new utility clerk and city clerk were not able to attend QuickBooks training in Nome the week of November 12-16, 2007. Kenneth James, Water Plant Operator completed Lift Station Operations training in Nome on October 30- November 1, 2007. In partnership with Village Safe Water, the City made lift station upgrades this summer and will construct a large water storage tank during the summer of 2008. October — November — December 2007 2" 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. xX Monthly financial reports are prepared and submitted to the policy making body. xX The utility is current in paying all water/wastewater electric bills. Xl The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. xX The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators X The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. X YTD revenues are at a level equal to or above those budgeted. XX YTD expenditures are at a level equal to or below those budgeted. 4} A monthly manager’s report is prepared. J Budget amendments are completed and adopted as necessary. Finances Comments: The council adopted the FY 08 budget in June 2007. Monthly financial reports are being prepared by the new utility clerk and submitted to the council. In the past, RUBA staff worked with the utility clerk on improving these reports. A rate increase implemented by the city council in late February 2007 has greatly improved the utility's overall financial picture. 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. October — November — December 2007 2" Quarter FY08 - RUBA Report —$—$—$—$—$—$———————————— eee eee ee Pont 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. XI An accounts receivable system is in place which track customers and reports past due accounts and amounts. An accounts payable system is in place. xX 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. 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. X Monthly bank reconciliation’s have been completed for all utility accounts. X The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. Accounting System Comments: The 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 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. X 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. October — November — December 2007 2" Quarter FY08 - RUBA Report Personnel System Essential Indicators Yes No a} The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators xX The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. X The utility has adequate written job descriptions for all positions. XX The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. xX The utility provides training opportunities to staff as needed and available. Xx Personnel System Comments: Gambell Water and Sewer is insured by the Alaska Municipal League-Joint Insurance Association (AML-JIA) for fiscal year 2008. The council paid a large portion of the insurance bill with their Community Energy Assistance Program grant. Organizational Management Essential Indicators Yes No & The entity that owns the utility is known and the entity that will operate the utility is set. 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 Xl The utility has adopted an organizational chart that reflects the current structure. X The policy making body meets as required. x The utility complies with the open meeting act for all meetings. NMRX 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. -56- October — November — December 2007 2” Quarter FY08 - RUBA Report Operation of Utility Essential Indicators Yes No Xl The utility operator(s) are actively working towards necessary certification. X The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators 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). X] The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. RROKKREK & 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 January 9-10, 2008 to provide on-site assistance to the new utility clerk and verify financial status. To the extent possible, RUBA staff will continue participation with the Technical Assistance Providers Group via teleconference. Staff from Village Safe Water, Alaska Native Tribal Health Consortium and Norton Sound Health Corporation will begin the pilot study for the new water treatment plant. A 32- hour Personnel Management Workshop will be offered in Nome on February 25-29, 2008. ' on ~s ' October — November — December 2007 2” Quarter FY08 - RUBA Report Golovin Activity Report Community Overview Lead RUBA Staff: Josie Bahnke, Nome Office 2003 Population: 146 Region: Bering Straits Local Government: 2" Class City od The City of Golovin is responsible for the management of the water supply and storage system, as well as water treatment plant and washeteria. In conjunction with Alaska Native Tribal Health Consortium (ANTHC), a community-wide piped water and sewer system was constructed last year. Water is pumped from Chinik Creek, treated, and stored in three heated water storage tanks. A new 1.2 million-gallon water tank has been built and a new washeteria is still under construction. At present there are twenty six commercial and residential customers in the downtown area. RUBA Activity This Reporting Period At the request of the city council, Nome RUBA staff traveled to Golovin on December 4-6, 2007 to work with the utility clerk on financial record keeping and verify RUBA status of essential indicators. On the evening of December 4, Nome and Anchorage staff attended a city council meeting to conduct land use planning and provide a RUBA program update. RUBA staff recommended that the City request a business plan update from the Alaska Native Tribal Health Consortium (ANTHC). According to Brad Blackstone, ANTHC Engineer, there are funds available to update the document. After one year of piped water and sewer service to the community, an updated business plan will use accurate financial information and reflect the actual cost of providing the service. Nome RUBA staff also provided assistance to the new city clerk with personnel issues, utility ordinance enforcement, and ordinance codification. The remote maintenance worker (RMW) and ANTHC operations and maintenance (O/M) consultant traveled to Golovin on October 10, 2007 to go over O/M needs for the water and sewer system with the operator and utility clerk. During the site visit, they also conducted an inspection of the septic tank area and tested the removal of lift station pumps. A follow-up trip to Golovin in March 2008 is being planned. October — November — December 2007 2” 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. Xl The utility has adopted a balanced realistic budget. x Monthly financial reports are prepared and submitted to the policy making body. x The utility is current in paying all water/wastewater electric bills. xX The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. xX The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators ® The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. XK) YTD revenues are at a level equal to or above those budgeted. XX YTD expenditures are at a level equal to or below those budgeted. X A monthly manager’s report is prepared. XX] Budget amendments are completed and adopted as necessary. Finances Comments: The FY08 budget was adopted in July 2007. Financial management of the piped water and sewer 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 Utility Clerk Annette Henry with the improvement of monthly financial reports. Accounting Systems Essential Indicators Yes No X The utility has adopted a collection policy and actively follows it. Xl The utility bills customers on a regular basis. Xl 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. Xl The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators 4} 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. - 60 - October — November — December 2007 2” Quarter FY08 - RUBA Report Accounting System Comments: The utility clerk bills water and sewer customers once a month and water customers when their bill reaches $200.00. Utility staff utilizes both manual (NEBS) and computerized (QuickBooks Pro) accounting systems. Tax Problems Essential Indicators Yes No X The utility has a system to accurately calculate, track, and report payroll tax liabilities. X The utility is current on filing tax reports. Xl The utility is current on making tax deposits. X If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The City of Golovin has prioritized regular tax deposits and filing tax reports to avoid penalties and interest. The IRS has deemed them in compliance at this time. In addition to federal tax compliance, the City is also current with Alaska Department of Labor tax deposits and reporting. Personnel System Essential Indicators Yes No X The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators 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. Xl The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. x The utility has an adequate written hiring process. xX The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. XX] The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. X The utility provides training opportunities to staff as needed and available. Personnel System Comments: The City of Golovin has workers' compensation insurance through AML/JIA for 2008 and is in good standing. The entire council participates and conducts evaluations of city employees. However, this does not include probationary employees. -61- October — November — December 2007 2" Quarter FY08 - RUBA Report Organizational Management Essential Indicators Yes No X The entity that owns the utility is known and the entity that will operate the utility is set. The policy making body is active in policy making of the utility. The policy making body enforces utility policy. The utility has an adequately trained manager. The utility has an adequately trained bookkeeper. The utility has an adequately trained operator(s). The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators X The utility has adopted an organizational chart that reflects the current structure. Xl The policy making body meets as required. X The utility complies with the open meeting act for all meetings. HRN 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. The primary operator has many years experience and is mentoring the secondary operator, who has delivered water in the past. = 62 < October — November — December 2007 2" Quarter FY08 - RUBA Report Operation of Utility Essential Indicators Yes No x The utility operator(s) are actively working towards necessary certification. x The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). XX] The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. XI HMORKK kK Operation of Utility Comments: Wayne Henry is certified in Level 1, Water Distribution. Level 2 certification will be necessary for the new system. Compliance issues are being addressed by the remote maintenance worker. RUBA Activities For The Coming Quarter RUBA staff will schedule travel to Golovin in March to provide on-site training and assistance to the utility clerk and new council. A 32-hour Personnel Management Workshop will be offered in Nome from February 25-29, 2008. -63- October — November — December 2007 2" Quarter FY08 - RUBA Report Gulkana Activity Report Community Overview Lead RUBA Staff: Melissa Taylor, Anchorage Office 2003 Population: 101 Region: Copper River Local Government: Tribal Council ed 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 sewer 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 (PHS) constructed a laundromat in 1976, but it is not functioning -- a washeteria is needed in the community. RUBA Activity This Reporting Period A RUBA staff reassignment was made during this quarter. Jimmy Smith has transferred within the department to the Denali Commission. Melissa Taylor transferred from the Nome regional office to the Anchorage regional office. She will make a trip to Gulkana next quarter to introduce herself and offer continued local government assistance. Gulkana continues to meet all essential management indicators at this time. -65- October — November — December 2007 2m Quarter FY08 - RUBA Report Capacity Indicators Finances Essential Indicators Yes X XXX &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. Sustainable Indicators xX & & & & The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. YTD revenues are at a level equal to or above those budgeted. YTD expenditures are at a level equal to or below those budgeted. A monthly manager’s report is prepared. Budget amendments are completed and adopted as necessary. Finances Comments: The 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 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. Xl An accounts payable system is in place. X The payroll system correctly calculates payroll and keeps records x A cash receipt system is in place that records incoming money and what it was for. _& OU The Utility has a cash disbursement system that records how money was spent. ustainable 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. - 66 - October — November — December 2007 2” Quarter FY08 - RUBA Report Accounting System Comments: The village council hired a QuickBooks consultant to train the staff on the 2007 QuickBooks software. 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 X The utility has a system to accurately calculate, track, and report payroll tax liabilities. Xl The utility is current on filing tax reports. X The utility is current on making tax deposits. Xl If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The Internal Revenue Service (IRS) has indicated the Gulkana Village Council is in compliance with tax filing and deposit requirements. Personnel System Essential Indicators Yes No XxX The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators X The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. x The utility has adequate written job descriptions for all positions. X The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. x The utility has an adequate written hiring process. X The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. X The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. X The utility provides training opportunities to staff as needed and available. Personnel System Comments: The 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. If a 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. -67- October — November — December 2007 a 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 Xl The utility has adopted an organizational chart that reflects the current structure. xX The policy making body meets as required. x The utility complies with the open meeting act for all meetings. XeXReew 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. - 68 - October — November — December 2007 2" Quarter FY08 - RUBA Report Operation of Utility Essential Indicators Yes No Xl The utility operator(s) are actively working towards necessary certification. xX The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators X The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. X The utility has a safety manual and holds safety meetings. X Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. Xl The utility is operating at the level of service that was proposed. X The operator provides status reports to the manager on a routine basis. X The utility has completed and distributed its Community Confidence Report (CCR). XX The utility is not on the Significant Non-Compliance (SNC) list. XX] The utility maintains an inventory control list. X The utility maintains a critical spare parts list. 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. -69- October — November — December 2007 2 Quarter FY08 - RUBA Report Hooper Bay Activity Report Community Overview Lead RUBA Staff: Ken Berlin, Bethel Office 2003 Population: 1,133 Region: Yukon-Kuskokwim Delta 2 Local Governments: 2" Class City ed The City of Hooper Bay operates multiple watering v Preae, tPOr points within the village and a solid waste and wastewater lagoon. The residents self-haul their own garbage and honey buckets. Hooper Bay Utility Advisory Board advises the city council on utility operations and management. The new school's water and wastewater is connected to the new Water Treatment Plant. The watering point at the old town site is connected to processed water from the new water treatment plant. The HPB Traditional Council is pursuing a solid waste management grant to upgrade the existing lagoon. In FY08 over 75 homes will be connected to the water and sewer lines. The water and sewer project is planned to be completed in 2010. RUBA Activity This Reporting Period 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 city administrator received a letter from the Alaska Municipal League Joint Insurance Association (AML/JIA) requesting payment for two legal cases that were filed by individuals in the village and were settled recently. The administrator said the City paid for two other cases last summer and these two new settlements and requests for payment could put the City in a fiscal crisis. A payment plan was worked out with AML/JIA. Allen Joseph, Grants Coordinator for the Association of Village Council Presidents (AVCP) Housing Authority in Bethel contacted LGS staff and requested assistance in locating funding for moving temporary housing units in Hooper Bay. These eight temporary homes were built as a result of the fire disaster last year and need to be moved from a lot on which the AVCP wants to build a multi-family housing unit during the summer of 2008. An estimated $70,000 to $120,000 is needed by the City of Hooper Bay to move the housing. A message was received by RUBA staff from the city administrator regarding high fuel prices. The message related how the Municipal Energy Assistance Program helped the City of Hooper Bay substantially last year but will not be enough this year. It went on to explain projected city deficits caused by increasing costs and the need to find ways to lower fuel expenses for rural Alaskan communities LaaL October — November — December 2007 2" Quarter FY08 - RUBA Report Capacity Indicators Finances Essential Indicators Yes Xl 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. Xl The utility is current in paying all water/wastewater electric bills. X The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. Xi The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. ca Sustainable Indicators Xl The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. Xl YTD revenues are at a level equal to or above those budgeted. x YTD expenditures are at a level equal to or below those budgeted. X A monthly manager’s report is prepared. XxX 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 subsidized when necessary through user fees and the Yukon Fuel lease funds. The city administration of Hooper Bay is concerned about the fuel prices skyrocketing in the coming year and recommend forming a cooperative to buy bulk fuel. Accounting Systems Essential Indicators Yes XKXKK WH S = a hh The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. An accounts receivable system is in place which track customers and reports past due accounts and amounts. An accounts payable system is in place. The payroll system correctly calculates payroll and keeps records A cash receipt system is in place that records incoming money and what it was for. The Utility has a cash disbursement system that records how money was spent. tainable Indicators A chart of accounts is used that identifies categories in a reasonable, usable manner. Monthly.bank reconciliation’s have been completed for all utility accounts. The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. October — November — December 2007 2" Quarter FY08 - RUBA Report ee eran ee, Accounting System Comments: All of the above indicators are reviewed through reports received from the community on a monthly and quarterly basis and are on file in the Bethel RUBA office. Tax Problems Essential Indicators Yes No X The utility has a system to accurately calculate, track, and report payroll tax liabilities. xX The utility is current on filing tax reports. xl The utility is current on making tax deposits. X If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The community continues to be in compliance with tax requirements. The City pays payroll tax deposits electronically and copies of deposit slips are on file in the RUBA Bethel office. Personnel System Essential Indicators Yes No Xi The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. X The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. &X The utility has an adequate written hiring process. X The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. X The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. X The utility provides training opportunities to staff as needed and available. Personnel System Comments: 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. October — November — December 2007 2" Quarter FY08 - RUBA Report Organizational Management Essential Indicators 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. Yes No XxX xX xX xX xX XxX xX Sustainabl XxX xX x le Indicators The utility has adopted an organizational chart that reflects the current structure. The policy making body meets as required. The utility complies with the open meeting act for all meetings. Organizational Management Comments: All indicators continue to be met. The City continues to make sure the operators are current with certification. Operation of Utility Essential Indicators Yes No 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. X The utility has a safety manual and holds safety meetings. XxX Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. Xl The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. xX The utility has completed and distributed its Community Confidence Report (CCR). XxX The utility is not on the Significant Non-Compliance (SNC) list. x The utility maintains an inventory control list. xX 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. pa October — November — December 2007 2" Quarter FY08 - RUBA Report RUBA Activities For The Coming Quarter RUBA staff will continue monitoring monthly financial and sanitation user fee reports, and will assist with utility or local government issues if requested. October — November — December 2007 2" Quarter FY08 - RUBA Report Kasigluk Activity Report Community Overview Lead RUBA Staff: Ken Berlin, Bethel Office 2003 Population: 534 Region: Yukon-Kuskokwim Delta x Local Governments: Unorganized ed Treated well water is hauled from the washeteria in the v Prebne, O * old village site of Kasigluk. The new village area known as Akula Heights uses the school well. Honey buckets are dumped into sewage bins and hauled to the lagoon. Homes are not plumbed, and residents are reliant on the washeteria for bathing and laundry. Major infrastructure improvements have been funded, including two new wells, water treatment plant, a 100,000-gal. storage tank, a washeteria and new sewage lagoon. Electricity is provided by AVEC. AVEC installed three wind generators in 2006. RUBA Activity This Reporting Period RUBA staff received finance reports current to November 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. 11/07 RUBA staff has been working with Kasigluk Traditional Council since January 2007 on an issue involving past due federal payroll taxes. Several trips have been made to the community to assist them with bookkeeping issues. The IRS recently reported that Kasigluk Traditional Council has paid the past due amount and is now current with federal payroll tax reporting and deposit requirements. -77- October — November — December 2007 2" Quarter FY08 - RUBA Report Capacity Indicators Finances Essential Indicators Yes kX MRK X & &X No operating expenses. Sustainable Indicators X X X All revenue and expenses for the utility are listed in the utility budget. The utility has adopted a balanced realistic budget. Monthly financial reports are prepared and submitted to the policy making body. The utility is current in paying all water/wastewater electric bills. The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. The utility is receiving revenues (user fees or other sources) sufficient to cover 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 November 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 XXKK HWHX Ss = WOk No X The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. An accounts receivable system is in place which track customers and reports past due accounts and amounts. 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. J The Utility has a cash disbursement system that records how money was spent. stainable Indicators A chart of accounts is used that identifies categories in a reasonable, usable manner. Monthly bank reconciliation’s have been completed for all utility accounts. The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. - 78 - October — November — December 2007 2" Quarter FY08 - RUBA Report Accounting System Comments: The Tribe has a utility ordinance adopted by resolution on Aug. 14, 2003 and amended in July 2005. Enforcement of the ordinance started in August 2005. A billing system is set up with individual household accounts. Tax Problems Essential Indicators Yes No XI The utility has a system to accurately calculate, track, and report payroll tax liabilities. x The utility is current on filing tax reports. Xl The utility is current on making tax deposits. Xl If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The quarterly reports and tax deposits are up to date according to IRS on 11/07. Personnel System Essential Indicators Yes No X The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators &X The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. Xl The utility has adequate written job descriptions for all positions. &X The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. xX The utility has an adequate written hiring process. X The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. 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: Kasigluk is covered through Umialik Insurance Co. effective 12/07 to 12/08. 70 October — November — December 2007 2” Quarter FY08 - RUBA Report Organizational Management Essential Indicators Yes No X The entity that owns the utility is known and the entity that will operate the utility is set. The policy making body is active in policy making of the utility. The policy making body enforces utility policy. The utility has an adequately trained manager. The utility has an adequately trained bookkeeper. The utility has an adequately trained operator(s). The utility has adopted the necessary ordinances (or rules and regulations) necessary to _ give it the authority to operate. Sustainable Indicators X The utility has adopted an organizational chart that reflects the current structure. X The policy making body meets as required. xX The utility complies with the open meeting act for all meetings. HRKKXR Organizational Management Comments: A new 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. Kasigluk Traditional and Elders Council adopted the utility ordinance by resolution and enforcement started in August 2005. Operation of Utility Essential Indicators Yes No Xl The utility operator(s) are actively working towards necessary certification. x The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators 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. Xx The utility has a safety manual and holds safety meetings. X Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. x The utility is operating at the level of service that was proposed. Xl The operator provides status reports to the manager on a routine basis. Xl The utility has completed and distributed its Community Confidence Report (CCR). X The utility is not on the Significant Non-Compliance (SNC) list. xl The utility maintains an inventory control list. Xl The utility maintains a critical spare parts list. - 80- October — November — December 2007 2" Quarter FY08 - RUBA Report Operation of Utility Comments: RUBA staff has requested documentation of utility operator certification. RUBA Activities For The Coming Quarter RUBA will continue to work with Kasigluk Traditional Council to meet RUBA standards. te gil October — November — December 2007 2" 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 ed . Voie, tO iI) Water is supplied from two groundwater sources- gravity feed from the hydro plant, and a well as backup, and stored in a 200,000 gallon tank. A water supply line is connected to the penstock of the hydroelectric plant and used a majority of the time to reduce utility expenses to both the service plant and the customer. All 40 homes are connected to the piped water system. A community septic tank with an outfall line serves these homes, and the majority are fully plumbed. Weekly refuse collection services are provided. The community incinerator is currently unusable and all refuse is deposited at the landfill site. The City has been funded for a water treatment plant project from the Village Safe Water (VSW) program. RUBA Activity This Reporting Period RUBA staff makes weekly contact with City of Larsen Bay staff assisting with QuickBooks questions and other issues; a new city clerk was hired in June 2007, but resigned in November. Due to lack of an adequate hiring pool, the clerk agreed to work as needed until another qualified clerk could be hired and trained. The community has had an ongoing fuel crisis over the last year. In November, with a loan from Rural Alaska Fuel Services (RAFS), the City was able to purchase fuel for resale. The City still has an outstanding loan with the Alaska Energy Authority (AEA). Unless the City enforces its billing and collection policy, the City will have a crisis again by spring. RUBA stressed the importance of enforcing collections and helped draft a fuel sales ordinance, which was adopted. October — November — December 2007 2"4 Quarter FY08 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No Xl All revenue and expenses for the utility are listed in the utility budget. X The utility has adopted a balanced realistic budget. XX Monthly financial reports are prepared and submitted to the policy making body. Xl The utility is current in paying all water/wastewater electric bills. 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 X] The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. X] YTD revenues are at a level equal to or above those budgeted. XX] YTD expenditures are at a level equal to or below those budgeted. X A monthly manager’s report is prepared. XX] Budget amendments are completed and adopted as necessary. Finances Comments: 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 XX] The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. An accounts receivable system is in place which track customers and reports past due accounts and amounts. An accounts payable system is in place. The payroll system correctly calculates payroll and keeps records A cash receipt system is in place that records incoming money and what it was for. The Utility has a cash disbursement system that records how money was spent. HHXK WH Sustainable Indicators Xl A chart of accounts is used that identifies categories in a reasonable, usable manner. X Monthly bank reconciliation’s have been completed for all utility accounts. X The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. -84- October — November — December 2007 2” Quarter FY08 - RUBA Report Accounting Comments: Although the City has an adopted collection policy, it has not been actively or consistently enforcing it. The City utilizes QuickBooks for accounts receivable, accounts payable and payroll. The QuickBooks system is set up properly and has been a tool in the past to reliably keep the City's finances in order. Tax Problems Essential Indicators Yes No xl The utility has a system to accurately calculate, track, and report payroll tax liabilities. xl The utility is current on filing tax reports. xX The utility is current on making tax deposits. xX If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: As of 12/18/07 the City of Larsen Bay was in compliance with the IRS. Personnel System Essential Indicators Yes No x} The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. Xl The utility provides training opportunities to staff as needed and available. kX XK Me 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. October — November — December 2007 2" 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. I The policy making body is active in policy making of the utility. KI The policy making body enforces utility policy. The utility has an adequately trained manager. The utility has an adequately trained bookkeeper. The utility has an adequately trained operator(s). The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators XX The utility has adopted an organizational chart that reflects the current structure. X The policy making body meets as required. X The utility complies with the open meeting act for all meetings. HMKIE Organizational Management Comments: The current utility operator is trained but has not passed the certification test. The interim city clerk has bookkeeping experience. The city council presently does not enforce the collection policy consistently. Efforts to once again enforce the policy are being pursued. - 86- October — November — December 2007 2" Quarter FY08 - RUBA Report Operation of Utility Essential Indicators Yes No X The utility operator(s) are actively working towards necessary certification. x The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators XX The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. The utility has a safety manual and holds safety meetings. X Utility facilities have not suffered any major problems/outages due to management issues that on are still unresolved. XX The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). XI 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. XX Operation of Utility Comments: The remote maintenance worker for the region reports that there is a preventative maintenance plan for the existing system. The current utility operator is trained and can run the system but has not passed the certification test. The utility operator reports to the mayor or vice-mayor when there is a problem or he can foresee one. The utility is not able to operate at the level of service that was proposed due to the inability to backwash the rapid sand filter. The utility does not meet all required drinking water regulations and is currently on the SNC list for treatment technique violations and monitoring violations for Stage one and SWTR. The utility operator and council attempt to keep needed critical spare parts on hand. RUBA Activities For The Coming Quarter RUBA staff will provide assistance if requested with quarterly reports and training for the new city clerk, when one has been hired. Lise October — November — December 2007 2 Quarter FY08 - RUBA Report Marshall Activity Report Community Overview Lead RUBA Staff: Melissa Taylor, Anchorage Office 2003 Population: 370 Region: Lower Yukon Local Government: 2" Class City ed V epee, tO Water is derived from two wells, which were new in 1991. Approximately 70% of the City’s 60 homes are served by a piped circulating water and sewer system and have full plumbing. The remainders haul water and use honey buckets. The community plans to expand the system to the remaining unconnected 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 was reassigned during this quarter. Local Government Specialist Jimmy Smith continues to work for the department but in a new capacity at the Denali Commission. Melissa Taylor transferred from the Nome regional office and will make contact next quarter to schedule a trip to Marshall. Her first task is to update the RUBA assessment and ensure that all indicators continue to be met. -89- October — November — December 2007 2" Quarter FY08 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No ® All revenue and expenses for the utility are listed in the utility budget. Xl The utility has adopted a balanced realistic budget. & 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. Sustainable Indicators 4} 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. X 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 X The utility has adopted a collection policy and actively follows it. X The utility bills customers on a regular basis. XxX An accounts receivable system is in place which track customers and reports past due accounts and amounts. x An accounts payable system is in place. &X The payroll system correctly calculates payroll and keeps records Xl A cash receipt system is in place that records incoming money and what it was for. x The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators X A chart of accounts is used that identifies categories in a reasonable, usable manner. & Monthly bank reconciliation’s have been completed for all utility accounts. bX The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. - 90 - October — November — December 2007 2" Quarter FY08 - 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 has 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 QuickBooks files and removed old programs and cleaned up one of the computers. Tax Problems Essential Indicators Yes No X The utility has a system to accurately calculate, track, and report payroll tax liabilities. X The utility is current on filing tax reports. X The utility is current on making tax deposits. Xl If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: Per the Internal Revenue Service (IRS), the City is in compliance with the IRS for filing tax reports and is current in tax deposits. There is a levy against an individual not against the City. The notice was sent to the City to collect money owed by the individual to the IRS. 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. Xx The utility has adequate written job descriptions for all positions. ® The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. XX The utility has an adequate written hiring process. X The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. XX] The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. X The utility provides training opportunities to staff as needed and available. 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 city council personnel policy for all substitute and temporary hires. -91- October — November — December 2007 2" 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 meeting act for all meetings. HXIKKRHX XwX 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. -92- October — November — December 2007 2" Quarter FY08 - RUBA Report Operation of Utility Essential Indicators Yes No x The utility operator(s) are actively working towards necessary certification. X The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators X The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. KX] The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). XX] The utility is not on the Significant Non-Compliance (SNC) list. XX The utility maintains an inventory control list. XX] The utility maintains a critical spare parts list. Keke w 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. -93- October — November — December 2007 2" Quarter FY08 - RUBA Report Mekoryuk Activity Report Community Overview Lead RUBA Staff: Paul Chimiugak, Bethel Office 2003 Population: 192 Region: Lower Kuskokwim Local Government: Unorganized Borough od py Water is derived from a well, treated and stored in a tank. A new flush/haul system currently serves about 90% of the homes. Funds have been provided to complete the remaining homes which are using honey buckets. The school has its own well and needs a new water treatment system. The washeteria has piped disposal to a new permitted sewage lagoon. RUBA Activity This Reporting Period Anchorage and Bethel staff traveled to Mekoryuk to complete a RUBA management assessment on November 14, 2007. The management assessment is of the Native Village of Mekoryuk (NVM), as it operates and manages the utility services through a Memorandum of Agreement with the City of Mekoryuk. The Native Village of Mekoryuk meets all essential indicators at this time. Bethel RUBA staff will continue to monitor the management and receive documentation to support the indicators. - 95 - October — November — December 2007 2" Quarter FY08 - RUBA Report Capacity Indicators Finances Essential Indicators Yes X KXXwW 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 Native Village of Mekoryuk (NVM) submitted the budget and monthly finance reports in an acceptable format. They continue to email the monthly finance reports which show year-to-date, monthly, and budgeted amounts. The manager's reports are done by both the City and NVM. The manager's report showed some fluctuations in major expenses. These were identified as work on the water reservoir and a major fuel purchase. The expense for the washeteria water reservoir was submitted to the project engineer and will be reimbursed. Accounting Systems Essential Indicators Yes KKKHK WX S Nek The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. An accounts receivable system is in place which tracks customers and reports past due accounts and amounts. An accounts payable system is in place. The payroll system correctly calculates payroll and keeps records A cash receipt system is in place that records incoming money and what it was for. The Utility has a cash disbursement system that records how money was spent. stainable Indicators A chart of accounts is used that identifies categories in a reasonable, usable manner. Monthly bank reconciliation’s have been completed for all utility accounts. The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. - 96- October — November — December 2007 2" Quarter FY08 - RUBA Report Accounting Comments: The Tribe keeps records manually and records them in the computer as soon as the transaction is complete. They use Windows XP and QuickBooks Pro 05. They also record receipts with a NEBS manual system. Cash is received, the customer receives a receipt, and it is recorded in the QuickBooks system. Their accounts receivable shows outstanding customer balances of which the majority are people that have moved out of the service area. NVM adopted a purchasing system in 2001. Purchases are first checked to see if sufficient funds are available. If the request is approved, a check is cut and the invoice and check stub are stapled together and filed. Tax Problems Essential Indicators Yes No ® The utility has a system to accurately calculate, track, and report payroll tax liabilities. X The utility is current on filing tax reports. X The utility is current on making tax deposits. X) If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: NVM is interested in adopting the electronic fund payment transaction (EFPT) system for payment. In the meantime, whatever they are doing is right! In a reply from the Taxpayer Advocate, the tribal entity is deemed compliant with filing reports and making deposits. Personnel System Essential Indicators Yes No XI The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators X The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. The utility provides training opportunities to staff as needed and available. KX ® WX ww -97- October — November — December 2007 ae Quarter FY08 - RUBA Report Personnel System Comments: The Tribe has worker's compensation insurance through Alaska National Insurance Company through June 22, 2008. There are job descriptions for the city and tribal personnel in the Memorandum of Agreement. NVM uses both the tribal and city personnel policies in dealing with employee issues. Using the city personnel policy, a vacancy is advertised for 15 days. Hirings and promotions are based on merit and ability. Performance evaluations are completed by supervisors every six months to ensure productivity, correct weaknesses, and encourage and recognize strengths. There is a 90 day probationary period for new hires. Organizational Management Essential Indicators Yes No The entity that owns the utility is known and the entity that will operate the utility is set. The policy making body is active in policy making of the utility. The policy making body enforces utility policy. The utility has an adequately trained manager. The utility has an adequately trained bookkeeper. The utility has an adequately trained operator(s). The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators HRKKHEE x The utility has adopted an organizational chart that reflects the current structure. xX The policy making body meets as required. ® The utility complies with the open meeting act for all meetings. Organizational Management Comments: The bookkeeper is highly proficient in the use of QuickBooks Pro. He attended a refresher course in May 2007. The water plant operator has a Level I certificate in Water Distribution and Treatment, and is Operator in Training (OIT) certified in Wastewater and Wastewater Treatment. He has also received training in electrical workshop and boiler maintenance. The alternate plant operator has an OIT certificate in Water Distribution and a Level I certificate in Water Treatment. The City is active in policy making of the utility; they have been reviewing their budget and making changes when needed. - 98 - October — November — December 2007 2” Quarter FY08 - RUBA Report Operation of Utility Essential Indicators Yes No X The utility operator(s) are actively working towards necessary certification. X The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators ® The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. X The utility has a safety manual and holds safety meetings. X Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. X The operator provides status reports to the manager on a routine basis. xX The utility has completed and distributed its Community Confidence Report (CCR). X The utility is not on the Significant Non-Compliance (SNC) list. Xi The utility maintains an inventory control list. ® The utility maintains a critical spare parts list. Operation of Utility Comments: There are currently ten buildings that need flush tank and haul units; eight are residential and two are commercial. The washeteria water reservoir had a tear in the line system. It was repaired using city funds which will be reimbursed by the project. RUBA Activities For The Coming Quarter RUBA staff will continue providing technical assistance when requested; request monthly finance reports and assist with technical aspect of the reports; and will travel to Mekoryuk for reassessment of the Memorandum of Agreement and to renew the RUBA Agreement. -99- October — November — December 2007 2" 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 v Aheee, PO * Water is derived from a surface stream and is treated; a new surface water source is under development. Nanwalek has a piped water and sewer system which serves all homes in the village; most are completely plumbed. The village needs a larger water storage tank, new water and sewer mains, new fire hydrants, and a landfill expansion. RUBA Activity This Quarter In July RUBA staff was notified that the current administrator for the Nanwalek IRA Tribe resigned. The council requested her to continue to stay on until a replacement could be found, but as of December 2007, no replacement had been hired. The position is paid through Chugachmiut. The Nanwalek IRA Council contracted with the Alaska Native Tribal Health Consortium, (ANTHC) Statewide Utility Association's billing program last June. There are approximately 40-45 water connections that are billed through the program. Although the council was hopeful that more customers would pay their bill with an outside entity doing the billing, only five to ten 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. - 101 - October — November — December 2007 2 Quarter FY08 - RUBA Report Capacity Indicators Finances Essential Indicators Yes & Wee Xd 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 NKR & 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 XXKK 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 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. Ss Xe 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. - 102 - October — November — December 2007 2" Quarter FY08 - 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. 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. X If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: All payroll is calculated, tracked and payroll tax liabilities reports are done, using QuickBooks. The Tribe signed a tax release form; the IRS responded that the Tribe is currently compliant with all requirements. Personnel System Essential Indicators Yes No Xl The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators X The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. x The utility has adequate written job descriptions for all positions. X The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. Xi The utility has an adequate written hiring process. Xl The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. Xl The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. Xl The utility provides training opportunities to staff as needed and available. Personnel System Comments: The Nanwalek IRA Tribal Council has a posted workers compensation insurance policy with Alaska National Insurance. The Tribe reports that they follow their written personnel policy closely, and all employees are provided a copy. The probation period for new hire is 90 days. Training opportunities to staff are provided as funds allow or opportunities by other sponsors come available. - 103 - October — November — December 2007 2" 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 XHRRNRwW ® The utility has adopted an organizational chart that reflects the current structure. x The policy making body meets as required. XI 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 council has reviewed and revised the necessary ordinances that allow the utility to run productively. Operation of Utility Essential Indicators Yes No X The utility operator(s) are actively working towards necessary certification. x The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators X The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. KX] The utility has a safety manual and holds safety meetings. x Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. &X The utility is operating at the level of service that was proposed. Xl The operator provides status reports to the manager on a routine basis. &X The utility has completed and distributed its Consumer Confidence Report (CCR). &X The utility is not on the Significant Non-Compliance (SNC) list. & The utility maintains an inventory control list. The utility maintains a critical spare parts list. - 104- October — November — December 2007 2" Quarter FY08 - RUBA Report ee AN eport Operation of Utility Comments: The Nanwalek IRA Tribal Council has applied for and received their Regulatory Commission of Alaska Provisional Certification. A preventative maintenance plan was developed and adopted for the sanitation facility. The utility operator reports verbally to the tribal administrator when there is a problem, he can foresee one, or to report the system is running well. A copy of the CCR was completed with the help of Alaska Native Tribal Health Consortium. The utility operator and council try to keep needed critical spare parts on hand. RUBA Activities For The Coming Quarter 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. - 105 - October — November — December 2007 2" Quarter FY08 - RUBA Report Newhalen Activity Report Community Overview Lead RUBA Staff: Melissa Taylor, Anchorage Office 2003 Population: 183 Region: Alaska Peninsula Local Governments: 2" Class City od 4; Vv. Water is derived from a well and is treated at the washeteria. A piped system serves all 40 homes. A piped sewage system serves 10 homes and facilities and the remaining 30 use individual septic systems. Most residences are fully plumbed. The City provides septic pumping services. The Village Council operates a washeteria. Newhalen has requested funding to relocate the landfill; it is nearing capacity and there is heavy tourist use during the summer months. The school recycles aluminum and newspapers. The INN Electric Cooperative owns a diesel plant in Newhalen and 50 miles of distribution line to connect the three communities. The Tazimina Hydroelectric Project has recently been completed, and powers Iliamna, Newhalen and Nondalton. RUBA Activity This Quarter There has been a reassignment of RUBA staff to this community. Jimmy Smith was reassigned within the department to a position serving the Denali Commission. Melissa Taylor has transferred down from the Nome office to accept all of Mr. Smith's assigned communities. She will schedule a trip next quarter to Newhalen to update the assessment and offer local government assistance. - 107 - October — November — December 2007 2" Quarter FY08 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No KX Allrevenue and expenses for the utility are listed in the utility budget. XK 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. Xk XX The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. KX The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators 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. XJ Budget amendments are completed and adopted as necessary. Hk Finances Comments: The FY08 budget adopted by the council indicates that more expenses are in place then revenue expended. It is predicted to have a shortfall in the revenue. The council will have to subsidize the utility with general funds or other sources to keep it in operations for FY08 year. It is recommended that the staff and council members increase the water and sewer rates to cover most of the expenses in the water and sewer utility. Accounting Systems Essential Indicators Yes No The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. An accounts receivable system is in place which tracks customers and reports past due accounts and amounts. An accounts payable system is in place. The payroll system correctly calculates payroll and keeps records A cash receipt system is in place that records incoming money and what it was for. ; Xl The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators XA 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. KKK wkkw - 108 - October — November — December 2007 2" Quarter FY08 - RUBA Report Accounting System Comments: The City staff should look into purchasing 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, training needs to be done for the staff to learn the software. Newhalen will be nominated to receive QuickBooks Pro installation and training through the RUBA sponsored program. Tax Problems Essential Indicators Yes No XX] The utility has a system to accurately calculate, track, and report payroll tax liabilities. X The utility is current on filing tax reports. X The utility is current on making tax deposits. XX] If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The last quarter report from the IRS indicated the community is in compliance with all reporting to the IRS, however the authorization for information is outdated and current information is unavailable. There is no reason to suspect Newhalen is out of compliance, however, that information was unavailable and therefore could not be determined. A request will be obtained and the information corrected and updated as soon as possible. Personnel System Essential Indicators Yes No & The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators XX] The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. ® The utility has adequate written job descriptions for all positions. XX] The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. X The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. X The utility provides training opportunities to staff as needed and available. Xx X Personnel System Comments: The City did renew their workers compensation with Alaska Municipal League Joint Insurance Association, Inc. which will expire on July 1, 2008. - 109 - October — November — December 2007 2” Quarter FY08 - RUBA Report Organizational Management Essential Indicators Yes No xX The entity that owns the utility is known and the entity that will operate the utility is set. The policy making body is active in policy making of the utility. The policy making body enforces utility policy. The utility has an adequately trained manager. The utility has an adequately trained bookkeeper. The utility has an adequately trained operator(s). The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators XX The utility has adopted an organizational chart that reflects the current structure. x The policy making body meets as required. x The utility complies with the open meeting act for all meetings. HX KKE 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 X The utility operator(s) are actively working towards necessary certification. Kl The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators 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. 1] 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). K] The utility is not on the Significant Non-Compliance (SNC) list. KX The utility maintains an inventory control list. 1] The utility maintains a critical spare parts list. XR Operation of Utility Comments: The current operator is working on getting his certification for the City. RUBA Activities For The Coming Quarter RUBA staff will provide assistance via, phone, facsimile and email to the community. - 110- October — November — December 2007 . 2" 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 et v Ahptne, PO ~ 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 provided assistance to Nightmute on several issues during the quarter. Of major concern to the community was an issue relating to municipal land transfer. Staff met with leaders of the City of Nightmute and Nightmute's village corporation regarding their concerns about the loss of local land because of tax foreclosure and a federal law that sets out a process for the completion of the transfer of land to village corporations. Some of the city officials believe that the City should convey city owned land to the tribal council to alleviate these perceived threats. It did not appear from the discussions that any real threat for the loss of land exists. RUBA staff also assisted with obtaining their Community Energy Assistance Program funds and having that money sent to Alaska Energy Authority to pay off a loan. Nightmute will also receive Payment in Lieu of Taxes (PILT) funds upon passage of the PILT Resolution. These funds are earmarked as payment to Crowley Marine Services for winter fuel. -1i1- October — November — December 2007 2" Quarter FY08 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No All revenue and expenses for the utility are listed in the utility budget. The utility has adopted a balanced realistic budget. Monthly financial reports are prepared and submitted to the policy making body. The utility is current in paying all water/wastewater electric bills. HX Kl 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. —_—_e 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. HEIKKI Finances Comments: The City has sent all required financial documents to Juneau required to receive the Community Energy Assistance Program (CEAP) monies. Monthly financial reports are received in the Bethel office. The City has requested the Payment in Lieu of Taxes (PILT) funds be sent directly to Crowley Marine Services for a fuel order. Passage of a resolution to request this has not been received by Juneau yet. 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. Xl An accounts payable system is in place. x The payroll system correctly calculates payroll and keeps records x A cash receipt system is in place that records incoming money and what it was for. X The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators i) 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. October — November — December 2007 2" Quarter FY08 - RUBA Report Accounting System Comments: The collection policy is included in the utility service agreement that the customer signs. Collection is due in 30 days and interest is assessed on delinquent accounts. The City has biodegradable plastic liners for the customers that are using honey buckets and dumping the sewage into the lagoon. A NEBS cash receipt system is used to record revenues from customers. The payment is recorded in the customer records and then transferred to the computer. A sample purchase procedure system was offered to the City for their review and adoption. Tax Problems Essential Indicators Yes No X The utility has a system to accurately calculate, track, and report payroll tax liabilities. X The utility is current on filing tax reports. xX The utility is current on making tax deposits. KX] 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 Xl The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators Xl The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. &X The utility has adequate written job descriptions for all positions. XX The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. X The utility has an adequate written hiring process. X The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. x The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. XX] 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. - 113 - October — November — December 2007 2" 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. Xl 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 RRR X The utility has adopted an organizational chart that reflects the current structure. Xl The policy making body meets as required. X The utility complies with the open meeting act for all meetings. 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 X The utility operator(s) are actively working towards necessary certification. XK The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators x The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. The utility has a safety manual and holds safety meetings. X Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. XI The utility is operating at the level of service that was proposed. X The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Consumer Confidence Report (CCR). x The utility is not on the Significant Non-Compliance (SNC) list. & The utility maintains an inventory control list. XX] The utility maintains a critical spare parts list. Operation of Utility Comments: The sewage haul and water delivery fee was raised to $27.50 from $25.00 on March 21, 2007. The City has been hiring temporary workers to conduct water sampling and paying $25.00 for conducting the sampling. The clinic is using a piped water system to fill their water holding tank. They are averaging about six sewage hauls a month for which they 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. -114- October — November — December 2007 2" Quarter FY08 - RUBA Report RUBA Activities For The Coming Quarter RUBA staff will request a preventative maintenance plan for the facility and equipment and is sending the utility a tax release form for signature. RUBA will continue requesting monthly financial reports. October — November — December 2007 2” Quarter FY08 - RUBA Report Nikolaevsk Activity Report Community Overview Lead RUBA Staff: Melissa Taylor, Anchorage Office 2003 Population: 304 Region: Kenai Peninsula Local Governments: Non-Profit od 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. 80% 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 system. 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 assignments were changed this quarter. LGS Jimmy Smith has been reassigned to the Denali Commission. Nome LGS Melissa Taylor transferred to Anchorage and will begin providing assistance to Nikolaevsk next quarter. Nikolaevsk continues to submit monthly finance reports in a format that compares revenues and expenses to adopted budget amounts. The stability and professionalism of the staff contributes to them continuing to meet all RUBA essential indicators. -117- October — November — December 2007 2" 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. x The utility has adopted a balanced realistic budget. x Monthly financial reports are prepared and submitted to the policy making body. Xi The utility is current in paying all water/wastewater electric bills. X The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. x The utility is receiving revenues (user fees or other sources) sufficient to cover operating a Sustainable Indicators | X NXE 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 continues to provide financial reports to the RUBA staff for review each month. Utility staff is using QuickBooks software for all financial record keeping. They will be invited to attend a RUBA sponsored QuickBooks training when it is scheduled in Anchorage. The utility monitors the expenses and raises rates when necessary to cover operating expenses and allow for Repair and Replacement costs. Accounting Systems Essential Indicators Yes RE wew Susta NRX No inable 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 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. 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. - 118 - October — November — December 2007 2" Quarter FY08 - RUBA Report Accounting System Comments: Utility staff is very knowledgeable in using the QuickBooks 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. The governing body adopted a collection policy and strictly enforces it with disconnection of service if necessary for non-payment. Tax Problems Essential Indicators Yes No X The utility has a system to accurately calculate, track, and report payroll tax liabilities. X The utility is current on filing tax reports. x The utility is current on making tax deposits. X If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The community is deemed compliant with reporting and filing at this time. Personnel System Essential Indicators Yes No 4} The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. X The utility provides training opportunities to staff as needed and available. & Xk wk ww 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. -119- October — November — December 2007 2" 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 Xl The utility has adopted an organizational chart that reflects the current structure. x The policy making body meets as required. x The utility complies with the open meeting act for all meetings. HXXXkeK 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 XxX 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. The utility maintains a critical spare parts list. X NXKKKK KX 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. The last surface water violation was in September 2006. - 120- October — November — December 2007 2" Quarter FY08 - 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. -121- October — November — December 2007 2" Quarter FY08 - RUBA Report October — November ~ Pec C CT Nondalton Activity Report Community Overview Lead RUBA Staff: Melissa Taylor, Anchorage Office 2003 Population: 203 Region: Alaska Peninsula ° Local Governments: 2" Class City od The City of Nondalton operates the piped water and sewer “ system and provides a central watering point for residents to haul their own water. The city council is the policy making body for the utility. An infiltration gallery at Six-Mile Lake supplies the community with treated water. There are 88,000 gallons of storage capacity. 70 residences are connected to the piped water and sewer system and are plumbed. Funds have been requested to extend the system to 11 newly constructed homes and to make system improvements -- demand has doubled over the past 12 years. Refuse collection is not provided. A new 5-acre landfill and burn box project were completed in 2005. Construction of the Iiamna- Nondalton road and bridge is pending. The INN Electric Cooperative owns a diesel plant in Newhalen and 50 miles of distribution line to connect Iliamna, Newhalen and Nondalton. The Tazimina Hydroelectric Project has recently been completed, and powers the three communities ehaee, o POT . RUBA Activity This Reporting Period Anchorage RUBA staff traveled to Nondalton in October at the request of the City. Assistance with QuickBooks bank reconciliation and personnel evaluation procedures instruction was provided to the administrator. Training for the newly hired city clerk was also provided. Sample personnel policies, the municipal clerk's handbook and a copy of Title 29 were all used as training documentation and left with the city staff. Additionally, the administrator has requested assistance with revising the personnel policy. A change in RUBA staff assigned to Nondalton has occurred and LGS Melissa Taylor will begin working with the administrator on the personnel policy in the next quarter. RUBA staff was notified in December that Nondalton was experiencing a fuel delivery emergency situation. They were unable to receive fuel due to weather conditions and lack of planes to fly it in. The current distributor was having maintenance problems. RUBA staff will continue to monitor and assist if possible as lack of fuel may result in frozen utility lines. - 123- October — November — December 2007 2" Quarter FY08 - RUBA Report Capacity Indicators Finances Essential Indicators s No % All revenue and expenses for the utility are listed in the utility budget. X The utility has adopted a balanced realistic budget. X Monthly financial reports are prepared and submitted to the policy making body. X The utility is current in paying all water/wastewater electric bills. 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 en EOE a Sustainable Indicators XJ The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. YTD revenues are at a level equal to or above those budgeted. 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. 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 as they are using the QuickBooks software program but would like additional training. 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. LU The utility has a cash disbursement system that records how money was spent. Sustainable Indicators Xl A chart of accounts is used that identifies categories in a reasonable, usable manner. & Monthly bank reconciliation’s have been completed for all utility accounts. X) The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. XXXK Wee October — November — December 2007 2" Quarter FY08 - RUBA Report 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 program. RUBA does not contract for advanced training, however will assist the City in finding a source that they may attend. Tax Problems Essential Indicators Yes No xX The utility has a system to accurately calculate, track, and report payroll tax liabilities. X The utility is current on filing tax reports. X The utility is current on making tax deposits. &X If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The City 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). They are deemed in compliance with deposits and reporting at this time. Personnel System Essential Indicators Yes No X The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators X The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. X The utility has adequate written job descriptions for all positions. XX The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. &X The utility provides training opportunities to staff as needed and available. kX XR Personnel System Comments: The City's workers' compensation insurance was renewed and will now expire on May 23, 2008. October — November — December 2007 2" Quarter FY08 - RUBA Report Organizational Management Essential Indicators Yes No The entity that owns the utility is known and the entity that will operate the utility is set. The policy making body is active in policy making of the utility. The policy making body enforces utility policy. The utility has an adequately trained manager. The utility has an adequately trained bookkeeper. The utility has an adequately trained operator(s). The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators &X The utility has adopted an organizational chart that reflects the current structure. xl The policy making body meets as required. x The utility complies with the open meeting act for all meetings. RXRXKKKX 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. Operation of Utility Essential Indicators Yes No X The utility operator(s) are actively working towards necessary certification. X The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators x The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. &] The utility has a safety manual and holds safety meetings. X Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. XX] The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its 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. HRKKE 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. October — November — December 2007 2" Quarter FY08 - RUBA Report RUBA Activities For The Coming Quarter RUBA staff plans to provide assistance with a personnel policy and other issues upon request via on- site visits, phone, facsimile and email. - 127- October — November — December 2007 2" Quarter FY08 - RUBA Report - Old Harbor Activity Report Community Overview Lead RUBA Staff: Tammy Helms, Anchorage Office 2003 Population: 200 Region: Kodiak Island Local Governments: 2" Class City od ‘ Water is supplied by a dammed creek and an infiltration \ gallery, is treated and stored in a tank, then distributed via pipes. A community septic tank treats piped sewage. All residences are connected to the public water and sewer system and have complete plumbing. Refuse collection services are not available, although the City has requested funding for dumpsters and vehicles to do so. The landfill was recently relocated. They are interested in developing hydroelectricity. Electricity is provided by AVEC. There is one school located in the community, attended by 62 students. Local hospitals or health clinics include Old Harbor Health Clinic (286-2205). Old Harbor is classified as an isolated village, and it is found in EMS Region 2G in the Kodiak Region. Emergency Services have coastal and air access. Emergency service is provided by volunteers and a health aide. Auxiliary health care is provided by Old Harbor Village Response Team (286-2293/2270). Pepe, ot PO * RUBA Activity This Reporting Period This quarter, RUBA staff provided some technical assistance regarding the QuickBooks accounting. The city treasurer completed and submitted the FY07 Certified Financial Statement and copies of the last quarter 941's and Department of Labor report. At least one member of the Old Harbor City Council plans to attend the QuickBooks training in January sponsored by RUBA. - 129- October — November — December 2007 2" Quarter FY08 - RUBA Report Capacity Indicators s Finances Essential Indicators Yes No Xl All revenue and expenses for the utility are listed in the utility budget. X The utility has adopted a balanced realistic budget. 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. RX The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. X The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. _ Sustainable Indicators XX] The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. xX 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. XX] Budget amendments are completed and adopted as necessary. Finances Comments: Monthly financial reports are prepared via QuickBooks by City Treasurer Russell Fox. The council is presented a monthly/year-to-date budget report along with a profit and loss statement. The City has an adequate fuel supply on hand for the winter months. In the event of emergency repairs, the City will purchase the parts from the general fund. The water and sewer revenues are not sufficient to cover operating expenses; however, the City subsidizes its water and sewer utility through fuel sales. Due to the newly adopted collection policy and enforcement of it, revenues have been above those budgeted. The council has also been diligent in working with the city clerk and treasurer, resulting in expenditures that have been below those budgeted - 130- October — November — December 2007 2" Quarter FY08 - RUBA Report Accounting Systems Essential Indicators Yes No The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. An accounts receivable system is in place which tracks customers and reports past due accounts and amounts. An accounts payable system is in place. The payroll system correctly calculates payroll and keeps records A cash receipt system is in place that records incoming money and what it was for. The Utility has a cash disbursement system that records how money was spent. 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. XkXhK Ke Dn S a o Hk Accounting Systems Comments: The City has adopted a collection policy and the council has supported the city clerk and treasurer in implementing it. The City utilizes QuickBooks for accounts receivable and accounts payable. The city administrator appears to be knowledgeable and fluent in working with QuickBooks. The City bills customers separately for fuel and water services. Bills are mailed before the 15th of each month. Accounts payable are set aside in a designated location and paid twice a month. Tax Problems Essential Indicators Yes No Xl The utility has a system to accurately calculate, track, and report payroll tax liabilities. Xl The utility is current on filing tax reports. x The utility is current on making tax deposits. ® 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. - 131- October — November — December 2007 2" Quarter FY08 - RUBA Report Personnel System Essential Indicators Yes No Xl The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators X The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. x The utility provides training opportunities to staff as needed and available. xX Wk 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, and evaluations are done on an as needed basis when requested by the employee or council. Training opportunities to staff are provided as funds allow or opportunities by other sponsors come available such as Kodiak Area Native Association and Village Safe Water. Organizational Management Essential Indicators Yes 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 I 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. HRRK KKK - 132 - October — November — December 2007 2" Quarter FY08 - RUBA Report Organizational Management Comments: The mayor stated that the council is active in policy making. The council has made an active effort to hold regular scheduled monthly meetings. The current utility operator is trained and certified. The community also has a trained employee who will be seeking certification in the near future through Village Safe Water. The treasurer is knowledgeable in QuickBooks and has been working with the program since 1996. The treasurer expressed interest in working with the RUBA program to draft an organizational chart that reflects the current structure for council approval and adoption. The city clerk has shown the ability to perform the tasks as city clerk. Operation of Utility Essential Indicators Yes No X The utility operator(s) are actively working towards necessary certification. & 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. X Xx RRR Operation of Utility Comments: In speaking with the remote maintenance worker for Village Safe Water, Steve Evavold, there is a preventative maintenance plan for the existing system. The current utility operator is trained and certified, and the community also has a trained employee who will be seeking certification in the near future through Village Safe Water training programs. The utility operator reports to the mayor when there is a problem or he can foresee one. The utility operator and council attempt to keep needed critical spare parts on hand. RUBA Activities For The Coming Quarter RUBA staff will continue to provide telephone, fax, and e-mail support and assistance as needed. October — November — December 2007 2” Quarter FY08 - RUBA Report Platinum Activity Report Community Overview Lead RUBA Staff: Ralph Andrew, Dillingham Office 2003 Population: 39 % Region: Dillingham Local Governments: Tribal Council od Nine private homes reportedly have individual water wells, 2c, ot AP septic systems and plumbing. During the summer, untreated water is hauled from approximately twenty watering points. During winter, residents dig holes in the ice to draw water. Homes without water and sewer service utilize honey buckets which are disposed of in seepage pits or the slough. A washeteria was constructed but is not in use. A DEC/VSW Water/Sewer and Solid Waste Feasibility Study was funded in FY 2003 to assess water, sewer and solid waste needs including a water storage tank, new water treatment plant, connections and plumbing, sludge disposal site, and landfill. A Village Safe Water project to renovate the water/sewer system is moving forward and construction will start as early as summer 2007. The City operates the electric utility and landfill. Community fuel storage capacity is as follows: Arviq Inc. (67,100 gals.); City Power Plant (5,600); Lower Kuskokwim Schools (7,000). RUBA Activity This Reporting Period Village council staff continues to maintain satisfactory RUBA essential indicators and maintain contact with the Village Safe Water engineer and remote maintenance worker. Concerning city-operated utilities, RUBA offered assistance to city officials with critical tasks including budgeting. The mayor/city administrator did not request assistance and indicated electric utility fuel supplies are adequate for the winter. The City has reportedly not adopted an FY 2008 budget, a requirement necessary to access FY 2008 state energy assistance funding. October — November — December 2007 2 Quarter FY08 - RUBA Report Capacity Indicators Finances Yes No X x x X X x HRRR operating expenses. Sustainable Indicators & 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 The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. YTD revenues are at a level equal to or above those budgeted. YTD expenditures are at a level equal to or below those budgeted. A monthly manager’s report is prepared. Budget amendments are completed and adopted as necessary. Finances Comments: The village council adopted a calendar-year 2008 water-sewer budget in December 2007. The budget lists pertinent revenues and expenditures and is realistic. The council continues to show support for staff in their efforts to enforce the utility ordinance. Revenues are sufficient to cover operating expenditures. Staff reports monthly to the village council on operational and financial matters. RUBA recommended use of an improved format for monthly financial reports and will continue providing support to staff as they implement the new format. Accounting Systems Essential Indicators Yes HRKK WX No The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. An accounts receivable system is in place which tracks customers and reports past due accounts and amounts. An accounts payable system is in place. The payroll system correctly calculates payroll and keeps records A cash receipt system is in place that records incoming money and what it was for. The utility has a cash disbursement system that records how money was spent. HE Sustainable Indicators Xd x Xx A chart of accounts is used that identifies categories in a reasonable, usable manner. Monthly bank reconciliation’s have been completed for all utility accounts. The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. - 136 - October — November — December 2007 2” Quarter FY08 - 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 use QuickBooks computerized accounting software and abide by a procurement process that requires approval prior to purchase. RUBA continues to recommend consistent monthly reconciliation of all bank accounts. Tax Problems Essential Indicators Yes No Xl The utility has a system to accurately calculate, track, and report payroll tax liabilities. xl The utility is current on filing tax reports. Xi The utility is current on making tax deposits. i} 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 January 15, 2008, the village council is presently meeting federal tax obligations. Personnel System Essential Indicators Yes No X The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators X The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. Xl The utility has adequate written job descriptions for all positions. X The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. X The utility has an adequate written hiring process. X The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. 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 village council 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. - 137- October — November — December 2007 2" Quarter FY08 - RUBA Report Organizational Management Essential Indicators Yes No The entity that owns the utility is known and the entity that will operate the utility is set. The policy making body is active in policy making of the utility. The policy making body enforces utility policy. The utility has an adequately trained manager. The utility has an adequately trained bookkeeper. The utility has an adequately trained operator(s). The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators X The utility has adopted an organizational chart that reflects the current structure. Xl The policy making body meets as required. x The utility complies with the open meeting act for all meetings. RRKMHHX Organizational Management Comments: The village council actively sets utility policy. The village administrator continues to train the new water operator hired during the prior quarter. RUBA recommends the new operator seek training opportunities offered through the regional health corporation, RUBA, and other agencies. Administrative staff is trained. The council meets regularly and indicates ongoing interest in maintaining compliance with sanitation grant conditions. Operation of Utility Essential Indicators Yes No X The utility operator(s) are actively working towards necessary certification. Xl The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators X The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. ® The utility has a safety manual and holds safety meetings. X Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. XX The utility is operating at the level of service that was proposed. Xl The operator provides status reports to the manager on a routine basis. X The utility has completed and distributed its Community Confidence Report (CCR). XX The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. 1] The utility maintains a critical spare parts list. Operation of Utility Comments: A trained water operator continues to oversee the work of a newly hired water operator. The utility remains listed on the Significant Non-Complier (SNC) list for a Surface Water Treatment Rule Unfiltered violation but is actively seeking system improvements that will facilitate compliance. The utility timely submitted its 2006 Consumer Confidence Report. - 138- October — November — December 2007 2” Quarter FY08 - RUBA Report RUBA Activities For The Coming Quarter RUBA will maintain contact with the village council as they work to maintain satisfactory RUBA essential indicators. RUBA anticipates the council will work jointly with RUBA to revise and adopt a RUBA workplan in early 2008. The work plan is a checklist intended to support ongoing capacity development. - 139 - October — November — December 2007 2" Quarter FY08 - RUBA Report Ruby Activity Report Community Overview Lead RUBA Staff: Jeremy Johnson, Fairbanks Office 2003 Population: 185 Region: Interior Local Governments: 2"! Class City, od Approximately 65% of residents haul water from the “Ae pol washeteria and use outhouses. Individual wells and septic outcast systems are also used. Construction of a new water source, water treatment plant, washeteria and lagoon was completed in 2006; the new washeteria opened to the public in mid-February 2006. A septic tank pump truck was purchased and delivered to Ruby in summer 2006. Future plans call for construction of a garage for the pump truck. The school operates its own well. Electricity is provided by the City of Ruby, through the Ruby Electric Utility. RUBA Activity This Quarter The City of Ruby does not currently meet all essential indicators. In the forth quarter of 2006, the City hired a private consultant on a part-time basis to help get caught up on its financial recordkeeping and reporting. Since then, the City has made significant progress in addressing its financial recordkeeping and reporting needs. The most progress has occurred with the sustainable indicators, specifically in the area of finances. During this quarter, RUBA staff maintained phone and email contact with the accounting consultant, and made a site visit to the city clerk. - I41- October — November — December 2007 2" 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. X The utility has adopted a balanced realistic budget. x Monthly financial reports are prepared and submitted to the policy making body. Xl The utility is current in paying all water/wastewater electric bills. 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 Pa ac a a at Sustainable Indicators 1] 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. XX Budget amendments are completed and adopted as necessary. Daa Finances Comments: Although the FY 08 washeteria budget is not balanced, and budgeted expenses exceed budgeted revenues, the City should have adequate reserves to cover the deficit for this fiscal year: those reserves may not be available in coming years. The City has not had a budget for many years prior and the current budget was collaboratively developed with educated guesses. Currently, the entire City's budget has income exceeding expenses and a budget amendment has been suggested but with other, more pressing priorities, it does not appear that an amendment will be adopted soon. According to the contracted bookkeeper, the washeteria loss is becoming less, although no conclusions as to why have been determined. This is due to, again, not having a budget for many years prior and no data available for a comparison. The contracted bookkeeper provided monthly reports, with a narrative, to the city 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 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. 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. KXXX Wk - 142 - October — November — December 2007 2 Quarter FY08 - RUBA Report Accounting Comments: The water/sewer utility does not provide service to individual customers, therefore does not need to keep track of individual customers. On the other hand, the electric utility has more than 100 customers. The City's accounting consultant has been helping the city clerk set up the accounts receivable system in QuickBooks: the new system should enable the City to maintain more accurate records of electric utility customer accounts. Tax Problems Essential Indicators Yes No Xl The utility has a system to accurately calculate, track, and report payroll tax liabilities. Xl The utility is current on filing tax reports. ® 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 Alaska Department of Labor, the City is current on filing tax reports and making tax deposits. The only unresolved tax issue is that there is some discrepancy between wages reported on the 2004 quarterly reports and wages reported on the 2004 W-2 forms. In 2005, the City received notice from Alaska Division of Retirement and Benefits regarding a very substantial unfunded termination liability following its withdrawal from the Public Employee Retirement System (PERS). The amount due is for future health benefits and unemployment insurance for persons who had been enrolled in PERS while employed by the City of Ruby. The PERS liability remains unpaid, and the PERS issue remains unresolved. Personnel System Essential Indicators Yes No X The utility has a posted workers compensation insurance policy ineffect _ Sustainable Indicators X The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. XX The utility has adequate written job descriptions for all positions. 1] The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. Xx The utility provides training opportunities to staff as needed and available. kK We Personnel System Comments: Not all personnel policies are consistently followed. Policies and job descriptions should be updated and while some job descriptions exist, there is not one for every position; the existing descriptions are adequate. On the employment acceptance letter from the City a probationary period is set. - 143 - October — November — December 2007 2 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 al _give it the authority to operates Sustainable Indicators &X The utility has adopted an organizational chart that reflects the current structure. Xl The policy making body meets as required. x The utility complies with the open meeting act for all meetings. NXKRMMHX Organizational Management Comments: The city clerk received Power Cost Equalization training in the spring of 2005; attended a Financial Management for Utility Managers workshop and an Introduction to Utility Management workshop in 2005 in Fairbanks; and has received on site QuickBooks training from RUBA staff and from the City's accounting consultant. Continued financial training for the city clerk is recommended and ongoing with oversight by the contracted bookkeeper. Operation of Utility Essential Indicators Yes No x The utility operator(s) are actively working towards necessary certification. xX The utility has a preventative maintenance plan developed for the existing sanitation eee LL PL Sustainable Indicators x The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. XX] The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. KkkeX &X Xk - 144- October — November — December 2007 2” Quarter FY08 - RUBA Report Operation of Utility Comments: The utility operator uses daily, weekly, and monthly check lists, and submits the completed lists to the city clerk. According to the remote maintenance worker, the operator generally has the necessary spare parts on hand, and is dependable and reliable. The operator has a Water Distribution Level | certificate (expires 12/31/10), a Water Treatment Level | certificate (expires 12/31/08) and a Wastewater Collection OIT certificate (expires 12/31/09). The operator successfully completed an Introduction to Utility Management training course the third quarter 2007. RUBA Activities For The Coming Quarter RUBA staff will continue to monitor and assist, and to provide additional on-site training. - 145 - October — November — December 2007 2" Quarter FY08 - RUBA Report October — November — December 2007 2" 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. Water “2. is derived from an infiltration gallery located on a small stream south of the City, is treated and stored in a 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 honey buckets, 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. Areine, 0 P RUBA Activity This Quarter Bethel staff has continued to monitor the documentation required to meet all essential indicators. Bethel RUBA staff was contacted by the city manager with a request for assistance with updating the Scammon Bay Business Plan. RUBA is available to review the plan and make comments; however, the initial work must be done by the community. -147- October — November — December 2007 2m 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. xX The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. xl The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. Sustainable Indicators X The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. Xl YTD revenues are at a level equal to or above those budgeted. X YTD expenditures are at a level equal to or below those budgeted. X A monthly manager’s report is prepared. X Budget amendments are completed and adopted as necessary. Finances Comments: The utility has sufficient funds in the account in case of emergencies. The council reviews the city budget at least once a year. Bethel staff is provided excellently prepared monthly financial reports. The manager's reports are done verbally to the council and are recorded at the meeting minutes. Accounting Systems Essential Indicators Yes No X The utility has adopted a collection policy and actively follows it. X The utility bills customers on a regular basis. X An accounts receivable system is in place which track customers and reports past due accounts and amounts. X An accounts payable system is in place. X The payroll system correctly calculates payroll and keeps records Xl A cash receipt system is in place that records incoming money and what it was for. 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. XX] The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. Xk - 148 - October — November — December 2007 2" Quarter 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 procedure system in place, but it has yet to be officially adopted by the council. Tax Problems Essential Indicators Yes No Xl The utility has a system to accurately calculate, track, and report payroll tax liabilities. x The utility is current on filing tax reports. XI 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: There are no tax problems at this time. The IRS has deemed them compliant with filing and deposit requirements. Personnel System Essential Indicators Yes No X The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators Xl The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. X The utility has adequate written job descriptions for all positions. 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. 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. ik 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. RUBA staff will provide some examples and templates for consideration. - 149- October — November — December 2007 2" 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. HHXKKX KE Sustainable Indicators X The utility has adopted an organizational chart that reflects the current structure. X The policy making body meets as required. X The utility complies with the open meeting act for all meetings. Organizational Management Comments: The manager said that he would like to have a water/sewer rate study done in the future. RUBA staff will schedule a trip next quarter to assist with the rate study. The city council has ordered that delinquent customers be disconnected. The council is reviewing their utility ordinance and they have a draft form of an ordinance to replace the current ordinance. Operation of Utility Essential Indicators Yes No X The utility operator(s) are actively working towards necessary certification. X The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. XX] The utility maintains a critical spare parts list. Xx X HOKKK Kx r October — November — December 2007 2" Quarter FY08 - RUBA Report Operation of Utility Comments: 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 water treatment plant 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. Scammon Bay will need to finish the planned upgrades to be able to meet this indicator. The manager will try to develop a Critical Spare Parts list with the Operators. RUBA Activities For The Coming Quarter RUBA staff will assist the utility to enforce the collection policy and establish a repair and replacement account. October — November — December 2007 2" 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 pow buckets in pit privies or bunkers. Residents are eT dependent upon the washeteria for bathing, laundry, and water, since no homes are fully plumbed. HUD houses constructed in 1991 use pit privies. The City washeteria/water treatment plant provides water to the city office building, post office and clinic. The school is connected to the sewer pipes. A sanitation master plan has been completed and funds are needed to proceed with the design and engineering of a community system. RUBA Activity This Quarter An assessment of management capacity was completed in September 2007. FY 2008 budget and finance reports through the end of December, 2007 are on file in the Bethel RUBA office. The City of Shageluk has met all of the essential capacity indicators. Received a copy of Shageluk's workmen's compensation insurance coverage that is good through 7/1/2008. They are covered by Alaska Municipal League Insurance Association, Inc. The copy of the insurance document has been placed in their file located in the Bethel regional office. - 153 - October — November — December 2007 2™ 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. x 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 ee —— Sustainable Indicators x The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. Kl 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. XxX Budget amendments are completed and adopted as necessary. Finances Comments: The FY08 budget is on file. The budget includes a line item for repair and replacement costs. Monthly financial reports are current to the end of December, 2007 and are on file in the Bethel office. The format of the financial statements is as follows: annual budgeted amount for FY08, month-to-date expenditures, year-to-date expenditures and balance. Written financial reports and outline for the administrator's narrative report are placed in the meeting packets and given to the council members prior to each regularly scheduled monthly council meeting. At the meeting, the administrator verbally updates the council on financial and other city issues. The utility is current on meeting payments for all water/wastewater and electric bills. Fuel purchased for FY08 was 10,000 gallons and has been fully paid for. The purchase brings the fuel supply to an adequate level for the utility services. Accounting Systems Essential Indicators Yes No X The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. XxX An accounts receivable system is in place which track customers and reports past due accounts and amounts. xl An accounts payable system is in place. Xl The payroll system correctly calculates payroll and keeps records Xl A cash receipt system is in place that records incoming money and what it was for. &1__(1__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. XX] Monthly bank reconciliation’s have been completed for all utility accounts. X The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. October — November — December 2007 2" Quarter FY08 - RUBA Report Accounting Comments: The City of Shageluk adopted a water and sewer ordinance in 2005 and a copy is on file in the Bethel regional office. The City is converting the manual accounting system to the QuickBooks Pro computer system. Accounts receivables are in the system but accounts payable are still done manually. For the payroll system, QuickBooks has been set up to calculate the net pay for each employee. Processing the checks and the payroll register is done manually. A sample billing copy for sewer services is on file in the Bethel regional office. The City does not have a water and sewer system to serve all residents. A draft chart of accounts has been developed but is not being used. The administrator plans to use the new chart of accounts after she completes the setup of QuickBooks Pro. The file containing the bank statements is not up to date, thus a complete reconciliation for the utility service has not been done since the new administrator came on board. A purchase order form has been developed for the utility service workers and a copy is on file with RUBA. Tax Problems Essential Indicators Yes No x The utility has a system to accurately calculate, track, and report payroll tax liabilities. ® The utility is current on filing tax reports. & The utility is current on making tax deposits. X) If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: 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 XxX The utility has a posted workers compensation insurance policy in effect. a Sustainable Indicators XX] The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. x The utility has adequate written job descriptions for all positions. XX] The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. Xx The utility has an adequate written hiring process. x The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. Xl 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. October — November — December 2007 2 Quarter FY08 - RUBA Report Personnel System Comments: The personnel policy is completed but has not been adopted to date. RUBA received an updated copy of the City of Shageluk's workers' compensation insurance coverage through Alaska Municipal League Insurance Association, Inc. The City has coverage until 7/1/2008 and a copy of the insurance document is on file in the Bethel regional office. Job descriptions for the utility workers are adequate. Since the new administrator has come on board, there have been no evaluations conducted for the utility staff. Personnel folders are kept up to date with I-9s, job applications and completed personnel action forms. The utility worker is given adequate training opportunities when available. Organizational Management Essential Indicators Yes No &X The entity that owns the utility is known and the entity that will operate the utility is set. xX The policy making body is active in policy making of the utility. &X The policy making body enforces utility policy. Xl The utility has an adequately trained manager. xX The utility has an adequately trained bookkeeper. &X The utility has an adequately trained operator(s). X The utility has adopted the necessary ordinances (or rules and regulations) necessary to —__five it the authority to operate. Sustainable Indicators x) The utility has adopted an organizational chart that reflects the current structure. xX The policy making body meets as required. & The utility complies with the open meeting act for all meetings. Organizational Management Comments: The City is enforcing utility policies with the Yukon Kuskokwim Health Corporation (YKHC) health clinic, city office building and post office for water/sewer services. The school receives only sewer services and is billed each month. Evacuation services for the ten private homes that have privies are done on a prepaid basis. The bookkeeper position was filled in August, 2007. Both the city administrator and bookkeeper need QuickBooks Pro training. The utility worker is adequately trained and experienced. October — November — December 2007 2" Quarter FY08 - RUBA Report Operation of Utility Essential Indicators Yes No xX The utility operator(s) are actively working towards necessary certification. Xx The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators X The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. XX] The utility has a safety manual and holds safety meetings. XI Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. X The utility is operating at the level of service that was proposed. xl The operator provides status reports to the manager on a routine basis. x The utility has completed and distributed its Community Confidence Report (CCR). 4) The utility is not on the Significant Non-Compliance (SNC) list. XX The utility maintains an inventory control list. The utility maintains a critical spare parts list. Operation of Utility Comments: The utility worker enrolled in 'Introduction to Small Water Systems Provisional level I Review and State Certification’ class September 17th through the 21st, 2007 in Fairbanks. A preventative maintenance plan is contained in chapter two of the Shageluk Operations and Maintenance Manual. A written daily log is kept each day by the utility worker; however, he needs to use the forms from the operations and maintenance manual. The operator gives a monthly verbal report to the city council each month. The 2006 annual water quality report is on file in the Bethel regional office which was prepared by Water Systems Services. The utility worker has not had any safety meetings and was not able to locate a safety manual. A letter is on file in the Bethel RUBA office from the Department of Environmental Conservation dated September 10, 2007, indicating that the City of Shageluk Water System was taken off the Significant Non-complier List (SNC) for prior stage 1 violations. Inventory control and critical spare parts lists are not being maintained. RUBA Activities For The Coming Quarter RUBA staff will be available if requested to assist with sustainable indicators. It is recommended that a chart of accounts is used that identifies categories in a reasonable, usable manner. Reconciliation of utility accounts needs to be completed monthly. Written personnel evaluations for the utility workers that tie the job description to the evaluations need to be completed. A safety manual needs to be located or developed and regular safety meetings held. Inventory control and critical spare parts lists need to be maintained for the utility services. The utility worker needs to use the forms from the operations and maintenance manual for his daily written logs. October — November — December 2007 2" Quarter FY08 - RUBA Report SS . 158 - October — November — December 2007 2 Quarter FY08 - RUBA Report Stevens Village Activity Report Community Overview Lead RUBA Staff: Jeremy Johnson, Fairbanks Office 2003 Population: 68 Region: Interior Local Governments: IRA Council Stevens Village has a small washeteria with three washers, two dryers, two showers, and two bathrooms. The washeteria was upgraded in 2002. The water plant provides service to the school and to the health clinic. Residents haul water from a watering point, and use honey buckets and outhouses for sewage disposal. Sewage from the washeteria, clinic and school is disposed of in a lagoon. The lagoon is probably filled near capacity and should be discharged. A Village Safe Water sanitation planning feasibility study was completed in 2002, but was not approved. The scope of the new feasibility study has been changed several times to include additional alternatives in an effort to try to identify options that are affordable to the community. Stevens Village had planned on constructing a new multi-use facility to include a Denali Commission funded clinic and a hygiene center with public showers and restroom facilities, but may be looking at renovating existing facilities as a more viable option. A design for a new solid waste facility has been completed. RUBA Activity This Reporting Period Stevens Village does not meet all essential RUBA indicators, although they have made positive progress with the creation of a preventative maintenance plan. Previous records indicate that the Stevens Village washeteria does not generate sufficient revenues on its own to meet operating expenses; it is subsidized by other funds. Although the tribal council has various program and project budgets, it does not have an overall budget that clearly identifies all its funds. The Tribe has some very significant financial liabilities. It is unclear how Stevens Village will be able to pay all these liabilities, much less any annual subsidy for the water utility. RUBA does not have access to Stevens Village accounts; the Tribe hired a private financial company, located in Fairbanks, to manage all financial aspects. There was no RUBA activity this quarter other than minimal phone contact with the administrative assistant and a meeting between RUBA staff and the private financial company. - 159 - October — November — December 2007 2" 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. Xl The utility has adopted a balanced realistic budget. x Monthly financial reports are prepared and submitted to the policy making body. & The utility is current in paying all water/wastewater electric bills. XX The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. XI 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. This was not in Johnny' table. &] YTD revenues are at a level equal to or above those budgeted. XX YTD expenditures are at a level equal to or below those budgeted. KA monthly manager’s report is prepared. XX] Budget amendments are completed and adopted as necessary. Finances Comments: Previously available financial records indicated that annual utility expenses exceed annual revenues by approximately $68,000. It is possible that improved recordkeeping will show the actual deficit to be somewhat lower. Nonetheless, the community must be able to identify the source of funding for any subsidy of the utility and must be able to confirm the availability of those funds. The community did not have an overall budget that clearly identifies all of its income and expenditures. There is some concern that the community may have significant debt. At a meeting between RUBA staff and a private financial company, it was indicated that a new budget has been drafted (Stevens Village is on the Federal fiscal year) and should be adopted in the third week of January 2008. A previously overdrawn line of credit was paid and closed, the 2005 audit was recently received, and the 2006 audit is expected in early February 2008. - 160 - October — November — December 2007 2" Quarter FY08 - RUBA Report Accounting Systems Essential Indicators Yes No x The utility has adopted a collection policy and actively follows it. x The utility bills customers on a regular basis. X An accounts receivable system is in place which tracks customers and reports past due accounts and amounts. Xi An accounts payable system is in place. X The payroll system correctly calculates payroll and keeps records Xl A cash receipt system is in place that records incoming money and what it was for. X __The Utility has a cash disbursement system that records how money was spent. i Sustainable Indicators x A chart of accounts is used that identifies categories in a reasonable, usable manner. & Monthly bank reconciliation’s have been completed for all utility accounts. X The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. Accounting System Comments: The washeteria receives income from user fees and from charges for water/sewer service to the school. The school is billed and pays on a regular basis. The washeteria has not yet had to implement a collection policy. The electric utility bills on a regular basis, and has a collection policy; the Tribe has been taking steps to actively follow it. The hiring of the private financial company has improved the financial outlook for Stevens Village. At the meeting, it was indicated that the accounting system has been streamlined and the QuickBooks system is in much better shape. The QuickBooks program tracks customer accounts and reports past due amounts, accounts payable, and payroll records. A cash receipt and cash disbursement system is in place to record and track income and expenses. All expenditures are made by check, but some improvements may be needed. The chart of accounts identifies categories in a reasonable, usable manner but there is room for improvement. Tax Problems Essential Indicators Yes No X The utility has a system to accurately calculate, track, and report payroll tax liabilities. Xl The utility is current on filing tax reports. x The utility is current on making tax deposits. Xl If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: According to phone contact with IRS and with the Alaska Department of Labor, Stevens Village is current on filing its deposits and reports. - 161 - October — November — December 2007 2" Quarter FY08 - RUBA Report Personnel System Essential Indicators Yes No X) The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators & C1 The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. XX] The utility has adequate written job descriptions for all positions. XX] The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. 1] The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. ® The utility provides training opportunities to staff as needed and available. kik Personnel System Comments: The tribal council has a personnel policy that was prepared by a consultant in 1999 and approved in 2001. The council is considering making changes and updating the policy. Job descriptions are not available for all employees and no evaluations have taken place in recent years. The personnel policy includes a probationary period for new hires, but not evaluations at the end of the probationary period. Organizational Management Essential Indicators Yes No X The entity that owns the utility is known and the entity that will operate the utility is set. Kl The policy making body is active in policy making of the utility. Q® The policy making body enforces utility policy. Xl The utility has an adequately trained manager. X The utility has an adequately trained bookkeeper. The utility has an adequately trained operator(s). Kl The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. Sustainable Indicators X The utility has adopted an organizational chart that reflects the current structure. X The policy making body meets as required. Xl The utility complies with the open meeting act for all meetings. - 162 - October — November — December 2007 2" Quarter FY08 - RUBA Report Organizational Management Comments: The tribal council is the entity that operates the utility and has taken steps to become more active in making and enforcing policy. The tribal administrator has received training from Alaska Vocational Technical Center (AVTECH), Tanana Chief's Conference (TCC) and RUBA. The administrative assistant has received QuickBooks training through the University of Alaska Fairbanks and has previous QuickBooks experience. The washeteria has not needed an ordinance to operate. A water/sewer ordinance will be needed if the utility plans to provide expanded service to customers in the future (e.g. flush/haul system or piped system). The electric utility has policies and procedures. The tribal council does not have a current organizational chart. The council meets on a regular basis, although occasionally meetings are postponed for lack of a quorum, notably during the summer months. Meetings are open to the public. Operation of Utility Essential Indicators Yes No 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 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. XX] The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. XX] The utility maintains an inventory control list. XI The utility maintains a critical spare parts list. XXKE & Operation of Utility Comments: The operator has a Water Treatment OIT certificate and a Water Distribution OIT certificate, both current until 12/31/08. A written preventative maintenance plan was recently provided to RUBA staff from the remote maintenance worker. The manager receives informal reports from the operator and spot checks the washeteria facility on an informal basis. The utility has safety data sheets but a safety manual was not available. RUBA Activities For The Coming Quarter A site visit is anticipated, although none is currently scheduled. Council elections will be held in January 2008 and shortly after elections, a general meeting occurs with many different agencies attending. When the meeting is scheduled, the private financial company will be contacting RUBA staff for an invitation. - 163 - October — November — December 2007 2" Quarter FY08 - RUBA Report Tuluksak Activity Report Community Overview Lead RUBA Staff: Paul Chimiugak, Bethel Office 2003 Population: 466 Region: Lower Kuskokwim Local Governments: Tribal Council od The tribal council operates the washeteria, water v ea, ot OO treatment plant, container haul system, and electrical services for the community. The tribal council is the policy making body for the utility services. Only one watering point, with storage capacity of less than 7,000 gallons, serves the entire community, washeteria, clinic, and the school. Residents haul honey-buckets to 21 bins located sparingly throughout the community. A feasibility study was completed to implement a piped water and sewer system in the future. A larger water storage tank, completion of a new lagoon, and water system improvements are the community's priorities. RUBA Activity This Quarter RUBA staff traveled to Tuluksak with staff from Village Safe Water (VSW) and Alaska Energy Authority (AEA) to attend a regional school district meeting. The topic of the meeting was which local entity will take responsibility of the washeteria and water treatment plant. Currently the school district employs a water plant operator and pays operating and maintenance expenses. The Tribe has been struggling to keep the washeteria side operational while the school takes responsibility for the water treatment operations. RUBA was invited to attend the meeting between the school and Tribe and speak to re-negotiating the responsibilities and billing the school for water usage. A RUBA management assessment was completed in August. The Tuluksak Native Community does not meet all essential management assessment indicators at this time. They have requested that RUBA staff return to the community and provide on-site assistance with meeting essential indicators. The VSW engineer, AEA staff, and Yupik School District staff offered to assist RUBA in accommodating Tuluksak as they reorganize and accept the new responsibility of providing water to their residents. - 165 - October — November — December 2007 2" Quarter FY08 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No &] All revenue and expenses for the utility are listed in the utility budget. XX] The utility has adopted a balanced realistic budget. X Monthly financial reports are prepared and submitted to the policy making body. XK The utility is current in paying all water/wastewater electric bills. 1 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 ee — ——_—_—_n Sustainable Indicators I The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. YTD revenues are at a level equal to or above those budgeted. XX YTD expenditures are at a level equal to or below those budgeted. & A monthly manager’s report is prepared. &X Budget amendments are completed and adopted as necessary. Finances Comments: The budget for the washeteria/water treatment plant and sewage haul has been completed; however Bethel RUBA staff has not received a copy to review. 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. - 166 - October — November — December 2007 24 Quarter FY08 - RUBA Report Accounting Systems Essential Indicators Yes No & The utility has adopted a collection policy and actively follows it. X The utility bills customers on a regular basis. XX] An accounts receivable system is in place which track customers and reports past due accounts and amounts. DJ] 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. ble 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. ‘ ie Dn pee Accounting System Comments: Collection of sewage haul payments has improved due to the fact that collection is made using Powerstat prepayment 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, and then it is submitted to the administrator for approval. Tax Problems Essential Indicators Yes No X The utility has a system to accurately calculate, track, and report payroll tax liabilities. Xl The utility is current on filing tax reports. Xl The utility is current on making tax deposits. X If there are any past tax liabilities, a repayment agreement has been signed and repayments are current. Tax Problems Comments: The 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. - 167 - October — November — December 2007 2" Quarter FY08 - RUBA Report Personnel System Essential Indicators Yes &X The utility has a posted workers compensation insurance policy in effect. No Sustainable Indicators X & X Ww X X The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. The utility provides training opportunities to staff as needed and available. Personnel System Comments: The hiring process includes posting the position and when a person is hired, they are hired by the administrator and then approved by the council. 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 staffs the utility operations and maintenance of the water treatment plant. Organizational Management Essential Indicators Yes HHMMKKE Sustainable Indicators Xd Xd X 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). XX] The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. AAR _ 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. 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. - 168 - October — November — December 2007 2" Quarter FY08 - RUBA Report ———————§ iii il_iuw_eW tw '@ ope” Operation of Utility Essential Indicators Yes No Xd The utility operator(s) are actively working towards necessary certification. xX The utility has a preventative maintenance plan developed for the existing sanitation facilities. some Sea RRM Sustainable Indicators Xl) The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. XX The utility has a safety manual and holds safety meetings. X] Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. x] The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Community Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC) list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. HHXXNx 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 pay for 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 operation and maintenance reports to the tribal meetings regularly. RUBA Activities For The Coming Quarter RUBA staff will continue to monitor the monthly financial reports, request a copy of the budget to support the budget ordinance, and request an accounts payable report showing vendors. Staff will assist, if requested, with a utility ordinance that includes a collections policy, and job descriptions. - 169 - October — November — December 2007 2" Quarter FY08 - RUBA Report Yakutat Activity Report Community Overview Lead RUBA Staff: Tammy Helms, Anchorage office 2003 Population: 619 Region: Interior Local Governments: Home Rule Borough ed “: Noes. 7 . . . . i Water is derived from four wells, is treated and piped to all 191 homes in the community and the schools. Several wooden storage tanks provide pressure to the water system; three need replacement. Piped sewage receives primary treatment; a secondary treatment facility is nearing completion. A private firm collects refuse, and the Borough operates the landfill. Electricity is provided by Yakutat Power, Inc., using four diesel-fueled generators. The company is interested in exploring hydroelectric potential at Chicago Harbor. RUBA Activity This Reporting Period RUBA staff traveled to Yakutat in November to conduct an assessment of management capacity. The City and Borough of Yakutat has met all RUBA essential management capacity indicators and nearly all of the sustainable indicators. City and Borough staff was open and helpful with providing information to complete the assessment. The City and Borough realizes the importance of community health, financial stability, effective utility management practices and sustainability. -171- October — November — December 2007 2” Quarter FY08 - RUBA Report Capacity Indicators Finances Essential Indicators Yes No Xl All revenue and expenses for the utility are listed in the utility budget. X The utility has adopted a balanced realistic budget. Monthly financial reports are prepared and submitted to the policy making body. X The utility is current in paying all water/wastewater electric bills. X The utility has on hand a year’s adequate fuel supply or it has financial plan to purchase an adequate. Xx The utility is receiving revenues (user fees or other sources) sufficient to cover OP erating expenses. _ . Sustainable Indicators The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and Repair & Replacement (R&R) costs. This was not in Johnny' table. YTD revenues are at a level equal to or above those budgeted. YTD expenditures are at a level equal to or below those budgeted. A monthly manager’s report is prepared. Budget amendments are completed and adopted as necessary: Heb Finances Comments: Monthly financial reports are prepared and submitted to the Assembly at the regularly scheduled meeting. The profit and loss reports are created in Fundware and show period to date, year to date, year to date budget and percent of the budget used per department all on one sheet. The Assembly also receives a profit and loss report of each department with the individual classes listed. The utility receives power from its own utility company CBY/Y AK Power. Delta Western is the local fuel company that runs the fuel distribution/sales. CBY anticipates no fuel shortages and has efficiently lobbied the fuel company to purchase fuel at the reduced bulk rate. The water and sewer revenues are sufficient to cover operating expenses but not enough to set funds aside for a repair and replacement account. CBY imposes the following taxes: property tax, severance tax, sales tax and bed tax to off set water and sewer expenses for repair and replacement. The current residential water and sewer rate is $51.00. Accounting Systems Essential Indicators Yes No The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. An accounts receivable system is in place which tracks customers and reports past due accounts and amounts. An accounts payable system is in place. The payroll system correctly calculates payroll and keeps records A cash receipt system is in place that records incoming money and what it was for. The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators xl A chart of accounts is used that identifies categories in a reasonable, usable manner. X Monthly bank reconciliation’s have been completed for all utility accounts. xl The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. HXKK WHX -172- October — November — December 2007 2" Quarter FY08 - RUBA Report Accounting System Comments: The City and Borough of Yakutat has an adopted collection policy and follows it actively. If customers do not pay, the billing clerk will have the services disconnected. In cases where no shut off valve is available, the clerk files for small claims in court. Customers are billed monthly; the monthly statements are on one piece of paper but are itemized separately. Any customers with past due amounts will have their billing envelope stamped with Past Due on the outside to bring attention to it. The City and Borough of Yakutat utilizes Fundware for accounts receivable, accounts payable and payroll. The system is set up properly and has been a tool in keeping the City and Borough of Yakutat's finances reliably. The chart of accounts identifies fixed assets within the program. In the near future, the CBY will switch from Fundware to Sage MIP. A consultant will provide onsite training for the new accounting software. The Assembly implements a purchasing system that requires prior approval and a purchase order. The manager must approve orders. Tax Problems Essential Indicators Yes No X The utility has a system to accurately calculate, track, and report payroll tax liabilities. XxX 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: As stated previously, the City and Borough of Yakutat utilizes Fundware accounting that accurately tracks, calculates and reports payroll tax liabilities. Currently, the IRS Tax Advocate has reported the City and Borough of Yakutat owes federal taxes but has a payment agreement and is current with the schedule of payments due. Personnel System Essential Indicators Yes No 4 The utility has a posted workers compensation insurance policy in effect. _ Sustainable Indicators X The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML, or DCED for topics and language. X The utility has adequate written job descriptions for all positions. X The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. & The utility has an adequate written hiring process. x The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. xX The utility has a probationary period for new hires that includes orientation, job- training/oversight, and evaluations. X The utility provides training opportunities to staff as needed and available. - 173 - October — November — December 2007 2 Quarter FY08 - RUBA Report Personnel System Comments: The City and Borough of Yakutat has a posted workers compensation insurance policy in effect from 7/1/07 to 7/1/08. They work with AML/JIA for insurance. The City and Borough of Yakutat has an adopted personnel policy that includes a 90 day probationary period for employees. Employee’s files contain I-9, awards and certifications received along with a Memorandum of Hire. Training opportunities for staff are provided as funds allow or opportunities by other sponsors come available. Organizational Management Essential Indicators Yes No X The entity that owns the utility is known and the entity that will operate the utility is set. 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 XK) The utility has adopted an organizational chart that reflects the current structure. Xl The policy making body meets as required. x) The utility complies with the open meeting act for all meetings. XNRMXS Organizational Management Comments: The current utility operator is trained for this system as well as two alternates. All have been OIT certified. The operators will receive further training as resources allow. The City and Borough of Yakutat is historically an active policy making body that enforces set policies. The utility manager has held the current position for three years. The bookkeeper has received hands on training in the office and is comfortable and efficient with the accounting system. The policy making body meets twice a month; on the first and third Thursdays of each month. The Borough Assembly members are elected at large to terms of three years. There are no term limits. October — November — December 2007 2" Quarter FY08 - RUBA Report Operation of Utility Essential Indicators Yes No X The utility operator(s) are actively working towards necessary certification. x The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators X The manager receives a monthly O&M report from the utility operator and routinely “spot checks” the facilities to see that the maintenance items are being completed. ® The utility has a safety manual and holds safety meetings. 4} Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. X The utility is operating at the level of service that was proposed. X The operator provides status reports to the manager on a routine basis. X The utility has completed and distributed its Community Confidence Report (CCR). X The utility is not on the Significant Non-Compliance (SNC) list. Db] The utility maintains an inventory control list. &X The utility maintains a critical spare parts list. Operation of Utility Comments: As stated previously, the current utility operators are all currently certified at the OIT level. The utility has a preventative maintenance plan developed for the facility. The utility operator is in daily contact with the utility manager to give updates on the water system. The manager receives a copy of the monthly water report sent to ADEC. The utility currently meets all required drinking water regulations. The utility operator does not currently keep a written inventory control list. The utility manager will be working with another agency to create an accurate inventory control list. The utility does have a critical spare parts list. The City and Borough of Yakutat has distributed a copy of the CCR to the community and works with AML/JIA to hold monthly safety meetings. They also provide a safety manual. AMLJJIA provides safety material for the meetings free of cost as part of their risk management program. RUBA Activities For The Coming Quarter RUBA staff will provide assistance to the City and Borough of Yakutat in working to improve sustainable indicators in the areas of Utility Finance, and Operation of Utility. It is recommended that the City/Borough identify revenue to sufficiently cover operating expenses and R and R cost, and that the Assembly should work with the operator to create and maintain an inventory control list. -175- October — November — December 2007 2" Quarter FY08 - RUBA Report Non-RUBA Communities Ambler Margaret Hansen, LGS/RUBA, Kotzebue Office Kotzebue RUBA/LGS provided on-site training and assistance to the new administrator and city clerk on financial management. She also provided phone and fax assistance during the quarter on payroll, policy clarification and termination procedures of Alaska Village Electric Cooperative (AVEC) employee. The City of Ambler has been unable to keep up with the operation and maintenance costs of city owned buildings and facilities over the last two years partly because there have not been enough water/sewer project jobs. Poor cash flow has affected the City's ability to keep critical spare parts on hand for emergencies and to plan for future operation and maintenance costs. Without jobs in the community, most residents have voluntarily disconnected from cable service in order to pay their water/sewer bill. The City disconnected five homes from water/sewer service due to non-payment, but most of those have used their permanent dividend to pay the outstanding utility bills. RUBA staff is assisting the City in determining the price per gallon of fuel to allow enough funds for future fuel shipments and operating costs. The cost per gallon of fuel to residents is now $7.00 a gallon. Coffman Cove Lawrence Blood, LGS/RUBA, Juneau Regional Office On December 5-6, 2007, Juneau RUBA staff traveled to the City of Coffman Cove to provide the city clerk training and technical assistance. The City recently hired a new city clerk with no prior experience in municipal government. RUBA staff provided training in records retention, ordinances, meeting notices, and codification of ordinances in their municipal code. RUBA staff assisted the clerk in codifying all FY-07 and FY-08 ordinances. During the period of time when the City was without a city clerk, the council made several changes to the municipal code without using written ordinances. RUBA staff assisted the clerk in drafting several ordinances that reflected the recent changes to the municipal code. The most recent RUBA assessment of management capacity indicators was completed on April 19, 2007. At that time, the City of Coffman Cove successfully met all essential indicators. Since then, Coffman Cove has successfully satisfied additional sustainable indicators by submitting supporting documentation of completing an inventory control list and critical spare parts list which is now being kept at both City Hall and the water treatment plant. The community continues to submit supporting documentation on a quarterly basis consisting of monthly financial reports. The documents received during the last quarter confirm that Coffman Cove still meets all essential capacity indicators. -177- October — November — December 2007 ane Quarter FY08 - RUBA Report Fort Yukon Jeremy Johnson, LGS/RUBA, Fairbanks Regional Office Fairbanks RUBA staff traveled to Fort Yukon this quarter and determined that the City of Fort Yukon does not currently meet all essential indicators. During this quarter, LGS/RUBA staff maintained contact with the city manager and the city clerk via phone, fax, email, and an on site visit responding to questions regarding budgeting, financial reporting and elections. The acting city treasurer resigned July 2007. At the end of December 2007 a replacement, after six months without a treasurer, was hired. Additional staff changes have occurred; one of two accounting clerks has left and a fully certified water operator has returned. Fort Yukon was nominated to receive on-site QuickBooks installation and training through a grant from the RUBA program. The first trip by a contractor and RUBA staff to install QuickBooks and begin staff training will occur in January. Goodnews Bay Ralph Andrew, LGS/RUBA, Dillingham Regional Office Dillingham Regional Office RUBA staff traveled to Goodnews Bay October 15-17, 2007 at the request of the mayor to assist the city clerk with bookkeeping, payroll, and gaming reporting. The city clerk has prior bookkeeping experience but has been struggling to cover duties for the city administrator who is presently on leave. RUBA helped complete a prior quarter payroll correction and assemble documentation for the state Department of Revenue Tax Division. In recent months the Tax Division identified various gaming law violations and required a comprehensive response from the City by November 1, 2007. RUBA helped staff initiate telephone contact with Department of Revenue staff and will continue providing recommendations and support upon request. RUBA also met with the tribal administrator to request an overview of water-sewer utility management. The Tribe is finding success managing the utility jointly with the Yukon-Kuskokwim Health Corporation Rural Utility Cooperative based in Bethel. The community's water-sewer project, led by the Alaska Native Tribal Health Consortium, is still underway. Tribal officials believe the project will be completed near spring 2008. RUBA encouraged the tribal administrator to engage in a joint planning effort with the City since both are seeking solid waste and other infrastructure improvements. The water/sewer utility is jointly managed by the Native Village of Goodnews Bay and the Yukon Kuskokwim Health Corporation Rural Utility Cooperative (YKHC RUC). In prior quarters the utility met RUBA essential indicators. Presently, RUBA is awaiting confirmation of various reports and management information to verify essential indicators continue to be satisfied. The Alaska Native Tribal Health Consortium (ANTHC) is the lead agency on the sanitation project and is presently finalizing project construction including performing installation of plumbing into private residences. A sanitation business plan, a sanitation grant condition being developed by a consultant with direction from ANTHC, is nearing completion. In recent quarters, RUBA contributed comments on a draft business plan with a focus on affordability and sustainability. - 178 - October — November — December 2007 2" Quarter FY08 - RUBA Report Holy Cross Ken Berlin, LGS/RUBA, Bethel Regional Office Bethel RUBA staff conducted a Newly Elected Officials Workshop in Holy Cross on December 5 and 6, 2007. Six city council members, the city clerk and one interested resident of Holy Cross attended the two day workshop. The city council is the governing body with direct fiscal responsibility for all services provided in Holy Cross. The sanitation services continue to be managed by the Rural Utility Cooperative and meet all essential management indicators at this time. RUBA staff talked with city administrative staff about a possible conflict of interest in a meeting between the City and the local Native corporation concerning land issues. RUBA staff also received a call from the mayor for the City of Holy Cross asking how to set up an administrator's position. The City of Holy Cross administration and finance office is run by the city clerk. If the administrator's position is established, it would make the clerk's position more effective. A city administrator's job description was faxed to them. Kake Lawrence Blood, LGS/RUBA, Juneau Regional Office On October 29 -31, 2007, Juneau RUBA staff traveled to Kake to complete a RUBA assessment of management capacity indicators. At this time, the City fails to meet all of the RUBA essential management capacity indicators. The two main problem areas are that the City currently has not adopted a FY08 budget and the provisions in the collection policy are not being followed, resulting in a very low collection rate. City staff was open and helpful with providing information to complete the assessment and are eager to work towards implementing better utility management practices. The City realizes the importance of community health and has committed to work with RUBA staff to address the deficient essential indicators. Kasaan Lawrence Blood, LGS/RUBA, Juneau Regional Office On November 13-14, 2007, Juneau RUBA staff traveled to Kasaan to provide city clerk/treasurer training and technical assistance concerning elections. The City provides the sanitation services to the community. The City failed to conduct their regular municipal election in October 2007 due to staff turnover. RUBA staff covered: Title 29, Kasaan Municipal Code, public records and records retention, and how to find information through the LOGON webpage. RUBA staff assisted the new clerk in drafting a Department of Justice pre-clearance letter for the upcoming special election and creating an election checklist specific to Kasaan Municipal Code. The most recent assessment of management capacity indicators was completed on May 24, 2007. At that time, the City of Kasaan successfully met all essential indicators. The community continues to submit supporting documentation on a quarterly basis consisting of monthly financial reports; however, the City has not yet completed their FY-08 budget. Until the budget is finalized and adopted by the council, the City does not meet any of the essential or sustainable indicators involving budget issues. - 179 - October — November — December 2007 2" Quarter FY08 - RUBA Report Koyukuk Leroy Seppilu, LGS/RUBA, Fairbanks Office At the request of the city council and acting mayor, Fairbanks RUBA staff traveled to the community to train and work with the new city administrator to complete the FY '08 budget and FY '06 Certified Financial Statement (CFS) and submit the forms to Juneau in order to participate in the Community Energy Assistance Program (CEAP). With RUBA assistance, the new city administrator completed the budget and CFSs and submitted both forms. The City is expected to receive $79,000. The money will be used to pay off a fuel bill owed to a vendor that delivered fuel to the City last summer. The City does not currently have a steady, permanent operator hired to maintain the washeteria services. Nulato Jeremy Johnson, LGS/RUBA, Fairbanks Regional Office Fairbanks RUBA staff traveled to Nulato in October to provide financial training and Newly Elected Officials Training at the request of the community. Assistance was also provided regarding research of a land title issue. The City of Nulato currently meets all RUBA essential indicators. During this quarter, RUBA staff maintained regular phone and email contact with the city administrative staff and with the mayor, providing assistance with financial recordkeeping, QuickBooks, tax reporting, budgeting, elections, city council issues, and miscellaneous matters. Port Lions Tammy Helms LGS/RUBA, Anchorage Regional Office RUBA staff traveled to Port Lions in October for an on-site visit. During the visit, RUBA staff assisted the city clerk in end of the month water and sewer billing, third quarter reports and general clerk training. RUBA staff has also provided telephone support numerous times throughout the quarter for QuickBooks accounting and city code questions. The City has begun its new water treatment plant project through the Village Safe Water program. The City of Port Lions was selected as one of the three communities to receive QuickBooks on-site training with the QuickBooks consultant provided by a RUBA grant. The QuickBooks installation and training will begin next quarter. - 180- October — November — December 2007 2” Quarter FY08 - RUBA Report Russian Mission Flora Olrun, LGS/RUBA, Bethel Regional Office Bethel RUBA staff traveled to Russian Mission in December at the request of the community. RUBA staff assisted city staff to find her chart of accounts and demonstrated how to use it. City staff searched for the grant files which were located in two different places. RUBA staff provided an Excel worksheet, with objectives, for updating the grant reports: verification of in-kind/cash match requirements, bringing the grant reports up to date according to the required timeframe and closing out the grants. RUBA staff also provided guidance to staff regarding compilation of grant reports. Staff updated one grant which was closed out and the cash match was approximately $7,000 over the original amount that was put in the budget. The Yukon Kuskokwim Health Corporation — Rural Utility Cooperative (YKHC-RUC) currently has a signed memorandum of agreement (MOA) with the City transferring maintenance and operations of all water and sewer services to RUC. At this time, the utility meets all essential and sustainable indicators. This pertains to the management of the utility only. A Community Development Block Grant workshop was held in Bethel on October 4 through 5, 2007. Russian Mission sent two council members, Delores Askoak and Sharon Kozevnikoff along with one staff member, Agnes Housler to the training session. Saint Michael Melissa Taylor, LGS/RUBA, Nome Regional Office Nome RUBA staff traveled to St. Michael this quarter to conduct a reassessment. Saint Michael has not recovered from the fuel shortage it experienced last winter and is again in arrears with the Internal Revenue Service. They currently do not meet all essential management indicators. Alaska Native Tribal Health Consortium (ANTHC) constructed a sanitation project in Saint Michael and transferred the ownership of the sanitation system to the City in late 2006. The ANTHC project had been paying for fuel and electricity costs associated with the vacuum plant, washeteria, and water treatment plant, however, according to the City, did not provide information of those expenses to the City. The City was unable to plan appropriately and did not adopt an appropriate budget to support these activities. The City is still trying to recover from that set back. Selawik Margaret Hanson, LGS/RUBA, Kotzebue Regional Office RUBA staff traveled to Selawik to do an initial RUBA management assessment with City of Selawik staff. They had almost everything prepared in a box as outlined and requested prior to the visit. The assessment was not completed as RUBA is waiting for the confirmation from IRS regarding tax status and a price quote for critical spare parts they need to order to determine if the City has enough funds set aside for critical spare parts. Seldovia Tammy Helms, LGS/RUBA, Anchorage Regional Office The City of Seldovia met and continues to meet all of the essential capacity indicators since November 2006. The City of Seldovia recently hired a city manager. The City is scheduled to begin a distribution system replacement this fall. In October, RUBA staff traveled to Seldovia to meet with the new city manager and to attend a joint meeting with the City of Seldovia, Village Safe Water and the Department of Environmental Conservation concerning future water projects for Seldovia. - 181- October — November — December 2007 2" Quarter FY08 - RUBA Report Tanana Jeremy Johnson, LGS/RUBA, Fairbanks Regional Office Fairbanks RUBA staff made a site visit in November 2007 primarily to attend a Too'gha board meeting and listen to a presentation from Alaska Rural Utility Collaborative (ARUC); Too'gha is considering joining ARUC. Too'gha is also in the process of applying to the Regulatory Commission of Alaska (RCA) for a Provisional Certificate. Important to note is that the Too'gha utility manager resigned on December |, 2007 and the Tribe assumed some of his job duties, although no specifics had been finalized at the board meeting. The Tanana water/sewer utility (Too'gha Inc.) currently does not meet all essential indicators. During this quarter, RUBA staff maintained phone and email contact with the city manager, the city clerk and the Too'gha administrative manager. Teller Melissa Taylor, LGS/RUBA, Nome Regional Office Nome RUBA staff traveled to Teller three times this quarter to provide RUBA assistance, specifically with budgets and certified financial statements. The City is working in partnership with Village Safe Water (VSW) 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 (ANTHC) to construct a new health clinic which is in progress. The City is still unable to meet all essential management indicators. 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 management essential indicators and a majority of the sustainable indicators. RUBA staff also traveled to Thorne Bay for the initial QuickBooks Pro accounting software installation and training. A contractor was hired by the RUBA program to provide this service to the utility department in Thorne Bay. The contractor and RUBA will make three separate trips to Thorne Bay to provide on-site training and after the third trip will draft and produce a customized QuickBooks manual for the community. Using the Division of Community and Regional Affairs (DCRA) business plan template, RUBA staff assisted Thorne Bay utility staff in drafting a business plan for the water treatment and water distribution systems. The community applied for a Village Safe Water (VSW) grant to upgrade their water treatment facility and believed that a current business plan was required. The City is also drafting a business plan for the wastewater system. - 182- October — November — December 2007 2" Quarter FY08 - RUBA Report Wales Melissa Taylor, LGS/RUBA, Nome Regional Office RUBA staff traveled to Wales this quarter to update the RUBA assessment. The City has shown a marked improvement in the management, however, they are still unable to meet all essential indicators at this time. 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. - 183 -