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

Community:
Shaktoolik 
Staff:
Steve Brock  
DCRA Regional Office:
 
Gov't Type:
Second Class City 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
City of Shaktoolik 
Population:
214  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
5/10/2010 
Community Sanitation Overview:
Water is pumped three miles from the Togoomenik River to the pumphouse, where it is treated and stored in a 848,000-gallon insulated tank adjacent to the washeteria. A piped water and sewage collection system services most homes. 75% of households have complete plumbing and kitchen facilities. The school is connected to City water, and has received funding to develop a sewage treatment system to serve the entire community. The City burns refuse in an incinerator. The landfill needs to be relocated; the current site is not permitted. 
RUBA Status & Activities This Qtr:
At the request ot the City of Shaktoolik, Nome RUBA staff traveled to the community on January 21, 2010, to conduct a RUBA management assessment. The assessment is a condition for funding of an on-going sanitation project to insulate a 100,000 gallon water storage tank. The city clerk has worked approximately 12 years and is very familiar with the management of the city office and water/wastewater services. Financial records are kept manually using the Division of Community and Regional Affairs (DCRA) Model Financial Recordkeeping System taught by Nome RUBA staff. The City of Shaktoolik currently does not meet all RUBA essential indicators. The city council needs to amend the FY10 budget to more accurately reflect the expected revenues for the water and wastewater department. Monthly finance reports have not been generated or provided to the city council. RUBA recommended that the water and wastewater employees attend the AMLJIA monthly safety meetings telephonically. RUBA staff will assit the city staff in changing procedures and meeting all unmet essential and sustainable management indicators. 
RUBA Activities for the Coming Qtr:
RUBA staff will work with the City to meet the essential indicators identified: ' Work with RUBA staff on preparing and amending budgets in the near future ' Prepare utility budget by including all anticipated revenues and expenditures ' Resume preparing and making monthly financial report The sustainable indicators identified are: ' All the city/utility employees should attend the insurance providers (AML-JIA) monthly telephonic safety meetings ' Work with the Remote Maintenance Worker (RMW) to have the utility get off the Significant Non-Complier (SNC) list for Stage 1 violation The new RUBA staff, Steve Brock, has been assigned to work with the City of Shaktoolik and will work with the city to meet the essential indicators.
Scores:
 
Essential Indicators:
23 of 27
Sustainable Indicators:
20 of 27
Total Score:
43 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.
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.
No 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.
No YTD revenues are at a level equal to or above those budgeted.
No 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 FY10 budget was prepared and completed in a timely manner. However, the revenues from the water and sewer utility department were set at $47,000 and the expenditures were identified as $71,000. No subsidy for the excess expenditures was identified. RUBA staff reviewed and identified the number of residential, commercial and school customers and came up with $76,000 total revenue for the department. The city clerk stated that she was making monthly financial reports up until a few months ago, but has not done one lately. She said she uses the Excel spreadsheet format for her financial reports. RUBA will monitor her efforts and help with creating the reports.

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.
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 clerk has had basic QuickBooks Pro training in the past, but does not currently use it for city accounting. She bills the water and sewer utility customers manually. She has an excellent and basic customer ledger filing system. All record keeping, financial, payroll and payroll reports, are done manually.

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
The city is still listed on the latest Lien Watch as owing for Employment Security Contribution (ESC) taxes, but actually has a large amount of credit with Employment Security Division. RUBA will assist the clerk in having the recorded lien released. ESD had told the city clerk not to send any payments with the 4th quarter ESC report but she did anyway. So now, the city has a higher credit with ESD. The IRS has deemed the city compliant and states that it is current with 941 quarterly reports and payments. payments.

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 has one of the oldest and adequately used personnel policies in the Norton Sound region. All city employees, including the utility's use the city's personnel policies. The city clerk has worked as the utility clerk and now as city clerk. The duties of the city clerk and the utility clerk positions were combined to save money.

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 clerk informs the city council (the governing body for the utility) of any past due customers two or more months and the council then authorizes the utility operator to disconnect the water and sewer utility customers. The last time customers were disconnected was in September, 2009. The water plant operator is certified to Provisional 1 level with Water Treatment training and has earned other certifications.

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.
No 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
The city is on the Significant Non-Complier list for Stage 1 violations. The city utility operator is working with Analictica and Remote Maintenance Worker to get of the SNC list.