Quarterly Report: 2011, January - March (Q3), Adak

Community:
Adak 
Staff:
Brice Eningowuk  
DCRA Regional Office:
 
Gov't Type:
Second Class City 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
City of Adak 
Population:
136  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
5/4/2011 
Community Sanitation Overview:
The City of Adak operates and manages a piped water and sewer system. The city council is the policy making body for the utility. The surface water is derived from Lake Bonnie Rose, which is located approximately three miles southwest of the core town site. The water utility is operated as a Class A public water system and operates under filtration avoidance (Public Water System Identification Number 260595); therefore, the only treatment provided is chlorination with required detention for disinfection. Water is treated, stored in two 450,000-gallon tanks, and piped to facilities and housing units. If needed, two 500,000-gallon storage tanks provide additional water storage. The wastewater treatment system discharges through a marine outfall line to Kuluk Bay. One-hundred percent of homes have complete plumbing. The City collects and deposits refuse at a municipal landfill, Roberts Landfill, which is a permitted Class Three landfill with balefill. The City also provides road maintenance, airport maintenance, and a small boat harbor facility. Bulk fuel is provided by the Aleut Corporation, which maintains nine underground tanks with a total capacity of approximately 18,000,000 gallons of marine diesel, gasoline, and jet fuel. Cable television is provided by Adak Eagle Enterprises; electricity is provided by TDX Adak Generating, LLC. A feasibility study to provide recommendations for water and wastewater utility downsizing, upgrading, and future utility project planning for the City of Adak is underway with the Alaska Department of Environmental Conservation: Village Safe Water. As of April 2010 the feasibility study is 95% complete. The study is contracted to the Bristol Environmental and Engineering Services Corporation, which is located in Anchorage. Although the water treatment plant is operating and provides adequate potable water, the City of Adak is attempting to address numerous water and wastewater utility concerns including aging infrastructure, chronic leakage, and maintaining a water/wastewater utility designed a large user/customer base as the military installation has been closed and the population has dropped dramatically. The City of Adak uses the fiscal year that starts on July 1. 
RUBA Status & Activities This Qtr:
On March 15, 2011, Anchorage LGS Staff contacted the City of Adak and was told that the city manager was on travel status and in Washington D.C. with the mayor of Adak. Anchorage LGS inquired about the current budget and the taxes revenue the city incurs from the fuel transfer and sales taxes. There is SC 99, An Act relating to a heating fuel energy relief program; and providing for an effective date, that will have an impact on the sales tax revenue. The FY 12 City of Adak budget states that there is a $496,000 in sales tax and $56,000 in fuel transfer tax revenue. The manager has stated that this bill, if passed, will benefit the community and hopefully increase the economy for the residents of Adak. Information was received that the fish plant processors will resume operations. That will provide additional revenue for the city and increase the water, wastewater activity. 
RUBA Activities for the Coming Qtr:
Maintain contact with the City of Adak and provide assistance as requested.
Scores:
 
Essential Indicators:
26 of 26
Sustainable Indicators:
20 of 27
Total Score:
46 of 53

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 of Adak adopted an amended FY11 utility budget on December 15, 2010. There is a utility budget of $81,428 and and the expenses are $81,428. A transfer from the general fund is properly documented at an amount of $6,628 and also a transfer in the amount of $14,800 from the garbage service was also properly documented.

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 collection policy for the Adak utilities is located in Chapter 4.11 of the City of Adak Code of Ordinances. The City of Adak utilizes Quick Books Pro 2009 for the accounts payable, accounts receivable and payroll entries. The cash disbursement, cash receipt system is also entered in QuickBooks and a manual receipt is issued upon payment received. Adak also has a firm contracted to handle all payroll tax liabilities along with the QuickBooks entries. A chart of accounts was generated from QuickBooks that shows all income, expenses, liabilities, assets, accounts receivable/payable and bank accounts. Monthly bank reconciliations are compelted by the clerk and manager, with cash flow statements provided to the council. There is a purchasing policy in the City of Adak Code of Ordinances, Chapter 4.05.

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.
N/A 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 tax authorization report from April 15, 2011, states that the city is in compliance with federal tax filing, federal tax deposits and has no lien recorded. They are deemed compliant at this time. State Employment Security Division (ESC) has granted a tax clearance for the City of Adak in March 25, 2011. They are deemed compliant at this time.

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.
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 Adak has workers' compensation with Alaska Municipal League Joint Insurance Association (AMLJIA) from July 1, 2010 to July 1, 2011. Title V in the code of ordinances provides the hiring process and the probationary period for the city. The manager has the authority to appoint, supervise, and remove employees with council approval. The probationary period is six months. The manager has all employee folders filed in a fireproof locket cabinet within the city office. Training is offered to employees; due to the cost of travel, this is not always available. The city manager is working on updating job descriptions and the evaluation process with AML.

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 owns the utility and updates the ordinances as needed. The council directs employees to enforce the policies and ordinances. The utility manager is the public works director. The director updates the city manager as requested and oversees the operator that has passed the water treatment and distribution exams in the past but allowed the certification to lapse. The operator and city plan for the operator to retake the course and exam as he had excelled in the past. The council meets the first and third Wednesday of each month and has a posting notice in ordinance of 24 hours. The city has an organizational chart and is under review with Anchorage RUBA staff to verify placement of each employee.

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
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.
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.
No The operator provides status reports to the manager on a routine basis.
Yes The utility has completed and distributed its "Consumer Confidence Report".
Yes 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
The public works director managed a privately owned water plant in Anchor Point for 12 years before moving to Adak. The water operator has a Provisional Water Distribution certification due to expire December 31, 2011. The public works director provided information on the cost of chlorine in the meeting on November 17, 2010 to the council and addressed the issue of the amount of chlorine that had to remain in the system to disinfect the water. The manager stated that a safety meeting was held recently with all city employees and this documented in the minutes of the meeting. No major incidents have occurred with the utility. Village Safe Water did upgrade PRV-1 recently. There is a possible line loss as there are areas within the service area that that have connections to vacant and unusable housing. The public works director presented updates to the manager and council in a meeting on November 17, 2010. RUBA staff requested the minutes from that meeting. The water system is not on the SNC list, dated January 23, 2011. The city manager is working on finalizing a critical spare parts and inventory lists as these are in draft form. The Navy did leave behind an excess amount of parts but it is currently unorganized and needs to be inventoried.