Quarterly Report: 2007, January - March (Q3), Angoon

Community:
Angoon 
Staff:
Lawrence Blood  
DCRA Regional Office:
 
Gov't Type:
Second Class City 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
City of Angoon 
Population:
497  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
5/1/2007 
Community Sanitation Overview:
Angoon is located in Southeast Alaska on Admiralty Island and is connected via the Alaska Marine Highway System. The City of Angoon operates and manages a piped water and sewer system. The city council is the policy making body for the utility. Surface water is derived from the Tillinghast Lake Reservoir, is treated, and piped throughout the community. The City of Angoon has operated a piped water system since 1977. Greater than 95% of homes have complete plumbing. Piped sewage is processed at a secondary treatment plant that flows to an ocean outfall. A feasibility study to examine water and sewer service for a new 62-lot subdivision is underway under the auspices of Alaska Native Tribal Health Consortium (ANTHC). On a weekly basis, the City collects and deposits refuse at a municipal landfill located approximately two miles from Angoon. The Inside Passage Electric Cooperative (IPEC) provides electricity. Although the water treatment plant is operating and provides adequate potable water, the City of Angoon is attempting to address numerous community-identified concerns. First, the water source intake pipe is frequently constricted by debris, which has caused the water treatment plant to occasionally cease operations. Second, the wet well is considered too shallow, which is believed to be the cause of pump cavitation, pump burnout, and high operating cost due to staffing and pump replacements. Third, pumping water from Tillinghast Lake Reservoir is believed to create a higher electrical cost. Fourth, the walkway to the water intake location is in need of repair or complete replacement. A gravity fed water supply from Mount Hood is perceived to be a long-term solution to the City's current and future water utility needs.  
RUBA Status & Activities This Qtr:
Juneau RUBA staff traveled to Angoon to complete a reassessment of Management Capacity Indicators. The original assessment was done in October 2006. Since the initial assessment, RUBA staff has traveled to Angoon several times to work with the utility and City Council in addressing the deficient essential indicators that were identified in the October assessment of management capacity indicators. During this quarter, the City Council has reviewed their utility ordinance, personnel and collections policy. The City continues to struggle financially and utility revenues are falling far short of expenses. This situation has been exacerbated by recent employee turnover in the bookkeeping and accounting clerk positions where the new employees need training to become proficient with the City's accounting system. Angoon will be the recipient of a RUBA grant program during the next quarter. The grant provides for a contractor to visit the community three times approximately 30 days apart to install and train staff on the procedures of QuickBooks Pro. The contractor will customize the QuickBooks set up to the needs identified by the community. Angoon signed a RUBA Agreement this quarter. RUBA and Angoon will agree to a work plan and work closely to meet the remaining deficiences noted in the most recent management assessment. 
RUBA Activities for the Coming Qtr:
RUBA activities for the coming quarter will include: 1) Addressing the deficient essential indicators that were identified in the latest Assessment of Management Capacity Indicators. 2) Continue to provide support for increasing collection rates and pursuing delinquent water utility accounts. 3) RUBA staff will travel Angoon April 9, 2007 to update the City's QuickBooks program and provide a week long QuickBooks training course to the new bookkeeper.
Scores:
 
Essential Indicators:
18 of 26
Sustainable Indicators:
14 of 27
Total Score:
32 of 53

Finances

Essential Indicators
Answer Question
Yes 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.
No 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.
Yes A monthly manager's report is prepared.
No Budget amendments are completed and adopted as necessary.
Finances Comments
The FY07 budget was adopted by the city council on October 20, 2006. The water enterprise fund is primarily funded through user fees. This fund is budgeted to receive $30,000.00 in FY07, which is a slight increase over FY06 actual revenue. The fund has $83,400.00 in budgeted expenditures, which is $3,371.00 below FY06 actual expenditures. The water fund is budgeted to operate at a $53,400.00 deficit with no other sources of revenue identified to subsidize operations. The combined water, wastewater and garbage funds are budgeted to operate at a $63,625.00 deficit. The city was unable to provide a current monthly financial statement to verify YTD revenues and expenditures compared to the budget. The city has recently struggled with being able to meet all of their accounts payable including making electric payments on time and purchasing heating oil due to increasing cost. At present, the city is current on paying its electric bills and it purchases fuel as needed, and when funds are available. The utility meets the essential indicator for being current on its electric bills, however it will probably continue to struggle meeting this obligation due to the overall financial condition of the city. The Mayor provides the council with verbal status reports on the utility. The council does not make budget amendments during the fiscal year. Once the council has adopted the budget, it remains the same until the next year's budget is prepared.

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.
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
The utility has an adopted collections policy included in the public services ordinance. The council has recently reviewed and updated the utility's collection policy and made a commitment to actively follow it. Prior to the council reviewing the collections policy, there was little enforcement on delinquent accounts and the provisions contained in the policy were not routinely followed. The collection policy provides for reminder and disconnection notices to be sent out after an account becomes delinquent with a service disconnection if an account does not become current by the date listed on the disconnect notice. The utility currently has a large number of accounts that are more than 90 days past due. RUBA staff will continue to monitor the City's collection efforts and adherence to the utility ordinance

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.
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 community recently reported that they have filed all of their past due quarterly contribution reports and are current on their tax deposits. The Mayor has authorized RUBA Staff to obtain the federal and state tax filing information to verify the City's compliance.

Personnel System

Essential Indicators
Answer Question
No 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.
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.
Yes 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 city's workers compensation insurance was cancelled due to nonpayment. The City is in the process of having their workers compensation insurance reinstated. The utility has an adopted personnel policy included in the public services ordinance. The utility has well organized personnel files containing the necessary INS forms, IRS forms, acceptance letters and any disciplinary actions. The utility is lacking written job descriptions and a formal evaluation and hiring process. The utility provides adequate training to its employees. Employees are encouraged to attend annual water/wastewater conferences, UTM courses and other specialized training when funds are available.

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.
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
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
There has been recent employee turnover in the City's bookkeeper and accounting clerk positions. Both positions are currently staffed with capable individuals, however, both employees are unfamiliar with QuickBooks. Both individuals are engaged in a training program and the City intends to send them to a formal QuickBooks training class on April 9, 2007. On a daily basis, water utility duties are generally split between two staff persons. The city does not have a written organizational chart that reflects the current municipal structure. The city council does meet as required and complies with the Open Meetings Act.

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".
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 operator provides verbal utility status reports to the manager. The utility has not had any recent problems or outages due to management issues. The utility maintains very few critical spare parts and an inadequate level of supplies and chemicals. The operator does not maintain an inventory control or critical spare parts list. The utility operators have expressed several concerns with safety. The operators have no means of communication outside of the city offices. There is no telephone at the water treatment building and the utility has no radio equipment when operators are working outside at the water tower, water source pump station, landfill etc. The utility is on the Significant Non-Compliance (SNC) list because it does not meet the Long-term 1 / Enhanced surface water treatment rule.