Quarterly Report: 2006, April - June (Q4), Angoon

Community:
Angoon 
Staff:
Lawrence Blood  
DCRA Regional Office:
 
Gov't Type:
Second Class City 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
City of Angoon 
Population:
497  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
7/26/2006 
Community Sanitation Overview:
The City of Angoon operates and manages a piped water and sewer system. The city council is the policy making body for the utility. Surface water is derived from the Tillinghast Lake Reservoir, is treated, and piped throughout the community. The City of Angoon has operated a piped water system since 1977. Greater than 95% of homes have complete plumbing. Piped sewage is processed at a secondary treatment plant that flows to an ocean outfall. On a weekly basis, the City collects and deposits refuse at a municipal landfill located approximately two miles from Angoon. Electricity is provided by the Inside Passage Electric Cooperative (IPEC). Angoon is located in Southeast Alaska on Admiralty Island and is connected via the Alaska Marine Highway System. A feasibility study to examine water and sewer service for a new 62-lot subdivision is underway under the auspices of Alaska Native Tribal Health Consortium (ANTHC). Although the water treatment plant is operating and provides adequate potable water, the City of Angoon is attempting to address numerous community-identified concerns. First, the water source intake pipe is frequently constricted by debris, which has caused the water treatment plant to occasionally cease operations. Second, the wet well is considered too shallow, which is believed to be the cause of pump cavitation, pump burnout, and high operating cost due to staffing and pump replacements. Third, pumping water from Tillinghast Lake Reservoir is believed to create a higher electrical cost. Fourth, the walkway to the water intake location is in need of repair or complete replacement. A gravity fed water supply from Mount Hood is perceived to be a long-term solution to the City's current and future water utility needs. 
RUBA Status & Activities This Qtr:
The latest Assessment of Management Capacity Indicators for Angoon was conducted on 9/27/04. At that time, Angoon met all essential capacity indicators except for not having a workers compensation insurance policy and balanced budget. Since the last formal assessment, Angoon has been in various states of meeting essential indicators. In May 2006, Division of Community Advocacy hired a new southeast region RUBA staff person. No RUBA-related activities occurred in the community this quarter 
RUBA Activities for the Coming Qtr:
RUBA Activities for the coming quarter include: 1) continue to provide support for increasing collection rates and pursuing delinquent water utility accounts; and 2) encourage personnel policy development, implementation, and compliance.
Scores:
 
Essential Indicators:
22 of 24
Sustainable Indicators:
14 of 27
Total Score:
36 of 51

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.
N/A The utility is current in paying all water/wastewater electric bills.
N/A The utility has on hand a year's adequate fuel supply or it has a financial plan to purchase an adequate supply.
No 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.
No 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
A balanced and realistic FY06 budget was adopted on 06/21/05. All revenue and expenses are generally listed in the utility budget. The bookkeeper and accounting clerk prepare and submit monthly financial reports to the policy making body. The utility receives revenues sufficient to cover operating expenses; however, user fees ($20 per month residential) do not completely cover operating costs causing the City of Angoon to subsidize the water utility service with other sources of funding. The City of Angoon is not placing funds in a repair and replacement fund; however, the City is budgeting extra funds for increased water testing. Year-to-date revenues are slightly below those expected; however, expenses are also at a level equal or below those budgeted. A monthly manager's report is not prepared largely because there are only two water utility employees that regularly communicate in-person or via a daily log of activities and concerns. The bookkeeper reports making budget amendments as needed.

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 Angoon has adopted and actively follows a collection policy. Utility bills are regularly distributed on a monthly basis. An accounts receivable system is adopted which documents customer payments and reports past due accounts with corresponding amounts; however, it appears the City inconsistently pursues past due utility accounts. The City is currently using the Peachtree accounting system for their accounts receivable, accounts payable, and payroll. The City uses a manual written receipt system to record incoming funds, which is later entered into Peachtree. The City also uses Peachtree for their cash disbursement system to record the spending of funds. The City has identified a chart of accounts. The bookkeeper completes monthly bank reconciliations. The City uses a purchase order system for all purchases. The City will be converting to QuickBooks software for their accounting needs in the near future. The City has inquired into obtaining staff QuickBooks training from the RUBA Program.

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
The City of Angoon uses Peachtree to calculate, track, and report payroll liabilities. The City is current on filing their tax reports and making tax deposits.

Personnel System

Essential Indicators
Answer Question
No 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.
Yes 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.
No 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 Angoon has dropped workers compensation insurance coverage through the Alaska Municipal League/Joint Insurance Association. They are currently pursuing obtaining workers compensation insurance through other providers. The City of Angoon does not have an adopted personnel policy beyond what is already provided for in the Angoon Municipal Code. The City does not have adequate job descriptions for all municipal positions. Furthermore, the City does not have a formal evaluation process, but the city clerk provides written documentation for disciplinary action. A satisfactory hiring process is documented in the City's codebook. There are personnel folders for every municipal employee, but they do not consistently contain recommended documentation including I-9, job application, and letter of acceptance. The city clerk reports the City does not have a probationary period for new hires that includes systematic orientation, job training/oversight, and evaluations. The City provides training opportunities as needed.

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 Angoon owns and operates the water and sewer system. The city council is the policy making body for the utility and is active in guiding policy. The city council generally enforces utility policy, but has inconsistently supported the pursuit of delinquent accounts as provided for in the City's Municipal Code. On a daily basis, water utility duties are generally split between two staff persons. Typical duties of a utility manager are assigned to a 'water superintendent' who is Level 1 certified with 27 years of water utility experience. The 'water assistant' is an OIT with 17 years of water utility experience. Both the water superintendent and water assistant report considering further training. The bookkeeper has worked for the City for over two years and has no formal training other than extensive on-the-job private sector bookkeeping experience. The City does not have a written organizational chart that reflects the current municipal structure. The city council does meet as required and complies with the Open Meetings Act.

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
No 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 water utility operators have achieved the necessary certification to operate the utility and are actively considering further training. The water superintendent reports a preventative maintenance plan is included in the water utility Operation and Maintenance Manual. Although water utility staff are differentiated into water superintendent and water assistant roles, both appear to be equally responsible for the daily water utility functions. The water superintendent and water assistant communicate in-person and via a daily log of activities and concerns. However, the water superintendent does not receive monthly operation and maintenance reports from the water assistant. The water superintendent does not 'spot check' facilities to verify maintenance items are being completed; however, this task is likely unnecessary due to his daily involvement with the water utility service. The water superintendent reports the utility has a safety manual, but does not conduct safety meetings largely because there are only two water utility employees. The water utility has not suffered any major problems/outages due to unresolved management issues. The water superintendent reports the water utility is operating at the proposed level of service. The water assistant provides status reports to the water superintendent on a routine basis via a daily communication log. The water utility completes and distributes its Community Confidence Report (CCR). The utility is not currently on the Significant Non-Compliance List. The utility does not maintain an inventory control list or a critical spare parts list.