Quarterly Report: 2008, October - December (Q2), Nightmute

Paul Chimiugak  
DCRA Regional Office:
Gov't Type:
Second Class City 
Agreement Date:
City of Nightmute 
Assessment Status:
Assessment Date:
Exp Date:
Last Updated:
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 37 residential units, 5 commercial/residential and 6 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:
Bethel RUBA staff provided assistance to Nightmute on several issues during the quarter. Of major concern to the community was an issue relating to municipal land transfer. Staff met with leaders of the City of Nightmute and Nightmute's Village Corporation regarding their concerns about the loss of local land because of tax foreclosure and a federal law that sets out a process for the completion of the transfer of land to Village Corporations. Some of the City officials beleive that the City should convey City owned land to the Tribal Council to alleviate these perceived threats. It did not appear from the discussions that any real threat for the loss of land exists. RUBA staff also assisted with obtaining their Community Energy Assistance Program funds and having that money sent to Alaska Energy Authority to pay off a loan. Nightmute will also receive Payment in Lieu of Taxes (PILT) funds upon passage of the PILT Resolution. These funds are earmarked as payment to Crowley Marine Services for winter fuel. 
RUBA Activities for the Coming Qtr:
RUBA staff will request a preventative maintenance plan for the facility and equipment and is sending the utility a tax release form for signature. RUBA will continue requesting monthly financial reports.
Essential Indicators:
22 of 27
Sustainable Indicators:
20 of 27
Total Score:
42 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.
No 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
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 City has sent all required financial documents to Juneau required to receive the Community Energy Assistance Program (CEAP) monies. Monthly Financial reports are received in the Bethel office. The city has requested the Payment in Lieu of Taxes (PILT) funds be sent directly to Crowley Marine Services for a fuel order. Passage of a resolution to request this has not been received by Juneau yet.

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.
No 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 collection policy is included in the utility service agreement that the customer signs. Collection is due in 30 days and interest is assessed on delinquent accounts. The City has biodegradable plastic liners for the customers that are using honey buckets and dumping the sewage into the lagoon. A NEBS cash receipt system is used to record revenues from customers. The payment is recorded in the customer records and then transferred to the computer. A sample purchase procedure system was offered to the City for their review and adoption.

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.
No 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 City is current with payroll tax liability payments and quarterly reports. However, they have received a notice letter for the tax year 2004, in which the statements do not match the tax returns. The bookkeeper will review the tax information and make the corrections.

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.
No 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.
No The utility provides training opportunities to staff as needed and available.
Personnel System Comments
The City has worker's compensation insurance through AML/JIA. The insurance covers the period July 01, 2007 to July 01, 2008.

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.
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 sent the water operator for certification two or three times but he did not pass the tests. He has decided to resign from his position. The City is attempting to find, hire and train a new water operator.

Operation of Utility

Essential Indicators
Answer Question
No The utility operator(s) are actively working towards necessary certification.
No 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.
No 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.
Operation of Utility Comments
The sewage haul and water delivery fee was raised to $27.50 from $25.00 on March 21, 2007. The City has been hiring temprary workers to conduct water sampling and paying $25.00 for conducting the sampling. The clinic is using a piped water system to fill their water holding tank. They are averaging about six sewage hauls a month for which they are charged a fee; the City has not charged any fee for water usage, however. The utility account has sufficient funds for emergency purposes. The City also has funds available to order spare parts for customers when needed by them.