Quarterly Report: 2014, April - June (Q4), Eek

Community:
Eek 
Staff:
Eli Jacobson  
DCRA Regional Office:
Bethel regional office 
Gov't Type:
Second Class City 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
City of Eek 
Population:
356 2013 DCCED Certified Estimate 
Assessment Status:
Assessment Completed 
Assessment Date:
1/21/2014 
Exp Date:
11/29/2012 
Last Updated:
7/1/2014 
Community Sanitation Overview:
The City of Eek operates a water treatment plant with a community watering point, washeteria, wastewater removal service, and water/wastewater lines to the school and health clinic. Water is derived from the Eek River. The treatment plant is the city's sole source of potable water for its 356 residents. The water is filtered, treated, and stored in a holding tank by the water treatment plant/washeteria.  
RUBA Status & Activities This Qtr:
On June 19, 2014 a request for authorization to collect federal tax information was sent to the City of Eek. Up to this writing the requested information has not been received. Therefore federal tax information cannot be verified.  
RUBA Activities for the Coming Qtr:
RUBA staff will continue to provide assistance as requested.
Scores:
 
Essential Indicators:
24 of 26
Sustainable Indicators:
17 of 27
Total Score:
41 of 53

Finances

Essential Indicators
Answer Question
Yes All revenues and expenses for the utility are listed in the utility budget.
Yes The utility has adopted a balanced realistic budget.
Yes Monthly financial reports are prepared and submitted to the policy making board.
Yes The utility is current in paying all water/wastewater electric bills.
Yes The utility has on hand a year's adequate fuel supply or it has a financial plan to purchase an adequate supply.
Yes The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses.
Sustainable Indicators
Answer Question
Yes The utility is receiving revenues (user fees or other sources sufficient to cover operating expenses and Repair & Replacement (R) costs.
Yes YTD revenues are at a level equal to or above those budgeted.
No YTD expenditures are at a level equal to or below those budgeted.
No A monthly manager's report is prepared.
Yes Budget amendments are completed and adopted as necessary.
Finances Comments
The City of Eek has a FY14 budget that was adopted on May 30, 2013 with non-code ordinance 13-02. The utility revenue is $130,000 and the expenditures are $131,500. However, the overall city budget revenue is $461,892 with expenditures only equaling $461,335. Therefore, with subsidization from the city budget, the utility budget is balanced and realistic. Monthly financial reports are submitted to the governing body and the meeting minutes reflect this. On February 6, 2014, Alaska Village Electric Cooperative communicated that the City of Eek is current on electric bills. The clerk said that in fall 2013, the city received 9,000 gallons of heating fuel and this gives the utility a one-year supply. The city has a repair and replacement fund established. Year-to-date revenues are above budget. Year-to-date expenditures are above budget. The policy making body meets the second Thursday of each month and budget amendments are adopted as necessary.

Accounting Systems

Essential Indicators
Answer Question
Yes The utility has adopted a collection policy and actively follows it.
Yes The utility bills customers on a regular basis.
Yes An accounts receivable system is in place which tracks customers and reports past due accounts and amounts.
Yes An accounts payable system is in place.
Yes The payroll system correctly calculates payroll and keeps records.
Yes A cash receipt system is in place that records incoming money and how it was spent.
Yes The utility has a cash disbursement system that records how money was spent.
Sustainable Indicators
Answer Question
Yes A chart of accounts is used that identifies categories in a reasonable, usable manner.
Yes Monthly bank reconciliations have been completed for all utility accounts.
Yes The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts.
Accounting Systems Comments
The City of Eek has a memorandum of agreement with the school and health clinic. Billing statements are sent to the school and the clinic. All other services are prepaid. An Excel spreadsheet is used to track customer accounts and how much money is being paid to each vendor monthly. QuickBooks is used for payroll. All incoming and outgoing money is recorded on ledgers. The city’s chart of accounts is in QuickBooks. The city clerk reconciles the bank accounts monthly. The city clerk can approve purchase of general office supplies up to $100. Purchases above $100 require council approval.

Tax Problems

Essential Indicators
Answer Question
Yes The utility has a system to accurately calculate, track, and report payroll tax liabilities.
No The utility is current on filing tax reports.
No The utility is current on making tax deposits.
N/A If there are any past due tax liabilities or recorded tax liens, a lien release has been issued or a repayment agreement has been signed and repayments are current.
Tax Problems Comments
On June 19, 2014 a request for authorization to collect federal tax information was sent to the City of Eek. Up to this writing the requested information has not been received. Therefore federal tax information cannot be verified. On February 7, 2014, the state Department of Labor and Workforce Development verified that the City of Eek is current on their Employment Security Contributions account. The City of Eek is not in the Lien Watch report dated March-April 2014.

Personnel System

Essential Indicators
Answer Question
Yes The utility has a posted workers compensation insurance policy in effect.
Sustainable Indicators
Answer Question
No The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML or Commerce for topics and language.
No The utility has adequate written job descriptions for all positions.
No The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation.
No The utility has an adequate written hiring process.
No The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance.
Yes The utility has a probationary period for new hires that includes orientation, job training/oversight, and evaluations.
Yes The utility provides training opportunities to staff as needed and available.
Personnel System Comments
Eek’s workers’ compensation insurance is through the Alaska Municipal League Joint Insurance Association for the period from July 1, 2013 through July 1, 2014. A personnel policy has not been adopted. The utility does not have written job descriptions for all positions. The utility does not have an adopted written evaluation process or a written hiring process. The city does not have personnel folders for all employees. Personnel folders that were provided do not include I-9s, job applications, and letters of acceptance for every employee. The utility has a 90-day probationary period with an evaluation at the end, however, these are not written policies. On-the-job training and additional training opportunities are provided as necessary. Staff are encouraged to pursue further training opportunities.

Organizational Management

Essential Indicators
Answer Question
Yes The entity that owns the utility is known; the entity that will operate the utility is set.
Yes The policy making body is active in policy making of the utility.
Yes The policy making body enforces utility policy.
Yes The utility has an adequately trained manager.
Yes The utility has an adequately trained bookkeeper.
Yes The utility has an adequately trained operator or operators.
Yes The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate.
Sustainable Indicators
Answer Question
No The utility has adopted an organizational chart that reflects the current structure.
Yes The policy making body meets as required.
Yes The utility complies with the open meeting act for all meetings.
Organizational Management Comments
The City of Eek owns the utility and the city council is the policy making body. The city has a memorandum of agreement with the school and health clinic. The agreement provides for monthly utility billing. All other city utility services are prepaid. The city clerk has performed managerial and bookkeeping duties for the last eighteen years. The operator has ten year’s experience and is scheduled for more training. The utility does not have an organizational chart. The policy making body meets the second Thursday of each month. The city clerk posts meeting notices in three public places, five days in advance.

Operation of Utility

Essential Indicators
Answer Question
Yes The utility operator(s) are actively working towards necessary certification.
Yes The utility has a preventative maintenance plan developed for the existing sanitation facilities.
Sustainable Indicators
Answer Question
Yes 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.
No The utility has a safety manual and holds safety meetings.
Yes Utility facilities have not suffered any major problems/outages due to management issues that are unresolved.
Yes The utility is operating at the level of service that was proposed.
Yes The operator provides status reports to the manager on a routine basis.
Yes The utility has completed and distributed its "Consumer Confidence Report".
Yes The utility is not on the "Significant Non-Complier" (SNC) list.
No The utility maintains an inventory control list.
Yes The utility maintains a critical spare parts list.
Operation of Utility Comments
The operator’s certifications have expired. However, the operator is scheduled for training in April 2014. The city routinely sends the operator to training. The utility has a written preventative maintenance plan located in the plant on the operator’s desk. The plan has a daily, weekly, and monthly check list for the operator to complete. The operator is in regular contact with the city clerk and provides regular verbal reports. The verbal monthly operation and maintenance reports are not recorded in the meeting minutes. The utility does not have a safety manual or hold regular safety meetings. The utility is functioning as intended and no major outages have occurred. A Consumer Confidence Report (CCR) has been posted. The city is not on the Significant Non-Complier (SNC) list dated April 2014. The utility has an inventory control and critical spare parts list.