Quarterly Report: 2014, April - June (Q4), Seldovia

Community:
Seldovia 
Staff:
Roberta Eleazer  
DCRA Regional Office:
Anchorage regional office 
Gov't Type:
First Class City 
Borough:
Kenai Peninsula Borough 
Agreement?
No 
Agreement Date:
 
Entity:
City of Seldovia 
Population:
245 2013 DCCED Certified Estimate 
Assessment Status:
Assessment Completed 
Assessment Date:
7/18/2012 
Exp Date:
 
Last Updated:
6/20/2014 
Community Sanitation Overview:
Seldovia, a city of approximately 255 residents, is located on the Kenai Peninsula, on the south shore of Kachemak Bay. Seldovia is accessible by small plane, ferry, and private boat. Water is derived from the Fish Creek Reservoir and is treated, stored in a tank, and distributed via water mains. Wastewater is piped to a community septic tank for primary treatment, then discharged to an ocean outfall. Two-hundred and four (204) homes and facilities are served by the system; all homes are completely plumbed. The community is categorized as a Class 1 System in water and wastewater treatment and distribution. Seldovia is currently engaged in a water and wastewater pipe replacement and upgrade project funded by Village Safe Water (VSW). The construction of the filtation plant is fully funded and the expected completion date is late 2016, 2017.  
RUBA Status & Activities This Qtr:
RUBA staff advised the administrative assistant of the August 26 registration date for the October Water Treatment exam. Two operators from Seldovia attended the April class and passed the water distribution exam. The operator's will test for the certification in October. RUBA staff reviewed the RUBA Q2 report with Seldovia water operators.  
RUBA Activities for the Coming Qtr:
RUBA staff will work with the utility clerk and the water/wastewater facility operators to develop a checklist and reporting form which can be used for monthly operations and maintenance reports. RUBA staff will schedule a date to conduct an on-site assessment.
Scores:
 
Essential Indicators:
25 of 26
Sustainable Indicators:
23 of 27
Total Score:
48 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 council is the governing body of the utility and meets as required by city ordinance. The FY14 budget was reviewed and adopted by the council on June 26. The budget separates utility enterprises from the general budget, allowing a clear financial picture of the utility services the city provides. Water utility rates typically cover operating expenses, without additional subsidy. With the community's construction of a new water filtration plant, costs of supplying water may need to be recalculated. Village Safe Water will submit financial projections to the city as an aspect of project planning. Seldovia will need to determine whether rate increases, an empowered collections policy, and/or subsidization from other funds will accommodate any increased expense.

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.
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
Seldovia has adopted a utility ordinance which includes a collections policy; this requires providing notice to past-due accounts and disconnecting service. The city council is engaged in committed discussion toward initiating disconnection of water utility customers for non-payment. The council is also considering amending the current utility ordinance to clarify responsibility for utility payment in landlord/tenant situations. The council has progressed on the collection of past due bills. Accounting systems are in place; Seldovia bookkeeping staff use QuickBooks, and are confident in its use. Oversight and controls for purchases are developed. The city office is well staffed, with a full-time city clerk, a full-time bookkeeper, and a part-time bookkeeping assistant. All three display competency in their work, and have a comprehensive understanding of the city's financial systems. Bank reconciliations are made monthly. The city has recently arranged to electronically scan checks for deposit; this will streamline an already efficient system. Decision making related to disbursement in excess of budgeted amounts is determined by the city manager.

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 June 17, 2014 indicates the the City of Seldovia is in compliance with IRS tax deposits . The Department of Labor and Workforce Development, Employment Security Divisions report from June 20, 2014 states the City of Seldovia is in compliance. Seldovia is not on the April-May 2014 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.
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
Seldovia has workers compensation insurance with Alaska Municipal League Joint Insurance Association (AMLJIA) as of June 20, 2014. The community's adopted personnel policy is comprehensive. New hires have a ninety day probationary period. Employees receive retirement, paid leave, and paid holidays. Public works employees (as well as police and harbor employees) are members of IBEW 457, and so are paid to union scale. Job descriptions are maintained for all positions. Individual personnel folders contain all required information, including I-9s, job applications, and personnel actions. There is not an active, scheduled practice of regular employee evaluation and feedback. While policy specifies job evaluation as an aspect of an employee probationary period, this is irregularly followed in practice. RUBA staff encouraged the development of once yearly formal employee evaluation, to include both written and verbal feedback. No money has been budgeted in FY13 for costs of administrative employee travel to trainings, except for the city manager.

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
On July 25, 2012 the city council adopted a ordinance amending TITLE 13, Utilities of the Seldovia Municipal Code adding to section 13.72.050, non-payment - service disconnect. The ordinance states that any person failing to pay a utility bill 60 days past the date of billing will be served notice that their utility service will be disconnected within five (5) business days of Notification of Disconnect via certified mail. The city council meets twice a month, and has many experienced council members. The council is adequately involved in discussion and shared decision making related to utility management. The city manager serves as utility manager, with regular input from the public works manager, who is the primary water operator. The public works manager reports a good working relationship, with ample communication regarding water and wastewater utility function. The city manager transmits utility information and issues to the city council. The bookkeeper handles utility finances, and is well-qualified and organized. The city manager has purchased a laptop for the city bookkeeper to continue work at home while on upcoming maternity leave. The city clerk is well trained, with regular attendance at the Alaska Association of Municipal Clerks' annual conference. The city clerk has accomplished a massive organization of retained municipal records, filing them in boxes by year and topic, and storing boxes on risers to prevent potential water damage. The primary water utility operator has received certification as Level 1 Provisional in both Water Treatment and Water Distribution, with certification expiring in December 2016; CEU requirements for renewal are not yet met. The back-up water operator is certified in Water Distribution Provisional through 12/21/2014. The city complies with the Open Meetings Act for all meetings, posting notice five days prior on the city website, on the board at the city office, and at the post office.

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".
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 does not hold designated or documented safety meetings. However, the operators under the supervision of the city manager take part in the AML/JIA loss incentive control program. The city clerk has requested a checklist for the operators for reporting purposes. Utility workers report informal discussions of safety issues; RUBA staff encouraged them to formalize and record these meetings. Recent telephonic contact indicates that the public works manager has initiated regular safety meetings; a safety manual has not yet been submitted. There have been no major outages of the utility due to managerial errors. The water operator was not able to provide RUBA staff with an inventory control list or a critical spare parts list. With the upcoming construction of the new water treatment plant, a critical spare parts list and recommended preventive maintenance plan will be provided to the community by Village Safe Water. Guidance and mentorship in the operation of the new water treatment system will be ongoing through the Remote Maintenance Worker program. The community is not listed on the May 2014 Significant Non-Compiler (SNC) list of water quality violations.