Drafter

Clerk 09/23/2025

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AN ORDINANCE relating to Title 4A, revenue and financial regulation; and amending Ordinance 17293, Section 50, as amended, and K.C.C. 4A.10.237, Ordinance 17293, Section 82, and K.C.C. 4A.10.455, Ordinance 17930, Section 6, and K.C.C. 4A.10.469, Ordinance 17929, Section 14, as amended, and K.C.C. 4A.100.030, and Ordinance 620, Section 4, and K.C.C. 4A.100.100, recodifying K.C.C. 4A.10.237, and repealing Ordinance 17293, Sections 14, and K.C.C. 4A.10.070 and Ordinance 17930, Section 8, and K.C.C. 4A.10.527.

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                     BE IT ORDAINED BY THE COUNCIL OF KING COUNTY:

                     SECTION 1.  Ordinance 17293, Section 14, and K.C.C. 4A.10.070 are hereby repealed.

                     SECTION 2.  K.C.C. 4A.10.237 is hereby recodified as a new section in K.C.C. 4A.10 to follow K.C.C. 4A.40.260.

                     SECTION 3.  Ordinance 17293, Section 50, as amended, and K.C.C. 4A.10.237 are hereby amended to read as follows: 

                     (("Design phase" means the time during which design is completed, permits and other permissions are secured so that the project, or staged elements of the project consistent with the project scope, can proceed to implementation.  Design phase also includes development of a final cost estimate, plans, specifications and a bid package.)) 

"Final design phase" means the time during which design is fully completed and refined, permits and other regulatory permissions are secured, and a detailed cost estimate is developed to reduce uncertainty so the project can proceed to implementation.

                     SECTION 4.  Ordinance 17293, Section 82, and K.C.C. 4A.10.455 are hereby amended to read as follows:

                     "Preliminary design phase" means the time during which when evaluation and analysis of potential project alternatives occurs, and the preferred alternative is selected ((and designed sufficiently to establish a project baseline, at thirty to forty percent design)).

                     SECTION 5.  Ordinance 17930, Section 6, and K.C.C. 4A.10.469 are hereby amended to read as follows:

                     "Project baseline" means the scope, schedule, and ((budget of a capital project that are set by the implementing agency at the conclusion of a project's preliminary design phase, which is after the preferred alternative has been selected and design has progressed adequately to make reasonable and informed commitments at thirty to forty percent design)) cost baselines that are used to measure and compare actual project performance against the planned performance.  The project baseline can be established at any time after the project charter, typically once known risks and uncertainties have been identified vetted, and quantified.  For performance reporting purposes, baseline shall be established no later than the sixty percent design milestone.

                     SECTION 6.  Ordinance 17930, Section 8, and K.C.C. 4A.10.527 are hereby repealed.

                     SECTION 7.  Ordinance 17929, Section 14, as amended, and K.C.C. 4A.100.030 are hereby amended to read as follows:

                     A.  All capital projects and programs shall be included in the six-year capital improvement program for the fiscal period and the next two fiscal periods and shall be organized by fund in the budget.  The capital improvement program shall reflect changes, as needed, to capital projects resulting from determinations that the capital budget is not supported by fund balance and revenues to be collected.  A bond ordinance to provide funding for a capital project is not an appropriation for capital projects.

                     B.1.  The capital improvement program shall include the following supporting data in a standard format for each capital project, in any combination of:

                         a.  an electronic database;

                         b.  a capital appropriation proposal form; or

                         c.  a separate submission by the executive.

                       2.  Supporting data shall include:

                         a.  a capital project number, project title, division, department, council district, fund number and fund name;

                         b.  estimated expenditure authority for at least the next six years for the capital improvement program;

                         c.  an expenditure authority proposed for existing or new capital projects during the ensuing fiscal period, with information indicating sources of proposed revenue;

                         d.  anticipated project schedule information;

                         e.  estimated net annual operating costs associated with each capital project upon completion, if applicable;

                         f.  an enumeration of any revised capital project cost estimates;

                         g.  expenditure authority amount to date and moneys expended to date;

                         h.  anticipated specific project phases within each capital project, including the individual allocations by project phase;

                         i.  a list of planned subprojects including an assigned capital project number, project title, division, department, council district, fund number and fund name;

                         j.  a list of capital project expenditure authority requests, including an explanation of how the capital project complies with applicable plans under K.C.C. 4A.100.060;

                         k.  one emergent need contingency project and any grant contingency projects under K.C.C. 4A.100.080 and 4A.100.090 may be included in the capital improvement program at the fund level;

                         l.  separate operating and operating transfers to capital appropriations if a single fund finances both operating expenses and capital projects;

                         m.  for technology projects, the chief information officer's assessment required under K.C.C. 2A.380.200.A.2.;

                         n.  the project's scope and a brief description of how the project satisfies the agency's site master plan, if applicable;

                         o.  current phase of project and whether the project has been designated as a risk monitored project;

                         p.  project baseline, if established, and explanation of any significant variance from it;

                         r.  estimated cost through project closeout, which may be expressed as a range if baseline is not established and planned project costs by phase;

                         s.  identification of funding sources, funding status, and funding risks; and

                         t.  description of key project risks, including summary of top risks in the risk register, if applicable.

                     C.1.  Capital project cost estimates shall:

                         a.  be prepared in accordance with applicable industry standards;

                         b.  be identified by the executive as part of the budget;

                         c.  include requirements of external funding sources and county policies, including, but not limited to, standards regarding estimate accuracies, methodology for determining contingency included for uncertainty and the cost index used to define the time value of money.

                       2.  The level of detail incorporated within each cost estimate shall be commensurate with the information available at each phase of a capital project and shall be consistent with the Association for the Advancement of Cost Engineering International cost estimate classification system.  For technology projects, cost estimates shall be consistent with the department of information technology project management methodology.  The estimates for all succeeding phases shall be updated to represent the latest project information.

                     D.  An updated capital appropriation proposal form shall be provided for each capital project expenditure authority request included in a proposed capital budget appropriation ordinance.

                     E.  Each technology capital project seeking expenditure authority shall also include a benefit achievement plan describing:  how the proposed technology investment will produce an improvement or savings in county services; how the improvement or savings will be measured; how much improvement or savings is expected; and when the improvement or savings is likely to be achieved.

                     F.  The major maintenance capital program submitted with the budget shall include the following:

                       1.  A detailed financial plan covering at least six years setting forth the sources and amounts of revenues used to finance major maintenance reserve fund expenditures in each year of the plan.  The revenues from a particular source may change from year to year, as economic and budgetary circumstances warrant.  However, if proposed revenues do not fully support the major maintenance financial model, then the discrepancy shall be documented together with justification and a recovery plan outlining how the deficiencies will be restored;

                       2.  The major maintenance financial model is the analytical system for the expenses for periodic replacement of major county building systems and components and for developing the revenue estimates necessary to cover those expenses.  The model shall include any proposed changes from the previous fiscal period model to building systems and components, life cycles, estimates, percentage allocations or other associated assumptions that form the basis of the model; and

                       3.  The proposed major maintenance program plan, which is the prioritized list of projects transmitted to the council in the budget with the major maintenance reserve fund appropriation request for the ensuing fiscal period, accompanied by criteria used to develop the list and any changes from the previous fiscal period list.  The plan shall be prioritized and include project names, project numbers and project expenditure authority requests.  The final program plan is adopted by the council as part of the budget appropriation ordinance.  Expenditures from the major maintenance reserve fund may be made only for approved capital projects on the program plan or approved reallocations but total expenditures shall not exceed the amount appropriated to the fund.

                     G.  Major maintenance program costs shall be financed by the major maintenance reserve fund.  The calculation of the amount necessary to finance facility infrastructure maintenance costs for each building shall be determined by the major maintenance financial model.  Proposed changes to the financial model are subject to the reporting requirements in subsection F.2. of this section.

                     SECTION 8.  Ordinance 620, Section 4, as amended, and K.C.C. 4A.100.100 are hereby amended to read as follows:

                     A.  The following reports shall be prepared:

                       1.  A comprehensive annual financial report.  The executive shall annually prepare and publish a comprehensive financial report covering all funds and financial transactions of the county during the preceding fiscal period;

                       2.  Internal county audit reports.  The county auditor shall periodically prepare and publish the results of examinations performed by the county auditor's office of the effectiveness, efficiency, and equity of the operation of county agencies.  The examination report and any departmental response to the audit shall be made available by the county auditor, either electronically or in print formats, and by posting on the Internet;

                       3.  A state audit report.  The examination report of the county's financial affairs and transactions issued annually by the Office of the State Auditor and the county response to the audit shall be made available to the State Auditor annually, either electronically or in print formats, and by posting on the Internet; and

                       4.  Quarterly budget management reports.

                         a.  The executive shall submit to the council a report detailing the results of actual revenue collections and expenditures for each fund.  The report shall:

                           (1)  present current financial plans for operating and capital funds that have gone through the office of performance, strategy, and budget's financial monitoring process, as described in the current comprehensive financial management policies adopted by council motion during the current quarter, including actual expenditures and revenues;

                           (2)  identify significant variances in revenue and expenditure estimates for the general fund;

                           (3)  list any transfer of emergent need contingency expenditure authority that would increase the total budget of a capital project, identifying those increases that are greater than fifteen percent;

                           (4)  list any transfer of grant contingency expenditure authority;

                           (5)  list any capital budget appropriations that have lapsed because the project has been completed or abandoned, or because no encumbrance or expenditure has been made for three years;

                           (6)  report scope, schedule, and budget status for capital projects that has a baseline with total estimated cost greater than one million dollars;

                           (7)  summarize the risks included in the risk assessment register for baselined risk monitored projects in the preliminary and final design phases, the acquisition phase, and the implementation phase, summarize change orders and amendments, explain change orders and amendments that have the cumulative potential to carry the project over project baseline, and summarize the results of the latest earned value analysis;

                           (8)  report on all incremental changes to sections and attachments to the budget appropriations ordinance made during the quarter, including the ordinance numbers making the changes; and

                           (9)  report on waivers to the regulations of K.C.C. chapter 18.17, in compliance with K.C.C. 18.17.060.

                         b.  The report shall be electronically filed with the clerk of the council, who shall retain an electronic copy and provide and an electronic copy to all councilmembers and the lead staff of the budget and fiscal management committee, or its successor, no later than June 1 for the first quarterly report, September 1 for the second quarterly report, December 1 for the third quarterly report and March 1 for the fourth quarterly report.  The director of performance, strategy, and budget shall also be responsible for posting the report on the Internet.

                     B.  The King County project control officer is requested to report annually on the process used to ensure that all departments and divisions adhere to King County's construction management policies and procedures, the compliance rate for following the county's construction management policies and procedures, and the steps being taken to increase compliance with King County's construction management policies and procedures.  Additionally, the report shall summarize all findings in regards to any changes in a contract's scope, schedule, or budget.  The King County project control officer shall electronically file the report by June 1 of each calendar year with the clerk of the council, who shall retain an electronic copy and provide an electronic copy to all

councilmembers, the lead staff for the budget and fiscal management committee or its successor and the county auditor's office.