Quarterly Report: 2014, January - March (Q3), Akhiok

Community:
Akhiok 
Staff:
Jedediah Smith  
DCRA Regional Office:
Anchorage regional office 
Gov't Type:
Second Class City 
Borough:
Kodiak Island Borough 
Agreement?
No 
Agreement Date:
 
Entity:
City of Akhiok 
Population:
85 2013 Department of Labor Estimate 
Assessment Status:
Assessment Completed 
Assessment Date:
5/12/2010 
Exp Date:
 
Last Updated:
3/24/2014 
Community Sanitation Overview:
The city of Akhiok has a water treatment plant that was built in 1982 and has two 10,000 gallon water storage tanks that service 25 water connections. Water is supplied from a 500,000 gallon reservoir and dam. Pressure pumps are needed to supply the water storage tanks as the tanks are near the same level as the water reservoir and water treatment plant. The distribution system has antiquated vales that are no longer serviceable. Within the water treatment plant one of the two media filters has collapsed leaving only one filter usable within the plant. A through backwash of the filter can drain the distribution system and put the psi level down to five psi throughout the system. A new treatment plant is being constructed and planned for installation in Spring 2014. 
RUBA Status & Activities This Qtr:
On February 10, RUBA staff traveled to Akhiok to work with new billing clerk and city council to establish best management practices for the water and wastewater and electric utility. RUBA staff worked with the two new utility clerks to demonstrate the proper procedures for completing the water, wastewater and garbage fees, as well as, meter readings and billing for the Alaska Energy Authority monthly report. RUBA staff also assisted the Akhiok city administrator and the Akhiok mayor with the November, December and January Power Cost Equalization reports. The revenue generated from PCE reimbursements help subsidize the operation of the community‚Äôs water treatment system and fund basic city administrative costs. Akhiok is anticipating a brand new water treatment module to be delivered and installed sometime in the spring. Consistent revenue streams such as power cost equalization will be critical to the ongoing operation and maintenance of the new water treatment plant. RUBA staff visited the water treatment plant with the city administrator, who demonstrated backwash techniques and chlorine injection procedures. RUBA staff will continue to work with the new utility clerks on the monthly reporting and may recommend an on-site QuickBooks installation in the future if the resources are available.  
RUBA Activities for the Coming Qtr:
RUBA staff intend to follow up with new administrative assistants in the community to develop more specific bookkeeping practices using Excel spreatsheets. RUBA staff will continue to assist the community in the reporting of Power Cost Equalization, the revenues of which are important in subsidizing the water utility. Additionally, RUBA will work with the community to develop a monthly financial report that more accurately tracks how money is received and spent.
Scores:
 
Essential Indicators:
11 of 27
Sustainable Indicators:
2 of 27
Total Score:
13 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.
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.
Yes The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses.
Sustainable Indicators
Answer Question
Yes 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 of Akhiok uses community revenue sharing and Power Cost Equalization payments to help cover the cost of the water utility. Financial reports are not currently submitted to the city council, but RUBA staff plans to work with the city on this essential indicator in the upcoming quarter.

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.
No An accounts payable system is in place.
Yes The payroll system correctly calculates payroll and keeps records.
No A cash receipt system is in place that records incoming money and how it was spent.
No The utility has a cash disbursement system that records how money was spent.
Sustainable Indicators
Answer Question
No 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
Akhiok uses a ledger book accounting system to track customer payments for electricity and refuse. Bills are delivered monthly.

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
The city utilizes the IRS's online EFTPS system to track payroll tax liabilities. On March 17, the Alaska Department of Labor granted tax clearance for the City of Akhiok. A signed authorization to request tax information was not returned, and therefore, could not be submitted to the IRS to confirm the tax status. The City has been compliant for the previous four quarters. Until RUBA can confirm the tax status, this indicator will be marked 'no'.

Personnel System

Essential Indicators
Answer Question
Yes 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.
No 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 utility has a posted worker compensation insurance policy in effect through June 30, 2014.

Organizational Management

Essential Indicators
Answer Question
No The entity that owns the utility is known; the entity that will operate the utility is set.
No The policy making body is active in policy making of the utility.
No The policy making body enforces utility policy.
No The utility has an adequately trained manager.
No The utility has an adequately trained bookkeeper.
No The utility has an adequately trained operator or operators.
No 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.
No The policy making body meets as required.
No The utility complies with the open meeting act for all meetings.
Organizational Management Comments
<none>

Operation of Utility

Essential Indicators
Answer Question
Yes The utility operator(s) are actively working towards necessary certification.
No 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.
No Utility facilities have not suffered any major problems/outages due to management issues that are unresolved.
No The utility is operating at the level of service that was proposed.
No The operator provides status reports to the manager on a routine basis.
No 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 operator has a provisional certification that is due to expire in December 2016.