Quarterly Report: 2006, April - June (Q4), Anchor Point

Community:
Anchor Point 
Staff:
Jimmy Smith  
DCRA Regional Office:
 
Gov't Type:
Water Systems 
Borough:
 
Agreement?
No 
Agreement Date:
 
Entity:
Anchor Point Safewater Corporation 
Population:
1767  
Assessment Status:
 
Assessment Date:
 
Exp Date:
 
Last Updated:
7/26/2006 
Community Sanitation Overview:
Most residents have individual wells, septic tanks, and complete indoor plumbing. A new well, water treatment plant, and water distribution mains were recently installed in an area serving five homes. An expansion of the piped water system to the school, homes and businesses along the Sterling Highway is underway. The school well has been shown to contain lead and some area wells are contminated with benzene. The Anchora Point Safe Water Corp. was formed to pursue development of a safe water system. The Borough Refuse Transfer Facility is located at Mile 157 Sterling Hwy. 
RUBA Status & Activities This Qtr:
On May 25, 2006, Jimmy Smith met with Kathy Toms, President of the Anchor Point Safewater Corporation to review the RUBA Assessment of Management Capacity Indicators. There have been changes made to the Anchor Point Safewater Corporation Board members and Anchor Point Safewater operator. The original RUBA assessment was completed on September 15, 2005 and this is a reassessment changing the deficient indicators. The President provided the documentation supporting the conclusion of this report. Specific documents used in this report are available with the RUBA staff for review. 
RUBA Activities for the Coming Qtr:
Provide assistance via, phone, facsimile and email to the community.
Scores:
 
Essential Indicators:
26 of 27
Sustainable Indicators:
10 of 22
Total Score:
36 of 49

Finances

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
No The utility is receiving revenues (user fees or other sources sufficient to cover operating expenses and Repair & Replacement (R) costs.
N/A YTD revenues are at a level equal to or above those budgeted.
N/A YTD expenditures are at a level equal to or below those budgeted.
No A monthly manager's report is prepared.
Yes Budget amendments are completed and adopted as necessary.
Finances Comments
The Anchor Point Safewater Corporation provided a Water Utility Business Plan to the RUBA staff. The Anchor Point Safewater Corporation approved the Business Plan as of May 25, 2006. The Board and staff will be using the Anchor Point Business plan budget for their utility. Aurora Accounting and Taxes staff will be responsible for drafting the budget for the utility. Aurora Accounting and Taxes staff indicated the Corporation may be able to break even for this year based on the current revenue and expenditures. Aurora Accounting and Taxes does all the finances in QuickBooks for the Corporation.

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 Corporation Board found a Rules and Regulations for Water Services that may have been adopted by the Board on May 21, 1993. The staff completed a draft water ordinance for the Board to pass at their next meeting. The Corporation has Aurora Accounting and Taxes doing all the accounting in QuickBooks Pro and financial reports are provided to the Board members for there review.

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 Tax Information Release Authorization signed by the President indicated the Corporation did have tax problems but were corrected per the IRS letter. The IRS letter indicated the utility is in compliance at this time.

Personnel System

Essential Indicators
Answer Question
Yes The utility has a posted workers compensation insurance policy in effect.
Sustainable Indicators
Answer Question
No The utility has adopted and uses a Personnel Policy, which has been reviewed by an attorney, AML or Commerce for topics and language.
No 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.
No The utility has an adequate written hiring process.
No 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 utility does have workers compensation insurance that will expire on August 17, 2006. The utility needs to establish a Personnel Policy, job descriptions and a evaluation form so the employees know their job duties and responsibilities. There is a labor dispute with the Department of Labor and the Utility from a former utility operator.

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.
No 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
Utility does not have a manager in place but the President of the Corporation is acting as a manager for the Utility. The Corporation Board members oversee the operation of the Utility and have hired Aurora Taxes and Accounting staff to take care of the day-to-day operations of the utility.

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
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.
Yes The utility has a safety manual and holds safety meetings.
N/A 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.
N/A The utility has completed and distributed its "Consumer Confidence Report".
N/A 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 Corporation business plan has identified 38 residential customers, 18 small commercial users, 2 large commercial users and 1 school. Based on the Business Plan the Utility should breakeven on their operations.