Quarterly Report: 2012, July - September (Q1), Nondalton

Kathy Atkinson  
DCRA Regional Office:
Gov't Type:
Second Class City 
Agreement Date:
City of Nondalton 
Assessment Status:
Assessment Date:
Exp Date:
Last Updated:
Community Sanitation Overview:
The City of Nondalton operates the piped water and sewer system and provides a central watering point for residents to haul their own water. The city council is the policy making body for the utility. An infiltration gallery at Six-Mile Lake supplies the community with treated water. There are 88,000 gallons of storage capacity and 60 residences are connected to the piped water and sewer system. A 5-acre landfill and burn box project were completed in 2005 and refuse collection is provided. The INN Electric Cooperative owns a diesel plant in Newhalen and 50 miles of distribution line which connect Iliamna, Newhalen and Nondalton. The Tazimina Hydroelectric Project powers the three communities. 
RUBA Status & Activities This Qtr:
On May 20, 2011, new RUBA staff (Kathy Atkinson) was assigned to this community. She often communicates with DaWayne Constantine, a rural community planning coordinator for Summit Consulting, who assists the manager of the City of Nondalton. RUBA staff supplied technical assistance last quarter by e-mail and telephone in obtaining an exemption from Washington sales tax on a new tank for their water improvement project. RUBA staff alerted the community that Nondalton was due $6,984 in FY10 Fisheries Business/Landing Taxes; Nondalton supplied a resolution and received payment around May 20, 2011. On September 20 and 29, 2011, RUBA staff requested proof of Workers' Compensation insurance; the monthly financial reports for June, July and August of 2011; the utility budget and any amendments; the minutes that include the utility manager's report; and updates to the city's personnel policies, if any. On October 3, 2011, staff received city council meeting minutes for June 14 and August 9 (no meeting was held in July); the financial reports for June, July, and August; and a copy of the proof of Workers' Compensation insurance that is posted in three places on the employer's premises. On October 4, 2011, staff received the authorization to request federal tax information signed by Mayor Robert Tracey on September 21 and submitted it to the IRS the next day. A site visit for a new assessment was agreed to and will be scheduled after the October 4, 2011 election tasks are concluded.  
RUBA Activities for the Coming Qtr:
RUBA staff will continue contacting the City of Nondalton to assess the status of essential and sustainable indicators throughout the upcoming quarter. On October 4,2011 administrative assistant DaWayne Constantine agreed to plan and schedule a site visit once the election activities are completed.
Essential Indicators:
27 of 27
Sustainable Indicators:
27 of 27
Total Score:
54 of 54


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 FY11 budget was received from the Financial Document Delivery System. There is a Repair and Replacement line item within the Utility expenses. RUBA has received copies of monthly financial reports for June, July, and August, 2011.

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's chart of accounts is set up through the QuickBooks program. Utility customers are billed regularly on or before the 20th of each month in accordance with the collection policy. 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; a meeting was to be held August 10 to pass the amendment. On October 5, RUBA staff asked for confirmation on whether the amendment passed at that meeting and for a copy of the consumer complaint amendment.

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.
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
The Alaska Dept. of Labor verified the city is current with making tax deposits through June 30, 2011. The IRS verified the city was in compliance with all tax deposits through June 1, 2011. An updated, signed Authorization to Request Federal Tax Information to September 1, 2011 was sent to the IRS on October 5.

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
Worker's compensation insurance was verified with a call to Alaska Public Entity Entity Insurance on September 28, 2011 and is valid from July 1, 2011 through July 1, 2012. 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.

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 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 water plant operator see that the day-to-day duties of the plant are performed with oversight of the city administrator and mayor.

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".
Yes 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
Water operator has the following certifications: Water Distribution Operator In Training 11/18/2005 to 12/31/2010, and Water Treatment Operator In Training 11/18/2005 to 12/31/2010.