RUBA Community Status Report

Community Name: Adak


Community:

Adak

RUBA:

Yes

Staff:

Glen Hamburg

Agreement:

No

DCA Region:

Anchorage

Agreement Date:

Region:

Aleutians

Exp Date:

Govt Type(s):

2nd Class City

Borough:

Unorganized

Assessment Date:

7/9/2012

Population:

326

Active Community:

Yes

Date Updated:

11/27/2013


Community Sanitation Overview:

The City of Adak operates and manages a piped water and wastewater system. The city council is the policy making body for the utility. The surface water is derived from Lake Bonnie Rose, which is located approximately three miles southwest of the core town site. The water utility is operated as a Class A public water system and operates under filtration avoidance; therefore, the only treatment provided is chlorination with required detention for disinfection. Water is treated, stored in four tanks totaling 1.9 million gallons of storage and piped to facilities and housing units. The wastewater treatment system discharges through a marine outfall line to Kuluk Bay. One-hundred percent of homes have complete plumbing. The city collects and deposits refuse at Husky Landfill, the municipal landfill, which is a permitted class III landfill. Bulk fuel is provided by the Adak Petroleum (a subsidiary of the Aleut Corporation), which maintains nine underground tanks with a total capacity of approximately 18 million gallons of marine diesel, gasoline, and jet fuel. Electricity is provided, via diesel generation, by TDX Adak Generating. A feasibility study to provide recommendations for water and wastewater utility downsizing, upgrading, and future utility project planning for the City of Adak was completed in 2004 with two updates, the most recent being in 2011 with the Alaska Department of Environmental Conservation: Village Safe Water. The study was contracted to the Anchorage based Bristol Environmental and Engineering Services Corporation. Although the water treatment plant is operating and provides adequate potable water, the City of Adak is attempting to address numerous water and wastewater utility concerns including an aging infrastructure, chronic line loss, and maintaining a water/wastewater utility designed for a large user base. The infrastructure was originally constructed for a military installation with a population of 6,000 that dropped dramatically after the closure of the military base.

RUBA Status
and Activities
this Quarter:

RUBA staff has maintained contact with the city staff to ensure that all essential and sustainable indicators continue to be met. On August 27, Anchorage RUBA staff sent IRS Authorization to Request Federal Tax Information form be signed for the community's RUBA assessment. RUBA staff also requested the last three monthly financial reports for the water utility that have been approved by the council. On June 25, Anchorage LGS received the following correspondence from the city manager in Adak stating that the city won a bid to purchased all of the assets from Adak Seafood, LLC. The city's bid was for $2.08 million utilizing reserve funds as well as $385,000 from the Adak Community Development Corporation. In bidding, the sole intent of the city was to keep the assets in place as a turnkey operation in order to facilitate the expedited reopening of the plant. The city is working with the with Aleut Enterprise, the owner of the building, to find an operator for the fish plant in time for the next cod season.

 

Capacity Indicator: Finances

Essential Indicators:

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:

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.

Comment:

The City of Adak adopted the FY1 budget on June 2, 2013. The utility budget anticipates $123,510 in revenues and expenses of $122,687. Transfers from the solid waste, General Funds, and enterprise funds are listed within the budgets as subsidies to the water/wastewater utility. Utility bills from TDX Adak show the city is current with power utility bills. The city receives fuel from the Aleut Enterprise for public facilities on an as needed basis. There is a Water/Wastewater Replacement line item in the Maintenance Reserves in the amount of $5,000. The manager provides financial information to the council at council meetings; budget amendments are done as necessary.

 

Capacity Indicator: Accounting Systems

Essential Indicators:

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:

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.

Comment:

The collection policy is located in Chapter 4.11 of the City of Adak Code of Ordinances. Water, wastewater, and garbage bills are generated and sent to utility customers at the end of each month. The city utilizes QuickBooks for the accounts payable, accounts receivable and payroll entries. The cash disbursement and cash receipt system is also entered in QuickBooks and a manual receipt is issued upon payment received. The city also has an accounting firm contracted to handle all payroll tax liabilities along with the QuickBooks entries. The account listing generated from QuickBooks shows all income, expenses, liabilities, assets, accounts receivable/payable, and bank accounts. Monthly bank reconciliations are completed using QuickBooks. There is a purchasing policy in the City of Adak Code of Ordinances, Chapter 4.05.

 

Capacity Indicator: Tax Problems

Essential Indicators:

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.

Comment:

The IRS report dated June 24, 2013 shows that the city is compliant with required federal tax deposits and filing and has no record of a lien. The Department of Labor and Workforce Development, Employment Security Divisions report from September 23, 2013 states that the city is in compliance with state tax filing and deposits. The city is not listed in the March April 2013 Lien Watch.

 

Capacity Indicator: Personnel System

Essential Indicators:

Yes

The utility has a posted workers compensation insurance policy in effect.

Sustainable Indicators:

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.

Comment:

The City of Adak has workers compensation with Alaska Municipal League Joint Insurance Association (AMLJIA) current as of September 16, 2013. Title V in the Adak Code of Ordinances provides the hiring process and a six month probationary period for new city employees. The manager has the authority to appoint, supervise, and remove employees with council approval. The city is working with AMLJIA to update the personnel policies. The manager has all employee folders with I-9s, applications and letters of acceptance filed in a fireproof locked cabinet within the city office. Training is offered to employees; due to the cost of travel, this is not always available. The city manager is working on updating job descriptions and the evaluation process with AMLJIA.

 

Capacity Indicator: Organizational Management

Essential Indicators:

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:

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.

Comment:

The city owns the utility and updates the ordinances and operates under the Adak Code of Ordinances, Title 2, Chapter 25: Adak Utilities. The council directs employees to enforce the policies and ordinances. The utility manager is the city manager. The city has a public works foreman that oversees the water operator. The public works staff (water operator) updates the city manager almost daily. The operator is certified in small water systems treated due to expire on December 31, 2013. The council meets the first and third Wednesday of each month and posts meeting notices for the public.

 

Capacity Indicator: Operation of Utility

Essential Indicators:

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:

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.

Yes

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.

Comment:

The water operator is certified in Small Water Systems Treated, due to expire on December 31, 2013. No major incidents have occurred with the utility. There is possible line loss as there are areas within the service area that have connections to vacant and unusable housing. The public works staff (water operator) updates the city manager almost daily. The water system is not on the April 2013 SNC list. The city manager is working on finalizing a critical spare parts and inventory lists as these are in draft form. The Navy left behind an excess amount of parts but these are currently not organized and need to be inventoried.

RUBA Activities for the Coming Quarter:

New RUBA staff assigned to this community will begin working December 2.