Quarterly Report: 2007, October - December (Q2), Kasaan

Community:
Kasaan 
Staff:
Lawrence Blood  
DCRA Regional Office:
 
Gov't Type:
Second Class City 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
City of Kasaan 
Population:
61  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
1/23/2007 
Community Sanitation Overview:
The City of Kasaan operates and manages a piped water system. The City Council is the policy making body for the utility. Water is derived from a water infiltration gallery (impoundment) at Linkum Creek, is treated, and piped to all homes in the core area. Homes use individual septic tanks and 95% are fully plumbed. A feasibility study to examine water and sewer service for a new 121-lot subdivision is underway under the auspices of Alaska Native Tribal Health Consortium (ANTHC). A landslide damaged the City's potable water system in 2003 causing a 'Boil Water Notice', and inclusion on the list of significant non-compliers (SNC). Repairs to the water treatment plant and corresponding infrastructure were completed by early fall 2004. Necessary water quality testing was completed, and the utility no longer is on the SNC list. The City collects and deposits refuse weekly at the Thorne Bay landfill. Electricity is provided by Alaska Power and Telephone Company. Kasaan has an annual operating budget of approximately $280,000. Kasaan is connected via gravel road to the Prince of Wales Island road system.  
RUBA Status & Activities This Qtr:
The latest Assessment of Management Capacity Indicators for Kasaan was conducted on 4/16/03. At that time, Kasaan met all essential capacity indicators except for not having a preventative maintenance plan. Since the last formal assessment, Kasaan has been in various states of meeting essential indicators. The community has requested RUBA reassessment. A community visit will be scheduled sometime this quarter.  
RUBA Activities for the Coming Qtr:
The community has requested Newly Elected Officials training. RUBA staff will continue to provide support for meeting RUBA essential indicators and increasing collection rates.
Scores:
 
Essential Indicators:
25 of 26
Sustainable Indicators:
14 of 27
Total Score:
39 of 53

Finances

Essential Indicators
Answer Question
No 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.
No 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.
No A monthly manager's report is prepared.
Yes Budget amendments are completed and adopted as necessary.
Finances Comments
The FY06 budget was passed on October 24, 2005. The budget was balanced, however, all revenue and expenses were not listed in the utility budget. Todd Tew has been contracted to keep the books current. The utility receives revenues sufficient to cover operating expenses; however, user fees ($60 per month) do not completely cover operating costs causing the City of Kasaan to subsidize the service with other sources of funding. The City has increased water utility rates in an effort to foster a self-sufficient water utility. The City is not placing any funds in a repair and replacement fund. Year-to-date revenues and expenditures are relatively close to what was budgeted. A monthly manager's report is not prepared. The City Clerk reports making budget amendments as needed.

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 City Council has adopted increased water utility and garbage service user fees an additional $20.00 and $10.00 per month respectively. The City has increased efforts to actively pursue past due utility accounts. Furthermore, the City has requested assistance with adopting and implementing a more aggressive collection policy. Specifically, they are considering adding a policy that any customer who is past due is required to pay 10% of the past due amount in addition to their regular monthly payment. Utility bills are sent out monthly. The City is currently using QuickBooks for their accounts receivable, accounts payable, and payroll. The City does not use a receipt book to write receipts for all payments, but they record all people who pay them so the City Clerk can reconcile the cash box and deposit slips. The City uses QuickBooks for their cash disbursement system. The City has identified a chart of accounts. QuickBooks training and classes have allowed the City Clerk to complete monthly bank reconciliations for all utility accounts, which is an improvement from the past. The City Clerk is current on reconciling all bank accounts. The City uses a purchase order system for large purchases only (greater than $1,000).

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 City uses QuickBooks to calculate, track, and report payroll liabilities. They are current on filing their tax reports and making tax deposits.

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.
No 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 insurance coverage through the Alaska Municipal League/Joint Insurance Association. The City has adopted a personnel policy, but it has only been reviewed by Commerce in the distant past and should be re-reviewed. The City Clerk reports she will be seeking re-review in the near future. The City has job descriptions for all positions in the employee handbook. The City does not have a formal evaluation process, but the City Clerk reports a regular bi-annual $0.25 pay increase. The City Clerk also reports the only time employees are contacted regarding performance is for poor performance and subsequent disciplinary action. The hiring process is documented in the City's codebook. There are personnel folders on every employee with the necessary documentation. The City Clerk reports the City does not have a probationary period for new hires that includes systematic orientation, job training/oversight, and evaluations. The City provides training opportunities as needed.

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
No 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 of Kasaan owns and operates the water and sewer system. The City Council is the policy making body for the utility. The City Council is active in making policy. The City Council has adopted increased utility rates, enforces utility policy, and notifies staff regarding extending credit to residents. The bookkeeper has no formal training other than what she has learned on the job and attending Commerce-sponsored QuickBooks Pro training. In the past, the City contracted with an accounting firm in Ketchikan to keep their books. The duties of the utility manager are split among different staff, making it difficult to evaluate a utility manager. The first operator is certified as a Water Treatment OIT (expired December 2004), Wastewater Collection OIT, and Wastewater Treatment OIT. The second operator is certified as a Water Treatment OIT and Water Distribution OIT. Two other people in the community also hold water certifications. The City does not have a written organizational chart. The City Council meets as required and complies with the Open Meetings Act.

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.
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.
No The operator provides status reports to the manager on a routine basis.
No The utility has completed and distributed its "Consumer Confidence Report".
No 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 operators have achieved the necessary certification to operate the utility. The utility has a preventative maintenance plan that was provided with the installation of the water treatment plant. Since one person is not designated as the utility manager, the manager does not receive a monthly O and M report and does not spot check facilities. The utility has a safety manual, but does not hold meetings because there are currently only two operators. The City was on a Boil Water Notice, but the Notice was not necessarily tied to management-related issues. There was a landslide in their watershed during October 2003 that extensively damaged the utility. Before the landslide occurred, the water utility was operating at the level of service that was proposed. Since repairs to the water utility were completed, the utility has returned to operating at the level of service that was proposed. The operator does not provide a status report on a routine basis. The utility has not completed a CCR since posting a Boil Water Notice. The utility does not maintain an inventory control list or a critical spare parts list.