Quarterly Report: 2011, October - December (Q2), Angoon

Community:
Angoon 
Staff:
Glen Hamburg  
DCRA Regional Office:
 
Gov't Type:
Second Class City 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
City of Angoon 
Population:
442  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
2/2/2011 
Community Sanitation Overview:
The City of Angoon is located in Southeast Alaska on Admiralty Island and is connected via the Alaska Marine Highway System. The city operates and manages a piped water and sewer system. Surface water for the system is derived from the Tillinghast Lake Reservoir before it is treated and the piped throughout the community. Greater than 95% of homes in the city are fully plumbed. Piped sewage is processed at a secondary treatment plant that flows to an ocean outfall. The City of Angoon also provides a garbage collection service. On a weekly basis, refuse is collected and deposited at a municipal landfill located approximately two miles from the city. Electrical service for Angoon is provided by the Inside Passage Electric Cooperative (IPEC). 
RUBA Status & Activities This Qtr:
This quarter, RUBA staff continued to work with city staff and city officials in Angoon to ensure that elections, council meetings, and other city functions were conducted according to state and municipal guidelines. RUBA staff assisted the community in holding its annual municipal elections in October, as well as a special election in November. Further, RUBA staff met with the mayor to resolve personnel matters and attended a city council meeting via teleconference to help answer questions regarding Alaska's Open Meetings Act and the powers of city officials. Assisting the City of Angoon with these fundamental civic operations has been a primary focus of RUBA staff this quarter in an effort to build decision-making capacity within the city. With a functioning governing body, the city will be able to address important issues related to its utility services. 
RUBA Activities for the Coming Qtr:
At the request of the mayor, RUBA staff has agreed to conduct a two-day newly-elected officials training for the Angoon City Council on January 11 and 12, 2011. RUBA staff hopes to also use the trip to collect more detailed financial and accounting records from the city and to further assess the city's personnel system and utility operations.
Scores:
 
Essential Indicators:
18 of 27
Sustainable Indicators:
12 of 27
Total Score:
30 of 54

Finances

Essential Indicators
Answer Question
No 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.
No 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.
No A monthly manager's report is prepared.
No Budget amendments are completed and adopted as necessary.
Finances Comments
The City of Angoon adopted its FY11 budget on September 20 for the period of July 1, 2010 to June 30, 2011. The budget appropriately separates the revenues and expenditures for city's various departments and enterprises. While Angoon's FY11 is indeed balanced, the budgeted expenditures for water, sewer, and garbage services are approximately 12% less than the amount budgeted for these services in FY10. This reduction in funding includes significant cuts to supply expenses, wages, and testing. Compared to FY10, the FY11 budget provides 66% less funding for sewer supplies, 40% less funding for the water plant's electricity and fuel oil needs, and no funding for supplies for the garbage collection and landfill service. RUBA staff has not been able to confirm with city officials that the figures provided in the utilities section of the budget are realistic. However, the city clerk has assured RUBA staff that the city has the funds available to purchase critical items such as fuel, which is purchased as needed from Angoon Oil and Gas and stored in a 100-gallon fuel tank. Projected utility expenses exceed the projected revenues generated by user fees in the FY11 budget by $106,202, a deficit filled with funds from the city's general fund. So far in FY11, the City of Angoon has generated an average of $4,600 in revenue from municipal services each month. Financial reports completed to the end of November 2010 indicate that while the city is operating within its adopted budget, expenses for the five-month period from July to November 2010 have consumed a significant amount of the city's operating revenues for the year.

Accounting Systems

Essential Indicators
Answer Question
No 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.
No 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 Angoon uses QuickBooks software as part of its accounting system. QuickBooks is used to track utility customers and to maintain both the accounts receivable and accounts payable systems. Title 13 of the Angoon Municipal Code (AMC) outlines the city's utility bill collection policy. According to that policy, bills are to be sent out by the tenth day of each month. Bills are considered delinquent if payment is not received by the last day of that month. Title 13 also provides a clear warning, disconnection, and repayment plan for delinquent customers. However, the city continues to struggle with enforcing these policies. Indeed, the city has taken some action and is attempting to follow the provisions contained in its utility ordinance. As a result of these efforts, the utility has improved its collections rate, yet RUBA staff has not been able to acquire exact figures on the current number of delinquent accounts or the total of accounts receivable. Water, sewer, and garbage service rates in Angoon are charged according to a detailed item price list with various customer categories. Generally, those categories consist of residential, elderly, business, and public facility classes. Each class pays a particular flat rate for the three utility services as outlined in the price list and city staff are eligible to have utility fees deducted directed from their paycheck.

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.
No 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 city's bookkeeper uses QuickBooks to calculate, track, and report its payroll tax liabilities. The IRS's taxpayer Advocacy Office has confirmed on December 30 that Angoon is current in its federal tax reports and filings and the IRS has no liens against the city as of December 2010. The Alaska Department of Labor and Workforce Development confirmed on December 27 that all state tax payments are current as well.

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.
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 currently carries workers compensation insurance through AMLJIA. The policy runs through June 30, 2011 and covers work-related accidents and occupational diseases up to the Alaska statutory limits for each occurrence. The utility has well organized personnel files containing the necessary INS forms, IRS forms, acceptance letters and any disciplinary actions. However, the utility is lacking written job descriptions and a formal evaluation and hiring process.

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.
No The policy making body enforces utility policy.
Yes The utility has an adequately trained manager.
Yes The utility has an adequately trained bookkeeper.
No 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
The city does not have a written organizational chart that reflects the current municipal structure, nor does it fully enforce the collections policy set forth under Title 13 of the Angoon Municipal Code (AMC). The city council does however meet on the third Tuesday of each month as required by the AMC. In order to faithfully comply with Alaska's Open Meetings Act, the city clerk posts notices for these meetings at least twenty-four hours in advance in three public places. In the event that reasonable public notice hasn't been given prior to a public meeting, RUBA staff has worked with city officials to reschedule. Angoon's water utility is categorized as a Class 2 system. However, the lead operator, Joseph Thompson, is only certified to operate a Class 1 system and that certification is set to expire at the end of December 2010. Mr. Thompson is also not fully employed by the City of Angoon, but rather is serving as a 'volunteer' operator until the city hires a fully-certified employee. The city has a second water operator available, though RUBA staff has confirmed with the Department of Environmental Conservation (DEC) that this operator currently has no certification, having lost his Class 1 Provisional endorsement for not having completed the necessary Continued Education Units (CEUs). The DEC will work with the uncertified operator to see that his certification is reinstated.

Operation of Utility

Essential Indicators
Answer Question
No 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
No 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.
No 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
Angoon's water utility remains on the EPA's Significant Non-Compliance (SNC) list for high levels of trihalomethanes and haloacetic acid disinfectant byproducts. Further sampling will determine whether the utility can be removed from the list or whether the utility will require treatment upgrades. A safety manual is available on site and safety meetings are held occasionally. However, the utility operators have expressed several concerns with safety including the physical condition of the water treatment plant, exposure to chemicals, and a general lack of communication outside of the city offices. The operators do not maintain an inventory control or critical spare parts list. There are also very few spare parts on hand and there is an inadequate level of supplies and chemicals.