Quarterly Report: 2009, October - December (Q2), South Naknek

Community:
South Naknek 
Staff:
Ralph Andrew  
DCRA Regional Office:
 
Gov't Type:
Federally Recognized Tribe 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
South Naknek Village 
Population:
74  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
2/13/2009 
Community Sanitation Overview:
Individual water wells and septic systems serve the majority of the community; others use the piped water and sewer system. Roughly 30 homes are connected to the piped water and sewer systems. Two permitted landfills are available; one operated by the Bristol Bay Borough and one by a private fish processing company. Power lines cross the Naknek River 5 miles east of Naknek and connect to South Naknek. 
RUBA Status & Activities This Qtr:
A RUBA Assessment of Management Indicators was conducted for South Naknek May 21-23, 2008 at the request of the village council. In prior quarters, the village council was satisfying RUBA essential indicators. The village administrator was laid off near July 2008; RUBA attempted to confirm compliance with various essential indicators unsuccessfully. However, the village council reported to RUBA that they signed a contract with the Alaska Native Tribal Health Consortium Alaska Rural Utility Collaborative (ARUC) to manage the water/sewer utility. ARUC is expected to request a RUBA Assessment shortly; RUBA awaits their reuquest and will update this report to reflect current status of indicators upon completion of a new RUBA Assessment. The village council continues working with the Alaska Native Tribal Health Consortium (ANTHC) to plan upgrades to the public water/sewer system with a focus on improvements to the wastewater system. Presently, the ANTHC engineer is exploring design options with the community to address an ongoing land access concern related to the proposed wastewater system. 
RUBA Activities for the Coming Qtr:
RUBA will continue offering assistance to the village council upon request and coordinate a new RUBA Assessment with the ANTHC ARUC manager based in Anchorage upon request.
Scores:
 
Essential Indicators:
15 of 26
Sustainable Indicators:
22 of 27
Total Score:
37 of 53

Finances

Essential Indicators
Answer Question
No All revenues and expenses for the utility are listed in the utility budget.
No The utility has adopted a balanced realistic budget.
No 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.
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.
No 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 utility had in place a realistic water/sewer budget and operates on the federal fiscal year ending September 30. RUBA will confirm adoption of a new FY 2009 water/sewer budget upon contact from the Alaska Rural Utility Collaborative (ARUC). In prior months, village staff provided the council with a detailed monthly financial report using QuickBooks accounting software. The council had sufficient heating and diesel fuel on hand and anticipates increased per-gallon prices in prior quarters. The residential water/sewer rate is $45 per month. The utility was current on electric bills. Septic pumping services are provided on a progressive scale starting at $150 per service. The administrator and operator provide reports to the village council.

Accounting Systems

Essential Indicators
Answer Question
No The utility has adopted a collection policy and actively follows it.
No 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
Village staff utilize QuickBooks Pro 2007 for utility billing, accounts payable, receivable, and for payroll processing. The village council contracts with ANTHC for utility billing and, in prior quarters, was enforcing collections with guidance from the collections policy in the water/sewer ordinance. RUBA will update the collection policy enforcement status upon confirmation from ARUC. Staff reconciles all bank accounts monthly, monitors fixed asset value for purposes of tracking depreciation, and follow a comprehensive personnel and purchasing policy.

Tax Problems

Essential Indicators
Answer Question
No 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
Staff maintains an accurate payroll processing system based on QuickBooks accounting software. On November 7, 2008 the Internal Revenue Service Taxpayer Advocate Service verified the village council is compliant with some but not all federal tax reporting and deposit requirements. The administrator is actively following up on the matter. On October 16, 2008, RUBA received confirmation of Alaska Employment Security tax compliance through June 30, 2008 from the Alaska Department of Labor, Employment Security Division. RUBA will update this section of the report upon completion of a RUBA Assessment for ARUC.

Personnel System

Essential Indicators
Answer Question
No 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 Worker's Compensation policy purchased through the Alaska National Insurance Company was in effect from June 27, 2007 through June 27, 2008. RUBA will update the current coverage status upon completion of a new RUBA Assessment for ARUC. The village council's personnel policy in place is comprehensive and well written. Employee files are well maintained and contain pertinent records and documentation. The manual is well written but does not include a comprehensive safety policy. RUBA encourages regular safety meetings.

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.
No 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 village council serves as the utility board and operates under a satisfactory water/sewer ordinance adopted in 2001. RUBA awaits confirmation that policy is presently being enforced. The council updated the rate schedule, an appendix to the ordinance, to reflect a utility rate increase in August 2007. The utility has trained and experienced staff including a water operator with more than 10 years of experience however, the administrator was laid off in July. The administrator has, however, addressed critical tasks in the village council office periodically. The village council meets as required.

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".
No 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 water operator possesses certification for Water Treatment OIT, Water Distribution OIT according to the Alaska Department of Environmental Conservation operator database. The operator utilizes a preventative maintenance plan and voiced plans to update the operations manual draft with assistance from agencies including ANTHC. The current operations manual includes schedules for critical tasks and parts. The operator provides verbal reports to the village council. The utility published its Community Confidence Report timely and is preparing to assemble the 2007 report due July 2008. According to an Alaska Department of Environmental Conservation (ADEC) report dated November 13, 2008, the utility is on the SNC list for failure to conduct required monitoring for Nitrate. RUBA recommends return to compliance in accordance with sampling requirements advised by ADEC.