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Capacity Indicator: Finances
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Essential Indicators
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Yes
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All revenues and expenses for the utility are listed in the utility budget. |
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Yes
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The utility has adopted a balanced realistic budget. |
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No
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Monthly financial reports are prepared and submitted to the policy making board. |
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No
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The utility is current in paying all water/wastewater electric bills. |
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Yes
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The utility has on hand a year's adequate fuel supply or it has a financial plan to purchase an adequate supply. |
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No
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The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. |
Sustainable Indicators
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No
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The utility is receiving revenues (user fees or other sources sufficient to cover operating expenses and Repair & Replacement (R) costs. |
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No
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YTD revenues are at a level equal to or above those budgeted. |
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No
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YTD expenditures are at a level equal to or below those budgeted. |
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No
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A monthly manager's report is prepared. |
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No
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Budget amendments are completed and adopted as necessary. |
| Finances Comment: |
The city adopted the FY13 budget on June 24, 2012. A copy of the approved budget was submitted to the Division of Community and Regional Affairs. The budget includes a line item of $120,000 as income from residential customers. This is based on a 100% collection rate. The finance officer was unavailable to provide quarterly reports.
A recent report is unavailable to determine if the electric bills are current for the utility. Heating oil for the utility is delivered by barge in the fall and has been delivered. The utility uses an average of 3,000 gallons annually. The utility budget included $12,000 for heating fuel.
The utility budget includes a line item for Repair and Replacement funds, however there is no evidence in the monthly financial report that Repair and Replacement funds are actually being set aside and accumulating as necessary. A recent monthly financial report was not available, it is undetermined if revenues are exceeding expenditures for the quarter. It is undetermined if budget amendments are necessary at this time.
Minutes were unavailable to determine if the administrator is providing a managerial report on the utility at a regular monthly meeting.
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Capacity Indicator: Accounting Systems
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Essential Indicators
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Yes
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The utility has adopted a collection policy and actively follows it. |
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Yes
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The utility bills customers on a regular basis. |
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Yes
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An accounts receivable system is in place which tracks customers and reports past due accounts and amounts. |
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Yes
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An accounts payable system is in place. |
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Yes
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The payroll system correctly calculates payroll and keeps records. |
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Yes
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A cash receipt system is in place that records incoming money and how it was spent. |
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Yes
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The utility has a cash disbursement system that records how money was spent. |
Sustainable Indicators
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Yes
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A chart of accounts is used that identifies categories in a reasonable, usable manner. |
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No
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Monthly bank reconciliations have been completed for all utility accounts. |
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Yes
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The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. |
| Accounting Systems Comment: |
The utility billing and collection procedures are included in the utility ordinance adopted January 2004. According to the accounts receivable aging summary, there is a large amount past due of greater than 90 days. The utility has taken steps to collect delinquent accounts; a disconnection of service policy is in place and is enforced. Payment agreements are in place for the delinquent accounts and were made available to RUBA staff. A random review of accounts receivable files indicates that the utility bills are issued within the first three business days of each month as required by the utility's billing procedures. QuickBooks accounting software is used to record customer invoices and payments in the accounts receivable program. QuickBooks is also used for tracking accounts payable. Invoices are entered when received and payments are entered when made. The utility finance officer uses QuickBooks 2010 for financial record keeping, including all payroll records. The bookkeeper has received training in the use of QuickBooks through classes sponsored by the RUBA program. All payroll records are up to date.
The city clerk writes a receipt for any income received. A copy of every receipt is kept in sequentially numbered permanent receipt books. Once a week new data from the receipt book is entered into the utility's computerized accounting system. All payments are made by check. Every check includes an amount, an expense account, and a description of the payment. The data for every check written is recorded in the check register. A copy of paid invoices is kept in the vendor files. The utility's chart of accounts identifies all asset accounts (un-deposited funds, bank accounts, and accounts receivable) all liability accounts (current, long-term and payroll liabilities), and fund balances. Income and expense accounts are identified in a manner that matches the income and expense line items in the budget. It is undetermined if bank reconciliations are completed. The utility adopted a purchasing policy in 2002. The policy requires approval from the administrator for purchases. There is a verbal understanding by staff that up to $5,000 will receive approval by the administrator: any purchases in excess will require council's approval.
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Capacity Indicator: Tax Problems
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Essential Indicators
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Yes
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The utility has a system to accurately calculate, track, and report payroll tax liabilities. |
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Yes
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The utility is current on filing tax reports. |
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Yes
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The utility is current on making tax deposits. |
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Yes
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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 Comment: |
The city uses the QuickBooks accounting program to accurately calculate, track, and report payroll tax liabilities. On March 15, 2013, RUBA staff received confirmation from the Department of Labor that the city is current with all tax reports and deposits through December 30, 2012. The IRS has deemed the taxpayer compliant with federal employment and/or excise tax filing requirements and compliant with IRS federal tax deposits through December 2012. The utility is not found on the most recent lien watch (February, 2013).
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Capacity Indicator: Personnel System
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Essential Indicators
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Yes
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The utility has a posted workers compensation insurance policy in effect. |
Sustainable Indicators
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Yes
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The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML or Commerce for topics and language. |
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No
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The utility has adequate written job descriptions for all positions. |
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No
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The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. |
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No
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The utility has an adequate written hiring process. |
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Yes
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The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. |
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Yes
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The utility has a probationary period for new hires that includes orientation, job training/oversight, and evaluations. |
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Yes
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The utility provides training opportunities to staff as needed and available. |
| Personnel System Comment: |
The notice of insurance was posted in plain view in the city office. According to the Notice of Insurance, workers compensation insurance is provided by the Alaska Municipal League Joint Insurance Association from July 1, 2012 to June 30, 2013. A March 27, 2013 check of the Division of Worker's Compensation website confirmed that the policy is in effect.
A copy of the City of Togiak's personnel policies, adopted July 2008, is on file with RUBA staff. Job descriptions have not been adequately written and are not on file with city staff. The utility does have a written evaluation process, however staff state they have not been formally evaluated for several years. The city's current hiring policy is historical and not written. Job notices are posted with the job title and description and interested applicants apply at the city office.
During the most recent visit (January 2013) RUBA staff confirmed that personnel files contained the required forms. The probationary period for new hires is not described in the personnel policy. The utility budget includes an appropriation of $1,000 for staff training.
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Capacity Indicator: Organizational Management
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Essential Indicators
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Yes
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The entity that owns the utility is known; the entity that will operate the utility is set. |
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Yes
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The policy making body is active in policy making of the utility. |
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Yes
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The policy making body enforces utility policy. |
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Yes
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The utility has an adequately trained manager. |
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Yes
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The utility has an adequately trained bookkeeper. |
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Yes
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The utility has an adequately trained operator or operators. |
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Yes
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The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. |
Sustainable Indicators
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Yes
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The utility has adopted an organizational chart that reflects the current structure. |
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No
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The policy making body meets as required. |
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No
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The utility complies with the open meeting act for all meetings. |
| Organizational Management Comment: |
The utility ordinance identified the city as the owner and operator of the utility. Council meeting minutes were not available to confirm that the council reviews the utility policies and rates on an annual basis and makes changes as needed. Past meeting minutes also confirm that the city council takes an active role in enforcing utility policy.
The city administrator fills the role of utility manager. The administrator develops and oversees the utility budget, the utility clerk, and provides monthly reports to the governing body. The city clerk/finance officer has two years experience on the job and has attended a QuickBooks training class sponsored by RUBA. She has a staff of two that assist and maintain the utility accounting system in a professional and timely manner.
The utility is a Class 2 Water Distribution Circulating System with 130 service connections. According to the Alaska Department of Environmental Conservation (ADEC) website, the utility operators have the required level of training and certification for this system.
The city adopted a utility ordinance in February 2004. RUBA staff has a copy of the signed ordinance on file.
The city has an organizational chart adopted in the utility business plan. Regular council meetings are held once a month; special meeting are held as needed. Meeting files and minutes have not been received to confirm that agendas are posted and that all meetings are open to the public as required by the Open Meetings Act.
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Capacity Indicator: Operation of Utility
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Essential Indicators
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Yes
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The utility operator(s) are actively working towards necessary certification. |
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Yes
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The utility has a preventative maintenance plan developed for the existing sanitation facilities. |
Sustainable Indicators
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Yes
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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. |
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Yes
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The utility has a safety manual and holds safety meetings. |
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Yes
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Utility facilities have not suffered any major problems/outages due to management issues that are unresolved. |
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Yes
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The utility is operating at the level of service that was proposed. |
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Yes
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The operator provides status reports to the manager on a routine basis. |
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Yes
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The utility has completed and distributed its "Consumer Confidence Report". |
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No
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The utility is not on the "Significant Non-Complier" (SNC) list. |
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No
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The utility maintains an inventory control list. |
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No
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The utility maintains a critical spare parts list. |
| Operation of Utility Comment: |
According to the Alaska Department of Environmental Conservation (ADEC) website the utility operates a level two water distribution system. There are two primary operators. The provisional certificate of one operator expires 12-31-15 and the other certificate expires 12-31-13. The utility operates a class one wastewater collection system with two primary operators. One certificate expires 12-31-2014 and the other operator certification expires 12-31-2015. The utility operates a wastewater treatment system that is a lagoon and no certificates are required.
The utility states they have a preventive maintenance plan that was developed by the Remote Maintenance Worker. A copy of the plan is not on file with RUBA. The operator reports using a checklist to verify that preventive maintenance is performed. The preventive maintenance plan is posted on the wall of the treatment plant.
The administrator spot checks the utility on a routine basis. The utility has a safety manual on file and holds weekly safety meeting. The administrator receives written updates weekly from the operator. RUBA staff has a copy of the 2011 CCR on file. According to the utility clerk, the CCR was mailed to all residents in June 2012. The utility does not have a published inventory control list. The utility does not have a published critical spare parts list on file. To prevent unnecessary outages an extensive inventory of critical spare parts are kept in stock at the utility and were viewed by RUBA staff.
The system is on the SNC List for: Arsenic compliance based on RAA; three additional quarterly samples are required since Well D was switched out for Well B to calculate RAA . To return to compliance, th system has taken Well D off line in September 2012 due to Arsenic issues and switched to Well B in conjunction to Well A. One quarter of Arsenic sampling for Wells A+B has already been completed, so three additional quarters of sampling will be required to calculate the RAA and RTC the original MCL violation. Known hardware deficiencies are: Arsenic sample results from Well B were well below the MCL. System was finally able to locate and repair a broken service line that drastically reduced the citys water demand. This has allowed the system to switch from the larger output Well D to the smaller output Well B.
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