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HomeMy WebLinkAboutRural Utility Business Advisor Program RUBA Quarterly Report April 1 - June 30, 2011 FQ FY2011RUBA Quarterly Report April 1 -June 30,2011 Fourth Quarter SFY11 BA RURAL UTILITY wk 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 April 1 -June 30,2011 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 April 1 through June 30,2011. This report describes the activities in two general areas.The first area is in 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 consist of those that have signed RUBA agreements requesting quarterly onsite assistance and have developed a work plan with RUBA staff to meet specific capacity building goals and communities that had a RUBA assessment completed this quarter.The communities listed as technical assistance provided are communities that did not have a signed RUBA agreement;however,they requested and received staff travel and on-site assistance this quarter. Major Issues Staffing RUBA staff members are classified in the Alaska State employment system as Local Government Specialists (LGS). Welcome to Kathy Atkinson who was previously a Local Government Specialist with the Division of Community and Regional Affairs Local Boundary Commission program and is now a Local Government Specialist for the RUBA program.She adds strong skills in research,analysis,law,and regulations to our program.Her first day was April 1 in the Anchorage office. Welcome also to Myra Ambrose,who accepted a position as a RUBA/Local Government Specialist in the Anchorage office.Myra previously worked for Kawerak Inc.in Nome since 2003.Kawerak,Inc is regional non-profit organization serving 20 tribal entities within the Bering Straits.Myra also worked as a city clerk in Galena for six years.She is originally from Nulato and has traveled to many interior and Norton Sound communities.Her experience delivering services to rural Alaska will be a welcome addition to our Anchorage staff and their mission of assisting utilities and local governments in the south-central region. Myra's first day with RUBA was May 16. Gina Shirey-Potts accepted the position as a Local Government Specialist III in the Juneau Division of Community and Regional Affairs (DCRA)office working for the RUBA program.Gina previously worked as a Local Government Specialist for DCRA in Juneau -l- RUBA Program Scope of Report before joining the Division of Coastal and Ocean Management with Department of Natural Resources seven years ago.She is an excellent addition to our Juneau staff and their mission of assisting utilities and local governments in the Southeast region.Gina's first day with DCRA will be July1. Anchorage RUBA staff member Ronalda Rude-Olivera resigned from the RUBA program to move to California for family medical reasons this quarter.We wish Ronalda and her family good health. Recruitment for a position in Juneau and a position in Anchorage are ongoing with the expectation of filling both soon.Recruitment was opened and then extended to allow additional applications from employees of a state program no longer funded.These employees have rural service experience and networking contacts through a different state department. Maintaining staffing continues to be difficult.Applicants with the skill set required to provide financial,technical,and managerial assistance to rural communities are offered higher pay from non-profits.Prospective employees have completed the recruitment process and then turned down the offer of employment citing the lack of pay.Two of the five recent hires met LGS II qualifications in recruitment for a LGS I,LGS II,LGS IU flex position.An employee hired in the LGS II status requires mentoring and their travel must be accompanied by an LGS III.The additional supervision and travel assistance limits the time available for the senior LGS III to service their own individually assigned communities.In addition,the required supervision burdens the travel budget in sending two LGS to one community.LGS II hires are expected to meet LGS III criteria within one year of hire and be flexed into that level. Disaster Assistance:On May 23,Anchorage RUBA staff was contacted by the Crooked Creek Traditional Council (CCTC)requesting assistance with the emergency management stemming from a flood that occurred.Karl Edwards,Division of Homeland Security and Emergency Management was in Crooked Creek providing assistance with the reporting requirements during a disaster declaration.RUBA staff assisted in researching land titles, mapping and sample documents for the community so that it could obtain a sufficient interest in real property (site control)for the temporary housing planned for the families that lost homes in Crooked Creek.The recent record floods substantially damaged more than half of Crooked Creek's housing.The Kuskokwim Corporation has agreed to make the land available for the temporary structures.RUBA staff is also working with Division of Homeland Security to assess the damage to water sources for the community. Fairbanks RUBA staff worked with other agencies to provide assistance to Birch Creek in May and June,after a fire destroyed the building that housed the electrical generation and the water treatment.Currently the community has a temporary watering point though the water is untreated and a boil water notice is in effect.Cases of bottled water were also sent to the community by Arctic Resources Group and Tanana Chiefs Conference.The situation was declared a disaster on the local level and an application for disaster assistance was submitted to the state.Cost estimates are being completed for rebuilding the facilities.RUBA staff will continue to monitor the situation and provide assistance as needed. RUBA 4"Quarterly Report -SFY11 -2- RUBA Program Scope of Report Power Cost Equalization (PCE):Rural Alaskan communities continue to request assistance from RUBA staff for training and assistance in completing PCE reports.The PCE program is currently performed within the Alaska Energy Authority (AEA).When communities are denied the PCE subsidy for lack of proper reporting,RUBA staff may assist the community. In the case of St.George,RUBA staff assisted with fuel reporting which affected the PCE reporting resulting in a PCE rate increase from $.28/KWH to $48.80/KWH.This additional subsidy payment will assist the sanitation utilities in lowering their expenses to produce water/wastewater services to the community. Coordination/Communication Alaska Energy Authority (AEA):On June 8,the DCRA Director and three RUBA staff attended the Rural Energy Open House presented by AEA.RUBA staff toured the 'power plant in a box'financed by Denali Commission and slated for delivery in Ruby.Three generators,all necessary wiring,and electrical panels are assembled in a portable metal van for shipment to Ruby.The concept will limit the need for power house buildings and maintenance in small communities.It includes a by-product heat recovery unit which will further lower fuel costs in rural Alaska.RUBA staff also spoke to representatives from Alaska Native Tribal Health Consortium (ANTHC),Alaska Rural Utility Collaborative (ARUC),and the Environmental Protection Agency (EPA).Eventually this concept may produce a 'water treatment plant in a box.' Alaska Native Claim Settlement Act (ANCSA)Workshop:Fairbanks RUBA staff attended a workshop in Fairbanks on May 4 and 5 regarding ANCSA.This workshop was jointly presented by the Bureau of Land Management (BLM)and the Division of Community and Regional Affairs (DCRA)staff.Students from Point Lay,Kivalina,Shageluk,Anvik, and Rampart attended with the Tanana Chiefs Conference hosting the workshop.ANCSA established the right of village corporations to own lands and to provide lands for present and future needs of the community.Sanitation project construction sites are placed on these lands and often require RUBA staff assistance with drafting the agreements for land distribution. Alaska Rural Utility Collaborative (ARUC):In April,Anchorage RUBA staff attended and made a presentation to the Alaska Rural Utility Collaborative (ARUC)Advisory Committee in Anchorage.The presentation was in response to a request by the ARUC manager to provide advisory committee members with information on services that RUBA staff provides to communities.Information was presented on RUBA classes,how they can be requested,and the RUBA training grant.RUBA's QuickBooks contracts which provide QuickBooks support through installation,training,and program support were presented and state fuel loan programs were also discussed.The group was interested to learn that RUBA routinely assists utilities with IRS issues,rate studies,Power Cost Equalization issues,and meeting program requirements to receive Community Revenue Sharing funds.Brochures detailing RUBA training and local government assistance were distributed to the group. On May 4,the ARUC Utility Operations Program Coordinator and ARUC Billing Account Specialist visited the Nome RUBA office.They reported on a trip to Gambell and stated that Gambell is exploring the possibility of becoming an ARUC member.RUBA staff and ARUC © RUBA 4"Quarterly Report -SFYII -3- RUBA Program Scope of Report staff discussed additional communities in the region who are already members of the ARUC program. Alaska Rural Water Association (ARWA):In April,Juneau RUBA staff met with an ARWA source water protection specialist in Juneau to discuss issues facing rural utility systems across Alaska.The specialist and RUBA staff talked about the elevated levels of disinfectant byproducts (DBPs)in Angoon and Kake's water supplies,strategies for protecting the reservoir in Sitka,challenges with groundwater arsenic on the Kenai Peninsula,and proposed solutions to the drinking water radiation in Wales. Alaska Water Wastewater Management Association (AWWMA):AWWMA continues to maintain a training data base for RUBA sponsored class participants.AWWMA has placed a link on their web site that allows the public and funding agencies to query successful completion of RUBA management courses.AWWMA updates the data base with information provided by RUBA upon completion of each course.This training data base will also track and report the need to issue a utility manager certificate upon completion of all eight courses and the final exam administered by RUBA. Department of Environmental Conservation (DEC):On April 7,Anchorage RUBA staff attended a Financial Capacity Assessment workshop at the Department of Environmental Conservation (DEC)conference room in Anchorage.DEC is working with the Environmental Finance Center at Boise State University to develop measures of capacity to determine sustainability of water systems that apply for loans through the new Drinking Water State Revolving Fund.These systems are required to demonstrate sound financial capacity in order to reduce risk to the revolving funds.A tool to assess financial capacity was demonstrated,which uses a number of ratios derived from financial data found in audits. Data from different utilities was reviewed using the tool and there was discussion about determining financial capacity when audits may not be available.There was also interest in the idea of RUBA staff assisting utilities to improve financial capacity in cases where loan funds are denied because of a poor financial assessment.The current RUBA management assessment format will be used when developing the measures of capacity. In April,May and June,Fairbanks RUBA staff continued to meet the local Alaska DEC Drinking Water Specialist Marci Irwin for collaboration to update the "Plain English Guide to Alaska Drinking Water and Wastewater Regulations.”The revised guide will incorporate recent regulations and policies adopted after the original 1998 version.The completed draft was provided to the RUBA publication technician in late June.It will be printed and reviewed in July.with final publication projected by September.The final version will be delivered to rural utilities providing water/wastewater services. Homeland Security and Emergency Management:Homeland Security and Emergency Management personnel contacted RUBA staff this quarter regarding two communities.The first emergency involved a fire in Birch Creek that destroyed the village water utility and power plant.The situation was declared a disaster on a local level;a state disaster declaration is also being requested.Temporary water service has been installed,although it is untreated RUBA 4"Quarterly Report -SFY11 -4- RUBA Program Scope of Report and a boil water notice is in effect.RUBA staff will continue to monitor the situation and provide assistance as necessary. The second community of concern involved a flood.The flood occurred during the week of May 9 and substantially damaged more than half of Crooked Creek's residential area. Temporary housing will be necessary for the families that lost their homes with a short - construction season before the winter cold and freezing weather sets in.RUBA staff is assisting coordination efforts with Crooked Creek tribal officials,emergency management staff,Kuskokwim Health Corporation,and Division of Community and Regional Affairs to the federally declared disaster for Crooked Creek's recovery.The effort is focused on expediting the recovery before freeze up,which is expected by early October. Remote Maintenance Worker (RMW):In May,RUBA staff from Bethel,Kotzebue, Anchorage,and Fairbanks attended the annual RMW retreat in Anchorage.RUBA staff joined the two-day RMW retreat in a coordinated effort to share information.The RUBA program provides training and technical assistance for the management of utilities while the RMW program provides training and technical assistance for the operation of utilities.The two programs,noted by DEC and DCRA officials,support and complement one another and are financed by the same grant.Including RUBA personnel participation in the RMW retreat promotes cohesiveness between the two programs.The RUBA program manager and the RMW program manager are planning to combine both annual staff retreats in FY12 -developing shared exercises to encourage additional interaction between professionals providing rural Alaska sanitation support and assistance. ,Tanana Chiefs Conference (TCC):In May,Fairbanks RUBA staff attended an inter-agency «meeting at the Fairbanks TCC Office of Environmental Health.Department of sEnvironmental Conservation (DEC),TCC staff and engineers,remote maintenance workers '(RMW),Alaska Native Tribal Health Consortium (ANTHC)officials and engineers and RUBA staff discussed in detail the projects and communities of the TCC/interior region. Technical Assistance Providers (TAP):In April,Bethel RUBA attended the TAP teleconference and spoke to the issues concerning sanitation services in Kwigillingok.TAP is a group of representatives from various sanitation agencies who provide an intensive, coordinated,and ongoing technical assistance program to distressed public water systems. Kwigillingok has a flush haul system,new washeteria and a new water treatment plant. Approximately a third of the village is served by flush and haul systems while the rest are still using honey buckets.Bethel RUBA staff will provide technical assistance and update the RUBA assessment information.Bethel staff also spoke to requested technical support issues with Scammon Bay and assisted in bringing their new city manager up to date regarding RUBA compliance.Scammon Bay will receive a four million dollar grant to build a new water plant from a funding source that does not require management compliance,however the additional 1.7 million dollars in grant money to complete the project will require RUBA management compliance.The project engineer for Scammon Bay spoke to the membership of Alaska Rural Utility Collaborative (ARUC)as an option to meeting RUBA compliance. RUBA 4"Quarterly Report -SFY11 -wnFy RUBA Program Scope of Report RUBA staff participated in a TAP conference on May 18 regarding Gambell.Gambell was awarded capital funding for a water/wastewater project,however they have been deemed non-compliant for non-payment of federal taxes and do not create monthly finance reports for the utility board.RUBA staff visited the community on April 6-8 to complete a management assessment and will return in June to assist with drafting the FY12 budget. RUBA staff is also providing assistance with the IRS issue.RUBA reported to the TAP group that the Gambell city clerk has been able to correct several deficient management indicators in the accounting section of the assessment.Gambell is also to be commended for meeting all regulatory requirements for water testing and having their name removed from the Significant Non-Complier (SNC)list this quarter. . On June 16,Bethel staff participated in a TAP teleconference to discuss the status of Scammon Bay's water and sewer utility.In attendance were Scammon Bay's vice-mayor, city manager and water treatment operators,DEC Drinking Water Program Tap Coordinator, and the community's ANTHC project engineer.The meeting's focus consisted of answering questions the new city manager had regarding collection of water and sewer user fees, potential rate increases,and the timing of construction of the community's new water treatment plant.The new city manager was praised by Bethel RUBA staff and DEC Drinking Water Program Tap Coordinator for the leadership taken in dealing with the city's administrative problems. University of Alaska Fairbanks (UAF):Dr.Nakazawa,UAF Cooperative Extension Service received suggestions and editing services from the RUBA program manager on a project entitled "Handbook for Community Change,Working together to Improve Alaskan Communities.”This publication is intended to help resolve community issues and learn specific information through actual involvement and developing a plan of action.The project began as an update to a previous publication and resulted in both a handbook and a video. These materials are now available to the public through Alaska Cooperative Extension offices statewide.These handbooks may be useful to utility managers as they begin the planning process for new construction projects that should involve public participation. On May 19,Dr.Nakazawa also met with the RUBA program manager to discuss a wastewater project proposal.Dr.Nakazawa is gathering research and support for the development of a wastewater demonstration and training center.Assistance was requested to complete a feasibility study to investigate building an Onsite and Small Systems Wastewater Treatment Demonstration Center.This facility will provide hands-on education on wastewater treatment systems to a wide variety of user groups.RUBA staff,Alaska Native Tribal Health Consortium (ANTHC),Village Safe Water (VSW),US Rural Development, Denali Commission,Alaska Job Corps,and the Alaska Rural Water Association (ARWA) staff will continue to meet to provide input for development of the feasibility study. Village Safe Water (VSW):Representatives from VSW,Alaska Native Tribal Health Consortium (ANTHC),USDA Rural Development,and RUBA met in June to review capital improvement sanitation project applications.RUBA staff provided assistance in scoring the operations and maintenance portions of the applications and confirmed which applicants had "met all essential indicators in RUBA management assessments.RUBA also confirmed which RUBA 4"Quarterly Report -SFY11 _-6- RUBA Program Scope of Report communities had management employees who had attended a RUBA utility management class.Applicants receive additional points for having a utility manager who participated in at least one of the eight 32-hour management classes RUBA presents.RUBA also provided _community operations information related by staff member trip reports who had visited a majority of the communities applying for funding.It was interesting to note that a majority of the CIP applications were to request funds for planning studies. Bethel RUBA staff traveled to Newtok on June 9 for a community meeting.The meeting was a combined effort of VSW,ANTHC,Yukon Kusokwim Health Corporation (YKHC)and the Newtok Traditional Council to discuss honey bucket safety and disposal options.Both VSW and ANTHC grant funds for community sanitation projects/upgrades and were seeking direction from the council and community members as to how the funds should be spent.. VSW presented four honey bucket disposal alternatives and although there was no official action taken,it was the general consensus to:establish a community honey bucket collection service;allocate $200,000 to water treatment plant upgrades;and purchase water storage tanks.RUBA staff will assist in drafting resolutions and ordinances necessary to implement and set rates for the honey bucket haul service. Wood Energy Conference Attendance:A Fairbanks RUBA staff member attended the April 2011 Alaska Wood Energy Conference in Fairbanks.Presenters addressed new technology in the field of biomass energy and technology utilizing wood for heat.Tanana,a -community within the Fairbanks region,is the first to use a wood fired boiler to generate electricity and use the waste heat for the water treatment plant. te Performance Goals 44Publications:Fairbanks RUBA staff continued revising the Plain English Guide to Alaska Drinking Water and Wastewater Regulations.This publication is for rural utilities serving 25-1,500 people and was originally published in 1998.Regulations have been updated and new regulations adopted since the initial publication.RUBA staff is coordinating with the Department of Environmental Conservation staff on this effort and met with department staff for information regarding new regulations.The goal is to publish and distribute the updated version by June 30,2011. The updated draft of the Payroll Handbook for Small Communities was completed and delivered to our publications technician in June for layout and printing.The payroll handbook has been used by RUBA staff in communities to train new bookkeepers,however it has not been updated since 2003.The handbook is specifically designed for small communities that use manual payroll recording systems;however,the concepts also apply to communities using computer software for accounting purposes. Staff Development:Anchorage RUBA staff attended the Clerk's Management for Rural Utilities course sponsored by RUBA.This class was held in Bethel May 2-6.Newly hired RUBA staff attend a 32-hour RUBA training as an observer and participant,to become familiar with the format and presentation expectations prior to making their first presentation in one of the eight 32-hour training classes RUBA offers. RUBA 4"Quarterly Report -SFY11 -7- RUBA Program Scope of Report The RUBA staff member tasked with developing training materials attended a Power Point 2007 training class on April 18-19 in Fairbanks.The class covered the basics of how to create professional Power Point presentations;fundamentals of Power Point 2007,inserting, editing,and formatting text;working with clip art,objects,tables,charts,and SmartArt; applying transitions and animations;collaborating with other programs such as Word and Excel;using Presenter views,and other topics.The class provided new ideas and techniques to make RUBA utility management training material appealing to students while meeting the goal of management training. In April,a Fairbanks RUBA staff member traveled to Anchorage to participate in the Alaska Water Waste Water Management Association (AWWMA)conference.The conference was attended by individuals and entities in the water and wastewater business.Common themes of struggles with collections and rising fuel costs were voiced by operators and managers. RUBA staff was able to speak to numerous attendees to explain the RUBA program and the services RUBA provides to rural Alaska communities. Dillingham and Bethel RUBA staff traveled to Anchorage in April to attend the Internal Revenue Service payroll tax training.The training included:941 forms,the electronic federal tax payment system,most common reporting mistakes,Circular E,W-2 form,W-4 form, 1099 form,employee/employer record keeping requirements,and how to ensure 941 reports match W-2 and W-3 reports and forms.The Alaska Department of Labor presented a day of training on filing state quarterly reports for ESC taxes.The knowledge gained will be utilized and shared with all RUBA staff and used to ensure that RUBA training materials deliver the same message as the IRS and DOL. On April 18-22,RUBA staff from Bethel,Dillingham and Kotzebue attended the Introduction to Small Water Systems Provisional Level 1 review and state certification class. The class was sponsored by Tanana Chiefs Conference Office of Environmental Health (TCC-OEH).The week long class gave extensive training pertaining to small water systems. The training event provided RUBA staff knowledge of the roles and responsibilities communities have in providing adequate and safe drinking water.Additionally,the class taught the complexity of water treatment,storage,and distribution critical to the function of efficient and effective small water systems and practices involved with collecting,treating, storing,and distributing safe drinking water.The course is required for RUBA staff to attend during the first year of hire.The goal is to provide an understanding of the daily tasks of operating a water system and the challenges faced by water system management. April 25-29,the RUBA program manager attended a week of federal grant writing classes in Anchorage.The Management Concepts classes covered two topics:Auditing of Federal Grants and Managing Federal Grants. Travel to Communities On-site Management Assistance:While not formally listed as a performance standard, travel to communities is a critical component of the RUBA program.Upon invitation from RUBA 4"Quarterly Report -SFY11 -8- RUBA Program Scope of Report communities,RUBA staff completed 69 trips to 57 communities during the fourth quarter of SFY11.Eighteen RUBA staff traveled for a total of 216 days providing on-site assistance, conducting management assessments and follow-up assistance,providing guidance relating to utility rate setting,financial accounting and reporting,conducting elections training, developing utility work plans,attending community meetings,and assisting in the development of cooperative agreements between city,tribal,and community entities. Management Assessments and Follow-up Assistance:Sixteen RUBA management assessments were completed this quarter.Of the current 179 RUBA assessments completed, 69 are meeting 100%of the essential capacity indicators.Twenty-one communities have requested non-active status and are not submitting documentation based on not anticipating a funding project in the near future.Of note,31 communities increased essential indicator counts to demonstrate improved capacity was requested.After the initial assessment was completed,monthly contact is made with the utility to receive a current monthly finance report and,in several instances,additional documentation to assess management capacity.If these documents are not provided,RUBA changes the essential indicator to read deficient until documentation is received. Onsite Training Provided:The City of Goodnews Bay requested RUBA staff present a modified version of the Elected Officials Management for Rural Utilities class.Dillingham RUBA staff traveled to Goodnews Bay on March 16-17,2011 to present two sessions of training to nine council members and city staff.The training focused on roles and _responsibilities,meetings and ordinances and regulations.The presentation included .discussion,interaction and class activities to reinforce the information discussed. -Increased On-Site Assistance through Use of Contractual Staff QuickBooks Pro Assistance:Many of the communities served by RUBA staff use QuickBooks Pro for accounting and often need assistance with the program.The technical nature of the questions and problems require time and an understanding of the QuickBooks program.To assist communities with QuickBooks accounting problems,RUBA continues to contract Turnagain Press who are the instructors for RUBA sponsored classes and were the authors of the RUBA publication Introduction to QuickBooks for Sanitation Utilities. RUBA also supports a QuickBooks assistance help line.Turnagain Press is available to assist communities with QuickBooks accounting problems Monday,Tuesday,and Thursday each week from 10 am to 3 pm by calling 907-440-0242.The contractor resolves accounting problems for rural sanitation utility staff concerning all aspects of the QuickBooks software program.The contractor anticipates that most problems will be resolved through phone calls.Assistance is also offered through use of email,review of community accounting files, and remote computer access.For more serious problems,the RUBA contract includes a travel budget to allow a maximum of 15 community site visits per year.This contract increases the management capacity of rural sanitation utilities by correcting accounting deficiencies while building capacity in training local staff.January 1 to March 30,the helpline provided 192 hours of phone assistance speaking to 41 communities with 167 calls. RUBA 4"Quarterly Report -SFY11 -9- RUBA Program Scope of Report In addition,the help line answered calls for assistance from the Internal Revenue Service and RUBA staff. Kotzebue RUBA staff traveled to Deering May 16-18 with the QuickBooks contractor to provide onsite assistance with accounting problems and to update the city's code of ordinances.While the contractor and city staff worked on bank reconciliations,RUBA staff searched council minutes for adopted ordinances that would affect the city code.RUBA staff also organized and implemented current fiscal year files and organized the work flow for accounts receivable.The QuickBooks contractor stressed the importance of copying the checks before depositing them in order to verify amounts when reconciling bank statements. RUBA staff demonstrated the updated filing system with city staff and will continue to assist with the city code updates. On June 8-10,Fairbanks RUBA staff traveled with the QuickBooks contractor to Allakaket to provide accounting training and assistance.During the visit,FY11 bank accounts were reconciled,the chart of accounts was revised,the balance sheet was corrected,profit and loss was re-categorized and errors were fixed,941 Federal and ESC Alaska State taxes were paid and reports were filed.Payroll liabilities were also reconciled and Excel invoices were created for the few business customers.The city's QuickBooks accounting system was streamlined so that future accounting will be effective and reports meaningful. The QuickBooks contractor also completed the following trips this quarter: Noorvik May 2-6 Final installation visit Nanwalek June 8-10 _Final installation visit Upper Kalskag June 15-18 Help Line Visit Training Classes Presented Juneau:RUBA sponsored a QuickBooks for Beginners class April 11-15 for 12 city and tribal employees from rural communities across Alaska,including:Angoon,Chuathbaluk, Goodnews Bay,Hughes,Huslia,Kasaan,Koyukuk,Noorvik,Pelican,Pilot Point,and Platinum.QuickBooks subjects covered during this course included How to Create a Company,Chart of Accounts,Balance Sheets,Entering Checks,Creating Reports,Creating Budgets,Account Payable/Accounts receivable,Customer Accounts,Invoicing, Statements/Finance Charges,Payroll,Reconciliations,Employee Utility Payments,and Trouble Shooting.Each participant is issued a computer with QuickBooks and completes a series of exercises for each topic.The training also helps the attendees'respective community maintain eligibility for future sanitation project funding and ensure long-term sustainability. Nome:Nome RUBA staff organized and conducted a Financial Management for Rural Utilities training course April 18-22 in Nome.The format of classroom training was in the form of lecture and training activities.The classroom activities contained handouts, exercises,games,and worksheets.Each lesson concluded with a short action plan presented by the students.Based on instructor presentations,all of the participants wrote up an action plan for financial practices they plan to implement in their communities.Twelve city staff RUBA 4"Quarterly Report -SFY11!-10- RUBA Program Scope of Report from communities in the Nome region attended the training.Among those attending were city employees from Diomede,Elim,Gambell,Koyuk,Shishmaref,Stebbins,Wales,and White Mountain. Bethel:On May 2-6,Bethel RUBA staff conducted a Utility Clerk's Management for Rural Utilities training held at the University of Fairbanks Kuskokwim Campus (KUC).The 32- hour training event was co-sponsored by the Yukon Kuskokwim Health Corporation and KUC.Nineteen city and tribal government staff and council members attended the class from the communities of Tununak,Russian Mission,Chevak,Toksook Bay,Mekoryuk, Lower Kalskag,Kasigluk,Kongiganak,Chuathbaluk,and Shageluk.Special guests,the DCCED Commissioner and DCRA Director,briefly attended the event while traveling on business in the area.Training topics includedan overview of a clerk,public relations,meetings,office management,elections,financial management,and ordinance and resolutions.Daily group activities offered networking opportunities and a chance to discuss the differences between tribal and municipal government policies and procedures.RUBA grant funding was available to attendees on a reimbursement basis to cover airfare and lodging expenses. Kotzebue:On June 13-17,Kotzebue and Anchorage RUBA staff conducted a 32-hour Utility Clerk Management for Rural Utilities class in Kotzebue.All lessons were delivered with a sequence of lectures,interactive discussions,group exercises,worksheets and action plans.The participants were engaged in the training and contributed insightful group discussion.Eight participants from Ambler,Buckland,Kobuk,Noorvik,Selawik,and Golovin were in attendance.Five participants were new hires within the last year and stated they felt more confidence and were now aware of resources to help them complete their job. They all completed an action plan for their communities that will make working with the public and council easier. Port Heiden and Pilot Point:Dillingham RUBA staff traveled to both communities in May to provide two-day financial stability training to the city council and city staff as a result of completed RUBA assessments.Both communities have signed a RUBA assistance agreement for RUBA quarterly visits.Monthly finance reports and a realistic,balanced budget were some of the deficient essential indicators identified in the previous management assessment.The training stressed the importance these key elements have on financial sustainability. Anchorage:Fairbanks RUBA staff presented a four-hour session to a Tribal Solid Waste Management workshop in Anchorage on May 6.RUBA staff spoke on how to effectively work with councils and boards,addressing a group of rural Alaskans primarily from Southwest Alaska who are employed in their communities as tribal EPA solid waste coordinators.The presentation covered topics such as organizational structures,types of decision making and advisory bodies,sources of authority,communication and influencing with ethical behavior.RUBA was invited to participate because the core management practices taught by the RUBA program can be applied to other enterprises run by local governments.Participants were from Nome Eskimo Community,Chignik Bay,Mekoryuk, RUBA 4"Quarterly Report -SFY11 -il- RUBA Program Scope of Report Toksook,Native Village of Noatak,Akiachak Native Community,Cantwell,Kasigiluk, Perryville,Grayling,Nunapitchuk,Koliganek,Kobuk,and Kalskag. Scholarships for Utility Staff Training:As a result of higher expenses to provide rural utility services,many utilities were forced to cut their budgets in the area of training.RUBA has established a training mini-grant program to provide airfare and lodging reimbursement to utility staff who attend RUBA sponsored classes.RUBA provided reimbursement to utility staff who attended the Clerks Management for Rural Utilities,Financial Management for Rural Utilities,Personnel Management for Rural Utilities,and one regional QuickBooks for Beginners classes.The training funds require attendance and participation in the complete course prior to reimbursement being issued.Reimbursements for a total amount of $37,699.95 were awarded to 42 participants from 39 municipalities or tribal councils. RUBA 4™Quarterly Report -SFY11 .-12- RUBA Program RUBA Program Activity Chart April 1 through June 30,2011 Scope of Report "28 a Bs e 2%3ee3. &=z Akiachak Kotlik Akiak Koyuk Alatna KoyukukAleknagikLarsenBay Allakaket Lime VillageAmblerLowerKalskag Anderson Manakotak Angoon McGrath Buckland Mekoryuk Cantwell Napaskiak Chevak Newtok Chignik Nightmute Chignik Lake Nikolai Chuathbaluk Noatak Cold Bay Noorvik Crooked Creek Nunapitchuk Deering Pelican Diomede Perryville Ekuk Pilot Point Elfin Cove Platinum Elim Point HopeFortYukonPortHeiden Galena Russian Mission Gambell Saint Paul Golovin Saxman Goodnews Bay Selawik Grayling Shageluk Holy Cross Shishmaref Hughes Stebbins Huslia Tanacross Kake Teller Kaktovik Togiak Kalskag Toksook Bay Kaltag Tuluksak Kasaan Tuntutuliak Kasigluk Tununak Kiana Twin Hills Kobuk Upper Kalskag Koliganek Wales Kongiganak White Mountain RUBA 4"Quarterly Report -SFY11 -13- RUBA Program Scope of Report RUBA Program Activity Map April 1 through June 30,2011 Point Hope eee. per KalskaChevak.PrendKalskag |&fusionMission2 |$ "9 Nunani_3 Numan*Kongiganak RUBA 4"Quarterly Report -SFY11 2.44. April -May -June 2011 ri Quarter SFY11 -RUBA Report Table of Contents Akiak 7 Crooked Creek 13 Fort Yukon 19 Galena 25 Gambell 31 Kake 37 Kasaan 43 Koliganek 51 Larsen Bay 57 Nikolai 63 Noatak ; 69 Pilot Point 75 Saxman $1 Shishmaref 89 St.Paul 95 Tanacross 101 Tuluksak 107 Twin Hills 113 White Mountain 119 April -May --June 2011 F Quarter SFY11 -RUBA Report April -May -June 2011 4"Quarter SFY11 -RUBA Report Table of Contents Technical Assistance Provided Alatna 125 Allakaket 125 Ambler 125 Anderson 125 Angoon 126 Buckland 126 Chignik Lake 126 Deering 127 Holy Cross 127 Kasigluk 128 Kiana...128 Kobuk 128 Mekoryuk 129 Newtok 129 Platinum 130 Shageluk 130 April -May -June 2011 4"Quarter SFY11 -RUBA Report April --May -June 2011 4"Quarter SFY11 -RUBA Report Community Activity Reports Fourth Quarter SFY11 April 1 -June 30,2011 April -May -June 2011 4"Quarter SFY11 -RUBA Report April --May -June 2011 4"Quarter SFY11 -RUBA Report Akiak Activity Report Community Overview Lead RUBA Staff:Sandra Modigh,Bethel Regional Office 2009 Population:346 Region:Lower Yukon Local Government:IRA Council od;"he Pe as Akiak is a community of approximately 346 residents Prana ot AP located on the west bank of the Kuskokwim River.The community's water and sewer sanitation project completed in 2010,provides underground piped water and sewer lines to 83 homes,tribal offices and washeteria,the school,health clinic,Rural Cap,and City of Akiak offices.Akiak Native Community owns and operates the water/wastewater plant and washeteria/Laundromat.A watering point is located at the water plant;residents may purchase hauled water with prepaid tokens provided by the tribe. Akiak Native Community has utilized the Alaska Native Tribal Health Consortium (ANTHC)Billing Assistance program since April of 2008. RUBA Activity This Reporting Period Bethel RUBA staff traveled to Akiak May 17,2011 in response to a request by the Akiak Native Community on May 9 to complete a new RUBA assessment,as the last one was completed in May of 2008.The draft assessment was forwarded via email and postal mail to the executive director and tribal chief on July 1,2011.The tribe has until July 12,2011 to request changes or revisions to the draft assessment.Although many of the documents required for RUBA compliance were made available during the on-site assessment,there was difficulty verifying that the council had approved or adopted items such as the water and sewer ordinance and the community's personnel policies,which are currently in place and adhered to.As a tribal entity,Akiak Native Community is not required to adopt items pursuant to state statute which are essential for RUBA compliance.Therefore,a few of the .assessment essential indicators are non-compliant while awaiting council approval. April -May -June 2011 4"Quarter SFY11 -RUBA Report Capacity Indicators Finances Essential Indicators Yes No 1 (1 Allrevenue and expenses for the utility are listed in the utility budget. CL]&The utility has adopted a balanced realistic budget.(J &Monthly financial reports are prepared and submitted to the policy making body.[1 &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 supply. {)(C1 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. CL]&YtTDexpenditures are at a level equal to or below those budgeted. (]A monthly manager's report is prepared. CJ Budget amendments are completed and adopted as necessary. Finances Comments: A detailed FY11 utility budget is in place and adhered to with an estimated annual surplus of $6,315.64. The utility receives user fees from residents,the school district,health clinic,Rural Cap,and city offices for water and wastewater services to cover operating expenses of the utility.Although a FY11 budget is in place,documentation necessary to reflect the tribal council's action to adopt or approve the budget was unavailable.Financial reports for February -April 2011 were provided which included FY11 budgeted amounts,monthly expenditures,year-to-date expenditures,and remaining balances. However,RUBA staff could not verify that the financials were provided to council for review or approval.Akiak Native Community and Akiak Power Utilities (owned by the City of Akiak)have a memorandum of agreement (MOA)in which water and sewer services are provided to.city offices in exchange for electric to the tribal offices and water treatment plant.A phone call to Akiak Power Utilities on June 7,2011 indicated that the tribe is delinquent in paying its electric bill for its lift station (not covered in the MOA).Fuel is purchased twice a year from the Kokarmuit Village Corporation who purchases its fuel from Crowley.A phone call on June 7,2011 to the Kokarmuit Village Corporation indicated the tribe's fuel account was current.The tribe has allotted $5,000 annually for Repair and Replacement costs which is reflected in the FY11 budget.The administrator provides the council averbalmonthlyreport;meeting minutes were not provided to RUBA staff for verification.As a tribalentity,Akiak Native Community is not required by state statute to adopt and/or amend a fiscal budget. As such,its FY11 budget has not been adopted nor has it been amended. April -May -June 2011 4"Quarter SFY11 -RUBA Report Accounting Systems Essential Indicators Yes No The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. An accounts receivable system is in place which track customers and reports past due accounts and amounts. An accounts payable system is in place. The payroll system correctly calculates payroll and keeps records A cash receipt system is in place that records incoming money and what it was for. The utility has a cash disbursement system that records how money was spent.HXKHWwWOOOOOOOSustainable Indicators &(1 Achart of accounts is used that identifies categories in a reasonable,usable manner. &CJ Monthly bank reconciliation's have been completed for all utility accounts. &©The utility has a purchasing system that requires approval prior to purchase,and the approval process compares proposed purchases to budgeted amounts. Accounting System Comments: The tribe has a detailed water and sewer ordinance which includes utility rates and fees,administration and enforcement,discontinuance,restoration of services,a disconnection notice template,a final disconnection notice template,and procedures for reconnection.Pursuant to section 2.14 of the utility ordinance,any bill not paid by the 20th of the following month is considered delinquent and notice is sent.A 'services turn-off notice is sent one week following the delinquency notice stating time and date services will be discontinued if account remains delinquent.Akiak Native Community has discontinued water and sewer services to nine homes due to delinquent accounts.Although the water and sewer ordinance is in place,RUBA staff was unable to verify that it has been approved or adopted the council. Utility customers are billed on a regular basis as the tribe has a contractual agreement with ANTHC for the Billing Assistance program.A computer generated accounts receivable aging report was provided by ANTHC's Billing Assistance program reflecting utility past due utility accounts 30,60,90,120,and over 120 days including the amounts due.The May 6,2011 report reviewed by RUBA staff,indicated 27 accounts were past due more than 120 days for a total of $9,162.50 not collected by the tribe.It does not appear that the [RA council is enforcing section 2.14 of its utility ordinance.Therefore,is not in compliance with the first essential indicator of the Accounting Systems section.Akiak Native Community uses QuickBooks Pro 2009 for its accounting and payroll.The bookkeeper,proficient in QuickBooks and the tribe's finances,was able to quickly generate the necessary documents as requested to meet essential indicator compliance.Bank statements are reconciled on a monthly basis by the bookkeeper and approved by the administrator,RUBA staff reviewed a reconciled First National bank statement for March 2011.The administrator approves all check/purchase requests after verifying the funds are available in the budget.RUBA staff reviewed an account file which included an approved purchase order,the invoice,payment for purchase,and a copy of the check for payment. Tax Problems Essential Indicators Yes No (J)The utility has a system to accurately calculate,track,and report payroll tax liabilities.(C1 The utility is current on filing tax reports.&(©)The utility is current on making tax deposits. &(J Ifthere are any past tax liabilities,a repayment agreement has been signed and repayments are current. April --May --June 2011 gh Quarter SFY11-RUBA Report Tax Problems Comments: Akiak Native Community uses QuickBooks Pro 2009 to calculate,track,and report payroll tax .liabilities.Correspondence dated May 19,2011,indicated the tribe is current with federal filing and tax deposits.On March 18,2011,RUBA staff verified the Akiak Native Community is compliant with State of Alaska Employment Security Compensation taxes through December 31,2010.The IRA did not appear on the March -April 2011,Lien Watch:A Review of Small Community Liens report. Personnel System Essential Indicators Yes No C)&Theutility has a posted workers compensation insurance policy in effect. Sustainable Indicators CL}&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:[-9,Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation,job- training/oversight,and evaluations.&}(1 The utility provides training opportunities to staff as needed and available.XoRHOW}OOOWOPersonnel System Comments: Although a current notice of insurance was provided,a phone call to Liberty Northwest Insurance Corporation indicated that the tribe's worker's compensation insurance policy has been ineffective since January 12,2011 due to nonpayment of the annual deposit.An audit is required for re-establishment of the policy.A copy of the personnel policies,revised on July 23,2003,was provided to RUBA staff for review.Documentation to verify council approval or adoption of the policies or the revision by the council was unavailable.RUBA staff reviewed job descriptions for the bookkeeper,water treatment plant operator,administrator,and laundromat attendant which included duties,responsibilities,and required qualifications for each position.Hard copies of the aforementioned policies and job descriptions are on file at the Bethel regional office.Section 8 of the personnel policy requires performance evaluations to be completed at the end of an employee's probation period,prior to the anniversary of the hire date,and bi-annually thereafter.The administrator advised RUBA staff that evaluations are not completed pursuant to policy.Section 5 -Recruiting,of the tribe's personnel policies outlines a detailed posting,application,and hiring process.An open position must be posted and advertised for at least fifteen days and the Executive Director is responsible for hiring employees and completing personnel action forms.RUBA staff reviewed three employee files which included I-9 forms,job applications,letters of acceptance,W-2,a copy of employees'drivers licenses,and evaluations and personnel action forms.Section 7 of the personnel policy designates a probationary employment period of 90 calendar days.Annual leave accrues during an employee's probation period but may not be used until successful completion of such.Conversations with staff indicated the administrator completes new employee orientation and encourages staff attend training opportunities pursuant to the tribe's personnel policies.Both the administrator and bookkeeper completed QuickBooks introduction and advanced training in 2009.Water plant operators hold provisional certifications in water treatment and distribution. -10- April -May -June 2011 4"Quarter SFY11 -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.OKMXMKXMMOOOOOOSustainable Indicators . &(1 The utility has adopted an organizational chart that reflects the current structure. &(1 The policy making body meets as required. &(1 The utility complies with the "Open Meetings Act”for all meetings. Organizational Management Comments: Akiak Native Community water and sewer ordinance section 2.4 deems itself as the utility owner and operator.However,administration was unable to provide documentation necessary for RUBA staff to verify council approval or adoption of the ordinance.Meeting minutes dated February 19,2008 reflect council's approval of a flat rate for water and sewer services of $105 per month.The tribal administrator has worked for the Akiak Native Community since 2004 and was involved with the tribe's RUBA assessment conducted in 2008.The administrator is experienced and knowledgeable related to the tribe's business and provides the council monthly verbal reports on day-to-day operations.The 'bookkeeper,who has been with the tribe since 2000,is efficient in QuickBooks and has good institutional knowledge of the tribe's finances.Both have completed QuickBooks introduction and advanced training classes.An organizational chart adopted on May 20,2011 is on file at the Bethel regional office.The utility is identified as a class two water treatment system.There are two primary water treatment plant operators who each work two weeks out of the month,alternating a one week on - one week off schedule.The operators are provisionally certified and are attaining on-the-job experience necessary for the next level of certification.As previously stated,a utility ordinance establishing the tribe as the owner and operator of the utility is in place;however,administration was unable to provide documentation to verify council approval or adoption of the ordinance.The council meets monthly or as needed and complies with the Alaska Open Meetings Act voluntarily as it's a tribal entity not required to do so by statute. -li- April -May -June 2011 4"Quarter SFY11 -RUBA Report Operation of Utility Essential Indicators Yes No &CJ)The utility operator(s)are actively working towards necessary certification. &(1 Theutility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators The manager receives a monthly O&M report from the utility operator and routinely "spot checks”the facilities to see that the maintenance items are being completed. The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Consumer Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC)list. The utility maintains an inventory control list. The utility maintains a critical spare parts list.4OMORKRKKXXkOMOOOOOOOperation of Utility Comments: Neither operator has certification equivalent to the classification of service of the water treatment plant. However,they are attaining on the job experience necessary for the next level of certification.RUBA staff was provided copies of the completed daily preventative maintenance logs from April 10-23,2011. A phone call to the community's remote maintenance worker (RMW)on June 18,2011,indicated monthly written operation,maintenance,and status reports are provided to administration and the RMW.The utility has a safety manual for reference purposes and the administrator discusses safety issues with the plant operators as needed,however a safety log of these events has not been created. Additionally,the RMW advised that the treatment plant is operating at the level of service originally proposed.The utility maintains a critical spare parts list and has on-hand all of the items on the list. However,an inventory control list has not been established for the utility.As of April 2011,the utility is not on the Significant Non-Complier (SNC)list.An electronic copy of the utilities'Consumer Confidence Report (CCR)is on file at the Bethel regional office. RUBA Activities For The Coming Quarter RUBA staff will finalize the tribe's draft assessment on July 13 and update any necessary changes requested.RUBA staff will continue to assist the community in meeting the six essential and five sustainable capacity indicators for RUBA compliance. -12- April -May -June 2011 4h Quarter SFY11 -RUBA Report Crooked Creek Activity Report Community Overview Lead RUBA Staff:Brice Eningowuk,Anchorage Office 2009 Population:105 Region:Yukon-Kuskokwim Delta Local Governments:Traditional Council edMost homes lack plumbing;residents haul water and 4 .a honey buckets.A new well provides treated water,and Pane,ge AF a new washeteria has been completed.The school,store,and three homes have individual wells,septic tanks and plumbing.The school septic drainfield is failing.The community needs a new water tank and landfill with access road.Electricity is provided by Middle Kuskokwim Electric Cooperative. RUBA Activity This Reporting Period On May 3,2011,Anchorage RUBA staff traveled to Crooked Creek to conduct a RUBA assessment. Due to the spring ice melt on the Kuskokwim River at Crooked Creek,a state declaration of disaster and emergency was declared on May 18,2011 and activated state disaster assistance programs to provide assistance to Crooked Creek and Red Devil.Many homes and infrastructure were damaged during the flood.The Crooked Creek Traditional Council is working with the Department of Homeland Security and Disaster Management to ensure that proper documentation is made during the recovery of homes and infrastructure. -13- April -May -June 2011 F Quarter SFY11 -RUBA Report Capacity Indicators Finances 'Essential Indicators Yes No ™(1 All revenue and expenses for the utility are listed in the utility budget. ©()The utility has adopted a balanced realistic budget. {&(1 Monthly financial reports are prepared and submitted to the policy making body.&(C1 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 supply. &«C1 The utility is receiving revenues (user fees or other sources)sufficient to cover operating expenses. Sustainable Indicators [1 &The utility is receiving revenues (user fees or other sources)sufficient to cover operating expenses and Repair &Replacement (R&R)costs. &)OO)YTD revenues are at a level equal to or above those budgeted. (C)YTD expenditures are at a level equal to or below those budgeted.&()A monthly manager's report is prepared.XX C1 Budget amendments are completed and adopted as necessary. Finances Comments: All revenue and expenses are listed on the utility budget;the budget has few line items as there is no community-wide distribution system.The utility has adopted a realistic budget that includes all revenue and expenditures.Monthly financial reports are provided to the council and RUBA staff.A repair and replacement fund is not set up and not listed on the utility budget.Middle Kuskokwim Electric Cooperative,C/O Raven Technology Services provides the electric in Crooked Creek and the tribe is current with the utility bills.Fuel is supplied from a local vendor and the tribe does not have a fuel shortage.The manager is also the Tribal President and Administrator and provides the council with financial and operational information. Accounting Systems Essential Indicators Yes MXRWHNo 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.N&wnMXXaina OOOsjOOOOHOOOe 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. -14- April May -June 2011 4h Quarter SFY1I1 -RUBA Report Accounting System Comments: The Crooked Creek Traditional Council has a collection policy that was adopted on May 8,2008 that states that if payment is not received and a repayment agreement has not been signed seven days after the past due notice was mailed,the clerk may begin collection actions.Bills are sent to customers on the first of each month.Currently,only the clinic and school receive a water usage bill as the two are the only water customers within the community.Residents are on a honey bucket system and the watering point is managed by the Crooked Creek Traditional Council.The accounts receivable report,dated May,3,2011 shows that there are no past due bills.The accounts payable has one item that is more than 90 days old.The Crooked Creek Traditional Council uses 2010 QuickBooks Premier for Non- Profits and uses Windows 7 for the accounting computer.The President has stated that all financial transactions are done with check,and any tokens bought with cash are recorded in a daily token log.To conserve paper,the bookkeeper and President are thinking of going to a weekly or monthly token log. The bookkeeper manages all fund expenditures and has to get approval from the President to ensure that funds are available.Bank reconciliations are done using QuickBooks. Tax Problems Essential Indicators Yes No %(1 The utility has a system to accurately calculate,track,and report payroll tax liabilities. (11 &The utility is current on filing tax reports. -(1 The utility is current on making tax deposits. (1 Ifthere are any past tax liabilities,a repayment agreement has been signed and repayments are current. Tax Problems Comments: On May 5,2011,State DOL stated that the Crooked Creek Traditional Council is compliant with ESC state tax requirements through December 11,2010.A report dated May 11,2011 from the IRS indicates the tribe is compliant with federal tax deposits,and has no lien filed.However,the IRS report states that the tribe is not compliant with federal tax filing for the 2010 fourth quarter and 2011 first quarter. Personnel System Essential Indicators Yes No (1 The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators J (J 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.kXOBRWROWOOOO April -May -June 2011 4 Quarter SFY11 -RUBA Report Personnel System Comments: The Crooked Creek Traditional Council has purchased workers'compensation insurance through Umialik Insurance Company and coverage is from January 19,2011 to January 19,2012.The Crooked Creek internal controls document has the internal administrative and accounting controls and job descriptions.All personnel folders are kept in a locked file cabinet in the council office.The council does not require a probationary period for all new hires.Trainings are offered when funding is available. Organizational Management Essential Indicators Yes No The entity that owns the utility is known and the entity that will operate the utility is set. The policy making body is active in policy making of the utility. The policy making body enforces utility policy. The utility has an adequately trained manager. The utility has an adequately trained bookkeeper. 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.MNXKXKEOOOOOOOSustainable Indicators &(1 The utility has adopted an organizational chart that reflects the current structure. &(1 The policy making body meets as required. &(C1 The utility complies with the open meeting act for all meetings. Organizational Management Comments: 'The Crooked Creek Traditional Council is a Bureau of Indian Affairs (BIA)federally recognized tribe. The council is the policy making body for the utility and meets every second Tuesday of every month. The President is considered the utility manager and the operators report to the President and council. The President has also been the tribal office administrator since 2003.The President's resume was received and has the duties that the President has covered both as tribal office administrator and President.The bookkeeper has been employed with the tribe since 2005 and continues to be self sufficient and proactive with accounting issues.The primary water treatment plant operator is certified in Water Treatment 1,Waste Water Collection Provisional and Water Distribution Provisional and has been employed with the tribe since approximately 1998 to present.Resumes for the bookkeeper and water treatment operator were provided to the Anchorage RUBA staff.The organizational structure is in the Crooked Creek Wastewater Utility Business Plan.As a traditional council,the tribe is not required to have regular scheduled meetings,but has established the second Tuesday as a regular meeting each month.Public notices are posted and have the topics of each meeting. -16- April -May -June 2011 4"Quarter SFY11 -RUBA Report Operation of Utility Essential Indicators Yes No &(1)The utility operator(s)are actively working towards necessary certification. &1 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 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.ODORRWOMMOOOOOWOperation of Utility Comments: The primary water treatment plant operator is certified in Water Treatment 1,Waste Water Collection Provisional and Water Distribution Provisional and has been employed with the tribe since approximately 1998.The RMW stated that he has a copy of the operations and maintenance manual for the water treatment plant.Spot checks are made by the operator and there are some issues that the operator has repaired onsite.One issue is a crack in the settling tanks that has been repaired and the operator routinely checks to ensure that the crack is repaired and not leaking.Since there is only one operator,the utility does not hold formal safety meetings.There have been no level of service problems due to management issues.The water treatment plant has distributed and posted the 2009 CCR.The utility is not on the April 2011 SNC list.The operator knows what parts are needed and orders them as needed.No current inventory or critical spare part lists are maintained. RUBA Activities for the Coming Quarter: Assistance will be provided as requested. -17-. April May -June 2011 Fi Quarter SFY11 -RUBA Report 18- April -May -June 2011 4"Quarter SFY11 -RUBA Report Fort Yukon Activity Report Community Overview Lead RUBA Staff:Jeff Congdon,Fairbanks Regional Office 2010 Population:591 Region:Interior Local Governments:2"Class City edThe City of Fort Yukon operates a class 2 water 4.Wer system.The water treatment facility treats water from a ?Man,AP well that is influenced by both groundwater and surface water.The treated water is stored in an 110,000-gallon tank.A combination of piped water,water delivery and individual wells serves households.A flush/haul system,septic tanks,honey buckets and outhouses are used for sewage disposal.Approximately half of all homes are plumbed.The piped water system and household septic tanks were installed in 1984.The city has received funds to repair the piped water system (repairs are | ongoing as needed)and to construct a piped gravity sewer system which is expected to be completed soon.Additional funding will be needed to complete subsequent stages of the overall project.Electricity is provided by Gwitchyaa Zhee Utilities.Waste heat from the electric utility may be available for the water/wastewater utility pending available funding and agreement between the utilities.It is recommended that this option should be actively pursued (depending on feasibility and practicality of utilizing available waste heat).A new water system is currently under construction.The building for the water treatment facility is nearly finished and the water treatment equipment is being put in place this winter.A large (350,000 gallon)treated water storage tank is scheduled to be built during summer 2011.A water and wastewater project is connecting existing homes throughout the area in a multiple phased project. RUBA Activity This Reporting Period On April 12,2011,Fairbanks Local Government Specialist staff operating under the Rural Utility Business Advisor program traveled to Fort Yukon to conduct a management assessment on the water and wastewater utilities in Fort Yukon.Fairbanks RUBA staff was joined by Anchorage supervisory staff for this assessment.Fort Yukon personnel were accommodating and organized.On.May 6, Fairbanks RUBA staff completed and distributed a RUBA management assessment report for the City of Fort Yukon.Fort Yukon has met all of the essential indicators.RUBA staff have received Fort Yukon's FY12 budget,as well as financial information for 4th Quarter FY11. -19- April -May -June 2011 ae Quarter SFY11 -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.bhXXXOOOOOThe utility has on hand a year's adequate fuel supply or it has financial plan to purchase an adequate supply.X (CO The utility is receiving revenues (user fees or other sources)sufficient to cover operating expenses. Sustainable Indicators X C1 Theutilityis receiving revenues (user fees or other sources)sufficient tto cover operatingexpensesandRepair&Replacement (R&R)costs.[]YTD revenues are at a level equal to or above those budgeted. &(1 YTDexpenditures are at a level equal to or below those budgeted. CJ A monthly manager's report is prepared.&(1 Budget amendments are completed and adopted as5 necessary. Finances Comments: The City of Fort Yukon drafted,adopted,and submitted a realistic,balanced FY11 budget.All revenue and expenses for water/wastewater utility are listed in the budget.As the fiscal year progressed revisions to the budget have been made to update the financial picture for the city and the utility's budget.An ordinance adopting Fiscal Year Revision 2 of the FY11 budget was adopted April 19,2011. According to current financial reports,the utility is operating at a profit.The city has an annual financial plan to purchase fuel from Crowley,the local fuel provider.The city is meticulous in paying all water and wastewater electric bills,bills are paid as received by the bookkeeping department.At the time of the assessment,no electrical bills were over 30 days past due,and the Treasurer,Velma Carroll, was just returning from being out of the office for nearly three weeks.Monthly reports are submitted to the city council;water and wastewater utility income and expenses are included in the financial packet submitted in a profit and loss budget versus actual format at the monthly council meetings.A monthly manager's report is prepared and presented at city council meetings. -20- April -May -June 2011 4 Quarter SFY11 -RUBA Report Accounting Systems Essential Indicators Yes No The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. An accounts receivable system is in place which track customers and reports past due accounts and amounts. An accounts payable system is in place. The payroll system correctly calculates payroll and keeps records A cash receipt system is in place that records incoming money and what it was for. The Utility has a cash disbursement system that records how money was spent.KKKWHOOOOOOOSustainable Indicators &()Achart of accounts is used that identifies categories in a reasonable,usable manner. ™(©Monthly bank reconciliation's have been completed for all utility accounts. &(C1 The utility has a purchasing system that requires approval prior to purchase,and the approval process compares proposed purchases to budgeted amounts. Accounting System Comments: The City of Fort Yukon's bookkeeping personnel,Velma and her assistant Doris bill customers on a regular basis,sending a statement with line items for each service rendered,rather than billing for each service separately.Fort Yukon utilizes QuickBooks for accounts receivable,payable,payroll,and cash recording.The utility also utilizes a cash receipt system.The City of Fort Yukon's chart of accounts appears to be reasonable;the treasurer,reconciles and files all bank transactions for the city's utilities. The city department heads are informed of the amounts of funding available,and of their situation within the city's budget.The approval process for purchases compares proposed expenditures with budgeted and existing funds prior to the purchase being made. Tax Problems Essential Indicators Yes No (C1 The utility has a system to accurately calculate,track,and report payroll tax liabilities.1 1 The utility is current on filing tax reports. C1 The utility is current on making tax deposits.(1 [Ifthere are any past tax liabilities,a repayment agreement has been signed and repayments are current. Tax Problems Comments: The City of Fort Yukon's bookkeeping office has an impressively well organized three ring binder of payroll records,organized quarterly by date.Bookkeeping staff utilize this paper record as well as electronic records through QuickBooks to ensure timely preparation and payment of federal and state tax reports and deposits.The utility,as of July 11,is current with the IRS and the State Dept.of Labor. -21- April -May -June 2011 qh Quarter SFY11 -RUBA Report Personnel System Essential Indicators Yes No X (©The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators ](1 The utility has adopted and uses a Personnel Policy,which has been reviewed by an attorney,AML,or DCED for topics and language. 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. &(1 The utility provides training opportunities to staff as needed and available,XkwwwMOOOOOPersonnel System Comments: The City of Fort Yukon has a posted workers compensation insurance policy in effect provided through AMLIJIA which is valid until July 1,2011.The city utilizes a personnel policy handbook wherein adequate job descriptions are written for all positions,the utility hiring process and job evaluation process are included in the handbook.Job notices are posted with the job description and are advertised locally at least 14 days.The personnel folder for each employee contains their I-9,job application,letter of acceptance,any employee evaluations,a copy of the employees acceptance of the personnel handbook,and other information that may be specific to that employee.Employees are evaluated annually by the supervisors during the month of November.The supervisor reports the evaluation to the personnel officer;the personnel officer is the city manager.The City of Fort Yukon has a 90 day probationary period for all new hires;orientation,oversight,and job training are provided during the probationary period and ongoing training opportunities are provided as necessary. 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.DATNAINATANTOOOOUOOOSustainable Indicators ™(CI The utility has adopted an organizational chart that reflects the current structure. XX CJ The policy making body meets as required. -&}C1 The utility complies with the open meeting act for all meetings. Organizational Management Comments: The City of Fort Yukon is the owner of the utility;the utility is named City Water and Sewer and operates under Alaska Business License 253521.The city council is the policy making body;the city council is also the utility board.They meet monthly as required by Alaska Statute,and they do enforce -22- April -May -June 2011 ri Quarter SFYI1 -RUBA Report the utility policy.The utility is managed by Woodie Salmon,recently hired to the position of City Manager;he has management and legislative experience.Velma Carroll is the bookkeeper for the utility;she is very organized and quite competent,and has over three years experience in the position of treasurer/bookkeeper.Eric Tremblay is the main water operator for the utility;he is mechanically inclined and intimately knowledgeable with Fort Yukon's utilities.Mr.Tremblay is currently certified at Water Treatment 2 and Water Distribution 3,which is at or above the requirements necessary to City Water and Sewer's utility system.Mr.Tremblay has over three years of experience with the water and wastewater utility systems in Fort Yukon.Mr.Tremblay currently works part time for the City of Fort Yukon as the water operator,and also works for the Alaska Native Tribal Health Consortium constructing the new water treatment facility.The utility recently redrafted an organizational chart to reflect the current structure;the organizational chart was officially adopted in May,2011.The utility board does comply with the Open Meetings Act for all meetings. Operation of Utility Essential Indicators Yes No X (C1 The utility operator(s)are actively working towards necessary certification. ™(1 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.XOKRHKXKKWeOOOOOOOOOperation of Utility Comments: The utility operator(s)actively work towards and continue to keep their certifications current.There was a provisional water treatment and distribution course offered in Fort Yukon in the last six months. Fort Yukon personnel were in attendance in that course,and Fort Yukon's operator and relief operators continue working towards higher levels of certification.There is a preventative maintenance plan for the existing water treatment facilities;the existing treatment plant is being nursed along,utilizing the turbidity meter and a few other parts from the new water treatment plant,until the new water treatment plant can come online (scheduled completion:October 2011).The new water treatment plant was planned to come online October 2010,but due to construction delays with the new project,it has been necessary to extend operations of the existing facilities.The manager and the utility operator communicate on a routine basis,Mr.Tremblay gives verbal updates on at least a monthly basis,and the city manager checks on the water plant facilities.City of Fort Yukon maintenance personnel do hold safety meetings.There are currently no unresolved major problems or outages within the utility facilities or distribution system.The water treatment plant is producing potable water,and is currently not on the Significant Non-Compliance list.The last Consumer Confidence Report on file is from 2009.| The city clerk has begun working on a CCR for 2010.The utility maintains an inventory control list, and is proactive in purchasing supplies and equipment.The utility also maintains a spare parts inventory and a critical spare parts list for the existing water treatment facility.As the new water treatment facilitybecomesoperational,a spare parts inventory and a critical spare parts list will have to be developed. -23- April -May -June 2011 qn Quarter SFY11 -RUBA Report RUBA Activities for the Coming Quarter: Fairbanks RUBA staff plans to travel to Fort Yukon during the next quarter to hold training workshops for city officials and employees. -24- April -May -June 2011 -4"Quarter SFY11 -RUBA Report Galena Activity Report Community Overview Lead RUBA Staff:Jeremy Johnson,Fairbanks Regional Office f 2009 Population:564 Region:Interior Local Governments:1*Class City edWater is derived from wells and is treated.There is a « 200,000 gallon reservoir and a community leach field. Sixty one customers are connected to the fully piped system and fifty four customers have water delivered.Some customers only have water delivered as they have private septic systems while others pay the city to dispose of waste water on an as needed basis.The city began operating the landfill, located on the former Campion AFS grounds,in 1997. eo a.ohne,ant RUBA Activity This Reporting Period This quarter,communication with the city has consisted of phone and email support.The city signed a RUBA assistance agreement on January 17,2011.The Alaska Native Tribal Health Consortium (ANTHC)project engineer submitted a grant application to connect approximately 20 homes to piped water.The city manager contacted RUBA staff about noncompliance issues,specifically the financial indicators and tax issues.For the application.to be accepted,the city needs to be 100%compliant with the essential indicators.RUBA staff worked with the city staff extensively over the phone and email to obtain the current status. -25- April -May -June 2011 4"Quarter SFY11 -RUBA Report Capacity Indicators Finances Essential Indicators Yes No All revenue and expenses for the utility are listed in the utility budget. The utility has adopted a balanced realistic budget. Monthly financial reports are prepared and submitted to the policy making body. The utility is current in paying all water/wastewater electric bills. The utility has on hand a year's adequate fuel supply or it has financial plan to purchase an adequate supply. The utility is receiving revenues (user fees or other sources)sufficient to cover operating expenses.KhWHROOOOOOSustainable Indicators &)1 The utility is receiving revenues (user fees or other sources)sufficient to cover operating expenses and Repair &Replacement (R&R)costs. &{(1 YmTD revenues are at a level equal to or above those budgeted. &CJ)YTDexpenditures are at a level equal to or below those budgeted. &(€)A monthly manager's report is prepared. &(J Budget amendments are completed and adopted as necessary. Finances Comments: The FY12 budget was passed on June 27,2011.It is balanced;revenue is expected to be $3.06 million and expenses are expected to be $1.49 million.The FY11 actual income was $3.48 million and expenses were $2.52 million.During the last city council meeting,the RUBA required financial reports were provided to the city council.The reports that should be at every regular city council meeting are the balance sheet,accounts payable,accounts receivable,and budget vs.actual.If these reports are notprovidedtothecouncilmonthlythentheVillageSafeWater(VSW)funds could be suspended.The city verbally agreed to purchase bulk fuel from Crowley. -26- April -May -June 2011 4°Quarter SFY11 -RUBA Report Accounting Systems Essential Indicators Yes No [1 &The utility has adopted a collection policy and actively follows it.&(CJ The utility bills customers on a regular basis.(CJ Anaccounts receivable system is in place which track customers and reports past due accounts and amounts. &(J Anaccounts payable system is in place. {J (J The payroll system correctly calculates payroll and keeps records&(©Acash receipt system is in place that records incoming money and what it was for. &(CJ 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. J The utility has a purchasing system that requires approval prior to purchase,and the approval process compares proposed purchases to budgeted amounts.ORROOAccounting System Comments: The City of Galena uses QuickBooks Enterprise Solutions for all of its financial and accounting needs. The in-house accounting staff consists of one person,the receptionist who sends out customer bills and receives payment.A Certified Public Accountant (CPA)from Anchorage was recently hired,who is a former Mikunda,Cottrell employee.A collection policy is in place;city ordinance states that all city services will be discontinued for non-payment until payment is made.The city is reinstating a finance charge on delinquent accounts.As of June 14,outstanding customer payments for the last three months total $82,246 and approximately 26 customers have unpaid balances greater than 90 days which is more than the collection/disconnection policy allows.The accounts payable aging summary report for FY11 shows that the city is keeping current with bills,which is an improvement from the last assessment in 2008 which showed the city as being delinquent with vendors.The city has outstanding debt,primarily a result of the base closure,but successfully received a one percent,15 year loan,with the Alaska Municipal Bond Bank for a total amount of $2.45 million.As is standard with all QuickBooks products, an adequate system is in place for tracking,recording,and reporting transactions.A wire bound receipt book is used for all customer payments and the receipt is given to the customer while they are in the office.The receipt book is used to enter payments against the customer balance into QuickBooks;this is a daily occurrence.Day-to-day purchases have been restricted;the city is taking a firm stance on purchases to control expenses.All purchase requests must be approved by the city manager who,along with the clerk,are the only employees with access to city debit cards.The budget vs.actual report shows that expenses are now greater than budgeted,which indicates that the purchases are not being compared to the budget.° Tax Problems Essential Indicators Yes No &(I The utility has a system to accurately calculate,track,and report payroll tax liabilities.(1 The utility is current on filing tax reports.X OC)The utility is current on making tax deposits.(1 Ifthere are any past tax liabilities,a repayment agreement has been signed and repayments are current. -27- April -May -June 2011 qi"Quarter SFY11 -RUBA Report Tax Problems Comments: QuickBooks accurately calculates and reports payroll taxes.As of June 27,2011 the Department of Labor deemed the city compliant.On June 29,2011 the IRS deems the city compliant. Personnel System Essential Indicators Yes NoX(C1 Theutility has a posted workers compensation insurance policyin 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:[-9,Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation,job- training/oversight,and evaluations.&1 The utility provides training opportunities to staff as needed and available.%WOWNOOWOOPersonnel!System Comments: Workers compensation insurance is provided through the Alaska Municipal League Joint Insurance Association and is in effect until July 2011.RUBA has a faxed copy of the notice of workers compensation insurance coverage in the Fairbanks office.The personnel policy and procedure manual is comprehensive;a copy is provided to each new hire with a signature page that acknowledges receipt and is filed in the employee's personnel folder.RUBA staff has copies of job descriptions for city positions.The annual evaluations are based on the job description.RUBA staff and city staff were not able to locate a specific written hiring process.The current process is that a vacancy notice is posted in town at four locations and the notice is read on the local public radio station for ten days.Applicants submit their application and if there is more than one applicant,a list of interview questions is created for the interviewer.Galena Personnel Policies and Procedures Title 15.10.430 (A)(1)(this Title 15 document is separate from the Galena Code of Ordinances as Title 15 in the code has to do with building and construction)states that there are to be two separate personnel files for each employee,one public and one confidential.Between the two files,all necessary documents are retained.Included in the confidential files are evaluations,which are done after the six-month probationary period.New hires are provided with orientation and job-training,to the extent needed for the position.The personnel manual states that 'the city encourage[s]employees to avail themselves of training and educational opportunities directly applicable to their city positions in order that they may provide more effective service to the public.' -28 - April May -June 2011 rid Quarter SFY11 -RUBA Report Organizational Management Essential Indicators Yes No {(1 The entity that owns the utility is known and the entity that will operate the utility is set. &C1 The policy making body is active in policy making of the utility. &(C1 The policy making body enforces utility policy.®{(C1 The utility has an adequately trained manager. CL]The utility has an adequately trained bookkeeper. &(CJ 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 ; &CO)The utility has adopted an organizational chart that reflects the current structure.(1 The policy making body meets as required. &C1 The utility complies with the open meeting act for all meetings. Organizational Management Comments: The city is the owner of the water and electrical plants (Galena Code Title 13)and city employees operate both utilities.The city council is the policy making body,the city manager oversees the day-to- day management of staff.Mr.Ben Koontz is the utility manager;he received the Tanana Chiefs Conference (TCC)operator of the year award for 2010.The city council is very active in setting and enforcing utility policy,as is supported by council meeting minutes.The city manager and utility manager are fulfilling the job duties.The city uses an Anchorage based person to assist in completing the financial director duties.The cost for the service is large and the time necessary to fulfill the job functions cannot be met on a periodic,visiting basis.The financial billing clerk has attended QuickBooks training and is adequate;to ensure that details are not missed,it is recommended that bills, payroll,and other accounting functions be carried out away from distractions.The city has an organizational chart that shows the current structure.The policy making body (city council)meetings are open to the public with the exception of executive sessions as allowable by law. Operation of Utility Essential Indicators Yes No ™(2 The utility operator(s)are actively working towards necessary certification.(1 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.MXKHKKEKkeOOOOOOOO 29.- April May -June 2011 4h Quarter SFY11 -RUBA Report Operation of Utility Comments: Operators have a level two water treatment certificate but no operators have a water distribution certificate.A level two certificate is required and the operators will continue to gain the training and experience level required.During the last quarterly report,at least one operator had a distribution certificate.A preventative maintenance plan is located in the plant.The utility manager provides operation and maintenance reports to the city manager who includes them in a report for the council. AMLJIA provides telephonic safety meetings which are attended by city staff.Operations of the utility are functioning as intended and no major outages have occurred.The most recent CCR has been completed and RUBA obtained a copy.The city is not on the SNC list dated April 2011. RUBA Activities for the Coming Quarter: No travel currently scheduled but a late summer onsite visit is desired. -30- April -May -June 2011 4h Quarter SFY11 -RUBA Report Gambell Activity Report Community Overview Lead RUBA Staff:ura Leahu,Nome Regional Office 2009 Population:662 Region:Bering Straits Local Government:2™Class City " Water is derived from a shallow aquifer at the base of *:4SivuokukMountain,and is treated and stored in three Fp,po AF storage tanks.One hundred twenty-one homes and 13 public and commercial buildings,including the school and washeteria,are now connected to the piped water and sewer system.Forty three homes in the original townsite still are not connected to the piped system;their residents haul water and use 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 two 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 to provide water and wastewater service to Old Town (approximately 43 service connections).Ultimately,there will be 174 service connections. RUBA Activity This Reporting Period At the request of city officials,Nome RUBA staff traveled to the City of Gambell in April and June of 2011.The first visit was to.conduct an onsite RUBA assessment.The Utility Finances section of the RUBA assessment was not completed during the first visit because no financial documentation was made available.The rest of RUBA sections were examined and completed. After the first visit,Nome RUBA staff recommended the city council consider signing a RUBA assistance agreement.On May 15,2011,the mayor signed the RUBA agreement.In June of 2011,Nome RUBA staff was invited by the city mayor to provide onsite assistance to the utility staff and city clerk.The focus of the second visit was to review the financial management of Gambell Water Treatment System,and address some of the key financial assumptions listed in an upgrade business plan.The RUBA assessment of management capacity indicators is a condition for receiving grant money provided by Village Safe Water.The funds will be used to upgrade the existing infrastructure of the water utility.During the second visit,city and utility staff worked closely with RUBA staff.Copies of financial,accounts receivable and accounts payable reports were presented as requested.The two onsite visits concluded with recommendations to the city council to implement a work plan with specific tasks and time frames based on the RUBA's written assessment of the utility's management practices.RUBA staff discussed,with the acting mayor,a tentative teleconference with the city council within the next few weeks to discuss actions to be taken within 90 days and six months or longer to remedy significant problems.The RUBA assessment was submitted to the City of Gambell for review and the current assessment will be updated after 10 days of the date of submittal. 31- April -May -June 2011 4"Quarter SFY11 -RUBA Report Capacity Indicators Finances Essential Indicators 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.hWOOOOWNThe utility has on hand a year's adequate fuel supply or it has financial plan to purchase an adequate supply.&)(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.&(1 YTD revenues are at a level equal to or above those budgeted. h (1 YTD expenditures are at a level equal to or below those budgeted.[1 W&A monthly manager's report is prepared.&1 Budget amendments are completed and adopted as necessary. Finances Comments: The Gambell Water Treatment System's 2012 budget lists all revenues and expenditures,with the exception of fuel cost.The yearly fuel cost is approximately $100,000.The utility did not include the fuel cost in the utility budget because the city council provided subsidies to cover the cost of fuel.Upon review of the utility budget,it was found that revenues generated from user's fees are less than the estimated expenditures,respectively $190,000 in estimated revenues and $222,066 in estimated expenditures.The deficit,therefore,is estimated to be approximately $132,066 when fuel cost is included in the budget.For many years,the city council has heavily subsidized the utility.The city council has used the Community Revenue Sharing dollars to fund the utility.These figures indicated that such subsidies are unsustainable and unrealistic.RUBA staff found that the utility creates monthly financial reports comparing actual year-to-date revenues and expenses to the budgeted amounts,but these reports have not been included in the agenda of utility board's or city council's monthly meetings. For example,the regular monthly meeting minutes for February and March mention the utility,but no talk about the operation of or financial management of the utility.According to the most recent invoice (May,2011)from the electric utility,there is no past due amount.According to the February and March regular monthly meeting minutes,the utility has adequate fuel supply to last the rest of the year.The March report showed that the utility used 1,632 gallons and 17,887 gallons were remaining.The utility clerk reported that city staff orders fuel for the entire city,including city utilities.The delivery is in July or August of each year.A new fuel order for FY12 is in place.In the past,the utility did not set aside money for repair and replacement costs.The utility had to use money from other revenues to cover the repair and replacement costs.The FY 12 budget includes a line item for repair and replacement costs. -32- April --May -June 2011 4"Quarter SFY11 -RUBA Report Accounting Systems Essential Indicators Yes No The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. An accounts receivable system is in place which track customers and reports past due accounts and amounts. An accounts payable system is in place. The payroll system correctly calculates payroll and keeps records A cash receipt system is in place that records incoming money and what it was for. The Utility has a cash disbursement system that records how money was spent.RXRKWoOOOOOOSustainable Indicators &€)Achart of accounts is used that identifies categories in a reasonable,usable manner. &(J Monthly bank reconciliation's have been completed for all utility accounts. &(C1 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 billing and collection procedures are included in the utility ordinance which was adopted in 1996.The city council reviews the utility rates on a periodic basis and the rates are published in a separate 'Schedule A'page.Nome RUBA staff has a copy of the code of ordinances.Although the utility bills customers on a regular basis,it struggles with collecting past due amounts.According to the May 2011 accounts receivable report,total past due accounts were approximately $29,300 which was equal to about 15 percent of the total uncollected amounts to the estimated yearly revenues of $195,000, based on user's fees.The delinquencies range between two months to over one year on past due accounts.To address this issue,the city council voted to contract the Alaska Native Tribal Health Consortium (ANTHC)billing services for a period of one year beginning July,2011.ANTHC bills,but will not provide collection service.An account receivable and payable system is in place.Recently the utility upgraded to QuickBooks Pro 2011.Before the upgrade,it used QuickBooks 2008.Staff indicated that the QuickBooks 2008 accounts may have not been properly set up.Because of improper setup,staff uses Microsoft Excel spreadsheets to keep track of accounts receivable.The Excel spreadsheets provide detailed information on current month accounts due and accounts past due.At the advice of RUBA 'staff,utility staff contacted the RUBA QuickBooks contractor to have utility's QuickBooks setup reviewed.The contractor advised to create a new QuickBooks company beginning July 1,2011.Staff is working with the contractor on the project. Tax Problems Essential Indicators Yes No (1 The utility has a system to accurately calculate,track,and report payroll tax liabilities. C1 &The utility is current on filing tax reports. &C1 The utility is current on making tax deposits. (J Ifthere are any past tax liabilities,a repayment agreement has been signed and repayments are current. Tax Problems Comments: As of June 20,2011,the Internal Revenue Service (IRS)reported that the utility is current in making federal tax deposits.The utility does not owe federal taxes.However,the utility was penalized in the FY 10 for not making the deposits on time.The utility has been late in filling 941 returns also.For instance,form 941 for 2011,Employer's Quarterly Federal Tax Return,for the quarter ending in March, -33- April -May --June 2011 4"Quarter SFY11 -RUBA Report 2011 was not filed.Utility staff uses QuickBooks Pro 2011 and Microsoft Excel spreadsheet to calculate,track,and report payroll tax liabilities.The utility is compliant with Employment Security Contributions but has had issues with filing the quarterly reports. Personnel System Essential Indicators Yes No X C1 The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators &(0 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.0OKWWOWOOOPersonnel System Comments: The utility has general liability and workers compensation coverage.The workers compensation insurance is purchased through Alaska Municipal League Joint Insurance Association and valid until July 1,2011.The Notice of Insurance was posted in plain view in the city office.According to utility staff,new insurance will be purchased for the FY12.A copy of the city's personnel policy,which applies to all city employees,is on file with RUBA staff.The utility follows the personnel policy in the 'day-to-day management of personnel.Job descriptions are up to date and outline each employee's duties.The hiring and evaluation process is described in the personnel policy.The utility maintains personnel files for all employees,but the utility does not have a Form I-9 for each employee.The city clerk reported that the city is in the process of updating all employee files to include the I-9.The city and the utility have a probationary period for new hires that includes orientation,job-training/oversight and evaluation,which is completed after 90 days of an employee on the job.The city and the utility provide training opportunities to staff as funds are available. -34- April -May -June 2011 4h Quarter SFY11 -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.OOOWNNOXXMOOOWSustainable Indicators [1 &The utility has adopted an organizational chart that reflects the current structure. CL]&The policy making body meets as required. &C1 The utility complies with the open meeting act for all meetings. Organizational Management Comments: According to Title VI of the city's code of ordinances,all city-owned utility systems are the property of the utility board.Utility staff reported that the utility board has not met as often as it should.In fact,the board has not had a meeting in two years.As a consequence,the utility has not enforced its policies per the code of ordinances.However,the city council includes the utility in the city council meeting agendas.For instance,the February and March regular meeting minutes show that the water operator's reports were on the agenda.The utility does not have an adequately trained manager.Monthly management reports have not been provided to the city council or the utility board since January 2011. According to the regular meeting minutes from February and March of 2011,the only reports the council received were those provided by the water operator.Those reports presented data on the total water use,production and storage,as well as fuel use.No mention of the status of the operations, maintenance and/or management of the utility.Several meetings with representatives of the Village Safe Water and Alaska Department of Environmental Conservation have been held in the last few months.Both of these agencies have been closely working with the utility clerk,water operator and members of the city council to move forward with the planned upgrades.The city has an organizational chart but it needs to be updated.The utility has a utility clerk who keeps track of the utility finances. The bookkeeper is a full-time employee.She has held this position for the last three years.RUBA staff discussed rate setting to ensure that water rates are sufficient to cover the operating costs of the water plants and the sewer/water haul system.The city council asked for more assistance in setting rates. -35- April -May -June 2011 qt Quarter SFY1]-RUBA Report Operation of Utility Essential Indicators Yes No &(1 The utility operator(s)are actively working towards necessary certification. XX CO)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.NeOORRR8wwRmooooooOperation of Utility Comments: The utility has a certified operator.He holds level 1 water treatment and water distribution certificates that expire on December 31,2011.According to the ADEC website,the Gambell utility is classified asalevel1inwatertreatmentandalevel2indistribution.He also has the required number of CEUs.The utility has an assistant water operator.He is not certified but he has worked for the utility on and off in the past.The utility has a preventive maintenance plan that was developed by an engineer.A copy of the plan is on file with Nome RUBA staff.The operator uses checklists to verify that preventive maintenance is performed.The operator submits written monthly Operation and Management reports to the manager and the city council.However,RUBA staff found that a few Operation and Management reports were missing or incomplete.In addition,according to the operator,verbal monthly Operation and Management reports are made to the utility manager.RUBA staff has no confirmation of whether verbal monthly Operation and Management reports are made.The utility has a safety manual on file, but the operator does not participate in monthly AMLJIA safety meetings via teleconference.The water operator reported that he has safety meetings with the assistant operator and they use AMLJIA safety meetings materials.According to the April 2011 Significant Non-Compliance list (SNC),the utility meets all required regulations.This is an improvement for the utility since the last SNC list published in January of 2011.The utility has an inventory control list but the list needs to be updated.The utility does not have a critical spare parts list on file.According to the utility operator,the utility has the money to order and replace parts and pumps when necessary. RUBA Activities for the Coming Quarter: Nome RUBA staff will work with the city council to implement a work plan that would modify certain management practices that could improve the long term heaith and sustainability of the water utility. RUBA staff will propose actions to be taken within 90 days and six months to remedy significant problems.RUBA staff offered to be available for further visits and assistance upon request. -36- April -May -June 2011 4"Quarter SFY11 -RUBA Report Kake Activity Report Community Overview Lead RUBA Staff:Glen Hamburg,Juneau Regional Office 2009 Population:497 Region:Southeast Local Government:1*Class City ed-The City of Kake is located on the northwest coast of Mane,a nem ° Kupreanof Island along Keku Strait,38 air miles northwest of Petersburg and 95 air miles southwest of Juneau.The city operates a water treatment,water distribution,and piped sewer system in addition to providing refuse collection,recycling,and hazardous waste disposal.The Inside Passage Electric Cooperative (IPEC),a non-profit subdivision of the State of Alaska,provides electrical services to the city with three diesel-fueled generators. RUBA Activity This Reporting Period This quarter,RUBA staff continued to provide the City of Kake with advice and assistance in municipal government processes during city staff turnover.RUBA staff helped to clarify meetings requirements and council seat appointment procedures,in addition to providing general information to the newly- hired city manager.RUBA staff spent four days in Kake this quarter conducting an updated RUBA assessment,working with the city to develop a new utility bill collections policy,assisting in the adoption of the FY 12 budget,and providing elections training and assistance to the city clerk.The city also made progress in its effort to appropriately codify its ordinances and adopt an AMLJIA-reviewed personnel policy.Finally,RUBA staff worked to register the city's bookkeeper at both the Personnel Management and Financial Management RUBA courses to be held this summer. -37- April -May -June 2011 4"Quarter SFY11 -RUBA Report Capacity Indicators Finances Essential Indicators Yes No {(J Allrevenue and expenses for the utility are listed in the utility budget. &(C1)Theutility has adopted a balanced realistic budget. &()Monthly financial reports are prepared and submitted to the policy making body. &CI The utility is current in paying all water/wastewater electric bills. J (©)The utility has on hand a year's adequate fuel supply or it has financial plan to purchase an adequate supply.&(1 Theutility is receiving revenues (user fees or other sources)sufficient to cover operating expenses. Sustainable Indicators Ol W&The utility is receiving revenues (user fees or other sources)sufficient to cover operating expenses and Repair &Replacement (R&R)costs. *©YTDrevenues are at a level equal to or above those budgeted. &(1 YTDexpenditures are at a level equal to or below those budgeted. &(1 A monthly manager's report is prepared./(1 Budget amendments are completed and adopted as necessary. Finances Comments: The City of Kake adopted its FY11!budget on July 30,2010 and its FY12 budget on June 21,2011 bynon-code ordinance.The city plans to collect approximately 25 percent less in sanitation:servicerevenueinFY12thaninFY11,a projection that realistically considers the reduction in the city's utility bill collection rate since January of 2011.The FY12 budget appropriately separates sanitation service finances into a Water,Wastewater,and Garbage Removal Enterprise Fund.This fund budget includes detailed line items for all the associated costs of utility operations in Kake including chemicals,water testing,electricity,and insurance,as well as the salaries,taxes,and workers compensation insurance coverage for the utility operators.While projected revenues from user fees are insufficient to cover all these expenses,the budget clearly indicates a subsidy of $62,525 (nearly 30 percent of the utility budget)transferred from the general fund to balance.Repair and replacement costs are not budgeted though the city manager has proposed the installation of a for-profit shower and laundry facility at the community hall,the revenues of which will be dedicated to a reserve fund for the utility.The FY12 budget shows that $10,325 has been allocated for heating and vehicle fuel,representing a projected 10 percent increase in fuel costs from the previous fiscal year.The fuel is purchased as needed from Kake Tribal Fuel,who receives fuel shipments about once a month and stores it in four 20,000-gallon tanks and eight 10,000-gallon tanks.A review of the city's monthly payments to the Inside Passage Electrical Cooperative (IPEC)shows that the city is current in paying its water/wastewater electric bills.IPEC statements for the water treatment plant and the city shop do not list a Power Cost Equalization (PCE) credit which,if applied,could save the city significant funds in its monthly electrical bill payments.The city council adopted an FY11 budget amendment ordinance in August 2010 in order to adjust outside funding and building rental revenue projections.No other budget amendment was needed during FY11, though city officials will consider them in coming fiscal year as necessary.Council members receive reports of utility finances at monthly meetings in order to monitor these finances.The reports include a balance sheet and budget versus actual profit and loss statement,in addition to a verbal utility managers report.Despite the city's recent utility bill collection challenges (discussed in the Accounting Systems section),the city's June 2011 financial reports indicated that actual utility revenues had exceeded year- to-date budget projections by more than $4,000.This surplus comes largely from the collection of customers'back payments at the end of the 2010 calendar year. -38- April -May -June 2011 4%Quarter SFY11 -RUBA Report Accounting Systems Essential Indicators Yes No The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. An accounts receivable system is in place which track customers and reports past due accounts and amounts. An accounts payable system is in place. The payroll system correctly calculates payroll and keeps records A cash receipt system is in place that records incoming money and what it was for. The Utility has a cash disbursement system that records how money was spent.WXWHOOOOOOOSustainable Indicators : &©)Achart of accounts is used that identifies categories in a reasonable,usable manner.(1 Monthly bank reconciliation's have been completed for all utility accounts.XJ (J The utility has a purchasing system that requires approval prior to purchase,and the approval process compares proposed purchases to budgeted amounts. Accounting Comments: On January 1,2011,the City of Kake transferred its utility billing responsibilities to the Alaska Rural Utility Collaborative (ARUC)'s Billing Assistance program.Since then,ARUC has been in charge of billing all Kake utility customers and collecting payment on behalf of the city.The Billing Assistance program costs the City of Kake $300 each month,though ARUC does not assist with collection efforts or assume responsibility for any late or unpaid bills;that liability remains with the city.City officials and staff report that they may have misunderstood the initial agreement with ARUC,believing that the Billing Assistance program would include assistance with collections.The city also asserts that utility customers do not always receive their bills and that customers have trouble reaching ARUC representatives to pay by phone.City officials believe that these issues could be contributing to a dropintheutilitybillcollectionrate.Indeed,in the last months of 2010,Kake saw a collection rate of approximately 90 percent.The city's bookkeeper reports that the collection rate average has fallen below 50 percent since ARUC took over utility billing.While troubles with the Billing Assistance program may be adding to the city's collection challenges,there is no formal collections policy in place in Kake.A utility bill payment policy is already included in Title 54 of the Kake Code of Ordinances, but is not enforced.Because the city lacks necessary curb stops to shut off all delinquent customers,the disconnection provisions of the policy may be impossible to enforce.The city is therefore working to draft an updated utility bill payment policy to replace the outdated version.The new policy may include repayment agreement procedures,the authority to refer delinquent customers to a collections agency, and the ability for customers to voluntarily assign their Permanent Fund Dividends to utility balances. The city manager stated at a June 21 council meeting that an updated payment policy draft could be available for council consideration in July.ARUC utility bills include the customer's name and address, a description of the utility services provided,the amount due,the due date,and past due balances. While these statements break down the individual cost of water,sewer,and garbage services,customers cannot pay for each service separately.ARUC accepts payment by personal check or by Visa, MasterCard,or Discover credit cards over the phone.The city's bookkeeper utilizes QuickBooks software to manage the accounts payable and payroll processes.The bookkeeper is also in charge of monthly bank reconciliations and maintains the purchasing system.In that system,purchases are requested using a formal purchase order form and then reviewed for funding availability before receiving approval by the city manager.Though the general appropriateness of each purchase is considered,no department or account codes are used.Rather,it is up to the bookkeeper to determine which account to charge from a detailed chart of accounts.The chart of accounts includes easily- identifiable account names and a description of that account's type.After a purchase has been made,the -39- April -May -June 2011 4"Quarter SFY11 -RUBA Report vendor's invoice is matched to the approved purchase order form.Cash disbursements are recorded in a check register that notes the date,purpose,and amount. Tax Problems Essential Indicators Yes No ™(1 The utility has a system to accurately calculate,track,and report payroll tax liabilities. &C1 The utility is current on filing tax reports. &%LC)The utility is current on making tax deposits. (1 Ifthere are any past tax liabilities,a repayment agreement has been signed and repayments are current. Tax Problems Comments: The City of Kake uses QuickBooks accounting software to accurately calculate,track,and report its payroll tax liabilities.The IRS's Taxpayer Advocacy Office confirmed on June 27 that Kake is current in its federal tax reports and filings.The Alaska Department of Labor and Workforce Development confirmed on June 15 that all state tax payments are current as well.There are no past tax liabilities or recorded liens. Personnel System Essential Indicators Yes No (1 The utility has a posted workers compensation insuranc e policy iin effect.Sustainable Indicators [1 &The utility has adopted and uses a Personnel Policy,which has been reviewed by an attorney, AML,or DCED for topics and language. 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. &OC The utility provides training opportunities to staff as needed and available.OWeOOF®hOOWNPersonnel System Comments: The City of Kake's current workers compensation insurance policy with the Alaska Municipal League Joint Insurance Association (AMLJIA)is valid through June 30,2012.Proof of coverage is posted in all areas of employment,including the main bulletin board at city hall.The Kake Code of Ordinances contains a personnel title outlining the job descriptions,authorities,and duties of all municipal employees.This title also provides for a hiring process,lists city holidays,and establishes sick and annual leave accrual rates.The city does not actively follow this personnei policy,however,and contradictory personnel ordinances have been passed in recent years.The city is currently working with AMLJIA to complete an updated personnel handbook which,when completed,will be adopted by reference in the city code and take the place of the outdated personnel title.The city does not yet have formal written job descriptions for its utility employees either,nor a written utility personnel evaluation process.A probationary period has been applied to other city employees as they are hired,but an evaluation system isn't provided.The city does maintain personnel files for its utility operators which include I-9 forms,W4s,certifications and endorsements,leave applications,and an employment policy -40- April -May -June 2011 4 Quarter SFY11 -RUBA Report that addresses payroll,attendance,and drug testing.The city also has on hand general format job application forms,complaint forms,incident reports,and a staffing schedule. 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.-RROooooso0o2Sustainable Indicators (1 The utility has adopted an organizational chart that reflects the current structure. &(1 The policy making body meets as required. {(1 The utility complies with the open meeting act for all meetings. Organizational Management Comments: The City of Kake owns and operates the community's water and wastewater systems with the necessary authority to operate these systems provided in Title 54 of the Kake Code of Ordinances.However,this title was originally adopted in the 1980s and amendments to it since then have not been properly codified to reflect the city's current rate structure.Title 54 also outlines a utility bill collections policy, yet the city enforced a different policy in 2010 and has not enforced any collections policy since January 1.RUBA staff is working with the city council to codify its ordinances and amend the code's outdated rate structure.A review of six months of council meeting minutes shows that the governing body is also actively working to establish and implement an effective collections policy that disconnects water service to delinquent customers.In September 2010,the city acquired the necessary equipment and supplies to conduct disconnections,though none have been imposed this calendar year.The six- member council holds regular meetings on the first and third Tuesday of each month.Three council members also serve on the Airport,Water,and Roads Committee,which holds regular meetings to formulate utility-related recommendations to the larger body.The city complies with Alaska's Open Meetings Act by posting notice of each meeting at least five days in advance at the post office,the grocery store,the gas station,and the community building.Each notice indicates the type of meeting to be held,as well as its location,date,and time.While there is no formal utility management system outlined in the city code,an organizational chart has been adopted by the city and indicates that the city manager,John Janick,is the manager of Kake's utilities.Mr.Janick has only been with the city since May 2011,but brings significant municipal expertise from his previous position as the city manager for the City of Whittier.He holds a master's degree in public administration.Selma Jackson,the utility's bookkeeper,is also highly trained.She has years of experience working for the City of Kake and has undertaken critical training courses,including Introduction to QuickBooks,Elected Officials Management for Rural Utilities,Clerk Management for Rural Utilities,Utility Operations,and a University of Alaska course in bookkeeping for small businesses and non-profits.Ms.Jackson is considering participating in the 32-hour RUBA Personnel Management and Financial Management courses this summer as well.The State of Alaska's Department of Environmental Conservation (DEC), Division of Water has rated Kake's water treatment system at the Class 2 level based on the plant's various components.The city's water distribution and wastewater collection systems are rated as Class 1 according to the number of connections these systems serve.The primary operator of these systems, -Clifton 'Kip'Howard,holds the following endorsements and Continued Education Units (CEUs):Water Treatment,Level 1 -Expires 12/31/2013,CEUs met Water Distribution,Level 1 -Expires 12/31/2012, CEUs met Wastewater Collection -Not certified.While Mr.Howard is not fully certified with DEC to -41- April -May -June 2011 4 Quarter SFY11 -RUBA Report operate the water treatment or wastewater collection systems,he has demonstrated the ability to run Kake's utilities effectively and reliably while actively pursuing new training opportunities.A backup operator is available to assist Mr.Howard,though he is not certified to operate Kake's utilities. Operation of Utility Essential Indicators Yes No 1 (2 The utility operator(s)are actively working towards necessary certification.™(1 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.PeOOOOWNYWOWHAWOOOOWOperation of Utility Comments: As explained in the Organizational Management section,Kake's utility operators have not yet achieved the necessary certification level in all areas.Nonetheless,they continue to receive on-sight guidance from Alaska Native Tribal Health Consortium (ANTHC)engineers.The lead operator has also participated in a HAZWOPER training and various ANTHC water treatment seminars.The utility has not suffered any major outages due to mismanagement and operates at the proposed level of service. Though formal safety meetings aren't held,the utility manager is kept abreast of utility issues with verbal monthly status reports.The utility manager also makes regular site visits to review maintenance and safety issues.The utility's preventative maintenance plan consists of the operators examining all equipment on a monthly basis and unloading sewer tanks every two to four weeks.The remote maintenance worker also assists with equipment and facility review.Consumer confidence reports (CCRs)are issued as required.Still,the operation of Kake's utilities does face certain sustainability challenges.Kake Municipal Water remains on the Environmental Protection Agency's Significant Non- Compliance (SNC)list for its high levels of haloacetic acid (HAAS)disinfectant by-products (DBPs). Air scour upgrades have been underway in an attempt to address the problem,though a corrosion control study and continued testing may be required.The utility must obtain one quarter of testing without any HAAS violations in order to return to compliance.Further,while certain critical spare parts such as electrical motors and sensors are kept on hand,the utility does not maintain a full critical spare parts list or an inventory control list. RUBA Activities For The Coming Quarter In the coming quarter,RUBA staff will work with the city to have an updated utility bill collections policy and personnel policy adopted by reference in the Kake Code of Ordinances.RUBA staff will also provide personnel and financial management training to the city's bookkeeper at two UTM courses, continue to codify the city's ordinances,and work with the Alaska Energy Authority (AEA)to have the city receive Power Cost Equalization (PCE)credits applied to its water treatment and city shop electricity accounts.Finally,RUBA staff will assist the city clerk in preparing all necessary elections materials to ensure that a governing body for the utility is appointed by city voters according to the city code and state statute. -42- April -May -June 2011 4h Quarter SFY11 -RUBA Report Kasaan Activity Report Community Overview Lead RUBA Staff:Glen Hamburg,Juneau Regional Office 2009 Population:63 Region:Southeast Local Government:2™Class City edThe City of Kasaan operates and manages a piped water V eet,ot On system.The city council is the policy making body for the utility.Water is derived from a water infiltration gallery (impoundment)at Linkum Creek,is treated,and piped to all homes in the core area. Homes use individual septic tanks and 95 percent are fully plumbed.The city collects and deposits refuse weekly at the Thorne Bay landfill.Electricity is provided by Alaska Power and Telephone Company.Kasaan is connected via gravel road to the Prince of Wales Island road system. RUBA Activity This Reporting Period RUBA staff travelled to Kasaan May 2,2011 for four days this past quarter to conduct an assessment of management capacity indicators,assist in completing FY12 budget documents,revise the city's utility bill payment policy,provide Microsoft Excel and Word training to the city clerk,and meet with the city council to update the municipal code elections title.RUBA staff also continued to provide the community with financial management assistance by helping to draft utility billing resolutions, explaining principles of fund accounting to the mayor and city clerk,formatting electronic budget templates,and providing advice on the sale of city property.Further,RUBA staff organized a 24-hour Introduction to QuickBooks training that was attended by Kasaan's city clerk and registered the city's mayor,clerk,and bookkeeper at an upcoming Financial Management for Rural Utilities course in Ketchikan. -43- April -May -June 2011 4"Quarter SFY11 -RUBA Report Capacity Indicators Finances Essential Indicators Yes No {J (1 Allrevenue and expenses for the utility are listed in the utility budget. &C1 The utility has adopted a balanced realistic budget. &(1 Monthly financial reports are prepared and submitted to the policy making body. %C1 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 supply.™©The utility is receiving revenues (user fees or other sources)sufficient to cover operating expenses. Sustainable Indicators (1)&The utilityis receiving revenues (user fees or other sources)sufficient to cover operatingexpensesandRepair&Replacement (R&R)costs. &CJ YTDrevenues are at a level equal to or above those budgeted. X (1 YTDexpenditures are at a level equal to or below those budgeted. {©)A monthly manager's report is prepared. &(1 Budget amendments are completed and adopted as necessary. Finances Comments: The City of Kasaan adopted its FY11 budget by non-code ordinance on June 25,2010 for the fiscal period beginning July 1,2010 and ending June 30,2011.The city adopted its FY12 budget on June 22, 2011.Both budgets include utility department revenues and expenses as part of the overall city operating budget and allocate appropriate funds for supplies,equipment,fuel,payroll,travel,and certain facility expenses.The utility budgets do not include a capital replacement fund,though the community has adequate savings for unexpected repairs.While the utility budgets do realistically consider all costs associated with operating the water treatment facility,revenue generated from user fees is not sufficient to cover these costs.Rather,the city elected to subsidize the water utility by folding nearly $54,000 in FY12 cost overruns into the overall city budget.The city's FY11 budget remained balanced throughout the fiscal year and resulted in a prior-year cash balance of $124,682.61. The city council has adopted budget amendments whenever adjustments to the original plan have been required.The mayor,who also serves as the utility manager,delivers both written and verbal financial reports to the city council at its monthly meetings.RUBA staff reviewed three months of these written reports and found that they include a current balance sheet as well as a year-to-date budget vs.actual profit and loss statement.The city clerk states that the reports have been effective in clearly outlining to council members the utility's financial position.A written 'Public Works Report'is also provided to the council each month which details the amount of water produced by the treatment facility,the amount of fuel and chemicals used,and a breakdown of the operator's work hours.Electricity in Kasaan is provided by the Alaska Power and Telephone Company.RUBA staff has reviewed all five of the city's electricity accounts,including the water treatment facility account,and found that all payments are current and include Power Cost Equalization (PCE)credits.The community also has a city-owned bulk fuel facility,which is comprised of propane,gasoline,and diesel storage tanks.The city receives fuel deliveries every one to three months from Petro Marine in Craig and then retails this fuel to community members on a 'break even'basis.Adequate funds have been allocatedin the city budget to purchase fuelasneeded. -44- April -May -June 2011 4 Quarter SFY11-RUBA Report Accounting Systems Essential Indicators Yes No The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. An accounts receivable system is in place which track customers and reports past due accounts and amounts. An accounts payable system is in place. The payroll system correctly calculates payroll and keeps records A cash receipt system is in place that records incoming money and what it was for. The Utility has a cash disbursement system that records how money was spent.MhKeKXWOOOOOOOSustainable Indicators &(©)Achart of accounts is used that identifies categories in a reasonable,usable manner. (C)Monthly bank reconciliation's have been completed for all utility accounts.&)(C)The utility has a purchasing system that requires approval prior to purchase,and the approval process compares proposed purchases to budgeted amounts. Accounting Comments: The city has 29 customers receiving sanitation services.Those customers are divided into three categories with the following uniform flat rates:-Residential:$60 per month for Water and $20 per month for garbage collection -Senior Residential:$40 per month for water and $13.75 per month for garbage collection -Commercial:$70 per month for water and $20 per month for garbage collection. These rates are set and adjusted by the city council through resolution,in accordance with the rules set forth in Title 7 of the City of Kasaan Code of Ordinances.Along with rate setting procedures and customer class definitions,Title 7 outlines utility billing procedures,results of delinquency, discontinuance of service,and all other utility-related ordinances.Utility bills are mailed to customers during the first week of the month of service.Statements include the customer's name and address,the amount due for water and garbage services,previous statement balances,late fees,total amounts owed, terms,and the due date.Bills are considered due upon receipt and all bills not paid by the next billing cycle are considered delinquent,unless a written agreement has been made with the city clerk or the bookkeeper establishing a different due date.At the time of assessment,utility customers could pay their bills either by mail or in person at the city hall.However,the city is considering adopting a credit card payment option in the coming months.Customer payments are recorded in a carbon copy receipt book that notes the customer's name and address,the date,the payment amount,what the payment was for,the form of payment,and who the payment was received by.Payment information is then recorded in a computerized system using QuickBooks accounting software.The software can clearly identify which customers are current in their payments and which are 30 days,60 days,or 90 days delinquent. Delinquent bills are automatically subject to a two dollar 'late payment charge.'Customers who remain delinquent for ten days are to have their water service disconnected until payment is made in full.By actively enforcing its adopted collection policies,the city has maintained a collection rate average of over 90 percent each month.In addition to its accounts receivable system,the city uses QuickBooks software in its accounts payable and payroll systems.The utility's purchasing system starts with utility staff obtaining a numbered purchase order form.That purchase order number is matched to a separate "Purchase Order Register'which records the form number,the date,the vendor,the department,the name of staff requesting the purchase,and a description of the items being purchased.The mayor reviews the purchase request,verifies funding availability,issues approval,and allocates the purchase to a specific account,as outlined in the city's chart of accounts.All approved purchases and accounts payable are then recorded in the QuickBooks software.The city's bookkeeper reconciles bank accounts on a monthly basis.RUBA staff has reviewed recent bank statements and found that reconciliations are indeed current. -45- April -May -June 2011 ,4 Quarter SFY11 -RUBA Report Tax Problems Essential Indicators Yes No &CL)The utility has a system to accurately calculate,track,and report payroll tax liabilities. &C1 The utility is current on filing tax reports. &CO)The utility is current on making tax deposits. XX (1 If there are any past tax liabilities,a repayment agreement has been signed and repayments are current. Tax Problems Comments: The City of Kasaan uses QuickBooks Pro to calculate,track,and report payroll liabilities and makes electronic payments using the Electronic Federal Tax Payment System (EFTPS).The Internal Revenue Service's Taxpayer Advocacy Office has confirmed that Kasaan is current in its federal tax reports and filings.The Alaska Department of Labor and Workforce Development confirmed on June 16,2011 that all state tax payments are current as well.There are no past tax liabilities or liens against the city. Personnel System Essential Indicators Yes No ™(©The utitity 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 anattorney, 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. )(1 The utility provides training opportunities to staff as needed and available.KhWHWHOOOOOPersonnel System Comments: All city employees are covered by an Alaska Municipal League Joint Insurance Association (AMLJIA) workers compensation insurance policy.That policy is effective from July 1,2011 until July 1,2012 and covers work-related accidents and occupational diseases up to the Alaska statutory limits for each occurrence.Proof of coverage and Equal Opportunity information are posted in all areas of employment,including the city hall,the post office,the city shop,and the water treatment plant.RUBA staff verified that the city is current in its payments to AMLJIA and that adequate funds have been allocated in the city budget for payments over the remainder of the fiscal year.On April 12,2011,the city adopted the 'City of Kasaan Employee Handbook.'This handbook was compiled with the assistance of AMLJIA staff and covers a broad range of topics,such as nature of employment,employee conduct, immigration law compliance,conflicts of interest,hiring practices,personnel files,job descriptions, benefits,leave,pay,travel,training,work conditions,and discipline.The handbook must be read, acknowledged,and signed by all city employees.Hiring practices and the employment of city council members are further detailed in Kasaan's municipal code.In accordance with these established policies, the city conducts employee evaluations at the end of a 90-day probationary period for new employees and then annually for established employees.Evaluations are documented on standardized employee evaluation forms which adjudicate job knowledge,quality of work,work output,attitudes and -46 - April -May -June 2011 4h Quarter SFY11 -RUBA Report relationships,initiative and reliability,leadership,accomplishment of goals,and a list of future goals of employment.Each section is rated as either 'Outstanding,''Satisfactory,'or 'Not meeting job expectations.'RUBA staff verified that evaluations,Employment Eligibility Verification Form I-9s,W- 4s,work release authorizations,and all other necessary documentation are included in confidential personnel files.These files are kept in a secure filing cabinet with limited access in the mayor's office. The city continues to budget for and provide training opportunities to utility staff as needed and available.The mayor,.two council members,and the city clerk recently attended a 32-hour RUBA Elected Officials course that was held in Klawock from March 7-11,2011.The city clerk also attended the 24-hour Introduction to QuickBooks course in Juneau April 11-15,attends monthly 'Prince of Wales City Clerk Roundtable'courses,participated in a municipal clerks conference in Seattle this quarter,and is registered to attend a financial management course in August. 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.HHXXRXRAOOOOOOOSustainable Indicators 1 (CJ The utility has adopted an organizational chart that reflects the current structure.&(1 The policy making body meets as required.&J (The utility complies with the open meeting act for all meetings. Organizational Management Comments: The City of Kasaan owns and operates the community's water and bulk fuel utilities.Ordinances giving the city the necessary authority to operate these facilities are contained in Title 7 of the City of Kasaan Code of Ordinances.The seven-member city council is the city's governing authority and the utilities' policy-making body.The council holds regular meetings as required by Alaska Statutes Title 29 on the second Tuesday of each month and holds additional work sessions when required.To comply with Alaska's Open Meetings Act,the city consistently posts notice of each council meeting at least five days in advance at the city hall,the Organized Village of Kasaan tribal office,and the library.Each notice indicates the type of meeting to be held,as well as its location,date,and time.The council is active in policy making of the utility,as evidenced in the six months of meetings minutes reviewed by RUBA staff.These minutes show that financial and public works reports are regularly provided to and reviewed by the council and that ordinances and resolutions amending utility policy are adopted as necessary.Since September of 2010,the city has made it a priority to review and update its code of ordinances by addressing such issues as abandoned vehicle policy,mission statements,records retention schedules,city official compensation,fee schedules,municipal acts,garbage services,and water utility services.The manager for the sanitation utilities is the city mayor,Audrey Escoffon.The mayor has broad experience as a former business owner and associate of the Kasaan Bay water shed.She also recently completed the 32-hour RUBA organization Management course,attended a portion of the 32- hour RUBA Elected Officials course,and is planning on taking the remainder of the utility management course series to become a certified utility manager in the next two years.The bookkeeper,Peggy Staton,is responsible for the maintenance of the books for all community services.Ms.Staton has been in the position since 2009 and has over 40 years of bookkeeping experience.She has completed several QuickBooks training sessions and has worked as a bookkeeper for the United States Forest Service and the City of Thorne Bay.Terry West is the city clerk and also serves as the utility clerk.Ms.West began -47- April -May -June 2011 4"Quarter SFY11 -RUBA Report working for the City of Kasaan in October 2010,and has significant bookkeeping experience as well. As noted in the Personnel System section,Ms.West attended a 24-hour Introduction to QuickBooks course in Juneau April 11-15,participates in monthly Prince of Wales City Clerk Roundtable courses, and will travel to Seattle for additional clerk training this summer.Two city employees operate this system and hold the following endorsements and Continued Education Units (CEUs):Michael Escoffon Water Treatment,Level 1 -Expires 12/31/2012,CEUs not yet met;Water Distribution,Provisional - Expires 12/31/2010,CEUs not yet met.Robert Baker Water Treatment,Provisional -Expires 12/31/2012,CEUs not yet met;Water Distribution,Provisional -Expires 12/31/2011,CEUs not yet met Michael Escoffon,the utility's lead operator,also attended the Alaska Rural Water Association's Prince of Wales Drinking Water Source Assessment and Protection Workshop on May 13,2008,as well as the NTL Alaska,Inc.Alaska Water Treatment Systems Class in Ketchikan August 27-30,2007.The other water operator,Robert Baker,successfully completed the 32-hour RUBA Elected Officials course in Klawock March 7-11,2011.The city has adopted an organizational chart that clearly indicates the levels of authority between city staff. Operation of Utility Essential Indicators Yes No &)(O The utility operator(s)are actively working towards necessary certification. CJ 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.DedOOWKKRHwhWOOOOOROOOperation of Utility Comments: The operators'certifications meet the requirements of the State of Alaska's Department ofEnvironmentalConservation(ADEC),Division of Water.Robert Baker's water treatment provisional endorsement will be advanced to a Level |certificate after 1950 hours of on-the-job experience.Utility staff have also participated in the Alaska Municipal League Joint Insurance Association's safety and risk reduction program.As outlined in the 'Organizational Management'section,both operators continue to receive additional training whenever possible.The utility operators consult with the utility manager on a regular basis and provide both verbal and written status reports to the city council each month.The written reports are simple,logical,standardized fill-in-the-blank forms that allow the operators to report on a given set of issues.The reports include water treatment and consumption information,fuel consumption figures,staff hours worked,any complaints by utility customers, identified problems,problems that have been resolved,and preventative maintenance tasks to be completed.Staff report that the utility is operating at the proposed level of service and has not suffered any major problems or outages due to management issues.The utility is also not listed on the Environmental Protection Agency's Significant Non-Compliance (SNC)list.Consumer Confidence Reports (CCRs)are completed and distributed as required by the Safe Drinking Water Act and state regulations.The most recent CCR was reviewed by the ADEC drinking water program for completeness and was distributed to customers on June 17,2009.The CCR was sent to customers by direct mail,delivered directly to certain community organizations,and posted for viewing in several -48 - April --May -June 2011 4"Quarter SFY11 -RUBA Report public locations.It detailed the source of Kasaans water supply,the level of contaminants,precautions to be taken before drinking,and other information to properly inform the community of the water's quality and safety.The utility has adopted a 'Safety Policy and Handbook'and holds formal monthly. safety meetings.The safety handbook is extensive and includes information on fire prevention, emergency action plans,hazard communication,machine safeguarding,lockout/tagout,materials handling,personal protective equipment,electrical safety,confined spaces,blood borne pathogens,and numerous other safety-related topics.The monthly safety meetings are documented on forms provided by AMLJIA which record the date,training topics discussed,materials reviewed,and employees present.RUBA staff reviewed three months of these forms and found that the mayor,the bookkeeper, the city clerk,and both utility operators attended each meeting.The utility does not maintain a critical spare parts list.Some critical supplies and tools are kept on hand,but due to the community's remote location and dependence on air and ferry service,the collection of spare parts on hand may be inadequate to prevent a service outage.The utility manager has acknowledged the need to compile a critical spare parts list and will work with the operators,RUBA staff,and engineers with the Alaska Native Tribal Health Consortium (ANTHC)to have one developed. _RUBA Activities For The Coming Quarter The City of Kasaan currently meets all of the RUBA assessment's essential indicators and nearly all of its sustainable indicators.Nonetheless,RUBA staff will provide financial management training to Kasaan's mayor,city clerk,and bookkeeper at a utility management course this August to help ensure the long-term sustainability of the community's sanitation services.RUBA staff will also assist in codifying the city's ordinances,revise the municipal code's elections and utilities titles,and meet with the city council to adopt a retyped,electronic version of the city's municipal code during a community visit this summer.Additionally,RUBA staff will work closely with the city's utility operator and Alaska Native Tribal Health Consortium (ANTHC)staff to compile a critical spare parts list for the utility. -49- April -May -June 2011 ri Quarter SFY11 -RUBA Report -50- April -May -June 2011 4"Quarter SFY11 -RUBA Report Koliganek Activity Report Community Overview Lead RUBA Staff:Robert Madeson,Dillingham Regional Office 2009 Population:192 Region:Dillingham Local Government:Tribal Council edKoliganek has operated a piped system for over 25 years.Vs Water is derived from a well and is treated.Thirty-three homes and facilities are connected to the piped water and a community septic tank.Eight homes have individual wells and septic systems.Fifteen homes haul water and honey buckets.Koliganek purchases power from the school district,and also owns its own generator.The village has a 'code red'fire suppression unit and one village public safety officer.The community has completed a water and sewer feasibility study and is competing for funds to make improvements with the goal of connecting the entire community. RUBA Activity This Reporting Period On May 18-20,2011,RUBA staff traveled to Koliganek to conduct a RUBA assessment and work with the village council on a new utility ordinance.The RUBA Assessment is a special sanitation grant condition for state Village Safe Water water/wastewater funding.Bristol Bay Area Health Corporation has reported the community is not on the Village Safe Water three year list but USDA has funded a leak detection study.RUBA assisted in getting in the necessary paperwork for the leak study grant.RUBA staff has spoken with the administrator and:council member Nick Johnson to offer assistance with meeting RUBA essential indicators in water/wastewater utility management,budgeting,monthly financial reporting and developing a utility ordinance. -451- April -May -June 2011 4"Quarter SFY11 -RUBA Report Capacity Indicators Finances Essential Indicators Yes No [1 &_All revenue and expenses for the utility are listed in the utility budget.[1 &The utility has adopted a balanced realistic budget.[]&Monthly financial reports are prepared and submitted to the policy making body. &(C)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 supply.Cl &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. C)&yYvTD revenues are at a level equal to or above those budgeted. [1 &YTD expenditures are at a level equal to or below those budgeted.[1 &A monthly manager's report is prepared.CJ &Budget amendments are completed and adopted as necessary. Finances Comments: All expenses for the utility are not itemized in a utility budget.The utility currently does not track utility expenses in detail.Monthly financial reports showing the budget vs.actual amounts are not submitted to the council.The utility is current paying all water/wastewater electric'bills.The administrator reported the utility currently has an adequate fuel supply.On May 26,Koliganek received 31,400 gallons of heating oil and 9,853 gallons of unleaded gasoline.Koliganek is expecting two more shipments of heating fuel and gas.The utility is not receiving revenues sufficient to cover operating expenses;therefore the utility is subsidized from the general fund;the amount of the subsidy is not shown in the budget. -52- April -May -June 2011 4h Quarter SFY11 -RUBA Report Accounting Systems Essential Indicators Yes No , The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. An accounts receivable system is in place which track customers and reports past due accounts and amounts. An accounts payable system is in place. The payroll system correctly calculates payroll and keeps records A cash receipt system is in place that records incoming money and what it was for. The Utility has a cash disbursement system that records how money was spent.HAKKeOOOOOOWOWSustainable Indicators &©)Achart of accounts is used that identifies categories in a reasonable,usable manner.C1 &€Monthly bank reconciliation's have been completed for all utility accounts. &(1 The utility has a purchasing system that requires approval prior to purchase,and the approval process compares proposed purchases to budgeted amounts. Accounting Comments: Currently the utility has no adopted collection policy.The utility bills customers on a regular basis,but the method of tracking account receivables and past due accounts need to be refined.Accounts payable are tracked by individual checkbook ledgers for each account and are entered in an Excel spreadsheet. Payroll is done manually in Excel.Their manual system correctly calculates payroll.The administrator maintains the cash receipts and keeps money locked up in a safe.The administrator writes a receipt for cash received;a check is written for each invoice and entered into a ledger at the end of the day. Invoices are filed into the vendor's file.When spare parts for the water system are purchased,the water operator provides a price quote to the administrator for approval,the water system operator purchases the part and provides an invoice to the administrator.When the invoice is paidit is entered into the Excel Spreadsheet ledger. Tax Problems Essential Indicators Yes No X C1 The utility has a system to accurately calculate,track,and report payroll tax liabilities. X 1 The utility is current on filing tax reports.&C1 The utility is current on making tax deposits. XX (J Ifthere are any past tax liabilities,a repayment agreement has been signed and repayments are current. Tax Problems Comments: Staff uses manual processing methods to calculate payroll.The Tax Advocate and Alaska Department of Labor (DOL)deemed Koliganek compliant on May 27,2011.Koliganek is not listed in the Small Community Tax Lien List. -53- April -May -June 2011 4"Quarter SFY11 -RUBA Report Personnel System Essential Indicators Yes No (1 The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators The utility has adopted and uses a Personnel Policy,which has been reviewed by an attorney, AML,or DCED for topics and language.C](J The utility has adequate written job descriptions for all positions.(]The utility has adopted and follows a writtenn personnel evaluation process that ties the jobdescriptiontotheevaluation.™(C1 The utility has an adequate written hiring process.&(1 The utility has personnel folders on every employee that contain at least:I-9,Job Application and Letter of Acceptance.1 (J The utility has a probationary period for new hires that includes orientation,job- training/oversight,and evaluations.X (1 The utility provides training opportunities to staff as needed and available. Personnel System Comments: The Village of Koliganek currently has a workers'compensation insurance policy through AMLJIA, which is valid until July 1,2011.The city's personnel policy includes an evaluation process and a written hiring process.The president performs yearly evaluation of employees.Job descriptions need to be updated.The Village administrator provided several employee files for inspection.Copies of the I-9, Job Application and letters of acceptance were on file.The Village of Koliganek budgets for and provides training opportunities as they become available to staff. 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 CL]&.The utility has adopted an organizational chart that reflects the current structure. (1 The policy making body meets as required.™.(1 The utility complies with the open meeting act for all meetings.UIXRXRAKXWOOOOOOOrganizational Management Comments: The entity that owns the utility is known and the entity that will operate the utility is set.The village council is the active policy making body for the utility.The utility enforces current utility policy; however,the current utility policy is very vague.The current policy does not address billing dates, utility fees,and policies for collecting late payments.RUBA staff discussed a utility ordinance with the village council.The council will be working with RUBA staff on improving their utility policy.The administrator acts as the bookkeeper and is adequately trained.The current water/wastewater operator is certified through December 31,2012.The policy making body meets as required,on the third Thursday of each month,and complies with the Open Meeting Act for all meetings. -54- April --May -June 2011 4t Quarter SFY11 -RUBA Report Operation of Utility Essential Indicators Yes No &(1 The utility operator(s)are actively working towards necessary certification. &(1 The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators iOORMAKRWOMOOOOOOfThe manager receives a monthly O&M report from the utility operator and routinely "spot checks”the facilities to see that the maintenance items are being completed. The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Consumer Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC)list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. Operation of Utility Comments: The current water/wastewater operator is trained and utilizes a preventative maintenance plan.The current operator is certified in Small Water Systems to December 31,2012.The utility has completed its Consumer Confidence Report and is not on the Significant Non-Compliance list.The water operator staff maintains a comprehensive inventory control and critical spare parts list.RUBA recommends further training and CEU study for the water/wastewater operator to maintain CEU credits for renewal of certification.The utility is run by one person.There was a safety manual present on site,but no safety meetings are held.RUBA staff observed the water wastewater operator providing a status reportduringtheircouncilmeeting. RUBA Activities For The Coming Quarter RUBA staff will work closely with village officials;and will continue providing assistance upon request to assist in meeting all of the essential capacity indicators. -55- April -May -June 2011 "4"Quarter SFY1 1-RUBA Report -56- April --May -June 2011 ra Quarter SFY11 -RUBA Report Larsen Bay Activity Report Community Overview Lead RUBA Staff:Brice Eningowuk,Anchorage Office 2009 Population:87 Region:Kodiak Istand Local Government:2™Class City located within the Kodiak Island Borough,Tribal Council "| #3,'\PhatetPOT”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 of them are fully plumbed.Weekly refuse collection services are provided.The community incinerator is currently unusable and all refuse is deposited at the landfill site.The city has been funded for a water treatment plant project from Village Safe Water (VSW). RUBA Activity This Reporting Period Anchorage RUBA staff provided assistance this quarter with drafting a resolution to increase all boat harbor violation rates to $150.Power Cost Equalizatin (PCE)reporting assistance was provided to the City of Larsen Bay for the month of May 2011.RUBA staff also provided assistance with the Alaska Energy Authority (AEA)Bulk Fuel Revolving Loan Fund loan application,as the fuel vendor was on hold until the loan was secured by AEA.A judgment recorded in the state recorder's office in 1995 had not been released.However,since the judgment was more than 10 years old,AEA was able to disregard the judgment issue and move forward with the loan so that the community fuel order can proceed. -57- April -May -June 2011 4"Quarter SFY11 -RUBA Report Capacity Indicators Finances Essential Indicators Yes No {&(J Allrevenue and expenses for the utility are listed in the utility budget.XI (C1 The utility has adopted a balanced realistic budget.J CJ Monthly financial reports are prepared and submitted to the policy making body. &CO 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 supply. C1 The utility is receiving revenues (user fees or other sources)sufficient to cover operating expenses. Sustainable Indicators C]&The utility is receiving revenues (user fees or other sources)sufficient to cover operating expenses and Repair &Replacement (R&R)costs. &{(J)YTDrevenues are at a level equal to or above those budgeted. *)LJ yYTDexpenditures are at a level equal to or below those budgeted. &CJ A monthly manager's report is prepared.{1 (1 Budget amendments are completed and adopted as necessary. Finances Comments: The utility manager is the primary utility operator and is also the mayor.The manager provides a verbal report to the council in addition to a financial statement in a separate agenda line item.The water and wastewater utility electric bills are issued for the pumphouse and checks for payment are issued from the city to the city water utility.The city received sufficient fuel from Crowley on May 25,2011 to cover needs until the fall order of fuel is received.The utility has a Repair and Replacement account, but funds are not listed in a line item on the utility expenditures.The YTD revenues for the utility are subsidized by the electric utility in the amount of $15,000.The YTD expenditures for the utility are equal to those budgeted as stated in the monthly financial report.Budget amendments are utilized when needed. Accounting Systems Essential Indicators Yes No The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. An accounts receivable system is in place which track customers and reports past due accounts and amounts. An accounts payable system is in place. The payroll system correctly calculates payroll and keeps records A cash receipt system is in place that records incoming money and what it was for. The Utility has a cash disbursement system that records how money was spent.KMRAXWKYOOOOOOOSustainable Indicators X (]Achart of accounts is used that identifies categories in a reasonable,usable manner.&(1 Monthly bank reconciliation's have been completed for all utility accounts. &)CI The utility has a purchasing system that requires approval prior to purchase,and the approval process compares proposed purchases to budgeted amounts. -58 - April -May -June 2011 4"Quarter SFY1I1 -RUBA Report Accounting Comments: The city staff is in the process of providing copies of the original ordinances to be codified into a new code book.There are different water and sewer ordinances;the issue is that there are amendments and to have them codified into a single book will reduce the chances of using a prior ordinance that may be an earlier version of the same ordinance without the current changes.The city utilizes QuickBooks Pro 2009 and reports are made utilizing the program.The city accounts receivable report was generated and shows all transactions for the water and wastewater for all customers.The city accounts payable report was generated and shows no accounts to be paid.When the city receives cash,the customer is offered a receipt and the data is then entered into QuickBooks following the transaction with the ledger/receipt number.Every Monday the city deposits the cash into the bank account.A chart of accounts was also generated and lists all current assets,liabilities and equities for the City of Larsen Bay.Monthly bank reconciliations are done at the end of the month by the city clerk.All purchases are routed from the employee to the mayor and the mayor to the clerk for processing. Tax Problems Essential Indicators Yes No ; (][&The utility has a system to accurately calculate,track,and report payroll tax liabilities.(1 &The utility is current on filing tax reports. CL}&The utility is current on making tax deposits. ©(1 Ifthere are any past tax liabilities,a repayment agreement has been signed and repayments are current. Tax Problems Comments: The IRS report from June 20,2011,states that the city has no lien recorded.There are issues that the city is working on in regards to federal tax filing and has a deposit that is past due.The state ESC report from June 28,2011 states that the city is in compliance with state tax filings,deposits and is not on the March April lien watch. Personnel System Essential Indicators Yes No &C1 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. 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.XWwewwOOFOOOO-59- April -May --June 2011 4"Quarter SFY11 -RUBA Report Personnel System Comments: The city has an insurance policy with Alaska Municipal League Joint Insurance (AMLJIA)from July 1, 2011 to July 1,2012.A copy of the personnel policies was provided that has sample job descriptions, evaluation and hiring processes,and a probationary period of 30 days.The employee personnel files are kept in a locked file cabinet in the city clerk's office that has I-9,job applications,and all correspondence regarding employee and employer. 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.RRRRwRFooooooo2Sustainable Indicators ®(0 The utility has adopted an organizational chart that reflects the current structure. &C1 The policy making body meets as required. )(1 The utility complies with the open meeting act for all meetings. Organizational Management Comments: The City of Larsen Bay is the utility owner/operator of the water and wastewater utility.The ordinances are updated as needed and those ordinances are followed in regards to collection policies.The primary operator is part-time,as he is the water/wastewater and electrical operator;he is scheduled to be at the pumphouse for two weeks and the other operators cover the remaining weeks in a month.The city clerkoverseesallthebookkeepingfortheutility.The billing clerk receives and enters all incoming transactions into QuickBooks.A secondary water operator attended a water operator training in March 2011.The organizational chart is in the personnel polices manual and includes all employees with the exception of the city clerk and billings clerk in a separate branch under the mayor.The organizational chart does reference Title 29 and regulatory agencies in separate branches above the city council. -60- April -May -June 2011 4 Quarter SFY1I1 -RUBA Report Operation of Utility Essential Indicators Yes No (1 The utility operator(s)are actively working towards necessary certification.&LJ 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.NOWNHKWyMNXOOOOOOOperation of Utility Comments: A secondary water operator attended a water operator training in March 2011.There is an operations and maintenance manual for the existing pumphouse dated 1981.The new pumphouse is approximately 90 percent complete and once the project is finished,a new operations and maintenance manual will be provided.The city has a monthly safety meeting with the water/sewer/electric operators and the last meeting was on January 11,2011 when RUBA staff arrived at city hall.There have been no major outages other than electric power outages due to broken lines,but city employees were able to assess the situation and figure out the issue prior to the linemen from Kodiak arriving to repair the lines.The water utility is operating at a level proposed,but the rate is set too low and the water utility has to be subsidized by the electric utility.The last CCR on file is the 2009 CCR.The water utility is not on the current SNC list.The city does not have an inventory control list as there is a new plant that is near completion.There is no record ofa critical spare parts list with the city. RUBA Activities For The Coming Quarter The city council has a signed RUBA assistance agreement.RUBA staff will continue onsite visits quarterly to assist the community to meet all of the unmet management indicators. -61- April -May --June 2011 4h Quarter SFY11 -RUBA Report -62- April -May -June 2011 4h Quarter SFY11 -RUBA Report Nikolai Activity Report Community Overview Lead RUBA Staff:Myra Ambrose,Anchorage Office 2009 Population:88 , Region:Interior Local Government:2"Class City edAll 47 households and facilities use individual wells;of these,only two units lack plumbing.Thirty-three homes,including 10 new HUD housing units north of the airport,are connected to the piped sewage system.The remaining 15 homes use septic tanks.Funds have been requested for a master plan to rehabilitate the washeteria,develop two new wells,upgrade the landfill and expand the piped sewer system. RUBA Activity This Reporting Period On April 18,2011,Anchorage RUBA staff contacted the city staff in response to a request for assistance.The city office manager provided a RUBA assessment update regarding taxes for the previous quarter and discussed problems with making online payments to the IRS when the internet is down and assistance with QuickBooks is also limited due to the limited internet connection.The manager is in contact with the IRS and Turnagain Press QuickBooks consultants to resolve the issue once the connection is more reliable.The city clerk continues to request QuickBooks assistance.This quarter,RUBA staff provided assistance in reviewing council/board vacancy notices,reconciliations, -and researching utility customer accounts.The city administrative assistant attended a RUBA sponsored QuickBooks training and has assumed some of the accounting tasks in an effort to support the manager. -63- April -May -June 2011 4"Quarter SFY11 -RUBA Report Capacity Indicators Finances Essential Indicators Yes No &(1 All revenue and expenses for the utility are listed in the utility budget. &(1 The utility has adopted a balanced realistic budget. &(©Monthly financial reports are prepared and submitted to the policy making body. &(1 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 supply.X)(1 The utility is receiving revenues (user fees or other sources)sufficient to cover operating expenses. Sustainable Indicators {1 &The utility is receiving revenues (user fees or other sources)sufficient to cover operating expenses and Repair &Replacement (R&R)costs. {CJ)yYTDrevenues are at a level equal to or above those budgeted. &()YTDexpenditures are at a level equal to or below those budgeted.&©A monthly manager's report is prepared.[J [&Budget amendments are completed and adopted as necessary. Finances Comments: The City of Nikolai drafted and adopted the FY12 budget with RUBA assistance.The budget includes expenditures for the wastewater department.The city's budget has been entered into QuickBooks and the city clerk prepares a monthly financial report that compares actual income and expenditures to the budget.The City of Nikolai owns and operates the electric utility;they are current with the electric bill for the septic system.The City of Nikolai receives fuel from Everts,Inc.on an as needed basis.All fuel 'orders are paid in full upon arrival.The City of Nikolai does not charge residents for wastewater service because only a small portion of the community is on the system.The city has instead chosen to subsidize the wastewater utility through the fuel and electric sales revenue.Although the council does not receive a monthly financial report that compares actual income and expenditures to the budgeted amounts,the office provides this information with separate reports that,when compared,show the utility's year-to-date figures are at a level equal to those budgeted.Manager/operator reports are given verbally when requested by the council.Because of the small labor pool in Nikolai,many city council members either work for the city or donate time to the city to complete needed jobs or tasks. -64- April -May -June 2011 4 Quarter SFY11 -RUBA Report Accounting Systems Essential Indicators Yes No &](1 The utility has adopted a collection policy and actively follows it.1 The utility bills customers ona regular basis.&J (1 Anaccounts receivable system is in place which track customers and reports past due accounts and amounts. J CJ Anaccounts payable system is in place.{J (1 The payroll system correctly calculates payroll and keeps records&CI Acash receipt system is in place that records incoming money and what it was for.I LJ 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. tainMNS7 b)OOKNOAccounting Comments: The city does not have an adopted collection policy for the sewer utility because they do not charge the customers.They do,however,have an adopted collection policy that they actively and consistently enforce for the electric and fuel utilities;these utilities subsidize the sewer utility..The city utilizes QuickBooks for accounts receivable,accounts payable and payroll.The QuickBooks system is set up properly and has been a tool to reliably keep the city's finances in order.Bills are issued on a regular basis by the fifth of every month in accordance with the city's billing and collection policy.Monthly bank reconciliations were completed through June 2010;however,bank reconciliations are not currently being completed for each bank account.RUBA staff will contact the QuickBooks consultant to assist in catching up reconciliations.The city purchasing system requires prior approval from the mayor or city clerk depending on the purchase amount.Once approval has been given,a purchase order is issued;however,requests are not compared to the budgeted amounts. Tax Problems Essential Indicators Yes No DJ CJ)The utility has a system to accurately calculate,track,and report payroll tax liabilities.C]W&The utility is current on filing tax reports.Cl]&The utility is current on making tax deposits.(1 If there are any past tax liabilities,a repayment agreement has been signed and repayments are current. Tax Problems Comments: The city uses the QuickBooks accounting program to accurately track,calculate and report payroll tax liabilities.Liabilities are paid monthly.The IRS is reporting the City of Nikolai is not current with their - payroll liabilities.The QuickBooks consultant and the RUBA staff assigned to the community is working with the community to resolve the issue.Alaska Department of Labor deemed the City of Nikolai compliant at this time. -65- April -May -June 2011 4"Quarter SFY11 -RUBA Report Personnel System Essential Indicators Yes No &(1 The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators The utility has adopted and uses a Personnel Policy,which has been reviewed by an attorney, AML,or DCED for topics and language. The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least:I-9,Job Application and Letter of Acceptance.. The utility has a probationary period for new hires that includes orientation,job- training/oversight,and evaluations.&(4 The utility provides training opportunities to staff as needed and available.1WOORMHORWOPersonnel System Comments: The City of Nikolai has a posted workers'compensation insurance policy in effect from July 1,2011 to July 1,2012 with Alaska Municipal League Joint Insurance Association (AMLJIA).The city's current hiring process is not written.Job notices are posted for ten days with the job title and description. Interested applicants apply at the city office.There is currently no probationary period for employees. Personnel folders contain:I-9,Job Application and Letter of Acceptance.Training opportunities to staff are provided as funds allow or opportunities by other sponsors come available. 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.NRRRNNRSOoooooo2Sustainable Indicators CL]&The utility has adopted an organizational chart that reflects the current structure. (1 The policy making body meets as required. &(O The utility complies with the open meeting act for all meetings. Organizational Management Comments: The City of Nikolai is known as the entity that owns and operates the utility,and is active in policy making for the utility.The city council has been actively enforcing the fuel and electric utility policy. The city clerk has attended a QuickBooks training class sponsored by the RUBA program.Utility operators have completed trainings that have adequately prepared them to operate the utilities.The City of Nikolai has adopted the necessary ordinance to give it the authority to operate.The Nikolai City Council meets as required and complies with the Open Meeting Act for all meetings. -66- April -May -June 2011 4%Quarter SFY11 -RUBA Report Operation of Utility Essential Indicators Yes No ? &(1 The utility operator(s)are actively working towards necessary certification.{(CJ The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators NedOOORXWEKWOMWOOOOOfThe manager receives a monthly O&M report from the utility operator and routinely "spot checks”the facilities to see that the maintenance items are being completed. The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Consumer Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC)list. The utility maintains an inventory control list. The utility maintains a critical spare parts list. Operation of Utility Comments: The utility operator is not certified and is actively working toward the necessary certification.A preventative maintenance plan for the existing system is on file in the city office.The City of Nikolai does not participate in AMLJIA monthly safety meetings or conduct other means of safety meetings. The utility operator reports to the mayor,vice-mayor or city clerk when there is a problem or when he can foresee one.The utility operator and council attempt to keep needed critical spare parts on hand but they currently have no written critical spare parts list. RUBA Activities For The Coming Quarter RUBA staff will continue to work with the City of Nikolai as needed to ensure the council has all the necessary assistance to meet any deficient management indicators.QuickBooks consultants will continue to provide QuickBooks assistance as requested.Once the reconciliations are complete,a new ' financial report will be requested. -67- April -May June 2011 4%Quarter SFY11 -RUBA Report -68- April -May --June 2011 4h Quarter SFY11 -RUBA Report Noatak Activity Report Community Overview Lead RUBA Staff:Georgianna Phillips,Kotzebue Regional Office 2009 Population:514 Region:Northwest Arctic Local Government:IRA Council Northwest Arctic edWater is derieved from the Noatak River and is treated.Seng,et PO” The primary well occasionally runs dry,groundwater wells have been unsuccessful in the area.A piped, recirculating water and sewer distribution systems services 100 homes,the school and businesses in Noatak.However,over half of the homes cannot use the service due to lack of plumbing.These residents haul water and honey buckets;there is no washeteria.The village has requested funding for water treatment plant upgrades,this has been designed,permitted for construction and partially funded, however additional funding is needed.In addition a project to complete upgrades to the existing waste heat recovery system is planned for the summer/fall 2011.Funds also have been requested to upgrade the existing landfill,rehabilitate two lift stations,purchase a 1500 gallon sludge pumper,and to provide in-house plumbing to homes without. RUBA Activity This Reporting Period On May 25,2011,RUBA staff traveled to Noatak to conduct a RUBA management capacity assessment.RUBA staff reviewed each of the points of the assessment and clarified any material or indicators that were not clear.RUBA staff also met and networked with the other office staff during the onsite.The assessment revealed the Noatak Village Council has not met all essential indicators on the RUBA assessment. -69- April -May -June 2011 ;4"Quarter SFY11 -RUBA Report Capacity Indicators Finances Essential Indicators Yes No &(1 Alirevenue and expenses for the utility are listed in the utility budget.&(C1 The utility has adopted a balanced realistic budget.L]&=Monthly financial reports are prepared and submitted to the policy making body. XX (C1 The utility is current in paying all water/wastewater electric bills.&C1 The utility has on hand a year's adequate fuel supply or it has financial plan to purchase an adequate supply.C)&The utility is receiving revenues (user fees or other sources)sufficient to cover operating expenses. Sustainable Indicators [1 &The utility is receiving revenues (user fees or other sources)sufficient to cover operating expenses and Repair &Replacement (R&R)costs.(1)&=yYtTDrevenues are at a level equal to or above those budgeted.{(CJ YTDexpenditures 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: Although they are current in paying their electric bills,paying other accounts payable and report adequate fuel on hand,the utility had difficulty paying the fuel bill in the second quarter and was supplemented by the Native Village of Noatak IRA Council for making this payment.Financial indicators show that the utility does have the revenue at the end of the year,but due to lags in utility payments by the customers,the revenues during this period were not sufficient to cover the payments of the fuel loan.The utility manager provides quarterly reports to the council., Accounting Systems Essential Indicators Yes MXRWWONo 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. Sustai OOWshIBOSIIOOOOOOin 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. -70- April May -June 2011 4"Quarter SFY11 -RUBA Report Accounting Comments: The Utility Board/Native Village Council meets once a month and recently has increased the reconnect fee from $50 to $100 as recommended.The utility bills customers monthly and tracks customer payments and past due accounts on the invoices issued.The accounts receivables history indicates that past due bills are paid by the customers when they receive the State of Alaska PFD in October.The utility manager stated that no disconnects are done in the winter.At the time five residents were identified by the manager for disconnect.The monthly bank reconciliations have been completed. However the utility manager needs to complete and close out past bank statements of 2005 through 2009. Tax Problems Essential Indicators Yes No XX (1 The utility has a system to accurately calculate,track,and report payroll tax liabilities.(1 The utility is current on filing tax reports.XX (C1 The utility is current on making tax deposits.XX)(1 [Ifthere are any past tax liabilities,a repayment agreement has been signed and repayments are current. Tax Problems Comments: The utility utilizes QuickBooks to accurately calculate,track and report tax liabilities.The IRS and Dept.of Labor have deemed the utility compliant. Personnel System Essential Indicators Yes No ™(C1 The utility has a posted workers compensation insurance policy in effect. Sustainable IndicatorsCL]&The utility has adopted and uses a Personnel Policy,which has been reviewed by an attorney,AML,or DCED for topics and language. The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least:1-9,Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation,job- training/oversight,and evaluations.XX)(C1 The utility provides training opportunities to staff as needed and available.KhkeWOOOOOWPersonnel System Comments: The workers compensation insurance policy had a lapse in policy and was brought to the attention of the administrator.Insurance has been purchased and insured by Liberty Northwest Insurance Corporation.The policy period is from May 21,2011 to May 31,2012.The Personnel Policy has been updated and adopted.The administrator used language for the personnel policy from Maniilaq Association,but has had no review process for topics and language.An adopted job description of the utility manager was on hand,but did not have a current job description for the water/wastewater plantoperators;RUBA staff provided a job description to the administrator to review and/or update and adopt. -71- April -May -June 2011 Fi Quarter SFY11 -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 &(1 The utility has adopted an organizational chart that reflects the current structure.&(1 The policy making body meets as required. &C)The utility complies with the open meeting act for all meetings.MNNAWORRXOOOOWOOOrganizational Management Comments: The Noatak Utilities is a separate entity from the Native Village of Noatak as created by the Noatak Village Council.The utilities are regulated by the Native Village of Noatak Council and they also serve as the utility board.There is a set policy/timeline in which delinquent accounts are to be processed and followed.The maximum bill accumulated is $225.The accounts indicated that five accounts are past this amount.In the personnel policy adopted by the council,the administrator is now the supervisor of the utility manager,but much of the utility manager's work is still managed independently.The council meets once a month,at which time the utility manager gives a report.The utility employs two operators;one serves as a permanent employee and the other as alternate.Both operators have met their CEU's,but are not current in their certification.The utility makes it a practice not to shut off services in the winter and does so in the spring and summer. Operation of Utility Essential Indicators Yes No &(1 The utility operator(s)are actively working towards necessary certification. C]{&The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators C 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.XIOOMMAwAoOMMOOOOBw-72- April -May -June 2011 4"Quarter SFY11 -RUBA Report Operation of Utility Comments: Currently neither operator is certified at the correct level and will need additional training to obtain the correct certification.RUBA staff was unable to meet with the primary operator during the assessment visit as he was out sick and the back-up operator was out of town.The utility has issued a Consumer Confidence Report for the year 2008/2009 and is current with their CCR registration.The operators have a form for reporting the pump house daily status but no completed forms were provided for review.The utility manager did not have a safety manual or hold safety meetings.No major problems were reported by the utility manager at this time,but a concern was called into her regarding a liftstationinanareawherewaterwasrunningandthepossibilityofrun-off into the unit.As there was no available plant personnel to check on the lift station the utility manager was able to call in a past worker to check on the situation and to report on it. RUBA Activities For The Coming Quarter RUBA staff will work with the utility to meet the unmet indicators. -73- April -May -June 2011 4"Quarter SFY11 -RUBA Report -74- April -May -June 2011 4h Quarter SFY11 -RUBA Report Pilot Point Activity Report Community Overview Lead RUBA Staff:Barbara Higgins,Dillingham Regional Office 2009 Population:61 Region:Alaska Peninsula Local Governments:2"Class City edIndividual wells,cisterns,septic tanks and outhouses are used in Vee,er Pilot Point.There is no central water or sewer system,but all occupied homes have complete plumbing. The city provides septic pumping services and maintains a sewage lagoon.Over half of homes are used only seasonally,and there is a community landfill,A wind turbine supplements the community's electrical supply,and there is a project underway to install a second wind turbine.Pilot Point Electric provides electricity. RUBA Activity This Reporting Period On May 9,2011,RUBA staff and the RUBA staff supervisor traveled to Pilot Point to provide a two day financial sustainability training to council and city staff.The City of Pilot Point recently had a 'RUBA assessment completed.Monthly financial reports and a realistic,balanced budget were some of the deficient essential indicators identified.The training stressed the importance both of these key elements have on financial sustainability.The city does not have a sufficient accounting class list to allow for adequate budgeting and classing of revenues and expenses.Work was done on establishing classes by researching the city's municipal code and setting a list of classes that better represents the activities of the city.RUBA staff will continue to work with the city manager to integrate establishing the departments into the municipal code.Another issue was customer accounts in the QuickBooks accounting system have many inconsistencies.and balances are not correct.This can in part be attributed to the continued changes in staffing and how information was being entered.RUBA staff tried to instill the importance of stability with staff as well provide guidance with the municipal code and proper policies and procedures needed regarding spending city funds.Transparency was stressed with both the council and the city staff. 75- April -May -June 2011 4"Quarter SFYI1 -RUBA Report Capacity Indicators Finances Yes No XX (All revenue and expenses for the utility are listed in the utility budget. &1 The utility has adopted a balanced realistic budget.&©Monthly financial reports are prepared and submitted to the policy making body.&©)The utility is current in paying all water/wastewater electric bills. &(2 The utility has on hand a year's adequate fuel supply or it has financial plan to purchase an adequate supply. [1 W&The utility is receiving revenues (user fees or other sources)sufficient to cover operating expenses. Sustainable Indicators Cl W&The utility is receiving revenues (user fees or other sources)sufficient to cover operating expenses and Repair &Replacement (R&R)costs. C]&YtTDrevenues are at a level equal to or above those budgeted. (1 &YTD expenditures are at a level equal to or below those budgeted.&OO A monthly manager's report is prepared.(1 Budget amendments are completed and adopted as necessary. Finances Comments: The city adopted the FY11 budget on November 11,2010.A copy of the approved budget was submitted to the Division of Community and Regional Affairs (DCRA)as required by law.FY11 YTD expenses to May 2011 are exceeding budgeted expenses,a budget amendment is needed.The budget is not balanced or realistic and amendments are necessary.Monthly financial reports comparing actual YTD revenues and expenses are included in the agenda packet for the monthly regular meetings. According to the most recent invoice (May 2011)from the electric company,the utility is current with the electric bill.Heating oil for the utility is delivered by barge two times per year.The city received a Bulk Fuel Bridge Loan spring of 2011.In May 80,000 gallons of fuel and gasoline was delivered,a sufficient supply until the fall barge season.The utility does not have a line item for Repair and Replacement expenses in the budget.The meeting minutes and agenda indicate that the manager provides a written and verbal report every month and the minutes reflect what was reported. -76- April -May June 2011 git Quarter SFY11 -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.HXRHWOOOOOOOWSustainable Indicators &O Achart of accounts is used that identifies categories in a reasonable,usable manner.(J Monthly bank reconciliation's have been completed for all utility accounts. Cl W&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 billing and collection procedures are included in the utility ordinance,adopted July 03,2004. RUBA staff has a copy of the approved ordinance on file:The accounts receivable reports indicate that there are amounts more than 90 days past due.The city is working on being proactive in collection for services;the ordinance provides for actions for delinquent bills and discontinuance of service. However,due to the nature of the service,the utility's discontinuance of service is not exercised due to health and safety issues of not providing septic pumping services.Customer invoices are entered into the account receivable program.Customer payments,although recorded as income,prior to current staff were not properly posted in the accounts receivable program:as such it is difficult to tell what the customer balances are.A random review of account receivable files indicated that the utility bills are issued by the tenth of each month,as required by the utility's billing procedures.Staff uses QuickBooks for bookkeeping.Customer invoices and payment for each customer are entered into the accounts receivable program.The utility bookkeeper uses QuickBooks Pro 2010 for financial record keeping, including all payroll records.The bookkeeper is proficient in the use of QuickBooks:all payroll records are up to date through March 2011.The utility clerk writes a receipt for any income received.A copy of every receipt is kept in a permanent receipt book.At the end of the week,new data from the receipt book is entered into the utility's computerized account system.All payments are made by check.Every check includes the amount,an expense account and a description of what the payment is for.A copy of paid invoices is kept in the vendor files.The utility's chart of account identifies all asset account (undeposited funds,bank accounts,and accounts receivable),all liability accounts (current,long-term and payroll liabilities),and fund balances.Income and expense accounts are identified in a manner that matches the income and expenses line items in the budget.Bank reconciliations are done and have been completed through May 2011.The utility is proposing an ordinance requiring purchase orders for proposed purchases.The city manager is the purchasing agent. Tax Problems Essential Indicators Yes No &(The utility has a system to accurately calculate,track,and report payroll tax liabilities. C1]&The utility is current on filing tax reports. X OO The utility is current on making tax deposits. &)C1 Ifthere are any past tax liabilities,a repayment agreement has been signed and repayments are current. -77- April -May -June 2011 4"Quarter SFY11 -RUBA Report Tax Problems Comments: The city uses the QuickBooks Pro 2010 accounting program to accurately calculate,track,and report payroll tax liabilities.On June 27,2011 RUBA staff received confirmation from the IRS and Department of Labor that the city is current with ESC tax reports and deposits,however the utility has not submitted an IRS quarterly tax payment for the quarter ending December 31,2010 and March 2011: the payment is overdue,penalties will be incurred starting July 15,2011.The utility is not on the Lien Watch list. Personnel System Essential Indicators Yes No . ](1 The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators ®O}OOX OWORmO 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 notice of insurance is posted in plain view in the city offices.According to the notice of insurance, workers compensation insurance is provided by the Alaska Municipal League Joint Insurance Association from July 1,2010 to July 1,2011.A June 09,2011 check of the Division of Worker's Compensation website confirmed that the policy remains in effect.A copy of the city's personnel policies,adopted December 2008,is on file with RUBA staff.Job descriptions are not available that expressly outline each employee's required duties.The city does have a written evaluation process. Employees state they have not been formally evaluated annually.The hiring process is described in the utility's personnel policies adopted December 2008.A copy of the policy is on file with RUBA staff. Personnel folders are not current or available for all employees.The probationary period or introductory period for new hires is six months,as described in the personnel policy.New hires are evaluated at the end of the introductory period.The utility budget includes an appropriation of $4,000 for staff training. -78 - April -May -June 2011 4h Quarter SFY11 -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.HHAKMXXHOOOOOOOSustainable Indicators CL]&The utility has adopted an organizational chart that reflects the current structure. &(1 The policy making body meets as required.&(C1 The utility complies with the open meeting act for all meetings. Organizational Management Comments: The utility ordinance identifies the city as the owner and operator of the utility (sewer lagoon and septic pumping).Council meeting minutes confirmed that the council reviews policies and rates on an annual basis and makes changes as needed.Meeting minutes for the past quarter confirms that the city council takes an active role in enforcing utility policy.The manager competently develops and oversees the utility budget,oversees the utility operator and the utility clerk,and provides monthly reports to the governing body.The bookkeeper is new to her position,however she has formal training and experience for the job.She is quite competent and maintains all of the accounting systems in a professional and timely manner.The utility maintains a sewer collection system with septic disposal and septic tank pumping.The Alaska Department of Environmental Conservation does not require a level of training or certification for this system.The city adopted a utility ordinance in July 2003. RUBA staff has a copy of the signed ordinance on file.The city does not have an organizational chart. Regular council meetings are held once a month;special meeting are held as needed.All meeting for the current quarter have been held as scheduled.The meeting files and minutes confirm that agendas are posted and that all meetings are open to the public as required by the Open Meetings Act. Operation of Utility Essential Indicators Yes No &(C1 The utility operator(s)are actively working towards necessary certification.{(1)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.MHHNXKHKWeOOOOOOOO-79- April -May -June 2011 ai Quarter SFY11 -RUBA Report Operation of Utility Comments: According to the ADEC website,Pilot Point does not have a system that requires a certified operator. The utility operates a sewer lagoon and septic pumping service. RUBA Activities For The Coming Quarter Based on the assessment,a work plan and budget have been developed to deal with the problems.The work plan is an effort to bring the community up to an acceptable management performance standard.Continued RUBA assistance to this community depends on the community meeting a baseline level of progress towards improvement.The council has a signed RUBA Agreement that outlines the services this division is providing and stipulates and outlines the actions the city is taking in order to receive the continued RUBA quarterly assistance. -80 - April -May -June 2011 4 Quarter SFY11 -RUBA Report Saxman Activity Report Community Overview Lead RUBA Staff:Glen Hamburg,Juneau Regional Office , 2009 Population:411 Region:Southeast Local Governments:Tribal Council adNine households and the public school are connected to a piped Maa water system and operate private septic sewage systems.The remaining households,eight,access water from public watering points and dispose of honey bucket waste in private seepage pits.The public water system distributes untreated water.A washeteria constructed in recent years is not in use.A state Village Safe Water 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.The water/sewer system renovation project,with assistance from Village Safe Water,is in design;construction was to start summer 2009, but is currently on hold.The city operates the electric utility and landfill.Community fuel storage capacity is as follows:Arviq village corporation.(67,100 gals.);City Power Plant (5,600 gals);Lower Kuskokwim Schools (7,000 gals). RUBA Activity This Reporting Period RUBA staff traveled to Saxman April 25-27 to conduct a RUBA management assessment,finding that the city meets all of the essential management capacity indicators and nearly all of the sustainable - indicators.To correct these deficiencies,RUBA staff outlined to city officials the need to fully implement its personnel policy,acquire a safety manual,and develop inventory control and critical spare parts lists.The updated RUBA assessment will allow the City of Saxman to be eligible for sanitation project assistance from the Alaska Native Tribal Health Consortium (ANTHC).RUBA staff further assisted the community this quarter by supplying the finance officer with a copy of the Division's Water Rate Calculator Guidebook.The guidebook will help to determine the true cost of sanitation services in Saxman and to calculate an appropriate and sustainable user rate.Finally,RUBA staff registered city officials at an upcoming Financial Management for Utility Operators course in Ketchikan this summer,in order to ensure the long-term sustainability of Saxman's sanitation services. -81- April -May -June 2011 4"Quarter SFY11 -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.HhKokOOOOOThe utility has on hand a year's adequate fuel supply or it has financial plan to purchase an adequate supply.|, XK)1 The utility is receiving revenues (user fees or other sources)sufficient to cover operating expenses. Sustainable Indicators &)C1 The utility is receiving revenues (user fees or other sources)sufficient to cover operating expenses and Repair &Replacement (R&R)costs. (1 YTD revenues are at a level equal to or above those budgeted. &(©)YTD expenditures are at a level equal to or below those budgeted. C]A monthly manager's report is prepared. &(J Budget amendments are completed and adopted as necessary. Finances Comments: The City of Saxman adopted its FY11 budgets by non-code ordinance on June 18,2010 for the fiscal period beginning July 1,2010 and ending June 30,2011.The ordinance comprises three separate, independent budgets for the city's general fund,the water and sewer systems,and the municipality- owned and operated Saxman Seaport.In all three budgets,projected revenues are equal to proposed expenditures.The water and wastewater budget identifies revenue from water and wastewater service charges separately from other sources of revenue,such as NSF fees,late payment fees,and checking account interest.The utility's 38 associated expenditure categories,which include operator wages, payroll taxes,workers compensation insurance,chemicals,testing,utilities,licensing,travel,and maintenance costs,are separated from all other operations and expenses of the city.Having a separate utility budget allows the city to ensure that revenues generated from user fees are sufficient to cover all utility-related costs.The city has projected that utility costs for FY11 will total $131,340.This figure realistically includes all associated expenses,such as the purchase of fuel from Andres Oil in Ketchikan as needed on a 'keep full'contract,travel and per diem costs to send operators to necessary trainings, and a reserve for potential water and sewer maintenance costs.Currently,user fees are sufficient to cover all of these operating costs and a subsidy from the city's general fund is not necessary.The city has nearly 70 customers receiving piped water and sewage services.Those customers are divided into residential customers who pay a combined,uniform flat rate of $65 each month ($45 for water service and $20 for wastewater service)and commercial customers who pay a flat rate of $375 each month ($225 for water service and $150 for wastewater service).These rates are reviewed annually by the city council and were last adjusted in 2009.The city administrator/clerk,who also functions as the utility manager,reports that when a water treatment system upgrade is completed in the next few months,the city will conduct another review and make rate adjustments if necessary to cover additional operating costs.To keep the council informed of the utility's financial position,the city's finance officer prepares monthly profit and loss reports that compare actual month-to-date and year-to-date amounts with the revenue and expenditure figures originally budgeted.The reports also clearly indicate the percentage of funds already used in each line item and the dollar amount remaining ('uncommitted')for the remainder of the fiscal year.A review of three months of financial reports shows that year-to-date revenues are slightly above budgeted amounts and that year-to-date expenses are below those budgeted.Wheneveradjustmentstotheoriginalbudgethavebeenrequiredtoallocateadditionalfundingtoanyitem,the city council has adopted budget amendments ('modifications').Ketchikan Public Utilities provides electrical -82- April -May -June 2011 4"Quarter SFY11 -RUBA Report service to the City of Saxman.RUBA staff reviewed eight service statements and found that the utility is current in paying all of its electric bills. 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.KKKWWOOOOOOOSustainable Indicators &C1 Achart of accounts is used that identifies categories in a reasonable,usable manner. {&(J)Monthly bank reconciliation's have been completed for all utility accounts. &(C 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: Utility billing statements are sent out to customers on or around the 26th day of each month.The statements include the customer's name and address,the amount due for water and sewer services, previous statement balances,late fees,net balances,and the due date.Accounts are considered 'past due' if customers do not pay their bill by the 15th day of the month following the statement period. Customers have the option of submitting their payments by mail,in person to the finance clerk during business hours,or by placing it in a secure 'drop box'in the front of city hall at any time of day. Additionally,the utility is set up to receive customer payments by Visa,MasterCard,Discover,and American Express credit cards.The credit card payment surcharge is not passed on to any specific customer,but rather is folded into the overall administrative expenses of the utility.The finance officer reports,however,that the majority of customers pay by cash at city hall.The city has adopted and actively enforces an effective collections policy.In accordance with the ordinances adopted by the city council between 2002 and 2009,past due customers are first mailed a delinquency notice reminding them to make their payment.If payment is still not received by the 25th day of the month,a 10 percent late fee and a $10 'door notices posting fee'is assessed.Past due customers who have not signed a repayment agreement (which can include the voluntary assignment of Permanent Fund Dividends) within 90 days are referred to the Ketchikan Credit Bureau for collections and are disconnected from service.According to the utility's aged trial balance account summary,only two utility customers are in 'disconnected'status and approximately 11%of customers are more than 90 days past due.Frey accounting software is used for utility billing,accounts receivable,accounts payable,and payroll.This software encompasses three integrated modules:the Cubic utility billing and control system,the Chips payroll system,and the Bucs general fund accounting system.The finance officer has reported that together,these systems are sufficient for the utility's accounting needs.The software subscription includes 24-hour live technical support which the city can utilize for operating assistance when needed. Customer payments are first manually entered into a triplicate receipt book that records the customer's name and address,the date,the payment amount,what the payment was for,the form of payment,and who the payment was received by.Payment information is then recorded in the computerized accounting software.The software can clearly identify which customers are current in their payments and which are 30 days,60 days,or 90 days past due.The utility's cash disbursement system consists of a detailed and logical chart of accounts with 10-digit account codings,a purchase order process,and a check register.Purchase requisitions are first submitted to the finance officer who verifies funding availability,approves the purchase,allocates the purchase to a specific area,and assigns it the proper -83 - April -May June 2011 4"Quarter SFY11 -RUBA Report account code.The finance clerk then drafts a purchase order which must be signed by either the finance officer or the city administrator.The finance officer reconciles the city's bank accounts on a monthly basis.RUBA staff has received copies of the city's general account,water/sewer account,payroll account,and credit card account reconciliations for the month of March 2011.The separate credit card account is set up to receive credit card payments received by customs for utility and seaport services. The city then transfers deposits made into this account to the appropriate enterprise fund. Tax Problems Essential Indicators Yes No 1 (J The utility has a system to accurately calculate,track,and report payroll tax liabilities. 0 (1 The utility is current on filing tax reports.(1 The utility is current on making tax deposits. &(J If there are any past tax liabilities,a repayment agreement has been signed and repayments are current. Tax Problems Comments: The City of Saxman uses Windows-based Frey accounting software to accurately calculate,track,and report its payroll tax liabilities.The IRS's Taxpayer Advocacy Office has confirmed that Saxman is current in its federal tax reports and filings and that the IRS has no liens against the city.The Alaska Department of Labor and Workforce Development confirmed on June 17 that all state tax payments are current as well.There are no past tax liabilities. Personnel System Essential Indicators Yes No &(C1 The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators &(1 The utility has adopted and uses a Personnel Policy,which has been reviewed by an attorney, AML,or DCED for topics and language. 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. K}C1 The utility provides training opportunities to staff as needed and available.hWeOWOOOWOPersonnel System Comments: All city employees are covered by an Alaska Municipal League Joint Insurance Association (AMLJIA) workers compensation insurance policy.That policy is effective from July 1,2011 until July 1,2012 and covers work-related accidents and occupational diseases up to the Alaska statutory limits for each occurrence.Proof of coverage is posted in all areas of employment,including the city hall,the community hall,and the water treatment plant.RUBA staff verified that the city is current in its payments to AMLJIA and that adequate funds have been allocated in the city budget for payments over the remainder of the fiscal year.The city implements a well-established personnel management system with the city administrator and the city council's personnel committee continually reviewing personnel matters.A personnel policy handbook was formally adopted by the city in 2005 and is required to be read by every employee.The handbook covers a broad range of topics,including recruitment,selection, -84- April -May -June 2011 4"Quarter SFY11-RUBA Report the hiring process,transfers,promotions,under-fillings,demotions,work hours,pay,benefits,leave, holidays,career development,conduct,grievances,and performance reviews.The personnel policy also requires a 90-day probationary period for new hires in which an employee is provided orientation and is closely observed by the supervisor.At the end of the probationary period,copies of a performance report completed by the supervisor are to be given to the employee and filed in the employee's personnel file.While the probationary period has historically been applied to all city employees and officials,the council is scheduled to amend this provision at its April 27,2011 regular meeting.The amendment will exempt elected officials from the probationary period in accordance with recent recommendations by a Public Employees Retirements System (PERS)auditor.Chapter IV,Section |of the City of Saxman Personnel Policy requires that formal utility employee performance evaluations be conducted not only at the end of the 90-day probationary period,but annually.The city administrator/clerk does keep the personnel committee apprised of all personnel-related issues,though annual written performance evaluations are not completed.Comprehensive written job descriptions, however,have been adopted by the city for each utility operator and clearly define position titles, certification requirements,supervisors,qualifications,work hours,and duties.These job descriptions are included in the utility staffs'personnel folders,along with Employment Eligibility Verification Form I-9s,W-4s,new hire packets,copies of certifications,and disciplinary warning memos.The city continues to budget for and provide training opportunities to utility staff as needed and available.The city administrator/clerk has attended personnel management,.business administration,financial planning,and municipal clerk training courses and is active in the Sanitation Deficiency System (SDS) program.The city administrator/clerk has also expressed interest in attending a 32-hour RUBA Financial Management class if available this summer.Utility operators are consistently provided the opportunity to undertake certification trainings and examinations and remain in contact with Alaska Native Tribal Health Consortium (ANTHC)engineers for onsite training with new equipment.In the city's FY11 budget,approximately $13,000 is allocated to city officials and staff for travel costs,of which $1,000 is specifically for the utility operators. 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.HHNXXRKSOOOOOOOSustainable Indicators &{(1 The utility has adopted an organizational chart that reflects the current structure. &(1 The policy making body meets as required. &(©)The utility complies with the open meeting act for all meetings. Organizational Management Comments: The City of Saxman owns and operates the community's water and wastewater systems.Ordinances giving the city the necessary authority to operate these systems have been adopted,though they have not been properly codified into a cohesive utility chapter of the municipal code in a number of years. The city council is Saxman's policy-making body.The council holds regular meetings as required by Title 29 on the third Wednesday of each month.To comply with the Open Meetings Act,the city consistently posts notice of each meeting at least five days in advance at the city hall,the tribal office, .the seaport,the South Tongass Service building,and the Cape Fox Corporation building.Meetings are also advertised in the Ketchikan Daily News and on three public radio stations.Each notice indicates -85- April -May -June 2011 4"Quarter SFY11 -RUBA Report the type of meeting to be held,as well as its location,date,and time.The city council is active in policy-making for the utility,as evidenced in the six months of council meeting minutes reviewed by RUBA staff and the eight years of utility-related ordinances passed by the council.The meetings minutes show that the council is provided with utility manager reports,briefings on ongoing utility upgrade projects,staffing and financial issues,training requests,and concerns of the public.The utility's rate structure and collections policy are reviewed annually and have been adjusted on five occasions since 2002.Provisions within the collections policy are strictly enforced;customers are assessed late fees,referred to collections,and disconnected from service as required.City residents are barred from elected office until all municipal debts have been paid,all in accordance with the collections policy. The city administrator/clerk,Leona Haffner,functions as the utility manager.Ms.Haffner has worked for the city for approximately four years and is appropriately trained to oversee the day-to-day operations of the utility.She has attended personnel management,business administration,financial planning,and municipal clerk training courses and is active in the Sanitation Deficiency System (SDS) program.Ms.Haffner provides written monthly reports to the city council and holds staff meetings with the utility operators each Monday.Cheryl Capps is the city's finance officer and oversees the utility's financial and accounting systems.Ms.Capps has worked for the city for just under two years and has significant financial experience from the public and private sectors.The two utility operators,Michael O'Larick and Richard Shields,are both certified at the necessary level for the water treatment and distribution system classifications,yet Mr.O'Larick currently only holds provisional wastewater collection certification.The State of Alaska's Department of Environmental Conservation,Division of Water has rated Saxman's water treatment system at the Class 1 level based on the plant's various components.The city's water distribution and wastewater collection systems are also rated as Class 1, though this level is determined by the number of connections served.Accordingly,the operators hold the following endorsements:Michael O'Larick Water Treatment,Level 1 -Expires 12/31/2012 Water Distribution,Level 1 -Expires 12/31/2012 Wastewater Collection,Provisional -Expires 12/31/2011 Richard Shields Water Treatment,Level 1 -Expires 12/31/2013 Water Distribution,Level 1 -Expires 12/31/2013 The operators have until the expiration of the relative certifications to meet the CEU requirements.Mr.O'Larick's provisional wastewater collection certification is not renewable after the expiration date,though the city administrator/clerk is working to schedule him at the next possible training and examination.The city utilizes an organizational chart that clearly indicates levels of authority and the relationship between supervisors and subordinates. Operation of Utility Essential Indicators Yes No KX (1-The utility operator(s)are actively working towards necessary certification. &(1 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.OOORWAWOKMXWOOOOf-86- April --May -June 2011 4h Quarter SFYII -RUBA Report Operation of Utility Comments: As noted in the 'Organizational Management section,the utility operators are adequately certified at the classification level of the city's water treatment and distribution systems.Further,the utility manager is working to schedule Michael O'Larick at the next wastewater collection training course and examination in order to advance his provisional endorsement to a full Level 1 certificate.Both operators continue to meet DEC's CEU requirements on time and receive onsite training and assistance from ANTHC engineers.At the time of the assessment,the city was in the process of installing new water treatment equipment with the assistance of ANTHC.A preventative maintenance plan was included in the operations manual for the older equipment and an updated preventative maintenance plan relative to the new system will be on hand as well.While the utility does not maintain a formal safety manual or hold standardized safety meetings,resources explaining general safety practices such as lifting and common workplace hazards are available.The utility manager also meets at least weekly with the operators,makes routine spot checks of facilities,and receives verbal reports from utility staff addressing any issues of concern,including safety topics.The utility has annual fire safety inspections conducted and is considering the installation of protection fences around its fuel tanks.Saxman's sanitation facilities have not suffered any major outages due to management issues and continue to operate at the proposed level of service.However,the city's water treatment system is still listed on the Environmental Protection Agency's most recent Significant Non-Compliance (SNC)list for elevated levels of disinfection by-products (DBPs).This list was last updated in January of 2011.Since then,the city has neared completion of its treatment system upgrades.These upgrades will hopefully bring DPB levels into allowable levels,partly by reducing the quantity of chlorine required during the treatment process.The utility can be removed from the SNC list after it has obtained one quarter of water quality testing without any DBP violations.The utility continues to distribute its Consumer Confidence Reports that have included a boil water notice since December 21,2006.The community's water system uses surface water,which,if inadequately filtered,may contain disease-causing organisms.Because the filtration system that was in place over the last several years did not meet the Surface Water Treatment Rule,the utility issued recommendations in accordance with DEC requirements that customers boil their water for at least two minutes before drinking.That notice listed the date of notice distribution,the state water system identification number,and a description of the potential adverse effects from drinking water that has not been boiled.The utility operators reported to RUBA staff that the last boil water notice will be sent out on April 30,2011.Notices will not be required after that date because the upgraded treatment system will be online and operational.Though the operators have kept some critical spare parts on hand,they have not maintained an inventory control list or a complete critical spare parts list for the old treatment system.The utility will have a collection of other spare parts with the completion of the new treatment system and the utility operators will work with ANTHC staff to develop necessary parts lists relevant to the new equipment. RUBA Activities For The Coming Quarter The City of Saxman continues to meet all of the RUBA assessment's essential indicators and nearly all of its sustainable indicators.In the coming quarter,RUBA staff will continue to monitor the management of Saxman's utilities,provide financial management training to city staff,help to compile inventory control and critical spare parts lists,and work with city officials to conduct a utility rate study if requested. -87- April -May June 2011 i Quarter SFY11 -RUBA Report -88- April -May -June 2011 4"Quarter SFY11 -RUBA Report Shishmaref Activity Report Community Overview Lead RUBA Staff:Iura Leahu,Nome Regional Office 2009 Population:606 Region:Bering Straits Local Governments:2"Class City edThe City of Shishmaref provides water and sewer (flush "ee..:woeandhaul),watering point,honey bucket bin rentals PNT hauling (HBBR)and washeteria services,which include public showers,laundromat and water sale services.The main clients are the city residents,school,clinic and other non-profit and for-profit businesses.There is some residential plumbing currently in use.There are approximately 15 homes that utilize an above ground septic system.Most residents haul their own water from the washeteria.In the summer,most residents collect rain from rooftops.In the winter,residents simply chop chunks of ice from one of two ponds located about five miles away from the city,load it into their snow machines, and take it to their homes.The school,local health clinic,city hall and garage use common water and sanitary sewer systems.At this time,neither the city nor the garage has systems that are operational. The city garage has the heavy equipment,fire truck,the Shishmaref emergency services office and the city lodge.The water is being treated at the treatment plant located in the washeteria.The city uses the pumphouse distribution plant to transport water to the businesses listed above.Both the washeteria and pumphouse have separate water storage tanks.The treated water is delivered to these buildings via water pipes.The generated waste is transported through sewage pipes to the sewage lagoon located approximately 300 yards away from the buildings. ey RUBA Activity This Quarter Nome RUBA staff had frequent contact with city and utility staff.The city council has had multiple meetings,regular and special meetings,to discuss the proposal to conduct a community site selection feasibility study for the possible future city relocation.The city and city utility have also jointly worked with other regional and community organization to discuss building a new consolidated tank farm to assure the city has adequate fuel for the community.Nome RUBA staff assistance this quarter consisted of designing the organizational chart,reorganizing and revising of several sections of the code of ordinances,and submitting those sections to the city council for approval.In April of 2011,the utility bookkeeper attended and completed a 32-hours Financial Utility Management class sponsored by the RUBA Program.The city hired a new city bookkeeper.Nome RUBA staff was informed that the bookkeeper is in need of training and the city would like RUBA staff provide onsite training to the city bookkeeper and other city staff.The city council decided in May of 2011 to lay off the utility bookkeeper because of lack of funding.However,the city council rehired the bookkeeper about a month later.At the July city council meeting,a decision was made to reduce the work hours for the city clerk and city bookkeeper due to lack of funding.The city council also invited Nome RUBA staff totraveltoShishmarefonJuly13,2011. -89- April -May --June 2011 ri Quarter SFY11 -RUBA Report Capacity Indicators Finances Essential Indicators Yes No &C1 Allrevenue and expenses for the utility are listed in the utility budget./(1 The utility has adopted a balanced realistic budget. &(©)Monthly financial reports are prepared and submitted to the policy making body.{&)(©The utility is current in paying all water/wastewater electric bills. &(The utility has on hand a year's adequate fuel supply or it has financial plan to purchase an adequate supply.X (C1 The utility is receiving revenues (user fees or other sources)sufficient to cover operating expenses. Sustainable Indicators *)(C)The utility is receiving revenues (user fees or other sources)sufficient to cover operating expenses and Repair &Replacement (R&R)costs. C]& YtTDrevenues are at a level equal to or above those budgeted. &(CI YTDexpenditures are at a level equal to or below those budgeted. &(C1 A monthly manager's report is prepared.&)(Budget amendments are completed and adopted as necessary. Finances Comments: The City of Shishmaref operates the utility as an enterprise.The utility is compliant with the essential indicators of the utility finance.The regular scheduled meeting minutes of June 21,2011,show that the city council approved the FY12 budget with corrections.The utility and city finances are in good standing.The city,however,continues to struggle receiving the necessary utility related revenues to cover the operating expenses.The city council made a decision to continue subsidizing the washeteria by transferring money from other funds,such as the Payment in Lieu of Taxes (PILT).The newly hired city bookkeeper and the utility clerk prepare monthly financial reports and submit them to the city council on monthly basis.The bookkeeper provided RUBA staff with the last three months'monthly financial reports.The city council is active in the budget appropriation process and it has a good grasp of the fiscal reality of the city and utility.The council makes informed decisions regarding utility finances because it receives and reviews monthly financial reports. Accounting Systems Essential Indicators Yes HHKKWXNo OOOOOOOThe utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. An accounts receivable system is in place which track customers and reports past due accounts and amounts. An accounts payable system is in place. The payroll system correctly calculates payroll and keeps records A cash receipt system is in place that records incoming money and what it was for. The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators &CL]A chart of accounts is used that identifies categories in a reasonable,usable manner.D4 L]Monthly bank reconciliation's have been completed for all utility accounts.X L]The utility has a purchasing system that requires approval prior to purchase,and the approval process compares proposed purchases to budgeted amounts. -90- April -May -June 2011 4 Quarter SFY11 -RUBA Report Accounting Comments: The city council laid off the utility clerk due to lack of funds but rehired the clerk a month later.The utility clerk attended and completed a 32-hours Financial Management for Rural Utilities class sponsored by the RUBA program.The utility clerk is responsible for the cash receipt system and collections.The clerk sends out monthly utility bills to customers and offers a payment plan option to delinquent customers.The utility clerk passes along the financial information to the city bookkeeper, who uses QuickBooks Pro 2010 to generate monthly financial reports,prepare monthly bank reconciliations and track payroll liabilities.The city clerk reported that all purchases are made in accordance with the budget.The QuickBooks Pro monthly financial reports are converted to Excel spreadsheet format which makes them much easier for council members to read and understand. Tax Problems Essential Indicators Yes No (1 The utility has a system to accurately calculate,track,and report payroll tax liabilities.&}=01 The utility is current on filing tax reports.&C1 The utility is current on making tax deposits.%(C1 Ifthere are any past tax liabilities,a repayment agreement has been signed and repayments are current. Tax Problems Comments: Confirmation was received showing the city and the utility were compliant with the federal tax deposits and the Alaska State Department of Labor.The city and the utility use QuickBooks Pro 2010 to accurately calculate,track,and report payroll tax liabilities.The city has no past tax liabilities or liens recorded. Personnel System Essential Indicators Yes No . &(1 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. 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.™(1 The utility provides training opportunities to staff as needed and available.RomwwOgoooPersonnel System Comments: The city and the utility have general liability and workers'compensation coverage.The workers compensation insurance is purchased through Alaska Municipal League Joint Insurance Association (AMLJIA)and is valid until July 1,2012.The city and the utility follow the personnel policies in the day-to-day management of personnel.All city departments,including the fuel sales and washeteria,use the city's comprehensive personnel policies.Although the city's code of ordinances contains written job -91- April -May June 2011 4"Quarter SFY11 -RUBA Report descriptions and written procedures on personnel evaluation and hiring,the code of ordinances needs to be reviewed,updated,and codified.Currently,the city clerk is working on codifying the code of ordinances.RUBA staff in Nome obtained a copy of the code of ordinances and has been working with the city clerk in revising and updating the code.The city maintains personnel files for all the city employees.The city clerk reported that the city did not include Form 1-9 for each employee yet,but it is in the process of updating all employees'files to include an I-9.The city and the utility have a probationary period for new hires that includes orientation,job-training/oversight and evaluation,which is completed after ninety days of an employee on the job.The city and the utility provide training opportunities to staff as funds are available.=* Organizational Management Essential Indicators Yes No The entity that owns the utility is known and the entity that will operate the utility is set. The policy making body is active in policy making of the utility. The policy making body enforces utility policy. The utility has an adequately trained manager. The utility has an adequately trained bookkeeper. The utility has an adequately trained operator(s). The utility has adopted the necessary ordinances (or rules and regulations)necessary to give it the authority to operate. Sustainable Indicators &(1 The utility has adopted an organizational chart that reflects the current structure.&(1 The policy making body meets as required. &(CJ The utility complies with the open meeting act for all meetings.DEADAPPATPAAIGOOOOOOOOrganizational Management Comments: Shishmaref's utility is operated as an enterprise.It has a utility board which consists of members of the city council.The board is active in policy making and the city enforces the utility policies as per the code of ordinances.The city clerk and members of the city council reported that the board has monthly' utility meetings.The utility has a certified water operator,who is the manager and is supervised by the city clerk.The council hears monthly oral reports on the operation,finances and management of the utility from the operator.There is also an alternate water operator who works part-time or as needed. The alternate operator provided a tour of the washeteria and the two water treatment facilities to RUBA staff.The operator was proud to hold his job because the utility has provided good clean water to the residents.The city has a current organizational chart posted on the wall of the city clerk's office.Nome RUBA staff created a new organizational chart and emailed it to the city.The utility has a bookkeeper who keeps track of the utility finances.The bookkeeper is a part-time employee.The bookkeeper was laid off but rehired in July of 2011.The city council plays an active role in policy making.The April through June public meeting minutes show that the council discusses the utility finances and adopts budget amendments to facilitate the operation of the utility without creating interruption in services. The city council asked for more assistance in setting rates. -92- April May -June 2011 4"Quarter SFY11 -RUBA Report Operation of Utility Essential Indicators Yes No (1 The utility operator(s)are actively working towards necessary certification.&LL)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.bedOOUXHekXkeWWOOOOOOOperation of Utility Comments: The utility has a lead and an alternate water operator.The lead water operator is certified and is pursuing CEUs to maintain his certification.The alternate water operator does not have a certificate but he has attended classes,has been actively working towards certification and has a total of approximately five years of experience as a water operator.The utility has a preventive maintenance plan and a safety manual.According to meeting minutes,the utility holds monthly safety meetings by phone.The safety meetings are provided by the Alaska Municipal League Joint Insurance Association (AMLJIA).The utility has not suffered any major problems or outages for many years.The operator provides oral status reports to the city council and meets all required regulations.The utility is not on the Significant Non-Compliance list.The utility does not maintain an inventory control list and a critical parts list.RUBA staff recommended that the governing body address this problem.RUBA staff advised the governing body to contact the remote maintenance worker or the engineer assigned to the city to ask for assistance in creating an inventory control list. RUBA Activities For The Coming Quarter Nome RUBA staff will make at least one trip to the city to work with the city council and city staff to meet the essential and sustainable indicators identified in the quarterly RUBA report.RUBA staff assistance for the next five months will consist of the following: 1.Codify the code of ordinances 2.Provide onsite financial management training to the new city bookkeeper. 3.Assist the utility to create and maintain an inventory control and critical spare parts list 4.Meet with the city council to provide training on rate setting and review user fee rates. -93- April May -June 2011 4h Quarter SFYI1I -RUBA Report -94- April -May -June 2011 4h Quarter SFY11 -RUBA Report St.Paul Activity Report Community Overview Lead RUBA Staff:Brice Eningowuk,Anchorage Office 2009 Population:479 Region:Aleutians Local Governments:2"!Class City ° Water is obtained from seven wells and is treated."Re ;peoCurrently,there are storage tanks with 850,000 gallons (|PNAot of capacity.All 167 homes are connected to the piped water and sewer system and are fully plumbed. An ocean outfall line was recently added for seafood processing waste.The city collects refuse,and has started a solid waste reduction and recycling program.A landfill,incinerator,sludge and oil disposal site have been recently completed.Three other landfills are located on the island.A $3 million power plant has been completed.There are three wind turbines located on the island with only one operational connected to the airport and hotel. RUBA Activity This Quarter Anchorage RUBA staff has maintained contact with the community and receives necessary documentation of compliance with RUBA assessment indicators.Anchorage RUBA staff traveled to Saint Paul to conduct a new RUBA assessment and provide an overview of the RUBA utility management courses 'Utility Clerk Management for Rural Utilities'and 'Introduction to Utility Management for Rural Utilities'on May 25-27,2011. -95- April -May June 2011 '4"Quarter SFY11 -RUBA Report Capacity Indicators Finances Essential Indicators Yes No All revenue and expenses for the utility are listed in the utility budget. The utility has adopted a balanced realistic budget. Monthly financial reports are prepared and submitted to the policy making body. The utility is current in paying all water/wastewater electric bills. The utility has on hand a year's adequate fuel supply or it has financial plan to purchase an adequate supply. The utility is receiving revenues (user fees or other sources)sufficient to cover operating expenses.bhwWewkKe1)OOOOOSustainable Indicators The utilityis receiving revenues (user fees or other sources)sufficient to cover operatingexpensesandRepair&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. us & Dx XI bd OOOFinances Comments: The City of Saint Paul uses the calendar fiscal year.The FY11 city budget includes the water and wastewater enterprise and was adopted on December 15,2010.The water and wastewater enterprise budget has a listed income of $363,280 and listed expenditures of $238,779,with a surplus of $124,501. The remaining balance from each enterprise goes into a separate fund balance reserve account at the end of a fiscal year.Monthly financial reports are given to the city manager from the utility director andthengiventothecouncilatcouncilmeetings;a review of the February2,2011 meeting minutes documented this.City staff agreed to incorporate a budgetary line item in the utility expenses to include the R and R cost in the next budget amendment.The public works director provides a monthly update to the city manager and the city manager provides an entity wide update on city enterprises.Budget amendments are made when necessary,next amendment process is scheduled for the summer or fall. -96 - April -May -June 2011 4"Quarter SFYI1 -RUBA Report Accounting Systems Essential Indicators Yes No The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis.An accounts receivable system is in place which track customers and reports past due accountsandamounts. 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.e/ooooOOOLg|PIDIbAosDAIWAnable Indicatorsi[1 A chart of accounts is used that identifies categories in a reasonable,usable manner.&(J Monthly bank reconciliation's have been completed for all utility accounts.&(1 The utility has a purchasing system that requires approval prior to purchase,and the approval process compares proposed purchases to budgeted amounts. Accounting Comments: The utility charges flat rates for residential water customers;meters are installed for all commercial customers.The city has a collection policy in Chapter 11 of the Saint Paul Code of Ordinances and includes the current water rates,which were adopted in 2011.A sample utility bill was provided by the city finance department and has the water,wastewater,refuse,sales tax and electric customer charges. Billing is the first week of each month.The City of Saint Paul uses the Multiple Operations Manager System (MOMS)2005 for their accounting needs.The residential water class has 241 customers and the aging accounts receivable report,dated May 26,2011,has $2,702.99 owed to the city from the residential water class.Accounts Payable is done in Excel and has all unpaid orders and no outstanding bills past 90 days.The chart of accounts categorizes revenues and expenditures in a complete and understandable manner.Anchorage RUBA staff observed the monthly bank reconciliation method by the Saint Paul Financial Department.Bank reconciliations are done with all checks,deposits,and bank statements on the first week of the month.The utility uses a purchasing system that involves a purchase requisition for any purchases over $500.The purchase requisition is generated,then the public works director approves the requisition and the city manager has final approval. Tax Problems Essential Indicators Yes No XX CO)The utility has a system to accurately calculate,track,and report payroll tax liabilities. The utility is current on filing tax reports.Mo Oo X -(1 The utility is current on making tax deposits.WH oO If there are any past tax liabilities,a repayment agreement has been signed and repayments are current. Tax Problems Comments: As of June 8,2011,the City of Saint Paul is compliant with federal tax deposits,filing,and does not have a lien on record with the IRS.As of June 20,2011 the City of Saint Paul is compliant with statetaxdeposits,filing and does not have a lien on record with the state Division of Labor and Workforce Development. -97- April -May -June 2011 i Quarter SFY11 -RUBA Report Personnel System Essential Indicators Yes No &(1 The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators Khkeww&. O OOOOOO The utility has adopted and uses a Personnel Policy,which has been reviewed by an attorney, AML,or DCED for topics and language. The utility has adequate written job descriptions for all positions. The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least:I-9,Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation,job- training/oversight,and evaluations. The utility provides training opportunities to staff as needed and available. Personnel System Comments: The City of Saint Paul is covered with workers compensation insurance through the Alaska Public Employers Insurance from July 1,2010 through July 1,2011.The hiring process is in the code of ordinances and has a public notice of at least two weeks.The manager has authority to hire temporary positions until a permanent employee is selected by the city manager with council approval.Employee files are kept in a locked cabinet in the city clerk's office and has all employee documentation. Documentation includes form I-9,job application and letter of acceptance.The personnel policies and procedures are in the Saint Paul Code of Ordinances and there is a probationary period of three months. Anchorage RUBA staff noted that evaluations are also done at six months and a year after employment. Travel and training is offered to employees as funding allows,due to high cost of travel. Organizational Management Essential Indicators Yes DapceJPSeVEAEAiad4No OOOOOOOThe 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 {(J The utility has adopted an organizational chart that reflects the current structure. 0 The policy making body meets as required.; &)(1 The utility complies with the open meeting act for all meetings. -98 - April -May -June 2011 4"Quarter SFY11 -RUBA Reportip Organizational Management Comments: The City of Saint Paul owns and operates the water and sewer utility and meets every third Wednesday of each month.Minutes from a special meeting held on February 2,2011 show that the council had adopted new water and sewer rates with ordinance 11-01.The City of Saint Paul uses utility ordinances to enforce billing,collection,customer shut off and reconnection of the water utility to the customer. The city has a trained public works director that has more than three years experience.The public works director reports to the city manager and the manager reports to the council.There will be a new public works director in July 2011.The city financial director is new,but has more than 10 years experience in bookkeeping.There are two water operators and the primary operator has the water distribution and treatment certification from the Department of Environmental conservation due to expire on December 31,2011,and also has a level 1 collection certification due to expire December 31,2013.The utility ordinance is found in Chapter 10:Water Utility in the Saint Paul Code of Ordinances.The organizational chart is detailed and has all city employees listed and shows the lines of authority for each position.The Open Meetings Act is followed with proper postings in at least three public places five days prior to the meeting. Operation of Utility Essential Indicators Yes No &%(C1 The utility operator(s)are actively working towards necessary certification. &(1 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.&C]DORRRYRwWAOOOOOOOperation of Utility Comments: The alternate water operator has obtained a provisional water treatment and distribution certification which expires on December 31,2013 and is working towards meeting the CEU requirements for a water treatment level 1.There are seven wells on island and each well has a copy of the operations and maintenance manual in a sealed bag.Monthly reports are given to the city manager from the public works director and operators have daily checks on five of seven well that are in operation.Safety meetings are held on the first Monday of each month.There have been no major outages of the utility due to managerial errors.The CCR for 2009 was distributed in June 2010 and the 2010 CCR will be distributed in June 2011.The utility was not on the April 2011 SNC list.There is no inventory control list,but numerous parts and material is kept near wells 1 and 2,including pipes,fire hydrants and fittings.A critical spare parts list is in the process of being generated by the administrative assistant at the public works department. RUBA Activities For The Coming Quarter Assistance will be provided by RUBA staff as requested by city staff. -99. April -May -June 2011 :Pi Quarter SFY11 -RUBA Report -100- April -May -June 2011 4 Quarter SFY11 -RUBA Report Tanacross Activity Report Community Overview Lead RUBA Staff:Brendan Smyth,Fairbanks Regional Office 2009 Population:149 Region:Interior Local Government:Tribal Council edi since 1976.Water is treated,stored in a 25,000-gal.tank,?Ne APandpipedtomosthomes.Some residents have individual wells.A piped sewage and septic system serves approximately half of the community;individual septic tanks are also used.Funds have been requested to replace seven failing individual septic tanks with a piped central septic system.The landfill is not permitted by Department of Envronmental Conservation.Electricity is provided by Alaska Power and Telephone from Tok. Piped utility services have been available in Tanacross "Y RUBA Activity This Quarter On May 25,2011,RUBA staff traveled to Tanacross at the request of the Tanacross Tribal Council to conduct a RUBA management assessment.RUBA staff met with the tribal and grants administrator for the village.The council is not currently meeting the essential management indicators in the areas of 'utility finance'and 'organizational management'.RUBA staff worked with the community leaders and administrator to create a work plan so the community can move forward on correcting the deficiencies. -101- April -May -June 2011 4"Quarter SFY11 -RUBA Report Capacity Indicators Finances Essential Indicators . All revenue and expenses for the utility are listedin 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 supply.XX]The utility is receiving revenues (user fees or other sources)sufficient to cover operating expenses.OgwwoooF0OfRwZSustainable Indicators CL)&The utility is receiving revenues (user fees or other sources)sufficient to cover operating expenses and Repair &Replacement (R&R)costs. {I YTD revenues are at a level equal to or above those budgeted. C]&YTDexpenditures are at a level equal to or below those budgeted. ]A monthly manager's report is prepared. [J [&\Budget amendments are completed and adopted as necessary. Finances Comments: The Tanacross Tribal Council does not currently have a budget for the community,and do not prepare financial reports for the council;the finance manager gives a verbal report but not a written report.The utility is current in paying the electric bills to Alaska Power and Telephone Company.The council has a year's worth of fuel on hand,being on the road system makes it easier to fill up when the community is low on fuel.The utility charges a fee for water and sewer service,which may be sufficient to cover their operating expenses and Repair and Replacement costs.However,a budget has not been created and adopted to verify that.The YTD revenues can't be compared to a budget since they do not currently have a budget created for the utility.The YTD expenditures are not known and can't be compared to an unknown budget.The monthly manager's report cannot be reviewed since the manager gives only verbal reports to the council.The utility does not have an operating budget in place,so it is unknown whether the revenue covers the operating expenses. -102- April -May -June 2011 4"Quarter SFY11 -RUBA Report Accounting Systems Essential Indicators Yes No XX)(C1 The utility has adopted a collection policy and actively follows it.XX (1 The utility bills customers on a regular basis.&)(1 Anaccounts receivable system is in place which track customers and reports past due accounts ; and amounts. &™(Anaccounts payable system is in place. (1 The payroll system correctly calculates payroll and keeps records&(1 Acash 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 XI)C]A chart of accounts is used that identifies categories in a reasonable,usable manner.{(1)Monthly bank reconciliation's have been completed for all utility accounts.CJ &The utility has a purchasing system that requires approval prior to purchase,and the approval process compares proposed purchases to budgeted amounts. Accounting Comments: Tanacross Tribal Council has a collection policy in place and actively follows the policy;they bill customers regularly for the services they provide.QuickBooks is used to track the accounts receivable for the utility and report past due amounts.The utility has an accounts payable system in place;theypayabillassoonastheyreceiveit.The utility has an accurate payroll system in place that calculates and records the payments to employees.The utility records money in a receipt book,used mainly for the change used in the washateria.The utility needs to work on creating a cash disbursement system that records how things are spent.The manager does the bank reconciliations every month.The utility does not currently have a written purchasing policy in place. Tax Problems Essential Indicators Yes No X (C1 The utility has a system to accurately calculate,track,and report payroll tax liabilities.™(CI The utility is current on filing tax reports.&C1 The utility is current on making tax deposits.(1 If there are any past tax liabilities,a repayment agreement has been signed and repayments are current. Tax Problems Comments: As of the time of the assessment the Department of Labor and Internal Revenue Service have deemed the utility compliant with tax reporting and deposit requirements. -103- April -May -June 2011 4"Quarter SFY11 -RUBA Report Personnel System Essential Indicators Yes No ©(1 Theutility 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 jobdescriptiontotheevaluation. The utility has an adequate written hiring process. The utility has personnel folders on every employee that contain at least:[-9,Job Application and Letter of Acceptance. The utility has a probationary period for new hires that includes orientation,job- training/oversight,and evaluations.&(1 The utility provides training opportunities to staff as needed and available.XHWWWwOOOOOPersonnel System Comments: The utility has a workers compensation insurance policy in place through Umialik and is current until October 1,2011.The utility has a personnel policy in place and has well written job descriptions.The utility has adopted a written evaluation policy process that uses the job description to assist the evaluation.The utility has a written hiring policy and they keep folders for each employee having the necessary documents in it.The tribal administrator informed RUBA staff of a probationary period for employees as well as having job training and evaluations.The utility also provides trainingopportunitiesforthestaffmembers. 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.OMNNXWEWOOOOOOSustainable Indicators &(1 The utility has adopted an organizational chart that reflects the current structure. &(1 The policy making body meets as required. &)CL The utility complies with the open meeting act for all meetings. -104- April -May -June 2011 4"Quarter SFY11 -RUBA Report Organizational Management Comments: The tribal council is well known as the entity that owns and operates the utility.The council is active and makes policy for the utility.The council also enforces the policy that is made.The manager, bookkeeper,and operators are adequately trained and actively pursue further trainings to keep up to date.The utility needs to create a utility ordinance that gives it authority to operate.The utility has an organizational chart that reflects the current structure of the lines of authority in the community.The policy making body meets as required. Operation of Utility Essential Indicators Yes No 1 (C1 The utility operator(s)are actively working towards necessary certification.{] &The utility has a preventative maintenance plan developed for the existing sanitation facilities. Sustainable Indicators The manager receives a monthly O&M report from the utility operator and routinely "spot checks”the facilities to see that the maintenance items are being completed. The utility has a safety manual and holds safety meetings. Utility facilities have not suffered any major problems/outages due to management issues that are still unresolved. The utility is operating at the level of service that was proposed. The operator provides status reports to the manager on a routine basis. The utility has completed and distributed its Consumer Confidence Report (CCR). The utility is not on the Significant Non-Compliance (SNC)list. The utility maintains an inventory control list. The utility maintains a critical spare parts list.DOOWOkKWkwRWOKWOOOOOperation of Utility Comments: The utility operators have their certifications,which expire in 2012.Currently they do not have a preventative maintenance plan in place;they will work with their remote maintenance worker to correct this issue.The manager (also one of the utility operators)gets reports on the utility operations and performs spot checks on the important pieces of equipment.The utility has safety manuals and holds safety meetings.The utility has not suffered any major outage due to lack of management.The utility currently operates at level that is satisfactory.The manager is also an operator;any issues that arise are immediately known and reported.The utility has not issued a CCR report this year,it is currently being written.The utility is not on the Significant Non-Compliance list.The utility does not have an inventory list or a critical spare parts list in place. RUBA Activities For The Coming Quarter Fairbanks RUBA staff will work with the village manager to improve on their essential indicators and sustainable indicators.RUBA staff also plans travel to the community to work on creating a budget for the community., -105- April -May -June 2011 4°Quarter SFY11 -RUBA Report -106- April -May -June 2011 4"Quarter SFY11 -RUBA Report Tuluksak Activity Report Community Overview Lead RUBA Staff:Eli Jacobson,Bethel Regional Office 2009 Population:373 Region:Lower Kuskokwim Local Governments:[RA Council edtreatment plant,container haul system,and electrical Pane,ot PP services for the community.Only one watering point,with storage capacity of 7,000 gallons,serves the entire community,washeteria,clinic,and the school.Residents haul honey-buckets to 21 bins located sparingly throughout the community. The traditional council operates the washeteria,water ce RUBA Activity This Quarter RUBA staff arrived in Tuluksak May 11 and met with the administrator.The power was out in the town and computers were not accessible.Tuluksak Native Community runs the power plant and provides power to the utility.Brownouts and blackouts are reported to be common.RUBA staff worked with the administrator to gather as much of the assessment information as possible.RUBA staff learned that Tuluksak's budget and financial reports are done by consultant Kate Chaussee located in Soldotna. Financial information is now being requested from the consultant.RUBA staff spoke to Principal Lance Jackson and several teachers.The school is one of the two main utility customers.Principal Jackson communicated dissatisfaction with the water service the school was receiving prior to January 2011,but stated that the service has improved.The power was restored on the second day.The remaining assessment information was collected and a copy of the RUBA Compliance Guide to the Indicators was left with the administrator.Essential indicators found to be deficient were highlighted and explained. On June 17,the draft assessment was sent to the community.During the interim of the draft and the final assessment,additional essential indicators were met.The assessment was finalized on June 27. -107- April -May -June 2011 ae Quarter SFY11 -RUBA Report Capacity Indicators Finances Essential Indicators Yes No 1 (1 Allrevenue and expenses for the utility are listed in the utility budget.{The utility has adopted a balanced realistic budget.{J Monthly financial reports are prepared and submitted to the policy making body. The utility is current in paying all water/wastewater electric bills. O The utility has on hand a year's adequate fuel supply or it has financial plan to purchase an adequate supply.&)C1 The utility is receiving revenues (user fees or other sources)sufficient to cover operating expenses. Sustainable Indicators C1 &The utility is receiving revenues (user fees or other sources)sufficient to cover operating expenses and Repair &Replacement (R&R)costs. [C1 &yYTDrevenues are at a level equal to or above those budgeted. CL]&YTDexpenditures are at a level equal to or below those budgeted.C)&A monthly manager's report is prepared.C1 &Budget amendments are completed and adopted as necessary. Finances Comments: The Tuluksak Native Community has an FY11 budget that has been prepared for them by Alaska Rural Empowered,a consultant group hired by the community.The council adopted the budget by resolution dated March 3,2011.However,the meeting minutes that were provided did not document this.Also Rural Alaska Empowered stated they have changed the budget since then.These changes need to be put into an amended budget.The utility budget has revenues of $68,000 and expenditures of $73,065 equaling a negative balance of $5,065.However,the Tuluksak Native Community revenue is $968,709 with only $919,385 in expenditures providing a positive balance of $49,324.This is more than enough to subsidize the utility;the utility budget does not identify or include a subsidy.Monthly financial reports have been prepared by Alaska Rural Empowered but the meeting minutes do not reflect distribution to the council members during the last three months.Tuluksak Native Community operates its own electric plant and the water plant is not billed.During the entire first day of this assessment the power was out.The administrator stated that the utility has enough fuel for one year.The budget does not have a line item or an account established for repair and replacement.The council meets twice a month. 108- April -May June 2011 qu Quarter SFY11 -RUBA Report Accounting Systems Essential Indicators Yes No The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. An accounts receivable system is in place which track customers and reports past due accounts and amounts. An accounts payable system is in place. The payroll system correctly calculates payroll and keeps records A cash receipt system is in place that records incoming money and what it was for. The Utility has a cash disbursement system that records how money was spent._MXKeKWwOOOOOOOSustainable Indicators ™()Achart of accounts is used that identifies categories in a reasonable,usable manner.L]&Monthly bank reconciliation's have been completed for all utility accounts.&(J The utility has a purchasing system that requires approval prior to purchase,and the approval process compares proposed purchases to budgeted amounts. Accounting Comments: Tuluksak Native Community is working on a utility collection policy.Customers are currently on a prepay system.The administrator and accountant have attended QuickBooks training.A manual system is still being used for accounting while they are transitioning to QuickBooks.Accounts receivable,accounts payable,and the payroll are done with a manual system.A receipt book is used for all customer payments.The administrative secretary showed the file cabinet with all the vendors invoices and payment records.The administrator has to approve all purchases up to five thousand dollars.The tribal president approves purchases between five and ten thousand dollars.Purchases above ten thousand dollars must go before the council.Receipts are kept of these purchases.Monthly bank reconciliations were not provided. Tax Problems Essential Indicators (1 The utility has a system to accurately calculate,track,and report payroll tax liabilities.CL)&The utility is current on filing tax reports.Cl]&The utility is current on making tax deposits.&)(J If there are any past tax liabilities,a repayment agreement has been signed and repayments are current. Tax Problems Comments: The Tuluksak Native Community uses a manual system to calculate and report payroll taxes.The tribal administrator and accountant have both been to QuickBooks training and are in the process of converting to a computerized system.A form requesting release of federal tax information from April 2008 to March 2011 was sent to the IRS on May 13,2011.On June 8,2011 the IRS verified that Tuluksak is current on Federal taxes;however,the state Department of Labor (DOL)was contacted on June 9,2011 and DOL stated that Tuluksak owes Employment Security Contributions for the first quarter of 2011.Tuluksak is not on the Lien Watch dated March-April 2011. -109- April May -June 2011 4"Quarter SFY11 -RUBA Report Personnel System Essential Indicators Yes No ®(1 The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators O OOOOWX xX KhWXWOO 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: Tuluksak Native Community's workers compensation insurance is through the Alaska National Insurance Company for the period from 9/1/10 through 9/1/11.A personnel policy has not been adopted.The utility has written job descriptions for all positions that were available for review at the time of the assessment.The utility does not have an adopted personnel evaluation process.Evaluations are done orally.The utility needs a written hiring process.Personnel folders contain job applications, but not I-9's,and letters of acceptance.The administrator stated the utility has a probationary period of ninety days with an evaluation after three months,but there was no written documentation.On-the-job training and additional training opportunities are provided as necessary.Staff are encouraged to pursue further training opportunities. Organizational Management Essential Indicators Yes OOOWOOWNo WHXhMONWOThe 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 [0 &The utility has adopted an organizational chart that reflects the current structure. CL)The policy making body meets as required. &O The utility complies with the open meeting act for all meetings. -110- April -May -June 2011 4h Quarter SFY11 -RUBA Report Organizational Management Comments: _Tuluksak Native Community owns the utility,and is the policy making body.A collection policy needs to be adopted.The administrator has fifteen months experience and performs the duties of a manager. All other administrative staff have been hired since February 2011.The utility operator has ten years experience,but is not on Alaska's Certified Water/Waste Water Operator list.The ordinances need to be updated and written in a way that provides the city staff the authority they need for operation.The policy making body meets twice each month and meetings are open to the public.The meetings are posted in four different public places and meet the requirements for the Open Meetings Act. Operation of Utility Essential Indicators Yes No (1 The utility operator(s)are actively working towards necessary certification.&(1 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.ODOONORWWOMHWONOOOfOperation of Utility Comments: The utility's operator is Carl Napoka,a permanent part time employee.Mr.Napoka is not on Alaska's Certified Water/Waste Water Operator Database.Mr.Napoka has ten years experience,but states he will not be able to do this job much longer.He came out of retirement just to help his community when the last water operator quit.Mr.Napoka has been trying to train an apprentice for the community.Two trainees are being sent into water operator training.The utility has a preventative maintenance plan on the wall.The administrator is in regular contact with the utility operator,and receives regular verbal status reports,but does not spot check the facility.The utility should create a safety manual,and hold regular safety meetings.The utility has had no major outages since December of 2010.The operator provides status reports to the administrator.While the assessment was being conducted the operator came in and informed the administrator of parts that were needed.The posted CCR is dated July 7, 2008 which does not meet the requirements for a current report.The city is not on the April 2011 Significant Non-Compliance list.The utility does not have an inventory control,or critical spare parts list. RUBA Activities For The Coming Quarter RUBA staff will continue to work with Tuluksak on the remaining indicators in order to bring them into RUBA compliance. -iil- April May --June 2011 ri Quarter SFY11 -RUBA Report -112- April -May -June 2011 qt Quarter SFY11 -RUBA Report Twin Hills Activity Report Community Overview Lead RUBA Staff:Robert Madeson,Dillingham Regional Office .2009 Population:77 Region:Dillingham Local Governments:Tribal Council edPiped water and sewer systems were installed in Twin "*y,Hills in 1977.Water is drawn using a submersible pump, is treated and stored in a 60,000 gallon steel tank.The gravity sewage system feeds to a disposal lagoon on the far west side of town.Approximately 22 households have piped services and complete plumbing. As of 2003 there are seven new HUD housing units with individual wells and septic tanks.The school Operates its own system.A coin-operated washeteria is available.Water,sewer and landfill improvements are currently being studied. af Heme,PO RUBA Activity This Quarter On June 8-9,RUBA staff traveled to the Village of Twin Hills to complete a RUBA assessment of management capacity.RUBA staff met with the Acting Administrator,Bookkeepers,Water-Sewer Operator,and the assigned Remote Maintenance Worker (RMW)working for the Bristol Bay Area Health Corporation (BBAHC).The Twin Hills village staff provided the required documents and information for the RUBA assessment and provided a tour of the village to show the problems of their water/wastewater system.The Twin Hills water/wastewater system was built in 1977 and due to the age of the system,the arctic pipes are cracking or collapsing.The RMW was onsite working with the water/sewer operator to find leaks and unplug sewer lines.ANTHC provided $5,000 in emergency funding and Bristol Bay Economic Development Corporation,(BBEDC)provided a grant of $15,000 to repair the pipes.The Village of Twin Hills has met all of the RUBA essential capacity indicators. -113- April -May -June 2011 4h Quarter SFY11 -RUBA Report Capacity Indicators Finances Essential Indicators Yes No All revenue and expenses for the utility are listed in the utility budget. The utility has adopted a balanced realistic budget. Monthly financial reports are prepared and submitted to the policy making body. The utility is current in paying all water/wastewater electric bills. The utility has on hand a year's adequate fuel supply or it has financial plan to purchase an adequate supply.; The utility is receiving revenues (user fees or other sources)sufficient to cover operating expenses.kK&eWeeOOOOOOSustainable 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.OOwWOC] X C Xd X Finances Comments: All revenues and expenses for the utility are itemized in a utility budget.Copies of the monthly financial reports were provided to RUBA staff.The financial reports detail extra labor costs of $15,000 due to emergency repairs.A grant forth coming from (Bristol Bay Economic Development Corporation (BBEDC)for $15,000 will be applied to these labor costs.Their spare parts budget is over $5000 due to emergency repairs.Emergency money from Alaska Native Tribal Health Consortium (ANTHC)will be applied to this expenditure.The utility is current paying all water/wastewater electric bills.The administrator reported the utility currently has an adequate fuel supply.On May 23,Twin Hills ordered 219,000 gallons of fuel oil and 3000 gallons of unleaded gas for $219,000;monies obtained from the Bulk Fuel Bridge Loan. -114- April -May -June 2011 4"Quarter SFY11 -RUBA Report Accounting Systems Essential Indicators Yes No The utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. An accounts receivable system is in place which track customers and reports past due accounts and amounts. An accounts payable system is in place. The payroll system correctly calculates payroll and keeps records A cash receipt system is in place that records incoming money and what it was for. The Utility has a cash disbursement system that records how money was spent.OOOOOOOSustainable Indicators (1 A chart of accounts is used that identifies categories in a reasonable,usable manner.&(J Monthly bank reconciliation's have been completed for all utility accounts.&CJ The utility has a purchasing system that requires approval prior to purchase,and the approval process compares proposed purchases to budgeted amounts.KZ|XXRROHHAccounting Comments: A copy of the collection policy was provided to RUBA staff.The utility bills customers on a regular basis.A manual ledger is maintained for each customer.Customers who fall behind in their payments and are city employees will have their wage garnished and a payment plan worked out.Non-employee customers will not be able to purchase any fuel or propane until payments are made.Accounts payable are tracked by class using QuickBooks.Payroll is calculated manually,then entered into QuickBooks. The administrator maintains cash receipts and keeps money locked up in a safe.The administrator writes a receipt for cash received;a check is written for each invoice and entered into a ledger at the end of the day.Invoices are filed into vendors file.When spare parts for the water system are purchased,the water operator provides a price quote to the administrator,the request is approved by the administrator, the water system operator purchases the part,and provides an invoice to the administrator.When the invoice is paid,it is entered into QuickBooks.A chart of accounts is maintained and bank statements are reconciled every month. Tax Problems Essential Indicators Yes No &}(C1 The utility has a system to accurately calculate,track,and report payroll tax liabilities.X C1 The utilityis current on filing tax reports.X The utilityis current on making tax deposits.XX (J Ifthere are any past tax liabilities,a repayment agreement has been signed and repayments are current. Tax Problems Comments: Staff uses manual processing methods to calculate payroll.The Tax Advocate deemed Twin Hills compliant on May 31,2011.On May 25,2011 the State of Alaska Department of Labor (DOL)deemed Twin Hills compliant.Twin Hills is not listed in The Small Community Tax Lien List. -15- April -May -June 2011 4h Quarter SFY¥1]-RUBA Report Personnel System Essential Indicators Yes No (1 The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators XI KXWkWOi i)OOOO}80 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 Village of Twin Hills currently has a workers'compensation insurance policy through AMLJIA, which is valid until August 16,2011.The city's personnel policy includes an evaluation process and a written hiring process.The president performs yearly evaluation of employees.Job descriptions need to be updated.The Village of Twin Hills budgets for and provides training opportunities as they become available to staff.The Village administrator provided several employee files for inspection.Copies of the I-9,job application and letters of acceptance were on file. Organizational Management Essential Indicators Yes HXMAXXNo OOOOOOOThe 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 O The policy making body meets as required. &The utility complies with the open meeting act for all meetings. -116- April -May -June 2011 4"Quarter SFY11 -RUBA Report Organizational Management Comments: The entity that owns the utility is known and the entity that will operate the utility is set.The village council is the active policy making body for the utility.The utility enforces current utility policy.The acting administrator is sufficiently trained;the current bookkeepers have sufficient experience and also help with other clerk duties.The current water/wastewater operator is certified in Small Water Systems Untreated,Waste Water Collection,Water Distribution,and Water Treatment through December 31, 2012.The policy making body meets as required,on the third Thursday of each month,and complies with the Open Meeting Act for all meetings. Operation of Utility Essential Indicators Yes No ](1 The utility operator(s)are actively working towards necessary certification. ):(1 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.XOOOXWWOWOMBMOOONOfOperation of Utility Comments: The current water/wastewater operator is trained and utilizes a preventative maintenance plan.Copies of the weekly and monthly preventive maintenance checklist are on file.The current operator is certified in Small Water Systems Untreated,Waste Water Collection,Water Distribution,and Water Treatment through December 31,2012.The utility has completed its Consumer Confidence Report and is not on the Significant Non-Compliance list.The utility is run by one person.There was a safety manual present on site,but no safety meetings are held.The utility is not operating at the level of service proposed;this due to the age of the system and the excessive emergency repairs that have been needed.The water operator staff normally maintains a comprehensive inventory control and critical spare parts list.However due to excessive emergency repairs,an inventory control list and critical spare parts list was unavailable. RUBA Activities For The Coming Quarter RUBA 'staff will continue to work with the Village of Twin Hills to improve sustainable indicators in the areas of Utility Finance,Personnel System,Organizational Management,Operation of Utilities. -117- April May -June 2011 4"Quarter SFY11 -RUBA Report -118- April May -June 2011 4 Quarter SFY11 -RUBA Report White Mountain Activity Report Community Overview Lead RUBA Staff:Iura Leahu,Nome Regional Office 2009 Population:215 Region:Bering Straits Local Governments:2"Class City edWater is derived from a well near the Fish River and is ce - treated.All households and facilities are connected to the Patnty gt AP piped water and sewer system.The new school was completed in August 2009 and is connected to the city's water and sewer system.The City has also requested funding to relocate the landfill.The current site is not permitted.The City is waiting for the Village Corporation to transfer the 1280 acres that will become the City's land site.Until this transfer is completed,the location of new landfill site cannot be determined. RUBA Activity This Quarter Nome RUBA staff worked with utility and city staff on a range of issues,including but not limited to drafting ordinances and assisting with legal research.In April 2011,the utility clerk attended and completed a 32-hour Financial Management for Rural Utilities class sponsored by the RUBA Program. On June 10,2011,Nome RUBA staff completed an onsite RUBA assessment of management capacity indicators for the City of White Mountain at their request.The assessment is a condition for receiving a project grant sponsored by the Alaska Native Tribal Health Consortium (ANTHC).The project will repair and replace outdated pipes,a distribution pump,and a boiler at the water treatment plant.The project is expected to begin next summer.A second project is expected to be sponsored by the Norton Sound Economic Development Corporation (NSEDC).The city council passed a resolution supporting the City of White Mountain utilities application for funding through NSEDC's Community EnergyFundgrantmoney.This grant aims at improving the energy efficiency of the electric power generationsystembyupgrading,overhauling and replacing the generator engines. -119- April -May -June 2011 au Quarter SFY11 -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.hbKXOOOOOThe utility has on hand a year's adequate fuel supply or it has financial plan to purchase an adequate supply.&(C1 The utility is receiving revenues (user fees or other sources)sufficient to cover operating expenses.: Sustainable Indicators , &(1 The utility is receiving revenues (user fees or other sources)sufficient to cover operating expenses and Repair &Replacement (R&R)costs.&(1 YTDrevenues are at a level equal to or above those budgeted. &©YTDexpenditures 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: In the last two years,the utility staff managed to operate the utility with noteworthy surpluses.In these - years,both the city and the utility had balanced budgets.The utility adopted its FY12 budget by the deadline.The utility's budget is included in the overall city budget.Both budgets include utility department revenues and expenses.The utility does not have a capital replacement fund;staff is considering setting up a savings account for this purpose.The city council has adopted budget amendments to respond to financial changes throughout the budget year.RUBA staff reviewed three months of monthly financial reports.They included a balance sheet as well as year-to-date totals by department and according to budgeted versus actual statements.The utility clerk has kept excellent financial reports.The regular meeting minutes show that the city council is aware of the financial standing of the utility and the financial decisions made by the city council have been based on the financial reports provided by the utility clerk.The collaboration between the city staff and the utility staff has resulted in the preparation of realistic,accurate and responsible budgets. -120- April -May -June 2011 4h Quarter SFYI1 -RUBA Report Accounting Systems Essential Indicators Yes KKKMewNo OOOOOOOThe utility has adopted a collection policy and actively follows it. The utility bills customers on a regular basis. An accounts receivable system is in place which track customers and reports past due accounts and amounts. An accounts payable system is in place. The payroll system correctly calculates payroll and keeps records A cash receipt system is in place that records incoming money and what it was for. The Utility has a cash disbursement system that records how money was spent. Sustainable Indicators X O)Achart of accounts is used that identifies categories in a reasonable,usable manner.&(2 Monthly bank reconciliation's have been completed for all utility accounts.pi L]The utility has a purchasing system that requires approval prior to purchase,and the approval process compares proposed purchases to budgeted amounts. Accounting Comments: The utility has adopted a collection policy which is included in the utility ordinance.This quarter,the utility clerk drafted an amendment to address theft of services.The amendment has been presented to the city council and is in the process of being reviewed.In the last several years,the city has taken delinquent customers to courts,but to date,the efforts have not resulted in successful collections due to the court process being lengthy and ineffective.Most of delinquent accounts go back to the late 1990s and early 2000s.The utility has billed its customers regularly and the collection rate is reflected in the budget surpluses.The utility clerk has an excellent knowledge of QuickBooks Pro.The utility clerk - makes comprehensive monthly financial reports.Customer invoices and payments are entered into the accounts receivable as soon as received.According to the most recent accounts payable report (May 2011),none of the accounts payable are more than 30 days past due. Tax Problems Essential Indicators Yes No xX O x O x CO KX Oo 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: As of June 20,2011,the Internal Revenue Service (IRS)reported that the utility is current in making federal tax deposits and reports.The utility is compliant with Employment Security Contributions too. All tax reports and electronic deposits are completed using QuickBooks Pro. -121- April -May -June 2011 4"Quarter SFY11 -RUBA Report Personnel System Essential Indicators Yes No ™(1)The utility has a posted workers compensation insurance policy in effect. Sustainable Indicators XX (J 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 ApplicationandLetterofAcceptance. The utility has a probationary period for new hires that includes orientation,job- training/oversight,and evaluations.&(1 The utility provides training opportunities to staff as needed and available.%OWWWOWOOOPersonnel System Comments: The utility has general liability and workers'compensation coverage.The workers compensation insurance is purchased through Alaska Municipal League Joint Insurance Association and valid until July 1,2011.The Notice of Insurance was posted in plain view in the city office.According to utility staff,a new insurance will be purchased for the FY 12.The city has a very comprehensive personnel policy.The city personnel system is designed to ensure that employment with the city and its public utilities is in accordance with the code of ordinances.Recruitment,selection,advancement,and retention of employees are based upon merit.The utility has personnel folders on every employee but none of them have a Form I-9,The utility clerk reported that people in rural Alaska cannot obtain identification documents,such as a social security card,driver license or passport,because of high cost associated with travel to cities where such documents could be obtained.In addition,in absence of any such documents,people simply are not able to even start the process of getting any kind of identification card.To comply with the Form I-9,employees need to provide such documents.In the past,RUBA staff recommended the utility update its written job description for all positions.The utility clerk made the necessary updates and asked the city council to review and adopt the new job descriptions.The utility clerk attends and takes classes to improve on her work performance. 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.RHANXXHAWOOOOOOOSustainable Indicators {(C1 The utility has adopted an organizational chart that reflects the current structure. &)(1 The policy making body meets as required. &CL)The utility complies with the open meeting act for all meetings. -122- April -May -June 2011 ;4"Quarter SFY11 -RUBA Report Organizational Management Comments: The regular meeting minutes indicate that the city council is involved in every aspect of the utility's business.The city council receives monthly status reports on the operation and financial management of the utility,as evidenced in the meeting minutes reviewed by RUBA staff.These minutes show that financial and public works reports are regularly provided to and reviewed by the council and ordinances and resolutions amending utility policy are adopted as necessary.According to the last three months of regular meeting minutes,the utility clerk has participated in each council meeting and reported to the city council verbally and in writing on the financial,operational and managerial status of the utility. Operation of Utility Essential Indicators Yes No {J (1 The utility operator(s)are actively working towards necessary certification.(1 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.haOONXKHWORWOOOOOf}Operation of Utility Comments: The operators certification did not meet the Class |requirements of the State of Alaska's Department of Environmental Conservation,Division of Water for their treatment system.Adequate and timely actions have been taken by the utility to move toward the process of certification.The operator is in the process of obtaining a medical report and a medical recommendation which will allow his participation in an alternative examination method.The utility operators consult with the utility clerk on a regular basis and provide verbal status reports;the utility clerk reports to the city council each month.There are daily and monthly written reports kept by the operator.The reports include water treatment and consumption information and fuel consumption figures.The operator reported that the utility is operating at the proposed level of service and has not suffered any major problems or outages due to management issues.The utility is not listed on the Environmental Protection Agency's Significant Non-Compliance (SNC)list.Consumer Confidence Reports (CCRs)completed and distributed as required by the Safe Drinking Water Act and state regulations.RUBA staff found a few deficiencies.During the onsite RUBA assessment,Nome RUBA staff observed that the utility did not have a repair and maintenance handbook,a safety handbook,an inventory control list or a critical spare parts list at the facility.Both handbooks were in the office of the utility clerk.RUBA staff advised the utility clerk to make copies of the manuals and keep those copies at the facility. -123- April -May -June 2011 4"Quarter SFY11 -RUBA Report RUBA Activities For The Coming Quarter The City of White Mountain can work to improve Sustainable Indicators in the areas of Personnel System,and Operation of Utility.RUBA staff is available to provide assistance for any sustainable capacity indicators that are not being met. -124- April -May -June 2011 4"Quarter SFY11 -RUBA Report Technical Assistance Provided Alatna Jeremy Johnson,LGS/RUBA,Fairbanks Regional Office A site visit was made on June 7-8,2011 to assist the administrator with various RUBA related issues. Assistance was provided in completing paperwork to become eligible for Power Cost Equalization. The tribe is listed as a commercial facility,not a public facility,and the electric bills are high,partly due to attempts to thaw the frozen water line.RUBA staff also helped the administrator fill out the paperwork for Community Revenue Sharing funding.The June site visit,the first in many years,may develop into more requests for assistance. Allakaket Jeremy Johnson,LGS/RUBA,Fairbanks Regional Office Fairbanks RUBA staff and a State of Alaska QuickBooks contractor traveled to Allakaket June 8-10 to provide accounting training and assistance.During the visit,FY11 bank accounts were reconciled,the Chart of Accounts was revised,the Balance Sheet was corrected,the Profit and Loss was re- categorized and errors were fixed,the 941 Federal and ESC State taxes were paid and reports were filed.Payroll liabilities were also reconciled and Excel invoices were created for the few business customers.The city's QuickBooks accounting system was streamlined so that future accounting will be effective and reports meaningful. Ambler Margaret Hansen,LGS/RUBA,Kotzebue Regional Office On May 4,2011,Kotzebue RUBA staff traveled to Ambler to provide onsite training and assistance to the new city clerk and city administrator on budgeting,qualifying for the Community Revenue Sharing program and reviewing their election ordinance.RUBA staff assisted with completing bank reconciliations,a certified financial report for year ending June 30,2010,and a draft budget.RUBA staff also met with the council to provide training on how to read financial reports,estimating the price per gallon based on a recent purchase of fuel and calculating how much they are spending on their Village Police Officer (VPO)program.The city is spending significantly more on the VPO program than is received in a grant from the Northwest Arctic Borough,which funds the program.RUBA staff recommended a cut back after showing the payroll breakdown of what costs are associated with the gross payroll of the program.RUBA staff will continue to work with the city as requested. Anderson Jeremy Johnson,LGS/RUBA,Fairbanks Regional Office This quarter,RUBA provided assistance to city staff over the phone and in person.Topics included financial report generation and whether a resignation from the mayor also opens up the council seat; the resignation was written for the mayor position and was silent on the council seat.Fairbanks RUBA staff completed an onsite visit on May 24,2011 to meet with the new clerk assistant/bookkeeper. QuickBooks financial training was provided on how to generate reports and which ones will be needed as the wastewater system adds customers.We also completed the State of Alaska Community Revenue Sharing paperwork.Crews are continuing to lay pipe for the system and the first customers are expected to be connected this fall.The State of Alaska QuickBooks contractor is requested to assist the city in setting up customer accounts and training the new city employee.This is tentatively scheduledforAugust.VSW provided two trip reports in May and June to RUBA.Wastewater line construction is continuing this summer. -125- April -May -June 2011 4h Quarter SFYII -RUBA Report Angoon Glen Hamburg,LGS/RUBA,Juneau Regional Office This quarter,RUBA arranged a 24-hour Introduction to QuickBooks class that was attended by Angoon's accounts receivable clerk.RUBA staff also scheduled the city clerk at an upcoming personnel management course,all in an effort to improve the city's financial record keeping capability and management capacity.The city continued to receive assistance drafting ordinances and resolutions and in codifying ordinances that have already been adopted.Additionally,RUBA staff began working to schedule an on-site training in Angoon on municipal acts,though that training will likely take place after the summer fishing season. Buckland Margaret Hansen,LGS/RUBA,Kotzebue Regional Office Nome RUBA staff traveled to Buckland twice this quarter to provide financial management training to the new city administrator and city clerk in order to meet RUBA assessment indicators,complete necessary Community Revenue Sharing documentation,and to draft a utility payment plan and utility policy.RUBA staff also met with the engineer assigned to the community to discuss their RUBA assessment,and what training and assistance the staff needs in order for them to meet their essential indicators. Chignik Lake Barbara Higgins,LGS/RUBA,Dillingham Regional Office On June 15,2010 the village council signed an agreement to transfer management of the water utility over to the Alaska Rural Utility Cooperative (ARUC).ANTHC has scheduled a septic tank replacement project for this summer construction season.Eighteen septic tanks have been scheduled for replacement and are in route to the community.The water treatment plant lost funding for the project and now there are not enough dollars to do the project.ANTHC will have to start the funding process again to regain funding for this project.Water service lines also need replacement.There currently are five HUD homes that need water/waterwater service and the homes have been set for occupancy in the fall.This quarter deregulation of the electric utility was certified by RCA.In December 2010,Chignik Lake Electric Company requested Dillingham RUBA staff assist:the company to regain power cost equalization (PCE)status with the Alaska Energy Authority (AEA). Part of the work included filing annual reports to the Regulatory Commission of Alaska.RUBA staff researched the utility's certificate of convenience and found the annual reports being required by the utility were for a regulated utility.Alaska Statues set forth a procedural requirement,that requires an election of the customers to achieve deregulation.An order certifying the election results by the commission has been received.The order states that the Chignik Lake Electric Utility shall be deregulated.What this means to the utility is that a regulated utility must get prior approval from the RCA in order to change its rates and policies.The Alaska Statues provide a mechanism whereby customers of a power company may vote to become exempt from regulation.Whena utility is exempt from regulation,the local governing body can decide on electric rates and policy changes without approval of the RCA.A more simplified bookkeeping system can be used than when regulated, reducing the burden-of higher reporting requirements.Work is now underway to bring the utility back into compliance with the power cost equalization program with reporting.The utility is undergoing a complete revamping of its management and operational practices. -126- April -May -June 2011 4 Quarter SFY11 -RUBA Report Deering Georgianna Phillips,LGS/RUBA,Kotzebue Regional Office Kotzebue RUBA staff and a RUBA QuickBooks contractor traveled to Deering May 16-18 to provide onsite assistance with QuickBooks accounting problems and an update of the city's code of ordinances. While the QuickBooks contractor and city staff began the task of bank reconciliation,RUBA staff searched through council minutes for adopted ordinances that affected the Deering code book.RUBA staff was able to find a copy of the code book with which to work and inquired if they were able to recover any ordinances from a previous computer;city staff was unable to do so.Materials were gathered for updates to the code from minutes and ordinances and resolutions of the council were noted and filed in proper order.RUBA staff also organized and implemented current fiscal year files and organized the work flow for accounts receivable.The QuickBooks contractor stressed the importance of copying the checks before depositing them in order to verify amounts when reconciling bank statements.RUBA staff demonstrated the updated filing system with city staff and will continue to assist with the city code updates.RUBA assistance,following the onsite visit,consisted of working with the administrator on the budget process and time frame a review of the sales tax receivables and drafting a sample resolution for a legislative grant to purchase heavy equipment for the city.Kotzebue RUBA staff also provided assistance to the community on several deficient RUBA essential indicators. Holy Cross Fred Broerman,LGS/RUBA,Bethel Regional Office The community enrolled in Alaska Native Tribal Health Consortium's (ANTHC)billing assistance program in April 2010 and turned over the management and operations of its water and sewer facility to Alaska Rural Utility Collaborative (ARUC)on May 12,2011.Even though the City of Holy Cross became a member of ARUC in May 2011,it is.not in RUBA compliance since it is listed on the March-April 2011 LIEN WATCH:A Review of Small Community Liens for over $45,000 in delinquent IRS 941 taxes for 2008 and 2009.Also,a June 17,2011 email correspondence from the Alaska Department of Labor's Anchorage office indicates that the City of Holy Cross is non-compliant on its Employment Security Taxes.From May 11-13,2011 Bethel RUBA staff visited Holy Cross to assist their new city administrator/clerk and council members in applying for FY 2011 Community Revenue Sharing (CRS)and Payment in Lieu of Taxes (PILT)grants as well as FY 2009 PILT funds not yet received.After reviewing city financial documents,Bethel staff attended a special council meeting on May 11,2011 to brief and advise city leaders about what needs to be done in securing state grants.During the meeting,the council passed its FY 2009 PILT resolution.These PILT funds ($41,393)are needed by the city to pay towards the significant delinquent federal and state taxes that it owes.Bethel staff advised new council members to hire a person from the community who had been_the long-time city clerk to mentor the new administrator/clerk and work with her in reconstructing the city's finances from FY 2010 and FY2011 so the city could complete the application materials needed for FY 2011 and FY 2012 PILT and CRS grants.The council took action and approved the suggestion and expressed interest in having RUBA staff visit the community again in the near future for continued advice and direction.RUBA staff spent the following day securing financial documents and setting the new administrator/clerk up with tasks that would help her get the city's finances back into order.The new administrator/clerk,is currently only working four hours a day,five days a week.However,the work that will be required to the get the city back up and running after two years of neglect,even with ARUC managing the city's water and sewer utility,will require more than one part-time administrative employee. -127- April -May -June 2011 . 4"Quarter SFY11 -RUBA Report Kasigluk Eli Jacobson,LGS/RUBA,Bethel Regional Office On May 9,a copy of Kasigluk's adopted collection policy with meeting minutes was received by the Bethel RUBA office which met criteria for essential indicators in the area of accounting systems and organizational management.On June 2,2011,RUBA staff traveled to Kasigluk.The administrator had requested onsite assistance to teach the newly hired tribal bookkeeper about budgets and monthly financial reports.RUBA staff brought two copies of the budget manual produced by Department of Commerce,Community,and Economic Development,and went through it completely with the bookkeeper.Also provided was a budget example from another community,which was compared to Kasigluk's budget.RUBA staff reviewed monthly report formats and provided examples.The bookkeeper compared the current Kasigluk budget with the examples given and developed a plan tocreateanewcitybudgetandmonthlyreports.RUBA staff then met with the administrator and assisted with paperwork necessary to receive Community Revenue Sharing funds and an Alaska Energy Authority fuel loan,both of which support operation of the utility.While onsite,RUBA staff observed that new water and sewer lines were being hooked up to houses;ANTHC is connecting water/wastewater lines to 70 or 80 houses. Kiana Georgianna Phillips,LGS/RUBA,Kotzebue Regional Office RUBA staff traveled to Kiana May 9,2011,to provide training to the newly appointed city clerk on systematic filing of documents and ensuring safe storage,updating the sales tax files,letters for issuance of certificates and compiling and verifying current businesses registered with the state and the city.RUBA staff assisted the administrator with a resolution regarding alift station glycol leak and anordinancetodevelopacitylibrarydivision.RUBA staff also assisted with the finance officer on line item amendments and suggested that an explanation be given for amendments to the budget. Kobuk : Margaret Hansen,LGS/RUBA,Kotzebue Regional Office On June 1,Kotzebue RUBA staff traveled to Kobuk to provide budget and financial reporting training to the acting city administrator and utility clerk.Profit and loss statements and payroll summaries were gathered to assist in preparing the monthly financial reports needed for a new budget.RUBA staff assisted in completing six months of financial reports,as well as the first quarter Alaska Department of Labor report that had not been filed.RUBA staff assisted the clerk in recording cash receipt journals for the months of March,April and May;it was found that a temporary worker had lumped all revenue under a miscellaneous category in the QuickBooks accounting system.RUBA staff then worked with the administrator to complete payroll estimates for the new budget and the annual Regulatory Commission of Alaska report necessary for collecting PCE for the city's electric utility.RUBA staff reviewed the annual report financials with the administrator,showing her how creating a worksheet can make gathering the information for the report much easier.Also during the quarter,RUBA staff staff assisted with a personnel issue,referring city council to their personnel policy and agreement with AMLJIA regarding termination.RUBA staff also assisted with quarterly tax reports and equipment rental agreement. -128- April -May -June 2011 4"Quarter SFY11 -RUBA Report Mekoryuk Fred Broerman,LGS/RUBA,Bethel Regional Office Bethel RUBA staff contacted the city by email multiple times from July 2010 to June 2011 requesting documents needed for verification of RUBA essential indicators.At the time of this writing,the city has not provided the Bethel RUBA office with items requested.Therefore,the city is no longer in compliance for several essential indicators until documents needed for verification can be provided. Bethel RUBA staff visited Mekoryuk twice during the fourth quarter of 2011.From April 11-15,2011, RUBA staff assisted with preparing a financial report for a council meeting which focused on reviewing the city's financial situation.Bethel RUBA staff reviewed several versions of the city profit and loss statements.It was decided to create an Excel spread sheet that would present the city's financial data from the beginning of FY11 in an easy to understand format.The final spreadsheet included financial data for each month of the year,a detailed accounting of each department's expenditures,and a comparison of revenues with expenditures for a comprehensive bottom line for each month and year to date.At an April 14,2011 council meeting,RUBA staff pointed out the report's features and explained where comparisons could be made.The report served as a segue to explain some of the 'best business practices'that the RUBA program promotes and to suggest that the council request an assessment in the near future.The financial report was well received and the council unanimously agreed to have a RUBA assessment conducted.From June 6-8,2011 Bethel staff assisted the city in applying for FY12 Payment in Lieu of Taxes (PILT)and Community Revenue Sharing funds.This was the first time the city's new administrator had applied for these funds.Because several of the council members were relatively new to city government,Bethel staff was given opportunity to explain PILT and Certified Financial Statement resolutions and the budget ordinance process. Newtok ; Sandra Modigh,LGS/RUBA,Bethel Regional Office On June 3,2011,the tribe was sent a request for documents required for RUBA quarterly updates. There has been no response from the tribe regarding this request.The tribe did not submit a signed IRS Request for Information Form to RUBA staff to verify IRS tax compliance.As of June 28,2011,the community was not on Significant Non-Complier (SNC)list or the Lien Watch report for this quarter. A phone call to Liberty Northwest verified that the tribe's workers compensation coverage is current through June 30,2012.Bethel RUBA staff traveled to Newtok June 9 for a community meeting.The meeting was a combined effort by VSW,ANTHC,YKHC,and the Newtok Traditional Council to discuss honey bucket safety and disposal options.WSW and ANTHC have Indian Health Services (IHS)and Environmental Protection Agency (EPA)awarded grant funds for community sanitation projects/upgrades and were seeking direction from the council and community members on how the funds should be spent.ANTHC and the Newtok Traditional Council discussed their current project of establishing a honey bucket collection service to help minimize exposure to waste and provide a designated area for honey bucket dumping.The IHS funds,originally allocated in 2001,were placed on hold awaiting the community's relocation from Newtok to Mertarvik (located on Nelson Island). Due to the lengthy planning stages of the relocation,IHS has decided to release the funds so they could be used at the community's current location;however,they must be spent by the end of calendar year 2011.VSW presented four honey bucket disposal alternatives and although there was no official action taken,it was the general consensus to use funds from the IHS/VSW grant and the EPA/ANTHC grant in for;1)establishing a community honey bucket collection service;2)allocating $200,000 to water treatment plant upgrades and improvements;and 3)purchasing 5-7 water storage tanks.On June 15, RUBA staff received a phone call from the Newtok IGAP coordinator requesting assistance in drafting a sanitation ordinance.The Newtok Traditional Council is implementing a honey bucket hauling service to begin this summer,with initial start-up and equipment costs provided through grant funding. The grant funds are contingent on the tribe adopting an ordinance setting user rates designed to collect sufficient revenues from customers to cover costs of service.RUBA staff drafted the ordinance as requested and forwarded it to the tribal IGAP coordinator and traditional council for review. -129- April -May -June 2011 4"Quarter SFY11 -RUBA Report Platinum Barbara Higgins,LGS/RUBA,Dillingham Regional Office RUBA staff provided assistance to the traditional council this month in procuring several complete computer and wireless internet systems for the traditional office.Contact with the traditional office has been very sporadic and challenging due to the very old and outdated equipment currently in use.In the next quarter,RUBA staff travel to the community to assist with setting up the computers and bringing on-line the accounting system that has not been updated since 2007.Even through the challenges of phone lines,fax machines not working and no internet,traditional staff has stayed in contact with RUBA staff,however,them have not been able to fax information to the RUBA office for this quarterly report.Village Safe Water (VSW)had awarded the Platinum Traditional Council a grant for the design and construction of water and wastewater improvements.Funding remains in place to complete project design work;however the traditional council has been told that because of delays in meeting funding conditions (RUBA essential indicators),construction funds have been reallocated at this time.Platinum was granted an extension to re-apply for construction funds until December 2010, after which time funding was no longer available.Platinum will have access to some funds for purchase of a pumper truck when they meet essential indicators. Shageluk Fred Broerman,LGS/RUBA,Bethel Regional Office Bethel RUBA staff visited Shageluk from May 9-11,2011 to assist the mayor with preparing their FY12 budget and other documentation required for Community Revenue Sharing (CRS)and Payment in Lieu of Taxes (PILT)funds.Bethel staff was called for assistance because neither the mayor nor the new administrator had experience preparing a budget and they wanted to ensure that their FY12 budget would conform to RUBA compliance standards.Bethel staff spent a day and a half working with the mayor reviewing previous years'budgets and making projections for FY12.Work focused on restructuring the budget to break out expenditures departments and enterprises such as salary,payroll taxes,fuel oil,electric and supplies costs for each of the city's (administrative,council,washeteria, water and sewer,electric utility,clinic and post office).Now council members are able to see overhead costs and the bottom line for each.For example,prior to restructuring the budget,neither the mayor nor the administrator was aware that the washeteria was running at an annual deficit of $43,000.Nor were they aware the $4,800 the city was receiving annually from the US Postal Service for rental of the post office building wasn't even paying half of the $9,657 in annual heating oil costs the city was providing for the building.Bethel RUBA staff has been in touch with a US Postal Service Real Estate Specialist in Denver,Colorado and is working with the city to resolve this issue.The City of Shageluk only has two essential indicators that are not compliant;both dealing with not having a certified trained water plant operator.The city's long term water plant operator recently moved to another community so the city is in need of a certified operator.A new water plant operator was hired on February 8,2011 and will travel for training and certification in October 2011. -130-