Quarterly Report: 2010, January - March (Q3), 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:
478  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
5/10/2010 
Community Sanitation Overview:
Angoon is located in Southeast Alaska on Admiralty Island and is connected via the Alaska Marine Highway System. The City of Angoon operates and manages a piped water and sewer system. 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. The Inside Passage Electric Cooperative (IPEC) provides electricity.  
RUBA Status & Activities This Qtr:
Juneau RUBA staff met with the Utility manager at a two-day rural Sanitation Deficiency System (SDS) planning meeting held in Juneau March 29-30, 2010. RUBA staff and the ANTHC engineer discussed with the utility staff member the current conditions of the water system, and identified areas where the community needed additional assistance or training. RUBA staff provides telephonic assistance as requested. The community continues to struggle in two major areas, a marginal utility collection rate and obtaining an operator who is certified at the appropriate level. The Mayor reports that utility bills are being sent out on a regular basis however the City has seen little increase in the collection rate over the last quarter. The Mayor feels that additional improvement in the collection rate will be difficult due to the current economy in Angoon. The Mayor has also been working on both training the back-up (volunteer) operator to achieve a level II water treatment certification and working towards submitting an Alternate Method of Supervision Plan. He has contacted several level II water treatment operators within the region; however, none have agreed to provide supervision to the under certified water operator.  
RUBA Activities for the Coming Qtr:
RUBA activities for the coming quarter will include: providing support for increasing collection rates and pursuing delinquent water utility accounts.
Scores:
 
Essential Indicators:
21 of 27
Sustainable Indicators:
10 of 27
Total Score:
31 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.
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.
No A monthly manager's report is prepared.
No Budget amendments are completed and adopted as necessary.
Finances Comments
The city completed their FY10 budget. The completion of the FY10 budget freed up funds being held by the state which were used to pay off some past debt owed by the city. These funds were used to purchase worker's compensation insurance and return to good standing with some creditors.

Accounting Systems

Essential Indicators
Answer Question
No 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.
No 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
The city continues to struggle with enforcing collections on delinquent accounts. The city has taken some action and is attempting to follow the provisions contained in the utility ordinance and collection policy. As a result of this effort, the utility has increased their collection rate from 39% to 70%. A large number of accounts are still 90 days past due with a total outstanding accounts receivable in excess of $300,000.

Tax Problems

Essential Indicators
Answer Question
Yes 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.
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
With the turn-over in finance staff, the city was unable to locate any copies of their 941 filings. During a routine quarterly check with the Taxpayer Advocate Office for IRS compliance, RUBA staff discovered that the city had failed to make the required tax deposit for 4th Quarter 2007.

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.
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.
No 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.
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 currently carries workers compensation insurance through AML/JIA. The policy runs through 06/30/10. The policy covers work-related accidents and occupational diseases up to the Alaska statutory limits for each occurrence. The utility has well organized personnel files containing the necessary INS forms, IRS forms, acceptance letters and any disciplinary actions. The utility is lacking written job descriptions and a formal evaluation and hiring process.

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.
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
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 does not have a written organizational chart that reflects the current municipal structure. The city council meets as required and complies with the Open Meetings Act. The council is not enforcing the collection policy at this time.

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.
Yes The utility has a safety manual and holds safety meetings.
No 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.
No The utility maintains an inventory control list.
No The utility maintains a critical spare parts list.
Operation of Utility Comments
The utility is on the Significant Non-Compliance (SNC) list as of 11/9/09 because it does not meet the Surface Water Treatment Rule and was issued a notice of violation for failure to report the results of regular turbidity and chlorine monitoring and for failing to have an operator certified at the appropriate level. The violation concerning having an operator at the appropriate level has yet to be rectified. The city will need to either hire a certified level II operator or seek approval of an Alternate Method of Supervision Plan (AMOS). The city has taken the initial steps of putting together a draft Alternate Method of Supervision Plan and has contacted a level II water treatment operator at the Greens Creek Mine who may provide utility supervision if the plan is approved. The utility maintains very few critical spare parts and has an inadequate level of supplies and chemicals. The operators do not maintain an inventory control or critical spare parts list. The utility operators have expressed several concerns with safety including the physical condition of the water treatment plant, exposure to chemicals and the lack of communications outside of the city offices.