Quarterly Report: 2014, July - September (Q1), Napakiak

Community:
Napakiak 
Staff:
Eli Jacobson  
DCRA Regional Office:
 
Gov't Type:
Second Class City 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
City of Napakiak 
Population:
354  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
10/10/2013 
Community Sanitation Overview:
The City of Napakiak operates a washeteria and a flush haul utility. Napakiak has two wells; one well services the washeteria and the other well provides water to the treatment plant. The plant was constructed in 1986. Currently, the plant does not generate enough potable water to meet the community's needs. The plant's water tank has two 2,500 gallon usable sections. One section is where the treated water is stored and continually drawn. The other section is where water is treated and then transferred to the storage section. It takes three days to treat a batch of water and the storage tank often runs empty before the next batch is ready. Community members rely on ice water and rain water to supplement potable water needs. An additional problem is the fill point. Residents can get water from the fill point by flipping a light switch, which does not require tokens. This means a user can turn the switch on and walk away. The tank has been drained several times in this manner, especially in summer when children want to play in the water. This causes a three-day loss in service to the community regularly. 
RUBA Status & Activities This Qtr:
On September 5, 2013 RUBA quarterly report information was requested. Up to this writing only some of the information was received. Therefore certain indicators cannot be verified. 
RUBA Activities for the Coming Qtr:
RUBA staff will continue to work with the city on the remaining indicators.
Scores:
 
Essential Indicators:
18 of 26
Sustainable Indicators:
9 of 27
Total Score:
27 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.
No A monthly manager's report is prepared.
No Budget amendments are completed and adopted as necessary.
Finances Comments
The City of Napakiak has not provided a copy of the FY14 budget. Monthly financial reports that compare year-to-date revenues and year-to-date expenditures to annual budgeted amounts are not available. The utility is current on electric bills. Napakiak has a one-year supply of fuel. The utility is subsidized an undetermined amount from the city budget. Collection rates are not enough to cover expenses compared to similar systems. An example of this is the dryers. The washeteria has large industrial dryers. The customers pay one dollar and fifty cents to run a dryer for an hour, far less than the actual cost of operation to the utility. The city does not have a repair and replacement fund. Currently, year-to-date revenues and expenditures cannot be determined. A monthly manager's report is not prepared. The city has not made necessary amendments to balance the budget.

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.
Yes 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 of Napakiak does not have an adopted collection policy. Customers are supposed to prepay before receiving water/wastewater service but this is not enforced. Some customers are given service before paying balances on their accounts. The city has a list that customers are put on if they owe more than $75. Revenue was lost when some of these customers moved out of town. QuickBooks is used for accounts receivable, accounts payable, and calculating payroll. Napakiak has a safe with cash transactions recorded in a ledger and then that information is transferred to QuickBooks. The city's chart of accounts is also in QuickBooks. Monthly bank reconciliations are completed for all utility accounts. A purchasing system has not been established.

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.
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 of Napakiak did not provide the requested authorization to request federal tax information form and therefore federal tax compliance could not be verified.. The state Department of Labor (DOL) was contacted on September 23, 2013. DOL verified that the City of Napakiak is current on their Employment Security Contributions account. The City of Napakiak is not on the Lien Watch dated July-August 2013

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.
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 of Napakiak workers compensation insurance is through the Alaska Municipal League Joint Insurance Association Inc, and covers the period from July 1, 2013 to July 1, 2014. A personnel policy has not been adopted. The city does not have written job descriptions. The city has a written personnel evaluation process. Currently the city is amending the written evaluation form. The city clerk provided a written hiring process, however there is no evidence that the hiring process was adopted by the city council. Personnel folders do not contain job applications, I-9's, and letters of acceptance. The city has a 90-day probationary period that has been orally followed. On-the-job training and additional training opportunities are provided as necessary. Staff are encouraged to pursue further training opportunities.

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
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 of Napakiak owns the utility and is the policy making body. The city council meets on the second Tuesday of each month and has special meetings as required. The utility has a prepay system but does not enforce it. Some customers receive service without prepaying. Customers are put on a list and refused service when they are $75 dollars behind on payment. Also, some customers have moved out of town without paying the balance. The city clerk performs managerial and bookkeeping duties. The water utility operator has three years experience and is seeking additional training. The city has adopted ordinances that give the utility authority to operate; however, the city does not have an adopted organizational chart. City meetings are posted in three different public places and the requirements for the Open Meetings Act are met.

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.
Yes 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 City of Napakiak's water operator started in April of 2010. The operator is seeking additional training. A preventative maintenance plan has not been developed for the water plant. The manager does not receive a monthly report from the operator or spot check the facility. The utility does not have a safety manual or hold regular safety meetings. The utility frequently runs out of water. The water plant has the ability to sanitize 2,500 gallons every three days. In 1986 when the plant was built this was a large enough capacity to serve the community. However, twenty-seven years later the population has increased beyond the capacity of the facility. The plant is operating at its proposed level of service, but this is no longer enough to meet the needs of the community. The city does not have a posted CCR. The city is on the July 2013 Significant Non-Compliance list for failing to sample for nitrate and other contaminants. The utility does not have an inventory control or critical spare parts list.