RUBA Community Status Report

Community:

RUBA:

Staff:

Agreement:

DCA Region:

Agreement Date:

Region:

Exp Date:

Govt Type(s):

Borough:

Assessment Date:

Population:

Active Community:

Date Updated:

Community Sanitation Overview:

The water supply used by the city is taken from the Buckland River. It is treated with filtration and chlorination and stored in a central community storage tank. The water is then hauled to some homes by means of a light truck and small tanks. The residents are charged for this service. The community has a central washeteria, which is a combination laundromat, toilet, shower facility, and a watering point for residents who haul their own water. The piped water and wastewater system is under construction and is being built in phases. 50 homes, the clinic, the native store, and city office have service. A new water storage tank and treatment plant are under construction. Various parts of town will come online in phases each year thru 2014, pending adequate funding.

RUBA Status
and Activities
this Quarter:

On January 7, Kotzebue RUBA staff traveled to Buckland to provide financial management training to the city administrator and city clerk. Staff assisted in completing quarterly tax reports and reconciling annual payroll records. RUBA staff trained the administrator to read monthly finance reports, why they are important, and how it is monitored according to the RUBA management assessment. THis lead to the research of a $20,000 general funds line item over expenditure discovery. In addition, RUBA staff and the adminsitrator met with the water plant operator to review the water/wastewater portion of the monthly finance report. The purchased critical spare parts in comparison to the adopted budget amounts were discussed. The operator's required education credits to become a Level II and the declining training funds were explained by RUBA staff. While in Buckland, RUBA staff assisted in completing quarterly tax reports and balancing payroll information for the entire year. Buckland was ready to print W-2's and W-3's with this assistance. RUBA staff has maintained contact with the utility throughout the quarter following the on-site visit. Buckland was nominated by RUBA staff to receive an on-site training visit from the RUBA QucikBooks contractor. This on-site three day training is scheduled to occur next quarter.

Capacity Indicator: Finances

Essential Indicators:

All revenues and expenses for the utility are listed in the utility budget.

The utility has adopted a balanced realistic budget.

Monthly financial reports are prepared and submitted to the policy making board.

The utility is current in paying all water/wastewater electric bills.

The utility has on hand a year's adequate fuel supply or it has a financial plan to purchase an adequate supply.

The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses.

Sustainable Indicators:

The utility is receiving revenues (user fees or other sources sufficient to cover operating expenses and Repair & Replacement (R) costs.

YTD revenues are at a level equal to or above those budgeted.

YTD expenditures are at a level equal to or below those budgeted.

A monthly manager's report is prepared.

Budget amendments are completed and adopted as necessary.

Comment:

The city has adopted a balanced realistic budget that lists all the revenues and expenses for the utility. The city plans to amend the budget to include new revenue and expenses for the water and wastewater department. They introduced the budget amendment and plan to have the public hearing at their March council meeting. RUBA staff has received copies of council meeting minutes and the latest monthly finance reports that the council approved. The reports show that the community is current in paying all water/wastewater electric bills and has a financial plan to purchase an adequate supply of fuel. Kotzebue RUBA received copies of a saving account establish for major repair and replacement costs; they are receiving enough revenue to cover operating expenses and have budgeted for minor emergency water/wastewater problems. The plan is to deposit at least $1,000 a month into the reserve account. Currently, the utility is receiving revenues above those budgeted and expenses are at a level equal to those budgeted. A written report is provided to the council at their monthly meeting.

Capacity Indicator: Accounting Systems

Essential Indicators:

The utility has adopted a collection policy and actively follows it.

The utility bills customers on a regular basis.

An accounts receivable system is in place which tracks customers and reports past due accounts and amounts.

An accounts payable system is in place.

The payroll system correctly calculates payroll and keeps records.

A cash receipt system is in place that records incoming money and how it was spent.

The utility has a cash disbursement system that records how money was spent.

Sustainable Indicators:

A chart of accounts is used that identifies categories in a reasonable, usable manner.

Monthly bank reconciliations have been completed for all utility accounts.

The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts.

Comment:

The city has adopted a collection policy that they actively follow and bill customers on a monthly basis. They are on an assisted billing program with Alaska Native Tribal Health Consortium (ANTHC)which documents a 93 percent collection rate. The city utilizes QuickBooks, which correctly calculates payroll, income, and accounts payable. Before purchases are made, staff checks the budget (which is their chart of accounts), reviewing the reconciled monthly financial report before approving expenditures.

Capacity Indicator: Tax Problems

Essential Indicators:

The utility has a system to accurately calculate, track, and report payroll tax liabilities.

The utility is current on filing tax reports.

The utility is current on making tax deposits.

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.

Comment:

The IRS and State Department of Labor have confirmed that the city has filed reports and paid all tax liabilities. No past due liabilities or tax liens are recorded.

Capacity Indicator: Personnel System

Essential Indicators:

The utility has a posted workers compensation insurance policy in effect.

Sustainable Indicators:

The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML or Commerce for topics and language.

The utility has adequate written job descriptions for all positions.

The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation.

The utility has an adequate written hiring process.

The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance.

The utility has a probationary period for new hires that includes orientation, job training/oversight, and evaluations.

The utility provides training opportunities to staff as needed and available.

Comment:

The city's workers compensation insurance policy is in effect through June 30, 2013. They are insured by Alaska Municipal League Joint Insurance Association (AMLJIA) with the invoice for insurance paid in full. The city has an adopted personnel policy that was reviewed by an attorney. Job descriptions are used when evaluating staff per written personnel policy, allowing staff to grow professionally by providing training opportunities as needed. Both accounting staff have attended a QuickBooks class and are now ready to use QuickBooks for all accounting needs. They use the hiring process outlined in the adopted personnel policy. When a new employee is hired, they are provided job orientation and oversight - especially during the probationary period - to assure a smooth transition. Personnel files contain all necessary documentation such as a completed I-9 form, job application and letter of acceptance.

Capacity Indicator: Organizational Management

Essential Indicators:

The entity that owns the utility is known; the entity that will operate the utility is set.

The policy making body is active in policy making of the utility.

The policy making body enforces utility policy.

The utility has an adequately trained manager.

The utility has an adequately trained bookkeeper.

The utility has an adequately trained operator or operators.

The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate.

Sustainable Indicators:

The utility has adopted an organizational chart that reflects the current structure.

The policy making body meets as required.

The utility complies with the open meeting act for all meetings.

Comment:

The council is the known entity that is operating the new water/wastewater system. They are active in enforcing utility policy. Buckland has hired an administrator who previously worked for the city (10 years ago). Kotzebue RUBA noted that the administrator received QuickBooks training by attending the class in Kotzebue last quarter. The clerk - who does all financial input - is trained to use QuickBooks as well. The operators are certified and attend training sessions to further their certifications. A second alternate also received certification for water treatment and water distribution. The governing body has adopted the necessary ordinances to give the utility the authority to operate. An organizational chart has been adopted that reflects the current structure. The council meets monthly and follows the Open Meetings Act for all meetings.

Capacity Indicator: Operation of Utility

Essential Indicators:

The utility operator(s) are actively working towards necessary certification.

The utility has a preventative maintenance plan developed for the existing sanitation facilities.

Sustainable Indicators:

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.

The utility has a safety manual and holds safety meetings.

Utility facilities have not suffered any major problems/outages due to management issues that are unresolved.

The utility is operating at the level of service that was proposed.

The operator provides status reports to the manager on a routine basis.

The utility has completed and distributed its "Consumer Confidence Report".

The utility is not on the "Significant Non-Complier" (SNC) list.

The utility maintains an inventory control list.

The utility maintains a critical spare parts list.

Comment:

The operator has certificates for Water Distribution Provisional, Wastewater Collection Provisional, Wastewater Treatment Provisional and Water Treatment 1. The utility also has two alternates who received certification for Water Treatment Provisional and Water Distribution Provisional. The operator is working with the superintendant of the new water/wastewater project to develop a preventative maintenance plan for the new project. The facilities are spot checked, to assure that maintenance tasks are being completed. Safety meetings are being held daily as the project progresses. There have been no outages due to management issues and the utility is operating at the level proposed. The operator meets with the administrator daily and maintains an inventory and critical spare parts list. The January 2013 Significant Non-Complier (SNC) list notes that the system is still having problems with high DPBs, but is doing well in monitoring them. The system has a copper first draw action level exceedance. A water treatment study report was received by Alaska State Department of Environmental Conservation on July 9, 2012. This report identifies the water treatment technology needed to treat Buckland's water.

RUBA Activities for the Coming Quarter:

Kotzebue RUBA staff is scheduled to travel to Buckland in May 2013, to continue training and work with the administrator to complete workplan tasks.