Quarterly Report: 2011, July - September (Q1), Nightmute

Community:
Nightmute 
Staff:
Sandra Modigh  
DCRA Regional Office:
 
Gov't Type:
Second Class City 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
City of Nightmute 
Population:
244  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
2/2/2011 
Community Sanitation Overview:
The City of Nightmute provides a small water facility, which is the central watering point for residents to haul their own water. The City also provides water and sewer haul service. The city utility system has 42 residential units and 15 commercial units. The school has its own sewage lagoon. A washeteria is not available. The Nightmute power plant was acquired by AVEC in March 1998. Electricity is provided by AVEC. 
RUBA Status & Activities This Qtr:
A July 7, 2010 IRS Taxpayer Advocate correspondence indicates the city is delinquent in paying significant amounts of federal 941 payroll taxes for the 3rd and 4th quarters of 2009 and has not filed for the 1st quarter of 2010. A July 6, 2010 Alaska Department of Labor correspondence lists the city as not filing Employment Security Compensation report for the 1st quarter of 2010. The city is eligible for $92K Village Safe Water (VSW) funding through June 2014 for sewer lagoon and system improvements; design and construction of a sewer lagoon; road improvements; sewer main; force main and lift station. It is also eligible for $200K VSW funding for design and construction of water and sewer facilities through June 2013. On July 1, 2010 Bethel RUBA staff sent out a request for documents that would facilitate updating the city's RUBA assessment status. As of July 9, 2010 the community had not responded to the information request. A July 9, 2010 phone call to AMLJIA verified the city is current on their workers compensation insurance coverage. 
RUBA Activities for the Coming Qtr:
RUBA has requested all documentation for all essential indicators and will provide assistance as requested.
Scores:
 
Essential Indicators:
18 of 26
Sustainable Indicators:
13 of 27
Total Score:
31 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.
Yes Monthly financial reports are prepared and submitted to the policy making board.
No 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.
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
Fuel was purchased through an AEA loan and was received in July 09. Most recent budget was adopted and passed for FY09. Finance reports were submitted but did not show revenues. A copy of last years adopted budget was sent to show what was 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.
No 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 collection policy is in their Utility Service Agreement. The grace period is 30 days for past due utility bills. The city will not provide services when the customer's balance is over $100. The city uses an invoice that has what type of water/sewer service was provided, date of service, amount owed and what was previously owed. The city continues to use the NEBS system accounts receivable and payable. The city correctly calculates payroll and keeps records.

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 deemed the City of Nightmute compliant with filing and deposits. There were no recorded liens. There were no reported tax liens on the Statewide 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.
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.
Personnel System Comments
The city is covered by AML Joint Insurance through 7/10 The city uses a personnel policy that was provided by DCCED and contains appropriate topics and language. The council hires new employees and a condition of hire form is provided. The city has personnel folders on employees that contain complete I-9 forms. Three months is the standard probationary period for permanent employees. The Administrator provides on the job training for new employees and other training is given as 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.
Yes The policy making body is active in policy making of the utility.
Yes The policy making body enforces utility policy.
No The utility has an adequately trained manager.
No The utility has an adequately trained bookkeeper.
No 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
The City of Nightmute is known as the Nightmute Watering Point. The operator is listed but is not certified. The Nighmute High School and Elementary School has its own water system. Their operators are certified The city council meets regularly once a month. The bookkeeper has had Quickbooks training. The city council meets regularly once a month.

Operation of Utility

Essential Indicators
Answer Question
No 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.
No 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
According to SNC there is no current certified water operator to maintain water system. All indicators for this were discussed and documentation is being pulled together for review. Once this is provided indicators will be marked as positive.