Quarterly Report: 2009, April - June (Q4), False Pass

Community:
False Pass 
Staff:
Julie Dirks  
DCRA Regional Office:
 
Gov't Type:
Second Class City 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
City of False Pass 
Population:
46  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
8/10/2009 
Community Sanitation Overview:
City provided services include piped water, electric, refuse collection, landfill, public safety office, volunteer fire, dock, airport (state contract), roads, community hall, youth center, Alaska Rural Communications Service (ARCS) television broadcast support, library, boat haul-out, pet registration, driver licenses, and voter registration. The city also owns and maintains the buildings housing the post office, library, and clinic. Construction of Bering Pacific Seafoods is complete and the first year of operation over. A small boat harbor is near completion. Water is derived from a nearby spring and reservoir and is treated and stored in two 60,000-gallon tanks. Most homes are connected to the piped water system. Over 80% of the homes are fully plumbed. Most residents have individual septic tanks, however many are experiencing leachfield failure. While not currently operating, wastewater from seafood processing flows directly into an outfall line. A community-wide septic system is designed and funding for construction is being sought. 
RUBA Status & Activities This Qtr:
A trip was made to False Pass June 8-19, 2009. RUBA staff provided training and technical assistance to City staff and Council members on the budgeting process, budget preparation, and accounting. City staff have developed a new chart of accounts and QuickBooks data file that will be used beginning with the FY10 fiscal year that begins July 1, 2009. The budget will be set up to track revenue and expenses by function so that utility finances can be tracked separately from other City functions. Financial information as of 5/31/09 and other documentation was requested on 6/15/09. 
RUBA Activities for the Coming Qtr:
RUBA staff will assist the City of False Pass as requested with resolving issues with their chart of accounts and QuickBooks set-up, as well as setting up their FY10 budget. An effort will be made to provide detailed explanations about what the documentation requested needs to contain. Assistance will be provided as requested by phone, email, and fax.
Scores:
 
Essential Indicators:
17 of 27
Sustainable Indicators:
21 of 27
Total Score:
38 of 54

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.
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 FY09 operating budget tracks utility revenue and some utility expenses. Utility personnel expenses, insurance, and other utility expenses are not being tracked separately from other city expenses. City staff report that a monthly manager's report is provided verbally. A copy of meeting minutes dated August 12, 2008 indicates a report is provided to the City Council.

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.
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
City staff use QuickBooks Pro accounting software supplemented by Excel spreadsheets. A new chart of accounts and QuickBooks data file has been developed for use beginning 7/1/09. No documentation showing that bank accounts have been reconciled regularly was provided.

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.
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 of False Pass has met current filing and deposit requirements per State DOL staff. The IRS reports that 941 for 9/30/07, 12/31/07, 3/31/08, and 6/30/08 have not been received. The Alaska Department of Labor issued a lien for 6/30/08 ESC on False Pass. The lien does not appear on the February 2009 lien watch. No additional documentation has been received for False Pass.

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.
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.
No 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 City maintains worker's comp coverage through the AML/JIA. The policy runs July 1 to June 30 and is renewed each year.

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.
No The utility has an adequately trained manager.
No 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 local governing body is active in amending and adopting utility policy. They meet as required and the meetings are noticed properly. The current operator has been on the job for several months but is not currently certified. He has experience worwking on small water systems. Remote Maintenance Worker (RMW) Doug Abbas travels to the community to provide on-site operator training as the community has cut all travel and training due to budget constraints.

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.
Yes The utility maintains a critical spare parts list.
Operation of Utility Comments
The operator is certfied in water distribution and water treatment until 12/31/10. The regional RMW makes periodic trips to the area and assists operators that are working to become certified. The utility operator presents a monthly report verbally at each council meeting.