Quarterly Report: 2014, October - December (Q2), Kachemak Selo

Community:
Kachemak Selo 
Staff:
Glen Hamburg  
DCRA Regional Office:
Anchorage 
Gov't Type:
Water Operator 
Borough:
Kenai Peninsula Borough 
Agreement?
No 
Agreement Date:
 
Entity:
The Village Of Kachemak Selo Water Company Incorporated 
Population:
165  
Assessment Status:
Assessment Completed 
Assessment Date:
9/25/2008 
Exp Date:
 
Last Updated:
12/23/2013 
Community Sanitation Overview:
Kachemak Selo is an unincorporated village of approximately 164 Russian Orthodox Old Believers, 20 miles east of Homer on Kachemak Bay. The village is in an area with limited surface and ground water resources. Kachemak Selo has a Class A ground water system serving 27 occupied homes and 3 vacant houses. A Class C system serves five homes, and two homes are served by a private water system. Wastewater systems are individual onsite disposal systems. None of the water systems are approved for operation by ADEC. 
RUBA Status & Activities This Qtr:
New RUBA staff was assigned to Kachemak Selo on December 2, 2013. This and previous RUBA staff have made multiple unsuccessful attempts to contact the community. The information below is not necessarily a depiction of the community's current status in practice, but rather reflects the fact that insufficient supporting documentation has been provided to substantiate relevant indicators. Once contact in made with the community and supporting documentation provided, the indicators and comments will be updated as appropriate. 
RUBA Activities for the Coming Qtr:
RUBA staff will continue to try and contact the community to provide assistance upon request.
Scores:
 
Essential Indicators:
2 of 26
Sustainable Indicators:
1 of 27
Total Score:
3 of 53

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.
N/A 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.
No A monthly manager's report is prepared.
No Budget amendments are completed and adopted as necessary.
Finances Comments
Kachemak Selo utilizes Aurora Taxes and Accounting, Inc. for bookkeeping services. The contractor assisted the community in developing their non-profit status and an adopted budget for 2009. The name of the organization is 'The Village of Kachemak Selo Cooperative Water Company Incorporated.' The utility's budget is for the current water system. As the project grows, changes will be made and the budget adjusted accordingly. A monthly financial statement is not prepared because accounting and billing systems have not been set up. When these systems are in place, the statement will be developed by Aurora Taxes, who assisted with their current adopted budget. Without a financial report, it is unclear whether sufficient revenues are being collected or whether revenues and expenditures are tracking with the budget. Electricity is supplied by the Homer Electric Association and the trash is handled by the Kenai Peninsula Borough refuse transfer station. Currently, the system does not have need for fuel to run the utility. The ultraviolet light system runs off electricity supplied by the school. Payment of electricity is made directly from the school lease and paid directly to Homer Electric Association for the community. Supporting documentation has not been provided to determine whether electricity bills are current. A monthly manager's report is verbally provided on expenses and needs for the utility but not documented in the meeting minutes. The community does have a set budget and takes care of whatever needs they may have at the time.

Accounting Systems

Essential Indicators
Answer Question
No The utility has adopted a collection policy and actively follows it.
No The utility bills customers on a regular basis.
No An accounts receivable system is in place which tracks customers and reports past due accounts and amounts.
No An accounts payable system is in place.
No The payroll system correctly calculates payroll and keeps records.
No A cash receipt system is in place that records incoming money and how it was spent.
No The utility has a cash disbursement system that records how money was spent.
Sustainable Indicators
Answer Question
No 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
No current information about the community’s accounting processes have been provided to RUBA staff, and therefore all relevant indicators have been marked 'No.'

Tax Problems

Essential Indicators
Answer Question
No The utility has a system to accurately calculate, track, and report payroll tax liabilities.
No The utility is current on filing tax reports.
No 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 community has not provided RUBA staff with authorization to verify federal tax filings and deposits, and there is not sufficient information available to determine whether employment security (ESC) taxes are current either. However, the community is not listed on in the September-October 2013 Lien Watch report.

Personnel System

Essential Indicators
Answer Question
No The utility has a posted workers compensation insurance policy in effect.
Sustainable Indicators
Answer Question
No 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.
No 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.
No The utility provides training opportunities to staff as needed and available.
Personnel System Comments
The utility does not have a worker's compensation policy in effect, possibly because it has no paid employees. No other information about its personnel system has been made available.

Organizational Management

Essential Indicators
Answer Question
Yes The entity that owns the utility is known; the entity that will operate the utility is set.
No The policy making body is active in policy making of the utility.
No The policy making body enforces utility policy.
No 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.
No 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.
No The policy making body meets as required.
No The utility complies with the open meeting act for all meetings.
Organizational Management Comments
The community provided Articles of Incorporation and Amendment for non-profit status as documentation that the utility is owned and operated by the community. Currently, the utility does not have a local bookkeeper and these services are provided by Aurora Taxes and Accounting in Anchor Point. Other indicators in this section have been marked 'No' until sufficient information is provided to RUBA staff.

Operation of Utility

Essential Indicators
Answer Question
No The utility operator(s) are actively working towards necessary certification.
No 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.
No 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.
No 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.
No 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 utility has not reported to have a preventative maintenance plan developed for the existing utility and it is not clear whether there are operators in the community working toward necessary certification. The utility is not listed on the October 2013 Significant Non-Complier (SNC) list.