Quarterly Report: 2006, April - June (Q4), Pilot Station

Pilot Station 
Margaret Hansen  
DCRA Regional Office:
Gov't Type:
Second Class City 
Agreement Date:
City of Pilot Station 
Assessment Status:
Assessment Date:
Exp Date:
Last Updated:
Community Sanitation Overview:
The City operates the water and wastewater system. All the residential customers are now connected to the community's piped water and sewer system, to include the City, Tribal, and Headstart buildings respectively. Relocation of the landfill/lagoon is up for proposal. 
RUBA Status & Activities This Qtr:
RUBA has been in contact with this community by phone, fax and mail(large documents). This quarter, communication with this community has been minimal. The City continues to experience financial hardship. The City had been addressing the AVEC delinquent account and as of March 2006, the Utility AVEC delinquent account was paid and is now current. The City continues to communicate with Mr. Moss, IRS, on the tax issues. However, a tax levy was issued early April 2006 for the amount owed to IRS. As for Dept. of Labor tax debt, this also continues. The administrator/clerk has informed RUBA that payments made this week should bring the amount down. When this happens, she will fax the payment copies to RUBA. All other copies will continue to be sent to RUBA for the community file. Regarding a possible leak to the Water/Sewer system reported last quarter, it has been evaluated. The outcome of this evaluation was great news. The water buildup turned out to be spring thaw instead of a leak in one of the pipes. Brian Leffets, YKHC/OEH made a trip to this community and has completed a survey on the water treatment of this utility. The City informed RUBA that she has to contact him before she provides a copy to RUBA. She did not agree with some of the written comments and that he did not take the time to meet with her and the Mayor regarding this survey before he left the community. 
RUBA Activities for the Coming Qtr:
RUBA staff will continue follow up on the IRS and DOL tax issues. Technical assistance will be provided as needed.
Essential Indicators:
26 of 27
Sustainable Indicators:
24 of 27
Total Score:
50 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.
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.
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 R/R costs continue to be subsidized through a 2% sales tax and through gaming proceeds.

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
All indicators continue to be met. Although the City still utilizes a manual system, the clerk/bookkeeper is a long term City employee for more than several years and keeps records updated as current as she can. She does get behind at times when she ends up being the only administrative staff, she does get everything caught up and current. Currently she has fallen behind on the bank reconciliation by a couple months. She has informed RUBA that she will eventually get these caught up once she addresses the more priority issues at hand such as the taxes and AVEC.

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
4/21/06: RUBA received a faxed copies of a letter from City of Pilot Station to IRS requesting abatement of penalties. The City has held back this pay period in order to get in compliance with the deposits. Mr. Moss, IRS officer has responded with approval of abatement. This bring the City current with filing and deposits. However, RUBA and Mr. Moss have encouraged the City to stay in compliance through filing every quarter and paying deposits every payroll. The City bank account has been levied by Mr. Moss, IRS Revenue officer. Notices will be faxed to RUBA. As for Dept. of Labor, the city has signed a repayment contract. However, with financial hardship continuing, the City has fallen behind on payments and filing. Ms. Borremeo is in contact with Lee Hannah, DOL Field Auditor for Dept. of Labor(DOL) and a couple payments will be made this week. Payment copies will be sent to RUBA for the community file.

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
All indicators continue to be met. Ruth Borromeo, City clerk is a very long term employee of the City. Her duties not only are for the Clerk position but also cover the administrator and bookkeeper duties as well. The bookkeeper position has a history of turnovers. With the City having financial difficulty, and being mostly alone, she has made every effort to stay current with all indicators. All she asks for is patience and eventually she will get them done.

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
All indicators continue to be met. One of the operators attended a level I training course in October with YKHC/OEH. However, the City finally got the results of the test he took and it appeared that he did not pass. However, Ms. Borromeo supervised the same operator who took a written test again early April. She is hopeful that this time he passed.

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.
No The utility maintains an inventory control list.
Yes The utility maintains a critical spare parts list.
Operation of Utility Comments
One of the operator's who had attended a level I session in Bethel the first week of October. However he did not pass the test and has already retaken this test. They await the results once again.