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

Brice Eningowuk  
DCRA Regional Office:
Gov't Type:
Second Class City 
Agreement Date:
City of Atka 
Assessment Status:
Assessment Date:
Exp Date:
Last Updated:
Community Sanitation Overview:
The community water/sewer system was constructed in 1978 and was expanded in 1982 to a new housing area. Water is supplied by a stream and wooden reservoir dam northwest of the City. It is stored in two 30,000-gallon water tanks before distribution. All 50 homes are connected to the piped water and sewer system. Sewage is piped to a central septic system. Wastewater flows untreated through outfall lines into Nazan Bay. Garbage is collected twice a week. The City has requested funds to increase water capacity, replace the water treatment system, replace connections, and treat the sewage outfall. A hydro-electric system at Chuniisax Creek will complete construction by 2011. Funding is from Alaska Department of Economic Development, Division of Administration, Alaska Energy Authority and the City of Atka. The sewer portion is in the design phase and will provide a sewer upgrade to the distribution system at the old village. Water portion is in the planning phase for a new 130,000 gallon tank and water treatment plant. The City of Atka assumed operation of the electric utility in 2007. Work began on extension and repavement of the Atka airstrip in summer of 2008; completed in 2009. Atka Pride Seafoods processing plant will be expanded to allow for processing of multi-species. A crab allocation was purchased by Atka Pride Seafoods and APICDA from Westward Seafoods. The crab will be processed in the local plant. The City of Atka does not charge customers what it costs them to operate the utility but continues to have other sources of funds to cover all utility expenses. The City of Atka has consistently met all essential capacity indicators and the majority of the sustainable indicators. 
RUBA Status & Activities This Qtr:
Anchorage RUBA staff contacted the City of Atka staff to request documents. Atka staff has been very responsive and provided the necessary documents in a timely manner. 
RUBA Activities for the Coming Qtr:
RUBA staff will continue to work with city staff upon request. Also, Anchorage RUBA staff will inquire to conduct a new RUBA assessment.
Essential Indicators:
27 of 27
Sustainable Indicators:
23 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.
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 of Atka uses the fiscal year that starts July 1. Residential electricity is charged through the AMPY system, a pre-pay card system for customers. The future plan is to have all services under one system with one payment. Atka is home to Atka Pride Seafoods and receives local fish tax revenues annually. Atka also receives significant revenues from fish taxes collected in the unincorporated area of the western Aleutians. The FY11 City Budget and non code ordinance was retrieved from the State of Alaska's Financial Documents Delivery System. The city has a budget deficit with Total Revenues. All revenues are running at a deficit except for the General Funds. Total revenue in the General Fund is $537,800 and expenses are $197,512 for an excess of $340,288. The revenue for the Water Sanitation is $22,000 and the expenses are $49,119, for a deficit of $27,119. The Revenue for the Electric is $250,000 and the expenses are $287,329 for a deficit of $52,329. There is a Capital Project Grant from AEA for an Electric Distribution/AMPY with a City match of $120,000. This will incorporate the water distribution into the AMPY meters. Reserves in Merrill Lynch, current assets of diesel and gasoline inventory, and values for fixed assets and estimates on the Fish Taxes are stated to be conservative by the City Administrator and will be used to cover the deficit. Monthly financial reports provided to the governing body are Profit and Loss Budget vs. Actual. They identify year-to-date expenditures, adopted budget, and amount remaining over/under budget.

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 accounting system uses online QuickBooks Pro. The City Administrator is responsible for overseeing accounting functions, maintains a city office in Anchorage and visits Atka when the need arises. Check writing and receipt of cash is handled by staff in the City office located in Atka. The Atka COA has balance totals for all assets, liabilities, and equity. Currently, it is detailed with the same expenditure items used in each department and given a different number for each department. The City does have an adopted purchasing system. The Mayor approves purchases within the scope of the adopted operating budget. Major purchases are approved by the City Council. Water and sewer payments are collected using a Power Stat Pre-Pay system.

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 IRS report was sent to the city on September 28, 2011 and has not processed the request as of 10/5/11. The state ESC report from October 4, 2011 states that the city is in compliance with state tax filing, deposits and is not on the July - August 2011 lien watch.

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 is verified with a call to AML/JIA on July 1, 2011 and is valid through July 1, 2012. Employment recruitment is done within the city first. Every original appointment and every promotional appointment of permanent employees is subject to a probationary period of three months from the date of appointment. An evaluation of performance completed at the end of the probationary period and thereafter, on their anniversary date.

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 Atka Administrator maintains an office in Anchorage and travels to Atka when necessary. The Mayor and City Council are responsible for daily supervision of staff including supervision of the Administrator. The Administrator's office is connected to Atka via fax, e-mail, and phone. The City has two operators, both are certified in water and wastewater treatment until 12/31/2010. They each work full-time. They both have additional duties besides maintaining the water and sanitation systems. The Atka City Council meets monthly for regular meetings. The City Council schedules special meetings when the need arises. All meetings comply with the Open Meeting Act. The City has adopted a Water/Sewer Utility ordinance. The ordinance provides for flat rate service fees for four classes: residential, public facility, commercial, and contract. Customers pay a rate that covers a portion of the cost to provide the services and subsidizes the remaining operating cost with general funds. The City Council adopted a revised ordinance in December, 2008 to allow for collections of past due accounts through a pre-pay system used for sales of electricity. In January, 2009 the pre-pay system was set up to allow the utility to collect for water whenever a customer comes in to purchase electricity. The City has adopted an organizational chart that identifies positions and duties for each position.

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.
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".
No 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
There are two operators with the CIty of Atka and both operators are certified until 12/31/2010. A inquiry was made by RUBA staff regarding the certifications to the city administrator. The water operators provide verbal reports to the Mayor. The city administrator provides written reports to the governing body. The 2009 Community Confidence Report was completed and distributed. The City Administrator will be actively working with the community maintenance staff to develop both an inventory control list and a critical spare parts list. The mayor and city clerk have attended RUBA Utility Management and QuickBooks classes held in Anchorage in 2009. CWS in Atka is on the SNC List for Stage 1 monitoring requirements.