1 budget activity: a096, a100, a113 & a166 commerce infrastructure programs purpose: provide...

1

Budget Activity: A096, A100, A113 & A166 Commerce Infrastructure ProgramsPurpose: Provide financial and technical assistance to jurisdictions to increase their capacity to develop, manage & complete projects.Priority of Government: Improve the economic vitality of businesses and individuals.Agency Priority: Enable Local Governments to have adequate infrastructure and maintain quality of life.

Analysis:In Q4 of FY12, 24 of 42 projects due (57%) were completed by their anticipated completion date:• Public Works Trust Fund 14/22 (64%)• Drinking Water SRF 4/6 (67%)• Capital Direct 2/4 (50%)• Capital Competitive 1/7 (14%)• Community Development (CDBG) None due• CERB 3/3 (100%)

Many contract administrators found themselves short-staffed, unable to raise matching funds, and generally too short on capacity to complete on time.

Volume of Projects dueto completeEach quarter

Action Item Lead Due Date Date Completed

Implement performance based contracting process Karen Larkin July 1, 2011 Complete

Review application (March 2012) & contracting (Complete 09/2011) processes to streamline and make more efficient (PWTF and DWSRF complete).

Karen Larkin March 31, 2012, was Jan 1, 2011

March 31, 2012

Examine CERB process and standardize where possible Karen Larkin July, 1, 2012 was July 1, 2011

Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q1 Q2 Q3 Q42010 2011 2012

0%

25%

50%

75%

100%

69%

55% 59% 57% 63%66%

72%78%

44%

64%78%

57%

Percent of Infrastructure Projects Completed on Time

% Infrastructure Projects Com-pleted on Time

Target

Action Plan

Notes: A project is “completed on time” if the scope of work is completed by the original project completion date. Projects are counted during the quarter they are anticipated to be completed.

Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q1 Q2 Q3 Q42010 2011 2012

0

20

40

60

80

100

2

Budget Activity: A113 Public Works Trust Fund Grants & LoansPurpose: Provide grants/loans and technical assistance to jurisdictions to increase their capacity to develop, manage & complete projects.Priority of Government: Improve the economic vitality of businesses and individuals.Agency Priority: Enable Local Governments to have adequate infrastructure and maintain quality of life.

Analysis:• In Q4 of FY12, 14 of 22 PWTF projects (64%) were completed on

schedule.• Starting in 2012, the time to complete projects will increase to

five years. Contract terms now provide an incentive (interest rate decrease and loan term increase) for completing projects early.

• The chart below shows the volume of projects scheduled to complete each quarter.


Work with clients to scope projects so they are attainable within the construction period.

PWB field Staff 9/30/2011 9/30/2011

Monitor progress & provide timely technical assistance. PWB & CAU Staff On-going On-going

Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q1 Q2 Q3 Q42010 2011 2012

0%

25%

50%

75%

100%

55%47%

56%

43%

55%

76% 74%82%

33%

100%

75%64%

RPM 1437 – Public Works Projects Completed on Time

Actual Target

Data Notes: PWEB is queried for all construction projects closing during the quarter (including special contracts such as Urban Vitality). Projects that do not have a closed or amendment date are checked for a close-out amendment in process.

FY10 Q

1

FY10 Q

2

FY10 Q

3

FY10 Q

4

FY11 Q

5

FY11 Q

6

FY11 Q

7

FY11 Q

8

FY12 Q

1

FY12 Q

2

FY12 Q

3

FY12 Q

4

0

10

20

30

40

50

60

Not com-pleted on time PWTF Completed on Time

3

Budget Activity: A100 Drinking Water State Revolving Fund (DWSRF)Purpose: Financial improvements to public water systems to ensure they meet federal and state health requirements.Priority of Government: Improve the health of Washingtonians.Agency Priority: Enable Local Governments to have adequate infrastructure and maintain quality of life.

Analysis:• In Q4 of FY12, 4 of 6 (67%) DWSRF projects were completed

on time.Notes: • DOH selects projects based on health and safety criteria.

Public Works Board (PWB) staff review for financial viability. Projects have four years to complete projects.

• The chart below shows the volume of projects due to be completed each quarter.


Continue working with clients to close out contracts on-time. CAU Staff Ongoing

Continue to monitor progress through quarterly reports & provide timely technical assistance.

DOH, PWB & CAU Staff

Quarterly

Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q1 Q2 Q3 Q42010 2011 2012

0%

25%

50%

75%

100%

63%

50%

33%

75%67%

60%50%

100%

73%

55%

67%

RPM 1434 – Drinking Water State Revolving Fund (DWSRF) Projects Completed on Time

Actual Target - DWSRF

No

pro

ject

s due

Data Notes: PWEB is queried for all DWSRF construction projects closing during the quarter. Projects that do not have a closed date or an amendment date are checked for a close-out amendment in process.

FY

10

Q1

FY

10

Q2

FY

10

Q3

FY

10

Q4

FY

11

Q5

FY

11

Q6

FY

11

Q7

FY

11

Q8

FY

12

Q1

FY

12

Q2

FY

12

Q3

0

5

10

15

20

25

Not completed on time

DWSRF Completed on Time

4

Budget Activity: A166 Community Projects (Capital Programs)Purpose: Provide grants and technical assistance to jurisdictions to increase their capacity to develop, manage & complete projects.Priority of Government: Improve the economic vitality of businesses and individuals.Agency Priority: Enable Local Governments to have adequate infrastructure and maintain quality of life.

Analysis: Competitive: In Q4 of FY12, 1 of 7 projects (14%) were

completed on time. Direct Appropriation: In Q4 of FY12, 2 of 4 projects (50%) were

completed on time.Many of the competitive grants did not have realistic construction

timetables at project outset. Staff have set an action item to work towards more realistic project schedules.

Volume of projects due to complete each quarterCompetitive Direct


Select projects ready to proceed (except direct appropriation projects). Bill Cole Ongoing

Monitor progress of projects, work with clients to complete projects on time. CAU Staff Ongoing

CP staff to work with contractors towards more realistic construction timetables

Bill Cole On -going

Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q1 Q2 Q3 Q42010 2011 2012

0%

25%

50%

75%

100%

Capital Programs Projects Completed on Time

RPM 1328 – (Competitive)RPM 1329 – (Direct Appropriation)

% Completed on Time - Competitive

Capital Direct % Completed on Time

Target - Competitive

Target - Direct

FY10 Q

1

FY10 Q

3

FY11 Q

5

FY11 Q

7

FY12 Q

1

FY12 Q

3

0

4

8

12

16

FY

10

Q1

FY

10

Q2

FY

10

Q3

FY

10

Q4

FY

11

Q5

FY

11

Q6

FY

11

Q7

FY

11

Q8

FY

12

Q1

FY

12

Q2

FY

12

Q3

FY

12

Q4

0

10

20

30

40

Not Com-pleted on time

Completed on time

5

Budget Activity: A096 Community Development Block Grants (CDBG)Purpose: Provide grants and technical assistance to jurisdictions to increase their capacity to develop, manage & complete projects.Priority of Government: Improve the economic vitality of businesses and individuals.Agency Priority: Enable Local Governments to have adequate infrastructure and maintain quality of life.

Analysis:

• In Q4 of FY12, no projects were due to be completed.

• The following table shows the volume of projects scheduled to complete each quarter.


Select projects ready to proceed. CDBG Staff Each Funding Cycle

Monitor progress and provide timely technical assistance. CAU Staff Ongoing

Increase Target to 70% for 2011-2013 Biennium Karen Larkin September 2011 September 2011

Action Plan

Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q1 Q2 Q3 Q42010 2011 2012

0%

25%

50%

75%

100%86%

64% 67%

82% 80%

67%

86%

100%

67%

100%100%

RPM 1327 – CDBG Projects Completed on Time

% Completed on Time CDBG

Target 50%

Data notes: Projects are counted during the quarter they are expected to be complete.

FY

10

Q1

FY

10

Q2

FY

10

Q3

FY

10

Q4

FY

11

Q5

FY

11

Q6

FY

11

Q7

FY

11

Q8

FY

12

Q1

FY

12

Q2

FY

12

Q3

FY

12

Q4

02468

1012141618

Not Com-pleted on time

CDBG - Completed on Time

No

pro

ject

s du

e

Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q1 Q2 Q3 Q42010 2011 2012

-

500

1,000

1,500

2,000

2,500

1,455

2,109

1,262

1,098

1,367 1,314

841

1,395

842

1,369

1,0061,205

Construction Jobs Created/Retained Through Construction Expenditures

6

Budget Activity: A096, A100, A113, & A166 Commerce Infrastructure ProgramsPurpose: Provide financial and technical assistance to jurisdictions to increase their capacity to develop, manage, & complete projects.Priority of Government: Improve the economic vitality of businesses and individuals. Agency Priority: Enable Local Governments to have adequate infrastructure and maintain quality of life.

Analysis:• In Q4 of FY12, Commerce paid out $55,456,168 for construction

projects, representing 1,205 annual jobs. The increase reflects the start of the 2012 construction season.

• Payments from each program were:CERB: $1,688,140CDBG: $2,146,984PWB: $30,009,363DWSRF: $8,497,352Capital Programs: $8,446,999

plus $4,667,320 Jobs Act)

Note: Construction jobs are used to indicate the amount of money spent on construction in the quarter. Data does not include projects funded through the American Recovery and Reinvestment Act programs.

Jobs are calculated using the Department of Revenue’s IMPLAN® model which estimates that about 23 jobs are produced by $1 million construction dollars. Jobs Act jobs are estimated using OFM’s 9.9 jobs per $1 million.


Collect, track, and report data; analyze trends Karen Larkin On-going

Analyze method to report planning contract payments = number of professional services FTEs (architects, engineers, planners, etc.)

Karen Larkin Sept 2011 Delete – too difficult for few $

7

Analysis:• PWB paid out $38,506,715 in Q4 of FY12, calculated as 879

jobs . The increase reflects the start of the annual construction season.

• Programs currently include only the construction components of:

• Public Works Trust Fund• Drinking Water State Revolving Fund• Direct Appropriations• Urban Vitality and Small Communities in Rural

Counties grant programs.• Emergency Loan Program

Notes: Construction jobs are based on dollars drawn from these accounts during a quarter as a realistic way to estimate the number of construction jobs created.

Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q1 Q2 Q3 Q42010 2011 2012

100

400

700

1,000

1,300

1,600 1,436

1,106

492

243

763 681

272

789

171

595

343

879

RPM 1436 – Public Works Construction Related Jobs

JobsLinear (Jobs)Target


Continue monitoring on quarterly basis PWB & CAU Staff Quarterly

Implement new retroactive reimbursement policy implemented for 2012 construction cycle – initiated in 2010, and awarded in 2011.

PWB & CAU Staff August 2011 August 2011

Budget Activity: A113 – Public Works Infrastructure Grants & Loans.Purpose: Finance the repair and expansion of essential infrastructure systems in communities throughout the state with low

interest loans.Priority of Government: Improve the economic vitality of businesses and individuals.Agency Priority: Enable Local Governments to have adequate infrastructure and maintain quality of life.

Jobs are calculated using the Department of Revenue’s IMPLAN® model. Formula: Paid invoices X .000022815 = number of construction jobs, or roughly 23 jobs per million dollars.

8

Budget Activity: A035 - Community Economic Revitalization Board programs Purpose: Make strategic investments in publicly owned economic development infrastructure projects Priority of Government: Enable Local Governments to have adequate infrastructure and maintain quality of life. Agency Priority: Improve the economic vitality of business and individuals

Analysis: In Q4 of FY12, CERB executed one contract for $1.5 million with

the Port of Skagit County for the acquisition and renovation of two buildings located on port property. This project will create 45 new jobs, and retain 58 existing jobs.

Notes:• Prior to execution, each applicant/contractor has six months

to meet a list of pre-contract conditions and submit supporting documentation to CERB.

• CERB’s funding for the FY12-13 biennium is $5 million. The target was adjusted to a straight line target of 62.5 jobs per quarter, or 1 long-term job per $10,000 CERB funds invested.


Maximize CERB resources by ensuring loan repayments and looking for federal resources.

CERB Staff On-going

Ensure proposed projects meet or exceed CERB funding standards regarding the jobs created and the timeline for completion.

CERB On-going

Work with contractors to ensure that projects move ahead as planned and jobs are created as expected.

CERB staff On-going

Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q1 Q2 Q3 Q42010 2011 2012

0

200

400

600

800

1,000

1,200

128

830892

392

1059

52

929

98 80 0 54 103

# of Jobs Pro-jectedTarget = 62.5 jobs/quarter

RPM 1133 – CERB Jobs Retained and Created

Long term retained or created jobs are projected by the applicant and counted at the point the contract is executed. At contract closeout, actual jobs retained or created are reported. Projects are required to report additional jobs created every other year for five years.

9

Budget Activity: A035 - Community Economic Revitalization Board programs Purpose: Make strategic investments in publicly owned economic development infrastructure projects Priority of Government: Enable Local Governments to have adequate infrastructure and maintain quality of life. Agency Priority: Improve the economic vitality of business and individuals

Analysis: In Q4 of FY12, CERB executed one contract with the Port of Skagit

County for the acquisition and renovation of two buildings located on Port property. The project involved a $150,000 grant, and $1,350,000 loan. $1,200,000 in private investment was leveraged.

The following chart shows that the private investment by the CERB program has been decreasing over time. This is likely due to the recession and the scarcity of investment funds in the private sector. The spike in 2006 was a one billion dollar private investment for solar and semiconductor manufacturing in Moses Lake.


Ensure proposed projects meet or exceed CERB funding standards regarding the private investment leveraged and the timeline for completion.

CERB Staff On-going

Work with contractors to ensure that projects move ahead as planned and jobs are created as expected.

CERB On-going

Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q1 Q2 Q3 Q42010 2011 2012

$0

$50

$100

$150

$200

$250

33

024

200

0.6000000000000010

220

3 6 0 1.6

Projected leveraged pri-vate investment

Target lever-age, $10 private for each $1 CERB

RPM 1134 – CERB Private Investment Leveraged (in millions)

Note: Projected leveraged private investment is estimated by the contractor and counted at contract execution. Actual investment is reported with contract closeout, generally at the end of four years.2003 2004 2005 2006 2007 2008 2009

14.4

38.6 21.4

138.8

6.7 5.92.6

Leveraged pri-vate invest-ment per CERB $

10

Budget Activity: A-167 Economic Development Business Loan ProgramsPurpose: Provide “gap” financing for business startups and expansionsPriority of Government: Improve the economic vitality of businesses and communitiesAgency Priority: Create and retain jobs primarily in rural communities

Analysis: • With two forest product loans funded FY12, an estimated 44

jobs are projected to be created or retained.• New loans from 2007-2011 generated or retained an

additional 824 jobs. An estimated 6,487 jobs were created and retained from 1986 to 2006 as a result of financing provided by the Business Loan Programs.

Costs per job for each loan fund (historical):• Rural Washington Loan Fund = $7,200• CDBG Float Loans = $23,100• Coastal Revolving Loan Fund (RLF) = $5,500• Forest Products RLF = $10,000• HUD Section 108 = $30,100

Next quarter, business loan programs will be reported by the Business Services Division


Execute W-Fund contract for venture capital program. Michael Carr 6/30/2012 6/11/2012

Conduct state wide webinar to roll out CAP program to lenders. Jane Swanson 6/1/2012 5/30/2012

Enrollment of regional banks to CAP Fund Program scheduled to start. Jane Swanson 6/30/2012 6/4/2012

2006 2007 2008 2009 2010 2011 2012 20130

50100150200250300350400

152

286

221

75

235

744

RPM 1815 Business Loan Programs Jobs Created/Retained

(total per fiscal year for all programs)

Jobs are projected by the applicant and counted at the time of loan disbursement.

11

Budget Activity: A-167 Economic Development Business Loan ProgramsPurpose: Provide “gap” financing for business startups and expansionsPriority of Government: Improve the economic vitality of businesses and communitiesAgency Priority: Create and retain jobs primarily in rural communities


Loan Fund% of Outstanding Loan

Portfolio

Private Funds leveraged per $1 in loans funded in 2012

Rural WA Loan Fund 38% $0.00

CDBG Float Loans 3% $0.00

Coastal RLF 3% $0.00

Forest Products RLF 40% $3.83

HUD 108 Loan Guarantee 16% $0.00

Analysis: • In Q4 of FY12, there were no new business loans made and a

moratorium on new loans was enacted 7/1/2012.• Delinquent and non-performing loans comprise the majority of the

portfolio.

Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q1 Q2 Q3 Q42010 2011 2012

$0

$1

$2

$3

$4

$5

19.3

19.8

19.0

20.5

20.1

19.3

19.1

19.0

18.8

14.5

14.1

12.4

Business Loans Portfolio Activity

Outstanding New Loans Receipts

Dol

lars

(in

mill

ions

)

Commerce will issue a request to amend EDA Coastal grant award and review options to transfer the program

Mary Trimarco 11/30/2012

Implement established course of action for the resolution of delinquent loans and recapturing of defaulted loan funds as determined cost effective and appropriate.

Mary TrimarcoJane SwansonLarry Baker

7/1/2013

As of July 1 2012, a moratorium on new loan underwriting was enacted to allow internal review of program strategy and management of existing balance sheet.

Mary TrimarcoJane Swanson

7/1/2012

12

Budget Activity: A035 – Community Economic Revitalization Board Programs – Export Assistance ProgramPurpose: Support the growth of export of Washington state products and servicesPriority of Government: Improve the economic vitality of businesses and individualsAgency Priority: Competitiveness – Retain, grow and attract businesses by improving and communicating Washington’s

competitive advantageAnalysis:

• In Q4 of FY12, providers continue to focus assistance towards businesses that are new to export, rather than new to market. Data show that the hours of technical assistance to each business this quarter increased to an average of 12.5 hours.

Note: Commerce signed performance-based contracts with WSU, UW, Western WA University, Port of Clarkston, Highline Community College, and the City of Bellevue to provide technical assistance to Washington businesses that are new to export or entering a new export market. Action Item Lead Due Date Date Completed

Produce a mid-term performance/progress report to stakeholders and interest groups.

John LaRocque April 2011 Sept 2011

Conduct a twice yearly meeting of grantees to collaborate and share best practices. Close out technical assistance program December 2012.

John LaRocque May 2011 and November 2011

Completed May and Nov 2011

Collect annual project outcomes, to include export sales and jobs created by businesses assisted by Grantees, for three years following project completion.

John LaRocque August 2013, 2014 and 2015

Q7 Q8 Q1 Q2 Q3 Q42011 2011 2012 2012 2012 2012

0500

1000150020002500300035004000

26772353

29853538

28973198

161 145 238 250 347 255

CERB Export Assistance Program Technical Assistance

Hours of Technical AssistanceTotal Number of Businesses Assisted

Q7 Q8 Q1 Q2 Q3 Q42011 2011 2012 2012 2012 2012

0

100

200

300

400

New to Export

New to Market

13

Budget Activity A104: Growth ManagementPurpose: Growth Management Act (GMA) goal of increasing amount of new development occurring inside urban growth areasPriority of Government: Improve the quality of Washington’s natural resourcesAgency Priority: Enable local governments to have adequate infrastructure to accommodate growth and enable economic development and business opportunities, while maintaining the quality of life.

Analysis:

• In 2010, 92.3 percent of the 14,400 housing starts were inside urban growth areas. This was mainly due to King County data:• Volume far above other counties, including a 33 % increase in

housing starts over 2009.• Strong growth management policies - 98.6% of new

development inside urban growth areas.

• Shifts in financing practices, market demand and transportation costs are aligning with growth management goals to encourage development inside urban growth areas.

• Overall development activity decreased dramatically in 2008 -2010 due to more difficult access to financing and significantly reduced demand. In 2008, housing starts were 19,986, and 11,465 in 2009, down from a steady trend of 30,000 units in previous years.

This data is collected annually, in December of the following year. The percentage is the percent of housing starts permitted within cities and unincorporated urban growth areas over the total housing starts in the six “Buildable Lands” counties: Clark, King, Kitsap, Pierce, Snohomish and Thurston.

2003 2004 2005 2006 2007 2008 2009 201082.0%

84.0%

86.0%

88.0%

90.0%

92.0%

94.0%

84.1%

85.4% 85.6%

88.0%88.5%

90.3% 90.4%

92.3%

Measure 1185: Percentage of New Development Inside Urban Growth

Areas


Provide guidance memo to buildable lands counties outlining less-costly alternative methodologies to meet statutory reporting obligations.

Ike Nwankwo December 2010

January 2011

Action Plan

14

Budget Activity : A104 Growth ManagementPurpose: Growth Management Services mission of assisting city and county planning actions consistent with GMAPriority of Government: Improve the quality of Washington’s natural resourcesAgency Priority: Enable local governments to have adequate infrastructure to accommodate growth and enable economic development and business opportunities, while maintaining the quality of life.

Analysis:The trend line shows that the percentage of city and county actions complying with the GMA continues to increase over time in spite of several challenges:• Significant decrease in Commerce technical assistance

capacity due to major staff reductions in FY 2009-2011 and 2011-13 state budgets.

• Decrease in GMA actions delivered to Commerce due to local government staffing reductions. As of Q3 of FY12, data for the first quarter of the 2012 calendar year continues this trend.

2005 2006 2007 2008 2009 2010 2011 201297%

98%

99%

100%

97.9%

97.4%

98.4%

98.0%

99.1% 99.0% 98.9%99.2%

Measure 1336 Percent of City/County actions complying with the Growth Management Act


Updating website to improve access to technical assistance for local governments.

Julie Knackstedt Spring 2012 Spring 2012

Assess BSD Sales Force or similar case management system to analyze Commerce’s direct impact on Growth Management Act compliance.

Leonard Bauer Spring 2012 Spring 2012 Decided not to use new system at this time.

Update four primary guidebooks to improve technical assistance to local governments.

Leonard Bauer Summer 2013

Action Plan

“Complying” means actions submitted to Commerce and:• Not appealed to the Growth Management Hearings boards, • Or if appealed, not found out of compliance.

2005 2006 2007 2008 2009 2010 2011 20120

500

1000

1500

25 30 21 27 13 12 12 4

1094 11441310 1327 1362

11901093

506

Compliant city/county GMA actions submitted to Commerce

Actions with findings of Non-Compliance

Budget Activity: A180 ARRA Brownfields Revolving Loan FundPurpose: To clean up sites that are environmentally contaminated in order to make them marketable for redevelopment.Priority of Government: Improve the Health of Washingtonians.Agency Priority: Enable Local Governments to have adequate infrastructure and maintain quality of life.

Analysis: By the end of Q4 of FY12, grant recipients completed nearly all of

their Brownfield work and are currently closing out their grants. The grant expires in September of 2012 and this program will be closed.

Summary Commerce awarded 97 percent of its $2.6 million Brownfield grant and funded six clean-up projects, to clean up 3.3 acres of petroleum-contaminated soil and hazardous materials. Recipients were:

– Southeast Effective Development (SEED)– Kitsap Housing Authority– Seattle Housing Authority (2 sites)– Hearthstone – City of Palouse

This slide is updated quarterly with no lag in data.

Q3 Q4 Q5 Q6 Q7 Q8 Q1 Q2 Q3 Q4SFY 2010 SFY 2011 SFY 2012

01234567

0.5 0.5

1.74 1.74 1.742.14 2.14

2.94 3.3 3.3

Brownfield Acres Cleaned-ARRA (cumulative targets per fiscal year )

Actual Target


Implement ARRA EPA Brownfields Cooperative Agreement with the US EPA.This includes project technical, financial, regulatory, and reporting administration.

Bill Mandeville

9/30/2012 Ongoing through 9/30/2012

Contract with the sixth and final cleanup project. Bill Mandeville

12/31/2011 March 18, 2012

Monitor the existing projects. Bill Mandeville

Ongoing Ongoing through 8/31/2012

15

16

Budget Activity: A181 (HERA and Dodd Frank Act) Neighborhood Stabilization Program (NSP1 and NSP3, respectively)Purpose: Stabilize housing markets by helping communities recover foreclosed properties and sell/rent them to low- and middle-income households.Priority of Government: Improve the economic vitality of business and individuals.Agency Priority: Enable local governments to have adequate infrastructure and maintain quality of life.Analysis: In Q4 of FY12, • $523,448 was spent on rehabilitation of properties.

($385,463.91 under NSP1 and $137,984 under NSP3)• Two properties were recovered by NSP this quarter.• Staff are monitoring NSP1 jurisdictions and closing out

completed projects. This is the final quarter to report on this slide.

Notes:• Washington State received $33 million in Neighborhood

Stabilization Program( $28M in NSP1 in 2009 and $5M in NSP3 in 2011) to recover a projected total of 576 housing units from foreclosure. To date, as of Q4 of 2012, $28.3 million in NSP1 and NSP3 funds have been spent and 375 properties have been recovered.


Prepare NSP1 & NSP3 Quarterly Performance Reports for HUD by April 30, 2012. Provide assistance as needed to help NSP jurisdictions meet their housing targets.

Genny Matteson& Corina Grigoras

April 30, 2012 April 30, 2012 (NSP1) & April 25, 2012 (NSP3)

Prepare NSP1 & NSP3 Quarterly Performance Reports for HUD by July 31, 2012. Provide assistance as needed to help NSP jurisdictions meet their housing targets.

Genny Matteson& Corina Grigoras

July 31, 2012

Monitor and close out six NSP1 contracts. Genny Matteson & Corina Grigoras

April 30, 2012extended to Dec 31, 2012

By 07/31/12 monitored 9 contracts and closing out 9 contracts.

1 2 3 4 5 6 7 8 9 10 11 12 13 140

20

40

60

80

100

120

140

Foreclosed Properties / Housing Units Recovered or Assisted by NSP

NSP3 Housing Units (ACTUAL)

NSP1 Housing Units (ACTUAL)

NSP1 + NSP3 Housing Units (TARGET)

17

Budget Activity: A092 – Bond Cap Allocation ProgramPriority of Government: Improve the economic vitality of businesses and individualsAgency Priority: Accommodate growth and enable business opportunities that maintain quality of life

Analysis:• FY 2012 Highlights:

o Total of $424 million in bonds issued under the tax-exempt private activity bond cap during FY 2012.

o WSHFC has developed several viable Qualified Energy Conservation Bond projects and will issue its first QECB in August 2012.

o Total carryforward remaining as of July 2012 is $1,060,035,544.

•Bond Cap use pattern notes:o Carryforward allocations from previous years may

be used for up to three additional years.o Since mid-2008, most bond cap issuances have used

previous years’ carryforward.o During 2008, Congress provided extra bond cap

authority for low-income housing projects, increasing the total authority available that year.


Establish a clear tracking system for Qualified Energy Conservation Bond allocations. Aggregate remaining QECB authority for State Energy Trust use. Liz Green-Taylor Dec. 1, 2012 On Track

Re-establish regular meetings with advisory group. Liz Green-Taylor Nov. 1, 2012 On Track

Develop marketing strategy for increasing profile of Small Issue and Exempt Facilities cap as an industrial development financing option. Liz Green-Taylor Jan. 1, 2013 On Track

2006 2007 2008 2009 2010 2011 2012$0

$100,000,000

$200,000,000

$300,000,000

$400,000,000

$500,000,000

$600,000,000

$700,000,000

$800,000,000

Total Issued Annual Allocation (Target)

2006-2012 Annual Bond Cap AllocationCompared with Amount Issued Annually

Note: Total available cap equals the annual allocation plus carryfor-ward from previous years.

18

Budget Activity: A096, A100, A113 & A166 Commerce Contracts Administration UnitPurpose: Manages division infrastructure contracts from contract execution through project close and loan repayments.Priority of Government: Improve the economic vitality of business and individuals.Agency Priority: Enable Local Governments to have adequate infrastructure and maintain quality of life.

Analysis:• Average processing time for Q4 of FY12 was 1.74

days on 341 invoices. CAU is consistently below target.

Notes:• Goal is to reduce time between invoice receipt and

payment from an average of 13.5 days (prior to CAU) to 6.25 days(50% reduction).

• CAU staff enter and track invoices in the Contract Management System database. The measure shows the amount time it takes staff to review invoices for regulatory, program, performance and eligibility compliance. Complete invoices are paid immediately.

• Processing time does not include the time to request and receive missing documentation, or meet compliance requirements.

Invoices are counted in the quarter they are received.


Monitor workload distribution, manage systems to assure targets are met as new contracts are incorporated into workload.

Bruce Lund On-Going

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q1 Q2 Q3 Q42009 2010 2011 2012

0

2

4

6

8

10

12

14

200

250

300

350

400

450

500

5.4 5.7

3.4

5.8

4.6 4.8

2.93.6 3.7

3.75.3

3.64.3

2.7

1.31.7

Actual days to pay invoice

Target

# of Invoices Processed

Average number of days to pay invoices

Number of invoices

19

Budget Activity: A096, A100, A113 & A166 Commerce Contracts Administration UnitPurpose: Manages division infrastructure contracts from contract execution through project close and loan repayments.Priority of Government: Improve the economic vitality of business and individuals.Agency Priority: Enable Local Governments to have adequate infrastructure and maintain quality of life.

Analysis:

• Twelve percent of invoices were held by CAU in Q4 of FY12, mostly due to contract compliance with Davis Bacon, and environmental review with the start of the construction season.

• The goal is to reduce the time between invoice receipt and payment by reducing the percent of invoices held in CAU because of inadequate documentation. Reasons may include:― Financial compliance - valid vendor number,

complete A-19 ― Inadequate documentation - eligible receipts

and time-sheets. Contract compliance – documentation of

meeting federal labor standards, environmental review, deliverables, and reporting.

― Closeout actions – final reports and loan amendments. Data is updated quarterly on invoices received in the quarter.


Develop tracking system for errors. Sheila Lee-Johnston

April 1, 2012 April 1, 2012

Track reasons invoices are held and develop data sheet to target technical assistance to most common types of errors.

Sheila Lee-Johnston

September 30, 2012

Q5 Q6 Q7 Q8 Q1 Q2 Q3 Q42011 2012

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

0

50

100

150

200

250

300

350

400

450

26.5%29.1%

16.6%

9.1%12.6%

Percent of invoices held for payment

# of Invoices Processed

Percent of Invoices Held for Payment

20

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4FY 10 FY 11 FY 12

0

100

200

300

54

91 84 108 10

8

33 50 31

54

55

45 48

111

45

45

45

45

31

22

90

Average Number of Days from Application to Award PWB

CERBCDBGCapital Programs


Review data, analyze milestones and common processes Karen Larkin June 2011 June 2011

Set targets Karen Larkin 09/31/12 was 09/31/11

Action Plan

Analysis: In Q4 of FY12, 40 awards were made.

Capital Programs: No awards this quarter. In 2009-11 Biennium, Capital Programs made 137 awards, averaging 158 days each.

CDBG: 37 awards this quarter, averaging 54 days each, . In 2009-11 Biennium, CDBG made 111 awards, averaging 68 days each.

CERB: Three awards this quarter, each taking 45 days. In 2009-11 Biennium, CERB made 39 awards, averaging 57 days each.

PWB : No awards this quarter. In 2009-11 Biennium, PWB made 35 awards, averaging 33 days each. The PWB funding cycle is in the last quarter each fiscal year.

Budget Activity: A096, A100, A113 & A166 Commerce Infrastructure ProgramsPurpose: Manage awards for infrastructure funding through contract execution.Priority of Government: Improve the economic vitality of business and individuals. Agency Priority: Enable Local Governments to have adequate infrastructure and maintain quality of life.

This data is counted during the quarter the contract is executed.

No

aw

ards

Number of AwardsEach Quarter


0

20

40

60

80

21

Analysis: In Q4 of FY12, only 6 contracts were executed, each program executing them in record time!

Capital Programs : 2 contracts executed, averaging 35 days each. In FY09-11, processed 220 contracts averaging 200 days each.

CDBG: 3 contracts executed, averaging 17 days each. In FY09-11, processed 118 contracts, averaging 81 days each.

CERB: 1 contract executed , taking only 41 days. Generally, CERB recipients have 6 months to complete pre-contract requirements, such as permitting, and proof of funding.

PWB: No contracts, executed. In FY09-11, processed 138 contracts, averaging 72 days each.

Contracts are counted during the quarter they are executed.


0

200

400

600

800

1000

1200

1400

1600

1800

138

66

84 91

115

119

259

78 90

78

493

39411

0

124 11

2 157

432

255

76 120

180

63 110

104 29

9

539

574

Average Number of Days from Award

to Contract Execution

PWTF

CERB

CDBG

Capital Programs


Review data, analyze milestones and common processes Karen Larkin June 2011 June 2011

Set targets Karen Larkin 09/31/12 was 09/31/11

Action Plan

Budget Activity: A096, A100, A113 & A166 Commerce Infrastructure ProgramsPurpose: Manage awards for infrastructure funding through contract execution.Priority of Government: Improve the economic vitality of business and individuals. Agency Priority: Enable Local Governments to have adequate infrastructure and maintain quality of life.

Number of Contracts Executed


050

100150200

22

April 2012 Survey Results2011/2012 Internal Customer Satisfaction Survey

Surv

ey S

core

s

Accurate In-formation

Professional Communication

Courteous Understands Needs

Prompt Overall Average0.000.501.001.502.002.503.003.504.004.505.00

3.91 3.88 4.08 3.88 4.02 3.95

Actual (customers with interaction)Target

Analysis:

Budget Activity: LGID – Contracts Administration Survey Purpose: Priority of Government: Agency Priority:

This is the first time that Contracts Administration Unit (CAU) has been included in the Program 100 survey. CAU customers are primarily CDBG, CERB, PWTF, and Capital Programs.

The ratings and comments suggest that further work is needed to identify specific action items. For example, “professional communication” could be related to quality of written materials, or to interpersonal relationships, or both. The specific issues related to accuracy and understanding needs will also be explored in meetings with program customers.

It is clear that establishing a regular feedback system between CAU and program customers should be a priority.


Managing Director will meet with each program customer to gain input on what’s working, what’s not working, what can be done better, and communication gaps.

Bruce Lund 6/30/2012 – revised to 8/15/2012

Develop a plan identifying initial improvements and a feedback system for continuous improvement based on customer input.

Bruce 8/31/2012

Implement initial improvement activities. Bruce Lund 9/30/2012

Work with program customers to Identify potential areas of standardization Bruce Ongoing

1 budget activity: a096, a100, a113 & a166 commerce infrastructure programs purpose: provide...

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