Quarterly Report: 2014, October - December (Q2), Atka

Community:
Atka 
Staff:
Roberta Eleazer  
DCRA Regional Office:
Anchorage 
Gov't Type:
Second Class City 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
City of Atka 
Population:
61 (2012 DCCED certified estimate) 
Assessment Status:
Assessment Completed 
Assessment Date:
3/27/2012 
Exp Date:
 
Last Updated:
12/23/2013 
Community Sanitation Overview:
The community water/wastewater system went online in August 2012. Water is supplied by a stream and wooden reservoir dam northwest of the city. It is stored in a new 140,000 gallon water tank before distribution. All 50 homes are connected to the piped water and wastewater system. Wastewater is piped to a central wastewater system. Wastewater flows untreated through outfall lines into Nazan Bay. Garbage is collected twice a week. The City of Atka assumed operation of the electric utility in 2007. Work began on extension and repavement of the Atka airstrip in summer of 2008; completed in 2009. Atka Pride Seafoods processing plant will be expanded to allow for processing of multi-species. A crab allocation was purchased by Atka Pride Seafoods and APICDA from Westward Seafoods. The crab will be processed in the local plant. 
RUBA Status & Activities This Qtr:
The new RUBA staff member contacted Mayor, Christopher Maly and City Administrator, Julie Dirks to offer assistance and information on RUBA trainings conducted during this quarter. On December 6, Anchorage RUBA staff received the signed IRS Authorization to Request Federal Tax Information.  
RUBA Activities for the Coming Qtr:
RUBA staff will advise the city of upcomings trainings and update the RUBA assessment in March.
Scores:
 
Essential Indicators:
26 of 26
Sustainable Indicators:
25 of 27
Total Score:
51 of 53

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
Yes 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 adopted its FY14 budget on June 18, 2013, which includes the water and sanitation enterprise, with Ordinance 13-191. There is a transfer from the Aleutian Pribilof Island Community Development Association, community dividend to cover the operating expenses for the water utility. The budget does have a Retirement and Replacement line item. The city administrator provides monthly financial reports in the form of budget versus actual to the council. The city owns the electric utility and uses QuickBooks to track interoffice transactions for electricity. An email from the city states that the city has enough fuel until a fuel barge is anticipated to make a delivery. Budget amendments are done as needed.

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.
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
In the Atka Code of Ordinances is Title 9, Chapter 1, Section 14: Administration and Enforcement that addresses the collection policies for the water utility. The AMPY meter is programmed to process the water and sanitation charges on the customers prepaid utility card. No utility bills are generated through the AMPY prepay system, so there are no accounts receivable for the utility as bills are not sent out to residential customers. QuickBooks Online is used to track the accounts receivable for the commercial class customers. QuickBooks Online is also used to track accounts payable and has no major payments due to vendors. The city uses QuickBooks Online to process payroll. Customers are given a receipt generated from a sales book and a receipt from QuickBooks Online when paying for water and sanitation utilities. QuickBooks Online is used to record cash disbursements. The Chart of Accounts has all bank accounts, accounts receivable, assets, accounts payable, credit cards, liabilities equities, income and expense accounts. QuickBooks Online is used for bank reconciliations. Title 3, Chapter 4, Section 1: Purchasing Agent; states the mayor is the purchasing agent, or the mayor may designate the city administrator as the purchasing agent for the city.

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.
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
The city uses QuickBooks Online to calculate, track and report payroll liabilities. Tax clearance with the State Department of Labor was verified, as of December 20, 2013. The City of Atka is in compliance with federal employment tax requirements.

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.
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 city is insured for workers compensation under their Alaska Municipal League Joint Insurance Association (AMLJIA) policy that is current as of December 2013. The personnel policies are in Title 6 of the Atka Code of Ordinances and address classification and compensation, recruitment and hiring of personnel and also evaluations. Personnel files are kept in a locked file cabinet and include the I-9, job application, letter of acceptance, evaluations, and tax information. The current probationary period is three months for new employees. The city provides training opportunities for employees when necessary and with budgetary limitations being considered.

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
In the Atka Code of Ordinances is Title 9: Utilities, Chapter 1: Water, Sewer, and Refuse Utility that addresses the water and wastewater utility. The policy making body is active and informed in making and enforcing utility policies. The mayor is the utility manager and has a Water Treatment Provisional and Water Distribution Provisional certifications due to expire December 31, 2016. The city administrator is the bookkeeper for the utility. The city has an organizational chart that shows the lines of authority for the water utility. The city meets as required by ordinance and follows the Open Meetings Act by posting meeting notices in three public places 24 hours prior to a meeting.

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.
Yes 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
The primary operator is certified in Water Treatment and Water Distribution Provisional that expires on December 31, 2016. The current water utility has a wall mounted chart that serves as the preventative maintenance plan. Safety meetings include an overview of the daily operations and possible hazards between operators, but are not recorded. There have been no major problems or outages due to unresolved management issues. The operator provides updates to the council with verbal reports. The CCR was generated and distributed to water utility customers and posted in three public places. The water utility is not listed on the October 2013 SNC List.