Quarterly Report: 2012, January - March (Q3), Atka

Community:
Atka 
Staff:
Brice Eningowuk  
DCRA Regional Office:
 
Gov't Type:
Second Class City 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
City of Atka 
Population:
61  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
5/1/2012 
Community Sanitation Overview:
The community water/sewer system was constructed in 1978 and was expanded in 1982 to a new housing area. Water is supplied by a stream and wooden reservoir dam northwest of the City. It is stored in two 30,000-gallon water tanks before distribution. All 50 homes are connected to the piped water and sewer system. Sewage is piped to a central septic system. Wastewater flows untreated through outfall lines into Nazan Bay. Garbage is collected twice a week. The City has requested funds to increase water capacity, replace the water treatment system, replace connections, and treat the sewage outfall. A hydro-electric system at Chuniisax Creek will complete construction by 2011. Funding is from Alaska Department of Economic Development, Division of Administration, Alaska Energy Authority and the City of Atka. The sewer portion is in the design phase and will provide a sewer upgrade to the distribution system at the old village. Water portion is in the planning phase for a new 130,000 gallon tank and water treatment plant. 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. The City of Atka does not charge customers what it costs them to operate the utility but continues to have other sources of funds to cover all utility expenses. The City of Atka has consistently met all essential capacity indicators and the majority of the sustainable indicators. 
RUBA Status & Activities This Qtr:
On February 3, 2012, Anchorage RUBA staff met with the City of Atka staff to conduct a RUBA Assessment of Management Capacity Indicators for a water utility operated by the City of Atka. The City of Atka has the city administrator office in Anchorage has all the documents needed for the assessment. Documents collected for the RUBA assessment are as follows: the FY12 entity budget that includes the water utility, monthly financial reports through February 1, 2012, chart of accounts, bank reconciliation detailed report, accounts receivable aging summary report, accounts payable aging summary report, a sample bill for the water utility, a signed Authorization to Request Federal Tax Information, proof of workers compensation, and the 2010 consumer confidence report. Initial review of the documents received indicates that the city meets essential indicators of the RUBA report. Anchorage RUBA staff will provide the city with a DRAFT RUBA assessment report and they will have a 10 day comment period. A finalized RUBA assessment of management indicators report will be distributed to the city, engineer and RUBA Program Manager shortly thereafter. On March 27, Anchorage RUBA staff finalized a RUBA Assessment of Management Capacity Indicators for the City of Atka. The city has met all essential indicators but there are sustainable indicators in the areas of Utility Finance, and Operation of Utility. It is recommended that the city ensure that the utility receives revenue (user fees or other sources) sufficient to cover operating expenses and Repair and Replacement (R/R) costs, create a safety manual and holds safety meetings, create and maintain an inventory control list and create and maintain a critical spare parts list to meet the sustainable indicators of the RUBA Assessment. 
RUBA Activities for the Coming Qtr:
RUBA staff will continue to provide assistance with city staff upon request.
Scores:
 
Essential Indicators:
26 of 26
Sustainable Indicators:
23 of 27
Total Score:
49 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
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 city adopted its FY12 budget, that includes the water and sanitation enterprise, with Ordinance 11-185. The revenue for the water and sanitation enterprise is budgeted at $27,600 and the expenditures are budgeted at $50,362. There is a transfer from the Aleutian Pribilof Island Community Development Association, community dividend in the amount of $22,762 to cover the operating expenses for the water utility. The city administrator provides monthly financial reports in the form of budget versus actual to the council. The most recent report shows the city is about 58 percent through their fiscal year and the water utility has used 61 percent of the operation budget. 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 April, when a fuel barge is anticipated to make a delivery. Monthly financial reports show that the utility is on track and utilizing user fees and other sources to cover operating expenses. The utility does have repairs in the budget, but does not have funds entered into an account for repair and replacement funds. The city has revenue that exceeds the expenditures within the budget. 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. The IRS report dated February 8, 2012 shows that the city is compliant with required federal tax deposits, filing and has no record of a lien. The state ESC report from March 13, 2012 states that the city is in compliance with state tax filing, deposits and is not on the January - February 2012 lien watch.

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 AML/JIA policy that is current until July 1, 2012. 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, 2013. 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 the 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.
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.
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, 2013. There are two alternates that have the Small Water System Treated certificates that expire on December 31, 2013. 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 2010 CCR was generated and distributed to water utility customers and posted in three public places. The water utility is not listed on the current January 2012 SNC List. The utility does not have an inventory control list or a critical spare parts list.