Quarterly Report: 2012, October - December (Q2), Deering

Community:
Deering 
Staff:
Georgianna Phillips  
DCRA Regional Office:
 
Gov't Type:
Second Class City 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
City of Deering 
Population:
133  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
1/31/2012 
Community Sanitation Overview:
The City of Deering operates the piped sewer and water haul system, as well as a central washeteria. The City Council is the policy making body for the utility. Water is derived from the Inmachuk River; it is treated and pumped to a 400,000-gallon insulated storage tank. Residents pay to have water delivered to their homes. The city has purchased additional equipment to facilitate the delivery of water in an efficient manner. The sewage system is a vacuum system that is piped to a lagoon. The water treatment plant, and sewage collection lines have been upgraded and are completed. The existing infiltration gallery has also been upgraded and these improvements support the existing water haul and vacuum sewer system. An additional water storage tank was installed in 2006 and lines upgraded from the tanks to the water treatment plant. The transmission line has some warranty items to completed in the near future. The City has a current DEC permit for the sewage lagoon. DEC has requested updates to reflect design changes made during construction. For future installation of water and sewer upgrades a feasibility study has been ongoing and is approximately 75% complete. VSW is also concerned with the appearance of a cave-in in the Sewage Lagoon and will look at the study for recommendations.  
RUBA Status & Activities This Qtr:
RUBA staff has continued to work with the administrator on QuickBooks entries. The administrator has compeleted reconcilation of the bank statements. Training and assistance is still needed to accurately enter other financials and the correction of. RUBA staff has made noted corrections to the financial reports provided but the administrator is the only person in the office and also helps in other areas of city business when needed for lack of personnel. The city owned electric company is behind in reporting its PCE reports for FY10 and FY11. RUBA staff has offered to assist the city in completion of those reports. The Ipnatchiaq Electric board met and the administrator was directed by the board to complete the reports due for the citizens to receive the pce credits. The chair of the board will closely monitor the progress and if the administrator is having any difficulties will notify RUBA staff for assistance in completion of the reports.  
RUBA Activities for the Coming Qtr:
RUBA staff is assisting the administrator with facilitating the electric company to complete two (2) years FY10 and FY11 PCE reports. RUBA staff will continue working with the administrator on making adjustments to the city financials. RUBA staff will also work with the city administrator in completing an update of their assessment.
Scores:
 
Essential Indicators:
25 of 27
Sustainable Indicators:
23 of 27
Total Score:
48 of 54

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
No 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.
Yes YTD expenditures are at a level equal to or below those budgeted.
Yes A monthly manager's report is prepared.
No Budget amendments are completed and adopted as necessary.
Finances Comments
The city is currently in assisted billing with ARUC. The administrator is working on correcting QuickBook entries and is signing up for QuickBooks training to be held in Februay 2012. The administrator is able to report what the balance in the bank is and what bills are due, and is working towards correcting QuickBooks entries.

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 utility has adopted a collection policy through ARUC/ANTHC as they are currently on Assisted billing for their sewer and do notifiy customers of past due bills. Disconnection notices are being sent to the customers. The City is on assisted billing with ARUC/ANTHC. The administrator and council are not yet convinced that joining ARUC would be what the city needs at this time. The customers are billed for water on a regular basis by using quickbooks. Currently ARUC bills for the Sewer Utility and the City does the Water and Garbage. Since the City makes deliveries by the gallon no method of billing has been worked out that would correctly bill the customers. The city uses quickbooks for accounts payable, payroll, cash receipts and cash disbursement that records incoming money and how it was spent. They use their budget as the chart of accounts reconciling their transactions monthly. The city has an purchasing system that require approval prior to purchase to budgeted amounts.

Tax Problems

Essential Indicators
Answer Question
Yes The utility has a system to accurately calculate, track, and report payroll tax liabilities.
Yes The utility is current on filing tax reports.
Yes The utility is current on making tax deposits.
No 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
The city utilizes quickbooks to accurately calculate, track and report payroll tax liabilities. Per completed tax authorization form, they are current in filing tax reports, making deposits and have no lien at this time.

Personnel System

Essential Indicators
Answer Question
Yes The utility has a posted workers compensation insurance policy in effect.
Sustainable Indicators
Answer Question
Yes The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML or Commerce for topics and language.
Yes 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.
Yes The utility has an adequate written hiring process.
Yes 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
The city has renewed its insurance. The city has adopted a personnel policy that has been reviewed by AML, along with adequate job descriptions. The policies have an adequate hiring process and a probationary period for new hires that includes orientation and job training but no known evaluations were found on file as well as letter of acceptance. Currently the City employees an Administrator and Water Treatment Plant operators.

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.
No 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
Yes The utility has adopted an organizational chart that reflects the current structure.
No The policy making body meets as required.
Yes The utility complies with the open meeting act for all meetings.
Organizational Management Comments
The city council is the known entity who oversees the utility who adopted ordinances to give it authority with an organizational chart that reflects the current structure. When they meet, they comply with the open meetings act which includes posting the meeting notices at three public places at least five days in advance. Many of the councilmembers also serve on other boards throughout the region and it is at times difficult to have a quorum at certain times of the year. The city has hired a two new operators, both of whom have previously been employed for the city. Both will attend training/certification as soon as a class is offered.

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.
Yes 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.
Yes The utility maintains an inventory control list.
Yes The utility maintains a critical spare parts list.
Operation of Utility Comments
The City of Deering is on the October 2011 SNC list for high DBP's. VSW is studying the source water in preparation for designing a new treatment system. The administrator spot checks the employees and facility to ensure that maintenance/work is being completed. The administrator receives a report from the operator who assures that his inventory and critical spare parts list is maintained. The city has a safety manual and the administrator discusses with the operator any safety issues that may have arisen.