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Capacity Indicator: Finances
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Essential Indicators
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Yes
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All revenues and expenses for the utility are listed in the utility budget. |
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Yes
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The utility has adopted a balanced realistic budget. |
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Yes
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Monthly financial reports are prepared and submitted to the policy making board. |
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Yes
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The utility is current in paying all water/wastewater electric bills. |
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Yes
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The utility has on hand a year's adequate fuel supply or it has a financial plan to purchase an adequate supply. |
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Yes
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The utility is receiving revenues (user fees or other sources) sufficient to cover operating expenses. |
Sustainable Indicators
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Yes
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The utility is receiving revenues (user fees or other sources sufficient to cover operating expenses and Repair & Replacement (R) costs. |
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Yes
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YTD revenues are at a level equal to or above those budgeted. |
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Yes
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YTD expenditures are at a level equal to or below those budgeted. |
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Yes
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A monthly manager's report is prepared. |
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Yes
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Budget amendments are completed and adopted as necessary. |
| Finances Comment: |
The FY13 budget was provided by the city administrator; the budget was adopted on June 15, 2012. All revenue and expenses for the utility are listed in the overall budget. The budget is realistic and balanced. The operating revenue exceeds the operating expenditures. RUBA has received copies of monthly financial reports for September, October and December, 2011, and January 2012. The mayor, who also serves as the utility manager, makes a verbal report at the monthly city council meetings and his report is noted in the minutes. RUBA staff reviewed the minutes of the October 11, 2011 city council meeting, as well as the minutes of the December 2011 meeting and the two meetings in January 2012. (No meeting was held in November 2011 due to council members traveling.) The minutes of the December 2011 and January 2012 regular and January 2012 meeting were approved on February 14, 2012. Monthly financial reports are prepared and submitted to city council (the policy-making board) at their monthly meetings. The reports are reviewed and discussed by the mayor and council members at the meeting. Budget amendments are completed and adopted as necessary at city council meetings.
The utility has adequate fuel. The city has the capacity to receive 2000 gallons of number 1 Heating Fuel (fuel truck) and 1000 Gallons of Gas (fuel trailer). Everts Air Fuel provides fuel on an as-needed basis. The city also utilizes Air Supply Alaska for fuel deliveries when Everts Air Fuel aircraft are unable to deliver fuel. The utility is current in paying all water and wastewater electric bills.
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Capacity Indicator: Accounting Systems
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Essential Indicators
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Yes
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The utility has adopted a collection policy and actively follows it. |
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Yes
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The utility bills customers on a regular basis. |
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Yes
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An accounts receivable system is in place which tracks customers and reports past due accounts and amounts. |
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Yes
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An accounts payable system is in place. |
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Yes
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The payroll system correctly calculates payroll and keeps records. |
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Yes
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A cash receipt system is in place that records incoming money and how it was spent. |
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Yes
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The utility has a cash disbursement system that records how money was spent. |
Sustainable Indicators
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Yes
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A chart of accounts is used that identifies categories in a reasonable, usable manner. |
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Yes
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Monthly bank reconciliations have been completed for all utility accounts. |
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Yes
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The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. |
| Accounting Systems Comment: |
The city's chart of accounts is set up through the QuickBooks program. The city has been using QuickBooks since 2007. Utility customers are billed regularly on or before the 20th of each month in accordance with the collection policy. The city clerk inputs the Accounts Payable for the utility customers and cuts checks every Wednesday.
According to the city council minutes dated August 9, 2011, the city introduced an amendment based on a sample amendment for consumer complaints about the utility; the amendment passed at the August 10, 2011 meeting.
The city administrator supplied RUBA staff with eight spreadsheet pages showing the city's transactions by account for the quarter ending December 31, 2012. The cover page summarized the utilities collection rate - the amount billed, the amount collected and the rate of collection for each month in the quarter. The total rate of collection for the quarter ending December 31, 2011 was 104.25 percent which demonstrates the city is actively pursuing and successfully collecting past due accounts and amounts. Customers that have an old debt for utility services are asked to agree in writing to be charged an extra $20 on all their subsequent utility bills until their old debt is paid off.
An accounts payable system is in place. The payroll system correctly calculates payroll and keeps records. A cash receipt system is in place that records incoming money and how it was spent. A chart of accounts is used that identifies categories in a reasonable, usable manner. The administrator provided a chart of accounts and an actual utility bill. Monthly bank reconciliations have been completed for all utility accounts. The utility has a purchasing system that requires approval prior to purchase, and the approval process compares proposed purchases to budgeted amounts. The mayor approves all purchases.
The city administrator and the city clerk both input data into QuickBooks. In addition, a Certified Public Accountant, Joyce Herr, is paid a regular salary to review all the accounts monthly and sometimes more frequently. The administrator and clerk call the CPA whenever they have a question. The same CPA completed a Certified Financial Statement for the city last year. She keeps her own version of the city's books so she can quickly identify and rectify any discrepancies that may come up in her review of the QuickBook entries the city administrator or clerk makes in the city's QuickBooks program, and to provide direct instruction.
The administrator provided RUBA staff with a chart of accounts, the city's collection policy that was revised in 2006 in the utility ordinance, an aging summary, and a bill statement that showed the proper format that was being used.
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Capacity Indicator: Tax Problems
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Essential Indicators
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Yes
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The utility has a system to accurately calculate, track, and report payroll tax liabilities. |
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Yes
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The utility is current on filing tax reports. |
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Yes
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The utility is current on making tax deposits. |
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Yes
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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 Comment: |
The utility has a QuickBooks accounting system to accurately calculate, track, and report payroll tax liabilities. The city administrator does payroll and her work is regularly checked by the city's CPA who gets a regular salary for her oversight.
The Alaska Department of Labor verified the city is current with making unemployment tax deposits through December 31, 2012. The IRS verified the city was in compliance with all required tax filings and deposits, and has no recorded Notice of Federal Tax Lien, through December 31, 2012.
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Capacity Indicator: Personnel System
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Essential Indicators
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Yes
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The utility has a posted workers compensation insurance policy in effect. |
Sustainable Indicators
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Yes
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The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML or Commerce for topics and language. |
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Yes
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The utility has adequate written job descriptions for all positions. |
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Yes
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The utility has adopted and follows a written personnel evaluation process that ties the job description to the evaluation. |
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Yes
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The utility has an adequate written hiring process. |
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Yes
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The utility has personnel folders on every employee that contain at least: I-9, Job Application and Letter of Acceptance. |
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Yes
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The utility has a probationary period for new hires that includes orientation, job training/oversight, and evaluations. |
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Yes
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The utility provides training opportunities to staff as needed and available. |
| Personnel System Comment: |
Workers' compensation insurance is provided by Alaska Public Entity Entity Insurance and is valid through July 1, 2013. The notice of insurance is posted in city hall and in two other places on the employer's premises as required by AS 23.30.060. The city utilizes a personnel policy that was previously reviewed by DCCED. During the assessment, the reviewer noted that the city had written job descriptions, personnel files were neatly organized, and contained required documentation. New hires undergo a probationary period and employees have the opportunity to travel for training as needed. There is money for training in the current budget. A city council member completed the RUBA Personnel Management for Rural Utilities class held in Anchorage in April, 2012.
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Capacity Indicator: Organizational Management
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Essential Indicators
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Yes
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The entity that owns the utility is known; the entity that will operate the utility is set. |
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Yes
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The policy making body is active in policy making of the utility. |
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Yes
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The policy making body enforces utility policy. |
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Yes
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The utility has an adequately trained manager. |
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Yes
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The utility has an adequately trained bookkeeper. |
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Yes
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The utility has an adequately trained operator or operators. |
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Yes
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The utility has adopted the necessary ordinances (or rules and regulations) necessary to give it the authority to operate. |
Sustainable Indicators
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Yes
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The utility has adopted an organizational chart that reflects the current structure. |
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Yes
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The policy making body meets as required. |
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Yes
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The utility complies with the open meeting act for all meetings. |
| Organizational Management Comment: |
The City of Nondalton is the owner of the utility. The decision-making authority and enforcement of the utility policy is vested in the council. The city administrator has oversight of the utility and maintains the books for the utility with the assistance of a Certified Public Accountant. The city clerk makes some entries in the books as well, mainly to do with fuel sales. The CPA reviews the city's QuickBooks accounts regularly and compares them with her own books which are kept separately, both as a check-and-balance system and as a back-up in the event the city's QuickBook files are corrupted or destroyed.
The city does not have a digital copy of their code of ordinances. They have two printed copies of their code adopted May 1, 1990. Ordinances passed since then are kept in various loose leaf notebooks. City staff requested RUBA staff assistance in organizing and digitizing the city's code of ordinances. At the on-site visit to Nondalton June 28-29,2012, RUBA staff copied as many of the old ordinances, amended ordinances and new ordinances as possible. City staff sent copies of the rest of the ordinances by mail.
The water plant operator sees that the day-to-day duties of the plant are performed with oversight by the city administrator and mayor. The mayor visits the water plant daily on weekdays and talks to the water plant operator on duty.
The policy-making body - the city council - is active in making policy for the utility and enforces utility policy. The bookkeeper and manager and operators are adequately trained. The utility has adopted the necessary ordinances to give it the authority to operate. RUBA staff reviewed the city's utility ordinance and all amendments and found it to be adequate.
The city council (which acts as the utility board) meets monthly and complies with the Open Meetings Act for all meetings.
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Capacity Indicator: Operation of Utility
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Essential Indicators
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Yes
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The utility operator(s) are actively working towards necessary certification. |
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Yes
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The utility has a preventative maintenance plan developed for the existing sanitation facilities. |
Sustainable Indicators
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Yes
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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. |
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No
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The utility has a safety manual and holds safety meetings. |
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Yes
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Utility facilities have not suffered any major problems/outages due to management issues that are unresolved. |
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Yes
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The utility is operating at the level of service that was proposed. |
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Yes
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The operator provides status reports to the manager on a routine basis. |
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Yes
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The utility has completed and distributed its "Consumer Confidence Report". |
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Yes
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The utility is not on the "Significant Non-Complier" (SNC) list. |
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Yes
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The utility maintains an inventory control list. |
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Yes
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The utility maintains a critical spare parts list. |
| Operation of Utility Comment: |
The utility operator has a Water Distribution Provisional Certification and has met the CEU requirements. The primary and secondary utility operator attended water operator training in Dillingham April 16-20, 2012. The backup operator has a Water Distribution and Water Treatment Provisional Certification and has met the CEU requirements. After the overhaul of the operating plant is completed in the fall, the operators will get additional training on the new system. The mayor visits the utility plant facility every weekday, and sometimes on weekends, to talk with the operator on duty and to determine whether the daily, weekly, and monthly maintenance requirements are met; this meets the requirement for the operator to provide status reports to the utility manager (in this case, the mayor) on a routine basis. The primary utility operator gives a verbal operations and management report to the mayor and city administrator at least monthly.
The city has a written safety policy and a safety manual that is kept onsite. The administrator gave RUBA staff a copy of the city's safety policy. In addition, the city has a Site Specific Safety Plan and Accident Prevention Plan for their Water System Improvements Project that is 18 pages long which was prepared for the city and ANTHC by Summit Consulting Services, Inc. in June 2008. However, the utility does not hold regular safety meetings, so it does not meet that sustainable indicator.The utility has completed and distributed its 'Consumer Confidence Report'. The utility is not on the 'Significant Non-Complier' (SNC) list.
The utility facilities have not suffered any major problems or outages due to management issues that are unresolved. The utility is operating at the level of service that was proposed. New customers will be added to the system at the end of this summer's construction.
The administrator also gave RUBA staff a copy of the 'Water and Sewer Critical Spare Parts List and Inventory' that was updated by the water operator on February 1, 2012, in addition to a copy of the Maintenance Order Request Form that must be submitted and approved by the mayor.
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