Agenda, regular meeting — Adelanto City Council, April 12, 2023 (part 1 of 2)

AGENDA

REGULAR MEETING

OF THE ADELANTO CITY COUNCIL,

ADELANTO PUBLIC FINANCING AUTHORITY,

ADELANTO PUBLIC UTILITY AUTHORITY,

ADELANTO COMMUNITY BENEFIT CORPORATION,

AND THE SUCCESSOR AGENCY BOARD
APRIL 12, 2023

City Council
Gabriel Reyes, Mayor
Daniel Ramos, Mayor Pro Tem
Joy Jeannette, Councilor
Angelo Meza, Councilor
Amanda Uptergrove, Councilor
City Manager
Jessie Flores
City Attorney
Marc Tran
Meetings held:
2 nd & 4th Wednesday
Adelanto Governmental Center
City Council Chambers
11600 Air Expressway, Adelanto
Closed Session: 5:30 p.m.

Open Session: 7:00 p.m.

City Council, essential staff, and the public are allowed to be physically present inside Council Chambers and will be seated the recommended distance from each other. Public participation is also call-in or via written correspondence.

NOTE: PLEASE TURN CELL PHONES OFF OR PLACE THEM ON VIBRATE DURING THE CITY COUNCIL MEETING AS A COURTESY TO OTHERS. Thank you, Administrative Staff The City Council Agenda packet may be reviewed by the public at the reception counter in City Hall. Any writings or documents pertaining to an open session item, provided to a majority of the City Council within 72 hours of a regular meeting, shall be made available for public inspection at the reception counter in City Hall at 11600 Air Expressway, Adelanto, CA 92301, during normal business hours. Members of the public can view the agenda or download any staff reports in advance by accessing the City website at www.ci.adelanto.ca.us on Thursday the week before the scheduled meeting.

The public may view the meeting or participate / comment remotely as follows:
• All of our meetings are streamed live at
https://adelanto.granicus.com/ViewPublisher.php?view_id=1 and are also available for playback after the meeting.
• Participate via zoom please log in using any of the options below:
• Teleconference
https://zoom.us/j/93146444676?pwd=YVU5anBFak1xSFZ4emNnNW9FNExiQT09 Or Telephone:
1-669-900-6833
Webinar ID: 931 4644 4676
Passcode: 7601
1 REGULAR MEETING
APRIL 12, 2023
11600 Air Expressway • Adelanto, CA 92301 • (760) 246-2300 • www.ci.adelanto.ca.us Submit written comments:

We encourage submittal of written comments supporting, opposing, or otherwise commenting on an agenda item, for distribution to the City Council prior to the meeting. Send emails to [email protected]; written correspondence may be sent to Brenda Lopez, 11600 Air Expressway Adelanto CA 92301.

Rules of Decorum
“Members of the Public are advised that all PAGERS, CELLULAR TELEPHONES and any OTHER COMMUNICATION DEVICES are to be turned off upon entering the City Council Chambers.” If you need to have a discussion with someone in the audience, kindly step out into the lobby. Under the Government Code, the City Council may regulate disruptive behavior that impedes the City Council Meeting.

Disruptive conduct may include, but is not limited to:
• Screaming or yelling during another audience member’s public comments period; • Profane language directed at individuals in the meeting room; • Throwing objects at other individuals in the meeting room; • Physical or verbal altercations with other individuals in the meeting room; and • Going beyond the allotted three-minute public comment period granted.

When a person’s or group’s conduct disrupts the meeting, the Mayor or presiding officer will request that the person or group stop the disruptive behavior, and WARN the person or group that they will be asked to leave the meeting room if the behavior continues.

If the person or group refuses to stop the disruptive behavior, the Mayor or presiding officer may order the person or group to leave the meeting room, and may request that those persons be escorted from the meeting room. Any person who, without authority of law, willfully disturbs or breaks up a City Council meeting is guilty of a misdemeanor. (Pen. Code, § 403.) It should also be noted that any person who WILLFULLY disturbs or breaks up the City Council meeting may be arrested for a misdemeanor offense. (Penal Code, § 403.)

MEMBERS OF THE PUBLIC WISHING TO ADDRESS THE CITY COUNCIL MEMBERS

ARE REQUIRED TO FILL OUT A SPEAKER REQUEST FORM AND PLACE IT IN THE TRAY ON THE PODIUM PRIOR TO MEETING. Thank you, Administrative Staff The City Council packet may be reviewed by the public at the reception counter in City Hall. Any writings or documents pertaining to an open session item, provided to a majority of the City Council Members within seventy-two (72) hours of a Regular Meeting and twenty-four (24) hours of a Special Meeting. Members of the public can view the agenda or download any staff reports in advance by accessing the City’s website at www.ci.adelanto.ca.us on the Thursday of the week before the scheduled meeting.

AMERICANS WITH DISABILITIES ACT: In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Clerk at (760) 246-2300, ext. 11123, no later than seventy-two (72) hours prior to the meeting per 28 CFR 34.102.104.
2 REGULAR MEETING
APRIL 12, 2023
11600 Air Expressway • Adelanto, CA 92301 • (760) 246-2300 • www.ci.adelanto.ca.us TIME: _____________
ROLL CALL: Councilor Jeannette ________
Councilor Meza ________
Councilor Uptergrove ________
Mayor Pro Tem Ramos ________
Mayor Reyes ________

1. City Manager to announce if there is any addition/removal of items from the agenda.

C. APPROVAL OF AGENDA
D. ANNOUNCEMENT OF CLOSED SESSION ITEMS

1. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
(GOVERNMENT CODE SECTION 54956.9, SUBDIVISION (D)(4) – IN RE: National Prescription Opiate Litigation, U.S. District Court, Northern District of Ohio, Eastern Division, Case No. 1:17-MD-02804.

2. CONFERENCE WITH REAL PROPERTY NEGOTIATORS PURSUANT TO GOVERNMENT CODE SECTIONS 54954.5 (B) AND 54956.8:

Property: 11600 Air Expressway, Adelanto, CA (APNs 045922104, 045922106) Agency Negotiators: Jessie Flores, City Manager and Marc Tran, City Attorney Negotiating Parties: Luis Salinas, Assistant Facilities Manager, State Assembly Under Negotiation: Price, terms, and conditions of potential lease of office space.

A. CALL TO ORDER—CLOSED SESSION
B. DELETIONS/ADDITIONS TO AGENDA
3 REGULAR MEETING
APRIL 12, 2023
11600 Air Expressway • Adelanto, CA 92301 • (760) 246-2300 • www.ci.adelanto.ca.us E. PUBLIC COMMUNICATION ON CLOSED SESSION ITEMS
F. CONVENE INTO CLOSED SESSION
TIME: _____________

1. Motion to go into Closed Session.

M__________________S__________________ACTION_________________ TIME: _____________
ROLL CALL: Councilor Jeannette ________
Councilor Meza ________
Councilor Uptergrove ________
Mayor Pro Tem Ramos ________
Mayor Reyes ________
INVOCATION:

FLAG SALUTE: ______________________
H. CLOSED SESSION REPORT
I. CITY MANAGERS ANNOUNCEMENTS AND REPORT
J. CITY COUNCIL ANNOUNCEMENTS AND REPORTS
G. CALL TO ORDER—REGULAR MEETING
4 REGULAR MEETING
APRIL 12, 2023
11600 Air Expressway • Adelanto, CA 92301 • (760) 246-2300 • www.ci.adelanto.ca.us K. PRESENTATIONS

1. Certificate of Recognition presented to Ryan Garcia.

2. Certificate of Recognition presented to the HD Queenz.

L. PUBLIC COMMUNICATIONS
This is the time and place for members of the public to comment on any matter within the jurisdiction of the City Council. Members of the public wishing to address the City Council Members on items not on the agenda can push *9 on their telephones to raise their hands. The City Clerk will call on you in the order received. You will be asked to un-mute - to do so you must push *6. Please state your name for the record. There is a time limit of three (3) minutes.

Members of the audience may address the City Council on non-agenda items; however, in accordance with Government Code section 54954.2, the City Council may not take action on an item not appearing on the agenda
M. CONSENT CALENDAR
Items on the Consent Calendar are considered routine in nature and non-controversial, and require no further discussion by the City Council. They may be acted on in one motion unless a member of the City Council or member of the audience requests a separate discussion on an item.

MOTION APPROVING THE CONSENT CALENDAR AS PRESENTED

1. Waiver of Full Reading of Ordinances. Proposed action to waive full reading (except title) of all ordinances appearing on this City Council agenda as authorized by Government Code Section 36934, unless otherwise directed by the City Council.

2. Receive and file Business License Department Report.

3. Approval of 2nd reading of Ordinance No. 638 entitled:

ORDINANCE NO. 638

AN ORDINANCE OF THE CITY COUNCIL, OF THE CITY OF ADELANTO,

SAN BERNARDINO COUNTY, STATE OF CALIFORNIA, ESTABLISHING CHAPTER 5.84 (FOOD TRUCKS) TO TITLE 5 (BUSINESS LICENSES AND

REGULATIONS) OF THE ADELANTO MUNICIPAL CODE REGULATING

FOOD TRUCKS
5 REGULAR MEETING
APRIL 12, 2023
11600 Air Expressway • Adelanto, CA 92301 • (760) 246-2300 • www.ci.adelanto.ca.us

4. Approval of 2nd Reading of Ordinance No, 642 entitled:

ORDINANCE NO. 642

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
ADELANTO AMENDING SECTION 17.80.130 OF CHAPTER 17.80 (

SPECIAL USE STANDARDS) OF TITLE XVII (ADELANTO ZONING

ORDINANCE) TO THE ADELANTO MUNICIPAL CODE

5. Parcel Map Single Family Residential-20453 Final Acceptance.

M__________________S__________________ACTION________________ N. PUBLIC HEARING
OPEN PUBLIC HEARING: CLOSE PUBLIC HEARING:

1. ZONE TEXT AMENDMENT NO. ZTA 23-02 –AMENDING THE CITY OF ADELANTO MUNICIPAL CODE (“AMC”) SECTION 17.50.020, APPENDIX A, BY ADDING RESTAURANT, DRIVE-THRU², NO ALCOHOL SALES WITH A CONDITIONAL USE PERMIT IN THE MIXED USE (MU) ZONE. THE PROPERTIES AFFECTED ARE LOCATED IN THE CITY OF ADELANTO, COUNTY OF SAN BERNARDINO. (LOUIS)
RECOMMENDATION: Introduce first reading of Ordinance No. 641, determine that the project is exempt from the California Environmental Quality Act (CEQA), and file a Notice of Exemption with the County Clerk of San Bernardino County.

ORDINANCE NO. 641

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ADELANTO, COUNTY OF SAN BERNARDINO, CALIFORNIA, AMENDING SECTION 17.50.020 AND APPENDIX A, ADDING RESTAURANT DRIVE-THRU², NO ALCOHOL

SALES AS A CONDITIONALLY PERMITTED USE(S) IN THE MIXED USE (MU) ZONE.

M__________________S__________________ACTION____________________ 6 REGULAR MEETING
APRIL 12, 2023
11600 Air Expressway • Adelanto, CA 92301 • (760) 246-2300 • www.ci.adelanto.ca.us OPEN PUBLIC HEARING: CLOSE PUBLIC HEARING:

2. ZONE TEXT AMENDMENT NO. ZTA 23-01 –AMENDING THE CITY OF ADELANTO MUNICIPAL CODE (“AMC”) SECTION 17.30.010, INTENT AND PURPOSE, (A) ADD, TO REVISE MAXIMUM HEIGHT FROM 50’ TO 55’, AND SECTION 17.30.040, DEVELOPMENT STANDARDS, TABLE 30-1, BY REVISING THE HEIGHT LIMITS IN THE LM/LMCO AND ADD ZONES FROM 50’ TO 55 OF TITLE 17 OF THE ADELANTO MUNICIPAL CODE. (JIM) RECOMMENDATION: Introduce first reading of Ordinance No. 640, determine that the project is exempt from the California Environmental Quality Act (CEQA), pursuant to Section 15061 (b)(3), and file a Notice of Exemption with the County Clerk of San Bernardino County.

ORDINANCE NO. 640

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ADELANTO,

COUNTY OF SAN BERNARDINO, CALIFORNIA, AMENDING SECTION

17.30.010, INTENT AND PURPOSE, (a) ADD, TO REVISE MAXIMUM HEIGHT FROM 50’ to 55’, AND SECTION 17.30.040, DEVELOPMENT STANDARDS, TABLE 30-1, BY REVISING THE HEIGHT LIMITS IN THE ADD ZONE AND LM/LMCO ZONES FROM 50’ TO 55’.

M__________________S__________________ACTION____________________ OPEN PUBLIC HEARING: CLOSE PUBLIC HEARING:

3. PUBLIC HEARING – APPEAL OF PLANNING COMMISSION APPROVAL/ADOPTION OF THE CATEGORICAL EXEMPTION FROM CEQA FOR CONDITIONAL USE PERMIT 21-23 AND LOCATION AND DEVELOPMENT PLAN 21-23 (JIM/CITY ATTORNEY) RECOMMENDATION: Staff recommends that the City Council, DENY THE APPEAL and APPROVE/ADOPT the Categorical Exemption (CE) for Conditional Use Permit 21-23 and Location and Development Plan 21-23 and adopt Council Resolution No. 23-13 (Attached as Exhibit A) adopting the findings and approving/adopting the CE for Conditional Use Permit 21- 23 and Location and Development Plan 21-23, a 4.6-acre site located at 9248 Holly Road in the Manufacturing Industrial (MI) zoning district in the City of Adelanto, California (APN: 3129-251- 24).

RESOLUTION NO. 23-13

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ADELANTO, COUNTY OF SAN BERNARDINO, CALIFORNIA,

MAKING FINDINGS, DENYING AN APPEAL OF THE PLANNING

COMMISSION DECISION, AND APPROVING AND ADOPTING THE

CATEGORICAL EXEMPTION(CE) FOR CONDITIONAL USE
PERMIT 21-23 AND LOCATION AND DEVELOPMENT PLAN 21-23
ON A 4.6-ACRE SITE LOCATED AT 9248 HOLLY ROAD IN THE

MANUFACTURING INDUSTRIAL (MI) ZONING DISTRICT IN THE
CITY OF ADELANTO, CALIFORNIA (APN: 3129-251-24).

M__________________S__________________ACTION____________________ 7 REGULAR MEETING
APRIL 12, 2023
11600 Air Expressway • Adelanto, CA 92301 • (760) 246-2300 • www.ci.adelanto.ca.us O. NEW BUSINESS
PUBLIC COMMENT: OPEN: CLOSED:

1. CONSIDERATION AND ADOPTION OF A RESOLUTION AUTHORIZING THE CITY TO

ENTER INTO FIVE NATIONAL OPIOIDS SETTLEMENT AGREEMENTS WITH WALMART, CVS, WALGREENS, TEVA, AND ALLERGAN. (CITY ATTORNEY)
RECOMMENDATION: Staff recommends the consideration and approval of Resolution No. 23-27 authorizing the City to enter into five national opioids litigation settlement agreements with Teva, Allergan, CVS, Walgreens, and Walmart; agree to the terms of the related State-Subdivision agreements; and authorize entry into the related State-Subdivision agreements with the Attorney General.

RESOLUTION NO. 23-27

RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF ADELANTO, COUNTY OF SAN BERNARDINO, STATE OF

CALIFORNIA, AUTHORIZING THE CITY TO ENTER INTO

THE SETTLEMENT AGREEMENTS WITH WALGREENS,

TEVA, ALLERGAN, CVS, AND WALMART, AGREE TO THE

TERMS OF THE RELATED STATE-SUBDIVISION

AGREEMENTS, AND AUTHORIZE ENTRY INTO THE

RELATED STATE-SUBDIVISION AGREEMENTS WITH THE

ATTORNEY GENERAL
M__________________S__________________ACTION____________________ PUBLIC COMMENT: OPEN: CLOSED:

2. DISCUSSION AND CONSIDERATION OF THE FORMATION OF AN AD HOC CITY COUNCIL

SUBCOMMITTEE TO ESTABLISH CRITERIA FOR AWARDING SCHOLARSHIPS THROUGH THE CANNABIS SCHOLARSHIP PROGRAM. (CITY ATTORNEY)
RECOMMENDATION: Staff recommends that the City Council discuss and consider a resolution creating a City Council ad hoc committee for the purposes of establishing necessary criteria for awarding scholarships from the Adelanto Cannabis Scholarship Program (“CSP”) and to recommend scholarship award recipients. The City Council approved the CSP in February 2022.

The Resolution would also enable scholarship awards for students beginning attendance at an eligible academic institution for the 2023/24 academic year. 8 REGULAR MEETING
APRIL 12, 2023
11600 Air Expressway • Adelanto, CA 92301 • (760) 246-2300 • www.ci.adelanto.ca.us RESOLUTION NO. 23-26

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ADELANTO

CREATING AN AD HOC CITY COUNCIL COMMITTEE TO ESTABLISH
CRITERIA FOR AWARDING SCHOLARSHIPS THROUGH THE CITY’S

CANNABIS SCHOLARSHIP PROGRAM
M__________________S__________________ACTION____________________

3. APPROVE CHANGE ORDER FOR HARDY AND HARPER FOR ADDITIONAL WORK ON WHITE AVENUE. (ANGEL)
RECOMMENDATION: Staff Recommends that Council Approve the Change order for Hardy and Harper for additional work on White Avenue
M__________________S__________________ACTION____________________ PUBLIC COMMENT: OPEN: CLOSED:

4. DISCUSSION ITEM – DONTATION TO HD QUEENZ (CITY COUNCIL) RECOMMENDATION: The City Council to discuss and provide direction to staff.

M__________________S__________________ACTION____________________ PUBLIC COMMENT: OPEN: CLOSED:

5. DISCUSSION ITEM – MOVIES IN THE PARK (CITY COUNCIL)
RECOMMENDATION: The City Council to discuss and provide direction to staff.

M__________________S__________________ACTION____________________ P. ITEMS REMOVED FROM THE CONSENT CALENDAR
Q. FUTURE AGENDA ITEMS
City Councilmembers may request to receive a report, schedule a study session, or to place an item on a future City Council agenda regarding matters within the jurisdiction of the City Council. Requests require a motion, a second, and a majority vote of the City Council. Individual requests should be voted on separately. The City Manager shall work with City staff to respond to inquiries and requests as soon as practicable in an appropriate manner. 9 REGULAR MEETING
APRIL 12, 2023
11600 Air Expressway • Adelanto, CA 92301 • (760) 246-2300 • www.ci.adelanto.ca.us R. PUBLIC COMMUNICATIONS
This is the time and place for members of the public to comment on any matter within the jurisdiction of the City Council. Members of the public wishing to address the City Council Members on items not on the agenda can push *9 on their telephones to raise their hands. The City Clerk will call on you in the order received. You will be asked to un-mute - to do so you must push *6. Please state your name for the record. There is a time limit of three (3) minutes.

TIME OUT:

M__________________S__________________ACTION____________________

I, BRENDA LOPEZ, CITY CLERK OF THE CITY OF ADELANTO, OR MY DESIGNEE,

HEREBY CERTIFY THAT A TRUE, ACCURATE COPY OF THE FOREGOING AGENDA WAS POSTED ON APRIL 8, 2023, SEVENTY-TWO (72) HOURS PRIOR TO THE MEETING PER GOVERNMENT CODE 54954.2 IN THE GOVERNMENTAL CENTER’S DISPLAY CASE, 11600 AIR EXPRESSWAY, THE ADELANTO POST OFFICE, AND ADELANTO LIBRARY IN ADELANTO, CALIFORNIA.

Brenda Lopez, City Clerk, CMC
T. DECLARATION OF POSTING
10 REGULAR MEETING
APRIL 12, 2023
11600 Air Expressway • Adelanto, CA 92301 • (760) 246-2300 • www.ci.adelanto.ca.us

YOUR CITY GOVERNMENT
CHARTER CITY: Ratified by the electors of the City at an election on November 3, 1992. “A Charter City can do what the Charter permits it to do, so long as there is not direct violation of the State Constitution.”
CITY COUNCIL: The City Council is the legislative and policy-making body of the City. The City Council is composed of one elected Mayor and four Council Members, elected at large (to represent the entire City), to serve four (4) year, staggered terms.

CITY MANAGER: The City Manager is the chief executive officer responsible for the day-to-day administration of City affairs.

CITY COUNCIL MEETING: The regular meeting of your City Council is a vital part of the democratic process in the conduct of the City’s affairs. These meetings are open to the public and conducted by your elected representatives who are responsible, as a body, for the operation of Adelanto’s City government. The City Council appreciates your interest and urges citizen participation in government matters.

LEGISLATIVE TERMS
ORDINANCES: Ordinances are the means by which the City enacts its local laws. Unless an urgent situation exists, ordinances will first be presented at a City Council meeting as a “first reading.” At a subsequent City Council meeting, there will be a “second reading” and vote for or against adoption. Ordinances go into effect after a waiting period of thirty (30) days, in most cases, during which time the summary of the ordinance is published in a local newspaper approved for this purpose.

RESOLUTIONS: Resolutions and minute orders are the means by which the City Council formally adopts policies and/or approves specific actions. These go into effect upon adoption 11 Adelanto City Hall ~ 11600 Air Expressway, Adelanto, CA 92301 ~ (760) 246-2300 ~ Fax (442) 249-1121

REGULAR MEETING

OF THE ADELANTO CITY COUNCIL

ADELANTO PUBLIC FINANCING AUTHORITY,

ADELANTO PUBLIC UTILITY AUTHORITY,

ADELANTO COMMUNITY BENEFIT CORPORATION,

AND THE SUCCESSOR AGENCY BOARD
APRIL 12, 2023
City Council, essential staff, and the public are allowed to be physically present inside Council Chambers and will be seated the recommended distance from each other. Public participation is also call-in or via written correspondence.

All of our meetings are streamed live at https://adelanto.granicus.com/ViewPublisher.php?view_id=1 and are also available for playback after the meeting.

Participate via zoom please log in using any of the options below:

Teleconference https://us06web.zoom.us/j/93146444676?pwd=YVU5anBFak1xSFZ4emNnNW9FNExiQT09

TIME TELECONFERENCE
To Participate and and Call in for public
comments:

Closed Session – 5:30 p.m. Please call 1-669-900-6833 along with conference code 931 4644 4676
Open Session – 7:00 p.m. Passcode: 7601

Dated: April 8, 2023 Brenda Lopez, City Clerk, CMC
12 CITY COUNCIL

AGENDA REPORT
1 | P a g e
STAFF RECOMMENDATION:

Staff recommends that the City Council accept the monthly Business License Division report for the period ending March 31, 2023.

BACKGROUND:

The New Business Activity Listing exhibits all the new business licenses processed during the month.

Included in the report are new applicants and businesses that renewed their annual license with the City. Anyone doing business within the City must obtain a business license.

The Cash Receipt Listing exhibit lists all money received by the Business License Division for the issuance of a new business licenses, business license renewal, or a temporary business license.

FISCAL IMPACT:

A total of $7,023.00 processed during the month of March 2023.

ATTACHMENTS:

1. Monthly New Business Activity Listing for March 2023.

2. Monthly Cash Receipt List for March 2023.

DATE: April 5, 2023
TO: Honorable Mayor and City Council Members
FROM: Jessie Flores, City Manager
BY: HdL Companies / Via: Brenda Lopez, City Clerk
SUBJECT: BUSINESS LICENSE REPORT – MARCH 2023
13 CITY COUNCIL

AGENDA REPORT
2 | P a g e
MARCH SUMMARY:
32%
14% 5%
8%
26%
11% 2% 2%
Contractors (31) Home Business (13) General Retail (5) General Service (8) Rental Property (25) Manufacturing (10) Professional (2) Vehicles (2) 0 50
100
150
200
Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
2017 2018 2019 2020 2021 2022 2023
Business License Accounts Processed by Rate Category
(Total Record Count = 96)
41%
59%
Based Outside the City = 39 Based Inside the City = 57
Total Number of Accounts Processed Business Licenses Issued by Location 14 Monthly Business Activity Listing
Firm Name Firm Address Business Description Location Inside Adelanto License Type Issue Date Amount ALEJANDRA BUNDA 14692 GRAY ST Hotels,Motels & Other Rental Units Yes Renewal 2023-03-02 $34.00 ALMAS H AHMED 9888 FOREST CT Hotels,Motels & Other Rental Units Yes Renewal 2023-03-02 $34.00 AN AMAZING RENTAL COMPANY 10414 RODEO CIR Misc Business Yes Renewal 2023-03-02 $54.00 BARBARA J. IDOUCHI 11169 CHAMBERLAINE WAY Hotels,Motels & Other Rental Units No Renewal 2023-03-01 $34.00 BART BOESE ENTERPRISE 14329 JEREMIAH ST Hotels,Motels & Other Rental Units Yes Renewal 2023-03-02 $34.00 BEAMAN BROS PLUMBING & HEATING 14160 HESPERIA RD Contractors (Class A, B1, C20) No Renewal 2023-03-01 $104.00 BLANCA HAMMETT TRANSLATIONS 15805 DESERT PASS ST Home Occupation Yes Renewal 2023-03-08 $29.00 BOUTIQUE PURPLE SCIENCE LLC 10109 YUCCA RD Manufacturing Yes Renewal 2023-03-18 $79.00 BUD VINZANT 18367 PEARMAIN ST Hotels,Motels & Other Rental Units Yes Renewal 2023-03-11 $34.00 CA 420 PROPERTIES 1017 W CASMALIA ST Manufacturing No Renewal 2023-03-02 $79.00 CALIFORNIA SHOWCASE CONST. INC. 1507 MARLBOROUGH AVE Contractors (Class A, B1, C20) No Renewal 2023-03-22 $104.00 CHAPPARAL LLC 11157-11159 CHAPPARAL AVE Hotels,Motels & Other Rental Units Yes Renewal 2023-03-25 $34.00 CHOY LOW 15002 DAISY RD Real Estate Yes Renewal 2023-03-01 $154.00 CLARK PACIFIC PRECAST 9367 HOLLY RD Manufacturing Yes Renewal 2023-03-22 $104.00 COMPETITIVE ASPHALT COATINGS, INC. 8203 ALABAMA ST Contractors (C4, C6, C8, C10, C12, C16, C42) No Renewal 2023-03-13 $104.00 COYOTE GARDENING SERVICES 11444 VILLA ST Home Occupation Yes New Application 2023-03-22 $290.00 CROMEWELL CONSTRUCTION INC 530 S LAKE AVE #588 Contractors (Class A, B1, C20) No Renewal 2023-03-27 $104.00 CYGNUS HOME SERVICES LLC 22379 EYOTA ROAD Professional Services (A) No Renewal 2023-03-01 $129.00 DAVID VERGANI 18506 LARKSPUR RD Hotels,Motels & Other Rental Units Yes Renewal 2023-03-13 $34.00 DDH APPLE VALLEY CONSTRUCTION INC 9312 DEEP CREEK RD Contractors (Class A, B1, C20) No Renewal 2023-03-06 $104.00 DIVERSIFIED MECHANICAL SERVICES 4100 W ALAMEDA AVE 3RD R Contractors (All Other Class 'C') No Renewal 2023-03-01 $54.00 DUFFY ELECTRIC BOAT CO. 17260 MUSKRAT AVE Manufacturing Flat Fee Yes Renewal 2023-03-01 $104.00 DUST TO SHINE LAUNDRY 11424 CHAMBERLAINE WAY UNIT 10 Laundries or Laundromat Yes Renewal 2023-03-20 $104.00 DXC AGRICULTURE LLC 11769 AUBURN AVE Misc Business Yes New Application 2023-03-30 $154.00 E B S UTILITIES ADJUSTING INC 1345 QUARRY ST #101 Contractors (Class A, B1, C20) No Renewal 2023-03-18 $104.00 EBMEYER'S PLUMBING SERVICE INC 15084 FLATHEAD RD Contractors (C21, C35, C36, C39, C51) No Renewal 2023-03-02 $79.00 EL MONTECITO MEXICAN RESTAURANT 11720 BARTLETT AVE Restaurant Yes Renewal 2023-03-29 $54.00 ESMAR BUSINESS SERVICES 19004 DENNIS STREET Home Occupation Yes Renewal 2023-03-25 $29.00 EXO ENERGY INC. 1358 LA MIRADA DR Contractors (C4, C6, C8, C10, C12, C16, C42) No New Application 2023-03-10 $64.00 FARINELLI J M 11949 HEMLOCK AVE Contractors (Class A, B1, C20) No Renewal 2023-03-11 $104.00 Process Summary:

New - Pending Approval:17
Renewal Accounts:78
Reinstated Accounts:1 Attachment No. 1
Reporting Period: March 2023
Total Licenses Processed: 96
15 Monthly Business Activity Listing
Firm Name Firm Address Business Description Location Inside Adelanto License Type Issue Date Amount FERNANDO CALVA CALVA 17950 BELLFLOWER ST #A&B Hotels,Motels & Other Rental Units Yes Renewal 2023-03-07 $34.00 FLYERS GYMNASTICS 11651 RANCHO RD STE 2 Exempt License Yes New Application 2023-03-27 $100.00 GEEZZ BROS 11175 ALDEN RD Manufacturing Flat Fee Yes Renewal 2023-03-05 $104.00 GENERAL ATOMICS AERONAUTICAL SYSTEMS, INC. 9780 RANCHO RD Manufacturing Flat Fee Yes Renewal 2023-03-27 $104.00 GUADALUPE PEREZ 1134 E 32ND ST Hotels,Motels & Other Rental Units No Renewal 2023-03-16 $34.00 GUISEN LIU 18219 LARKSPUR ROAD Hotels,Motels & Other Rental Units Yes Renewal 2023-03-04 $34.00 HIGH DESERT HANDYMAN LLC 2108 N ST STE N Misc Business No Renewal 2023-03-29 $54.00 HIGH DESERT UNDERGROUND INC 13355 OSAGE CT Contractors (All Other Class 'C') No Renewal 2023-03-04 $54.00 INDUSTRIAL INTEGRITY SOLUTIONS 12011 AIR EXPY Misc Business Yes Renewal 2023-03-02 $54.00 J I ELECTRIC 16936 BEACHWOOD LN Contractors (C4, C6, C8, C10, C12, C16, C42) No New Application 2023-03-27 $64.00 J. CARLOS AND CHRISTINA SANDOVAL 14643 DANA STREET Hotels,Motels & Other Rental Units Yes Renewal 2023-03-01 $36.00 JACKSONS LEGACY TRANSPORT LLC 15109 DAISY RD Home Occupation Yes New Application 2023-03-23 $290.00 JEFF ZHANG 11442 HIGHLAND Hotels,Motels & Other Rental Units Yes Renewal 2023-03-08 $32.00 JEMARA ENTERPRISES 11894 CAMBRIDGE Home Occupation Yes Renewal 2023-03-23 $29.00 JUAN MANUEL ARELLANO 10369 MENDICINO RD Hotels,Motels & Other Rental Units Yes Renewal 2023-03-20 $34.00 KAVRY MANAGEMENT, LLC 17130 MUSKRAT AVE Vehicle Delivery Yes Renewal 2023-03-21 $4.00 KOALA GREEN DEVELOPMENT 16252 KOALA RD Manufacturing Flat Fee Yes Renewal 2023-03-31 $104.00 LARRY METHVIN INSTALLATIONS, INC. 501 KETTERING DRIVE Contractors (All Other Class 'C') No Renewal 2023-03-14 $54.00 LEMONDROP SOLAR 6074 COLT PL Contractors (C4, C6, C8, C10, C12, C16, C42) No New Application 2023-03-20 $64.00 LEVION CONSTRUCTION LLC 49 CALYPSO Contractors (Class A, B1, C20) No New Application 2023-03-24 $104.00 LGZ CONSTRUCTION CO. 19004 DENNIS STREET Home Occupation Yes Renewal 2023-03-25 $29.00 LKQ LAKENOR AUTO & TRUCK SALVAGE, INC. 11200 ALDEN RD Auto/Truck Wrecking Yes Renewal 2023-03-24 $154.00 LOUISE ASSFY 18907 BELLFLOWER ST Hotels,Motels & Other Rental Units Yes Renewal 2023-03-25 $34.00 MARCOS PEREZ 10728 PERSHING ST Hotels,Motels & Other Rental Units Yes Renewal 2023-03-01 $34.00 MILLER EQUIPMENT COMPANY INC 42636 8TH ST E Contractors (Class A, B1, C20) No New Application 2023-03-29 $104.00 MOEINI FAMILY TRUST 10575 MOORFIELD CIR Hotels,Motels & Other Rental Units Yes Renewal 2023-03-02 $34.00 MYERS ELECTRIC COMPANY INC 575 W BIRCH CT A Contractors (C4, C6, C8, C10, C12, C16, C42) No Renewal 2023-03-02 $64.00 NEW LEAF MINISTRIES 11877 TARA LN Home Occupation Yes New Application 2023-03-10 $124.00 NEW RANCH 5852 E SCRIVENER ST Hotels,Motels & Other Rental Units No Renewal 2023-03-01 $34.00 NITRAM MANAGEMENT SOLUTIONS, LLC 16507 HOLLYHOCK RD Hotels,Motels & Other Rental Units Yes Renewal 2023-03-02 $34.00 Process Summary:

New - Pending Approval:17
Renewal Accounts:78
Reinstated Accounts:1 Attachment No. 1
Reporting Period: March 2023
Total Licenses Processed: 96
16 Monthly Business Activity Listing
Firm Name Firm Address Business Description Location Inside Adelanto License Type Issue Date Amount OPTIMUM, INC. 17890 VALLEY BLVD Contractors (Class A, B1, C20) No Renewal 2023-03-14 $104.00 PACIFIC CREST 4, LLC 17130 MUSKRAT AVE UNIT A Manufacturing Flat Fee Yes Renewal 2023-03-30 $104.00 PALOMAR COAST DEVELOPMENT LLC 3145 TIGER RUN CT #109 Contractors (Class A, B1, C20) No Renewal 2023-03-02 $104.00 PANADERIA AZTECA 11398 BARTLETT AVENUE Restaurant Yes Renewal 2023-03-31 $54.00 PATRICK WATTS 11598 LA PAZ ST Hotels,Motels & Other Rental Units Yes Renewal 2023-03-02 $34.00 PRETTYBELL PETALS 15190 ELLERY ST Home Occupation Yes Renewal 2023-03-06 $29.00 QANABLISS 9870 SAN FERNANDO RD STE 110 113 Manufacturing Flat Fee No New Application 2023-03-31 $104.00 R.M. MYERS CORPORATION 11010 RANCHO RD Manufacturing Flat Fee Yes Renewal 2023-03-07 $104.00 RAINTREE GARDEN APARTMENTS 18125 BELLFLOWER ST Hotels,Motels & Other Rental Units Yes Renewal 2023-03-12 $34.00 RELIABLE CLEAN OUTS 11611 VILLA ST Home Occupation Yes Renewal 2023-03-21 $29.00 RICHARD BELL 2345 STATHAM BLVD Contractors (Class A, B1, C20) No Renewal 2023-03-30 $104.00 ROOFING AND MORE LLC 11275 MATHILDA LN Contractors (C21, C35, C36, C39, C51) No New Application 2023-03-30 $79.00 RUDY MENDOZA 11246-11252 CHAPPARAL AVE Hotels,Motels & Other Rental Units Yes Renewal 2023-03-02 $34.00 RUSSELL ROBERTSON 11544 SPRING ST Hotels,Motels & Other Rental Units Yes Renewal 2023-03-02 $34.00 SAUL'S PRODUCE AND MEAT MARKET 11424 CHAMBERLAINE WAY # 13 Retail/Wholesale Yes Renewal 2023-03-17 $104.00 SEA BRIGHT SOLAR, INC 1785 INDUSTRIAL PARK AVE BLDNG A Contractors (All Other Class 'C') No Renewal 2023-03-11 $54.00 SHARI MEDOW HOOTS 18265 JONATHAN STREET Home Occupation Yes Renewal 2023-03-24 $29.00 SKYLINE SMART ENERGY 10642 DOWNEY AVE STE 205 Contractors (C4, C6, C8, C10, C12, C16, C42) No Renewal 2023-03-16 $64.00 SOLARTONICS USA 1449 LINVILLE LN Contractors (All Other Class 'C') No New Application 2023-03-08 $54.00 SOLCIUS, LLC 1555 N FREEDOM BLVD Contractors (Class A, B1, C20) No Renewal 2023-03-29 $104.00 SPARKLES CLEANING SERVICE 11530 SUMMER ST Home Occupation Yes Renewal 2023-03-19 $29.00 STANTEC CONSULTING SERVICES INC 300 N LAKE AVE STE 400 Contractors (Class A, B1, C20) No Renewal 2023-03-16 $104.00 STARS CONSTRUCTION SERVICES, INC 6022 WESTERN AVE Contractors (Class A, B1, C20) No New Application 2023-03-01 $104.00 SUN ENERGY CONSTRUCTION 9057 ARROW RTE STE 180 Contractors (All Other Class 'C') No New Application 2023-03-01 $54.00 T.E.S. TRANSITIONAL HOME LLC 10954 SANTA ANITA ST Professional Services (A) Yes New Application 2023-03-07 $290.00 TABOR LIVING TRUST 10522 ARLINGTON ST Hotels,Motels & Other Rental Units Yes Renewal 2023-03-23 $34.00 TACOS ROMERO 10718 ALTON CT Home Occupation Yes Renewal 2023-03-03 $29.00 THE FLAME BROILER #154 14148 US HIGHWAY 395 STE 3-B Restaurant Yes Renewal 2023-03-22 $54.00 THE WAY RESOURCE CENTER 11995 SPRING HILL CT Home Occupation Yes Renewal 2023-03-09 $29.00 TRUE PWR LLC 30598 WING WALKER WAY Contractors (C4, C6, C8, C10, C12, C16, C42) No New Application 2023-03-23 $64.00 TRUJILLO, ROLAND & LETICIA 11753 POPPY STREET Hotels,Motels & Other Rental Units Yes Renewal 2023-03-26 $34.00 VIBE SOLAR 1206 COMMERCE CENTER DR 103 Contractors (C4, C6, C8, C10, C12, C16, C42) No Reinstated 2023-03-01 $64.00 Process Summary:

New - Pending Approval:17
Renewal Accounts:78
Reinstated Accounts:1 Attachment No. 1
Reporting Period: March 2023
Total Licenses Processed: 96
17 Monthly Business Activity Listing
Firm Name Firm Address Business Description Location Inside Adelanto License Type Issue Date Amount WASTE MANAGEMENT OF ADELANTO PROPANE + SEWAGE 416 N DENNISON RD Septic Tank/Cesspool Cleaning No Renewal 2023-03-31 $64.00 WILSON ELIAS 11802 WALLFLOWER CT Hotels,Motels & Other Rental Units Yes Renewal 2023-03-20 $34.00 YELLOW DREAM FARM 17331 MUSKRAT AVE Misc Business Yes Renewal 2023-03-19 $54.00 YESCO SIGNS LLC 2401 FOOTHILL DR Contractors (C4, C6, C8, C10, C12, C16, C42) No Renewal 2023-03-31 $64.00 Process Summary:

New - Pending Approval:17
Renewal Accounts:78
Reinstated Accounts:1 Attachment No. 1
Reporting Period: March 2023
Total Licenses Processed: 96
18 Totals for New Receipts
Summary by GL Account #
Paid to Client
Building Dept - Commercial Zoning Fees $70.00
Building Dept - Home Occupation Zoning Fees $380.00
Business License Tax - G/L #100-0000-43035 $566.00
SB-1186 Fees - City Portion $10.35
SB-1186 Fees - State Portion $1.15
Total: $1,027.50
Paid to HdL
Building Dept - Commercial Zoning Fees $79.00
Building Dept - Home Occupation Zoning Fees ($46.00)
Business License Tax - G/L #100-0000-43035 $7,146.00
NSF Fee $17.50
Penalties - G/L #100-0000-43035 $322.83
SB-1186 Fees - City Portion $439.20
SB-1186 Fees - State Portion $48.80
Total: $8,007.33
Summary by Payment Type
18 Check 867.68
11 Credit Balance -
87 Credit Card 6,143.65
15 eCheck 1,100.00
5 Paid at City 1,027.50
1 Refund/Reversal (104.00)
137 Grand Total: $9,034.83
Summary by Geo Area
137 9,034.83
137 Grand Total $9,034.83
City of Adelanto
Business License Division
Cash Receipts Summary
03/01/2023 to 03/31/2023
Attachment 2
19 CITY COUNCIL AGENDA REPORT
DATE: April 12, 2023
TO: Honorable Mayor and City Council Members
FROM: City Manager
BY: City Attorney
SUBJECT: RECOMMENDATION TO THE CITY COUNCIL FOR ADOPTION OF CHAPTER

5.84 TO THE ADELANTO MUNICIPAL CODE FOR A FOOD TRUCK
ORDINANCE (2nd READING)
STAFF RECOMMENDS:

Staff recommends that the City Council approve proposed Ordinance No. 638, also referred to as “Food Trucks”, designed to regulate food truck vending within the City of Adelanto (“City”).

This Ordinance will create an application and permit requirement for food truck vendors, set rules for food truck operations, and sets penalties for violations pursuant to the Adelanto Municipal Code. It shall take effect thirty (30) days after passage.

BACKGROUND:

The ordinance is up for second reading. The City Council approved the prospective food truck ordinance, Ordinance No. 638, at its March 29, 2023 meeting. The ordinance will come into effect 30 days after final passage.

FISCAL IMPACT:

Anticipated fiscal impact includes the receipt of City food truck permit fees with the fee amount to be determined by a future resolution, and staff time in determining relevant applications and in enforcing the ordinance.

ATTACHMENTS:

Attachment 1: Food Truck Ordinance (Ord. #638).
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ORDINANCE NO. 638

AN ORDINANCE OF THE CITY COUNCIL, OF THE CITY OF

ADELANTO, SAN BERNARDINO COUNTY, STATE OF CALIFORNIA,
ESTABLISHING CHAPTER 5.84 (FOOD TRUCKS) TO TITLE 5
(BUSINESS LICENSES AND REGULATIONS) OF THE ADELANTO

MUNICIPAL CODE REGULATING FOOD TRUCKS
WHEREAS, the City of Adelanto is a municipal corporation, duly organized under the constitution and laws of the State of California;
WHEREAS, pursuant to its police power, the City may enact and enforce laws within its boundaries which promote the public health, morals, safety, or general welfare of the community, and are not in conflict with general laws;
WHEREAS, the California Vehicle Code Section 22455 allows municipalities to regulate mobile food vending in order to protect public safety and Article XI, Section 7 of the California Constitution extends to municipalities the police power authority to regulate food truck vending in furtherance of public health and welfare; and
WHEREAS, food truck vending and catering trucks create the potential for safety hazards, such as but not limited to, encouraging pedestrians to cross mid-block to purchase food; and WHEREAS, food trucks create the potential for safety hazards, such as blocking sight distances at intersections and crosswalks, encouraging pedestrians and children to cross streets mid-block to reach a vending vehicle, and causing additional conflicts between drivers and pedestrians; and WHEREAS, food trucks and other mobile food facilities create the potential for public health hazards, such as the presence and creation of litter, public urination by employees not having access to a bathroom located sufficiently close by, and employees and food preparers being unable to properly wash their hands should a bathroom not be located sufficiently close by; and WHEREAS, food truck operators who fail to park their vehicles correctly while doing business attract prospective buyers onto public roadways, creating a further traffic and public safety hazard; and WHEREAS, the City has an important and substantial public interest in providing regulations to prevent safety, traffic and health hazards, as well as to preserve the peace, safety and welfare of the community.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF ADELANTO DOES ORDAIN AS FOLLOWS:

Section 1. Incorporation of Recitals. The recitals set forth above are true and correct and are hereby incorporated by this reference as if set forth in full herein.

Section 2. Chapter 5.84 of Title 5, is hereby added to the Adelanto Municipal Code to read as follows:
21 2
Chapter 5.84 Food Trucks
Sections:

5.84.010 Purpose

5.84.020 Definitions

5.84.030 Permit Required; Fees

5.84.040 Regulation of Food Trucks

5.84.050 Food Trucks on Public Right-of-Way

5.84.060 Exceptions

5.84.070 Violations and Penalties

5.84.010 Purpose.

It is the purpose and intent of Chapter 5.84 to allow mobile food vending, aka “food trucks” or “food truck vending” within the City that complies with City, county, and state laws and regulations. It is a further purpose and intent of this Chapter

5.84 to regulate food truck vending in order to protect the health, safety and welfare of the residents of Adelanto in a manner consistent with state and local law. In order to meet these objectives, business licenses and food truck permits shall be required to vend in the City. The provisions of this Chapter 5.84 are in addition to any permits, licenses and approvals that may be required to conduct business in the City, and in addition to any permits, licenses and approvals required under state, county, or other law.

5.84.020 Definitions.

The following words and phrases, whenever used in this Chapter, shall have the meanings defined in this section unless the context clearly requires otherwise:

A. “Food or food products” means any type of edible substance or beverage.

B. “Food truck operator” means a person that operates or assists in the operation of a food truck.

C. “Food Truck” means any motorized device or vehicle by which any person or property may be propelled or moved upon a highway, or which may be towed by a motorized device or vehicle, from which food or food products are prepared, sold, offered for sale, displayed, bartered, exchanged or otherwise given. This definition shall exclude sidewalk vendors, roaming sidewalk vendors, and stationary sidewalk vendors as defined in Section 5.82.020.

D. “Food Truck Permit” shall mean a business license issued pursuant to this Chapter for the purpose of operating a food truck in the City. 22 3
E. “Public right-of-way” means any street, avenue, boulevard, highway, sidewalk or alley or similar place which is owned or controlled by a governmental entity, and the area along and upon any public road or highway.

F. “Vend or vending” means to sell, offer for sale, display, barter, exchange, or otherwise give food or food products from a food truck.

G. “Vendor” means a person who vends, including an employee or agent of a vendor.

5.84.030 Permit Required; Fees.

A. It is unlawful for any person to engage in or employ any person to engage in the business of operating a food truck vehicle without first obtaining and maintaining a food truck permit pursuant to this Chapter 5.84 to conduct such business.

B. Fees for such permits shall be in an amount determined by resolution.

C. To apply for a food truck permit, an applicant must provide:

1. A signed and completed application form containing:
a. The applicant’s name, mailing address, and telephone number; b. The applicant’s business name, including the name identifying and posted on the subject food truck;
c. Ownership type (e.g., sole proprietorship, or corporation, etc.); d. A description of the type of food or beverages to be sold and hours of operation;
e. A description and photograph (including colors and any signs) of the food truck(s) to be used, including vehicle identification number(s) and license plate number(s);
f. A copy of a valid health permit issued by the County of San Bernardino;
g. Copies of all other applicable required licenses, certificates, and permits, including, but not limited to, Public Health Operating Permit, Operators Food Handler’s Certificate, Food Vehicle Certificate Sticker, Seller’s Permit, and proof of liability insurance; h. Certification that the information in the application is true; and i. Agreement to comply with all provisions of this Chapter, all applicable provisions of this code, and all applicable federal, state and local laws, rules, regulations, ordinances, etc.

2. Payment for permit fees.

D. Food truck permits must be renewed yearly and are not transferrable. 23 4
E. Upon applying for a food truck permit and upon applying for renewal of a food truck permit, food truck operators shall provide a list of sites on which the food truck vehicle has been, or will be, stationed through the previous and upcoming year, as well as owner authorizations that correspond to those properties.

F. The City Manager or their designee may revoke or suspend any food truck permit issued pursuant to this chapter for any of the following reasons:

1. Revocation, suspension, or nonrenewal of the required permit from the San Bernardino County Department of Public Health Division of Environmental Health Services;

2. Upon the second violation of the same regulation set forth in this Chapter

5.84 in a single year; or

3. Upon the third violation of the regulations set forth in this Chapter 5.84 in a single year.

4. Upon failure to pay administrative fines pursuant to Section 5.84.070.

G. A food truck operator shall also have a valid business license from the City.

5.84.040 Regulation of Food Trucks.

A. Food truck operators shall comply with all applicable federal, state, and local laws.

B. Food trucks shall have a valid permit from the San Bernardino County Department of Public Health Division of Environmental Health Services. The revocation of a County permit shall be communicated to the City in writing and shall result in the automatic suspension of the food truck permit issued by the City.

A copy of said permit shall be kept in the food truck and shall be visible at all times.

C. Food trucks shall display in conspicuous view their City-issued food truck permit or decal and business license on the customer-facing portion of their vehicle when operating within the City.

D. Food trucks shall maintain a clean selling area and haul away all trash generated by their operation. Every food truck shall provide a refuse container in the immediate vicinity of the food truck. Prior to leaving the location, the food truck operator shall pick up, remove and dispose of all trash generated by the food truck’s operation located within a fifty (50) foot radius of the food truck’s location. Trash generated by food truck operations shall not be disposed of in public trash receptacles.
24 5
E. No discharging of any liquid waste is permitted except at a Countyapproved commissary.

F. Food trucks shall not use any signs in connection with the sale, display or offering for sale of items or food, except for those signs affixed to or painted on the food truck vehicle, and menus or promotional signs situated in the immediate vicinity of the food truck.

G. The use of flashing lights, strobe lights, and flood lights is prohibited.

H. Food trucks shall not operate within fifty (50) feet of a fire hydrant or within twenty-five (25) feet of a bus stop.

I. Vending must be contained to the food truck. Food truck operators may not augment operations by setting up accessories, equipment, tables, chairs, or stools near the vehicle.

J. Food trucks shall be limited to operating in residential areas from 8:00 a.m. through 8:00 p.m. on days Sunday through Thursday, and from 8:00 a.m. through 9:00 p.m. on days Friday and Saturday. In all other areas of the City, food trucks shall be limited to operating between the hours of 7:00 a.m. and 11:00 p.m. every day.

K. Food truck operators shall have with them all of the following documents while vending within the City:

1. Proof of liability insurance;

2. Food handler’s certificate;

3. Seller’s permit;

4. City-issued business license;

5. City-issued food truck permit or decal; and

6. Operating permit issued by the San Bernardino County Department of Public Health Division of Environmental Health Services.

L. A food truck permit does not provide an exclusive right to operate within any specific portion of public property or public right-of-way. No person shall attempt to reserve any portion of any public property or public right-of-way exclusively for the operation of their food truck.

M. Food truck operators shall not leave or maintain a food truck or any accessories, equipment, or objects used for food truck vending purposes on public property or in any portion of the public right of-way overnight. Any equipment or objects left overnight on public property or in any portion of the public right-ofway will be considered discarded and may be disposed of by the City.

N. Food trucks shall be stored overnight at or within a commissary or other location approved by the San Bernardino County Department of Public Health. 25 6
O. Food truck operators shall not engage in vending in such a manner as to cause onlookers, vehicle drivers, customers, or others to obstruct the free flow, access, or view of pedestrian or vehicular traffic.

P. No food truck shall operate in such a way so as to reduce or impair motorists’ view of any cross street, crosswalk, driveway or any other similar location where traffic, be it vehicular, pedestrian or bicycle, can be expected to enter the street, and in any way contributes to a traffic hazard or unsafe driving conditions.

Q. Food truck vending operations shall at all times comply with the provisions of the City’s Noise Control Ordinance, Chapter 9.110 of title 9 of the Adelanto Municipal Code.

R. The food truck operator shall maintain and supply to the city, copies of policies of commercial general liability and automobile liability, in an amount of no less than $1,000,000.00 per occurrence, naming the City as an additional insured.

S. Food truck operatorsshall be prohibited from vending food or food products at public parks where the City has entered into an agreement for the exclusive sale of food or food products with a particular concessionaire or vendor.

T. Food trucks shall be operated within 200 feet travel distance of an approved and readily available toilet and handwashing facility to ensure that restroom facilities are available to employees whenever the food truck is stopped to conduct business for more than a one-hour period. Food truck operators must provide written evidence of permission from an adjoining property or business owner to use their restroom facilities.

U. Food truck operators shall obtain property owner authorization when temporarily or permanently vending on private or on City-owned property, and shall carry evidence of written property owner authorization at all times. If operating in state right-of-way, the mobile vendor shall provide evidence of the state's authorization.

V. This section is not intended to be enforced against sidewalk vendors, roaming sidewalk vendors, and stationary sidewalk vendors as defined in Section

5.82.020.

5.84.050 Food Trucks on Public Right-of-Way.

Food truck operators may locate food trucks in the public right-of-way as long as the food truck operator adheres to all other provisions of this Chapter and the following standards and conditions:
26 7
A. The food truck operations shall not obstruct pedestrian or vehicular traffic.

B. If parked alongside a roadway, food vending shall be limited solely to that side of the food truck facing away from vehicular traffic and shall be prohibited on the traffic-facing side of the food truck.

C. A food truck operator shall not distribute any item from the food truck in a manner that causes any person to stand, sit, or otherwise occupy any portion of the street.

D. A food truck operator shall not encroach onto a public sidewalk with any part of its food truck or any other equipment or furniture related to the operation of its business.

E. No food truck shall be parked, stopped or left standing in any manner that blocks or impedes vehicular access to any driveway or restricts the free movement of emergency vehicles.

F. The food truck is in full compliance with all parking regulations and Vehicle Code provisions that apply to the location at which it is parked.

5.84.060 Exceptions.

A. No food truck permit shall be required when food truck vending is associated with the operation of a City-issued temporary special event permit, subject to the conditions thereof.

B. No food truck permit shall be required when food truck operations are solely limited to private event catering services and when all of the following provisions are met:

1. The food truck is situated entirely on private property;

2. Service is limited to the guests of the catered event only; and

3. No payment transactions shall occur for individual orders taken by the food truck operator.

5.84.070 Violations and Penalties.

Any violation of the provisions of this Chapter, at the discretion of the City taking into account the nature of an alleged violation and any previously issued warnings, is punishable as an infraction or misdemeanor, and any violation of the provisions of this Chapter is subject to an administrative citation, at the discretion of the City, punishable by an administrative fine as follows:

1. $500.00 for the first violation within a calendar year.

2. $750.00 for the second violation within a calendar year. 27 8

3. $1,000.00 for the third violation within a calendar year.

Failure to pay an administrative fine within thirty (30) calendar days may result in revocation or suspension of a food truck permit and/or business license pursuant to Section

5.84.030(E)(4).

Section 3. The City Council of the City of Adelanto finds that the adoption of this Ordinance is not a “project” for the purposes of CEQA Guidelines Section 15378, as the amendments provide for a regulatory permitting and related administrative procedures that will not result in direct or indirect physical changes in the environment. Additionally, even if this Ordinance is a “project” for the purposes of CEQA, it can be seen with certainty that there is no possibility that it will have a significant effect on the environment. Therefore, this matter is not subject to CEQA.

Section 4. Effective Date. This Ordinance shall take effect thirty (30) days after its final passage.

Section 5. Severability. Should any section or provision of this Ordinance be declared by a court of competent jurisdiction to be invalid, that decision shall not affect the validity of this Ordinance as a whole or any part thereof, other than the part so declared to be invalid.

Section 6. Certification/Summary. Following the City Clerk’s certification that the citizens of Adelanto have approved this Ordinance, the Mayor shall sign this Ordinance and the City Clerk shall cause the same to be entered in the book of original ordinances of said City; and shall cause the same, or a summary thereof, to be published as required by law.

PASSED, APPROVED AND ADOPTED this _________ day of _______, 2023. ______________________________
Gabriel Reyes, Mayor
_______________________________
Brenda Lopez, City Clerk
APPROVED AS TO FORM:
_______________________________
Marc Tran, City Attorney
28 1
ORDINANCE NO. 642

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ADELANTO AMENDING SECTION 17.80.130 OF CHAPTER 17.80 (SPECIAL USE

STANDARDS) OF TITLE XVII (ADELANTO ZONING ORDINANCE) TO

THE ADELANTO MUNICIPAL CODE
WHEREAS, the City of Adelanto (“City”) is a municipal corporation, duly organized under the constitution and laws of the State of California; WHEREAS, pursuant to California Constitution, Article XI, section 7, the City has the power to make and enforce ordinances and regulations not in conflict with general laws;
WHEREAS, on October 9, 2015, the Governor approved the Medical Marijuana Regulation and Safety Act (“MMRSA”), which decriminalized and created a regulatory scheme for medical cannabis-related activities;
WHEREAS, on June 27, 2016, the Governor approved Senate Bill 837 which amended MMRSA and renamed it the Medical Cannabis Regulation and Safety Act (“MCRSA”);
WHEREAS, on November 8, 2016, the voters of the State of California passed Proposition 64 which enacted the Control, Regulate and Tax Adult Use of Marijuana Act (“AUMA”), which decriminalized and created a regulatory scheme for cannabis-related activities;
WHEREAS, on June 27, 2017, the Governor approved Senate Bill 94 the Medicinal and Adult Use Cannabis Regulation and Safety Act (“MAUCRSA”), which repealed MCRSA and created a single regulatory scheme for both medical and nonmedical cannabis-related activities; WHEREAS, MAUCRSA does not supersede the authority of a local jurisdictions to adopt and enforce local ordinances to regulate cannabis-related activities; WHEREAS, Health and Safety Code section 11362.1 provides that it is not unlawful for a person of 21 years of age or older to smoke or ingest cannabis or cannabis products;
WHEREAS, the City has enacted several amendments to the Adelanto Municipal Code (“AMC”) to regulate the cultivation, manufacturing, distribution, transportation, testing and distribution of cannabis;
WHEREAS, on December 9, 2020, the City adopted Ordinance No. 615, adding Section 17.80.130 of Chapter 17.80 (Special Use Standards) of title XVII (Adelanto Zoning Ordinance) to the AMC; and
29 2
WHEREAS, the City Council desires to update the Municipal Code to further clarify regulations for Non-Storefront Cannabis Retail.

NOT, THEREFORE, THE CITY COUNCIL OF THE CITY OF ADELANTO DOES ORDAIN AS FOLLOWS:

SECTION 1. The recitals above are true and correct and incorporated herein by reference.

SECTION 2. Ordinance No. 615 is hereby rescinded, repealed, replaced and superseded by this Ordinance.

SECTION 3. Section 17.80.130 (Non-Storefront Cannabis Retail) of Chapter 17.80 (Special Use Standards) of Title 17 (Adelanto Zoning Ordinance) of the Adelanto Municipal Code is hereby amended to state the following:

17.80.130 Non-Storefront Cannabis Retail
(a) Purpose. The purpose and intent of this Section is to regulate Non-Storefront Retail of adult-use and medical cannabis that is sold in accordance with California State law in order to promote the health, safety, and general welfare of the residents and businesses within the City. The City is authorized to regulate this activity pursuant to the MAUCRSA.

(b) Definitions. For purposes of this Section, the following definitions shall apply unless the context clearly indicates otherwise:

(1) “Applicant” or “Applicants” means the individual, entity, or any of their authorized agents or employees, applying for the Non-Storefront Retail Permit.
(2) “Cannabis” means all parts of the plant Cannabis sativa Linnaeus, Cannabis indica, or Cannabis ruderalis, whether growing or not; the seeds thereof; the resin, whether crude or purified, extracted from any part of the plant; and every compound, manufacture, salt, derivative, mixture, or preparation of the plant, its seeds, or resin. “Cannabis” also means the separated resin, whether crude or purified, obtained from cannabis. “Cannabis” does not include the mature stalks of the plant, fiber produced from the stalks, oil or cake made from the seeds of the plant, any other compound, manufacture, salt, derivative, mixture, or preparation of the mature stalks (except the resin extracted therefrom), fiber, oil, or cake, or the sterilized seed of the plant which is incapable of germination. For the purpose of this division, “Cannabis” does not mean “industrial hemp” as defined by Section 11018.5 of the Health and Safety Code.

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(2) “CUP” means a Conditional Use Permit issued by the City in accordance with this Code.
(3) “Fully enclosed and secure structure” means a space within a building, greenhouse or other structure which has a complete roof enclosure supported by connecting walls extending from the ground to the roof, which is secure against unauthorized entry, provides complete visual screening, and which is accessible only through one or more lockable doors and is inaccessible to minors.
(4) “Deliver,” “Delivering,” and “Delivery” shall be defined in accordance with the MAUCRSA, Business and Professions Code Section 26001, and other applicable State laws.
(5) “Non-Storefront Retail” means the commercial transfer of Cannabis goods by delivery to a customer at a physical address.
(6) “Non-Storefront Retail Permit” means a City permit to conduct retail sales of adult-use and/or medical cannabis exclusively via means of delivery in accordance with the terms and conditions of this Section and the conditions of approval for the permit.
(7) “Non-Storefront Retail Permittee” means a person or entity that has been issued a Non-Storefront Retail Permit by the City pursuant to the terms and conditions of this Section.
(8) “MAUCRSA” means the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA). (Bus. & Prof. Code, section 26000 et seq.) (9) “Medicinal Cannabis” or “Medicinal Cannabis Product” means cannabis or a cannabis product, respectively, intended to be sold for use pursuant to the Compassionate Use Act of 1996 (Proposition 215), found at Section 11362.5 of the Health and Safety Code and other applicable State laws, by a medicinal cannabis patient in California who possesses a physician’s recommendation. For purposes of this definition, “Medical Cannabis” also means “Medical Marijuana.”
(10) “Cannabis Permittee” means a person or entity that has been issued a permit by the City, in accordance with the MAUCRSA or other applicable State laws, to participate in a commercial adult-use and/or medical cannabis activity, such as cultivation, manufacturing, distribution, transportation, testing, or dispensing.
(11) “Premises” means and pertains to a physical place of business, building, facility, office, or warehouse owned or operated by a Non-Storefront Retail Permittee falling within the jurisdiction of the City of Adelanto. 31 4
(c) Cannabis Delivery Prohibited. All Cannabis delivery within the City is prohibited except as expressly permitted by this Section. (d) Delivery of Cannabis Conditionally Permitted. Dispensing and delivery of adult-use and/or Medical Cannabis is conditionally permitted in the City only as expressly specified in this Section.

(1) Cannabis Non-Storefront Retail Standards. Adult-use and/or Medical Cannabis delivery within the City shall be in conformance with the following standards:

A. Non-Storefront Retail of adult-use and/or Medical Cannabis is only permitted upon application and approval of a Non-Storefront Retail Permit and a CUP in accordance with the criteria and process set forth in this Section and this Code.

B. Adult-use and/or Medical Cannabis non-storefront delivery activities may only include the selling of adult-use Cannabis from a non-storefront premises to an individual over the age of 21 or a qualified patient in compliance with State and local regulations within the State of California.

C. No Cannabis non-storefront premises shall be established, developed, or operated within six hundred (600) feet of a school, public playground or park, child care or day care facility, youth center, or church, nor within five hundred (500) feet of a residential property. All distances shall be measured in a straight line, without regard to intervening structures, from the nearest point of the building or structure in which the Cannabis Non-Storefront Retail is, or will be located, to the nearest property line of those uses described in this Subsection.

D. Subject to the further requirements of this Section, only “M” or “A” Type 10 State testing licenses, as specified in the MAUCRSA and Business and Professions Code section 26050, will be allowed to operate in the City.

E. Adult-use and/or Medical Cannabis Non-Storefront Retail activities are allowed only within fully enclosed and secure structures that are inaccessible to minors.

F. Adult-use and/or Medical Cannabis Non-Storefront Retail activities shall not exceed the square footage authorized pursuant to the applicable CUP.

G. From any public right-of-way, there shall be no visible exterior evidence of any Cannabis dispensing or delivery activity.

H. Cannabis dispensing and delivery shall not adversely affect the health or safety of any nearby residents by creating dust, glare, heat, noise, 32 5
smoke, traffic, vibration, or other impacts, and shall not be hazardous due to use or storage of materials, processes, products, or wastes.

I. Each Cannabis Non-Storefront Retail shall fully comply with all of the applicable restrictions and mandates set forth in State law. Each Cannabis Non-Storefront Retail shall comply with all size requirements for such facility as imposed by State law.

J. For qualification purposes all Non-Storefront Retail Applicants must currently hold a minimum of one (1) active cannabis license in the City of Adelanto.

K. Adult-use and/or Medical Cannabis Non-Storefront Retail shall only engage in sales and deliveries between the hours of 6:00 a.m. and 10:00 p.m.

L. All Cannabis shall be kept in a secured manner during all business and nonbusiness hours.

M. Each Non-Storefront Retail shall operate within a legal structure that is compliant with all applicable State and local laws.

N. Each Non-Storefront Retail must pay all applicable sales taxes pursuant to all federal, State, and local laws. Each Non-Storefront Retail shall pay the City’s Cannabis Excise Tax provided for retailers in AMC Chapter 3.60.

O. On-site smoking, ingestion, or consumption of Cannabis or alcohol shall be prohibited on the premises. The term “premises” as used in this Subsection includes the actual Cannabis Non-Storefront Retail building, as well as any accessory structures and parking areas. The Cannabis Non-Storefront Retail building entrance shall be clearly and legibly posted with a notice indicating that smoking, ingesting, or consuming Cannabis or alcohol on the premises, or in the vicinity of the Non-Storefront Retail, is prohibited.

P. Signage for each Cannabis Non-Storefront Retail premises shall be limited to name of the business only, shall be in compliance with the City’s sign code, and shall contain no advertising of any other companies, brands, products, goods, or services. Signage shall not include any drug-related symbols.

Q. Alcoholic beverages shall not be sold, stored, distributed, or consumed on the premises. A Cannabis Non-Storefront Retail shall not hold or maintain a license from the State Department of Alcohol Beverage Control to sell alcoholic beverages or operate a business that sells alcoholic beverages.

In addition, alcohol shall not be provided, stored, kept, located, sold, dispensed, or used on the premises of any Cannabis Non-Storefront Retail. 33 6
R. Physician services and Medical Cannabis recommendations shall not be provided on the Cannabis Non-Storefront Retail premises.

S. The building and premises in which any Cannabis business is located, as well as the operations as conducted therein, shall fully comply with all applicable rules, regulations, and laws including, but not limited to, zoning and building codes, the City’s business license ordinances, the Revenue and Taxation Code, the Americans with Disabilities Act, and the MAUCRSA.

Compliance with all requirements of State law pertaining to adult-use and/or Medical Cannabis dispensing and delivery is also required.

T. A Cannabis Non-Storefront Retail shall not grow, cultivate, manufacture, or process Cannabis, unless expressly and affirmatively authorized by State and local law. A Cannabis Non-Storefront Retail shall not be operated as a Cannabis cultivation, manufacturing, distribution, transportation, or testing facility, unless expressly and affirmatively authorized by State and local law.

U. The operators of a Cannabis Non-Storefront Retail shall provide the City Manager or the City Manager’s designee with the name, cell phone number, facsimile number, and email address of an on-site representative to whom the City and the public can provide notice if there are any operational problems associated with the Cannabis Non-Storefront Retail. Each Cannabis Non-Storefront Retail shall make every good faith effort to encourage residents and the public to call this representative to resolve any operational problems before any calls or complaints are made to the City or law enforcement.

V. A Cannabis Non-Storefront Retail shall be operated in accordance with the conditions of approval associated with the applicable CUP for the parcel of real property upon which the Cannabis Non-Storefront Retail activities occur.

W. Non-Storefront Retail Permittees shall implement sufficient security measures to both deter and prevent unauthorized entrance into areas containing adult-use and/or Medical Cannabis products and theft of adult-use and/or Medical Cannabis products from the Non-Storefront Retail premises.

X. A Cannabis Non-Storefront Retail facility shall have a security plan including the following measures:

1. Security cameras shall be installed and maintained in good condition, and used in an on-going manner with at least one hundred twenty (120) concurrent hours of digitally recorded documentation in a format approved by the City Manager or the City Manager’s designee. The cameras shall be in use 24 hours per day, seven days per week. The areas to be covered by the 34 7
security cameras include, but are not limited to, the storage areas, dispensing areas, delivery areas, all doors and windows, and any other areas as determined by the City Manager or the City Manager’s designee. Remote log-in information shall be provided to the City Manager, the City Manager’s designee, and law enforcement to allow them to view the security camera images and recordings from their own facilities at any time. Any disruption in security camera images shall be cured
expeditiously.

2. The Cannabis Non-Storefront Retail location shall be secured with an alarm system that is operated and monitored by a reputable security company.

3. Entrance to the delivery areas, and all storage areas, shall be locked at all times, and under the control of the adult-use and/or Medical Cannabis Non-Storefront Retail’s staff.

4. All adult-use and/or Medical Cannabis shall be stored in a secured and locked space, and in a manner as to prevent diversion, theft, or loss.

5. All windows on the building that houses the Cannabis NonStorefront Retail shall be appropriately secured.

6. No loitering—individuals shall not be allowed to remain on the premises unless they are engaging in activity expressly related to the operations of the Non-Storefront Retail.

Y. Recordings made by the security cameras shall be made available to the City Manager, the City Manager’s designee, and law enforcement upon verbal request—no search warrant or subpoena shall be needed to view the recorded materials.

Z. The City Manager, the City Manager’s designee, shall have the right to enter the adult-use and/or Cannabis Non-Storefront Retail facility for the purpose of making reasonable inspections to observe and enforce compliance with this Section and all laws of the City and the State. The City Manager, the City Manager’s designee, shall maintain a log tracking the time and date of all inspections, the individuals requesting the inspection, and the result of each inspection. Individuals participating in any such inspection must take precautions and comply with standard safeguards and procedures in place at the facility regarding security, clean room/clean area access and anticontamination measures. 35 8
AA. A Non-Storefront Retail Permittee shall notify the City Manager or the City Manager’s designee within 24 hours of discovering any of the following:

1. Significant discrepancies identified during inventory. The level of significance shall be determined by the City Manager or the City Manager’s designee.

2. Diversion, theft, loss, or any criminal activity involving the NonStorefront Retail or any agent or employee of the Non-Storefront Retail.

3. The loss or unauthorized alteration of records related to Medical Cannabis, registered qualifying patients, primary caregivers, or Non-Storefront Retail agents or employees.

4. Any other breach of security.

BB. A Non-Storefront Retail Permittee shall not dispense or deliver Medical Cannabis to any person without a physician’s recommendation.

CC. A Non-Storefront Retail Permittee shall only deliver Medical Cannabis to individuals who provide government-issued identification and adequate documentation demonstrating qualification to purchase, obtain, or possess Medical Cannabis.

DD. A Non-Storefront Retail Permittee shall only deliver adult-use Cannabis to individuals who provide government-issued identification and adequate documentation demonstrating qualification to purchase, obtain, or possess adult-use Cannabis.

EE. Physician’s recommendations shall be verified by a Non-Storefront Retail Permittee prior to dispensing or delivering any Medical Cannabis to a qualified patient or primary caregiver, and at least every six (6) months thereafter.

FF. A Non-Storefront Retail Permittee shall inspect all Cannabis and Cannabis products received for quality assurance prior to delivering to any person.

GG. Each Non-Storefront Retail shall deliver adult-use and/or medical Cannabis products only after those adult-use and/or Medical Cannabis products have been inspected and quality tested by a qualified third party testing facility as required by the MAUCRSA, Business and Professions Code section 26100, the Department of Food and Agriculture regulations, and the State Department of Public Health regulations.
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HH. Each Non-Storefront Retail shall do regular monthly inventories, and shall record and account for the total quantity of Cannabis retained, sold, and delivered on or from the premises. These records shall be maintained for three (3) years from the date created and shall be open to inspection by the City Manager, the City Manager’s Designee, and law enforcement.

II. A Non-Storefront Retail Permittee shall register with the City each location where Cannabis is stored for purposes of delivery.

JJ. A Non-Storefront Retail shall maintain patient records in a secure location within the City, available for inspection upon demand by the City Manager, the City Manager’s designee, or law enforcement. Such records shall include, without limitation, a copy of the physician’s recommendation and, if using a primary caregiver, a notarized written authorization from the patient to be represented by such primary caregiver.

KK. During the delivery of adult-use and/or medical Cannabis, each vehicle driver shall carry a copy of the Non-Storefront Retail Permit, a copy of the delivery request, a form of government-issued identification, and all other information required by State law. The driver shall present these documents upon the request of law enforcement, the City Manager, or the City Manager’s designee.

LL. Prior to sale for a delivery, Cannabis products shall be labeled and placed in a tamper-evident package. Labels and packages of adult-use and/or Medical Cannabis products shall, at minimum, meet the requirements specified under Business and Professions Code sections 26106 and 26120 and other applicable State laws.

MM. All Cannabis delivery vehicles shall:

1. Be equipped with, and utilize, a vehicle alarm system.

2. Have and utilize a direct communication system with the NonStorefront Retail.

3. Keep all Cannabis in a secure and locked container.

4. Have an internal partition between the driver and all passengers from the Cannabis storage containers that prevents access by the driver and passengers to all Cannabis products from inside the vehicle.

5. Not carry more Cannabis than allowed by State law and required to fulfill all immediate delivery requests.
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NN. Non-Storefront Retail operators must be compliant in the State mandated Seed-to-Sale Tracking system METRC.
(2) Non-Storefront Retail Permit Applications. All Applicants wishing to obtain a Non-Storefront Retail Permit from the City shall file an application with the City upon a form provided by the City and shall pay a Non-Storefront Retail Permit application fee as established by the City. Eligibility for a Non-Storefront Retail Permit shall be contingent on Applicants providing and satisfying the following information:

A. The address of the Applicant’s headquarters.

B. The names, addresses, and relevant criminal histories of all potential employees, facility managers, drivers, and other relevant parties for the proposed Non-Storefront Retail activities. Relevant criminal histories shall include any drug-related or felony convictions, the nature of such offenses, and sentences received for such convictions.

C. An estimate of the size of the proposed adult-use and/or medical Cannabis Non-Storefront Retail operation and physical locations.

D. The address of the location for which the Non-Storefront Retail Permit is sought, and number of delivery vehicles employed in the retail delivery of Cannabis.

E. An Applicant for a Non-Storefront Retail Permit shall also provide at least the following information regarding its physical location:

1. A site plan and floor plan for the proposed premises denoting the use of all areas on the premises, including storage, dispensing and delivery areas, lighting, signage, etcetera.

2. A proposed security plan in compliance with the Adult-Use and Medical Cannabis Non-Storefront Retail standards.

3. The name and address of the owner and lessor of the real property upon which the adult-use and/or medical Cannabis NonStorefront Retail activity is proposed to be conducted. In the event the applicant is not the legal owner of the property, the application must be accompanied with a notarized acknowledgement from the owner of the property that an adult- use and/or medical Cannabis Non-Storefront Retail may be operated on the property.

4. Evidence that the Non-Storefront Retail facility will be located in a legal structure that is compliant with all applicable State and local laws.
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5. Evidence that the adult-use and/or Medical Cannabis NonStorefront Retail has registered with the City all locations where adult-use and/or medical cannabis will be stored for purposes of dispensing or delivery.

F. Written authorization for the City Manager or the City Manager’s designee to verify the information contained in the application.

G. A statement in writing by the Applicant that the Applicant certifies under penalty of perjury that all the information contained in the application is true and correct.

H. Any such additional and further information as is deemed necessary by the City Manager or the City Manager’s designee to administer this Section.

I. The City Manager or the City Manager’s designee shall conduct a background check of any Applicant seeking a Non-Storefront Retail Permit, including all potential employees and any person who may be a facility manager or otherwise responsible for the activities of the adult-use and/or medical Cannabis Non-Storefront Retail, and shall prepare a report on the acceptability of the Applicant and the suitability of the proposed location. (3) Non-Storefront Retail Permit. The following conditions apply to each Non-Storefront Retail Permit:

A. A Non-Storefront Retail Permit will not be awarded to an Applicant if:

1. The Applicant made one or more false or misleading statements or omissions in the application or during the application process.

2. The proposed adult-use and/or medical Cannabis Non-Storefront Retail is not allowed by State or local law.

3. The Applicant is not a legal representative of the adult-use and/or medical Cannabis Non-Storefront Retail.

4. The Applicant has been convicted of a felony, or a misdemeanor involving moral turpitude, or the illegal use, possession, distribution, transportation, or any such similar activity related to controlled substances, with the exception of Cannabis related offenses for which the conviction occurred prior to passage of Compassionate Use Act. A conviction within the meaning of this Section means a plea or verdict of guilty or a conviction following a plea of nolo contendere.
39 12

5. The Applicant has engaged in unlawful, fraudulent, unfair, or deceptive business acts or practices.

6. The Applicant has not satisfied each and every requirement of this Section.

B. [RESERVED]
C. A Non-Storefront Retail Permit is subject to the conditions of approval in the applicable CUP for the parcel of real property upon which the adult-use and/or medical Cannabis delivery activity occurs.

D. A Non-Storefront Retail Permit is subject to any additional conditions that may be applied by the City at the time of issuance or renewal as necessary to properly regulate the Cannabis delivery activities and to protect the public.

E. Before a Non-Storefront Retail Permit will be issued to an Applicant, Non-Storefront Retail Permit fees must be paid to offset all foreseeable costs to the City for all Non-Storefront Retail related operations.

F. A Non-Storefront Retail Permittee shall:

1. Carry liability insurance in the amounts and types set by the City Manager or the City Manager’s designee, and name the City as an additional insured on all such insurance policies.

2. Execute an Indemnification Agreement prepared by the City that fully indemnifies the City for all liabilities associated with the NonStorefront Retail Permit, the Non-Storefront Retail Permittee’s cannabis related activities, and any action taken by the NonStorefront Retail Permittee pursuant to this Section.

3. Defend the City, at the Non-Storefront Retail Permittee’s sole expense, in any action against the City or its agents, officers, or employees associated with the Non-Storefront Retail Permit, the Non-Storefront Retail Permittee’s Cannabis related activities, or any action taken by the Non-Storefront Retail Permittee pursuant to this Section. The City may, at its sole discretion, participate in the defense of any such action, but such participation shall not relieve the Non-Storefront Retail Permittee of its indemnification and reimbursement obligations.

4. Reimburse the City for all costs, expenses, fees, and attorneys’ fees incurred by the City related to any action against the City or its agents, officers, or employees associated with the NonStorefront Retail Permit, the Non-Storefront Retail Permittee’s 40 13
Cannabis related activities, or any action taken by the NonStorefront Retail Permittee pursuant to this Section.

G. A Non-Storefront Retail Permit issued pursuant to this Section may be transferred so long as the Non-Storefront Retail Permittee satisfies the City’s Non-Storefront Retail Permit application requirements and is in good standing with the City under the following circumstances:

1. The transfer results from the existing Non-Storefront Retail Permittee changing the corporation type or business type on file with the California Secretary of State;

2. The transfer is necessary to reflect the death or disability of an owner and/or the person on file with the City as being responsible for the permitted operations, or

3. To reflect a bona-fide transfer of the permit as part of a transfer of the permitted operation.

H. All Non-Storefront Retail Permit transfers are subject to prior approval from the City Manager, the City Attorney, and all relevant department heads, which shall not be unreasonably withheld.

I. A Non-Storefront Retail Permit shall expire and be null and void twelve (12) months after issuance to the Non-Storefront Retail Permittee unless properly renewed. Upon payment of the applicable Non-Storefront Retail Permit fees, and passing any requisite Non-Storefront Retail inspections, a Non-Storefront Retail Permittee that maintained compliance with all City, State, and other applicable cannabis and business-related laws shall be entitled to renew the Non-Storefront Retail Permit subject to all prevailing laws at the time of renewal.

J. To the fullest extent permitted by law, the City does not assume any liability, and expressly does not waive sovereign immunity, with respect to any Cannabis delivery activities, or for the activities of any Cannabis Non-Storefront Retail.
(4) Conditional Use Permit. All parcels, of Non-Storefront Retail delivery activities, must obtain a CUP from the City for all such activities. (e) Enforcement.

(1) Any Cannabis Non-Storefront Retail delivery activities within the City in violation of this Section are hereby declared to be unlawful and a public nuisance. 41 14
(2) Any party who engages in any violation of this Section, or who owns, possesses, controls, or has charge of any parcel of real property in the City upon which a violation of the Section is maintained, shall be subject to the penalties and remedies provided by this Section.
(3) Any violation of this Section shall constitute a separate offense for each and every day the violation occurs or persists.
(4) Any person in violation of any provision of this Section shall be guilty of a misdemeanor and shall be punishable by a fine of up to One Thousand Dollars ($1,000) and up to six (6) months imprisonment per offense per day. (5) Any person in violation of any provision of this Section shall be punishable by an administrative fine of up to One Thousand Dollars ($1,000) per offense per day.
(6) Any violation of this Section or any other City or State Cannabis law by a Non-Storefront Retail Permittee, is grounds for revoking the relevant Non-Storefront Retail Permit. In addition, the City Manager or the City Manager’s designee may revoke a Non-Storefront Retail Permit if any of the following occur subject to a reasonable opportunity for the Non-Storefront Permittee to cure the deficiency during a period of no more than 30 days:

A. The City Manager or the City Manager’s designee determines that the Cannabis Non-Storefront Retail has failed to comply with this Section, any condition of approval, or any agreement or covenant as required pursuant to this Section.

B. Ownership of the adult-use and/or medical Cannabis NonStorefront Retail is changed or transferred to a third party, without prior City approval.

C. The adult-use and/or medical Cannabis Non-Storefront Retail fails to maintain one hundred twenty (120) hours of security recordings.

D. The adult-use and/or medical Cannabis Non-Storefront Retail fails to provide remote access to the security cameras to the City Manager, the City Manager’s designee, or law enforcement, or fails to allow inspection of the security recordings, the activity logs, or of the premises by authorized City officials.
(7) Any decision regarding the revocation of a Non-Storefront Retail Permit may be appealed to an independent neutral third party administrative hearing officer appointed by the City Manager or the City Manager’s designee (“Hearing Officer”). Said appeal shall be made by a notice of appeal from the person appealing within fifteen (15) days from the date of the decision to revoke the Non-Storefront Retail Permit. The appeal 42 15
shall be accompanied by a written verified declaration setting forth the basis for the claim that the Non-Storefront Retail Permit was improperly revoked. The Hearing Officer’s decision shall be final and binding upon the City and the appellant. (8) These penalties and remedies are cumulative, and in addition to any other penalties and remedies available to the City.

SECTION 4. Any provision of the Adelanto Municipal Code or appendices thereto inconsistent with the provisions of this Ordinance, to the extent of such inconsistencies and no further, is hereby repealed or modified to the extent necessary to implement the provisions of this Ordinance.

SECTION 5. If any section, subsection, subdivision, paragraph, sentence, clause or phrase of this Ordinance, or any part thereof is for any reason held to be invalid or unconstitutional by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance or any part thereof. The City Council hereby declares that it would have passed each section, subsection, subdivision, paragraph, sentence, clause or phrase thereof, irrespective of the fact that any one or more section, subsection, subdivision, paragraph, sentence, clause or phrase would be subsequently declared invalid or unconstitutional.

SECTION 6. The Mayor shall sign and the City Clerk shall attest to the passage of this Ordinance. The City Clerk shall cause the same to be published once in the official newspaper within fifteen (15) days after its adoption. This Ordinance shall become effective thirty (30) days after adoption.

PASSED, APPROVED AND ADOPTED THIS 12th DAY OF APRIL, 2023. ____________________________________
Gabriel Reyes, Mayor of the City of Adelanto
_______________________________
Brenda Lopez, City Clerk
APPROVED AS TO FORM:
_______________________________
Marc Tran, City Attorney
43 ADELANTO CITY COUNCIL
ADELANTO GOVERNMENTAL CENTER | 11600 AIR EXPRESSWAY
| ADELANTO CALIFORNIA 92301
DATE: April 12, 2023
TO: Honorable Mayor and City Council Members
FROM: Saba Engineer, Engineering
BY: Jessie Flores, City Manager
SUBJECT: Parcel Map Airport Park-20453 Final Acceptance STAFF RECCOMMENDATION:

Staff recommends City Council receive and accept Parcel Map 20453 to subdivide a 10-acre parcel into four (4) parcels as submitted and authorize the Mayor to sign the Acceptance Certificate for Parcel Map 20453 on behalf of City Council.

ATTACHMENTS:

Parcel Map 20453.pdf
44 45
46 CITY COUNCIL AGENDA REPORT
A D E L A N T O G O V E R N M E N T A L C E N T E R | 1 1 6 0 0 A I R E X P R E S S W A Y | A D E L A N T O , C A L I F O R N I A 9 2 3 0 1
.

DATE: April 12, 2023
TO: Honorable Mayor and Members of the City Council
FROM:

BY:

Jessie Flores, City Manager
Louis Morales, Planning Project Manager
Zone Text Amendment No. ZTA 23-02 –amending the City of Adelanto Municipal Code (“AMC”) Section 17.50.020, Appendix A, by adding Restaurant, Drive-Thru², no alcohol sales with a conditional use permit in the Mixed Use (MU) Zone. The properties affected are located in the City of Adelanto, County of San Bernardino.

STAFF RECOMMENDATION:

Introduce first reading of Ordinance No. 641, determine that the project is exempt from the California Environmental Quality Act (CEQA), and file a Notice of Exemption with the County Clerk of San Bernardino County.

BACKGROUND:

Chapter 17.50.020 of the Adelanto Municipal Code establishes the permitted uses, accessory uses temporary uses, and conditionally permitted uses in the Mixed Use (MU) Zone. The Mixed Use district currently permits residential uses, civic and community facilities, eating, service stations, and drinking establishments, offices, and retail. The MU zone does not allow drive-thru restaurants.

The City of Adelanto (“Applicant”) desires to amend the City of Adelanto Municipal Code to allow Restaurant, Drive-Thru², no alcohol sales with a conditional use permit in Mixed Use (MU) zone. The purpose of this amendment is to accommodate commercial development that typically includes drivethru restaurants.

The procedure for the Zone Text Amendment requires that certain findings be made under Municipal Code Section 17.115.040 as follows:

1. The Zone Text Amendment is consistent with the General Plan; and

2. The proposed change will not adversely affect surrounding properties. 47 Zone Text Amendment No. 23-02
April 12, 2023
2 On February 15, 2023, the Planning Commission conducted a duly noticed public hearing and after taking testimony for or against the proposed ZTA approved Resolution P-23-08, recommending that the City Council adopt Ordinance No. 641, approving ZTA 23-02 to add and allow Restaurant, Drive-Thru², no alcohol sales with a conditional use permit in the Mixed Use Zone.

A conditional use permit (CUP) requires Planning Commission review under a public hearing, which is subject to appeal to the City Council. A CUP grants project approval with conditions established as part of the approval that prevent a project from creating a negative impact on the surrounding community.

ANALYSIS
As noted, Restaurant, Drive-Thru², no alcohol sales uses would be an appropriate fit into the Mixed Use zone and will provide for more live-work opportunities within the MU zone and the existing permitted uses would benefit from nearby restaurant uses with a drive-thru. In addition, restaurant uses with a drive-thru will provide services and convenience to the residents. The MU zone is considered commercial zone and restaurants with drive-thru service are conditionally permitted uses in the Commercial (C) zone.

There has been interest in developing commercial centers in the MU zone, specifically near the stadium and City Hall, which are located in the MU zone. Many of the MU parcels have frontage along Highway 395, which would be an ideal location for commercial centers that typically include drive-thru restaurants as part of their tenant mix to provide a variety of commercial use options.

ENVIRONMENTAL CONSIDERATIONS:

The current Zone Text Amendment application is exempt from further environmental review pursuant to Section 15061(b)(3) of the State Guidelines to implement the California Environmental Quality Act (CEQA), which states that the activity is covered by the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question, as is the case with the proposed Zone Text Amendment 23-02, the activity is not subject to CEQA.

FISCAL IMPACT:

Future applicants will be able to apply to build service stations in the Mixed-Use Zone; project specific fiscal impacts will be assessed at the time of individual project applications. Generally, the fiscal impact will be positive because gas stations generate sales tax funds for the city.

ATTACHMENTS:

Attachment A: General Plan Land Use and Zoning Map
Attachment B: Draft Ordinance No. 641
Attachment C: PC Resolution P-23-08
Attachment D: PC Staff report
48 µ
1 0.5 0 1 Miles
City of Adelanto
11600 Air Expressway
Adelanto, CA 92301
Adelanto GIS
Zoning Updated:12.1.2022
CANNABIS ZONES: The City of Adelanto permits and regulates Medicinal and Adult Use Cannabis activities in designated zones. Cannabis activity is permitted in the following zones: Light Manufacturing (LM), Light Manufacturing Cannabis Only (LMCO), Manufacturing Industrial (MI), and Airport Development District (ADD).

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF

ADELANTO, COUNTY OF SAN BERNARDINO, CALIFORNIA,
AMENDING SECTION 17.50.020 AND APPENDIX A, ADDING
RESTAURANT DRIVE-THRU², NO ALCOHOL SALES AS A

CONDITIONALLY PERMITTED USE(S) IN THE MIXED USE (MU)
ZONE.

WHEREAS, on August 28, 2001, the City Council adopted the General Plan Update for the City of Adelanto (“City”); and
WHEREAS, in 2014, the City Council adopted the Adelanto North 2035 Sustainable Plan; and
WHEREAS, the Adelanto Planning Commission, after a duly noticed public hearing held on February 15, 2023, adopted Resolution No. P-23-08 recommending that the City Council Adopt Ordinance No. 641, approving Zone Text Amendment No. ZTA 23-02.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF
ADELANTO DOES ORDAIN AS FOLLOWS:

SECTION 1. The above recitals are true and correct and incorporated herein.

SECTION 2. The City Council finds that pursuant to the California Environmental Quality Act (“CEQA”) and the State CEQA Guidelines, no further environmental review is required prior to the adoption of the proposed amendments to Chapter 17.50.020 of the Adelanto Municipal Code.

Specifically, the current Zone Code Amendment application is exempt from further environmental review pursuant to Section 15061(b)(3) of the State Guidelines to implement CEQA, which states that the activity is covered by the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity may have a significant effect on the environment, such is the case with ZTA 23-02, the activity is not subject to CEQA.

Further, the City Council finds that State CEQA guidelines Section 15378(b)(5) exempts organizational and administrative activities of governments that will not result in physical environmental impacts, and the proposed Zone Text Amendment merely allows a use that was previously permitted in the area prior to the 2014 General Plan update.

SECTION 3. Chapter 17.050.020 is amended as follows:
50 ORDINANCE No. 641

17.50.020 Permitted Uses, Accessory Uses, Conditional Uses, and Temporary Uses. (a) Appendix A: Regulation of Uses by Zone District of this Zoning Code permits a range of uses including, but not limited to the following:
• Residential uses (compact lots, attached homes, condominiums, etc.) • Civic and community facilities
• Eating and drinking establishments
• Offices
• Retail
• Service Stations
• Auto Service and Repair
• Automobile Service (Lubrication, Tune-ups, emission tests, batteries, mufflers, etc. No use of impact wrenches or other equipment that could create noise impacts; No overnight outside storage or parking; Paint, body work, upholstery prohibited)
• Automobile Minor Repair (Brakes, tires, radiators, electrical, etc. No overnight outside storage or parking; Paint, body work, upholstery prohibited) • Automobile Paint, Body, and Upholstery Shops
• Restaurant, Drive-Thru², no alcohol sales
(b) Uses listed as conditionally permitted uses are subject to the review requirements and conditions contained in Chapter 17.130 of this Zoning Code. Temporary uses are subject to the review requirements and conditions contained in Chapter 17.155. Also, certain other uses such as antennas may be subject to Special Use Standards outlined in Chapter 17.80, subject to the special height limitations contained in Table 22-1, Section

17.22.040 (a).

Appendix A of Section 17 is amended as follows:

Zone
District
Land Use Mixed
Use
Eating and Drinking Establishments
Restaurant Drive-Thru², No Alcohol Sales C
SECTION 4. The City Council directs staff to prepare and file a Notice of Exemption (“NOE”) with the Clerk of the Board of Supervisors for the County of San Bernardino within five (5) working days of the passage and adoption of this Ordinance.

SECTION 5. The documents and materials that constitute the record of proceedings on which these findings are based are located at the Development Services Department of the City of Adelanto, Adelanto City Hall, 11600 Air Expressway, Adelanto, CA 92301.
51 ORDINANCE No. 641
SECTION 6. If any section or provision of this Ordinance is for any reason held to be invalid, unconstitutional, illegal, or unenforceable by any court of competent jurisdiction, or contravened by reason of any preemptive legislation, then such section or provision shall be severed and shall be inoperative, and the remainder of this Ordinance shall remain in full force and effect.

SECTION 7. The Mayor shall sign and the City Clerk shall certify passage and adoption of this Ordinance, and the City Clerk shall cause the same to be published and posted pursuant to the provisions of law in this regard, and this Ordinance shall take effect 30 days after its final passage.

PASSED, APPROVED, and ADOPTED this ___ day of ____, 2023. ______________________________
Gabriel Reyes, Mayor
___________________________________
Brenda Lopez, CMC, City Clerk
APPROVED AS TO FORM:
___________________________________
Marc Tran, City Attorney
52 ORDINANCE No. 641
I, Brenda Lopez, City Clerk of the City of Adelanto, California, do hereby certify that the foregoing Ordinance No. 641 was duly introduced for first reading on the __ day of ______, 2023 and adopted at a regular meeting of the City Council of the City of Adelanto on this day ___ day of ________, by the following voter, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

IN WITNESS WHEREOF, I hereunto set my hand and affix the official seal of the City of Adelanto on this ___ day of ___, 2023
_______________________________
Brenda Lopez, CMC, City Clerk
53 RESOLUTION NO. P-23-08

A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF ADELANTO

RECOMMENDING TO THE CITY COUNCIL APPROVAL OF A ZONE TEXT AMENDMENT ZTA NO. 23-02 TO ADD RESTAURANT, DRIVE-THRU², NO ALCOHOL SALES TO SECTION 17.50.020 AND APPENDIX “A” IN THE MIXED USE (MU) ZONE
WHEREAS, the City of Adelanto Planning Commission has considered the application of Lakha Wahla to propose a Zone Text Amendment that will add specific auto service and auto repair uses by conditional use permit to Section 17.50.020 and Appendix “A”, Regulation of Uses by Zone District in the Mixed Use (MU) Zone; and WHEREAS, the City of Adelanto’s Mixed-Use Zone, is intended to have a mix of uses between residential and commercial with the commercial uses being in close proximity to residential uses to provide services to residents; and WHEREAS, the proposed Zone Text Amendment will be consistent and harmonious with the zone in which it is to be located and will be in general conformity to the City of Adelanto General Plan design guidelines and policies; and WHEREAS, by amending these specific uses and improving the consistency of the information provided in the Citywide Zoning Code, City staff will be able to provide a consistent interpretation of allowable uses by conditional use permit in the Mixed Use Zone; and
WHEREAS, the Planning Commission conducted a duly noticed public hearing on August 17, 2022 concerning the prospective recommendation set forth herein at which evidence, both written and oral, was presented.

NOW, THEREFORE, the Planning Commission of the City of Adelanto hereby resolves:

SECTION 1.

ENVIRONMENTAL REVIEW
Staff has conducted an environmental review and determined that the proposed Zone Text Amendment is exempt from the provisions the California Environmental Quality Act (“CEQA”) pursuant to Section 15061(b)(3) of the State Guidelines to implement CEQA, which states that the activity is covered by the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question, the proposed Zone Text Amendment, may have a significant effect on the environment, the activity is not subject to CEQA. 54 RESOLUTION NO. P-23-08
February 15, 2023

Page 2 ends

SECTION 2.

FINDINGS
The Planning Commission has reviewed the proposed Zone Text Amendment application in accordance with the standards and principles stated in Section

17.115.040 of the Adelanto Zoning Code, and finds that the proposed use is consistent with the objectives of the Zoning Code and the Adelanto General Plan by the following:
(a) The Zone Text Amendment is consistent with other development uses as detailed in Article 17 of the Adelanto Zoning Code. The proposed uses were reviewed by staff using the current Zoning Code. The Zone Text Amendment promotes the public health, safety and welfare of the community by allowing uses that provide a thorough and efficient level of service to residents and developers seeking to develop specific use projects on local parcels. (b) The Zone Text Amendment is consistent with the goals, policies, and objectives of the General Plan. The Zone Text Amendment will meet Policy 3.1 and 3.2 of the General Plan Land Use Element, in that the Zone Text Amendment will promote attractive commercial uses that will meet the local demand for products and services or encourage a balanced commercial development in the Mixed Use Zone.
(c) The Zone Text Amendment will contribute to the General Health, Safety, and Welfare of the City of Adelanto and its residents.
(d) The Zone Text Amendment will not adversely affect surrounding properties if proper conditions of approval are implemented.
(e) As noted in finding (a), the Zone Text Amendment will meet the current development standards for the City of Adelanto.

SECTION 3.

Based upon the findings contained in this Resolution and on all other written and oral evidence in the record, the Planning Commission hereby recommends City Council approval of the Zone Text Amendment based on the Amendment’s ability to meet the findings stated above and recommends approval of the amendment of Appendix “A” to the Zoning Code, as to the Mixed Use Zone to read as follows:
55 RESOLUTION NO. P-23-08
February 15, 2023

Page 3 ends

Appendix A. Regulation of Uses by Zoning District
• KEY:

P = Use permitted by right with Location and Development Plan Approval (subject to all local, State, and other applicable Code requirements)
C = Use requires Conditional Use Permit (Chapter 17.30 Adelanto Zoning Code) Cm = Use Requires a Minor Conditional Use Permit (Chapter 17.30 Adelanto Zoning Code) A = Use permitted as accessory use only (when such use is directly related to the primary use)
T = Use permitted as temporary use only (see Chapter 17.75) Zone
District
Land Use Mixed
Use
Eating and Drinking Establishments
Restaurant Drive-Thru², No Alcohol Sales C
56 RESOLUTION NO. P-23-08
February 15, 2023

Page 4 ends

PASSED, APPROVED AND ADOPTED by the Planning Commission this 15 th day of February,
2023.
___________________________________
Chris Waggener
Chairman of the Planning Commission
___________________________________
Nyeka Allen
Secretary to the Planning Commission
I, Nyeka Allen, Planning Secretary for the Planning Commission of the City of Adelanto, California, do hereby certify that the foregoing Resolution No. P-23-08 was duly and regularly adopted at a regular meeting of the Planning Commission of the City of Adelanto on the 15 th day
of February, 2023, by the following vote, to-wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

IN WITNESS WHEREOF, I hereunto set my hand and affix the official seal of the City of Adelanto on the 15
th day of February, 2023.
___________________________________
Nyeka Allen
Secretary to the Planning Commission
57 PLANNING COMMISSION

AGENDA REPORT
DATE: February 15, 2023
TO: Honorable Chairman and Members of the Planning Commission FROM: Louis Morales, Project Planner
SUBJECT: Zone Text Amendment (ZTA) 23-02 - Proposal to adopt a Resolution recommending to the City Council approval of a Zone Text Amendment by Ordinance (Next In Order), which amends Section 17.50.020 and Appendix “A” (Regulation of Uses by Zone District) of Title 17 of the Adelanto Municipal Code by adding specific uses by conditional use permit in the Mixed Use Zone.

STAFF RECOMMENDATION:

Adopt Resolution P-23-08 recommending that the City Council adopt Ordinance No. 635, find the proposed Zone Text Amendment 23-02 is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061 (b)(3), and Approve Zone Text Amendment No. ZTA 23-02 to amend Section

17.50.020 and Appendix “A” (Regulation of Uses by Zone District) of Title 17 of the Adelanto Municipal Code by adding Restaurant, Drive-Thru², no alcohol sales by conditional use permit in the Mixed Use Zone, based on the findings required by Municipal Code Section 17.115.040.

BACKGROUND:

The City is the Applicant and has received interest from the development community regarding the inclusion of restaurants with a drive-thru to be incorporated as part of a retail development. The City’s General Plan Land Use Map and Zoning Map are the same and identify an area within the City with the Mixed Use Zone/Land Use designation. As noted in Municipal Code Appendix A, which outlines the permitted and conditional uses in each zone, a Restaurant, Drive-Thru², no alcohol sales are not a permitted or conditionally permitted use in the Mixed Use Zone in the City. The City has initiated the amendment pursuant to Municipal Code Section 17.115.010, undertaking a Zone Text Amendment which would add Restaurant, Drive-Thru², no alcohol sales by conditional use permit in the Mixed Use Zone.

The City’s General Plan has general policy guidance for the Mixed Use area, but does not have specific land use limitations. Policy statements in the General Plan indicate that Restaurant, Drive-Thru², no alcohol sales within the Mixed Use area are consistent with the intent of the General Plan. In general, the Mixed Use area is intended to have, as the name implies, a mix of uses between residential and 58 2
commercial with the commercial uses being in close proximity to residential uses to provide services to the residents. Therefore, it is appropriate to have Restaurant, Drive-Thru², no alcohol sale uses near residential properties in the Mixed Use Zone for convenience and to enable commercial retail centers with an opportunity to provide a variety of eateries that are typically included in commercial retail centers.

The Mixed Use Land designation and zone is located along the Hwy 395 and includes Adelanto City Hall and is approximately 733 acres in area and comprised of 347 parcels. The MU area located on the west side of HWY 395 is bounded by Hwy 395 to the east, Bellflower Street to the west, Powers lines along Rancho Road to the south, and to the north where Bellflower Street ends at Hwy 395. The MU area located along the east side of Hwy 395 is bounded by Hwy 395 to the west, Adelanto Road to the east, Ranch Road to the north, and to the point where Adelanto Road merges into Hwy 395 to the south.

The procedure for the Zone Text Amendment requires that certain findings be made under Municipal Code Section 17.115.040 as follows:

1. The Zone Text Amendment is consistent with the General Plan; and

2. The proposed change will not adversely affect surrounding properties.

The Zone Text Amendment would affect all properties within the Mixed Use Zone, therefore, there would be no issue with “spot zoning.” Second, the new uses would be “conditionally permitted” and require a conditional use permit (“CUP”) rather than being simply “permitted” ensuring that the City has some control of such uses to make sure they are appropriate to specific properties and do not adversely affect surrounding properties. Third, Restaurant, Drive-Thru², no alcohol sales already require a CUP in the Airport Park (AP), Commercial (C), Light Manufacturing (LM), Manufacturing/Industrial (MI), and Airport Development District (ADD) zones, would also be conditionally permitted in the Mixed Use Zone if this Zone Text Amendment is approved, making the Restaurant, Drive-Thru², no alcohol sales uses available to residents living in the Mixed Use Zone.

ENVIRONMENTAL CONSIDERATIONS:

A Zone Text Amendment is a proposed Project subject to the California Environmental Quality Act (“CEQA”). Staff has conducted an environmental review and determined that the proposed Zone Text Amendment is exempt from the provisions the California Environmental Quality Act pursuant to Section 15061(b)(3) of the State Guidelines to implement CEQA, which states that the activity is covered by the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment.

PUBLIC HEARING NOTICE
A public hearing notice was published on February 2, 2023. As of the writing of this report, no comments have been received by staff.

ATTACHMENTS:

Attachment A: Draft Council Ordinance No. 641
Attachment B: PC Resolution P-23-08
59 3
Attachment C: General Plan Land Use and Zoning Map
60 CITY COUNCIL AGENDA REPORT
A D E L A N T O G O V E R N M E N T A L C E N T E R | 1 1 6 0 0 A I R E X P R E S S W A Y | A D E L A N T O , C A L I F O R N I A 9 2 3 0 1
.

DATE: April 12, 2023
TO: Honorable Mayor and Members of the City Council
FROM:

BY:

Jessie Flores, City Manager
Jim Hirsch, Acting Planning Manager
Zone Text Amendment No. ZTA 23-01 –amending the City of Adelanto Municipal Code (“AMC”) Section 17.30.010, Intent and Purpose, (a) ADD, to revise maximum height from 50’ TO 55’, and Section 17.30.040, Development Standards, Table 30-1, by revising the height limits in the LM/LMCO and ADD Zones from 50’ to 55 of Title 17 of the Adelanto Municipal Code.

STAFF RECOMMENDATION:

Introduce first reading of Ordinance No. 640, determine that the project is exempt from the California Environmental Quality Act (CEQA), pursuant to Section 15061 (b)(3), and file a Notice of Exemption with the County Clerk of San Bernardino County.

BACKGROUND:

The City of Adelanto(“Applicant”) desires to amend the City of Adelanto Municipal Code to increase the building height from fifty (50) feet to fifty-five (55) feet within the Light Manufacturing (LM) and the Airport Development District (ADD) Zoning Districts. (See Attachment A. Land Use and Zoning Map). The purpose of this amendment is to accommodate modern warehouse buildings that require higher clear ceiling heights. (See Attachment B., White paper on 42’ Clear, 55’ Maximum Deck Height).

The procedure for the Zone Text Amendment requires that certain findings be made under Municipal Code Section 17.115.040 as follows:

1. The Zone Text Amendment is consistent with the General Plan; and

2. The proposed change will not adversely affect surrounding properties. 61 Zone Text Amendment No. 23-01
April 12, 2023
2 The Zone Text Amendment would affect all properties within the ADD and LM Zones, therefore, there would be no issue with “spot zoning.” Based on the above-described factors, the City of Adelanto believes the proposed code amendment is consistent with the SCLA CLUP and has requested concurrence by the Southern California Logistics Airport staff. Additionally, the City has requested that the associated Avigation Easement be revised to adjust the current height limit of 40 feet to a height limit of 55 feet. The 55-foot height limit is significantly below the height limits mandated by 14 CFR Part 77 as they apply to Adelanto, so a 40-height limit that triggers a CLUP compatibility review is unnecessary and significantly delays the processing of projects, where the actual maximum height limits under the federal regulations are significantly higher.

On January 18, 2023, the Planning Commission conducted a duly noticed public hearing and after taking testimony for or against the proposed ZTA approved Resolution P-23-03, recommending that the City Council adopt Ordinance No. 640, approving ZTA 23-01 to increase the building height from fifty (50) feet to fifty-five (55) feet within the Light Manufacturing (LM) and the Airport Development District (ADD) Zoning Districts.

ENVIRONMENTAL CONSIDERATIONS:

PUBLIC HEARING NOTICE
A public hearing notice was published on March 30, 2023. As of the writing of this report, no comments have been received by staff.

ATTACHMENTS:

Attachment A: General Plan Land Use and Zoning Map
Attachment B: White paper on 42’ Clear, 55’ Maximum Deck Height Attachment C: Draft Council Ordinance No. 640
Attachment D: PC Resolution P-23-03
Attachment E: Planning Commission Staff Report
62 CITY OF ADELANTO

NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN that a public hearing for the following project will be held in the City Council Chambers at, 11600 Air Expressway, Adelanto, California 92301, on Wednesday, April 12, 2023 at 7:00 p.m. City Council members, essential staff and public are allowed to be physically present and will be seated the recommended distance from each other. Public participation is in person, via call-in or via written correspondence.

ZONE TEXT AMENDMENT NO. ZTA 23-01 (ORDINANCE. NO. 640)

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ADELANTO, COUNTY

OF SAN BERNARDINO, CALIFORNIA, AMENDING THE CITY OF ADELANTO MUNICIPAL CODE SECTION 17.30.010, INTENT AND PURPOSE, (A) ADD, TO REVISE MAXIMUM HEIGHT FROM 50’ to 55’, AND SECTION 17.30.040, DEVELOPMENT STANDARDS, TABLE 30-1, BY REVISING THE HEIGHT LIMITS IN THE ADD ZONE AND LM/LMCO ZONES FROM 50’ to 55’ BASED ON THE FINDINGS REQUIRED BY MUNICIPAL CODE SECTION 17.115.040.

NOTICE IS FURTHER GIVEN that the Adelanto Planning Commission held a regularlyscheduled Planning Commission meeting on January 18, 2023 and adopted Resolution P-23-03 recommending approval of Zone Text Amendment No. ZTA 23-01 and approval of Ordinance No. 640 which amends the City of Adelanto Municipal Code Section 17.30.010, Intent and Purpose, (a) ADD, to revise maximum height from 50’ to 55’, and Section 17.30.040, Development Standards, Table 30-1, by revising the height limits in the ADD Zone and LM/LMCO Zones from 50’ to 55’ based on the findings required by Municipal Code Section 17.115.040.

NOTICE IS FURTHER GIVEN that the actions contemplated by this Zone Text Amendment are exempt from further environmental review pursuant to Section 15061(b)(3) of the State Guidelines to implement the California Environmental Quality Act (CEQA), which states that the activity is covered by the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment.

In accordance with the Governor Newsom signed Assembly Bill 361 (“AB 361”), which was effective immediately and amends Government Code § 54953 to allow a local legislative body to hold public meetings via teleconferencing and to make public meetings accessible telephonically or otherwise electronically to all members of the public seeking to observe and to address the local legislative body.
• Join in person City Council Chambers social distancing required. • Join from a PC, Mac, iPad, iPhone or Android device:

Please click this URL to join.
63 https://zoom.us/j/93146444676?pwd=YVU5anBFak1xSFZ4emNnNW9FNExiQT09 Passcode: 7601
Description: City of Adelanto City Council Meeting
• To Participate phone:

Please call 1 669 900 6833 along with webinar ID 9314644 4676 passcode 7601.

Should you wish to speak on the item push *9, you will be placed in the que. *Please Note – This process will be a learning curve for all, please be patient. • Submit written comments:

The proposed project application plans and environmental documents may be reviewed by appointment during regular business hours at the Adelanto City Hall, as City Hall is closed to the public except by appointment. The Planning Division, located at 11600 Air Expressway, Adelanto, California 92301. Further information or to make an appointment to review information concerning this matter, please contact the Planning Division at (760) 246-2300 Ext.11142.

March 30,2023 Brenda Lopez
City Clerk
64 µ
1 0.5 0 1 Miles
City of Adelanto
11600 Air Expressway
Adelanto, CA 92301
Adelanto GIS
Zoning Updated:12.1.2022
CANNABIS ZONES: The City of Adelanto permits and regulates Medicinal and Adult Use Cannabis activities in designated zones. Cannabis activity is permitted in the following zones: Light Manufacturing (LM), Light Manufacturing Cannabis Only (LMCO), Manufacturing Industrial (MI), and Airport Development District (ADD).

LAND USE AND ZONING DISTRICTS
Airport Development District (ADD)
Airport Park (AP)
Business Park (BP)
Commercial (C)
Desert Living (DL-5) (1 du/5 ac)
Desert Living (DL-9) (1 du/9 ac)
Desert Living (DL-2.5) (1 du/2.5 ac)
Light Manufacturing (LM)
Light Manufacturing Cannabis Only
Manufacturing/Industrial (MI)
Mixed Use (MU) (12 - 18 du/ac)
Open Space (OS)
Public Utilities (PU)
Medium Density Residential (R-M12)
Single Family Residential (R-S1)
Single Family Residential (R-S5)
Single Family Residential (R-1)
High Density Residential (R3-30)
Medium Density Residential (R3-8)
Dispensary Zones
General Plan Land Use & Zoning Map
65 HPA, Inc. 12/03/22 pg. 1
Taller Tales (all grown up?)
HPA looks at 42’ clear
We have moved into one of those periods that are invoked in the curse: May you live in interesting times. The interesting issues we will look at in this paper have to do with the new ESFR configurations allowing increased clear height in buildings serviced by ESFR systems. They require some interested analysis between the technology of ESFR and material handling forklift equipment.

To set the stage:

For a period, ESFR systems have been limited to ceiling heights (effectively roof deck heights) of 45’ with a maximum storage height of 40’. That arrangement has led to today’s standard 36’ clear, (and 40’ clear with special roof designs), for buildings with 56’ column spacing. There is a special UL approved system for a 48’ deck height and 43’ top of storage, however, it came with a restriction of 8’ minimum aisle width. Now there are at least 3 others specially listed ESFR sprinklers for 48’ ceilings, all of which accommodate less than 8’ aisles (6’, 5’ and even 4’ aisles).

Recently a new set of tests resulted in FM approved arrangements for both a 50’ and 55’ maximum deck height. These arrangements come with 6’ and 8’ minimum aisle restrictions. An important distinction with all of these 48’ and higher protection schemes is that they are only good for cartooned unexpanded group A plastics. Commodities worst than tis will require some other sort of fire protection system (drop ceiling or in rack sprinklers).

A Quick rule of thumb based on subjective viewpoint
Before we delve into the detail of the issues and surface a few considerations, here are a few gross generalizations you can grab ahold of if you are in a hurry, or head to the last page.

If you bought the largest SUV they make and live in the biggest house on the highest hill in your neighborhood then check out the new 55’ deck height arrangements and consider a column grid spacing of 58’ – 6”. Extra in-rack sprinklers can be implemented if needed to get you around most of the complications for users with VNA material handling equipment.

If you keep to an expense budget, drive a car that gets great gas mileage, and are attracted to value then check out the 48’ deck height UL approved Tyco K25 system and a 56’ column grid. 66 HPA, Inc. 12/03/22 pg. 2
If those two descriptions don’t fit well, or you are the curious type who wants to understand the specifics driving the rules of thumb, the rest of this paper will discuss ESFR, clear heights, racking systems, material handling fork lift equipment and how higher buildings will affect structural designs. It turns out that the restrictions on aisle width have large ramifications. Going higher than 36’ to 40’ clear moves into a realm of giants where different material handling systems may begin to affect decisions.

If you are a user and your company has committed to a specific material handling configuration and you are trying to understand what clear height and column spacing can optimize your operations; give us a call, we need to talk.

ESFR Configurations
There are a range of different ESFR configurations approved by several different codes and testing bodies available for building design today. From a practical point of view the specific approval body may be a moot distinction when the fire suppression contractor applies for permitting. Local jurisdictions will typically approve configurations formally approved by UL or FM even if they haven’t been adopted into the NFPA yet.

This table shows the current range of system configurations likely to be approvable by the local jurisdiction. We can now build ESFR serviced buildings with deck heights up to 55’ to store up to 50’ high.

So, we can go taller and store higher while keeping ESFR sprinklers the primary suppression system.

Let’s look at why we would want to go taller, the compromises that may be involved, and the ultimate value proposition.

First, we will look at rack storage systems and the associated material handling equipment to point out an ironic problem with the taller building ESFR configurations. We will also surface a few structural issues that mean more than incremental cost increases. The HPA bottom line recommendations are on the last page if you just want to skip ahead.

ESFR Design Configurations HPA, Inc.

Max Deck Ht Max Storage Ht Typ. Clear Ht Approved by Aisle restrictions 35' 30' 30' NFPA, FM NA
40' 35' 32'-36' NFPA, FM NA
45' 40' 36'-40' NFPA, FM NA
48' 43' 42' NFPA, UL 8'
48' 43' 42' UL (Tyco) 5'
48' 43' 42' FM (Viking) 6'
50' 45' 44' FM (Viking) 6'
55' 50' 49' FM (Viking) 8'
These are current as of 2/16/20
Each approval is for specific head designs, pressure ratings and number of heads Commodities allowed are consistent across these approved configurations Types of racking allowed are consistent across these approved configurations 67 HPA, Inc. 12/03/22 pg. 3
This diagram illustrates the usual rack storage arrangements in relation to the ESFR requirements and clear height. In earlier white papers on 36’ clear and 40’ clear buildings we showed that going from 32’ clear to 36’ clear had significant advantages for increasing storage capacity for most rack configurations.

We also discussed why going from 36’ to 40’ clear had a less compelling set of advantages but would still make sense for some users.

This iteration of our diagram goes higher to show the ESFR configurations up to the current maximum storage height of 50’.

The advantages of going from 36’ clear and jumping to 42’ clear can be seen in the green shaded pallet layers. Going from 36’ to 40’ gets one extra pallet layer for the 72” pallet arrangement. Going to 42’ clear also adds an extra layer for the 64” and 56” pallet arrangements. There are also many users today that can configure pallet or case racking flexibly to take advantage of any incremental increase in clear height. There appears to be little advantage to a pure pallet rack operation to go to a 45’ clear condition. The next level that provides a significant advantage would be the 50’ clear condition.

While this diagram establishes the general capacity advantages of jumping to 42’ clear, there are a number of correlated issues regarding material handling equipment that must be looked at. 68 HPA, Inc. 12/03/22 pg. 4
Forklift Equipment and Aisle Widths
Most rack storage today in large distribution centers is serviced by reach fork trucks. These typically fall under the designation of narrow aisle forklifts (NA). They can work effectively in five to six level rack arrangements but up at that sixth level and higher they are maxing out their capabilities. In a 36’ to 40’ clear building they are usually configured with a few extra battery and mast options to pick the top rack level. The associated aisle width with this augmented equipment grows from around 8’-6” in a 32’ clear building to about 10’ as you get to 40’ clear buildings. Lift manufacturers will tell you these fork trucks can make picks at higher levels, but understand their utility is limited on high picks by weight and speed.

Some 36’ to 40’ buildings are housing racking systems that use a different kind of material handling equipment. Sometimes called swing reach trucks, transtackers, or order pickers, these fork trucks don’t turn in an aisle to make a pick. They have forks that extend perpendicular to the line of travel or that rotate. Generally, the driver moves up with the forks to the level of the pick. These are generally classified as very narrow aisle equipment (VNA). They operate in a range of aisle widths from 4’-8” to just over 6’.

This equipment is designed for picking higher than the reach forklifts. They can be productive over the 5 levels a reach fork truck excels in. The downside is that VNA equipment is much more expensive than NA equipment. Today, most distribution centers are using NA equipment with single selective rack. That has worked out since the ESFR maximum heights were within the capability of NA equipment. Well, until now that is…
The Problem
Now buildings designed to the new ESFR approvals facilitating clear heights of 42’, 44’, and 49’ will be moving outside the effective height range of the NA equipment. Today, VNA equipment is the natural approach to fully utilizing a building that is over 40’ clear and this is the fulcrum of the issue. The higher buildings are most effectively serviced by VNA equipment but the ESFR approvals restrict the smaller aisle widths associated with the VNA equipment. There are available protection schemes for less than 8’ aisles, especially under max. 48’ ceilings. 50’ and 55’ ceilings can accommodate 6’ aisles.

There are now two exceptions. UL has approved a Tyco manufactured K-25 head configuration for a deck height of 48’, storage height of 43’, and minimum aisles of 60”. FM Global has approved a Viking K28.0 head for a deck height of 50’, storage height of 45’ and minimum aisles of 72”.

Up front we indicated that if you are into bigger is better that you can build your 55’ tall building and lease it too. It does require a bit of a hack for VNA users though.

If, on the other hand, you are the more value-oriented person we mentioned but still trying to get ahead of the pack, The UL listed 48’ high building will accommodate almost all types of NA and VNA equipment in appropriate aisle widths without any in rack sprinklers up to a storage height of 43’. The FM listed 50’ high building with it’s 6’ aisle will accommodate some types of VNA installations.

Column Grids
We have circled around ESFR configuration heights and aisle widths of NA and VNA material handling equipment to land in one of our favorite topics: column grid dimensions. The 56’ column bay promoted by HPA has become the industry standard for building at 36’ and 40’ clear because it accommodates 69 HPA, Inc. 12/03/22 pg. 5
many NA rack layout and VNA rack layouts with minimum inefficiency. How does this bay dimension accommodate the increased likelihood of VNA equipment in a building 42’ clear and higher? The illustration below shows a NA reach fork truck in a typical rack aisle. If we assume that pallet sizes are relatively standard at 4’ and that we stay with the NFPA minimum flu requirement of 6” then our only variable to optimizing a column bay for the rack layout is aisle width.

This illustration shows a layout with three rack aisles and single selective racks between columns. This arrangement is used in most distribution centers today. A fully optimized layout would have 6 rows of 4’ pallets, three aisles of a specified width, two 6” flue spaces, and two flue spaces that accommodated the structural columns themselves. In keeping with optimizing with minimum dimensions, the columns are generally 10” tubes and adding 1” clearance means calculating 6” of space on each side of the bay where the column occurs.
70 HPA, Inc. 12/03/22 pg. 6
For this three-aisle arrangement and a 56’ column bay the resulting aisle width is 10’. This is a very good aisle width for most NA equipment picking up to a 36’ clear building. But when the clear height goes up to 40’ or higher the narrow aisle reach fork is really at its limit. One reach fork truck manufacturer has a configuration set up for these heights with criteria for a 10’ 4”. Another major forklift manufacturer says the aisle should be 118” (just under 10’) when picking the maximum rated height with their equipment of about 36’ pick height. There are some users that prefer an even larger aisle, seeing it as increasing operational speed. There are specifications out there from these users for 57’ to 58’ bays.

Different lift manufacturers publish different specifications on aisle widths and pick heights, especially in the VNA lines of equipment. VNA equipment is much more expensive and requires more sophistication to operate effectively. Many manufacturers have the capability to customize this equipment for varying aisle widths and pick heights. One major manufacturer can deliver VNA equipment for aisles ranging from 66” to 74”.

On the following page, we have created a table that calculates several column grid spacing alternatives based on varying aisle widths and number of aisles between columns. 71 HPA, Inc. 12/03/22 pg. 7
This table indicates that the optimum VNA aisle width in a 56’ bay spacing would be 64”. There are several manufacturers with this specification. If we go to the minimum aisle width allowed in the new ESFR Tyco UL approved 48’ deck configuration, we see it is also accommodated with some inefficiency in a 56’ bay. The FM approved system for 50’ high roof decks requires a 6’ minimum aisle and it would not fit well in a 56’ bay.

Rack Aisle to Column Spacing Comparisons 1/6/2020 HPA, Inc.

Palletized Racking Configurations
inches feet Two-aisle spacing Three-aisle spacing Four-aisle spacing Standard Aisle (Counter Balance) 144 in 12 288 in 432 in 576 in Flue 6 in 18 in 24 in 30 in
Pallet 48 in 192 in 288 in 384 in
498 in 744 in 990 in
Industry Norm 52' 41.5 ft 62 ft 82.50 ft
inches feet Two-aisle spacing Three-aisle spacing Four-aisle spacing NA Aisle (Reach Truck) 104 in 8.67 208 in 312 in 416 in Flue 6 in 18 in 24 in 30 in
Pallet 48 in 192 in 288 in 384 in
418 in 624 in 830 in
Industry Norm 52' 34.83 ft 52 ft 69.17 ft
inches feet Two-aisle spacing Three-aisle spacing Four-aisle spacing NA Aisle ( High Pick Reach Truck) 118 in 9.83 236 in 354 in 472 in Flue 6 in 18 in 24 in 30 in
Pallet 48 in 192 in 288 in 384 in
446 in 666 in 886 in
Industry Norm 56' 37.17 ft 55.5 ft 73.83 ft
inches feet Two-aisle spacing Three-aisle spacing Four-aisle spacing NA Aisle (42' High Pick Reach Truck) 126 in 10.50 252 in 378 in 504 in Flue 6 in 18 in 24 in 30 in
Pallet 48 in 192 in 288 in 384 in
462 in 690 in 918 in

38.50 ft 57.5 ft 76.50 ft
inches feet Two-aisle spacing Three-aisle spacing Four-aisle spacing VNA Aisle 56' optimum 64 in 5.33 128 in 192 in 256 in
Flue 6 in 18 in 24 in 30 in
Pallet 48 in 192 in 288 in 384 in
338 in 504 in 670 in

28.17 ft 42 ft 55.83 ft
inches feet Two-aisle spacing Three-aisle spacing Four-aisle spacing VNA Aisle Tyco UL Variation 60 in 5 120 in 180 in 240 in Flue 6 in 18 in 24 in 30 in
Pallet 48 in 192 in 288 in 384 in
330 in 492 in 654 in
Industry Norm 56' 27.50 ft 41 ft 54.50 ft
inches feet Two-aisle spacing Three-aisle spacing Four-aisle spacing VNA Aisle Viking FM Variation 72 in 6 144 in 216 in 288 in Flue 6 in 18 in 24 in 30 in
Pallet 48 in 192 in 288 in 384 in
354 in 528 in 702 in

29.50 ft 44 ft 58.50 ft
inches feet Two-aisle spacing Three-aisle spacing Four-aisle spacing VNA Aisle Narrow Variation 56 in 4.67 112 in 168 in 224 in Flue 6 in 18 in 24 in 30 in
Pallet 48 in 192 in 288 in 384 in
322 in 480 in 638 in

26.83 ft 40 ft 53.17 ft
72 HPA, Inc. 12/03/22 pg. 8
All VNA equipment is not created equal, however. Some equipment specifies aisles closer to 6’ than 5’.

This table says that as the aisle moves above 64”, the layout no longer fits neatly between columns and some rack positions will be lost to column locations. If optimization on a 6’ aisle was desired, for example, the column bay would be 58’ 6”’.

These calculations are based on optimizing to minimum requirements. Some operations, for example, may require larger flu spaces than NFPA requires as part of their standards. Some may specify a larger aisle for their NA reach trucks for ease of operation. The 56’ bay spacing accommodates both NA and VNA layouts well and remains our recommendation on buildings above 32’ clear up to 40’ clear. A 40’ clear building is right at the gray zone where a 56’ bay will work well for many users but there will be some who ask for a 57’ or 58’ bay. Going over 40’ clear our recommendation would be to use 58’ bays.

Structural Gotcha’s
There are problems with just adding 3’ to 10’ of concrete into the height of the tilt up panels to estimate increased construction cost. The current designs for 40’ clear buildings are pushing against the incremental panel thickness and frame adjustments that have been made as we have gone from 30’ clear to 40’ clear. The new taller buildings will have a few challenges that are likely to make cost increases more than just incremental.

Panels will be getting thicker or will add pilasters.

The extent of the increase will depend on the local seismic factor. The 40’ clear buildings have maxed out the 10” to 11” flat panels. We do have some tricks to mitigate this with roof designs, but there will be additional costs overall required.

Slab reinforcing will become a standard requirement
There is an ongoing discussion on the need/wisdom of reinforcing the slab in 36’ to 40’ clear buildings.

Going taller will tilt the equations toward reinforcing. The issue isn’t carrying additional weight in the rack legs, it’s in the increased height of the racks that need to be tied into the slab for the seismic overturning forces. This lateral force pulls at the slab and requires it to act structurally instead of just transmitting a downward force. As with roof configurations and increasing panel thickness, we have some tricks with reinforcing approaches that will mitigate the costs. But if you were leaning to unreinforced slabs in your current buildings, start pricing it into these taller buildings.

Building clear height, pallet weight, and seismicity play a critical role in determining the slab thickness and reinforcing. You should consult with your structural engineer to determine what is right for your site. Below is a chart to help determine how thick slab is needed to support the desired pallet weight for a 40' clear building. A table is provided to correlate the results to buildings with different clear height.

For example, for a 40' clear building with a seismicity of SDS=1.0g, a 7" slab can support a pallet weight of 2712lbs. A building with 50' clear and SDS=0.8g, a 10" slab can support 6812lbs adjusted with the 0.51 adjustment factor.
73 HPA, Inc. 12/03/22 pg. 9
Sloping Slabs
It has become common practice in the western US to slop the slabs of large buildings at .5% to minimize grading costs. Think about an 800,000-sf building, 600’ wide by 1,320’ long, running parallel to the street it fronts on. That street is going to be at about 2% minimum slope to drain water. In that case, over the 1,320’ length of the building, the street changes elevation by something like 26’. If the building slopes the same direction at .5% slope its finish floor changes over 6’ in elevation, minimizing grading work.

The finish floor changing over 6’ in elevation sounds pretty drastic, put in fact you drive by these buildings all the time. You cannot tell the difference in a sloped slab or a non-sloped slab without full survey equipment. Sloped slabs have been standard practice in large buildings for over 25 years and there are many millions of square feet in existence. Some have super-flat floors and are serviced by wire guided lift equipment. The FF-FL numbers used to specify slabs are independent of the overall slab slope.

That’s correct, a sloped slab may also be a ‘super-flat’ slab.

Having said all that, HPA is going to recommend that you should not slope the slabs on these taller buildings. While there is no real technical problem, there is a perception problem. Material handling equipment manufacturers have a difficult time getting their head around the practice of operating on a sloped slab even if their equipment is already in successful use in such a building. The issue gets increasingly sensitive as the racking gets taller and tolerances get tighter.

This means that if you are factoring in grading savings from a sloped slab into estimated construction costs on a building 40’ clear or higher, you may want to reconsider. The savings ranges broadly based on actual sites and buildings, but on some specific situations it can rise into seven figures. HPA continues to recommend using .5% sloped slabs in buildings under 40’ clear where a cost savings in grading results. 74 HPA, Inc. 12/03/22 pg. 10
HPA bottom line recommendations:

Difference between structural clear height and maximum storage height? ESFRs require 36” clearance from deflector to top of storage. The sprinkler head is 12” to 14” below roof deck (maximum 18”). Top of product must be no closer than 4’ below the bottom of deck. Additionally, 12” should be provided from the top of product to the bottom of trusses.

There are several 48’ listed ESFRs that accommodate 6’, 5’ and even 4’ aisles. A building with a 48’ maximum deck height and a 42’ clear height can use the new ESFR configurations with the Tyco UL approval, which has a 5’ minimum aisle width requirement. Buildings with a 50’ maximum deck height and a 44’ clear height can use the FM approved sprinklers (e.g., K22s, K25s, K28s). 40’ clear buildings can work without special roof designs or interior drains. 42” clear building can work with reduced roof slope and tapered joists in first bay.

A building with a 55’ deck height and 50’ clear is not as flexible today as it might sound but it can be made to work for VNA equipment with additional sprinkler configurations. There are two options here, one requires 8’ min. aisles, the other 6’ min. aisles. Both are ceiling-only protection schemes from FM Global.

A 56’ column bay is still the most efficient solution going over 32’ and up to 40’ clear unless the user’s operational criteria are known ahead of design.

For buildings above 40’ clear a 58’ structural bay should be considered.

It is time to stop sloping slabs and to start reinforcing them in buildings 40’ clear and higher. This will raise grading costs on some sites with significant topography.

Be aware ESFR systems cannot protect anything and everything. If you’re over 40’ maximum interior roof height, all that can be protected with ceiling only ESFR sprinkler systems is the standard cartoned unexpanded Group A plastic commodity. Commodities worse than this (e.g., consisting of exposed and/or expanded Group A plastics) will require additional fire protection. 75 ORDINANCE NO. 640

AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF ADELANTO,

COUNTY OF SAN BERNARDINO, CALIFORNIA, AMENDING SECTION

WHEREAS, on August 28, 2001, the City Council adopted the General Plan Update for the City of Adelanto (“City”); and
WHEREAS, in 2014, the City Council adopted the Adelanto North 2035 Sustainable Plan; and
WHEREAS, the Adelanto Planning Commission, after a duly noticed public hearing held on January 18, 2023 adopted Resolution No. P-23-03 recommending that the City Council Adopt Ordinance No. 640, approving Zone Text Amendment No. ZTA 23-

01. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF
ADELANTO DOES ORDAIN AS FOLLOWS:

SECTION 1. The above recitals are true and correct and incorporated herein.

Specifically, the current Zone Text Amendment application is exempt from further environmental review pursuant to Section 15061(b)(3) of the State Guidelines to implement CEQA, which states that the activity is covered by the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity may have a significant effect on the environment, such is the case with ZTA 22-01, the activity is not subject to CEQA.

SECTION 3. Section 17.30.010 and Section 17.30.040 are amended as follows:
76 ORDINANCE No. 640
Proposed Amendment
Amend Table 30-1, ADD, LM, MI and BP Development Zone Districts as follows:
(Changes are shown in Bold Underlined or strikethrough text) Development
Standard
Zone Districts

ADD LM/LMCO MI BP
C. Maximum
Building Height
50 55 ft. (3
stories) or per
Comprehensive
Airport Land
Use Plan
(CALUP)
50 55 ft. (3
stories)
North of Holly
Road and
correctional
facilities: 60 ft.

South of Holly
Road: 75 ft. (or per
Comprehensive
Airport Land Use
Plan [CALUP]
50 ft. (or per
Comprehensive
Airport Land Use
Plan [CALUP])
SECTION 4. The City Council directs staff to prepare and file a Notice of Exemption (“NOE”) with the Clerk of the Board of Supervisors for the County of San Bernardino within five (5) working days of the passage and adoption of this Ordinance.

SECTION 6. If any section or provision of this Ordinance is for any reason held to be invalid, unconstitutional, illegal, or unenforceable by any court of competent jurisdiction, or contravened by reason of any preemptive legislation, then such section or provision shall be severed and shall be inoperative, and the remainder of this Ordinance shall remain in full force and effect.

PASSED, APPROVED, and ADOPTED this _12__ day of _April__, 2023. ______________________________
Gabriel Reyes, Mayor
77 ORDINANCE No. 640
___________________________________
Brenda Lopez, CMC, City Clerk
APPROVED AS TO FORM:
___________________________________
Marc Tran, City Attorney
I, Brenda Lopez, City Clerk of the City of Adelanto, California, do hereby certify that the foregoing Ordinance No. 640 was duly introduced for first reading on the 12 day of April, 2023 and adopted at a regular meeting of the City Council of the City of Adelanto on this day 12 day of April, 2023, by the following voter, to wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

IN WITNESS WHEREOF, I hereunto set my hand and affix the official seal of the City of Adelanto on this 12 day of April , 2023
_______________________________
Brenda Lopez, CMC, City Clerk
78 RESOLUTION NO. P-23-03

A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF ADELANTO

RECOMMENDING TO THE CITY COUNCIL APPROVAL OF A ZONE TEXT AMENDMENT TO SECTION 17.30.010, INTENT AND PURPOSE, (a) ADD, TO REVISE MAXIMUM HEIGHT FROM 50’ to 55’, AND SECTION 17.30.040, DEVELOPMENT STANDARDS, TABLE 30-1, BY REVISING THE HEIGHT LIMITS IN THE AIRPORT

DEVELOPMENT DISTRICT (ADD) ZONE AND LIGHT MANUFACTURING/ LIGHT MANUFACTURING CANNABIS ONLY (LM/LMCO) ZONES FROM 50’ TO 55’.

WHEREAS, the City of Adelanto Planning Commission has considered the application to propose a Zone Text Amendment that will amend Section 17.30.010, Intent and Purpose, (a) ADD, to revise maximum height from 50’ to 55’, and Section

17.30.040, Development Standards, Table 30-1, by revising the height limits in the ADD Zone and LM/LMCO Zones from 50’ to 55’ and
WHEREAS, the City of Adelanto’s ADD and LM/LMCO Zones are intended to have warehousing and manufacturing uses ; and
WHEREAS, the proposed code amendment will be consistent and harmonious with the zone in which it is to be located and will be in general conformity to the City of Adelanto General Plan design guidelines and policies; and

WHEREAS, by amending these specific uses and improving the consistency of the information provided in the Citywide Zoning Code, City staff will be able to provide a consistent interpretation of allowable height limits in the Airport Development District (ADD) and Light Manufacturing / Light Manufacturing Cannabis Only (LM/LMCO) Zones; and
WHEREAS, the Planning Commission conducted a duly noticed public hearing January 18, 2023 concerning the prospective recommendation set forth herein at which evidence, both written and oral, was presented.

NOW, THEREFORE, the City Council of the City of Adelanto hereby resolves:

SECTION 1.

ENVIRONMENTAL REVIEW
Staff has conducted an environmental review and determined that the prosed amendment is exempt from the provisions the California Environmental Quality Act pursuant to Section 15061(b)(3) of the State Guidelines to implement the California Environmental Quality Act (CEQA), which states that the activity is covered by the general rule that CEQA applies only to projects that have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is 79 RESOLUTION NO. P-23-03

Page 2 ends

no possibility that the activity in question, the proposed Code Amendment, may have a significant effect on the environment, the activity is not subject to CEQA.

SECTION 2.

FINDINGS
The Planning Commission has reviewed the proposed Zone Text Amendment application in accordance with the standards and principles stated in Section

17.115.040 of the Adelanto Zoning Code, and finds that the proposed use is consistent with the objectives of the Zoning Code and the Adelanto General Plan by the following:
(a) The Zone Text Amendment is consistent with other development uses as detailed in Article 17 of the Adelanto Zoning Code. The proposed uses were reviewed by staff using the current Zoning Code. The Zone Text Amendment promotes the public health, safety and welfare of the community by allowing uses that provide a thorough and efficient level of service to residents and developers seeking to develop specific use projects on local parcels. (b) The Zone Text Amendment is consistent with the goals, policies, and objectives of the General Plan. The Zone Text Amendment will meet Policy 3.1 and 3.2 of the General Plan Land Use Element, in that the amendment will promote attractive warehousing and manufacturing uses that will meet the local demand for products and services or encourage a balanced development in the Airport Development and Light Manufacturing Zones.
(c) The Zone Text Amendment will contribute to the General Health, Safety, and Welfare of the City of Adelanto and its residents.
(d) The Zone Text Amendment will not adversely affect surrounding properties if proper conditions of approval are implemented.
(e) As noted in finding (a), the amendment will meet the current development standards for the City of Adelanto.

SECTION 3.

Based upon the findings contained in this Resolution and on all other written and oral evidence in the record, the Planning Commission hereby recommends City Council approval of the Zone Text Amendment based on the amendment’s ability to meet the findings stated above and recommends approval of the amendment of Table 30-1 to the Zoning Code, modifying the height limits to the Airport Development District and Light Manufacturing Zones to read as follows:
80 RESOLUTION NO. P-23-03

Page 3 ends

Proposed Amendment
Amend Table 30-1, ADD, LM, MI and BP Development Zone Districts as follows:
(Changes are shown in Bold Underlined or strikethrough text) Development Standard Zone Districts

ADD LM/LMCO MI BP
C. Maximum Building
Height
50 55 ft. (3
stories) or per
Comprehensive
Airport Land
Use Plan
(CALUP)
50 55 ft. (3 stories) North of Holly Road
and correctional
facilities: 60 ft.

South of Holly Road:
75 ft. (or per
Comprehensive
Airport Land Use Plan
[CALUP]
50 ft. (or per
Comprehensive
Airport Land Use Plan
[CALUP])
PASSED, APPROVED AND ADOPTED by the Planning Commission this _18___ h day of
January , 2023.
___________________________________
Chris Waggener
Chairman of the Planning Commission
___________________________________
Nyeka Allen
Secretary to the Planning Commission
81 RESOLUTION NO. P-23-03

Page 4 ends

I, Nyeka Allen, Planning Secretary for the Planning Commission of the City of Adelanto, California, do hereby certify that the foregoing Resolution No. P-22-??___ was duly and regularly adopted at a regular meeting of the Planning Commission of the City of Adelanto on the 18___ day of January__ 2023, by the following vote, to-wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

IN WITNESS WHEREOF, I hereunto set my hand and affix the official seal of the City of Adelanto on the _18__ day of _January _, 2023.
___________________________________
Nyeka Allen
Secretary to the Planning Commission
82 PLANNING COMMISSION

AGENDA REPORT
DATE: January 18, 2023
TO: Honorable Chairman and Members of the Planning Commission THROUGH:

FROM:

Jim Hirsch, Acting Planning Manager
SUBJECT: Zone Text Amendment (ZTA) 23-01 - Proposal to adopt a Resolution recommending to the City Council approval of a Zone Text Amendment by Ordinance (Next In Order), which amends Section 17.30.010, Intent and Purpose, (a) ADD, to revise maximum height from 50’ TO 55’, and Section 17.30.040, Development Standards, Table 30-1, by revising the height limits in the LM/LMCO and ADD Zones from 50’ to 55’ of Title 17 of the Adelanto Municipal Code.

STAFF RECOMMENDATION:

Adopt Resolution P-23-03 recommending that the City Council adopt Ordinance No. 640, find the proposed Zone Text Amendment 23-01 is exempt from the California Environmental Quality Act (CEQA) pursuant to Section 15061 (b)(3), and Approve Zone Text Amendment No. ZTA 23-01 which amends Section 17.30.010, Intent and Purpose, (a) ADD, to revise maximum height from 50’ TO 55’, and Section

17.30.040, Development Standards, Table 30-1, by revising the height limits in the LM/LMCO and ADD Zones from 50’ to 55’ of Title 17 of the Adelanto Municipal Code pursuant to Municipal Code Section

17.115.010.

BACKGROUND:

The purpose of this amendment is to accommodate modern warehouse buildings that require higher clear ceiling heights. (See Attachment B., White paper on 42’ Clear, 55’ Maximum Deck Height). 83 2
The procedure for the Zone Text Amendment requires that certain findings be made under Municipal Code Section 17.115.040 as follows:

1. The Zone Text Amendment is consistent with the General Plan; and

2. The proposed change will not adversely affect surrounding properties.

The Zone Text Amendment would affect all properties within the ADD and LM Zones, therefore, there would be no issue with “spot zoning.” Based on the above-described factors, the City of Adelanto believes the proposed code amendment is consistent with the SCLA CLUP and has requested concurrence by the Southern California Logistics Airport staff. Additionally, the City has requested that the associated Avigation Easement be revised to adjust the current height limit of 40 feet to a height limit of 55 feet. The 55-foot height limit is significantly below the height limits mandated by 14 CFR Part 77 as they apply to Adelanto, so a 40-height limit that triggers a CLUP compatibility review is unnecessary and significantly delays the processing of projects, where the actual maximum height limits under the federal regulations are significantly higher.

ENVIRONMENTAL CONSIDERATIONS:

PUBLIC HEARING NOTICE
A public hearing notice was published on January 4, 2023. As of the writing of this report, no comments have been received by staff.

ATTACHMENTS:

Attachment A: General Plan Land Use and Zoning Map
Attachment B: White paper on 42’ Clear, 55’ Maximum Deck Height Attachment C: Draft Council Ordinance No. 640
Attachment D: PC Resolution P-23-03
84 CITY COUNCIL AGENDA REPORT
DATE: April 12, 2023
TO: Honorable Mayor and City Council Members
FROM: Jessie Flores, City Manager

THROUGH
BY: James Hirsch, Planning Consultant
SUBJECT: PUBLIC HEARING – APPEAL OF PLANNING COMMISSION APPROVAL/ADOPTION

OF THE CATEGORICAL EXEMPTION FROM CEQA FOR CONDITIONAL USE PERMIT 21-23 AND LOCATION AND DEVELOPMENT PLAN 21-23
STAFF RECOMMENDATION:

Staff recommends that the City Council, DENY THE APPEAL and APPROVE/ADOPT the Categorical Exemption (CE) for Conditional Use Permit 21-23 and Location and Development Plan 21-23 and adopt Council Resolution No. 23-13 (Attached as Exhibit A) adopting the findings and approving/adopting the CE for Conditional Use Permit 21-23 and Location and Development Plan 21-23, a 4.6-acre site located at 9248 Holly Road in the Manufacturing Industrial (MI) zoning district in the City of Adelanto, California (APN: 3129-251-24).

BACKGROUND:

At the meeting of March 16, 2022, the Planning Commission unanimously approved (vote of 4-0) Conditional Use Permit 21-23 and Location & Development Plan 21-23 and adopted a Categorical Exemption for the project. The signed Planning Commission Resolution is attached as Exhibit B.

An Appeal of the Planning Commission Approval was filed on March 21, 2022, six (6) working days following the Planning Commission by the Supporters Alliance for Environmental Responsibility (“SAFER”). The appeal application, attached as Exhibit C, opposes to the adoption of the CE for Conditional Use Permit 21-23 and Location & Development Plan 21-23.

An Appeal Hearing was scheduled for a City Council Hearing for April 12, 2023, and a public notice was published.
85 CUP 21-23 & LDP 21-23
Council Appeal

Page 2 ends

PROJECT DESCRIPTION:

The project involves a Conditional Use Permit CUP 21-23 and Location and Development Permit LDP 21- 23 to construct three new 27,500 SF concrete tilt-up buildings including 5,000 SF mezzanines totaling 82,500 SF on a partially developed site containing an already existing 16,000 SF metal frame building approved for cannabis uses on a 4.6 acre site at 9248 Holly Road. Approximately 7 % of the project area and 10% of the parking area will be reserved for landscaping.

APPEAL DISCUSSION OF THE ADOPTION/APPROVAL OF CATEGORICAL EXEMPTION (CE):

The Appellant, SAFER, outlines their basis for appealing the adoption of the CE for CUP 21-23 & LDP 21- 23, attached as Exhibit C. In summary, SAFER argues the following:

I. The Project requires the preparation of an EIR or MND prior to approval; II. The Project would be approved in violation of CEQA (EIR or MND must be prepared); and III. The Project violates the State Planning and Zoning Law as well as the City’s General Plan In response to the Appellant’s contentions, Blodgett Baylosis Environmental Planning, the Environmental Consultant that prepared the CE CEQA document, responded to the Appeal claims in a memorandum, Attached as Exhibit E, which is summarized as follows:

I. A Categorical Exemption was determined to be the appropriate environmental document, rather than an EIR or an MND because following the preparation of an Initial Study, the City, as Lead Agency determined that in light of the whole record, the proposed project would not result in significant impacts to the environment pursuant to CEQA Class 32 Infill Exemption (14 CCR §15332); and
II. The project does not violate State Planning and Zoning Laws or the City’s General Plan as it does not directly conflict with the City’s General Plan, nor does it interfere or frustrate the General Plan’s policies or objectives as evidenced by the findings and whole of the record.

FISCAL IMPACT:

An Appeal of Planning Commission Decision fee of $1,806.00 was paid by the SAFER.

EXHIBITS:

A. Council Resolution No. 23-13 denying the appeal
B. Planning Commission Resolution 22-08 (Signed)
C. Supporters Alliance for Environmental Responsibility (SAFER) Appeal Package CUP 21-23 & LDP 21- 23 D. Planning Commission Staff Report Package, March 16, 2022 E. Blodgett Baylosis Environmental Planning Response to Appeal Memo, March, 2023 86 EXHIBIT A
RESOLUTION NO. 23-13

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

ADELANTO, COUNTY OF SAN BERNARDINO, CALIFORNIA,

MAKING FINDINGS, DENYING AN APPEAL OF THE PLANNING

COMMISSION DECISION, AND APPROVING AND ADOPTING THE

CATEGORICAL EXEMPTION(CE) FOR CONDITIONAL USE PERMIT
21-23 AND LOCATION AND DEVELOPMENT PLAN 21-23 ON A 4.6- ACRE SITE LOCATED AT 9248 HOLLY ROAD IN THE

MANUFACTURING INDUSTRIAL (MI) ZONING DISTRICT IN THE
CITY OF ADELANTO, CALIFORNIA (APN: 3129-251-24).

WHEREAS, applicant, Max Ahmadi, proposed a Conditional Use Permit 21-23 to establish cannabis cultivation, extraction volatile manufacturing, distribution and transportation uses and Location and Development Plan 21-23 to construct three new 27,500 sf concrete tilt-up buildings (including 5,000 SF mezzanines) totaling 82,500 sf on a partially developed site containing an existing 16,000 sf metal frame building approved for cannabis uses located at 9248 holly road on a 4.6-acre site in the Manufacturing Industrial zone (MI) in the City of Adelanto, California (assessor parcel number: 3129-251-24) (hereinafter the “Project”); and WHEREAS, the City of Adelanto, as lead agency, determined that a Categorical Exemption forthe Project was the appropriate environmental document to adopt for the Project pursuant to Sections 20192 of the California Public Resources Code and 15332 of the California Environmental Quality Act, Guidelines; and
WHEREAS, the Planning Commission reviewed and considered the environmental information included in the staff report prior to acting on the Project and determined that the City complied with the California Environmental Quality Act; and WHEREAS, on March 16, 2022, the Planning Commission unanimously approved (vote of 4-0) Conditional Use Permit 21-23 and Location & Development Plan 21-23 and adopted a Categorical Exemption for the Project; and
WHEREAS, on March 21, 2022, the Supporters Alliance for Environmental Responsibility (SAFER) filed an appeal to the Planning Commission’s adoption of the Categorical Exemption (CE) for the Project, which was within ten (10) working days following the Planning Commission’s unanimous approval of the Project; and
WHEREAS, SAFER submitted a timely appeal; and
WHEREAS, in accordance with State law, on April 12, 2023, City Council conducted a duly noticed public hearing on the Project, took information presented by City staff and public testimony regarding the Project, and considered the Project; and WHEREAS, given the information, materials and testimony presented during the appeal public hearing, the City Council affirms and adopts the Planning Commission’s findings of 87 RESOLUTION NO. 23-13
April 12, 2023

Page 2 ends

General Plan consistency, as presented in the record, as well as all of the Planning Commission’s findings outlined on the record for the Project.

NOW, THEREFORE, BE IT RESOLVED by the City Council as follows:

SECTION 1. The above recitals are all true and correct.

SECTION 2. The City Council has reviewed and considered the information included in the staff reports prior to taking action on the appeal public hearing. The City Council further finds and determines that the City has complied with the California Environmental Quality Act and that the City Council’s determinations reflect the independent judgment of the City Council.

SECTION 3. The City Council hereby denies the appeal and upholds the Planning Commission’s decision to adopt the Categorical Exemption (CE). The City Council further finds and determines that City as Lead Agency met the requirements established by the City of Adelanto Municipal Code, Section 17.190 (Environmental Review) and the provisions of California Public Resources Code 21000 et seq. pursuant to the Guidelines adopted by the Secretary of Resources and incorporated into the California Code of Regulations, Title 14, Section 15332 et seq.

SECTION 4. The City Council hereby upholds the Planning Commission adoption of the CE for the Project ( CUP 21-23 and LDP 21-23) as well as the approval of the Project.

PASSED, APPROVED AND ADOPTED by the City Council this 12 nd day of April, 2023.
_________________________________

GABRIEL REYES, MAYOR
ATTEST:
___________________________________

BRENDA LOPEZ, CITY CLERK CMC
88 RESOLUTION NO. 23-13
April 12, 2023

Page 3 ends

I, Brenda Lopez, City Clerk of the City of Adelanto, California, do hereby certify that the foregoing Resolution No. 23-13 was duly and regularly adopted at a regular meeting of the City Council of the City of Adelanto on the 12
nd day of April , 2023, by the following vote, to-wit:

AYES:

NOES:

ABSENT:

ABSTAIN:

IN WITNESS WHEREOF, I hereunto set my hand and affix the official seal of the City of Adelanto on the 12
nd day of April , 2023.
___________________________________
Brenda Lopez, CMC
City Clerk
SEAL
89 ATTACHMENT A
Resolution P-22-08
RESOLUTION NO. P-22-08

A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF

ADELANTO, SAN BERNARDINO COUNTY, CALIFORNIA, ADOPTING A

CATEGORICAL EXEMPTION AND APPROVING CONDITIONAL USE
PERMIT 21-23 TO ESTABLISH CANNABIS CULTIVATION, EXTRACTION

VOLATILE MANUFACTURING, DISTRIBUTION AND TRANSPORTATION USES AND LOCATION AND DEVELOPMENT PLAN 21-23 TO
CONSTRUCT THREE NEW 27,500 SF CONCRETE TILT-UP BUILDINGS (INCLUDING 5,000 SF MEZZANINES) TOTALING 82,500 SF ON A PARTIALLY DEVELOPED SITE CONTAINING AN EXISTING 16,000 SF

METAL FRAME BUILDING APPROVED FOR CANNABIS USES LOCATED AT 9248 HOLLY ROAD ON A 4.6-ACRE SITE IN THE MANUFACTURING

INDUSTRIAL ZONE (MI) IN THE CITY OF ADELANTO, CALIFORNIA (ASSESSOR PARCEL NUMBER: 3129-251-24).

WHEREAS, the applicant, Mr. Max Ahmadi, has proposed Conditional Use Permit 21- 23 to establish cannabis cultivation, extraction volatile manufacturing, distribution and transportation uses and Location and Development Plan 21-23 to construct three new 27,500 sf concrete tilt-up buildings (including 5,000 SF mezzanines) totaling 82,500 sf on a partially developed site containing an existing 16,000 sf metal frame building approved for cannabis uses located at 9248 holly road on a 4.6-acre site in the Manufacturing Industrial zone (MI) in the City of Adelanto, California (assessor parcel number: 3129-251-24).; and WHEREAS, the applicant has consented to all conditions of approval; and WHEREAS, a duly noticed public hearing was held by the Adelanto Planning Commission on March 16, 2022, to hear and consider testimony for or against the proposed project; and
WHEREAS, this project is Categorically Exempt under the California Environmental Quality Act (CEQA) per Section 15332 of the California Environmental Quality Act as a Class 32, In-Fill Development Project.

NOW, THEREFORE, BE IT RESOLVED by the Planning Commission as follows:

SECTION 1. The above recitals are all true and correct.

SECTION 2. The Planning Commission has reviewed and considered the environmental information included in the staff report prior to acting on proposed Conditional Use Permit 21-23 and Location and Development Plan 21-23 The Planning Commission further finds and determines that the City has complied with the California Environmental Quality Act and the Planning Commission determinations reflect the independent judgment of the Planning Commission.
90 RESOLUTION NO. P-22-08
March 16, 2022

Page 2 ends

SECTION 3. The Planning Commission hereby finds and determines that:

Conditional Use Permit 21-23
(a) That the proposed Conditional Use Permit is consistent with the General Plan; The project is consistent with the General Plan as the site is designated Manufacturing Industrial (MI), which is consistent with Appendix A of Title 17 of the Zoning Code which allows Cannabis uses with approval of a Location and Development Plan and Conditional Use Permit.
(b) That the nature, condition, and development of adjacent uses, buildings, and structures have been considered, and that the use will not adversely affect or be materially detrimental to these adjacent uses, buildings, or structures; Surrounding properties to the north, south, east and west are all currently zoned for MI uses, which permits similar compatible uses and as such, the project would not adversely affect these surrounding properties.
(c) That the site for the proposed use is of adequate size and shape to accommodate the use and buildings proposed;
The project site is 4.6-acres and is far larger than the minimum required 20,000 square feet parcel size required in this zoning district and further provides for sufficient width and depths and required setbacks for the proposed buildings. (d) That the proposed use complies with all applicable development standards of the Zoning district; and
The proposed project has been designed and conditioned to meet all applicable City zoning and development standards.
(e) That the proposed use observes the spirit and intent of this Zoning Code.

The proposed project meets the requirements of the Zoning Code. However, to ensure all Code requirements are met, conditions of approval has been added reflecting these requirements.

Location and Development Plan 21-23
(a) That the proposed Location and Development Plan is consistent with the General Plan;
The project is consistent with the General Plan as the site is designated Manufacturing Industrial (MI), which is consistent with Title 17 of the Zoning Code, which allows for the proposed uses in the MI zoning district with an approved Location and Development Plan.
91 RESOLUTION NO. P-22-08
March 16, 2022

Page 3 ends

(b) That the nature, condition, and development of adjacent uses, buildings, and structures have been considered, and that the use will not adversely affect or be materially detrimental to these adjacent uses, buildings, or structures; The nature, condition and development of adjacent uses, buildings and structures have been considered and the use will not adversely affect or be detrimental to these uses, building or structures, as surrounding properties to the north, south east and west are all currently zoned for MI uses, which permits similar compatible uses and as such, the project would not adversely affect these surrounding properties.
(c) That the site for the proposed use is of adequate size and shape to accommodate the use and buildings proposed;
The overall site is approximately 4.6-acres in size, which exceeds the minimum 20,000 square feet required in the MI zoning district and is of adequate size and shape to accommodate the use and proposed building and improvements. (d) That the proposed use complies with all applicable development standards of the zoning district; and
The proposed project has been designed and conditioned to meet all applicable City zoning and development standards for the Manufacturing Industrial (MI) zoning district.
(e) That the proposed use observes the spirit and intent of this Zoning Code.

The proposed project meets the requirements of the Zoning Code. In addition, to ensure all Code requirements are met, conditions of approval has been added requiring that the project meet code requirements.

ATTACHMENTS:

Attachment B: Conditions of Approval CUP 21-23, LDP 21-23 PASSED, APPROVED AND ADOPTED by the Planning Commission this 16th day of March, 2022.
___________________________________
Chris Waggener
Chairman of the Planning Commission
92 RESOLUTION NO. P-22-08
March 16, 2022

Page 4 ends

___________________________________
Nyeka Allen
Secretary to the Planning Commission
I, Nyeka Allen, Planning Secretary for the Planning Commission of the City of Adelanto, California, do hereby certify that the foregoing Resolution No. P-22-08 was duly and regularly adopted at a regular meeting of the Planning Commission of the City of Adelanto on the 16th day of March, 2022, by the following vote, to-wit:

AYES: Chair Waggener, Vice-Chair Delgado, Commissioners Meza, Villa, NOES: Commissioner Soto
ABSENT: none
ABSTAIN: none
IN WITNESS WHEREOF, I hereunto set my hand and affix the official seal of the City of Adelanto on the 16th day of March, 2022.
___________________________________
Nyeka Allen
Secretary to the Planning Commission
93 94
95 96
97 98
99 100
101
102
103
104
105
106
107

PLANNING COMMISSION

AGENDA REPORT
STAFF RECOMMENDATION:

ADOPT Resolution P-22-08 to ADOPT the Categorical Exemption (CE) and APPROVE Conditional Use Permit 21-23 to establish cannabis cultivation, extraction volatile manufacturing, distribution and transportation uses and Location and Development Plan 21-23 to construct three new 27,500 sf concrete tilt-up buildings totaling 82,500 sf on a partially developed site containing an existing 16,000 sf metal frame building approved for cannabis uses located at 9248 Holly Road on a 4.6-acre site in the Manufacturing Industrial zone (MI) in the City of Adelanto, California (assessor parcel number: 3129- 251-24), based on the findings and subject to conditions of approval.

BACKGROUND:

General Location: 9248 Holly Road
Assessor’s Parcel No: 3129-251-24
DATE: March 16, 2022
TO: Honorable Chairman and Members of the Planning Commission FROM:

BY:

Dave Martinez, Development Services Director
Mary Blais, Planning Consultant
SUBJECT: Conditional Use Permit 21-23 and Location and Development Plan 21-23 – Proposal to establish cannabis cultivation, extraction volatile manufacturing, distribution and transportation uses and to construct three new 27,500 SF concrete tilt-up buildings including 5,000 SF mezzanines, totaling 82,500 SF on a partially developed site containing an existing 16,000 SF metal frame building approved for cannabis uses located at 9248 Holly Road on a 4.6-acre site in the Manufacturing Industrial zone (MI) (APN: 3129-251-24) Applicant: Mr. Max Ahmadi
1107 Chapman Avenue, #103
Orange, CA 92866
108
CUP 21-23 LDP 21-23
March 16, 2022
2 Environmental Determination: Categorically Exempt pursuant to Section 15332 of the California Environmental Quality Act Class 32, In-Fill Development Project.

Existing General Plan &
Current Zoning Designation: Manufacturing Industrial (MI) Surrounding General Plan and Zoning:

North Manufacturing Industrial (MI)
South Manufacturing Industrial (MI)
East Manufacturing Industrial (MI)
West Manufacturing Industrial (MI)
Existing Land Use: The project site is currently partially developed with a 16,000 SF metal frame and related improvements
Surrounding Land Uses: The following chart shows the surrounding land uses:

North An industrial building is located immediately north of the project site (16176 Beaver Rd). This area is zoned as Manufacturing/Industrial (MI).

South South of the project site is Holly Road ROW. Further south are industrial buildings. This area is zoned as Manufacturing/Industrial (MI).

East Beaver Rd. ROW. Further east are industrial buildings. This area is zoned as Manufacturing/Industrial (MI).

West Vacant, undeveloped. This area is zoned as Manufacturing/Industrial (MI).

ANALYSIS & REVIEW:

PROJECT DESCRIPTION
The applicant, Max Ahmadi, is requesting approval of a Conditional Use Permit to establish cannabis cultivation, extraction volatile manufacturing, distribution and transportation uses and Location and Development Plan 21-23 to construct three new 27,500 sf concrete tilt-up buildings totaling 82,500 sf on a partially developed site containing an existing 16,000 sf metal frame building approved for cannabis uses located at 9248 Holly Road on a 4.6-acre site in the Manufacturing Industrial zone (MI).

The proposed site was previously graded and is partially improved with a 16,000 SF metal industrial building in the eastern portion of the site that utilized for cannabis cultivation (Building #1). Three additional, concrete tilt-up buildings are proposed to be constructed in the central and west portions of the site, totaling 27,500 SF each, including a 5,000 SF mezzanine (Buildings 2, 3 &4). Including the existing 16,000 SF Building #1, the site will contain a total building square footage of 98,500 SF. 109
CUP 21-23 LDP 21-23
March 16, 2022
3 The floor plan for each level is shown in Attachment D. The facility will be operational from 6:00am to 6:00pm seven days a week, 24-hour a day in three shifts. The peak hours of operation will be Monday through Friday, 8:00 AM to 5:00 PM. At build-out the proposed facility is projected to employ up to 33 persons during the main shift, including an on-site manager, staff person, security and maintenance personnel, growers, packers, shippers and drivers.

The proposed project requires approval of a Conditional Use Permit (CUP) to establish the commercial cannabis adult and medical use cultivation, extraction volatile manufacturing, distribution and transportation uses within the new buildings and a Location and Development Plan (LDP) for the design and layout of the proposed project.

PROJECT ANALYSIS:

GENERAL PLAN (2035 SUSTAINABLE PLAN) AND ZONING CONSISTENCY The Project Site is within the Manufacturing Industrial (MI) Zoning District and the cannabis uses are permitted in this zoning district with a CUP. The project will expand the necessary MI uses contemplated by the City’s Adelanto North 2035 Sustainable Plan. As such, the proposed project is consistent with the Adelanto North 2035 Sustainable Plan. More specifically, the project implements Chapter 3 (Economic Development) by providing for job creation, infrastructure expansion and revenue generation.

As conditioned, the project is also consistent with the surrounding zoning land uses. The project is in compliance with the applicable MI development and design standards, policies and guidelines outlined in the City’s Zoning Code. As such, the proposed project is consistent with the City’s Adelanto North 2035 Sustainable Plan.

DEVELOPMENT STANDARDS
The proposed project is subject to the development standards of the MI district, which allows for a variety of industrial uses, including the proposed cannabis uses with approval of a Conditional Use Permit. Table 1 below outlines the development standards for the MI zoning district and demonstrates that the project meets or exceeds all standards.

Table 1: MI Development Standards
Development
Standards
Required Provided Complies?
Minimum Lot Size 20,000 SF 161,025 SF Yes
Minimum Lot Width 100’ 567’ Yes
Minimum Lot Depth 100’ 284’ Yes
Minimum Front Setback
• To Building
• To Parking Area
25’
10’
50’
10’
Yes
Minimum Street Side & Rear
Yard Setback
• To Building
• To Parking
0’
0’
0’
30’
Yes
110
CUP 21-23 LDP 21-23
March 16, 2022
4 As shown in Table 2 above, the proposed project meets or exceeds the development standards established for the MI Zoning District.

PARKING, LOADING
The proposed project must comply with the Parking and Loading Standards of the Chapter 17.65 of the Adelanto Municipal Code (AMC), which requires all MIzoned developments to provide off-street parking and loading facilities as well as handicap parking and electric vehicle spaces.

Table 2 below provides a summary of the type and required number of parking stalls provided compared to the number of stalls provided.

Table 2: Parking & Loading Requirements
Uses SF of Use Regular Space
Code Ratio
Spaces Required Spaces Provided TOTAL
Spaces
Provided
Complies
Regular ADA
(included)
Regular ADA
(included)
New
Industrial
Building
82,500
(16,000
existing)
1/1,000 SF for
1 st 20,000 SF
1/2,000 SF for
20,000-
40,000SF
1/4,000 SF for
over 40,000SF,
Plus 1/300 for
office space
63 9 65 9 65 Yes
TOTALS 98,500 - 63 9 65 9 65 Yes
The proposed project’s parking demand will be met by a total of 65 parking spaces including ADA spaces and 4 Electric Vehicle spaces. The proposed parking and loading areas will be concrete and paved per AMC requirements.

FENCING/SCREENING, SECURITY
Security for the site includes several elements, such as building and parking lot lighting, full-time security personnel, which will patrol the site 24hrs per day, 7 days a week; security cameras, gated entries and Table 1: MI Development Standards
Development
Standards
Required Provided Complies?
Maximum Building Height 60’ max 30’ Yes
Outdoor Uses and Storage
shall
Located behind the building or screened
from public rights-of-way by a minimum
8’ high solid wall/fence
N/A; Chain
link with
privacy slats
& Block Wall;
wrought iron
electric entry
gate
Yes
Landscaping Required 5% of the project area & 10% of parking areas
7% project
area
10% Parking
Yes
111
CUP 21-23 LDP 21-23
March 16, 2022
5 detailed background checks of employees. The facility will be closed to the public at all times. Nonemployees will only be allowed to enter the facility with a permitted escort. The site will be secured with an 8’ block wall along the northern perimeter for the buildings with a zero setback (Buildings 2,3 & 4); 8’ tall, chain link fencing with slats for the northern perimeter of Building 1 and remaining perimeter and a wrought iron electric security gate for the entry.

SITE ACCESS/CIRCULATION/TRAFFIC
The proposed project site is a relatively flat, rectangular-shaped property of approximately 4.6-acres located at 9248 Holly Road. As noted, the site is developed with a 16,000 SF industrial building. Access to the site will continue to be provided by a two-way driveway connection with Holly Road. A fire access turn-around has been established near the north east corner of the site.

Traffic Trip generation estimates were developed for the project by using nationally recognized and recommended rates found in the 9th edition “Trip Generation Manual” published by the Institute of Transportation Engineers (ITE) that are appropriate for the proposed use. The project is anticipated to employ up to 33 persons at full capacity. This assumes all employees will use their personal vehicles with no ridesharing or use of public transit. This translates into approximately 66 trip ends per day. The number of trips generated by vendors and suppliers will generate an additional number of daily trips that for the purposes of analysis will not exceed ten trips per day. The projected daily trip generation is well under the number of trips for a typical manufacturing use. As a result, the traffic impacts will be less than significant.

OFF-SITE UTILITIES AND STREET IMPROVEMENTS
As per the conditions of approval detailed by the City Engineer, the Project applicant will be responsible for payment of relevant Development Impact Fees (DIF) and for the mitigation of impacts related to existing drainage and traffic levels plus project traffic. Power will be provided by Southern California Edison with back-up gas generators. Water and sewer will be provided by connections to City water and sewer facilities.

NEW BUILDINGS ARCHITECTURE
The three new buildings will be concrete tilt-up construction and will contain complementary colors and materials. Buildings will provide a base, body and cap through varied textures and colors including stucco, green accent colors. Buildings will also provide parapet for the screening of rooftop equipment and decorative, covered canopy over entryways, which meets the intent of design guidelines outlined in Section 17.15 of the AMC for Industrial buildings. Colored elevations are shown in Attachment D metal canopy over the entryways.

The proposed concrete tilt-up buildings will improve the visual appearance of the area, which will help to strengthen the local economy and enhance the quality of life for Adelanto residents.

HYDROLOGY & WATER QUALITY:
112
CUP 21-23 LDP 21-23
March 16, 2022
6 According to the Federal Emergency Management Agency (FEMA) flood insurance maps obtained for the City of Adelanto, the proposed project site is located in Zone X, which is not located within a 100- year flood plain. The project isrequired to conform to Section 17.93.060 – Runoff Control of the Adelanto Municipal Code. In addition,stormwater discharges from construction activities that disturb one or more acres, or smaller sites disturbing less than one acre that are part of a common plan of development or sale, are regulated under the National Pollutant Discharge Elimination System (NPDES) storm-water permitting program. Prior to start of construction, construction operators must obtain coverage under a NPDES permit, which is administered by the State.

AIR QUALITY:

The Project site is located within the Mojave Desert Air Basin (MDAB), which is under the jurisdiction of the Mojave Desert Air Quality Management District. The Mojave Desert Air Quality Management District (MDAQMD) has established quantitative thresholds for short-term (construction) emissions and longterm (operational) emissions for the criteria pollutants. The applicant will be required to obtain any required permits from the Mojave Desert AQMD prior to any construction activities on the project site.

ENVIRONMENTAL CONSIDERATIONS:

The City of Adelanto, in its capacity as Lead Agency, has determined that this project is Categorically Exempt under the California Environmental Quality Act (CEQA) per Section 15332 of the California Environmental Quality Act Class 32, In-Fill Development Project.

A separate public hearing notice was published and sent to property owners within 300 feet of the project site for the March 16, 2022 Planning Commission meeting. As of the writing of this report, no written comments have been received by staff.

ATTACHMENTS:

Attachment A: Resolution P-22-08
Attachment B: Conditions of Approval (Planning, Building & Safety, revised Public Works/ Engineering, Fire, MDAQMD)
Attachment C: Zoning & Location Map
Attachment D: Site & Landscape Plan, Elevations, Bird’s Eye Site View The project Categorical Exemption/Initial Study are on File at the Planning Department and posted on the Planning Division website at: CEQA Process Policy | Adelanto, CA 113

ATTACHMENT A
Resolution P-22-08
RESOLUTION NO. P-22-08

A RESOLUTION OF THE PLANNING COMMISSION OF THE CITY OF

ADELANTO, SAN BERNARDINO COUNTY, CALIFORNIA, ADOPTING A

CATEGORICAL EXEMPTION AND APPROVING CONDITIONAL USE
PERMIT 21-23 TO ESTABLISH CANNABIS CULTIVATION, EXTRACTION

METAL FRAME BUILDING APPROVED FOR CANNABIS USES LOCATED AT 9248 HOLLY ROAD ON A 4.6-ACRE SITE IN THE MANUFACTURING

INDUSTRIAL ZONE (MI) IN THE CITY OF ADELANTO, CALIFORNIA (ASSESSOR PARCEL NUMBER: 3129-251-24).

NOW, THEREFORE, BE IT RESOLVED by the Planning Commission as follows:

SECTION 1. The above recitals are all true and correct.

Page 2 ends

SECTION 3. The Planning Commission hereby finds and determines that:

The proposed project meets the requirements of the Zoning Code. However, to ensure all Code requirements are met, conditions of approval has been added reflecting these requirements.

Page 3 ends

ATTACHMENTS:

Page 4 ends

AYES:

NOES:

ABSENT:

ABSTAIN:

IN WITNESS WHEREOF, I hereunto set my hand and affix the official seal of the City of Adelanto on the 16th day of March, 2022.
___________________________________
Nyeka Allen
Secretary to the Planning Commission
117
Attachment B
Conditions of Approval
Conditional Use Permit 21-23, Location & Development Plan 21-23 March 16, 2022 Planning Commission

PLANNING DEPARTMENT
General Conditions:

1. Approval Period. Approval of this project will become valid only after a signed copy of the City’s approval letter is received by the Planning Department acknowledging acceptance of all conditions of approval. If not received within 10 working days after approval action, this approval will be null and void.

This approval shall be used within two (2) years of the approval date of this project; by March 16, 2024, otherwise, it shall become null and void and of no effect whatsoever.

Use means the beginning of the substantial construction under this approval within the two (2) year period which is thereafter diligently pursued to completion and in the event the use hereby permitted ceases operation for a period of one (1) year or more, this approval shall become null and void.

2. Modification to Plans. Subsequent modifications of this approval, which do not intensify the use, including but not limited to reorientation of structures, alteration of parking and circulation design, minor changes to the Conditions of Approval, interpretations of the Conditions of Approval relative to intent, necessity of, and timing, may be approved by the Community Development Director, unless the Director requires a Substantial Conformance or Revised Permit application in accordance with the City’s Development Code.

4. Indemnification of the City. (a) Applicant shall defend and indemnify the City, its agents, officers and employees from all claims against the City for damages, and other action, liability or proceeding to attack, set aside, void or annual the Project or any act or determination related to City’s approval of the Project. Applicant’s obligations under this Agreement shall include, without limitation, payment of all court costs and attorney fees, all litigation-related costs, all judgments and awards against the City, and all settlement costs.
(b) The City shall notify the Applicant promptly of any claim, action or proceeding and reasonably cooperate in the defense. Upon receiving such notification, Applicant shall assume the defense of the claim, action, or proceeding, including the employment of counsel satisfactory to City, which approval shall not be unreasonably withheld. In the event of a disagreement between the City and Applicant over litigation issues, City shall have authority to control the litigation and make litigation decisions, including but not limited to, settlement or other disposition of the matter. City’s participation in the defense of any such action shall not relieve the Applicant of any obligation imposed by this condition. If City determines that having common counsel would create a conflict of interest, or if Applicant fails to promptly assume the defense or to promptly employ counsel satisfactory to City, then City may hire counsel for its own defense, and 118
CUP 21-23, LDP 21-23
Conditions of Approval

Page 2 ends

Applicant shall pay the reasonable attorney fees and costs of such counsel within 30 days after receiving itemized invoices. Applicant shall also pay for all costs and fees related to any additional investigation or study, or for supplementing or revising any document, including, without limitation, environmental documents.

5. Fees. All fees and charges the City has or intends to adopt that are due at the time of utility connection or when building permit(s) is/are issued shall be paid for the Developed Area, as required by the City.

6. Outstanding Costs. Any fees due to the City of Adelanto for processing this project shall be paid to the City within 30 calendar days of final action. Failure to pay such outstanding fees within the time specified shall invalidate any approval or conditional approval granted by this action. No permits, site work, or other actions authorized by this entitlement shall be permitted, authorized or commenced until all outstanding fees are paid to the City.

7. CEQA/Fish and Game Fees. The applicant/owner shall file a Notice of Exemption (NOE) with San Bernardino County and pay related County fee for such within five (5) days after the effective date of conditional approval. The applicant should be aware that Section 21089(b) of the Public Resources Code provides that any project approved under CEQA is not operative, vested or final until the required fee is paid. Proof of filing is required prior to issuance of any permits.

8. City Codes. The project shall comply with all disabled access requirements of the Americans with Disabilities Act and Title 24 of the State Code, and all local requirements of the City of Adelanto Municipal Code, Specifically Title 17 (Zoning Code), Section

17.80.130.

9. Maintenance Responsibility. The maintenance of graded slopes and landscaped areas shall be the responsibility of the developer until the transfer to an approved maintenance authority. Grading permits shall not be issued for any areas to be graded and remain undeveloped for an extended period (i.e. for subsequent phases of a development) until a re-vegetation plan is approved by the Planning Department, and until bonds are posted for re-vegetation, or erosion control program for wind erosion.

10. Plans. Plan submittals shall be prepared and signed by a California Licensed Architect or Engineer per State of California, Business and Professions Code. All plans shall be drawn to a standard scale.

11. Phasing. This project will not be phased.

12. Development Restrictions. The physical development of the site shall be reviewed and approved by the City. Any use, activity, and/or development occurring on the site without appropriate City approvals shall constitute a code violation and shall be treated as such.

Placement of any construction trailer or storage of construction materials shall require separate review and approval by the City.
119
CUP 21-23, LDP 21-23
Conditions of Approval

Page 3 ends

13. Architectural Design. The proposed project shall meet the intent of the City’s Design Review Guidelines for Industrial buildings outlined in Chapter 17.15 of the Zoning Code.

Approval is for three, new tilt-up concrete buildings.

14. Trash Enclosures. All required trash receptacles proposed for the site shall be enclosed by a six (6) foot high solid masonry wall with solid, view-obstructing gates. A pedestrian entrance shall be provided into each trash enclosure.

15. Joshua Trees. Joshua Trees are not present on-site.

16. Internal Fire Lane. Internal fire access lane and/or turn-around must be designed and provide signage per County Fire.

17. Approved Uses. All new uses within the property boundaries shall be reviewed and approved by the Planning Department. Should the developer propose a more intensive use requiring additional parking spaces, additional employees, more restroom facilities, significant change from original conceptual landscaping plans, etc., the proposed use shall be presented for review by the Planning Department for compliance with the original approval. The new proposed use may be subject, but not limited to: A Modification to Conditional Use Permit, a new Location and Development Plan Application, and/or a Utility Feasibility Study application.

18. Required Approvals. The developer shall obtain the following clearances or approvals:
a. Verification from the Planning Department that all pertinent conditions of approval have been met, including any administrative development plan review approvals, as mandated by the Adelanto Municipal Code.
b. Building and Safety Department conditions of approval. c. Engineering Department/Public Works per the attached conditions of approval dated October 12, 2021.
d. San Bernardino County Fire Department
e. Mojave Desert AQMD
f. California Department of Fish and Wildlife
g. Any other required approval from an outside agency.

Prior to Issuance of Building Permits:

18. Development Impact Fees. The City of Adelanto has implemented development impact fees for various infrastructure and capital facilities needs generated by new development. These fees will provide for various capital facilities including, but not limited to, roads, parks, flood control and drainage, public facilities, and firefighting facilities. This project shall be subject to all such existing and future development impact fees, which are in effect at the time building permits are issued. 120
CUP 21-23, LDP 21-23
Conditions of Approval

Page 4 ends

19. Building Plans. Building plans shall be reviewed and approved the Planning Department for conformance to the Conditions of Approval and the approved Development Plan prior to issuance of a building permit.

20. Signed Approval Letter. A signed copy of the City’s approval letter shall be on file with the Planning Division. If ownership of the property or the developer of the property has changed since the original approval or issuance of grading permits, a new copy of the City approval letter shall be signed by the current development parties.

21. Equipment Screening. All mechanical equipment and vents, ground or rooftop shall be screened from public view. Roof gutters and downspouts are not permitted on the exterior of the building unless integrated into the architecture of the building. In addition, all screening shall be an integral part of the building, details of which shall be provided to the Planning Department for review and approval. Any proposed change shall be reviewed and approved by the Planning Department.

22. Signage. Proposed signs for this development shall require a separate application approval by the Planning Department prior to installation. Furthermore, all signs proposed for this development shall remain in full compliance with all City sign regulations at all times.

23. Landscaping. The developer shall submit three (3) copies of construction level Landscape and Irrigation Plans to the Planning Department, accompanied by the appropriate filing fee. The plans shall be prepared by a registered landscape architect and include the location, number, genus, species, and container size of the plants.

Parking Lot Trees shall be provided at a rate that produces 30% shading of parking areas at tree maturity. The cover page shall identify the total square footage of the landscaped area and note how it is to be maintained. Use of water efficient fixtures and drought tolerant plants is required. Landscaping shall consist of native or droughttolerant plants capable of surviving the desert environment and climate with a minimum of maintenance and supplemental watering. A list of plants determined capable of meeting this criterion is contained in Section 17.60.080 .

All landscaping and irrigation systems shall follow Section 17.60 of the Adelanto Municipal Code. Plans will be reviewed and approved by the Planning Department.

A minimum of 10% of the project site shall be landscaped, exclusive of areas within the public right-of-way and shall be in compliance with Table 30-1 in Chapter 17.30 (Manufacturing /Industrial District) of the Municipal Code. The developer shall be responsible for planting landscaping in compliance with Section 17.60 of the Adelanto Municipal Code, entitled “Water Conservation/Landscaping Ordinance”, including but not limited to native drought- tolerant plants and efficient irrigation systems. Species shall follow Section 17.60.80.

24. Parking and Loading. The entire project shall provide a minimum of 64 parking spaces including ADA spaces. All parking spaces and access areas shall meet the City’s requirements.
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CUP 21-23, LDP 21-23
Conditions of Approval

Page 5 ends

25. Archeological Resources. If prehistoric or historic resources over 50 years of age are encountered during land modification, then activities in the immediate area of the finds shall be halted so that an archaeologist can assess the find, determine its significance, and make recommendations for appropriate mitigation measures. A historical resources management report shall be submitted by the professional to document the monitoring, to evaluate resource significance and integrity, and if necessary, to evaluate project impacts and propose mitigation measures to mitigate potential adverse impacts. If archeological resources are encountered during grading, ground disturbance activities shall cease so a qualified archeological monitor can evaluate the resources. If discovered resources merit long-term consideration, adequate funding shall be provided to collect, curate and report their resources in accordance with standard archaeological management requirements. If the City finds that a developer encounters cultural resources and fails to notify th Division, the City will place those responsible for the destruction of historic and archaeologically significant resources on file with the County of San Bernardino and the State of California, Office of Historic Preservation.

26. Paleontological Resources. If paleontological resources are encountered during grading, ground disturbance activities shall cease so a qualified paleontological monitor can evaluate any paleontological resources exposed during the grading activity. If paleontological resources are encountered, adequate funding shall be provided to collect, curate and report on these resources to ensure the values inherent in the resources are adequately characterized and preserved. Collected specimens will be sent to the Earth Sciences Division of the San Bernardino County Museum.

27. Human Remains. If human remains are encountered on the property, then the San Bernardino County Coroner's Office MUST be contacted within 24 hours of the find, and all work halted until a clearance is given by that office and any other involved agencies.

Contact the County Coroner at either 1) 15329 Bonanza Road, Unit 8, Victorville, CA 92392 or (760) 955-8535; or 2) 175 South Lena Road, San Bernardino, CA 92415- 0037 or (909) 387-2978.

28. Abandoned Wells. Any abandoned wells on the property or similar structures that might result in groundwater contamination shall be destroyed in a manner approved by the City and San Bernardino County Environmental Health Department.

Prior to Certificate of Occupancy:

29. Security Plan. Security Plan shall be in place pursuant to Section 17.30.180 of the Adelanto Zoning Code.

CONSERVATION

30. Mandatory Organic Recycling in accordance with AB 1826. Contact Burrtec – Robert Rios ([email protected]) for recycling information.

31. “Saving by Design” Southern California Edison Energy Efficiency – Contact Maya Aubrey [email protected] for electrical efficiency information. .
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MI
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CUP 21-23 & LDP 21-23
3129-251-24
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ATTACHMENT D
Site Plan CUP 21-23, LDP 21-23
Bird’s Eye View of Site Plan
124
First Floor Plan
Mezzanine Floor Plan
125
Holly Street Profile View (Landscaping, Wall, Buildings) New Building Elevations (S, E & W)
126

BLODGETTBAYLOSISENVIRONMENTALPLANNING
Planning ● Environmental Analysis ● Economics ● Mapping ● GIS 2211 S. HACIENDA BOULEVARD, SUITE 107 ● HACIENDA HEIGHTS, CALIFORNIA 91745 PHONE 626-336-0033 ● CELLULAR 562-556-4542 ● E-MAIL [email protected] Date: March 1, 2023
To: City of Adelanto Planning Commission
Subject: Response to Comments on the CEQA Infill Exemption for a proposed project that would be located at 9248 Holly Road (Conditional Use Permit 21-23 and Location and Development Plan 21-23).

The purpose of this Memorandum is to provide a response to those comments received in a letter to the City of Adelanto Planning Commission from Lozeau Drury in a letter dated March 16, 2022 regarding the CEQA Infill Exemption for a proposed project that would be located at 9248 Holly Road (Conditional Use Permit 21-23 and Location and Development Plan 21-23).

Comment 1.

I am writing on behalf of Supporters for Alliance for Environmental Responsibility (“SAFER”) regarding the project known as Conditional Use Permit 21-23 and Land Development Plan (LDP) 21-23, including all actions related to [or] referring to the construction of three new 27,500 square foot concrete tilt-up buildings including 5,000 square foot mezzanines, totaling 82,500 square feet, located at 9248 Holly Road in the City of Adelanto (“the] Project]).

Response 1
The comment is noted for the record.

Comment 2.

SAFER objects to the City staff’s decision to exempt the Project from review under the California Environmental Quality Act (“CEQA”) pursuant to Section 15332 of the CEQA Guidelines and argues that CEQA review is required for the project. For this reason, SAFER requests the Planning Commission declines to approve the Project unless and until proper CEQA review is conducted.

Response 2
For this project, the City of Adelanto reviewed the proposed project and determined that it is categorically exempt and qualifies for a Class 32 Infill Exemption.1 The City of Adelanto makes the following findings in support of the Infill Exemption (refer to CEQA Guidelines §15332).2 The required findings are noted in italics. ● The project is consistent with the applicable General Plan designation and all applicable General Plan policies as well as with applicable zoning designation and regulations. The City of Adelanto permits and regulates Medicinal and Adult Use Cannabis activities in designated zones. Cannabis activity is 1 CEQA Guidelines California Code of Regulations, Title 14, Division 6, Chapter 3, Article 19. Categorical Exemptions. (Section 15332). 2 CEQA Guidelines California Code of Regulations, Title 14, Division 6, Chapter 3, Article 19. Categorical Exemptions. (Section 153332). 127

BLODGETTBAYLOSISENVIRONMENTALPLANNING
PAGE 2
permitted with a Conditional Use Permit in the following zones: Light Manufacturing (LM), Light Manufacturing Cannabis Only (LMCO), Manufacturing Industrial (MI), and Airport Development District (ADD). The proposed project site’s applicable Zoning and General Plan land use designation of Manufacturing/Industrial (MI).
● The approval of the proposed project would not result in any significant effects relating to traffic, noise, air quality, or water quality. The number of trips that will be created by the proposed project will be less than the number which would typically be created by a conventional manufacturing use. All operations will be conducted indoors and the project site is located in an industrial zoned area (Manufacturing Industrial (MI). Therefore, the proposed project will not generate excessive operational, or roadway impacts that could affect sensitive receptors. The Applicant will be required to prepare an Odor Management Plan to control odor emissions and the Applicant’s contractors will be required to adhere to all pertinent air quality control regulations. ● The site can be adequately served by all required utilities and public services. The City’s utility providers are aware of the project and concluded that the project’s demand for utility services such as waste, water, sewage, and electricity could be accommodated without the expansion or construction of new facilities other than those needed to serve the project site itself. The San Bernardino County Fire Department and the San Bernardino County Sherriff’s Department have reviewed the project application and provided development requirements that the Applicant must adhere to. ● The proposed project will be limited to the project site and no dislocation of off-site structural improvements will be required to accommodate the proposed project. The project’s operation will be restricted to the project site and no off-site improvements will be required to accommodate the proposed project.
● The project site does not contain any sensitive environmental resources. No sensitive habitats (e.g., wetlands, vernal pools, critical habitats for sensitive species, etc.) were observed on-site. The site’s utility as a habitat is further constrained by the on-site disturbance and the surrounding development. ● The project site is located within an urbanizing area of the City of Adelanto. No scenic resources or scenic corridors will be affected by the proposed project. The project site and the surrounding parcels are partially developed. The project site is primarily surrounded by industrial uses. The site and the surrounding area are zoned for manufacturing and industrial uses. No natural or sensitive habitats are located within the project site. As a result, the project will not result in any impacts to sensitive visual resources in the area.
● The project site is not located within an area, nor does it include a site, the Department of Toxic Substances Control (DTSC) and the Secretary for Environmental Protection has identified as being 128

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PAGE 3
affected by hazardous wastes. The project site is not located on the California Department of Toxic Substances Control’s Hazardous Waste and Substances Site List - Site Cleanup (Cortese List).3 ● The proposed project will not result in any adverse impacts on historic resources. A review of the U.S.

National Park Service’s National Register of Historic Places and the State registrar indicated that there are no Federal- or State-recognized historic structures located within the project site. The project site is currently undeveloped and the project will not remove any existing structures. ● The proposed development will not require any review by a State trustee or responsible agency. No State trustee and responsible agencies are required as part of this project’s local approval though CalCannibis (California DFA) will be reviewing the CE since this Agency is a permitting Agency.

The site has been graded and is occupied by an existing 16,000 square foot building. The site’s zoning is Manufacturing/Industrial (MI). An aerial photograph of the project site is provided in Exhibit 4. The surrounding land uses include the following:4
● North of the Site: An industrial use (16176 Beaver Road) is located to the north of the site. This area is zoned as Manufacturing/Industrial (MI).
● South of the Site: Holley Road extends along the project site’s south side. Further south are smaller industrial properties (9270 Holly Road). This area is zoned as Manufacturing/Industrial (MI). ● East of the Site: Beaver Road extends along the project site’s east side. An industrial use, is located further east on the east side of Beaver Road (9332 Beaver Road). This area is zoned as Manufacturing/Industrial (MI).
● West of the Site: A vacant disturbed property abuts the project site to the west. This property was used for the dumping of earthen materials. This area is zoned as Manufacturing/Industrial (MI).

The Adelanto High Desert Detention Center is located approximately 1,600 feet north of the project site. The Adelanto Airport is located approximately 1,500 feet south of the project site.

Based on the analysis provided in the Notice of Exemption, the project met and complied with the conditions and requirements of CEQA Guidelines Section 15332 (Class 32 Infill Exemption). 3 CalEPA. DTSC’s Hazardous Waste and Substances Site List - Site Cleanup (Cortese List). http://www.dtsc.ca.gov/SiteCleanup/Cortese_List.cfm
4 Google Maps and City of Adelanto Zoning Map. Website accessed on February 11, 2022. 129

CITY COUNCIL AGENDA REPORT
DATE: April 12, 2023
TO: Honorable Mayor and City Council Members
FROM: Jessie Flores, City Manager
BY: City Attorney’s Office
SUBJECT: DISCUSSION - CONSIDERATION AND ADOPTION OF A RESOLUTION AUTHORIZING

THE CITY TO ENTER INTO FIVE NATIONAL OPIOIDS SETTLEMENT AGREEMENTS

WITH WALMART, CVS, WALGREENS, TEVA, AND ALLERGAN
STAFF RECOMMENDATION:

Staff recommends the consideration and approval of Resolution No. 23-27 authorizing the City to enter into five national opioids litigation settlement agreements with Teva, Allergan, CVS, Walgreens, and Walmart; agree to the terms of the related State-Subdivision agreements; and authorize entry into the related State-Subdivision agreements with the Attorney General.

BACKGROUND:

Since 2017, state and local governments in California and around the United States have pursued litigation against certain manufacturers, distributors, and retailers of opioid pharmaceuticals to hold them financially responsible for the local impacts of the opioid epidemic. These national litigation matters are and were being handled in multi-district litigation in federal court.

Nationwide settlements were previously reached totaling $26 billion with various opioids manufacturers and distributors including McKesson, AmerisourceBergen, Cardinal Health, and Jansen.

The City entered into these settlements, called the Distributors and Jansen settlements, in 2021.

Retailers Settlements
Recently, tentative nationwide settlements were announced with pharmaceutical manufacturers Teva and Allergan, and retailers/pharmacies CVS, Walgreens, and Walmart. These settlements allow for nonlitigating public entities to join in the settlements in exchange for a release against these parties. Cities have until April 18, 2023 to join.

The five settlements total approximately $20.2 billion, payable to states and local governments, and with payments spanning three (3) to fifteen (15) years. The five settlement agreements each contain hundreds of pages and are online at www.oag.ca.gov/opioids.

Approximately $1.8 billion of the total settlement is intended for California, with seventy percent ($1.26 billion) targeted for local governments. The funds targeted for local governments are known as the 130
“Abatement Fund.” Eligible cities that do not participate in these settlements will have their prospective settlement share paid to the State of California.

Cities can elect to have all or a portion of their settlement funds directed to the County, or the funds can be directed to the City for expenditure with restrictions, recordkeeping requirements, and State oversight. A City’s share allocated to a County is not required to be spent exclusively for abatement activities in that city but will instead become part of the County’s share of the Abatement Fund.

Settlement funds must be spent on opioid remediation and according to certain conditions and restrictions. At least half of the funds must be spent on what are called “high impact abatement activities” as identified in the California State Subdivision Agreements, which delineate how opioid settlement funds can be spent. The California State Subdivision Agreements are attached to this staff report.

City Settlement Funds
Rough calculations made by San Bernardino County officials, based on a best-case scenario, indicate that Adelanto could receive a maximum of $102,075.05 from these settlements. However, County officials caution that their figures are unofficial and unreliable due to various factors and because of the early stage of settlement administration.

It is currently unknown when the settlement administrator will begin paying out settlement funds to local governments. However, as settlement funds have already been distributed under the Distributors and Jansen settlements, funds for these five settlements should be distributed more expeditiously.

DISCUSSION:

Staff recommends the consideration and approval of Resolution No. 23-27 authorizing the City to enter into these five national opioids litigation settlement agreements. The City’s adoption of the resolution and entering into the agreements will result in increased financial resources to battle the local effects of the opioid epidemic. After then, the City will determine whether its settlement funds shall be allocated to San Bernardino County.

FISCAL IMPACT:

If approved, the City will become eligible to receive funds for opioid abatement purposes, in an amount to be determined.

RECOMMENDATION:

As such, staff recommends that the City Council adopt Resolution No. 23-27, authorizing the City to release the five settling defendants in exchange for the consideration set forth in the Subdivision Participation Forms and California State-Subdivision Agreements, and authorize City staff to take the following measures:

1. The execution of the Subdivision Participation Forms for each of the five settlements (Teva, Allergan, CVS, Walgreens, and Walmart) and any and all documents ancillary thereto. 131

2. The execution of the proposed California State-Subdivision Agreements for each of the five settlements (Teva, Allergan, CVS, Walgreens, and Walmart) and any and all documents ancillary thereto.

ATTACHMENTS:

A. Proposed Resolution No. 23-27.

B. Subdivision and Special District Settlement Participation Form – Allergan Settlement C. Subdivision and Special District Settlement Participation Form – Teva Settlement D. Subdivision and Special District Settlement Participation Form – CVS Settlement E. Subdivision and Special District Settlement Participation Form – Walgreens Settlement F. Subdivision and Special District Settlement Participation Form – Walmart Settlement G. Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds – Allergan Settlement
H. Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds – Teva Settlement
I. Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds – CVS Settlement
J. Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds – Walgreens Settlement
K. Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds – Walmart Settlement
132
1 RESOLUTION NO. 23-27

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF ADELANTO, COUNTY OF SAN BERNARDINO, STATE

OF CALIFORNIA, AUTHORIZING THE CITY TO ENTER

INTO THE SETTLEMENT AGREEMENTS WITH

WALGREENS, TEVA, ALLERGAN, CVS, AND WALMART,
AGREE TO THE TERMS OF THE RELATED STATESUBDIVISION AGREEMENTS, AND AUTHORIZE ENTRY

INTO THE RELATED STATE-SUBDIVISION

AGREEMENTS WITH THE ATTORNEY GENERAL
WHEREAS, the United States is facing an ongoing public health crisis of opioid abuse, addiction, overdose, and death, forcing the State of California and California counties and cities to spend billions of dollars each year to address the direct consequences of this crisis; and
WHEREAS, pending in the U.S. District Court for the Northern District of Ohio is a multidistrict litigation (“MDL”) being pursued by numerous public entity plaintiffs against the manufacturers and distributors of various opioids based on the allegation that the defendants’ unlawful conduct caused the opioid epidemic; and WHEREAS on or about November 14, 2022, a proposed nationwide tentative settlement was reached between the plaintiffs in the MDL and Walmart Inc. (“Walmart”); and
WHEREAS on or about November 22, 2022, a proposed nationwide tentative settlement was reached between the plaintiffs in the MDL and Teva Pharmaceutical Industries Ltd. and all of its respective past and present direct or indirect parents, subsidiaries, divisions, affiliates, joint ventures, predecessors, successors, assigns, including but not limited to Teva Pharmaceuticals USA, Inc., Actavis LLC (f/k/a Actavis Inc.), Actavis Elizabeth LLC, Actavis Kadian LLC, Actavis Pharma, Inc. (f/k/a Watson Pharma, Inc.), Actavis Kadian LLC, Actavis Laboratories UT, Inc. (f/k/a Watson Laboratories, Inc. – Utah), Actavis Mid Atlantic LLC, Actavis Totowa LLC, Actavis Laboratories FL, Inc. (f/k/a Watson Laboratories, Inc. – Florida), Actavis South Atlantic LLC, Warner Chilcott Company LLC, and Watson Laboratories, Inc., and Anda Inc. (collectively, “Teva”); and
WHEREAS on or about November 22, 2022, a proposed nationwide tentative settlement was reached between the plaintiffs in the MDL and Allergan Finance, LLC (f/k/a Actavis, Inc., which in turn was f/k/a Watson Pharmaceutics, Inc.) and Allergan Limited (f/k/a Allergan plc, which, in turn, was f/k/a Actavis plc) (collectively, “Allergan”); and
WHEREAS, on or about December 9, 2022, a proposed nationwide tentative settlement was reached between the plaintiffs in the MDL and CVS Health Corporation 133
2 and CVS Pharmacy, Inc. and all of their past and present direct and indirect parent and subsidiaries (collectively, “CVS”); and
WHEREAS, on or about December 9, 2022, a proposed nationwide tentative settlement was reached between the plaintiffs in the MDL and Walgreen Co. (“Walgreens”); and
WHEREAS, CVS, Teva, Walgreens, Walmart, and Allergan shall be referred in this Resolution as “Settling Defendants”; and
WHEREAS, as part of the settlements with the Settling Defendants, local subdivisions, including certain cities, that are not plaintiffs in the MDL may participate in the settlements in exchange for a release of the Settling Defendants; and WHEREAS, copies of the proposed terms of those proposed nationwide settlements have been set forth in the Master Settlement Agreements with the Settling Defendants; and
WHEREAS, copies of the Master Settlement Agreements have been provided to the City Council with this Resolution; and
WHEREAS, the Settlement Agreements provide, among other things, for the payment of a certain sum to settling government entities in California including to the State of California and Participating Subdivisions upon occurrence of certain events as defined in the Settlement Agreements (“California Opioid Funds”); and WHEREAS, California local governments in the MDL have engaged in extensive discussions with the State Attorney General’s Office (“AGO”) as to how the California Opioid Funds will be allocated, which has resulted in the Proposed California StateSubdivision Agreements Regarding Distribution and Use of Settlement Funds (“Allocation Agreements”) from the settlements with the Settling Defendants; and WHEREAS, copies of the Allocation Agreements for all of the settlements with the Settling Defendants have been provided with this Resolution; and WHEREAS, the Allocation Agreements allocate the California Opioid Funds as follows: 15% to the State Fund; 70% to the Abatement Accounts Fund; and 15% to the Subdivision Fund. For the avoidance of doubt, all funds allocated to California from the Settlements shall be combined pursuant to the Allocation Agreements, and 15% of total from each settlement shall be allocated to the State of California (the “State of California Allocation”), 70% to the California Abatement Accounts Fund (“CA Abatement Accounts Fund”), and 15% to the California Subdivision Fund (“CA Subdivision Fund”); and WHEREAS, under the Master Settlement Agreements, certain local subdivisions that did not file a lawsuit against the Settlement Defendants may qualify to participate in the settlements and obtain funds from the Abatement Account Fund; and 134
3 WHEREAS, the City is eligible to participate in the Settlement and become a CA Participating Subdivision; and
WHEREAS, the funds in the CA Abatement Accounts Fund (the 70% allocation) will be allocated based on the allocation model developed in connection with the proposed negotiating class in the National Prescription Opiate Litigation (MDL No. 2804), as adjusted to reflect only those cities and counties that are eligible, based on population or litigation status, to become a CA Participating Subdivision (those above 10,000 in population). The percentage from the CA Abatement Accounts Fund allocated to each CA Participating Subdivision is set forth in Appendix 1 to the Allocation Agreements and provided to the City Council with this Resolution. The City’s share of the CA Abatement Accounts Fund will be a product of the total in the CA Abatement Accounts Fund multiplied by the City’s percentage set forth in Appendix 1 of the Allocation Agreements (the “Local Allocation”); and
WHEREAS, a CA Participating Subdivision that is a city will be allocated its Local Allocation share as of the date on which it becomes a Participating Subdivision. The Local Allocation share for a city that is a CA Participating Subdivision will be paid to the county in which the city is located, unless the city elects to take a direct election of the settlement funds, so long as: (a) the county is a CA Participating Subdivision, and (b) the city has not advised the Settlement Fund Administrator that it requests direct payment at least 60 days prior to a Payment Date; and
WHEREAS, it the intent of this Resolution to authorize the City to enter into the Master Settlement Agreements with the Settling Defendants by executing the Participation Agreements and to enter into the Allocation Agreements by executing the signature pages to those agreements.

NOW, THEREFORE, BE IT RESOLVED: the City Council hereby approves and authorizes City Manager Jessie Flores to settle and release the City’s claims against the Settling Defendants in exchange for the consideration set forth in the Settlement Agreements, Allocation Agreements and all exhibits thereto.

BE IT FURTHER RESOLVED that all actions heretofore taken by the City Council and other appropriate public officers and agents of the City with respect to the matters contemplated under this Resolution are hereby ratified, confirmed and approved. 135
4 PASSED, APPROVED AND ADOPTED this 12th day of April, 2023.

THE CITY OF ADELANTO
_____________________________
Gabriel Reyes, Mayor
APPROVED AS TO FORM: ATTEST:
______________________________ ________________________________ Marc Tran Brenda Lopez
Kristopher Daams City Clerk
City Attorney
136
1 Proposed California State-Subdivision Agreement
Regarding Distribution and Use of
Settlement Funds – Allergan Settlement

1. Introduction
Pursuant to the Allergan Settlement Agreement, dated as of November 22, 2022, and any revision thereto (the “Allergan Settlement Agreement”), including Section VIII and Exhibit O, the State of California proposes this agreement (the “CA Allergan Allocation Agreement”) to govern the allocation, distribution, and use of Settlement Fund payments made to California pursuant to Sections VI, VII, and VIII of the Allergan Settlement Agreement. For the avoidance of doubt, this agreement does not apply to payments made pursuant to Sections XII or XIII of the Allergan Settlement Agreement.

Pursuant to Exhibit O, Paragraph 4, of the Allergan Settlement Agreement, acceptance of this CA Allergan Allocation Agreement is a requirement to be an Initial Participating Subdivision.1 Further, pursuant to Sections X.B and X.C of the Teva Settlement Agreement and Sections IX.B and IX.C of the Allergan Settlement Agreement, eligible Subdivisions must participate in both the Teva Settlement Agreement and Allergan Settlement Agreement, or neither.2

2. Definitions
a) CA Participating Subdivision means a Participating Subdivision that is also (a) a Plaintiff Subdivision and/or (b) a Subdivision with a population equal to or greater than 10,000. For the avoidance of doubt, eligible CA Participating Subdivisions are those California subdivisions listed in Exhibit C (excluding Litigating Special Districts) and/or Exhibit I to the Allergan Settlement Agreement. b) Teva Settlement Agreement means the Teva Settlement Agreement dated November 22, 2022, and any revision thereto.
c) CVS Settlement Agreement means the CVS Settlement Agreement dated December 9, 2022, and any revision thereto as well as any modification thereto entered into by the State of California and CVS.
d) Distributor Settlement Agreement means the Distributor Settlement Agreement dated July 21, 2021, and any revision thereto.
e) Janssen Settlement Agreement means the Janssen Settlement Agreement dated July 21, 2021, and any revision thereto.
1 A parallel but separate agreement (the “CA Teva Allocation Agreement”) will govern the allocation, distribution, and use of settlement fund payments under the Teva Settlement Agreement.
2 However, if Teva enters bankruptcy prior to the Effective Date, an eligible Subdivision can choose to only join the Allergan Settlement Agreement.

DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 137
2 f) Walgreens Settlement Agreement means the Walgreens Settlement Agreement dated December 9, 2022, and any revision thereto.
g) Walmart Settlement Agreement means the Walmart Settlement Agreement dated November 14, 2022, and any revision thereto.
h) CA Litigating Special District means a Litigating Special District located in California. CA Litigating Special Districts include Downey Unified School District, Elk Grove Unified School District, Kern High School District, Montezuma Fire Protection District (located in Stockton, California), Santa Barbara San Luis Obispo Regional Health Authority, Inland Empire Health Plan, Health Plan of San Joaquin, San Leandro Unified School District, Pleasant Valley School District Board, and LA Care Health Plan.
i) Plaintiff Subdivision means a Subdivision located in California, other than a CA Litigating Special District, that filed a lawsuit, on behalf of the Subdivision and/or through an official of the Subdivision on behalf of the People of the State of California, against one or more Opioid Defendants prior to October 1, 2020. j) Opioid Defendant means any defendant (including but not limited to Teva Pharmaceutical Industries Ltd., Allergan Finance, LLC, Allergan Limited, CVS Health Corporation, CVS Pharmacy, Inc., Walgreen Co., Walmart Inc., Johnson & Johnson, Janssen Pharmaceuticals, Inc., Purdue Pharma L.P., Cardinal Health, Inc., AmerisourceBergen Corporation, and McKesson Corporation) named in a lawsuit seeking damages, abatement, or other remedies related to or caused by the opioid public health crisis in any lawsuit brought by any state or local government on or before October 1, 2020.

3. General Terms
This agreement is subject to the requirements of the Allergan Settlement Agreement, as well as applicable law, and the Allergan Settlement Agreement governs over any inconsistent provision of this CA Allergan Allocation Agreement. Terms used in this CA Allergan Allocation Agreement have the same meaning as in the Allergan Settlement Agreement unless otherwise defined herein.

Pursuant to Section VIII(E)(1) of the Allergan Settlement Agreement, (a) all Settlement Fund payments will be used for Opioid Remediation, except as allowed by Section VIII(C) of the Allergan Settlement Agreement; and (b) at least seventy percent (70%) of Settlement Fund payment amounts will be used solely for future Opioid Remediation.

4. State Allocation
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 138
3 The Settlement Fund payments to California,3 pursuant to the Allergan Settlement Agreement, shall be allocated as follows: 15% to the State Fund; 70% to the Abatement Accounts Fund; and 15% to the Subdivision Fund. For the avoidance of doubt, all funds allocated to California from the Settlement Fund shall be combined pursuant to this CA Allergan Allocation Agreement, and 15% of that total shall be allocated to the State of California (the “State of California Allocation”), 70% to the California Abatement Accounts Fund (“CA Abatement Accounts Fund”), and 15% to the California Subdivision Fund (“CA Subdivision Fund”).

A. State of California Allocation
Fifteen percent of the total Settlement Fund payments will be allocated to the State and used by the State for future Opioid Remediation.

DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 139
4 CA Abatement Accounts Funds) and reported on in accordance with Section 4.B.iii (CA Abatement Accounts Fund Oversight).
d) A city within a county that is a CA Participating Subdivision may opt in or out of direct payment at any time, and it may also elect direct payment of only a portion of its share, with the remainder going to the county, by providing notice to the Settlement Fund Administrator at least 60 days prior to a Payment Date. For purposes of this CA Allergan Allocation Agreement, the Cities of Los Angeles, Oakland, San Diego, San Jose and Eureka will be deemed to have elected direct payment if they become Participating Subdivisions.
e) The State will receive the Local Allocation share of any payment to the Settlement Fund that is attributable to a county or city that is eligible to become a CA Participating Subdivision, but that has not, as of the date of that payment to the Settlement Fund, become a Participating Subdivision.
f) Funds received by a CA Participating Subdivision, and not expended or encumbered within five years of receipt and in accordance with the Allergan Settlement Agreement and this CA Allergan Allocation Agreement shall be transferred to the State; provided however, that CA Participating Subdivisions have seven years to expend or encumber CA Abatement Accounts Funds designated to support capital outlay projects before they must be transferred to the State. This provision shall not apply to the Cost Reimbursement Funds, which shall be controlled by Appendix 2.
ii. Use of CA Abatement Accounts Funds
a) The CA Abatement Accounts Funds will be used for future Opioid Remediation in one or more of the areas described in the List of Opioid Remediation Uses, which is Exhibit E to the Allergan Settlement Agreement.
b) In addition to this requirement, no less than 50% of the funds received by a CA Participating Subdivision from the Abatement Accounts Fund in each calendar year will be used for one or more of the following High Impact Abatement Activities:
(1) the provision of matching funds or operating costs for substance use disorder facilities within the Behavioral Health Continuum Infrastructure Program; (2) creating new or expanded Substance Use Disorder (“SUD”) treatment infrastructure; (3) addressing the needs of communities of color and vulnerable populations (including sheltered and unsheltered homeless populations) that are disproportionately impacted by SUD;
(4) diversion of people with SUD from the justice system into treatment, including by providing training and resources to first and early responders (sworn and non-sworn) and implementing best practices for outreach, diversion and deflection, employability, restorative justice, and harm reduction; and/or
(5) interventions to prevent drug addiction in vulnerable youth.

DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 140
5 c) The California Department of Health Care Services (“DHCS”) may add to this list (but not delete from it) by designating additional High Impact Abatement Activities. DHCS will make reasonable efforts to consult with stakeholders, including the CA Participating Subdivisions, before adding additional High Impact Abatement Activities to this list. d) For the avoidance of doubt, and subject to the requirements of the Allergan Settlement Agreement and applicable law, CA Participating Subdivisions may form agreements or ventures, or otherwise work in collaboration with, federal, state, local, tribal or private sector entities in pursuing Opioid Remediation activities funded from the CA Abatement Accounts Fund. Further, provided that all CA Abatement Accounts Funds are used for Opioid Remediation consistent with the Allergan Settlement Agreement and this CA Allergan Allocation Agreement, a county and any cities or towns within the county may agree to reallocate their respective shares of the CA Abatement Accounts Funds among themselves, provided that any direct distribution may only be to a CA Participating Subdivision and any CA Participating Subdivision must agree to their share being reallocated.
iii. CA Abatement Accounts Fund Oversight
a) Pursuant to Section 5 below, CA Participating Subdivisions receiving settlement funds must prepare and file reports annually regarding the use of those funds. DHCS may regularly review the reports prepared by CA Participating Subdivisions about the use of CA Abatement Accounts Funds for compliance with the Allergan Settlement Agreement and this CA Allergan Allocation Agreement.
b) If DHCS determines that a CA Participating Subdivision’s use of CA Abatement Accounts Funds is inconsistent with the Allergan Settlement Agreement or this CA Allergan Allocation Agreement, whether through review of reports or information from any other sources, DHCS shall send a request to meet and confer with the CA Participating Subdivision. The parties shall meet and confer in an effort to resolve the concern.
c) If the parties are unable to reach a resolution, DHCS may conduct an audit of the Subdivision’s use of the CA Abatement Accounts Funds within one year of the request to meet and confer, unless the parties mutually agree in writing to extend the meet and confer time frame.
d) If the concern still cannot be resolved, the State may bring a motion or action in the court where the State has filed its Consent Judgment to resolve the concern or otherwise DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 141
6 enforce the requirements of the Allergan Settlement Agreement or this CA Allergan Allocation Agreement. However, in no case shall any audit be conducted, or motion be brought, as to a specific expenditure of funds, more than five years after the date on which the expenditure of the funds was reported to DHCS, in accordance with this agreement.
e) Notwithstanding the foregoing, this Agreement does not limit the statutory or constitutional authority of any state or local agency or official to conduct audits, investigations, or other oversight activities, or to pursue administrative, civil, or criminal enforcement actions.

C. CA Subdivision Fund
i. Fifteen percent of the total Settlement Fund payments will be allocated to the CA Subdivision Fund. All funds in the CA Subdivision Fund will be allocated among the Plaintiff Subdivisions that are Initial Participating Subdivisions. The funds will be used, subject to any limits imposed by the Allergan Settlement Agreement and this CA Allergan Allocation Agreement, to fund future Opioid Remediation and reimburse past opioid-related expenses, which may include fees and expenses related to litigation, and to pay the reasonable fees and expenses of the Special Master as set forth in Appendix 2.

The CA Subdivision Funds will be allocated as follows:
a) First, funds in the CA Subdivision Fund shall be used to pay the Special Master’s reasonable fees and expenses in accordance with the procedures and limitations set forth in Appendix 2 to this document;
b) Second, funds will be allocated to Plaintiff Subdivisions that are Initial Participating Subdivisions that have been awarded Costs, as defined by and in accordance with the procedures and limitations set forth in Appendix 2 to this document. c) Funds remaining in the CA Subdivision Fund, which shall consist of no less than 50% of the total CA Subdivision Fund received in any year pursuant to Appendix 2, Section 2.c.v, will be distributed to Plaintiff Subdivisions that are Initial Participating Subdivisions, in relative proportion to the Local Allocation. These funds shall be used to fund future opioid-related projects and to reimburse past opioid-related expenses, which may include fees and expenses related to litigation against any Opioid Defendant.

D. Provision for State Back-Stop Agreement
On August 6, 2021, Judge Dan Polster of the U.S. District Court, Northern District of Ohio, Eastern Division, issued an order (ECF Docket Number 3814) (“MDL Fees Order”) in the National Prescription Opiate Litigation (MDL No. 2804) “cap[ping] all applicable contingent fee agreements at 15%.” Private counsel representing Plaintiff Subdivisions should seek its DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 142
7 contingency fees and costs from the Attorney Fee Fund or Cost Funds under the Teva Settlement Agreement and Allergan Settlement Agreement, and, if applicable, the CVS Settlement Agreement, Distributor Settlement Agreement, Janssen Settlement Agreement, Walgreens Settlement Agreement, and Walmart Settlement Agreement.

Before seeking fees or litigation costs and expenses from a State Back-Stop Agreement, private counsel representing Plaintiff Subdivisions must first seek contingency fees and costs from the Attorney Fee Fund or Cost Funds created under the Allergan Settlement Agreement. Further, private counsel may only seek reimbursement for litigation fees and costs that have not previously been reimbursed through prior settlements or judgments.

To effectuate a State Back-Stop Agreement pursuant to this section, an agreement in the form of Appendix 3 may be entered into by a Plaintiff Subdivision, private counsel, and the California Office of the Attorney General. The California Office of the Attorney General shall, upon the request of a Plaintiff Subdivision, execute any agreement executed by a Plaintiff Subdivision and its private counsel if it is in the form of Appendix 3. The California Office of the Attorney General will also consider requests from Plaintiff Subdivisions to execute and enter into agreements presented in other forms.

For the avoidance of doubt, this agreement does not require a Plaintiff Subdivision to request or enter into a State Back-Stop Agreement, and no State Back-Stop Agreement shall impose any duty or obligation on the State of California or any of its agencies or officers, including without limitation the Attorney General.

DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 143
8 c) The State and all CA Participating Subdivisions receiving CA Abatement Accounts Funds will track all deposits and expenditures. Each such subdivision is responsible solely for the CA Abatement Accounts Funds it receives. A county is not responsible for oversight, reporting, or monitoring of CA Abatement Accounts Funds received by a city within that county that receives direct payment. Unless otherwise exempt, Subdivisions’ expenditures and uses of CA Abatement Accounts Funds and other Settlement Funds will be subject to the normal budgetary and expenditure process of the Subdivision. d) Each Plaintiff Subdivision receiving CA Subdivision Funds will track all deposits and expenditures, as required by the Allergan Settlement Agreement and this CA Allergan Allocation Agreement. Among other things, Plaintiff Subdivisions using monies from the CA Subdivision Fund for purposes that do not qualify as Opioid Remediation must identify and include in their annual report, the amount and how such funds were used, including if used to pay attorneys’ fees, investigation costs, or litigation costs. Pursuant to Section VIII(C) of the Allergan Settlement Agreement, such information must also be reported to the Settlement Fund Administrator and Allergan. e) In each year in which DHCS prepares an annual report DHCS will also host a meeting to discuss the annual report and the Opioid Remediation activities being carried out by the State and Participating Subdivisions.

6. Miscellaneous
a) The State or any CA Participating Subdivision may bring a motion or action in the court where the State has filed its Consent Judgment to enforce the requirements of this CA Allergan Allocation Agreement. Before filing such a motion or action the State will meet and confer with any CA Participating Subdivision that is the subject of the anticipated motion or action, and vice versa.
b) Except as provided in the Allergan Settlement Agreement, this CA Allergan Allocation Agreement is not enforceable by any party other than the State and the CA Participating Subdivisions. It does not confer any rights or remedies upon, and shall not be enforceable by, any third party.
c) Except as provided in the CA Allergan Allocation Agreement, if any provision of this agreement or the application thereof to any person, entity, or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this agreement, or the application of such provision to persons, entities, or circumstances other than those as to which it is invalid or unenforceable, will not be affected thereby, and each other provision of this agreement will be valid and enforceable to the fullest extent permitted by law. d) Except as provided in the Allergan Settlement Agreement, this agreement shall be governed by and interpreted in accordance with the laws of California.

DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 144
9 The undersigned, Adelanto city, ACKNOWLEDGES acceptance of this Proposed California StateSubdivision Agreement Regarding Distribution and Use of Settlement Funds – Allergan Settlement is a requirement to be an Initial Participating Subdivision in the Allergan Settlement and ACCEPTS this Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds – Allergan Settlement. EXECUTED on /date_1_teva_allergan/.

Signature: /signer_1_teva_allergan/
Name: /name_1_teva_allergan/
Title: /title_1_teva_allergan/
Date: /date_1_teva_allergan/
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 Jessie Flores
City Manager
April 12, 2023
145
DISCLAIMER: The allocation percentages herein are estimates only and should not be relied on for decisions regarding legal rights, releases, waivers, or other decisions affecting current or potential legal claims. Percentages shown in the Plaintiff Subdivision Percentage column may change pursuant to Section 4.C. of the California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds—Allergan Settlement, whereas the percentages shown in the Abatement Percentage column should not change. Participating Subdivisions, underlying calculations, and the calculated allocation percentages are subject to change.

Regarding the column herein entitled “Abatement Percentage,” pursuant to Section 4.B.e., the State of California will receive the Local Allocation share of any payment to the Settlement Fund that is attributable to a county or city that is eligible to become a CA Participating Subdivision, but that has not, as of the date of that payment to the Settlement Fund, become a Participating Subdivision.

Regarding the column herein entitled “Plaintiff Subdivision Percentage,” payments allocated to a Plaintiff Subdivision, which is not an Initial Participating Subdivision, will be re-allocated among the Plaintiff Subdivisions that are Initial Participating Subdivisions.

Regarding the column herein entitled “Abatement Percentage,” the annotation of “100%” refers to one-hundred percent (100%) of the California Abatement Account Funds received, pursuant to Section 4.B. Regarding the column herein entitled “Plaintiff Subdivision Percentage,” the annotation of “100%” refers to one-hundred percent (100%) of the California Subdivision Funds received, pursuant to Section 4.C. Regarding the column herein entitled “Weighted Allocation Percentage,” the annotation of “100%” refers to onehundred percent (100%) of the combined and weighted allocation of the Abatement Percentage and the Plaintiff Subdivision Percentage.

DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 146
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100.000% 100.000% 100.000%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
County Alameda County Alameda 2.332% 2.853% 2.4237952%
City Alameda Alameda 0.069% 0.0570162%
City Albany Alameda 0.013% 0.0107768%
City Berkeley Alameda 0.152% 0.1249656%
City Dublin Alameda 0.033% 0.040% 0.0338810%
City Emeryville Alameda 0.023% 0.0185765%
City Fremont Alameda 0.108% 0.0888576%
City Hayward Alameda 0.117% 0.0966218%
City Livermore Alameda 0.054% 0.0446740%
City Newark Alameda 0.026% 0.0217626%
City Oakland Alameda 0.486% 0.595% 0.5055601%
City Piedmont Alameda 0.014% 0.0114064%
City Pleasanton Alameda 0.067% 0.0554547%
City San Leandro Alameda 0.039% 0.0321267%
City Union City Alameda 0.043% 0.0352484%
County Amador County Amador 0.226% 0.277% 0.2349885%
County Butte County Butte 1.615% 1.975% 1.6783178%
City Chico Butte 0.216% 0.264% 0.2246499%
City Oroville Butte 0.079% 0.0646595%
County Calaveras County Calaveras 0.226% 0.277% 0.2351644% County Colusa County Colusa 0.059% 0.0489221%
County Contra Costa County Contra Costa 2.102% 2.571% 2.1844585% City Antioch Contra Costa 0.037% 0.0301879%
City Brentwood Contra Costa 0.026% 0.0215339%
City Clayton Contra Costa 0.002% 0.0018060%
City Concord Contra Costa 0.055% 0.0456676%
City Danville Contra Costa 0.010% 0.0082255%
City El Cerrito Contra Costa 0.023% 0.0189024%
City Hercules Contra Costa 0.010% 0.0078273%
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 147
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Lafayette Contra Costa 0.006% 0.0046030%
City Martinez Contra Costa 0.012% 0.0098593%
City Moraga Contra Costa 0.004% 0.0031007%
City Oakley Contra Costa 0.010% 0.0079416%
City Orinda Contra Costa 0.005% 0.0038157%
City Pinole Contra Costa 0.013% 0.0110909%
City Pittsburg Contra Costa 0.053% 0.0436369%
City Pleasant Hill Contra Costa 0.013% 0.0106309%
City Richmond Contra Costa 0.146% 0.1201444%
City San Pablo Contra Costa 0.018% 0.0148843%
City San Ramon Contra Costa 0.021% 0.0176459%
City Walnut Creek Contra Costa 0.026% 0.0212132%
County Del Norte County Del Norte 0.114% 0.140% 0.1189608% County El Dorado County El Dorado 0.768% 0.939% 0.7980034% City Placerville El Dorado 0.015% 0.0127642%
City South Lake Tahoe El Dorado 0.081% 0.0665456%
County Fresno County Fresno 1.895% 2.318% 1.9693410%
City Clovis Fresno 0.065% 0.0536211%
City Coalinga Fresno 0.012% 0.0098554%
City Fresno Fresno 0.397% 0.3270605%
City Kerman Fresno 0.005% 0.0042534%
City Kingsburg Fresno 0.008% 0.0066167%
City Mendota Fresno 0.002% 0.0019387%
City Orange Cove Fresno 0.004% 0.0035607%
City Parlier Fresno 0.008% 0.0069755%
City Reedley Fresno 0.012% 0.0098804%
City Sanger Fresno 0.018% 0.0146135%
City Selma Fresno 0.015% 0.0127537%
County Glenn County Glenn 0.107% 0.131% 0.1116978%
County Humboldt County Humboldt 1.030% 1.260% 1.0703185% DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 148
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Arcata Humboldt 0.054% 0.0447660%
City Eureka Humboldt 0.117% 0.143% 0.1216284%
City Fortuna Humboldt 0.032% 0.0266837%
County Imperial County Imperial 0.258% 0.315% 0.2679006% City Brawley Imperial 0.011% 0.0087986%
City Calexico Imperial 0.019% 0.0152799%
City El Centro Imperial 0.158% 0.1302522%
City Imperial Imperial 0.006% 0.0048791%
County Inyo County Inyo 0.073% 0.089% 0.0754413%
County Kern County Kern 2.517% 3.079% 2.6159145%
City Arvin Kern 0.006% 0.0046425%
City Bakersfield Kern 0.212% 0.1747198%
City California City Kern 0.009% 0.0070820%
City Delano Kern 0.030% 0.0249316%
City McFarland Kern 0.003% 0.0025644%
City Ridgecrest Kern 0.015% 0.0120938%
City Shafter Kern 0.013% 0.0103417%
City Tehachapi Kern 0.009% 0.0073580%
City Wasco Kern 0.008% 0.0069861%
County Kings County Kings 0.293% 0.2413469%
City Avenal Kings 0.007% 0.0056335%
City Corcoran Kings 0.013% 0.0107032%
City Hanford Kings 0.027% 0.0226038%
City Lemoore Kings 0.016% 0.0131900%
County Lake County Lake 0.795% 0.6545389%
City Clearlake Lake 0.041% 0.050% 0.0426253%
City Lakeport Lake 0.021% 0.026% 0.0222964%
County Lassen County Lassen 0.319% 0.391% 0.3320610%
City Susanville Lassen 0.027% 0.0219295%
County Los Angeles County Los Angeles 13.896% 16.999% 14.4437559% DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 149
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Agoura Hills Los Angeles 0.005% 0.0040024%
City Alhambra Los Angeles 0.042% 0.0343309%
City Arcadia Los Angeles 0.033% 0.0267718%
City Artesia Los Angeles 0.001% 0.0005100%
City Azusa Los Angeles 0.026% 0.0210857%
City Baldwin Park Los Angeles 0.027% 0.0218520%
City Bell Los Angeles 0.008% 0.0068783%
City Bellflower Los Angeles 0.002% 0.0014485%
City Bell Gardens Los Angeles 0.014% 0.0114301%
City Beverly Hills Los Angeles 0.065% 0.0534897%
City Burbank Los Angeles 0.100% 0.0823132%
City Calabasas Los Angeles 0.006% 0.0048948%
City Carson Los Angeles 0.019% 0.0159805%
City Cerritos Los Angeles 0.005% 0.0039682%
City Claremont Los Angeles 0.010% 0.0082584%
City Commerce Los Angeles 0.000% 0.0002971%
City Compton Los Angeles 0.044% 0.0361882%
City Covina Los Angeles 0.028% 0.0229127%
City Cudahy Los Angeles 0.001% 0.0006020%
City Culver City Los Angeles 0.055% 0.0449894%
City Diamond Bar Los Angeles 0.001% 0.0006993%
City Downey Los Angeles 0.052% 0.0429994%
City Duarte Los Angeles 0.003% 0.0027261%
City El Monte Los Angeles 0.031% 0.038% 0.0318985%
City El Segundo Los Angeles 0.033% 0.0268020%
City Gardena Los Angeles 0.034% 0.0278088%
City Glendale Los Angeles 0.166% 0.1366586%
City Glendora Los Angeles 0.016% 0.0134411%
City Hawaiian Gardens Los Angeles 0.005% 0.0040549%
City Hawthorne Los Angeles 0.050% 0.0407833%
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 150
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Hermosa Beach Los Angeles 0.018% 0.0145307%
City Huntington Park Los Angeles 0.023% 0.0190667%
City Inglewood Los Angeles 0.059% 0.0489195%
City La Cañada Flintridge Los Angeles 0.003% 0.0025565% City Lakewood Los Angeles 0.005% 0.0039971%
City La Mirada Los Angeles 0.010% 0.0081572%
City Lancaster Los Angeles 0.045% 0.0369689%
City La Puente Los Angeles 0.002% 0.0012999%
City La Verne Los Angeles 0.024% 0.0194190%
City Lawndale Los Angeles 0.002% 0.0017731%
City Lomita Los Angeles 0.004% 0.0031940%
City Long Beach Los Angeles 0.439% 0.3614151%
City Los Angeles Los Angeles 2.715% 3.321% 2.8218811%
City Lynwood Los Angeles 0.016% 0.0134345%
City Malibu Los Angeles 0.002% 0.0019269%
City Manhattan Beach Los Angeles 0.032% 0.0260686%
City Maywood Los Angeles 0.004% 0.0035528%
City Monrovia Los Angeles 0.031% 0.0254455%
City Montebello Los Angeles 0.030% 0.0250670%
City Monterey Park Los Angeles 0.031% 0.0256677%
City Norwalk Los Angeles 0.031% 0.0258228%
City Palmdale Los Angeles 0.046% 0.0375827%
City Palos Verdes Estates Los Angeles 0.006% 0.0053102% City Paramount Los Angeles 0.011% 0.0091483%
City Pasadena Los Angeles 0.146% 0.1200524%
City Pico Rivera Los Angeles 0.022% 0.0183333%
City Pomona Los Angeles 0.111% 0.0911933%
City Rancho Palos Verdes Los Angeles 0.002% 0.0012645%
City Redondo Beach Los Angeles 0.062% 0.0506992%
City Rosemead Los Angeles 0.003% 0.0028260%
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 151
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City San Dimas Los Angeles 0.003% 0.0022016%
City San Fernando Los Angeles 0.013% 0.0104837%
City San Gabriel Los Angeles 0.018% 0.0147726%
City San Marino Los Angeles 0.009% 0.0073791%
City Santa Clarita Los Angeles 0.022% 0.0178167%
City Santa Fe Springs Los Angeles 0.031% 0.0257531%
City Santa Monica Los Angeles 0.158% 0.1298513%
City Sierra Madre Los Angeles 0.006% 0.0048646%
City Signal Hill Los Angeles 0.010% 0.0084884%
City South El Monte Los Angeles 0.005% 0.0039603%
City South Gate Los Angeles 0.020% 0.0166272%
City South Pasadena Los Angeles 0.012% 0.0095334%
City Temple City Los Angeles 0.005% 0.0039498%
City Torrance Los Angeles 0.112% 0.0919820%
City Walnut Los Angeles 0.006% 0.0047305%
City West Covina Los Angeles 0.049% 0.0404521%
City West Hollywood Los Angeles 0.013% 0.0108517%
City Whittier Los Angeles 0.032% 0.0260581%
County Madera County Madera 0.349% 0.427% 0.3630669%
City Chowchilla Madera 0.012% 0.0097332%
City Madera Madera 0.039% 0.0318441%
County Marin County Marin 0.564% 0.690% 0.5861325%
City Larkspur Marin 0.015% 0.0124697%
City Mill Valley Marin 0.020% 0.0168401%
City Novato Marin 0.028% 0.0229824%
City San Anselmo Marin 0.009% 0.0078062%
City San Rafael Marin 0.089% 0.0729823%
County Mariposa County Mariposa 0.084% 0.103% 0.0876131% County Mendocino County Mendocino 0.439% 0.536% 0.4558394% City Ukiah Mendocino 0.039% 0.0317153%
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 152
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
County Merced County Merced 0.551% 0.674% 0.5724262%
City Atwater Merced 0.024% 0.0195846%
City Livingston Merced 0.006% 0.0045873%
City Los Banos Merced 0.020% 0.0165142%
City Merced Merced 0.061% 0.0500762%
County Modoc County Modoc 0.065% 0.080% 0.0678250%
County Mono County Mono 0.023% 0.029% 0.0242606%
County Monterey County Monterey 0.908% 1.111% 0.9437083% City Greenfield Monterey 0.006% 0.0050552%
City King City Monterey 0.005% 0.0037355%
City Marina Monterey 0.017% 0.0144098%
City Monterey Monterey 0.041% 0.0336540%
City Pacific Grove Monterey 0.009% 0.0074842%
City Salinas Monterey 0.094% 0.0776576%
City Seaside Monterey 0.023% 0.0191772%
City Soledad Monterey 0.007% 0.0060870%
County Napa County Napa 0.288% 0.352% 0.2994325%
City American Canyon Napa 0.017% 0.0136869%
City Napa Napa 0.078% 0.0642783%
County Nevada County Nevada 0.441% 0.539% 0.4579827%
City Grass Valley Nevada 0.024% 0.0197805%
City Truckee Nevada 0.003% 0.0023843%
County Orange County Orange 4.364% 5.339% 4.5363576%
City Aliso Viejo Orange 0.014% 0.0113841%
City Anaheim Orange 0.554% 0.678% 0.5759282%
City Brea Orange 0.086% 0.0708897%
City Buena Park Orange 0.087% 0.0714352%
City Costa Mesa Orange 0.124% 0.152% 0.1288366%
City Cypress Orange 0.033% 0.0271937%
City Dana Point Orange 0.001% 0.0005560%
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 153
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Fountain Valley Orange 0.055% 0.0455980%
City Fullerton Orange 0.137% 0.168% 0.1425744%
City Garden Grove Orange 0.213% 0.1752482%
City Huntington Beach Orange 0.247% 0.302% 0.2568420%
City Irvine Orange 0.139% 0.170% 0.1442350%
City Laguna Beach Orange 0.047% 0.058% 0.0493043%
City Laguna Hills Orange 0.014% 0.0115457%
City Laguna Niguel Orange 0.001% 0.0007071%
City Laguna Woods Orange 0.001% 0.0006546%
City La Habra Orange 0.060% 0.073% 0.0621049%
City Lake Forest Orange 0.012% 0.0101249%
City La Palma Orange 0.012% 0.0095439%
City Los Alamitos Orange 0.008% 0.0069190%
City Mission Viejo Orange 0.014% 0.0117560%
City Newport Beach Orange 0.179% 0.1470134%
City Orange Orange 0.150% 0.1231320%
City Placentia Orange 0.029% 0.035% 0.0298912%
City Rancho Santa Margarita Orange 0.001% 0.0006296%
City San Clemente Orange 0.008% 0.010% 0.0086083%
City San Juan Capistrano Orange 0.008% 0.0065510%
City Santa Ana Orange 0.502% 0.614% 0.5213866%
City Seal Beach Orange 0.020% 0.0165891%
City Stanton Orange 0.035% 0.0291955%
City Tustin Orange 0.073% 0.0600341%
City Westminster Orange 0.104% 0.127% 0.1082721%
City Yorba Linda Orange 0.044% 0.0362223%
County Placer County Placer 1.045% 1.278% 1.0861002%
City Auburn Placer 0.017% 0.0141114%
City Lincoln Placer 0.031% 0.0255599%
City Rocklin Placer 0.076% 0.0625485%
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 154
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Roseville Placer 0.196% 0.1616559%
County Plumas County Plumas 0.205% 0.251% 0.2128729%
County Riverside County Riverside 4.534% 5.547% 4.7128296% City Banning Riverside 0.017% 0.0143848%
City Beaumont Riverside 0.021% 0.0171135%
City Blythe Riverside 0.012% 0.0096714%
City Canyon Lake Riverside 0.000% 0.0001761%
City Cathedral City Riverside 0.067% 0.0553614%
City Coachella Riverside 0.021% 0.0173054%
City Corona Riverside 0.147% 0.1207083%
City Desert Hot Springs Riverside 0.024% 0.0200433%
City Eastvale Riverside 0.000% 0.0002747%
City Hemet Riverside 0.051% 0.0421792%
City Indio Riverside 0.056% 0.0457794%
City Jurupa Valley Riverside 0.001% 0.0008991%
City Lake Elsinore Riverside 0.021% 0.0172949%
City La Quinta Riverside 0.063% 0.0516732%
City Menifee Riverside 0.032% 0.0260909%
City Moreno Valley Riverside 0.137% 0.1130348%
City Murrieta Riverside 0.048% 0.059% 0.0497423%
City Norco Riverside 0.016% 0.0134542%
City Palm Desert Riverside 0.083% 0.0682465%
City Palm Springs Riverside 0.076% 0.0629862%
City Perris Riverside 0.009% 0.0076774%
City Rancho Mirage Riverside 0.052% 0.0431098%
City Riverside Riverside 0.268% 0.2206279%
City San Jacinto Riverside 0.010% 0.0085936%
City Temecula Riverside 0.022% 0.0180086%
City Wildomar Riverside 0.008% 0.0062500%
County Sacramento County Sacramento 3.797% 4.645% 3.9465887% DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 155
APPENDIX 1
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Citrus Heights Sacramento 0.057% 0.0465312%
City Elk Grove Sacramento 0.130% 0.1066994%
City Folsom Sacramento 0.108% 0.0890850%
City Galt Sacramento 0.017% 0.0143704%
City Rancho Cordova Sacramento 0.008% 0.0067679%
City Sacramento Sacramento 0.721% 0.882% 0.7496530%
County San Benito County San Benito 0.106% 0.130% 0.1101417% City Hollister San Benito 0.027% 0.0225355%
County San Bernardino County San Bernardino 3.259% 3.987% 3.3878124% City Adelanto San Bernardino 0.008% 0.0066640%
City Apple Valley San Bernardino 0.025% 0.0207360%
City Barstow San Bernardino 0.015% 0.0122056%
City Chino San Bernardino 0.064% 0.0525893%
City Chino Hills San Bernardino 0.001% 0.0006388%
City Colton San Bernardino 0.031% 0.0253443%
City Fontana San Bernardino 0.112% 0.0920543%
City Grand Terrace San Bernardino 0.006% 0.0051051%
City Hesperia San Bernardino 0.035% 0.0291522%
City Highland San Bernardino 0.004% 0.0029061%
City Loma Linda San Bernardino 0.009% 0.0071188%
City Montclair San Bernardino 0.039% 0.0322108%
City Ontario San Bernardino 0.179% 0.1472934%
City Rancho Cucamonga San Bernardino 0.084% 0.0689431%
City Redlands San Bernardino 0.057% 0.0469150%
City Rialto San Bernardino 0.073% 0.0603206%
City San Bernardino San Bernardino 0.178% 0.1461880%
City Twentynine Palms San Bernardino 0.002% 0.0012605%
City Upland San Bernardino 0.052% 0.0424460%
City Victorville San Bernardino 0.033% 0.0269400%
City Yucaipa San Bernardino 0.016% 0.0128772%
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 156
APPENDIX 1
11 of 15
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Yucca Valley San Bernardino 0.003% 0.0021228%
County San Diego County San Diego 5.706% 6.980% 5.9309748% City Carlsbad San Diego 0.128% 0.1050485%
City Chula Vista San Diego 0.189% 0.231% 0.1961456%
City Coronado San Diego 0.044% 0.0359095%
City El Cajon San Diego 0.113% 0.0933582%
City Encinitas San Diego 0.061% 0.074% 0.0630289%
City Escondido San Diego 0.145% 0.1192204%
City Imperial Beach San Diego 0.014% 0.0118283%
City La Mesa San Diego 0.055% 0.068% 0.0575593%
City Lemon Grove San Diego 0.022% 0.0183911%
City National City San Diego 0.080% 0.0656808%
City Oceanside San Diego 0.213% 0.1753428%
City Poway San Diego 0.062% 0.0511040%
City San Diego San Diego 1.975% 2.416% 2.0531169%
City San Marcos San Diego 0.089% 0.0733897%
City Santee San Diego 0.033% 0.0268401%
City Solana Beach San Diego 0.017% 0.0138564%
City Vista San Diego 0.052% 0.0425144%
Consolidated San Francisco San Francisco 3.026% 3.702% 3.1457169% County San Joaquin County San Joaquin 1.680% 2.055% 1.7460399% City Lathrop San Joaquin 0.009% 0.0075394%
City Lodi San Joaquin 0.053% 0.0439484%
City Manteca San Joaquin 0.054% 0.0443454%
City Ripon San Joaquin 0.013% 0.0104219%
City Stockton San Joaquin 0.313% 0.383% 0.3256176%
City Tracy San Joaquin 0.084% 0.0692047%
County San Luis Obispo County San Luis Obispo 0.816% 0.999% 0.8484126% City Arroyo Grande San Luis Obispo 0.024% 0.0199053%
City Atascadero San Luis Obispo 0.029% 0.0240680%
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 157
APPENDIX 1
12 of 15
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City El Paso de Robles (Paso Robles) San Luis Obispo 0.043% 0.0353456% City Grover Beach San Luis Obispo 0.017% 0.0137881%
City Morro Bay San Luis Obispo 0.020% 0.0160922%
City San Luis Obispo San Luis Obispo 0.077% 0.0637841%
County San Mateo County San Mateo 1.074% 1.313% 1.1159599% City Belmont San Mateo 0.021% 0.0169860%
City Burlingame San Mateo 0.019% 0.0152537%
City Daly City San Mateo 0.044% 0.0363880%
City East Palo Alto San Mateo 0.013% 0.0103982%
City Foster City San Mateo 0.020% 0.0166101%
City Half Moon Bay San Mateo 0.004% 0.0031638%
City Hillsborough San Mateo 0.013% 0.0110029%
City Menlo Park San Mateo 0.015% 0.0126209%
City Millbrae San Mateo 0.013% 0.0105836%
City Pacifica San Mateo 0.016% 0.0130625%
City Redwood City San Mateo 0.056% 0.0463511%
City San Bruno San Mateo 0.021% 0.0172161%
City San Carlos San Mateo 0.013% 0.0108885%
City San Mateo San Mateo 0.052% 0.0425841%
City South San Francisco San Mateo 0.043% 0.0353943%
County Santa Barbara County Santa Barbara 1.132% 1.385% 1.1768968% City Carpinteria Santa Barbara 0.001% 0.0008938%
City Goleta Santa Barbara 0.004% 0.0028969%
City Lompoc Santa Barbara 0.047% 0.0389379%
City Santa Barbara Santa Barbara 0.122% 0.1004559%
City Santa Maria Santa Barbara 0.058% 0.0479179%
County Santa Clara County Santa Clara 2.404% 2.941% 2.4987553% City Campbell Santa Clara 0.014% 0.0112566%
City Cupertino Santa Clara 0.008% 0.0066824%
City Gilroy Santa Clara 0.025% 0.0202891%
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 158
APPENDIX 1
13 of 15
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Los Altos Santa Clara 0.013% 0.0103338%
City Los Gatos Santa Clara 0.013% 0.0103220%
City Milpitas Santa Clara 0.036% 0.0298120%
City Morgan Hill Santa Clara 0.015% 0.0124619%
City Mountain View Santa Clara 0.041% 0.0334608%
City Palo Alto Santa Clara 0.039% 0.0323080%
City San Jose Santa Clara 0.294% 0.360% 0.3054960%
City Santa Clara Santa Clara 0.067% 0.0549723%
City Saratoga Santa Clara 0.004% 0.0034161%
City Sunnyvale Santa Clara 0.053% 0.0434069%
County Santa Cruz County Santa Cruz 0.783% 0.957% 0.8135396% City Capitola Santa Cruz 0.020% 0.0168191%
City Santa Cruz Santa Cruz 0.143% 0.1180348%
City Scotts Valley Santa Cruz 0.015% 0.0126525%
City Watsonville Santa Cruz 0.063% 0.0520136%
County Shasta County Shasta 1.095% 1.339% 1.1380191%
City Anderson Shasta 0.024% 0.0198896%
City Redding Shasta 0.284% 0.2334841%
City Shasta Lake Shasta 0.004% 0.0031993%
County Siskiyou County Siskiyou 0.228% 0.279% 0.2373393% County Solano County Solano 0.760% 0.6260795%
City Benicia Solano 0.031% 0.0253903%
City Dixon Solano 0.016% 0.0130849%
City Fairfield Solano 0.109% 0.0897317%
City Suisun City Solano 0.021% 0.0176183%
City Vacaville Solano 0.119% 0.0976497%
City Vallejo Solano 0.167% 0.1373644%
County Sonoma County Sonoma 1.218% 1.490% 1.2661290%
City Healdsburg Sonoma 0.032% 0.0266929%
City Petaluma Sonoma 0.081% 0.0667507%
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 159
APPENDIX 1
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Rohnert Park Sonoma 0.041% 0.0340759%
City Santa Rosa Sonoma 0.184% 0.1519070%
City Sonoma Sonoma 0.022% 0.0183438%
City Windsor Sonoma 0.016% 0.0129298%
County Stanislaus County Stanislaus 1.722% 1.4182273%
City Ceres Stanislaus 0.041% 0.0340260%
City Modesto Stanislaus 0.217% 0.1788759%
City Newman Stanislaus 0.006% 0.0046964%
City Oakdale Stanislaus 0.018% 0.0145531%
City Patterson Stanislaus 0.015% 0.0126590%
City Riverbank Stanislaus 0.010% 0.0085699%
City Turlock Stanislaus 0.065% 0.0531966%
County Sutter County Sutter 0.306% 0.374% 0.3179548%
City Yuba City Sutter 0.074% 0.0606242%
County Tehama County Tehama 0.213% 0.261% 0.2216654%
City Red Bluff Tehama 0.014% 0.0117771%
County Trinity County Trinity 0.082% 0.101% 0.0855476%
County Tulare County Tulare 0.809% 0.990% 0.8410949%
City Dinuba Tulare 0.014% 0.0116929%
City Exeter Tulare 0.004% 0.0032479%
City Farmersville Tulare 0.003% 0.0027879%
City Lindsay Tulare 0.007% 0.0057111%
City Porterville Tulare 0.021% 0.0171845%
City Tulare Tulare 0.037% 0.0302273%
City Visalia Tulare 0.066% 0.0545872%
County Tuolumne County Tuolumne 0.486% 0.594% 0.5047621% County Ventura County Ventura 2.192% 2.681% 2.2781201%
City Camarillo Ventura 0.002% 0.0012815%
City Fillmore Ventura 0.002% 0.0020294%
City Moorpark Ventura 0.008% 0.0067337%
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 160
APPENDIX 1
15 of 15
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Oxnard Ventura 0.156% 0.190% 0.1617338%
City Port Hueneme Ventura 0.021% 0.0174145%
City San Buenaventura (Ventura) Ventura 0.085% 0.0702181% City Santa Paula Ventura 0.014% 0.0119072%
City Simi Valley Ventura 0.065% 0.0533043%
City Thousand Oaks Ventura 0.022% 0.0179902%
County Yolo County Yolo 0.357% 0.437% 0.3713319%
City Davis Yolo 0.055% 0.0451747%
City West Sacramento Yolo 0.066% 0.0544321%
City Woodland Yolo 0.058% 0.0477904%
County Yuba County Yuba 0.214% 0.262% 0.2225679%
City Marysville Yuba 0.014% 0.0112079%
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 161
1 APPENDIX 2
Cost Reimbursement Procedure

1. Additional defined terms:
a) Costs means the reasonable amounts paid for the attorney and other City Attorney and County Counsel staff time for individuals employed by a Plaintiff Subdivision at the contractual rate, inclusive of benefits and overhead, together with amounts paid for court reporters, experts, copying, electronic research, travel, vendors, and the like, which were not previously reimbursed and which were paid or incurred (i) prior to December 31, 2022 in litigation against any Opioid Defendant and/or (ii) in negotiating and drafting any CA Allocation Agreement(s) concerning a settlement with any Opioid Defendant(s).

Costs does not include attorneys’ fees, costs, or expenses incurred by private contingency fee counsel. No part of the CA Abatement Accounts Fund will be used to reimburse Costs.
b) First Claims Date means October 1, 2023 or when all applications for reimbursement of Costs, in whole or in part, from funds available under Section XIV and Exhibit R of the Teva Settlement Agreement, Section XIII and Exhibit R of the Allergan Settlement Agreement, Section X and Exhibit R of the Distributor Settlement Agreement, Section XI and Exhibit R of the Janssen Settlement Agreement, Section X and Exhibit R of the CVS Settlement Agreement, Section IX and Exhibit R of the Walgreens Settlement Agreement, or Section IX and Exhibit R of the Walmart Settlement Agreement, have been finally determined under the provisions of those agreements, whichever comes first. c) Special Master means a retired judicial officer or former public lawyer, not presently employed or retained by a Plaintiff Subdivision, who will aggregate, review, and determine the reasonable Costs to be awarded to each Plaintiff Subdivision that submits a claim for reimbursement of Costs. The Special Master will be selected by a majority vote of the votes cast by Plaintiff Subdivisions, with each such subdivision having one vote. d) Plaintiff Subdivision Committee means the committee of Plaintiff Subdivisions that will review and approve the invoices submitted by the Special Master reflecting his or her reasonable time and expenses.

DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 162
2 i. If a Plaintiff Subdivision is eligible to seek reimbursement of Costs, in whole or in part, from funds available under Section XIV and Exhibit R of the Teva Settlement Agreement, Section XIII and Exhibit R of the Allergan Settlement Agreement, Section X and Exhibit R of the CVS Settlement Agreement, Section IX and Exhibit R of the Walgreens Settlement Agreement, Section IX and Exhibit R of the Walmart Settlement Agreement, Section X or Exhibit R of the Distributor Settlement Agreement, or Section XI or Exhibit R of the Janssen Settlement Agreement, it must first make a timely application for reimbursement from such funds. To allow sufficient time for determination of those applications, no claim for Costs to the CA Subdivision Fund under this Agreement may be made before the First Claims Date. ii. A Plaintiff Subdivision that wishes to be reimbursed from the CA Subdivision Fund must submit a claim to the Special Master no later than forty-five (45) days after the First Claims Date. The Special Master will then compile and redistribute the aggregated claim totals for each Plaintiff Subdivision via email to representatives of all the Plaintiff Subdivisions. A claim for attorney and staff time must list, for each attorney or staff member included in the claim, the following information: name, title, total hours claimed, hourly rate (including, if sought, benefits and share of overhead), and narrative summarizing the general nature of the work performed by the attorney or staff member. For reimbursement of “hard” costs, the subdivision may aggregate across a category (e.g., total for travel costs). It is the intention of the Plaintiff Subdivisions that submission of documents related to reimbursement of Costs does not waive any attorney-client privilege or exemptions to the California Public Records Act.
iii. The Special Master may request, at his or her sole option, additional documents or details to assist in the final award of Costs.
iv. The Special Master will review claims for reasonableness and will notify each Plaintiff Subdivision of the final determination of its claim, and will provide a list of all final awards to all Plaintiff Subdivisions by email or, upon request, via First Class U.S. Mail. Any Plaintiff Subdivision may ask the Special Master to reconsider any final award within twenty-one (21) days. The Special Master will make a final determination on any such reconsideration request within thirty (30) days of receipt. v. Any decision of the Special Master is final and binding, and will be considered under the California Arbitration Act, Code of Civil Procedure section 1280 et seq. as a final arbitration award. Nothing in this agreement is intended to expand the scope of judicial review of the final award for errors of fact or law, and the Parties agree that they may only seek to vacate the award if clear and convincing evidence demonstrates one of the factors set forth in Code of Civil Procedure, section 1286.2, subdivision (a). Plaintiff Subdivisions will have fourteen (14) days after all final awards are made, together with any final determination of a request for reconsideration, to seek review in the Superior Court of California, pursuant to Code of Civil Procedure, section 1285, where the State has filed its Consent Judgment.

DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 163
3 vi. The Special Master will prepare a report of Costs that includes his or her fees and expenses at least ninety (90) days before the Payment Date for each Annual Payment. The Special Master’s preparation of a report of Costs does not discharge a Plaintiff Subdivision’s reporting requirement under Section VIII.C of the Allergan Settlement Agreement.
vii. A member of the Plaintiff Subdivision Committee, which is a CA Participating Subdivision, will submit to the Settlement Fund Administrator and Allergan a report of the fees and expenses incurred by the Special Master pursuant to Section VIII.C of the Allergan Settlement Agreement.
c) Claims Priority and Limitation.
i. The Special Master will submit invoices for compensation of reasonable fees and expenses to the Plaintiff Subdivision Committee no later than ninety (90) days prior to the Payment Date for each Annual Payment. The Plaintiff Subdivision Committee will promptly review and, if reasonable, approve the Special Master’s invoice for compensation. The Plaintiff Subdivision Committee will submit approved invoices to the Settlement Fund Administrator for payment. The Special Master’s approved invoices have priority and will be paid first from the CA Subdivision Fund before any award of Costs, subject to the limitation in Section 2.c.v below. ii. Final Awards of Costs that do not exceed seventy-five thousand dollars ($75,000.00) will be paid next in priority after the Special Master’s approved invoices.
iii. Final Awards of Costs in excess of seventy-five thousand dollars ($75,000.00) will be paid proportionally from the funds remaining in that year’s Annual Payment. iv. Any claim for Costs that is not paid in full will be allocated against the next year’s distribution from the CA Subdivision Fund, until all approved claims for Costs are paid in full.
v. In no event will more than 50% of the total CA Subdivision Fund received in any year be used to pay Costs or the Special Master’s approved invoices. vi. In no event shall more than $28 million of the total CA Subdivision Funds paid pursuant to the Teva Settlement Agreement, Allergan Settlement Agreement, Distributor Settlement Agreement, CVS Settlement Agreement, Janssen Settlement Agreement, Walgreens Settlement Agreement, and the Walmart Settlement Agreement be used to pay Costs.
d) Collateral Source Payments and Third-Party Settlement. i. In the event a Plaintiff Subdivision is awarded compensation, in whole or in part, by any source of funds created as a result of litigation against an Opioid Defendant for its reasonable Costs, it will reduce its claim for Costs from the CA Subdivision Fund by that amount. If a Plaintiff Subdivision has already received a final award of Costs from the CA Subdivision Fund, it will repay the fund up to the prior award DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 164
4 of Costs via a payment to the Settlement Fund Administrator or notify the Settlement Fund Administrator that its allocation from the next and subsequent Annual Payments should be reduced accordingly. If the Plaintiff Subdivision is repaying any prior award of Costs, that repayment will occur as soon as is feasible after the Plaintiff Subdivision’s receipt of Cost funds from the collateral source, but no more than 90 days after its receipt from the collateral source. The Settlement Fund Administrator will add any repaid Costs to the CA Subdivision Fund. Any Plaintiff Subdivision that has submitted for reimbursement to any national fund and has not received a final determination by the First Claims Date may request that the settlement administrator withhold some or all of its payment from the CA Subdivision Fund in order to avoid repayment.
ii. In the event a Plaintiff Subdivision reaches a monetary settlement or compromise against any Opioid Defendant outside of the National Opioid Settlement, the monetary portion of such settlement, net of fees paid to outside contingency fee counsel and of funds earmarked strictly for abatement, will be credited against its Costs and the subdivision will be ineligible to recover those credited Costs from the CA Subdivision Fund. Plaintiff Subdivisions negotiating monetary settlements or compromises against any Opioid Defendant outside of the National Opioid Settlement will negotiate for funds to repay any Costs it previously received from the CA Subdivision Fund or for Costs it otherwise might be eligible to claim from the CA Subdivision Fund. If such a settlement is paid after all final approved claims for Costs by all Plaintiff Subdivisions are satisfied in full, the settling subdivision will reimburse the CA Subdivision Fund in that amount by making payment to the Settlement Fund Administrator to add to the CA Subdivision Fund in a manner consistent with the repayments described in section 2.d.i above.

DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 165
1 APPENDIX 3

CALIFORNIA-SUBDIVISION BACKSTOP AGREEMENT
On August 6, 2021, Judge Polster of the US District Court for the Northern District of Ohio issued an Order (the Order), docket number 3814, in In Re National Prescription Opiate Litigation, MDL 2804, addressing contingent attorney fee contracts between political subdivisions eligible to participate in the Allergan Settlement and their counsel.

In light of the Order, and at the request of [SUBDIVISION], the [SUBDIVISION], its counsel [COUNSEL], and the California Attorney General, on behalf of the State of California, are entering into this California-Subdivision Backstop Agreement (Backstop Agreement). [SUBDIVISION] and [COUNSEL] intend this Backstop Agreement to constitute a State BackStop Agreement as that term is used in the Order and in Exhibit R (Agreement on Attorneys’ Fees, Costs, and Expenses) of the Allergan Settlement Agreement.

Pursuant to this Backstop Agreement, [SUBDIVISION] may, subject to the limitations of the Allergan Settlement Agreement and CA Allergan Allocation Agreement, as well as any other limitations imposed by law, use funds that it receives from the Allergan Settlement CA Subdivision Fund to pay a contingent fee to [COUNSEL]. Any such payment from [SUBDIVISION] to [COUNSEL], together with any contingency fees that [COUNSEL] may receive from the national Attorney Fee Fund, will not exceed a total contingency fee of [PERCENTAGE NOT TO EXCEED 15%] of the total gross recovery of [SUBDIVISION] from the Allergan Settlement.
[COUNSEL] certify that they first sought fees and costs from the Attorney Fee Fund created under the Allergan Settlement Agreement before seeking or accepting payment under this backstop agreement. [COUNSEL] further certify that they are not seeking and will not accept payment under this backstop agreement of any litigation fees or costs that have been reimbursed through prior settlements or judgments.

The Attorney General is executing this agreement solely because the definition of “State BackStop Agreement” in Exhibit R of the Allergan Settlement Agreement requires such agreements to be between “a Settling State” and private counsel for a participating subdivision. Neither the California Attorney General nor the State of California have any obligations under this Backstop Agreement, and this Backstop Agreement does not require the payment of any state funds to [SUBDIVISION], [COUNSEL], or any other party.
[DATE] [SUBDIVISION SIGNATURE BLOCK]
[DATE] [COUNSEL SIGNATURE BLOCK]
[DATE] [ATTORNEY GENERAL SIGNATURE BLOCK]
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 166
1 Proposed California State-Subdivision Agreement
Regarding Distribution and Use of
Settlement Funds – Teva Settlement

1. Introduction
Pursuant to the Teva Settlement Agreement, dated as of November 22, 2022, and any revision thereto (the “Teva Settlement Agreement”), including Section VIII and Exhibit O, the State of California proposes this agreement (the “CA Teva Allocation Agreement”) to govern the allocation, distribution, and use of Settlement Fund payments made to California pursuant to Sections VI, VII, and VIII of the Teva Settlement Agreement. For the avoidance of doubt, this agreement does not apply to payments made pursuant to Sections IX, XIII, or XIV of the Teva Settlement Agreement.

Pursuant to Exhibit O, Paragraph 4, of the Teva Settlement Agreement, acceptance of this CA Teva Allocation Agreement is a requirement to be an Initial Participating Subdivision.1 Further, pursuant to Sections X.B and X.C of the Teva Settlement Agreement and Sections IX.B and IX.C of the Allergan Settlement Agreement, eligible Subdivisions must participate in both the Teva Settlement Agreement and Allergan Settlement Agreement, or neither.

2. Definitions
a) CA Participating Subdivision means a Participating Subdivision that is also (a) a Plaintiff Subdivision and/or (b) a Subdivision with a population equal to or greater than 10,000. For the avoidance of doubt, eligible CA Participating Subdivisions are those California subdivisions listed in Exhibit C (excluding Litigating Special Districts) and/or Exhibit I to the Teva Settlement Agreement. b) Allergan Settlement Agreement means the Allergan Settlement Agreement dated November 22, 2022, and any revision thereto.
c) CVS Settlement Agreement means the CVS Settlement Agreement dated December 9, 2022, and any revision thereto as well as any modification thereto entered into by the State of California and CVS.
d) Distributor Settlement Agreement means the Distributor Settlement Agreement dated July 21, 2021, and any revision thereto.
e) Janssen Settlement Agreement means the Janssen Settlement Agreement dated July 21, 2021, and any revision thereto.
f) Walgreens Settlement Agreement means the Walgreens Settlement Agreement dated December 9, 2022, and any revision thereto.
1 A parallel but separate agreement (the “CA Allergan Allocation Agreement”) will govern the allocation, distribution, and use of settlement fund payments under the Allergan Settlement Agreement.

DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 167
2 g) Walmart Settlement Agreement means the Walmart Settlement Agreement dated November 14, 2022, and any revision thereto.
h) CA Litigating Special District means a Litigating Special District located in California. CA Litigating Special Districts include Downey Unified School District, Elk Grove Unified School District, Kern High School District, Montezuma Fire Protection District (located in Stockton, California), Santa Barbara San Luis Obispo Regional Health Authority, Inland Empire Health Plan, Health Plan of San Joaquin, San Leandro Unified School District, Pleasant Valley School District Board, and LA Care Health Plan.
i) Plaintiff Subdivision means a Subdivision located in California, other than a CA Litigating Special District, that filed a lawsuit, on behalf of the Subdivision and/or through an official of the Subdivision on behalf of the People of the State of California, against one or more Opioid Defendants prior to October 1, 2020. j) Opioid Defendant means any defendant (including but not limited to Teva Pharmaceutical Industries Ltd., Allergan Finance, LLC, Allergan Limited, CVS Health Corporation, CVS Pharmacy, Inc., Walgreen Co., Walmart Inc., Johnson & Johnson, Janssen Pharmaceuticals, Inc., Purdue Pharma L.P., Cardinal Health, Inc., AmerisourceBergen Corporation, and McKesson Corporation) named in a lawsuit seeking damages, abatement, or other remedies related to or caused by the opioid public health crisis in any lawsuit brought by any state or local government on or before October 1, 2020.

3. General Terms
This agreement is subject to the requirements of the Teva Settlement Agreement, as well as applicable law, and the Teva Settlement Agreement governs over any inconsistent provision of this CA Teva Allocation Agreement. Terms used in this CA Teva Allocation Agreement have the same meaning as in the Teva Settlement Agreement unless otherwise defined herein.

Pursuant to Section VIII(E)(1) of the Teva Settlement Agreement, (a) all Settlement Fund payments will be used for Opioid Remediation, except as allowed by Section VIII(C) of the Teva Settlement Agreement; and (b) at least seventy percent (70%) of Settlement Fund payment amounts will be used solely for future Opioid Remediation.

4. State Allocation
The Settlement Fund payments to California,2pursuant to the Teva Settlement Agreement, shall be allocated as follows: 15% to the State Fund; 70% to the Abatement Accounts Fund; and 15% to the Subdivision Fund. For the avoidance of doubt, all funds allocated to California from the 2 For purposes of clarity, use of the term “California” refers to the geographic territory of California and the state and its local governments therein. The term “State” or “State of California” refers to the State of California as a governmental unit.

DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 168
3 Settlement Fund shall be combined pursuant to this CA Teva Allocation Agreement, and 15% of that total shall be allocated to the State of California (the “State of California Allocation”), 70% to the California Abatement Accounts Fund (“CA Abatement Accounts Fund”), and 15% to the California Subdivision Fund (“CA Subdivision Fund”).

A. State of California Allocation
Fifteen percent of the total Settlement Fund payments will be allocated to the State and used by the State for future Opioid Remediation.

B. CA Abatement Accounts Fund
i. Allocation of CA Abatement Accounts Funds
a) Seventy percent of the total Settlement Fund payments will be allocated to the CA Abatement Accounts Fund. The funds in the CA Abatement Accounts Fund will be allocated based on the allocation model developed in connection with the proposed negotiating class in the National Prescription Opiate Litigation (MDL No. 2804), as adjusted to reflect only those cities and counties that are eligible, based on population or litigation status, to become a CA Participating Subdivision. The percentage from the CA Abatement Accounts Fund allocated to each CA Participating Subdivision is set forth in Appendix 1 in the column entitled abatement percentage (the “Local Allocation”). For the avoidance of doubt, CA Litigating Special Districts and California towns, cities, and counties with a population less than 10,000 are not eligible to receive an allocation of CA Abatement Accounts Funds.
b) A CA Participating Subdivision that is a county, or a city and county, will be allocated its Local Allocation share as of the date on which it becomes a Participating Subdivision, and will receive payments as provided in the Teva Settlement Agreement. c) A CA Participating Subdivision that is a city will be allocated its Local Allocation share as of the date on which it becomes a Participating Subdivision. The Local Allocation share for a city that is a CA Participating Subdivision will be paid to the county in which the city is located, rather than to the city, so long as: (a) the county is a CA Participating Subdivision, and (b) the city has not advised the Settlement Fund Administrator that it requests direct payment at least 60 days prior to a Payment Date. A Local Allocation share allocated to a city but paid to a county is not required to be spent exclusively for abatement activities in that city, but will become part of the county’s share of the CA Abatement Accounts Funds, which will be used in accordance with Section 4.B.ii (Use of CA Abatement Accounts Funds) and reported on in accordance with Section 4.B.iii (CA Abatement Accounts Fund Oversight).
d) A city within a county that is a CA Participating Subdivision may opt in or out of direct payment at any time, and it may also elect direct payment of only a portion of its share, with the remainder going to the county, by providing notice to the Settlement Fund Administrator at least 60 days prior to a Payment Date. For purposes of this CA Teva
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 169
4 Allocation Agreement, the Cities of Los Angeles, Oakland, San Diego, San Jose and Eureka will be deemed to have elected direct payment if they become Participating Subdivisions.
e) The State will receive the Local Allocation share of any payment to the Settlement Fund that is attributable to a county or city that is eligible to become a CA Participating Subdivision, but that has not, as of the date of that payment to the Settlement Fund, become a Participating Subdivision.
f) Funds received by a CA Participating Subdivision, and not expended or encumbered within five years of receipt and in accordance with the Teva Settlement Agreement and this CA Teva Allocation Agreement shall be transferred to the State; provided however, that CA Participating Subdivisions have seven years to expend or encumber CA Abatement Accounts Funds designated to support capital outlay projects before they must be transferred to the State. This provision shall not apply to the Cost Reimbursement Funds, which shall be controlled by Appendix 2. ii. Use of CA Abatement Accounts Funds
a) The CA Abatement Accounts Funds will be used for future Opioid Remediation in one or more of the areas described in the List of Opioid Remediation Uses, which is Exhibit E to the Teva Settlement Agreement.
b) In addition to this requirement, no less than 50% of the funds received by a CA Participating Subdivision from the Abatement Accounts Fund in each calendar year will be used for one or more of the following High Impact Abatement Activities:
(1) the provision of matching funds or operating costs for substance use disorder facilities within the Behavioral Health Continuum Infrastructure Program; (2) creating new or expanded Substance Use Disorder (“SUD”) treatment infrastructure; (3) addressing the needs of communities of color and vulnerable populations (including sheltered and unsheltered homeless populations) that are disproportionately impacted by SUD;
(4) diversion of people with SUD from the justice system into treatment, including by providing training and resources to first and early responders (sworn and non-sworn) and implementing best practices for outreach, diversion and deflection, employability, restorative justice, and harm reduction; and/or (5) interventions to prevent drug addiction in vulnerable youth. c) The California Department of Health Care Services (“DHCS”) may add to this list (but not delete from it) by designating additional High Impact Abatement Activities. DHCS will make reasonable efforts to consult with stakeholders, including the CA Participating Subdivisions, before adding additional High Impact Abatement Activities to this list.

DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 170
5 d) For the avoidance of doubt, and subject to the requirements of the Teva Settlement Agreement and applicable law, CA Participating Subdivisions may form agreements or ventures, or otherwise work in collaboration with, federal, state, local, tribal or private sector entities in pursuing Opioid Remediation activities funded from the CA Abatement Accounts Fund. Further, provided that all CA Abatement Accounts Funds are used for Opioid Remediation consistent with the Teva Settlement Agreement and this CA Teva Allocation Agreement, a county and any cities or towns within the county may agree to reallocate their respective shares of the CA Abatement Accounts Funds among themselves, provided that any direct distribution may only be to a CA Participating Subdivision and any CA Participating Subdivision must agree to their share being reallocated.
iii. CA Abatement Accounts Fund Oversight
a) Pursuant to Section 5 below, CA Participating Subdivisions receiving settlement funds must prepare and file reports annually regarding the use of those funds. DHCS may regularly review the reports prepared by CA Participating Subdivisions about the use of CA Abatement Accounts Funds for compliance with the Teva Settlement Agreement and this CA Teva Allocation Agreement.
b) If DHCS determines that a CA Participating Subdivision’s use of CA Abatement Accounts Funds is inconsistent with the Teva Settlement Agreement or this CA Teva Allocation Agreement, whether through review of reports or information from any other sources, DHCS shall send a request to meet and confer with the CA Participating Subdivision. The parties shall meet and confer in an effort to resolve the concern. c) If the parties are unable to reach a resolution, DHCS may conduct an audit of the Subdivision’s use of the CA Abatement Accounts Funds within one year of the request to meet and confer, unless the parties mutually agree in writing to extend the meet and confer time frame.
d) If the concern still cannot be resolved, the State may bring a motion or action in the court where the State has filed its Consent Judgment to resolve the concern or otherwise enforce the requirements of the Teva Settlement Agreement or this CA Teva Allocation Agreement. However, in no case shall any audit be conducted, or motion be brought, as to a specific expenditure of funds, more than five years after the date on which the expenditure of the funds was reported to DHCS, in accordance with this agreement. e) Notwithstanding the foregoing, this Agreement does not limit the statutory or constitutional authority of any state or local agency or official to conduct audits, 6 investigations, or other oversight activities, or to pursue administrative, civil, or criminal enforcement actions.

DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 171
6 C. CA Subdivision Fund
i. Fifteen percent of the total Settlement Fund payments will be allocated to the CA Subdivision Fund. All funds in the CA Subdivision Fund will be allocated among the Plaintiff Subdivisions that are Initial Participating Subdivisions. The funds will be used, subject to any limits imposed by the Teva Settlement Agreement and this CA Teva Allocation Agreement, to fund future Opioid Remediation and reimburse past opioidrelated expenses, which may include fees and expenses related to litigation, and to pay the reasonable fees and expenses of the Special Master as set forth in Appendix 2.

D. Provision for State Back-Stop Agreement
On August 6, 2021, Judge Dan Polster of the U.S. District Court, Northern District of Ohio, Eastern Division, issued an order (ECF Docket Number 3814) (“MDL Fees Order”) in the National Prescription Opiate Litigation (MDL No. 2804) “cap[ping] all applicable contingent fee agreements at 15%.” Private counsel representing Plaintiff Subdivisions should seek its contingency fees and costs from the Attorney Fee Fund or Cost Funds under the Teva Settlement Agreement and Allergan Settlement Agreement, and, if applicable, the CVS Settlement Agreement, Distributor Settlement Agreement, Janssen Settlement Agreement, Walgreens Settlement Agreement, and Walmart Settlement Agreement.

A Plaintiff Subdivision may separately agree to use its share of the CA Subdivision Fund to pay for fees or costs incurred by its contingency-fee counsel (“State Back-Stop Agreement”), pursuant to Exhibit R, section I(X), of the Teva Settlement Agreement and the MDL Fees Order, DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 172
7 so long as such contingency fees do not exceed a total contingency fee of 15% of the total gross recovery of the Plaintiff Subdivision pursuant to the Teva Settlement, inclusive of contingency fees from the national Attorney Fee Fund and this State Back-Stop Agreement. Before seeking fees or litigation costs and expenses from a State Back-Stop Agreement, private counsel representing Plaintiff Subdivisions must first seek contingency fees and costs from the Attorney Fee Fund or Cost Funds created under the Teva Settlement Agreement. Further, private counsel may only seek reimbursement for litigation fees and costs that have not previously been reimbursed through prior settlements or judgments.

DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 173
8 d) Each Plaintiff Subdivision receiving CA Subdivision Funds will track all deposits and expenditures, as required by the Teva Settlement Agreement and this CA Teva Allocation Agreement. Among other things, Plaintiff Subdivisions using monies from the CA Subdivision Fund for purposes that do not qualify as Opioid Remediation must identify and include in their annual report, the amount and how such funds were used, including if used to pay attorneys’ fees, investigation costs, or litigation costs. Pursuant to Section VIII(C) of the Teva Settlement Agreement, such information must also be reported to the Settlement Fund Administrator and Teva.
e) In each year in which DHCS prepares an annual report DHCS will also host a meeting to discuss the annual report and the Opioid Remediation activities being carried out by the State and Participating Subdivisions.

6. Miscellaneous
a) The State or any CA Participating Subdivision may bring a motion or action in the court where the State has filed its Consent Judgment to enforce the requirements of this CA Teva Allocation Agreement. Before filing such a motion or action the State will meet and confer with any CA Participating Subdivision that is the subject of the anticipated motion or action, and vice versa.
b) Except as provided in the Teva Settlement Agreement, this CA Teva Allocation Agreement is not enforceable by any party other than the State and the CA Participating Subdivisions. It does not confer any rights or remedies upon, and shall not be enforceable by, any third party.
c) Except as provided in the CA Teva Allocation Agreement, if any provision of this agreement or the application thereof to any person, entity, or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this agreement, or the application of such provision to persons, entities, or circumstances other than those as to which it is invalid or unenforceable, will not be affected thereby, and each other provision of this agreement will be valid and enforceable to the fullest extent permitted by law. a) Except as provided in the Teva Settlement Agreement, this agreement shall be governed by and interpreted in accordance with the laws of California.

DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 174
9 The undersigned, Adelanto city, ACKNOWLEDGES acceptance of this Proposed California StateSubdivision Agreement Regarding Distribution and Use of Settlement Funds – Teva Settlement is a requirement to be an Initial Participating Subdivision in the Teva Settlement and ACCEPTS this Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds – Teva Settlement. EXECUTED on /date_1_teva_allergan/.

Signature: /signer_1_teva_allergan/
Name: /name_1_teva_allergan/
Title: /title_1_teva_allergan/
Date: /date_1_teva_allergan/
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 Jessie Flores
City Manager
April 12, 2023
175
DISCLAIMER: The allocation percentages herein are estimates only and should not be relied on for decisions regarding legal rights, releases, waivers, or other decisions affecting current or potential legal claims. Percentages shown in the Plaintiff Subdivision Percentage column may change pursuant to Section 4.C. of the California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds—Teva Settlement, whereas the percentages shown in the Abatement Percentage column should not change.

Participating Subdivisions, underlying calculations, and the calculated allocation percentages are subject to change. Regarding the column herein entitled “Abatement Percentage,” pursuant to Section 4.B.e., the State of California will receive the Local Allocation share of any payment to the Settlement Fund that is attributable to a county or city that is eligible to become a CA Participating Subdivision, but that has not, as of the date of that payment to the Settlement Fund, become a Participating Subdivision. Regarding the column herein entitled “Plaintiff Subdivision Percentage,” payments allocated to a Plaintiff Subdivision, which is not an Initial Participating Subdivision, will be re-allocated among the Plaintiff Subdivisions that are Initial Participating Subdivisions. Regarding the column herein entitled “Abatement Percentage,” the annotation of “100%” refers to one-hundred percent (100%) of the California Abatement Account Funds received, pursuant to Section 4.B. Regarding the column herein entitled “Plaintiff Subdivision Percentage,” the annotation of “100%” refers to one-hundred percent (100%) of the California Subdivision Funds received, pursuant to Section 4.C.

Regarding the column herein entitled “Weighted Allocation Percentage,” the annotation of “100%” refers to one-hundred percent (100%) of the combined and weighted allocation of the Abatement Percentage and the Plaintiff Subdivision Percentage.

DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 176
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100.000% 100.000% 100.000%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
County Alameda County Alameda 2.332% 2.853% 2.4237952%
City Alameda Alameda 0.069% 0.0570162%
City Albany Alameda 0.013% 0.0107768%
City Berkeley Alameda 0.152% 0.1249656%
City Dublin Alameda 0.033% 0.040% 0.0338810%
City Emeryville Alameda 0.023% 0.0185765%
City Fremont Alameda 0.108% 0.0888576%
City Hayward Alameda 0.117% 0.0966218%
City Livermore Alameda 0.054% 0.0446740%
City Newark Alameda 0.026% 0.0217626%
City Oakland Alameda 0.486% 0.595% 0.5055601%
City Piedmont Alameda 0.014% 0.0114064%
City Pleasanton Alameda 0.067% 0.0554547%
City San Leandro Alameda 0.039% 0.0321267%
City Union City Alameda 0.043% 0.0352484%
County Amador County Amador 0.226% 0.277% 0.2349885%
County Butte County Butte 1.615% 1.975% 1.6783178%
City Chico Butte 0.216% 0.264% 0.2246499%
City Oroville Butte 0.079% 0.0646595%
County Calaveras County Calaveras 0.226% 0.277% 0.2351644% County Colusa County Colusa 0.059% 0.0489221%
County Contra Costa County Contra Costa 2.102% 2.571% 2.1844585% City Antioch Contra Costa 0.037% 0.0301879%
City Brentwood Contra Costa 0.026% 0.0215339%
City Clayton Contra Costa 0.002% 0.0018060%
City Concord Contra Costa 0.055% 0.0456676%
City Danville Contra Costa 0.010% 0.0082255%
City El Cerrito Contra Costa 0.023% 0.0189024%
City Hercules Contra Costa 0.010% 0.0078273%
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 177
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Lafayette Contra Costa 0.006% 0.0046030%
City Martinez Contra Costa 0.012% 0.0098593%
City Moraga Contra Costa 0.004% 0.0031007%
City Oakley Contra Costa 0.010% 0.0079416%
City Orinda Contra Costa 0.005% 0.0038157%
City Pinole Contra Costa 0.013% 0.0110909%
City Pittsburg Contra Costa 0.053% 0.0436369%
City Pleasant Hill Contra Costa 0.013% 0.0106309%
City Richmond Contra Costa 0.146% 0.1201444%
City San Pablo Contra Costa 0.018% 0.0148843%
City San Ramon Contra Costa 0.021% 0.0176459%
City Walnut Creek Contra Costa 0.026% 0.0212132%
County Del Norte County Del Norte 0.114% 0.140% 0.1189608% County El Dorado County El Dorado 0.768% 0.939% 0.7980034% City Placerville El Dorado 0.015% 0.0127642%
City South Lake Tahoe El Dorado 0.081% 0.0665456%
County Fresno County Fresno 1.895% 2.318% 1.9693410%
City Clovis Fresno 0.065% 0.0536211%
City Coalinga Fresno 0.012% 0.0098554%
City Fresno Fresno 0.397% 0.3270605%
City Kerman Fresno 0.005% 0.0042534%
City Kingsburg Fresno 0.008% 0.0066167%
City Mendota Fresno 0.002% 0.0019387%
City Orange Cove Fresno 0.004% 0.0035607%
City Parlier Fresno 0.008% 0.0069755%
City Reedley Fresno 0.012% 0.0098804%
City Sanger Fresno 0.018% 0.0146135%
City Selma Fresno 0.015% 0.0127537%
County Glenn County Glenn 0.107% 0.131% 0.1116978%
County Humboldt County Humboldt 1.030% 1.260% 1.0703185% DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 178
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Arcata Humboldt 0.054% 0.0447660%
City Eureka Humboldt 0.117% 0.143% 0.1216284%
City Fortuna Humboldt 0.032% 0.0266837%
County Imperial County Imperial 0.258% 0.315% 0.2679006% City Brawley Imperial 0.011% 0.0087986%
City Calexico Imperial 0.019% 0.0152799%
City El Centro Imperial 0.158% 0.1302522%
City Imperial Imperial 0.006% 0.0048791%
County Inyo County Inyo 0.073% 0.089% 0.0754413%
County Kern County Kern 2.517% 3.079% 2.6159145%
City Arvin Kern 0.006% 0.0046425%
City Bakersfield Kern 0.212% 0.1747198%
City California City Kern 0.009% 0.0070820%
City Delano Kern 0.030% 0.0249316%
City McFarland Kern 0.003% 0.0025644%
City Ridgecrest Kern 0.015% 0.0120938%
City Shafter Kern 0.013% 0.0103417%
City Tehachapi Kern 0.009% 0.0073580%
City Wasco Kern 0.008% 0.0069861%
County Kings County Kings 0.293% 0.2413469%
City Avenal Kings 0.007% 0.0056335%
City Corcoran Kings 0.013% 0.0107032%
City Hanford Kings 0.027% 0.0226038%
City Lemoore Kings 0.016% 0.0131900%
County Lake County Lake 0.795% 0.6545389%
City Clearlake Lake 0.041% 0.050% 0.0426253%
City Lakeport Lake 0.021% 0.026% 0.0222964%
County Lassen County Lassen 0.319% 0.391% 0.3320610%
City Susanville Lassen 0.027% 0.0219295%
County Los Angeles County Los Angeles 13.896% 16.999% 14.4437559% DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 179
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Agoura Hills Los Angeles 0.005% 0.0040024%
City Alhambra Los Angeles 0.042% 0.0343309%
City Arcadia Los Angeles 0.033% 0.0267718%
City Artesia Los Angeles 0.001% 0.0005100%
City Azusa Los Angeles 0.026% 0.0210857%
City Baldwin Park Los Angeles 0.027% 0.0218520%
City Bell Los Angeles 0.008% 0.0068783%
City Bellflower Los Angeles 0.002% 0.0014485%
City Bell Gardens Los Angeles 0.014% 0.0114301%
City Beverly Hills Los Angeles 0.065% 0.0534897%
City Burbank Los Angeles 0.100% 0.0823132%
City Calabasas Los Angeles 0.006% 0.0048948%
City Carson Los Angeles 0.019% 0.0159805%
City Cerritos Los Angeles 0.005% 0.0039682%
City Claremont Los Angeles 0.010% 0.0082584%
City Commerce Los Angeles 0.000% 0.0002971%
City Compton Los Angeles 0.044% 0.0361882%
City Covina Los Angeles 0.028% 0.0229127%
City Cudahy Los Angeles 0.001% 0.0006020%
City Culver City Los Angeles 0.055% 0.0449894%
City Diamond Bar Los Angeles 0.001% 0.0006993%
City Downey Los Angeles 0.052% 0.0429994%
City Duarte Los Angeles 0.003% 0.0027261%
City El Monte Los Angeles 0.031% 0.038% 0.0318985%
City El Segundo Los Angeles 0.033% 0.0268020%
City Gardena Los Angeles 0.034% 0.0278088%
City Glendale Los Angeles 0.166% 0.1366586%
City Glendora Los Angeles 0.016% 0.0134411%
City Hawaiian Gardens Los Angeles 0.005% 0.0040549%
City Hawthorne Los Angeles 0.050% 0.0407833%
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 180
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Hermosa Beach Los Angeles 0.018% 0.0145307%
City Huntington Park Los Angeles 0.023% 0.0190667%
City Inglewood Los Angeles 0.059% 0.0489195%
City La Cañada Flintridge Los Angeles 0.003% 0.0025565% City Lakewood Los Angeles 0.005% 0.0039971%
City La Mirada Los Angeles 0.010% 0.0081572%
City Lancaster Los Angeles 0.045% 0.0369689%
City La Puente Los Angeles 0.002% 0.0012999%
City La Verne Los Angeles 0.024% 0.0194190%
City Lawndale Los Angeles 0.002% 0.0017731%
City Lomita Los Angeles 0.004% 0.0031940%
City Long Beach Los Angeles 0.439% 0.3614151%
City Los Angeles Los Angeles 2.715% 3.321% 2.8218811%
City Lynwood Los Angeles 0.016% 0.0134345%
City Malibu Los Angeles 0.002% 0.0019269%
City Manhattan Beach Los Angeles 0.032% 0.0260686%
City Maywood Los Angeles 0.004% 0.0035528%
City Monrovia Los Angeles 0.031% 0.0254455%
City Montebello Los Angeles 0.030% 0.0250670%
City Monterey Park Los Angeles 0.031% 0.0256677%
City Norwalk Los Angeles 0.031% 0.0258228%
City Palmdale Los Angeles 0.046% 0.0375827%
City Palos Verdes Estates Los Angeles 0.006% 0.0053102% City Paramount Los Angeles 0.011% 0.0091483%
City Pasadena Los Angeles 0.146% 0.1200524%
City Pico Rivera Los Angeles 0.022% 0.0183333%
City Pomona Los Angeles 0.111% 0.0911933%
City Rancho Palos Verdes Los Angeles 0.002% 0.0012645%
City Redondo Beach Los Angeles 0.062% 0.0506992%
City Rosemead Los Angeles 0.003% 0.0028260%
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 181
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City San Dimas Los Angeles 0.003% 0.0022016%
City San Fernando Los Angeles 0.013% 0.0104837%
City San Gabriel Los Angeles 0.018% 0.0147726%
City San Marino Los Angeles 0.009% 0.0073791%
City Santa Clarita Los Angeles 0.022% 0.0178167%
City Santa Fe Springs Los Angeles 0.031% 0.0257531%
City Santa Monica Los Angeles 0.158% 0.1298513%
City Sierra Madre Los Angeles 0.006% 0.0048646%
City Signal Hill Los Angeles 0.010% 0.0084884%
City South El Monte Los Angeles 0.005% 0.0039603%
City South Gate Los Angeles 0.020% 0.0166272%
City South Pasadena Los Angeles 0.012% 0.0095334%
City Temple City Los Angeles 0.005% 0.0039498%
City Torrance Los Angeles 0.112% 0.0919820%
City Walnut Los Angeles 0.006% 0.0047305%
City West Covina Los Angeles 0.049% 0.0404521%
City West Hollywood Los Angeles 0.013% 0.0108517%
City Whittier Los Angeles 0.032% 0.0260581%
County Madera County Madera 0.349% 0.427% 0.3630669%
City Chowchilla Madera 0.012% 0.0097332%
City Madera Madera 0.039% 0.0318441%
County Marin County Marin 0.564% 0.690% 0.5861325%
City Larkspur Marin 0.015% 0.0124697%
City Mill Valley Marin 0.020% 0.0168401%
City Novato Marin 0.028% 0.0229824%
City San Anselmo Marin 0.009% 0.0078062%
City San Rafael Marin 0.089% 0.0729823%
County Mariposa County Mariposa 0.084% 0.103% 0.0876131% County Mendocino County Mendocino 0.439% 0.536% 0.4558394% City Ukiah Mendocino 0.039% 0.0317153%
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 182
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
County Merced County Merced 0.551% 0.674% 0.5724262%
City Atwater Merced 0.024% 0.0195846%
City Livingston Merced 0.006% 0.0045873%
City Los Banos Merced 0.020% 0.0165142%
City Merced Merced 0.061% 0.0500762%
County Modoc County Modoc 0.065% 0.080% 0.0678250%
County Mono County Mono 0.023% 0.029% 0.0242606%
County Monterey County Monterey 0.908% 1.111% 0.9437083% City Greenfield Monterey 0.006% 0.0050552%
City King City Monterey 0.005% 0.0037355%
City Marina Monterey 0.017% 0.0144098%
City Monterey Monterey 0.041% 0.0336540%
City Pacific Grove Monterey 0.009% 0.0074842%
City Salinas Monterey 0.094% 0.0776576%
City Seaside Monterey 0.023% 0.0191772%
City Soledad Monterey 0.007% 0.0060870%
County Napa County Napa 0.288% 0.352% 0.2994325%
City American Canyon Napa 0.017% 0.0136869%
City Napa Napa 0.078% 0.0642783%
County Nevada County Nevada 0.441% 0.539% 0.4579827%
City Grass Valley Nevada 0.024% 0.0197805%
City Truckee Nevada 0.003% 0.0023843%
County Orange County Orange 4.364% 5.339% 4.5363576%
City Aliso Viejo Orange 0.014% 0.0113841%
City Anaheim Orange 0.554% 0.678% 0.5759282%
City Brea Orange 0.086% 0.0708897%
City Buena Park Orange 0.087% 0.0714352%
City Costa Mesa Orange 0.124% 0.152% 0.1288366%
City Cypress Orange 0.033% 0.0271937%
City Dana Point Orange 0.001% 0.0005560%
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 183
APPENDIX 1
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Fountain Valley Orange 0.055% 0.0455980%
City Fullerton Orange 0.137% 0.168% 0.1425744%
City Garden Grove Orange 0.213% 0.1752482%
City Huntington Beach Orange 0.247% 0.302% 0.2568420%
City Irvine Orange 0.139% 0.170% 0.1442350%
City Laguna Beach Orange 0.047% 0.058% 0.0493043%
City Laguna Hills Orange 0.014% 0.0115457%
City Laguna Niguel Orange 0.001% 0.0007071%
City Laguna Woods Orange 0.001% 0.0006546%
City La Habra Orange 0.060% 0.073% 0.0621049%
City Lake Forest Orange 0.012% 0.0101249%
City La Palma Orange 0.012% 0.0095439%
City Los Alamitos Orange 0.008% 0.0069190%
City Mission Viejo Orange 0.014% 0.0117560%
City Newport Beach Orange 0.179% 0.1470134%
City Orange Orange 0.150% 0.1231320%
City Placentia Orange 0.029% 0.035% 0.0298912%
City Rancho Santa Margarita Orange 0.001% 0.0006296%
City San Clemente Orange 0.008% 0.010% 0.0086083%
City San Juan Capistrano Orange 0.008% 0.0065510%
City Santa Ana Orange 0.502% 0.614% 0.5213866%
City Seal Beach Orange 0.020% 0.0165891%
City Stanton Orange 0.035% 0.0291955%
City Tustin Orange 0.073% 0.0600341%
City Westminster Orange 0.104% 0.127% 0.1082721%
City Yorba Linda Orange 0.044% 0.0362223%
County Placer County Placer 1.045% 1.278% 1.0861002%
City Auburn Placer 0.017% 0.0141114%
City Lincoln Placer 0.031% 0.0255599%
City Rocklin Placer 0.076% 0.0625485%
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 184
APPENDIX 1
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Roseville Placer 0.196% 0.1616559%
County Plumas County Plumas 0.205% 0.251% 0.2128729%
County Riverside County Riverside 4.534% 5.547% 4.7128296% City Banning Riverside 0.017% 0.0143848%
City Beaumont Riverside 0.021% 0.0171135%
City Blythe Riverside 0.012% 0.0096714%
City Canyon Lake Riverside 0.000% 0.0001761%
City Cathedral City Riverside 0.067% 0.0553614%
City Coachella Riverside 0.021% 0.0173054%
City Corona Riverside 0.147% 0.1207083%
City Desert Hot Springs Riverside 0.024% 0.0200433%
City Eastvale Riverside 0.000% 0.0002747%
City Hemet Riverside 0.051% 0.0421792%
City Indio Riverside 0.056% 0.0457794%
City Jurupa Valley Riverside 0.001% 0.0008991%
City Lake Elsinore Riverside 0.021% 0.0172949%
City La Quinta Riverside 0.063% 0.0516732%
City Menifee Riverside 0.032% 0.0260909%
City Moreno Valley Riverside 0.137% 0.1130348%
City Murrieta Riverside 0.048% 0.059% 0.0497423%
City Norco Riverside 0.016% 0.0134542%
City Palm Desert Riverside 0.083% 0.0682465%
City Palm Springs Riverside 0.076% 0.0629862%
City Perris Riverside 0.009% 0.0076774%
City Rancho Mirage Riverside 0.052% 0.0431098%
City Riverside Riverside 0.268% 0.2206279%
City San Jacinto Riverside 0.010% 0.0085936%
City Temecula Riverside 0.022% 0.0180086%
City Wildomar Riverside 0.008% 0.0062500%
County Sacramento County Sacramento 3.797% 4.645% 3.9465887% DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 185
APPENDIX 1
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Citrus Heights Sacramento 0.057% 0.0465312%
City Elk Grove Sacramento 0.130% 0.1066994%
City Folsom Sacramento 0.108% 0.0890850%
City Galt Sacramento 0.017% 0.0143704%
City Rancho Cordova Sacramento 0.008% 0.0067679%
City Sacramento Sacramento 0.721% 0.882% 0.7496530%
County San Benito County San Benito 0.106% 0.130% 0.1101417% City Hollister San Benito 0.027% 0.0225355%
County San Bernardino County San Bernardino 3.259% 3.987% 3.3878124% City Adelanto San Bernardino 0.008% 0.0066640%
City Apple Valley San Bernardino 0.025% 0.0207360%
City Barstow San Bernardino 0.015% 0.0122056%
City Chino San Bernardino 0.064% 0.0525893%
City Chino Hills San Bernardino 0.001% 0.0006388%
City Colton San Bernardino 0.031% 0.0253443%
City Fontana San Bernardino 0.112% 0.0920543%
City Grand Terrace San Bernardino 0.006% 0.0051051%
City Hesperia San Bernardino 0.035% 0.0291522%
City Highland San Bernardino 0.004% 0.0029061%
City Loma Linda San Bernardino 0.009% 0.0071188%
City Montclair San Bernardino 0.039% 0.0322108%
City Ontario San Bernardino 0.179% 0.1472934%
City Rancho Cucamonga San Bernardino 0.084% 0.0689431%
City Redlands San Bernardino 0.057% 0.0469150%
City Rialto San Bernardino 0.073% 0.0603206%
City San Bernardino San Bernardino 0.178% 0.1461880%
City Twentynine Palms San Bernardino 0.002% 0.0012605%
City Upland San Bernardino 0.052% 0.0424460%
City Victorville San Bernardino 0.033% 0.0269400%
City Yucaipa San Bernardino 0.016% 0.0128772%
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 186
APPENDIX 1
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Yucca Valley San Bernardino 0.003% 0.0021228%
County San Diego County San Diego 5.706% 6.980% 5.9309748% City Carlsbad San Diego 0.128% 0.1050485%
City Chula Vista San Diego 0.189% 0.231% 0.1961456%
City Coronado San Diego 0.044% 0.0359095%
City El Cajon San Diego 0.113% 0.0933582%
City Encinitas San Diego 0.061% 0.074% 0.0630289%
City Escondido San Diego 0.145% 0.1192204%
City Imperial Beach San Diego 0.014% 0.0118283%
City La Mesa San Diego 0.055% 0.068% 0.0575593%
City Lemon Grove San Diego 0.022% 0.0183911%
City National City San Diego 0.080% 0.0656808%
City Oceanside San Diego 0.213% 0.1753428%
City Poway San Diego 0.062% 0.0511040%
City San Diego San Diego 1.975% 2.416% 2.0531169%
City San Marcos San Diego 0.089% 0.0733897%
City Santee San Diego 0.033% 0.0268401%
City Solana Beach San Diego 0.017% 0.0138564%
City Vista San Diego 0.052% 0.0425144%
Consolidated San Francisco San Francisco 3.026% 3.702% 3.1457169% County San Joaquin County San Joaquin 1.680% 2.055% 1.7460399% City Lathrop San Joaquin 0.009% 0.0075394%
City Lodi San Joaquin 0.053% 0.0439484%
City Manteca San Joaquin 0.054% 0.0443454%
City Ripon San Joaquin 0.013% 0.0104219%
City Stockton San Joaquin 0.313% 0.383% 0.3256176%
City Tracy San Joaquin 0.084% 0.0692047%
County San Luis Obispo County San Luis Obispo 0.816% 0.999% 0.8484126% City Arroyo Grande San Luis Obispo 0.024% 0.0199053%
City Atascadero San Luis Obispo 0.029% 0.0240680%
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 187
APPENDIX 1
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City El Paso de Robles (Paso Robles) San Luis Obispo 0.043% 0.0353456% City Grover Beach San Luis Obispo 0.017% 0.0137881%
City Morro Bay San Luis Obispo 0.020% 0.0160922%
City San Luis Obispo San Luis Obispo 0.077% 0.0637841%
County San Mateo County San Mateo 1.074% 1.313% 1.1159599% City Belmont San Mateo 0.021% 0.0169860%
City Burlingame San Mateo 0.019% 0.0152537%
City Daly City San Mateo 0.044% 0.0363880%
City East Palo Alto San Mateo 0.013% 0.0103982%
City Foster City San Mateo 0.020% 0.0166101%
City Half Moon Bay San Mateo 0.004% 0.0031638%
City Hillsborough San Mateo 0.013% 0.0110029%
City Menlo Park San Mateo 0.015% 0.0126209%
City Millbrae San Mateo 0.013% 0.0105836%
City Pacifica San Mateo 0.016% 0.0130625%
City Redwood City San Mateo 0.056% 0.0463511%
City San Bruno San Mateo 0.021% 0.0172161%
City San Carlos San Mateo 0.013% 0.0108885%
City San Mateo San Mateo 0.052% 0.0425841%
City South San Francisco San Mateo 0.043% 0.0353943%
County Santa Barbara County Santa Barbara 1.132% 1.385% 1.1768968% City Carpinteria Santa Barbara 0.001% 0.0008938%
City Goleta Santa Barbara 0.004% 0.0028969%
City Lompoc Santa Barbara 0.047% 0.0389379%
City Santa Barbara Santa Barbara 0.122% 0.1004559%
City Santa Maria Santa Barbara 0.058% 0.0479179%
County Santa Clara County Santa Clara 2.404% 2.941% 2.4987553% City Campbell Santa Clara 0.014% 0.0112566%
City Cupertino Santa Clara 0.008% 0.0066824%
City Gilroy Santa Clara 0.025% 0.0202891%
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 188
APPENDIX 1
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Los Altos Santa Clara 0.013% 0.0103338%
City Los Gatos Santa Clara 0.013% 0.0103220%
City Milpitas Santa Clara 0.036% 0.0298120%
City Morgan Hill Santa Clara 0.015% 0.0124619%
City Mountain View Santa Clara 0.041% 0.0334608%
City Palo Alto Santa Clara 0.039% 0.0323080%
City San Jose Santa Clara 0.294% 0.360% 0.3054960%
City Santa Clara Santa Clara 0.067% 0.0549723%
City Saratoga Santa Clara 0.004% 0.0034161%
City Sunnyvale Santa Clara 0.053% 0.0434069%
County Santa Cruz County Santa Cruz 0.783% 0.957% 0.8135396% City Capitola Santa Cruz 0.020% 0.0168191%
City Santa Cruz Santa Cruz 0.143% 0.1180348%
City Scotts Valley Santa Cruz 0.015% 0.0126525%
City Watsonville Santa Cruz 0.063% 0.0520136%
County Shasta County Shasta 1.095% 1.339% 1.1380191%
City Anderson Shasta 0.024% 0.0198896%
City Redding Shasta 0.284% 0.2334841%
City Shasta Lake Shasta 0.004% 0.0031993%
County Siskiyou County Siskiyou 0.228% 0.279% 0.2373393% County Solano County Solano 0.760% 0.6260795%
City Benicia Solano 0.031% 0.0253903%
City Dixon Solano 0.016% 0.0130849%
City Fairfield Solano 0.109% 0.0897317%
City Suisun City Solano 0.021% 0.0176183%
City Vacaville Solano 0.119% 0.0976497%
City Vallejo Solano 0.167% 0.1373644%
County Sonoma County Sonoma 1.218% 1.490% 1.2661290%
City Healdsburg Sonoma 0.032% 0.0266929%
City Petaluma Sonoma 0.081% 0.0667507%
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 189
APPENDIX 1
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Rohnert Park Sonoma 0.041% 0.0340759%
City Santa Rosa Sonoma 0.184% 0.1519070%
City Sonoma Sonoma 0.022% 0.0183438%
City Windsor Sonoma 0.016% 0.0129298%
County Stanislaus County Stanislaus 1.722% 1.4182273%
City Ceres Stanislaus 0.041% 0.0340260%
City Modesto Stanislaus 0.217% 0.1788759%
City Newman Stanislaus 0.006% 0.0046964%
City Oakdale Stanislaus 0.018% 0.0145531%
City Patterson Stanislaus 0.015% 0.0126590%
City Riverbank Stanislaus 0.010% 0.0085699%
City Turlock Stanislaus 0.065% 0.0531966%
County Sutter County Sutter 0.306% 0.374% 0.3179548%
City Yuba City Sutter 0.074% 0.0606242%
County Tehama County Tehama 0.213% 0.261% 0.2216654%
City Red Bluff Tehama 0.014% 0.0117771%
County Trinity County Trinity 0.082% 0.101% 0.0855476%
County Tulare County Tulare 0.809% 0.990% 0.8410949%
City Dinuba Tulare 0.014% 0.0116929%
City Exeter Tulare 0.004% 0.0032479%
City Farmersville Tulare 0.003% 0.0027879%
City Lindsay Tulare 0.007% 0.0057111%
City Porterville Tulare 0.021% 0.0171845%
City Tulare Tulare 0.037% 0.0302273%
City Visalia Tulare 0.066% 0.0545872%
County Tuolumne County Tuolumne 0.486% 0.594% 0.5047621% County Ventura County Ventura 2.192% 2.681% 2.2781201%
City Camarillo Ventura 0.002% 0.0012815%
City Fillmore Ventura 0.002% 0.0020294%
City Moorpark Ventura 0.008% 0.0067337%
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 190
APPENDIX 1
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Oxnard Ventura 0.156% 0.190% 0.1617338%
City Port Hueneme Ventura 0.021% 0.0174145%
City San Buenaventura (Ventura) Ventura 0.085% 0.0702181% City Santa Paula Ventura 0.014% 0.0119072%
City Simi Valley Ventura 0.065% 0.0533043%
City Thousand Oaks Ventura 0.022% 0.0179902%
County Yolo County Yolo 0.357% 0.437% 0.3713319%
City Davis Yolo 0.055% 0.0451747%
City West Sacramento Yolo 0.066% 0.0544321%
City Woodland Yolo 0.058% 0.0477904%
County Yuba County Yuba 0.214% 0.262% 0.2225679%
City Marysville Yuba 0.014% 0.0112079%
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 191
1 APPENDIX 2
Cost Reimbursement Procedure

DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 192
2 i. If a Plaintiff Subdivision is eligible to seek reimbursement of Costs, in whole or in part, from funds available under Section XIV and Exhibit R of the Teva Settlement Agreement, Section XIII and Exhibit R of the Allergan Settlement Agreement, Section X and Exhibit R of the CVS Settlement Agreement, Section IX and Exhibit R of the Walgreens Settlement Agreement, Section IX and Exhibit R of the Walmart Settlement Agreement, Section X or Exhibit R of the Distributor Settlement Agreement, or Section XI or Exhibit R of the Janssen Settlement Agreement, it must first make a timely application for reimbursement from such funds. To allow sufficient time for determination of those applications, no claim for Costs to the CA Subdivision Fund under this Agreement may be made before the First Claims Date. ii. A Plaintiff Subdivision that wishes to be reimbursed from the CA Subdivision Fund must submit a claim to the Special Master no later than forty-five (45) days after the First Claims Date. The Special Master will then compile and redistribute the aggregated claim totals for each Plaintiff Subdivision via email to representatives of all the Plaintiff Subdivisions. A claim for attorney and staff time must list, for each attorney or staff member included in the claim, the following information: name, title, total hours claimed, hourly rate (including, if sought, benefits and share of overhead), and narrative summarizing the general nature of the work performed by the attorney or staff member. For reimbursement of “hard” costs, the subdivision may aggregate across a category (e.g., total for travel costs). It is the intention of the Plaintiff Subdivisions that submission of documents related to reimbursement of Costs does not waive any attorney-client privilege or exemptions to the California Public Records Act.
iii. The Special Master may request, at his or her sole option, additional documents or details to assist in the final award of Costs.
iv. The Special Master will review claims for reasonableness and will notify each Plaintiff Subdivision of the final determination of its claim, and will provide a list of all final awards to all Plaintiff Subdivisions by email or, upon request, via First Class U.S. Mail. Any Plaintiff Subdivision may ask the Special Master to reconsider any final award within twenty-one (21) days. The Special Master will make a final determination on any such reconsideration request within thirty (30) days of receipt. v. Any decision of the Special Master is final and binding, and will be considered under the California Arbitration Act, Code of Civil Procedure section 1280 et seq. as a final arbitration award. Nothing in this agreement is intended to expand the scope of judicial review of the final award for errors of fact or law, and the Parties agree that they may only seek to vacate the award if clear and convincing evidence demonstrates one of the factors set forth in Code of Civil Procedure, section 1286.2, subdivision (a). Plaintiff Subdivisions will have fourteen (14) days after all final awards are made, together with any final determination of a request for reconsideration, to seek review in the Superior Court of California, pursuant to Code of Civil Procedure, section 1285, where the State has filed its Consent Judgment.

DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 193
3 vi. The Special Master will prepare a report of Costs that includes his or her fees and expenses at least ninety (90) days before the Payment Date for each Annual Payment. The Special Master’s preparation of a report of Costs does not discharge a Plaintiff Subdivision’s reporting requirement under Section VIII.C of the Teva Settlement Agreement.
vii. A member of the Plaintiff Subdivision Committee, which is a CA Participating Subdivision, will submit to the Settlement Fund Administrator and Teva a report of the fees and expenses incurred by the Special Master pursuant to Section VIII.C of the Teva Settlement Agreement.
c) Claims Priority and Limitation.
i. The Special Master will submit invoices for compensation of reasonable fees and expenses to the Plaintiff Subdivision Committee no later than ninety (90) days prior to the Payment Date for each Annual Payment. The Plaintiff Subdivision Committee will promptly review and, if reasonable, approve the Special Master’s invoice for compensation. The Plaintiff Subdivision Committee will submit approved invoices to the Settlement Fund Administrator for payment. The Special Master’s approved invoices have priority and will be paid first from the CA Subdivision Fund before any award of Costs, subject to the limitation in Section

2.c.v below.
ii. Final Awards of Costs that do not exceed seventy-five thousand dollars ($75,000.00) will be paid next in priority after the Special Master’s approved invoices.
iii. Final Awards of Costs in excess of seventy-five thousand dollars ($75,000.00) will be paid proportionally from the funds remaining in that year’s Annual Payment. iv. Any claim for Costs that is not paid in full will be allocated against the next year’s distribution from the CA Subdivision Fund, until all approved claims for Costs are paid in full.
v. In no event will more than 50% of the total CA Subdivision Fund received in any year be used to pay Costs or the Special Master’s approved invoices. vi. In no event shall more than $28 million of the total CA Subdivision Funds paid pursuant to the Teva Settlement Agreement, Allergan Settlement Agreement, Distributor Settlement Agreement, CVS Settlement Agreement, Janssen Settlement Agreement, Walgreens Settlement Agreement, and the Walmart Settlement Agreement be used to pay Costs.
d) Collateral Source Payments and Third-Party Settlement. i. In the event a Plaintiff Subdivision is awarded compensation, in whole or in part, by any source of funds created as a result of litigation against an Opioid Defendant for 4 its reasonable Costs, it will reduce its claim for Costs from the CA Subdivision Fund by that amount. If a Plaintiff Subdivision has already received a DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 194
4 final award of Costs from the CA Subdivision Fund, it will repay the fund up to the prior award of Costs via a payment to the Settlement Fund Administrator or notify the Settlement Fund Administrator that its allocation from the next and subsequent Annual Payments should be reduced accordingly. If the Plaintiff Subdivision is repaying any prior award of Costs, that repayment will occur as soon as is feasible after the Plaintiff Subdivision’s receipt of Cost funds from the collateral source, but no more than 90 days after its receipt from the collateral source. The Settlement Fund Administrator will add any repaid Costs to the CA Subdivision Fund. Any Plaintiff Subdivision that has submitted for reimbursement to any national fund and has not received a final determination by the First Claims Date may request that the settlement administrator withhold some or all of its payment from the CA Subdivision Fund in order to avoid repayment.
ii. In the event a Plaintiff Subdivision reaches a monetary settlement or compromise against any Opioid Defendant outside of the National Opioid Settlement, the monetary portion of such settlement, net of fees paid to outside contingency fee counsel and of funds earmarked strictly for abatement, will be credited against its Costs and the subdivision will be ineligible to recover those credited Costs from the CA Subdivision Fund. Plaintiff Subdivisions negotiating monetary settlements or compromises against any Opioid Defendant outside of the National Opioid Settlement will negotiate for funds to repay any Costs it previously received from the CA Subdivision Fund or for Costs it otherwise might be eligible to claim from the CA Subdivision Fund. If such a settlement is paid after all final approved claims for Costs by all Plaintiff Subdivisions are satisfied in full, the settling subdivision will reimburse the CA Subdivision Fund in that amount by making payment to the Settlement Fund Administrator to add to the CA Subdivision Fund in a manner consistent with the repayments described in section 2.d.i above.

DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 195
1 APPENDIX 3

Pursuant to this Backstop Agreement, [SUBDIVISION] may, subject to the limitations of the Teva Settlement Agreement and CA Teva Allocation Agreement, as well as any other limitations imposed by law, use funds that it receives from the Teva Settlement CA Subdivision Fund to pay a contingent fee to [COUNSEL]. Any such payment from [SUBDIVISION] to [COUNSEL], together with any contingency fees that [COUNSEL] may receive from the national Attorney Fee Fund, will not exceed a total contingency fee of [PERCENTAGE NOT TO EXCEED 15%] of the total gross recovery of [SUBDIVISION] from the Teva Settlement. [COUNSEL] certify that they first sought fees and costs from the Attorney Fee Fund created under the Teva Settlement Agreement before seeking or accepting payment under this backstop agreement. [COUNSEL] further certify that they are not seeking and will not accept payment under this backstop agreement of any litigation fees or costs that have been reimbursed through prior settlements or judgments.

The Attorney General is executing this agreement solely because the definition of “State BackStop Agreement” in Exhibit R of the Teva Settlement Agreement requires such agreements to be between “a Settling State” and private counsel for a participating subdivision. Neither the California Attorney General nor the State of California have any obligations under this Backstop Agreement, and this Backstop Agreement does not require the payment of any state funds to [SUBDIVISION], [COUNSEL], or any other party.
[DATE] [SUBDIVISION SIGNATURE BLOCK]
[DATE] [COUNSEL SIGNATURE BLOCK]
[DATE] [ATTORNEY GENERAL SIGNATURE BLOCK]
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 196
1 Proposed California State-Subdivision Agreement
Regarding Distribution and Use of
Settlement Funds – CVS Settlement

1. Introduction
Pursuant to the CVS Settlement Agreement, dated as of December 9, 2022, and any revision thereto as well as any modification thereto entered into by the State of California and CVS (the “CVS Settlement Agreement”), including Section V and Exhibit O, the State of California proposes this agreement (the “CA CVS Allocation Agreement”) to govern the allocation, distribution, and use of Settlement Fund payments made to California pursuant to Sections IV and V of the CVS Settlement Agreement. For the avoidance of doubt, this agreement does not apply to payments made pursuant to Sections IX or X of the CVS Settlement Agreement.

Pursuant to Exhibit O, Paragraph 4, of the CVS Settlement Agreement, acceptance of this CA CVS Allocation Agreement is a requirement to be an Initial Participating Subdivision.

2. Definitions
a) CA Participating Subdivision means a Participating Subdivision that is also (a) a Plaintiff Subdivision and/or (b) a Primary Subdivision with a population equal to or greater than 10,000. For the avoidance of doubt, eligible CA Participating Subdivisions are those California subdivisions listed in Exhibit C (excluding Litigating Special Districts) and/or Exhibit I to the CVS Settlement Agreement. b) Allergan Settlement Agreement means the Allergan Settlement Agreement dated November 22, 2022, and any revision thereto.
c) Distributor Settlement Agreement means the Distributor Settlement Agreement dated July 21, 2021, and any revision thereto.
d) Janssen Settlement Agreement means the Janssen Settlement Agreement dated July 21, 2021, and any revision thereto.
e) Teva Settlement Agreement means the Teva Settlement Agreement dated November 22, 2022, and any revision thereto.
f) Walgreens Settlement Agreement means the Walgreens Settlement Agreement dated December 9, 2022, and any revision thereto.
g) Walmart Settlement Agreement means the Walmart Settlement Agreement dated November 14, 2022, and any revision thereto.
h) CA Litigating Special District means a Litigating Special District located in California. CA Litigating Special Districts include Downey Unified School District, Elk Grove Unified School District, Kern High School District, Montezuma Fire Protection District (located in Stockton, California), Santa Barbara San Luis Obispo Regional Health Authority, Inland Empire Health Plan, Health Plan of San Joaquin, San Leandro Unified School District, Pleasant Valley School District Board, and LA Care Health Plan.
i) Plaintiff Subdivision means a Subdivision located in California, other than a CA DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 197
2 Litigating Special District, that filed a lawsuit, on behalf of the Subdivision and/or through an official of the Subdivision on behalf of the People of the State of California, against one or more Opioid Defendants prior to October 1, 2020. j) Opioid Defendant means any defendant (including but not limited to Teva Pharmaceutical Industries Ltd., Allergan Finance, LLC, Allergan Limited, CVS Health Corporation, CVS Pharmacy, Inc., Walgreen Co., Walmart Inc., Johnson & Johnson, Janssen Pharmaceuticals, Inc., Purdue Pharma L.P., Cardinal Health, Inc., AmerisourceBergen Corporation, and McKesson Corporation) named in a lawsuit seeking damages, abatement, or other remedies related to or caused by the opioid public health crisis in any lawsuit brought by any state or local government on or before October 1, 2020.

3. General Terms
This agreement is subject to the requirements of the CVS Settlement Agreement, as well as applicable law, and the CVS Settlement Agreement governs over any inconsistent provision of this CA CVS Allocation Agreement. Terms used in this CA CVS Allocation Agreement have the same meaning as in the CVS Settlement Agreement unless otherwise defined herein.

Pursuant to Section V(E)(1) of the CVS Settlement Agreement, (a) all Settlement Fund payments will be used for Opioid Remediation, except as allowed by Section V(B)(2) of the CVS Settlement Agreement; and (b) at least seventy percent (70%) of Settlement Fund payment amounts will be used solely for future Opioid Remediation.

4. State Allocation
The Settlement Fund payments to California,1 pursuant to the CVS Settlement Agreement, shall be allocated as follows: 15% to the State Fund; 70% to the Abatement Accounts Fund; and 15% to the Subdivision Fund. For the avoidance of doubt, all funds allocated to California from the Settlement Fund shall be combined pursuant to this CA CVS Allocation Agreement, and 15% of that total shall be allocated to the State of California (the “State of California Allocation”), 70% to the California Abatement Accounts Fund (“CA Abatement Accounts Fund”), and 15% to the California Subdivision Fund (“CA Subdivision Fund”).
1 For purposes of clarity, use of the term “California” refers to the geographic territory of California and the state and its local governments therein. The term “State” or “State of California” refers to the State of California as a governmental unit.

DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 198
3 A. State of California Allocation
Fifteen percent of the total Settlement Fund payments will be allocated to the State and used by the State for future Opioid Remediation.

DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 199
4 e) The State will receive the Local Allocation share of any payment to the Settlement Fund that is attributable to a county or city that is eligible to become a CA Participating Subdivision, but that has not, as of the date of that payment to the Settlement Fund, become a Participating Subdivision.
f) Funds received by a CA Participating Subdivision, and not expended or encumbered within five years of receipt and in accordance with the CVS Settlement Agreement and this CA CVS Allocation Agreement shall be transferred to the State; provided however, that CA Participating Subdivisions have seven years to expend or encumber CA Abatement Accounts Funds designated to support capital outlay projects before they must be transferred to the State. This provision shall not apply to the Cost Reimbursement Funds, which shall be controlled by Appendix 2.
ii. Use of CA Abatement Accounts Funds
a) The CA Abatement Accounts Funds will be used for future Opioid Remediation in one or more of the areas described in the List of Opioid Remediation Uses, which is Exhibit E to the CVS Settlement Agreement.
b) In addition to this requirement, no less than 50% of the funds received by a CA Participating Subdivision from the Abatement Accounts Fund in each calendar year will be used for one or more of the following High Impact Abatement Activities:
(1) the provision of matching funds or operating costs for substance use disorder facilities within the Behavioral Health Continuum Infrastructure Program; (2) creating new or expanded Substance Use Disorder (“SUD”) treatment infrastructure; (3) addressing the needs of communities of color and vulnerable populations (including sheltered and unsheltered homeless populations) that are disproportionately impacted by SUD;
(4) diversion of people with SUD from the justice system into treatment, including by providing training and resources to first and early responders (sworn and non-sworn) and implementing best practices for outreach, diversion and deflection, employability, restorative justice, and harm reduction; and/or (5) interventions to prevent drug addiction in vulnerable youth. c) The California Department of Health Care Services (“DHCS”) may add to this list (but not delete from it) by designating additional High Impact Abatement Activities. DHCS will make reasonable efforts to consult with stakeholders, including the CA Participating Subdivisions, before adding additional High Impact Abatement Activities to this list.
d) For the avoidance of doubt, and subject to the requirements of the CVS Settlement Agreement and applicable law, CA Participating Subdivisions may form agreements or
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 200
5 ventures, or otherwise work in collaboration with, federal, state, local, tribal or private sector entities in pursuing Opioid Remediation activities funded from the CA Abatement Accounts Fund. Further, provided that all CA Abatement Accounts Funds are used for Opioid Remediation consistent with the CVS Settlement Agreement and this CA CVS Allocation Agreement, a county and any cities or towns within the county may agree to reallocate their respective shares of the CA Abatement Accounts Funds among themselves, provided that any direct distribution may only be to a CA Participating Subdivision and any CA Participating Subdivision must agree to their share being reallocated.
iii. CA Abatement Accounts Fund Oversight
a) Pursuant to Section 5 below, CA Participating Subdivisions receiving settlement funds must prepare and file reports annually regarding the use of those funds. DHCS may regularly review the reports prepared by CA Participating Subdivisions about the use of CA Abatement Accounts Funds for compliance with the CVS Settlement Agreement and this CA CVS Allocation Agreement.
b) If DHCS determines that a CA Participating Subdivision’s use of CA Abatement Accounts Funds is inconsistent with the CVS Settlement Agreement or this CA CVS Allocation Agreement, whether through review of reports or information from any other sources, DHCS shall send a request to meet and confer with the CA Participating Subdivision. The parties shall meet and confer in an effort to resolve the concern. c) If the parties are unable to reach a resolution, DHCS may conduct an audit of the Subdivision’s use of the CA Abatement Accounts Funds within one year of the request to meet and confer, unless the parties mutually agree in writing to extend the meet and confer time frame.
d) If the concern still cannot be resolved, the State may bring a motion or action in the court where the State has filed its Consent Judgment to resolve the concern or otherwise enforce the requirements of the CVS Settlement Agreement or this CA CVS Allocation Agreement. However, in no case shall any audit be conducted, or motion be brought, as to a specific expenditure of funds, more than five years after the date on which the expenditure of the funds was reported to DHCS, in accordance with this agreement. e) Notwithstanding the foregoing, this Agreement does not limit the statutory or constitutional authority of any state or local agency or official to conduct audits, investigations, or other oversight activities, or to pursue administrative, civil, or criminal enforcement actions.

DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 201
6 C. CA Subdivision Fund
i. Fifteen percent of the total Settlement Fund payments will be allocated to the CA Subdivision Fund. All funds in the CA Subdivision Fund will be allocated among the Plaintiff Subdivisions that are Initial Participating Subdivisions. The funds will be used, subject to any limits imposed by the CVS Settlement Agreement and this CA CVS Allocation Agreement, to fund future Opioid Remediation and reimburse past opioidrelated expenses, which may include fees and expenses related to litigation, and to pay the reasonable fees and expenses of the Special Master as set forth in Appendix 2.

D. Provision for State Back-Stop Agreement
On August 6, 2021, Judge Dan Polster of the U.S. District Court, Northern District of Ohio, Eastern Division, issued an order (ECF Docket Number 3814) (“MDL Fees Order”) in the National Prescription Opiate Litigation (MDL No. 2804) “cap[ping] all applicable contingent fee agreements at 15%.” Private counsel representing Plaintiff Subdivisions should seek its contingency fees and costs from the Attorney Fee Fund or Cost Funds under the CVS Settlement Agreement, and, if applicable, the Teva Settlement Agreement, Allergan Settlement Agreement, Distributor Settlement Agreement, Janssen Settlement Agreement, Walgreens Settlement Agreement, and Walmart Settlement Agreement.

A Plaintiff Subdivision may separately agree to use its share of the CA Subdivision Fund to pay for fees or costs incurred by its contingency-fee counsel (“State Back-Stop Agreement”), pursuant to Exhibit R, section I(Y), of the CVS Settlement Agreement and the MDL Fees Order, so long as such contingency fees do not exceed a total contingency fee of 15% of the total gross recovery of the Plaintiff Subdivision pursuant to the CVS Settlement, inclusive of contingency fees from the national Attorney Fee Fund and this State Back-Stop Agreement. Before seeking fees or litigation costs and expenses from a State Back-Stop Agreement, private counsel DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 202
7 representing Plaintiff Subdivisions must first seek contingency fees and costs from the Attorney Fee Fund or Cost Funds created under the CVS Settlement Agreement. Further, private counsel may only seek reimbursement for litigation fees and costs that have not previously been reimbursed through prior settlements or judgments.

5. State and Subdivision Reporting
a) DHCS will prepare an annual written report regarding the State’s use of funds from the settlement until those funds are fully expended and for one year thereafter. These reports will be made publicly available on the DHCS web site.
b) Each CA Participating Subdivision that receives payments of funds from the settlement will prepare written reports at least annually regarding the use of those funds, until those funds are fully expended and for one year thereafter. These reports will also include a certification that all funds that the CA Participating Subdivision has received through the settlement have been used in compliance with the CVS Settlement Agreement and this CA CVS Allocation Agreement. The report will be in a form reasonably determined by DHCS. Prior to specifying the form of the report DHCS will confer with representatives of the Plaintiff Subdivisions.
c) The State and all CA Participating Subdivisions receiving CA Abatement Accounts Funds will track all deposits and expenditures. Each such subdivision is responsible solely for the CA Abatement Accounts Funds it receives. A county is not responsible for oversight, reporting, or monitoring of CA Abatement Accounts Funds received by a city within that county that receives direct payment. Unless otherwise exempt, Subdivisions’ expenditures and uses of CA Abatement Accounts Funds and other Settlement Funds will be subject to the normal budgetary and expenditure process of the Subdivision. d) Each Plaintiff Subdivision receiving CA Subdivision Funds will track all deposits and expenditures, as required by the CVS Settlement Agreement and this CA CVS Allocation Agreement. Among other things, Plaintiff Subdivisions using monies from the CA Subdivision Fund for purposes that do not qualify as Opioid Remediation must identify and include in their annual report, the amount and how such funds were used, including if used to pay attorneys’ fees, investigation costs, or litigation costs. Pursuant to Section V(B)(2) of the CVS Settlement Agreement, such information must also be reported to the Settlement Fund Administrator and CVS.

DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 203
8 e) In each year in which DHCS prepares an annual report DHCS will also host a meeting to discuss the annual report and the Opioid Remediation activities being carried out by the State and Participating Subdivisions.

6. Miscellaneous
a) The State or any CA Participating Subdivision may bring a motion or action in the court where the State has filed its Consent Judgment to enforce the requirements of this CA CVS Allocation Agreement. Before filing such a motion or action the State will meet and confer with any CA Participating Subdivision that is the subject of the anticipated motion or action, and vice versa.
b) Except as provided in the CVS Settlement Agreement, this CA CVS Allocation Agreement is not enforceable by any party other than the State and the CA Participating Subdivisions. It does not confer any rights or remedies upon, and shall not be enforceable by, any third party.
c) Except as provided in the CA CVS Allocation Agreement, if any provision of this agreement or the application thereof to any person, entity, or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this agreement, or the application of such provision to persons, entities, or circumstances other than those as to which it is invalid or unenforceable, will not be affected thereby, and each other provision of this agreement will be valid and enforceable to the fullest extent permitted by law. d) Except as provided in the CVS Settlement Agreement, this agreement shall be governed by and interpreted in accordance with the laws of California.

DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 204
9 The undersigned, Adelanto city, ACKNOWLEDGES acceptance of this Proposed California StateSubdivision Agreement Regarding Distribution and Use of Settlement Funds – CVS Settlement is a requirement to be an Initial Participating Subdivision in the CVS Settlement and ACCEPTS this Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds – CVS Settlement. EXECUTED on /date_1_cvs/.

Signature: /signer_1_teva_allergan/
Name: /name_1_teva_allergan/
Title: /title_1_teva_allergan/
Date: /date_1_cvs/
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 Jessie Flores
City Manager
April 12, 2023
205
APPENDIX 1
DISCLAIMER: The allocation percentages herein are estimates only and should not be relied on for decisions regarding legal rights, releases, waivers, or other decisions affecting current or potential legal claims. Percentages shown in the Plaintiff Subdivision Percentage column may change pursuant to Section 4.C. of the California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds—CVS Settlement, whereas the percentages shown in the Abatement Percentage column should not change.

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100.000% 100.000% 100.000%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
County Alameda County Alameda 2.332% 2.853% 2.4237952%
City Alameda Alameda 0.069% 0.0570162%
City Albany Alameda 0.013% 0.0107768%
City Berkeley Alameda 0.152% 0.1249656%
City Dublin Alameda 0.033% 0.040% 0.0338810%
City Emeryville Alameda 0.023% 0.0185765%
City Fremont Alameda 0.108% 0.0888576%
City Hayward Alameda 0.117% 0.0966218%
City Livermore Alameda 0.054% 0.0446740%
City Newark Alameda 0.026% 0.0217626%
City Oakland Alameda 0.486% 0.595% 0.5055601%
City Piedmont Alameda 0.014% 0.0114064%
City Pleasanton Alameda 0.067% 0.0554547%
City San Leandro Alameda 0.039% 0.0321267%
City Union City Alameda 0.043% 0.0352484%
County Amador County Amador 0.226% 0.277% 0.2349885%
County Butte County Butte 1.615% 1.975% 1.6783178%
City Chico Butte 0.216% 0.264% 0.2246499%
City Oroville Butte 0.079% 0.0646595%
County Calaveras County Calaveras 0.226% 0.277% 0.2351644% County Colusa County Colusa 0.059% 0.0489221%
County Contra Costa County Contra Costa 2.102% 2.571% 2.1844585% City Antioch Contra Costa 0.037% 0.0301879%
City Brentwood Contra Costa 0.026% 0.0215339%
City Clayton Contra Costa 0.002% 0.0018060%
City Concord Contra Costa 0.055% 0.0456676%
City Danville Contra Costa 0.010% 0.0082255%
City El Cerrito Contra Costa 0.023% 0.0189024%
City Hercules Contra Costa 0.010% 0.0078273%
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Lafayette Contra Costa 0.006% 0.0046030%
City Martinez Contra Costa 0.012% 0.0098593%
City Moraga Contra Costa 0.004% 0.0031007%
City Oakley Contra Costa 0.010% 0.0079416%
City Orinda Contra Costa 0.005% 0.0038157%
City Pinole Contra Costa 0.013% 0.0110909%
City Pittsburg Contra Costa 0.053% 0.0436369%
City Pleasant Hill Contra Costa 0.013% 0.0106309%
City Richmond Contra Costa 0.146% 0.1201444%
City San Pablo Contra Costa 0.018% 0.0148843%
City San Ramon Contra Costa 0.021% 0.0176459%
City Walnut Creek Contra Costa 0.026% 0.0212132%
County Del Norte County Del Norte 0.114% 0.140% 0.1189608% County El Dorado County El Dorado 0.768% 0.939% 0.7980034% City Placerville El Dorado 0.015% 0.0127642%
City South Lake Tahoe El Dorado 0.081% 0.0665456%
County Fresno County Fresno 1.895% 2.318% 1.9693410%
City Clovis Fresno 0.065% 0.0536211%
City Coalinga Fresno 0.012% 0.0098554%
City Fresno Fresno 0.397% 0.3270605%
City Kerman Fresno 0.005% 0.0042534%
City Kingsburg Fresno 0.008% 0.0066167%
City Mendota Fresno 0.002% 0.0019387%
City Orange Cove Fresno 0.004% 0.0035607%
City Parlier Fresno 0.008% 0.0069755%
City Reedley Fresno 0.012% 0.0098804%
City Sanger Fresno 0.018% 0.0146135%
City Selma Fresno 0.015% 0.0127537%
County Glenn County Glenn 0.107% 0.131% 0.1116978%
County Humboldt County Humboldt 1.030% 1.260% 1.0703185% DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 208
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Arcata Humboldt 0.054% 0.0447660%
City Eureka Humboldt 0.117% 0.143% 0.1216284%
City Fortuna Humboldt 0.032% 0.0266837%
County Imperial County Imperial 0.258% 0.315% 0.2679006% City Brawley Imperial 0.011% 0.0087986%
City Calexico Imperial 0.019% 0.0152799%
City El Centro Imperial 0.158% 0.1302522%
City Imperial Imperial 0.006% 0.0048791%
County Inyo County Inyo 0.073% 0.089% 0.0754413%
County Kern County Kern 2.517% 3.079% 2.6159145%
City Arvin Kern 0.006% 0.0046425%
City Bakersfield Kern 0.212% 0.1747198%
City California City Kern 0.009% 0.0070820%
City Delano Kern 0.030% 0.0249316%
City McFarland Kern 0.003% 0.0025644%
City Ridgecrest Kern 0.015% 0.0120938%
City Shafter Kern 0.013% 0.0103417%
City Tehachapi Kern 0.009% 0.0073580%
City Wasco Kern 0.008% 0.0069861%
County Kings County Kings 0.293% 0.2413469%
City Avenal Kings 0.007% 0.0056335%
City Corcoran Kings 0.013% 0.0107032%
City Hanford Kings 0.027% 0.0226038%
City Lemoore Kings 0.016% 0.0131900%
County Lake County Lake 0.795% 0.6545389%
City Clearlake Lake 0.041% 0.050% 0.0426253%
City Lakeport Lake 0.021% 0.026% 0.0222964%
County Lassen County Lassen 0.319% 0.391% 0.3320610%
City Susanville Lassen 0.027% 0.0219295%
County Los Angeles County Los Angeles 13.896% 16.999% 14.4437559% DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 209
APPENDIX 1
4 of 15
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Agoura Hills Los Angeles 0.005% 0.0040024%
City Alhambra Los Angeles 0.042% 0.0343309%
City Arcadia Los Angeles 0.033% 0.0267718%
City Artesia Los Angeles 0.001% 0.0005100%
City Azusa Los Angeles 0.026% 0.0210857%
City Baldwin Park Los Angeles 0.027% 0.0218520%
City Bell Los Angeles 0.008% 0.0068783%
City Bellflower Los Angeles 0.002% 0.0014485%
City Bell Gardens Los Angeles 0.014% 0.0114301%
City Beverly Hills Los Angeles 0.065% 0.0534897%
City Burbank Los Angeles 0.100% 0.0823132%
City Calabasas Los Angeles 0.006% 0.0048948%
City Carson Los Angeles 0.019% 0.0159805%
City Cerritos Los Angeles 0.005% 0.0039682%
City Claremont Los Angeles 0.010% 0.0082584%
City Commerce Los Angeles 0.000% 0.0002971%
City Compton Los Angeles 0.044% 0.0361882%
City Covina Los Angeles 0.028% 0.0229127%
City Cudahy Los Angeles 0.001% 0.0006020%
City Culver City Los Angeles 0.055% 0.0449894%
City Diamond Bar Los Angeles 0.001% 0.0006993%
City Downey Los Angeles 0.052% 0.0429994%
City Duarte Los Angeles 0.003% 0.0027261%
City El Monte Los Angeles 0.031% 0.038% 0.0318985%
City El Segundo Los Angeles 0.033% 0.0268020%
City Gardena Los Angeles 0.034% 0.0278088%
City Glendale Los Angeles 0.166% 0.1366586%
City Glendora Los Angeles 0.016% 0.0134411%
City Hawaiian Gardens Los Angeles 0.005% 0.0040549%
City Hawthorne Los Angeles 0.050% 0.0407833%
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Hermosa Beach Los Angeles 0.018% 0.0145307%
City Huntington Park Los Angeles 0.023% 0.0190667%
City Inglewood Los Angeles 0.059% 0.0489195%
City La Cañada Flintridge Los Angeles 0.003% 0.0025565% City Lakewood Los Angeles 0.005% 0.0039971%
City La Mirada Los Angeles 0.010% 0.0081572%
City Lancaster Los Angeles 0.045% 0.0369689%
City La Puente Los Angeles 0.002% 0.0012999%
City La Verne Los Angeles 0.024% 0.0194190%
City Lawndale Los Angeles 0.002% 0.0017731%
City Lomita Los Angeles 0.004% 0.0031940%
City Long Beach Los Angeles 0.439% 0.3614151%
City Los Angeles Los Angeles 2.715% 3.321% 2.8218811%
City Lynwood Los Angeles 0.016% 0.0134345%
City Malibu Los Angeles 0.002% 0.0019269%
City Manhattan Beach Los Angeles 0.032% 0.0260686%
City Maywood Los Angeles 0.004% 0.0035528%
City Monrovia Los Angeles 0.031% 0.0254455%
City Montebello Los Angeles 0.030% 0.0250670%
City Monterey Park Los Angeles 0.031% 0.0256677%
City Norwalk Los Angeles 0.031% 0.0258228%
City Palmdale Los Angeles 0.046% 0.0375827%
City Palos Verdes Estates Los Angeles 0.006% 0.0053102% City Paramount Los Angeles 0.011% 0.0091483%
City Pasadena Los Angeles 0.146% 0.1200524%
City Pico Rivera Los Angeles 0.022% 0.0183333%
City Pomona Los Angeles 0.111% 0.0911933%
City Rancho Palos Verdes Los Angeles 0.002% 0.0012645%
City Redondo Beach Los Angeles 0.062% 0.0506992%
City Rosemead Los Angeles 0.003% 0.0028260%
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 211
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City San Dimas Los Angeles 0.003% 0.0022016%
City San Fernando Los Angeles 0.013% 0.0104837%
City San Gabriel Los Angeles 0.018% 0.0147726%
City San Marino Los Angeles 0.009% 0.0073791%
City Santa Clarita Los Angeles 0.022% 0.0178167%
City Santa Fe Springs Los Angeles 0.031% 0.0257531%
City Santa Monica Los Angeles 0.158% 0.1298513%
City Sierra Madre Los Angeles 0.006% 0.0048646%
City Signal Hill Los Angeles 0.010% 0.0084884%
City South El Monte Los Angeles 0.005% 0.0039603%
City South Gate Los Angeles 0.020% 0.0166272%
City South Pasadena Los Angeles 0.012% 0.0095334%
City Temple City Los Angeles 0.005% 0.0039498%
City Torrance Los Angeles 0.112% 0.0919820%
City Walnut Los Angeles 0.006% 0.0047305%
City West Covina Los Angeles 0.049% 0.0404521%
City West Hollywood Los Angeles 0.013% 0.0108517%
City Whittier Los Angeles 0.032% 0.0260581%
County Madera County Madera 0.349% 0.427% 0.3630669%
City Chowchilla Madera 0.012% 0.0097332%
City Madera Madera 0.039% 0.0318441%
County Marin County Marin 0.564% 0.690% 0.5861325%
City Larkspur Marin 0.015% 0.0124697%
City Mill Valley Marin 0.020% 0.0168401%
City Novato Marin 0.028% 0.0229824%
City San Anselmo Marin 0.009% 0.0078062%
City San Rafael Marin 0.089% 0.0729823%
County Mariposa County Mariposa 0.084% 0.103% 0.0876131% County Mendocino County Mendocino 0.439% 0.536% 0.4558394% City Ukiah Mendocino 0.039% 0.0317153%
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 212
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
County Merced County Merced 0.551% 0.674% 0.5724262%
City Atwater Merced 0.024% 0.0195846%
City Livingston Merced 0.006% 0.0045873%
City Los Banos Merced 0.020% 0.0165142%
City Merced Merced 0.061% 0.0500762%
County Modoc County Modoc 0.065% 0.080% 0.0678250%
County Mono County Mono 0.023% 0.029% 0.0242606%
County Monterey County Monterey 0.908% 1.111% 0.9437083% City Greenfield Monterey 0.006% 0.0050552%
City King City Monterey 0.005% 0.0037355%
City Marina Monterey 0.017% 0.0144098%
City Monterey Monterey 0.041% 0.0336540%
City Pacific Grove Monterey 0.009% 0.0074842%
City Salinas Monterey 0.094% 0.0776576%
City Seaside Monterey 0.023% 0.0191772%
City Soledad Monterey 0.007% 0.0060870%
County Napa County Napa 0.288% 0.352% 0.2994325%
City American Canyon Napa 0.017% 0.0136869%
City Napa Napa 0.078% 0.0642783%
County Nevada County Nevada 0.441% 0.539% 0.4579827%
City Grass Valley Nevada 0.024% 0.0197805%
City Truckee Nevada 0.003% 0.0023843%
County Orange County Orange 4.364% 5.339% 4.5363576%
City Aliso Viejo Orange 0.014% 0.0113841%
City Anaheim Orange 0.554% 0.678% 0.5759282%
City Brea Orange 0.086% 0.0708897%
City Buena Park Orange 0.087% 0.0714352%
City Costa Mesa Orange 0.124% 0.152% 0.1288366%
City Cypress Orange 0.033% 0.0271937%
City Dana Point Orange 0.001% 0.0005560%
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Fountain Valley Orange 0.055% 0.0455980%
City Fullerton Orange 0.137% 0.168% 0.1425744%
City Garden Grove Orange 0.213% 0.1752482%
City Huntington Beach Orange 0.247% 0.302% 0.2568420%
City Irvine Orange 0.139% 0.170% 0.1442350%
City Laguna Beach Orange 0.047% 0.058% 0.0493043%
City Laguna Hills Orange 0.014% 0.0115457%
City Laguna Niguel Orange 0.001% 0.0007071%
City Laguna Woods Orange 0.001% 0.0006546%
City La Habra Orange 0.060% 0.073% 0.0621049%
City Lake Forest Orange 0.012% 0.0101249%
City La Palma Orange 0.012% 0.0095439%
City Los Alamitos Orange 0.008% 0.0069190%
City Mission Viejo Orange 0.014% 0.0117560%
City Newport Beach Orange 0.179% 0.1470134%
City Orange Orange 0.150% 0.1231320%
City Placentia Orange 0.029% 0.035% 0.0298912%
City Rancho Santa Margarita Orange 0.001% 0.0006296%
City San Clemente Orange 0.008% 0.010% 0.0086083%
City San Juan Capistrano Orange 0.008% 0.0065510%
City Santa Ana Orange 0.502% 0.614% 0.5213866%
City Seal Beach Orange 0.020% 0.0165891%
City Stanton Orange 0.035% 0.0291955%
City Tustin Orange 0.073% 0.0600341%
City Westminster Orange 0.104% 0.127% 0.1082721%
City Yorba Linda Orange 0.044% 0.0362223%
County Placer County Placer 1.045% 1.278% 1.0861002%
City Auburn Placer 0.017% 0.0141114%
City Lincoln Placer 0.031% 0.0255599%
City Rocklin Placer 0.076% 0.0625485%
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 214
APPENDIX 1
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Roseville Placer 0.196% 0.1616559%
County Plumas County Plumas 0.205% 0.251% 0.2128729%
County Riverside County Riverside 4.534% 5.547% 4.7128296% City Banning Riverside 0.017% 0.0143848%
City Beaumont Riverside 0.021% 0.0171135%
City Blythe Riverside 0.012% 0.0096714%
City Canyon Lake Riverside 0.000% 0.0001761%
City Cathedral City Riverside 0.067% 0.0553614%
City Coachella Riverside 0.021% 0.0173054%
City Corona Riverside 0.147% 0.1207083%
City Desert Hot Springs Riverside 0.024% 0.0200433%
City Eastvale Riverside 0.000% 0.0002747%
City Hemet Riverside 0.051% 0.0421792%
City Indio Riverside 0.056% 0.0457794%
City Jurupa Valley Riverside 0.001% 0.0008991%
City Lake Elsinore Riverside 0.021% 0.0172949%
City La Quinta Riverside 0.063% 0.0516732%
City Menifee Riverside 0.032% 0.0260909%
City Moreno Valley Riverside 0.137% 0.1130348%
City Murrieta Riverside 0.048% 0.059% 0.0497423%
City Norco Riverside 0.016% 0.0134542%
City Palm Desert Riverside 0.083% 0.0682465%
City Palm Springs Riverside 0.076% 0.0629862%
City Perris Riverside 0.009% 0.0076774%
City Rancho Mirage Riverside 0.052% 0.0431098%
City Riverside Riverside 0.268% 0.2206279%
City San Jacinto Riverside 0.010% 0.0085936%
City Temecula Riverside 0.022% 0.0180086%
City Wildomar Riverside 0.008% 0.0062500%
County Sacramento County Sacramento 3.797% 4.645% 3.9465887% DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 215
APPENDIX 1
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Citrus Heights Sacramento 0.057% 0.0465312%
City Elk Grove Sacramento 0.130% 0.1066994%
City Folsom Sacramento 0.108% 0.0890850%
City Galt Sacramento 0.017% 0.0143704%
City Rancho Cordova Sacramento 0.008% 0.0067679%
City Sacramento Sacramento 0.721% 0.882% 0.7496530%
County San Benito County San Benito 0.106% 0.130% 0.1101417% City Hollister San Benito 0.027% 0.0225355%
County San Bernardino County San Bernardino 3.259% 3.987% 3.3878124% City Adelanto San Bernardino 0.008% 0.0066640%
City Apple Valley San Bernardino 0.025% 0.0207360%
City Barstow San Bernardino 0.015% 0.0122056%
City Chino San Bernardino 0.064% 0.0525893%
City Chino Hills San Bernardino 0.001% 0.0006388%
City Colton San Bernardino 0.031% 0.0253443%
City Fontana San Bernardino 0.112% 0.0920543%
City Grand Terrace San Bernardino 0.006% 0.0051051%
City Hesperia San Bernardino 0.035% 0.0291522%
City Highland San Bernardino 0.004% 0.0029061%
City Loma Linda San Bernardino 0.009% 0.0071188%
City Montclair San Bernardino 0.039% 0.0322108%
City Ontario San Bernardino 0.179% 0.1472934%
City Rancho Cucamonga San Bernardino 0.084% 0.0689431%
City Redlands San Bernardino 0.057% 0.0469150%
City Rialto San Bernardino 0.073% 0.0603206%
City San Bernardino San Bernardino 0.178% 0.1461880%
City Twentynine Palms San Bernardino 0.002% 0.0012605%
City Upland San Bernardino 0.052% 0.0424460%
City Victorville San Bernardino 0.033% 0.0269400%
City Yucaipa San Bernardino 0.016% 0.0128772%
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 216
APPENDIX 1
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Yucca Valley San Bernardino 0.003% 0.0021228%
County San Diego County San Diego 5.706% 6.980% 5.9309748% City Carlsbad San Diego 0.128% 0.1050485%
City Chula Vista San Diego 0.189% 0.231% 0.1961456%
City Coronado San Diego 0.044% 0.0359095%
City El Cajon San Diego 0.113% 0.0933582%
City Encinitas San Diego 0.061% 0.074% 0.0630289%
City Escondido San Diego 0.145% 0.1192204%
City Imperial Beach San Diego 0.014% 0.0118283%
City La Mesa San Diego 0.055% 0.068% 0.0575593%
City Lemon Grove San Diego 0.022% 0.0183911%
City National City San Diego 0.080% 0.0656808%
City Oceanside San Diego 0.213% 0.1753428%
City Poway San Diego 0.062% 0.0511040%
City San Diego San Diego 1.975% 2.416% 2.0531169%
City San Marcos San Diego 0.089% 0.0733897%
City Santee San Diego 0.033% 0.0268401%
City Solana Beach San Diego 0.017% 0.0138564%
City Vista San Diego 0.052% 0.0425144%
Consolidated San Francisco San Francisco 3.026% 3.702% 3.1457169% County San Joaquin County San Joaquin 1.680% 2.055% 1.7460399% City Lathrop San Joaquin 0.009% 0.0075394%
City Lodi San Joaquin 0.053% 0.0439484%
City Manteca San Joaquin 0.054% 0.0443454%
City Ripon San Joaquin 0.013% 0.0104219%
City Stockton San Joaquin 0.313% 0.383% 0.3256176%
City Tracy San Joaquin 0.084% 0.0692047%
County San Luis Obispo County San Luis Obispo 0.816% 0.999% 0.8484126% City Arroyo Grande San Luis Obispo 0.024% 0.0199053%
City Atascadero San Luis Obispo 0.029% 0.0240680%
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 217
APPENDIX 1
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City El Paso de Robles (Paso Robles) San Luis Obispo 0.043% 0.0353456% City Grover Beach San Luis Obispo 0.017% 0.0137881%
City Morro Bay San Luis Obispo 0.020% 0.0160922%
City San Luis Obispo San Luis Obispo 0.077% 0.0637841%
County San Mateo County San Mateo 1.074% 1.313% 1.1159599% City Belmont San Mateo 0.021% 0.0169860%
City Burlingame San Mateo 0.019% 0.0152537%
City Daly City San Mateo 0.044% 0.0363880%
City East Palo Alto San Mateo 0.013% 0.0103982%
City Foster City San Mateo 0.020% 0.0166101%
City Half Moon Bay San Mateo 0.004% 0.0031638%
City Hillsborough San Mateo 0.013% 0.0110029%
City Menlo Park San Mateo 0.015% 0.0126209%
City Millbrae San Mateo 0.013% 0.0105836%
City Pacifica San Mateo 0.016% 0.0130625%
City Redwood City San Mateo 0.056% 0.0463511%
City San Bruno San Mateo 0.021% 0.0172161%
City San Carlos San Mateo 0.013% 0.0108885%
City San Mateo San Mateo 0.052% 0.0425841%
City South San Francisco San Mateo 0.043% 0.0353943%
County Santa Barbara County Santa Barbara 1.132% 1.385% 1.1768968% City Carpinteria Santa Barbara 0.001% 0.0008938%
City Goleta Santa Barbara 0.004% 0.0028969%
City Lompoc Santa Barbara 0.047% 0.0389379%
City Santa Barbara Santa Barbara 0.122% 0.1004559%
City Santa Maria Santa Barbara 0.058% 0.0479179%
County Santa Clara County Santa Clara 2.404% 2.941% 2.4987553% City Campbell Santa Clara 0.014% 0.0112566%
City Cupertino Santa Clara 0.008% 0.0066824%
City Gilroy Santa Clara 0.025% 0.0202891%
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 218
APPENDIX 1
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Los Altos Santa Clara 0.013% 0.0103338%
City Los Gatos Santa Clara 0.013% 0.0103220%
City Milpitas Santa Clara 0.036% 0.0298120%
City Morgan Hill Santa Clara 0.015% 0.0124619%
City Mountain View Santa Clara 0.041% 0.0334608%
City Palo Alto Santa Clara 0.039% 0.0323080%
City San Jose Santa Clara 0.294% 0.360% 0.3054960%
City Santa Clara Santa Clara 0.067% 0.0549723%
City Saratoga Santa Clara 0.004% 0.0034161%
City Sunnyvale Santa Clara 0.053% 0.0434069%
County Santa Cruz County Santa Cruz 0.783% 0.957% 0.8135396% City Capitola Santa Cruz 0.020% 0.0168191%
City Santa Cruz Santa Cruz 0.143% 0.1180348%
City Scotts Valley Santa Cruz 0.015% 0.0126525%
City Watsonville Santa Cruz 0.063% 0.0520136%
County Shasta County Shasta 1.095% 1.339% 1.1380191%
City Anderson Shasta 0.024% 0.0198896%
City Redding Shasta 0.284% 0.2334841%
City Shasta Lake Shasta 0.004% 0.0031993%
County Siskiyou County Siskiyou 0.228% 0.279% 0.2373393% County Solano County Solano 0.760% 0.6260795%
City Benicia Solano 0.031% 0.0253903%
City Dixon Solano 0.016% 0.0130849%
City Fairfield Solano 0.109% 0.0897317%
City Suisun City Solano 0.021% 0.0176183%
City Vacaville Solano 0.119% 0.0976497%
City Vallejo Solano 0.167% 0.1373644%
County Sonoma County Sonoma 1.218% 1.490% 1.2661290%
City Healdsburg Sonoma 0.032% 0.0266929%
City Petaluma Sonoma 0.081% 0.0667507%
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 219
APPENDIX 1
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Rohnert Park Sonoma 0.041% 0.0340759%
City Santa Rosa Sonoma 0.184% 0.1519070%
City Sonoma Sonoma 0.022% 0.0183438%
City Windsor Sonoma 0.016% 0.0129298%
County Stanislaus County Stanislaus 1.722% 1.4182273%
City Ceres Stanislaus 0.041% 0.0340260%
City Modesto Stanislaus 0.217% 0.1788759%
City Newman Stanislaus 0.006% 0.0046964%
City Oakdale Stanislaus 0.018% 0.0145531%
City Patterson Stanislaus 0.015% 0.0126590%
City Riverbank Stanislaus 0.010% 0.0085699%
City Turlock Stanislaus 0.065% 0.0531966%
County Sutter County Sutter 0.306% 0.374% 0.3179548%
City Yuba City Sutter 0.074% 0.0606242%
County Tehama County Tehama 0.213% 0.261% 0.2216654%
City Red Bluff Tehama 0.014% 0.0117771%
County Trinity County Trinity 0.082% 0.101% 0.0855476%
County Tulare County Tulare 0.809% 0.990% 0.8410949%
City Dinuba Tulare 0.014% 0.0116929%
City Exeter Tulare 0.004% 0.0032479%
City Farmersville Tulare 0.003% 0.0027879%
City Lindsay Tulare 0.007% 0.0057111%
City Porterville Tulare 0.021% 0.0171845%
City Tulare Tulare 0.037% 0.0302273%
City Visalia Tulare 0.066% 0.0545872%
County Tuolumne County Tuolumne 0.486% 0.594% 0.5047621% County Ventura County Ventura 2.192% 2.681% 2.2781201%
City Camarillo Ventura 0.002% 0.0012815%
City Fillmore Ventura 0.002% 0.0020294%
City Moorpark Ventura 0.008% 0.0067337%
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 220
APPENDIX 1
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Oxnard Ventura 0.156% 0.190% 0.1617338%
City Port Hueneme Ventura 0.021% 0.0174145%
City San Buenaventura (Ventura) Ventura 0.085% 0.0702181% City Santa Paula Ventura 0.014% 0.0119072%
City Simi Valley Ventura 0.065% 0.0533043%
City Thousand Oaks Ventura 0.022% 0.0179902%
County Yolo County Yolo 0.357% 0.437% 0.3713319%
City Davis Yolo 0.055% 0.0451747%
City West Sacramento Yolo 0.066% 0.0544321%
City Woodland Yolo 0.058% 0.0477904%
County Yuba County Yuba 0.214% 0.262% 0.2225679%
City Marysville Yuba 0.014% 0.0112079%
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 221
1 6
APPENDIX 2
Cost Reimbursement Procedure

Costs does not include attorneys’ fees, costs, or expenses incurred by private contingency fee counsel. No part of the CA Abatement Accounts Fund will be used to reimburse Costs.
b) First Claims Date means October 1, 2023 or when all applications for reimbursement of Costs, in whole or in part, from funds available under Section X and Exhibit R of the CVS Settlement Agreement, Section XIV and Exhibit R of the Teva Settlement Agreement, Section XIII and Exhibit R of the Allergan Settlement Agreement, Section X and Exhibit R of the Distributor Settlement Agreement, Section XI and Exhibit R of the Janssen Settlement Agreement, Section IX and Exhibit R of the Walgreens Settlement Agreement, or Section IX and Exhibit R of the Walmart Settlement Agreement, have been finally determined under the provisions of those agreements, whichever comes first.
c) Special Master means a retired judicial officer or former public lawyer, not presently employed or retained by a Plaintiff Subdivision, who will aggregate, review, and determine the reasonable Costs to be awarded to each Plaintiff Subdivision that submits a claim for reimbursement of Costs. The Special Master will be selected by a majority vote of the votes cast by Plaintiff Subdivisions, with each such subdivision having one vote. d) Plaintiff Subdivision Committee means the committee of Plaintiff Subdivisions that will review and approve the invoices submitted by the Special Master reflecting his or her reasonable time and expenses.

2. Cost Reimbursement to Plaintiff Subdivision
a) Purpose. Substantial resources have been expended to hold Opioid Defendants accountable for creating and profiting from the opioid crisis, and this effort has been a significant catalyst in creating National Opioid Settlements with various manufacturers, distributors, and chain pharmacies.
b) Claims Procedure.
i. If a Plaintiff Subdivision is eligible to seek reimbursement of Costs, in whole or in part, from funds available under Section X and Exhibit R of the CVS Settlement DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 222
1 7
Agreement, Section XIV and Exhibit R of the Teva Settlement Agreement, Section XIII and Exhibit R of the Allergan Settlement Agreement, Section IX and Exhibit R of the Walgreens Settlement Agreement, Section IX and Exhibit R of the Walmart Settlement Agreement, Section X or Exhibit R of the Distributor Settlement Agreement, or Section XI or Exhibit R of the Janssen Settlement Agreement, it must first make a timely application for reimbursement from such funds. To allow sufficient time for determination of those applications, no claim for Costs to the CA Subdivision Fund under this Agreement may be made before the First Claims Date. ii. A Plaintiff Subdivision that wishes to be reimbursed from the CA Subdivision Fund must submit a claim to the Special Master no later than forty-five (45) days after the First Claims Date. The Special Master will then compile and redistribute the aggregated claim totals for each Plaintiff Subdivision via email to representatives of all the Plaintiff Subdivisions. A claim for attorney and staff time must list, for each attorney or staff member included in the claim, the following information: name, title, total hours claimed, hourly rate (including, if sought, benefits and share of overhead), and narrative summarizing the general nature of the work performed by the attorney or staff member. For reimbursement of “hard” costs, the subdivision may aggregate across a category (e.g., total for travel costs). It is the intention of the Plaintiff Subdivisions that submission of documents related to reimbursement of Costs does not waive any attorney-client privilege or exemptions to the California Public Records Act.
iii. The Special Master may request, at his or her sole option, additional documents or details to assist in the final award of Costs.
iv. The Special Master will review claims for reasonableness and will notify each Plaintiff Subdivision of the final determination of its claim, and will provide a list of all final awards to all Plaintiff Subdivisions by email or, upon request, via First Class U.S. Mail. Any Plaintiff Subdivision may ask the Special Master to reconsider any final award within twenty-one (21) days. The Special Master will make a final determination on any such reconsideration request within thirty (30) days of receipt.
v. Any decision of the Special Master is final and binding, and will be considered under the California Arbitration Act, Code of Civil Procedure section 1280 et seq. as a final arbitration award. Nothing in this agreement is intended to expand the scope of judicial review of the final award for errors of fact or law, and the Parties agree that they may only seek to vacate the award if clear and convincing evidence demonstrates one of the factors set forth in Code of Civil Procedure, section 1286.2, subdivision (a). Plaintiff Subdivisions will have fourteen (14) days after all final awards are made, together with any final determination of a request for DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 223
1 8
reconsideration, to seek review in the Superior Court of California, pursuant to Code of Civil Procedure, section 1285, where the State has filed its Consent Judgment. vi. The Special Master will prepare a report of Costs that includes his or her fees and expenses at least ninety (90) days before the Payment Date for each Annual Payment. The Special Master’s preparation of a report of Costs does not discharge a Plaintiff Subdivision’s reporting requirement under Section V(B)(2) of the CVS Settlement Agreement.
vii. A member of the Plaintiff Subdivision Committee, which is a CA Participating Subdivision, will submit to the Settlement Fund Administrator and CVS a report of the fees and expenses incurred by the Special Master pursuant to Section V(B)(2) of the CVS Settlement Agreement.
c) Claims Priority and Limitation.
i. The Special Master will submit invoices for compensation of reasonable fees and expenses to the Plaintiff Subdivision Committee no later than ninety (90) days prior to the Payment Date for each Annual Payment. The Plaintiff Subdivision Committee will promptly review and, if reasonable, approve the Special Master’s invoice for compensation. The Plaintiff Subdivision Committee will submit approved invoices to the Settlement Fund Administrator for payment. The Special Master’s approved invoices have priority and will be paid first from the CA Subdivision Fund before any award of Costs, subject to the limitation in Section

DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 224
1 9
d) Collateral Source Payments and Third-Party Settlement. i. In the event a Plaintiff Subdivision is awarded compensation, in whole or in part, by any source of funds created as a result of litigation against an Opioid Defendant for its reasonable Costs, it will reduce its claim for Costs from the CA Subdivision Fund by that amount. If a Plaintiff Subdivision has already received a final award of Costs from the CA Subdivision Fund, it will repay the fund up to the prior award of Costs via a payment to the Settlement Fund Administrator or notify the Settlement Fund Administrator that its allocation from the next and subsequent Annual Payments should be reduced accordingly. If the Plaintiff Subdivision is repaying any prior award of Costs, that repayment will occur as soon as is feasible after the Plaintiff Subdivision’s receipt of Cost funds from the collateral source, but no more than 90 days after its receipt from the collateral source. The Settlement Fund Administrator will add any repaid Costs to the CA Subdivision Fund. Any Plaintiff Subdivision that has submitted for reimbursement to any national fund and has not received a final determination by the First Claims Date may request that the settlement administrator withhold some or all of its payment from the CA Subdivision Fund in order to avoid repayment.
ii. In the event a Plaintiff Subdivision reaches a monetary settlement or compromise against any Opioid Defendant outside of the National Opioid Settlement, the monetary portion of such settlement, net of fees paid to outside contingency fee counsel and of funds earmarked strictly for abatement, will be credited against its Costs and the subdivision will be ineligible to recover those credited Costs from the CA Subdivision Fund. Plaintiff Subdivisions negotiating monetary settlements or compromises against any Opioid Defendant outside of the National Opioid Settlement will negotiate for funds to repay any Costs it previously received from the CA Subdivision Fund or for Costs it otherwise might be eligible to claim from the CA Subdivision Fund. If such a settlement is paid after all final approved claims for Costs by all Plaintiff Subdivisions are satisfied in full, the settling subdivision will reimburse the CA Subdivision Fund in that amount by making payment to the Settlement Fund Administrator to add to the CA Subdivision Fund in a manner consistent with the repayments described in section 2.d.i above.

DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 225
1 APPENDIX 3

Pursuant to this Backstop Agreement, [SUBDIVISION] may, subject to the limitations of the CVS Settlement Agreement and CA CVS Allocation Agreement, as well as any other limitations imposed by law, use funds that it receives from the CVS Settlement CA Subdivision Fund to pay a contingent fee to [COUNSEL]. Any such payment from [SUBDIVISION] to [COUNSEL], together with any contingency fees that [COUNSEL] may receive from the national Attorney Fee Fund, will not exceed a total contingency fee of [PERCENTAGE NOT TO EXCEED 15%] of the total gross recovery of [SUBDIVISION] from the CVS Settlement. [COUNSEL] certify that they first sought fees and costs from the Attorney Fee Fund created under the CVS Settlement Agreement before seeking or accepting payment under this backstop agreement. [COUNSEL] further certify that they are not seeking and will not accept payment under this backstop agreement of any litigation fees or costs that have been reimbursed through prior settlements or judgments.

The Attorney General is executing this agreement solely because the definition of “State BackStop Agreement” in Exhibit R of the CVS Settlement Agreement requires such agreements to be between “a Settling State” and private counsel for a participating subdivision. Neither the California Attorney General nor the State of California have any obligations under this Backstop Agreement, and this Backstop Agreement does not require the payment of any state funds to [SUBDIVISION], [COUNSEL], or any other party.
[DATE] [SUBDIVISION SIGNATURE BLOCK]
[DATE] [COUNSEL SIGNATURE BLOCK]
[DATE] [ATTORNEY GENERAL SIGNATURE BLOCK]
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 226
1 Proposed California State-Subdivision Agreement
Regarding Distribution and Use of
Settlement Funds – Walgreens Settlement

1. Introduction
Pursuant to the Walgreens Settlement Agreement, dated as of December 9, 2022, and any revision thereto (the “Walgreens Settlement Agreement”), including Section V and Exhibit O, the State of California proposes this agreement (the “CA Walgreens Allocation Agreement”) to govern the allocation, distribution, and use of Settlement Fund payments made to California pursuant to Sections IV and V of the Walgreens Settlement Agreement. For the avoidance of doubt, this agreement does not apply to payments made pursuant to Section IX of the Walgreens Settlement Agreement.

Pursuant to Exhibit O, Paragraph 4, of the Walgreens Settlement Agreement, acceptance of this CA Walgreens Allocation Agreement is a requirement to be an Initial Participating Subdivision.

2. Definitions
a) CA Participating Subdivision means a Participating Subdivision that is also (a) a Plaintiff Subdivision and/or (b) a Primary Subdivision with a population equal to or greater than 10,000. For the avoidance of doubt, eligible CA Participating Subdivisions are those California subdivisions listed in Exhibit C (excluding Litigating Special Districts) and/or Exhibit I to the Walgreens Settlement Agreement.
b) Allergan Settlement Agreement means the Allergan Settlement Agreement dated November 22, 2022, and any revision thereto.
c) CVS Settlement Agreement means the CVS Settlement Agreement dated December 9, 2022, and any revision thereto as well as any modification thereto entered into by the State of California and CVS.
d) Distributor Settlement Agreement means the Distributor Settlement Agreement dated July 21, 2021, and any revision thereto.
e) Janssen Settlement Agreement means the Janssen Settlement Agreement dated July 21, 2021, and any revision thereto.
f) Teva Settlement Agreement means the Teva Settlement Agreement dated November 22, 2022, and any revision thereto.
g) Walmart Settlement Agreement means the Walmart Settlement Agreement dated November 14, 2022, and any revision thereto.
h) CA Litigating Special District means a Litigating Special District located in California. CA Litigating Special Districts include Downey Unified School District, Elk Grove Unified School District, Kern High School District, Montezuma Fire Protection District (located in Stockton, California), Santa Barbara San Luis Obispo Regional Health Authority, Inland Empire Health Plan, Health Plan of San Joaquin, San Leandro Unified School District, DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 227
2 Pleasant Valley School District Board, and LA Care Health Plan. i) Plaintiff Subdivision means a Subdivision located in California, other than a CA Litigating Special District, that filed a lawsuit, on behalf of the Subdivision and/or through an official of the Subdivision on behalf of the People of the State of California, against one or more Opioid Defendants prior to October 1, 2020. j) Opioid Defendant means any defendant (including but not limited to Walgreen Co., Teva Pharmaceutical Industries Ltd., Allergan Finance, LLC, Allergan Limited, CVS Health Corporation, CVS Pharmacy, Inc., Walmart Inc., Johnson & Johnson, Janssen Pharmaceuticals, Inc., Purdue Pharma L.P., Cardinal Health, Inc., AmerisourceBergen Corporation, and McKesson Corporation) named in a lawsuit seeking damages, abatement, or other remedies related to or caused by the opioid public health crisis in any lawsuit brought by any state or local government on or before October 1, 2020.

3. General Terms
This agreement is subject to the requirements of the Walgreens Settlement Agreement, as well as applicable law, and the Walgreens Settlement Agreement governs over any inconsistent provision of this CA Walgreens Allocation Agreement. Terms used in this CA Walgreens Allocation Agreement have the same meaning as in the Walgreens Settlement Agreement unless otherwise defined herein.

Pursuant to Section V(D)(1) of the Walgreens Settlement Agreement, (a) all Settlement Fund payments will be used for Opioid Remediation, except as allowed by Section V(B)(2) of the Walgreens Settlement Agreement; and (b) at least seventy percent (70%) of Settlement Fund payment amounts will be used solely for future Opioid Remediation.

4. State Allocation
The Settlement Fund payments to California,1pursuant to the Walgreens Settlement Agreement, shall be allocated as follows: 15% to the State Fund; 70% to the Abatement Accounts Fund; and 15% to the Subdivision Fund. For the avoidance of doubt, all funds allocated to California from the Settlement Fund shall be combined pursuant to this CA Walgreens Allocation Agreement, and 15% of that total shall be allocated to the State of California (the “State of California Allocation”), 70% to the California Abatement Accounts Fund (“CA Abatement Accounts Fund”), and 15% to the California Subdivision Fund (“CA Subdivision Fund”). 1 For purposes of clarity, use of the term “California” refers to the geographic territory of California and the state and its local governments therein. The term “State” or “State of California” refers to the State of California as a governmental unit.

DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 228
3 A. State of California Allocation
Fifteen percent of the total Settlement Fund payments will be allocated to the State and used by the State for future Opioid Remediation.

DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 229
4 e) The State will receive the Local Allocation share of any payment to the Settlement Fund that is attributable to a county or city that is eligible to become a CA Participating Subdivision, but that has not, as of the date of that payment to the Settlement Fund, become a Participating Subdivision.
f) Funds received by a CA Participating Subdivision, and not expended or encumbered within five years of receipt and in accordance with the Walgreens Settlement Agreement and this CA Walgreens Allocation Agreement shall be transferred to the State; provided however, that CA Participating Subdivisions have seven years to expend or encumber CA Abatement Accounts Funds designated to support capital outlay projects before they must be transferred to the State. This provision shall not apply to the Cost Reimbursement Funds, which shall be controlled by Appendix 2.
ii. Use of CA Abatement Accounts Funds
a) The CA Abatement Accounts Funds will be used for future Opioid Remediation in one or more of the areas described in the List of Opioid Remediation Uses, which is Exhibit E to the Walgreens Settlement Agreement.
b) In addition to this requirement, no less than 50% of the funds received by a CA Participating Subdivision from the Abatement Accounts Fund in each calendar year will be used for one or more of the following High Impact Abatement Activities:
(1) the provision of matching funds or operating costs for substance use disorder facilities within the Behavioral Health Continuum Infrastructure Program; (2) creating new or expanded Substance Use Disorder (“SUD”) treatment infrastructure; (3) addressing the needs of communities of color and vulnerable populations (including sheltered and unsheltered homeless populations) that are disproportionately impacted by SUD;
(4) diversion of people with SUD from the justice system into treatment, including by providing training and resources to first and early responders (sworn and non-sworn) and implementing best practices for outreach, diversion and deflection, employability, restorative justice, and harm reduction; and/or (5) interventions to prevent drug addiction in vulnerable youth. c) The California Department of Health Care Services (“DHCS”) may add to this list (but not delete from it) by designating additional High Impact Abatement Activities. DHCS will make reasonable efforts to consult with stakeholders, including the CA Participating Subdivisions, before adding additional High Impact Abatement Activities to this list.
d) For the avoidance of doubt, and subject to the requirements of the Walgreens Settlement Agreement and applicable law, CA Participating Subdivisions may form agreements or
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 230
5 ventures, or otherwise work in collaboration with, federal, state, local, tribal or private sector entities in pursuing Opioid Remediation activities funded from the CA Abatement Accounts Fund. Further, provided that all CA Abatement Accounts Funds are used for Opioid Remediation consistent with the Walgreens Settlement Agreement and this CA Walgreens Allocation Agreement, a county and any cities or towns within the county may agree to reallocate their respective shares of the CA Abatement Accounts Funds among themselves, provided that any direct distribution may only be to a CA Participating Subdivision and any CA Participating Subdivision must agree to their share being reallocated.
iii. CA Abatement Accounts Fund Oversight
a) Pursuant to Section 5 below, CA Participating Subdivisions receiving settlement funds must prepare and file reports annually regarding the use of those funds. DHCS may regularly review the reports prepared by CA Participating Subdivisions about the use of CA Abatement Accounts Funds for compliance with the Walgreens Settlement Agreement and this CA Walgreens Allocation Agreement.
b) If DHCS determines that a CA Participating Subdivision’s use of CA Abatement Accounts Funds is inconsistent with the Walgreens Settlement Agreement or this CA Walgreens Allocation Agreement, whether through review of reports or information from any other sources, DHCS shall send a request to meet and confer with the CA Participating Subdivision. The parties shall meet and confer in an effort to resolve the concern.
c) If the parties are unable to reach a resolution, DHCS may conduct an audit of the Subdivision’s use of the CA Abatement Accounts Funds within one year of the request to meet and confer, unless the parties mutually agree in writing to extend the meet and confer time frame.
d) If the concern still cannot be resolved, the State may bring a motion or action in the court where the State has filed its Consent Judgment to resolve the concern or otherwise enforce the requirements of the Walgreens Settlement Agreement or this CA Walgreens Allocation Agreement. However, in no case shall any audit be conducted, or motion be brought, as to a specific expenditure of funds, more than five years after the date on which the expenditure of the funds was reported to DHCS, in accordance with this agreement.
e) Notwithstanding the foregoing, this Agreement does not limit the statutory or constitutional authority of any state or local agency or official to conduct audits, investigations, or other oversight activities, or to pursue administrative, civil, or criminal enforcement actions.

DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 231
6 C. CA Subdivision Fund
i. Fifteen percent of the total Settlement Fund payments will be allocated to the CA Subdivision Fund. All funds in the CA Subdivision Fund will be allocated among the Plaintiff Subdivisions that are Initial Participating Subdivisions. The funds will be used, subject to any limits imposed by the Walgreens Settlement Agreement and this CA Walgreens Allocation Agreement, to fund future Opioid Remediation and reimburse past opioid-related expenses, which may include fees and expenses related to litigation, and to pay the reasonable fees and expenses of the Special Master as set forth in Appendix 2.

D. Provision for State Back-Stop Agreement
On August 6, 2021, Judge Dan Polster of the U.S. District Court, Northern District of Ohio, Eastern Division, issued an order (ECF Docket Number 3814) (“MDL Fees Order”) in the National Prescription Opiate Litigation (MDL No. 2804) “cap[ping] all applicable contingent fee agreements at 15%.” Private counsel representing Plaintiff Subdivisions should seek its contingency fees and costs from the Attorney Fee Fund or Cost Funds under the Walgreens Settlement Agreement, and, if applicable, the Teva Settlement Agreement, Allergan Settlement Agreement, CVS Settlement Agreement, Distributor Settlement Agreement, Janssen Settlement Agreement, and Walmart Settlement Agreement.

Before seeking fees or litigation costs and expenses from a State Back-Stop Agreement, private counsel representing Plaintiff Subdivisions must first seek contingency fees and costs from the Attorney Fee Fund or Cost Funds created under the Walgreens Settlement Agreement. Further, DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 232
7 private counsel may only seek reimbursement for litigation fees and costs that have not previously been reimbursed through prior settlements or judgments.

5. State and Subdivision Reporting
a) DHCS will prepare an annual written report regarding the State’s use of funds from the settlement until those funds are fully expended and for one year thereafter. These reports will be made publicly available on the DHCS web site.
b) Each CA Participating Subdivision that receives payments of funds from the settlement will prepare written reports at least annually regarding the use of those funds, until those funds are fully expended and for one year thereafter. These reports will also include a certification that all funds that the CA Participating Subdivision has received through the settlement have been used in compliance with the Walgreens Settlement Agreement and this CA Walgreens Allocation Agreement. The report will be in a form reasonably determined by DHCS. Prior to specifying the form of the report DHCS will confer with representatives of the Plaintiff Subdivisions.
c) The State and all CA Participating Subdivisions receiving CA Abatement Accounts Funds will track all deposits and expenditures. Each such subdivision is responsible solely for the CA Abatement Accounts Funds it receives. A county is not responsible for oversight, reporting, or monitoring of CA Abatement Accounts Funds received by a city within that county that receives direct payment. Unless otherwise exempt, Subdivisions’ expenditures and uses of CA Abatement Accounts Funds and other Settlement Funds will be subject to the normal budgetary and expenditure process of the Subdivision. d) Each Plaintiff Subdivision receiving CA Subdivision Funds will track all deposits and expenditures, as required by the Walgreens Settlement Agreement and this CA Walgreens Allocation Agreement. Among other things, Plaintiff Subdivisions using monies from the CA Subdivision Fund for purposes that do not qualify as Opioid Remediation must identify and include in their annual report, the amount and how such funds were used, including if used to pay attorneys’ fees, investigation costs, or litigation costs. Pursuant to Section V(B)(2) of the Walgreens Settlement Agreement, such information must also be reported to the Settlement Fund Administrator and Walgreens.

DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 233
8 e) In each year in which DHCS prepares an annual report DHCS will also host a meeting to discuss the annual report and the Opioid Remediation activities being carried out by the State and Participating Subdivisions.

6. Miscellaneous
a) The State or any CA Participating Subdivision may bring a motion or action in the court where the State has filed its Consent Judgment to enforce the requirements of this CA Walgreens Allocation Agreement. Before filing such a motion or action the State will meet and confer with any CA Participating Subdivision that is the subject of the anticipated motion or action, and vice versa.
b) Except as provided in the Walgreens Settlement Agreement, this CA Walgreens Allocation Agreement is not enforceable by any party other than the State and the CA Participating Subdivisions. It does not confer any rights or remedies upon, and shall not be enforceable by, any third party.
c) Except as provided in the CA Walgreens Allocation Agreement, if any provision of this agreement or the application thereof to any person, entity, or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this agreement, or the application of such provision to persons, entities, or circumstances other than those as to which it is invalid or unenforceable, will not be affected thereby, and each other provision of this agreement will be valid and enforceable to the fullest extent permitted by law. d) Except as provided in the Walgreens Settlement Agreement, this agreement shall be governed by and interpreted in accordance with the laws of California.

DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 234
9 The undersigned, Adelanto city, ACKNOWLEDGES acceptance of this Proposed California StateSubdivision Agreement Regarding Distribution and Use of Settlement Funds – Walgreens Settlement is a requirement to be an Initial Participating Subdivision in the Walgreens Settlement and ACCEPTS this Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds – Walgreens Settlement. EXECUTED on /date_1_walgreens/.

Signature: /signer_1_teva_allergan/
Name: /name_1_teva_allergan/
Title: /title_1_teva_allergan/
Date: /date_1_walgreens/
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 Jessie Flores
City Manager
April 12, 2023
235
APPENDIX 1
DISCLAIMER: The allocation percentages herein are estimates only and should not be relied on for decisions regarding legal rights, releases, waivers, or other decisions affecting current or potential legal claims. Percentages shown in the Plaintiff Subdivision Percentage column may change pursuant to Section 4.C. of the California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds—Walgreens Settlement, whereas the percentages shown in the Abatement Percentage column should not change. Participating Subdivisions, underlying calculations, and the calculated allocation percentages are subject to change.

DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 236
APPENDIX 1
1 of 15
100.000% 100.000% 100.000%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
County Alameda County Alameda 2.332% 2.853% 2.4237952%
City Alameda Alameda 0.069% 0.0570162%
City Albany Alameda 0.013% 0.0107768%
City Berkeley Alameda 0.152% 0.1249656%
City Dublin Alameda 0.033% 0.040% 0.0338810%
City Emeryville Alameda 0.023% 0.0185765%
City Fremont Alameda 0.108% 0.0888576%
City Hayward Alameda 0.117% 0.0966218%
City Livermore Alameda 0.054% 0.0446740%
City Newark Alameda 0.026% 0.0217626%
City Oakland Alameda 0.486% 0.595% 0.5055601%
City Piedmont Alameda 0.014% 0.0114064%
City Pleasanton Alameda 0.067% 0.0554547%
City San Leandro Alameda 0.039% 0.0321267%
City Union City Alameda 0.043% 0.0352484%
County Amador County Amador 0.226% 0.277% 0.2349885%
County Butte County Butte 1.615% 1.975% 1.6783178%
City Chico Butte 0.216% 0.264% 0.2246499%
City Oroville Butte 0.079% 0.0646595%
County Calaveras County Calaveras 0.226% 0.277% 0.2351644% County Colusa County Colusa 0.059% 0.0489221%
County Contra Costa County Contra Costa 2.102% 2.571% 2.1844585% City Antioch Contra Costa 0.037% 0.0301879%
City Brentwood Contra Costa 0.026% 0.0215339%
City Clayton Contra Costa 0.002% 0.0018060%
City Concord Contra Costa 0.055% 0.0456676%
City Danville Contra Costa 0.010% 0.0082255%
City El Cerrito Contra Costa 0.023% 0.0189024%
City Hercules Contra Costa 0.010% 0.0078273%
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 237
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Lafayette Contra Costa 0.006% 0.0046030%
City Martinez Contra Costa 0.012% 0.0098593%
City Moraga Contra Costa 0.004% 0.0031007%
City Oakley Contra Costa 0.010% 0.0079416%
City Orinda Contra Costa 0.005% 0.0038157%
City Pinole Contra Costa 0.013% 0.0110909%
City Pittsburg Contra Costa 0.053% 0.0436369%
City Pleasant Hill Contra Costa 0.013% 0.0106309%
City Richmond Contra Costa 0.146% 0.1201444%
City San Pablo Contra Costa 0.018% 0.0148843%
City San Ramon Contra Costa 0.021% 0.0176459%
City Walnut Creek Contra Costa 0.026% 0.0212132%
County Del Norte County Del Norte 0.114% 0.140% 0.1189608% County El Dorado County El Dorado 0.768% 0.939% 0.7980034% City Placerville El Dorado 0.015% 0.0127642%
City South Lake Tahoe El Dorado 0.081% 0.0665456%
County Fresno County Fresno 1.895% 2.318% 1.9693410%
City Clovis Fresno 0.065% 0.0536211%
City Coalinga Fresno 0.012% 0.0098554%
City Fresno Fresno 0.397% 0.3270605%
City Kerman Fresno 0.005% 0.0042534%
City Kingsburg Fresno 0.008% 0.0066167%
City Mendota Fresno 0.002% 0.0019387%
City Orange Cove Fresno 0.004% 0.0035607%
City Parlier Fresno 0.008% 0.0069755%
City Reedley Fresno 0.012% 0.0098804%
City Sanger Fresno 0.018% 0.0146135%
City Selma Fresno 0.015% 0.0127537%
County Glenn County Glenn 0.107% 0.131% 0.1116978%
County Humboldt County Humboldt 1.030% 1.260% 1.0703185% DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 238
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Arcata Humboldt 0.054% 0.0447660%
City Eureka Humboldt 0.117% 0.143% 0.1216284%
City Fortuna Humboldt 0.032% 0.0266837%
County Imperial County Imperial 0.258% 0.315% 0.2679006% City Brawley Imperial 0.011% 0.0087986%
City Calexico Imperial 0.019% 0.0152799%
City El Centro Imperial 0.158% 0.1302522%
City Imperial Imperial 0.006% 0.0048791%
County Inyo County Inyo 0.073% 0.089% 0.0754413%
County Kern County Kern 2.517% 3.079% 2.6159145%
City Arvin Kern 0.006% 0.0046425%
City Bakersfield Kern 0.212% 0.1747198%
City California City Kern 0.009% 0.0070820%
City Delano Kern 0.030% 0.0249316%
City McFarland Kern 0.003% 0.0025644%
City Ridgecrest Kern 0.015% 0.0120938%
City Shafter Kern 0.013% 0.0103417%
City Tehachapi Kern 0.009% 0.0073580%
City Wasco Kern 0.008% 0.0069861%
County Kings County Kings 0.293% 0.2413469%
City Avenal Kings 0.007% 0.0056335%
City Corcoran Kings 0.013% 0.0107032%
City Hanford Kings 0.027% 0.0226038%
City Lemoore Kings 0.016% 0.0131900%
County Lake County Lake 0.795% 0.6545389%
City Clearlake Lake 0.041% 0.050% 0.0426253%
City Lakeport Lake 0.021% 0.026% 0.0222964%
County Lassen County Lassen 0.319% 0.391% 0.3320610%
City Susanville Lassen 0.027% 0.0219295%
County Los Angeles County Los Angeles 13.896% 16.999% 14.4437559% DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 239
APPENDIX 1
4 of 15
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Agoura Hills Los Angeles 0.005% 0.0040024%
City Alhambra Los Angeles 0.042% 0.0343309%
City Arcadia Los Angeles 0.033% 0.0267718%
City Artesia Los Angeles 0.001% 0.0005100%
City Azusa Los Angeles 0.026% 0.0210857%
City Baldwin Park Los Angeles 0.027% 0.0218520%
City Bell Los Angeles 0.008% 0.0068783%
City Bellflower Los Angeles 0.002% 0.0014485%
City Bell Gardens Los Angeles 0.014% 0.0114301%
City Beverly Hills Los Angeles 0.065% 0.0534897%
City Burbank Los Angeles 0.100% 0.0823132%
City Calabasas Los Angeles 0.006% 0.0048948%
City Carson Los Angeles 0.019% 0.0159805%
City Cerritos Los Angeles 0.005% 0.0039682%
City Claremont Los Angeles 0.010% 0.0082584%
City Commerce Los Angeles 0.000% 0.0002971%
City Compton Los Angeles 0.044% 0.0361882%
City Covina Los Angeles 0.028% 0.0229127%
City Cudahy Los Angeles 0.001% 0.0006020%
City Culver City Los Angeles 0.055% 0.0449894%
City Diamond Bar Los Angeles 0.001% 0.0006993%
City Downey Los Angeles 0.052% 0.0429994%
City Duarte Los Angeles 0.003% 0.0027261%
City El Monte Los Angeles 0.031% 0.038% 0.0318985%
City El Segundo Los Angeles 0.033% 0.0268020%
City Gardena Los Angeles 0.034% 0.0278088%
City Glendale Los Angeles 0.166% 0.1366586%
City Glendora Los Angeles 0.016% 0.0134411%
City Hawaiian Gardens Los Angeles 0.005% 0.0040549%
City Hawthorne Los Angeles 0.050% 0.0407833%
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 240
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5 of 15
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Hermosa Beach Los Angeles 0.018% 0.0145307%
City Huntington Park Los Angeles 0.023% 0.0190667%
City Inglewood Los Angeles 0.059% 0.0489195%
City La Cañada Flintridge Los Angeles 0.003% 0.0025565% City Lakewood Los Angeles 0.005% 0.0039971%
City La Mirada Los Angeles 0.010% 0.0081572%
City Lancaster Los Angeles 0.045% 0.0369689%
City La Puente Los Angeles 0.002% 0.0012999%
City La Verne Los Angeles 0.024% 0.0194190%
City Lawndale Los Angeles 0.002% 0.0017731%
City Lomita Los Angeles 0.004% 0.0031940%
City Long Beach Los Angeles 0.439% 0.3614151%
City Los Angeles Los Angeles 2.715% 3.321% 2.8218811%
City Lynwood Los Angeles 0.016% 0.0134345%
City Malibu Los Angeles 0.002% 0.0019269%
City Manhattan Beach Los Angeles 0.032% 0.0260686%
City Maywood Los Angeles 0.004% 0.0035528%
City Monrovia Los Angeles 0.031% 0.0254455%
City Montebello Los Angeles 0.030% 0.0250670%
City Monterey Park Los Angeles 0.031% 0.0256677%
City Norwalk Los Angeles 0.031% 0.0258228%
City Palmdale Los Angeles 0.046% 0.0375827%
City Palos Verdes Estates Los Angeles 0.006% 0.0053102% City Paramount Los Angeles 0.011% 0.0091483%
City Pasadena Los Angeles 0.146% 0.1200524%
City Pico Rivera Los Angeles 0.022% 0.0183333%
City Pomona Los Angeles 0.111% 0.0911933%
City Rancho Palos Verdes Los Angeles 0.002% 0.0012645%
City Redondo Beach Los Angeles 0.062% 0.0506992%
City Rosemead Los Angeles 0.003% 0.0028260%
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 241
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6 of 15
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City San Dimas Los Angeles 0.003% 0.0022016%
City San Fernando Los Angeles 0.013% 0.0104837%
City San Gabriel Los Angeles 0.018% 0.0147726%
City San Marino Los Angeles 0.009% 0.0073791%
City Santa Clarita Los Angeles 0.022% 0.0178167%
City Santa Fe Springs Los Angeles 0.031% 0.0257531%
City Santa Monica Los Angeles 0.158% 0.1298513%
City Sierra Madre Los Angeles 0.006% 0.0048646%
City Signal Hill Los Angeles 0.010% 0.0084884%
City South El Monte Los Angeles 0.005% 0.0039603%
City South Gate Los Angeles 0.020% 0.0166272%
City South Pasadena Los Angeles 0.012% 0.0095334%
City Temple City Los Angeles 0.005% 0.0039498%
City Torrance Los Angeles 0.112% 0.0919820%
City Walnut Los Angeles 0.006% 0.0047305%
City West Covina Los Angeles 0.049% 0.0404521%
City West Hollywood Los Angeles 0.013% 0.0108517%
City Whittier Los Angeles 0.032% 0.0260581%
County Madera County Madera 0.349% 0.427% 0.3630669%
City Chowchilla Madera 0.012% 0.0097332%
City Madera Madera 0.039% 0.0318441%
County Marin County Marin 0.564% 0.690% 0.5861325%
City Larkspur Marin 0.015% 0.0124697%
City Mill Valley Marin 0.020% 0.0168401%
City Novato Marin 0.028% 0.0229824%
City San Anselmo Marin 0.009% 0.0078062%
City San Rafael Marin 0.089% 0.0729823%
County Mariposa County Mariposa 0.084% 0.103% 0.0876131% County Mendocino County Mendocino 0.439% 0.536% 0.4558394% City Ukiah Mendocino 0.039% 0.0317153%
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 242
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
County Merced County Merced 0.551% 0.674% 0.5724262%
City Atwater Merced 0.024% 0.0195846%
City Livingston Merced 0.006% 0.0045873%
City Los Banos Merced 0.020% 0.0165142%
City Merced Merced 0.061% 0.0500762%
County Modoc County Modoc 0.065% 0.080% 0.0678250%
County Mono County Mono 0.023% 0.029% 0.0242606%
County Monterey County Monterey 0.908% 1.111% 0.9437083% City Greenfield Monterey 0.006% 0.0050552%
City King City Monterey 0.005% 0.0037355%
City Marina Monterey 0.017% 0.0144098%
City Monterey Monterey 0.041% 0.0336540%
City Pacific Grove Monterey 0.009% 0.0074842%
City Salinas Monterey 0.094% 0.0776576%
City Seaside Monterey 0.023% 0.0191772%
City Soledad Monterey 0.007% 0.0060870%
County Napa County Napa 0.288% 0.352% 0.2994325%
City American Canyon Napa 0.017% 0.0136869%
City Napa Napa 0.078% 0.0642783%
County Nevada County Nevada 0.441% 0.539% 0.4579827%
City Grass Valley Nevada 0.024% 0.0197805%
City Truckee Nevada 0.003% 0.0023843%
County Orange County Orange 4.364% 5.339% 4.5363576%
City Aliso Viejo Orange 0.014% 0.0113841%
City Anaheim Orange 0.554% 0.678% 0.5759282%
City Brea Orange 0.086% 0.0708897%
City Buena Park Orange 0.087% 0.0714352%
City Costa Mesa Orange 0.124% 0.152% 0.1288366%
City Cypress Orange 0.033% 0.0271937%
City Dana Point Orange 0.001% 0.0005560%
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Fountain Valley Orange 0.055% 0.0455980%
City Fullerton Orange 0.137% 0.168% 0.1425744%
City Garden Grove Orange 0.213% 0.1752482%
City Huntington Beach Orange 0.247% 0.302% 0.2568420%
City Irvine Orange 0.139% 0.170% 0.1442350%
City Laguna Beach Orange 0.047% 0.058% 0.0493043%
City Laguna Hills Orange 0.014% 0.0115457%
City Laguna Niguel Orange 0.001% 0.0007071%
City Laguna Woods Orange 0.001% 0.0006546%
City La Habra Orange 0.060% 0.073% 0.0621049%
City Lake Forest Orange 0.012% 0.0101249%
City La Palma Orange 0.012% 0.0095439%
City Los Alamitos Orange 0.008% 0.0069190%
City Mission Viejo Orange 0.014% 0.0117560%
City Newport Beach Orange 0.179% 0.1470134%
City Orange Orange 0.150% 0.1231320%
City Placentia Orange 0.029% 0.035% 0.0298912%
City Rancho Santa Margarita Orange 0.001% 0.0006296%
City San Clemente Orange 0.008% 0.010% 0.0086083%
City San Juan Capistrano Orange 0.008% 0.0065510%
City Santa Ana Orange 0.502% 0.614% 0.5213866%
City Seal Beach Orange 0.020% 0.0165891%
City Stanton Orange 0.035% 0.0291955%
City Tustin Orange 0.073% 0.0600341%
City Westminster Orange 0.104% 0.127% 0.1082721%
City Yorba Linda Orange 0.044% 0.0362223%
County Placer County Placer 1.045% 1.278% 1.0861002%
City Auburn Placer 0.017% 0.0141114%
City Lincoln Placer 0.031% 0.0255599%
City Rocklin Placer 0.076% 0.0625485%
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 244
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Roseville Placer 0.196% 0.1616559%
County Plumas County Plumas 0.205% 0.251% 0.2128729%
County Riverside County Riverside 4.534% 5.547% 4.7128296% City Banning Riverside 0.017% 0.0143848%
City Beaumont Riverside 0.021% 0.0171135%
City Blythe Riverside 0.012% 0.0096714%
City Canyon Lake Riverside 0.000% 0.0001761%
City Cathedral City Riverside 0.067% 0.0553614%
City Coachella Riverside 0.021% 0.0173054%
City Corona Riverside 0.147% 0.1207083%
City Desert Hot Springs Riverside 0.024% 0.0200433%
City Eastvale Riverside 0.000% 0.0002747%
City Hemet Riverside 0.051% 0.0421792%
City Indio Riverside 0.056% 0.0457794%
City Jurupa Valley Riverside 0.001% 0.0008991%
City Lake Elsinore Riverside 0.021% 0.0172949%
City La Quinta Riverside 0.063% 0.0516732%
City Menifee Riverside 0.032% 0.0260909%
City Moreno Valley Riverside 0.137% 0.1130348%
City Murrieta Riverside 0.048% 0.059% 0.0497423%
City Norco Riverside 0.016% 0.0134542%
City Palm Desert Riverside 0.083% 0.0682465%
City Palm Springs Riverside 0.076% 0.0629862%
City Perris Riverside 0.009% 0.0076774%
City Rancho Mirage Riverside 0.052% 0.0431098%
City Riverside Riverside 0.268% 0.2206279%
City San Jacinto Riverside 0.010% 0.0085936%
City Temecula Riverside 0.022% 0.0180086%
City Wildomar Riverside 0.008% 0.0062500%
County Sacramento County Sacramento 3.797% 4.645% 3.9465887% DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 245
APPENDIX 1
10 of 15
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Citrus Heights Sacramento 0.057% 0.0465312%
City Elk Grove Sacramento 0.130% 0.1066994%
City Folsom Sacramento 0.108% 0.0890850%
City Galt Sacramento 0.017% 0.0143704%
City Rancho Cordova Sacramento 0.008% 0.0067679%
City Sacramento Sacramento 0.721% 0.882% 0.7496530%
County San Benito County San Benito 0.106% 0.130% 0.1101417% City Hollister San Benito 0.027% 0.0225355%
County San Bernardino County San Bernardino 3.259% 3.987% 3.3878124% City Adelanto San Bernardino 0.008% 0.0066640%
City Apple Valley San Bernardino 0.025% 0.0207360%
City Barstow San Bernardino 0.015% 0.0122056%
City Chino San Bernardino 0.064% 0.0525893%
City Chino Hills San Bernardino 0.001% 0.0006388%
City Colton San Bernardino 0.031% 0.0253443%
City Fontana San Bernardino 0.112% 0.0920543%
City Grand Terrace San Bernardino 0.006% 0.0051051%
City Hesperia San Bernardino 0.035% 0.0291522%
City Highland San Bernardino 0.004% 0.0029061%
City Loma Linda San Bernardino 0.009% 0.0071188%
City Montclair San Bernardino 0.039% 0.0322108%
City Ontario San Bernardino 0.179% 0.1472934%
City Rancho Cucamonga San Bernardino 0.084% 0.0689431%
City Redlands San Bernardino 0.057% 0.0469150%
City Rialto San Bernardino 0.073% 0.0603206%
City San Bernardino San Bernardino 0.178% 0.1461880%
City Twentynine Palms San Bernardino 0.002% 0.0012605%
City Upland San Bernardino 0.052% 0.0424460%
City Victorville San Bernardino 0.033% 0.0269400%
City Yucaipa San Bernardino 0.016% 0.0128772%
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 246
APPENDIX 1
11 of 15
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Yucca Valley San Bernardino 0.003% 0.0021228%
County San Diego County San Diego 5.706% 6.980% 5.9309748% City Carlsbad San Diego 0.128% 0.1050485%
City Chula Vista San Diego 0.189% 0.231% 0.1961456%
City Coronado San Diego 0.044% 0.0359095%
City El Cajon San Diego 0.113% 0.0933582%
City Encinitas San Diego 0.061% 0.074% 0.0630289%
City Escondido San Diego 0.145% 0.1192204%
City Imperial Beach San Diego 0.014% 0.0118283%
City La Mesa San Diego 0.055% 0.068% 0.0575593%
City Lemon Grove San Diego 0.022% 0.0183911%
City National City San Diego 0.080% 0.0656808%
City Oceanside San Diego 0.213% 0.1753428%
City Poway San Diego 0.062% 0.0511040%
City San Diego San Diego 1.975% 2.416% 2.0531169%
City San Marcos San Diego 0.089% 0.0733897%
City Santee San Diego 0.033% 0.0268401%
City Solana Beach San Diego 0.017% 0.0138564%
City Vista San Diego 0.052% 0.0425144%
Consolidated San Francisco San Francisco 3.026% 3.702% 3.1457169% County San Joaquin County San Joaquin 1.680% 2.055% 1.7460399% City Lathrop San Joaquin 0.009% 0.0075394%
City Lodi San Joaquin 0.053% 0.0439484%
City Manteca San Joaquin 0.054% 0.0443454%
City Ripon San Joaquin 0.013% 0.0104219%
City Stockton San Joaquin 0.313% 0.383% 0.3256176%
City Tracy San Joaquin 0.084% 0.0692047%
County San Luis Obispo County San Luis Obispo 0.816% 0.999% 0.8484126% City Arroyo Grande San Luis Obispo 0.024% 0.0199053%
City Atascadero San Luis Obispo 0.029% 0.0240680%
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 247
APPENDIX 1
12 of 15
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City El Paso de Robles (Paso Robles) San Luis Obispo 0.043% 0.0353456% City Grover Beach San Luis Obispo 0.017% 0.0137881%
City Morro Bay San Luis Obispo 0.020% 0.0160922%
City San Luis Obispo San Luis Obispo 0.077% 0.0637841%
County San Mateo County San Mateo 1.074% 1.313% 1.1159599% City Belmont San Mateo 0.021% 0.0169860%
City Burlingame San Mateo 0.019% 0.0152537%
City Daly City San Mateo 0.044% 0.0363880%
City East Palo Alto San Mateo 0.013% 0.0103982%
City Foster City San Mateo 0.020% 0.0166101%
City Half Moon Bay San Mateo 0.004% 0.0031638%
City Hillsborough San Mateo 0.013% 0.0110029%
City Menlo Park San Mateo 0.015% 0.0126209%
City Millbrae San Mateo 0.013% 0.0105836%
City Pacifica San Mateo 0.016% 0.0130625%
City Redwood City San Mateo 0.056% 0.0463511%
City San Bruno San Mateo 0.021% 0.0172161%
City San Carlos San Mateo 0.013% 0.0108885%
City San Mateo San Mateo 0.052% 0.0425841%
City South San Francisco San Mateo 0.043% 0.0353943%
County Santa Barbara County Santa Barbara 1.132% 1.385% 1.1768968% City Carpinteria Santa Barbara 0.001% 0.0008938%
City Goleta Santa Barbara 0.004% 0.0028969%
City Lompoc Santa Barbara 0.047% 0.0389379%
City Santa Barbara Santa Barbara 0.122% 0.1004559%
City Santa Maria Santa Barbara 0.058% 0.0479179%
County Santa Clara County Santa Clara 2.404% 2.941% 2.4987553% City Campbell Santa Clara 0.014% 0.0112566%
City Cupertino Santa Clara 0.008% 0.0066824%
City Gilroy Santa Clara 0.025% 0.0202891%
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 248
APPENDIX 1
13 of 15
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Los Altos Santa Clara 0.013% 0.0103338%
City Los Gatos Santa Clara 0.013% 0.0103220%
City Milpitas Santa Clara 0.036% 0.0298120%
City Morgan Hill Santa Clara 0.015% 0.0124619%
City Mountain View Santa Clara 0.041% 0.0334608%
City Palo Alto Santa Clara 0.039% 0.0323080%
City San Jose Santa Clara 0.294% 0.360% 0.3054960%
City Santa Clara Santa Clara 0.067% 0.0549723%
City Saratoga Santa Clara 0.004% 0.0034161%
City Sunnyvale Santa Clara 0.053% 0.0434069%
County Santa Cruz County Santa Cruz 0.783% 0.957% 0.8135396% City Capitola Santa Cruz 0.020% 0.0168191%
City Santa Cruz Santa Cruz 0.143% 0.1180348%
City Scotts Valley Santa Cruz 0.015% 0.0126525%
City Watsonville Santa Cruz 0.063% 0.0520136%
County Shasta County Shasta 1.095% 1.339% 1.1380191%
City Anderson Shasta 0.024% 0.0198896%
City Redding Shasta 0.284% 0.2334841%
City Shasta Lake Shasta 0.004% 0.0031993%
County Siskiyou County Siskiyou 0.228% 0.279% 0.2373393% County Solano County Solano 0.760% 0.6260795%
City Benicia Solano 0.031% 0.0253903%
City Dixon Solano 0.016% 0.0130849%
City Fairfield Solano 0.109% 0.0897317%
City Suisun City Solano 0.021% 0.0176183%
City Vacaville Solano 0.119% 0.0976497%
City Vallejo Solano 0.167% 0.1373644%
County Sonoma County Sonoma 1.218% 1.490% 1.2661290%
City Healdsburg Sonoma 0.032% 0.0266929%
City Petaluma Sonoma 0.081% 0.0667507%
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 249
APPENDIX 1
14 of 15
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Rohnert Park Sonoma 0.041% 0.0340759%
City Santa Rosa Sonoma 0.184% 0.1519070%
City Sonoma Sonoma 0.022% 0.0183438%
City Windsor Sonoma 0.016% 0.0129298%
County Stanislaus County Stanislaus 1.722% 1.4182273%
City Ceres Stanislaus 0.041% 0.0340260%
City Modesto Stanislaus 0.217% 0.1788759%
City Newman Stanislaus 0.006% 0.0046964%
City Oakdale Stanislaus 0.018% 0.0145531%
City Patterson Stanislaus 0.015% 0.0126590%
City Riverbank Stanislaus 0.010% 0.0085699%
City Turlock Stanislaus 0.065% 0.0531966%
County Sutter County Sutter 0.306% 0.374% 0.3179548%
City Yuba City Sutter 0.074% 0.0606242%
County Tehama County Tehama 0.213% 0.261% 0.2216654%
City Red Bluff Tehama 0.014% 0.0117771%
County Trinity County Trinity 0.082% 0.101% 0.0855476%
County Tulare County Tulare 0.809% 0.990% 0.8410949%
City Dinuba Tulare 0.014% 0.0116929%
City Exeter Tulare 0.004% 0.0032479%
City Farmersville Tulare 0.003% 0.0027879%
City Lindsay Tulare 0.007% 0.0057111%
City Porterville Tulare 0.021% 0.0171845%
City Tulare Tulare 0.037% 0.0302273%
City Visalia Tulare 0.066% 0.0545872%
County Tuolumne County Tuolumne 0.486% 0.594% 0.5047621% County Ventura County Ventura 2.192% 2.681% 2.2781201%
City Camarillo Ventura 0.002% 0.0012815%
City Fillmore Ventura 0.002% 0.0020294%
City Moorpark Ventura 0.008% 0.0067337%
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 250
APPENDIX 1
15 of 15
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Oxnard Ventura 0.156% 0.190% 0.1617338%
City Port Hueneme Ventura 0.021% 0.0174145%
City San Buenaventura (Ventura) Ventura 0.085% 0.0702181% City Santa Paula Ventura 0.014% 0.0119072%
City Simi Valley Ventura 0.065% 0.0533043%
City Thousand Oaks Ventura 0.022% 0.0179902%
County Yolo County Yolo 0.357% 0.437% 0.3713319%
City Davis Yolo 0.055% 0.0451747%
City West Sacramento Yolo 0.066% 0.0544321%
City Woodland Yolo 0.058% 0.0477904%
County Yuba County Yuba 0.214% 0.262% 0.2225679%
City Marysville Yuba 0.014% 0.0112079%
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 251
1 6
APPENDIX 2
Cost Reimbursement Procedure

Costs does not include attorneys’ fees, costs, or expenses incurred by private contingency fee counsel. No part of the CA Abatement Accounts Fund will be used to reimburse Costs.
b) First Claims Date means October 1, 2023 or when all applications for reimbursement of Costs, in whole or in part, from funds available under Section IX and Exhibit R of the Walgreens Settlement Agreement, Section XIV and Exhibit R of the Teva Settlement Agreement, Section XIII and Exhibit R of the Allergan Settlement Agreement, Section X and Exhibit R of the Distributor Settlement Agreement, Section XI and Exhibit R of the Janssen Settlement Agreement, Section X and Exhibit R of the CVS Settlement Agreement, or Section IX and Exhibit R of the Walmart Settlement Agreement, have been finally determined under the provisions of those agreements, whichever comes first.
c) Special Master means a retired judicial officer or former public lawyer, not presently employed or retained by a Plaintiff Subdivision, who will aggregate, review, and determine the reasonable Costs to be awarded to each Plaintiff Subdivision that submits a claim for reimbursement of Costs. The Special Master will be selected by a majority vote of the votes cast by Plaintiff Subdivisions, with each such subdivision having one vote. d) Plaintiff Subdivision Committee means the committee of Plaintiff Subdivisions that will review and approve the invoices submitted by the Special Master reflecting his or her reasonable time and expenses.

2. Cost Reimbursement to Plaintiff Subdivision
a) Purpose. Substantial resources have been expended to hold Opioid Defendants accountable for creating and profiting from the opioid crisis, and this effort has been a significant catalyst in creating National Opioid Settlements with various manufacturers, distributors, and chain pharmacies.
b) Claims Procedure.
i. If a Plaintiff Subdivision is eligible to seek reimbursement of Costs, in whole or in part, from funds available under Section IX and Exhibit R of the Walgreens DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 252
1 7
Settlement Agreement, Section XIV and Exhibit R of the Teva Settlement Agreement, Section XIII and Exhibit R of the Allergan Settlement Agreement, Section X and Exhibit R of the CVS Settlement Agreement, Section IX and Exhibit R of the Walmart Settlement Agreement, Section X or Exhibit R of the Distributor Settlement Agreement, or Section XI or Exhibit R of the Janssen Settlement Agreement, it must first make a timely application for reimbursement from such funds. To allow sufficient time for determination of those applications, no claim for Costs to the CA Subdivision Fund under this Agreement may be made before the First Claims Date.
ii. A Plaintiff Subdivision that wishes to be reimbursed from the CA Subdivision Fund must submit a claim to the Special Master no later than forty-five (45) days after the First Claims Date. The Special Master will then compile and redistribute the aggregated claim totals for each Plaintiff Subdivision via email to representatives of all the Plaintiff Subdivisions. A claim for attorney and staff time must list, for each attorney or staff member included in the claim, the following information: name, title, total hours claimed, hourly rate (including, if sought, benefits and share of overhead), and narrative summarizing the general nature of the work performed by the attorney or staff member. For reimbursement of “hard” costs, the subdivision may aggregate across a category (e.g., total for travel costs). It is the intention of the Plaintiff Subdivisions that submission of documents related to reimbursement of Costs does not waive any attorney-client privilege or exemptions to the California Public Records Act.
iii. The Special Master may request, at his or her sole option, additional documents or details to assist in the final award of Costs.
iv. The Special Master will review claims for reasonableness and will notify each Plaintiff Subdivision of the final determination of its claim, and will provide a list of all final awards to all Plaintiff Subdivisions by email or, upon request, via First Class U.S. Mail. Any Plaintiff Subdivision may ask the Special Master to reconsider any final award within twenty-one (21) days. The Special Master will make a final determination on any such reconsideration request within thirty (30) days of receipt.
v. Any decision of the Special Master is final and binding, and will be considered under the California Arbitration Act, Code of Civil Procedure section 1280 et seq. as a final arbitration award. Nothing in this agreement is intended to expand the scope of judicial review of the final award for errors of fact or law, and the Parties agree that they may only seek to vacate the award if clear and convincing evidence demonstrates one of the factors set forth in Code of Civil Procedure, section 1286.2, subdivision (a). Plaintiff Subdivisions will have fourteen (14) days after all final awards are made, together with any final determination of a request for DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 253
1 8
reconsideration, to seek review in the Superior Court of California, pursuant to Code of Civil Procedure, section 1285, where the State has filed its Consent Judgment. vi. The Special Master will prepare a report of Costs that includes his or her fees and expenses at least ninety (90) days before the Payment Date for each Annual Payment. The Special Master’s preparation of a report of Costs does not discharge a Plaintiff Subdivision’s reporting requirement under Section V(B)(2) of the Walgreens Settlement Agreement.
vii. A member of the Plaintiff Subdivision Committee, which is a CA Participating Subdivision, will submit to the Settlement Fund Administrator and Walgreens a report of the fees and expenses incurred by the Special Master pursuant to Section V(B)(2) of the Walgreens Settlement Agreement.
c) Claims Priority and Limitation.
i. The Special Master will submit invoices for compensation of reasonable fees and expenses to the Plaintiff Subdivision Committee no later than ninety (90) days prior to the Payment Date for each Annual Payment. The Plaintiff Subdivision Committee will promptly review and, if reasonable, approve the Special Master’s invoice for compensation. The Plaintiff Subdivision Committee will submit approved invoices to the Settlement Fund Administrator for payment. The Special Master’s approved invoices have priority and will be paid first from the CA Subdivision Fund before any award of Costs, subject to the limitation in Section

DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 254
1 9
d) Collateral Source Payments and Third-Party Settlement. i. In the event a Plaintiff Subdivision is awarded compensation, in whole or in part, by any source of funds created as a result of litigation against an Opioid Defendant for its reasonable Costs, it will reduce its claim for Costs from the CA Subdivision Fund by that amount. If a Plaintiff Subdivision has already received a final award of Costs from the CA Subdivision Fund, it will repay the fund up to the prior award of Costs via a payment to the Settlement Fund Administrator or notify the Settlement Fund Administrator that its allocation from the next and subsequent Annual Payments should be reduced accordingly. If the Plaintiff Subdivision is repaying any prior award of Costs, that repayment will occur as soon as is feasible after the Plaintiff Subdivision’s receipt of Cost funds from the collateral source, but no more than 90 days after its receipt from the collateral source. The Settlement Fund Administrator will add any repaid Costs to the CA Subdivision Fund. Any Plaintiff Subdivision that has submitted for reimbursement to any national fund and has not received a final determination by the First Claims Date may request that the settlement administrator withhold some or all of its payment from the CA Subdivision Fund in order to avoid repayment.
ii. In the event a Plaintiff Subdivision reaches a monetary settlement or compromise against any Opioid Defendant outside of the National Opioid Settlement, the monetary portion of such settlement, net of fees paid to outside contingency fee counsel and of funds earmarked strictly for abatement, will be credited against its Costs and the subdivision will be ineligible to recover those credited Costs from the CA Subdivision Fund. Plaintiff Subdivisions negotiating monetary settlements or compromises against any Opioid Defendant outside of the National Opioid Settlement will negotiate for funds to repay any Costs it previously received from the CA Subdivision Fund or for Costs it otherwise might be eligible to claim from the CA Subdivision Fund. If such a settlement is paid after all final approved claims for Costs by all Plaintiff Subdivisions are satisfied in full, the settling subdivision will reimburse the CA Subdivision Fund in that amount by making payment to the Settlement Fund Administrator to add to the CA Subdivision Fund in a manner consistent with the repayments described in section 2.d.i above.

DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 255
1 APPENDIX 3

Pursuant to this Backstop Agreement, [SUBDIVISION] may, subject to the limitations of the Walgreens Settlement Agreement and CA Walgreens Allocation Agreement, as well as any other limitations imposed by law, use funds that it receives from the Walgreens Settlement CA Subdivision Fund to pay a contingent fee to [COUNSEL]. Any such payment from [SUBDIVISION] to [COUNSEL], together with any contingency fees that [COUNSEL] may receive from the national Attorney Fee Fund, will not exceed a total contingency fee of [PERCENTAGE NOT TO EXCEED 15%] of the total gross recovery of [SUBDIVISION] from the Walgreens Settlement.
[COUNSEL] certify that they first sought fees and costs from the Attorney Fee Fund created under the Walgreens Settlement Agreement before seeking or accepting payment under this backstop agreement. [COUNSEL] further certify that they are not seeking and will not accept payment under this backstop agreement of any litigation fees or costs that have been reimbursed through prior settlements or judgments.

The Attorney General is executing this agreement solely because the definition of “State BackStop Agreement” in Exhibit R of the Walgreens Settlement Agreement requires such agreements to be between “a Settling State” and private counsel for a participating subdivision. Neither the California Attorney General nor the State of California have any obligations under this Backstop Agreement, and this Backstop Agreement does not require the payment of any state funds to [SUBDIVISION], [COUNSEL], or any other party.
[DATE] [SUBDIVISION SIGNATURE BLOCK]
[DATE] [COUNSEL SIGNATURE BLOCK]
[DATE] [ATTORNEY GENERAL SIGNATURE BLOCK]
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 256
1 Proposed California State-Subdivision Agreement
Regarding Distribution and Use of
Settlement Funds – Walmart Settlement

1. Introduction
Pursuant to the Walmart Settlement Agreement, dated as of November 14, 2022, and any revision thereto (the “Walmart Settlement Agreement”), including Section V and Exhibit O, the State of California proposes this agreement (the “CA Walmart Allocation Agreement”) to govern the allocation, distribution, and use of Settlement Fund payments made to California pursuant to Sections IV and V of the Walmart Settlement Agreement. For the avoidance of doubt, this agreement does not apply to payments made pursuant to Sections VIII or IX of the Walmart Settlement Agreement.

Pursuant to Exhibit O, Paragraph 4, of the Walmart Settlement Agreement, acceptance of this CA Walmart Allocation Agreement is a requirement to be a Participating Subdivision.

DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 257
2 i) Plaintiff Subdivision means a Subdivision located in California, other than a CA Litigating Special District, that filed a lawsuit, on behalf of the Subdivision and/or through an official of the Subdivision on behalf of the People of the State of California, against one or more Opioid Defendants prior to October 1, 2020. j) Opioid Defendant means any defendant (including but not limited to Teva Pharmaceutical Industries Ltd., Allergan Finance, LLC, Allergan Limited, CVS Health Corporation, CVS Pharmacy, Inc., Walgreen Co., Walmart Inc., Johnson & Johnson, Janssen Pharmaceuticals, Inc., Purdue Pharma L.P., Cardinal Health, Inc., AmerisourceBergen Corporation, and McKesson Corporation) named in a lawsuit seeking damages, abatement, or other remedies related to or caused by the opioid public health crisis in any lawsuit brought by any state or local government on or before October 1, 2020.

3. General Terms
This agreement is subject to the requirements of the Walmart Settlement Agreement, as well as applicable law, and the Walmart Settlement Agreement governs over any inconsistent provision of this CA Walmart Allocation Agreement. Terms used in this CA Walmart Allocation Agreement have the same meaning as in the Walmart Settlement Agreement unless otherwise defined herein.

Pursuant to Section V(D)(1) of the Walmart Settlement Agreement, (a) all Settlement Fund payments will be used for Opioid Remediation, except as allowed by Section V(B)(2) of the Walmart Settlement Agreement; and (b) at least seventy percent (70%) of Settlement Fund payment amounts will be used solely for future Opioid Remediation.

4. State Allocation
The Settlement Fund payments to California,1 pursuant to the Walmart Settlement Agreement, shall be allocated as follows: 15% to the State Fund; 70% to the Abatement Accounts Fund; and 15% to the Subdivision Fund. For the avoidance of doubt, all funds allocated to California from the Settlement Fund shall be combined pursuant to this CA Walmart Allocation Agreement, and 15% of that total shall be allocated to the State of California (the “State of California Allocation”), 70% to the California Abatement Accounts Fund (“CA Abatement Accounts Fund”), and 15% to the California Subdivision Fund (“CA Subdivision Fund”). 1 For purposes of clarity, use of the term “California” refers to the geographic territory of California and the state and its local governments therein. The term “State” or “State of California” refers to the State of California as a governmental unit.

DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 258
3 A. State of California Allocation
Fifteen percent of the total Settlement Fund payments will be allocated to the State and used by the State for future Opioid Remediation.

DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 259
4 e) The State will receive the Local Allocation share of any payment to the Settlement Fund that is attributable to a county or city that is eligible to become a CA Participating Subdivision, but that has not, as of the date of that payment to the Settlement Fund, become a Participating Subdivision.
f) Funds received by a CA Participating Subdivision, and not expended or encumbered within five years of receipt and in accordance with the Walmart Settlement Agreement and this CA Walmart Allocation Agreement shall be transferred to the State; provided however, that CA Participating Subdivisions have seven years to expend or encumber CA Abatement Accounts Funds designated to support capital outlay projects before they must be transferred to the State. This provision shall not apply to the Cost Reimbursement Funds, which shall be controlled by Appendix 2.
ii. Use of CA Abatement Accounts Funds
a) The CA Abatement Accounts Funds will be used for future Opioid Remediation in one or more of the areas described in the List of Opioid Remediation Uses, which is Exhibit E to the Walmart Settlement Agreement.
b) In addition to this requirement, no less than 50% of the funds received by a CA Participating Subdivision from the Abatement Accounts Fund in each calendar year will be used for one or more of the following High Impact Abatement Activities:
(1) the provision of matching funds or operating costs for substance use disorder facilities within the Behavioral Health Continuum Infrastructure Program; (2) creating new or expanded Substance Use Disorder (“SUD”) treatment infrastructure; (3) addressing the needs of communities of color and vulnerable populations (including sheltered and unsheltered homeless populations) that are disproportionately impacted by SUD;
(4) diversion of people with SUD from the justice system into treatment, including by providing training and resources to first and early responders (sworn and non-sworn) and implementing best practices for outreach, diversion and deflection, employability, restorative justice, and harm reduction; and/or (5) interventions to prevent drug addiction in vulnerable youth. c) The California Department of Health Care Services (“DHCS”) may add to this list (but not delete from it) by designating additional High Impact Abatement Activities. DHCS will make reasonable efforts to consult with stakeholders, including the CA Participating Subdivisions, before adding additional High Impact Abatement Activities to this list.
d) For the avoidance of doubt, and subject to the requirements of the Walmart Settlement Agreement and applicable law, CA Participating Subdivisions may form agreements or ventures, or otherwise work in collaboration with, federal, state, local, tribal or private sector entities in pursuing Opioid Remediation activities funded from the CA Abatement DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 260
5 Accounts Fund. Further, provided that all CA Abatement Accounts Funds are used for Opioid Remediation consistent with the Walmart Settlement Agreement and this CA Walmart Allocation Agreement, a county and any cities or towns within the county may agree to reallocate their respective shares of the CA Abatement Accounts Funds among themselves, provided that any direct distribution may only be to a CA Participating Subdivision and any CA Participating Subdivision must agree to their share being reallocated.
iii. CA Abatement Accounts Fund Oversight
a) Pursuant to Section 5 below, CA Participating Subdivisions receiving settlement funds must prepare and file reports annually regarding the use of those funds. DHCS may regularly review the reports prepared by CA Participating Subdivisions about the use of CA Abatement Accounts Funds for compliance with the Walmart Settlement Agreement and this CA Walmart Allocation Agreement.
b) If DHCS determines that a CA Participating Subdivision’s use of CA Abatement Accounts Funds is inconsistent with the Walmart Settlement Agreement or this CA Walmart Allocation Agreement, whether through review of reports or information from any other sources, DHCS shall send a request to meet and confer with the CA Participating Subdivision. The parties shall meet and confer in an effort to resolve the concern.
c) If the parties are unable to reach a resolution, DHCS may conduct an audit of the Subdivision’s use of the CA Abatement Accounts Funds within one year of the request to meet and confer, unless the parties mutually agree in writing to extend the meet and confer time frame.
d) If the concern still cannot be resolved, the State may bring a motion or action in the court where the State has filed its Consent Judgment to resolve the concern or otherwise enforce the requirements of the Walmart Settlement Agreement or this CA Walmart Allocation Agreement. However, in no case shall any audit be conducted, or motion be brought, as to a specific expenditure of funds, more than five years after the date on which the expenditure of the funds was reported to DHCS, in accordance with this agreement.
e) Notwithstanding the foregoing, this Agreement does not limit the statutory or constitutional authority of any state or local agency or official to conduct audits, investigations, or other oversight activities, or to pursue administrative, civil, or criminal enforcement actions.

DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 261
6 C. CA Subdivision Fund
i. Fifteen percent of the total Settlement Fund payments will be allocated to the CA Subdivision Fund. All funds in the CA Subdivision Fund will be allocated among the Plaintiff Subdivisions that are Participating Subdivisions. The funds will be used, subject to any limits imposed by the Walmart Settlement Agreement and this CA Walmart Allocation Agreement, to fund future Opioid Remediation and reimburse past opioidrelated expenses, which may include fees and expenses related to litigation, and to pay the reasonable fees and expenses of the Special Master as set forth in Appendix 2.

The CA Subdivision Funds will be allocated as follows:
a) First, funds in the CA Subdivision Fund shall be used to pay the Special Master’s reasonable fees and expenses in accordance with the procedures and limitations set forth in Appendix 2 to this document;
b) Second, funds will be allocated to Plaintiff Subdivisions that are Participating Subdivisions that have been awarded Costs, as defined by and in accordance with the procedures and limitations set forth in Appendix 2 to this document. c) Funds remaining in the CA Subdivision Fund, which shall consist of no less than 50% of the total CA Subdivision Fund received in any year pursuant to Appendix 2, Section 2.c.v, will be distributed to Plaintiff Subdivisions that are Participating Subdivisions, in relative proportion to the Local Allocation. These funds shall be used to fund future opioid-related projects and to reimburse past opioid-related expenses, which may include fees and expenses related to litigation against any Opioid Defendant.

D. Provision for State Back-Stop Agreement
On August 6, 2021, Judge Dan Polster of the U.S. District Court, Northern District of Ohio, Eastern Division, issued an order (ECF Docket Number 3814) (“MDL Fees Order”) in the National Prescription Opiate Litigation (MDL No. 2804) “cap[ping] all applicable contingent fee agreements at 15%.” Private counsel representing Plaintiff Subdivisions should seek its contingency fees and costs from the Attorney Fee Fund or Cost Funds under the Walmart Settlement Agreement, and, if applicable, the Allergan Settlement Agreement, CVS Settlement Agreement, Distributor Settlement Agreement, Janssen Settlement Agreement, Teva Settlement Agreement, and Walgreens Settlement Agreement.

Before seeking fees or litigation costs and expenses from a State Back-Stop Agreement, private DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 262
7 counsel representing Plaintiff Subdivisions must first seek contingency fees and costs from the Attorney Fee Fund or Cost Funds created under the Walmart Settlement Agreement. Further, private counsel may only seek reimbursement for litigation fees and costs that have not previously been reimbursed through prior settlements or judgments.

5. State and Subdivision Reporting
a) DHCS will prepare an annual written report regarding the State’s use of funds from the settlement until those funds are fully expended and for one year thereafter. These reports will be made publicly available on the DHCS web site.
b) Each CA Participating Subdivision that receives payments of funds from the settlement will prepare written reports at least annually regarding the use of those funds, until those funds are fully expended and for one year thereafter. These reports will also include a certification that all funds that the CA Participating Subdivision has received through the settlement have been used in compliance with the Walmart Settlement Agreement and this CA Walmart Allocation Agreement. The report will be in a form reasonably determined by DHCS. Prior to specifying the form of the report DHCS will confer with representatives of the Plaintiff Subdivisions.
c) The State and all CA Participating Subdivisions receiving CA Abatement Accounts Funds will track all deposits and expenditures. Each such subdivision is responsible solely for the CA Abatement Accounts Funds it receives. A county is not responsible for oversight, reporting, or monitoring of CA Abatement Accounts Funds received by a city within that county that receives direct payment. Unless otherwise exempt, Subdivisions’ expenditures and uses of CA Abatement Accounts Funds and other Settlement Funds will be subject to the normal budgetary and expenditure process of the Subdivision. d) Each Plaintiff Subdivision receiving CA Subdivision Funds will track all deposits and expenditures, as required by the Walmart Settlement Agreement and this CA Walmart Allocation Agreement. Among other things, Plaintiff Subdivisions using monies from the CA Subdivision Fund for purposes that do not qualify as Opioid Remediation must identify and include in their annual report, the amount and how such funds were used, including if used to pay attorneys’ fees, investigation costs, or litigation costs. Pursuant to Section V(B)(2) of the Walmart Settlement Agreement, such information must also be reported to the Settlement Fund Administrator and Walmart.

DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 263
8 e) In each year in which DHCS prepares an annual report DHCS will also host a meeting to discuss the annual report and the Opioid Remediation activities being carried out by the State and Participating Subdivisions.

6. Miscellaneous
a) The State or any CA Participating Subdivision may bring a motion or action in the court where the State has filed its Consent Judgment to enforce the requirements of this CA Walmart Allocation Agreement. Before filing such a motion or action the State will meet and confer with any CA Participating Subdivision that is the subject of the anticipated motion or action, and vice versa.
b) Except as provided in the Walmart Settlement Agreement, this CA Walmart Allocation Agreement is not enforceable by any party other than the State and the CA Participating Subdivisions. It does not confer any rights or remedies upon, and shall not be enforceable by, any third party.
c) Except as provided in the CA Walmart Allocation Agreement, if any provision of this agreement or the application thereof to any person, entity, or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this agreement, or the application of such provision to persons, entities, or circumstances other than those as to which it is invalid or unenforceable, will not be affected thereby, and each other provision of this agreement will be valid and enforceable to the fullest extent permitted by law. d) Except as provided in the Walmart Settlement Agreement, this agreement shall be governed by and interpreted in accordance with the laws of California.

DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 264
9 The undersigned, Adelanto city, ACKNOWLEDGES acceptance of this Proposed California StateSubdivision Agreement Regarding Distribution and Use of Settlement Funds – Walmart Settlement is a requirement to be an Initial Participating Subdivision in the Walmart Settlement and ACCEPTS this Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds – Walmart Settlement. EXECUTED on /date_1_walmart/.

Signature: /signer_1_teva_allergan/
Name: /name_1_teva_allergan/
Title: /title_1_teva_allergan/
Date: /date_1_walmart/
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 Jessie Flores
City Manager
April 12, 2023
265
APPENDIX 1
DISCLAIMER: The allocation percentages herein are estimates only and should not be relied on for decisions regarding legal rights, releases, waivers, or other decisions affecting current or potential legal claims. Percentages shown in the Plaintiff Subdivision Percentage column may change pursuant to Section 4.C. of the California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds—Walmart Settlement, whereas the percentages shown in the Abatement Percentage column should not change. Participating Subdivisions, underlying calculations, and the calculated allocation percentages are subject to change.

DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 266
APPENDIX 1
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100.000% 100.000% 100.000%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
County Alameda County Alameda 2.332% 2.853% 2.4237952%
City Alameda Alameda 0.069% 0.0570162%
City Albany Alameda 0.013% 0.0107768%
City Berkeley Alameda 0.152% 0.1249656%
City Dublin Alameda 0.033% 0.040% 0.0338810%
City Emeryville Alameda 0.023% 0.0185765%
City Fremont Alameda 0.108% 0.0888576%
City Hayward Alameda 0.117% 0.0966218%
City Livermore Alameda 0.054% 0.0446740%
City Newark Alameda 0.026% 0.0217626%
City Oakland Alameda 0.486% 0.595% 0.5055601%
City Piedmont Alameda 0.014% 0.0114064%
City Pleasanton Alameda 0.067% 0.0554547%
City San Leandro Alameda 0.039% 0.0321267%
City Union City Alameda 0.043% 0.0352484%
County Amador County Amador 0.226% 0.277% 0.2349885%
County Butte County Butte 1.615% 1.975% 1.6783178%
City Chico Butte 0.216% 0.264% 0.2246499%
City Oroville Butte 0.079% 0.0646595%
County Calaveras County Calaveras 0.226% 0.277% 0.2351644% County Colusa County Colusa 0.059% 0.0489221%
County Contra Costa County Contra Costa 2.102% 2.571% 2.1844585% City Antioch Contra Costa 0.037% 0.0301879%
City Brentwood Contra Costa 0.026% 0.0215339%
City Clayton Contra Costa 0.002% 0.0018060%
City Concord Contra Costa 0.055% 0.0456676%
City Danville Contra Costa 0.010% 0.0082255%
City El Cerrito Contra Costa 0.023% 0.0189024%
City Hercules Contra Costa 0.010% 0.0078273%
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 267
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Lafayette Contra Costa 0.006% 0.0046030%
City Martinez Contra Costa 0.012% 0.0098593%
City Moraga Contra Costa 0.004% 0.0031007%
City Oakley Contra Costa 0.010% 0.0079416%
City Orinda Contra Costa 0.005% 0.0038157%
City Pinole Contra Costa 0.013% 0.0110909%
City Pittsburg Contra Costa 0.053% 0.0436369%
City Pleasant Hill Contra Costa 0.013% 0.0106309%
City Richmond Contra Costa 0.146% 0.1201444%
City San Pablo Contra Costa 0.018% 0.0148843%
City San Ramon Contra Costa 0.021% 0.0176459%
City Walnut Creek Contra Costa 0.026% 0.0212132%
County Del Norte County Del Norte 0.114% 0.140% 0.1189608% County El Dorado County El Dorado 0.768% 0.939% 0.7980034% City Placerville El Dorado 0.015% 0.0127642%
City South Lake Tahoe El Dorado 0.081% 0.0665456%
County Fresno County Fresno 1.895% 2.318% 1.9693410%
City Clovis Fresno 0.065% 0.0536211%
City Coalinga Fresno 0.012% 0.0098554%
City Fresno Fresno 0.397% 0.3270605%
City Kerman Fresno 0.005% 0.0042534%
City Kingsburg Fresno 0.008% 0.0066167%
City Mendota Fresno 0.002% 0.0019387%
City Orange Cove Fresno 0.004% 0.0035607%
City Parlier Fresno 0.008% 0.0069755%
City Reedley Fresno 0.012% 0.0098804%
City Sanger Fresno 0.018% 0.0146135%
City Selma Fresno 0.015% 0.0127537%
County Glenn County Glenn 0.107% 0.131% 0.1116978%
County Humboldt County Humboldt 1.030% 1.260% 1.0703185% DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 268
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Arcata Humboldt 0.054% 0.0447660%
City Eureka Humboldt 0.117% 0.143% 0.1216284%
City Fortuna Humboldt 0.032% 0.0266837%
County Imperial County Imperial 0.258% 0.315% 0.2679006% City Brawley Imperial 0.011% 0.0087986%
City Calexico Imperial 0.019% 0.0152799%
City El Centro Imperial 0.158% 0.1302522%
City Imperial Imperial 0.006% 0.0048791%
County Inyo County Inyo 0.073% 0.089% 0.0754413%
County Kern County Kern 2.517% 3.079% 2.6159145%
City Arvin Kern 0.006% 0.0046425%
City Bakersfield Kern 0.212% 0.1747198%
City California City Kern 0.009% 0.0070820%
City Delano Kern 0.030% 0.0249316%
City McFarland Kern 0.003% 0.0025644%
City Ridgecrest Kern 0.015% 0.0120938%
City Shafter Kern 0.013% 0.0103417%
City Tehachapi Kern 0.009% 0.0073580%
City Wasco Kern 0.008% 0.0069861%
County Kings County Kings 0.293% 0.2413469%
City Avenal Kings 0.007% 0.0056335%
City Corcoran Kings 0.013% 0.0107032%
City Hanford Kings 0.027% 0.0226038%
City Lemoore Kings 0.016% 0.0131900%
County Lake County Lake 0.795% 0.6545389%
City Clearlake Lake 0.041% 0.050% 0.0426253%
City Lakeport Lake 0.021% 0.026% 0.0222964%
County Lassen County Lassen 0.319% 0.391% 0.3320610%
City Susanville Lassen 0.027% 0.0219295%
County Los Angeles County Los Angeles 13.896% 16.999% 14.4437559% DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 269
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Agoura Hills Los Angeles 0.005% 0.0040024%
City Alhambra Los Angeles 0.042% 0.0343309%
City Arcadia Los Angeles 0.033% 0.0267718%
City Artesia Los Angeles 0.001% 0.0005100%
City Azusa Los Angeles 0.026% 0.0210857%
City Baldwin Park Los Angeles 0.027% 0.0218520%
City Bell Los Angeles 0.008% 0.0068783%
City Bellflower Los Angeles 0.002% 0.0014485%
City Bell Gardens Los Angeles 0.014% 0.0114301%
City Beverly Hills Los Angeles 0.065% 0.0534897%
City Burbank Los Angeles 0.100% 0.0823132%
City Calabasas Los Angeles 0.006% 0.0048948%
City Carson Los Angeles 0.019% 0.0159805%
City Cerritos Los Angeles 0.005% 0.0039682%
City Claremont Los Angeles 0.010% 0.0082584%
City Commerce Los Angeles 0.000% 0.0002971%
City Compton Los Angeles 0.044% 0.0361882%
City Covina Los Angeles 0.028% 0.0229127%
City Cudahy Los Angeles 0.001% 0.0006020%
City Culver City Los Angeles 0.055% 0.0449894%
City Diamond Bar Los Angeles 0.001% 0.0006993%
City Downey Los Angeles 0.052% 0.0429994%
City Duarte Los Angeles 0.003% 0.0027261%
City El Monte Los Angeles 0.031% 0.038% 0.0318985%
City El Segundo Los Angeles 0.033% 0.0268020%
City Gardena Los Angeles 0.034% 0.0278088%
City Glendale Los Angeles 0.166% 0.1366586%
City Glendora Los Angeles 0.016% 0.0134411%
City Hawaiian Gardens Los Angeles 0.005% 0.0040549%
City Hawthorne Los Angeles 0.050% 0.0407833%
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 270
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Hermosa Beach Los Angeles 0.018% 0.0145307%
City Huntington Park Los Angeles 0.023% 0.0190667%
City Inglewood Los Angeles 0.059% 0.0489195%
City La Cañada Flintridge Los Angeles 0.003% 0.0025565% City Lakewood Los Angeles 0.005% 0.0039971%
City La Mirada Los Angeles 0.010% 0.0081572%
City Lancaster Los Angeles 0.045% 0.0369689%
City La Puente Los Angeles 0.002% 0.0012999%
City La Verne Los Angeles 0.024% 0.0194190%
City Lawndale Los Angeles 0.002% 0.0017731%
City Lomita Los Angeles 0.004% 0.0031940%
City Long Beach Los Angeles 0.439% 0.3614151%
City Los Angeles Los Angeles 2.715% 3.321% 2.8218811%
City Lynwood Los Angeles 0.016% 0.0134345%
City Malibu Los Angeles 0.002% 0.0019269%
City Manhattan Beach Los Angeles 0.032% 0.0260686%
City Maywood Los Angeles 0.004% 0.0035528%
City Monrovia Los Angeles 0.031% 0.0254455%
City Montebello Los Angeles 0.030% 0.0250670%
City Monterey Park Los Angeles 0.031% 0.0256677%
City Norwalk Los Angeles 0.031% 0.0258228%
City Palmdale Los Angeles 0.046% 0.0375827%
City Palos Verdes Estates Los Angeles 0.006% 0.0053102% City Paramount Los Angeles 0.011% 0.0091483%
City Pasadena Los Angeles 0.146% 0.1200524%
City Pico Rivera Los Angeles 0.022% 0.0183333%
City Pomona Los Angeles 0.111% 0.0911933%
City Rancho Palos Verdes Los Angeles 0.002% 0.0012645%
City Redondo Beach Los Angeles 0.062% 0.0506992%
City Rosemead Los Angeles 0.003% 0.0028260%
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 271
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6 of 15
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City San Dimas Los Angeles 0.003% 0.0022016%
City San Fernando Los Angeles 0.013% 0.0104837%
City San Gabriel Los Angeles 0.018% 0.0147726%
City San Marino Los Angeles 0.009% 0.0073791%
City Santa Clarita Los Angeles 0.022% 0.0178167%
City Santa Fe Springs Los Angeles 0.031% 0.0257531%
City Santa Monica Los Angeles 0.158% 0.1298513%
City Sierra Madre Los Angeles 0.006% 0.0048646%
City Signal Hill Los Angeles 0.010% 0.0084884%
City South El Monte Los Angeles 0.005% 0.0039603%
City South Gate Los Angeles 0.020% 0.0166272%
City South Pasadena Los Angeles 0.012% 0.0095334%
City Temple City Los Angeles 0.005% 0.0039498%
City Torrance Los Angeles 0.112% 0.0919820%
City Walnut Los Angeles 0.006% 0.0047305%
City West Covina Los Angeles 0.049% 0.0404521%
City West Hollywood Los Angeles 0.013% 0.0108517%
City Whittier Los Angeles 0.032% 0.0260581%
County Madera County Madera 0.349% 0.427% 0.3630669%
City Chowchilla Madera 0.012% 0.0097332%
City Madera Madera 0.039% 0.0318441%
County Marin County Marin 0.564% 0.690% 0.5861325%
City Larkspur Marin 0.015% 0.0124697%
City Mill Valley Marin 0.020% 0.0168401%
City Novato Marin 0.028% 0.0229824%
City San Anselmo Marin 0.009% 0.0078062%
City San Rafael Marin 0.089% 0.0729823%
County Mariposa County Mariposa 0.084% 0.103% 0.0876131% County Mendocino County Mendocino 0.439% 0.536% 0.4558394% City Ukiah Mendocino 0.039% 0.0317153%
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 272
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
County Merced County Merced 0.551% 0.674% 0.5724262%
City Atwater Merced 0.024% 0.0195846%
City Livingston Merced 0.006% 0.0045873%
City Los Banos Merced 0.020% 0.0165142%
City Merced Merced 0.061% 0.0500762%
County Modoc County Modoc 0.065% 0.080% 0.0678250%
County Mono County Mono 0.023% 0.029% 0.0242606%
County Monterey County Monterey 0.908% 1.111% 0.9437083% City Greenfield Monterey 0.006% 0.0050552%
City King City Monterey 0.005% 0.0037355%
City Marina Monterey 0.017% 0.0144098%
City Monterey Monterey 0.041% 0.0336540%
City Pacific Grove Monterey 0.009% 0.0074842%
City Salinas Monterey 0.094% 0.0776576%
City Seaside Monterey 0.023% 0.0191772%
City Soledad Monterey 0.007% 0.0060870%
County Napa County Napa 0.288% 0.352% 0.2994325%
City American Canyon Napa 0.017% 0.0136869%
City Napa Napa 0.078% 0.0642783%
County Nevada County Nevada 0.441% 0.539% 0.4579827%
City Grass Valley Nevada 0.024% 0.0197805%
City Truckee Nevada 0.003% 0.0023843%
County Orange County Orange 4.364% 5.339% 4.5363576%
City Aliso Viejo Orange 0.014% 0.0113841%
City Anaheim Orange 0.554% 0.678% 0.5759282%
City Brea Orange 0.086% 0.0708897%
City Buena Park Orange 0.087% 0.0714352%
City Costa Mesa Orange 0.124% 0.152% 0.1288366%
City Cypress Orange 0.033% 0.0271937%
City Dana Point Orange 0.001% 0.0005560%
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 273
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Fountain Valley Orange 0.055% 0.0455980%
City Fullerton Orange 0.137% 0.168% 0.1425744%
City Garden Grove Orange 0.213% 0.1752482%
City Huntington Beach Orange 0.247% 0.302% 0.2568420%
City Irvine Orange 0.139% 0.170% 0.1442350%
City Laguna Beach Orange 0.047% 0.058% 0.0493043%
City Laguna Hills Orange 0.014% 0.0115457%
City Laguna Niguel Orange 0.001% 0.0007071%
City Laguna Woods Orange 0.001% 0.0006546%
City La Habra Orange 0.060% 0.073% 0.0621049%
City Lake Forest Orange 0.012% 0.0101249%
City La Palma Orange 0.012% 0.0095439%
City Los Alamitos Orange 0.008% 0.0069190%
City Mission Viejo Orange 0.014% 0.0117560%
City Newport Beach Orange 0.179% 0.1470134%
City Orange Orange 0.150% 0.1231320%
City Placentia Orange 0.029% 0.035% 0.0298912%
City Rancho Santa Margarita Orange 0.001% 0.0006296%
City San Clemente Orange 0.008% 0.010% 0.0086083%
City San Juan Capistrano Orange 0.008% 0.0065510%
City Santa Ana Orange 0.502% 0.614% 0.5213866%
City Seal Beach Orange 0.020% 0.0165891%
City Stanton Orange 0.035% 0.0291955%
City Tustin Orange 0.073% 0.0600341%
City Westminster Orange 0.104% 0.127% 0.1082721%
City Yorba Linda Orange 0.044% 0.0362223%
County Placer County Placer 1.045% 1.278% 1.0861002%
City Auburn Placer 0.017% 0.0141114%
City Lincoln Placer 0.031% 0.0255599%
City Rocklin Placer 0.076% 0.0625485%
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 274
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Roseville Placer 0.196% 0.1616559%
County Plumas County Plumas 0.205% 0.251% 0.2128729%
County Riverside County Riverside 4.534% 5.547% 4.7128296% City Banning Riverside 0.017% 0.0143848%
City Beaumont Riverside 0.021% 0.0171135%
City Blythe Riverside 0.012% 0.0096714%
City Canyon Lake Riverside 0.000% 0.0001761%
City Cathedral City Riverside 0.067% 0.0553614%
City Coachella Riverside 0.021% 0.0173054%
City Corona Riverside 0.147% 0.1207083%
City Desert Hot Springs Riverside 0.024% 0.0200433%
City Eastvale Riverside 0.000% 0.0002747%
City Hemet Riverside 0.051% 0.0421792%
City Indio Riverside 0.056% 0.0457794%
City Jurupa Valley Riverside 0.001% 0.0008991%
City Lake Elsinore Riverside 0.021% 0.0172949%
City La Quinta Riverside 0.063% 0.0516732%
City Menifee Riverside 0.032% 0.0260909%
City Moreno Valley Riverside 0.137% 0.1130348%
City Murrieta Riverside 0.048% 0.059% 0.0497423%
City Norco Riverside 0.016% 0.0134542%
City Palm Desert Riverside 0.083% 0.0682465%
City Palm Springs Riverside 0.076% 0.0629862%
City Perris Riverside 0.009% 0.0076774%
City Rancho Mirage Riverside 0.052% 0.0431098%
City Riverside Riverside 0.268% 0.2206279%
City San Jacinto Riverside 0.010% 0.0085936%
City Temecula Riverside 0.022% 0.0180086%
City Wildomar Riverside 0.008% 0.0062500%
County Sacramento County Sacramento 3.797% 4.645% 3.9465887% DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 275
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Citrus Heights Sacramento 0.057% 0.0465312%
City Elk Grove Sacramento 0.130% 0.1066994%
City Folsom Sacramento 0.108% 0.0890850%
City Galt Sacramento 0.017% 0.0143704%
City Rancho Cordova Sacramento 0.008% 0.0067679%
City Sacramento Sacramento 0.721% 0.882% 0.7496530%
County San Benito County San Benito 0.106% 0.130% 0.1101417% City Hollister San Benito 0.027% 0.0225355%
County San Bernardino County San Bernardino 3.259% 3.987% 3.3878124% City Adelanto San Bernardino 0.008% 0.0066640%
City Apple Valley San Bernardino 0.025% 0.0207360%
City Barstow San Bernardino 0.015% 0.0122056%
City Chino San Bernardino 0.064% 0.0525893%
City Chino Hills San Bernardino 0.001% 0.0006388%
City Colton San Bernardino 0.031% 0.0253443%
City Fontana San Bernardino 0.112% 0.0920543%
City Grand Terrace San Bernardino 0.006% 0.0051051%
City Hesperia San Bernardino 0.035% 0.0291522%
City Highland San Bernardino 0.004% 0.0029061%
City Loma Linda San Bernardino 0.009% 0.0071188%
City Montclair San Bernardino 0.039% 0.0322108%
City Ontario San Bernardino 0.179% 0.1472934%
City Rancho Cucamonga San Bernardino 0.084% 0.0689431%
City Redlands San Bernardino 0.057% 0.0469150%
City Rialto San Bernardino 0.073% 0.0603206%
City San Bernardino San Bernardino 0.178% 0.1461880%
City Twentynine Palms San Bernardino 0.002% 0.0012605%
City Upland San Bernardino 0.052% 0.0424460%
City Victorville San Bernardino 0.033% 0.0269400%
City Yucaipa San Bernardino 0.016% 0.0128772%
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 276
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Yucca Valley San Bernardino 0.003% 0.0021228%
County San Diego County San Diego 5.706% 6.980% 5.9309748% City Carlsbad San Diego 0.128% 0.1050485%
City Chula Vista San Diego 0.189% 0.231% 0.1961456%
City Coronado San Diego 0.044% 0.0359095%
City El Cajon San Diego 0.113% 0.0933582%
City Encinitas San Diego 0.061% 0.074% 0.0630289%
City Escondido San Diego 0.145% 0.1192204%
City Imperial Beach San Diego 0.014% 0.0118283%
City La Mesa San Diego 0.055% 0.068% 0.0575593%
City Lemon Grove San Diego 0.022% 0.0183911%
City National City San Diego 0.080% 0.0656808%
City Oceanside San Diego 0.213% 0.1753428%
City Poway San Diego 0.062% 0.0511040%
City San Diego San Diego 1.975% 2.416% 2.0531169%
City San Marcos San Diego 0.089% 0.0733897%
City Santee San Diego 0.033% 0.0268401%
City Solana Beach San Diego 0.017% 0.0138564%
City Vista San Diego 0.052% 0.0425144%
Consolidated San Francisco San Francisco 3.026% 3.702% 3.1457169% County San Joaquin County San Joaquin 1.680% 2.055% 1.7460399% City Lathrop San Joaquin 0.009% 0.0075394%
City Lodi San Joaquin 0.053% 0.0439484%
City Manteca San Joaquin 0.054% 0.0443454%
City Ripon San Joaquin 0.013% 0.0104219%
City Stockton San Joaquin 0.313% 0.383% 0.3256176%
City Tracy San Joaquin 0.084% 0.0692047%
County San Luis Obispo County San Luis Obispo 0.816% 0.999% 0.8484126% City Arroyo Grande San Luis Obispo 0.024% 0.0199053%
City Atascadero San Luis Obispo 0.029% 0.0240680%
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 277
APPENDIX 1
12 of 15
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City El Paso de Robles (Paso Robles) San Luis Obispo 0.043% 0.0353456% City Grover Beach San Luis Obispo 0.017% 0.0137881%
City Morro Bay San Luis Obispo 0.020% 0.0160922%
City San Luis Obispo San Luis Obispo 0.077% 0.0637841%
County San Mateo County San Mateo 1.074% 1.313% 1.1159599% City Belmont San Mateo 0.021% 0.0169860%
City Burlingame San Mateo 0.019% 0.0152537%
City Daly City San Mateo 0.044% 0.0363880%
City East Palo Alto San Mateo 0.013% 0.0103982%
City Foster City San Mateo 0.020% 0.0166101%
City Half Moon Bay San Mateo 0.004% 0.0031638%
City Hillsborough San Mateo 0.013% 0.0110029%
City Menlo Park San Mateo 0.015% 0.0126209%
City Millbrae San Mateo 0.013% 0.0105836%
City Pacifica San Mateo 0.016% 0.0130625%
City Redwood City San Mateo 0.056% 0.0463511%
City San Bruno San Mateo 0.021% 0.0172161%
City San Carlos San Mateo 0.013% 0.0108885%
City San Mateo San Mateo 0.052% 0.0425841%
City South San Francisco San Mateo 0.043% 0.0353943%
County Santa Barbara County Santa Barbara 1.132% 1.385% 1.1768968% City Carpinteria Santa Barbara 0.001% 0.0008938%
City Goleta Santa Barbara 0.004% 0.0028969%
City Lompoc Santa Barbara 0.047% 0.0389379%
City Santa Barbara Santa Barbara 0.122% 0.1004559%
City Santa Maria Santa Barbara 0.058% 0.0479179%
County Santa Clara County Santa Clara 2.404% 2.941% 2.4987553% City Campbell Santa Clara 0.014% 0.0112566%
City Cupertino Santa Clara 0.008% 0.0066824%
City Gilroy Santa Clara 0.025% 0.0202891%
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 278
APPENDIX 1
13 of 15
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Los Altos Santa Clara 0.013% 0.0103338%
City Los Gatos Santa Clara 0.013% 0.0103220%
City Milpitas Santa Clara 0.036% 0.0298120%
City Morgan Hill Santa Clara 0.015% 0.0124619%
City Mountain View Santa Clara 0.041% 0.0334608%
City Palo Alto Santa Clara 0.039% 0.0323080%
City San Jose Santa Clara 0.294% 0.360% 0.3054960%
City Santa Clara Santa Clara 0.067% 0.0549723%
City Saratoga Santa Clara 0.004% 0.0034161%
City Sunnyvale Santa Clara 0.053% 0.0434069%
County Santa Cruz County Santa Cruz 0.783% 0.957% 0.8135396% City Capitola Santa Cruz 0.020% 0.0168191%
City Santa Cruz Santa Cruz 0.143% 0.1180348%
City Scotts Valley Santa Cruz 0.015% 0.0126525%
City Watsonville Santa Cruz 0.063% 0.0520136%
County Shasta County Shasta 1.095% 1.339% 1.1380191%
City Anderson Shasta 0.024% 0.0198896%
City Redding Shasta 0.284% 0.2334841%
City Shasta Lake Shasta 0.004% 0.0031993%
County Siskiyou County Siskiyou 0.228% 0.279% 0.2373393% County Solano County Solano 0.760% 0.6260795%
City Benicia Solano 0.031% 0.0253903%
City Dixon Solano 0.016% 0.0130849%
City Fairfield Solano 0.109% 0.0897317%
City Suisun City Solano 0.021% 0.0176183%
City Vacaville Solano 0.119% 0.0976497%
City Vallejo Solano 0.167% 0.1373644%
County Sonoma County Sonoma 1.218% 1.490% 1.2661290%
City Healdsburg Sonoma 0.032% 0.0266929%
City Petaluma Sonoma 0.081% 0.0667507%
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 279
APPENDIX 1
14 of 15
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Rohnert Park Sonoma 0.041% 0.0340759%
City Santa Rosa Sonoma 0.184% 0.1519070%
City Sonoma Sonoma 0.022% 0.0183438%
City Windsor Sonoma 0.016% 0.0129298%
County Stanislaus County Stanislaus 1.722% 1.4182273%
City Ceres Stanislaus 0.041% 0.0340260%
City Modesto Stanislaus 0.217% 0.1788759%
City Newman Stanislaus 0.006% 0.0046964%
City Oakdale Stanislaus 0.018% 0.0145531%
City Patterson Stanislaus 0.015% 0.0126590%
City Riverbank Stanislaus 0.010% 0.0085699%
City Turlock Stanislaus 0.065% 0.0531966%
County Sutter County Sutter 0.306% 0.374% 0.3179548%
City Yuba City Sutter 0.074% 0.0606242%
County Tehama County Tehama 0.213% 0.261% 0.2216654%
City Red Bluff Tehama 0.014% 0.0117771%
County Trinity County Trinity 0.082% 0.101% 0.0855476%
County Tulare County Tulare 0.809% 0.990% 0.8410949%
City Dinuba Tulare 0.014% 0.0116929%
City Exeter Tulare 0.004% 0.0032479%
City Farmersville Tulare 0.003% 0.0027879%
City Lindsay Tulare 0.007% 0.0057111%
City Porterville Tulare 0.021% 0.0171845%
City Tulare Tulare 0.037% 0.0302273%
City Visalia Tulare 0.066% 0.0545872%
County Tuolumne County Tuolumne 0.486% 0.594% 0.5047621% County Ventura County Ventura 2.192% 2.681% 2.2781201%
City Camarillo Ventura 0.002% 0.0012815%
City Fillmore Ventura 0.002% 0.0020294%
City Moorpark Ventura 0.008% 0.0067337%
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 280
APPENDIX 1
15 of 15
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Oxnard Ventura 0.156% 0.190% 0.1617338%
City Port Hueneme Ventura 0.021% 0.0174145%
City San Buenaventura (Ventura) Ventura 0.085% 0.0702181% City Santa Paula Ventura 0.014% 0.0119072%
City Simi Valley Ventura 0.065% 0.0533043%
City Thousand Oaks Ventura 0.022% 0.0179902%
County Yolo County Yolo 0.357% 0.437% 0.3713319%
City Davis Yolo 0.055% 0.0451747%
City West Sacramento Yolo 0.066% 0.0544321%
City Woodland Yolo 0.058% 0.0477904%
County Yuba County Yuba 0.214% 0.262% 0.2225679%
City Marysville Yuba 0.014% 0.0112079%
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 281
1 6
APPENDIX 2
Cost Reimbursement Procedure

Costs does not include attorneys’ fees, costs, or expenses incurred by private contingency fee counsel. No part of the CA Abatement Accounts Fund will be used to reimburse Costs.
b) First Claims Date means October 1, 2023 or when all applications for reimbursement of Costs, in whole or in part, from funds available under Section IX and Exhibit R of the Walmart Settlement Agreement, Section XIV and Exhibit R of the Teva Settlement Agreement, Section XIII and Exhibit R of the Allergan Settlement Agreement, Section X and Exhibit R of the Distributor Settlement Agreement, Section XI and Exhibit R of the Janssen Settlement Agreement, Section X and Exhibit R of the CVS Settlement Agreement, or Section IX and Exhibit R of the Walgreens Settlement Agreement, have been finally determined under the provisions of those agreements, whichever comes first. c) Special Master means a retired judicial officer or former public lawyer, not presently employed or retained by a Plaintiff Subdivision, who will aggregate, review, and determine the reasonable Costs to be awarded to each Plaintiff Subdivision that submits a claim for reimbursement of Costs. The Special Master will be selected by a majority vote of the votes cast by Plaintiff Subdivisions, with each such subdivision having one vote. d) Plaintiff Subdivision Committee means the committee of Plaintiff Subdivisions that will review and approve the invoices submitted by the Special Master reflecting his or her reasonable time and expenses.

2. Cost Reimbursement to Plaintiff Subdivision
a) Purpose. Substantial resources have been expended to hold Opioid Defendants accountable for creating and profiting from the opioid crisis, and this effort has been a significant catalyst in creating National Opioid Settlements with various manufacturers, distributors, and chain pharmacies.
b) Claims Procedure.
i. If a Plaintiff Subdivision is eligible to seek reimbursement of Costs, in whole or in DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 282
1 7
part, from funds available under Section IX and Exhibit R of the Walmart Settlement Agreement, Section XIV and Exhibit R of the Teva Settlement Agreement, Section XIII and Exhibit R of the Allergan Settlement Agreement, Section X and Exhibit R of the CVS Settlement Agreement, Section IX and Exhibit R of the Walgreens Settlement Agreement, Section X or Exhibit R of the Distributor Settlement Agreement, or Section XI or Exhibit R of the Janssen Settlement Agreement, it must first make a timely application for reimbursement from such funds. To allow sufficient time for determination of those applications, no claim for Costs to the CA Subdivision Fund under this Agreement may be made before the First Claims Date.
ii. A Plaintiff Subdivision that wishes to be reimbursed from the CA Subdivision Fund must submit a claim to the Special Master no later than forty-five (45) days after the First Claims Date. The Special Master will then compile and redistribute the aggregated claim totals for each Plaintiff Subdivision via email to representatives of all the Plaintiff Subdivisions. A claim for attorney and staff time must list, for each attorney or staff member included in the claim, the following information: name, title, total hours claimed, hourly rate (including, if sought, benefits and share of overhead), and narrative summarizing the general nature of the work performed by the attorney or staff member. For reimbursement of “hard” costs, the subdivision may aggregate across a category (e.g., total for travel costs). It is the intention of the Plaintiff Subdivisions that submission of documents related to reimbursement of Costs does not waive any attorney-client privilege or exemptions to the California Public Records Act.
iii. The Special Master may request, at his or her sole option, additional documents or details to assist in the final award of Costs.
iv. The Special Master will review claims for reasonableness and will notify each Plaintiff Subdivision of the final determination of its claim, and will provide a list of all final awards to all Plaintiff Subdivisions by email or, upon request, via First Class U.S. Mail. Any Plaintiff Subdivision may ask the Special Master to reconsider any final award within twenty-one (21) days. The Special Master will make a final determination on any such reconsideration request within thirty (30) days of receipt.
v. Any decision of the Special Master is final and binding, and will be considered under the California Arbitration Act, Code of Civil Procedure section 1280 et seq. as a final arbitration award. Nothing in this agreement is intended to expand the scope of judicial review of the final award for errors of fact or law, and the Parties agree that they may only seek to vacate the award if clear and convincing evidence demonstrates one of the factors set forth in Code of Civil Procedure, section 1286.2, subdivision (a). Plaintiff Subdivisions will have fourteen (14) days after all final awards are made, together with any final determination of a request for DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 283
1 8
reconsideration, to seek review in the Superior Court of California, pursuant to Code of Civil Procedure, section 1285, where the State has filed its Consent Judgment. vi. The Special Master will prepare a report of Costs that includes his or her fees and expenses at least ninety (90) days before the Payment Date for each Annual Payment. The Special Master’s preparation of a report of Costs does not discharge a Plaintiff Subdivision’s reporting requirement under Section V(B)(2) of the Walmart Settlement Agreement.
vii. A member of the Plaintiff Subdivision Committee, which is a CA Participating Subdivision, will submit to the Settlement Fund Administrator and Walmart a report of the fees and expenses incurred by the Special Master pursuant to Section V(B)(2) of the Walmart Settlement Agreement.
c) Claims Priority and Limitation.
i. The Special Master will submit invoices for compensation of reasonable fees and expenses to the Plaintiff Subdivision Committee no later than ninety (90) days prior to the Payment Date for each Annual Payment. The Plaintiff Subdivision Committee will promptly review and, if reasonable, approve the Special Master’s invoice for compensation. The Plaintiff Subdivision Committee will submit approved invoices to the Settlement Fund Administrator for payment. The Special Master’s approved invoices have priority and will be paid first from the CA Subdivision Fund before any award of Costs, subject to the limitation in Section

DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 284
1 9
d) Collateral Source Payments and Third-Party Settlement. i. In the event a Plaintiff Subdivision is awarded compensation, in whole or in part, by any source of funds created as a result of litigation against an Opioid Defendant for its reasonable Costs, it will reduce its claim for Costs from the CA Subdivision Fund by that amount. If a Plaintiff Subdivision has already received a final award of Costs from the CA Subdivision Fund, it will repay the fund up to the prior award of Costs via a payment to the Settlement Fund Administrator or notify the Settlement Fund Administrator that its allocation from the next and subsequent Annual Payments should be reduced accordingly. If the Plaintiff Subdivision is repaying any prior award of Costs, that repayment will occur as soon as is feasible after the Plaintiff Subdivision’s receipt of Cost funds from the collateral source, but no more than 90 days after its receipt from the collateral source. The Settlement Fund Administrator will add any repaid Costs to the CA Subdivision Fund. Any Plaintiff Subdivision that has submitted for reimbursement to any national fund and has not received a final determination by the First Claims Date may request that the settlement administrator withhold some or all of its payment from the CA Subdivision Fund in order to avoid repayment.
ii. In the event a Plaintiff Subdivision reaches a monetary settlement or compromise against any Opioid Defendant outside of the National Opioid Settlement, the monetary portion of such settlement, net of fees paid to outside contingency fee counsel and of funds earmarked strictly for abatement, will be credited against its Costs and the subdivision will be ineligible to recover those credited Costs from the CA Subdivision Fund. Plaintiff Subdivisions negotiating monetary settlements or compromises against any Opioid Defendant outside of the National Opioid Settlement will negotiate for funds to repay any Costs it previously received from the CA Subdivision Fund or for Costs it otherwise might be eligible to claim from the CA Subdivision Fund. If such a settlement is paid after all final approved claims for Costs by all Plaintiff Subdivisions are satisfied in full, the settling subdivision will reimburse the CA Subdivision Fund in that amount by making payment to the Settlement Fund Administrator to add to the CA Subdivision Fund in a manner consistent with the repayments described in section 2.d.i above.

DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 285
1 APPENDIX 3

Pursuant to this Backstop Agreement, [SUBDIVISION] may, subject to the limitations of the Walmart Settlement Agreement and CA Walmart Allocation Agreement, as well as any other limitations imposed by law, use funds that it receives from the Walmart Settlement CA Subdivision Fund to pay a contingent fee to [COUNSEL]. Any such payment from [SUBDIVISION] to [COUNSEL], together with any contingency fees that [COUNSEL] may receive from the national Attorney Fee Fund, will not exceed a total contingency fee of [PERCENTAGE NOT TO EXCEED 15%] of the total gross recovery of [SUBDIVISION] from the Walmart Settlement.
[COUNSEL] certify that they first sought fees and costs from the Attorney Fee Fund created under the Walmart Settlement Agreement before seeking or accepting payment under this backstop agreement. [COUNSEL] further certify that they are not seeking and will not accept payment under this backstop agreement of any litigation fees or costs that have been reimbursed through prior settlements or judgments.

The Attorney General is executing this agreement solely because the definition of “State BackStop Agreement” in Exhibit R of the Walmart Settlement Agreement requires such agreements to be between “a Settling State” and private counsel for a participating subdivision. Neither the California Attorney General nor the State of California have any obligations under this Backstop Agreement, and this Backstop Agreement does not require the payment of any state funds to [SUBDIVISION], [COUNSEL], or any other party.
[DATE] [SUBDIVISION SIGNATURE BLOCK]
[DATE] [COUNSEL SIGNATURE BLOCK]
[DATE] [ATTORNEY GENERAL SIGNATURE BLOCK]
DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 286

EXHIBIT K
Subdivision and Special District Settlement Participation Form Will your subdivision or special district be signing the settlement participation forms for the Allergan and Teva Settlements at this time?
[ ] Yes_ta [ ] No_ta
Governmental Entity: Adelanto city State: CA
Authorized Signatory: /officialname_teva_allergan/
Address 1: /address1_teva_allergan/
Address 2: /address2_teva_allergan/
City, State, Zip: /cit_ta/ /state_ta/ /zi_ta/
Phone: /phone_teva_allergan/
Email: /email_teva_allergan/
The governmental entity identified above (“Governmental Entity”), in order to obtain and in consideration for the benefits provided to the Governmental Entity pursuant to the Agreement dated November 22, 2022 (“Allergan Settlement”), and acting through the undersigned authorized official, hereby elects to participate in the Allergan Settlement, release all Released Claims against all Released Entities, and agrees as follows.

1. The Governmental Entity is aware of and has reviewed the Allergan Settlement, understands that all terms in this Election and Release have the meanings defined therein, and agrees that by this Election, the Governmental Entity elects to participate in the Allergan Settlement as provided therein.

2. Following the execution of this Settlement Participation Form, the Governmental Entity shall comply with Section III.B of the Allergan Settlement regarding Cessation of Litigation Activities.

3. The Governmental Entity shall, within fourteen (14) days of the Reference Date and prior to the filing of the Consent Judgment, file a request to dismiss with prejudice any Released Claims that it has filed. With respect to any Released Claims pending in In re National Prescription Opiate Litigation, MDL No. 2804, the Governmental Entity authorizes the MDL Plaintiffs’ Executive Committee to execute and file on behalf of the Governmental Entity a Stipulation of Dismissal With Prejudice substantially in the form found at https://nationalopioidsettlement.com.

4. The Governmental Entity agrees to the terms of the Allergan Settlement pertaining to Subdivisions and Special Districts as defined therein.

5. By agreeing to the terms of the Allergan Settlement and becoming a Releasor, the Governmental Entity is entitled to the benefits provided therein, including, if applicable, monetary payments beginning after the Effective Date.

6. The Governmental Entity agrees to use any monies it receives through the Allergan Settlement solely for the purposes provided therein.
1 DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 Jessie Flores
11600 Air Expressway
Adelanto, CA 92301
760-246-2300
[email protected]
287

8. The Governmental Entity has the right to enforce the Allergan Settlement as provided therein.

9. The Governmental Entity, as a Participating Subdivision or Participating Special District, hereby becomes a Releasor for all purposes in the Allergan Settlement, including, but not limited to, all provisions of Section V (Release), and along with all departments, agencies, divisions, boards, commissions, Subdivisions, districts, instrumentalities of any kind and attorneys, and any person in their official capacity whether elected or appointed to serve any of the foregoing and any agency, person, or other entity claiming by or through any of the foregoing, and any other entity identified in the definition of Releasor, provides for a release to the fullest extent of its authority. As a Releasor, the Governmental Entity hereby absolutely, unconditionally, and irrevocably covenants not to bring, file, or claim, or to cause, assist in bringing, or permit to be brought, filed, or claimed, or to otherwise seek to establish liability for any Released Claims against any Released Entity in any forum whatsoever. The releases provided for in the Allergan Settlement are intended to be broad and shall be interpreted so as to give the Released Entities the broadest possible bar against any liability relating in any way to Released Claims and extend to the full extent of the power of the Governmental Entity to release claims. The Allergan Settlement shall be a complete bar to any Released Claim.

10. The Governmental Entity hereby takes on all rights and obligations of a Participating Subdivision or Participating Special District as set forth in the Allergan Settlement.

11. In connection with the releases provided for in the Allergan Settlement, each Governmental Entity expressly waives, releases, and forever discharges any and all provisions, rights, and benefits conferred by any law of any state or territory of the United States or other jurisdiction, or principle of common law, which is similar, comparable, or equivalent to § 1542 of the California Civil Code, which reads:

General Release; extent. A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release that, if known by him or her, would have materially affected his or her settlement with the debtor or released party.

A Releasor may hereafter discover facts other than or different from those which it knows, believes, or assumes to be true with respect to the Released Claims, but each Governmental Entity hereby expressly waives and fully, finally, and forever settles, releases and discharges, upon the Effective Date, any and all Released Claims that may exist as of such date but which Releasors do not know or suspect to exist, whether through ignorance, oversight, error, negligence or through no fault whatsoever, and which, if known, would materially affect the Governmental Entities’ decision to participate in the Allergan Settlement.

12. Nothing herein is intended to modify in any way the terms of the Allergan Settlement, to which the Governmental Entity hereby agrees. To the extent this Settlement Participation Form is interpreted differently from the Allergan Settlement in any respect, the Allergan Settlement controls.
2 DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 288
I have all necessary power and authorization to execute this Settlement Participation Form on behalf of the Governmental Entity.

Signature: /signer_1_teva_allergan/
Name: /name_1_teva_allergan/
Title: /title_1_teva_allergan/
Date: /date_1_teva_allergan/
3 DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 Jessie Flores
City Manager
April 12, 2023
289
Exhibit K
Subdivision and Special District Settlement Participation Form Governmental Entity: Adelanto city State: CA
Authorized Signatory: /officialname_teva_allergan/
Address 1: /address1_teva_allergan/
Address 2: /address2_teva_allergan/
City, State, Zip: /cit_ta/ /state_ta/ /zi_ta/
Phone: /phone_teva_allergan/
Email: /email_teva_allergan/
The governmental entity identified above (“Governmental Entity”), in order to obtain and in consideration for the benefits provided to the Governmental Entity pursuant to the Agreement dated November 22, 2022 (“Teva Settlement”), and acting through the undersigned authorized official, hereby elects to participate in the Teva Settlement, release all Released Claims against all Released Entities, and agrees as follows.

1. The Governmental Entity is aware of and has reviewed the Teva Settlement, understands that all terms in this Election and Release have the meanings defined therein, and agrees that by this Election, the Governmental Entity elects to participate in the Teva Settlement as provided therein.

2. Following the execution of this Settlement Participation Form, the Governmental Entity shall comply with Section III.B of the Teva Settlement regarding Cessation of Litigation Activities.

3. The Governmental Entity shall, within 14 days of the Reference Date and prior to the filing of the Consent Judgment, file a request to dismiss with prejudice any Released Claims that it has filed. With respect to any Released Claims pending in In re National Prescription Opiate Litigation, MDL No. 2804, the Governmental Entity authorizes the Plaintiffs’ Executive Committee to execute and file on behalf of the Governmental Entity a Stipulation of Dismissal With Prejudice substantially in the form found at https://nationalopioidsettlement.com.

4. The Governmental Entity agrees to the terms of the Teva Settlement pertaining to Subdivisions as defined therein.

5. By agreeing to the terms of the Teva Settlement and becoming a Releasor, the Governmental Entity is entitled to the benefits provided therein, including, if applicable, monetary payments beginning after the Effective Date.

6. The Governmental Entity agrees to use any monies it receives through the Teva Settlement solely for the purposes provided therein.

7. The Governmental Entity submits to the jurisdiction of the court in the Governmental Entity’s state where the Consent Judgment is filed for purposes limited to that court’s role as provided in, and for resolving disputes to the extent provided in, the Teva Settlement. 1 DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 Jessie Flores
11600 Air Expressway
Adelanto, CA 92301
760-246-2300
[email protected]
290

8. The Governmental Entity has the right to enforce the Teva Settlement as provided therein.

9. The Governmental Entity, as a Participating Subdivision or Participating Special District, hereby becomes a Releasor for all purposes in the Teva Settlement, including but not limited to all provisions of Section V (Release), and along with all departments, agencies, divisions, boards, commissions, districts, instrumentalities of any kind and attorneys, and any person in their official capacity elected or appointed to serve any of the foregoing and any agency, person, or other entity claiming by or through any of the foregoing, and any other entity identified in the definition of Releasor, provides for a release to the fullest extent of its authority. As a Releasor, the Governmental Entity hereby absolutely, unconditionally, and irrevocably covenants not to bring, file, or claim, or to cause, assist or permit to be brought, filed, or claimed, or to otherwise seek to establish liability for any Released Claims against any Released Entity in any forum whatsoever. The releases provided for in the Teva Settlement are intended by Released Entitles and the Governmental Entity to be broad and shall be interpreted so as to give the Released Entities the broadest possible bar against any liability relating in any way to Released Claims and extend to the full extent of the power of the Governmental Entity to release claims. The Teva Settlement shall be a complete bar to any Released Claim.

10. The Governmental Entity hereby takes on all rights and obligations of a Participating Subdivision or Participating Special District as set forth in the Teva Settlement.

11. In connection with the releases provided for in the Teva Settlement, each Governmental Entity expressly waives, releases, and forever discharges any and all provisions, rights, and benefits conferred by any law of any state or territory of the United States or other jurisdiction, or principle of common law, which is similar, comparable, or equivalent to § 1542 of the California Civil Code, which reads:

12. Nothing herein is intended to modify in any way the terms of the Teva Settlement, to which Governmental Entity hereby agrees. To the extent this Election and Release is interpreted differently from the Teva Settlement in any respect, the Teva Settlement controls. 2 DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 291
I have all necessary power and authorization to execute this Election and Release on behalf of the Governmental Entity.

EXHIBIT K
Subdivision Participation and Release Form
Will your subdivision or special district be signing the settlement participation form for the CVS Settlement at this time?
[ ] Yes_cv [ ] No_cv
Governmental Entity: Adelanto city State: CA
Authorized Signatory: /officialname_cvs/
Address 1: /address1_cvs/
Address 2: /address2_cvs/
City, State, Zip: /cit_cv/ /state_cv/ /zi_cv/
Phone: /phone_cvs/
Email: /email_cvs/
The governmental entity identified above (“Governmental Entity”), in order to obtain and in consideration for the benefits provided to the Governmental Entity pursuant to the Settlement Agreement dated December 9, 2022 (“CVS Settlement”), and acting through the undersigned authorized official, hereby elects to participate in the CVS Settlement, release all Released Claims against all Released Entities, and agrees as follows.

1. The Governmental Entity is aware of and has reviewed the CVS Settlement, understands that all terms in this Participation and Release Form have the meanings defined therein, and agrees that by executing this Participation and Release Form, the Governmental Entity elects to participate in the CVS Settlement and become a Participating Subdivision as provided therein.

2. The Governmental Entity shall promptly, and in any event no later than 14 days after the Reference Date and prior to the filing of the Consent Judgment, dismiss with prejudice any Released Claims that it has filed. With respect to any Released Claims pending in In re National Prescription Opiate Litigation, MDL No. 2804, the Governmental Entity authorizes the Plaintiffs’ Executive Committee to execute and file on behalf of the Governmental Entity a Stipulation of Dismissal with Prejudice substantially in the form found at https://nationalopioidsettlement.com.

3. The Governmental Entity agrees to the terms of the CVS Settlement pertaining to Participating Subdivisions as defined therein.

4. By agreeing to the terms of the CVS Settlement and becoming a Releasor, the Governmental Entity is entitled to the benefits provided therein, including, if applicable, monetary payments beginning after the Effective Date.

5. The Governmental Entity agrees to use any monies it receives through the CVS Settlement solely for the purposes provided therein.
1 DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 Jessie Flores
11600 Air Expressway
Adelanto, CA 92301
760-246-2300
[email protected]
293

6. The Governmental Entity submits to the jurisdiction of the court in the Governmental Entity’s state where the Consent Judgment is filed for purposes limited to that court’s role as provided in, and for resolving disputes to the extent provided in, the CVS Settlement. The Governmental Entity likewise agrees to arbitrate before the National Arbitration Panel as provided in, and for resolving disputes to the extent otherwise provided in, the CVS Settlement.

7. The Governmental Entity has the right to enforce the CVS Settlement as provided therein.

8. The Governmental Entity, as a Participating Subdivision, hereby becomes a Releasor for all purposes in the CVS Settlement, including without limitation all provisions of Section XI (Release), and along with all departments, agencies, divisions, boards, commissions, districts, instrumentalities of any kind and attorneys, and any person in their official capacity elected or appointed to serve any of the foregoing and any agency, person, or other entity claiming by or through any of the foregoing, and any other entity identified in the definition of Releasor, provides for a release to the fullest extent of its authority. As a Releasor, the Governmental Entity hereby absolutely, unconditionally, and irrevocably covenants not to bring, file, or claim, or to cause, assist or permit to be brought, filed, or claimed, or to otherwise seek to establish liability for any Released Claims against any Released Entity in any forum whatsoever. The releases provided for in the CVS Settlement are intended by the Parties to be broad and shall be interpreted so as to give the Released Entities the broadest possible bar against any liability relating in any way to Released Claims and extend to the full extent of the power of the Governmental Entity to release claims. The CVS Settlement shall be a complete bar to any Released Claim.

9. The Governmental Entity hereby takes on all rights and obligations of a Participating Subdivision as set forth in the CVS Settlement.

10. In connection with the releases provided for in the CVS Settlement, each Governmental Entity expressly waives, releases, and forever discharges any and all provisions, rights, and benefits conferred by any law of any state or territory of the United States or other jurisdiction, or principle of common law, which is similar, comparable, or equivalent to § 1542 of the California Civil Code, which reads:

General Release; extent. A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release that, if known by him or her would have materially affected his or her settlement with the debtor or released party.

11. Nothing herein is intended to modify in any way the terms of the CVS Settlement, to which Governmental Entity hereby agrees. To the extent this Participation and Release Form is interpreted differently from the CVS Settlement in any respect, the CVS Settlement controls.

I have all necessary power and authorization to execute this Participation and Release Form on behalf of the Governmental Entity.

Signature: /signer_1_cvs/
Name: /name_1_cvs/
Title: /title_1_cvs/
Date: /date_1_cvs/
3 DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 Jessie Flores
City Manager
April 12, 2023
295

EXHIBIT K
Subdivision Participation and Release Form
Will your subdivision or special district be signing the settlement participation form for the Walgreens Settlement at this time?
[ ] Yes_wg [ ] No_wg
Governmental Entity: Adelanto city State: CA
Authorized Signatory: /officialname_walgreens/
Address 1: /address1_ walgreens/
Address 2: /address2_ walgreens/
City, State, Zip: /cit_wg/ /state_wg/ /zi_wg/
Phone: /phone_walgreens/
Email: /email_walgreens/
The governmental entity identified above (“Governmental Entity”), in order to obtain and in consideration for the benefits provided to the Governmental Entity pursuant to the Settlement Agreement dated December 9, 2022 (“Walgreens Settlement”), and acting through the undersigned authorized official, hereby elects to participate in the Walgreens Settlement, release all Released Claims against all Released Entities, and agrees as follows.

1. The Governmental Entity is aware of and has reviewed the Walgreens Settlement, understands that all terms in this Participation and Release Form have the meanings defined therein, and agrees that by executing this Participation and Release Form, the Governmental Entity elects to participate in the Walgreens Settlement and become a Participating Subdivision as provided therein.

3. The Governmental Entity agrees to the terms of the Walgreens Settlement pertaining to Participating Subdivisions as defined therein.

4. By agreeing to the terms of the Walgreens Settlement and becoming a Releasor, the Governmental Entity is entitled to the benefits provided therein, including, if applicable, monetary payments beginning after the Effective Date.

5. The Governmental Entity agrees to use any monies it receives through the Walgreens Settlement solely for the purposes provided therein.
1 DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 Jessie Flores
11600 Air Expressway
Adelanto, CA 92301
760-246-2300
[email protected]
296

6. The Governmental Entity submits to the jurisdiction of the court in the Governmental Entity’s state where the Consent Judgment is filed for purposes limited to that court’s role as provided in, and for resolving disputes to the extent provided in, the Walgreens Settlement. The Governmental Entity likewise agrees to arbitrate before the National Arbitration Panel as provided in, and for resolving disputes to the extent otherwise provided in, the Walgreens Settlement.

7. The Governmental Entity has the right to enforce the Walgreens Settlement as provided therein.

8. The Governmental Entity, as a Participating Subdivision, hereby becomes a Releasor for all purposes in the Walgreens Settlement, including without limitation all provisions of Section XI (Release), and along with all departments, agencies, divisions, boards, commissions, districts, instrumentalities of any kind and attorneys, and any person in their official capacity elected or appointed to serve any of the foregoing and any agency, person, or other entity claiming by or through any of the foregoing, and any other entity identified in the definition of Releasor, provides for a release to the fullest extent of its authority. As a Releasor, the Governmental Entity hereby absolutely, unconditionally, and irrevocably covenants not to bring, file, or claim, or to cause, assist or permit to be brought, filed, or claimed, or to otherwise seek to establish liability for any Released Claims against any Released Entity in any forum whatsoever. The releases provided for in the Walgreens Settlement are intended by the Parties to be broad and shall be interpreted so as to give the Released Entities the broadest possible bar against any liability relating in any way to Released Claims and extend to the full extent of the power of the Governmental Entity to release claims. The Walgreens Settlement shall be a complete bar to any Released Claim.

9. The Governmental Entity hereby takes on all rights and obligations of a Participating Subdivision as set forth in the Walgreens Settlement.

10. In connection with the releases provided for in the Walgreens Settlement, each Governmental Entity expressly waives, releases, and forever discharges any and all provisions, rights, and benefits conferred by any law of any state or territory of the United States or other jurisdiction, or principle of common law, which is similar, comparable, or equivalent to § 1542 of the California Civil Code, which reads:

General Release; extent. A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release that, if known by him or her would have materially affected his or her settlement with the debtor or released party.

11. Nothing herein is intended to modify in any way the terms of the Walgreens Settlement, to which Governmental Entity hereby agrees. To the extent this Participation and Release Form is interpreted differently from the Walgreens Settlement in any respect, the Walgreens Settlement controls.

I have all necessary power and authorization to execute this Participation and Release Form on behalf of the Governmental Entity.

Signature: /signer_1_walgreens/
Name: /name_1_walgreens/
Title: /title_1_walgreens/
Date: /date_1_walgreens/
3 DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 Jessie Flores
City Manager
April 12, 2023
298

EXHIBIT K
Subdivision Participation Form
Will your subdivision or special district be signing the settlement participation form for the Walmart Settlement at this time?
[ ] Yes_wm [ ] No_wm
Governmental Entity: Adelanto city State: CA
Authorized Official: /officialname_walmart/
Address 1: /address1_walmart/
Address 2: /address2_walmart/
City, State, Zip: /cit_wm/ /state_wm/ /zi_wm/
Phone: /phone_walmart/
Email: /email_walmart/
The governmental entity identified above (“Governmental Entity”), in order to obtain and in consideration for the benefits provided to the Governmental Entity pursuant to the Settlement Agreement dated November 14, 2022 (“Walmart Settlement”), and acting through the undersigned authorized official, hereby elects to participate in the Walmart Settlement, release all Released Claims against all Released Entities, and agrees as follows.

1. The Governmental Entity is aware of and has reviewed the Walmart Settlement, understands that all terms in this Election and Release have the meanings defined therein, and agrees that by this Election, the Governmental Entity elects to participate in the Walmart Settlement and become a Participating Subdivision as provided therein.

2. The Governmental Entity shall promptly, and in any event within 14 days of the Effective Date and prior to the filing of the Consent Judgment, dismiss with prejudice any Released Claims that it has filed. With respect to any Released Claims pending in In re National Prescription Opiate Litigation, MDL No. 2804, the Governmental Entity authorizes the Plaintiffs’ Executive Committee to execute and file on behalf of the Governmental Entity a Stipulation of Dismissal With Prejudice substantially in the form found at https://nationalopioidsettlement.com/.

3. The Governmental Entity agrees to the terms of the Walmart Settlement pertaining to Subdivisions as defined therein.

4. By agreeing to the terms of the Walmart Settlement and becoming a Releasor, the Governmental Entity is entitled to the benefits provided therein, including, if applicable, monetary payments beginning after the Effective Date.

5. The Governmental Entity agrees to use any monies it receives through the Walmart Settlement solely for the purposes provided therein.
1 DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 Jessie Flores
11600 Air Expressway
760-246-2300
[email protected]
Adelanto, CA 92301
299

7. The Governmental Entity has the right to enforce the Walmart Settlement as provided therein.

8. The Governmental Entity, as a Participating Subdivision, hereby becomes a Releasor for all purposes in the Walmart Settlement, including but not limited to all provisions of Section X (Release), and along with all departments, agencies, divisions, boards, commissions, districts, instrumentalities of any kind and attorneys, and any person in their official capacity elected or appointed to serve any of the foregoing and any agency, person, or other entity claiming by or through any of the foregoing, and any other entity identified in the definition of Releasor, provides for a release to the fullest extent of its authority. As a Releasor, the Governmental Entity hereby absolutely, unconditionally, and irrevocably covenants not to bring, file, or claim, or to cause, assist or permit to be brought, filed, or claimed, or to otherwise seek to establish liability for any Released Claims against any Released Entity in any forum whatsoever. The releases provided for in the Walmart Settlement are intended by the Parties to be broad and shall be interpreted so as to give the Released Entities the broadest possible bar against any liability relating in any way to Released Claims and extend to the full extent of the power of the Governmental Entity to release claims. The Walmart Settlement shall be a complete bar to any Released Claim.

9. In connection with the releases provided for in the Walmart Settlement, each Governmental Entity expressly waives, releases, and forever discharges any and all provisions, rights, and benefits conferred by any law of any state or territory of the United States or other jurisdiction, or principle of common law, which is similar, comparable, or equivalent to § 1542 of the California Civil Code, which reads:

10. Nothing herein is intended to modify in any way the terms of the Walmart Settlement, to which Governmental Entity hereby agrees. To the extent this Election and Release is interpreted differently from the Walmart Settlement in any respect, the Walmart Settlement controls.
2 DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 300
I have all necessary power and authorization to execute this Election and Release on behalf of the Governmental Entity.

Signature: /signer_1_walmart/
Name: /name_1_walmart/
Title: /title_1_walmart/
Date: /date_1_walmart/
3 DocuSign Envelope ID: 78C6110C-4B2E-49AC-B522-A9DB34DFD026 Jessie Flores
City Manager
April 12, 2023
301

CITY COUNCIL AGENDA REPORT
DATE: April 12, 2023
TO: Honorable Mayor and City Council Members
FROM: Jessie Flores, City Manager
BY: Marc Tran, City Attorney
SUBJECT: DISCUSSION AND CONSIDERATION OF THE FORMATION OF AN AD HOC

CITY COUNCIL SUBCOMMITTEE TO ESTABLISH CRITERIA FOR AWARDING

SCHOLARSHIPS THROUGH THE CANNABIS SCHOLARSHIP PROGRAM
STAFF RECOMMENDS:

Staff recommends that the City Council discuss and consider a resolution creating a City Council ad hoc committee for the purposes of establishing necessary criteria for awarding scholarships from the Adelanto Cannabis Scholarship Program (“CSP”) and to recommend scholarship award recipients. The City Council approved the CSP in February 2022. The Resolution would also enable scholarship awards for students beginning attendance at an eligible academic institution for the 2023/24 academic year.

BACKGROUND:

On February 9, 2022, the Adelanto City Council approved and adopted Resolution No. 22-08, establishing the Cannabis Scholarship Program (“CSP” or “Program”). The CSP’s public purpose is to invest in its residents, promote career growth and opportunities, and encourage the pursuit of higher education.

To be eligible, a candidate for the Program must (1) be a high school student residing in the City of Adelanto, (2) must graduate from a high school located within the City, (3) must be admitted to a college, university, or other post-secondary institution located within San Bernardino County, and must attend that institution beginning no later than the 2022-2023 academic year.

The scholarships are funded by general tax revenue collected from the City’s cannabis-related businesses, more specifically, three percent (3%) of the total annual revenue generated from cannabis-related activities.

As established in Resolution No. 22-08, the City Council may, in its sole discretion, adjust the allocated percentage of the general tax revenue for the Program on an as-needed basis. In addition, the City Council may continue to develop criteria related to the eligibility and qualifications of scholarship recipients, the number of scholarships to award, the amount awarded for each scholarship, eligible uses for the funds, and any other relevant criteria.

Therefore, staff recommends that the City Council approve attached Resolution No. 23-26 302
September 19, 2022

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Adelanto City CouncilApril 12, 2023

Adelanto City Council
April 12, 2023