Quarterly Report: 2013, July - September (Q1), 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:
331  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
10/31/2012 
Community Sanitation Overview:
The City of Adak operates and manages a piped water and wastewater 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; therefore, the only treatment provided is chlorination with required detention for disinfection. Water is treated, stored in four tanks totaling 1.9 million gallons of storage and piped to facilities and housing units. 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 Husky Landfill, the municipal landfill, which is a permitted class III landfill. Bulk fuel is provided by the Adak Petroleum (a subsidiary of the Aleut Corporation), which maintains nine underground tanks with a total capacity of approximately 18 million gallons of marine diesel, gasoline, and jet fuel. Electricity is provided, via diesel generation, by TDX Adak Generating. A feasibility study to provide recommendations for water and wastewater utility downsizing, upgrading, and future utility project planning for the City of Adak was completed in 2004 with two updates, the most recent being in 2011 with the Alaska Department of Environmental Conservation: Village Safe Water. The study was contracted to the Anchorage based Bristol Environmental and Engineering Services Corporation. 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 an aging infrastructure, chronic line loss, and maintaining a water/wastewater utility designed for a large user base. The infrastructure was originally constructed for a military installation with a population of 6,000 that dropped dramatically after the closure of the military base.  
RUBA Status & Activities This Qtr:
On July 9, Anchorage RUBA staff finalized the Adak RUBA assessment of management capacity of the city water utility. The Adak Water system is currently meeting all essential indicators. There are three sustainable indicators that have not been met in the area of 'Operation of Utility'. The water utility is on the SNC list for April 2012, the utility does not have an inventory control list nor a critical spare parts list established. The assessment was sent via email to the city , RUBA Program Manager, RUBA supervisor and the VSW Engineer on record on July 10, 2012. A hard copy has also been sent to the city on July 10, 2012. 
RUBA Activities for the Coming Qtr:
Anchorage RUBA staff will maintain contact with the City of Adak and provide assistance as requested.
Scores:
 
Essential Indicators:
26 of 26
Sustainable Indicators:
25 of 27
Total Score:
51 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
Yes 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 the FY13 budget on June 20, 2012. The utility budget anticipates $152,140 in revenues and expenses of $150,783. Transfers from the solid waste, General Funds, and enterprise funds are listed within the budgets as subsidies to the water/wastewater utility. Utility bills from TDX Adak show the city is current with power utility bills. The city receives fuel from the Aleut Enterprise for public facilities on an as needed basis. There is a Water/Wastewater Replacement line item in the Maintenance Reserves in the amount of $20,000. Monthly financial statements were received and show budget vs. actual of all revenue and expenditures for the city and that the city is maintaining the water utility through user fees and subsidy from other funds. The manager provides financial information to the council at council meetings; budget amendments are done as necessary.

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 is located in Chapter 4.11 of the City of Adak Code of Ordinances. Water, wastewater, and garbage bills are generated and sent to utility customers at the end of each month. The city utilizes QuickBooks Pro 2012 for the accounts payable, accounts receivable and payroll entries. The cash disbursement and cash receipt system is also entered in QuickBooks and a manual receipt is issued upon payment received. The city also has an accounting firm contracted to handle all payroll tax liabilities along with the QuickBooks entries. The account listing generated from QuickBooks shows all income, expenses, liabilities, assets, accounts receivable/payable, and bank accounts. Monthly bank reconciliations are completed using QuickBooks. 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 IRS report dated September 21, 2012 shows that the city is compliant with required federal tax deposits and filing and has no record of a lien. The Department of Labor and Workforce Development, Employment Security Divisions report from September 24, 2012 states that the city is in compliance with state tax filing and deposits and is not on the July-August 2012 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 of Adak has workers compensation with Alaska Municipal League Joint Insurance Association (AMLJIA) from July 1, 2012 to July 1, 2013. Title V in the Adak Code of Ordinances provides the hiring process and a six month probationary period for new city employees. The manager has the authority to appoint, supervise, and remove employees with council approval. The city is working with AMLJIA to update the personnel policies. The manager has all employee folders with I-9s, applications and letters of acceptance filed in a fireproof locked 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 AMLJIA.

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 and operates under the Adak Code of Ordinances, Title 2, Chapter 25: Adak Utilities. The council directs employees to enforce the policies and ordinances. The utility manager is the city manager. The city has a public works foreman that oversees the water operator. The public works staff (water operator) updates the city manager almost daily. The operator is certified in small water systems treated due to expire on December 31, 2013. The city currently has a bookkeeper, who is planning to move off island in July 2012. The city has posted the position and will begin the hiring process once the posting has closed. The city has an organizational chart which is shown in the United States Department of Agriculture business plan. The council meets the first and third Wednesday of each month and posts meeting notices for the public.

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".
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 water operator is certified in Small Water Systems Treated, due to expire on December 31, 2013. No major incidents have occurred with the utility. There is possible line loss as there are areas within the service area that have connections to vacant and unusable housing. The utility provides updates to the manager on an as needed basis. The water system is not on the July 2012 SNC list. The city manager is working on finalizing a critical spare parts and inventory lists as these are in draft form. The Navy left behind an excess amount of parts but these are currently not organized and need to be inventoried.