Quarterly Report: 2011, January - March (Q3), False Pass

Community:
False Pass 
Staff:
Brice Eningowuk  
DCRA Regional Office:
 
Gov't Type:
Second Class City 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
City of False Pass 
Population:
39  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
5/4/2011 
Community Sanitation Overview:
City provided services include piped water, electric, refuse collection, landfill, public safety office, volunteer fire, dock, airport (state contract), roads, community hall, youth center, Alaska Rural Communications Service (ARCS) television broadcast support, library, boat haul-out, pet registration, driver licenses, and voter registration. The city also owns and maintains the buildings housing the post office, library, and clinic. Construction of Bering Pacific Seafoods is complete and the first year of operation over. A small boat harbor is near completion. Water is derived from a nearby spring and reservoir and is treated and stored in two 60,000-gallon tanks. Most homes are connected to the piped water system. Over 80% of the homes are fully plumbed. Most residents have individual septic tanks, however many are experiencing leachfield failure. While not currently operating, wastewater from seafood processing flows directly into an outfall line. A community-wide septic system is designed and funding for construction is being sought. 
RUBA Status & Activities This Qtr:
Anchorage RUBA staff traveled to False Pass on January 24-28, 2011 to complete a RUBA management assessment and assist the clerk with completing Power Cost Equalization (PCE) reports. The onsite visit addressed the assessment first with RUBA staff meeting local staff and collecting the required documentation in response to indicator questions. The following day, RUBA staff met with the city clerk to review the utility clerk training material. The clerk has previous relevant experience and had requested the additional training. The clerk and RUBA staff also contacted the PCE program specialist to identify which report forms were necessary. The PCE specialist stated that the forms must be typed instead of submitting them manually. RUBA staff provided the clerk with an Excel spreadsheet and assisted the clerk in entering the data. RUBA staff then met with the water operator to tour the treatment plant. A draft RUBA assessment will be completed and provided to the community within a week for review and comments prior to finalizing the assessment. The finalized RUBA assessment was distributed to the RMW, engineer on record for community and RUBA program manager on 3/9/2011.  
RUBA Activities for the Coming Qtr:
It is recommended that Ensure that all utility revenues and expenses are listed on the utility budget. The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses and repair and Replacement (R/R) costs. The utility has adopted an organizational chart that reflects the current structure. The utility has a safety manual and holds safety meetings. The utility maintains an inventory control list. The utility maintains a critical spare parts list. By implementing the above recommendations, the City of False Pass will put itself into position to better meet unanticipated financial costs and ensure that employees are aware of their conditions of employment.
Scores:
 
Essential Indicators:
25 of 26
Sustainable Indicators:
21 of 27
Total Score:
46 of 53

Finances

Essential Indicators
Answer Question
No 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.
No A monthly manager's report is prepared.
Yes Budget amendments are completed and adopted as necessary.
Finances Comments
The FY11 Budget amendment lists the water utility income at $8,600 and expenses totaling $7,500. Wages are included in the general fund and not the utility budget. The clerk was notified that the wages, taxes, benefits and insurance should be added to the water utility expenses to get a true accounting for the water and operations. A monthly financial report from December 2010 was presented to the council in a meeting on December 22, 2010. The city purchases heating fuel from Peter Pan Seafood on an as needed basis and has a financial plan to purchase additional fuel if needed. The electric utility is run by the city, the clerk does transfer funds to track all expenses for the utility, as the electric utility subsidies the water utility. The city does not have a repair and replacement account yet, but there has been discussion to implement one for the water utility that resembles the harbor repair and replacement account. The YTD revenues from the monthly financial report show that the water utility income is at 82 percent with less than five months remaining in the income cycle. The YTD expenditures from the monthly financial report states that the expenses for the water utility is at 60 percent of the total budget. The manager is also the operator and submits operations reports to the council as documented in the meeting minutes from December 22, 2010.

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 council has adopted Title VI: Utilities and Public Facilities / Equipment, Chapter 36: Water and Sewer in the code of ordinances. This code has a provision for the city to adopt and enforce regulations and provisions pertaining to the water utility. A sample bill to a water and sewer utility customer was received that shows a monthly water and landfill service charge to the customer. The city utilizes QuickBooks 2009 Pro for all financial accounting. The accounts receivable report, dated January 25, 2011 has all the accounts that are owed to the city. There is an issue of reconciliation of past due billings that may or may not have been paid. The clerk has asked the QuickBooks consultants how to enter prepay amounts for the electric utility as there was a time that the previous clerk did not send out bills. The accounts receivable report shows no considerable amount to be paid, except for a forecast of a heavy equipment part that the city is planning to purchase. All cash received is kept in a safe within the city office and deposited to the bank on a weekly basis. The city issues receipts to each customer upon payment. All payroll is done with QuickBooks and the clerk is very knowledgeable with the QuickBooks program. A chart of accounts dated January 25, 2011 has all bank accounts, assets, liabilities, equities, income and expenses listed for the City of False Pass. Monthly bank reconciliations are done with bank statements and QuickBooks; documentation for the December bank reconciliation was received. When purchases are needed that are not listed on the budget, the clerk reviews the budget and gets authorization from the mayor.

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.
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
A report from the IRS Taxpayer Advocate Service has the City of False Pass compliant with tax filing, deposits and has no record of a lien against the city as of January 26, 2011. The state of Alaska Department of Labor deems the city compliant also.

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.
Yes 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 of False Pass is insured by Alaska Municipal League Joint Insurance Association (AMLJIA)for worker's compensation insurance with coverage from July 1, 2010 to July 1, 2011. The employee job descriptions, evaluation process and hiring process are located in FPC 9.75.01-14 Personnel Policies in the code of ordinances. The employee folders are locked in the mayor's office. There is a probationary period of 90 days for new employees/hires. The city offers trainings to employees as needed and if funding is available.

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 entity that owns the utility is the City of False Pass which is documented in Title IV: Utilities and Public Facilities / Equipment in the Code of Ordinances. The policy making body is the City of False Pass City Council as stated in 6.36.08 of the False Pass Code of Ordinances. The city does not have an organizational chart adopted. The city meets every third Tuesday of each month. The city posts meeting notices five days prior to the meeting date with the place, time and type of meeting.

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.
No The utility maintains a critical spare parts list.
Operation of Utility Comments
The current water operator is the manager and has certification in Water Treatment 1. The operator position is in the process of recruitment as the current operator plans to move out of the city in May 2011. There is an Operations and Maintenance Manual submitted by the plant engineering firm in 2004 and kept in the current water treatment plant. The manager is the operator and provides a monthly manager's report on all city facilities. As there are only two employees, the city does not have monthly safety meetings; the clerk was notified that AML/JIA does provide teleconference safety meetings that the city can participate to meet this indicator. The clerk was notified to contact AML/JIA for more information. There have not been any major outages due to management issues in the past three years. A copy of the 2009 CCR was received. The water treatment plant was not listed on the November 2010 SNC list. There are no critical spare parts or inventory lists for the water utility.