Quarterly Report: 2010, April - June (Q4), Wales

Leroy Seppilu  
DCRA Regional Office:
Gov't Type:
Second Class City 
Agreement Date:
City of Wales 
Assessment Status:
Assessment Date:
Exp Date:
Last Updated:
Community Sanitation Overview:
Two new groundwater wells have been drilled and a pumphouse and watering point enclosure are needed. Currently, water is derived from Gilbert Creek during the summer, and residents haul treated water from a 500,000-gal. storage tank at the washeteria. Some residents use untreated water from Village Creek. Almost all residents use honeybuckets, and very few homes currently have plumbing. A honey bucket haul system is in place. The school and clinic are served by piped water. There are two septic systems - one for the school and a second for teacher's housing, the clinic, and the city building. A master plan to implement a piped system has been completed. There is no permit for the landfill. Village Safe Water is applying for sanitation grants for the community to upgrade the washeteria. The new facility will most likely be a multi-purpose facility to include the washeteria, water plant, and a new clinic. The condemned City dome will probably be torn down and its location used for the new multi-purpose facility. 
RUBA Status & Activities This Qtr:
The city council acts as the utility board. RUBA staff provided the city with a sample monthly financial statement to make improvement to its currently monthly financial statement format. RUBA staff made recommendations to set up an account with a local airline carrier to continue sending water samples to Anchorage for tests. The city used to send water samples for testing to Fairbanks at a very low cost. The airline company stopped the flights and the city ended up having to send the samples to Anchorage at about three times the cost with another airline. The airline that provides passenger and freight services to Anchorage has to comply with stringent safety rules by Transportation Security Administration (TSA) before freight can be send through them. One of the rules are that companies or organizations have to have an account before freight can be shipped. 
RUBA Activities for the Coming Qtr:
*At the request of the mayor, RUBA staff will travel make an on-site visit at least once to perform a RUBA Assessment
Essential Indicators:
24 of 26
Sustainable Indicators:
24 of 27
Total Score:
48 of 53


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 purchased purchased about 25,000 gallons of fuel oil. The delivery is expected by end of August, 2010. The city used its funds from NSEDC's Community Benefits Share Program. The City is current with it electricity bills from Alaska Village Electric Cooperative (AVEC). The city completed its FY '11 budget in a timely manner, including its santition budget. The sanitation revenues and expenditures during FY '10 were as follows: Revenues: Expenditures: Water Sales $19,649.00 Washeteria $17,643.00 $70,180.00 Trash/Honeybucket Haul $ 2,060.00 $40,800.00 Total: $49,352.00 $110,980.00 The sanitation services are subsidized using funds from sales tax, CRS and NSEDC.

Accounting Systems

Essential Indicators
Answer Question
N/A The utility has adopted a collection policy and actively follows it.
No 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
No 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 Wales City Council feels that it is important to continue the services for the health and safety of the community even if there is high past dues and the revenues are much less than expenditures by as much as $60,000 a year. The trash/honeybucket haul service customers are not billed regularly.

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.
No The utility is current on making tax deposits.
Yes 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
Mayor Crisci keeps close contact with IRS and Dept. of Labor's Employment Security Division (ESD) with any tax-related issues. The city has a small past due tax liability and is in the process of paying it off.

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 has general liability and workers' compensation coverage through Alaska Municipal League-Joint Insurance Asso. (AML-JIA). The city has a comprehensive personnel policies adopted mid-90s. The city has made a few revisions since then as needed. The personnel policies adequately meet the city's personnel management needs.

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
The city council, which act as the utility board, meets regularly and hold special meetings as needed. The city council meets at least two or three times a month. The mayor's position is a paid position. He acts as the utility manager and run the day-to-day management of all the city functions, including the city-run utilities.

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.
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".
No The utility is not on the "Significant Non-Complier" (SNC) list.
Yes The utility maintains an inventory control list.
Yes The utility maintains a critical spare parts list.
Operation of Utility Comments
The city is on the SNC List for stage 1 violations. The utility manager (mayor) makes sure that the utility operator makes and/or submtit water testings and samplings are submitted to Analyctica Group on monthly and quarterly basis.