Quarterly Report: 2014, April - June (Q4), Mountain Village

Community:
Mountain Village 
Staff:
Ken Berlin  
DCRA Regional Office:
Bethel regional office 
Gov't Type:
Second Class City 
Borough:
 
Agreement?
No 
Agreement Date:
6/24/2005 
Entity:
City of Mountain Village 
Population:
862 2013 DCCED Certified Estimate 
Assessment Status:
Assessment Pending 
Assessment Date:
 
Exp Date:
6/26/2005 
Last Updated:
7/8/2014 
Community Sanitation Overview:
The city council operates and maintains the piped water and wastewater system to 165 households and commercial users. This system was built in the 1970s. It has four wells and a pump station from the Yukon river from which it gets its water supply. Water is distributed by two loops, a lower and upper loop. Two main pumps, middle and upper pump houses circulate water. Water is stored in two 100,000 gallon storage tanks. The wastewater system is a Rotating Biological Contractor (RBC) but currently not functional. Wastewater is being drained into the Yukon River. 
RUBA Status & Activities This Qtr:
RUBA staff traveled to Mountain Village and worked with the city manager and finance director of the city of Mountain Village on the FY13 CFS and FY15 budget. While on-site, RUBA staff assisted with work on the FY13 CFS and the FY15 budget. The city has a credit with the state Department of Labor, ESC quarterly reports, but still has unpaid IRS taxes, the city is in contact and working with IRS. The finance director has prior experience as a bookkeeper with the local tribal government and she is getting familiar with the city's operations and finances. The new city clerk has prior experience in the same position and said her duties and responsibilities are coming back to her and she will call me when she needs assistance. Following the on-site, RUBA staff received a call from the finance director for the city of Mountain Village concerning the FY14 budget amendments and also requested a copy of the FY15 CRS application. RUBA staff send her a budget amendment ordinance and explained how it is used and the ten percent rule when making budget amendments. The CRS application was send to her through the internet along with instructions. Throughout the quarter, RUBA staff received a request for a sample ordinance concerning business licenses from the city of Mountain Village, finance director. RUBA staff also answered questions related to the sales tax ordinance and collection of taxes from local businesses. The city is missing 941 reports from past years also FY12 CFS. On June 6, RUBA staff received a call from the city of Mountain Village, city manager concerning one of the city employees who was hired as a temporary but was later hired as permanent status. This employee was given a lower pay than what the city pay scale for the position is listed and this was done in a verbal agreement with the city. This employee was recently hired full time permanent and is being paid the pay scale for the position and now wants back pay for being underpaid while he was on temporary status. Since the city did not document this agreement on paper, staff recommend the city give this employee his back pay and also contact the state Department of Labor and their insurance under AML/JIA. On June 11, RUBA staff received a call from the city manager of the city of Mountain Village who requested a sample non-code ordinance to pass the FY15 budget and also procedures for passing the ordinance. RUBA staff provided the manager with the requested information on how to pass an ordinance and a sample city budget non-code ordinance. RUBA staff received a call from the mayor concerning one of the city council members who has missed two consecutive regular meetings without being excused. The council member, when contacted about the missed meetings refused to come to the city offices and meet with the mayor and explain why he missed the city meetings. RUBA staff recommend the mayor follow the city ordinances concerning roles and responsibilities of elected officials concerning attending city meetings and if the city council member does not show up to bring the matter to the attention of the governing body and attend to the matter as out lined by the city's ordinances. 
RUBA Activities for the Coming Qtr:
RUBA assessment and training for administrative and finance staff.
Scores:
 
Essential Indicators:
26 of 27
Sustainable Indicators:
25 of 27
Total Score:
51 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
The city manager and finance director prepare and manage the City of Mountain Village's financial information. The FY14 budget is on file. Finance reports are current up to May 31, 2014 according to the city council meeting minutes, dated June 10, 2014. Finance reports are QuickBooks Profit and Loss, Budget vs. Actuals. The AVEC billings have a sixty day balance but payments were being made current to the May 2014 billings. The city ordered and received it's fall delivery 2013 and has adequate fuel supply to last until spring barge. The city does not have 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 follows its collection policy and enforces it. The utility customers are billed on a monthly basis. Accounting system is in QuickBooks Pro. A chart of accounts is on file. Monthly bank reconciliations are completed every month. A purchasing system is in place and used by administration.

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.
No 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
The payroll system is all in QuickBooks. IRS confirmed non-compliance on June 12, 2014 for a small balance due for the 941 2014/03. State DOL verified compliance on June 25, 2014. No tax liens recorded on the March-April 2014 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 by the Alaska Municipal League Joint Insurance Association, Inc. effective to July 2014. The city has a personnel policies and procedures handbook that was prepared by Alaska Municipal League Joint Insurance Association.

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 City of Mountain Village owns and operates the piped water and wastewater system. The city council is the policy making body for the utility. The city manager was hired in July 2013 and is getting confident in her job but needs more training. The finance director was hired in February 2014 and is experienced with QuickBooks. She is getting familiar with the city's finances and operations. The water and wastewaster operator works full time and is adequately trained and is certified. The city has adopted a water utility ordinance that gives it the authority to operate, and it covers most of the aspects needed in a utility ordinance. Along with a collection policy, the ordinance includes policies on service area, level of service, customer agreements, the utility's responsibilities, the customers' responsibilities, billing procedures, shut-off procedures, and penalties for violating provisions of the ordinance. This ordinance was passed in 1989 and is being updated.

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.
No The utility has completed and distributed its "Consumer Confidence Report".
Yes 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
The operators are trained and has necessary certification to operate the current utility. AMLJIA holds monthly safety meetings with the city staff. The preventative maintenance plan, inventory control list and critical spare parts list are in the file. The June 20, 13 CCR report is not on file with DEC, but the YKHC/OEH had just send the CCR documents to the city and the city needs to certify and submit to DEC. The city is not on the April SNC listing.