Quarterly Report: 2011, October - December (Q2), Hooper Bay

Community:
Hooper Bay 
Staff:
Fred Broerman  
DCRA Regional Office:
 
Gov't Type:
Second Class City 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
City of Hooper Bay 
Population:
1149  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
2/2/2011 
Community Sanitation Overview:
The Hooper Bay Utility Advisory Board advises the city council on utility operations and management. The city operates multiple watering points within the village. Residents haul water from watering points to the city's 200 dwellings for cooking, cleaning and washing needs. Residents also self-haul their garbage and honey buckets to a solid waste site and wastewater lagoon respectively. The new school, teacher housing, new clinic, head start building are connected to the communities new water treatment/washeteria facility. The new water treatment/washeteria facility opened in 2007 and provides 18 washers, 12 dryers, 16 showers and two saunas that residents can use for a nominal charge. The watering point at the old town site is also connected to the new water treatment plant. Twenty homes are scheduled to be connected to the new water treatment facility by the end of FY10. The Traditional Council is pursuing a solid waste management grant to upgrade the existing lagoon. 
RUBA Status & Activities This Qtr:
Bethel RUBA staff traveled to Hooper Bay on July 12-14, 2010. The city had not submitted their FY09 Certified Financial Statement, FY11 Budget, or FY11 Payment in Lieu of Taxes resolution. RUBA assisted the bookkeeper in viewing data and printing certified financial statement (CFS) and budget manual files. RUBA discussed the benefits of providing detailed revenue and expenditure information in formats similar to those provided in the State's CFS and annual budget manuals. RUBA also provided examples of detailed monthly financial reports and explained that financial reports should be listed as agenda items and presented at regular council meetings and documented in meeting minutes. The city's electric bills were reviewed and Alaska Energy Authority (AEA) was contacted to determine if any of the city facilities might be eligible for Power Cost Equalization (PCE) credits. The city is now aware of which facilities are not currently receiving PCE credits and were provided with application forms to submit to AEA for consideration. The city will realize approximately $80,000 per year in adding the water treatment plant and wastewater lift stations to the PCE report. Assistance was provided with preparing their FY11 PILT resolution. The administrator also reviewed the Community Sanitation Overview section of city's RUBA assessment and provided corrections and updates. RUBA staff toured the water treatment plant and took photos of the city's new water treatment facility and washeteria. Before departing, RUBA had the opportunity to visit with former city administrator Rafael Murran who had worked for the city for many years before retiring in June 2010. He gave an overview of his efforts to secure funding and alternate energy sources to cover the long term operating costs of city's new water treatment facility.  
RUBA Activities for the Coming Qtr:
A complete operation and maintenance manual plan is needed for the new washeteria/water treatment plant. An inventory control list, safety manual, and a critical spare parts list need to be included in the OM Manual.
Scores:
 
Essential Indicators:
27 of 27
Sustainable Indicators:
19 of 27
Total Score:
46 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.
Yes Budget amendments are completed and adopted as necessary.
Finances Comments
The city has submitted an adequate FY 2011 Budget which was adopted on June 22, 2010. Bethel RUBA office has received monthly financial reports regularly from the city for the last four years. In June and July of 2010 the city added more detail to their monthly reports which will be very helpful. Minutes from August and September meetings council meetings documented that the city council reviewed financial reports from July and August of 2010. An October 14, 2010 correspondence from AVEC indicated that the city is current with all its electric accounts. The city consumes approximately about 40,000 gallons of fuel oil annually. An October 13, 2010 correspondence from the city administrator indicated that the city has 50,212 gallons of stored at the water treatment plant tank farm and that should be enough fuel to last until the first fuel delivery of 2011.

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.
No 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
A January 2005, 'City of Hooper Bay Water, Sewer and Solid Waste Business Plan' is on file at the Bethel Regional Office. Sections 11-17 outlines the city's collection policy. All of the above indicators are reviewed through reports received from the community on a monthly and quarterly basis and are on file in the Bethel RUBA office. Water and wastewater billings are sent out the first of every month. The utility uses QuickBooks Pro 10 for its financial accounting.

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.
Yes 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 utility uses QuickBooks Pro 10 for its payroll accounting. A September 30, 2010 correspondence from the IRS indicated that the city is compliant with its federal tax filings and deposits. The payroll tax deposits are made electronically and copies of deposit slips are on file in the RUBA Bethel office. An October 14, 2010 phone conversation with the Alaska State Department of Labor confirmed compliance of tax reports and deposits through the second quarter of 2010.

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.
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
An October 13, 2010 phone conversation with the city's workers' compensation carrier, Alaska Public Entity Insurance, indicated the city was current through June 2011. The insurance company indicated the city had coverage for 23 full time employees. RUBA staff has copies of documentation for the above indicators on file.

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
Yes 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 utility has an adopted ordinance, however a new water and wastewater ordinance that meets the requirements of the Regulatory Commission of Alaska's (RCA) is being considered for adoption by the city council. The administrative, finance staff, and water operator are competent long term employees. The city continues to make sure the operators are current with certification.

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
On October 22, 2010, CE2 Engineers emailed the city (and Bethel RUBA staff) a copy of 'City of Hooper Bay Water Treatment Plant and Washeteria Preventive Maintenance Plan and Records and Reporting' for review and approval. In the email CE2's engineer mentioned that the Preventive Maintenance Plan will eventually be included in the larger Operation and Maintenance (OM) Manual for the city's water treatment plant and washeteria. The OM Manual will also include a Health and Safety Plan, an Inventory Control List and a Critical Spare Parts List. However, no projected date of completion was given for OM Manual. The city was not on the July 20, 2010 Significant Non-Complier (SNC) list.