File #: 2016-0497    Version: 1
Type: Ordinance Status: Passed
File created: 10/10/2016 In control: Budget and Fiscal Management Committee
On agenda: Final action: 11/7/2016
Enactment date: 11/17/2016 Enactment #: 18396
Title: AN ORDINANCE relating to multiple internal service fund and certain capital funds; and amending Ordinance 12076, Section 18, as amended, and K.C.C. 4A.200.150, Ordinance 16976, Section 3, as amended, and K.C.C. 4A.200.160, Ordinance 14306, Section 1, as amended, and K.C.C. 4A.200.250, Ordinance 14005, Section 7, as amended, and K.C.C. 4A.200.260, Ordinance 11591, Section 1, as amended, and K.C.C. 4A.200.290, Ordinance 17752, Section 13, and K.C.C. 4A.200.303, Ordinance 14008, Section 1, as amended, and K.C.C. 4A.200.370, Ordinance 17752, Section 15, and K.C.C. 4A.200.372, Ordinance 12076, Section 29, as amended, and K.C.C. 4A.200.410, Ordinance 3581, Section 3, as amended, and K.C.C. 4A.200.630 and Ordinance 12076, Section 15, as amended, and K.C.C. 4A.200.670.
Sponsors: Dave Upthegrove
Indexes: Budget, Funds
Code sections: 4A.200.150 - ., 4A.200.160 - ., 4A.200.250 - ., 4A.200.260 - ., 4A.200.290 - ., 4A.200.303 - ., 4A.200.370 - ., 4A.200.372 - ., 4A.200.410 - ., 4A.200.630 - ., 4A.200.670 - .
Attachments: 1. 18396.pdf, 2. 2016-0497 legislative review form.pdf, 3. 2016-0497 fiscal note.xls, 4. 2016-0497 transmittal letter.doc, 5. 2016-0497_SR_Tier II fund ordinance.pdf
Staff: Hamacher, Patrick

Drafter

Clerk 11/08/2016

Title

AN ORDINANCE relating to multiple internal service fund and certain capital funds; and amending Ordinance 12076, Section 18, as amended, and K.C.C. 4A.200.150, Ordinance 16976, Section 3, as amended, and K.C.C. 4A.200.160, Ordinance 14306, Section 1, as amended, and K.C.C. 4A.200.250, Ordinance 14005, Section 7, as amended, and K.C.C. 4A.200.260, Ordinance 11591, Section 1, as amended, and K.C.C. 4A.200.290, Ordinance 17752, Section 13, and K.C.C. 4A.200.303, Ordinance 14008, Section 1, as amended, and K.C.C. 4A.200.370, Ordinance 17752, Section 15, and K.C.C. 4A.200.372, Ordinance 12076, Section 29, as amended, and K.C.C. 4A.200.410, Ordinance 3581, Section 3, as amended, and K.C.C. 4A.200.630 and Ordinance 12076, Section 15, as amended, and K.C.C. 4A.200.670.

Body

                                                                                                                                                                                                                               BE IT ORDAINED BY THE COUNCIL OF KING COUNTY:

                                                                                                                                                                                                                               SECTION 1.  Ordinance 12076, Section 18, as amended, and K.C.C. 4A.200.150 are each hereby amended to read as follows:

                                                                                                                                                                                                                               A.  There is hereby created the building repair and replacement fund.

                                                                                                                                                                                                                               B.  Except as otherwise provided in subsection E. of this section, ((T))the fund shall be a ((first)) second tier fund.  It is a capital projects fund.

                                                                                                                                                                                                                               C.  The director of the department of executive services shall be the manager of the fund.

                                                                                                                                                                                                                               D.  The fund shall provide for the receipt of revenues and disbursement of expenditures used to accommodate major building functions and programmatic infrastructure investment projects in existing county-owned buildings or for building replacement.

                                                                                                                                                                                                                               E.  Any subfund of the fund created to hold and manage bond proceeds shall be treated as a first tier fund.

                                                                                                                                                                                                                               SECTION 2.  Ordinance 16976, Section 3, as amended, and K.C.C. 4A.200.160 are each hereby amended to read as follows:

                                                                                                                                                                                                                               A.  There is hereby created the business resource center fund

                                                                                                                                                                                                                               B.  The fund shall be a ((first)) second tier fund.  It is an internal service fund.

                                                                                                                                                                                                                               C.  The director of the department of executive services shall be the manager of the fund.

                                                                                                                                                                                                                               D.  All receipts from rates charged for the fund's services to county agencies shall be deposited in the fund.

                                                                                                                                                                                                                               E.  The fund shall be used to provide services in support of financial and budget enterprise software.

                                                                                                                                                                                                                               SECTION 3.  Ordinance 14306, Section 1, as amended, and K.C.C. 4A.200.250 are each hereby amended to read as follows:

                                                                                                                                                                                                                               A.  There is hereby created the department of information technology capital fund.

                                                                                                                                                                                                                               B.  Except as otherwise provided in subsection E. of this section, ((T))the fund shall be a ((first)) second tier fund.  It is a capital projects fund.

                                                                                                                                                                                                                               C.  The director of the department of information technology shall be the manager of the fund.

                                                                                                                                                                                                                               D.  All revenues identified in the budget ordinance shall be deposited in the fund. 

                                                                                                                                                                                                                               E.  Any subfund of the fund created to hold and manage bond proceeds shall be treated as a first tier fund.

                                                                                                                                                                                                                               SECTION 4.  Ordinance 14005, Section 7, as amended, and K.C.C. 4A.200.260 are each hereby amended to read as follows:

                                                                                                                                                                                                                               A.  There is hereby created the department of information technology operating fund.

                                                                                                                                                                                                                               B.  The fund shall be a ((first)) second tier fund.

                                                                                                                                                                                                                               C.  The director of the department of information technology shall be the manager of the fund.

                                                                                                                                                                                                                               D.  All receipts from rates charged for the fund's services to county agencies shall be deposited in the fund.

                                                                                                                                                                                                                               E.  The fund shall provide for the receipt of revenues and disbursement of expenditures for the assets, liabilities, revenues and expenditures pertaining to the department of information technology.

                                                                                                                                                                                                                               SECTION 5.  Ordinance 11591, Section 1, as amended, and K.C.C. 4A.200.290 are each hereby amended to read as follows:

                                                                                                                                                                                                                               A.  There is hereby created the facilities management fund.

                                                                                                                                                                                                                               B.  The fund shall be a ((first)) second tier fund.  It is an internal service fund.

                                                                                                                                                                                                                               C.  The director of the department of executive services shall be the manager of the fund.

                                                                                                                                                                                                                               D.  All receipts from rates charged for the fund's services to county agencies shall be deposited in the fund.

                                                                                                                                                                                                                               E.  The fund shall support building operations and maintenance with respect to county facilities.

                                                                                                                                                                                                                               SECTION 6.  Ordinance 17752, Section 13, and K.C.C. 4A.200.303 are each hereby amended to read as follows:

                                                                                                                                                                                                                               A.  There is hereby created the financial management services fund.

                                                                                                                                                                                                                               B.  The fund shall be a ((first)) second tier fund.  It is an internal services fund.

                                                                                                                                                                                                                               C.  The director of the department of executive services shall be the manager of the fund.

                                                                                                                                                                                                                               D.  All receipts from rates charged for the fund's services to county agencies shall be deposited in the fund.

                                                                                                                                                                                                                               SECTION 7.  Ordinance 14008, Section 1, as amended, and K.C.C. 4A.200.370 are each hereby amended to read as follows:

                                                                                                                                                                                                                               A.  There is hereby created the information technology services capital fund.

                                                                                                                                                                                                                               B.  Except as otherwise provided in subsection F. of this section, ((T))the fund shall be a ((first)) second tier fund.  It is a capital projects fund.

                                                                                                                                                                                                                               C.  The director of the department of information technology shall be the manager of the fund.

                                                                                                                                                                                                                               D.  All revenues identified in the budget ordinance to be verified in the annual CIP revenue verification process shall be deposited in the fund.

                                                                                                                                                                                                                               E.  The fund shall account for countywide assets, liabilities, revenues and expenditures of information technology capital projects managed by the department of information technology.

                                                                                                                                                                                                                               F.  Any subfund of the fund created to hold and manage bond proceeds shall be treated as a first tier fund.

                                                                                                                                                                                                                               SECTION 8.  Ordinance 17752, Section 15, and K.C.C. 4A.200.372 are each hereby amended to read as follows:

                                                                                                                                                                                                                               A.  There is hereby created the information technology strategy and performance operating fund.

                                                                                                                                                                                                                               B.  The fund shall be a ((first)) second tier fund.  It is an internal service fund.

                                                                                                                                                                                                                               C.  The director of the department of information technology shall be the fund manager.

                                                                                                                                                                                                                               D.  The purpose of the information technology strategy and performance operating fund is to account for the assets, liabilities, revenues and expenditures pertaining to the information technology strategy and performance operations including the chief information officer, the strategic planning office, performance evaluation, information technology governance and information technology security and privacy.

                                                                                                                                                                                                                               E.  All receipts from rates charged for the fund's services to county agencies shall be deposited in the fund.

                                                                                                                                                                                                                               SECTION 9.  Ordinance 12076, Section 29, as amended, and K.C.C. 4A.200.410 are each hereby amended to read as follows:

                                                                                                                                                                                                                               A.  There is hereby created the major maintenance reserve fund.

                                                                                                                                                                                                                               B.  Except as otherwise provided in subsection H. of this section, ((T))the fund shall be a ((first)) second tier fund.  It is a capital projects fund.

                                                                                                                                                                                                                               C.  The director of the department of executive services shall be the manager of the fund.

                                                                                                                                                                                                                               D.  The purpose of the fund is to provide for the periodic replacement or repair of major building systems and components at King County facilities maintained by the facilities management division so that each building will realize its full useful life.  Expenditures from the fund shall only be used for capital maintenance projects and shall not be used to finance programmatic infrastructure investments.

                                                                                                                                                                                                                               E.  Programmatic infrastructure investments shall be financed from other appropriate funding sources but may be combined with work financed by the fund. 

                                                                                                                                                                                                                               F.  Historic preservation and restoration projects shall be eligible for financing from the fund, but the maintenance of major building systems and components necessary for a building to realize its full useful life should be prioritized ahead of historic preservation and restoration projects, except where combining projects eligible for major maintenance reserve funds would achieve a cost savings.  Any historic preservation or restoration project analysis should consider the scheduling impact to other major maintenance projects and potential revenue sources other than the major maintenance reserve fund.

                                                                                                                                                                                                                               G.  Major maintenance program costs are financed by the fund.  The calculation of the amount necessary to finance the fund is based on the building-specific per-square-foot charge corresponding to the mix of building systems and components and life cycle costs assumptions as determined by the maintenance financial model supported by the facilities management division.  The financial model shall include tenant area finishes to include carpet and paint.  The fund shall be fully financed based on the financial model and funding requirements shall be fulfilled by:

                                                                                                                                                                                                                                 1.  Transfers that are contributions from the general fund;

                                                                                                                                                                                                                                 2.  Transfers that are contributions from the non-general fund agencies:

                                                                                                                                                                                                                                   a.  when housed in buildings owned by the county or for which the county is responsible for debt service costs; and

                                                                                                                                                                                                                                   b.  for a proportional allocation of major maintenance reserve fund costs attributable to space occupied by general fund agencies included in the overhead cost allocation outlined in K.C.C. ((4.04.045)) 4A.100.050; and

                                                                                                                                                                                                                                 3.  Contributions from the operating budgets of general fund agencies that receive partial reimbursement from other jurisdictions((; and

                                                                                                                                                                                                                                 4.  Other revenue sources, including investment earnings)).

                                                                                                                                                                                                                               H.  Any subfund of the fund created to hold and manage bond proceeds shall be treated as a first tier fund.

                                                                                                                                                                                                                               SECTION 10.  Ordinance 3581, Section 3, as amended, and K.C.C. 4A.200.630 are each hereby amended to read as follows:

                                                                                                                                                                                                                               A.  There is hereby created the risk management fund.

                                                                                                                                                                                                                               B.  The fund shall be a ((first)) second tier fund.  It is an internal service fund.

                                                                                                                                                                                                                               C.  The director of the department of executive services shall be the manager of the fund.

                                                                                                                                                                                                                               D.  All receipts from rates charged for the fund's services to county agencies shall be deposited in the fund.

                                                                                                                                                                                                                               E.  Uses of the fund shall be limited to:

                                                                                                                                                                                                                                 1.  Payment of claims and related costs;

                                                                                                                                                                                                                                 2.  Payment of negotiated settlements and related costs;

                                                                                                                                                                                                                                 3.  Payment of judgments and related costs;

                                                                                                                                                                                                                                 4.  Payment of costs incurred in litigation or in anticipation thereof, including but not limited to attorney's fees and the costs of discovery and witnesses;

                                                                                                                                                                                                                                 5.  Payment of insurance premiums and related costs;

                                                                                                                                                                                                                                 6.  Payment of program administration costs.

                                                                                                                                                                                                                               SECTION 11.  Ordinance 12076, Section 15, as amended, and K.C.C. 4A.200.670 are each hereby amended to read as follows:

                                                                                                                                                                                                                               A.  There is hereby established the self insurance reserve fund, which shall be known as the safety and worker's compensation fund.

                                                                                                                                                                                                                               B.  The fund shall be a ((first)) second tier fund.  It is an internal service fund.

                                                                                                                                                                                                                               C.  The director of the department of executive services shall be the manager of the fund.

                                                                                                                                                                                                                               D.  All receipts from rates charged for the fund's services to county agencies shall be deposited in the fund.

                                                                                                                                                                                                                               E.1.  The fund shall be used for the purposes in chapter 51.15 RCW.

                                                                                                                                                                                                                                 2.  The fund is intended to collect and disburse moneys to carry out the functions of the safety and worker's compensation program, and moneys shall not be attached for other purposes, unless that action is expressly approved by the council.

                                                                                                                                                                                                                                 3.  Industrial insurance rates shall be established such that sufficient revenues shall accrue to the fund to pay for the cost of the program functions and to maintain an excess of current and other assets over liabilities, excluding estimated claims settlements.  The rates shall take into consideration, but need not be limited to the following factors:

past losses for each industrial insurance classification, the number of hours worked in each classification, and estimated claims settlements for injury claims.