Quarterly Report: 2010, January - March (Q3), McGrath

Community:
McGrath 
Staff:
Tammy Helms  
DCRA Regional Office:
 
Gov't Type:
Second Class City 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
City of McGrath 
Population:
315  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
5/10/2010 
Community Sanitation Overview:
McGrath operates a piped water system that serves nearly all 178 households; a few homes have individual wells or haul water. The FAA operates its own water system. The majority of residents use individual septic tanks; a limited City sewage system serves approximately 34 homes. Funds have been requested to expand the piped sewer system to the 144 houses and businesses currently using septic tanks. A private firm, McGrath Trash and Refuse, collects refuse for disposal at the City landfill. 
RUBA Status & Activities This Qtr:
RUBA staff has maintained contacted the administrator for the City of McGrath to offer assistance as needed. 
RUBA Activities for the Coming Qtr:
RUBA staff will continue work with the City staff as requested by the Administrator and Council.
Scores:
 
Essential Indicators:
27 of 27
Sustainable Indicators:
25 of 27
Total Score:
52 of 54

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
Monthly financial reports are prepared and submitted to the Council at the regularly scheduled meeting. The reports are created in QuickBooks, then exported to excel to input additional information, so all needed documentation is on one sheet. The utility receives power from McGrath Light and Power. All electricity bills are paid on time for the utility. Crowley Marine Fuel operates the fuel distribution/sales. In the past year they have had some difficulty with fuel deliveries to the Community. The new water and sewer revenues are sufficient to cover operating expenses and to set funds aside for a repair and replacement account.

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
The City of McGrath has an adopted collection policy and follows it actively. If customers do not pay within sixty days of the billing date their water is turned off until payment is received. Customers are billed by the 7th of each month. The monthly statements are on one piece of paper but are itemized separately. The City of McGrath utilizes QuickBooks for accounts receivable, accounts payable and payroll. The system has been a tool in keeping the City of McGrath's finances reliable. The chart of accounts identifies fixed assets within the program. The City Council implements a purchasing system that requires prior approval and a purchase order. The Administrator must approve orders.

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.
Yes 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
As stated previously the City of McGrath has a QuickBooks accounting system that tracks, calculates and reports payroll tax liabilities. Currently, the IRS Tax Advocate has reported the City of McGrath is in compliance with the IRS. State Department of Labor also indicates the City Council is in compliance.

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 of McGrath has a posted workers compensation insurance policy in effect from 7/1/09 to 6/30/10. They work with AML/JIA for insurance. The City of McGrath has a hiring process written within the personnel policy. Jobs are posted in six community areas and remain open for a minimum of ten days. The City of McGrath has a 90 day probationary period for employees. Training opportunities to staff are provided as funds allow or opportunities by other sponsors come available such as Tanana Chiefs Conference (TCC).

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
The current utility operator is trained for this system. He was Operator In Training (OIT) certified but the certification has since lapsed. He is once again working toward becoming certified. The City of McGrath is an active policy making body that enforces set policies. Currently, the City is reviewing and revising the water ordinance to meet the new needs and goals for the community. The City Administrator was awarded the 2005 AWWMA System Manager of the Year. She has also been recognized by the Tanana Chiefs Conference for outstanding dedication to the McGrath water system.

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.
Yes The utility maintains an inventory control list.
Yes The utility maintains a critical spare parts list.
Operation of Utility Comments
As stated previously the current utility operator was OIT certified but the certification has since expired. He is once again working toward becoming certified. The utility has a preventative maintenance plan developed for the facility. The utility operator reports to the Mayor or Administrator monthly to update them on the water system. The utility has currently not met all required drinking water regulations. City of McGrath is currently working with DEC and TCC to correct the issue. They are on the SNC list for monitoring violations for Stage one and SWTR. The utility operator and Council keep inventory control and critical spare parts lists within the QuickBooks accounting system. The City of McGrath distributed a copy of the 2007 CCR to the community. The City of McGrath works with AML/JIA to hold monthly safety meetings. They also provide a safety manual. AML/JIA provides safety material for the meetings free of cost as part of their risk management program.