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The tentative schedule for this RFP is as follows:
Release of RFP
Monday, November 14, 2022.
Deadline for Questions and Incuiries
Tuesday, November 29, 2022, by 5:00 PM.
Virtual Meeting Question and Answer Session
Wednesday, November 30, 2022, 3:00 PM.
Proposal Submission Deadline
Thursday, December 15, 2022, by 5:00 PM.
Interviews for Qualified Consultants
Week of December 19, 2022.
City Council Consultant selected/Contract
Approval
Monday, January 23, 2023.
DEFINITIONS, TERf
AND CONDITIONS
Definitions, Terms, and Conditions
Definitions: To simplify and clarify the language throughout this Request for Proposals, the following definitions shall apply:
CITY COUNCIL: The elected officials of the City of Bell Gardens, who have been given the authority to exercise such powers and jurisdiction on all City business as conferred by the State Constitution and the City of Bell Gardens Municipal Code.
CONTRACT: An agreement between the City and the selected consultant to furnish professional services over a designated period (such as, in the sample form attached as Exhibit 1).
CONSULTANT: Organization, firm or individual offering a proposal in response to this RFP.
Proposal General Terms and Conditions:
Electronic Documents
Consultants may be supplied with the original RFP documents in electronic form to aid in the preparation of proposal(s). By accepting these electronic documents, each Consultant agrees not to edit or change the language or format of these documents. Submission of a proposal by Consultants signifies full agreement with this requirement.
Receipt of Proposals
Submitted proposal(s) must be properly addressed and received by the City prior to the date and time specified. The mere fact that the proposal was dispatched will not be considered; the Consultant must ensure that the proposal is delivered.
Proposals received after the date and time specified shall be returned and will be considered void and unacceptable. The City is not responsible for the lateness of the mail carrier, etc.; and the time/date stamp of receipt by the City Clerk's Office shall be the official time of receipt.
Alterations
Proposal documents cannot be physically altered or amended after the closing date. Alterations Exhibit 2
164
made before closing must be initialed by the Consultant to guarantee authenticity. Proposals may not be withdrawn after the proposal closing date and each Consultant agrees to this stipulation upon submittal of its proposal. However, all proposals are subject to negotiation before a contract is awarded as further described below.
Communication
The City shall not be responsible for any verbal communication between any employee of the City and any proposing Consultant. Only written requirements and qualifications will be considered.
No oral statement of any person shall modify or otherwise change, or affect the terms, conditions, or specifications stated in the resulting contract.
Reservations
This RFP does not obligate the City to award a contract and the City reserves the right to accept or reject any or all proposals received because of this request, to negotiate with all qualified sources, or to cancel, in part or in its entirety, this RFP if found in the best interest of the City.
Reimbursements
All costs incurred in the preparation of a proposal, the submission of additional information, and/or any other aspect of preparing a proposal will be borne by the Consultant.
Certification
Any proposal that does not contain all the information requested in this RFP will be considered incomplete and may be rejected by the City.
Funding
The City operates and is funded on a fiscal year basis. Accordingly, the City reserves the right to terminate, without any liability, any contract for which funding is not available.
Negotiations
Negotiations may be conducted with responsible firms who submit proposals that are reasonably susceptible of being selected. All firm(s) reasonably susceptible of being selected based on criteria set forth in this RFP may be given an opportunity to make a presentation and/or interview. Although this process will ultimately result in the award of a single contract, the City reserves the right to negotiate a contract with more than one firm.
Additional Information
During the proposal evaluation process, the City reserves the right, where it may serve the City's best interest, to request additional information or clarifications from proposers. The City also reserves the right to investigate the qualifications of the proposing Consultant(s) as it deems appropriate.
RFP
Proposers should be aware that the RFP and the contents of the successful proposal will become a part of any subsequent contractual documents that may arise from this RFP.
Exhibit 2
165
All data, documents and other products used during the life of the project will remain in the public domain upon the project's completion. Similarly, all responses to this RFP will become the property of the City and will be retained or disposed of in the City's discretion.
Award of the Contract
Award of the contract will be by the City Council at a public meeting.
BACKGROUND
The City of Bell Gardens is a General Law City governed by an elected five -member City Council that appoints the City Manager. The City has a population of approximately 42,000 in an area of 2.4 square miles and is located in the southeastern part of Los Angeles County.
The City is seeking the services of an experienced professional consulting firm to conduct a comprehensive fee study to determine appropriate program fees for the City's newly created RSTEP Program in order to recover all program costs associated with services provided by the RSTEP Program. The assistance to be provided by the Consultant is necessary to ensure the City's proper and timely collection of fees and expenditures of program funds.
SCOPE OF SERVICES
The selected Consultant will be responsible for providing the following services to the City:
Development of new program fee(s), rental registry rates and charges including:
a. Meet with City staff and conduct interviews, as needed, to gain an understanding of the City's RSTEP Program processes and operations.
b. Conduct interviews with members of the City's rent control ad hoc committee, as needed.
c. Review the following City documents:
- Ordinance (Exhibit 2)
d. Document the justification for the implementation of each fee and its rate. e. Document the justification for the potential implementation of a rental board and its associated costs.
f. Review similar fees and applicability in comparable municipalities and document the findings.
2. Costs should include:
a. Appropriate general and administrative overhead allocations to RSTEP Program activities, including but not limited to:
- Registry data base creation and maintenance,
- City staff allocation, and
- City attorney costs
Exhibit 2
166
b. Applicable overhead rates for use in calculating the City's billable hourly rates, c. Potential future efforts associated with verifying voluntary or required capital improvement projects, and
d. Appropriate, separate, and specific administrative overhead allocations to RSTEP Program activities for a Rent Board administration and compensation.
3. Report on other matters revealed during the Consultant's evaluation that the City should consider addressing.
Present all draft findings to Community Development Director and designated City team for review; and make presentation of final report and conclusions to City Council.
5. Provide a completed draft report to be reviewed by Community Development Director, City Attorney, and City Management team prior to finalizing. The draft and final fee study report should include the following:
a. Background information
b. Description of overall methodology.
c. Supporting justifications for the implementation of each new program fee and its applicable rate.
d. Recommendations regarding the use of fees based on the research and cost analysis performed by the Consultant and the Consultant's knowledge and expertise of municipal fees. Specifically, with a comparison of fees charged in other jurisdictions with similar programs and services. e. Best practices for establishing new fees and a model or methodology to allow the City the ability to calculate the estimated costs of providing any new services under potential consideration, including a rent board.
f Any additional matters that City staff should be made aware of, findings, and recommendations.
6. Attend staff and public meetings, as needed upon request by the Community Development Director.
PROPOSAL FORMAT AND CONTENT REQUIREMENTS'
The following instructions describe the form in which proposals must be submitted.
Responses to the following items will be used for proposal evaluation. Proposals that do not contain responses to each of the requirement items will be considered incomplete and may be rejected.
Proposal documents should provide a straightforward, concise description of the Consultant's Exhibit 2
167
capabilities to satisfy the requirements of this RFP. Emphasis should be on completeness, clarity of content, and conveyance of the information requested by the City. The requirements stated do not preclude a proposer from furnishing additional reports, functions, and costs as deemed appropriate.
The proposal must contain the following eight (8) elements describing how the Consultant will perform the assignment:
1. Transmittal Letter
A letter of transmittal signed by an individual authorized to bind the proposer stating the proposer has read and will comply with all terms and conditions of the RFP. The transmittal letter will contain, at a minimum: a) company name and address; and b) an executive summary briefly describing the proposer's ability to perform the work requested, a history of the proposer's background and experience providing services.
Conflict of Interest Statement: The proposer shall disclose any financial, business, or other relationship with the City that may have an impact upon the outcome of this contract. Particular attention should be paid to compliance with Government Code section 1090.
2. Work Plan/Project Approach
Include description of a) the approach and methodology to be taken in addressing the scope of work, b) a listing of the specific tasks, milestones and deliverables required to properly perform the services, and c) a timeline from inception to completion.
3. Management and Staffing
Describe the management and staffing configuration to be utilized to complete the scope of work. Describe the qualifications of staff to be assigned to the project, their title, and types and amount of equivalent experience. Resumes of all proposed personnel must be included. The proposal must indicate who will have primary responsibility for this project.
4. Qualifications, Prior Related Experience and References Firms or individuals must demonstrate competence and capability to satisfactorily perform the scope of work. A description of the proposer's history, organization structure and related work experiences should be included. Identify the relevant studies performed by the proposer in the last five (5) years.
Exhibit 2
168
A list of at least three (3) recent references, including local government agencies where a similar service is or has been provided and any private clients. Include a) the names and telephone numbers of the firm and the key managers and professionals assigned to the project, b) brief description of the project, and c) time period for the project.
5. Cost and Pricing
Proposals must include staff hourly rates, plus overhead, travel and any additional project costs proposed. All items must be itemized in detail. The total project cost must be expressed as a "Not to Exceed" amount for items 1-6 under the "Scope of Services" section in this RFP.
In addition, an hourly fee schedule must be submitted with the proposal. If the scope of work is substantially modified, the extra cost or credit must be negotiated based on the submitted hourly rates.
6. Additions or Exceptions
A single and separate section with the heading "ADDITIONS OR EXCEPTIONS TO THE CITY'S REQUEST FOR PROPOSAL" containing a complete and detailed description of all the Consultant's exceptions to the provisions and conditions of the attached City standard professional services contract.
7. Pending Litigation
Include an explanation and status, if in the last five years, the firm or an office or principal of the firm has been involved in any substantiated complaints, litigation, legal proceedings, or investigations by a regulatory authority.
8. Proof of Insurance
Evidence of insurance coverages must be included.
The award of this agreement will be made to the most qualified Consultant whose proposal complies with the prescribed requirements. The City reserves the right to reject any or all proposals and to waive any technical errors, irregularities, or discrepancies, if to do so is deemed to serve the best interests of the City. In no event will an award be made until all necessary investigations are made as to the responsibility and qualifications of the Consultant Exhibit 2
169
to whom it is proposed to make such award.
Proposals will be reviewed and evaluated by the Community Development Director and City staff, and ranked based on the following considerations:
• Work plan and approach to scope of work
• Experience of proposed personnel and the Consultant in providing services, including individual team members assigned to various tasks • Completeness and thoroughness of the proposal
• Demonstrated understanding and ability to complete the scope of work • Proven record for completing similar projects on time and within budget with other government agencies
• Pricing
If further clarifications or negotiations are required, on -site interviews may be conducted.
Participation in these interviews will be at the expense of the Consultant(s). The interview panel will be made up of staff members or representatives from the City. Recommendations will be forwarded to the City Council for final selection and award.
Proposals failing to provide sufficient information and assurances of performance to adequately assess each category of the required services and/or failing to comply with the requirements and conditions of this RFP may not be given further consideration.
Each proposal will be considered along with those of other responding Consultants, with respect to ability to perform effectively and efficiently those Scope of Services outlined above.
Close coordination with the City is required to assure that all requirements will be met. The City reserves the right to withdraw this RFP at any time without any prior notice. Further, the City makes no representations that any contract will be awarded to any Consultant responding to this RFP. The City expressly reserves the right to postpone reviewing the proposals for its own convenience and to reject any or all proposals responding to this RFP without indicating any reasons for such rejection(s).
Exhibit 2
170
Exhibit 1
Exhibit 2
171
2022
PROFESSIONAL SERVICES AGREEMENT
(Engagement: Rent Stabilization and Tenant Eviction Protections Program Comprehensive Fee Study
(Parties: City of Bell Gardens and
1. IDENTIFICATION
THIS PROFESSIONAL SERVICES AGREEMENT ("Agreement") is entered into by and between the City of Bell Gardens ("City"), a California municipal corporation and ("Consultant"). The capitalized term "Party" or "Parties" may refer to either City or Consultant, interchangeably as appropriate.
2. RECITALS
WHEREAS, City requires consulting services to the Community Development ti L ti fY
Department to address and create ������������������3�������������������?����������� �� ����� The Rent Stabilization and Tenant Eviction Protections Program Comprehensive Fee Study will be prepared to comply with the following applicable state -required goals, policies, and objectives; and
WHEREAS, City staff has determined that Consultant possesses the experience, skills and training necessary to competently provide such services for City.
NOW, THEREFORE, for and in consideration of the mutual covenants and conditions herein contained, City and Consultant agree as follows:
3. DEFINITIONS
"Effective Date": Date of when Agreement is fully executed by all Parties.
4. TERM
This Agreement shall have a term commencing from the Effective Date through December 15, 2024 (hereinafter, the "Term"). Nothing in this Section shall operate to prohibit or otherwise restrict the City's ability to terminate this Agreement at any time for convenience or for cause as provided under Section 17 (Termination), below.
5. SCOPE OF WORK
5.1 Subject to the terms and conditions of this Agreement, Consultant agrees to provide the services and tasks described in that certain City Request for Proposals entitled "Request for Proposals Rent Stabilization and Tenant Eviction Protections Program Comprehensive Fee Study" issued November 14, 2022, (hereinafter the "City RFP") and the written proposal of Consultant entitled "City of Bell Gardens Rent Stabilization and Tenant Eviction Protections Program Comprehensive Fee Study" Exhibit 2
1 172
(hereinafter the "Consultant Proposal") dated mi4 3 t . The City RFP and the Consultant Proposal are attached and incorporated hereto as Exhibit "A" and "B" respectively. The term "Scope of Work" shall be a collective reference to the City RFP and the Consultant Proposal. The capitalized term "Work" shall be a collective reference to all the various services and tasks referenced in the Scope of Work. In the event of any conflict or inconsistency between the provisions of the document entitled City RFP and the provisions of the document entitled Consultant Proposal, the requirements of the document entitled City RFP shall govern and control but only to the extent of the conflict or inconsistency and no further. In the event of any conflict or inconsistency between the provisions of the Scope of Work and the provisions of this Agreement to which the Scope of Work is attached, the provisions of this Agreement shall govern and control.
5.2 Consultant represents that it has, or will secure at its own expense, all personnel required to perform the services identified in the Scope of Work. All such services shall be performed by Consultant or under its supervision, and all personnel engaged in the work shall be qualified to perform such services. Consultant shall identify a project administrator and shall have direct responsibility for management of Consultant's performance under this Agreement. No change shall be made in Consultant's project administrator without City' prior written consent.
5.3 Consultant understands the nature and scope of the Work to be performed under this Agreement as well as any and all schedules of performance.
5.4 Consultant shall not claim or be entitled to receive any compensation or damage because of the failure of Consultant, or its subconsultants, to have related services or tasks completed in a timely manner.
5.5 Consultant shall at
Consultant's employees
5.6 Consultant, at its sole expense, shall pay all sales, consumer, use or other similar taxes required by law.
Imes enforce strict discipline and good order among
5.7 Consultant shall obtain a City business license prior to commencing performance under this Agreement. Consultant shall perform all work to the highest professional standards of Consultant's profession and in a manner, reasonably satisfactory to City. Consultant shall comply with all applicable federal, state, and local laws and regulations (including the conflict of interest provisions of Government Code Section 1090 and the Political Reform Act (Government Code Section 81000 et seq.)).
During the term of this Agreement, Consultant shall not perform any work for another person or entity for whom Consultant was not working at the Commencement Date if both (i) such work would require Consultant to abstain from a decision under this Agreement pursuant to a conflict of interest statute; and (ii) City has not consented in writing to Consultant's performance of such work.
5.8 All of Consultant's employees and agents possess sufficient skill, knowledge, training and experience to perform those services and tasks assigned to them 2 Exhibit 2 173
by Consultant.
5.9 All of Consultant's employees and agents (including, but not limited to, subcontractors and subconsultants) possess all licenses, permits, certificates, qualifications and approvals of whatever nature that are legally required to perform the tasks and services contemplated under this Agreement and all such licenses, permits, certificates, qualifications and approvals will be maintained throughout the term of this Agreement and made available to City for copying and inspection.
5.10 The Parties acknowledge and agree that Consultant will perform, at Consultant's own cost and expense and without any reimbursement from City, any services necessary to correct any errors or omissions caused by Consultant's failure to comply with the standard of care set forth under this Section or by any like failure on the part of Consultant's employees, agents, contractors, subcontractors and subconsultants.
Such effort by Consultant to correct any errors or omissions will be commenced immediately upon their discovery by either Party and will be completed within seven (7) calendar days from the date of discovery or such other extended period of time authorized by the city representative in writing and in their sole and absolute discretion. The Parties acknowledge and agree that City's acceptance of any work performed by Consultant or on Consultant's behalf will not constitute a release of any deficiency or delay in performance. The Parties further acknowledge, understand and agree that CITY has relied upon the foregoing representations of Consultant, including but not limited to the representation that Consultant possesses the skills, training, knowledge and experience necessary to perform the Work skillfully, competently and to the highest standards of Consultant's profession.
5.11 The City hereby designates Gustavo Romo, Director of Community Development, (hereinafter, the "City Representative") to act as its representative for the performance of this Agreement. The City Representative or their designee will act on behalf of ! the City for all purposes under this Agreement. Consultant will not accept directions or orders from any person other than the City Representative or their designee.
5.12 Consultant hereby designates to act as its
representative for the performance of this Agreement (hereinafter, "Consultant Representative"). Consultant Representative will have full authority to represent and act on behalf of the Consultant for all purposes under this Agreement. Consultant Representative or their designee will supervise and direct the performance of the Work, using their best skill and attention, and will be responsible for all means, methods, techniques, sequences and procedures and for the satisfactory coordination of all portions of the Work under this Agreement. Notice to the Consultant Representative will constitute notice to Consultant.
5.13 Consultant agrees to work closely with City staff in the performance of the Work and this Agreement and will be available to City staff and the City Representative at all reasonable times. All work prepared by Consultant will be subject to inspection and approval by City Representative or their designees.
Exhibit 2
3 174
6. COMPENSATION
6.1 Consultant shall perform the Work in accordance with the Cost and Pricing which is incorporated to the Consultant Proposal (hereinafter "Compensation Rate").The foregoing notwithstanding, Consultant's total compensation for the performance of all Work contemplated under this A reement, will not exceed the total budgeted a• re ate s.; 55555 5555555555555555555 5 , � 555555 5 � 55 �
`} � s ti
sum of ������ � ����� �� ���, ��� � �> � \�,.. ��� \ � � � �`� �.. (hereinafter the "Not -to -Exceed Sum") during the Term of this Agreement, unless such added expenditure is first approved by the City Council. In the event Consultant's charges are projected to exceed the Not -to -Exceed Sum prior to the expiration of this Agreement, City may suspend Consultant's performance pending City approval of any anticipated expenditures in excess of the Not -to -Exceed Sum or any other City approved amendment to the compensation terms of this Agreement
6.2 The Not -to -Exceed Sum will be paid to Consultant in monthly increments as the Work is completed. Following the conclusion of each calendar month, Consultant will submit to City an itemized invoice indicating the services performed and tasks completed during the recently concluded calendar month, including services and tasks performed and the reimbursable out-of-pocket expenses incurred. If the amount of Consultant's monthly compensation is a function of hours worked by Consultant's personnel, the invoice should indicate the number of hours worked in the recently concluded calendar month, the persons responsible for performing the Work, the rate of compensation at which such services and tasks were performed, the subtotal for each task and service performed and a grand total for all services performed. Within thirty (30) calendar days of receipt of each invoice, City will notify Consultant in writing of any disputed amounts included in the invoice. Within forty-five (45) calendar days of receipt of each invoice, City will pay all undisputed amounts included on the invoice. City will not withhold applicable taxes or other authorized deductions from payments made to Consultant.
7. OWNERSHIP OF WRITTEN PRODUCTS
All reports, documents, or other written material (hereinafter "written products") developed by Consultant in the performance of this Agreement shall be and remain the property of City without restriction or limitation upon its use or dissemination by City.
8. RELATIONSHIP OF PARTIES
Consultant is and shall remain at all times as to City, a wholly independent contractor. Consultant shall have no power to incur any debt, obligation, or liability on behalf of City or otherwise to act on behalf of City as an agent. Neither City nor any of its officers, employees or agents shall have control over the conduct of Consultant or any of Consultant's employees, except as set forth in this Agreement. Consultant shall not represent that it is, or that any of its agents or employees are, in any manner City employees. Consultant is not, nor shall become, by virtue of performance of the professional services provided under this Agreement, entitled to any City employee Exhibit 2
4 175
benefits, including but not limited to health insurance, dental insurance, vacation pay, retirement pension, unemployment insurance or workers' compensation insurance.
9. CONFIDENTIALITY
All data, documents, discussion, or other information developed or received by Consultant or provided for performance of this Agreement are deemed confidential and shall not be disclosed by Consultant without prior written consent by City. City shall grant such consent if disclosure is legally required. Upon request, all City data and any copies thereof shall be returned to City upon the termination or expiration of this Agreement.
10. INDEMNIFICATION
10.1 The Parties agree that City and City's elected and appointed officials, officers, employees, agents and volunteers (hereinafter, the "City Indemnitees") should, to the fullest extent permitted by law, be protected from any and all loss, injury, damage, claim, lawsuit, cost, expense, attorneys' fees, litigation costs, or any other cost arising out of or in any way related to the performance of this Agreement. Accordingly, the provisions of this indemnity provision are intended by the Parties to be interpreted and construed to provide the City Indemnitees with the fullest protection possible under the law. Consultant acknowledges that City would not enter into this Agreement in the absence of Consultant's commitment to indemnify, defend and protect City as set forth herein.
Notwithstanding the foregoing, to the extent Consultant's services are subject to Civil Code Section 2782.8, the above indemnity shall be limited, to the extent required by Civil Code Section 2782.8, to Claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant. Consultant's obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the City, its officials, officers, employees, agents or volunteers.
10.2 To he fullest extent permitted by law, Consultant shall indemnify, hold harmless and defend the City Indemnitees from and against all liability, loss, damage, expense, cost (including without limitation reasonable attorneys' fees, expert fees and all other costs, and fees of litigation) of every nature arising out of or in connection with Consultant's performance of work hereunder or its failure to comply with any of its obligations contained in this Agreement, except such loss or damage which is caused by the sole negligence or willful misconduct of the City.
10.3 City shall have the right to offset against the amount of any compensation due to Consultant under this Agreement, any amount due to City from Consultant as a result of Consultant's failure to either pay City promptly for any costs associated with Consultant's obligations to indemnify the City Indemnitees under this Section, or related to Consultant's failure to either (i) pay taxes on amounts received pursuant to this Agreement, or (ii) comply with applicable workers' compensation laws.
10.4 The obligations of Consultant under this Section will not be limited by the provisions of any workers' compensation act or similar act. Consultant expressly waives its statutory immunity under such statutes or laws as to City and City's elected and appointed officials, officers, employees, agents, and volunteers. 5 Exhibit 2 176
10.5 Consultant agrees to obtain executed indemnity agreements with provisions identical to those set forth herein this Section from each and every subcontractor or any other person or entity involved by, for, with or on behalf of Consultant in the performance of this Agreement. In the event Consultant fails to obtain such indemnity obligations from others as required herein, Consultant agrees to be fully responsible and indemnify, hold harmless and defend City and City's elected and appointed officials, officers, employees, agents, and volunteers from and against any and all claims and losses, costs or expenses for any damage due to death or injury to any person and injury to any property resulting from any alleged intentional, reckless, negligent, or otherwise wrongful acts, errors or omissions of Consultant's subcontractors or any other person or entity involved by, for, with or on behalf of Consultant in the performance of this Agreement. Such costs and expenses shall include reasonable attorneys' fees incurred by counsel of City's choice.
10.6 City does not, and shall not waive any rights that it may possess against Consultant because of the acceptance by City, or the deposit with City, of any insurance policy or certificate required pursuant to this Agreement. ' This hold harmless and indemnification provision shall apply regardless of whether or not any insurance policies are determined to be applicable to the claim, demand, damage, liability, loss, cost, or expense.
10.7 This Section and all provisions contained herein (including but not limited to the duty to indemnify, defend, and hold free and harmless) shall survive the termination or normal expiration of this Agreement and is in addition to any other rights or remedies which the CITY may have at law or in equity.
11. INSURANCE
11.1 During the term of this Agreement, Consultant shall carry, maintain, and keep in full force and effect insurance against claims for death or injuries to persons or damages to property that may arise from or in connection with Consultant's performance of this Agreement. Such insurance shall be of the types and in the amounts as set forth below:
Exhibit 2
1.1.1 Comprehensive General Liability Insurance with coverage limits of not less than One Million Dollars ($1,000,000) per occurrence and Two Million Dollars ($2,000,000) aggregate including products and Completed operations hazard, contractual insurance, broad form property damage, independent Consultants, personal injury.
11.1.2 Automobile liability insurance. Consultant shall maintain automobile insurance at least as broad as Insurance Services Office form CA 00 01 covering bodily injury and property damage for all activities of the Consultant arising out of or in connection with work to be performed under this Agreement, including coverage for any owned, hired, non -owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident. Professional liability (Errors & Omissions) insurance. Consultant shall maintain professional liability insurance that covers the Services to be 6 177
performed in connection with this Agreement, in the minimum amount of $1,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this Agreement and Consultant agrees to maintain continuous coverage through a period no less than three (3) years after completion of the services required by this Agreement.
11.1.3 Professional liability (Errors & Omissions) insurance. Consultant shall maintain professional liability insurance that covers the Services to be performed in connection with this Agreement, in the minimum amount of $1,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this Agreement and Consultant agrees to maintain continuous coverage through a period no less than three (3) years after completion of the services required by this Agreement.
11.1.4 Worker's Compensation insurance as required by the laws of the State of California and Employer's Liability Insurance (with limits of at least $1,000,000).
11.1.5 Consultant shall submit to City, along with the certificate of insurance, a Waiver of Subrogation endorsement in favor of City, its officers, agents, employees and volunteers.
11.2 Consultant shall require each of its subcontractors, if any, to maintain insurance coverage that meets all of the requirements of this Agreement.
11.3 The policy or policies required by this Agreement shall be issued by an insurer admitted in the State of California and with a rating of at least A:VII in the latest edition of Best's Insurance Guide.
11.4 Consultant agrees that if it does not keep the aforesaid insurance in full force and effect City may either (i) immediately terminate this Agreement; or (ii) take out the necessary insurance and pay, at Consultant's expense, the premium thereon.
11.5 At all times during the term of this Agreement, Consultant shall maintain on file with City' Risk Manager a certificate or certificates of insurance showing that the aforesaid policies are in effect in the required amounts and naming the City as an additional insured. Consultant shall, prior to commencement of work under this Agreement, file with City' Risk Manager such certificate(s).
11.6 Consultant shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Such proof will be furnished at least two (2) weeks prior to the expiration of the coverages.
11.7 The general liability and automobile policies of insurance required by this Agreement shall contain an endorsement naming City, its officers, employees, agents and volunteers as additional insureds. All of the policies required under this Agreement Exhibit 2 178
shall contain an endorsement providing that the policies cannot be canceled or reduced except on thirty (30) days' prior written notice to City. Consultant agrees to require its insurer to modify the certificates of insurance to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, and to delete the word "endeavor" with regard to any notice provisions.
11.8 The insurance provided by Consultant shall be primary to any coverage available to City. Any insurance or self-insurance maintained by City, its officers, employees, agents or volunteers, shall be in excess of Consultant's insurance and shall not contribute with it.
11.9 Any deductibles or self -insured retentions must be declared to and approved by City. At the option of City, Consultant shall either reduce or eliminate the deductibles or self -insured retentions with respect to City, or Consultant shall procure a bond guaranteeing payment of losses and expenses.
11.10 Procurement of insurance by Consultant shall not be construed as a limitation of Consultant's liability or as full performance of Consultant's duties to indemnify, hold harmless and defend under Section 10 of this Agreement.
12. MUTUAL COOPERATION
City shall provide Consultant with complete access to information for the proper performance of Consultant's services under this Agreement.
13. RECORDS AND INSPECTIONS
Consultant shall maintain full and accurate records with respect to all matters covered under this Agreement for a period of three (3) years after the expiration or termination of this Agreement. City shall have the right to access and examine such records, without charge, during normal business hours. City shall further have the right to audit such records, to make transcripts therefrom and to inspect all program data, documents, proceedings, and activities.
14. PERMITS AND APPROVALS
Consultant shall obtain, at its sole cost and expense, all permits and regulatory approvals necessary in the performance of this Agreement.
15. NOTICES
Any notices, bills, invoices, or reports required by this Agreement shall be deemed received on: (i) the day of delivery if delivered by hand, facsimile or overnight courier service during Consultant's and City' regular business hours; or (ii) on the third (3rd) business day following deposit in the United States mail if delivered by mail, postage prepaid, to the addresses listed below (or to such other addresses as the parties may, from time to time, designate in writing).
If to City:
City of Bell Gardens
7100 S. Garfield Ave.
If to Consultant:
Exhibit 2
18x'9
Bell Gardens, California 90201
With a courtesy copy to:
Rick Olivarez,
Olivarez Madruga Law Organization, LLP
500 S. Grand Ave., Floor 12
Los Angeles, CA 90071
Telephone: (213)744-0099
Facsimile: (213)744-0093
16. SURVIVING COVENANTS
The termination of this Agreement pursuant to any provision of this Section or by normal expiration of its term or any extension thereto will not operate to terminate any Section or provision contained herein which provides that it will survive the termination or normal expiration of this Agreement.
17. TERMINATION
17.1. City may immediately terminate this Agreement at any time for convenience and without cause by giving prior written notice of City's intent to terminate this Agreement which notice shall specify the effective date of such termination. Upon such termination for convenience, Consultant will be compensated only for those services and tasks which have been performed by Consultant up to the effective date of the termination. Consultant may not terminate this Agreement except for cause as provided under Section 17.2, below. If this Agreement is terminated as provided herein, City may require Consultant to provide all finished or unfinished Documents and Data, and other information of any kind prepared by Consultant in connection with the performance of the Work. Consultant will be required to provide such Documents and Data within fifteen (15) calendar days of City's written request. No actual or asserted breach of this Agreement on the part of City pursuant to Section 17.2, below, will operate to prohibit or otherwise restrict City's ability to terminate this Agreement for convenience as provided under this Section.
17.2 In the event either Party fails to perform any duty, obligation, service or task set forth under this Agreement (or fails to timely perform or properly perform any such duty, obligation, service or task set forth under this Agreement), an event of default (hereinafter, "Event of Default") will occur. For all Events of Default, the Party alleging an Event of Default will give written notice to the defaulting Party (hereinafter referred to as a "Default Notice") which will specify: (i) the nature of the Event of Default; (ii) the action required to cure the Event of Default; (iii) a date by which the Event of Default will be cured, which will not be less than the applicable cure period set forth under Sections 17.3 and 17.4, below, or if a cure is not reasonably possible within the applicable cure period, to begin such cure and diligently prosecute such cure to completion. The Event of Default will constitute a breach of this Agreement if the defaulting Party fails to cure the Event of Default within the applicable cure period or any extended cure period allowed under this Agreement.
Exhibit 2 1980
17.3. CONSULTANT will cure the Event of Default within the following time periods:
i. Within ten (10) business days of CITY's issuance of a Default Notice for any failure of CONSULTANT to timely provide CITY or CITY's employees or agents with any information and/or written reports, documentation or work product which CONSULTANT is obligated to provide to CITY or CITY's employees or agents under this Agreement.
Prior to the expiration of the 10 -day cure period, CONSULTANT may submit a written request for additional time to cure the Event of Default upon a showing that CONSULTANT has commenced efforts to cure the Event of Default and that the Event of Default cannot be reasonably cured within the 10 -day cure period. The foregoing notwithstanding, CITY will be under no obligation to grant additional time for the cure of an Event of Default under this Section 17.3 that exceeds seven (7) calendar days from the end of the initial 10 -day cure period; or ii. Within fourteen (14) calendar days of CITY's issuance of a Default Notice for any other Event of Default under this Agreement. Prior to the expiration of the 14 -day cure period, CONSULTANT may submit a written request for additional time to cure the Event of Default upon a showing that CONSULTANT has commenced efforts to cure the Event of Default and that the Event of Default cannot be reasonably cured within the 14 -day cure period. The foregoing notwithstanding, CITY will be under no obligation to grant additional time for the cure of an Event of Default under this Section 17.3(ii) that exceeds thirty (30) calendar days from the end of the initial 14 -day cure period.
17.4 In addition to any other failure on the part of Consultant to perform any duty, obligation, service or task set forth under this Agreement (or the failure to timely perform or properly perform any such duty, obligation, service or task), an Event of Default on the part of Consultant will include, but will not be limited to the following: (i) Consultant's refusal or failure to perform any of the services or tasks called for under the Scope of Work; (ii) Consultant's failure to fulfill or perform its obligations under this Agreement within the specified time or if no time is specified, within a reasonable time; (iii) Consultant's and/or its employees' disregard or violation of any federal, state, local law, rule, procedure or regulation; (iv) the initiation of proceedings under any bankruptcy, insolvency, receivership, reorganization, or similar legislation as relates to Consultant, whether voluntary of involuntary; (v) Consultant's refusal or failure to perform or observe any covenant, condition, obligation or provision of this Agreement; and/or (vii) City's discovery that a statement representation or warranty by Consultant relating to this Agreement is false, misleading or erroneous in any material respect.
17.5. City will cure any Event of Default asserted by Consultant within forty-five (45) calendar days of Consultant's issuance of a Default Notice, unless the Event of Default cannot reasonably be cured within the 45 -day cure period. Prior to the expiration of the 45 -day cure period, City may submit a written request for additional time to cure the Event of Default upon a showing that City has commenced its efforts to cure the Event of Default and that the Event of Default cannot be reasonably cured within the 45 -day cure period. The foregoing notwithstanding, an Event of Default dealing with City's failure Exhibit 2 101
to timely pay any undisputed sums to Consultant will be cured by City within five (5) calendar days from the date of Consultant's Default Notice to City.
17.6. City, in its sole and absolute discretion, may also immediately suspend Consultant's performance under this Agreement pending Consultant's cure of any Event of Default by giving Consultant written notice of City's intent to suspend Consultant's performance (hereinafter, a "Suspension Notice"). City may issue the Suspension Notice at any time upon the occurrence of an Event of Default. Upon such suspension, Consultant will be compensated only for those services and tasks which have been rendered by Consultant to the reasonable satisfaction of City up to the effective date of the suspension. No actual or asserted breach of this Agreement on the part of City will operate to prohibit or otherwise restrict City's ability to suspend this Agreement as provided herein.
17.7. No waiver of any Event of Default or breach under this Agreement will constitute a waiver of any other or subsequent Event of Default or breach. No waiver, benefit, privilege, or service voluntarily given or performed by a Party will give the other Party any contractual rights by custom, estoppel, or otherwise.
17.8. The duties and obligations imposed under this Agreement and the rights and remedies available hereunder will be in addition to and not a limitation of any duties, obligations, rights and remedies otherwise imposed or available by law. In addition to any other remedies available to City at law or under this Agreement in the event of any breach of this Agreement, City, in its sole and absolute discretion, may also pursue any one or more of the following remedies:
Upon written notice to Consultant, the City may immediately terminate this Agreement in whole or in part;
ii. Upon written notice to Consultant, the City may extend the time of performance;
iii. The City may proceed by appropriate court action to enforce the terms of the Agreement to recover damages for Consultant's breach of the Agreement or to terminate the Agreement; or
iv. The City may exercise any other available and lawful right or remedy.
17.9 Consultant will be liable for all legal fees plus other costs and expenses that City incurs upon a breach of this Agreement or in the City's exercise of its remedies under this Agreement.
17.10. In the event City is in breach of this Agreement, Consultant's sole remedy will be the suspension or termination of this Agreement and/or the recovery of any unpaid sums lawfully owed to Consultant under this Agreement for completed services and tasks.
18. GENERAL PROVISIONS
18.1 Consultant shall not delegate, transfer, subcontract or assign its duties or rights hereunder, either in whole or in part, without City's prior written consent, and any Exhibit 2 182
attempt to do so shall be void and of no effect. City shall not be obligated or liable under this Agreement to any party other than Consultant.
18.2 In the performance of this Agreement, Consultant shall not discriminate against any employee, subcontractor, or applicant for employment because of race, color, creed, religion, sex, marital status, national origin, ancestry, age, physical or mental handicap, medical condition, or sexual orientation. Consultant will take affirmative action to ensure that subcontractors and applicants are employed, and that employees are treated during employment, without regard to their race, color, creed, religion, sex, marital status, national origin, ancestry, age, physical or mental handicap, medical condition, or sexual orientation.
18.3 The captions appearing at the commencement of the sections hereof, and in any paragraph thereof, are descriptive only and for convenience in reference to this Agreement. Should there be any conflict between such heading, and the section or paragraph thereof at the head of which it appears, the section or paragraph thereof, as the case may be, and not such heading, shall control and govern in the construction of this Agreement. Masculine or feminine pronouns shall be substituted for the neuter form and vice versa, and the plural shall be substituted for the singular form and vice versa, in any place or places herein in which the context requires such substitution(s).
18.4 The waiver by City or Consultant of any breach of any term, covenant or condition herein contained shall not be deemed to be a waiver of such term, covenant, or condition or of any subsequent breach of the same or any other term, covenant or condition herein contained. No term, covenant or condition of this Agreement shall be deemed to have been waived by City or Consultant unless in writing.
18.5 Consultant shall not be liable for any failure to perform if Consultant presents acceptable evidence that such failure was due to causes beyond the control and without the fault or negligence of Consultant.
18.6 Each right, power and remedy provided for herein or now or hereafter existing at law, in equity, by statute, or otherwise shall be cumulative and shall be in addition to every other right, power, or remedy provided for herein or now or hereafter existing at law, in equity, by statute, or otherwise. The exercise, the commencement of the exercise, or the forbearance of the exercise by any party of any one or more of such rights, powers or remedies shall not preclude the simultaneous or later exercise by such party of any of all of such other rights, powers or remedies. In the event legal action shall be necessary to enforce any term, covenant or condition herein contained, the party prevailing in such action, whether reduced to judgment or not, shall be entitled to its reasonable court costs, including accountants' fees, if any, and attorneys' fees expended in such action subject to the limitations contained in Section 10. The venue for any litigation shall be Los Angeles County, California.
18.7 If any term or provision of this Agreement or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, then such term or provision shall be amended to, and solely to, the extent necessary to cure such invalidity or unenforceability, and in its amended form shall be enforceable. In such event, the remainder of this Agreement, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not Exhibit 2 1$3
be affected thereby, and each term and provision of this Agreement shall be valid and be enforced to the fullest extent permitted by law.
18.8 This Agreement shall be governed and construed in accordance with the laws of the State of California.
18.9 All documents referenced as exhibits in this Agreement are hereby incorporated in this Agreement. In the event of any material discrepancy between the express provisions of this Agreement and the provisions of any document incorporated herein by reference, the provisions of this Agreement shall prevail. This instrument contains the entire Agreement between City and Consultant with respect to the transactions contemplated herein. No other prior oral or written agreements are binding upon the parties. Amendments hereto or deviations here from shall be effective and binding only if made in writing and executed by City and Consultant. [SIGNATURES ON NEXT PAGE]
Exhibit 2 154
TO EFFECTUATE THIS AGREEMENT, the parties have caused their duly authorized representatives to execute this Agreement on the dates set forth below. "City"
City of Bell Gardens
"Consultant
By: By:
Michael B. O'Kelly, City Manager
Date: Date:
Approved as to form:
By:
Rick Olivarez, City Attorney
Exhibit 2 1E5
EXHIBIT "A"
CITY RFP
Exhibit 2 156
EXHIBIT "B"
CONSULTANT PROPOSAL
Exhibit 2 167
Exhibit 2
Exhibit 2
188
ORDINANCE NO. 925
AN ORDINANCE OF THE CITY OF BELL GARDENS CALIFORNIA
ADDING CHAPTER 5.62 "RENT STABILIZATION" AND CHAPTER 5.63 "TENANT EVICTION PROTECTIONS" TO TITLE 5 OF THE BELL
GARDENS MUNICIPAL CODE RESTRICTING RENT INCREASES AND
ESTABLISHING EVICTION PROTECTIONS AND OTHER
REGULATIONS APPLICABLE TO CERTAIN COVERED RESIDENTIAL
RENTAL UNITS IN THE CITY
WHEREAS, the City of Bell Gardens ("City") is a general law city, incorporated under the laws of the State of California; and
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; and WHEREAS, in response to community concern about rising rents and the need for greater tenant protections, at the City Council meeting of April 8, 2019, the City Council of the City of Bell Gardens ("City Council") formed an Ad Hoc Committee ("Committee") to study the issue of rent control, engage in community outreach and consider the potential development of a rent stabilization and tenant eviction protection ordinance; and WHEREAS, on January 1, 2020, the California Tenant Protection Act of 2019 (the "Act") went into effect. Among other provisions, the Act requires just cause evictions and limits rent increases for rental properties subject to the Act to five percent plus the percentage change in the consumer price index up to a maximum of 10% (Civil Code Section 1947.12); and
WHEREAS, as of March of 2020, to mitigate the impact of the Coronavirus 2019 ("COVID-19") pandemic the State of California Legislature and County of Los Angeles Board of Supervisors implemented urgency measures to protect tenants from evictions and limit rent increases on residential properties. Because of these temporary measures, the City paused its efforts to consider a local rent control program within the City.
Exhibit 2 189
Ordinance No. 925
WHEREAS, on February 22, 2021, at the regular City Council meeting, City Council appointed additional members to the Committee and directed staff to resume its directive to explore a permanent rent control program.
WHEREAS, between June of 2021 and March of 2022 the Committee met on several occasions to explore and discuss the issue. The Committee also held two community workshops on January 13, 2022, and March 12, 2022; and WHEREAS, on April 11, 2022, City staff provided an update to the City Council on the Committee's efforts and the City Council directed staff to prepare a rent stabilization and tenant eviction protection ordinance with input from the Committee for future consideration by the City Council; and
WHEREAS, on April 25, 2022, the City Council adopted Urgency Ordinance No. 922-U to temporarily restrict rent increases for certain residential properties while the City further considers and develops a rent stabilization and tenant eviction protection ordinance; and
WHEREAS, on July 11, 2022, the City Council adopted Urgency Ordinance No. 924-U extending the temporary rent freeze for covered units to allow more time to gather input from key stakeholders and finalize a permanent rent stabilization and tenant eviction protection ordinance for City Council consideration; and WHEREAS, rents in the City and throughout Los Angeles County continue to rise, and although the City has lower rents relative to surrounding communities, many local residents, particularly low-income households, struggle with paying for rising housing costs and meeting other basic needs such as food, transportation and health care; and WHEREAS, in the City of Bell Gardens, 77.8% of households are renters and approximately 88% of renter households fall within the low, very low, or extremely low income category, according to the City's Housing Element 2021-2029 ("Housing Element"). The Housing Element also indicates that 62% of renter -occupied households 2 of 48
Exhibit 2 190
Ordinance No. 925
in the City are cost burdened, paying more than 30% of gross income on housing; and 31% are severely cost burdened, paying more than half of gross income on housing; and WHEREAS, the effect of high rents coupled with low incomes, critical shortages of affordable rental housing, and rapidly rising costs for other basic necessities leaves residents vulnerable to economic hardship, housing insecurity and displacement, threatening the public health, safety and welfare of a substantial number of City residents; and
WHEREAS, the Costa -Hawkins Rental Housing Act, California Civil Code section 1954.50, et seq., ("Costa -Hawkins Act") limits the applicability of local rent stabilization policies, including prohibiting local jurisdictions from applying rent control to certain residential rental properties. This Ordinance intends to comply with the Costa -Hawkins Act and all other applicable state laws; and
WHEREAS, the protections provided in this Ordinance are more restrictive, or provide greater benefits than those set forth in California Civil Code section 1946.2 in that this Ordinance further limits the reasons for termination of a residential tenancy, provides for higher relocation assistance amounts, or provides additional tenant protections that are not prohibited by any other provision of law.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF BELL GARDENS DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. Findings. The Recitals above are true and correct and incorporated herein by reference.
SECTION 2. Chapter 5.62 of Title 5 of the Bell Gardens Municipal Code is hereby added to read as follows:
Chapter 5.62
RENT STABILIZATION
Sections:
3 of 48
Exhibit 2 191
Ordinance No. 925
5.62.010 Purpose and Applicability
5.62.020 Definitions
5.62.030 Exemptions
5.62.040 Permitted Rent Increases for Covered Rental Units
5.62.050 Permitted Rent Increases for Below Market Rents
5.62.060 Capital Improvement Pass -Through Cost Recovery
5.62.070 Petition for Rent Adjustment
5.62.080 Security Deposits
5.62.090 Rental Unit Registration
5.62.100 Notices to Tenants
5.62.110 Enforcement
5.62.120 Administrative Review and Appeals
5.62.130 Administrative Citations
5.62.140 Remedies
5.62.150 Waiver
5.62.160 Severability
5.62.010. Purpose and Applicability.
A. The purposes of this Chapter are to protect tenants from excessive rent increases and to promote long-term stability and certainty for tenants in the rental market while providing landlords an ability to receive a fair return on their rental property.
B. This Chapter shall apply to all Rental Units within the jurisdictional boundaries of the City, unless otherwise exempted by State law or the provisions of this Chapter.
C. This Chapter regulates rents for certain tenancies. It requires landlords to register rental units, establishes an administrative petition process, and provides for procedures and guidelines for the implementation of this Chapter.
5.62.020. Definitions. For the purposes of this Chapter, unless the context requires otherwise, the following definitions shall apply:
4 of 48
Exhibit 2 192
Ordinance No. 925
A. "Base Rent" means the Rent charged for a Rental Unit in effect on April 11, 2022, when the City Council declared its intent to regulate rent for residential properties in the City, or at the initiation of the Tenancy, whichever is later, plus any rent increase allowed thereafter pursuant to this Chapter.
B. "Capital Improvement" means the addition, substantial repair or replacement of any improvements to dwelling units, buildings, or common areas, which materially adds to the value of the property, appreciably prolongs its useful life or adapts it to new uses, provided such improvement has a useful life expectancy of more than one (1) year and which is the same type of improvement as those allowed to be amortized over the useful life of the improvement in accordance with the Internal Revenue Code and its regulations or similar improvements as determined by the Department. Capital Improvement does not include normal or routine maintenance or repair or repairs covered by insurance.
C. "City" means the City of Bell Gardens.
D. "Code" means the City of BeII Gardens Municipal Code.
E. "Comparable Unit" means Rental Units that have approximately the same living space and the same or similar number of bedrooms, are located in the same or similar neighborhoods, and feature the same, similar, or equal amenities and housing services.
F. "Consumer Price Index" or "CPI" means the Consumer Price Index for all urban consumers of the Los Angeles -Long Beach -Anaheim, California area, published by the U.S. Department of Labor, Bureau of Labor Statistics, or any successor designation of that index that may later be adopted by the U.S. Department of Labor.
G. "Covered Rental Unit" means any Rental Unit that is not designated as exempt pursuant to Section 5.62.030 of this Chapter.
H. "Department" means the Community Development Department of the City of BeII Gardens, or other Department designated by the City Council to administer the provisions of this Chapter.
I. "Director" means the Director of Community Development of the City of BeII Gardens, or their designee.
5 of 48
Exhibit 2 193
Ordinance No. 925
J. "Hearing Officer" means the person designated by the City Manager or designee to conduct a review hearing and decide petitions and appeals under this Chapter.
K. "Housing Services" means all services provided by the Landlord related to the use or occupancy of a Rental Unit, including, water, heat, utilities, insurance, maintenance, repairs, painting, elevator service, laundry facilities, janitorial service, refuse removal, furnishings, window shades and screens, parking, storage, security services, recreational areas, right to have specified number of tenants or occupants, allowing pets, communications technologies (internet, cable and satellite services), and any other benefit, privilege or facility that has been provided by the Landlord to the Tenant with use or occupancy of a Rental Unit. Services to a Rental Unit shall include a proportionate part of services provided to common facilities of the building or residential complex in which a Rental Unit is contained.
L. "Landlord" means an owner, lessor, sublessor, or any other person entitled to offer any Rental Unit for Rent or entitled to receive Rent for the use and occupancy of a Rental Unit, and the agent, representative, or successor of any of the foregoing. "Landlord" includes a Mobilehome Park and its agent, representative, or successor.
M. "Mobilehome" means any mobilehome as defined under California Civil Code Section 798.3.
N. " obilehome Park" means an area of land located where two or more Mobilehome spaces are rented or leased out for Mobilehomes used as residences.
O. "Rent" means the sum of all periodic payments and all nonmonetary consideration demanded or received by a Landlord from a Tenant for the use or occupancy of a Rental Unit, including Tenant's access to and use of Housing Services. Rent includes, without limitation, the fair market value of goods accepted, labor performed, or services rendered. Rent does not include any of the following: security deposits, utility charges billed separately to the Tenant by the utility company, and pass -through fees and charges authorized pursuant to this Chapter.
6of48
Exhibit 2 194
Ordinance No. 925
P. "Rental Agreement" means an agreement, oral, written, or implied, between a Landlord and Tenant for the use or occupancy of a Rental Unit and related Housing Services.
Q. "Rental Unit" means any dwelling unit, as defined under California Civil Code section 1940 subsection (c) located in the jurisdictional boundaries of the City of Bell Gardens and that is used or occupied for human habitation in consideration of payment of rent, whether or not the residential use is legally permitted, including Mobilehomes rented by the owner of the Mobilehome, and accessory dwelling units. "Rental Unit" also means a Mobilehome Park space located in the jurisdictional boundaries of the City of Bell Gardens.
R. "Residential Real Property" includes any parcel of land containing one or more dwelling units intended for human habitation.
S. "Service Reduction" means any decrease or diminution in the level of Housing Services provided by the Landlord on or after the effective date of this Chapter, including but not limited to, services the Landlord is required to provide pursuant to:
1. California Civil Code section 1941 et. seq.;
2. The Landlord's implied warranty of habitability, which cannot be contractually excluded or waived;
3. A Rental Agreement between the Landlord and the Tenant; and
4. The level of service as implied by the condition of improvements, fixtures, and equipment, and their availability for use by the Landlord at the time of execution of the Rental Agreement with the Landlord.
T. "Tenancy" means the lawful right or entitlement of a Tenant to use or occupy a Rental Unit. This includes a lease or a sublease.
U. "Tenant" means a tenant, subtenant, lessee, sublessee, or any other person entitled, under the terms of a Rental Agreement to the use or occupancy of any Rental Unit.
5.62.030. Exemptions.
7 of 48
Exhibit 2 195
Ordinance No. 925
A. This Chapter shall not apply to any Rental Unit expressly exempt pursuant to any provision of State or federal law, with the exception of the requirements of Section
5.62.090.
B. The following are specifically exempt from the provisions of this Chapter:
1. Any dwelling unit that has a certificate of occupancy or equivalent permit for residential occupancy issued after February 1, 1995.
2. Any dwelling unit that is alienable separate from the title to any other dwelling unit, including single family residences, condominiums and townhomes, but excluding Mobilehomes offered for rent by the owner of the Mobilehome, or is a subdivided interest in a subdivision, as specified in California Business and Professions Code Section 11004.5 (b), (d) or (f).
3. Housing restricted by deed, regulatory restriction contained in an agreement with a government agency, or other recorded document as affordable housing for persons and families of very low, low or moderate income, as defined in Health and Safety Code section 50093, or subject to an agreement that provides housing subsidies for affordable housing for persons and families of very low, low or moderate income, as defined in Health and Safety Code section 50093 or comparable federal statutes, but excluding any dwelling unit for which a Landlord receives federal housing assistance vouchers issued under Section 8 of the United States Housing Act of 1937 line 9 (42 U.S.C. Sec. 1437f).
4. Owner -occupied residential real property containing no more than three (3) rental units in which the owner occupied one of the units as the owner's principal place of residence since the beginning of the tenancy, so long as the owner continues in occupancy. For purposes of this subsection:
a. The term "owner" means a natural person who owns at least a 25% ownership interest in the residential real property.
b. An exemption under this subsection shall expire by operation of law when the owner ceases to reside on the property as their principal place of residence.
8 of 48
Exhibit 2 196
Ordinance No. 925
5. Accommodations in hotels, motels, inns, tourist homes and boarding houses, and rooming houses, or other facilities, for which the City has received or is entitled to receive payment of transient occupancy tax pursuant to Chapter 3.24 of the Code (Transient Occupancy Tax) and California Civil Code section 1940 subdivision (b).
6. Housing accommodations in a nonprofit hospital, religious facility, extended care facility, licensed residential care facility for the elderly (as defined in Health and Safety Code Section 159.2), or any other facility licensed by the State to provide medical care for residents.
C. Exemptions are not automatic but shall be granted by the Department upon application by the Landlord as set forth in Section 5.62.090.
5.62.040. Permitted Rent Increases for Covered Rental Units.
A. A Landlord shall not increase the Rent for a Covered Rental Unit by more than fifty percent (50%) of the change in CPI, or four percent (4%), whichever is lower.
For purposes of this Section, "change in CPI" means the percentage change in the Consumer Price Index over the previous 12 -month period ending in April of each year.
B. A Landlord shall not impose more than one (1) Rent increase for a Covered Rental Unit in any 12 -month period, calculated from the date the Rent increase takes effect, unless otherwise permitted pursuant to this Chapter.
C. Commencing ten (10) days after the effective date of this Chapter and no later than September 30 of each subsequent year, the Department shall announce the maximum allowable annual Rent increase effective as of November 1 of that year, in accordance with the Department's procedures and guidelines.
D. A Landlord may impose an annual Rent increase for any Covered Rental Unit, as allowed in this Section, only after providing at least thirty (30) days written notice to the Tenant of the Rent increase pursuant to California Civil Code section 827.
E. A Landlord may impose an annual Rent increase only upon registering the Rental Unit with the City and paying any required annual registration fees pursuant to 9 of 48
Exhibit 2 197
Ordinance No. 925
Section 5.62.090, and maintaining compliance with State and local laws and requirements.
F. A Landlord who does not impose an annual Rent increase or a portion of the permitted annual Rent increase waives that annual Rent increase or the remaining portion of that permitted annual Rent increase for the remainder of the Tenancy. A Landlord shall not bank any waived or unused permitted annual Rent increases for use in future years.
G. This Chapter does not supersede a Landlord's right to set the initial Rent for new tenancies under State law.
H. A Tenant of a Covered Rental Unit subject to this Section shall not enter into a sublease that results in a total Rent for the Rental Unit that exceeds the allowable Rent authorized by this Section. Nothing in this Section authorizes a Tenant to sublet or assign the Tenant's interest where otherwise prohibited I. A Tenant may refuse to pay a Rent increase which is in violation of this Chapter.
Such refusal to pay the unallowed increased amount in excess of permitted Rent charges shall be an affirmative defense in any action brought to recover possession of a Rental Unit or to collect the Rent increase owed.
5.62.050. Permitted Rent Increases for Below Fair Market Rent.
A. If the Landlord of a residential real property charges an existing Tenant Rent for a Covered Rental Unit that is less than 80% of Fair Market Rent for a Comparable Unit, upon approval of the Department, a Landlord may increase the Rent, in addition to the annual Rent increase allowed under Section 5.62.040, by an amount not to exceed three percent (3%) subject to the following:
1. The Department shall only approve adjustments to Rent increases under this subsection until the Rent equals or exceeds 80% of Fair Market Rent for a Comparable Unit.
2. The U.S. Department of Housing and Urban Development's Office of Policy Development and Research's (HUD PD&R) then most recently published Small Area Fair Market Rents (SAFMRs) calculated for the Exhibit 2
10 of 48
198
Ordinance No. 925
Bell Gardens Zip Code shall be used for determining Fair Market Rent.
In the event HUD PD&R ceases publishing such Small Area Fair Market Rent, the City Council, by resolution, may identify an alternative source of Fair Market Rent.
3. The Landlord files an application with the Department to request approval for a permitted below market rent increase in accordance with the Department's procedures and guidelines.
4. A Landlord may not increase the Rent under this Section until the Department approves the Landlord's application and the Landlord registers each affected Rental Unit pursuant to Section 5.62.090. Only one additional Rent increase may be approved in any 12 -month period.
5. The Landlord shall provide Tenants with written notice of the Rent increase authorized by the Department.
6. Nothing in this Section shall be interpreted to authorize a Rent increase for a Covered Rental Unit in excess of the amount authorized pursuant to California Civil Code section 1947.12.
5.62.060. Capital Improvements Pass -Through Cost Recovery.
A. A Landlord may pass -through 50% of Capital Improvement costs to existing Tenants in Covered Rental Units in accordance with the provision of this Section.
B. Capital Improvements must be for the primary benefit, use and enjoyment of Tenants, cost -factored, and amortized over a useful life of at least five (5) years, and permanently fixed in place or relatively immobile and appropriate to the use of the rental property.
C. Capital Improvements eligible for pass -through cost recovery include, but are not limited to:
1. The addition, but not the replacement, of the following improvements to a Rental Unit or common areas of the building in which the Rental Unit is located: air conditioning, security gates and other security items, swimming pool, sauna or hot tub, fencing, children's play equipment permanently Exhibit 2
11 of 48
199
Ordinance No. 925
installed on the premises, and other similar improvements as determined by the Department.
2. Replacement or substantial modification of any structural, electrical, plumbing, or mechanical system that requires a permit pursuant to State or local law.
3. Abatement of hazardous materials, such as lead -based paint, mold or asbestos, in accordance with applicable federal, State, and local laws.
D. Capital Improvements cannot include regular maintenance or repairs from wear and tear, or be the result of a Landlord's failure to perform regular maintenance and repairs, or repairs covered by insurance.
E. Application Process.
1. A Landlord must apply to the Department for recovery of Capital Improvement costs, on a form approved by the Department, within one hundred eighty (180) days of completion of the Capital Improvement.
2. The pass -through application must contain the following information, and be accompanied by copies of relevant supporting documentation:
a. A description of the completed Capital Improvement;
b. A copy of all estimates, contracts, bills, invoices, and other documentation reasonably necessary to establish the cost of the Capital Improvement;
c. The proposed amortization period to be used based on the Department's procedures and guidelines, if the period differs from 60 months;
d. A list of Tenants that will be affected by or benefit from the Capital Improvement;
e. The formula used to calculate the pro rata share of each Tenant; f. The monthly cost to each affected or benefiting Tenant; g. The commencement and completion dates of the Capital Improvement; and
h. Such other information as the Department may reasonably request.
Exhibit 2
12of48
200
Ordinance No. 925
3. Within five (5) calendar days after submission of the application with the Department, the Landlord shall serve each affected Tenant with notice of the application via personal service or certified mail return receipt requested. The notice must include a copy of the application.
4. Within ten (10) calendar days after submission of the application, the Landlord shall file with the Department a proof of service signed under penalty of perjury stating that a copy of the application was served upon the affected Tenant. Such proof of notice is required before the application will be reviewed by the Department.
F. Landlord may not pass -through costs of Capital Improvements to Tenants until the Department approves the Landlord's application and the Landlord registers each affected Rental Unit pursuant to Section 5.62.090.
G. No pass -through cost -recovery shall be approved in an amount that would exceed five percent (5%) of the Rent in effect at the time the pass -through application is filed with the Department. If the total amount of calculated pass -through costs would result in an increase that exceeds five percent (5%), the pass -through cost amortization period may be extended beyond the established amortization period to allow the Landlord to recover eligible Capital Improvement costs while not exceeding the maximum increase authorized by this subsection.
H. A Landlord shall provide written notice of an approved pass -through cost to Tenants in accordance with California Civil Code section 827 and the notice shall be delivered at least thirty (30) days before the approved pass -through cost takes effect.
I. The approved pass -through cost should appear as a separate line item on a Rent statement along with the end date of the amortization period and any remaining pass -through balance. An approved pass -through cost is not considered Rent for purposes of this Chapter.
J. Pass -through cost recovery applications will be considered and determined by the Director in accordance with guidelines and procedures established by the Exhibit 2
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Department; and the Director's determination may be appealed to a Hearing Officer in accordance with the procedures set forth in Section 5.62.120.
5.62.070. Petition for Rent Adjustment.
A. Landlord's Application for Rent Increase. A Landlord may file an application with the Department to request an increase in Rent for a Covered Rental Unit in excess of that which is permitted under Sections 5.52.040 and 5.62.050 to in good faith ensure a fair and reasonable return on the Landlord's investment.
1. Presumption. It shall be a rebuttable presumption that the annual net operating income earned by a Landlord, and Rent increases allowed under Sections 5.62.040 and 5.62.050, provide the Landlord with a fair and reasonable return on their investment. A Landlord shall have the burden to prove the necessity of any additional Rent increase necessary to earn a fair and reasonable return.
2. Nothing in this Section shall be interpreted to authorize a Rent increase for a Covered Rental Unit in excess of the amount authorized pursuant to California Civil Code section 1947.12.
3. Approval of the Landlord's application for Rent increase may become effective only after all of the following:
a. A Landlord has provided written notice to the Tenant of the approved Rent increase for the Covered Rental Unit in accordance with California Civil Code section 827; and
b. A Landlord has registered each Rental Unit in the rental property, and is current on payment of registration fees, pursuant to Section
5.62.090.
4. Review and Approval of Application for Rent Increase. a. The Department shall consider the following factors, as well as any other relevant factors, in reviewing the application and making its determination, and no one (1) factor shall be determinative. i. Changes in the CPI.
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ii. The rental history of the affected Covered Rental Unit(s) and the rental property, including the Base Rent and pattern of past Rent increases or decreases;
iii. The Landlord's income and expenses as they relate to the rental property.
iv. Increases or decreases in property taxes.
v. The history or any prior hearings or determinations on an application for Rent increase by Landlord.
vi. The addition of Capital Improvements on the rental property. vii. The physical condition of the affected Covered Rental Unit(s) and building, including the quantity and quality of
maintenance and repairs performed during the preceding
twelve (12) months, as well as the long-term patterns of operating, maintenance, and Capital Improvement
expenditures.
viii.The need for repairs caused by circumstances other than ordinary wear and tear.
ix. Any increase or decrease of Housing Services since the last Rent increase.
x. Any existing Rental Agreement lawfully entered into between the Landlord and the Tenant.
xi. A decrease in net operating income.
xii. A fair and reasonable return on the building prorated among the Rental Units in the building.
xiii. if Landlord received Rent in violation of this Chapter or has otherwise failed to comply with this Chapter.
b. The Director may approve or deny an application for Rent increase beyond that which is permitted under Section 5.62.040 and 5.62.050 and make the following determinations, with written findings in support thereof, in compliance the provisions of this Chapter:
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i. The Department determines the Rent increase in the amount requested by Landlord is necessary and appropriate to ensure the Landlord receives a fair and reasonable return on the Landlord's investment, and will not cause an undue financial burden on the affected Tenant.
ii The Department determines a lesser Rent increase than the amount requested by Landlord more appropriately ensures a fair and reasonable return on the Landlord's investment and will not cause an undue financial burden on the affected Tenant.
iii. The Department determines no additional Rent increase is necessary and appropriate to ensure the Landlord receives a fair and reasonable return on the Landlord's investment. c. Nothing in this Section shall be interpreted to authorize a Rent increase for a Covered Rental Unit in excess of the amount authorized pursuant to California Civil Code section 1947.12.
5. Notices Upon Filing Application for Rent Increase. Within five (5) calendar days after submission of an application for Rent increase with the Department, the Landlord, at their own expense, shall provide written notice of said application to each affected Tenant via personal service or certified mail return receipt requested.
B. Tenant Application for Adjustment. A Tenant of a Covered Rental Unit may file an application for Rent adjustment with the Department for its determination in order to in good faith ensure the Tenant receives any adjustment they may be entitled to because of a Landlord's potential violation(s) of this Chapter. A Tenant must file such application for Rent adjustment within one hundred eighty (180) days from the date the Tenant knew, or reasonably should have known, of the Landlord's potential violation(s).
1. Unlawful Rent and/or Fees or Charges. A Tenant may file an application for adjustment with the Department due to a Landlord's demand for Rent, fees, Exhibit 2
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or charges that may be in excess of that permitted for a Covered Rental Unit.
2. Failure to Maintain Habitable Premises. A Tenant may file an application for adjustment with the Department to request a refund of, or decrease in, Rent proportional to a Landlord's potential failure to maintain the Covered Rental Unit as a habitable premise in accordance with applicable laws or the Rental Agreement.
a. A Landlord shall not be liable to a Tenant for failure to maintain habitable premises if the Tenant caused the condition that is the subject of the application.
3. Decrease in Housing Services. A Tenant may file an application for adjustment with the Department for a Service Reduction in Housing Services, without a corresponding reduction in Rent, which may be considered an increase in excess of permitted Rent.
4. Prior to filing an application for adjustment with the Department, a Tenant shall provide the Landlord all of the following:
a. Written notice identifying the potential violation(s) of excess Rent, fees or charges, failure to maintain habitable premises and/or decrease in housing services; and
b. A reasonable opportunity for the Landlord to correct the issues.
5. Review and Determination of Application for Adjustment. The Department shall consider the following factors, as well as any other relevant factors, in making its determination and no one (1) factor shall be determinative. a. Increases or decreases in Rent or Housing Services since the effective date of this Chapter,
b. The pattern of recent Rent or Housing Service increases or decreases.
c. Whether the Landlord has received payment in excess of the maximum allowable Rent, fees, or charges permitted by this Chapter or has otherwise failed to comply with this Chapter.
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d. When and how the Service Reduction was first identified by the Tenant and when and how the Landlord was notified of the alleged Service Reduction, orally, or in writing, and Landlord's response to such notice and whether Housing Services were reinstated or restored by the Landlord, and if so, when and how.
e. Whether any habitability violations stated by the Tenant in the application was improved or corrected, and if so, when and how. f. The status of the habitability issues as of the date the application is signed.
6. Notice upon Filing Application for Adjustment. Within five (5) calendar days after submission of an application for adjustment with the Department, the Tenant shall provide written notice of said application to the Landlord via personal service or certified mail return receipt requested.
C. Application Submittal to Department for Rent Increase or Adjustment. Upon receipt of an application, the Department shall review and evaluate whether there should be a Rent increase or adjustment in accordance with this Section and the Department's procedures and guidelines.
1. The application shall be on a form approved by the Department, signed under penalty of perjury, and must be accompanied by an application fee, if any, and must include the following:
a. The specific Rent increase or adjustment requested; and b. Copies of any books, records, papers, or other financial information relevant to the review of the application; and
c. Other documentation reasonably required by the Department relevant to the application.
2. Application Fees. The Department may set a reasonable application fee to be paid by the applicant at the time of the filing based on the administrative expenses incurred in reviewing and processing the application.
3. The Department shall have the authority to deem an application complete.
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D. Right of Assistance. All parties to an application for Rent adjustment may seek assistance from attorneys or any other person designated by said parties.
E. Consolidation. Applications for Rent adjustment pertaining to Tenants in the same building or rental property may be consolidated for determination at the election of the Department.
5.62.080. Security Deposit.
A. Unless otherwise prohibited by State law or the terms of a written rental agreement, a Landlord may increase a Tenant's security deposit for a Covered Rental Unit at the same time the Landlord seeks to increase the Rent under sections 5.62.040. Any increase in the security deposit shall be clearly stated in the written notice of the annual rent increase and shall not exceed the maximum amount authorized by State law.
B. As used in this Section, security deposit means any "security" as defined in California Civil Code section 1950.5.
5.62.090. Rental Unit Registration.
A. On or before September 30, 2023, and on or before September 30 of each subsequent year, a Landlord must register with the Department each Rental Unit that is rented or available for Rent for a term exceeding thirty (30) consecutive days by filing a rental registration in a form approved by the Department. After initial Rental Unit registration, a Landlord shall notify the Department and update the rental registration within thirty (30) days of the start of a new tenancy or any subsequent change in tenancy or ownership.
B. Registration must include, but is not limited to, the following information:
1. Property information, including address, year built and certificate of occupancy date.
2. Rent for each Rental Unit in the rental property at the time of registration and the date and amount of the last Rent increase.
3. Ownership information for the rental property.
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4. The number of total Rental Units in the rental property.
5. The number of bedrooms and bathrooms for each Rental Unit
6. Tenant information, including names and move -in dates.
7. A description of Housing Services.
8. Any additional information reasonably required by the Department to implement this Chapter.
C. Registration Fee. A Landlord must pay an annual registration fee for each Rental Unit registered on or after September 30, 2023. The registration fee shall be established by resolution of the City Council. Such fees are intended to recover the City's reasonable costs to implement, administer and enforce its rent stabilization and eviction protection regulations as set forth in Chapters 5.62 and Chapter 5.63 of the Code. The registration fee established by this subsection shall be waived for any Rental Unit in an owner -occupied residential real property containing no more than four (4) dwelling units in which the owner occupies one of the units as the owner's principal place of residence, so long as the owner continues in occupancy. For purposes of this subsection:
1. The term "owner" means a natural person who owns at least a 25% ownership interest in the residential real property.
2. A waiver under this subsection shall expire by operation of law when the owner ceases to reside on the property as their principal place of residence.
D. Registration Fee Pass -Through. A Landlord may recover fifty percent (50%) of a registration fee from the Tenant. A Landlord may only collect one annual registration fee pass -through cost at a time and must also meet the following requirements to pass -through this registration fee:
1. Timely and accurately submits an annual registration for each Rental Unit in the rental property;
2. Lists the registration fee pass -through cost as a separate line item on the monthly obligation(s) statement;
3. Provides Tenant with thirty (30) days' notice before collecting any registration fee pass -through cost; and
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4. A Tenant's payment to the Landlord for the registration fee pass -through cost is paid in twelve (12) equal, monthly installments, unless otherwise agreed to by the Tenant.
E. Application for Rental Unit Exemption. Any person with an ownership interest in a Rental Unit may claim an exemption from this Chapter by filing with the Department an application of exemption on a form approved by the Department.
5.62.100. Notices to Tenants.
A. Mandatory Notices to Tenants. Landlords must provide to each Tenant, prior to, or at the time of agreeing to rent or lease a Covered Rental Unit, a notice of Tenant rights under this Chapter. The Department shall publish a form notice of Tenant rights in English and other frequently spoken languages. Landlords must provide the form notice in the following circumstances.
1. When entering into a Rental Agreement, by including a copy of the form notice as an exhibit or attachment to the written Rental Agreement;
2. When renewing a Rental Agreement; and
3. When providing notice of a Rent increase or decrease in a Covered Rental Unit
B. Notice Regarding Potential Pass -Through Costs and Fees. A Landlord shall include language in the Rental Agreement that Tenant may be subject to pass - through costs and fees that have been reviewed and approved by the Department.
C. If the Rental Agreement is negotiated or written in a language other than English, the Landlord must also provide the form notice of Tenant rights in English and the language in which the Rental Agreement was negotiated or written.
5.62.110. Enforcement.
A. Enforcement Authority. The Department is authorized to take appropriate steps it deems necessary to administer and enforce this Chapter.
B. The Director of the Department, or designee, may develop and publish procedures and guidelines to aid in the implementation of this Chapter.
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5.62.120. Administrative Review and Appeals.
A. Administrative Review.
1. The Department shall review and evaluate applications pursuant to this Chapter and issue a notice of decision in accordance with its procedures and guidelines.
2. The Department may request documents, interview witnesses and affected parties, and gather necessary evidence to review and make appropriate conclusions and findings.
B. Appeal. Any party dissatisfied by the Department's final decision pursuant to this Chapter may request an appeal of the Department's decision to a Hearing Officer, unless otherwise prohibited by this Chapter. The Department's administrative record shall be reviewable by the Hearing Officer.
C. Time Limit. A party must file an appeal in writing before the Department within thirty (30) of the Department's final decision. The Hearing Officer shall have no authority to consider matters not filed within thirty (30) days of the Department's final decision.
D. Filing of Appeals. An appeal shall be filed with the Department, on the prescribed form, along with any accompanying appeal fee, and shall state specifically whether the basis of the appeal is that:
1. The Department's determination or interpretation is not in accord with the purposes of this Chapter;
2. There was an error or abuse of discretion by the Department;
3. The administrative record includes inaccurate information; or
4. The Department's decision is not supported by the administrative record.
E. Procedures for Appeals.
1. Hearing Dates. A hearing on a request for appeal will be scheduled before a hearing officer for a date no sooner than fifteen (15) days and no later than sixty (60) days after receipt of the request for appeal, unless the hearing officer determines that good cause exists for an extension of time.
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Upon setting the hearing date, the hearing officer shall send written notice to the appealing party of the date, time and place set for the hearing.
2. Public Hearing. The appeal hearing shall be conducted at a hearing open to the public. At the hearing, the Hearing Officer shall review the record of the decision and hear testimony of the party requesting the appeal, representatives of the Department, and any other interested party.
3. Application and Materials. At an appeal hearing, the Hearing Officer shall consider only the administrative record that was the subject of the Department's final decision.
F. Decision and Notice.
1. After the hearing, the Hearing Officer shall either:
a. Affirm, modify, or reverse the Department's decision and specify the reasons for its decision; or
b. Refer the matter back to the Department for further review.
2. Decisions shall be rendered within thirty (30) days of the close of the hearing. If the Hearing Officer fails to act within thirty (30) days of the close of the hearing, the Department's decision shall be deemed affirmed.
G. The Hearing Officer shall mail the Hearing Officer's decision to the parties within ten (10) days after it is rendered.
H. Final decision. The decision of the Hearing Officer shall be final and not subject to further appeal.
I. Judicial Review of Hearing Officer Decision. Any person directly aggrieved by an administrative decision of a hearing officer pertaining to a request for appeal of a Director's decision under this Chapter, may seek judicial review in the Court pursuant to Government Code Section 53069.4 and/or Code of Civil Procedure Sections 1094.5 and 1094.6.
5.62.130. Administrative Citations.
A. Administrative Citation. Any Landlord or Tenant who violates any provision of this Chapter, or Department's procedures and guidelines, is subject to an Exhibit 2
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administrative fine as set in a schedule of fines adopted by resolution by the city council as provided in Chapter 1.16 of the Code.
B. Remedies are Cumulative. Each day that a violation continues shall constitute a separate and distinct offense for which an administrative fine may be imposed. The remedies set forth in this section are cumulative and in addition to any other penalty provided by law, including any remedies which may be sought in a civil action. The provisions of this Chapter shall not be construed as limiting any party's right to obtain relief to which he or she may be entitled at law or in equity.
C. Notices of Violation and Administrative Fine. If the Department determines that a Landlord or Tenant has violated this Chapter, the Department may issue notices of violation and administrative fine in accordance with the authority and procedures set forth in Chapter 1.16 of the Code.
D. Administrative Appeals and Judicial Review.
1. Administrative Appeal. Any Landlord or Tenant who receives a notice of administrative fine may request an administrative hearing before a hearing officer in accordance with Chapter 1.16 of the Code.
2. Judicial Review of Hearing Officer Decision. Any Landlord or Tenant may seek judicial review of a hearing officer's decision pertaining to the imposition of an administrative fine in accordance Chapter 1.16 of the Code.
5.62.140. Remedies.
A. Civil Liability. Any Tenant, or any other person or entity acting on behalf of the Tenant who will fairly and adequately represent the Tenant's interest, including the City, is authorized to bring a civil action and/or proceeding in a court of competent jurisdiction for violation of this Chapter, for civil penalties, injunctive, declaratory and other equitable relief, restitution and reasonable attorneys' fees and costs and may take such other steps as necessary to enforce this Chapter. The court may award reasonable attorneys' fees and costs to a Landlord who prevails in any such action if the court determines that the Tenant's action was frivolous.
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B. Civil Penalty. Any person violating any of the provisions, or failing to comply with any of the requirements of this Chapter, may be liable for a civil penalty not to exceed One Thousand Dollars ($1,000) for each violation.
C. Criminal Penalty. Any person violating any of the provisions or failing to comply with any of the requirements of this Chapter, shall be guilty of a misdemeanor and punished by a fine of not more than One Thousand Dollars ($1,000), or by imprisonment in the county jail for a period of not more than six (6) months, or by both.
D. Defense to Eviction. A Tenant may assert as an affirmative defense a Landlord's failure to comply with the provisions of this Chapter in any action by a Landlord to recover possession of a Rental Unit.
E. Each violation of any provision of this Chapter, and each day during which any such violation is committed, permitted or continued, shall constitute a separate offense.
F. The above remedies are not exclusive and do not preclude the City or any Tenant from seeking other remedies or penalties provided by applicable law.
5.62.150. Waiver. Any waiver of rights under this Chapter shall be void as contrary to public policy.
5.62.160. Severability. If any provision of this Chapter or the application thereof to any person, property, or circumstance, is held invalid, such invalidity shall not affect other provisions or applications of this Chapter that can be given effect without the invalid provision(s) or application, and to this end, the provisions of this Chapter are declared to be severable.
SECTION 3. Chapter 5.63 of Title 5 of the Bell Gardens Municipal Code is hereby added to read as follows:
Chapter 5.63
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TENANT EVICTION PROTECTIONS
Sections:
5.63.010 Purpose and Applicability
5.63.020 Definitions
5.63.030 Termination of Tenancy
5.63.040 Relocation Assistance
5.63.050 Tenant Buyout Agreements
5.63.060 Retaliatory Eviction and Anti -Harassment
5.63.070 Notices to Tenants
5.63.080 Enforcement
5.63.090 Administrative Citations
5.63.100 Remedies
5.63.110 Waiver
5.63.120 Severability
5.63.010. Purpose and Applicability.
A. The purpose of this Chapter is to reasonably regulate just cause evictions so as to be more protective than Civil Code section 1946.2.
B. This Chapter shall apply to any Tenancy after at least one Tenant has continuously and lawfully occupied a Rental Unit for twelve (12) months or more.
C. This Chapter regulates evictions for certain tenancies. It requires landlords to provide relocation assistance for certain no-fault evictions, prohibits retaliation and harassment, and provides for the implementation and enforcement of this Chapter.
5.63.020. Definitions. For the purposes of this Chapter, unless the context requires otherwise, the following definitions shall apply.
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A. "Buyout Agreement" means a written agreement between a Landlord and a Tenant as provided in Section 5.63.050 by which a Tenant, typically in consideration for monetary payment, agrees to vacate a Rental Unit.
B. "City" means the City of BeII Gardens.
C. "Code" means the City of BeII Gardens Municipal Code.
D. "Department" means the Community and Economic Development Department of the City of BeII Gardens, or other Department designated by the City Council to administer the provisions of this Chapter.
E. "Director" means the Director of the Department, or their designee.
F. "Ellis Act" means California Government Code sections 7060 - 7060.7.
G. "Housing Services" means all services provided by the Landlord related to the use or occupancy of a Rental Unit, including, water, heat, utilities, insurance, maintenance, repairs, painting, elevator service, laundry facilities, janitorial service, refuse removal, furnishings, window shades and screens, parking, storage, security services, recreational areas, right to have specified number of tenants or occupants, allowing pets, communications technologies (internet, cable and satellite services), and any other benefit, privilege or facility that has been provided by the Landlord to the Tenant with use or occupancy of a Rental Unit. Services to a Rental Unit shall include a proportionate part of services provided to common facilities of the building in which a Rental Unit is contained.
H. "Landlord" means an owner, lessor, sublessor, or any other person entitled to offer any Rental Unit for Rent or entitled to receive Rent for the use and occupancy of a Rental Unit, and the agent, representative, or successor of any of the foregoing.
I. "Landlord's Family Member" means a spouse, domestic partner, child, grandchild, parent, or grandparent of a Landlord who is a natural person whose name is on the title of the property.
J "Mobilehome" means any mobilehome as defined under California Civil Code Section 798.3.
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K. "Mobilehome Park" means an area of land located where two or more Mobilehome spaces are rented or leased out for Mobilehomes used as residences.
L. "Rent" means the sum of all periodic payments and all nonmonetary consideration demanded or received by a Landlord from a Tenant for the use or occupancy of a Rental Unit or Mobilehome Park space located in the jurisdictional boundaries of the City of Bell Gardens, including Tenant's access to and use of Housing Services. Rent includes, without limitation, the fair market value of goods accepted, labor performed, or services rendered. Rent does not include any of the following: security deposits, utility charges billed separately to the Tenant by the utility company, and pass -through fees and charges authorized pursuant to this Chapter.
M. "Rental Agreement" means an agreement, oral, written, or implied, between a Landlord and Tenant for the use or occupancy of a Rental Unit and related Housing Services.
N. "Rental Unit" means any dwelling unit, as defined under California Civil Code section 1940 subsection (c) located in the jurisdictional boundaries of the City of BeII Gardens and that is used or occupied for human habitation in consideration of payment of rent, whether or not the residential use is legally permitted, including Mobilehomes rented by the owner of the Mobilehome, and accessory dwelling units.
O. "Residential Real Property" includes any parcel of land containing one or more dwelling units intended for human habitation.
P. "Tenancy" means the lawful right or entitlement of a Tenant to use or occupy a Rental Unit. This includes a lease or a sublease.
Q. "Tenant" means a tenant, subtenant, lessee, sublessee, or any other person entitled, under the terms of a Rental Agreement to the use or occupancy of any Rental Unit.
5.63.030. Termination of Tenancy.
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A. No Landlord shall terminate a Tenancy of an occupied Rental Unit after a Tenant has continuously and lawfully occupied the Rental Unit for twelve (12) months or more unless the Landlord can demonstrate either a For Cause or No -Fault termination.
B. When terminating a Tenancy either For Cause or No -Fault, a Landlord must comply with all of the following:
1. The Landlord must serve a written notice to the Tenant in accordance with California Civil Code sections 1946 through 1946.5 that states the Landlord will terminate the Tenancy, indicates at least one For Cause or No -Fault reason for termination in reasonable detail, and includes any other information required by federal or State law; and
2. The Landlord has not accepted and will not accept Rent or any other consideration in return for the continued use of the Rental Unit beyond the term of the terminated Tenancy in compliance with California Civil Code sections 1945 through 1946.5; and
3. The Landlord qualifies the termination as For Cause or No -Fault, as specified in this Section; and
4. If the termination is a No Fault termination, the Landlord has provided the Tenant with the notice of relocation assistance required by Section
5.63.040.
5. The Landlord has submitted to the Department, within five (5) days after service of the notice of termination on the Tenant, a true and accurate copy of the Landlord's written notice of termination, and proof of such service, signed under penalty of perjury, on the Tenant. The Landlord shall maintain proof of service to the Department as evidence that the Landlord has complied with this Section.
C. For Cause Termination of Tenancy. If a Landlord can show any of the following circumstances with respect to a termination of Tenancy in a Rental Unit, the termination qualifies as a For Cause Termination.
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1. Failure to Pay Rent. Tenant failed to pay Rent within three (3) days of written notice being served on Tenant by Landlord demanding payment as provided in paragraph (2) of California Code of Civil Procedure Section 1161
2. Violation of Material Term of Rental Agreement. Tenant has continued to violate a material term of the Rental Agreement as provided in California Code of Civil Procedure section 1161 subdivision (3), after written notice to cease, and did not cure such violation within ten (10) days after receiving written notice from the Landlord of such violation.
3. Waste. A Tenant committed waste as described in California Code of Civil Procedure section 1161 subdivision (4).
4. Nuisance or Illegal Purpose. Tenant has maintained, committed, or permitted the maintenance or commission of a nuisance or used the Rental Unit for an illegal purpose as provided in California Code of Civil Procedure section 1161 subdivision (4) including:
a. Any crime or act of violence committed by a Tenant of a Rental Unit which involves use of a gun or a deadly weapon, or inflicts serious bodily injury and for which a police report has been filed; b. Any threat of violent crime or violence, which includes any statement made by a Tenant, or at the Tenant's request, by the Tenant's agent, to any person who is on the property where the Rental Unit is located, threatening to commit a crime or violence which will result in death or serious bodily injury to another person, with the specific intent that the statement is to be taken as a threat, even if there is no intent of actually carrying it out, when on its face and under the circumstances in which it is made, it is unequivocal, immediate, and specific as to convey to the person threatened, a gravity of purpose and an immediate prospect of execution of the threat, and thereby causes that person reasonably to be in sustained fear for his or her own safety or for his or her immediate family's safety; or
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c.Tenant has created or is maintaining a dangerous condition or an unsanitary condition that endangers health, safety and welfare or physically damages the unit beyond normal wear and tear and that condition has not been promptly abated or repaired after written notice to the Tenant from the Landlord and the passage of a reasonable cure period.
It shall be an affirmative defense to an action for possession of a Rental Unit under this Subsection 5.63.030.E.4 if a court determines that: (i) The Tenant or the Tenant's household member is a victim of an act or acts that constitute domestic violence or sexual assault or stalking; and (ii) The notice of For Cause termination is substantially based upon the act or acts constituting domestic violence or sexual assault or stalking against the Tenant or a Tenant's household member, including but not limited to an action for possession based on complaints of noise, disturbances, or repeated presence of police.
5. Failure to Sign Substantially Similar Lease. The Tenant has refused to execute a written extension or renewal of a Rental Agreement upon expiration of a prior Rental Agreement, after written request or demand from the Landlord, but only if the provisions are substantially similar and the additional term is of similar duration to the prior written Rental Agreement, and is consistent with federal, State, and local laws. For purposes of this Subsection, the Landlord's written request or demand must be received no later than sixty (60) days before final day of Tenancy of the prior Rental Agreement.
6. Assignment or Subletting in Violation of Lease. The Tenant has assigned or sublet the Rental Unit in violation of the Rental Agreement, as provided in California Code of Civil Procedure section 1161(4).
7. Refuse Access. Tenant has continued to refuse, after Landlord has provided a written request, reasonable access to the Rental Unit by the Landlord for the purpose of making necessary repairs or improvements in Exhibit 2
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accordance with California Civil Code Sections 1101.5 and 1954 and California Health and Safety Code Sections 13113.7 and 17926.1.
8. Failure to Vacate After Termination of Employment. Tenant was employed by the Landlord to serve as a resident manager or other employee, was provided with the Rental Unit as part of or as a condition of the employment and the employment has been terminated. This provision shall not apply to any Tenant whose Tenancy in the building or complex housing the Rental Unit commenced prior to assuming managerial responsibilities or whose status as a Tenant commenced prior to their status as a resident manager.
9. Failure to Vacate After Termination of Lease. A Tenant's failure to timely deliver possession of the Rental Unit after: (i) providing the Landlord written notice as provided in Civil Code section 1946 of the Tenant's intention to terminate a lease; or (ii) making a written offer to surrender, that is accepted in writing by the Landlord, but the time specified in that written notice as described in Code of Civil Procedure section 1161(5) has expired.
D. No -Fault Termination of Tenancy. If a Landlord can show any of the following circumstances with respect to a termination of Tenancy in a Rental Unit, the termination qualifies as a No -Fault termination.
1. A Landlord seeks in good faith to recover possession in order to imminently:
a. Demolish the Rental Unit
b. Withdraw the Rental Unit permanently from rental housing use pursuant to the Ellis Act and other applicable State laws.
2. A Landlord seeks in good faith to recover possession of a Rental Unit for the use and occupancy by Landlord or Landlord's Family Member as the principal residence. Said Rental Unit must be occupied as the principal residence within ninety (90) days of the Tenant household vacating the Rental Unit, and the Rental Unit must continue to be occupied as the principal residence of Landlord or Landlord's Family Member for at least three (3) years, unless extenuating circumstances exist.
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a. If the Rental Agreement was entered into on or after the effective date of this Chapter, this Subsection 5.63.030.D.2 shall apply only if the Tenant agrees, in writing, to the termination, or if a provision of the Rental Agreement allows the Landlord to terminate the Rental Agreement if the Landlord, or Landlord's Family Member unilaterally decides to occupy the Rental Unit.
b. A Landlord must provide the Tenant sixty (60) days' written notice that the Landlord intends to terminate the Tenancy.
c. Owner -Occupancy Disclosure.
i. Not less than sixty (60) days prior to the final date of the Tenancy, in addition to any notice required by California Civil Code section 827, the Landlord must disclose to the
Department the name(s) of the eligible individual(s) who will occupy the Rental Unit, and the relationship of said
individual(s) to the Landlord.
ii. The Department may contact Landlord during the three (3) year occupancy time frame to confirm that the Landlord or Landlord's Family Member resides in the recovered Rental Unit(s), and may obtain written verification of residency. d. A Landlord may not terminate a Tenancy under this Section if any of the following apply, unless the Landlord or Landlord's Family Member who will reside in the Dwelling Unit is similarly situated as the Tenant or Tenant's household members who are being
displaced:
i. any Tenant in the Rental Unit has continuously resided in the Rental Unit for at least five (5) years, and a member of Tenant's household is either: (i) 62 years of age or older; or (ii) disabled as defined in Section 12955.3 of the California Government Code or handicapped as defined in Section
50072 of the California Health and Safety Code;
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ii. any Tenant in the Rental Unit or member of Tenant's household is terminally ill as certified by a treating physician licensed to practice in the State of California; or
iii. any Tenant in the Rental Unit is a low-income tenant (low- income tenant means a household whose income does not
exceed the qualifying limits for lower income families as established and amended from time to time pursuant to
Section 8 of the United States Housing Act of 1937, or as otherwise defined in California Health and Safety Code
Section 50079.5).
e. Tenant's Right of First Return.
i. If a Landlord or Landlord's Family Member ceases occupation of the Rental Unit within three (3) years after the final date of Tenancy, the Tenant of a Rental Unit is entitled to receive notice of the first right to return to rent the same unit at the Rent previously charged plus any annual Rent increases
allowed under Chapter 5.62 of the Code.
ii. Nothing in this Section shall be construed to relieve the Landlord of the obligation to directly contact the former Tenant and to advise the Tenant that the recovered Rental Unit will again be offered for Rent.
3. A Landlord seeks in good faith to recover possession to comply with any of the following: (i) An order issued by a government agency or court relating to habitability that necessitates vacating the Rental Unit; (ii) An order issued by a government agency or court to vacate the Rental Unit; or (iii) A local ordinance that necessitates vacating the Rental Unit. If it is determined by any government agency or court that the Tenant is at fault for the condition or conditions triggering the order or for the need to vacate under this Subsection, the Tenant shall not be entitled to relocation assistance.
E. All No -Fault terminations of Tenancy are eligible for relocation assistance.
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5.63.040. Relocation Assistance.
A. Permanent Relocation Assistance. When relocation assistance must be paid to Tenants who are evicted from their Rental Unit pursuant to Section 5.63.030, the Landlord must make the relocation assistance payment in accordance with this Section. The Landlord must provide written notice to the Tenant of the Tenant's entitlement to permanent relocation assistance at the same time the Landlord serves a notice of termination of Tenancy.
1. The Landlord shall pay a relocation assistance amount equal to three (3) times the Tenant's monthly Rent in effect when the Landlord served the notice to terminate the tenancy.
2. If any Tenant residing in the Rental Unit from which the Tenants are to be displaced includes a Qualified Tenant, then all Tenants living in the Rental Unit are collectively entitled to additional relocation assistance as follows:
a. The Landlord shall pay an additional relocation assistance amount equal to one (1) times the Tenant's monthly Rent in effect when the Landlord served the notice to terminate the tenancy.
b. For purposes of this Subsection, Qualified Tenant means any Tenant who:
i. Is sixty-two (62) years of age or older, disabled, as defined in Section 12955.3 of the California Government Code or
handicapped as defined in Section 50072 of the California Health and Safety Code;
ii. Has one or more dependent children under the age of eighteen (18) residing in the Rental Unit;
iii. Meets the income limits for a "lower -income household" as defined in California Health and Safety Code section 50079.5; or
iv. Has continuously resided in the Rental Unit for five (5) years or more.
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The Tenant shall notify Landlord within ten (10) days of receiving the termination of tenancy notice, if any of the Tenants living in the Rental Unit from which the Tenants are to be displaced includes a Qualified Tenant, along with any reasonable proof of eligibility.
3. Permanent relocation assistance payments must be paid directly to the Tenant.
a. If a Rental Unit is occupied by two (2) or more Tenants, then each Tenant of the Rental Unit shall be paid a pro -rate share of the relocation assistance payment.
b. Landlord shall pay one-half of the relocation assistance due no later than fifteen (15) days following service of the termination of tenancy and the balance due no later than five (5) business days after the Tenant has vacated the Rental Unit. If a Tenant fails to vacate after the expiration of the notice to terminate the tenancy, the actual amount of any relocation assistance provided pursuant to this Chapter shall be recoverable as damages in an action to recover possession.
B. Temporary Relocation Assistance. A Landlord must provide temporary relocation assistance to Tenants of a Rental Unit who are temporarily displaced due to repairs, rehabilitation of a Rental Unit, health and safety violations, or other work or activities that will make the Rental Unit an untenantable dwelling, as defined in California Civil Code Section 1941.1, or will expose the Tenant to toxic or hazardous materials, or that cannot otherwise be completed while the Tenant remains in the Rental Unit.
1. Thirty (30) Days or Less. A Landlord must provide the Tenant a per -diem payment if the Tenant will be temporarily displaced for thirty (30) days or less.
2. Thirty -One (31) Days or More. A Landlord must provide the Tenant either a per -diem payment or comparable temporary accommodations, if available.
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3. Per -Diem Payment.
a. Per -diem payment will be based on the Federal General Services Administration per -diem rate for lodging in the County of Los Angeles, which is updated on a yearly basis, unless otherwise agreed upon by the Landlord and Tenant, and may include any applicable transient occupancy taxes.
b. Upon mutual agreement by the Landlord and Tenant, per -diem payments may be paid directly to the Tenant, or in the event of a hotel, motel or short-term rental accommodations, directly to the hotel, motel or short-term rental.
4. Temporary Relocation Assistance payments will be made on a pro -rata basis to the eligible Tenant household.
5. Temporary Hotel or Motel Accommodation. If relocation is to a hotel or motel, the Landlord must provide a hotel or motel accommodation which is safe, sanitary, and unless otherwise agreed upon by the Landlord and Tenant, within a reasonable distance of the Tenant's Rental Unit.
6. The temporary displacement and relocation of a Tenant pursuant to this Section 5.63.040.B shall not terminate the Tenancy of the displaced Tenant.
The displaced Tenant shall have the right to reoccupy his or her Rental Unit upon the completion of the work necessary for the Rental Unit to comply with housing, health, building or safety laws or any government order and the Tenant shall retain all rights of Tenancy that existed prior to the displacement.
7. Nothing in this Section 5.63.040.B shall be construed as authorizing a Landlord to require a Tenant to vacate a unit, except as permitted under federal, state, or local law.
C. No Waiver. A Tenant cannot waive his or her right to receive relocation assistance required by this Chapter.
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D. Any action brought by a Tenant for a violation of this Section must be brought in a court of competent jurisdiction. No administrative remedy need be exhausted prior to filing suit pursuant to this Section.
5.63.050. Tenant Buyout Agreements.
A. Landlord's Disclosure Prior to Buyout Offer. At the time a proposed buyout agreement is provided, the Landlord shall provide each Tenant in the Rental Unit a written disclosure, on a form approved by the Department, in English and in the Tenant's primary language if other than English translated at the Landlord's expense, that shall include all of the following:
1. A statement that the Tenant has a right not to enter into buyout negotiations or a buyout agreement;
2. A statement that the Tenant may choose to consult with an attorney before entering into a buyout agreement;
3. A statement that the Tenant may rescind the buyout agreement for up to thirty (30) days after it is fully executed;
4. A statement that the Tenant may contact the Department for information about other buyout agreements in the Tenant's neighborhood and other relevant information;
5. Any other information required by the Department consistent with the purpose and provisions of this Section; and
6. A space for each Tenant to sign and write the date the Landlord provided the Tenant with the disclosure.
B. Requirement for Buyout Agreements. The buyout agreement shall:
1. Be in writing in English and the language in which the buyout agreement was negotiated if other than English translated at the Landlord's expense.
The Landlord shall give each Tenant a copy of the proposed buyout agreement at least forty-five (45) days before it is executed by the parties.
2. Include the following statement in bold letters in at least 12 -point boldface type in close proximity to the space reserved for the signature of the Tenant:
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a. "You may cancel this buyout agreement in writing at any time before the thirtieth (30th) day after all parties have signed this buyout agreement."
b. "You have a right not to enter into a buyout agreement." c. "You may choose to consult with an attorney before signing this buyout agreement. The City of BeII Gardens Community
Development Department may also have information about other buyout agreements in your neighborhood."
C. Rescission of Buyout Agreement. A Tenant shall have the right to rescind a buyout agreement for up to thirty (30) days after its execution by all parties. In order to rescind a buyout agreement, the Tenant must hand -deliver, email, or send by certified mail return receipt requested, a statement to the Landlord indicating that the Tenant has rescinded the buyout agreement.
D. Filing of Buyout Agreement and Disclosure Notice. The Landlord shall provide the Tenant a copy of the fully executed buyout agreement within ten (10) days of execution. Landlord shall also file with the Department a copy of the executed buyout agreement, along with proof of service to the Tenant of the disclosure notice as required in this Section, within ten (10) days after the buyout agreement is executed by all parties.
5.63.060. Retaliatory Eviction and Anti -Harassment.
A. Retaliatory Eviction.
1. No Landlord may terminate a Tenancy or refuse to renew a Tenancy or otherwise cause a Tenant to vacate a Rental Unit, if the Landlord's intent in termination of the Tenancy or refusal to renew the Tenancy is retaliatory in nature, and if the Tenant is not in default as to the payment of Rent.
2. A Tenant may assert retaliation affirmatively or as a defense to the Landlord's action regardless of the period of time which has elapsed between the Tenant's assertion or exercise of rights under this Chapter and the alleged act of retaliation.
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3. Retaliation against a Tenant because of the Tenant's exercise of rights under this Chapter is prohibited. Retaliation claims may only be brought in court and may not be addressed administratively. A court may consider the protections afforded by this Chapter in evaluating a claim of retaliation.
B. Anti -Harassment. No Landlord, or any person, acting as a principal or agent, offering a Rental Unit for Rent, or any contractor, subcontractor or employee of the Landlord shall, with respect to property used as a Rental Unit under any Rental Agreement or other lawful Tenancy, do any of the following:
1. Interrupt, terminate, or fail to provide Housing Services required by Rental Agreement or by federal, State, or local housing, health, or safety laws, or threaten to do so, or violate California Civil Code sections 789.3 and 1940.2;
2. Do any of the actions in bad faith:
a. Fail to perform repairs and maintenance required by Rental Agreement or by federal, State, or local laws;
b. Fail to exercise due diligence in completing repairs and maintenance once undertaken;
c. Fail to follow appropriate industry repair, containment, or remediation protocols designed to minimize exposure to noise, dust, lead, paint, mold, asbestos, or other building materials with potentially harmful health impacts;
d. Conduct elective renovation or construction of Rental Unit for the purpose of harassing a Tenant;
e. Refuse to acknowledge or accept receipt of a Tenant's lawful Rent payment as set forth in a Rental Agreement, by usual practice of the parties, or in a notice to pay Rent or quit;
f. Refuse to cash or process a rent check or other form of acceptable Rent payment for over thirty (30) days after it is tendered; g. Fail to maintain a current address, in addition to any electronic payment methods, for delivery of Rent payments;
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h. Request information that violates a Tenant's right to privacy, including, but not limited to, residency or citizenship status, protected class status, or social security number, except as required by law or in the case of a social security number, for the purpose of determining the Tenant's qualifications for a Tenancy;
i. Release information protected by the Tenant's right to privacy except as required or authorized by law; or
j. Request or demand an unreasonable amount of information from Tenant in response to a request for reasonable accommodation.
3. Abuse the right of access into a Rental Unit as established by California Civil Code section 1954 or other applicable law. This includes, but is not limited to, entries for inspections that are not related to necessary repairs or services; entries that are unreasonable in frequency or duration; entries that improperly target certain Tenants or are used to collect evidence against the occupant or otherwise beyond the scope of an otherwise lawful entry.
4. Influence or attempt to influence a Tenant to vacate a Rental Unit through fraud, misrepresentation, intimidation or coercion, which shall include threatening to report a Tenant to the United States Department of Homeland Security.
5. Threaten the Tenant, by word or gesture, with physical harm, or repeatedly mistreat an occupant of a Rental Unit during in -person conversations, through social media postings or messages, or other communications, with language, verbal or written, that a reasonable person would consider likely to cause fear or provoke an immediate violent reaction.
6. Violate any law which prohibits discrimination based on race, gender, sexual preference, sexual orientation, ethnic background, nationality, religion, age, parenthood, marriage, pregnancy, disability, human immunodeficiency virus (HIV)/ acquired immune deficiency syndrome (AIDS), occupancy by a minor child, or source of income.
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7. Take action to terminate any Tenancy including service of any notice to quit or other eviction notice or bring any action to recover possession of a Rental Unit based upon facts which the Landlord has no reasonable cause to believe to be true or upon a legal theory which is untenable under the facts known to the Landlord. No Landlord shall be liable under this Subsection for bringing an action to recover possession unless and until the Tenant has obtained a favorable termination of that action.
8. Remove from the Rental Unit personal property, furnishings, or any other items without the prior written consent of the Tenant, except when done pursuant to enforcement of a legal termination of Tenancy.
9. Provide false written or verbal information regarding any federal, State, or local Tenant protections, including mischaracterizing the nature or effect of a notice to quit or other eviction notice.
10.Offer payments to:
a. A Tenant to vacate, including a Buyout Agreement offer, more frequently than once every six (6) months, after the Tenant has notified the Landlord in writing that the Tenant does not desire to receive further offers of payments to vacate.
b. Attempt to coerce the Tenant to vacate accompanied with threats or intimidation. This shall not include settlement offers in pending eviction actions made in good faith and not accompanied with threats or intimidation.
11. Interfere with a Tenant's right to quiet use and enjoyment of a Rental Unit as that right is defined by law.
12.Commit repeated acts or omissions of such significance as to substantially interfere with or disturb the comfort, repose, peace, or quiet of any person lawfully entitled to occupancy of such Rental Unit and that cause, are likely to cause, or are intended to cause any person lawfully entitled to occupancy of a Rental Unit to vacate such Rental Unit or to surrender or waive any rights in relation to such occupancy.
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13. Interfere with the right of Tenants to organize as Tenants and engage in concerted activities with other Tenants for the purpose of mutual aid and protection; provide property access to tenant organizers, advocates, or representatives working with or on behalf of Tenants living at a property; convene tenant or tenant organization meetings in an appropriate space accessible to Tenants under the terms of their Rental Agreement; or distribute and post literature in common areas, including lobby areas and bulletin boards, informing other Tenants of their rights and of opportunities to involve themselves in organized tenant activities.
C. Remedies and Penalties. For the purposes of this Section
1. If any Landlord or any person, acting as a principal or agent, offering a Rental Unit for rent, or any contractor, subcontractor, or employee of the Landlord violates the terms of this Section, an aggrieved Tenant may institute a civil action, as allowed under Section 5.63.100, for injunctive relief, direct money damages, and any other relief that the court deems appropriate.
2. The above remedies are not exclusive and do not preclude any Tenant from seeking other remedies or penalties provided by this Chapter or applicable law. No administrative remedy need be exhausted prior to filing suit pursuant to this Section.
5.63.070. Notices to Tenants.
A. Mandatory Notices to Tenants. Landlords must provide to each Tenant, prior to, or at the time of agreeing to rent or lease a Rental Unit, a notice of Tenant rights under this Chapter. The Department shall publish a form notice of Tenant rights in English and other frequently spoken languages. Landlords must provide the form notice in the following circumstances.
1. When entering into a Rental Agreement, by including a copy of the form notice as an exhibit or attachment to the written Rental Agreement;
2. When renewing a Rental Agreement; and
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B. If the Rental Agreement is negotiated or written in a language other than English, the Landlord must also provide the form notice of Tenant rights in English and the language in which the Rental Agreement was negotiated or written.
5.63.080. Enforcement.
A. Enforcement Authority. The Department is authorized to take appropriate steps it deems necessary to administer and enforce this Chapter.
B. The Director of the Department, or designee, may develop and publish procedures and guidelines to aid in the implementation of this Chapter.
5.63.090. Administrative Citations.
A. Administrative Citation. Any Landlord or Tenant who violates any provision of this Chapter, or Department's procedures and guidelines, is subject to an administrative fine as set in a schedule of fines adopted by resolution by the city council as provided in Chapter 1.16 of the Code.
B. Remedies are Cumulative. Each day that a violation continues shall constitute a separate and distinct offense for which an administrative fine may be imposed. The remedies set forth in this section are cumulative and in addition to any other penalty provided by law, including any remedies which may be sought in a civil action. The provisions of this Chapter shall not be construed as limiting any party's right to obtain relief to which he or she may be entitled at law or in equity.
C. Notices of Violation and Administrative Fine. If the Department determines that a Landlord or Tenant has violated this Chapter, the Department may issue notices of violation and administrative fine in accordance with the authority and procedures set forth in Chapter 1.16 of the Code.
D. Administrative Appeals and Judicial Review.
1. Administrative Appeal. Any Landlord or Tenant who receives a notice of administrative fine may request an administrative hearing before a hearing officer in accordance with Chapter 1.16 of the Code.
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2. Judicial Review of Hearing Officer Decision. Any Landlord or Tenant may seek judicial review of a hearing officer's decision pertaining to the imposition of an administrative fine in accordance Chapter 1.16 of the Code.
5.63.100. Remedies.
A. Civil Liability. Any Tenant, or any other person or entity acting on behalf of the Tenant who will fairly and adequately represent the Tenant's interest, including the City, is authorized to bring a civil action and/or proceeding in a court of competent jurisdiction for violation of this Chapter, for civil penalties, injunctive, declaratory and other equitable relief, restitution and reasonable attorneys' fees and costs and may take such other steps as necessary to enforce this Chapter. The court may award reasonable attorneys' fees and costs to a Landlord who prevails in any such action if the court determines that the Tenant's action was frivolous.
B. Civil Penalty. Any person violating any of the provisions, or failing to comply with any of the requirements of this Chapter, may be liable for a civil penalty not to exceed One Thousand Dollars ($1,000) for each violation.
C. Criminal Penalty. Any person violating any of the provisions or failing to comply with any of the requirements of this Chapter, shall be guilty of a misdemeanor and punished by a fine of not more than One Thousand Dollars ($1,000), or by imprisonment in the county jail for a period of not more than six (6) months, or by both.
D. Defense to Eviction. A Tenant may assert as an affirmative defense a Landlord's failure to comply with the provisions of this Chapter in any action by a Landlord to recover possession of a Rental Unit.
E. Each violation of any provision of this Chapter, and each day during which any such violation is committed, permitted or continued, shall constitute a separate offense.
F. The above remedies are not exclusive and do not preclude the City or any Tenant from seeking other remedies or penalties provided by applicable law.
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5.63.110. Waiver. Any waiver of rights under this Chapter shall be void as contrary to public policy.
5.63.120. Severability. If any provision of this Chapter or the application thereof to any person, property, or circumstance, is held invalid, such invalidity shall not affect other provisions or applications of this Chapter that can be given effect without the invalid provision(s) or application, and to this end, the provisions of this Chapter are declared to be severable.
SECTION 4. Inconsistent Provisions. Any provision of the Bell Gardens Municipal Code or appendices thereto that conflicts with the provisions of this Ordinance, to the extent of such conflict and no further, is hereby repealed or modified to the extent necessary to implement the provisions of this Interim Ordinance.
SECTION 5. Severability. If any section, subsection, 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. Compliance with California Environmental Quality Act. The City Council finds that this Ordinance is not subject to the California Environmental Quality Act pursuant to Section 15060(c)(2), constituting an activity that will not result in a direct or reasonably foreseeable indirect physical change in the environment, and pursuant to Section 15060(c)(3) constituting an activity that is not a project as defined in Section 15378.
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SECTION 7. If any section, subsection, sentence, clause, phrase, or portion of this Ordinance is for any reason held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have adopted this Ordinance, and each section, subsection, subdivision, sentence, clause, phrase, or portion thereof irrespective of the fact that any one or more sections, subsections, subdivisions, sentences, clauses, phrases, or portions might subsequently be declared invalid or unconstitutional.
SECTION 8. The City Clerk shall certify to the passage and adoption of this Ordinance and shall cause this Ordinance to be published or posted as required by law.
This Ordinance shall become effective thirty (30) days after the date of its adoption.
PASSED, APPROVED, AND ADOPTED this 12th day of September 2022.
THE CITY OF BELL GARDENS
APPROVED AS TO FORM:
Ick Olivarez
City Attorney
Exhibit 2
Maria Puli o, Mayor
ATTEST:
Daisy Gomez
City Clerk
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I, DAISY GOMEZ, City Clerk of the City of Bell Gardens, hereby CERTIFY that Ordinance No. 925 was introduced and placed upon its first reading at a regular meeting of the BeII Gardens City Council held on Monday, August 22, 2022 and that thereafter said ordinance was duly adopted at a regular meeting of the BeII Gardens City Council held on Monday, September 12, 2022 and was approved and passed by the following vote:
AYES: Council Members Barcena, Cortez, Flores; Mayor Pro Tem Chavez; Mayor Pulido NOES: None
ABSTAIN: None
ABSENT: None
49 Daisy Gomez, City Clerk
Exhibit 2
236
EXHIBIT "B"
CONSULTANT PROPOSAL
20 Exhibit 2 237
*,,,Vot•S
TABLE OF CONTENTS JANUARY 19, 2023
Transmittal Letter 3
Work Plan/Project Approach 5
Management and Staffing 11
Qualifications, Prior Related Experience and References. 17 Cost Pricing 20
Additions or Exceptions 21
Pending Litigation 21
Proof of Insurance 21
Exhibit 2 239
January 19, 2023
Steven Jones, City Planner
City of Be11 Gardens
7100 Garfield Avenue
Bell Gardens, CA 90201
Proposal for Rent Stabilization and Tenant Eviction Protections Program Comprehensive Fee Study
Revenue & Cost Specialists, LLC (RCS) appreciates the opportunity to submit this proposal for a Rent Stabilization and Tenant Eviction Protections Program Comprehensive Fee Study.
This proposal includes additional services in assisting with the planning, development, and implementation of the City's Rent Stabilization and Tenant Eviction Protections (RSTEP) Program.
We have been providing costing services since 1980, making us the first and foremost authority in costing services for California. The four Partner's 100 years of combined experience and knowledge in this industry will ensure a successful project that's on time and under budget, and only RCS principals will work with Bell Gardens. We have a history of delivering quality reports with defensible data that can be acted on and adopted.
Our process is straightforward, imposes minimal impact on staff, and provides proper information which will allow staff, City Council and other stakeholders to make the best policy decisions for the City. We strive to ensure confidence in the information and recommendations of the final Report, and as former city staff ourselves, we understand what you need and want, how a city generally operates, and that your time is precious.
RCS is not aware of any conflict of interest with the City of Bell Gardens. There are no financial, business or other relationships with the City which may have any impact.
The terms of this proposal will be honored for 90 calendar days from the date of submission.
Please contact Eric at (714) 992-9027 or [email protected] with any questions.
Sincerely,
ERIC S'JOHNSON
President
CHU THAI
Vice President
RCS Contacts
Revenue & Cost Specialists, LLC
1519 E Chapman Ave, Ste C
Fullerton, CA 92831
www.revenuecost.com
Eric Johnson
President
714-992-9027
[email protected]
Chu Thai
Vice President
714-992-9024
[email protected]
Exhibit 2
Proposal - Rent Stabilization and Tenant Eviction Protections Program Fee Study 241 Page 4
WORK PLAN/PROJECT APPROACH
All fee calculations begin with a cost allocation plan. The purpose of a cost allocation plan is to distribute costs associated with centralized agency -wide support and management services to the operating departments of the City that provide direct service to the community. RCS will utilize the City's existing Cost Allocation Plan, and if that is not available or not current, we will calculate a general overhead percentage. A general overhead percentage is less accurate yet still defensible.
Next, RCS will perform the fee study, reviewing
the staff time and program costs involved with
each service and calculating the full cost of
services for each fee. The user fees will represent
how operations are conducted in the City, and
may involve flat fees, deposits, valuation -based
fees, step -increase fees, or a combination of these.
The eventual fee recommendations included in
the final report and master fee resolution will be
defensible, easy to understand, and be supported
by City staff.
Cost Allocation
Plan
Community
Supported
(Tax Services)
Personal
Choice.
ee Services).
The most important part of our work is performed
through a series of focused meetings with staff.
Face-to-face meetings commit staff to the timeline and
ensure that our study draws from the most knowledgeable person on the subject matter. A series of meetings also gives City staff time to digest and reflect on the information generated. RCS uses only company principals with more than 20 -plus years of experience to conduct these meetings, which makes the process quicker and the results more accurate. Our process provides the City with well -documented and defensible service costs that will be used to develop fees that comply with Propositions 4, 218 and 26.
We also identify 100% of the staff time on 100% of the services they provide. This gives City staff a complete perspective on their time allocations instead of merely looking at time allocations for individual services in a vacuum. These methods will ensure that City staff feels confident about the data and, therefore, confident in supporting the results in public hearings.
RCS' process will do more than calculate the desired user fees. We take a deep dive into each and every fee, discussing its purpose, structure, legal defensibility, payment collection effectiveness, and value to the community. Based on our 40+ years of experience, we are comfortable recommending the restructuring, addition and removal of fees to make it better for the City.
Exhibit 2
Proposal - Rent Stabilization and Tenant Eviction Protections Program Fee Study 242 Page S
RCS' Comprehensive Fee Study Will Provide the Following Project Tasks - RSTEP Fee Study
RCS' Proposal will perform all scope of work items listed in the City of Bell Gardens Request for Proposal. The task descriptions below further explain the steps and timeline of RCS' fee study. The City's RFP shall prevail should there be conflicting language with RCS' proposal.
Task 1: Obtain Budget, Personnel and other Data
RCS will review and prepare necessary files for the project. This includes obtaining and reviewing prior cost allocation plans, line -item budget details, salary schedules, MOUs and fringe benefit details, ordinances, policies and procedures, and staff reports.
Task 2: Identify Services and Allocated Resources
RCS will conduct a kick-off meeting with City staff explaining the operational methodology of the study and the role of City staff. We will review any possible issues that may arise as well as answer any questions from City staff about the process.
Through a series of focused meetings, RCS will interview personnel providing end - user services to ensure that costs from all functional areas directly involved with a service are included in the cost of that service. This component will form the bulk of the time spent by staff. There will be four to five meetings with supervisory level staff to create and verify the amount of time spent by staff on the services identified in the task above. We do not ask City staff to do our job by filling out forms detailing where they spend their time.
Exhibit 2
Proposal - Rent Stabilization and Tenant Eviction Protections Program Fee Study 243 Page 6
Through the meetings with City staff, RCS will discuss all potential rent stabilization program fees and fee calculation methodologies. We will also discuss workflow with City staff, with the objective of developing processes and fees that are easily understood by everyone and best fits the City of Bell Gardens going forward.
We understand that the City of Bell Gardens is in the process of creating the RSTEP, and RCS will conduct cost analysis of all possible components and related services, including an oversight committee comprised of non -city staff.
Task 3: Calculate Full Cost of Services
RCS will develop a fully burdened hourly rate for each program employee, including salaries and benefits, miscellaneous operating service and supply costs, overhead costs, debt service, and other direct costs as identified, which can be used for all charging and costing processes.
Task 4: Draft and Final Report and Review with City Staff RCS will prepare a Draft Report that identifies the total costs for each service. RCS will review this draft report with the City's Management team for final input on the fees presented in the final report. Our reports clearly detail the fee descriptions, rate recommendations, calculation methodology, program staffing, and projected revenues and expenditures.
Based on staff input, RCS will prepare a Final Report, which include explanatory text and summary tables to easily explain the results and the context. All recommended fees will be in compliance with Propositions 4, 218, 26, and any other applicable laws.
All supporting documents will be provided to City at project completion.
Task 5: Public Meetings
RCS will participate in up to four public meetings to assist staff and the City Council in the review and adoption of proposed rent stabilization service fees.
Task 6: Sharing of Knowledge
RCS has worked with the City of Beverly Hills and currently working with the City of Santa Ana on their rent control and just cause eviction programs. We have also researched and conducted surveys of other cities in California. RCS will provide the information we collected, and will utilize this experience in best structuring the various RSTEP fees and programs. These hours are embedded in the tasks above.
Exhibit 2
Proposal - Rent Stabilization and Tenant Eviction Protections Program Fee Study 244 Page 7
6N
Based on our research and discussions about the City's Rent Stabilization and Tenant Eviction Protections (RSTEP) Program, RCS would assist City staff in the planning, development, and implementation of the program.
RCS recommends preliminarily budgeting a not to exceed 100 hours, billed for actual work, on the tasks below. If additional work is required by RCS, it will be the City's decision to extend the work agreement.
Task 1: Determining the number of rental units in the City RCS will assist the City in estimating the number of rental units with the following:
- Researching and evaluating the city's access to and quality of the land use database - Defining filters to determine all properties' RSTEP eligibility - Exporting the database and preparing it for rental registry - If necessary, researching and recommending a third -party consultant to perform the data extraction and cleanup
The City will be responsible for permitting RCS the appropriate database access necessary to successfully perform this task. The City may also need to purchase the land -use database file.
Task 2: Selection and configuration of database to manage the rental registries, client caseloads, and customer service requests
RCS will assist in the initial assessment, review and selection of a database management system for the City. We will:
- Survey other cities about their software/database systems - Summarize our findings and seek staff's direction (in-house or outside service) - If outside service, draft an RFP, identify vendors, and participate in the review. - Assist staff in the configuration of the system and design of the user interface The City will be responsible for sending out any RFP, developing any staff report with recommendations and updates to the City Council, and the cost to purchase and maintain such system.
Task 3: Assist in the development of program services, and documenting workflow
With decades of experience in costing out and administering city services, RCS can assist staff in defining and developing the RSTEP services which best services the City.
We could also create easily understood organizational chart, workflows and Gantt charts for the City, which would help its successful program implementation.
Exhibit 2
Proposal - Rent Stabilization and Tenant Eviction Protections Program Fee Study 245 Page 8
Task 4: Municipal finance and information technology assistance As former municipal finance staff, RCS would coordinate with the City's Finance Department. Finance related tasks include possible establishment of an RSTEP Fund, and developing of its budget, developing policies and procedures for online transactions, and testing any online portals.
RCS will make every effort to advise, seek input from and, in general, explain the work as it is being performed. For a project to be completed successfully, we depend on dedicated and engaged staff participation. Most of the staff participation is to attend working meetings with RCS. There will be no "homework" to be completed and returned to us.
The City should also designate a Project Manager for the fee study who will:
1) Identify key City staff and coordinate the kick-off meeting(s) 2) Assist in obtaining requested information
3) Coordinate the review of draft reports, and
4) Provide project direction if needed
I I
RCS is available to be onsite at the City for the project kick-off meeting and all working meetings occurring the same day. RCS Partner(s) will also be present at all public meetings involving the City Council.
RCS will utilize our Zoom account, or any video conferencing platform of the City's choosing, to facilitate all other working meetings. Our experience has determined that the use of video conferencing is more flexible in scheduling meetings, permitting City staff to quickly access reports and files on their computers, and allowing everyone to view and discuss the same documents at the same time.
Exhibit 2
Proposal - Rent Stabilization and Tenant Eviction Protections Program Fee Study 246 Page 9
EDUCATION
Bachelor of Arts in Political
Science - University of
Redlands
AFFILIATIONS
California Society of
Municipal Finance Officers
Government Finance Officers
Association
Eric S. Johnson
President
Mr. Johnson serves as President of Revenue & Cost Specialists with over 30 years of professional knowledge in cost recovery model and user fee studies. He focuses on providing a positive experience for RCS clients, which minimizes staff interruptions yet still produces a comprehensive, defensible study that is adopted by the governing board.
Municipal Experience
City of Redlands - Redevelopment Intern (1987-1989)
Relevant Project Experience
City of Long Beach - Comprehensive Fee Study: Mr. Johnson is performing a three-year comprehensive update of Long Beach's fees starting in 2019. The first phase of the project was approved by the City Council in 2021.
City of Santa Clarita - Cost recovery model and
Comprehensive Fee Study: Mr. Johnson developed a Cost
Allocation Plan and Comprehensive Fee Study for the City most recently in 2017 and also annually updates the Cost Allocation Plan. RCS has been providing these services for the City since 1995.
City of Lancaster - Cost recovery model and
Comprehensive Fee Study: Mr. Johnson developed a Cost
Allocation Plan and Comprehensive Fee Study for the City most recently in 2019 and also annually updates the Cost Allocation Plan. RCS has been providing these services for the City since 2006.
City of El Segundo - Cost recovery model and
Comprehensive Fee Study: Mr. Johnson developed a Cost
Allocation Plan and Comprehensive Fee Study for the City most recently in 2018 and also annually updates the Cost Allocation Plan. RCS has been providing these services for the City since 2008.
Exhibit 2
Proposal - Rent Stabilization and Tenant Eviction Protections Program Fee Study 251 Page 14
EDUCATION
Claremont Graduate
University - Completed
coursework towards
Masters in Public Policy
Cal State Northridge - MA
Public Administration
Cal Poly, Pomona - BS in
Urban and Regional
Planning
AFFILIATIONS
California Society of
Municipal Finance
Officers (CSMFO - Board
Member)
Government Finance
Officers Association
(GFOA)
International
City/County Management
Association (ICMA)
(Cal-ICMA)
Municipal Information
Systems Association of
California (MISAC)
Chu Thai
Vice -President
Mr. Thai provides multiple aspects to the implementation of user fees, impact fees and utility rates. His experience as a municipal finance officer helps clients reach their goal of fee adoption. Chu keeps current of all legal policies which impact the noticing, calculation and reporting of fees.
Municipal Experience
Impact Fees: Cities of Morgan Hi11 and Monterey Park
Utility Rates: Cities of Morgan Hill, Beverly Hills, South Pasadena and Monterey Park
User Fees: Cities of Claremont, Morgan Hill, Beverly Hills, South Pasadena and Monterey Park
Director of Management Services, City of Monterey Park, CA
• Managed department of 15 to provide financial
planning and reporting, revenue collections, treasury,
information technology, telecommunication and
support services
• Improved city's revenues through updated user fees,
utility rates, and impact fees
• Conducted long-term financial forecasting and analysis • Streamlined and enforced purchasing process
Administrative Services Director, City of Stanton, CA
• Managed department providing general accounting,
accounts payable, purchasing, payroll, business tax,
treasury, IT and communication services
• Updated the City's Investment Policy and strategy
• Developed long-term revenue strategy
• Performed communications audit and reduced
expenses by 75%
Finance Director, City of South Pasadena, CA
• Outsourced utility billing and customer service
• Completed $43.4 Million Water Bond Issuance and $12
Million Refunding
• Coordinated the passage of Utility Users Tax Ballot
Measure
• Negotiated lease agreements for city property and cell towers
Exhibit 2
Proposal - Rent Stabilization and Tenant Eviction Protections Program Fee Study 252 Page 15
C ai
Vice -President
unicipal Experience (continued)
Budget and Management Officer, City of Beverly Hills, CA • Managed $400 million citywide budget for 750 full-
time employees
• Developed comprehensive capital improvement
program
• Developed quarterly performance report presented to
the City Council
• Implemented performance -based budget, including
goals and objectives
• Updated the city's user fees and utility rates
Budget Manager, City of Morgan Hill, CA
• Managed utility billing, purchasing, business license and accounts receivable functions
• Coordinated IT overhaul, including finance, utility
billing and recreation software conversions,
standardization, training, disaster recovery and
outsourcing.
• Developed pro-formas for proposed aquatics and
community centers
• Updated the city's impact fees, user fees and utility rates
Senior Management Analyst, City of Tustin, CA
• Coordinated the City's $80 million operating and CIP
budget with all departments
• Managed finance software upgrade, focusing on
departmental reports
• Deployed online payment system for utility customers
Management Analyst, City of Claremont, CA
• Assisted in the development of effective parks and
recreation programs
• Assisted in the construction and programming of the
Claremont Youth Activity Center, Claremont Skate
Park and Hughes Community Center
• Coordinated budget and evaluated cost recovery for
the department
Exhibit 2
Proposal - Rent Stabilization and Tenant Eviction Protections Program Fee Study 253 Page 16
QUALIFICATIONS, PRIOR EXPERIENCE AND REFERENCES
REFERENCES
Jurisdiction
Contact
Title
RCS calculated various rent stabilization program fees for the City. We reviewed and validated staff times in each service and determined the best structure for each fee.
City of Long Beach Emily Armstrong Assistant to the City Manager (562) 570-6406 ernily.armstrongPlongbeach.gov
RCS assisted the City of Long Beach in restructuring and recalculating all its fees, including the Cannabis program fees. The updated fees better reflect the cost of services provided, and uses more accurate participation numbers.
RCS completed a Cost Allocation Plan and Comprehensive Fee Study for the City in 2018.
The City Council adopted changes to its fee schedule, including Building fees. RCS is currently contracted to evaluate their Aquatics program and revenue collections procedures.
City of Santa Clarita Carmen Magana Admin Services Director (661) 255-4997 cmagana(asanta-clarita.com
RCS developed a Cost Allocation Plan and Comprehensive Fee Study for the City most recently in 2014 and also annually updates the Cost Allocation Plan. RCS has been providing these services for the City since 1995.
RCS was selected in 2019 to update the City's Comprehensive User Fee Schedule. In 2022, RCS was selected to update the City's Cost Allocation Plan, and provide annual user fee/cost allocation plan updates for the next 3-5 years
Exhibit 2
Proposal - Rent Stabilization and Tenant Eviction Protections Program Fee Study 254
USER FEE STUDY/COST
ALLOCATION PLAN
Carpentaria-Summerland Fire
District
Chino Valley Independent Fire
District
City of Alhambra
City of Antioch
City of Arcadia
City of Atascadero
City of Azusa
City of Banning
City of Barstow
City of Bend, OR
City of Beverly Hills
City of Big Bear Lake
City of Brea
City of Buena Park
City of Carlsbad
City of Carmel -by -the -Sea
City of Carpentaria
City of Carson
City of Ceres
City of Chino
City of Claremont
City of Coachella
City of Concord
City of Corona
City of Cotati
City of Cudahy
City of Desert Hot Springs
City of Diamond Bar
City of Dinuba
City of Dublin, Ohio
City of El Cajon
City of El Segundo
City of Elk Grove
City of Eureka
City of Folsom
City of Fontana
City of Foster City
City of Fountain Valley
City of Fullerton
City of Glendale
City of Glendora
City of Goodyear, Arizona
City of Hemet
City of Hermosa Beach
City of Hesperia
City of Highland
City of Huntington Beach
City of Kennewick, WA
City of La Canada-Flintridge
City of La Habra Heights
City of La Mirada
USER FEE STUDY/COST
ALLOCATION PLAN (continued
City of La Palma
City of La Puente
City of Lake Elsinore
City of Lake Forest
City of Lakewood
City of Lancaster
City of Lathrop
City of Lawndale
City of Lemoore
City of Lincoln
City of Lindsay
City of Loma Linda
City of Long Beach
City of Los Altos
City of Lynwood
City of Mammoth Lakes
City of Manhattan Beach
City of Marina
City of Menifee
City of Merced
City of Milpitas
City of Monrovia
City of Monterey
City of Moreno Valley
City of Morgan Hill
City of Morro Bay
City of Needles
City of Norwalk
City of Oakdale
City of Oceanside
City of Ontario
City of Oroville
City of Oxnard
City of Palm Desert
City of Palm Springs
City of Palmdale
City of Pasadena
City of Peoria, AZ
City of Pico Rivera
City of Pismo Beach
City of Pittsburg
City of Pomona
City of Port Hueneme
City of Porterville
City of Rancho Cucamonga
City of Rancho Palos Verdes
City of Red Bluff
City of Redlands
City of Rialto
City of Richmond
City of Ridgecrest
City of Riverside
City of Rocklin
USER FEE STUDY/COST
ALLOCATION PLAN (continued`
City of Salinas
City of San Clemente
City of San Gabriel
City of San Juan Capistrano
City of San Marino
City of San Rafael
City of Sanger
City of Santa Clarita
City of Santa Monica
City of Santa Paula
City of Scotts Valley
City of Seal Beach
City of Seaside
City of Selma
City of Shafter
City of Sierra Madre
City of Simi Valley
City of Solana Beach
City of South Gate
City of South Lake Tahoe
City of South Pasadena
City of Springville, UT
City of Stockton
City of Suisun City
City of Taft
City of Thousand Oaks
City of Tracy
City of Tulare
City of Turlock
City of Upland
City of Villa Park
City of Vista
City of West Covina
City of West Jordan, UT
City of Westminster
City of Yuba City
City or Rancho Mirage
Coachella Valley Assoc of Gov't
Contra Costa County
County of Cobb, GA
County of Contra Costa
County of San Bernardino
County of Tulare
Imperial County
Oceanside Harbor District
Orange County Fire Authority
Orange County Vector Control
District
Placer County Water Agency
Riverside County Transport.
Comm.
San Bernardino Assoc. Gov't
South Jordan City, UT
Exhibit 2
Proposal - Rent Stabilization and Tenant Eviction Protections Program Fee Study 255 Page 18
USER FEE STUDY/COST
ALLOCATION PLAN (continued`
Town of Apple Valley
Town of Los Gatos
Town of Mammoth Lakes
Town of Truckee
Ventura County Fire District
IMPACT FEE STUDY
Antelope Valley Fire District
Apple Valley Fire District
Barstow Fire District
Bridgeport Fire District
Brigham City Corporation, UT
Carpentaria-Summerland Fire
District
Chalfant Public Services (Fire)
Protection District
City of Alhambra
City of Anaheim
City of Atascadero
City of Baldwin Park
City of Barstow
City of Big Bear Lake
City of Calimesa
City of Chino
City of Coachella
City of Colton
City of Corona
City of Desert Hot Springs
City of Folsom
City of Gilroy
City of Glendale
City of Gonzales
City of Grand Terrace
City of Greenfield
City of Hemet
City of Highland
City of Huntington Beach
City of Jurupa Valley
City of King City
City of Laguna Hills
City of Lemoore
City of Loma Linda
City of Menifee
City of Monterey Park
City of Morgan Hill
City of Murrieta
City of Needles
City of Newport Beach
City of North Ogden, UT
City of Oceanside
City of Ontario
City of Orange
City of Oroville
City of Paso Robles
City of Petaluma
City of Pismo Beach
IMPACT FEE STUDY continued;
City of Rancho Cordova
City of Reedley
City of Rialto
City of Riverside
City of San Bernardino
City of Santa Paula
City of Scotts Valley
City of Sedona, AZ
City of Selma
City of Sierra Madre
City of Thousand Oaks
City of Tracy
City of Tulare
City of Wheatland
City of Whittier
County of Monterey Sheriff's
Department
County of San Bernardino
Feather River Recreation and
Park District
June Lake Fire District
Lake Havasu City, AZ
Long Valley Fire District
North Central Fire District
SANBAG
South Jordan City, UT
South Ogden City, UT
Town of Apple Valley
Town of Mammoth Lakes
Town of Paradise
Town of Truckee
Washington Terrace City, UT
West Jordan City, UT
Wheeler Crest Fire District
MISCELLANEOUS PROJECTS
Brigham City Corporation, UT -
Closed Indian School Use
Conversion
City of Azusa - Plan
Check/Inspection Process
Review
City of Beverly Hills - Rent
Stabilization Fee
City of Colton - Electric Utilities
Collection Procedural Manual
City of Corona - Communications
Repeater Cost Financing
City of Corona - interstate 15
Area Public Safety Facility
Financing
City of Fontana - General &
Departmental Overhead Plan
City of Garden Grove - internal
Service Fund Balance Study
City of Hemet - Supplemental DIF,
Public Peril Report
MISCELLANEOUS PROJECTS
continued;
City of Los Altos - Existing DIF
Review
City of Milpitas - Business License
Ordinance Review
City of Needles - Development
Agreement Assistance
City of Pico Rivera - Business
License Ordinance Review
City of Port Hueneme - Revenue
Search Report
City of Redlands - Street
Sweeping Rate Study
City of San Bernardino -
Verdemont Area Financing
Analysis
City of San Clemente - Business
License Review
City of Santa Paula - General Plan
Element
City of Seaside - Hayes Housing
Development Service Demands
City of South Lake Tahoe -
Transfer of Custody Cost
Verification
City of Westminster -
Productivity Measurement
Module
Lake Havasu City, AZ - Capital
Financing Plan
Los Angeles Fire/Police
Retirement System - Fiscal
Review
San Bernardino County - Special
District Office Finance Review
South Jordan City, UT - Business
Regulation Costing
Town of Windsor - Long Range
Capital Financing Plan
Exhibit 2
Proposal - Rent Stabilization and Tenant Eviction Protections Program Fee Study 256 Page 19
COST PRICING
RCS is pleased to provide Bell Gardens with the following project costs and milestones/deliverables, with a NOT TO EXCEED AMOUNT OF $41,200 for the Fee Study.
This total includes $21,700 to develop the appropriate fees for Rent Stabilization and Tenant Eviction Protection services, and up to $19,500 for additional consulting services which could help the City successfully implement RSTEP.
Fee Stud Tasks
Obtain Budget & Personnel Data
Identify Services & Allocated Resrouces
Calculate Full Cost of Services
Draft Report
Final Report
Council Meeting & Public Hearing
Milestones Deliverables
Summary Schedules
Time Detail Reports
Fully Alloc. Hourly Rate Reports
Draft Fee Study Report
Final Report
Public Meetings
Hours
8 40
8 40
16 12
124
Determine an accurate number of units
Selection of a database/application
Assist in program development
Municipal finance and IT assistance
a3
TOTAL NOT TO EXCEED
224
Total Cost
1,400
7,000
1,400
7,000
2,800
2,100
$21,700
$41,200
The above fee study proposal is based on a cost of $175 per hour. The billing rate the additional assistance with the RSTEP Planning, Development and Implementation is $195 per hour. Any additional work not covered by this proposal would be billed at $195 per hour.
Our proposal covers all costs except for the following additional costs that the City may incur:
• Meeting attendance beyond those identified in this proposal. • Printing of reports beyond those stated in the RFP.
RCS will submit monthly invoices plus any miscellaneous costs from the previous paragraph.
The first invoice will be submitted ten days after notice to proceed, and each invoice will be due within 30 days of submission.
Exhibit 2
Proposal - Rent Stabilization and Tenant Eviction Protections Program Fee Study 257 Page 20
The City's Professional Services Agreement language regarding Indemnification is overly onerous and puts all of the risk on RCS. While we have no issue being responsible for our actions, we can't be responsible for unsubstantiated claims. Therefore, we suggest the following indemnification language:
"Consultant shall indemnify the City, its elected officials, officers and employees from any demands, judgements, and all liability including, but not limited to, monetary or property damage, lost profit, personal injury, wrongful death, general liability, infringement of copyright/patent/trademark, professional errors and omissions, investigative expenses, attorney fees, and court costs arising out of an error, a negligent act, or omission of the Consultant, or the willful misconduct of the Consultant in performing the services described in, or normally associated with, this type of contracted work." RCS does not have any pending litigation.
RCS will provide the City of Bell Gardens with proof of insurance, shortly after we are selected for the project by City staff.
Exhibit 2
Proposal - Rent Stabilization and Tenant Eviction Protections Program Fee Study 258 Page 21
CITY OF BELL GARDENS
OFFICE OF THE CITY MANAGER
AGENDA REPORT
Item 14.
TO:
FROM:
BY:
Honorable Mayor and City Council Members
Michael B. O'Kelly, City Manager
Scott Fairfield, Chief of Police
Ruben Musquiz, Captain
SUBJECT: APPROVAL TO ENTER INTO A CONTRACT WITH BLACK & WHITE EMERGENCY VEHICLES INC.
DATE: April 10, 2023
RECOMMENDATION:
It is staff's recommendation that the City Council:
1. Approve an agreement with Black and White Emergency Vehicles, Inc. for the purchase and installation of emergency and communications equipment for the three previously purchased Ford Police Interceptor Utility vehicles that were approved by City Council on February 27, 2023 (Resolution 2023-11); and
2. Adopt a resolution authorizing the City Manager to execute an agreement with Black and White Emergency Vehicles, Inc.
BACKGROUND/DISCUSSION:
On February 27, 2023, the City Council approved the purchase of three new 2023 Ford Explorer Police Interceptor Utility vehicles for the Police Department's Patrol Division (Resolution No. 2023-11). As previously mentioned in that agenda report, the purchase did not include required emergency and communications equipment to include the radio, emergency lights, siren, light controls, window barriers, weapon rack/lock, cargo equipment, Mobile Digital Computer, in -car video system, and miscellaneous components.
Installation of these various components requires technically skilled service personnel given the complexity of the work. These installations require vendors to route numerous pieces of equipment to power sources, while maintaining the original vehicle structure and protecting the factory electrical equipment that is under warranty by the manufacturer. Additionally, these installations have become so complex that limited numbers of companies now specialize in this service. Vehicles can no longer be taken to local electronic shops/facilities for installation of these items. I n fact, many of the equipment items to be installed require that the installation facility receive specialized training and obtain certification as an authorized installer from the vehicle manufacturer. In addition to the emergency equipment, these three vehicles will need a Mobile Data Computer (MDC) and radio system and networking equipment as well as video camera equipment.
Pursuant to Bell Gardens Municipal Code Section ("BGMC") 3.04.100(A), the City's formal purchasing procedures may be dispensed when the City Council (for purchases of more than $10,000) finds that such supplies or equipment are unique because of their quality, durability, availability, or fitness for a particular use and are available only from one source, or, if available from more than one source, bidding is not likely to result in the lowest price.
Black & White Emergency Vehicles, Inc. is the only known installation service company that can provide all the 259
necessary emergency and electronics equipment. Additionally, they are an authorized installer that meets the Ford and Chevrolet manufacturer's warranty specifications for these types of installations. Lastly, utilization of this company is much more efficient for the City given that obtaining services from individual companies, would likely result in a higher cost.
Furthermore, by utilizing Black & White the Police Department will avoid the extended completion dates from other unknown installers and the formal purchasing procedures, which is critical since the Department's vehicle fleet has a shortage of patrol vehicles. The shortage has resulted in the loss of five police vehicles that were involved in traffic accidents and our police officers driving the current police vehicles 24/7. Additionally, some of these vehicles are also removed from the Department's vehicle fleet for repairs and regular maintenance, which affects the day-to-day operations of the Patrol Division.
Hence, using Black and White will expedite the outfitting process of these three police vehicles so that they can be added to the vehicle fleet as soon as possible.
CONCLUSION:
The Police Department requests approval to enter into contract with Black and White Emergency Vehicles, Inc. for the purchase and installation of the listed emergency and communications equipment for the three new 2023 Ford Explorer Police Interceptor Utility police vehicles previously purchased through Folsom Lake Ford.
FISCAL IMPACT:
The funding for the outfitting of these three vehicles was included in the current fiscal year 2022/2023 mid -year so no additional appropriations are necessary.
ATTACHMENTS:
Exhibit 1 - Resolution No. 2023-26
Exhibit 2 - Black and White agreement
APPROVED ELECTRONICALLY BY:
Michael B. O'Kelly, City Manager
Stephanie Vasquez, City Attorney and/or Susie Altamirano, Assistant Attorney Manuel Carrillo, Director of Finance and Administrative Services 260
RESOLUTION NO. 2023-26
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELL
GARDENS, CALIFORNIA, APPROVING A CONTRACT WITH BLACK
AND WHITE EMERGENCY VEHICLES, INC. FOR THE PURCHASE
AND INSTALLATION OF EMERGENCY AND COMMUNICATIONS
EQUIPMENT FOR THE THREE PREVIOUSLY PURCHASED FORD
POLICE INTERCEPTOR UTILITY VEHICLES TO BE USED BY THE
POLICE DEPARTMENT
WHEREAS, the Bell Gardens Police Department utilizes marked black and white vehicles for the Police Department to perform patrol operations throughout the City of Bell Gardens; and
WHEREAS, the City Council approved the purchase of three new Ford Police Interceptor Utility vehicles in Resolution No. 2023-11; and WHEREAS, the vehicles require outfitting of emergency, communications, networking equipment, cameras, and graphics; and
WHEREAS, pursuant to Bell Gardens Municipal Code Section ("BGMC")
3.04.100(A), the City's formal purchasing procedures may be dispensed when the City Council (for purchases of more than $10,000) finds that such supplies or equipment are unique because of their quality, durability, availability, or fitness for a particular use and are available only from one source, or, if available from more than one source, bidding is not likely to result in the lowest price; and
WHEREAS, Black & White Emergency Vehicles, Inc. is the only known installation service company that can provide all the necessary emergency and electronics equipment. Additionally, they are an authorized installer that meets the Ford and Chevrolet manufacturer's warranty specifications for these types of installations.
Lastly, utilization of this company is much more efficient for the City given that obtaining services from individual companies, would likely result in a higher cost; and WHEREAS, after careful analysis, staff selected Black and White Emergency Vehicles, Inc. for the purchase and installation of the emergency and communications equipment.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Bell Gardens as follows:
SECTION 1. The City Council, after consideration of the staff report and presentation, discussion, oral testimony and evidence presented to the City Council, hereby finds that the above recitals are true and correct and incorporate them herein.
SECTION 2. The City Council approves a Contract with Black and White Exhibit 1 261
Resolution No. 2023-26
Emergency Vehicles, Inc. for the purchase and installation of emergency and communications equipment and authorizes and directs the City Manager to execute the Agreement attached to the Staff Report as Exhibit 2.
SECTION 3. The City Council further authorizes and directs the City Manager and staff to take all actions necessary and appropriate to implement and effectuate the intent of the City Council as set forth in this Resolution.
SECTION 4. The City Clerk shall attest and certify to the passage and adoption of this Resolution and enter it into the book of original resolutions, and it shall become effective immediately upon approval.
PASSED, APPROVED and ADOPTED this 10th day of April, 2023.
THE CITY OF BELL GARDENS
Alejandra Cortez, Mayor
APPROVED AS TO FORM: ATTEST:
Stephanie Vasquez
City Attorney
Daisy Gomez
City Clerk
2 of 2
Exhibit 1 262
2023
CONTRACT SERVICES AGREEMENT
(Contractor: Black & White Emergency Vehicles)
(Nature of Engagement: Installation of Emergency & Electronics Equipment for Three New Police Vehicles)
THIS CONTRACT SERVICES AGREEMENT (hereinafter, "Agreement") is made and entered into this 10th day of April, 2023 by and between the CITY OF BELL GARDENS, a municipal corporation (hereinafter, "CITY") and BLACK AND WHITE EMERGENCY VEHICLES (hereinafter, "CONTRACTOR"). For the purposes of this Agreement, CITY and CONTRACTOR may be referred to collectively by the capitalized term "Parties." The capitalized term "Party" may refer to CITY or CONTRACTOR interchangeably.
RECITALS
WHEREAS, CITY is a municipal corporation organized under the laws of the State of California, with power to contract for services necessary to achieve its purpose; and WHEREAS, CITY requires the installation of emergency and communications equipment which will include the radio, emergency lights, siren, light controls, window barriers, weapon rack/lock, cargo equipment, Mobile Digital Computer, in -car video system and miscellaneous components; and
WHEREAS, CITY staff has determined that CONTRACTOR possess the skills, experience and expertise required to competently provide the services and tasks contemplated under this Agreement.
NOW, THEREFORE, for and in consideration of the mutual covenants and conditions herein contained, CITY and CONTRACTOR agree as follows:
Section 1. Description of the Work.
A. Subject to the terms and conditions of this Agreement, CONTRACTOR agrees to provide CITY with installation of emergency and communications equipment which will include the radio, emergency lights, siren, light controls, window barriers, weapon rack/lock, cargo equipment, Mobile Digital Computer, in -car video system and miscellaneous components. The various tasks and related services to be performed by CONTRACTOR are more specifically described in the CONTRACTOR's Quotes entitled "Black & White Quote Estimate #2153 Two 2023 Patrol Build" and "Black & White Quote Estimate #2154 One 2023 Patrol Build Slicktop" (collectively referred to as the "CONTRACTOR QUOTE") dated March 27, 2023, which are attached and incorporated hereto as Exhibit "A". The capitalized term "Work" shall be a collective reference to all the various services and tasks referenced in the Scope of Work. In the event of any conflict or inconsistency between the provisions of the Scope of Work and the provisions of this Agreement to which the Scope of Work is attached, the provisions of this Agreement shall govern and control.
Exhibit 2 2b3
CONTRACTOR shall provide all labor, materials, tools, supplies, equipment, services, tasks and incidental and customary work necessary to competently perform and timely complete the Work. CONTRACTOR shall perform the Work in accordance with the terms and conditions of this Agreement and in accordance with such other written or verbal directives as may be issued by CITY.
C. By executing this Agreement, CONTRACTOR warrants that CONTRACTOR: (i) has thoroughly investigated and considered the nature of the work, services and tasks to be performed under this Agreement; (ii) has carefully considered how the Work should be performed; and (iii) fully understands the facilities, difficulties, and restrictions attending performance of the services under this Agreement.
CONTRACTOR warrants that CONTRACTOR has or will investigate any location where the Work is to be performed and is or will be fully acquainted with the conditions there existing, prior to undertaking any service or task requested by CITY in the manner described under this Section. Should the CONTRACTOR discover any latent or unknown conditions which will materially affect the performance of the services hereunder, CONTRACTOR shall immediately inform the CITY of such fact and shall not proceed, except at CONTRACTOR's risk until written instructions are received from the City Representative as defined herein.
D. In the event CONTRACTOR ceases to perform the Work agreed to under this Agreement or otherwise abandons any undertaking contemplated herein prior to completion and acceptance of the Work, CONTRACTOR shall deliver to CITY immediately and without delay, all materials, records and other work product prepared or obtained by CONTRACTOR in the performance of this Agreement.
Furthermore, CONTRACTOR shall only be compensated for the reasonable value of the services, tasks and other work performed up to the time of cessation or abandonment, less a deduction for any damages, costs or additional expenses which CITY may incur as a result of CONTRACTOR's cessation or abandonment.
Section 2. Prosecution of Work.
A. Time is of the essence for this Agreement and each and every provision contained herein. The Work shall be commenced within three (3) calendar days of CITY's issuance of a written notice to proceed ("Notice to Proceed"). The Work shall be completed within four (4) weeks from the CITY's issuance of the Notice to Proceed (hereinafter, the "Completion Date").
B. CONTRACTOR shall perform the Work continuously and with due diligence so as to complete the Work by the Completion Date. CONTRACTOR shall cooperate with CITY and in no manner interfere with the Work of CITY, its employees or other consultants, contractors or agents.
C. CONTRACTOR may submit a written request for additional time to complete the Work, which request must be submitted to the CITY no later than fifteen (15) calendar days prior to the Completion Date or any extended Completion Date granted by CITY. The written request for additional time must identify (i) what specific tasks or services remain to be completed by CONTRACTOR in order to complete the Work; (ii) how much additional time CONTRACTOR requires; (iii) identification of the circumstances that have caused the need for additional time, Exhibit 2 964
according to CONTRACTOR, including, if applicable, identification of any tasks that must be completed by CITY as prerequisite to CONTRACTOR being able to complete any other service or task; and (iv) what proactive steps CONTRACTOR has taken up to the date of the request to mitigate the need for additional time, including, if applicable, any effort on the part of CONTRACTOR to alert CITY of the need to provide information or complete certain tasks to be performed by CITY.
CITY in its sole and absolute discretion may grant, deny or conditionally grant a request for additional time, provided that no individual grant of additional time may exceed a maximum of fifteen (15) calendar days.
CONTRACTOR shall not claim or be entitled to receive any compensation or damage because of the failure of CONTRACTOR, or its subconsultants, to have related services or tasks completed in a timely manner.
E. CONTRACTOR shall at all times enforce strict discipline and good order among CONTRACTOR's employees.
F. CONTRACTOR, at its sole expense, shall pay all sales, consumer, use or other similar taxes required by law.
Section 3. [Reserved - No Text]
Section 4. Compensation.
A. CONTRACTOR shall perform all the Work in accordance with the rates set forth in the CONTRACTOR QUOTE. CONTRACTOR's total compensation during the Term of this Agreement shall not exceed the aggregate sum of SIXTY-FIVE
THOUSAND EIGHT HUNDRED THREE DOLLARS AND TWENTY-SEVEN
CENTS ($65,803.27) (hereinafter, the "Aggregate Not -to -Exceed Sum").
CONTRACTOR further agrees that the Aggregate Not -to -Exceed Sum is inclusive of compensation for all labor, materials, tools, supplies, equipment, services, tasks and incidental and customary work necessary to competently perform and timely complete the Work. CONTRACTOR shall have no right or entitlement to any overage contingency sums authorized by the City Council as part of the approval of this Agreement, unless the City Representative authorizes the expenditure of such overage contingency funds in writing in the City Representative's sole and absolute discretion.
B. Following the conclusion of Work requested pursuant to Section 1, above, CONTRACTOR shall submit to CITY an itemized invoice indicating the services and tasks performed. If the amount of CONTRACTOR's compensation includes hours worked by CONTRACTOR's personnel, the invoice shall indicate the number of hours worked in connection with the specific service or task requested, the persons responsible for performing the Work, the rate of compensation at which such services and tasks were performed, the subtotal for each task and service performed and a grand total for all services performed. Within thirty (30) calendar days of receipt of each invoice, CITY shall notify CONTRACTOR in writing of any disputed amounts included in the invoice. Within forty-five (45) calendar days of receipt of each invoice, CITY shall pay all undisputed amounts included on the invoice. CITY shall not withhold applicable taxes or other Exhibit 2 2%5
authorized deductions from payments made to CONTRACTOR.
Section 5. Standard of Care. CONTRACTOR represents, acknowledges and agrees as follows:
A. CONTRACTOR shall perform all work skillfully, competently and to the highest standards applicable to the CONTRACTOR's field;
B. CONTRACTOR represents and maintains that it is skilled in the professional calling necessary to perform the Work;
C. CONTRACTOR shall perform all work in a manner reasonably satisfactory to the CITY;
D. CONTRACTOR shall comply with all applicable federal, state and local laws and regulations, including the conflict of interest provisions of Government Code Section 1090 and the Political Reform Act (Government Code Section 81000 et seq.). CONTRACTOR's compliance with applicable laws will include, without limitation, compliance with all applicable Cal/OSHA requirements and applicable regulations of the Federal Department of Housing and Urbanization; E. CONTRACTOR understands the nature and scope of the Work to be performed under this Agreement as well as any and all schedules of performance; F. All of CONTRACTOR's employees and agents (including but not limited to CONTRACTOR's subcontractors and subconsultants) possess sufficient skill, knowledge, training and experience to perform those services and tasks contemplated under this Agreement;
G. All of CONTRACTOR's employees and agents (including but not limited to CONTRACTOR's subcontractors and subconsultants) possess all licenses, permits, certificates, qualifications and approvals of whatever nature that are legally required to perform the tasks and services contemplated under this Agreement and all such licenses, permits, certificates, qualifications and approvals shall be maintained throughout the term of this Agreement; and H. CONTRACTOR shall at all times employ such force, plant, materials, and tools as will be sufficient in the opinion of the CITY to perform the Services within the time limits established, and as provided herein. It is understood and agreed that said tools, equipment, apparatus, facilities, labor, and material shall be furnished and said Services performed and completed as required by the Agreement, and subject to the approval of the CITY's authorized representative. The quality of Services shall meet or exceed those standards established by the CITY or the City or County of jurisdiction.
The Parties acknowledge and agree that CONTRACTOR shall perform, at CONTRACTOR's own cost and expense and without any reimbursement from CITY, any services or tasks necessary to correct any errors or omissions caused by CONTRACTOR's failure to comply with the standard of care set forth under this Section or by any like failure on the part of CONTRACTOR's employees, agents, contractors, Exhibit 2
2t6
subcontractors and subconsultants. Such effort by CONTRACTOR to correct any errors or omissions shall be commenced immediately upon their discovery by either Party and shall be completed within seven (7) calendars days from the date of discovery or such other extended period of time authorized by the City Representative in writing and absolute discretion. The Parties acknowledge and agree that CONTRACTOR's acceptance of any work performed by CONTRACTOR or on CONTRACTOR's behalf shall not constitute a release of any deficiency or delay in performance. The Parties further acknowledge, understand and agree that CONTRACTOR has relied upon the foregoing representations of CONTRACTOR, including but not limited to the representation that CONTRACTOR possesses the skills, training, knowledge and experience necessary to perform the Work in a skillful and competent manner equivalent to, the standard of performance generally recognized as being employed by professionals performing the same type of work and services in the State of California.
Section 6. Representatives.
A. City Representative. For the purposes of this Agreement, the contract administrator and CITY's representative shall be Captain Ruben Musquiz (hereinafter, the "City Representative"). It shall be CONTRACTOR's responsibility to assure that the City Representative is kept informed of the progress of the performance of the services, and CONTRACTOR shall refer any decisions which must be made by CITY to the City Representative. Unless otherwise specified herein, any approval of CITY required hereunder shall mean the approval of the City Representative.
B. Contractor Representative. For the purposes of this Agreement, John Patino, is hereby designated as the principal and representative of CONTRACTOR authorized to act on its behalf with respect to CONTRACTOR's performance under this Agreement and to make all decisions in connection therewith (the "Contractor Representative"). Notice to the Contractor Representative whether written or verbal shall constitute notice to CONTRACTOR. The Contractor's Representative shall supervise and direct the Services, using her best skill and attention, and shall be responsible for all means, methods, techniques, sequences, and procedures and for the satisfactory coordination of all portions of the Services under this Agreement.
Section 7. Contractor's Personnel
A. CONTRACTOR represents that it has, or will secure at its own expense, all personnel required to perform the Work and all other services and tasks necessary for CONTRACTOR to competently and timely complete the improvements contemplated under this Agreement. All work, services and tasks will be performed under CONTRACTOR's supervision, and CONTRACTOR's personnel engaged in the performance of the work, services and tasks contemplated under this Agreement shall possess the qualifications, permits and licenses required by applicable law to perform such work, services and tasks.
B. CONTRACTOR shall obtain at its sole cost and expense such licenses, permits, and approvals as may be required by law for the performance of the Work.
CONTRACTOR shall have the sole obligation to pay for any fees, assessments Exhibit 2
2%7
and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for the CONTRACTOR's performance of the Work, and shall indemnify, defend and hold harmless CITY against any such fees, assessments, taxes, penalties, or interest levied, assessed, or imposed against CITY hereunder.
C. CONTRACTOR shall be solely responsible for the satisfactory work performance of all personnel engaged in performing the Work.
D. In the event that CITY, in its sole reasonable discretion, at any time during the term of this Agreement, desires the removal of any person or persons assigned by CONTRACTOR to perform services pursuant to this Agreement, CONTRACTOR shall remove any such person immediately upon receiving notice from CITY of the desire of CITY for the removal of such person or persons.
E. CONTRACTOR shall be responsible for payment of all employees' and subconsultants' wages and benefits and shall comply with all requirements pertaining to employer's liability, workers' compensation, unemployment insurance, and Social Security.
F CONTRACTOR shall obtain and maintain during the Agreement term all necessary licenses, permits and certificates required by law for the performance of the Work contemplated under this Agreement.
Section 8. Substitution of Key Personnel. CONTRACTOR has represented to CITY that certain key personnel will perform and coordinate the Services under this Agreement.
Should one or more of such personnel become unavailable, CONTRACTOR may substitute other personnel of at least equal competence upon written approval of CITY.
In the event that CITY and CONTRACTOR cannot agree as to the substitution of key personnel, CITY shall be entitled to terminate this Agreement for cause. As discussed below, any personnel who fail or refuse to perform the Services in a manner acceptable to the CITY, or who are determined by the CITY to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property, shall be promptly removed from the Project by the CONTRACTOR at the request of the CITY.
Section 9. [Reserved - No Text]
Section 10. Prevailing Wages and General Labor Compliance and Reporting.
A. CONTRACTOR and any subcontractor performing or contracting any portion of the Work shall comply with all applicable provisions of the California Labor Code for all workers, laborers and mechanics of all crafts, classifications or types, including, but necessarily limited to the following:
1. In accordance with California Labor Code Section 1810, eight (8) hours of labor in performance of the Work shall constitute a legal day's work under this Contract. CONTRACTOR and any subcontractor shall pay workers overtime pay (not less than 1 1/2 times the base rate of pay) as required by California Labor Code Section 1815. CONTRACTOR and any subcontractor shall, as a Exhibit 2
A8
penalty to the CITY, forfeit twenty-five dollars ($25) for each worker employed in the execution of the contract by the respective contractor or subcontractor for each calendar day during which the worker is required or permitted to work more than 8 hours in any one calendar day and 40 hours in any one calendar week in violation to the provisions of Article 3 of Chapter 1 of Part 7, Division 2 of the California Labor Code, which is incorporated by this reference as though fully set forth herein.
2. Pursuant to the provisions of California Labor Code, Sections 1770 et. seq., CONTRACTOR and any subcontractor under CONTRACTOR shall pay not less than the prevailing rate of per diem wages as determined by the Director of the California Department of Industrial Relations. Pursuant to the provisions of California Labor Code Section 1773.2, CONTRACTOR is hereby advised that copies of the prevailing rate of per diem wages and a general prevailing rate for holidays, Saturdays and Sundays and overtime work in the locality in which the work is to be performed for each craft, classification, or type of worker required to execute the Contract, are on file in the office of the District Secretary, which copies shall be made available to any interested party on request. CONTRACTOR shall post a copy of said prevailing rate of per diem wages at each job site.
B. As required by Section 1773.1 of the California Labor Code, CONTRACTOR shall pay travel and subsistence payments to each worker needed to execute the work, as such travel and subsistence payments are defined in the applicable collective bargaining agreements filed in accordance with this Section.
C. To establish such travel and subsistence payments, the representative of any craft, classification, or type of workman needed to execute the contracts shall file with the Department of Industrial Relations fully executed copies of collective bargaining agreements for the particular craft, classification or type of work involved. Such agreements shall be filed within ten (10) days after their execution and thereafter shall establish such travel and payments.
CONTRACTOR shall comply with the provisions of Section 1775 of the California Labor Code and shall, as a penalty to CITY, forfeit up to fifty dollars ($50) for each calendar day, or portion thereof, for each worker paid less than the prevailing rate of per diem wages for each craft, classification, or type of worker needed to execute the contract. CONTRACTOR shall pay each worker an amount equal to the difference between the prevailing wage rates and the amount paid worker for each calendar day or portion thereof for which a worker was paid less than the prevailing wage rate. CONTRACTOR is required to pay all applicable penalties and back wages in the event of violation of prevailing wage law, and CONTRACTOR and any subcontractor shall fully comply with California Labor Code Section 1775, which is incorporated by this reference as though fully set forth herein.
E. CONTRACTOR and any subcontractor shall maintain and make available for inspection payroll records as required by Labor Code Section 1776, which is incorporated by this reference as though fully set forth herein. CONTRACTOR is responsible for ensuring compliance with Labor Code Section 1776 and shall keep Exhibit 2 2769
accurate payroll records containing all such information as maybe called for under Labor Code Section 1776 and other applicable provisions of State law.
F. CONTRACTOR and any subcontractors shall, when they employ any person in any apprenticeable craft or trade, apply to the joint apprenticeship committee administering the apprenticeship standards of the craft or trade in the area of the work site for a certificate approving CONTRACTOR or subcontractor under the apprenticeship standards for the employment and training of apprentices in the area or industry affected; and shall comply with all other requirements of Section 1777.5 of the California Labor Code, which is incorporated by this reference as though fully set forth herein. The responsibility of compliance with California Labor Code Section 1777.5 during the performance of this contract rests with CONTRACTOR. Pursuant to California Labor Code Section 1777.7, in the event CONTRACTOR willfully fails to comply with the provisions of California Labor Code Section 1777.5, CONTRACTOR shall be denied the right to bid on any public works contract for up to three (3) years from the date noncompliance is determined and be assessed civil penalties.
G. In accordance with the provisions of Article 5, Chapter 1, Part 7, Division 2 (commencing with Section 1860), and Chapter 4, Part 1, Division 4 (commencing with Section 3700) of the California Labor Code, CONTRACTOR is required to secure the payment of compensation to its employees and for that purpose obtain and keep in effect adequate Workers' Compensation Insurance and Employers Liability Insurance. If CONTRACTOR, in the sole discretion of the CITY satisfies the CITY of the responsibility and capacity under the applicable Workers' Compensation Laws, if any, to act as self -insurer, CONTRACTOR may so act, and in such case, the insurance required by this paragraph need not be provided.
CONTRACTOR is advised of the provisions of Section 3700 of the California Labor Code, which requires every employer to be insured against liability for Workers' Compensation or to undertake self-insurance in accordance with the provisions of that Code and shall comply with such provisions and have Employer's General Liability limits of $1,000,000 per accident before commencing the performance of the Work of this Contract. The Notice to Proceed with the Work under this Contract will not be issued, and CONTRACTOR shall not commence the Work, until CONTRACTOR submits written evidence that it has obtained full Workers' Compensation Insurance coverage for all persons whom it employs or may employ in carrying out the Work under this Contract. This insurance shall be in accordance with the requirements of the most current and applicable state Workers' Compensation Insurance Laws. In accordance with the provisions of Section 1861 of the California Labor Code, CONTRACTOR in signing this Contract certifies to the CITY as true the following statement: "I am aware of the provisions of Section 3700 of the Labor Code which requires every employer to be insured against liability for Workers' Compensation or to undertake self-insurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of the work of this contract." A subcontractor is not allowed to commence Work on the project until verification of Workers' Compensation Insurance coverage has been obtained and verified by CONTRACTOR and submitted to the City Engineer for the CITY's review and records.
Exhibit 2
To
In accordance with the provisions of Section 1727 of the California Labor Code, the CITY, before making payment to CONTRACTOR of money due under a contract for public works, shall withhold and retain therefrom all wages and penalties which have been forfeited pursuant to any stipulation in the contract, and the terms of Chapter 1, Part 7, Division 2 of the California Labor Code (commencing with Section 1720). But no sum shall be withheld, retained or forfeited, except from the final payment, without a full investigation by either the Division of Labor Standards Enforcement or by the CITY.
Section 11. Prohibited Interests. CONTRACTOR warrants, represents and maintains that it has not employed nor retained any company or person, other than a bona fide employee working solely for CONTRACTOR, to solicit or secure this Agreement. Further, CONTRACTOR warrants and represents that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for CONTRACTOR, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, CITY shall have the absolute and unfettered right to rescind this Agreement without liability or penalty. For the term of this Agreement, no member, officer or employee of CITY, during the term of his or her service with CITY, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.
Section 12. Independent Contractor.
A. All acts of CONTRACTOR, its agents, officers, subcontractors and employees and all others acting on behalf of CONTRACTOR relating to the performance of this Agreement, shall be performed as independent contractors and not as agents, officers, or employees of CITY. CONTRACTOR, by virtue of this Agreement, has no authority to bind or incur any obligation on behalf of CITY. CONTRACTOR has no authority or responsibility to exercise any rights or power vested in CITY. No agent, officer, or employee of CITY is to be considered an employee of CONTRACTOR. It is understood by both CONTRACTOR and CITY that this Agreement shall not, under any circumstances, be construed or considered to create an employer -employee relationship or a joint venture.
B. CONTRACTOR, its agents, officers, subcontractors and employees are and, at all times during the term of this Agreement, shall represent and conduct themselves as independent contractors and not as employees of CITY.
C. CONTRACTOR shall determine the method, details and means of performing the Work. CONTRACTOR shall be responsible to CITY only for the requirements and results specified in this Agreement and, except as expressly provided in this Agreement, shall not be subjected to CITY's control with respect to the physical action or activities of the CONTRACTOR in fulfillment of this Agreement.
CONTRACTOR has control over the manner and means of performing the services under this Agreement. CONTRACTOR is permitted to provide services to others during the same period as it provides services to CITY under this Agreement. If necessary, CONTRACTOR has the responsibility for employing other persons or firms to assist CONTRACTOR in fulfilling the terms and obligations under this Agreement.
Exhibit 2
29T 1
If in the performance of this Agreement any third persons are employed by CONTRACTOR, such persons shall be entirely and exclusively under the direction, supervision, and control of CONTRACTOR. All terms of employment including hours, wages, working conditions, discipline, hiring, and discharging or any other term of employment or requirement of law shall be determined by the CONTRACTOR.
E. It is understood and agreed that as an independent contractor and not an employee of CITY neither the CONTRACTOR nor CONTRACTOR'S assigned personnel shall have any entitlement as a CITY employee, right to act on behalf of CITY in any capacity whatsoever as an agent, or to bind CITY to any obligation whatsoever.
F. As an independent contractor, CONTRACTOR hereby indemnifies and holds CITY harmless from any and all claims that may be made against CITY based upon any contention by any third party that an employer -employee relationship exists by reason of this Agreement.
Section 13. Conflicts of Interest. CONTRACTOR hereby warrants for itself, its employees, and subcontractors that those persons presently have no interest and shall not obtain any interest, direct or indirect, which would conflict in any manner with the performance of the services contemplated by this Agreement. No person having such conflicting interest shall be employed by or associated with CONTRACTOR in connection with this project. CONTRACTOR hereby warrants for itself, its employees, and subcontractors that no such person shall engage in any conduct which would constitute a conflict of interest under any CITY ordinance, state law or federal statute.
CONTRACTOR agrees that a clause substantially similar to this Section shall be incorporated into any sub -contract that CONTRACTOR executes in connection with the performance of this Agreement.
Section 14. Non -Discrimination. During the performance of this Agreement, CONTRACTOR and its subcontractors shall not unlawfully discriminate against any employee or applicant for employment because of race, religion, color, national origin, ancestry, physical handicap, medical condition, marital status, age (over 40) or set.
CONTRACTOR and subcontractors shall ensure that the evaluation and treatment of their employees and applicants for employment are free of such discrimination.
CONTRACTOR and subcontractors shall comply with the provisions of the Fair Employment and Housing Act (Gov. Code, Section 12990 et seq.) and the applicable regulations promulgated hereunder (California Code of Regulations, Title 2, Section 7285.0 et seq.). The applicable regulations of the Fair Employment and Housing Commission implementing Government Code, Section 12990, set forth in Chapter 5 of Division 4 of Title 2 of the California Code of Regulations are incorporated into this Contract by reference and made a part hereof as if set forth in full. CONTRACTOR and its subcontractors shall give written notice of their obligations under this clause to labor organizations with which they have a collective bargaining or other agreement. This CONTRACTOR shall include the nondiscrimination and compliance provisions of this clause in all subcontracts to perform work under this Agreement.
Exhibit 2
92 Section. 15. Indemnification.
A. To the fullest extent permitted by law, CONTRACTOR hereby agrees, at its sole cost and expense, to defend, protect, indemnify, and hold harmless CITY and CITY's elected and appointed officials, officers, attorneys, agents, employees, volunteers, successors, and assigns (collectively "Indemnitees") from and against any and all damages, costs, expenses, liabilities, claims, demands, causes of action, proceedings, expenses, judgments, penalties, liens, and losses of any nature whatsoever, including fees of accountants, attorneys, or other professionals and all costs associated therewith (collectively "Liabilities"), arising or claimed to arise, directly or indirectly, out of, in connection with, resulting from, or related to any act, failure to act, error, or omission of CONTRACTOR or any of CONTRACTOR's officers, agents, servants, employees, subcontractors, materialmen, suppliers or their officers, agents, servants or employees, arising or claimed to arise, directly or indirectly, out of, in connection with, resulting from, or related to this Agreement and the performance or failure to perform any term, provision, covenant, or condition of the Agreement, including this indemnity provision. This indemnity provision is effective regardless of any prior, concurrent, or subsequent active or passive negligence by CONTRACTOR and shall operate to fully indemnify Indemnitees against any such negligence. This indemnity provision shall survive the termination of the Agreement and is in addition to any other rights or remedies which Indemnitees may have under the law or elsewhere under this Agreement. Payment is not required as a condition precedent to an Indemnitee's right to recover under this indemnity provision, and an entry of judgment against any one or more of the Indemnitees shall be conclusive in favor of the Indemnitees' right to recover under this indemnity provision.
CONTRACTOR shall pay Indemnitees for any attorney's fees and costs incurred in enforcing this indemnification provision. Notwithstanding the foregoing, nothing in this instrument shall be construed to encompass (a) Indemnitees' sole negligence or willful misconduct to the limited extent that the underlying Agreement is subject to Civil Code § 2782(a), or (b) the contracting public agency's active negligence to the limited extent that the underlying Agreement is subject to Civil Code § 2782(b). This indemnity is effective without reference to the existence or applicability of any insurance coverage(s) which may have been required under the Agreement or any additional insured endorsements which may extend to Indemnitees. Accountants, attorneys, or other professionals employed by Indemnitor to defend Indemnitees shall be selected by Indemnitees.
CONTRACTOR, on behalf of itself and all parties claiming under or through it, hereby waives all rights of subrogation and contribution against the Indemnitees, while acting within the scope of their duties, from all claims, losses and liabilities arising out of or incident to activities or operations performed by or on behalf of the Indemnitor regardless of any prior, concurrent, or subsequent active or passive negligence by the Indemnitees.
B. CONTRACTOR's obligations under this or any other provision of this Agreement will not be limited by the provisions of any workers compensation act or similar act.
CONTRACTOR expressly waives its statutory immunity under such statutes or laws as to the Indemnities.
Exhibit 2
C. CONTRACTOR agrees to obtain executed indemnity agreements with provisions ��3
identical to those in this Section from each and every subcontractor or any other person or entity involved by, for, with or on behalf of CONTRACTOR in the performance of this Agreement. In the event CONTRACTOR fails to obtain such indemnity obligations for the benefit of CITY, CONTRACTOR agrees to be fully responsible and indemnify, hold harmless and defend CITY, its officers, agents, employees and volunteers from and against any and all claims and losses, costs or expenses for any damage due to death or injury to any person and injury to any property resulting from any alleged, intentional, reckless, negligent or otherwise wrongful acts, errors or omissions of CONTRACTOR or any of its officers, employees, servants, agents, subcontractors, volunteers or any other person or entity involved by, for, with or on behalf of CONTRACTOR in the performance of this Agreement. Such costs and expenses shall include reasonable attorneys' fees incurred by counsel of CITY's choice.
D. CITY does not, and shall not; waive any rights that it may possess against CONTRACTOR because of the acceptance by CITY, or the deposit with CITY, of any insurance policy or certificate required pursuant to this Agreement. This hold harmless and indemnification provision shall apply regardless of whether or not any insurance policies are determined to be applicable to the claim, demand, damage, liability, loss, cost or expense. CONTRACTOR agrees that CONTRACTOR's covenant under this Section shall survive the termination of this Agreement.
E. CONTRACTOR shall fully comply with the workers' compensation laws regarding CONTRACTOR and CONTRACTOR's employees. CONTRACTOR further agrees to indemnify and hold CITY harmless from any failure of CONTRACTOR to comply with applicable workers' compensation laws. CITY shall have the right to offset against the amount of any fees due to CONTRACTOR under this Agreement any amount due to CITY from CONTRACTOR as a result of CONTRACTOR's failure to promptly pay to CITY any reimbursement or indemnification arising under this Section.
Section 16. Insurance.
A. CONTRACTOR shall at all times during the term of this Agreement carry, maintain, and keep in full force and effect, insurance as follows:
1. Commercial General Liability Insurance with minimum limits of One Million Dollars ($1,000,000) for each occurrence and in the aggregate for any personal injury, death, loss or damage.
2. Automobile Liability Insurance for any owned, non -owned or hired vehicle used in connection with the performance of this Agreement with minimum limits of One Million Dollars ($1,000,000) per accident for bodily injury and property damage.
3. Worker's Compensation insurance as required by the State of California.
B. CONTRACTOR shall require each of its sub -consultants or sub -contractors to maintain insurance coverage that meets all of the requirements of this Agreement.
Exhibit 2
C. The policies required by this Agreement shall be issued by an insurer admitted in the State of California and with a rating of at least A:VI I in the latest edition of Best's Insurance Guide.
CONTRACTOR agrees that if it does not keep the insurance required in this Agreement in full force and effect, CITY may either immediately terminate this Agreement or, if insurance is available at a reasonable cost, CITY may take out the necessary insurance and pay, at CONTRACTOR'S expense, the premium thereon.
E. Prior to commencement of work under this Agreement, CONTRACTOR shall file with CITY's Risk Manager a certificate or certificates of insurance showing that the insurance policies are in effect and satisfy the required amounts and specifications required pursuant to this Agreement.
F. CONTRACTOR shall provide proof that policies of insurance expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Such proof will be furnished at least two weeks prior to the expiration of the coverages.
G. The general liability and automobile policies of insurance shall contain an endorsement naming CITY, its elected officials, officers, agents, employees, attorneys, servants, volunteers, successors and assigns as additional insureds.
All of the policies shall contain an endorsement providing that the policies cannot be canceled or reduced except on thirty (30) days' prior written notice to CITY.
CONTRACTOR agrees to require its insurer to modify the certificates of insurance to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, and to delete the word "endeavor" with regard to any notice provisions.
H. All policies of Commercial General Liability and Automobile Liability insurance shall be primary and any other insurance, deductible, or self-insurance maintained by the CITY, its officials, officers, employees, agents, or volunteers shall not contribute with this primary insurance. Policies shall contain or be endorsed to contain such provisions.
All insurance coverage provided pursuant to this Agreement shall not prohibit CONTRACTOR, and CONTRACTOR's employees, agents, subcontractors, or volunteers from waiving the right of subrogation prior to a loss. CONTRACTOR hereby waives all rights of subrogation against CITY, its officials, officers, employees, agents and volunteers.
Any deductibles or self -insured retentions must be approved by CITY. At the option of CITY, CONTRACTOR shall either reduce or eliminate the deductibles or self -insured retentions with respect to CITY, or CONTRACTOR shall procure a bond guaranteeing payment of losses and expenses.
K. If CONTRACTOR is a Limited Liability Company, general liability coverage must be amended so that the Limited Liability Company and its managers, affiliates, employees, agents, and other persons necessary or incidental to its operation are Exhibit 2
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insureds.
Procurement of insurance by CONTRACTOR shall not be construed as a limitation of CONTRACTOR's liability or as full performance of CONTRACTOR's duties to indemnify, hold harmless and defend under Section 15 of this Agreement.
M. In the event any policy of insurance required under this Agreement does not comply with these specifications or is canceled and not replaced immediately so as to avoid a lapse in the required coverage, CITY has the right but not the duty to obtain the insurance it deems necessary and any premium paid by CITY will be promptly reimbursed by CONTRACTOR or CITY will withhold amounts sufficient to pay premium from Consultant payments. In the alternative, CITY may cancel this Agreement effective upon notice.
N. CITY reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.
Section 17. Records and Inspection. CONTRACTOR shall keep, and require subcontractors to keep, such books and records as shall be necessary to document the performance of the Work and enable the CITY to evaluate the performance of the Work.
The Contract Officer shall have full and free access to such books and records at all times during normal business hours of CITY, including the right to inspect, copy, audit, and make records and transcripts from such records. Such records shall be maintained for a period of four (4) years following completion of the services hereunder, and the CITY shall have access to such records in the event any audit is required.
Section 18. Termination.
A. Termination for Convenience. CITY may immediately terminate this Agreement for convenience, without cause and without penalty or liability at any time upon the issuance of written notice to CONTRACTOR specifying the effective date of such termination. Such termination for convenience shall be made in writing signed by either the City Representative, the City Manager or the Assistant City Manager.
CONTRACTOR may only terminate this Agreement for cause.
B. Termination for Cause. In the event either Party fails to perform any duty, obligation, service or task set forth under this Agreement (or fails to timely perform or properly perform any such duty, obligation, service or task set forth under this Agreement), an event of default (hereinafter, "Event of Default") shall occur. For all Events of Default, the Party alleging an Event of Default shall give written notice to the defaulting Party (hereinafter referred to as a "Default Notice") which shall specify: (i) the nature of the Event of Default; (ii) the action required to cure the Event of Default; (iii) a date by which the Event of Default shall be cured, which shall not be less than the applicable cure period set forth in this Section or if a cure is not reasonably possible within the applicable cure period, to begin such cure and diligently prosecute such cure to completion. The Event of Default shall constitute a breach of this Agreement if the defaulting Party fails to cure the Event of Default within the applicable cure period or any extended cure period allowed under this Agreement. An Event of Default shall include, but shall not be limited Exhibit 2
Y6
to the following: (i) CONTRACTOR's failure to fulfill or perform its obligations under this Agreement within the specified time or if no time is specified, within a reasonable time; (ii) CONTRACTOR's and/or its employees' disregard or violation of any federal, state, local law, rule, procedure or regulation; (iii) the initiation of proceedings under any bankruptcy, insolvency, receivership, reorganization, or similar legislation as relates to CONTRACTOR, whether voluntary of involuntary; (iv) CONTRACTOR's refusal or failure to perform or observe any covenant, condition, obligation or provision of this Agreement; and/or (v) CITY's discovery that a statement representation or warranty by CONTRACTOR relating to this Agreement is false or erroneous in any material respect, including any statement, representation or warranty set forth in the Equipment Specifications.
1. CONTRACTOR shall cure the following Event of Defaults within the following time periods:
i. Within three (3) business days of CITY's issuance of a Default Notice for any failure of CONTRACTOR to timely provide CITY or CITY's employees or agents with any information and/or written reports, documentation or work product which CONTRACTOR is obligated to provide to CITY or CITY's employees or agents under this Agreement.
Prior to the expiration of the 3 -day cure period, CONTRACTOR may submit a written request for additional time to cure the Event of Default upon a showing that CONTRACTOR has commenced efforts to cure the Event of Default and that the Event of Default cannot be reasonably cured within the 3 -day cure period. The foregoing notwithstanding, CITY shall be under no obligation to grant additional time for the cure of an Event of Default under this subsection that exceeds seven (7) calendar days from the end of the initial 3 -day cure period; or ii. Within thirty (30) calendar days of CITY's issuance of a Default Notice for any other Event of Default under this Agreement. Prior to the expiration of the 30 -day cure period, CONTRACTOR may submit a written request for additional time to cure the Event of Default upon a showing that CONTRACTOR has commenced efforts to cure the Event of Default and that the Event of Default cannot be reasonably cured within the 30 -day cure period. The foregoing notwithstanding, CITY shall be under no obligation to grant additional time for the cure of an Event of Default under this subsection that exceeds thirty (30) calendar days from the end of the initial 30 -day cure period.
If an Event of Default relates to a material falsehood or misrepresentation set forth in Exhibit "A" that is not susceptible to a cure, CITY in its sole and absolute discretion may elect to treat the falsehood or misrepresentation as a breach of this Agreement or waive the falsehood or misrepresentation. The foregoing notwithstanding, the prior waiver of a falsehood or misrepresentation as an Event of Default shall not operate as a waiver or any other falsehood or misrepresentation later discovered by CITY.
2. Except as otherwise specified in this Agreement, CITY shall cure any Event of Default asserted by CONTRACTOR within thirty (30) calendar days of Exhibit 2
CONTRACTOR's issuance of a Default Notice, unless the Event of Default cannot reasonably be cured within the 30 -day cure period. Prior to the expiration of the 30 -day cure period, CITY may submit a written request for additional time to cure the Event of Default upon a showing that CITY has commenced its efforts to cure the Event of Default and that the Event of Default cannot be reasonably cured within the 30 -day cure period. The foregoing notwithstanding, an Event of Default dealing with CITY's failure to timely pay any undisputed sums to CONTRACTOR shall be cured by CITY within five (5) calendar days from the date of CONTRACTOR's Default Notice to CITY.
3. CITY, in its sole and absolute discretion, may also immediately suspend CONTRACTOR's performance under this Agreement (or the performance of any specific task or function performed by CONTRACTOR under this Agreement) pending CONTRACTOR's cure of any Event of Default by giving CONTRACTOR written notice of CITY's intent to suspend CONTRACTOR's performance (hereinafter, a "Suspension Notice"). CITY may issue the Suspension Notice at any time upon the occurrence of an Event of Default.
Upon such suspension, CONTRACTOR shall be compensated only for those services and tasks which have been rendered by CONTRACTOR to the reasonable satisfaction of CITY up to the effective date of the suspension. No actual or asserted breach of this Agreement on the part of CITY shall operate to prohibit or otherwise restrict CITY's ability to suspend this Agreement as provided herein.
4. No waiver of any Event of Default or breach under this Agreement shall constitute a waiver of any other or subsequent Event of Default or breach. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise.
5. The duties and obligations imposed under this Agreement and the rights and remedies available hereunder shall be in addition to and not a limitation of any duties, obligations, rights and remedies otherwise imposed or available by law.
In addition to any other remedies available to CITY at law or under this Agreement in the event of any breach of this Agreement, CITY, in its sole and absolute discretion, may also pursue any one or more of the following remedies:
Upon written notice to CONTRACTOR, the CITY may immediately terminate this Agreement in whole or in part;
ii. Upon written notice to CONTRACTOR, the CITY may extend the time of performance;
iii. The CITY may proceed by appropriate court action to enforce the terms of the Agreement to recover damages for CONTRACTOR's breach of the Agreement or to terminate the Agreement; or
iv. The CITY may exercise any other available and lawful right or remedy.
Exhibit 2
g8
CONTRACTOR shall be liable for all legal fees plus other costs and expenses that CITY incurs upon a breach of this Agreement or in the CITY's exercise of its remedies under this Agreement.
6. In the event CITY is in breach of this Agreement, CONTRACTOR's sole remedy shall be the suspension or termination of this Agreement and/or the recovery of any unpaid sums lawfully owed to CONTRACTOR under this Agreement for completed services and tasks. In no event shall CONTRACTOR be entitled to receive more than the amount that would be paid to CONTRACTOR for the full performance of the services required by this Agreement.
7. No waiver of any default or breach under this Agreement shall constitute a waiver of any other default or breach, whether of the same or other covenant, warranty, agreement, term, condition, duty or requirement contained in this Agreement. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise.
Section 19. Force Majeure. The Completion Date shall be extended in the event of any delays due to unforeseeable causes beyond the control of CONTRACTOR and without the fault or negligence of CONTRACTOR, including but not limited to severe weather, fires, earthquakes, floods, epidemics, quarantine restrictions, riots, strikes, freight embargoes, wars, litigation, and/or acts of any governmental agency, including the CITY, if the CONTRACTOR shall within three (3) calendar days of the commencement of such delay notify the City Representative in writing of the causes of the delay. The City Representative shall ascertain the facts and the extent of delay, and extend the time for performing the services for the period of the enforced delay when and if in the judgment of the City Representative such delay is justified. The City Representative's determination shall be final and conclusive upon the parties to this Agreement. In no event shall CONTRACTOR be entitled to recover damages against the CITY for any delay in the performance of this Agreement, however caused, CONTRACTOR'S sole remedy being extension of the Agreement pursuant to this Section.
Section 20. Notices. Any notices, bills, invoices, or reports required by this Agreement shall be deemed received on: (a) the day of delivery if delivered by hand or overnight courier service during CONTRACTOR's and CITY's regular business hours; or (b) on the third business day following deposit in the United States mail, postage prepaid, to the addresses heretofore below, or to such other addresses as the parties may, from time to time, designate in writing.
If to CITY:
City of BeII Gardens
7100 S. Garfield Ave.
BeII Gardens, CA 90201
Attn: Captain Ruben Musquiz
With a courtesy copy to:
If to CONTRACTOR:
Black and White Emergency
Vehicles
590 South Vincent Avenue
Azusa, CA 91702
Attn: John Patino
Phone: (626) 334-6300
Exhibit 2
�.T9
Stephanie Vasquez
Olivarez Madruga Law Organization, LLP
500 S. Grand Ave., Floor 12
Los Angeles, CA 90071
Telephone: (213) 744-0099
Facsimile: (213) 744-0093
Section 21. Prohibition. CONTRACTOR shall not delegate, transfer, subcontract or assign its duties or rights hereunder, either in whole or in part, without CITY's prior written consent, and any attempt to do so shall be void and of no effect. CITY shall not be obligated or liable under this Agreement to any party other than CONTRACTOR.
Section 22. Attorney Fees. In the event that CITY or CONTRACTOR commences any legal action or proceeding to enforce or interpret the provisions of this Agreement, the prevailing party shall be entitled to recover its costs of suit, including reasonable attorney's fees.
Section 23. Entire Agreement. All documents referenced as exhibits in this Agreement are hereby incorporated in this Agreement. Except as expressly provided in this Agreement or its Exhibits, in the event of any conflict or inconsistency between the express provisions of this Agreement and provisions of any document incorporated by reference, the provisions of this Agreement shall prevail and control. This instrument contains the entire Agreement between CITY and CONTRACTOR with respect to the subject matter herein. No other prior oral or written agreements are binding on the parties.
Any modification of this Agreement will be effective only if it is in writing and executed by both CITY and CONTRACTOR.
Section 24. Governing Law; Jurisdiction. This Agreement shall be interpreted and governed according to the laws of the State of California. In the event of litigation between the Parties, venue, without exception, shall be in the Los Angeles County Superior Court of the State of California. If, and only if, applicable law requires that all or part of any such litigation be tried exclusively in federal court, venue, without exception, shall be in the Central District of California located in the City of Los Angeles, California.
Section 25. Severability. Wherever possible, each provision of this Agreement shall be interpreted in such a manner as to be valid under applicable law. If any provision of this Agreement is determined by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions shall nevertheless continue in full force and effect.
Section 26. Captions. The captions used in this Agreement are solely for reference and the convenience of the parties. The captions are not a part of the Agreement, in no way bind, limit, or describe the scope or intent of any provision, and shall have no effect upon the construction or interpretation of any provision herein.
Section 27. Execution. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which when taken together shall constitute one and the same instrument.
Exhibit 2
[SIGNATURES ON FOLLOWING PAGE]
Ho
TO EFFECTUATE THIS AGREEMENT, the parties have caused their duly authorized representatives to execute this Agreement on the dates set forth below.
CITY OF Bell Gardens, a municipal BLACK & WHITE EMERGENCY corporation VEHICLES
By: By:
Michael B. O'Kelly
City Manager Name:
Date: Title:
Date:
APPROVED AS TO FORM:
By:
Stephanie Vasquez
City Attorney
Date:
Exhibit 2
Hi
EXHIBIT "A"
CONTRACTOR QUOTE
Exhibit 2
A2
Name / Address
590 South Vincent Avenue
Azusa, CA 91702
Be11 Gardens Police Department
7100 Garfield Ave.
Bell Gardens, CA 90201
Item
AC -20 -UV -SET
CP-UV20-CARGO
AC -20 -UV -TRAY
AC-DUALUSB
CM-SDMT-SA-LED
MMSU-1
Ch27.1.20/L3
C3RNRDC-72L-BWRW
C3RNRDC-72R-BWRW
RNRBKT-PIU
CP-GB203212-TL
GKI1191B1SSSCA
WIRE&TERMINALS
FULL,BUILD
Description
Quote
Date
3/27/2023
Estimate #
2153
Ship To
Bell Gardens Police Department
7100 Garfield Ave.
Bell Gardens, CA 90201
Customer
2023 Patrol Build
2020+ Ford PIU Driver/Passenger Side Set of
Diamond -Punched Window Screens
2020+ Ford PIU Tilt -Up Cargo Mount w/Gas Shocks
2020+ Ford PIU Electronics Tray Bolts to
CP-UV20-CARGO
Dual USB Plug for Troy Face Plates
Troy Side -Mounted Swim Anm Computer Mount For
Havis/Ledco & Kodiak Docks
Magnetic Mic Single Unit
27 Circuits W/ Modular Smart Start Timer and L3 bracket for Ford Utility with 20ft long Output Wires.
72" Running Board Left Wire Exit, BWRW
72" Running Board Right Wire Exit, BWRW
Running Board Light Bracket
UV Gun Box, Half Size
Setina Dual T -Rail Mount 1 SM 1 1080E Blac-Rac
Wire, Terminals, Tie -Wraps, & Hardware
Installation of a]1 Emergency Equipment and Customer
provide Two Way Radio and Computer into a 2023 Ford
Utility Police Vehicle.
Quotes are subject to change and are Valid for 30 Days
Signature
Qty Rate
1 209.79
1 769.50
1 258.39
44.55 347.49
2 36.75
1 725.00
1 2
1 Subtotal
438.84
438.84
24.61 1,389.15
996.00
260.00
3,850.00
Sales Tax ('10.25%)
Terms
Net 30
Total
209.79T
769.50T
258.39T
44.55T
347.49T
73.50T
725.00T
438.84T
438.84T
49.22T
1,389.15T
996.00T
260.00T
3,850.00
$20,543.62
$1,690.50
Total
$22,234.12
590 S. Vincent Ave, Azusa, CA 91702
Office (626) 334-6300 Fax (626) 344-6301
JPC�.BLACKANDWHITEEV.COl 3VW.BLACKANDWRITEEV.COM
Exhibit 2 283
Name / Address
Bell Gardens Police Department
7100 Garfield Ave.
Bell Gardens, CA 90201
Item
ALGT53J-P 1 LC
PF200S17B
ESI00C
ESB-U
ES100C
ESB-U
STFMJH-FPIU20-P3
BK1558ITU20
FK0400ITU20
MPS62U-BW
MPS62U-RW
MPS62U-RB
Freight Charge
416900Z-RB
416900-VHB
MPS62U-RB
CC-UV20-L-18
AC-INBHG
AC-TB-ARMMNT-58
TP-E-SL6-US-SS
KP-UV20-DAP-SS
SAB-20-FDUV-BB
PS-20-UVFX-OS-RL
590 South Vincent Avenue
Azusa, CA 91702
Description
Date
3/27/2023
Quote
Estimate #
2 5
Ship To
Bell Gardens Police Department
7100 Garfield Ave.
Bell Gardens, CA 90201
Customer
2023 Patrol Build
Allegiant 53 Inch Red/Blue with Red/Clear/Blue Domes
Pathfinder 17 Button (TB-INTG22)
Speaker, ES00C/DynaMax, 100W, High Output
Universal Siren Speaker Bracket for ES100
Speaker, ES00C/DynaMax, 100W, High Output
Universal Siren Speaker Bracket for ES100
SpectraLux ILS Rear Low Profile Red/Amber/Blue 2020
Ford Utility
Light -Ready PB450LR4 Micro Ultra 2020-2023 Ford
PIU
PB5 Fender Wraps Aluminum
Micropulse Dual Color Blue / White Push Bumper
Micropulse Dual Color Red / White Push Bumper
Micropulse Dual Color Red / Blue Push Bumper Side
Setina Bumper
Corner LED Red/Blue
No Drill Mount for Ford Utility
Micropulse Dual Color Red / Blue Rear Hatch
Troy 2020+ Ford PIU 18" Specific Console
Troy 4" Internal Dual Cup Holder
Console Mounted Height Adjustable Swivel Arm Rest
Troy Stash N Stow Cage with Sliding Center Window
W/Square Hole -Punched Style Guard
2020 PI Utility 3pc. Kick Panel w/ Foot Pockets Use with Big Boy Mount
2020 PI Utility Big -Boy Partition Mounting Kit
Plastic Seat with OS Belts, Rear Partition Polycarbonate Window, with Fire Extinguisher Compartment
Quotes are subject to change and are Valid for 30 Days
Signature
Exhibit 2
Qty
1 1
t
1 2
1 4
2 1
Subtotal
Rate
1,779.40
1,278.90
263.90
25.20 0.00
0.00 1,035.30
577.56
445.56
159.80
159.80
159.80
200.95
103.35
15.11 159.80
486.81
5L84
172.53
858.60
185.49
0.00 1,944.00
Sales Tax (10.25%)
Total
590 S. Vincent Ave, Azusa, CA 91702
Office (626) 334-6300 Fax (626) 344-6301
JP(&BLACKANDWHITEEV.COr ! VW.BLACKANDWHITEEV.COM
284
Terms
Net 30
Total
1,779.40T
1,278.90T
263.90T
25.20T
0.00T
0.00T
1,035.30T
577.56T
445.56T
159.80T
159.80T
319.60T
200.95
413.40T
15.11T
319.60T
486.81T
51.84T
172.53T
858.60T
l 85.49T
0.00T
1,944.00T
Name I Address
590 South Vincent Avenue
Azusa, CA 91702
Bell Gardens Police Department
7100 Garfield Ave.
Bell Gardens, CA 90201
Item
SIFMJS-FPIU20-P3
PF200S17B
ESIOOC
ESB-U
ES100C
ESB-U
SIFMJH-FPIU20-P3
BK1558ITU20
FK0400ITU20
MPS62U-BW
MPS62U-RW
MPS62U-RB
Freight Charge
416900Z-RB
416900-VHB
MPS62U-R13
CC-UV20-L-18
AC-INBHG
AC-TB-ARMMNT-58
TP-E-SL6-US-SS
KP-UV2o-DAP-SS
SAB-20-FDUV-BB
Customer
Date
3/27/2023
Quote
Estimate #
2154
Ship To
Bell Gardens Police Department
7100 Garfield Ave.
Bell Gardens, CA 90201
2023 Patrol Build Slicktop
Description
SpectraLux ILS Low Profile Red/White/Blue 2020 Ford
Utility
Pathfinder 17 Button (TB-INTG22)
Speaker, ES00C/DynaMax, 100W, High Output
Universal Siren Speaker Bracket for ES 100
Speaker, ES00C/DynaMax, 100W, High Output
Universal Siren Speaker Bracket for ES 100
SpectraLux ILS Rear Low Profile Red/Amber/Blue 2020
Ford Utility
Light -Ready PB450LR4 Micro Ultra 2020-2023 Ford
PIU
PB5 Fender Wraps Aluminum
Micropulse Dual Color Blue / White Push Bumper
Micropulse Dual Color Red / White Push Bumper
Micropulse Dual Color Red / Blue Push Bumper Side
Setina Bumper
Corner LED Red/Blue
No Drill Mount for Ford Utility
Micropulse Dual Color Red / Blue Rear Hatch
Troy 2020+ Ford PIU 18" Specific Console
Troy 4" Internal Dual Cup Holder
Console Mounted Height Adjustable Swivel Arm Rest
Troy Stash N Stow Cage with Sliding Center Window
W/Square Hole -Punched Style Guard
2020 PI Utility 3pc. Kick Panel w/ Foot Pockets Use with Big Boy Mount
2020 PI Utility Big -Boy Partition Mounting Kit
Quotes are subject to change and are Valid for 30 Days
Signature
Exhibit 2
Qty Rate
1 963.90
1 1,278.90
1 263.90
1 25.20
1 0.00
1 0.00
1 1,035.30
1 577.56
1 445.56
1 159.80
1 159.80
2 159.80
1 200.95
4 103.35
1 15.11
159.80
i 486.81
1 51.84
1 172.53
1 '858.60
1 185.49
1 0.00
Subtotal
Sales Tax (10.25%)
Terms
Net 30
Total
963.90T
1,278.90T
263.90T
25.20T
0.00T
0.00T
1,035.30T
577.56T
445.56T
159.80T
159.80T
319.60T
200.95
413.40T
15.11T
319.60T
486.81T
51.84T
172.53T
858.60T
185.49T
0.00T
Total
590 S. Vincent Ave, Azusa, CA 91702
Office (626) 334-6300 Fax (626) 344-6301
JPnaBLACKANDWHITEEV.COr WWW.BLACKANDWHITEEV.COM
285
Name / Address
590 South Vincent Avenue
Azusa, CA 91702
Bell Gardens Police Department
7100 Garfield Ave.
Be11 Gardens, CA 90201
Item
PS-20-UVFY-OS-RL
AC -20 -UV -SET
CP-UV20-CARGO
AC -20 -UV -TRAY
AC-DUALUSB
CM-SDMT-SA-LED
MMSU-1
Ch27.1.20/L3
C3RNRDC-72L-BWRW
C3RNRDC-72R-BWRW
RNRBKT-PIU
CP-GB203212-TL
GK11I91BISSSCA
WIRE&TERMINALS
FULL,BUILD
Customer
Date
3/27/2023
Ship To
Quote
Estimate #
Bell Gardens Police Department
7100 Garfield Ave.
Bell Gardens, CA 90201
2023 Patrol Build Slicktop
Description
Plastic Seat with OS Belts, Rear Partition Polycarbonate Window, with Fire Extinguisher Compartment
2020+ Ford PIU Driver/Passenger Side Set of
Diamond -Punched Window Screens
2020+ Ford PIU Tilt -Up Cargo Mount w/Gas Shocks
2020+ Ford PIU Electronics Tray Bolts to
CP-UV20-CARGO
Dual USB Plug for Troy Face Plates
Troy Side -Mounted Swing -Arm Computer Mount For
Havis/Ledco & Kodiak Docks
Magnetic Mic Single Unit
27 Circuits W/ Modular Smart Start Timer and L3 bracket for Ford Utility with 20ft long Output Wires.
72" Running Board Left Wire Exit, BWRW
72" Running Board Right Wire Exit, BWRW
Running Board Light Bracket
UV Gun Box, Half Size
Setina Dual T -Rail Mount 1 SM 1 1080E Blac-Rac
Wire, Terminals, Tie -Wraps, & Hardware
Installation of all Emergency Equipment into a 2023 Ford Utility Police Vehicle and Customer provide Two Way
Radio and Computer.
Quotes are subject to change and are Valid for 30 Days
Exhibit 2
Signature
Qty
1 1
1 2
Subtotal
Rate
1,944.00
209.79
769.50
258.39
44.55 347.49
36.75 725.00
438.84
438.84
24.61 1,389.15
996.00
260.00
3,850.00
Sales Tax (10.25%)
Total
590 S. Vincent Ave, Azusa, CA 91702
Office (626) 334-6300 Fax (626) 344-6301
JP4a?BLACKANDWHITEEV.CO fi J VW.BLACKANDWHITEEV.COM
286
2154
Terms
Net 30
Total
1,944.00T
209.79T
769.50T
258.39T
44.55T
347.49T
73.S0T
725.00T
438.84T
438.84T
49.22T
1,389.15T
996.00T
260.00T
3,850.00
$19,728.12
$1,606.91
$21,335.03
CITY OF BELL GARDENS
OFFICE OF THE CITY MANAGER
AGENDA REPORT
Item 15.
TO:
FROM:
BY:
Honorable Mayor and City Council Members
Michael B. O'Kelly, City Manager
Douglas Benash, P.E., City Engineer
Veronica Sanchez, Management Analyst
SUBJECT: AWARD OF CONTRACT FOR THE CITYWIDE STRIPING AND MARKING PROJECT (#3916)
DATE: April 10, 2023
RECOMMENDATION:
It is staff's recommendation that the City Council by motion:
1. Award a construction contract to PCI in the amount of $101,310 for the FY 2022-2023 Citywide Striping Project— C.I.P. No. 3916; and
2. Authorize staff to execute the agreement and approve change orders that may be necessary during construction to cover any unforeseen condition in an amount not to exceed 10% of the construction contract.
BACKGROUND/DISCUSSION:
The project scope of work consists of re -striping all lane lines, double lines, yellow lane lines, edge lines and other lane striping with no bid alternates.
The City will perform the tasks of advertised Bid Alternate No.1- Grind and remove RPMs, all types prior to striping utilizing maintenance funds and Bid Alternate No. 2- House number painting will not be included at this time due to high cost. Map of scope of work location is provided as attachment Exhibit 2. The contract specifications indicate that the contractor shall complete all work as specified in the Base Bid within thirty-five (35) working days.
On February 13, 2023, the City Council approved the plans and specifications and gave staff authorization to solicit bids for the FY 2022-2023 Citywide Striping Project. On March 2, 2023, the City received a total of two (2) bid proposals for this project:
Bidders
Base Bid Amount
Alternate Bid Amount
PCI
$101,310.00
Alternate 1: Not Available
Alternate 2: $180,000.00
Alternate 1: $12,956.00
Alternate 2: $148,110.00
Superior Pavement Markings
$105,525.00
Staff conducted an analysis of the apparent lowest bidder PCI. This analysis included a review of their bid schedule, bid bond, license, references, and all required documentation. PCI's license is current and active, and reference checks revealed that the contractor's previous projects were completed satisfactorily, with no contractor -initiated 287
change orders. The Contractor's DI R Registration and AM Best Rating Check were also reviewed and deemed satisfactory. It has been determined that PCI is the lowest responsive and responsible bidder.
Therefore, staff recommends award of a construction contract to PCI in the total amount of $101,310.00, which includes the base bid amount of $101,310.00 and no alternate bids.
ENVIRONMENTAL ANALYSIS:
Pursuant to Section 6004 (23 U.S.C. 326) and Section 15301(c) of the CEQA Guidelines (Class 1, Existing Facilities) the proposed project has been reviewed to determine whether it is exempt from NEPA and CEQA. The proposed project will not involve or affect any sensitive environments or habitats, scenic resources, historical buildings, historic resources, or any hazardous waste sites. Therefore, under Section 6004(d1) and Section 15301(c) of the CEQA Guidelines (Class 1, Existing Facilities), it has been determined that the project is exempt from NEPA and CEQA pursuant to categorical exemptions. A Notice of Exemption will be prepared and filed with the County Clerk's Office.
CONCLUSION:
If awarded staff will proceed to get the contract executed and will coordinate a pre -construction meeting.
FISCAL IMPACT:
The City's budget for the FY 2022-2023 Citywide Striping Project — C.I.P. NO. 3916 project is $134,500 of Measure R funding.
The estimated project expenditures are as follows:
Design (9%)
Geotechnical Work
Survey Work
Project Management & Administration (2%)
Construction Management and Inspection (7.5%)
Funding Administration (1.5%)
Construction Award — Base Bid
Construction Award — Alternate Bid
Labor Compliance (actual cost)
Contingency (10%)
Publication & Misc. Costs
ESTIMATED PROJECT COST
ATTACHMENTS:
Exhibit 1 - Contract Agreement
Exhibit 2 - Maps
$9,000
N/A
N/A
$2,068
$7,756
$1,551
$101,310
N/A
N/A
$10,342
$2,000
$134,027
APPROVED ELECTRONICALLY BY:
Michael B. O'Kelly, City Manager
Stephanie Vasquez, Assistant City Attorney for Rick R. Olivarez, City Attorney Manuel Carrillo, Director of Finance and Administrative Services 288
CITY OF BELL GARDENS
CONSTRUCTION CONTRACT AGREEMENT
FOR
FY 2022-2023 CITYWIDE STRIPING PROJECT- C.I.P. NO. 3916
IN THE CITY OF BELL GARDENS
THIS CONSTRUCTION CONTRACT (hereinafter, "Contract") is made and entered into this day of 2023 (hereinafter, the "Effective Date") by and between the CITY OF BELL GARDENS, a municipal corporation (hereinafter, "CITY") and WGJ ENTERPRISES INC., DBA PCI (hereinafter, "CONTRACTOR"). For the purposes of this Agreement, CITY and CONTRACTOR may be referred to collectively by the capitalized term "Parties." The capitalized term "Party" may refer to CITY or CONTRACTOR interchangeably as appropriate.
RECITALS
WHEREAS, CITY requires public works construction services for the FY 2022- 2023 CITYWIDE STRIPING PROJECT- C.I.P. NO. 3916 (hereinafter, the "Project"); and WHEREAS, CITY issued notice inviting competitive bids for the Project on February 15, 2023; and
WHEREAS, following the opening of bids on March 2, 2023, CONTRACTOR was determined to be the lowest responsive and responsible bidder for the Project.
NOW, THEREFORE, for and in consideration of the mutual covenants and conditions herein contained, CITY and CONTRACTOR agree as follows:
ARTICLE I (CONTRACT DOCUMENTS'
The contract documents for the aforesaid project shall consist of the Notice Inviting Sealed Bids, Instructions to Bidders, Proposal, General Specifications, Standard Specifications, Special Provisions, Plans, and all referenced specifications, details, standard drawings, and appendices; together with this Contract Agreement and all required bonds, insurance certificates, permits, notices, and affidavits; and also including any and all addenda or supplemental agreements (hereinafter "Contract Documents") clarifying, or extending the work contemplated as may be required to ensure its completion in an acceptable manner. All of the provisions of said Contract Documents are made a part hereof as though fully set forth herein.
Exhibit 1 289
ARTICLE II (WORK TO BE PERFORMED)
The CONTRACTOR agrees to furnish all tools, equipment, apparatus, facilities, labor, transportation, and material necessary to perform and complete in a good and workmanlike manner the Project, as called for, and in the manner designated in, and in strict conformity with, the Contract Documents. It is understood and agreed that the tools, equipment, apparatus, facilities, labor, transportation, and material shall be furnished and the work performed and completed as required in the Drawings and Specifications under the sole direction and control of the CONTRACTOR, and subject to inspection and approval of the CITY, or its representatives.
ARTICLE III (CONTRACT PRICE'
CITY agrees to pay and the CONTRACTOR agrees to accept, in full payment for the work above agreed to be done, the sum of ONE HUNDRED ONE THOUSAND THREE HUNDRED TEN DOLLARS ($101,310) for the Project (hereinafter, the "Bid Price").
CONTRACTOR agrees to receive and accept the prices set forth in the Proposal as full compensation for furnishing all materials, performing all work, and fulfilling all obligations hereunder. Said compensation shall cover all expenses, losses, damages, and consequences arising out of the nature of the work during its progress or prior to its acceptance, including those for well and faithfully completing the work and the whole thereof in the manner and time specified in the aforesaid contract documents; and also including those arising from actions of the elements, unforeseen difficulties or obstructions encountered in the prosecution of the work, suspension or discontinuance of the work, and all other unknowns or risks of any description connected with the work.
ARTICLE IV (NOTICE AND SERVICE THEREOF)
Any notice from one party to the other under the Contract shall be in writing and shall be dated and signed by the party giving such notice or by a duly authorized representative of such party. Any such notice shall not be effective for any purpose whatsoever unless served in the following manner, namely:
(a) If the notice is given to the CITY, by personal delivery thereof, or by depositing the same in the United States mail, enclosed in a sealed envelope, postage prepaid, and certified; addressed to the CITY at:
City of Bell Gardens
Public Works Department
Attn: Public Works Director
Bell Gardens City Hall
7100 Garfield Avenue
Bell Gardens, CA 90201
Exhibit 1 290
(b) If the notice is given to the CONTRACTOR, by personal delivery thereof to said CONTRACTOR or to its duly authorized representative at the site of the project, or by depositing the same in the United States mail, enclosed in a sealed envelope, postage prepaid, and certified; addressed to the CONTRACTOR at:
WGJ Enterprises Inc., dba PCI
975 W. 1St St., Azusa, CA 91702
Attn: William G. Jacob
Phone: (562) 218-0504
(c) If the notice is given to the surety or any other person, by personal delivery to such surety or other person, or by depositing the same in the United States mail, enclosed in a sealed envelope, addressed to such surety or other person, as the case may be, at the address of such surety or person last communicated by it to the party giving the notice, postage prepaid and certified.
ARTICLE V (INSURANCE)
CONTRACTOR acknowledges the provisions of the State Labor Code requiring every employer to be insured against liability for worker's compensations, or to undertake self- insurance in accordance with the provisions of that code and certified compliance with such provisions.
CONTRACTOR agrees to indemnify, defend and hold harmless CITY and all if its officers and agents from any claims, demand or causes of action, including related expenses, attorney's fees, and costs, based on, arising out of, or in any way related to the work undertaken by CONTRACTOR hereunder. The liability insurance coverage values shall be:
Insurance Coverage Requirements Limit Requirements
Comprehensive General Liability
Product/Completed Operations Hazard
Comprehensive Automobile Liability
Contractual General Liability
Worker's Compensation
$1,000,000
$1,000,000
$1,000,000
$1,000,000
Statute
A combined single -limit policy with aggregated limits in the amount of $2,000,000 will be considered equivalent to the required minimum limits.
The issuer shall be an "admitted surety insurer" duly authorized to transact business under the laws of the State of California.
Exhibit 1 291
Acceptable insurance coverage shall be placed with the carriers admitted to write insurance in California or carriers with a rating of or equivalent to A:VIII by A.M. Best & Co. Any deviation from this rule shall require specific approval, in writing, from the CITY.
Insurance shall name the City of Bell Gardens, its officers, agents, and employees, including Infrastructure Engineers, as additional insured by endorsement of the CONTRACTOR's policy. A copy of the endorsement, showing policy limits, shall be provided to the CITY on or before signing this contract.
ARTICLE VI (EXECUTION'
CONTRACTOR affirms that the signatures, titles and seals set forth hereinafter in execution of this Contract Agreement represent all individuals, firm members, partners, joint ventures, and/or corporate officers having principal interest herein.
ARTICLE VII (COMPLETION DATE)
The total contact time for completion of the Project is thirty-five (35) working days from the effective date of notice to proceed to be issued by the CITY. This includes five (5) working days for Mobilization and thirty (30) working days for construction.
The liquidated damage for the Project is two hundred fifty dollars ($250.00) per calendar day for each calendar day the Project is not completed to the satisfaction of the CITY within the contract time including any extension of time granted by the CITY.
ARTICLE VIII (RECORDS & AUDITS)
The CONTRACTOR shall maintain accounts and records, including personnel, property, and financial records, adequate to identify and account for all costs pertaining to the contract and such other records as may be deemed necessary by the CITY to assure proper accounting for all Project funds. These records will be made available for audit purposes to the CITY or any authorized representative and will be retained for 5 years after the expiration of this contract unless permission to destroy them is granted by the CITY.
ARTICLE IX (PREVAILING WAGES)
(a) CONTRACTOR agrees to comply with the provisions of California Labor Code Section 1773.8, which requires the payment of travel and subsistence payments to each worker needed to execute the work to the extent required by law. (b) By the execution of this Contract, CONTRACTOR hereby certifies that it is registered with the California Department of Industrial Relations as required pursuant to Labor Code section 1725.5 (contractor registration).
Exhibit 1 292
(c) CONTRACTOR agrees to comply with the provisions of California Labor Code Section 1774 and 1775 concerning the payment of prevailing rates of wages to workers and the penalties for failure to pay prevailing wages. The CONTRACTOR shall, as a penalty to the CITY, forfeit no more than Fifty Dollars ($50) for each calendar day, or portion thereof, for each worker paid less than the prevailing rates as determined by the Director of Industrial Relations for the work or craft in which the worker is employed for any public work done under the contract by CONTRACTOR or by a subcontractor. (d) CONTRACTOR agrees to comply with the provisions of California Labor Code Section 1776 which requires CONTRACTOR and each subcontractor to (i) keep accurate payroll records, (ii) certify and make such payroll records available for inspection as provided by Section 1776, and (iii) inform the CITY of the location of the records. The CONTRACTOR is responsible for compliance with Section 1776 by itself and all of its subcontractors.
(e) CONTRACTOR agrees to comply with the provisions of California Labor Code Section 1777.5 concerning the employment of apprentices on public works projects, and further agrees that the CONTRACTOR is responsible for compliance with Section 1777.5 by itself and all of its subcontractors.
(f) CONTRACTOR agrees to comply with the provisions of California Labor Code Section 1813 concerning penalties for workers who work excess hours without approval of the CITY. The CONTRACTOR shall, as a penalty to the Agency, forfeit Twenty -Five Dollars ($25) for each worker employed in the execution of the contract by the CONTRACTOR or by any subcontractor for each calendar day or portion thereof during which such worker is required or permitted to work more than 8 hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of Division, 2, Part 7, Chapter 1, Article 3 of the California Labor Code. The CONTRACTOR may, with the approval of the City, use his employees to carry out work on the project beyond the normal eight (8) hour workday and on Saturdays, Sundays and Holidays provided the employees are paid at the following hourly rates:
• Week days (Monday through Fridays) after eight (8) hours daily and not to exceed twelve (12) hours daily total per day and not exceeding forty- eight (48) hours work in a seven (7) day period week at one and one- half (1.5) times the prevailing hourly wage for the initial eight (8) hours of regular work time for the time worked after the initial eight (8) hours regular time.
• Saturdays, Sundays and Holidays for time worked after forty (40) hours of regular work time in a seven (7) day period week at the rate of two (2.0) times the prevailing hourly wage for the initial eight (8) hours of regular weekday work time and not to exceed a total of forty-eight (48) hours of work within the seven (7) day work week period.
Exhibit 1 293
(g) California Labor Code Sections 1860 and 3700 provide that every contractor will be required to secure the payment of compensation to its employees. In accordance with the provisions of California Labor Code Section 1861, Contractor hereby certifies as follows:
"I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for worker's compensation or to under self-insurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of the work of this contract."
ARTICLE X (PROMPT PAYMENT
Prompt Progress Payment to Subcontractors
Attention is directed to Section 7108.5 of the California Business and Professions Code, which requires a prime contractor or subcontractor to pay any subcontractor not later than 10 days of receipt by the CONTRACTOR of each progress payment, unless otherwise agreed to in writing.
(SIGNATURES ON NEXT PAGE)
Exhibit 1 294
IN WITNESS THEREOF the parties hereto for themselves, their heirs, executors, administrators, successors, and assigns do hereby agree to the full performance of the covenants herein contained and have caused this contract agreement to be executed in triplicate by setting hereunto their names, titles, hands, and seals this day of , 2023.
Contractor: WGJ Enterprises Inc., dba PCI
(Signature)
Name and Title (Printed)
Contractor's License No. 415490 License Class: C-32
CITY Business License No.
Federal Tax Identification No.
Subscribed and sworn to this day of , 20
NOTARY PUBLIC
CITY:
City Manager of the City of Bell Gardens
Attested:
City Clerk of the City of BeII Gardens
Date
Approved as
to form:
City Attorney of the City of BeII Gardens
Date
Exhibit 1 295
PERFORMANCE BOND
FOR
CITYWIDE STRIPING PROJECT
FY 2022 - 2023
C.I.P. NO. 3916
The CITY OF BELL GARDENS, hereinafter "City," entered into a Contract dated , 20 with WGJ Enterprises Inc., dba PCI hereinafter Contractor," for the work described as follows:
FY 2022-2023 Citywide Striping Project — C.I.P. No. 3916 WHEREAS, said Contractor is required under terms of said Contract to furnish a bond for the faithful performance of said Contract; and
WHEREAS, the Contract is by reference made a part hereof.
NOW, THEREFORE, we, , the undersigned
Contractor, as Principal, and [corporate surety] , a
corporation organized and existing under the laws of the State of , and duly authorized to transact business under the laws of the State of California, as Surety, are held and firmly bound unto the City in the penal sum of , lawful money of the United States, said sum being not less than one hundred percent (100%) of the total Contract amount, for the payment of which sum be made, we bind ourselves, our heirs, executors, administrators, and successors, jointly and severally, firmly by these presents.
THE CONDITION OF THIS OBLIGATION IS SUCH, THAT, if the above -bounded Contractor, its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and perform the covenants, conditions, and agreements in said Contract and any alterations thereof made as therein provided, on its part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their true intent and meaning, and shall indemnify and save harmless the City, its officers and agents, as therein stipulated, then this obligation shall become null and void; otherwise it shall be and remain in full force and virtue.
As a condition precedent to the satisfactory completion of said Contract, the above obligation in said amount shall hold good for a period of one (1) year after the completion and acceptance of said work, during which time if the above -bounded Contractor, its heirs, executors, administrators, successors or assigns shall fail to make full, complete, and satisfactory repair and replacements or totally protect the City from loss or damage Exhibit 1 296
made evident during said period of one (1) year from the date of acceptance of said work, and resulting from or caused by defective materials or faulty workmanship in the prosecution of the work done, the above obligation in said sum shall remain in full force and effect. However, anything in this paragraph to the contrary notwithstanding, the obligation of the Surety hereunder shall continue so long as any obligation of the Contractor remains.
And the Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract or to the work to be performed thereunder or the specifications accompanying the same shall, in any way, affect its obligations on this bond and it does hereby waive notice of any such change, extension of time, alteration, or addition to the terms of the Contract or to the work or the specifications. Said Surety hereby waives the provisions of Sections 2819 and 2845 of the Civil Code of the State of California.
In the event suit is brought upon this bond by the City and judgment is recovered, the Surety shall pay all costs incurred by the City in such suit, including reasonable attorneys' fees to be fixed by the Court.
IN WITNESS WHEREOF, we have hereunto set our hands and seals this day of , 20
(Contractor as Principal)
(Seal) By:
(Seal) By:
NOTE: If Contractor is a Partnership, all parties must execute the Bond.
IMPORTANT: Surety companies executing Bonds must appear on the Treasury Department's most current list (Circular 570 as amended) and be authorized to transact business in California.
Exhibit 1 297
PAYMENT BOND
FOR
CITYWIDE STRIPING PROJECT
FY 2022 - 2023
C.I.P. NO. 3916
The CITY OF BELL GARDENS, hereinafter "City," has awarded to ,hereinafter "Contractor," a Contract for the work described as follows:
FY 2022-2023 Citywide Striping Project - C.I.P. No. 3916 WHEREAS, the Contractor is required by the Contract and by the provisions of Third Division, Part 4, Title 15, Chapter 7 of the Civil Code to furnish a bond in connection with the Contract, as hereinafter set forth.
NOW, THEREFORE, we, , the undersigned
Contractor, as Principal, and , a corporation
organized and existing under the laws of the State of duly authorized to transact business under the laws of the State of California, as Surety, are held and firmly bound unto the in the sum of
(
), said
sum being not less than one hundred (100%) percent of the total Contract amount payable by the City, under the terms of the Contract, for which payment well and truly to be made, we bind ourselves, our heirs, executors and administrators, successors and assigns, jointly and severally, firmly by these presents.
THE CONDITION OF THIS OBLIGATION IS SUCH, THAT, if the Contractor, its heirs, executors, administrators, successors, and assigns or subcontractors shall fail to pay for any materials, provisions, provender or other supplies or teams, implements or machinery used in, upon, for or about the performance of the work contracted to be done, or shall fail to pay for any work or labor thereon of any kind, or shall fail to pay any persons named in Civil Code section 9100, or shall fail to pay for amounts due under the Unemployment Insurance Code with respect to such work or labor thereon of any kind, or shall fail to pay for any amounts required to be deducted, withheld, and paid over to the Employment Development Department from the wages of employees of the Contractor and subcontractors pursuant to Section 13020 of the Unemployment Insurance Code with respect to such work or labor, and provided that the claimant shall have complied with the provisions of that code, the Surety or Sureties hereon will pay for the same in an amount not exceeding the sum specified in the Contract; otherwise, the above obligation shall be Exhibit 1 298
void. In case suit is brought upon this bond, the Surety will pay reasonable attorneys' fees to the prevailing party to be fixed by the court.
This bond shall insure to the benefit of any and all persons, companies and corporations entitled to file claims under Section 9100 of the Civil Code, so as to give a right of action to them or to their assigns in any suit brought upon this bond.
It is further stipulated that the Surety of this bond shall not be exonerated or released from the obligation of the bond by any change, extension of time for performance, addition, alteration, or modification in, to, or of any contract, plans, specifications, or agreement pertaining or relating to any scheme or work of improvement described above or pertaining or relating to the furnishing of labor, materials, or equipment therefor, nor by any change or modification of any terms of payment or extension of the time for any payment pertaining or relating to any scheme or work of improvement described above, nor by any rescission or attempted rescission of the Contract, agreement, or bond, nor by any conditions precedent or subsequent in the bond attempting to limit the right of recovery of claimants otherwise entitled to recover under any such contract or agreement or under the bond, nor by any fraud practiced by any person other than the claimant seeking to recover on the bond, and that this bond be construed most strongly against the Surety and in favor of all persons for whose benefit such bond is given, and under no circumstances shall Surety be released from liability to those for whose benefit such bond has been given, by reason of any breach of contract between the City and original contractor or on the party of the obligee named in such bond, but the sole conditions of recovery shall be that claimant is a person described in Sections 8400 and 8402 of the California Civil Code and has not been paid the full amount of its claim and that Surety does hereby waive notice of any such change, extension of time, addition, alteration, or modification.
IN WITNESS WHEREOF, we have hereunto set our hands and seals this day of , 20
(Contractor as Principal)
(Seal) By:
(Seal) By:
NOTE: If Contractor is a Partnership, all partners should execute Bond.
IMPORTANT: Surety companies executing Bonds must appear on the Treasury Department's most current list (Circular 570 as amended) and be authorized to transact business in California.
Exhibit 1 299
CITY OF BELL GARDENS
DEPARTMENT OF PUBLIC WORKS
CITYWIDE STRIPING AND MARKINGS
FY 2022-2023
INDEX OF DRAWINGS
DRAWING
NUMBER
DESCRIPTION
C-1
TITLE SHEET AND GENERAL CONSTRUCTION NOTES
C-2
AREA MAP
C-3
CITY MAP
C-4
TRAFFIC STRIPING AND MARKINGS QUANTITIES
GENERAL CONSTRUCTION NOTES:
ALL TRAFFIC LINES AND PAVEMENT MARKINGS SHALL CONFORM TO CALTRANS STANDARD PLANS AND SPECIFICATIONS (LATEST EDITION).
2. REMOVAL OF ALL CONFLICTING LINES AND MARKINGS SHALL BE BY WET SANDBLASTING. REMOVAL OF RAISED PAVEMENT MARKER SHALL BE BY GRINDING.
LANE WIDTHS SHALL BE MEASURED BETWEEN CENTERLINES OF EACH ADJACENT SINGLE OR DOUBLE STRIPE OR TOP OF CURB, FLOW LINE OR EDGE OF PAVEMENT AS APPROPRIATE. BEFORE GRINDING STREET
PAVEMENT SURFACE CONTRACTOR IS TO MEASURE AND VIDEO THE SURFACE FOR USE IN LATER REPLACEMENT OF LINES IN SAME LOCATIONS ON NEW PAVING.
4. PAINT CURB RED AT INTERSECTIONS AND FIRE HYDRANTS WITHIN THE PROJECT LIMITS.
5. ADVANCE STOP LINE SHALL BE PLACED 4 FEET IN ADVANCE OF THE NEAREST CROSSWALK LINE AT CONTROLLED INTERSECTION.
6. FOR ALL STRIPING, STREET PAINTED LEGENDS, AND PAVEMENT MARKINGS, CONTRACTOR IS TO USE CITY FURNISHED STENCIL FRAMES AVAILABLE AT THE PUBLIC WORKS YARD.
7. THE CONTRACTOR SHALL REPAINT ANY EXISTING PAINTED CURBS WITHIN THE PROJECT LIMITS WITH THE SAME COLOR PAINT.
8. ALL TRAFFIC SIGNALS AND SAFETY LIGHTING ARE TO BE MAINTAINED OPERATIONAL TO MEET CITY OF BELL GARDENS TRAFFIC SIGNAL SPECIFICATIONS.
9. ANY EXISTING TRAFFIC LOOP DETECTORS OR TRAFFIC STRIPING ON PAVEMENT THAT MAY BE DAMAGED DURING CONSTRUCTION, SHALL BE REPLACED TO THE SATISFACTION OF THE CITY TRAFFIC ENGINEER.
10. PERMITS TO PERFORM WORK WITHIN THE PUBLIC RIGHT-OF-WAY MUST BE OBTAINED FROM THE CITY OF BELL GARDENS. ALL WORK WITHIN THE PUBLIC RIGHT-OF-WAY MUST BE PERFORMED BY A CONTRACTOR
HOLDING A VALID STATE OF CALIFORNIA CONTRACTOR'S LICENSE AND CITY OF BELL GARDENS BUSINESS LICENSE, SUFFICIENT TO QUALIFY THE CONTRACTOR/ SUBCONTRACTOR TO DO THE WORK. CONTRACTOR MUST HAVE ON FILE WITH THE CITY ENGINEER A CERTIFICATION OF INSURANCE.
Ex
INFRASTRUCTURE
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* t2 _
CITYWIDE STRIPING AND MARKINGS
FY 2022-2023
TITLE SHEET AND GENERAL CONSTRUCTION NOTES
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Location
CITYWIDE STRIPING AND MARKINGS
FY 2022-2023
AREA MAP
C-2
TRAFFIC STRIPING AND MARKING QUANTITIES
No.
2 3
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Agra St
Agra St
Agra St
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From
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Scout Ave
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Ludell St
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INFRASTRUCTURE
ENGINEERS
Exhi
CITYWIDE STRIPING AND MARKINGS
FY 2022-2023
TRAFFIC STRIPING AND MARKINGS QUANTITIES
anZ
C-4
TRAFFIC STRIPING AND MARKING QUANTITIES
No.
31 32
34 37
39 40
41 42
43 44
46 47
49 51
Street
Darwell Ave
Darwell Ave
Eastern
Ave
Eastern
Ave
Eastern
Ave
Eastern
Ave
Eastern
Ave
Eastern
Ave
Eastern
Ave
Eastern
Ave
Eastern
Ave
El Cortez
Ave
El Selinda
Ave
El Selinda
Ave
El Selinda
Ave
Emil Ave
Emil Ave
Emil Ave
Emil Ave
Emil Ave
Emil Ave
Emil Ave
Segment
From
Gage Ave
Lubec St
Northern City
Limits
Gage Ave
Loveland St
Lubec St
Florence Ave
Live Oak
Street
Clara St
Jaboneria St
Cecile St
Loveland St
Watcher Ave
Gage Ave
Lubec St
Gage Ave
Hannon St
Foster Bridge
Blvd
Chamer St
Scout Ave
Florence Ave
Florence PI
Segment
To
Lubec St
Florence
Ave
Gage Ave
Loveland
St
Lubec St
Florence
Ave
Live Oak
St
Clara St
Jaboneria
St
Cecile St
Southem
City Limits
Lubec St
Gage Ave
Lubec St
Florence
Ave
Hannon St
Foster
Bridge
Blvd
Chamer St
Suva St
Florence
Ave
Florence
PI
Cul-De-
Sac
6" Solid Line
(FT)
Y
149
113
0 0
0 0
0 0
0 0
0 998
188
1021
144
53 100
51 60
161
199
56 0
0 282
200
194
572
415
282
389
1162
0 0
0 0
0 0
0 0
0 0
0 8„
solid
Line
(FT)
50 0
416
433
329
2223
555
519
334
308
610
0 0
0 0
0 0
0 0
0 0
6" Skip Line
(FT)
Y
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 623
0 0
0 0
1892
504
1654
2999
1087
1623
1850
1330
0 0
0 0
0 0
0 0
0 0
0 0
Double
Line
(FT)
Y
159
0 0
0 0
0 264
0 0
0 0
0 0
0 52
87 0
0 0
48 103
0 Two -
Way
Left
Turn
Lanes
(FT)
Y
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
Median
Island
Double
Line
(FT)
Y
0 0
0 0
0 16
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
Median
Island
Edge
Line
(FT)
Y
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
52 53
55 56
Felix Ave
Florence
Ave
Florence
Ave
Florence
Ave
Florence
Ave
Garfield Ave
Western City
Limits
Ajax Ave
El Selinda Ave
Jaboneria Rd
INFRASTRUCTURE
ENGINEERS
Ex
t'It 2
Buell St
Ajax Ave
El Selinda
Ave
Jaboneria
Rd
Ira Ave
0 0
0 0
0 0
616
394
416
0 418
240
87 103
0 0
0 0
0 0
1082
2475
2852
1385
192
125
263
0 0
0 0
0 0
0 139
0 0
CITYWIDE STRIPING AND MARKINGS
FY 2022-2023
TRAFFIC STRIPING AND MARKINGS QUANTITIES
30 0
0 0
0 0
C-5
TRAFFIC STRIPING AND MARKING QUANTITIES
No.
57 58
59 Street
Florence
Ave
Florence
Ave
Florence
Ave
Segment
From
Ira Ave
Toler Ave
Perry Rd
Segment
To
Toler Ave
Perry Rd
Emil Ave
6" Solid Line
(FT)
Y
o
a
0 695
872
780
8"
Solid
Line
(FT)
381
371
311
6" Skip Line
(FT)
Y
0 0
0 2771
2579
2271
Double
Line
(FT)
Y
535
476
446
Two -
Way
Left
Turn
Lanes
(FT)
Y
o
0 0
Median
Island
Double
Line
(FT)
Y
o
0 o
Median
Island
Edge
Line
(FT)
Y
o
o
0 60
Florence
Ave
Emil Ave
Scout Ave
0 408
238
0 2386
303
0 0
0 61
62 63
64 65
66 67
68 69
70 Florence
Ave
Florence PI
Florence PI
Florence PI
Florence PI
Florence PI
Florence PI
Foster
Bridge Blvd.
Foster
Bridge Blvd.
Foster
Bridge Blvd.
Foster
Bridge Blvd.
Foster
Bridge Blvd.
Foster
Bridge Blvd.
Foster
Bridge Blvd.
Foster
Bridge Blvd.
Foster
Bridge Blvd.
Foster
Bridge Blvd.
Foster
Bridge Blvd.
Scout Ave
Florence Ave
Garfield Ave
Granger Ave
Perry Rd
Emil Ave
Sudan Ave
Garfield Ave
Granger Ave
Pe mr Rd
Eastem
City Limits
Garfield
Ave
Granger
Ave
Perry Rd
Emil Ave
Sudan Ave
Scout Ave
Granger
Ave
Pe mr Rd
Suva St.
0 0
183
o
0 0
0 0
50 50
208
248
0 200
200
191
205
0 0
0 106
215
118
0 0
0 0
0 0
0 o
o
0 o
0 0
o
0 154
200
1329
541
505
532
1280
889
1699
o
o
o
0 218
206
50 125
542
951
0 159
0 0
0 0
0 0
o
o
0 0
o
9 294
80 0
0 a
o
0 0
0 0
0 o
0 o
o
o
0 0
o
71 72
73 74
75 76
77 Suva St.
Kress Ave
Emil Ave
Priam Dr.
Cassandra Dr.
Chalet Dr.
Scout Ave(N)
Kress Ave
Emil Ave
Priam Dr.
Cassandra
Dr.
Chalet Dr.
Scout Ave
Scout
Ave(S)
Eastem
City Limits
Eastern
Ave
Garfield
Ave
52 100
100
100
100
100
0 0
0 0
o
0 0
0 0
o
o
0 0
0 455
260
250
160
155
140
118
0 0
o
o
o
0 0
0 0
0 0
o
0 0
o
0 0
0 0
0 0
o
o
o
o
0 0
0 0
0 0
o
0 0
0 78
79 80
Fostoria St
Fostoria St
Scout Ave(S)
Jaboneria St
Eastem Ave
m.,. I N FRASTR U CTU RE
�`' ENGINEERS
4 0
0 o
0 o
0 0
o
0 0
0 o
0 a
o
185
340
950
0 o
o
0 o
0 CITYWIDE STRIPING AND MARKINGS
FY 2022-2023
TRAFFIC STRIPING AND MARKINGS QUANTITIES
+"� _. •anti _
0 o
o
C-6
Exhi
TRAFFIC STRIPING AND MARKING QUANTITIES
Ex
No,
81 82
83 84
86 87
88 89
90 91
93 94
95 97
100
101
102
103
104
105
106
107
108
109
110
Street
Fostoria St
Fry St
Fry St
Fry St
Fry St
Gage Ave
Gage Ave
Gage Ave
Gage Ave
Gage Ave
Gage Ave
Gage Ave
Gage Ave
Gage Ave
Gage Ave
Gage Ave
Gage Ave
Gage Ave
Gallant St
Gallant St
Garfield
Ave
Garfield
Ave
Garfield
Ave
Garfield
Ave
Garfield
Ave
Garfield
Ave
Garfield
Ave
Gephart St
Gephart St
Gilliland
Ave
Segment
From
Garfield Ave
Eastern Ave
Perry Rd
Emil Ave
Jaboneria St
Western City
Limits
Eastern Ave
Ajax Ave
El Selinda Ave
Colmar Ave
Jaboneria Rd
Damell Ave
Garfield Ave
Peny Rd
Emil Ave
Chalet Dr.
Agra St
Lento St
Jaboneria St
Garfield Ave
Florence PI
Gage Ave
Loveland St
Florence Ave
Clara St
Quinn St
Cecilia St
Priory St
Gotham St
Gallant St
INFRASTRUCTURE
ENGINEERS
2 _
Segment
To
Scout Ave
Parking Lot
Emil Ave
Scout Ave
Ira Ave
Eastern
Ave
Ajax Ave
El Selinda
Ave
Colmar
Jaboneria
Rd
Darwell
Ave
Garfield
Ave
Pe m Rd
Emil Ave
Chalet Dr.
Agra St
Lanto St
Greenwood
Ave
Ira Ave
Ramish
Ave
Florence
Ave
Loveland
St
Florence PI
Clara St
Quinn St
Cecilia St
Southern
City Limits
Gotham St
Muller St
Park Ln
6" Solid Line
(FT)
Y
0 49
74 197
0 0
0 0
0 0
0 0
0 0
0 0
0 0
192
102
0 0
0 0
0 0
0 300
188
0 0
0 0
0 488
175
182
183
191
381
236
133
104
299
82 91
122
0 0
218
214
208
192
352
350
550
0 0
0 8"
Solid
Line
(FT)
0 49
0 0
0 285
176
96 145
182
180
353
210
197
101
332
0 95
0 0
224
292
554
498
574
252
962
0 0
0 6" Skip Line
(FT)
Y
0 0
1089
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 442
470
0 0
0 0
0 0
1347
513
1255
1248
2281
764
1499
1334
2017
1715
2246
514
0 0
361
2522
2555
2485
2576
1080
1990
0 0
0 Double
Line
(FT)
Y
470
0 0
0 101
516
128
221
477
1238
578
475
0 324
775
242
0 0
0 0
0 0
0 0
0 0
0 0
0 Two -
Way
Left
Turn
Lanes
(FT)
Y
0 0
0 0
0 0
0 0
0 0
250
130
0 242
0 0
0 0
0 496
0 0
0 0
0 0
0 0
Median
Island
Double
Line
(FT)
Y
0 0
0 0
0 391
211
492
238
0 0
0 47
0 210
573
302
0 0
0 0
0 7
0 0
0 0
0 0
0 Median
Island
Edge
Line
(FT)
CITYWIDE STRIPING AND MARKINGS
FY 2022-2023
TRAFFIC STRIPING AND MARKINGS QUANTITIES
Y
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
C-7
TRAFFIC STRIPING AND MARKING QUANTITIES
No.
111
112
113
114
115
116
Street
Gotham St
Gotham St
Gotham St
Granger
Ave
Granger
Ave
Granger
Ave
Segment
From
BeII Gardens
Ave
Jaboneria St
Gilliland Ave
Foster Bridge
Blvd
Loveland St
Florence PI
Segment
To
Eastem
Ave
Ira Ave
Scout Ave
Loveland
St
Florence
PI
Florence
Ave
6" Solid Line
(FT)
Y
o
200
o
1266
65 113
0 0
o
o
0 0
8„
Solid
Line
(FT)
0 0
0 0
o
0 6" Skip Line
(FT)
Y
o
1950
0 0
0 0
0 0
0 o
o
o
Double
Line
(FT)
Y
50 0
o
o
1221
o
Two -
Way
Left
Turn
Lanes
(FT)
Y
0 o
o
o
0 o
Median
Island
Double
Line
(FT)
Y
0 0
o
o
0 0
Median
Island
Edge
Line
(FT)
Y
o
0 0
o
0 o
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
Greenwood
Ave
Hannon St
Hannon St
Hannon St
Hannon St
Hannon St
Hannon St
Ira Ave
Ira Ave
Ira Ave
Ira Ave
Ira Ave
Jaboneria
Rd
Jabonera
Rd
Jaboneria
Rd
Jaboneria
Rd
Gage Ave
Peny Rd
Kress Ave
Emil Ave
Priam Dr.
Cassandra Dr.
Chalet Dr.
Gage Ave
Lubec St
Florence Ave
Fry St
Clara St
Watcher Ave
Gage Ave
Lubec St
Ludell St
END
Kress Ave
Emil Ave
Priam Dr.
Cassandra
Dr.
Chalet Dr.
Scout Ave
Lubec St
Florence
Ave
Fry St
Clara St
Garfield
Ave
Gage Ave
Lubec St
Ludell St
Fry St
0 50
50 0
0 o
50 187
45 0
0 0
190
62 0
0 0
0 0
0 0
o
0 o
0 0
o
0 0
0 0
0 0
0 0
0 0
0 o
0 o
0 51
78 0
158
435
0 0
0 0
0 0
1578
892
0 600
480
418
1238
676
123
o
0 0
0 0
0 o
0 0
0 0
0 0
0 0
0 45
0 0
450
270
230
92 0
49 376
450
196
181
327
0 443
0 0
0 o
o
o
0 0
o
o
0 0
0 0
0 0
0 0
0 0
0 o
0 o
0 0
0 0
0 0
0 0
0 0
0 0
o
o
0 0
o
0 0
o
0 o
0 0
133
134
135
136
137
138
139
140
Exh
Jaboneria
St
Jaboneria
St
Jaboneria
St
Jaboneria
St
Kress Ave
Kress Ave
Lanto St
Lento St
Fry St
Priory St
Gotham St
Muller St
Foster Bridge
Blvd
Florence Ave
Cul-de-sac
Ajax Ave
INFRASTRUCTURE
ENGINEERS
Priory St
Gotham St
Muller St
Shull St
Hannon St
Clara St
Specht
Ave
Colmar
Ave
200
230
0 79
o
203
0 0
0 0
0 0
o
0 0
0 0
0 0
o
0 0
960
490
990
655
0 o
o
0 0
0 o
o
0 o
0 0
0 400
250
250
0 0
0 o
o
0 0
0 0
o
0 0
0 0
0 o
o
0 a
0 CITYWIDE STRIPING AND MARKINGS
FY 2022-2023
TRAFFIC STRIPING AND MARKINGS QUANTITIES
arr/
o
0 0
o
o
0 o
o
C-8
TRAFFIC STRIPING AND MARKING QUANTITIES
No.
141
142
143
144
145
148
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
165
166
167
168
169
170
Street
Lanto St
Live Oak
st
Live Oak
St
Live Oak
St
Live Oak
St
Loveland
St
Loveland
St
Loveland
St
Loveland
St
Loveland
St
Loveland
St
Loveland
St
Loveland
St
Loveland
St
Loveland
St
Loveland
St
Lubec St
Lubec St
Lubec St
Lubec St
Lubec St
Lubec St
Ludell St
Ludell St
Lynda Ln
Marlow
Ave
Muller St
Muller St
Otto St
Park Ln
Segment
From
Jabonena Rd
Florence Ave
Emil Ave
Eastern Ave
Jabonena St
Seltland Ave
Eastem Ave
Ajax Ave
EI Selinda Ave
Colmar Ave
Jaboneria Rd
Darwell Ave
Toler Ave
Garfield Ave
Granger Ave
Peny Rd
Marlow Ave
Eastern Ave
Ajax Ave
EI Selinda Ave
Colmar Ave
Jaboneria Rd
Ajax Ave
EI Selinda Ave
Cul-DeSac
Cul-de-sac
Jaboneria St
Eastern Ave
Emil Ave
Garfield Ave
Segment
To
Darwell
Ave
INFRASTRUCTURE
ENGINEERS
Ex
jbrt 2
Emil Ave
Scout Ave
Purdy Ave
Ira Ave
Eastem
Ave
Ajax Ave
EI Selinda
Ave
Colmar
Ave
Jaboneria
Rd
Darwell
Ave
Toler Ave
Garfield
Ave
Granger
Ave
Perry Rd
Suva St
Eastern
Ave
Ajax Ave
El Selinda
Ave
Colmar
Ave
Jabonena
Rd
Darwell
Ave
EI Selinda
Ave
Jabonena
Rd
Quinn St
Loveland
St
Eastem
Ave
Garfield
Ave
Cul-De-
Sac
Rarnish
Ave
6" Solid Line
(FT)
Y
0 119
1138
100
200
188
200
152
429
51 140
116
187
61 0
87 190
102
201
201
0 600
0 51
244
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 440
0 0
0 0
0 0
0 0
0 0
0 100
0 0
8"
Solid
Line
(FT)
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 6" Skip Line
(FT)
Y
0 0
0 0
0 521
219
490
470
726
240
650
0 0
0 0
0 0
0 0
0 0
270
0 1483
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
Double
Line
(FT)
Y
0 0
0 0
72 89
0 95
93 313
220
0 0
52 0
0 0
0 0
0 1782
150
130
55 Two -
Way
Left
Turn
Lanes
(FT)
Y
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 a
0 0
0 0
0 0
0 0
Median
Island
Double
Line
(FT)
Y
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 Median
Island
Edge
Line
(FT)
CITYWIDE STRIPING AND MARKINGS
FY 2022-2023
TRAFFIC STRIPING AND MARKINGS QUANTITIES
Y
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 C-9
TRAFFIC STRIPING AND MARKING QUANTITIES
No.
171
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
187
188
189
190
191
192
193
194
196
197
198
199
200
Street
Penv Rd
Perry Rd
Perry Rd
Penv Rd
Pe nv Rd
Priam Dr.
Priam St
Priory St
Priory St
Priory St
Purdy
Ave
Purdy
Ave
Quinn St
Quinn St
Ramish
Ave
Ramish
Ave
Scout Ave
Scout Ave
Scout Ave
Scout Ave
Scout Ave
Scout St
Shull St
Shull St
Shull St
Specht
Ave
Specht
Ave
Specht
Ave
Specht St
Sudan
Ave
Segment
From
Florence Ave
Gage Ave
Foster Bridge
Blvd
Loveland St
Florence Ave
Foster Bridge
Blvd
Clara St
VNestem City
Limits
Eastem Ave
Jaboneria St
Loveland St
Live Oak Street
Bell Garden
Ave
Jaboneria St
Clara St
Clara St
Hannon St
Foster Bridge
Blvd
Ramish Ave
Florence Ave
Florence PI
Fostoria St
Jaboneria St
Eastem Ave
Garfield Ave
Watcher St
Gage Ave
Loveland St
Cecilia St
Live Oak St
4 INFRASTRUCTURE
ENGINEERS
Segment
To
Clara St
Foster
Bridge
Blvd
Loveland
St
Florence PI
Florence PI
Hannon St
End
Eastem
Ave
Jaboneria
St
Ira Ave
Ludell St
Priory St
Jaboneria
St
Garfield
Ave
Park Ln
CuI-De-
Sac
Foster
Bridge
Blvd
Suva St.
Florence
Ave
Florence PI
Suva St
Shull St
Eastern
Ave
Garfield
Ave
Scout Ave
Gage Ave
Loveland
St
Lubec St
Cul-De-
Sac
Florence PI
6" Solid Line 8"
(FT) Solid
Line
(FT)
Y
0 106
176
100
154
100
203
192
1450
194
0 100
0 104
0 54
0 129
0 0
0 0
0 0
81 61
0 0
214
o 0
o 0
O o
0 a 0
O 0
o 0
o 0
o 0
4080 0
o 0
873 0
184 0
O 79
93 o
o o
O o
o o
O o
0 o o
o 0
o o
0 6" Skip Line
(FT)
Y
o
370
1035
321
0 0
0 830
0 765
390
556
0 o
0 0
0 804
0 0
0 0
o
0 o
0 0
0 0
o
0 0
0 0
0 0
0 0
0 0
0 0
0 0
940
0 0
1199
o
0 o
0 o
o
o
0 0
Double
Line
(FT)
Y
80 0
0 184
0 0
0 0
0 0
2100
o
0 60
405
447
649
o
296
100
150
0 0
0 0
Two -
Way
Left
Turn
Lanes
(FT)
Y
o
0 0
0 0
0 0
0 0
0 0
0 0
0 o
0 0
0 0
1214
0 0
0 0
0 0
0 0
0 o
Median
Island
Double
Line
(FT)
Y
o
0 o
0 0
0 0
0 0
0 o
0 0
0 0
0 0
o
o
170
o
0 0
0 0
o
0 o
0 0
CITYWIDE STRIPING AND MARKINGS
FY 2022-2023
TRAFFIC STRIPING AND MARKINGS QUANTITIES
Median
Island
Edge
Line
(FT)
Y
o
0 o
0 0
0 0
0 0
0 0
0 0
0 0
0 0
0 o
0 o
0 0
0 0
o
0 0
0 o
C-10
Exhi
err
TRAFFIC STRIPING AND MARKING QUANTITIES
No.
Street
Segment
From
Segment
To
6" Solid
(FT)
Line
8"
Solid
Line
(FT)
6" Skip
(FT)
Line
Double
Line
(FT)
Two-
Way
Left
Turn
Lanes
(FT)
Median
Island
Double
Line
(FT)
Median
Island
Edge
Line
(FT)
Y
W
W
Y
W
Y
Y
Y
Y
201
Sun Ln
Specht Ave
Lo
103
0 0
0 0
0 0
0 0
202
Suva St.
9lvd Foster Bridge
Emil Ave
158
0 0
972
0 0
0 0
50 203
Suva St.
Emil Ave
Scout Ave
90 0
0 1440
0 0
0 0
0 204
Suva St.
Scout Ave
Eastern
City Limits
0 0
0 0
0 181
0 0
0 205
Toler Ave
End
Florence PI
154
0 0
0 0
1603
0 0
0 206
Toler Ave
Florence Ave
End
60 0
0 0
0 0
0 0
0 207
Watcher
St
Western City
Limits
Eastern 95
Ave
0 0
0 0
48 0
0 0
208
Watcher
St
Eastern Ave
El Selinda
Ave
143
0 0
857
0 97
0 0
0 209
St
El Selinda Ave
Ave Colmar
Ave
48 523
0 545
0 282
0 0
0 210
Watcher
St
Jaboneria Rd
Darwell
Ave
166
132
454
0 0
305
0 0
0 TRAFFIC STRIPING AND MARKING QUANTITIES TOTALS
6" Solid Line
(FT)
8" Solid Line
(FT)
6" Skip
(FT)
Line
Double
Line
(FT)
Two -Way Left
Turn Lanes
(FT)
Median
Island
Double Line
(FT)
Median
Island Edge
Line
(FT)
Y
W
W
Y
W
Y
Y
Y
Y
22342
21091
15795
33971
70520
37939
4914
6580
50 INFRASTRUCTURE
ENGINEERS
Ex
CITYWIDE STRIPING AND MARKINGS
FY 2022-2023
TRAFFIC STRIPING AND MARKINGS QUANTITIES
gin
C-11
Exhibit 2 311
CITY OF BELL GARDENS
OFFICE OF THE CITY MANAGER
AGENDA REPORT
Item 16.
TO:
FROM:
BY:
Honorable Mayor and City Council Members
Michael B. O'Kelly, City Manager
Stephanie Vasquez, City Attorney
Kristopher Daams, Deputy City Attorney
SUBJECT: ADOPT A RESOLUTION AUTHORIZING PARTICIPATION IN THE OPIOID NATIONAL SETTLEMENTS ARISING OUT OF IN RE: NATIONAL PRESCRIPTION OPIATE LITIGATION, U.S. DISTRICT COURT, NORTHERN DISTRICT OF OHIO EASTERN DIVISION, CASE NO. 1:17 -MD -02804
DATE: April 10, 2023
RECOMMENDATION:
It is staff's recommendation that the City Council adopt the attached resolution authorizing the City to:
1. Enter into five national opioids litigation settlement agreements with Teva, Allergan, CVS, Walgreens, and Walmart;
2. Agree to the terms of the related State -Subdivision agreements; and
3. Authorize entry into the related State -Subdivision agreements with the Attorney General.
BACKGROUND/DISCUSSION:
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 opioid epidemic's local impacts. These national litigation matters are and were being handled as a multi -district litigation matter 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 and settlement payments have commenced.
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 non -litigating public entities to join in the settlements in exchange for a release against these five settling defendants. 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 anywhere from 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 (70%) ($1.26 billion) 312
targeted for local governments. The funds intended for local governments are known as the "Abatement Fund." Eligible cities that decline participating 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. At least half of the funds must be spent on "high impact abatement activities" as described in the California State -Subdivision Agreements, which delineate how opioid settlement funds can be spent.
The five high impact abatement activities are as follows:
• Provision of matching funds or operating costs for substance use disorder facilities within the Behavioral Health Continuum Infrastructure Program;
• Creating new or expanded Substance Use Disorder (SUD) treatment infrastructure; • Addressing the needs of communities of color and vulnerable populations (including sheltered and unsheltered homeless populations) that are disproportionately impacted by SUD; • Diversion of people with SUD from the justice system into treatment, including by providing training and resources to first and early responders (sworn and unsworn) and implementing best practices for outreach, diversion and deflection, employability, restorative justice, and harm reduction; and/or • Interventions to prevent drug addiction in vulnerable youth.
City's Prospective Settlement Funds
It is currently unknown exactly how much the City of Bell Gardens could receive from these five settlement agreements. It is also unknown when the settlement administrator will begin making settlement payments to cities.
However, as settlement funds have previously been distributed to California cities under the Distributors and Jansen settlements, settlement payments are expected to commence more expeditiously.
Each California city is allocated a percentage of the approximately $1.26 billion Abatement Fund. These percentages are set forth in Appendix 1 of each of the State -Subdivision Agreements. The City's share of the California Abatement Fund is anticipated to be a product of the Abatement Fund total multiplied by the City's percentage.
Appendix 1 identifies the City's Abatement Percentage as 0.014 percent. Thus, a rough calculation results in a very approximate, total payout figure of $176,400.00 to the City. However, staff cautions that this unofficial figure is most likely subject to change and should not be relied on for official purposes.
CONCLUSION:
The City Council's adoption of the attached Resolution and entering into the agreements will result in increased financial resources to battle the opioid epidemic's local impacts.
As such, staff recommends that the City Council adopt the attached Resolution 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, 313
Walgreens, and Walmart) and any and all documents ancillary thereto.
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.
FISCAL IMPACT:
If approved, the City will become eligible to receive funds for opioid abatement purposes, in an amount to be determined.
ATTACHMENTS:
Exhibit 1 - Resolution No. 2023-27
Exhibit 2 - Subdivision and Special District Settlement Participation Form — Allergan Settlement Exhibit 3 - Subdivision and Special District Settlement Participation Form — Teva Settlement Exhibit 4 - Subdivision and Special District Settlement Participation Form — CVS Settlement Exhibit 5 - Subdivision and Special District Settlement Participation Form — Walgreens Settlement Exhibit 6 - F. Subdivision and Special District Settlement Participation Form — Walmart Settlement Exhibit 7 - Proposed California State -Subdivision Agreement Regarding Distribution and Use of Settlement Funds — Allergan Settlement
Exhibit 8 - Proposed California State -Subdivision Agreement Regarding Distribution and Use of Settlement Funds — Teva Settlement
Exhibit 9 - Proposed California State -Subdivision Agreement Regarding Distribution and Use of Settlement Funds — CVS Settlement
Exhibit 10 - Proposed California State -Subdivision Agreement Regarding Distribution and Use of Settlement Funds — Walgreens Settlement
Exhibit 11 - Proposed California State -Subdivision Agreement Regarding Distribution and Use of Settlement Funds — Walmart Settlement
APPROVED ELECTRONICALLY BY:
Michael B. O'Kelly, City Manager
Stephanie Vasquez, City Attorney and/or Susie Altamirano, Assistant Attorney Manuel Carrillo, Director of Finance and Administrative Services 314
RESOLUTION NO. 2023-27
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BELL
GARDENS, CALIFORNIA, COUNTY OF LOS ANGELES, 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
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 MDL plaintiffs 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 MDL plaintiffs 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 and CVS Pharmacy, Inc. and all of their past and present direct and indirect parent and subsidiaries (collectively, "CVS"); and
Exhibit 1
1 315
Resolution No. 2023-27
WHEREAS, on or about December 9, 2022, a proposed nationwide tentative settlement was reached between the plaintiffs in the MDL and Walgreens 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 State - Subdivision 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 WHEREAS, the City is eligible to participate in the Settlement and become a CA Participating Subdivision; and
2 of 4
Exhibit 1 316
Resolution No. 2023-27
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 by the City Council of the City of Bell Gardens as follows:
SECTION 1. The City Council finds that the above recitals are true and correct and incorporate them herein.
SECTION 2. The City Council hereby approves and authorizes the City Manager 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.
SECTION 3. The City Council further authorizes and directs the City Manager and staff to take all actions necessary and appropriate to implement and effectuate the intent of the City Council as set forth in this Resolution.
SECTION 4. The City Clerk shall attest and certify to the passage and adoption of this Resolution and enter it into the book of original resolutions, and it shall become effective immediately upon approval.
3 of 4
Exhibit 1 317
Resolution No. 2023-27
PASSED, APPROVED, AND ADOPTED this 10th day of April 2023.
THE CITY OF BELL GARDENS
Alejandra Cortez, Mayor
APPROVED AS TO FORM: ATTEST:
Stephanie Vasquez
City Attorney
4 of 4
Daisy Gomez
City Clerk
Exhibit 1 318
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO
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 [ ] No
Governmental Entity: Bell Gardens city State: CA
Authorized Signatory: Michael B. O'Kelly
Address 1: 7100 Garfield Ave
Address 2:
City, State, Zip: Bell Gardens, CA 90201
Phone: 562-806-7700
Email: [email protected]
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.
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://hationalo)ioidsettlement.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.
Exhibit 2 319
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO
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 Allergan Settlement.
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 Exhibit 2 320
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO I have all necessary power and authorization to execute this Settlement Participation Form on behalf of the Governmental Entity.
Signature:
Name: Michael B. O'Kelly
Title: City Manager
Date: April 10, 2023
Exhibit 2 321
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO Exhibit K
Subdivision and Special District Settlement Participation Form Governmental Entity: Bell Gardens city State: CA
Authorized Signatory: Michael B. 0'Kelly
Address 1: 7100 Garfield Ave
Address 2:
City, State, Zip: Bell Gardens, CA 90201
Phone: 562-806-7700
Email: [email protected]
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.
. 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 littps://nationalwioidscttlement.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.
Exhibit 3 322
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO
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:
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 Teva Settlement.
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.
Exhibit 3 323
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO I have all necessary power and authorization to execute this Election and Release on behalf of the Governmental Entity.
Signature:
Name:
Title:
Date:
Michael B. O'Kelly
City Manager
April 10, 2023
Exhibit 3 324
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO
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 [ ] No
Governmental Entity: Be11 Gardens city State: CA
Authorized Signatory: Michael B. O'Kelly
Address 1: 7100 Garfield Ave
Address 2:
City, State, Zip: Bell Gardens, CA 90201
Phone: 562-806-7700
Email: [email protected]
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 ht s://nationalopioidscttlement,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.
Exhibit 4 325
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO
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.
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 CVS Settlement.
2 Exhibit 4 326
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO
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:
Name:
Title:
Date:
3 Exhibit 4 327
Michael B. O'Kelly
City Manager
April 10, 2023
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO
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 [ ] No
Governmental Entity: Bell Gardens city State: CA
Authorized Signatory: Michael B. O'Kelly
Address 1: 7100 Garfield Ave
Address 2:
City, State, Zip: Bell Gardens, CA 90201
Phone: 562-806-7700
Email: [email protected]
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 teiu s 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.
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 ht s://nationalopioidscttlement,com.
3. The Governmental Entity agrees to the telilis 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.
Exhibit 5 328
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO
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.
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 Walgreens Settlement. 2 Exhibit 5 329
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO
11. Nothing herein is intended to modify in any way the tell _ is 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:
Name: Michael B. O'Kelly
Title: City Manager
Date: April 10, 2023
3 Exhibit 5 330
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO
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 [ ] No
Governmental Entity: Bell Gardens city State: CA
Authorized Official: Michael B. O'Kelly
Address 1: 7100 Garfield Ave
Address 2:
City, State, Zip: Bell Gardens, CA 90201
Phone: 562-806-7700
Email: [email protected]
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 httas://nationalopioiAsettlement.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 Exhibit 6 331
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO
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 Walmart Settlement.
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:
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 Walmart Settlement.
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 Exhibit 6 332
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO I have all necessary power and authorization to execute this Election and Release on behalf of the Governmental Entity.
Signature:
Name:
Title:
Date:
3 Michael B. O'Kelly
City Manager
Apri
'0. 2023
Exhibit 6 333
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO 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.' 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 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.
Exhibit 7 3134
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO f) Walgreens Settlement Agreement means the Walgreens Settlement Agreement dated December 9, 2022, and any revision thereto.
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.
g)
j)
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.
Opioid Defendant means any defendant (including but not limited to Teva Phainiaceutical 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 VIIJ(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
Exhibit 75
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO 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.
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 Allergan 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
3 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.
Exhibit 76
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO 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 haiin reduction; and/or
(5) interventions to prevent drug addiction in vulnerable youth.
Exhibit 7 8437
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO 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 Exhibit 7 3538
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO 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 Exhibit 7 A9
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO 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 Allergan 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 Allergan 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 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.
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 Allergan Settlement Agreement and this CA Allergan Allocation Agreement. The report will be in a form reasonably deteiiiiined by DHCS. Prior to specifying the foiin of the report DHCS will confer with representatives of the Plaintiff Subdivisions.
Exhibit 7
340
DocuSign Envelope ID: 795FC822-B55C-4BAB-8EC7-006F26F85FD0 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.
Exhibit 7
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO The undersigned, Bell Gardens city, ACKNOWLEDGES acceptance of this Proposed California State -Subdivision 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
Signature:
Naive:
Title:
Date:
Exhibit 7 3942
Michael B. O'Kelly
City Manager
April 10, 2023
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO 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 one - hundred percent (100%) of the combined and weighted allocation of the Abatement Percentage and the Plaintiff Subdivision Percentage.
Exhibit 7 343
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO APPENDIX 1
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%
Exhibit 7
344
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DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO APPENDIX 1
Participating
Subdivision
Classification
Participating Subdivision
County
Abatement
Percentage
Plaintiff
Subdivision
Percentage '
Weighted
Alication
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%
Exhibit 7
345
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DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO APPENDIX 1
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
Im peri al
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
Lake Sort
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%
Exhibit 7
346
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DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO APPENDIX 1
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
Be11
Los Angeles
0.008%
0.0068783%
City
Bellflower
Los Angeles
0.002%
0.0014485%
City
Be11 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
0.01.0%
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%
Exhibit 7
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DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO APPENDIX 1
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%
0.01.90667%
City
Inglewood
Los Angeles
0.059%
0.0489195%
City
La Canada 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%
0.001.9269%
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%
0.00531.02%
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%
Exhibit 7
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DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO APPENDIX 1
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%
0.01.04837%
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
0.1.58%
0.1.29851.3%
City
Sierra Madre
Los Angeles
0.006%
0.0048646%
City
Signal Hi11
Los Angeles
0.010%
0.0084884%
City
South E1 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
Temlle 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
Larks Dur
Marin
0.015%
0.0124697%
City
Mi11 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%
Exhibit 7
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DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO APPENDIX 1
Participating
Subdivision
Classification
Participating Subdivision
County
Abatement
Percentage
Plaintiff
Subdivision
Percentage '
Weighted
Allcatlon
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
Nana
0.288%
0.352%
0.2994325%
City
American Canyon
Napa
0.017%
0.0136869%
City
Na la
Nana
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%
Exhibit 7
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DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO APPENDIX 1
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%
Exhibit 7
351
8of15
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO APPENDIX 1
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%
0.21.28729%
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 S Brings
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
Juru la 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%
Exhibit 7
352
9of15
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO APPENDIX 1
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
0.1.06%
0.130%
0.1.1.01.41.7%
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
A 3 31e 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
Yucaila
San Bernardino
0.016%
0.0128772%
Exhibit 7
353
10 of 15
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-006F26F85FD0 APPENDIX 1
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 Ca'on
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 Joacuin
1.680%
2.055%
1.7460399%
City
Lathrop
San Joacuin
0.009%
0.0075394%
City
Lodi
San Joacuin
0.053%
0.0439484%
City
Manteca
San Joacuin
0.054%
0.0443454%
City
RiDon
San Joacuin
0.013%
0.0104219%
City
Stockton
San Joacuin
0.313%
0.383%
0.3256176%
City
Tracy
San Joacuin
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 Obis 3O
0.029%
0.0240680%
Exhibit 7
354
11of15
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-006F26F85FD0 APPENDIX 1
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 Obis Do
0.017%
0.0137881%
City
Morro Bay
San Luis Obispo
0.020%
0.0160922%
City
San Luis Obis 3O
San Luis Obis 3O
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
0.01.9%
0.01.52537%
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
0.01.6%
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%
Exhibit 7
355
12 of 15
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO APPENDIX 1
Participating
Subdivision
Classification
Participating Subdivision
County
Abatement
Percentage
Plaintiff
Subdivision
Percentage '
Weighted
Alication
Percentage
City
Los Altos
Santa Clara
0.013%
0.0103338%
City
Los Gatos
Santa Clara
0.013%
0.01.03220%
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
Valle'o
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%
Exhibit 7
356
13 of 15
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO APPENDIX 1
Participating
Subdivision
Classification
Participating Subdivision
County
Abatement
Percentage
Plaintiff
Subdivision
Percentage '
Weighted
Alication
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%
Exhibit 7
357
14 of 15
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO APPENDIX 1
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%
0.01.74145%
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%
0.371331.9%
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%
0.01.12079%
Exhibit 7 358
15of15
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO APPENDIX 2
Cost Reimbursement Procedure
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.
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.
Exhibit 7 3159
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO 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.
Exhibit 7 3260
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO 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.
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 awarc Exhibit 7 Al
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO 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.
Exhibit 7 812
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO 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 Back - Stop 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 Back - Stop 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]
[DATE]
[DATE]
[SUBDIVISION SIGNATURE BLOCK]
[COUNSEL SIGNATURE BLOCK]
[ATTORNEY GENERAL SIGNATURE BLOCK]
Exhibit 7 363
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO 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.' 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 1.0,000. 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.
Exhibit 8 3J64
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO j)
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.
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 Phanna 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,' pursuant 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.
Exhibit 8 A5
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO 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
Exhibit 8 3%6
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO 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.
Exhibit 8 367
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO 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.
Exhibit 8
3%8
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO C. CA Subdivision Fund
Fifteen percent of the total Settlement Fund payments will be allocated to the CA Subdivision Fund. A11 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 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 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, Exhibit 8 A9
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO 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.
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.
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 Teva Settlement Agreement and this CA Teva 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.
Exhibit 8 370
DocuSign Envelope ID: 795FC822-B55C-4BAB-8EC7-006F26F85FD0 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 peluiitted 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.
Exhibit 8
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO The undersigned, Bell Gardens city, ACKNOWLEDGES acceptance of this Proposed California State -Subdivision 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
Signature:
Naive:
Title:
Date:
Exhibit 8 3972
Michael B. O'Kelly
City Manager
April 10, 2023
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO 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.
Exhibit 8 373
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO APPENDIX 1
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%
Exhibit 8
374
1 of 15
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO APPENDIX 1
Participating
Subdivision
Classification
Participating Subdivision
County
Abatement
Percentage
Plaintiff
Subdivision
Percentage '
Weighted
Alication
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%
Exhibit 8
375
2 of 15
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO APPENDIX 1
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
Im Derial
Im peri al
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
Lake Sort
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%
Exhibit 8
376
3of15
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO APPENDIX 1
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
Be11
Los Angeles
0.008%
0.0068783%
City
Bellflower
Los Angeles
0.002%
0.0014485%
City
Be11 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
0.01.0%
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%
Exhibit 8
377
4 of 15
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO APPENDIX 1
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%
0.01.90667%
City
Inglewood
Los Angeles
0.059%
0.0489195%
City
La Canada 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%
0.001.9269%
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%
0.00531.02%
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%
Exhibit 8
378
5 of 15
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO APPENDIX 1
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%
0.01.04837%
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
0.1.58%
0.1.29851.3%
City
Sierra Madre
Los Angeles
0.006%
0.0048646%
City
Signal Hi11
Los Angeles
0.010%
0.0084884%
City
South E1 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
Temlle 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
Larks Dur
Marin
0.015%
0.0124697%
City
Mi11 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%
Exhibit 8
379
6of15
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO APPENDIX 1
Participating
Subdivision
Classification
Participating Subdivision
County
Abatement
Percentage
Plaintiff
Subdivision
Percentage '
Weighted
Allcatlon
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
Nana
0.288%
0.352%
0.2994325%
City
American Canyon
Napa
0.017%
0.0136869%
City
Na la
Nana
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%
Exhibit 8
380
7 of 15
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO APPENDIX 1
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%
Exhibit 8
381
8 of 15
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO APPENDIX 1
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%
0.21.28729%
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 S Brings
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
Juru la 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%
Exhibit 8
382
9of15
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO APPENDIX 1
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
0.1.06%
0.130%
0.1.1.01.41.7%
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
A 3 31e 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
Yucaila
San Bernardino
0.016%
0.0128772%
Exhibit 8
383
10 of 15
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-006F26F85FD0 APPENDIX 1
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 Ca'on
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 Joacuin
1.680%
2.055%
1.7460399%
City
Lathrop
San Joacuin
0.009%
0.0075394%
City
Lodi
San Joacuin
0.053%
0.0439484%
City
Manteca
San Joacuin
0.054%
0.0443454%
City
RiDon
San Joacuin
0.013%
0.0104219%
City
Stockton
San Joacuin
0.313%
0.383%
0.3256176%
City
Tracy
San Joacuin
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 Obis 3O
0.029%
0.0240680%
Exhibit 8
384
11of15
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-006F26F85FD0 APPENDIX 1
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 Obis Do
0.017%
0.0137881%
City
Morro Bay
San Luis Obispo
0.020%
0.0160922%
City
San Luis Obis 3O
San Luis Obis 3O
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
0.01.9%
0.01.52537%
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
0.01.6%
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%
Exhibit 8
385
12 of 15
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO APPENDIX 1
Participating
Subdivision
Classification
Participating Subdivision
County
Abatement
Percentage
Plaintiff
Subdivision
Percentage '
Weighted
Alication
Percentage
City
Los Altos
Santa Clara
0.013%
0.0103338%
City
Los Gatos
Santa Clara
0.013%
0.01.03220%
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
Valle'o
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%
Exhibit 8
386
13 of 15
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO APPENDIX 1
Participating
Subdivision
Classification
Participating Subdivision
County
Abatement
Percentage
Plaintiff
Subdivision
Percentage '
Weighted
Alication
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%
Exhibit 8
387
14 of 15
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO APPENDIX 1
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%
0.01.74145%
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%
0.371331.9%
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%
0.01.12079%
Exhibit 8 388
15 of 15
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO APPENDIX 2
Cost Reimbursement Procedure
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.
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.
Exhibit 8 3189
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO 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.
Exhibit 8 3290
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO 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.
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 Exhibit 8 Al
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO 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.
Exhibit 8 A2
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO 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 Teva 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 Back - Stop Agreement as that term is used in the Order and in Exhibit R (Agreement on Attorneys' Fees, Costs, and Expenses) of the Teva Settlement Agreement.
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 Back - Stop 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]
[DATE]
[DATE]
[SUBDIVISION SIGNATURE BLOCK]
[COUNSEL SIGNATURE BLOCK]
[ATTORNEY GENERAL SIGNATURE BLOCK]
Exhibit 8 31)3
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO Proposed California State -Subdivision Agreement
Regarding Distribution and Use of
Settlement Funds — CVS Settlement
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.
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.
g)
i) Plaintiff Subdivision means a Subdivision located in California, other than a CA Exhibit 9 3194
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO j)
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.
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,' 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 teiln "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.
Exhibit 9 3295
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO 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 CVS 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 CVS 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.
Exhibit 9 3�6
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO 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 foiin agreements or
Exhibit 9 A7
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO 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 infoimation 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.
Exhibit 9
A8
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO C. CA Subdivision Fund
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 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 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 Exhibit 9 A9
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO 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.
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.
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.
Exhibit 9 4730
DocuSign Envelope ID: 795FC822-B55C-4BAB-8EC7-006F26F85FD0 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 pei witted 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.
Exhibit 9
4�1
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO The undersigned, Bell Gardens city, ACKNOWLEDGES acceptance of this Proposed California State -Subdivision 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
Signature:
Name:
Title:
Date:
Exhibit 9 4%2
Michael B. O'Kelly
City Manager
April 10, 2023
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO 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.
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.
Exhibit 9 403
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO APPENDIX 1
100.000% 100.000%
100.000%
Participating
Subdivision
Classification
Participating Subdivision
County
Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Ailcation
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
Liveriiiore
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%
1 of 15
Exhibit 9 404
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO APPENDIX 1
Participating
Subdivision
Classification
Participating Subdivision
County
Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Al'cation
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
Kei ian
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%
2 of 15
Exhibit 9 405
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO APPENDIX 1
Participating
Subdivision
Classification
Participating Subdivision
Conn ty
Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Al'cation
Percentage
City
Arcata
Humboldt
0.054%
0.0447660%
City
Eureka
Humboldt
0.117%
0.1.43%
0.121.6284%
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%
0.01.52799%
City
El Centro
Imperial
0.158%
0.1302522%
City
Im Derial
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%
0M249316%
City
McFarland
Kern
0.003%
0.0025644%
City
Ridgecrest
Kern
0.015%
0M120938%
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%
0M426253%
City
Lakeport
Lake
0.021%
0.026%
0.0222964%
County
Lassen County
Lassen
0.319%
0.391%
0.332061.0%
City
Susanville
Lassen
0.027%
0.0219295%
County
Los Angeles County
Los Angeles
13.896%
16.999%
14.4437559%
3 of 15
Exhibit 9 406
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO APPENDIX 1
Participating
Subdivision
Classification
Participating Subdivision
County
Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Al'cation
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%
4 of 15
Exhibit 9 407
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO APPENDIX 1
Participating
Subdivision
Classification
Participating Subdivision
County
Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
AIlcation
Percentage
City
Hen iosa 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 Canada 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%
5 of 15
Exhibit 9 408
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO APPENDIX 1
Participating
Subdivision
Classification
Participating Subdivision
Conn ty
Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Al'cation
Percentage
City
San Dimas
Los Angeles
0.003%
0.0022016%
City
San Fernando
Los Angeles
0.013%
0M104837%
City
San Gabriel
Los Angeles
0.018%
0.0147726%
City
San Marino
Los Angeles
0.009%
0M073791%
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
Tem ple City
Los Angeles
0.005%
0.0039498%
City
Torrance
Los Angeles
0.1.12%
0M919820%
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
Larks3ur
Marin
0.015%
0.0124697%
City
Mill. Valley
Marin
0.020%
0.0168401%
City
Novato
Marin
0.028%
0.0229824%
City
San Ansehno
Marin
0.009%
0.0078062%
City
San Rafael
Marin
0.089%
0.0729823%
County
Mariposa County
Mari Dosa
0.084%
0.103%
0M876131%
County
Mendocino County
Mendocino
0.439%
0.536%
0.4558394%
City
Ukiah
Mendocino
0.039%
0M317153%
6 of 15
Exhibit 9 409
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO APPENDIX 1
Participating
Subdivision
Classification
Participating Subdivision
County
Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Al'cation
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%
1.1.11 %
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
Na la
0.288%
0.352%
0.2994325%
City
American Canyon
Na la
0.017%
0.0136869%
City
Napa
Na la
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 Vic'o
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%
7 of 15
Exhibit 9 410
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO APPENDIX 1
Participating
Subdivision
Classification
Participating Subdivision
County
Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Al'cation
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 Vie'o
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%
8 of 15
Exhibit 9
411
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO APPENDIX 1
Participating
Subdivision
Classification
Participating Subdivision
Conn ty
Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Al'cation
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%
0M143848%
City
Beaumont
Riverside
0.021%
0.0171135%
City
Blythe
Riverside
0.012%
0M096714%
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
0.1.47%
0.1.207083%
City
Desert Hot S brings
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
Juru pa 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%
0M180086%
City
Wildomar
Riverside
0.008%
0.0062500%
County
Sacramento County
Sacramento
3.797%
4.645%
3.9465887%
9 of 15
Exhibit 9 412
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO APPENDIX 1
Participating
Subdivision
Classification
Participating Subdivision
Conn ty
Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Al'cation
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%
0M143704%
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
A 1 ple 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
0.1.12%
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
0.1.79%
0.1.472934%
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%
0.1.461.880%
City
Twentynine Palms
San Bernardino
0.002%
0.0012605%
City
Upland
San Bernardino
0.052%
0M424460%
City
Victorville
San Bernardino
0.033%
0.0269400%
City
Yucaipa
San Bernardino
0.016%
0.0128772%
10 of 15
Exhibit 9 413
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO APPENDIX 1
Participating
Subdivision
Classification
Participating Subdivision
Conn ty
Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Al'cation
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%
0.1.961456%
City
Coronado
San Diego
0.044%
0.0359095%
City
El. Ca'on
San Diego
0.113%
0.0933582%
City
Encinitas
San Diego
0.061%
0.074%
0.0630289%
City
Escondido
San Diego
0.1.45%
0.11.92204%
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%
0M511040%
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 Joacuin
1.680%
2.055%
1.7460399%
City
Lathro 1
San Joacuin
0.009%
0.0075394%
City
Lodi
San Joacuin
0.053%
0.0439484%
City
Manteca
San Joacuin
0.054%
0.0443454%
City
Rilon
San Joacuin
0.013%
0.0104219%
City
Stockton
San Joacuin
0.313%
0.383%
0.3256176%
City
Tracy
San Joacuin
0.084%
0.0692047%
County
San Luis Obispo County
San Luis Obispo
0.816%
0.999%
0.84841.26%
City
Arroyo Grande
San Luis Obis 30
0.024%
0.0199053%
City
Atascadero
San Luis Obispo
0.029%
0M240680%
11of15
Exhibit 9 414
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO APPENDIX 1
Participating
Subdivision
Classification
Participating Subdivision
Conn ty
Abatement
Percentage Percentage
Plaintiff
Subdivision
Weighted
Al'cation
Percentage
City
E1 Paso de Robles (Paso Robles)
San Luis Obispo
0.043%
0.0353456%
City
Grover Beach
San Luis Obispo
0.017%
0M137881%
City
Morro Bay
San Luis Obispo
0.020%
0.0160922%
City
San Luis Obispo
San Luis Obispo
0.077%
0M637841%
County
San Mateo County
San Mateo
1.074%
1.313%
1.1159599%
City
Belmont
San. Mateo
0.021%
0M169860%
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%
0.01.66101%
City
Half Moon Bay
San Mateo
0.004%
0.0031638%
City
Hillsborough
San. Mateo
0.013%
0M110029%
City
Menlo Park
San Mateo
0.015%
0.0126209%
City
Millbrae
San Mateo
0.013%
0.01.05836%
City
Pacifica
San Mateo
0.016%
0.0130625%
City
Redwood City
San Mateo
0.056%
0M463511%
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
Lom Doc
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
Cam Dbell
Santa Clara
0.014%
0M112566%
City
Culertino
Santa Clara
0.008%
0.0066824%
City
Gilroy
Santa Clara
0.025%
0M202891%
12 of 15
Exhibit 9 415
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO APPENDIX 1
Participating
Subdivision
Classification
Participating Subdivision
County
Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Al'cation
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
Valle.°
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%
13 of 15
Exhibit 9 416
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO APPENDIX 1
Participating
Subdivision
Classification
Participating Subdivision
County
Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Al'cation
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%
14 of 15
Exhibit 9 417
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO APPENDIX 1
Participating
Subdivision
Classification
Participating Subdivision
Conn ty
Abatement
Percentage Percentage
Plaintiff
Subdivision
Weighted
Al'cation
Percentage
City
Oxnard
Ventura
0.156%
0.190%
0.1617338%
City
Port Hueneme
Ventura
0.021%
0M174145%
City
San Buenaventura (Ventura)
Ventura
0.085%
0.0702181%
City
Santa Paula
Ventura
0.014%
0M119072%
City
Simi Valley
Ventura
0.065%
0.0533043%
City
Thousand Oaks
Ventura
0.022%
0.01.79902%
County
Yolo County
Yolo
0.357%
0.437%
0.3713319%
City
Davis
Yolo
0.055%
0.0451.747%
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%
0.01.1.2079%
15 of 15
Exhibit 9 418
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO APPENDIX 2
Cost Reimbursement Procedure
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 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 Exhibit 9 4119
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO 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 perfonned 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 Exhibit 9 440
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO 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.
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 CVS Settlement Agreement, Teva Settlement Agreement, Allergan Settlement Agreement, Distributor Settlement Agreement, Janssen Settlement Agreement, Walgreens Settlement Agreement, and the Walmart Settlement Agreement be used to pay Costs.
Exhibit 9 421
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO d) Collateral Source Payments and Third -Party Settlement.
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.
Exhibit 9 442
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO 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 CVS 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 Back - Stop Agreement as that term is used in the Order and in Exhibit R (Agreement on Attorneys' Fees, Costs, and Expenses) of the CVS Settlement Agreement.
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 Back - Stop 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]
[DATE]
[DATE]
[SUBDIVISION SIGNATURE BLOCK]
[COUNSEL SIGNATURE BLOCK]
[ATTORNEY GENERAL SIGNATURE BLOCK]
Exhibit 9 443
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO Proposed California State -Subdivision Agreement
Regarding Distribution and Use of
Settlement Funds — Walgreens Settlement
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.
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, Exhibit 10 4124
g)
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO j)
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.
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 Pharura 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,' pursuant 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").
I 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.
Exhibit 10 425
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO 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 Walgreens 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 Walgreens 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.
Exhibit 10 4316
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO 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
Exhibit 10 427
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO 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.
Exhibit 10
418
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO C. CA Subdivision Fund
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.
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 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.
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 Walgreens 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 Walgreens 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 Walgreens Settlement Agreement. Further, Exhibit 10 49
DocuSign Envelope ID: 795FC822-655C-4BAB-8EC7-CO6F26F85FDO 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.
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.