Agenda packet — Cypress City Council, April 10, 2023 (part 2 of 3)

3123792970000 (accessed September 26, 2022).
_____. General Plan. Conservation/Open Space/Recreation Element. Page COSR-7. Website:
https://www.cypressca.org/home/showpublisheddocument/686/636123123792970000 (accessed September 26, 2022).

Stantec Consulting Services, Inc. 2021. Phase I Environmental Site Assessment (Phase I ESA) 5757 Plaza Drive Cypress, California. September 2021.

SECTION 4.6: ENERGY
California Air Resources Board (CARB). Airborne Toxic Control Measures. Website: https://ww2.arb. ca.gov/resources/documents/airborne-toxic-control-measures (accessed December 2022).

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P:\CCP2201.03 Goodman Commerce Center\Products\ISMND\Public\Goodman Commerce Center ISMND.docx (02/02/23) 8-3 California Energy Commission (CEC). 2015. Medium and Heavy-Duty Truck Prices and Fuel Economy 2013–2026. Website: efiling.energy.ca.gov/getdocument.aspx?tn=206180 (accessed December 2022).
_____. 2019a. California Energy Consumption Database. Website: http://www.ecdms.energy. ca.gov/ (accessed December 2022).
_____. 2019b. Gas Consumption by County. Website: http://www.ecdms.energy.ca.gov/gasby county.aspx (accessed December 2022).
_____. 2020. Supply and Demand of Natural Gas in California. Website: https://www.energy. ca.gov/data-reports/energy-almanac/californias-natural-gas-market/supply-and-demandnatural-gas-california (accessed December 2022). _____. 2022. 2022 Integrated Energy Policy Report Update. Docket No. 21-IEPR-01.

Southern California Edison (SCE). Fact Sheets. Website: https://newsroom.edison.com/factsheets/fs (accessed December 2022).

Southern California Gas Company (SoCalGas). 2019. About SoCalGas. Website: https://www3.socal gas.com/about-us/company-profile (accessed December 2022).

U.S. Department of Transportation (USDOT). “Table 4‐23: Average Fuel Efficiency of U.S. Light Duty Vehicles.” Website: https://www.bts.dot.gov/bts/bts/content/average-fuel-efficiency-uslight-duty-vehicles (accessed December 2022).

U.S. Energy Information Administration (EIA). 2020. California State Profile and Energy Estimates.

Table F3: Motor gasoline consumption, price, and expenditure estimates, 2017. Website:
eia.gov/state/seds/data.php?incfile=/state/seds/sep_fuel/html/fuel_mg.html&sid=CA (accessed December 2022).

Urban Crossroads. 2023. Goodman Center Commerce Center Traffic Analysis. January 27.

SECTION 4.7 GEOLOGY AND SOILS
City of Cypress. 2001. City of Cypress General Plan Safety Element. October 5. _____. 2021. Zoning Map. Website: https://www.cypressca.org/government/departments/ community-development/zoning-map (accessed June 11, 2021).

G3SoilWorks. 2022. Geotechnical Investigation and Report Update Proposed Goodman Commerce Center 5665 and 5757 Plaza Drive (Geotechnical Evaluation). May 4, 2022.Stantec Consulting Services, Inc. 2021. Phase I Environmental Site Assessment (Phase I ESA) 5757 Plaza Drive Cypress, California. September 2021.

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8 P:\CCP2201.03 Goodman Commerce Center\Products\ISMND\Public\Goodman Commerce Center ISMND.docx (02/02/23) -4 Pacific Environmental Company. 2021. Asbestos Inspection Report, 5757 Plaza Drive, Cypress, California 90630. August 10.

SECTION 4.8: GREENHOUSE GAS EMISSIONS
California Air Resources Board (CARB). 2017. California’s 2017 Climate Change Scoping Plan.

November.

South Coast Air Quality Management District (SCAQMD). 2008. Draft Guidance Document – Interim CEQA Greenhouse Gas (GHG) Significance Threshold. October. Website: http://www.aqmd. gov/docs/default-source/ceqa/handbook/greenhouse-gases-(ghg)-ceqa-significancethresholds/ghgattachmente.pdf (accessed December 2022).

Urban Crossroads, 2023. Goodman Center Commerce Center Traffic Analysis. January 27.

SECTION 4.9: HAZARDS AND HAZARDOUS MATERIALS
California Department of Forestry and Fire Protection (CAL FIRE). 2011. Very High Fire Hazard Severity Zones in LRA. Website: https://osfm.fire.ca.gov/media/6739/fhszl_map30.pdf (accessed August 30, 2022).

California Department of Toxic Substances Control (DTSC). EnviroStor. Website: https://www. envirostor.dtsc.ca.gov/public/search.asp?PAGE=2&CMD=search&ocieerp=&business_name =&main_street_number=&main_street_name=&city=&zip=&county=&branch=&status=ACT %2CBKLG%2CCOM&site_type=CSITES%2CFUDS&cleanup_type=&npl=&funding=&reporttyp e=CORTESE&reporttitle=HAZARDOUS+WASTE+AND+SUBSTANCES+SITE+LIST+%28CORTESE %29&federal_superfund=&state_response=&voluntary_cleanup=&school_cleanup=&operat ing=&post_closure=&non_operating=&corrective_action=&tiered_permit=&evaluation=&sp ec_prog=&national_priority_list=&senate=&congress=&assembly=&critical_pol=&business_ type=&case_type=&display_results=&school_district=&pub=&hwmp=False&permitted=&pc _permitted=&inspections=&inspectionsother=&complaints=&censustract=&cesdecile=&OR DERBY=city&next=Next+50 (accessed September 15, 2022).

City of Cypress. General Plan Environmental Impact Report. Geology and Seismic Hazards.

Page 4 ends

_____. 2001. City of Cypress General Plan Safety Element, Emergency Evacuation Routes Map (Exhibit SAF-5). October 2, 2001.

Orange County Airport Land Use Commission. 2016. Airport Environs Land Use Plan for Joint Forces Training Base Los Alamitos. Website: http://www.ocair.com/commissions/aluc/docs/JFTBAELUP2016ProposedFINAL.pdf (accessed January 13, 2023).

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P:\CCP2201.03 Goodman Commerce Center\Products\ISMND\Public\Goodman Commerce Center ISMND.docx (02/02/23) 8-5 SECTION 4.10: HYDROLOGY AND WATER QUALITY
California Department of Water Resources (DWR). 2004. California’s Groundwater Bulletin 118.

Coastal Plains of Orange County Groundwater Basin.

California Department of Conservation (DOC). 2019. Orange County Tsunami Inundation Maps.

Website: https://www.conservation.ca.gov/cgs/tsunami/maps/orange (accessed on June 18, 2021).

City of Cypress. 2001. City of Cypress General Plan Safety Element. October 5.

Orange County Environmental Agency. 1986. Orange County Hydrology Manual. _____. 1996. Orange County Hydrology Manual Addendum No. 1. Orange County Water District. 2017. Basin 8-1 Alternative – OCWD Management Area. January 1, 2017.

Orange County Stormwater Program. 2012. Construction Runoff Guidance Manual for Contractors, Project Owners, and Developers. December.

PBLA Engineering, Inc. 2022. Preliminary Water Quality Management Plan (Preliminary WQMP).

October 2022.

SECTION 4.11: LAND USE AND PLANNING
City of Cypress. 2001. PC-3 McDonnell Center Amended Specific Plan (October 1994) Appendix C,

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document/9697/637363718 99353 0000 (accessed December 2022). _____. 2001. City of Cypress General Plan Land Use Element. _____. 2020. City of Cypress Municipal Code.

Southern California Association of Governments (SCAG). 2020. Connect SoCal 2020–2045 Regional Transportation Plan/Sustainable Communities Strategy. Website: https://scag.ca.gov/sites/ main/files/file-attachments/0903fconnectsocal-plan_0.pdf?1606001176 (accessed May 2022).

SECTION 4.12: MINERAL RESOURCES
California Department of Conservation (DOC). Division of Mines and Geology. 1981. Mineral Land Classification Map. Los Alamitos Quadrangle. Special Report 143, Plate 3.17.

City of Cypress. 2001. General Plan Conservation/Open Space/Recreation Element._General Plan Environmental Impact Report. Effects Found Not to Be Significant. Page 7-4. Website:
https://www.cypressca.org/home/showpublisheddocument/722/636123118731230000 (accessed September 1, 2022).

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8 P:\CCP2201.03 Goodman Commerce Center\Products\ISMND\Public\Goodman Commerce Center ISMND.docx (02/02/23) -6 SECTION 4.13: NOISE
Allied Commercial. 2019. KHB – K-Series Rooftop Units Standard and High Efficiency – 50 Hz Product Specifications. April.

City of Cypress Municipal Code. 1976.

Federal Highway Administration (FHWA). 2006. Highway Construction Noise Handbook.

Federal Transit Administration (FTA). 2018. Transit Noise and Vibration Impact Assessment Manual.

FTA Report No. 0123. September.

LSA Associates, Inc. (LSA). 2016. Operational Noise Impact Analysis for Richmond Wholesale Meat Distribution Center.

Urban Crossroads. 2023. Goodman Commerce Center Traffic Analysis. January 27.

SECTION 4.14: POPULATION AND HOUSING
State of California Employment Development Department (EDD). 2023. Monthly Labor Force Data for Cities and Census Designated Places, November 2022. Website: https://www. labormarket info.edd.ca.gov/data/labor-force-and-unemployment-for-cities-and-censusareas.html (accessed January 16, 2023).

SECTION 4.15: PUBLIC SERVICES
California Department of Education. DataQuest. Enrollment Data 2020–2021. Website: https://dq. cde.ca.gov/dataquest/dqcensus/EnrGrdLevels.aspx?cds=3066480&agglevel=district&year=2 021-22 (accessed September 13, 2022).

City of Cypress. 2020. Cypress Police Department. Cypress 10-Year Calls for Service Trend. Website:
https://www.cypressca.org/home/showdocument?id=10173 (accessed January 2023). _____. Cypress Police Department Overview. Website: https://www.cypressca.org/government/ departments/police/inside-cypress-pd/the-community-we-serve#overview (accessed January 2023).

Orange County Fire Authority (OCFA). 2020. Operations Division 7. Website: OCFA - Orange County Fire Authority (accessed September 13, 2022).
_____. 2021. Fiscal Year 2019–2020 Adopted Budget. Website: OCFA 2021-2022 Adopted Budget.pdf. Page 11 (accessed September 13, 2022).
_____. Fiscal Year 2020/2021 Adopted Budget. Website: https://ocfa.org/Uploads/Transparency/ OCFA%202020-2021%20Adopted%20Budget.pdf (accessed June 24, 2021).

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P:\CCP2201.03 Goodman Commerce Center\Products\ISMND\Public\Goodman Commerce Center ISMND.docx (02/02/23) 8-7 _____. Station Statistics. Website: https://ocfa.org/AboutUs/Departments/OperationsDirectory/ Division7.aspx (accessed September 13, 2022).

SECTION 4.16: RECREATION
City of Cypress. 2019. City Council Meeting Minutes. October 28, 2019. _____. 2022a. Facility and Park Locations. Website: https://www.cypressca.org/activities/facilitypark-locations (accessed September 1, 2022). _____. 2022b. Facility & Park Locations: Mackay Park Webpage. Website: https://www.cypressca. org/Home/Components/FacilityDirectory/FacilityDirectory/66/240 (accessed September 13, 2022).

SECTION 4.17: Transportation
California Department of Transportation (Caltrans). 2020. VMT-Focused Transportation Impact Study Guide (TISG). February 2020.

County of Orange. 2020. Final Draft Guidelines For Evaluating Vehicle Miles Traveled Under CEQA for the County of Orange. September 17, 2020.

Governor’s Office of Planning and Research (OPR). 2018. Technical Advisory on Evaluating Transportation Impacts in CEQA (OPR Technical Advisory).

Institute of Transportation Engineers (ITE). 2021. Trip Generation Manual, 11th Edition.

LSA Associates, Inc (LSA). 2022. Vehicle Miles Traveled (VMT) Analysis, Inc. October 18, 2022.

Urban Crossroads. 2023. Goodman Commerce Center Traffic Analysis. January 27.

SECTION 4.19: UTILITIES AND SERVICE SYSTEMS
California Department of Resources Recycling and Recovery (CalRecycle). 2022. Jurisdiction Disposal Tonnage Trend.

California Energy Commission (CEC). 2020. Gas Consumption by County. Website: http://www. ecdms.energy.ca.gov/gasbycounty.aspx (accessed May 2022). _____. 2023. California Energy Consumption. Website: http://www.ecdms.energy.ca.gov/ (accessed January 2023).

City of Cypress. 2021. C&D Recycling Requirement. Website: C&D Recycling Requirement | City of Cypress (cypressca.org) (accessed January 2023).

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8 P:\CCP2201.03 Goodman Commerce Center\Products\ISMND\Public\Goodman Commerce Center ISMND.docx (02/02/23) -8 _____. 2023. Maintenance. Website: http://www.cypressca.org/government/departments/publicworks/maintenance (accessed January 16, 2023).

Golden State Water Company (GSWC). 2021a. 2020 West Orange Urban Water Management Plan (UWMP). July 15.
_____. 2021b. Los Alamitos Customer Service Area. Website: http://www.gswater.com/losalamitos/ (accessed January 2023).

Orange County Sanitation District (OC SAN). 2022. 2021-2022 Annual Report. Website:
https://www.ocsan.gov/home/showpublisheddocument/33473/638080061619170000 (accessed January 16, 2023).
_____. 2023. Facts and Key Statistics Webpage. Website: https://www.ocsan.gov/services/regionalsewer-service (accessed January 2023). _____. Capital Improvement Program Fiscal Year 2021/2022. Website: https://www.ocsan.gov/ home/showpublisheddocument/33268/638000527692070000 (accessed January 16, 2023).

Orange County Waste & Recycling (OCWR). 2021. Olinda Alpha Landfill. Website: https://www2. calrecycle.ca.gov/SolidWaste/SiteActivity/Details/2757?siteID=2093 (accessed September 26, 2022).

Orange County Waste & Recycling. Active Landfills. Google Maps; Website: https://oclandfills.com/ landfills/active-landfills (accessed December 2022).
_____. Household Hazardous Waste. Website: http://www.oclandfills.com/ hazardous (accessed September 26, 2022).

Southern California Edison (SCE). 2023. Fact Sheets. Website: https://newsroom.edison.com/factsheets/fs (accessed January 2023).

Southern California Gas Company (SoCalGas). 2019. About SoCalGas. Website: https://www. socalgas.com/about-us/company-profile#:~:text=About%20SoCalGas%C2%AE,in%20more% 20than%20500%20 communities (accessed October 6, 2022).

SECTION 4.20: WILDFIRE
California Department of Forestry and Fire Protection (CAL FIRE). 2011. Very High Fire Hazard Severity Zones in LRA. Website: https://osfm.fire.ca.gov/media/6739/fhszl_map30.pdf (accessed August 30, 2022).

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APPENDIX A

CALEEMOD OUTPUT DATA

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APPENDIX B

PHASE I ENVIRONMENTAL SITE ASSESSMENT

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APPENDIX C

GEOTECHNICAL EVALUATION

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APPENDIX D

PRELIMINARY WATER QUALITY MANAGEMENT PLAN

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APPENDIX E

NOISE MEASUREMENTS AND MODELING RESULTS

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APPENDIX F

TRAFFIC ANALYSIS

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APPENDIX G

VEHICLE MILES TRAVELED ANALYSIS

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APPENDIX H

TRIBAL CONSULTATION CORRESPONDENCE

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TENTATIVE PARCEL MAP NO. 2023-101

P B L A
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Δ Δ Δ P B L A 1 inch = ft. ( IN FEET ) GRAPHIC SCALE 100 TENTATIVE PARCEL MAP NO. 2023-101 Site Plan Review No. 2022-05
&
Tentative Parcel Map No. 2023-101

VICINITY MAP

PROJECT SITE
5757 Plaza Drive
N
UGPS METER/ MAIN DISTR DISTR METER/ MAIN DISTR HOUSE METER /MAIN DISTR T METER/ UGPS MAIN DISTR DISTR METER/ MAIN DISTR HOUSE METER /MAIN DISTR T OFFICIAL USE ONLY Owner: Project: Consultants: Project Number: Revision: Date: Drawn by: Title: Sheet: C I V I L STRUCTURAL MECHANICAL PLUMBING ELECTRICAL LANDSCAPE SOILS ENGINEER FIRE PROTECTION 21196 AW fax: 949 863 0851 tel: 949 863 1770 email: [email protected] 92612 irvine, ca 18831 bardeen avenue, - ste. #100
hpa, inc.

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C TS T A T E O F C A L I F O R N I A DATE RENEWAL 3-31-23 C-29451 07/01/22 Goodman Commerce Center MASTER SITE PLAN 0-DAB-A1.0 PROPERTY OWNER PROJECT DATA ADDRESS OF THE PROPERTY ASSESSOR'S PARCEL NUMBER LEGAL DESCRIPTION APPLICANT APPLICANT'S REPRESENTATIVE ZONING ORDINANCE FOR CITY VICINITY MAP SITE SITE PLAN GENERAL NOTES SITE PLAN GENERAL NOTES

P L A Z A D R I V E
V A L L E Y V I E W S T R E E T BUILDING 2 BUILDING 1 (E) (E) (R) (R) (E) (E) (E) (E) (E) (E) (E) (E) (R) (R) (R) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) (E) PROPOSED PLANT PALETTE TREESSYMBOL BOTANICAL NAME COMMON NAME SIZE / FORM HT. X SPRD. X CAL. (MIN.) WATER USE DESCRIPTION ERYTHRINA CAFFRA CORAL TREE 36" BOX 12' H X 5' W L MULT ITRUNK ACCENT LAGERSTROEMIA FAUERI 'TUSCARORA' TUSCARORA CRAPE MYRTLE 24" BOX STD. 8'H X 5'W X 4"C M FLOWERING TREE LOPHOSTEMON CONERTUS BRISBANE BOX 24" BOX STD. 8'H X 5'W L EVERGREEN CANOPY PLATANUS ACERFOLIA LONDON PLANE TREE 24" BOX 8'H X 5'W M DECIDUOUS CANOPY `TIPUANA TIPU TIPU TREE 36" BOX STD. 14' H X 6'W M SEMIDECIDUOUS BROAD CANOPY SHRUBS, GRASSES, & GROUNDCOVERS SYMBOL BOTANICAL NAME COMMON NAME SIZE SPACING WATER USE DESCRIPTION CALLISTEMON 'LITTLE JOHN' LITTLE JOHN BOTTLE BRUSH 5 GAL. 36" O.C. L MIDGROUND FLOWERING SHRUB CARISSA M. 'GREEN CARPET' DWARF NATAL PLUM 1 GAL. 30" O.C. L EVERGREEN LOW SHRUB CAREX DIVULSA BERKELEY SEDGE 1 GAL. 24" O.C. L ORNAMENTAL GRASS DIANELLA 'LITTLE REV' LITTLE REV FLAX LILY 1 GAL. 24" O.C. L UPRIGHT ACCENT DIANELLA T. 'VARIEGATA' VARIEGATED FLAX LILY 5 GAL. 36" O.C. M UPRIGHT ACCENT HESPERALOE 'BRAKE LIGHTS' BRAKE LIGHTS YUCCA 5 GAL. 36" O.C. L UPRIGHT ACCENT LANTANA MONTEVIDENSIS PURPLE LANTANA 5 GAL. 36" O.C. L FLOWERING SHRUB LANTANA 'NEW GOLD' NEW GOLD LANTANA 5 GAL. 36" O.C. L FLOWERING LOW SHRUB MUHLENBERGIA 'EL TORO' BULL RUSH 1 GAL. 36" O.C. L ORNAMENTAL GRASS OLEA 'MONTRA' LITTLE OLLIE 5 GAL. 48" O.C. L LARGE SHRUB RHAPHIOLEPIS INDICA 'CLARA' INDIAN HAWTHORN 5 GAL. 36" O.C. L EVERGREEN SHRUB WESTRINGIA 'WYNYABBIE GEM' COAST ROSEMARY 5 GAL. 36" O.C. L EVERGREEN HEDGE WATER USE KEY: VL = VERY LOW WATER USE, L = LOW WATER USE, M = MODERATE WATER USE, H = HIGH WATER USE. WATER USE STATED IS PER 'WATER USE CLASSIFICATION OF LANDSCAPE SPECIES' (ALSO REFERRED TO AS WUCOLS IV) FOR THE CITY OF CYPRESS. EXISTING PLANT SCHEDULE TREESSYMBOL BOTANICAL NAME COMMON NAME COMMENTS PLATANUS ACERFOLIA LONDON PLANE DECIDUOUS CANOPY ERYTHRINA CAFFRA CORAL MULTI TRUNK ACCENT LOPHOSTEMON CONFERTUS BRISBANE BOX EVERGREEN CANOPY NOTE: THE LETTER (E) NEXT TO A TREE SYMBOL INDICATES AN EXISTING TREE TO BE PROTECTED IN PLACE. THE LETTER (R) INDICATES AN EXISTING TREE TO BE REMOVED FROM SITE. (949) 863-1770 Irvine, CA 92612 18831 Bardeen Ave. - Ste. #100 www.hparchs.com north 1LEGEND OUTDOOR SEATING AREA W/ ENHANCED CONCRETE PAVING SPECIMEN TREES IN MOUNDED LANDSCAPE AREAS PUBLIC ART - SCULPTURE TO BE VISIBLE UPON ENTRY TO SITE ENHANCED PAVING AT BUILDING ENTRY CONCRETE WALKWAYS EXISTING TREES TO BE PROTECTED IN PLACE 23456 1 22 3 4 4 4 5 5 5 6 6 6 (949) 863-1770 Irvine, CA 92612 18831 Bardeen Ave. - Ste. #100 www.hparchs.com UGPS METER/ MAIN DISTR DISTR METER/ MAIN DISTR HOUSE METER /MAIN DISTR T OFFICIAL USE ONLY Owner: Project: Consultants: Project Number: Revision: Date: Drawn by: Title: Sheet: C I V I L STRUCTURAL MECHANICAL PLUMBING ELECTRICAL LANDSCAPE SOILS ENGINEER FIRE PROTECTION 21196 AW fax: 949 863 0851 tel: 949 863 1770 email: [email protected] 92612 irvine, ca 18831 bardeen avenue, - ste. #100
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C TS T A T E O F C A L I F O R N I A DATE RENEWAL 3-31-23 C-29451 07/01/22 Goodman Commerce Center OVERALL SITE PLAN 1-DAB-A1.1 PROPERTY OWNER PROJECT DATA ADDRESS OF THE PROPERTY ASSESSOR'S PARCEL NUMBER LEGAL DESCRIPTION APPLICANT APPLICANT'S REPRESENTATIVE ZONING ORDINANCE FOR CITY VICINITY MAP SITE SITE PLAN KEYNOTES SITE PLAN GENERAL NOTES SITE PLAN GENERAL NOTES UGPS METER/ MAIN DISTR DISTR METER/ MAIN DISTR HOUSE METER /MAIN DISTR T OFFICIAL USE ONLY Owner: Project: Consultants: Project Number: Revision: Date: Drawn by: Title: Sheet: C I V I L STRUCTURAL MECHANICAL PLUMBING ELECTRICAL LANDSCAPE SOILS ENGINEER FIRE PROTECTION 21196 AW fax: 949 863 0851 tel: 949 863 1770 email: [email protected] 92612 irvine, ca 18831 bardeen avenue, - ste. #100
hpa, inc.

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C TS T A T E O F C A L I F O R N I A DATE RENEWAL 3-31-23 C-29451 07/01/22 Goodman Commerce Center PROJECT DATA VICINITY MAP OVERALL SITE PLAN 2-DAB-A1.1 PROPERTY OWNER ADDRESS OF THE PROPERTY ASSESSOR'S PARCEL NUMBER LEGAL DESCRIPTION APPLICANT APPLICANT'S REPRESENTATIVE ZONING ORDINANCE FOR CITY SITE PLAN KEYNOTES SITE PLAN GENERAL NOTES SITE PLAN GENERAL NOTESSITE

DATE: March 22, 2023
TO: Blair Dahl, Goodman
FROM: Charlene So, Urban Crossroads, Inc.

JOB NO: 14915-07 TG Memo

GOODMAN COMMERCE CENTER TRUCK TRAFFIC GENERATION
Urban Crossroads, Inc. is pleased to provide the following Truck Traffic Generation summary for the Goodman Commerce Center development (Project), which is located at 5757 Plaza Drive (Assessor’s Parcel Number: 241-101-26) in the City of Cypress. The following memo focuses on the truck traffic generation and distribution as evaluated in the Goodman Commerce Center Traffic Analysis (February 9, 2023, referred to as 2023 Traffic Study).

TRUCK TRIP GENERATION COMPARISON
A trip generation comparison is included in the 2023 Traffic Study of the existing office/warehouse use and the proposed Project. Specifically, the existing use consists of 88,020 square feet of general office use and 248,623 square feet of warehousing use. Full occupancy of the existing use would result in 1,382 two-way trips per day of which 954 trips are associated with the general office use. The total 4+-axle trucks (tractor plus trailer) are 94 trips per day with 3 to 4 4+-axle trucks during the peak hours (see Table 1).

TABLE 1: EXISTING TRIP GENERATION SUMMARY
Land Use Quantity Units1 In Out Total In Out Total Daily Actual Vehicles:

Warehousing 248.623 TSF
Passenger Cars: 30 7 37 9 29 38 276
2-axle Trucks: 0 0 0 1 0 1 26
3-axle Trucks: 0 1 1 1 1 2 32
4+-axle Trucks: 2 1 3 2 2 4 94
Total Truck Trips (Actual Vehicles): 2 2 4 4 3 7 152
Total Trips (Actual Vehicles)2 32 9 41 13 32 45 428
General Office 88.020 TSF 118 16 134 22 105 127 954
Passenger Cars, 2-axle & 3-axle Trucks 148 24 172 33 135 168 1,288 4+-axle Trucks 2 1 3 2 2 4 94
Total Trips (Actual Vehicles)2 150 25 175 35 137 172 1,382 1 TSF = Thousand Square Feet
2 Total = Passenger Cars + Trucks
AM Peak Hour PM Peak Hour
Blair Dahl, Goodman
March 22, 2023

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14915-07 TG Memo
The proposed Project generates 692 trips per day of which there are 108 4+-axle truck trips per day with 5 and 6 4+-axle trucks during the peak hours (see Table 2).

TABLE 2: PROPOSED PROJECT TRIP GENERATION SUMMARY
Although the proposed Project is larger in total square footage (390,260 square feet) than the existing use (336,643 square feet), the existing general office use is a higher trip generator than industrial uses which results in a net reduction in overall vehicle trips for the proposed Project (see Table 3). The net reduction is attributable to the decrease in passenger cars associated with the elimination of the general office use; however, the truck traffic is anticipated to increase with the proposed Project by 14 4+-axle trucks per day.

Land Use Quantity Units1 In Out Total In Out Total Daily Actual Vehicles:

High-Cube Transload 195.134 TSF
Passenger Cars: 10 2 12 4 13 17 230
2-axle Trucks: 0 0 0 0 0 0 8
3-axle Trucks: 0 0 0 0 0 0 10
4+-axle Trucks: 1 1 2 1 1 2 28
Total Truck Trips (Actual Vehicles): 1 1 2 1 1 2 46
Total Trips (Actual Vehicles)2 11 3 14 5 14 19 276
High-Cube Cold Storage 195.134 TSF
Passenger Cars: 15 1 16 4 14 18 268
2-axle Trucks: 1 1 2 1 1 2 52
3-axle Trucks: 0 0 0 0 0 0 16
4+-axle Trucks: 1 2 3 2 2 4 80
Total Truck Trips (Actual Vehicles): 2 3 5 3 3 6 148
Total Trips (Actual Vehicles)2 17 4 21 7 17 24 416
Passenger Cars, 2-axle & 3-axle Trucks 26 4 30 9 28 37 584 4+-axle Trucks 2 3 5 3 3 6 108
Total Trips (Actual Vehicles)2 28 7 35 12 31 43 692
1 TSF = Thousand Square Feet
2 Total = Passenger Cars + Trucks
AM Peak Hour PM Peak Hour
Blair Dahl, Goodman
March 22, 2023

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14915-07 TG Memo
TABLE 3: TRIP GENERATION COMPARISON

DISTRIBTUION OF TRUCKS
The truck distribution evaluated in the 2023 Traffic Study has 70% of the 4+-axle trucks going out to Valley View Street from Plaza Drive with 25% going northbound on Valley View Street and 45% going southbound on Valley View Street. Of the 45% going southbound on Valley View Street, 15% will go eastbound on Katella Avenue and 30% will continue southbound on Valley View Street.

TRUCK TRIP ASSIGNMENT
Based on the distribution and trip generation, there would be approximately 3 net new 4+-axle trucks per day on Valley View Street north of Plaza Drive with 7 south of Plaza Drive. There are currently 300 4+-axle trucks on Valley View Street under existing conditions, north of Plaza Drive (per an August 2022 roadway segment count).

The peak hour 4+-axle truck trips are nominal because there is only a net increase of 2 trucks with the proposed Project. Assuming the trucks travel east to Valley View Street via Plaza Drive, this equates to only 1 net new 4+-axle truck northbound and 1 southbound on Valley View Street during the peak hours. Based on traffic count at the intersection of Valley View Street and Plaza Drive from August 2022, there are approximately 15 to 20 4+-axle trucks traveling on Valley View Street during the peak hours under existing conditions.

If you have any questions or comments, I can be reached at [email protected].

Land Use In Out Total In Out Total Daily
Proposed Project
Passenger Cars, 2-axle & 3-axle Trucks: 26 4 30 9 28 37 584 4+-axle Truck Trips: 2 3 5 3 3 6 108
Total Trips 28 7 35 12 31 43 692
Fully Occupied Existing Use
Passenger Cars, 2-axle & 3-axle Trucks: 148 24 172 33 135 168 1,288 4+-axle Truck Trips: 2 1 3 2 2 4 94
Total Trips 150 25 175 35 137 172 1,382
Variance
Passenger Cars, 2-axle & 3-axle Trucks: -122 -20 -142 -24 -107 -131 -704 4+-axle Truck Trips: 0 2 2 1 1 2 14
Total Trips -122 -18 -140 -23 -106 -129 -690
AM Peak Hour PM Peak Hour
12100 WILSHIRE BOULEVARD, SUITE 1600 | LOS ANGELES, CALIFORNIA 90025 | T: 310.209.8800 www.AGD-Landuse.com

MARK ARMBRUSTER
T: 310.209.8800
E: [email protected]
March 20, 2023

BY EMAIL
Ms. Alicia Velasco
Director of Planning
City of Cypress
5275 Orange Avenue
Cypress, CA 90630
[email protected]
Re: Goodman Commerce Center, 5757 Plaza Drive
Dear Ms. Velasco:

We represent Cypress Land Company (CLC) who you know has owned, developed, and operated many of the Business Park properties for several decades. As such, CLC greatly cares about maintaining high quality of ownership and projects in the Business Park.

We understand that GLC Cypress, LLC has proposed to redevelop the property at 5757 Plaza Drive, known as the Goodman Commerce Center. The current buildings on the property have remained vacant for about two years because they don’t meet the needs of potential tenants in the Business Park. Having buildings lay vacant for such an extended time is not good for the health and vitality of the Business Park.

We have reviewed the proposed plans and conditions of approval and, on behalf of CLC, are sending this letter of support for the proposed Goodman Commerce Center Very truly yours,
Mark Armbruster
Cc: Matt Doss
Blair Dahl, [email protected]

Allyssa J. Holcomb
Direct Dial No.
(714) 384-4313
Email Address
[email protected]
April 10, 2023
{10833645.5} 3200 Bristol St., Suite 850, Costa Mesa, CA 92626 88490.0075 Tel: (714) 384-4300 ❖ Fax: (714) 384-4320
VIA EMAIL ([email protected])
City Council of the City of Cypress
c/o City Clerk for the City of Cypress
5275 Orange Avenue
Cypress, CA 90630
Re: Goodman Commerce Center
5757 Plaza Drive
Cypress, California
Dear City Council Members:

This firm represents Warland Investments Company and affiliated entities (collectively, “Warland”), which is one of the largest landowners in the City of Cypress (“City”). Warland’s local holdings consist of approximately 3.5 million square feet of space within the City. Warland’s presence in the City brings great value to the community by maintaining high-end facilities that draw first-class tenants. Currently, Warland has approximately 135 tenants within Warland/Cypress Business Center, which constitutes approximately half of the acreage within Cypress Business Park (“Park”). Those tenants collectively account for one of the largest employer bases in the City, and include local businesses as well as internationally recognized companies including Siemens Corporation, Rolls-Royce High Temperature Composites and Mitsubishi Electric. Warland is an interested party in the “Goodman Commerce Center” redevelopment project consisting of two (2) new primarily industrial facilities located at 5757 Plaza Drive, which is within one (1) block of the intersection of Plaza Drive/Chip Avenue and Valley View Street (“Project”), by virtue of Warland’s holdings located near the proposed Project, the closest of which are located at 10800 and 10850 Valley View Street and 6100 Chip Avenue (i.e., at the intersection of Plaza Drive/Chip Avenue and Valley View Street), and several other buildings located within a few blocks of the Project. In that capacity, Warland offers the following comments in response to the Initial Study / Mitigated Negative Declaration for Goodman Commerce Center dated February 2023 (“IS/MND”), and specifically (a) that certain Goodman Commerce Center Traffic Analysis dated January 27, 2023 prepared by Urban Crossroads under Reference No. 14915-04A TA Report (“January Traffic Study”), (b) that certain Goodman Commerce Center Traffic Analysis dated February 9, 2023 under Reference No. 14915-06 TA Report (“February Traffic Study”), and (c) the memoranda dated March 21, 2023 (referencing Job No. 14915-08 RTC) and March 22, 2023 (referencing Job No. 14915-09 TG) to Alicia Velasco of the City of Cypress, from Charlene So from Urban Crossroads, Inc. relating to the discrepancies between the January Traffic Study and the February Traffic Study (each, “Memorandum”). Note that the March 21 version of the Memorandum is available on the City of Cypress website, while the March 22 version of the Memorandum was provided to Warland by Goodman under separate cover on March 24, 2023 but is not currently available on the City of Cypress website.

City Council of the City of Cypress
April 10, 2023

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Background
Warland was first advised of the Project on March 2, 2023 via email from Robert Ramirez, the City’s Business Development Manager, which email included a link to a staff report prepared by Alicia Velasco in anticipation of the March 27, 2023 City Council meeting (“Staff Report”). The Staff Report stated that “(a)n Initial Study and Mitigated Negative Declaration (IS/MND) were prepared in accordance with CEQA guidelines and made available for a 20-day public review period from February 6 through February 27, 2023. No public comments were made prior to drafting the agenda report.” The Staff Report included a link to the IS/MND, which referenced a Traffic Report attached as Appendix F, as well as certain other Project documents, but in fact neither the January Traffic Study nor the February Traffic Study were attached to the IS/MND nor included in the materials available in the Staff Report.

On March 13, 2023, Warland located the “Project Environmental Documents” regarding the Project on the City of Cypress website at https://www.cypressca.org/departments/communitydevelopment/planning-division/development-information, and downloaded from that site the document attached as “Appendix F – Traffic Report”, which was the January Traffic Study. Today, that same link instead attaches the February Traffic Study. Warland did not receive notice of the new February Traffic Study until it questioned the results of the January Traffic Study, as detailed below. Further, but for the fact that Warland happened to access the City’s website at some point after they were switched out, would never have known there was any change in the underlying data made available to the public for the City’s CEQA analysis.

In early March 2023, prior to the Warland becoming aware of the new February Traffic Study, Warland reviewed the January Traffic Study—which, again, at that point was the only traffic study available to it—and provided comments to the City on March 16, 2023 regarding certain concerns with respect to the same—specifically that the January Traffic Study’s conclusion that the Project would reduce the actual and “PCE”1truck traffic in the immediate area was obviously erroneous for the following reasons. First, the Project will contain, cumulatively, approximately 121,645 additional square feet of warehouse space, which is a nearly 50% increase in warehouse space from the current facility. Second, the Project is designed with fifty (50) dock high doors, which Warland understands is an approximately 67% increase in the number of dock high doors from the current facility. And, last, the January Traffic Study used different land use codes to evaluate the existing facility against the Project – specifically, it used ITE Land Use Code 150 (warehouse) to evaluate the existing facility and ITE Land Use Codes 154 (high cube short-term storage warehouse) to evaluate approximately 50% of the Project and ITE Land Use Code 158 (high-cube storage) to evaluate the remainder of the Project.2 Typically, these land use codes would be expected to result in a significantly increased truck use than the one used for the existing facility. Given the increased warehouse space, substantially more dock high doors, and assumed higher intensity truck use, the January Traffic Study’s conclusion that the truck traffic would be reduced daily by 234 actual trucks and 198 PCE trucks was clearly wrong. A few days after the conversation with the City, Warland later discussed these issues with representatives from Goodman, which admitted that the January Traffic Study had been in error with respect to the anticipated truck traffic because it misstated the truck traffic from the existing facility, and that the February Traffic Study corrected the issue. Per 1 “PCE” means “passenger car equivalent”. In a traffic study, PCE is used to convert the impact of a vehicle, such as a truck, into the equivalent of a passenger car on traffic flow. 22 “High cube warehouse” means buildings used for the storage of manufactured goods prior to their distribution.

These facilities are typically characterized by a high level of mechanization (and, as a result, less employees) and increased truck activities occurring outside of the peak hours of the adjacent street system.

City Council of the City of Cypress
April 10, 2023

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the February Traffic Study, the actual truck traffic is now expected to increase by 42 actual daily trips, a difference from the January Traffic Study of 276 actual daily truck trips. This inaccuracy was further described in each of the March 21 and March 22 versions of the Memorandum.

Concerns
Warland wants to be clear that it feels strongly that appropriate redevelopment projects in the Park present a net positive for the Park and for the City by bringing more high-quality businesses and jobs into the community. Warland is therefore enthusiastic about the prospect of redevelopment of certain facilities within the Park. That said, Warland has significant concerns regarding CEQA compliance with respect to the Project, as well as the overall impacts of the Project given its specific location and intended truck routes.

A. CEQA Compliance
The CEQA guidelines mandate that the public receive notice and have a meaningful opportunity to review and respond to environmental reports generated related to proposed developments in the City. In this case, although the IS/MND was made available for public comment between February 6 and February 27, the traffic study made available at that time was the January Traffic Study, which significantly misrepresented the impact of the Project relative to truck traffic as compared to the existing facility. Assessing the Project based on, and only providing the public with, a clearly (and admittedly) inaccurate basis on which to evaluate the Project runs afoul of CEQA’s intent and requirements that agencies evaluate the Project’s actual environmental impacts, and that the public be given a meaningful chance to do the same. It is also irrelevant that the February Traffic Study was corrected prior to the expiration of the notice period, as the February Traffic Study was not readily available to the public (including Warland) until well after the end of the notice period, rendering the disclosures within it inadequate under CEQA.

In Warland’s view, the errors in the January Traffic Study undermine the integrity of the February Traffic Study, which was performed by the same firm. While Warland would like to believe the error was made in good faith, the corrected February Traffic Study was produced for Warland only after Warland identified the issues in the January Traffic Study. The timing of the provision of the February Traffic Study calls into question the reliability of other data and conclusions in the January Traffic Study, most of which remained the basis for the conclusions in the February Traffic Study. As such, Warland urges the City Council to require a new traffic study from an independent third party to ensure that the short and long-term impacts to air quality, traffic and noise in the Park and surrounding areas due to the proposed Project, particularly when those impacts are viewed cumulatively with other projects in the area and are accurately represented so that the public is fully informed of the potential impacts of the Project and can make informed decisions accordingly. Also, given the City’s failure to comply with CEQA as detailed above, Warland asks that the City provide a new notice period to allow for public review of, and comment on, the Project in light of the February Traffic Study.

B. Impacts to Neighboring Office and Residential Areas
The February Traffic Study and each Memorandum indicate that the Project will result in 42 additional daily truck trips, which is nearly 30% more truck trips than those associated with the existing facility if it was fully occupied. Further, 70% of the truck traffic from the Project will be routed to Valley View Street via Plaza Drive, where three (3) high end office buildings are located, with 30% of the overall City Council of the City of Cypress
April 10, 2023

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truck traffic from the Project continuing south on Valley View Street through a large residential area.

This increased volume of truck traffic will invariably lead to noise, air pollution and safety hazards, including the following:

1. Significant greenhouse gas emissions from commercial vehicle source emissions.

2. Traffic impacts, including roadway hazards, from heavy commercial vehicle circulation within or near surrounding commercial projects.

3. Roadway noise impacts, including at night, from commercial vehicles.

4. Potential significant impacts to public services as to the new Project as well as interference with the provision of those services to the Park and surrounding areas, including the residential area located south of the Project.

5. Potential safety impacts to pedestrians and cyclists.

The Park has been carefully designed to ensure that office buildings can be operated with minimal interference from nearby industrial facilities, which ensures the City remains attractive to both local and national companies for their office needs. Further, the City has historically made it a priority to ensure that heavier truck traffic has minimal impact on residential areas near the Park, which attracts business to the area while also contributing to a thriving residential community within the City.

In order for the Project to be consistent with the City’s goals and to mitigate potential negative impacts of the Project on nearby office buildings and residential areas, Warland recommends that the City require that commercial vehicles entering and exiting the Project, which have a gross vehicle weight rating (GVWR) exceeding 33,000 pounds, use specified designated truck routes. Specifically, instead of being routed to Valley View Street via Plaza Drive, those vehicles should be required to access and depart the Project utilizing Douglas Drive to Katella Avenue to the 605 freeway, which is similar to designated truck routes the City has required as a condition of approval for other nearby industrial projects, such as the Shaw Industries facilities located at 11411 Valley View Street.

C. Project Design and 3PL Use
Warland understands that no specific users of the Project facilities have been identified; however, the design of the buildings, which substantially increase warehouse space and dock high doors, is well suited for smaller scale third party logistics (“3PL”) uses. Such uses could significantly increase commercial truck traffic, particularly with respect to the volume of smaller trucks traveling short distances. While an argument can be made that any use that is not currently permitted by the applicable specific plan will require a conditional use permit and thus will have to complete a necessary environmental review process, including traffic studies, the City is also in the process of evaluating the current specific plans for the Park with the intention of adopting a new specific plan. That new specific plan could permit uses that are not currently contemplated by the existing specific plan applicable to the Project, which would then circumvent the need for a conditional use permit for a heavier truck use later on.

Given the particular design of the Project, as well as the potentially changing landscape of the specific plans at the Park, Warland suggests restricting any 3PL use of the Project now to avoid future issues.

Conclusion
Warland strongly believes that balancing the need for economic growth and job creation with maintaining a safe and healthy environment for all current and future residents can be achieved by being

CITY OF CYPRESS
CITY COUNCIL REPORT
City Council Regular 2.

FROM: Alicia Velasco, Planning Director
DATE: 04/10/2023
SUBJECT: Approve Conditional Use Permit No. 2023-02 for Eight Apartments at 8561 Belmont Street

RECOMMENDATION
Adopt a Resolution approving Conditional Use Permit No. 2023-03, subject to the attached conditions, and confirm the project is exempt from California Environmental Quality Act requirements.

DISCUSSION
8561 Belmont, LLC submitted an application for a Conditional Use Permit for the development of eight apartments at 8651 Belmont Street in the RM-20 (Residential Multiple Family) Zone. The application requests a density bonus in exchange for two units affordable for very low-income households in accordance with Zoning Code Section 3.12 (Density Bonus).

Project Description
The project is a four-story apartment building with six market rate and two affordable units. RM-20 zoning requirements allow four units, but eight units are permitted under density bonus provisions, provided two are affordable to households with very-low incomes. A 55-year deed restriction is required for affordable units and details on the density bonus are provided later in this report.

Subject Property and Surrounding Land Uses
The 10,000 square foot site contains two existing units (built in 1931 and 1960) that will be demolished as part of the project.

The project site is bounded by the following uses:

Direction Land Use Zoning
North Multi-family (2-3 unit properties) RM-20 (Residential Multiple Family) South Multi-family (2-3 unit properties) RM-20 (Residential Multiple Family) East Multi-family (2-3 unit properties;
condominium complex) RM-20 (Residential Multiple Family) West Multi-family (2-3 unit properties) RM-20 (Residential Multiple Family) Regulatory Control and Required Discretionary Actions
The RM-20 Zone is intended for residential development with a density of up to 20 dwelling units per acre.

Section 2.05.030 of the Zoning Code requires a CUP for residential development of more than three units. The application requests a density bonus, concession and waivers that the City is required by State law to grant in exchange for the applicant entering into an Affordable Housing Agreement with the City.

Development Standards
The concessions and a waiver from development standards are:

Standards Required Proposed
Minimum Parcel Width 100 feet 50 feet1
Minimum Parcel Depth 100 feet 200 feet
Maximum Allowable Density 20 du/ac ~35 du/ac2
Maximum Height 35 feet 39’-6”4
Minimum Side Setback 10 feet North: 4 feet4
South: 10 feet
Maximum Lot Coverage 45% 42.6%
Minimum Open Space 400 sf/unit x 8
units = 3,200 sf 1,360 sf3
Minimum Landscaped Open Area 35% 13.6%3

1.Legal nonconforming

2. Density bonus

3. Concession

4. Waiver
SITE PLAN AND DESIGN REVIEW
Building Design and Architecture
The first story of the four-story building contains a lobby with elevator and stair access, a trash room, and tuck-under parking. The second floor includes a studio and three one-bedroom units. The third and fourth floors include two-story, three-bedroom units. Each unit includes an open floor plan living area and laundry hookups.

The building features a modern architectural style with a variety of materials, including stucco, vertical wood siding, and stone veneer. The applicant conducted a window alignment study (see page G011 of the attached plans) to avoid privacy issues for adjacent properties. No windows directly align with windows on adjacent properties. Additionally, the north side of the building (which has a reduced side yard setback) is primarily hallways and staircases, rather than living space.

Access and Parking
The site is accessed by a 24-foot wide driveway, which was reviewed and approved by Orange County Fire Authority. State law allows reduced parking for density bonus projects in addition to any incentives or concessions. The project complies with State parking requirements:

Unit Type State Parking Requirement Total Provided
0-1 Bedroom 1 space x 4 units 4 spaces
2-3 Bedroom 1.5 spaces x 4 units 6 spaces
Total 10 spaces
The project provides tuck-under carport parking, a concession from the Zoning Code's garage requirement the City is required to grant.

Landscaping and Open Space
The project provides 1,360 square feet of landscaping (21% less than required) primarily in the front yard setback and along the driveway. The rear yard includes a dog run with synthetic turf. The project includes new block walls along the rear and south property lines. Although the application requests a concession for landscaped area and open space, the provided landscaping complies with the City’s Water Efficient Landscape Ordinance and other Municipal Code requirements.

DENSITY BONUS
Density
A project that designates 15 percent of units as affordable is eligible for a 50 percent density bonus under State law. An eight unit project must designate two units for very-low income households.

Base Density (20 du/ac) Lot size x 20 du/ac = 4.59 units, rounded up = 5 units Density Bonus (50%) 5 units x 50% = 2.5 units, rounded up = 3 units Total Units 5 units + 3 units = 8 units
15% VL Income 8 units x 15% = 1.2 units, rounded up = 2 units Affordable housing income limits (very low, low, moderate) are set by the State Department of Housing and Community Development. Very-low income households have an income between 30 and 50 percent of the area median income. For 2022, the annual income limit for very-low income households in Orange County ranged from $47,450 to $89,450, depending on household size. The two units in the project are restricted for very-low income tenants for 55 years.

Incentives and Concessions
The project is entitled to three concessions, or modifications of the development standards and code requirements. The application requests:

1.Parking in a carport rather than an enclosed garage (Zoning Code Section 2.05.050)

2. Reduction in open space from 3,200 sf to 1,360 sf (Zoning Code Section 2.05.040)

3. Reduction in landscaped area from 35% to 13.6% (Zoning Code Section 2.05.040) Waivers and Reductions
State law also allows waivers from standards that prevent development at the permitted density. In order for a city to reject a waiver, it must identify a specific, adverse impact on health or safety that cannot be avoided or mitigated. The application requests a waiver from the 35-foot maximum height and 10-foot side yard setback required by the Zoning Ordinance to accommodate the eight units permitted by the density bonus.

Affordable Housing Agreement/Local Requirements
The Zoning Code requires an affordable housing agreement, which is recorded against the property. The agreement specifies:

1. The density bonus, incentives, concessions, and waivers granted

2. The location, size, and bedroom count of affordable units

3. The affordability level and term

4.An affirmative marketing plan to ensure advertising of units to a wide spectrum of residents Additionally, affordable units must be distributed throughout the development, have similar finishes, and be a comparable size to market rate units. These requirements are included as conditions of approval.

ENVIRONMENTAL REVIEW
The project is categorically exempt from further California Environmental Quality Act (CEQA) review, pursuant to the CEQA Guidelines, Section 15332, to promote infill development in urbanized areas. The project is consistent with the applicable General Plan and zoning designations and is located on a lot smaller than five acres. Further, the project is surrounded by urban uses, and will not result in significant effects relating to traffic, noise, air quality, or water quality.

PUBLIC HEARING / PUBLIC OUTREACH PROCESS
The applicant hosted a virtual community meeting on March 30 and sent notice to adjacent property owners, including all 60 condominiums across the street from the project. No one attended the meeting. Public hearing notices were posted and mailed to all property owners within 500 feet of the project. All written communication related to the public hearing received prior to publishing the City Council agenda is attached. Written communication submitted by 3:00 p.m. on April 10 will be part of the public hearing administrative record.

ALTERNATIVE ACTIONS
If the City Council identifies issues which should be addressed prior to taking action on this application, the City Council may consider:

Adding conditions of approval to address concerns and/or require the applicant to modify the project design; or

1. 2. Continuing the public hearing and directing staff to work with the applicant to resolve the issues; or Continuing the public hearing, making findings for denial and directing staff to return to City Council with a resolution for denial.

3. 15% VL Income 8 units x 15% = 1.2 units, rounded up = 2 units BUDGET IMPACT
None.

LEGAL REVIEW
None required.

APPROVED BY: Peter Grant, City Manager
Attachments
CUP Resolution
Project Conditions
Vicinity Map
Project Plans
Notice of Exemption
RESOLUTION NO.

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS, CALIFORNIA, APPROVING CONDITIONAL USE PERMIT NO. 2023-03, FOR THE DEVELOPMENT

OF AN EIGHT-UNIT APARTMENT BUILDING, INCLUDING TWO AFFORDABLE UNITS, RESTRICTED TO VERY LOW INCOME HOUSEHOLDS, ON A 10,000 SQUARE FOOT SITE LOCATED AT 8561 BELMONT STREET WITHIN THE RM-20 (RESIDENTIAL MULTIPLE FAMILY) ZONE AND FINDING THE PROJECT EXEMPT FROM CALIFORNIA ENVIRONMENTAL QUALITY ACT REQUIREMENTS.

WHEREAS, the City Council of the City of Cypress has considered an application submitted by 8561 Belmont, LLC (“Developer”) for the development of an eight-unit apartment building, including two affordable units, restricted to very low income households, on a 10,000 square foot site located at 8561 Belmont Street within the RM20 (Residential Multiple Family) zone (the “Project”); and WHEREAS, the subject site is zoned RM-20 (Residential Multiple Family). Section

2.05.030 of the Cypress Zoning Ordinance states that multi-family developments with three or more units in the RM-20 zone are permitted subject to the approval of a Conditional Use Permit; and
WHEREAS, Section 12 of the Cypress Zoning Ordinance includes provisions for density bonus applications as required by California Government Code Sections 65915- 65918 (“State Density Bonus Law”); and
WHEREAS, the Developer has requested a 50 percent density bonus, three concessions, and two waivers in exchange for providing two units affordable to very low income households pursuant to Cypress Zoning Ordinance Section 12 and State Density Bonus Law, as laid out in the City Council staff report dated April 10, 2023; and WHEREAS, the City Council has reviewed the goals and objectives of the General Plan as laid out in the City Council staff report dated April 10, 2023, and finds that the Project is consistent with the intent of the General Plan; and WHEREAS, on April 10, 2023, the City Council held a duly noticed public hearing and considered testimony on the application; and
WHEREAS, the Project is categorically exempt pursuant to California Environmental Quality Act Guidelines, Section 15332 - In-fill Development. Section 15332 exempts in-fill projects in urbanized areas on sites less than five acres; and WHEREAS, the City Council finds that the applicant agrees with the necessity of and accepts all elements, requirements, and conditions of this Resolution as being a reasonable manner of preserving, protecting, providing for, and fostering the health, safety, and welfare of the citizenry in general and the persons who work, visit or live in this development in particular.

Resolution No.

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NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF CYPRESS, CALIFORNIA, DOES HEREBY RESOLVE, based upon substantial evidence taken from the administrative record and at the public hearing, AS FOLLOWS:

SECTION 1. Findings. Pursuant to the Cypress Zoning Ordinance Section

4.19.070 (Conditional Use Permits), the City Council finds, after due study and deliberation that the following circumstances exist:

1. The proposed location of the conditional use is consistent with the requirements of the General Plan and the Zoning District in which the site is located.

The Project is consistent with the intent of the general plan to allow for infill multifamily residential development and to provide for a variety of housing options for Cypress residents. Cypress Zoning Ordinance Section 2.05.030 allows for residential development of three or more units with conditional use permit approval. Further, the project complies with all the requirements of State Density Bonus Law (Government Code Sections 65915-65918).

2. The proposed location of the conditional use and the conditions under which it would be operated or maintained would not be detrimental to the public health, safety, or general welfare, nor would be materially injurious to properties or improvements in the vicinity.

With approval of the conditions included in Exhibit “A”, the Project will not be materially detrimental to the public health, safety or general welfare. The project is surrounded by other multi-family residential uses and to the extent possible has been designed to avoid negatively impacting adjacent uses by including appropriate setbacks, landscaping, and other features. Although the project includes a concession to allow a reduced north side yard setback, the building design minimizes the impact of this setback by primarily locating hallways and stairways on the north side rather than livable space. The conditions included in Exhibit “A” will further ensure that the construction and ongoing maintenance and operation of the project will not negatively impact public health, safety, or general welfare.

3. The proposed conditional use would comply with all applicable provisions of this zoning ordinance.

The applicant has requested three concessions and two waivers pursuant to State Density Bonus Law, which provide relief from the following requirements: 1) maximum height; 2) minimum side yard setback; 3) minimum landscaped area; 4) minimum open space; and, 5) that parking be within an enclosed garage. Without the allowance of these concessions and waiver, the project would not be able to Resolution No.

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accommodate the density entitled by State Density Bonus Law in exchange for designating two units as affordable to very-low income households. Other than the standards listed above, the project complies with applicable provisions of the zoning ordinance.

SECTION 2. CEQA The City Council finds that the proposed project is categorically exempt pursuant to California Environmental Quality Act (CEQA) Guidelines, Section 15332 – In-fill Development. The Project is an infill project in an urbanized area on a site less than five acres. The Project is consistent with the applicable general plan land use and zoning designations, will not have an adverse impact on any natural habitats, and will not result in significant effects relating to traffic, noise, air quality, or water quality. Therefore, the City Council has determined that there is no substantial evidence that the project may have a significant effect on the environment.

NOW, THEREFORE, BE IT FURTHER RESOLVED that the City Council of the City of Cypress hereby approves Conditional Use Permit No. 2023-03, subject to the applicable conditions included in Exhibit “A”. The decision of the City Council is final and conclusive as to all things involved.

Resolution No.

Page 4 ends

PASSED, APPROVED and ADOPTED by the City Council of the City of Cypress at a regular meeting held on the 10th day of April, 2023. _______________________________

MAYOR OF THE CITY OF CYPRESS
ATTEST:
_________________________________

CITY CLERK OF THE CITY OF CYPRESS

STATE OF CALIFORNIA )

COUNTY OF ORANGE )SS
I, ALISHA FARNELL, City Clerk of the City of Cypress, DO HEREBY CERTIFY that the foregoing Resolution was duly adopted at a regular meeting of the said City Council held on the 10th day of April, 2023, by the following roll call vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:
___________________________________

CITY CLERK OF THE CITY OF CYPRESS
 Community Development Department  Planning Division  EXHIBIT "A"
PROJECT TITLE: CUP NO. 2023-03
ADDRESS: 8561 BELMONT STREET, CYPRESS, CA

CONDITIONS OF APPROVAL

1. General Conditions

1.1. Prior to the issuance of building permits, the project applicant and property owner shall sign and return a City-provided affidavit accepting these conditions of approval. (Planning)

1.2. This permit is granted for the plans dated March 3, 2023, (“the plans”) on file with the Planning Division. The project shall conform to the plans, except as otherwise specified in these conditions, or unless a minor modification to the plans is approved by the Planning Director. A minor modification may be granted for minimal changes or increases in the extent of use or size of structures or of the design, materials or colors of structures or masonry walls. (Planning)

1.3. The applicant shall defend, indemnify, and hold harmless, the City and any agency thereof, or any of its agents, officers, and employees from any and all claims, actions, or proceedings against the City or any agency thereof, or any of its agents, officers or employees, to attack, set aside, void or annul, an approval of the City, or any agency thereof, advisory agency, appeal board, or legislative body, including actions approved by the voters of the City, concerning the project, which action is brought within the time period provided in Government Code Section 66499.37 and Public Resources Code, Division 13, CH. 4 (§ 21000 et seq. - including but not by way of limitation § 21152 and 21167). City shall promptly notify the applicant of any claim, action, or proceeding brought within this time period. (City Attorney)

1.4. The applicant’s contractor shall provide the City with a Certificate of Insurance on City form evidencing a comprehensive liability insurance policy with a combined single limit of not less than $500,000 each occurrence in connection with the work performed. Certificate shall include the City, its Council, officers, members of boards or commissions and employees as additional Named Insureds with respect to all claims, actions, damages, liabilities and expenses, including attorney's fees, arising out of or in connection with the work to be performed under the development executed by the Named Insured and City, including any act or omission of employees, agents, subcontractors, or their employees. Such certificate shall have a 30 day cancellation notice to the City of Cypress. (City Attorney)

1.5. All requirements of the Cypress Municipal Code, Orange County Fire Authority (OCFA), Orange County Health Department, and Cypress Building and Safety Division and any other provisions of applicable law shall be satisfied prior to a certificate of occupancy being issued. (Planning)
CUP No. 2023-03 – 8561 Belmont Street
Conditions of Approval - Page 2
 Community Development Department  Planning Division 

1.6. Any failure of applicant to abide by these conditions of approval or sign and return a City-provided affidavit accepting these conditions of approval shall be grounds for City’s initiation of proceedings to revoke this Conditional Use Permit in accordance with the City’s Zoning Ordinance.

1.7. The applicant may request minor modifications of conditions of approval consistent with the intent of the project approval. The modification must be approved in writing by the Planning Director (Conditions of Approval Sections 1- 7), City Engineer (Conditions of Approval Sections 9-21), and the Orange County Fire Authority (Conditions of Approval Section 23). For numerical standards, the Planning Director may approve deviations up to 10% provided that city code requirements are met.

2. Planning

2.1. Any expansion or modification of the approved use beyond what is approved as part of this Conditional Use Permit will require an amendment to the conditional use permit. (Planning)

2.2. Utilities shall be released during the normal course of construction; however, they shall not be released until applicable conditions of approval have been met to the satisfaction of the Community Development Department. (Planning)

2.3. The developer shall provide mailbox facilities for each residence, to the satisfaction of the Planning Director and the Postmaster. (Planning)

2.4. This conditional use permit may be modified or revoked by the City Council should the Council determine that the proposed use or conditions under which it is being operated or maintained is detrimental to the public health, safety, or welfare, or materially injurious to properties or improvements in the vicinity. (Planning)

2.5. Parking spaces shall remain available for resident parking at all times. On-site guest parking shall be prohibited. The developer shall erect a sign at the project entrance prohibiting guest parking on-site. (Planning)

2.6. Areas subject to vehicle loading, including internal streets, driveways, etc., shall consist of Portland Cement Concrete (PCC) unless an alternative material is approved in the project WQMP for infiltration purposes. (Planning)

2.7. A copy of the approved Conditions of Approval shall be included in all development plans submitted to the City. (Planning)

2.8. Exterior lighting shall comply with Section 3.11.060 (Exterior lighting) of the Zoning Ordinance. Developer shall submit a lighting plan showing standard heights and light materials and a photometric plan showing light levels on site and at the adjacent property limits. All parking area and exterior structure light fixtures CUP No. 2023-03 – 8561 Belmont Street
Conditions of Approval - Page 3
 Community Development Department  Planning Division  shall be high cut-off type that divert lighting downward onto the property and shall not cast light on any adjacent property or roadway or cause glare that affects motorists. Illumination levels at the property lines shall not exceed .5 foot candles. (Planning)

2.9. The developer shall construct new masonry block walls along the west (rear) and south (side) property lines, except within the front setback. The new wall shall have a height of six feet as measured from the higher grade. The design of the wall shall be consistent with the design of the rest of the development and shall include precast caps. The developer shall submit wall plans for review and approval by the Planning Director or designee. (Planning)

2.10. The project shall include two units restricted to rents affordable to very-low income households in exchange for a 50 percent density bonus, three concessions, and two waivers, pursuant to Government Code Sections 65915-65918 and as outlined in the staff report dated April 10, 2023. (Planning)

2.11. The developer shall enter into an affordable housing agreement with the City pursuant to Section 3.12.090 of the Cypress Zoning Ordinance. The agreement shall be recorded against the property prior to the issuance of building permits unless otherwise approved by the Planning Director. (Planning)

2.12. The developer shall provide a deposit to cover the costs of City review of the affordable housing agreement. Developer shall be charged against the deposit on a time and materials basis. In the event that the cost of review exceeds the deposit amount, developer shall pay an additional fee to cover the remaining cost.

Any remaining deposited funds shall be refunded to the developer after the affordable housing agreement has been approved.

2.13. The project shall comply with all development standards for affordable units pursuant to Cypress Zoning Ordinance Section 3.12.080, including that affordable units are comparable in size and quality to market rate units. (Planning)

2.14. The developer shall comply with all requirements of Senate Bill 330, including tenant notification requirements and tenant entitlement to relocation benefits and right of first refusal for a comparable unit in the new development.

3. Architectural

3.1. Architectural elevations and site plans shall be reviewed and approved by the Community Development Department prior to the issuance of building permits. (Planning)

3.2. All architectural treatments shall be constructed as illustrated on plans and renderings submitted. The final exterior color scheme shall be submitted to the Community Development Department for review and approval prior to actually painting the structure. (Planning)
CUP No. 2023-03 – 8561 Belmont Street
Conditions of Approval - Page 4
 Community Development Department  Planning Division 

3.3. All equipment, such as heating and air conditioning units, transformer boxes, and water valves shall be adequately screened from public view subject to the approval of the Planning Director. (Planning)

3.4. Developer shall incorporate roof and building drainpipes and downspouts in an architecturally compatible manner including location and color to the satisfaction of the Director of Planning. (Planning)

4. Signage

4.1. Developer shall not erect or display on the subject property any signs which have not been reviewed and approved by the Planning Director. (Planning)

4.2. Signs shall be reviewed under separate permit and pursuant to the requirements of the Cypress Zoning Ordinance. (Planning)

5. Landscaping

5.1. A detailed landscape and automatic irrigation plan shall be submitted to the Planning Division for review and approval at least 60 days prior to issuance of a certificate of occupancy. All required landscaping shall be permanently maintained in a neat and orderly condition. (Planning)

5.2. All landscape areas shall comply with the City’s water efficiency ordinance as well as the water efficient requirements of the Cypress Zoning Code and the City’s Drought Response Management Plan. All irrigation shall be provided by a drip or microspray system. (Planning)

5.3. Unless otherwise specified, all required trees shall be a minimum 15-gallon in size and of a variety approved by the Director of Planning. (Planning)

5.4. All required off-site and on-site improvements for the project, including structures, paving, and landscaping, shall be completed prior to occupancy unless the Planning Director allows Developer to provide security or an executed agreement approved by the City Attorney to ensure completion of such improvements. (Planning)

6. Operational

6.1. Parking of recreational vehicles over 20 feet long in the project is prohibited. This restriction shall be included in the lease agreements for the project (Planning).

6.2. The exterior storage of property owner or tenant property within parking areas or anywhere else on site is prohibited. This restriction shall be included in the lease CUP No. 2023-03 – 8561 Belmont Street
Conditions of Approval - Page 5
 Community Development Department  Planning Division  agreements for the project. (Planning)

7. Property Maintenance

7.1. All walls and fences shall be maintained free of significant surface cracks, dry rot, warping, missing panels or blocks, which threaten the structure’s structural integrity. (Planning)

7.2. Parking lot surfaces and pedestrian walkways shall be maintained such that any concrete, asphalt, or other driving or walking surfaces are free of potholes, buckled or cracked surfaces, or raised areas. (Planning)

7.3. The property shall be maintained free of the accumulation of trash and debris.

Trash and debris are to be stored solely in designated solid waste bins. (Planning)

7.4. Exterior building elevations shall be maintained such that the buildings are free of broken, missing, or significantly cracked surface finished materials. (Planning)

7.5. The property shall be maintained clear of all graffiti. All graffiti shall be removed within 48 hours once notified in writing by the City. (Planning)

8. Fees

8.1. As applicable, the applicant shall pay the following fees, as noted below. (Engineering)
• Park and Recreation (Prior to issuance of Building Permit) • Drainage Fee for Master Drainage Plan (Prior to issuance of Building Permit)
• City-wide Traffic Improvement (Prior to issuance of Building Permit) • Regional Traffic Improvement (Prior to issuance of Building Permit) • Final Subdivision Map Check (Prior to submittal of Map) • Sanitary Sewer Connection (Prior to issuance of Building Permit) • Grading / On-Site (Non-Structural) Plan Check (Prior to submittal of Grading Plans)
• Grading Permit and Inspection (Prior to Permit issuance) • Building Plan Check (Prior to submittal of Plans)
• Building Permit and Inspection (Prior to Permit issuance) • Public Improvement Plan Check (Prior to submittal of Plans) • Public Improvement Permit and Inspection (Prior to Permit issuance)

8.2. Within 48 hours of the approval of this project, the applicant/developer shall deliver to the Community Development Department a check payable to the County Clerk-Recorder in the amount of $50.00 for the County administrative fee, CUP No. 2023-03 – 8561 Belmont Street
Conditions of Approval - Page 6
 Community Development Department  Planning Division  to enable the City to file the Notice of Exemption pursuant to the California Environmental Quality Act (CEQA) Guidelines. (Planning)

9. Engineering

9.1. That all engineering requirements of the City of Cypress, including preparation of improvement plans and installation of all improvements such as curbs and gutters, sidewalks, street grading and pavement, sewer and drainage facilities, or other appurtenant work shall be complied with as required by the City Engineer and in accordance with specifications on file in the Office of the City Engineer, as may be modified by the City Engineer; and, that security in the form of a bond, certificate of deposit, letter of credit, completion guarantee, or cash, in an amount and form satisfactory to the City of Cypress, shall be posted with the City to guarantee the satisfactory completion of said improvements. Said security shall be posted with the City prior to the issuance of a building permit or final map approval, whichever occurs first, to guarantee the installation of the related improvements prior to final building and zoning inspections in accordance with an approved construction phasing plan. In the event the developer’s contractor and/or subcontractor fails to diligently prosecute the work within the public rightof-way, the City reserves the right, in its reasonable discretion, to issue a stop work notice and to provide a substitute contractor and/or subcontractor to complete said work at the sole cost and expense of developer. (Engineering)

9.2. The applicant shall not grant any easements over any property subject to a requirement of dedication or irrevocable offer to the City of Cypress, unless such easements are expressly made subordinate to the easements to be offered for dedication to the City. Prior to granting any of said easements, the subdivider shall furnish a copy of the proposed easement to the City Engineer for review and approval. (Engineering) (Easement Subordination)

9.3. Prior to any street construction or relocation, when there are monuments in the project area which control the location of subdivisions, streets or highways, or provide survey control, the developer shall locate and reference the monuments and shall reset them after construction as required by Section 8771 of the Business and Professions Code, in a manner meeting the approval of the City Engineer. (Engineering)

9.4. The applicant shall make all submittals, including engineering, building, grading, water quality, and inquiries through the department’s online plan check and permit application at https://cypressca.viewpointcloud.com or as determined by the City Engineer. (Engineering)

9.5. The applicant will be subject to, but not limited to, the following fees on the attached Cypress Master Fee Schedule (effective 7/1/22):
• building permit and mechanical/electrical/plumbing fees • citywide and regional traffic improvements fees
CUP No. 2023-03 – 8561 Belmont Street
Conditions of Approval - Page 7
 Community Development Department  Planning Division  • grading and public works permit and plan check fees
• Park Development Fee
(Engineering)

10.Landscaping within the Public Right-of-Way

10.1. The applicant or his successor in interest shall maintain all landscaping planted in the public right-of-way located along the frontage of their property in a healthy and safe condition. (Engineering, Maintenance)

11.Sewer and Wastewater

11.1. The developer shall construct new private sewer laterals with cleanouts at a location approved by the City Engineer. (Engineering)

11.2. All sewer lines within the development shall be private sewer lines and shall be maintained and cleaned by the developer, or successor in interest. The City of Cypress shall have no responsibility for maintenance of the private sewer lines. (Engineering)

12.Street Trees

12.1. If trees are planted within the public right of way, they shall be installed in accordance with the approved street landscape plan subject to the approval of the City Engineer. (Engineering)

12.2. The applicant or successor in interest shall trim all trees in the public right-of-way by following the City’s tree trimming policy annually or as prescribed by the City Engineer and maintain the trees in a healthy and safe condition. (Maintenance)

13.Street Lighting

13.1. N/A

14.Streets

14.1. Prior to the issuance of any certificate of occupancy, including temporary, the applicant shall resurface Belmont Street (2” grind and overlay asphalt concrete pavement) along the property frontage. Construct all improvements in accordance with Cypress Public Works standards and specifications to satisfaction of the City Engineer.

14.2. Prior to the issuance of any certificate of occupancy, including temporary, the applicant shall install a new driveway approach that is compliant with the American Disabilities Act along the property frontage on Belmont Street. The developer shall comply with the following requirements regarding the improvements:

CUP No. 2023-03 – 8561 Belmont Street
Conditions of Approval - Page 8
 Community Development Department  Planning Division  • Construct all improvements in accordance with Cypress Public Works standards and specifications to satisfaction of the City Engineer. • Prior to construction, obtain and pay for a permit and inspection services.

As part of the permit, maintain a schedule on file with the City Engineer for the work.
• Adjust utility vaults and boxes to grade in accordance with the corresponding utility’s requirements and standards.
• Relocate any utilities as necessary securing the appropriate approvals from the respective utilities.
• If necessary, grant easements to the City for pedestrian purposes for any sidewalk or driveways for compliance with ADA requirements prior to issuance of a permit for construction.
(Engineering)

14.3. Remove and replace any damaged street, pavement, sidewalk, curb and gutter, or any other public improvements as a result of work associated with this project and appropriately clean the area to the satisfaction of the City Engineer.

14.4. The applicant shall submit a street design plans for approval by the City Engineer for all proposed City streets or any work within existing public right of way. Street name signs and traffic signs shall be installed per City Standards. (Engineering)

14.5. Prior to issuance of a certificate of occupancy, the applicant shall remove and replace any existing public improvements at the development site which have existing damage, are damaged due to construction, or otherwise below current standards, to the satisfaction of the City Engineer. (Engineering)

15.Subdivisions

15.1. N/A

16.Traffic

16.1. The access driveway to the development shall be designed such as there is minimal impact on the vehicle’s tire upon ingress and egress from the driveway, as approved by the City Engineer. (Engineering)

16.2. The quantity, location, width, and type of public driveways shall be subject to the approval of the City Traffic Engineer. Prior to construction of any driveway approach upon public street right-of-way, the applicant shall obtain a public works permit.
(Engineering) (Driveways)
CUP No. 2023-03 – 8561 Belmont Street
Conditions of Approval - Page 9
 Community Development Department  Planning Division 

16.3. Prior to the issuance of any grading permits, the applicant shall provide adequate sight distance per Engineering Standard Plan 204 and 205 at all street intersections, driveways, and parkways, in a manner meeting the approval of the City Traffic Engineer. The applicant shall make all necessary revisions to the plan to meet the sight distance requirement such as removing slopes or other encroachments from the limited use area in a manner meeting the approval of the City Engineer. (Engineering) (Sight Distance)

17.Utilities

17.1. Prior to issuance of a certificate of occupancy, the applicant shall install all new and existing utility services underground. (Engineering)

17.2. Arterials shall be crossed by boring only. In public streets, lateral open cuts spaced within 20 feet of each other shall be covered with a one-inch continuous asphalt concrete cap. (Engineering)

18.Drainage

18.1. Prior to issuance of grading permits or recordation of the subdivision map, whichever comes first, at the direction of the City Engineer, the applicant shall submit a grading plan for approval signed and stamped by a registered California civil engineer and using actual grades from an Orange County Surveyor's Benchmark. (Engineering)
The applicant shall ensure the following requirements are met:
- Drainage is solved to the satisfaction of the City Engineer and Building Official. - The Grading Plan is consistent with the Water Quality Management Plan, Site Plan and any Improvement Plan for proposed public storm drains. - Submittal of a Preliminary Grading Plan if deemed necessary by the City Engineer.
- The topography of the area surrounding this development shall be made to establish existing drainage flow patterns.
- The minimum slope standards are met for 1% for landscape areas, AC parking areas 1.5%, Concrete .2%.
- All surface runoff and subsurface drainage directed to the nearest acceptable drainage facility, as determined by the City Engineer.
- Drainage facilities discharging onto adjacent property shall be designed to imitate the manner in which runoff is currently produced from the site or alternatively, the applicant may obtain a drainage acceptance and maintenance agreement, suitable for recordation, from the owner of said adjacent property.
- All drainage facilities must be consistent with the County of Orange Grading Ordinance as supplemented by the Engineering Division and Local Drainage Manual.

CUP No. 2023-03 – 8561 Belmont Street
Conditions of Approval - Page 10
 Community Development Department  Planning Division 

19.Storm Water Quality – National Pollutant Discharge Elimination System

19.1 Development must be undertaken in accordance with conditions and requirements of the Santa Ana Region National Pollutant Discharge Elimination System (NPDES) Permit Order No. R8-2009-0030 as amended by Order No. R8-2010-0062.

19.2 Prior to the issuance of any grading or building permits, the applicant shall submit for review and approval by the City Engineer, a Final Water Quality Management Plan (WQMP). The WQMP must include best management practices for source control, pollution prevention, site design, and low impact development as well as structural treatment controls among many factors.

Site design for controlling urban runoff must first evaluate infiltration, then harvest and water re-use, then evapotranspiration and only bio-treatment if the other three are not feasible. The WQMP must identify the routine structural and non-structural measures specified in the current Drainage Area Management Plan (DAMP) and utilize the Orange County Technical Guidance Document (OC TGD) as well as the Model WQMP.

Applicable WQMP projects must also:
• Utilize the City’s current WQMP template;
• Utilize the City’s online WQMP application system for submittal; • Address site Design BMPs (as applicable) such as minimizing impervious areas, maximizing permeability, minimizing connected impervious areas, creating reduced or zero discharge areas, and conserving natural areas; • Incorporate Routine Source Control BMPs as defined in the DAMP; • Include post-construction Treatment Control BMP(s) as defined in the DAMP;
• Include and Operations and Maintenance (O&M) Plan that (1) describes the long- term operation and maintenance requirements for posconstruction Treatment Control BMP(s); (2) identifies the entity that will be responsible for long-term operation and maintenance of the referenced Treatment Control BMP(s); (3) describes the mechanism for funding the long-term operation and maintenance of the references Treatment Control BMP(s); (4) includes the Water Quality Implementation Covenant and Agreement.

19.3 Prior to issuance of and grading or building permits, the applicant must submit a certified copy of the approved Final Water Quality Management Plan (WQMP) along with the final approved Grading Plan and all other supporting documentation on a USB flash drive in a single digital file (pdf) format acceptable to the City Engineer. The Final WQMP Submittal and subsequent approval of the Preliminary Water Quality Management Plan does not guarantee approval of the Final Water Quality Management Plan. Should the final calculations and submittals not meet the required thresholds necessary CUP No. 2023-03 – 8561 Belmont Street
Conditions of Approval - Page 11
 Community Development Department  Planning Division  to meet the obligations of the City under the NPDES Permit for development and its incorporated documents such as the DAMP and OC TGD. alterations to the site and the site plan may be required as prescribed by the City Engineer to the WQMP. Any significant alteration to the site plan due to the Final WQMP may require approval of the Council for the revision. Additionally, the WQMP must identify a responsible party and implement funding sources for maintaining post construction BMPs as required as part of the development and must ensure that appropriate easements and ownerships are properly recorded in public records and access is made available for inspection of said devices.

19.4 The owner is responsible for providing a Water Quality Implementation Covenant and Agreement and an Operations and Maintenance plan that outlines the funding and maintenance of water quality BMPs, consent to inspect, and indemnification on the forms provided by the City for all postconstruction stormwater mitigation and treatment devices, as required by the Santa Ana Regional National Pollutant Discharge Elimination System (NPDES) Permit Order No. R8-2009-0030 as amended by Order No. R8- 2010- 0062. The agreement will be subject to the review and approval of the City Engineer and City Attorney. Before final acceptance of project improvements, the owner or his/her designated representative must certify that the treatment device was constructed and installed in accordance with the approved plans. Prior to the issuance of a certificate of occupancy, the applicant must demonstrate compliance with the City's NPDES Implementation Program in a manner meeting the satisfaction of the City Engineer and Water Quality Manager, including:
• Demonstrate that all structural Best Management Practices (BMPs) described in the BMP Exhibit from the project's approved WQMP and Maintenance Covenant and Agreement have been implemented, constructed and installed in conformance with approved plans and specifications
• Demonstrate that the applicant has complied with all non-structural BMPs described in the project's WQMP
• Demonstrate that copies of the project's approved WQMP and Covenant and Agreement (with attached O&M Plan) are available for each of the initial occupants
• Agree to provide pay a compliance deposit to pay for any required inspections and any additional non-compliance inspections as the City deems necessary
• Submit certified record drawings as well as the project engineer’s postconstruction certification as well as the owner’s post construction certification on a template provided by the City
• Agree to pay for an inspection (special investigation) from the City for a date 12 months after the issuance of a certificate of occupancy for the project to verify compliance with the approved WQMP, Maintenance CUP No. 2023-03 – 8561 Belmont Street
Conditions of Approval - Page 12
 Community Development Department  Planning Division  Covenant and Agreement and O&M Plan.
• Demonstrate that the applicant has RECORDED one of the following:

1. The CC&R's (that must include the approved WQMP, Maintenance Covenant and Agreement and O&M Plan) for the project's
Homeowner’s Association;

2. A Water Quality Implementation Covenant and Agreement that has the approved WQMP and O&M Plan attached; or

3. The final approved Water Quality Management Plan (WQMP) and Operations and Maintenance (O&M) Plan. (Engineering, Water Quality) (NPDES/WQMP Compliance Measures)

19.5 All onsite storm drain inlets, whether newly constructed or existing, must be labeled “No Dumping Drains to Ocean” before occupancy in accordance with city requirements.

19.6 All exterior metal building surfaces, including roofs, must be coated with rustinhibitive paint to prevent corrosion and release of metal contaminants into the storm drain system prior to occupancy.

19.7 Trash enclosures and/or recycling area(s) must include a structure to cover the enclosure with a solid roof design below to direct stormwater away from entering the enclosure. All litter/waste material must be kept in leak-proof containers. Area(s) must be paved with impermeable material. No other area may drain onto these areas. The trash enclosure and/or recycling area(s) may not drain to the storm drain system and all cleanups must be performed using dry cleanup methods. Additionally, there must be a posted sign on the trash enclosure informing users that hazardous materials are not to be disposed therein. Enclosures for air compressors must include a roof installation similar to trash enclosures, and direct water from entering the enclosure. Additionally, trash enclosures may be required to be modified to meet the current solid waste requirements.

19.8 Pet waste collection systems or dispensers, which hold bags for pet owners to use to pick up waste, must be installed in close proximity to trash receptacles in all common use areas. Regular refuse collection and resupply of pickup bags must be conducted by property owner or homeowner’s or business owner’s association.

19.9 Decorative fountains and ponds must be designed with no connection to the storm drain system. The discharge of non-stormwater from fountains and ponds must not be allowed to drain to the storm drain system.

19.10 Prior to the issuance of any grading or building permit, the applicant must submit an Erosion and Sediment Control Plan (ESCP) in a manner meeting approval of the City Engineer and the Building Official and in accordance with CUP No. 2023-03 – 8561 Belmont Street
Conditions of Approval - Page 13
 Community Development Department  Planning Division  requirements of the Santa Ana Regional National Pollutant Discharge Elimination System (NPDES) Permit Order No. R8-2009-0030 as amended by Order No. R8-2010-0062. The ESCP must be developed and implemented to demonstrate compliance with the City’s NPDES Implementation Program and State water quality regulations for grading and construction activities. The ESCP must identify how all construction materials, wastes, grading or demolition debris, and stockpiles of soil, aggregates, soil amendments, etc. must be properly covered, stored, and secured to prevent transport into local drainage ways or coastal waters by wind, rain, tracking, tidal erosion or dispersion. The ESCP must also describe how the applicant will ensure that all BMPs will be maintained during construction of any future public right-ofways. The ESCP must be updated as needed to address the changing circumstances of the project site. A copy of the current ESCP must be kept at the project site and be available for City review on request.

19.11 Prior to issuance of certificate of occupancy, the applicant must clean all on site storm drain systems, catch basins, filters, storm drain lines, inlet boxes, etc. Additionally, upon direction of the City Engineer, the applicant must clean any public storm drain systems, catch basins, filters, lines, inlet boxes that the City Engineer has determined have been impacted by the applicant's construction. If clean-up is not performed, the City may make arrangements to clean the system at developer’s expense.

19.12 The owner is responsible for maintaining and operating all on-site private improvements.

19.13 All property areas must be maintained free of litter/debris.

19.14 All onsite storm drains must be cleaned at least twice a year; once immediately before October 1st (the beginning of the rainy season), and once in January.

Additional cleaning may be required by the City Engineer.

19.15 There must be no pressure washing of parking or loading areas, material and waste storage areas, or building site, unless the City approves a collection system to keep water from entering the storm drain.

19.16 Landscaping must be properly maintained with efficient irrigation to reduce runoff, promote surface filtration, and minimize the use of fertilizers and pesticides that can contribute to urban runoff pollution.

19.17 Waters from salt-chemistry pools or spas, filter waste and acid-wash or other cleaning wastewater are prohibited and illegal to discharge to the storm drain system. Water from swimming pools may be discharged to the storm drain system as long as the discharge meets the City’s Municipal Stormwater Permit requirements. There must not be any swimming pool drains directly connected to the storm drain system.

CUP No. 2023-03 – 8561 Belmont Street
Conditions of Approval - Page 14
 Community Development Department  Planning Division 

19.18 Any CUP applicant or its successor shall be responsible for the cost of any water quality inspections by the City that are mandated by the State of California or by the U.S. Environmental Protections Agency (USEPA) presently or in the future.

19.19 The Improvement Bond must incorporate all post-construction stormwater devices from the approved WQMP. These costs will be provided in the WQMP for review and inclusion in the Improvement Bond and shall cover device defects as well as malfunctions and possible replacement in the event the device is damaged or not operating per the manufacturer’s specification or intended design.

19.20 The applicant will be subject to all requirements of Section 13-29 of the Cypress Municipal Code regarding stormwater pollution prevention including, but not limited to, an Operations and Maintenance Verification Certification – WQMP Post Construction through the City’s online application and permitting system, prior to issuance of a final certificate of occupancy.

20.Building and Safety

20.1. Applicant/developer shall provide a single point of contact for all phases of the permitting process and the construction process. The point of contact may be different for permitting and construction. The applicant/developer will provide a 24-hour contact number. This person will be responsible for all communications with Building and safety including but not limited to application, plan submittal, permit issuance, inspection requests and any other requests or inquiries. (Building and Safety)

20.2. The applicant will schedule a pre-construction meeting with both the Building Official and City Engineer (or desginees) prior to any work starting on the project site. The meeting shall take place one to two weeks prior to the start of construction. All contractors including their superintendents, designers/engineers will be required to attend unless otherwise directed by the Director of Public Works. (Building and Safety, Engineering)

20.3. Construction bins for non-recyclable and recyclable materials generated from any construction site (residential and non-residential) must be placed “on site” out of the public right-of-way unless permit is obtained from the City Engineer. (Building & Safety)

20.4. A pre-grading SWPPP’s inspection is required prior to grading permit issuance.

All required grading stormwater BMPs shall be installed and inspected by the Building Division prior to release of the grading permit. (Building & Safety)

20.5. Delivery, loading and unloading of construction materials shall occur on site and not within the Public Right of Way unless a permit is obtained from the City Engineer. (Building and Safety)
CUP No. 2023-03 – 8561 Belmont Street
Conditions of Approval - Page 15
 Community Development Department  Planning Division 

21.Solid Waste

21.1. The applicant shall construct new or modify its existing trash enclosure structures to house all required solid waste containers (trash, recycle, organics) and possess a solid covered roof that prohibits stormwater to enter and then discharge from the enclosure. (Public Works, Water Quality) (Trash Enclosures)

21.2. The applicant shall subscribe to solid waste services from the City’s solid waste hauler with no less than one time per week service for trash, recycling, and organics recycling. These shall be properly maintained and not allowed to overflow. Source separated organic recycling is required unless alternatives are approved in writing from the Public Works Director. (Public Works, Water Quality)

21.3. For phased construction, as buildings are occupied, the applicant shall ensure there is adequate room and clearance for solid waste trucks and for placement of construction bins on site during construction. Access ways shall not be blocked without written approval of the Building Official. (Public Works)

21.4. The applicant shall not install a trash compactor at the site without first having received written approval from the City’s solid waste hauler. (Public Works)

22. Security

22.1. N/A

23. Fire

23.1. Plan Submittal: The applicant or responsible party shall submit the plan(s) listed below to the Orange County Fire Authority for review. Approval shall be obtained on each plan prior to the event specified.

Prior to OCFA clearance of a final map or issuance of a precise grading permit or a building permit, if a grading permit is not required:
• fire master plan (service code PR145)
Prior to issuance of a building permit:
• architectural (service codes PR264-PR272, full review) • alternative methods and materials (AM&M) request (service code PR910), if any portion of the structure will be occupied prior to completion of the entire structure. Phased occupancy AM&M requests shall accompany the architectural submittal.

CUP No. 2023-03 – 8561 Belmont Street
Conditions of Approval - Page 16
 Community Development Department  Planning Division  • underground piping for private hydrants and fire sprinkler systems (service code PR470-PR475)
• fire sprinkler system (service codes PR400-PR465)
Prior to concealing interior construction:
• sprinkler monitoring system (service code PR500)
Specific submittal requirements may vary from those listed above depending on actual project conditions identified or present during design development, review, construction, inspection, or occupancy. Portions of the project that are deferred shall be subject to the codes, standards, and other applicable requirements in force on the date that the deferred plan is submitted to OCFA.

Standard notes, guidelines, informational bulletins, submittal instructions, and other information related to plans reviewed by the OCFA may be found by visiting ocfa.org and clicking on “Business→Planning & Development Services” in the menu bar at the top of the screen.

23.2. Temporary/Final Occupancy Inspections: Prior to issuance of temporary or final certificate of occupancy, all OCFA inspections shall be completed to the satisfaction of the OCFA inspector and be in substantial compliance with codes and standards applicable to the project and commensurate with the type of occupancy (temporary or final) requested. Inspections shall be scheduled at least five days in advance by calling OCFA Inspection Scheduling at 714-573- 6150.

23.3. Phased Occupancy: Phased occupancy of this structure shall be permitted only with prior approval from OCFA and the Building Official. Requests for phased occupancy shall be submitted for evaluation by OCFA as an alternate materials and methods proposal (PR910) accompanying the architectural submittal. Such requests shall be made prior to start of construction only.

23.4. Lumber-drop Inspection: After installation of required fire access roadways and hydrants, the applicant shall receive clearance from the OCFA prior to bringing combustible building materials on-site. Call OCFA Inspection Scheduling at 714-573-6150 with the Service Request number of the approved fire master plan at least five days in advance to schedule the lumber drop inspection.

Effective: _______ (Date of CC Mtg.)

SECTIONS

1. General

2. Planning

3. Architectural
CUP No. 2023-03 – 8561 Belmont Street
Conditions of Approval - Page 17
 Community Development Department  Planning Division 

4. Signage

5. Landscaping

6. Operational

7. Property Maintenance

8. Fees

9. Engineering

10. Landscaping in the Public Right-of-Way

11. Sewer and Wastewater

12. Street Trees

13. Street Lighting

14. Streets

15. Subdivisions

16. Traffic

17. Utilities

18. Drainage

19. Storm Water Quality

20. Building & Safety

21. Solid Waste

22. Security

23. Fire

VICINITY MAP

PROJECT SITE
8561 Belmont Street
Conditional Use Permit No. 2023-02 Sumner Place
ORIGINAL SHEET SIZE 24" x 36"
T
W
E
+1 (213) 268 8621
www.kapstudios.com
[email protected]
A 5150 Wilshire Boulevard
Los Angeles, CA 90036
Suite 404
T
W
E
+1 (XXX) XXX XXXX

XXXXXXXXXXX

A XXXXXXXXXXX

XXXXXXXXXXX

REPLACE WITH CLIENT LOGO
3/8/2023 4:52:40 PM
8561 BELMONT ST

SCHEMATIC DESIGN

03.03.2023

ZONING INFORMATION
ZONING SUMMARY RM 20-FA

RESIDENTIAL MULTIPLE FAMILY ZONE/FARM ANIMAL

OVERLAY ZONE

LAND USE

ABREVIATIONS

UNIT TYPES AND AMOUNT
TEAM
PHONE
:

EMAIL:

CONTACT
:

KAP STUDIOS
5150 WILSHIRE BOULEVARD, STE 404
LOS ANGELES, CA 90036
323.879.9861
[email protected]

MICHAEL KATSIBAS

ARCHITECT
PHONE
:

EMAIL:

CONTACT
:

JOY CIVIL ENGINEERING, INC.
9681 GARDEN GROVE BL. SUITE 205
GARDEN GROVE, CA 92844
714-323-5795
[email protected]

JIN KIM
CIVIL
PHONE
:

EMAIL:

CONTACT
:

CANYON PARK STUDIO
910 DOGWOOD STREET
COSTA MESA, CA 92627
949-612-5191
[email protected]

PAUL MAKSY

LANDSCAPE ARCHITECTURE
PHONE
:

EMAIL:

CONTACT
:

LABIB FUNK & ASSOCIATES
319 MAIN ST.

EL SEGUNDO, CA 90245
213-239-9700
[email protected]

JOHN LABIB

STRUCTURAL
PHONE
:

EMAIL:

CONTACT
:

HARITON ENGINEERING, INC.
456 E. ORANGE GROVE BLVD. SUITE 301
PASADENA, CA 91104
626-449-4223
[email protected]

CELESTIN HARITON
MEP
8561 BELMONT LLC

PROJECT INFORMATION
PROJECT ADDRESS 8561 BELMONT ST CYPRESS, CA
EXISTING ELEMENTS EXISTING 2 UNITS

ASSESSOR'S PARCEL

LEGAL DESCRIPTION BLOCK TRACT
MAP REF. NO. OR TAG
PARCEL ID NO.

LOT NUMBER AREA
BUILDING OCC. SUMMARY

TYPE OF CONSTRUCTION

BUILDING CODE ANALYSIS

MAX HEIGHT, STORIES, & AREA
(CHAPTER 5)

FIRE PROTECTION

APPLICABLE CODES
NEW CONSTRUCTION OF 8-UNIT APARTMENT
BUILDING.

PROJECT DESCRIPTION

GENERAL NOTES
LOT AREA 10,005 SF
DENSITY RATIO PER ZONING 20 UNITS / ACRE

4.59, ROUNDED UP TO 5 USING STATE DENSITY BONUS
LAW

BASE DENSITY

7.5, ROUNDED UP TO 8
DENSITY WITH 50%

INCREASE WITH STATE

DENSITY BONUS LAW

4.59, ROUNDED UP TO 5 USING STATE DENSITY BONUS LAW.
15% OF THE UNITS HAVE TO BE VERY LOW INCOME TO

QUALIFY FOR THIS

BASE DENSITY
1 X 1 STUDIO
3 X 1 BEDROOMS
4 X 3 BEDROOMS
TOTAL = 8 UNITS
AFFORDABLE UNITS = 15% OF 8, WHICH IS 1.2 ROUND
UP TO 2 UNITS
STUDIO - 1 BEDROOM: 1 PARKING SPACE
2 - 3BEDROOM UNIT: 1.5 PARKING SPACES
1 X 1 STUDIO & 3 X 1 BEDROOMS = 4 PARKING SPACES
4 X 3 BEDROOMS = 6 PARKING SPACES
TOTAL = 10 PARKING SPACES

PARKING RATIO AS PER

STATE DENSITY BONUS,

INCLUSIVE OF GUEST

PARKING

INCENTIVES
REDUCED SIDE YARD ON FIRST FLOOR DOWN TO 4'

INCREASED LOT COVERAGE ADDITIONAL FLOOR, WITH ANY
EXTRA FLOORS SET BACK 15' FROM FRONT FACADE

REDUCTION TO REQUIRED LANDSCAPED AREA

REQUESTED INCENTIVES

PROPOSED
15% OF 8 UNITS QUALIFIES THE PROJECT FOR 3

INCENTIVES UNDER THE STATE DENSITY BONUS LAW

UNIT AREA
10,662 SF
600 SF
600 SF
450 SF
743 SF
1,177 SF
1,265 SF
1,320 SF
1,478 SF
1,360 SF
GROSS
UNIT 1
UNIT 2
UNIT 3
UNIT 4
UNIT 5
UNIT 6
UNIT 7
UNIT 8

LANDSCAPE
NFPA 13R SPRINKLER SYSTEMS AS PER SEC 503.1.1, THE DIMENSION OF THE 150'

FIRE APPARATIS ACCESS POND MAY BE INCREASED IF THE BUILDING IS

EQUIPPED THROUGHOUT WITH AN APPROVED AUTOMATIC SPRINKLER SYSTEM AND DOES NOT HAVE MORE THAN 2 GROUP R-2 ON GROUP OCCUPANCIES.

R 2
VB
NFPA 13R SPRINKLER SYSTEM
STORIES: 4
BUILDING CODE FLOOR AREA: 13,958.17 SF
FLOOR AREA LEVEL 1: 516 SF
FLOOR AREA LEVEL 2: 2,899 SF
FLOOR AREA LEVEL 3: 2,899 SF
FLOOR AREA LEVEL 4: 2,839 SF
TOTAL RESIDENTIAL FLOOR AREA: 9,182 SF
OVERALL BUILDING HEIGHT: 39.5 FEET

VICINITY MAP
8561 BELMONT ST, CYPRESS CA 90630
262-311-09
11/A 10,005 SQFT
N-TR 489 A LOT 11
201100158311
8561 BELMONT ST
NONE TR 489
DOC. REF. NO.

PHONE
:

EMAIL:

CONTACT
:
8561 BELMONT , LLC
8561 BELMONT ST.

CYPRESS. CA 90630
562-756-1109
[email protected]

PATRICK LABIB
OWNER

AERIAL RENDER

REQUESTED INCENTIVES

1. 2.

3. REDUCTION IN REQUIRED OPEN SPACE AREA (ZONING
CODE SECTION 2.05.040)

REDUCTION IN LANDSCAPE OPEN AREA (ZONING CODE

2.05.040)

PROVISION OF PARKING IN TUCK UNDER CARPORT RATHER

THAN IN AN ENCLOSED GARAGE ( ZONING CODE SECTION

2.05.050)

REQUESTED WAIVERS

1. 2.

REDUCTION OF NORTH SIDEYARD SETBACK FROM 10' - 0" TO
4' - 0" ( ZONING CODE SECTION 2.05.040)
INCREASE IN MAXIMUM HEIGHT FROM 35' - 0" TO 39' - 6"
( ZONING CODE SECTION 2.05.40)

LOT COVERAGE

BUILDING FOOTPRINT

LOT AREA

LOT COVERAGE (BUILDING

FOOTPRINT / LOT AREA)
10,005 SF
4,263 SF
4,263 SF / 10,005 SF = 43% < 45%
DRAWING NAME:

PROJECT NAME:

DRAWING NO:

SUBMISSION DATE DESCRIPTION
JOB NO:

SCALE
:

STATUS
:

NOTES
:

1. 2.

3. 4.

5. 6.

ALL DIMENSIONS ARE IN IMPERIAL

THIS DRAWING IS TO BE READ IN CONJUNCTION WITH ALL RELEVANT CONTRACT DOCUMENTS

THIS DRAWING IS TO BE READ IN CONJUNCTION WITH ALL ENGINEER'S DRAWINGS

DO NOT SCALE FROM THIS DRAWING

REPORT ANY ERRORS, CONTRADICTIONS AND OMISSIONS AS SOON AS POSSIBLE THESE PRELIMINARY DRAWINGS HAVE BEEN PREPARED FOR OUR CLIENT. THE DRAWINGS ARE APPROXIMATE ONLY AND ARE SUBJECT TO FURTHER DESIGN DEVELOPMENT. THE BASE FOR

THESE DRAWINGS IS RECORD INFORMATION PREPARED BY OTHERS, WHOSE ACCURACY CANNOT BE VERIFIED. DO NOT SCALE FROM DRAWINGS.WHEN THIS DRAWING IS ISSUED IN .DWG FORMAT

IT IS AN UNCONTROLLED VERSION ISSUED TO ENABLE THE RECIPIENT TO PREPARE THEIR OWN DRAWINGS FOR WHICH THEY ARE SOLEY RESPONSIBLE. IT IS BASED ON BACKGROUND INFORMATION CURRENT AT TIME OF ISSUE. KAP STUDIOS ACCEPTS NO LIABILITY FOR ANY SUCH

ALTERATIONS OR ADDITIONS TO OR DISCREPANCIES ARISING OUT OF CHANGES TO SUCH BACKGROUND INFORMATION WHICH OCCUR AFTER IT IS ISSUED BY KAP STUDIOS.

KEY
:
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CONSULTANT

REV DATE DESCRIPTION
ORIGINAL SHEET SIZE 24" x 36"
BLDG DEPT. NO.

DATE
:

GENERAL
NOTES:

CLIENT
T

ARCHITECT
W
E
+1 (213) 268
8621
www.kapstudios.com
[email protected]
A 5150 Wilshire Boulevard
Los Angeles, CA 90036
Suite 404
T
W
E
+1 (XXX) XXX XXXX

XXXXXXXXXXX

A XXXXXXXXXXX

XXXXXXXXXXX

REPLACE WITH CONSULTANT LOGO XXXXXXXXXXX
T
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A
1/4" = 1'-0"
3/8/2023 4:52:40 PM

PROJECT INFORMATION
8561 BELMONT ST
G001
22011

SCHEMATIC DESIGN
1 12/09/2022 CITY OF CYPRESS REVIEW
2 01/17/2023 CITY OF CYPRESS REVIEW
3 01/20/2023 CITY OF CYPRESS REVIEW
4 02/02/2023 CITY OF CYPRESS REVIEW
5 02/15/2023 CITY OF CYPRESS REVIEW
7 03/03/2023 CITY OF CYPRESS (ENTITLEMENT)

03.03.2023

LT LIGHT

LF LINEAR FOOT

LB POUND

LAV LAVATORY
L

INV INVERT

INT INTERIOR

INSUL INSULATION

INFO INFORMATION

IN INCH
I

HW HOT WATER
HVAC HEATING, VENTILATION,...

HORIZ HORIZONTAL

HO HOLDOPEN
HM HOLLOW METAL...

HB HOSE BIB
H

GWB GYPSUM WALLBOARD

GL GLASS

GC GENERAL CONTRACT(OR)

GALV GALVANIZED

GA GAUGE / GAGE
G

FRT FIRE RETARDANT TREATED

FT FEET

FP FIRE PROTECTION

FO FACE OF
FF&E FURNITURE, FINISHES...

FEC FIRE EXTINGUISHER CABINET

FE FIRE EXTINGUISHER

FDC FIRE DEPARTMENT CONNECTION

FD FLOOR DRAIN

FA FIRE ALARM
F

EXT EXTERIOR

EQUIP EQUIPMENT

EQ EQUAL

ELEV ELEVATOR

ELEC ELECTRICAL

EL ELEVATION

EJ EXPANSION JOINT

EA EACH
E EAST
(E) EXISTING
E

DWG DRAWING

DW DISHWASHER

DR DOOR

DN DOWN

DIM DIMENSION

DIFF DIFFUSER

DIA DIAMETER

DEPT DEPARTMENT

DEMO DEMOLITION

DEG DEGREE
D

CW COLD WATER (PIPING)

CT CERAMIC TILE

CORR CORRIDOR

COORD COORDINATE

CONT CONTINUOUS

CONC CONCRETE

CLR CLEAR

CLG CEILING

CL CENTER LINE
CJ CONTROL JOINT /...

CIP CASTINPLACE

CH CHILLER

CG CORNER GUARD

CAB CABINET
C

BSMT BASEMENT

BOT BOTTOM

BOH BACK OF HOUSE

BLDG BUILDING

BD BOARD
B

AV AUDIO VISUAL

ARCH ARCHITECTURAL

APPROX APPROXIMATE

APPD APPROVED

ACP ACOUSTICAL CEILING PANEL

ANOD ANODIZED

ANCH ANCHOR

ALUM ALUMINUM

ALT ALTERNATE

AFF ABOVE FINISH FLOOR

ADJ ADJUSTABLE
A

PTD PAPER TOWEL DISPENSER / PAINTED

PT POINT / PRESSURETREATED

PSF POUNDS PER SQUARE FOOT

POL POLISHED

PNL PANEL

PL PLATE

P PAINT
P

ORD OVERFLOW ROOF DRAIN

OPPHD OPPOSITE HAND

OPP OPPOSITE

OPH OPPOSITE HAND

OH OVER HEAD

OC ON CENTER
O

NTS NOT TO SCALE

NOM NOMINAL

NIC NOT IN CONTRACT

NA NOT APPLICABLE

N NORTH
N

MTL METAL

MTD MOUNTED

MISC MISCELLANEOUS

MIN MINIMUM

MANUF MANUFACTURER

MECH MECHANICAL

MEP MECHANICAL, ELECTRICAL, PLUMBING

MDF MEDIUM DENSITY FIBERBOARD

MAX MAXIMUM
M
UP
UP
UP
UP
DN
DN
DN
DN
Option Conflict

ELEVATOR
MAIL
3'
Option Conflict
LOBBY
Option Conflict
STAIRS
120 SF

MECHANICAL
Option Conflict
STAIRS

SIDE SETBACK
REAR

SETBACK

SIDE SETBACK
Option Conflict

ELECTRICAL
TRASH
2%2%2%2%2%2%
2%2%2%2%2%2%2%
2%
2%
2%
2%
20' - 0"
10' MIN.

ACCESS AISLE
20'

FRONT SETBACK
REAR

SETBACK
10' MIN.
4' - 0"

DRIVEWAY
24' - 0"
3' 18' - 0" 4' - 3 1/2"

SURFACE MOUNTED TRANSFORMER

MODULAR

WETLAND SYSTEM

CONCRETE PAD
SIDE

SETBACK

SIDE SETBACK

SIDE SETBACK
10' MIN.

REAR

SETBACK
10' - 0"
4' - 0"
20' - 0"

FRONT SETBACK
3' - 0" 20' - 0"

SIDE SETBACK

SIDE SETBACK
REAR

SETBACK
10' MIN.
8' - 0"
20' - 0"

FRONT SETBACK
23' - 0"

SIDE SETBACK
10' MIN.
23' - 0"

SIDE SETBACK
REAR

SETBACK
10' MIN.

SIDE SETBACK
10' MIN.
8' - 0"
35' - 2 1/4"

FRONT SETBACK
DRAWING NAME:

PROJECT NAME:

DRAWING NO:

SUBMISSION DATE DESCRIPTION
JOB NO:

SCALE
:

STATUS
:

NOTES
:

1. 2.

3. 4.

5. 6.

ALL DIMENSIONS ARE IN IMPERIAL

THIS DRAWING IS TO BE READ IN CONJUNCTION WITH ALL RELEVANT CONTRACT DOCUMENTS

THIS DRAWING IS TO BE READ IN CONJUNCTION WITH ALL ENGINEER'S DRAWINGS

DO NOT SCALE FROM THIS DRAWING

THESE DRAWINGS IS RECORD INFORMATION PREPARED BY OTHERS, WHOSE ACCURACY CANNOT BE VERIFIED. DO NOT SCALE FROM DRAWINGS.WHEN THIS DRAWING IS ISSUED IN .DWG FORMAT

ALTERATIONS OR ADDITIONS TO OR DISCREPANCIES ARISING OUT OF CHANGES TO SUCH BACKGROUND INFORMATION WHICH OCCUR AFTER IT IS ISSUED BY KAP STUDIOS.

KEY
:
/
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CONSULTANT

REV DATE DESCRIPTION
ORIGINAL SHEET SIZE 24" x 36"
BLDG DEPT. NO.

DATE
:

GENERAL
NOTES:

CLIENT
T

ARCHITECT
W
E
+1 (213) 268
8621
www.kapstudios.com
[email protected]
A 5150 Wilshire Boulevard
Los Angeles, CA 90036
Suite 404
T
W
E
+1 (XXX) XXX XXXX

XXXXXXXXXXX

A XXXXXXXXXXX

XXXXXXXXXXX

REPLACE WITH CONSULTANT LOGO XXXXXXXXXXX
T
W
E
A
3/32" = 1'-0"
3/8/2023 4:52:45 PM
(LEVEL) OVERALL FLOOR PLAN
8561 BELMONT ST
A101
22011

03.03.2023
A101
3/32" = 1'-0"

OVERALL PLAN - FIRST FLOOR
1 A101
3/32" = 1'-0"

OVERALL PLAN - SECOND FLOOR
2 A101
3/32" = 1'-0"

OVERALL PLAN - THIRD FLOOR
3 A101
3/32" = 1'-0"

OVERALL PLAN - FOURTH FLOOR
4 N
DRAWING NAME:

PROJECT NAME:

DRAWING NO:

SUBMISSION DATE DESCRIPTION
JOB NO:

SCALE
:

STATUS
:

NOTES
:

1. 2.

3. 4.

5. 6.

ALL DIMENSIONS ARE IN IMPERIAL

THIS DRAWING IS TO BE READ IN CONJUNCTION WITH ALL RELEVANT CONTRACT DOCUMENTS

THIS DRAWING IS TO BE READ IN CONJUNCTION WITH ALL ENGINEER'S DRAWINGS

DO NOT SCALE FROM THIS DRAWING

THESE DRAWINGS IS RECORD INFORMATION PREPARED BY OTHERS, WHOSE ACCURACY CANNOT BE VERIFIED. DO NOT SCALE FROM DRAWINGS.WHEN THIS DRAWING IS ISSUED IN .DWG FORMAT

ALTERATIONS OR ADDITIONS TO OR DISCREPANCIES ARISING OUT OF CHANGES TO SUCH BACKGROUND INFORMATION WHICH OCCUR AFTER IT IS ISSUED BY KAP STUDIOS.

KEY
:
/
SEA
L

CONSULTANT

REV DATE DESCRIPTION
ORIGINAL SHEET SIZE 24" x 36"
BLDG DEPT. NO.

DATE
:

GENERAL
NOTES:

CLIENT
T

ARCHITECT
W
E
+1 (213) 268
8621
www.kapstudios.com
[email protected]
A 5150 Wilshire Boulevard
Los Angeles, CA 90036
Suite 404
T
W
E
+1 (XXX) XXX XXXX

XXXXXXXXXXX

A XXXXXXXXXXX

XXXXXXXXXXX

REPLACE WITH CONSULTANT LOGO XXXXXXXXXXX
T
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A
3/8/2023 4:53:02 PM

BUILDING ELEVATIONS COLOR
8561 BELMONT ST
A202
22011

03.03.2023

FOURTH FLOOR

THIRD FLOOR

SECOND FLOOR

C/L BELMONT ST
(E) TWO STORY HOUSE
(E) TWO STORY HOUSE
(E) ONE STORY

APARTMENT
(E) ONE
STORY

APARTMENT

C/L BELMONT ST C/L BELMONT ST
(E) TWO STORY HOUSE
(E) TWO STORY HOUSE
(E) ONE STORY

APARTMENT
(E) ONE
STORY

APARTMENT
(E) TWO STORY HOUSE
(E) TWO STORY HOUSE
(E) ONE STORY

APARTMENT
(E) ONE
STORY

APARTMENT

PROPOSED BUILDING

C/L BELMONT ST

FOURTH FLOOR

THIRD FLOOR

SECOND FLOOR
(E) TWO STORY HOUSE
(E) TWO STORY HOUSE
(E) ONE STORY

APARTMENT
(E) ONE
STORY

APARTMENT

PROPOSED BUILDING

C/L BELMONT ST C/L BELMONT ST
(E) TWO STORY HOUSE
(E) TWO STORY HOUSE
(E) ONE STORY

APARTMENT
(E) ONE
STORY

APARTMENT

PROPOSED BUILDING
(E) TWO STORY HOUSE
(E) TWO STORY HOUSE
(E) ONE STORY

APARTMENT
(E) ONE
STORY

APARTMENT

PROPOSED BUILDING
DRAWING NAME:

PROJECT NAME:

DRAWING NO:

SUBMISSION DATE DESCRIPTION
JOB NO:

SCALE
:

STATUS
:

NOTES
:

1. 2.

3. 4.

5. 6.

ALL DIMENSIONS ARE IN IMPERIAL

THIS DRAWING IS TO BE READ IN CONJUNCTION WITH ALL RELEVANT CONTRACT DOCUMENTS

THIS DRAWING IS TO BE READ IN CONJUNCTION WITH ALL ENGINEER'S DRAWINGS

DO NOT SCALE FROM THIS DRAWING

THESE DRAWINGS IS RECORD INFORMATION PREPARED BY OTHERS, WHOSE ACCURACY CANNOT BE VERIFIED. DO NOT SCALE FROM DRAWINGS.WHEN THIS DRAWING IS ISSUED IN .DWG FORMAT

ALTERATIONS OR ADDITIONS TO OR DISCREPANCIES ARISING OUT OF CHANGES TO SUCH BACKGROUND INFORMATION WHICH OCCUR AFTER IT IS ISSUED BY KAP STUDIOS.

KEY
:
/
SEA
L

CONSULTANT

REV DATE DESCRIPTION
ORIGINAL SHEET SIZE 24" x 36"
BLDG DEPT. NO.

DATE
:

GENERAL
NOTES:

CLIENT
T

ARCHITECT
W
E
+1 (213) 268
8621
www.kapstudios.com
[email protected]
A 5150 Wilshire Boulevard
Los Angeles, CA 90036
Suite 404
T
W
E
+1 (XXX) XXX XXXX

XXXXXXXXXXX

A XXXXXXXXXXX

XXXXXXXXXXX

REPLACE WITH CONSULTANT LOGO XXXXXXXXXXX
T
W
E
A
1" = 30'-0"
3/8/2023 4:53:03 PM

WINDOW ALIGNMENT
8561 BELMONT ST
G011
22011

SCHEMATIC DESIGN
01 12/09/2022 CITY OF CYPRESS REVIEW
02 01/17/2023 CITY OF CYPRESS REVIEW
03 01/20/2023 CITY OF CYPRESS REVIEW
04 02/02/2023 CITY OF CYPRESS REVIEW
05 02/15/2023 CITY OF CYPRESS REVIEW
06 03/02/2023 CITY OF CYPRESS (ENTITLEMENT)

03.03.2023
G011
1" = 30'-0"

NEIGHBOURHOOD STUDIES - WINDOW ALIGNMENT SECOND LEVEL
1 G011
1" = 30'-0"

NEIGHBOURHOOD STUDIES - WINDOW ALIGNMENT GROUND LEVEL
2 N
DRAWING NAME:

PROJECT NAME:

DRAWING NO:

SUBMISSION DATE DESCRIPTION
JOB NO:

SCALE
:

STATUS
:

NOTES
:

1. 2.

3. 4.

5. 6.

ALL DIMENSIONS ARE IN IMPERIAL

THIS DRAWING IS TO BE READ IN CONJUNCTION WITH ALL RELEVANT CONTRACT DOCUMENTS

THIS DRAWING IS TO BE READ IN CONJUNCTION WITH ALL ENGINEER'S DRAWINGS

DO NOT SCALE FROM THIS DRAWING

THESE DRAWINGS IS RECORD INFORMATION PREPARED BY OTHERS, WHOSE ACCURACY CANNOT BE VERIFIED. DO NOT SCALE FROM DRAWINGS.WHEN THIS DRAWING IS ISSUED IN .DWG FORMAT

ALTERATIONS OR ADDITIONS TO OR DISCREPANCIES ARISING OUT OF CHANGES TO SUCH BACKGROUND INFORMATION WHICH OCCUR AFTER IT IS ISSUED BY KAP STUDIOS.

KEY
:
/
SEA
L

CONSULTANT

REV DATE DESCRIPTION
ORIGINAL SHEET SIZE 24" x 36"
BLDG DEPT. NO.

DATE
:

GENERAL
NOTES:

CLIENT
T

ARCHITECT
W
E
+1 (213) 268
8621
www.kapstudios.com
[email protected]
A 5150 Wilshire Boulevard
Los Angeles, CA 90036
Suite 404
T
W
E
+1 (XXX) XXX XXXX

XXXXXXXXXXX

A XXXXXXXXXXX

XXXXXXXXXXX

REPLACE WITH CONSULTANT LOGO XXXXXXXXXXX
T
W
E
A
3/8/2023 4:53:04 PM

EXTERIOR RENDER - NEW
8561 BELMONT ST
A01
22011

03.03.2023

EXTERIOR VIEW - NORTH - FRONT YARD
DRAWING NAME:

PROJECT NAME:

DRAWING NO:

SUBMISSION DATE DESCRIPTION
JOB NO:

SCALE
:

STATUS
:

NOTES
:

1. 2.

3. 4.

5. 6.

ALL DIMENSIONS ARE IN IMPERIAL

THIS DRAWING IS TO BE READ IN CONJUNCTION WITH ALL RELEVANT CONTRACT DOCUMENTS

THIS DRAWING IS TO BE READ IN CONJUNCTION WITH ALL ENGINEER'S DRAWINGS

DO NOT SCALE FROM THIS DRAWING

THESE DRAWINGS IS RECORD INFORMATION PREPARED BY OTHERS, WHOSE ACCURACY CANNOT BE VERIFIED. DO NOT SCALE FROM DRAWINGS.WHEN THIS DRAWING IS ISSUED IN .DWG FORMAT

ALTERATIONS OR ADDITIONS TO OR DISCREPANCIES ARISING OUT OF CHANGES TO SUCH BACKGROUND INFORMATION WHICH OCCUR AFTER IT IS ISSUED BY KAP STUDIOS.

KEY
:
/
SEA
L

CONSULTANT

REV DATE DESCRIPTION
ORIGINAL SHEET SIZE 24" x 36"
BLDG DEPT. NO.

DATE
:

GENERAL
NOTES:

CLIENT
T

ARCHITECT
W
E
+1 (213) 268
8621
www.kapstudios.com
[email protected]
A 5150 Wilshire Boulevard
Los Angeles, CA 90036
Suite 404
T
W
E
+1 (XXX) XXX XXXX

XXXXXXXXXXX

A XXXXXXXXXXX

XXXXXXXXXXX

REPLACE WITH CONSULTANT LOGO XXXXXXXXXXX
T
W
E
A
3/8/2023 4:53:05 PM

EXTERIOR RENDER - NEW
8561 BELMONT ST
A02
22011

03.03.2023

EXTERIOR VIEW - NORTH - FRONTYARD
DRAWING NAME:

PROJECT NAME:

DRAWING NO:

SUBMISSION DATE DESCRIPTION
JOB NO:

SCALE
:

STATUS
:

NOTES
:

1. 2.

3. 4.

5. 6.

ALL DIMENSIONS ARE IN IMPERIAL

THIS DRAWING IS TO BE READ IN CONJUNCTION WITH ALL RELEVANT CONTRACT DOCUMENTS

THIS DRAWING IS TO BE READ IN CONJUNCTION WITH ALL ENGINEER'S DRAWINGS

DO NOT SCALE FROM THIS DRAWING

THESE DRAWINGS IS RECORD INFORMATION PREPARED BY OTHERS, WHOSE ACCURACY CANNOT BE VERIFIED. DO NOT SCALE FROM DRAWINGS.WHEN THIS DRAWING IS ISSUED IN .DWG FORMAT

ALTERATIONS OR ADDITIONS TO OR DISCREPANCIES ARISING OUT OF CHANGES TO SUCH BACKGROUND INFORMATION WHICH OCCUR AFTER IT IS ISSUED BY KAP STUDIOS.

KEY
:
/
SEA
L

CONSULTANT

REV DATE DESCRIPTION
ORIGINAL SHEET SIZE 24" x 36"
BLDG DEPT. NO.

DATE
:

GENERAL
NOTES:

CLIENT
T

ARCHITECT
W
E
+1 (213) 268
8621
www.kapstudios.com
[email protected]
A 5150 Wilshire Boulevard
Los Angeles, CA 90036
Suite 404
T
W
E
+1 (XXX) XXX XXXX

XXXXXXXXXXX

A XXXXXXXXXXX

XXXXXXXXXXX

REPLACE WITH CONSULTANT LOGO XXXXXXXXXXX
T
W
E
A
3/8/2023 4:53:05 PM

EXTERIOR RENDER - NEW
8561 BELMONT ST
A03
22011

03.03.2023

EXTERIOR VIEW - SOUTH - FRONT YARD
PL-5 Rev. 2011

NOTICE OF EXEMPTION
FROM: City of Cypress
5275 Orange Avenue
Cypress, CA 90630
TO: X County Clerk-Recorder
Public Services Division
P.O. Box 238
Santa Ana, CA 92702
Project Title
Conditional Use Permit No. 2023-02
Project Location - Specific
8561 Belmont Street
Project Location - City
Cypress
Project Location - County
Orange
Description of Nature, Purpose, and Beneficiaries of Project A request to demolish two existing dwelling units and construct an eight-unit apartment building on a 10,000 square-foot property, owned and operated by Mr. Patrick Labib.

Name of Public Agency Approving Project
City of Cypress
Name of Person or Agency Carrying Out Project (Applicant’s Name and Address) Mr. Patrick Labib of 8561 Belmont, LLC, 8561 Belmont Street, Cypress, CA 90630 Exempt Status: (Check One)
Ministerial (Sec. 21080(b)(1);15268);
Declared Emergency (Sec. 21080(b)(3);15269(a));
Emergency Project (Sec. 21080(b)(4); 15269(b)(c));
X Categorical Exemption, Class 32 (Sec. 15332(a-e))
Reasons why project is exempt:

The project consists of in-fill development on a site that: (a) is consistent with the general plan and zoning designations, (b) is less than five acres in size within an urbanized area, (c) has no habitat for endangered species, (d) does not result in significant effects relating to traffic, noise, air quality, or water quality, and (e) is adequately served by all required utilities and public services.

Lead Agency Contact Person
Alicia Velasco, Planning Director
Area Code
(714)
Telephone Number
229-6720
If filed by applicant:

1. Attach certified document of exemption finding.

2. Has a notice of exemption been filed by the public agency approving the project? Yes X No ________
_________________________________ Alicia Velasco
Signature Date Planning Director
Signed by Lead Agency
CITY OF CYPRESS
CITY COUNCIL REPORT
City Council Regular 3.

FROM: Alisha Farnell, City Clerk
DATE: 04/10/2023
SUBJECT: Receive and File Public Comments Submitted for the April 10, 2023 City Council Meeting

RECOMMENDATION
Receive and file submitted public comments.

BUDGET IMPACT
None.

LEGAL REVIEW
None required.

APPROVED BY: Peter Grant, City Manager
CITY OF CYPRESS
CITY COUNCIL REPORT
City Council Regular 5.

FROM: Alisha Farnell, City Clerk
DATE: 04/10/2023
SUBJECT: Approve Minutes - Meeting of March 20, 2023 and March 27, 2023

RECOMMENDATION
Approve as submitted.

BUDGET IMPACT
None.

LEGAL REVIEW
None required.

APPROVED BY: Peter Grant, City Manager
Attachments
March 20, 2023 Special City Council Meeting Minutes
March 27, 2023 City Council Meeting Minutes

SPECIAL MEETING

CYPRESS CITY COUNCIL
MARCH 20, 2023
10:00 A.M.

A special meeting of the Cypress City Council was called to order at 10:01 a.m. by Mayor Hertz-Mallari in the Executive Board Room, 5275 Orange Avenue, Cypress, California

ROLL CALL
Cypress City Council, also acting as the Ex-Officio Governing Board of Directors of the Cypress Recreation and Park District
Mayor Anne Hertz-Mallari
Mayor Pro Tem Scott Minikus
Council Member David Burke
Council Member Frances Marquez – absent
Council Member Bonnie Peat

STAFF PRESENT
City Manager Peter Grant
City Attorney Fred Galante
City Clerk Alisha Farnell
ORAL COMMUNICATIONS (Limited to three minutes per speaker, unless modified by the City Council)
None.

CONSENT CALENDAR
Item No. 1: Receive Public Comments Submitted for the March 20, 2023 Special City Council Meeting
Recommendation: Receive and file submitted public comments.

The City Clerk reported that no public comments were submitted.

No action was taken.

CLOSED SESSION
The City Attorney announced the Closed Session item as follows:

LIABILITY CLAIMS
Pursuant to Section 54956.95
Claimant: Council Member Frances Marquez
Agency claimed against: City of Cypress
Mayor Hertz-Mallari recessed the meeting at 10:02 a.m.

Mayor Hertz-Mallari reconvened the meeting at 12:20 p.m.

REPORT OF CLOSED SESSION
The City Attorney reported that the City Council provided direction and no further reportable action was taken.

ADJOURNMENT
Mayor Hertz-Mallari adjourned the meeting at 12:21 p.m. to an adjourned Regular Meeting, to be held on Monday, March 27, 2023, beginning at 5:30 p.m. in the Executive Board Room.
_______________________________

MAYOR OF THE CITY OF CYPRESS
ATTEST:
___________________________________

CITY CLERK OF THE CITY OF CYPRESS

REGULAR MEETING

CYPRESS CITY COUNCIL
MARCH 27, 2023
4:30 P.M.

A regular meeting of the Cypress City Council was called to order at 4:30 p.m. by Mayor Pro Tem Minikus in the Council Chambers, 5275 Orange Avenue, Cypress, California.

ROLL CALL
Cypress City Council, also acting as the Ex-Officio Governing Board of Directors of the Cypress Recreation and Park District
Mayor Anne Hertz-Mallari – arrived at 4:46 p.m.

Mayor Pro Tem Scott Minikus
Council Member David Burke
Council Member Frances Marquez – arrived at 4:31 p.m.

Council Member Bonnie Peat

STAFF PRESENT
City Manager Peter Grant
City Attorney Fred Galante
Director of Finance and Administrative Services Matt Burton Director of Public Works Doug Dancs
Director of Recreation and Community Services Jeff Draper Chief of Police Mark Lauderback
Planning Director Alicia Velasco
Assistant Director of Finance and Administrative Services Donna Mullally City Clerk Alisha Farnell
Senior Management Analyst Kirsten Graham
Senior Management Analyst Jason Machado

ORAL COMMUNICATIONS ON CLOSED SESSION/ WORKSHOP ITEMS
Jimmy Fuller, Cypress, spoke regarding Non-Profit Grant Award Requests.

WORKSHOP SESSION
Review of Fiscal Strategies, Reserves, Pension Liabilities and Pension Trust The Director of Finance and Administrative Services provided a report on this item.

City Council discussion ensued.

No action was taken.

Review of Contribution Policy for Non-Profit Organizations and Non-Profit Grant Award Requests for FY 2023-24 and FY 2024-25
The Director of Recreation and Community Services provided a report on this item.

Mayor Hertz-Mallari recused herself from the portion of the report and discussion regarding the Boys and Girls Club of Greater Anaheim-Cypress due to her employment with the organization.

City Council discussion ensued.

No action was taken.

Mayor Pro Tem Minikus recessed the meeting at 5:56 p.m.

RECONVENE
Mayor Hertz-Mallari reconvened the City Council meeting at 6:05 p.m.

Council Member Bonnie Peat

STAFF PRESENT
City Manager Peter Grant
City Attorney Fred Galante
Director of Finance and Administrative Services Matt Burton Director of Public Works Doug Dancs
Director of Recreation and Community Services Jeff Draper Chief of Police Mark Lauderback
Planning Director Alicia Velasco
City Clerk Alisha Farnell
City Engineer Nick Mangkalakiri
INVOCATION Charlie Koo, MiracleLand Baptist Church, led the Invocation.

PLEDGE OF ALLEGIANCE Shelley Henderson, Cypress resident, led the Pledge of Allegiance.

REPORT OF WORKSHOP AGENDA / CLOSED SESSION
The City Attorney reported that the City Council held a Workshop Session regarding two items listed on the agenda, review of Fiscal Strategies, Reserves, Pension Liabilities and Pension Trust and Review of Contribution Policy for Non-Profit Organizations and NonProfit Grant Award Requests for FY 2023-24 and FY 2024-25. He further stated that the City Council received presentations on the two items and no reportable action was taken.

PRESENTATIONS
The Planning Director introduced Code Enforcement Officer Herbert Manansala.

The Director of Public Works introduced Associate Engineer Baruc Bravo.

The City Council presented a certificate of recognition to Shelly Henderson and her family.

ORAL COMMUNICATIONS ON AGENDA ITEMS
Mariellen Yarc, Cypress, spoke on behalf of the Cypress Chamber of Commerce regarding the Presentation item recognizing Shelly Henderson.

Katie Shapiro, Cypress, spoke regarding the Presentation item recognizing Shelley Henderson and Agenda Item No. 13.

Helen Le (via virtual participation), Cypress, spoke regarding Presentation item recognizing Shelley Henderson and Agenda Item No. 8.

PUBLIC HEARINGS
Item No. 1: Site Plan Review, Tentative Parcel Map, and Mitigated Negative Declaration for the Goodman Commerce Center at 5757 Plaza Drive Mayor Hertz-Mallari opened the public hearing.

Mayor Hertz-Mallari invited members of the public to speak on this item.

Bob Youngsma, Cypress, spoke regarding traffic concerns.

Helen Le, Cypress, spoke regarding traffic and environmental concerns.

No further comments were made.

A motion was made by Mayor Pro Tem Minikus, and seconded by Council Member Marquez, to continue the public hearing to April 10, 2023.

The motion was unanimously carried by the following roll call vote:

AYES: 5 COUNCIL MEMBERS: Burke, Marquez, Peat, Minikus and Hertz-Mallari NOES: 0 COUNCIL MEMBERS: None
ABSENT: 0 COUNCIL MEMBERS: None

CONSENT CALENDAR
All matters listed on the Consent Calendar are to be approved with one motion unless a Council Member requests separate action on a specific item.

Mayor Pro Tem Minikus stated that Agenda Item No. 12, the Warrant Register, includes electronic fund transfer No. 12783 for $883.02 as reimbursement for medical coverage he is entitled to receive as a CalPERS annuitant. He indicated that in voting for any motion to approve the Warrant Register, he would not be voting on electronic fund transfer No. 12783 for the reason disclosed.

Council Member Marquez requested to pull Agenda Item No. 8.

A motion was made by Council Member Peat, and seconded by Council Member Burke, to approve Consent Calendar items No. 2 through 7 and 9 through 12.

The motion was unanimously carried by the following roll call vote:

AYES: 5 COUNCIL MEMBERS: Burke, Marquez, Peat, Minikus and Hertz-Mallari NOES: 0 COUNCIL MEMBERS: None
ABSENT: 0 COUNCIL MEMBERS: None
Item No. 2: Receive and File Public Comments Submitted for the March 27, 2023 City Council Meeting
Recommendation: Receive and file submitted public comments.

Item No. 3: Introduce and/or Adopt All Ordinances and Resolutions Presented for Consideration by Title Only and to Waive Further Reading Item No. 4: Approve Minutes – Meeting of February 27, 2023 and March 13, 2023 Recommendation: Approve as submitted.

Item No. 5: Approve Purchase of Police Department Gas Masks Recommendation: Approve the purchase of 70 Police Department gas masks from Curtis Blue Line for $40,590.47
Item No 6: Award a Contract for Design of the Oak Knoll Park Security Improvements, Project 331
Recommendation: Award a contract to Triad Consulting Group for the design of Oak Knoll Park Security Improvements, Projects 331, for $17,160 and authorize a contingency of $2,600.

Item No. 7: Approve a Lease and Service Agreement for Smart Waste and Recycling Trash Cans
Recommendation: Approve a five-year service agreement with Bigbelly Inc. for smart waste and recycling trashcans
Item No. 9: Receive and File the 2022 General Plan Annual Progress Report on the Implementation of the Housing Element
Recommendation: Receive and file the 2022 General Plan Annual Progress Report on the implementation of the Housing Element.

Item No. 10: Receive and File the Investment Report for the Month Ended February 28, 2023
Recommendation: Receive and file the attached investment report.

Item No. 11: Receive an Update on the Strategic Plan Six-Month Objectives Recommendation: Receive an update on the Strategic Plan six-month objectives.

Item No. 12: Receive and File Register of Warrants, Transfers, and Wires Issued for the Period of February 25, 2023 through March 10, 2023 Recommendation: Receive and file the attached payment register summarized below for the period of February 25, 2023 through March 10, 2023:
• Electronic Funds Transfers 12769 through 12805
• Warrants 61850 through 61949
• Payroll Transfers W1497

END OF CONSENT CALENDAR
Regarding Item No. 8: First Reading of Ordinance Amending the Municipal Code to Incorporate City Council approved changes to Agenda Structure Council Member Marquez commented on this item.

A motion was made by Council Member Marquez to continue the item to the next regular City Council meeting.

City Council discussion ensued.

The motion made by Council Member Marquez was seconded by Council Member Burke, to continue the item to the next regular City Council meeting.

The motion was carried by the following roll call vote:

AYES: 3 COUNCIL MEMBERS: Burke, Marquez and Minikus
NOES: 2 COUNCIL MEMBERS: Peat and Hertz-Mallari
ABSENT: 0 COUNCIL MEMBERS: None
City Council discussion continued.

A motion was made by Mayor Pro Tem Minikus, and seconded by Council Member Peat, to clarify the prior motion voted on and limit the discussion on the continued item.

City Council discussion continued.

The motion was carried by the following roll call vote:

AYES: 3 COUNCIL MEMBERS: Peat, Minikus and Hertz-Mallari NOES: 2 COUNCIL MEMBERS: Burke and Marquez
ABSENT: 0 COUNCIL MEMBERS: None
City Council discussion continued.

A motion was made by Mayor Pro Tem Minikus, and seconded by Council Member Peat, to reconsider the first reading of an Ordinance, by title only, amending Sections 2-1 and 2-2, and subsections thereunder, of the Municipal Code relating to the conduct of City Council meetings.

The motion was unanimously carried by the following roll call vote:

AYES: 5 COUNCIL MEMBERS: Burke, Marquez, Peat, Minikus and Hertz-Mallari NOES: 0 COUNCIL MEMBERS: None
ABSENT: 0 COUNCIL MEMBERS: None
A motion was made by Mayor Hertz-Mallari, and seconded by Council Member Peat, to Introduce for first reading an Ordinance, by title only, amending Sections 2-1 and 2-2, and subsections thereunder, of the Municipal Code relating to the conduct of City Council meetings with an amendment to section 2-2.15(a)2iii to remove the word “benefit” from revocation of special privileges.

The motion was unanimously carried by the following roll call vote:

AYES: 5 COUNCIL MEMBERS: Burke, Marquez, Peat, Minikus and Hertz-Mallari NOES: 0 COUNCIL MEMBERS: None
ABSENT: 0 COUNCIL MEMBERS: None
A motion was made by Council Member Marquez, and seconded by Council Member Burke, to add an item to a future agenda to discuss and provide potential direction on the portions of Ordinance No. 1193 that were not amended by Item No. 8 on the March 27, 2023 agenda.

The motion was carried by the following roll call vote:

AYES: 3 COUNCIL MEMBERS: Burke, Marquez and Minikus
NOES: 2 COUNCIL MEMBERS: Peat and Hertz-Mallari
ABSENT: 0 COUNCIL MEMBERS: None

NEW BUSINESS
None.

CONTINUED ITEMS
Item No. 13: Receive an Update from the City Manager and Provide Direction Regarding the Civility, Conduct, Ethics and Governance Policy Mayor Hertz-Mallari requested an update from the City Manager.

The City Manager stated there has been no changes since the March 13, 2023 meeting.

City Council discussion ensued.

No action was taken.

ORAL COMMUNICATIONS ON ITEMS NOT ON THE AGENDA
Lianne Osendorf, Cypress, spoke regarding Council Members dedication to their job, the fentanyl crisis, and letting past issues go.

Jose Meza, Buena Park, spoke regarding family history, tress, and wildlife.

Bob Youngsma, Cypress, spoke regarding an article written by Council Member Marquez.

Ed Kraemer (via virtual participation), Cypress, spoke regarding Agenda Item Nos. 8 and 13.

Glenn Button (via virtual participation), Cypress, spoke regarding City Council preparation and readiness.

Helen Le (via virtual participation), Cypress, thanked the City Council for civility on dais and spoke regarding Agenda Item No. 8.

COUNCIL MEMBER REPORTS AND REMARKS
Council Member Marquez:

Attended a graveyard service for a Cypress veteran and resident. Attended the Santa Ana River Flood Protection Agency executive committee meeting. Spoke regarding emails she received from Lexington Junior High students.

Council Member Peat:

Attended the Cypress Chamber of Commerce Networking Breakfast. Attended the Orange County Sanitation District board meeting. Attended the 2023 Woman of Distinction event hosted by Congresswoman Michelle Steel. Attended a Chamber of Commerce grand opening event for Bespoke Dental. Attended an Orange County Mosquito and Vector Control District board meeting. Attended a Boys and Girls Club of Greater Anaheim-Cypress event.

Participated in a ride along with Orange County Fire Authority. Met with Goodman Commerce Center and received an update on the proposed project.

Council Member Burke:

Thanked everyone who participated in tonight’s meeting and the Henderson family for their service to the community. Attended Bridges at Kraemer Place Community Advisory Board meeting.

Mayor Pro Tem Minikus:

Thanked everyone who participated in tonight’s meeting. Spoke regarding his recent trip to Israel. Responded to public comments made during the March 13, 2023 City Council meeting.

Mayor Hertz-Mallari
Spoke regarding the emails she has received from Lexington Junior High students as part of their civic action week. Participated in a Mayor’s roundtable event hosted by Congresswoman Michelle Steel. Attended Woman of Distinction events hosted by Congresswoman Michelle Steel and Assemblywoman Sharon Quirk-Silva. Attended a Chamber of Commerce grand opening event for Bespoke Dental. Met with Goodman Commerce Center and received an update on the proposed project.

CITY MANAGER REMARKS
Announced the City Council’s Special Meeting for strategic planning, the upcoming Citizens Academy, and the Spring Egg Hunt.

ADJOURNMENT
Mayor Hertz-Mallari adjourned the meeting at 8:18 p.m. to an adjourned Regular Meeting, to be held on Monday, April 10, 2033, beginning at 5:30 p.m. in the Executive Board Room. _______________________________

MAYOR OF THE CITY OF CYPRESS
ATTEST:
___________________________________

CITY CLERK OF THE CITY OF CYPRESS
CITY OF CYPRESS
CITY COUNCIL REPORT
City Council Regular 6.

FROM: Douglas Dancs, Director of Public Works
DATE: 04/10/2023
SUBJECT: Accept the Arterial Rehabilitation, Project 316

RECOMMENDATION

1. Accept the Arterial Rehabilitation, Project 316, in the amount of $1,738,259.02 and approve the final payment of $124,813.14 to Hardy and Harper, Inc.; and

2. Authorize the City Engineer to file a Notice of Completion with the County Recorder.

DISCUSSION
On November 14, 2022, the City Council awarded a construction contract to Hardy and Harper, Inc. for the annual Arterial Rehabilitation project. The project resurfaced over 11 lane miles of pavement, including Cerritos Avenue (from Denni Street to Walker Street), Orange Avenue (from Moody Street to Valley View Street), and portions of Lexington Drive just south of Cerritos Avenue. The work began in December and was completed in March.

Public Works will release the Labor and Materials Bond and the Faithful Performance Bond upon expiration of the required lien period.

BUDGET IMPACT
The original estimated cost of construction and inspection was $2,178,750, and final project cost is $1,738,259.02 as summarized in the attached table. Sufficient amounts are budgeted in the Traffic Mitigation Assessment Fund and the Road Maintenance and Rehabilitation Account (RMRA) Fund for these project costs.

LEGAL REVIEW
None required.

APPROVED BY: Peter Grant, City Manager
Attachments
Cost Table

PROJECT COST TABLE
Item Description
Original
Amount
Actual
Expenditures Difference
Construction
Construction $ 1,848,000.00 $ 1,659,641.02 $ 188,358.98 Construction Contingency $ 185,000.00 $ - $ 185,000.00
Sub-total Construction $ 2,033,000.00 $ 1,659,641.02 $ 373,358.98 Construction Management & Inspection
Inspection $ 132,450.00 $ 78,618.00 $ 53,832.00
Inspection Contingency $ 13,300.00 $ - $ 13,300.00
Sub-total Construction $ 145,750.00 $ 78,618.00 $ 67,132.00 Total Project $ 2,178,750.00 $ 1,738,259.02 $ 440,490.98 Arterial Rehabilitation
Project 316
CITY OF CYPRESS
CITY COUNCIL REPORT
City Council Regular 7.

FROM: Peter Grant, City Manager
DATE: 04/10/2023
SUBJECT: Adopt a Resolution approving the California State-Subdivision Agreements Regarding Distribution and Use of Settlement Funds with CVS, Allergan, Teva, Walmart and Walgreens

RECOMMENDATION
Adopt a Resolution approving the California State-Subdivision Agreements Regarding Distribution and Use of Settlement Funds with Teva, Allergan, CVS, Walgreens, and Walmart.

DISCUSSION
Tentative nationwide settlements have been reached with Walmart, Walgreens, Teva, Allergan, and CVS to resolve lawsuits accusing the pharmacy chains of mishandling opioid pain drugs. These nationwide settlements are the first settlements with retail pharmacy companies and follow the 2021 settlements with drug-makers and distributors.

In December 2021, the City Council approved participation in national opioid settlements with drug-makers and distributors (attached). As part of these settlements, the City agreed to a very broad release of opioid-related claims against the settling defendants, which included both known and unknown claims. Cypress was allocated approximately $59,000 from the settlement agreements and the proceeds may only be used for opioid remediation activities, which will be coordinated through the County of Orange. If the City Council chooses not to participate, Cypress' allocation will be redistributed to other agencies participating in the settlement.

BUDGET IMPACT
The actual amount the City will receive (and pass through to the County) from the settlement depends on a variety of factors, including the number of California municipalities participating.

LEGAL REVIEW
The City Attorney drafted the resolution.

APPROVED BY: Peter Grant, City Manager
Attachments
Resolution
December 2021 Agenda Item
Settlements Documents Package
RESOLUTION NO. ____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS

AUTHORIZING THE CITY OF CYPRESS TO ENTER INTO THE

SETTLEMENT AGREEMENTS WITH CVS, ALLERGAN, TEVA,

WALMART, AND WALGREENS, 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 plaintiffs in the MDL and Walmart Inc. (“Walmart”); and
WHEREAS on or about November 22, 2022, a proposed nationwide tentative settlement was reached between the plaintiffs in the MDL and Teva Pharmaceutical Industries Ltd. and all of its respective past and present direct or indirect parents, subsidiaries, divisions, affiliates, joint ventures, predecessors, successors, assigns, including but not limited to Teva Pharmaceuticals USA, Inc., Actavis LLC (f/k/a Actavis Inc.), Actavis Elizabeth LLC, Actavis Kadian LLC, Actavis Pharma, Inc. (f/k/a Watson Pharma, Inc.), Actavis Kadian LLC, Actavis Laboratories UT, Inc. (f/k/a Watson Laboratories, Inc. – Utah), Actavis Mid Atlantic LLC, Actavis Totowa LLC, Actavis Laboratories FL, Inc. (f/k/a Watson Laboratories, Inc. – Florida), Actavis South Atlantic LLC, Warner Chilcott Company LLC, and Watson Laboratories, Inc., and Anda Inc. (collectively, “Teva”); and
WHEREAS on or about November 22, 2022, a proposed nationwide tentative settlement was reached between the plaintiffs in the MDL and Allergan Finance, LLC (f/k/a Actavis, Inc., which in turn was f/k/a Watson Pharmaceutics, Inc.) and Allergan Limited (f/k/a Allergan plc, which, in turn, was f/k/a Actavis plc)(collectively, “Allergan”); and
WHEREAS, on or about December 9, 2022, a proposed nationwide tentative settlement was reached between the plaintiffs in the MDL and CVS Health Corporation and CVS Pharmacy, Inc. and all of their past and present direct and indirect parent and subsidiaries (collectively, “CVS”); and
WHEREAS, on or about December 9, 2022, a proposed nationwide tentative settlement was reached between the plaintiffs in the MDL and Walgreen Co. (“Walgreens”); and
WHEREAS, CVS, Teva, Walgreens, Walmart, and Allergan shall be referred in this Resolution as “Settling Defendants”; and
WHEREAS, as part of the settlements with the Settling Defendants, local subdivisions, including certain cities, that are not plaintiffs in the MDL may participate in the settlements in exchange for a release of the Settling Defendants; and WHEREAS, copies of the proposed terms of those proposed nationwide settlements have been set forth in the Master Settlement Agreements with the Settling Defendants; and
WHEREAS, copies of the Master Settlement Agreements have been provided to the City Council with this Resolution; and
WHEREAS, the Settlement Agreements provide, among other things, for the payment of a certain sum to settling government entities in California including to the State of California and Participating Subdivisions upon occurrence of certain events as defined in the Settlement Agreements (“California Opioid Funds”); and WHEREAS, California local governments in the MDL have engaged in extensive discussions with the State Attorney General’s Office (“AGO”) as to how the California Opioid Funds will be allocated, which has resulted in the Proposed California StateSubdivision Agreements Regarding Distribution and Use of Settlement Funds (“Allocation Agreements”) from the settlements with the Settling Defendants; and WHEREAS, copies of the Allocation Agreements for all of the settlements with the Settling Defendants have been provided with this Resolution; and WHEREAS, the Allocation Agreements allocate the California Opioid Funds as follows: 15% to the State Fund; 70% to the Abatement Accounts Fund; and 15% to the Subdivision Fund. For the avoidance of doubt, all funds allocated to California from the Settlements shall be combined pursuant to the Allocation Agreements, and 15% of total from each settlement shall be allocated to the State of California (the “State of California Allocation”), 70% to the California Abatement Accounts Fund (“CA Abatement Accounts Fund”), and 15% to the California Subdivision Fund (“CA Subdivision Fund”); and WHEREAS, under the Master Settlement Agreements, certain local subdivisions that did not file a lawsuit against the Settlement Defendants may qualify to participate in the settlements and obtain funds from the Abatement Account Fund; and WHEREAS, the City is eligible to participate in the Settlement and become a CA Participating Subdivision; and
WHEREAS, the funds in the CA Abatement Accounts Fund (the 70% allocation) will be allocated based on the allocation model developed in connection with the proposed negotiating class in the National Prescription Opiate Litigation (MDL No. 2804), as adjusted to reflect only those cities and counties that are eligible, based on population or litigation status, to become a CA Participating Subdivision (those above 10,000 in population). The percentage from the CA Abatement Accounts Fund allocated to each CA Participating Subdivision is set forth in Appendix 1 to the Allocation Agreements and provided to the City Council with this Resolution. The City’s share of the CA Abatement Accounts Fund will be a product of the total in the CA Abatement Accounts Fund multiplied by the City’s percentage set forth in Appendix 1 of the Allocation Agreements (the “Local Allocation”); and
WHEREAS, a CA Participating Subdivision that is a city will be allocated its Local Allocation share as of the date on which it becomes a Participating Subdivision. The Local Allocation share for a city that is a CA Participating Subdivision will be paid to the county in which the city is located, unless the city elects to take a direct election of the settlement funds, so long as: (a) the county is a CA Participating Subdivision, and (b) the city has not advised the Settlement Fund Administrator that it requests direct payment at least 60 days prior to a Payment Date; and
WHEREAS, it the intent of this Resolution is 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 that the City Council of the City of Cypress hereby approves and authorizes Peter Grant, 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.

BE IT FURTHER RESOLVED that all actions heretofore taken by the City Council of the City of Cypress and other appropriate public officers and agents of the City with respect to the matters contemplated under this Resolution are hereby ratified, confirmed and approved.

PASSED AND ADOPTED by the City Council of the City of Cypress at a regular meeting held on the ___ day of _____, 2023.

MAYOR OF THE CITY OF CYPRESS
ATTEST:

CITY CLERK OFTHE CITY OF CYPRESS
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
I, ALISHA FARNELL, City Clerk of the City of Cypress, DO HEREBY CERTIFY that the foregoing Resolution was duly adopted at a regular meeting of the said City Council held on the __ day of __, 2022, by the following roll call vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

CITY CLERK OF THE CITY OF CYPRESS
3/30/23, 11:15 AM Print Agenda Item
https://destinyhosted.com/print_ag_memo.cfm?seq=1652&rev_num=0&mode=External&reloaded=true&id=29773 1/3

CITY OF CYPRESS

CITY COUNCIL REPORT
City Council Regular Item # 7.

FROM: Fred Galante, City Attorney
DATE: 12/13/2021
SUBJECT: Approve Participation in the National Opioid Settlements

RECOMMENDATION
That the City Council consider and take the following actions:

1. Approve Settlement Participation Form for the City’s participation in the National Opioid Settlement with McKesson Corporation, Cardinal Health, Inc., and AmerisourceBergen Corporation; and

2. Approve Settlement Participation Form for the City’s participation in the National Opioid Settlement with Johnson & Johnson, Janssen Pharmaceuticals, Inc., Ortho-McNeil-Janssen Pharmaceuticals, Inc., and Janssen Pharmaceutica, Inc.; and

3. Approve the California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds - Distributor Settlement; and

4. Approve the California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds - Janssen Settlement; and

5. Adopt a Resolution approving and authorizing the City Manager to execute the documents identified in Recommendation Nos. 1 through 4; and

6. Authorize the City Manager to carry out all necessary acts such that the City can participate in the National Opioid Settlements, including, but not limited to, the transmittal of the executed documents in Recommendation Nos. 1 through 4.

SUMMARY
Various states, counties, and cities have been in litigation with the McKesson Corporation, Cardinal Health, Inc., and AmerisourceBergen Corporation. (collectively, the “Distributors”) and Johnson & Johnson, Janssen Pharmaceuticals, Inc., Ortho-McNeil-Janssen Pharmaceuticals, Inc., and Janssen Pharmaceutica, Inc. (collectively, the “Manufacturer”) (for purposes of this report, the Distributors and Manufacturer are collectively referred to as the “Settling Defendants”). The litigation concerns the distribution and manufacture of opioids that have contributed to the opioid addiction epidemic in the United States. Two tentative settlements have been reached with the Distributors and Manufacturer, respectively (“National Opioids Settlements”). A “critical mass” of participation by 3/30/23, 11:15 AM Print Agenda Item
https://destinyhosted.com/print_ag_memo.cfm?seq=1652&rev_num=0&mode=External&reloaded=true&id=29773 2/3 states, cities and counties must be achieved in order to proceed. This critical mass is determined by the Settling Defendants in their sole discretion. If a critical mass is not achieved, then the National Opioids Settlements do not proceed and the litigation continues. There are two parts to achieving critical mass: first, a critical mass of states must be achieved and, second, a critical mass of cities and counties must be achieved. At this stage, a critical mass of state participation has already occurred.

DISCUSSION
Assuming there is a critical mass to proceed, the payout amounts under the settlements with the Settling Defendants is contingent upon various factors, including the number of states, cities, and counties participating, with a maximum payout of $21 billion over the course of 18 years by the Distributors and $5 billion over no more than nine years by the Manufacturer to all participating entities. A fraction of that amount will be received by California, its counties, and cities. The actual amount for the City is dependent on a number of variables, including, but not limited to, the number of California cities and counties participating, whether or not cities later sue the Settling Defendants, and certain actions that may be taken by the State of California. Further, the City’s share of the potential amount is determined using three factors: (1) Opioid use disorder; (2) Opioid deaths; and (3) Opioid dosage. If the City participates, the funds will automatically be allocated to the County unless the City opts to receive the funds directly; however, there are certain reporting and tracking requirements if the City receives the funds directly (see below).

By participating in the National Opioid Settlements, the City would be agreeing to a very broad release of claims relating in any way to opioids against the Settling Defendants, which includes both known and unknown claims. However, not participating and litigating on its own means that the City is required to comply with very strict deadlines with respect to litigation.

The National Opioids Settlements will allow for a range of approved abatement uses, which includes a range of intervention, treatment, education, and recovery services. However, the use of funds are restricted to the abatement uses, including 50% per calendar year on high impact abatement uses, identified in the settlements (see, e.g., Attachments 3 and 4, and Exhibit E of Attachments 6 and 7).

There are also significant public reporting and tracking requirements on the expenditures for such funds, which may make County receipt and expenditure of such funds more desirable. For example, the settlement with the Manufacturer would require the following reporting and tracking:

1. Preparation of annual written reports regarding the use of the funds. This report must include a certification that all funds received have been used in compliance with the Manufacturer settlement agreements. This report must be in a form that is approved by the California Department of Health Care Services (“DHCS”).

2. The City would be required to track all deposits and expenditures.

3. Funds not used for a permitted purpose must be identified and included in the annual report (including any attorneys’ fees, investigation costs, or litigation costs). This information must also be reported to the Manufacturer and the settlement fund administrator.

In terms of enforcement, if DHCS believes that the use of settlement funds is inconsistent with the requirements, it must meet and confer with subdivision (i.e., the City), and if not resolved, DHCS may perform an audit. If the issue is not resolved, DHCS can bring a motion or action in court to resolve the concern or to enforce the terms of the settlement agreement/state-allocation agreement.

There are also time limits on expenditure where money not expended or encumbered within 5 years of receipt must be transferred to the State. However, these requirements only apply to the City if it elects to receive direct distribution and does not apply if the funds go to the County.

The National Opioids Settlements also provide for injunctive relief that requires changes to the Distributors’ and Manufacturer’s conduct. This includes the creation of a clearinghouse through which the Distributors will be required to account for their own shipments and the shipments of the 3/30/23, 11:15 AM Print Agenda Item
https://destinyhosted.com/print_ag_memo.cfm?seq=1652&rev_num=0&mode=External&reloaded=true&id=29773 3/3 other distributors, in order to detect, stop, and report suspicious opioids orders. In addition, the Manufacturer (which ceased marketing opioids in 2015 and ceased selling opioids in 2020) will not market or sell any opioid products in the next ten years and has agreed to cease lobbying concerning prescription opioids for ten years.

Approval of Recommendation Nos. 1 and 2 would authorize the City to participate in the National Opioid Settlements with the Settling Defendants on the terms and conditions of those settlement agreements. (Attachments 1 and 2)
Approval of Recommendation Nos. 3 and 4 would approve agreements with the State of California on the distribution and use of settlement funds, consistent with the National Settlement Agreements. (Attachments 3 and 4)
Approval of Recommendation No. 5 would approve and authorize the City Manager to execute all documentation necessary to participate in the National Opioid Settlements. (Attachment 5) Approval of Recommendation No. 6 would authorize the City Manager to carry out all necessary acts to allow the City to participate in the National Opioid Settlements, including the transmittal of the above-mentioned executed documents.

City Council approval and authorization to execute, submit, and receipt of all required documents must be completed before January 2, 2022.

BUDGET IMPACT
Use of funds are restricted to the abatement of impacts of the opioid epidemic, including 50% per calendar year on high impact abatement uses, identified in the settlements. The actual amounts the City will receive depends on various factors, such as the number of California jurisdictions that participate in the settlement.

LEGAL REVIEW
The City Attorney prepared the report.

APPROVED
BY:

Peter Grant, City Manager
Attachments
Attachment 1 - Nat'l Opioid Settlement Form
Attachment 2 - Janssen Opioid Settlement Form
Attachment 3 - Final State Agreement Distributors Settlement Attachment 4 - Final State Janssen Agreement Settlement Attachment 5 - Resolution Authorizing CM to Sign Settlement Attachment 6 - Final Distributor Settlement Agreement
Attachment 7 - Janssen Agreement
New National Opioids Settlements: Teva, Allergan, CVS, Walgreens, and Walmart Opioids Implementation Administrator
[email protected]
Cypress city, CA
Reference Number: CL-383225
TO LOCAL POLITICAL SUBDIVISIONS AND SPECIAL DISTRICTS:

THIS PACKAGE CONTAINS DOCUMENTATION TO PARTICIPATE IN THE NEW NATIONAL OPIOID SETTLEMENTS. YOU MUST TAKE ACTION IN ORDER TO PARTICIPATE.

Deadline: April 18, 2023
Five new proposed national opioid settlements (“New National Opioid Settlements”) have been reached with Teva, Allergan, CVS, Walgreens, and Walmart (“Settling Defendants”). This Participation Package is a follow-up communication to the Notice of National Opioid Settlements recently received electronically by your subdivision or special district (“subdivision”).

You are receiving this Participation Package because California is participating in the following settlements:
 Teva
 Allergan
 CVS
 Walgreens
 Walmart
This electronic envelope includes eleven attachments:
 Participation Forms for Teva, Allergan, CVS, Walgreens, and Walmart, including a release of any claims.
 California State-Subdivision Agreements for Teva, Allergan, CVS, Walgreens, and Walmart.
 Side-letter agreement between California and CVS.

The Participation Form and California Intrastate Allocation Agreement for each settlement must be executed, without alteration, and submitted on or before April 18, 2023, in order for your subdivision to be considered for initial participation calculations and payment eligibility.

The side-letter agreement between California and CVS modifies the CVS National Settlement’s incentive structure for subdivision participation as it applies to California.

Based upon subdivision participation forms received on or before April 18th, the subdivision participation rate will be used to determine whether participation for each deal is sufficient for the settlement to move forward and whether a state earns DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 its maximum potential payment under the settlement. If the settlement moves forward, your release will become effective. If a settlement does not move forward, that release will not become effective.

Any subdivision that does not participate cannot directly share in the settlement funds, even if the subdivision’s state is settling and other participating subdivisions are sharing in settlement funds. Any subdivision that does not participate may also reduce the amount of money for programs to remediate the opioid crisis in its state.

Please note, a subdivision will not necessarily directly receive settlement funds by participating; decisions on how settlement funds will be allocated within a state are subject to intrastate agreements or state statutes.

You are encouraged to discuss the terms and benefits of the New National Opioid Settlements with your city attorney/county counsel, outside counsel representing your city/county on opioid matters, the Attorney General’s Office, and other contacts within your state. Many states are implementing and allocating funds for these new settlements the same as they did for the prior opioid settlements with McKesson, Cardinal, Amerisource, and J&J/Janssen, but states may choose to treat these settlements differently.

Information and documents regarding the New National Opioid Settlements and how they are being implemented in your state and how funds will be allocated within your state allocation can be found on the national settlement website at https://nationalopioidsettlement.com/ and the California Attorney General’s website at https://oag.ca.gov/opioids. These websites will be supplemented as additional documents are created. Please also refer to the Side-Letter Agreement with CVS, which modifies the CVS National Opioid Settlement.

How to return signed forms:

There are three methods for returning the executed Participation Forms and California-State Subdivision Agreements (“Subdivision Agreements”) to the Implementation Administrator:
(1) Electronic Signature via DocuSign: Executing the Participation Forms and the Subdivision Agreements electronically through DocuSign will return the signed forms to the Implementation Administrator and associate your forms with your subdivision’s records. Electronic signature is the most efficient method for returning Participation Forms and Subdivision Agreements, allowing for more timely participation and the potential to meet higher settlement payment thresholds, and is therefore strongly encouraged. (2) Manual Signature returned via DocuSign: DocuSign allows forms to be downloaded, signed manually, then uploaded to DocuSign and returned automatically to the Implementation Administrator. Please be sure to complete all fields and note that execution and return of both the Subdivision Agreement and the Participation Form are required for participation in the corresponding settlement. As with electronic signature, returning manually signed Participation Forms and Subdivision Agreements via DocuSign will associate your signed forms with your subdivision’s records.

DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 (3) Manual Signature returned via electronic mail: If your subdivision is unable to return executed Participation Forms and Subdivision Agreements using DocuSign, signed Participation Forms and Subdivision Agreements may be returned via electronic mail to [email protected]. Please include the name, state, and reference ID of your subdivision in the body of the email and use the subject line Settlement Participation Forms – [Subdivision Name, Subdivision State] – [Reference ID]. Note that execution and return of both the Subdivision Agreement and the Participation Form are required for participation in the corresponding settlement.

Detailed instructions on how to sign and return the Participation Forms and the Subdivision Agreements, including changing the authorized signer, can be found at https://nationalopioidsettlement.com. You may also contact [email protected].

The sign-on period for subdivisions ends on April 18, 2023.

If you have any questions about executing these forms, please contact your city attorney/county counsel, outside counsel representing your city/county on opioids matters, the Implementation Administrator at [email protected], or the California Attorney General’s Office at opioidsettlement[email protected].

Thank you,
National Opioids Settlements Implementation Administrator The Implementation Administrator is retained to provide the settlement notice required by the respective settlement agreements referenced above and to manage the collection of settlement participation forms for each settlement.

DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921

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

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

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

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

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

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

6. The Governmental Entity agrees to use any monies it receives through the Allergan Settlement solely for the purposes provided therein.
1 DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921

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 DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 I have all necessary power and authorization to execute this Settlement Participation Form on behalf of the Governmental Entity.

Signature: /signer_1_teva_allergan/
Name: /name_1_teva_allergan/
Title: /title_1_teva_allergan/
Date: /date_1_teva_allergan/
3 DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 Exhibit K
Subdivision and Special District Settlement Participation Form Governmental Entity: Cypress city State: CA
Authorized Signatory: /officialname_teva_allergan/
Address 1: /address1_teva_allergan/
Address 2: /address2_teva_allergan/
City, State, Zip: /cit_ta/ /state_ta/ /zi_ta/
Phone: /phone_teva_allergan/
Email: /email_teva_allergan/
The governmental entity identified above (“Governmental Entity”), in order to obtain and in consideration for the benefits provided to the Governmental Entity pursuant to the Agreement dated November 22, 2022 (“Teva Settlement”), and acting through the undersigned authorized official, hereby elects to participate in the Teva Settlement, release all Released Claims against all Released Entities, and agrees as follows.

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

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

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

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

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

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

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

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

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

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

12. Nothing herein is intended to modify in any way the terms of the Teva Settlement, to which Governmental Entity hereby agrees. To the extent this Election and Release is interpreted differently from the Teva Settlement in any respect, the Teva Settlement controls. 2 DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 I have all necessary power and authorization to execute this Election and Release on behalf of the Governmental Entity.

Signature: /signer_1_teva_allergan/
Name: /name_1_teva_allergan/
Title: /title_1_teva_allergan/
Date: /date_1_teva_allergan/
3 DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921

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

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

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

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

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

5. The Governmental Entity agrees to use any monies it receives through the CVS Settlement solely for the purposes provided therein.
1 DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921

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

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

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

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

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

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

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

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

Signature: /signer_1_cvs/
Name: /name_1_cvs/
Title: /title_1_cvs/
Date: /date_1_cvs/
3 DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921

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

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

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

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

5. The Governmental Entity agrees to use any monies it receives through the Walgreens Settlement solely for the purposes provided therein.
1 DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921

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

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

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

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

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

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

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

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

Signature: /signer_1_walgreens/
Name: /name_1_walgreens/
Title: /title_1_walgreens/
Date: /date_1_walgreens/
3 DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921

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

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

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

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

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

5. The Governmental Entity agrees to use any monies it receives through the Walmart Settlement solely for the purposes provided therein.
1 DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921

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

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

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

10. Nothing herein is intended to modify in any way the terms of the Walmart Settlement, to which Governmental Entity hereby agrees. To the extent this Election and Release is interpreted differently from the Walmart Settlement in any respect, the Walmart Settlement controls.
2 DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 I have all necessary power and authorization to execute this Election and Release on behalf of the Governmental Entity.

Signature: /signer_1_walmart/
Name: /name_1_walmart/
Title: /title_1_walmart/
Date: /date_1_walmart/
3 DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 1 Proposed California State-Subdivision Agreement
Regarding Distribution and Use of
Settlement Funds – Allergan Settlement

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

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

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

DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 2 f) Walgreens Settlement Agreement means the Walgreens Settlement Agreement dated December 9, 2022, and any revision thereto.
g) Walmart Settlement Agreement means the Walmart Settlement Agreement dated November 14, 2022, and any revision thereto.
h) CA Litigating Special District means a Litigating Special District located in California. CA Litigating Special Districts include Downey Unified School District, Elk Grove Unified School District, Kern High School District, Montezuma Fire Protection District (located in Stockton, California), Santa Barbara San Luis Obispo Regional Health Authority, Inland Empire Health Plan, Health Plan of San Joaquin, San Leandro Unified School District, Pleasant Valley School District Board, and LA Care Health Plan.
i) Plaintiff Subdivision means a Subdivision located in California, other than a CA Litigating Special District, that filed a lawsuit, on behalf of the Subdivision and/or through an official of the Subdivision on behalf of the People of the State of California, against one or more Opioid Defendants prior to October 1, 2020. j) Opioid Defendant means any defendant (including but not limited to Teva Pharmaceutical Industries Ltd., Allergan Finance, LLC, Allergan Limited, CVS Health Corporation, CVS Pharmacy, Inc., Walgreen Co., Walmart Inc., Johnson & Johnson, Janssen Pharmaceuticals, Inc., Purdue Pharma L.P., Cardinal Health, Inc., AmerisourceBergen Corporation, and McKesson Corporation) named in a lawsuit seeking damages, abatement, or other remedies related to or caused by the opioid public health crisis in any lawsuit brought by any state or local government on or before October 1, 2020.

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

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

4. State Allocation
DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 3 The Settlement Fund payments to California,3 pursuant to the Allergan Settlement Agreement, shall be allocated as follows: 15% to the State Fund; 70% to the Abatement Accounts Fund; and 15% to the Subdivision Fund. For the avoidance of doubt, all funds allocated to California from the Settlement Fund shall be combined pursuant to this CA Allergan Allocation Agreement, and 15% of that total shall be allocated to the State of California (the “State of California Allocation”), 70% to the California Abatement Accounts Fund (“CA Abatement Accounts Fund”), and 15% to the California Subdivision Fund (“CA Subdivision Fund”).

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

DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 4 CA Abatement Accounts Funds) and reported on in accordance with Section 4.B.iii (CA Abatement Accounts Fund Oversight).
d) A city within a county that is a CA Participating Subdivision may opt in or out of direct payment at any time, and it may also elect direct payment of only a portion of its share, with the remainder going to the county, by providing notice to the Settlement Fund Administrator at least 60 days prior to a Payment Date. For purposes of this CA Allergan Allocation Agreement, the Cities of Los Angeles, Oakland, San Diego, San Jose and Eureka will be deemed to have elected direct payment if they become Participating Subdivisions.
e) The State will receive the Local Allocation share of any payment to the Settlement Fund that is attributable to a county or city that is eligible to become a CA Participating Subdivision, but that has not, as of the date of that payment to the Settlement Fund, become a Participating Subdivision.
f) Funds received by a CA Participating Subdivision, and not expended or encumbered within five years of receipt and in accordance with the Allergan Settlement Agreement and this CA Allergan Allocation Agreement shall be transferred to the State; provided however, that CA Participating Subdivisions have seven years to expend or encumber CA Abatement Accounts Funds designated to support capital outlay projects before they must be transferred to the State. This provision shall not apply to the Cost Reimbursement Funds, which shall be controlled by Appendix 2.
ii. Use of CA Abatement Accounts Funds
a) The CA Abatement Accounts Funds will be used for future Opioid Remediation in one or more of the areas described in the List of Opioid Remediation Uses, which is Exhibit E to the Allergan Settlement Agreement.
b) In addition to this requirement, no less than 50% of the funds received by a CA Participating Subdivision from the Abatement Accounts Fund in each calendar year will be used for one or more of the following High Impact Abatement Activities:
(1) the provision of matching funds or operating costs for substance use disorder facilities within the Behavioral Health Continuum Infrastructure Program; (2) creating new or expanded Substance Use Disorder (“SUD”) treatment infrastructure; (3) addressing the needs of communities of color and vulnerable populations (including sheltered and unsheltered homeless populations) that are disproportionately impacted by SUD;
(4) diversion of people with SUD from the justice system into treatment, including by providing training and resources to first and early responders (sworn and non-sworn) and implementing best practices for outreach, diversion and deflection, employability, restorative justice, and harm reduction; and/or
(5) interventions to prevent drug addiction in vulnerable youth.

DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 5 c) The California Department of Health Care Services (“DHCS”) may add to this list (but not delete from it) by designating additional High Impact Abatement Activities. DHCS will make reasonable efforts to consult with stakeholders, including the CA Participating Subdivisions, before adding additional High Impact Abatement Activities to this list. d) For the avoidance of doubt, and subject to the requirements of the Allergan Settlement Agreement and applicable law, CA Participating Subdivisions may form agreements or ventures, or otherwise work in collaboration with, federal, state, local, tribal or private sector entities in pursuing Opioid Remediation activities funded from the CA Abatement Accounts Fund. Further, provided that all CA Abatement Accounts Funds are used for Opioid Remediation consistent with the Allergan Settlement Agreement and this CA Allergan Allocation Agreement, a county and any cities or towns within the county may agree to reallocate their respective shares of the CA Abatement Accounts Funds among themselves, provided that any direct distribution may only be to a CA Participating Subdivision and any CA Participating Subdivision must agree to their share being reallocated.
iii. CA Abatement Accounts Fund Oversight
a) Pursuant to Section 5 below, CA Participating Subdivisions receiving settlement funds must prepare and file reports annually regarding the use of those funds. DHCS may regularly review the reports prepared by CA Participating Subdivisions about the use of CA Abatement Accounts Funds for compliance with the Allergan Settlement Agreement and this CA Allergan Allocation Agreement.
b) If DHCS determines that a CA Participating Subdivision’s use of CA Abatement Accounts Funds is inconsistent with the Allergan Settlement Agreement or this CA Allergan Allocation Agreement, whether through review of reports or information from any other sources, DHCS shall send a request to meet and confer with the CA Participating Subdivision. The parties shall meet and confer in an effort to resolve the concern.
c) If the parties are unable to reach a resolution, DHCS may conduct an audit of the Subdivision’s use of the CA Abatement Accounts Funds within one year of the request to meet and confer, unless the parties mutually agree in writing to extend the meet and confer time frame.
d) If the concern still cannot be resolved, the State may bring a motion or action in the court where the State has filed its Consent Judgment to resolve the concern or otherwise DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 6 enforce the requirements of the Allergan Settlement Agreement or this CA Allergan Allocation Agreement. However, in no case shall any audit be conducted, or motion be brought, as to a specific expenditure of funds, more than five years after the date on which the expenditure of the funds was reported to DHCS, in accordance with this agreement.
e) Notwithstanding the foregoing, this Agreement does not limit the statutory or constitutional authority of any state or local agency or official to conduct audits, investigations, or other oversight activities, or to pursue administrative, civil, or criminal enforcement actions.

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

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

D. Provision for State Back-Stop Agreement
On August 6, 2021, Judge Dan Polster of the U.S. District Court, Northern District of Ohio, Eastern Division, issued an order (ECF Docket Number 3814) (“MDL Fees Order”) in the National Prescription Opiate Litigation (MDL No. 2804) “cap[ping] all applicable contingent fee agreements at 15%.” Private counsel representing Plaintiff Subdivisions should seek its DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 7 contingency fees and costs from the Attorney Fee Fund or Cost Funds under the Teva Settlement Agreement and Allergan Settlement Agreement, and, if applicable, the CVS Settlement Agreement, Distributor Settlement Agreement, Janssen Settlement Agreement, Walgreens Settlement Agreement, and Walmart Settlement Agreement.

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

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

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

DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 8 c) The State and all CA Participating Subdivisions receiving CA Abatement Accounts Funds will track all deposits and expenditures. Each such subdivision is responsible solely for the CA Abatement Accounts Funds it receives. A county is not responsible for oversight, reporting, or monitoring of CA Abatement Accounts Funds received by a city within that county that receives direct payment. Unless otherwise exempt, Subdivisions’ expenditures and uses of CA Abatement Accounts Funds and other Settlement Funds will be subject to the normal budgetary and expenditure process of the Subdivision. d) Each Plaintiff Subdivision receiving CA Subdivision Funds will track all deposits and expenditures, as required by the Allergan Settlement Agreement and this CA Allergan Allocation Agreement. Among other things, Plaintiff Subdivisions using monies from the CA Subdivision Fund for purposes that do not qualify as Opioid Remediation must identify and include in their annual report, the amount and how such funds were used, including if used to pay attorneys’ fees, investigation costs, or litigation costs. Pursuant to Section VIII(C) of the Allergan Settlement Agreement, such information must also be reported to the Settlement Fund Administrator and Allergan. e) In each year in which DHCS prepares an annual report DHCS will also host a meeting to discuss the annual report and the Opioid Remediation activities being carried out by the State and Participating Subdivisions.

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

DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 9 The undersigned, Cypress city, ACKNOWLEDGES acceptance of this Proposed California StateSubdivision Agreement Regarding Distribution and Use of Settlement Funds – Allergan Settlement is a requirement to be an Initial Participating Subdivision in the Allergan Settlement and ACCEPTS this Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds – Allergan Settlement. EXECUTED on /date_1_teva_allergan/.

Signature: /signer_1_teva_allergan/
Name: /name_1_teva_allergan/
Title: /title_1_teva_allergan/
Date: /date_1_teva_allergan/
DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 DISCLAIMER: The allocation percentages herein are estimates only and should not be relied on for decisions regarding legal rights, releases, waivers, or other decisions affecting current or potential legal claims. Percentages shown in the Plaintiff Subdivision Percentage column may change pursuant to Section 4.C. of the California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds—Allergan Settlement, whereas the percentages shown in the Abatement Percentage column should not change. Participating Subdivisions, underlying calculations, and the calculated allocation percentages are subject to change.

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

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

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

DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 APPENDIX 1
1 of 15
100.000% 100.000% 100.000%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
County Alameda County Alameda 2.332% 2.853% 2.4237952%
City Alameda Alameda 0.069% 0.0570162%
City Albany Alameda 0.013% 0.0107768%
City Berkeley Alameda 0.152% 0.1249656%
City Dublin Alameda 0.033% 0.040% 0.0338810%
City Emeryville Alameda 0.023% 0.0185765%
City Fremont Alameda 0.108% 0.0888576%
City Hayward Alameda 0.117% 0.0966218%
City Livermore Alameda 0.054% 0.0446740%
City Newark Alameda 0.026% 0.0217626%
City Oakland Alameda 0.486% 0.595% 0.5055601%
City Piedmont Alameda 0.014% 0.0114064%
City Pleasanton Alameda 0.067% 0.0554547%
City San Leandro Alameda 0.039% 0.0321267%
City Union City Alameda 0.043% 0.0352484%
County Amador County Amador 0.226% 0.277% 0.2349885%
County Butte County Butte 1.615% 1.975% 1.6783178%
City Chico Butte 0.216% 0.264% 0.2246499%
City Oroville Butte 0.079% 0.0646595%
County Calaveras County Calaveras 0.226% 0.277% 0.2351644% County Colusa County Colusa 0.059% 0.0489221%
County Contra Costa County Contra Costa 2.102% 2.571% 2.1844585% City Antioch Contra Costa 0.037% 0.0301879%
City Brentwood Contra Costa 0.026% 0.0215339%
City Clayton Contra Costa 0.002% 0.0018060%
City Concord Contra Costa 0.055% 0.0456676%
City Danville Contra Costa 0.010% 0.0082255%
City El Cerrito Contra Costa 0.023% 0.0189024%
City Hercules Contra Costa 0.010% 0.0078273%
DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 APPENDIX 1
2 of 15
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Lafayette Contra Costa 0.006% 0.0046030%
City Martinez Contra Costa 0.012% 0.0098593%
City Moraga Contra Costa 0.004% 0.0031007%
City Oakley Contra Costa 0.010% 0.0079416%
City Orinda Contra Costa 0.005% 0.0038157%
City Pinole Contra Costa 0.013% 0.0110909%
City Pittsburg Contra Costa 0.053% 0.0436369%
City Pleasant Hill Contra Costa 0.013% 0.0106309%
City Richmond Contra Costa 0.146% 0.1201444%
City San Pablo Contra Costa 0.018% 0.0148843%
City San Ramon Contra Costa 0.021% 0.0176459%
City Walnut Creek Contra Costa 0.026% 0.0212132%
County Del Norte County Del Norte 0.114% 0.140% 0.1189608% County El Dorado County El Dorado 0.768% 0.939% 0.7980034% City Placerville El Dorado 0.015% 0.0127642%
City South Lake Tahoe El Dorado 0.081% 0.0665456%
County Fresno County Fresno 1.895% 2.318% 1.9693410%
City Clovis Fresno 0.065% 0.0536211%
City Coalinga Fresno 0.012% 0.0098554%
City Fresno Fresno 0.397% 0.3270605%
City Kerman Fresno 0.005% 0.0042534%
City Kingsburg Fresno 0.008% 0.0066167%
City Mendota Fresno 0.002% 0.0019387%
City Orange Cove Fresno 0.004% 0.0035607%
City Parlier Fresno 0.008% 0.0069755%
City Reedley Fresno 0.012% 0.0098804%
City Sanger Fresno 0.018% 0.0146135%
City Selma Fresno 0.015% 0.0127537%
County Glenn County Glenn 0.107% 0.131% 0.1116978%
County Humboldt County Humboldt 1.030% 1.260% 1.0703185% DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 APPENDIX 1
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Arcata Humboldt 0.054% 0.0447660%
City Eureka Humboldt 0.117% 0.143% 0.1216284%
City Fortuna Humboldt 0.032% 0.0266837%
County Imperial County Imperial 0.258% 0.315% 0.2679006% City Brawley Imperial 0.011% 0.0087986%
City Calexico Imperial 0.019% 0.0152799%
City El Centro Imperial 0.158% 0.1302522%
City Imperial Imperial 0.006% 0.0048791%
County Inyo County Inyo 0.073% 0.089% 0.0754413%
County Kern County Kern 2.517% 3.079% 2.6159145%
City Arvin Kern 0.006% 0.0046425%
City Bakersfield Kern 0.212% 0.1747198%
City California City Kern 0.009% 0.0070820%
City Delano Kern 0.030% 0.0249316%
City McFarland Kern 0.003% 0.0025644%
City Ridgecrest Kern 0.015% 0.0120938%
City Shafter Kern 0.013% 0.0103417%
City Tehachapi Kern 0.009% 0.0073580%
City Wasco Kern 0.008% 0.0069861%
County Kings County Kings 0.293% 0.2413469%
City Avenal Kings 0.007% 0.0056335%
City Corcoran Kings 0.013% 0.0107032%
City Hanford Kings 0.027% 0.0226038%
City Lemoore Kings 0.016% 0.0131900%
County Lake County Lake 0.795% 0.6545389%
City Clearlake Lake 0.041% 0.050% 0.0426253%
City Lakeport Lake 0.021% 0.026% 0.0222964%
County Lassen County Lassen 0.319% 0.391% 0.3320610%
City Susanville Lassen 0.027% 0.0219295%
County Los Angeles County Los Angeles 13.896% 16.999% 14.4437559% DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 APPENDIX 1
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Agoura Hills Los Angeles 0.005% 0.0040024%
City Alhambra Los Angeles 0.042% 0.0343309%
City Arcadia Los Angeles 0.033% 0.0267718%
City Artesia Los Angeles 0.001% 0.0005100%
City Azusa Los Angeles 0.026% 0.0210857%
City Baldwin Park Los Angeles 0.027% 0.0218520%
City Bell Los Angeles 0.008% 0.0068783%
City Bellflower Los Angeles 0.002% 0.0014485%
City Bell Gardens Los Angeles 0.014% 0.0114301%
City Beverly Hills Los Angeles 0.065% 0.0534897%
City Burbank Los Angeles 0.100% 0.0823132%
City Calabasas Los Angeles 0.006% 0.0048948%
City Carson Los Angeles 0.019% 0.0159805%
City Cerritos Los Angeles 0.005% 0.0039682%
City Claremont Los Angeles 0.010% 0.0082584%
City Commerce Los Angeles 0.000% 0.0002971%
City Compton Los Angeles 0.044% 0.0361882%
City Covina Los Angeles 0.028% 0.0229127%
City Cudahy Los Angeles 0.001% 0.0006020%
City Culver City Los Angeles 0.055% 0.0449894%
City Diamond Bar Los Angeles 0.001% 0.0006993%
City Downey Los Angeles 0.052% 0.0429994%
City Duarte Los Angeles 0.003% 0.0027261%
City El Monte Los Angeles 0.031% 0.038% 0.0318985%
City El Segundo Los Angeles 0.033% 0.0268020%
City Gardena Los Angeles 0.034% 0.0278088%
City Glendale Los Angeles 0.166% 0.1366586%
City Glendora Los Angeles 0.016% 0.0134411%
City Hawaiian Gardens Los Angeles 0.005% 0.0040549%
City Hawthorne Los Angeles 0.050% 0.0407833%
DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 APPENDIX 1
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Hermosa Beach Los Angeles 0.018% 0.0145307%
City Huntington Park Los Angeles 0.023% 0.0190667%
City Inglewood Los Angeles 0.059% 0.0489195%
City La Cañada Flintridge Los Angeles 0.003% 0.0025565% City Lakewood Los Angeles 0.005% 0.0039971%
City La Mirada Los Angeles 0.010% 0.0081572%
City Lancaster Los Angeles 0.045% 0.0369689%
City La Puente Los Angeles 0.002% 0.0012999%
City La Verne Los Angeles 0.024% 0.0194190%
City Lawndale Los Angeles 0.002% 0.0017731%
City Lomita Los Angeles 0.004% 0.0031940%
City Long Beach Los Angeles 0.439% 0.3614151%
City Los Angeles Los Angeles 2.715% 3.321% 2.8218811%
City Lynwood Los Angeles 0.016% 0.0134345%
City Malibu Los Angeles 0.002% 0.0019269%
City Manhattan Beach Los Angeles 0.032% 0.0260686%
City Maywood Los Angeles 0.004% 0.0035528%
City Monrovia Los Angeles 0.031% 0.0254455%
City Montebello Los Angeles 0.030% 0.0250670%
City Monterey Park Los Angeles 0.031% 0.0256677%
City Norwalk Los Angeles 0.031% 0.0258228%
City Palmdale Los Angeles 0.046% 0.0375827%
City Palos Verdes Estates Los Angeles 0.006% 0.0053102% City Paramount Los Angeles 0.011% 0.0091483%
City Pasadena Los Angeles 0.146% 0.1200524%
City Pico Rivera Los Angeles 0.022% 0.0183333%
City Pomona Los Angeles 0.111% 0.0911933%
City Rancho Palos Verdes Los Angeles 0.002% 0.0012645%
City Redondo Beach Los Angeles 0.062% 0.0506992%
City Rosemead Los Angeles 0.003% 0.0028260%
DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 APPENDIX 1
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City San Dimas Los Angeles 0.003% 0.0022016%
City San Fernando Los Angeles 0.013% 0.0104837%
City San Gabriel Los Angeles 0.018% 0.0147726%
City San Marino Los Angeles 0.009% 0.0073791%
City Santa Clarita Los Angeles 0.022% 0.0178167%
City Santa Fe Springs Los Angeles 0.031% 0.0257531%
City Santa Monica Los Angeles 0.158% 0.1298513%
City Sierra Madre Los Angeles 0.006% 0.0048646%
City Signal Hill Los Angeles 0.010% 0.0084884%
City South El Monte Los Angeles 0.005% 0.0039603%
City South Gate Los Angeles 0.020% 0.0166272%
City South Pasadena Los Angeles 0.012% 0.0095334%
City Temple City Los Angeles 0.005% 0.0039498%
City Torrance Los Angeles 0.112% 0.0919820%
City Walnut Los Angeles 0.006% 0.0047305%
City West Covina Los Angeles 0.049% 0.0404521%
City West Hollywood Los Angeles 0.013% 0.0108517%
City Whittier Los Angeles 0.032% 0.0260581%
County Madera County Madera 0.349% 0.427% 0.3630669%
City Chowchilla Madera 0.012% 0.0097332%
City Madera Madera 0.039% 0.0318441%
County Marin County Marin 0.564% 0.690% 0.5861325%
City Larkspur Marin 0.015% 0.0124697%
City Mill Valley Marin 0.020% 0.0168401%
City Novato Marin 0.028% 0.0229824%
City San Anselmo Marin 0.009% 0.0078062%
City San Rafael Marin 0.089% 0.0729823%
County Mariposa County Mariposa 0.084% 0.103% 0.0876131% County Mendocino County Mendocino 0.439% 0.536% 0.4558394% City Ukiah Mendocino 0.039% 0.0317153%
DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 APPENDIX 1
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
County Merced County Merced 0.551% 0.674% 0.5724262%
City Atwater Merced 0.024% 0.0195846%
City Livingston Merced 0.006% 0.0045873%
City Los Banos Merced 0.020% 0.0165142%
City Merced Merced 0.061% 0.0500762%
County Modoc County Modoc 0.065% 0.080% 0.0678250%
County Mono County Mono 0.023% 0.029% 0.0242606%
County Monterey County Monterey 0.908% 1.111% 0.9437083% City Greenfield Monterey 0.006% 0.0050552%
City King City Monterey 0.005% 0.0037355%
City Marina Monterey 0.017% 0.0144098%
City Monterey Monterey 0.041% 0.0336540%
City Pacific Grove Monterey 0.009% 0.0074842%
City Salinas Monterey 0.094% 0.0776576%
City Seaside Monterey 0.023% 0.0191772%
City Soledad Monterey 0.007% 0.0060870%
County Napa County Napa 0.288% 0.352% 0.2994325%
City American Canyon Napa 0.017% 0.0136869%
City Napa Napa 0.078% 0.0642783%
County Nevada County Nevada 0.441% 0.539% 0.4579827%
City Grass Valley Nevada 0.024% 0.0197805%
City Truckee Nevada 0.003% 0.0023843%
County Orange County Orange 4.364% 5.339% 4.5363576%
City Aliso Viejo Orange 0.014% 0.0113841%
City Anaheim Orange 0.554% 0.678% 0.5759282%
City Brea Orange 0.086% 0.0708897%
City Buena Park Orange 0.087% 0.0714352%
City Costa Mesa Orange 0.124% 0.152% 0.1288366%
City Cypress Orange 0.033% 0.0271937%
City Dana Point Orange 0.001% 0.0005560%
DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 APPENDIX 1
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Fountain Valley Orange 0.055% 0.0455980%
City Fullerton Orange 0.137% 0.168% 0.1425744%
City Garden Grove Orange 0.213% 0.1752482%
City Huntington Beach Orange 0.247% 0.302% 0.2568420%
City Irvine Orange 0.139% 0.170% 0.1442350%
City Laguna Beach Orange 0.047% 0.058% 0.0493043%
City Laguna Hills Orange 0.014% 0.0115457%
City Laguna Niguel Orange 0.001% 0.0007071%
City Laguna Woods Orange 0.001% 0.0006546%
City La Habra Orange 0.060% 0.073% 0.0621049%
City Lake Forest Orange 0.012% 0.0101249%
City La Palma Orange 0.012% 0.0095439%
City Los Alamitos Orange 0.008% 0.0069190%
City Mission Viejo Orange 0.014% 0.0117560%
City Newport Beach Orange 0.179% 0.1470134%
City Orange Orange 0.150% 0.1231320%
City Placentia Orange 0.029% 0.035% 0.0298912%
City Rancho Santa Margarita Orange 0.001% 0.0006296%
City San Clemente Orange 0.008% 0.010% 0.0086083%
City San Juan Capistrano Orange 0.008% 0.0065510%
City Santa Ana Orange 0.502% 0.614% 0.5213866%
City Seal Beach Orange 0.020% 0.0165891%
City Stanton Orange 0.035% 0.0291955%
City Tustin Orange 0.073% 0.0600341%
City Westminster Orange 0.104% 0.127% 0.1082721%
City Yorba Linda Orange 0.044% 0.0362223%
County Placer County Placer 1.045% 1.278% 1.0861002%
City Auburn Placer 0.017% 0.0141114%
City Lincoln Placer 0.031% 0.0255599%
City Rocklin Placer 0.076% 0.0625485%
DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 APPENDIX 1
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Roseville Placer 0.196% 0.1616559%
County Plumas County Plumas 0.205% 0.251% 0.2128729%
County Riverside County Riverside 4.534% 5.547% 4.7128296% City Banning Riverside 0.017% 0.0143848%
City Beaumont Riverside 0.021% 0.0171135%
City Blythe Riverside 0.012% 0.0096714%
City Canyon Lake Riverside 0.000% 0.0001761%
City Cathedral City Riverside 0.067% 0.0553614%
City Coachella Riverside 0.021% 0.0173054%
City Corona Riverside 0.147% 0.1207083%
City Desert Hot Springs Riverside 0.024% 0.0200433%
City Eastvale Riverside 0.000% 0.0002747%
City Hemet Riverside 0.051% 0.0421792%
City Indio Riverside 0.056% 0.0457794%
City Jurupa Valley Riverside 0.001% 0.0008991%
City Lake Elsinore Riverside 0.021% 0.0172949%
City La Quinta Riverside 0.063% 0.0516732%
City Menifee Riverside 0.032% 0.0260909%
City Moreno Valley Riverside 0.137% 0.1130348%
City Murrieta Riverside 0.048% 0.059% 0.0497423%
City Norco Riverside 0.016% 0.0134542%
City Palm Desert Riverside 0.083% 0.0682465%
City Palm Springs Riverside 0.076% 0.0629862%
City Perris Riverside 0.009% 0.0076774%
City Rancho Mirage Riverside 0.052% 0.0431098%
City Riverside Riverside 0.268% 0.2206279%
City San Jacinto Riverside 0.010% 0.0085936%
City Temecula Riverside 0.022% 0.0180086%
City Wildomar Riverside 0.008% 0.0062500%
County Sacramento County Sacramento 3.797% 4.645% 3.9465887% DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 APPENDIX 1
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Citrus Heights Sacramento 0.057% 0.0465312%
City Elk Grove Sacramento 0.130% 0.1066994%
City Folsom Sacramento 0.108% 0.0890850%
City Galt Sacramento 0.017% 0.0143704%
City Rancho Cordova Sacramento 0.008% 0.0067679%
City Sacramento Sacramento 0.721% 0.882% 0.7496530%
County San Benito County San Benito 0.106% 0.130% 0.1101417% City Hollister San Benito 0.027% 0.0225355%
County San Bernardino County San Bernardino 3.259% 3.987% 3.3878124% City Adelanto San Bernardino 0.008% 0.0066640%
City Apple Valley San Bernardino 0.025% 0.0207360%
City Barstow San Bernardino 0.015% 0.0122056%
City Chino San Bernardino 0.064% 0.0525893%
City Chino Hills San Bernardino 0.001% 0.0006388%
City Colton San Bernardino 0.031% 0.0253443%
City Fontana San Bernardino 0.112% 0.0920543%
City Grand Terrace San Bernardino 0.006% 0.0051051%
City Hesperia San Bernardino 0.035% 0.0291522%
City Highland San Bernardino 0.004% 0.0029061%
City Loma Linda San Bernardino 0.009% 0.0071188%
City Montclair San Bernardino 0.039% 0.0322108%
City Ontario San Bernardino 0.179% 0.1472934%
City Rancho Cucamonga San Bernardino 0.084% 0.0689431%
City Redlands San Bernardino 0.057% 0.0469150%
City Rialto San Bernardino 0.073% 0.0603206%
City San Bernardino San Bernardino 0.178% 0.1461880%
City Twentynine Palms San Bernardino 0.002% 0.0012605%
City Upland San Bernardino 0.052% 0.0424460%
City Victorville San Bernardino 0.033% 0.0269400%
City Yucaipa San Bernardino 0.016% 0.0128772%
DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 APPENDIX 1
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Yucca Valley San Bernardino 0.003% 0.0021228%
County San Diego County San Diego 5.706% 6.980% 5.9309748% City Carlsbad San Diego 0.128% 0.1050485%
City Chula Vista San Diego 0.189% 0.231% 0.1961456%
City Coronado San Diego 0.044% 0.0359095%
City El Cajon San Diego 0.113% 0.0933582%
City Encinitas San Diego 0.061% 0.074% 0.0630289%
City Escondido San Diego 0.145% 0.1192204%
City Imperial Beach San Diego 0.014% 0.0118283%
City La Mesa San Diego 0.055% 0.068% 0.0575593%
City Lemon Grove San Diego 0.022% 0.0183911%
City National City San Diego 0.080% 0.0656808%
City Oceanside San Diego 0.213% 0.1753428%
City Poway San Diego 0.062% 0.0511040%
City San Diego San Diego 1.975% 2.416% 2.0531169%
City San Marcos San Diego 0.089% 0.0733897%
City Santee San Diego 0.033% 0.0268401%
City Solana Beach San Diego 0.017% 0.0138564%
City Vista San Diego 0.052% 0.0425144%
Consolidated San Francisco San Francisco 3.026% 3.702% 3.1457169% County San Joaquin County San Joaquin 1.680% 2.055% 1.7460399% City Lathrop San Joaquin 0.009% 0.0075394%
City Lodi San Joaquin 0.053% 0.0439484%
City Manteca San Joaquin 0.054% 0.0443454%
City Ripon San Joaquin 0.013% 0.0104219%
City Stockton San Joaquin 0.313% 0.383% 0.3256176%
City Tracy San Joaquin 0.084% 0.0692047%
County San Luis Obispo County San Luis Obispo 0.816% 0.999% 0.8484126% City Arroyo Grande San Luis Obispo 0.024% 0.0199053%
City Atascadero San Luis Obispo 0.029% 0.0240680%
DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 APPENDIX 1
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City El Paso de Robles (Paso Robles) San Luis Obispo 0.043% 0.0353456% City Grover Beach San Luis Obispo 0.017% 0.0137881%
City Morro Bay San Luis Obispo 0.020% 0.0160922%
City San Luis Obispo San Luis Obispo 0.077% 0.0637841%
County San Mateo County San Mateo 1.074% 1.313% 1.1159599% City Belmont San Mateo 0.021% 0.0169860%
City Burlingame San Mateo 0.019% 0.0152537%
City Daly City San Mateo 0.044% 0.0363880%
City East Palo Alto San Mateo 0.013% 0.0103982%
City Foster City San Mateo 0.020% 0.0166101%
City Half Moon Bay San Mateo 0.004% 0.0031638%
City Hillsborough San Mateo 0.013% 0.0110029%
City Menlo Park San Mateo 0.015% 0.0126209%
City Millbrae San Mateo 0.013% 0.0105836%
City Pacifica San Mateo 0.016% 0.0130625%
City Redwood City San Mateo 0.056% 0.0463511%
City San Bruno San Mateo 0.021% 0.0172161%
City San Carlos San Mateo 0.013% 0.0108885%
City San Mateo San Mateo 0.052% 0.0425841%
City South San Francisco San Mateo 0.043% 0.0353943%
County Santa Barbara County Santa Barbara 1.132% 1.385% 1.1768968% City Carpinteria Santa Barbara 0.001% 0.0008938%
City Goleta Santa Barbara 0.004% 0.0028969%
City Lompoc Santa Barbara 0.047% 0.0389379%
City Santa Barbara Santa Barbara 0.122% 0.1004559%
City Santa Maria Santa Barbara 0.058% 0.0479179%
County Santa Clara County Santa Clara 2.404% 2.941% 2.4987553% City Campbell Santa Clara 0.014% 0.0112566%
City Cupertino Santa Clara 0.008% 0.0066824%
City Gilroy Santa Clara 0.025% 0.0202891%
DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 APPENDIX 1
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Los Altos Santa Clara 0.013% 0.0103338%
City Los Gatos Santa Clara 0.013% 0.0103220%
City Milpitas Santa Clara 0.036% 0.0298120%
City Morgan Hill Santa Clara 0.015% 0.0124619%
City Mountain View Santa Clara 0.041% 0.0334608%
City Palo Alto Santa Clara 0.039% 0.0323080%
City San Jose Santa Clara 0.294% 0.360% 0.3054960%
City Santa Clara Santa Clara 0.067% 0.0549723%
City Saratoga Santa Clara 0.004% 0.0034161%
City Sunnyvale Santa Clara 0.053% 0.0434069%
County Santa Cruz County Santa Cruz 0.783% 0.957% 0.8135396% City Capitola Santa Cruz 0.020% 0.0168191%
City Santa Cruz Santa Cruz 0.143% 0.1180348%
City Scotts Valley Santa Cruz 0.015% 0.0126525%
City Watsonville Santa Cruz 0.063% 0.0520136%
County Shasta County Shasta 1.095% 1.339% 1.1380191%
City Anderson Shasta 0.024% 0.0198896%
City Redding Shasta 0.284% 0.2334841%
City Shasta Lake Shasta 0.004% 0.0031993%
County Siskiyou County Siskiyou 0.228% 0.279% 0.2373393% County Solano County Solano 0.760% 0.6260795%
City Benicia Solano 0.031% 0.0253903%
City Dixon Solano 0.016% 0.0130849%
City Fairfield Solano 0.109% 0.0897317%
City Suisun City Solano 0.021% 0.0176183%
City Vacaville Solano 0.119% 0.0976497%
City Vallejo Solano 0.167% 0.1373644%
County Sonoma County Sonoma 1.218% 1.490% 1.2661290%
City Healdsburg Sonoma 0.032% 0.0266929%
City Petaluma Sonoma 0.081% 0.0667507%
DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 APPENDIX 1
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Rohnert Park Sonoma 0.041% 0.0340759%
City Santa Rosa Sonoma 0.184% 0.1519070%
City Sonoma Sonoma 0.022% 0.0183438%
City Windsor Sonoma 0.016% 0.0129298%
County Stanislaus County Stanislaus 1.722% 1.4182273%
City Ceres Stanislaus 0.041% 0.0340260%
City Modesto Stanislaus 0.217% 0.1788759%
City Newman Stanislaus 0.006% 0.0046964%
City Oakdale Stanislaus 0.018% 0.0145531%
City Patterson Stanislaus 0.015% 0.0126590%
City Riverbank Stanislaus 0.010% 0.0085699%
City Turlock Stanislaus 0.065% 0.0531966%
County Sutter County Sutter 0.306% 0.374% 0.3179548%
City Yuba City Sutter 0.074% 0.0606242%
County Tehama County Tehama 0.213% 0.261% 0.2216654%
City Red Bluff Tehama 0.014% 0.0117771%
County Trinity County Trinity 0.082% 0.101% 0.0855476%
County Tulare County Tulare 0.809% 0.990% 0.8410949%
City Dinuba Tulare 0.014% 0.0116929%
City Exeter Tulare 0.004% 0.0032479%
City Farmersville Tulare 0.003% 0.0027879%
City Lindsay Tulare 0.007% 0.0057111%
City Porterville Tulare 0.021% 0.0171845%
City Tulare Tulare 0.037% 0.0302273%
City Visalia Tulare 0.066% 0.0545872%
County Tuolumne County Tuolumne 0.486% 0.594% 0.5047621% County Ventura County Ventura 2.192% 2.681% 2.2781201%
City Camarillo Ventura 0.002% 0.0012815%
City Fillmore Ventura 0.002% 0.0020294%
City Moorpark Ventura 0.008% 0.0067337%
DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 APPENDIX 1
15 of 15
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Oxnard Ventura 0.156% 0.190% 0.1617338%
City Port Hueneme Ventura 0.021% 0.0174145%
City San Buenaventura (Ventura) Ventura 0.085% 0.0702181% City Santa Paula Ventura 0.014% 0.0119072%
City Simi Valley Ventura 0.065% 0.0533043%
City Thousand Oaks Ventura 0.022% 0.0179902%
County Yolo County Yolo 0.357% 0.437% 0.3713319%
City Davis Yolo 0.055% 0.0451747%
City West Sacramento Yolo 0.066% 0.0544321%
City Woodland Yolo 0.058% 0.0477904%
County Yuba County Yuba 0.214% 0.262% 0.2225679%
City Marysville Yuba 0.014% 0.0112079%
DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 1 APPENDIX 2
Cost Reimbursement Procedure

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

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

DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 2 i. If a Plaintiff Subdivision is eligible to seek reimbursement of Costs, in whole or in part, from funds available under Section XIV and Exhibit R of the Teva Settlement Agreement, Section XIII and Exhibit R of the Allergan Settlement Agreement, Section X and Exhibit R of the CVS Settlement Agreement, Section IX and Exhibit R of the Walgreens Settlement Agreement, Section IX and Exhibit R of the Walmart Settlement Agreement, Section X or Exhibit R of the Distributor Settlement Agreement, or Section XI or Exhibit R of the Janssen Settlement Agreement, it must first make a timely application for reimbursement from such funds. To allow sufficient time for determination of those applications, no claim for Costs to the CA Subdivision Fund under this Agreement may be made before the First Claims Date. ii. A Plaintiff Subdivision that wishes to be reimbursed from the CA Subdivision Fund must submit a claim to the Special Master no later than forty-five (45) days after the First Claims Date. The Special Master will then compile and redistribute the aggregated claim totals for each Plaintiff Subdivision via email to representatives of all the Plaintiff Subdivisions. A claim for attorney and staff time must list, for each attorney or staff member included in the claim, the following information: name, title, total hours claimed, hourly rate (including, if sought, benefits and share of overhead), and narrative summarizing the general nature of the work performed by the attorney or staff member. For reimbursement of “hard” costs, the subdivision may aggregate across a category (e.g., total for travel costs). It is the intention of the Plaintiff Subdivisions that submission of documents related to reimbursement of Costs does not waive any attorney-client privilege or exemptions to the California Public Records Act.
iii. The Special Master may request, at his or her sole option, additional documents or details to assist in the final award of Costs.
iv. The Special Master will review claims for reasonableness and will notify each Plaintiff Subdivision of the final determination of its claim, and will provide a list of all final awards to all Plaintiff Subdivisions by email or, upon request, via First Class U.S. Mail. Any Plaintiff Subdivision may ask the Special Master to reconsider any final award within twenty-one (21) days. The Special Master will make a final determination on any such reconsideration request within thirty (30) days of receipt. v. Any decision of the Special Master is final and binding, and will be considered under the California Arbitration Act, Code of Civil Procedure section 1280 et seq. as a final arbitration award. Nothing in this agreement is intended to expand the scope of judicial review of the final award for errors of fact or law, and the Parties agree that they may only seek to vacate the award if clear and convincing evidence demonstrates one of the factors set forth in Code of Civil Procedure, section 1286.2, subdivision (a). Plaintiff Subdivisions will have fourteen (14) days after all final awards are made, together with any final determination of a request for reconsideration, to seek review in the Superior Court of California, pursuant to Code of Civil Procedure, section 1285, where the State has filed its Consent Judgment.

DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 3 vi. The Special Master will prepare a report of Costs that includes his or her fees and expenses at least ninety (90) days before the Payment Date for each Annual Payment. The Special Master’s preparation of a report of Costs does not discharge a Plaintiff Subdivision’s reporting requirement under Section VIII.C of the Allergan Settlement Agreement.
vii. A member of the Plaintiff Subdivision Committee, which is a CA Participating Subdivision, will submit to the Settlement Fund Administrator and Allergan a report of the fees and expenses incurred by the Special Master pursuant to Section VIII.C of the Allergan Settlement Agreement.
c) Claims Priority and Limitation.
i. The Special Master will submit invoices for compensation of reasonable fees and expenses to the Plaintiff Subdivision Committee no later than ninety (90) days prior to the Payment Date for each Annual Payment. The Plaintiff Subdivision Committee will promptly review and, if reasonable, approve the Special Master’s invoice for compensation. The Plaintiff Subdivision Committee will submit approved invoices to the Settlement Fund Administrator for payment. The Special Master’s approved invoices have priority and will be paid first from the CA Subdivision Fund before any award of Costs, subject to the limitation in Section 2.c.v below. ii. Final Awards of Costs that do not exceed seventy-five thousand dollars ($75,000.00) will be paid next in priority after the Special Master’s approved invoices.
iii. Final Awards of Costs in excess of seventy-five thousand dollars ($75,000.00) will be paid proportionally from the funds remaining in that year’s Annual Payment. iv. Any claim for Costs that is not paid in full will be allocated against the next year’s distribution from the CA Subdivision Fund, until all approved claims for Costs are paid in full.
v. In no event will more than 50% of the total CA Subdivision Fund received in any year be used to pay Costs or the Special Master’s approved invoices. vi. In no event shall more than $28 million of the total CA Subdivision Funds paid pursuant to the Teva Settlement Agreement, Allergan Settlement Agreement, Distributor Settlement Agreement, CVS Settlement Agreement, Janssen Settlement Agreement, Walgreens Settlement Agreement, and the Walmart Settlement Agreement be used to pay Costs.
d) Collateral Source Payments and Third-Party Settlement. i. In the event a Plaintiff Subdivision is awarded compensation, in whole or in part, by any source of funds created as a result of litigation against an Opioid Defendant for its reasonable Costs, it will reduce its claim for Costs from the CA Subdivision Fund by that amount. If a Plaintiff Subdivision has already received a final award of Costs from the CA Subdivision Fund, it will repay the fund up to the prior award DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 4 of Costs via a payment to the Settlement Fund Administrator or notify the Settlement Fund Administrator that its allocation from the next and subsequent Annual Payments should be reduced accordingly. If the Plaintiff Subdivision is repaying any prior award of Costs, that repayment will occur as soon as is feasible after the Plaintiff Subdivision’s receipt of Cost funds from the collateral source, but no more than 90 days after its receipt from the collateral source. The Settlement Fund Administrator will add any repaid Costs to the CA Subdivision Fund. Any Plaintiff Subdivision that has submitted for reimbursement to any national fund and has not received a final determination by the First Claims Date may request that the settlement administrator withhold some or all of its payment from the CA Subdivision Fund in order to avoid repayment.
ii. In the event a Plaintiff Subdivision reaches a monetary settlement or compromise against any Opioid Defendant outside of the National Opioid Settlement, the monetary portion of such settlement, net of fees paid to outside contingency fee counsel and of funds earmarked strictly for abatement, will be credited against its Costs and the subdivision will be ineligible to recover those credited Costs from the CA Subdivision Fund. Plaintiff Subdivisions negotiating monetary settlements or compromises against any Opioid Defendant outside of the National Opioid Settlement will negotiate for funds to repay any Costs it previously received from the CA Subdivision Fund or for Costs it otherwise might be eligible to claim from the CA Subdivision Fund. If such a settlement is paid after all final approved claims for Costs by all Plaintiff Subdivisions are satisfied in full, the settling subdivision will reimburse the CA Subdivision Fund in that amount by making payment to the Settlement Fund Administrator to add to the CA Subdivision Fund in a manner consistent with the repayments described in section 2.d.i above.

DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 1 APPENDIX 3

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

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

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

The Attorney General is executing this agreement solely because the definition of “State BackStop Agreement” in Exhibit R of the Allergan Settlement Agreement requires such agreements to be between “a Settling State” and private counsel for a participating subdivision. Neither the California Attorney General nor the State of California have any obligations under this Backstop Agreement, and this Backstop Agreement does not require the payment of any state funds to [SUBDIVISION], [COUNSEL], or any other party.
[DATE] [SUBDIVISION SIGNATURE BLOCK]
[DATE] [COUNSEL SIGNATURE BLOCK]
[DATE] [ATTORNEY GENERAL SIGNATURE BLOCK]
DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 1 Proposed California State-Subdivision Agreement
Regarding Distribution and Use of
Settlement Funds – Teva Settlement

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

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

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

DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 2 g) Walmart Settlement Agreement means the Walmart Settlement Agreement dated November 14, 2022, and any revision thereto.
h) CA Litigating Special District means a Litigating Special District located in California. CA Litigating Special Districts include Downey Unified School District, Elk Grove Unified School District, Kern High School District, Montezuma Fire Protection District (located in Stockton, California), Santa Barbara San Luis Obispo Regional Health Authority, Inland Empire Health Plan, Health Plan of San Joaquin, San Leandro Unified School District, Pleasant Valley School District Board, and LA Care Health Plan.
i) Plaintiff Subdivision means a Subdivision located in California, other than a CA Litigating Special District, that filed a lawsuit, on behalf of the Subdivision and/or through an official of the Subdivision on behalf of the People of the State of California, against one or more Opioid Defendants prior to October 1, 2020. j) Opioid Defendant means any defendant (including but not limited to Teva Pharmaceutical Industries Ltd., Allergan Finance, LLC, Allergan Limited, CVS Health Corporation, CVS Pharmacy, Inc., Walgreen Co., Walmart Inc., Johnson & Johnson, Janssen Pharmaceuticals, Inc., Purdue Pharma L.P., Cardinal Health, Inc., AmerisourceBergen Corporation, and McKesson Corporation) named in a lawsuit seeking damages, abatement, or other remedies related to or caused by the opioid public health crisis in any lawsuit brought by any state or local government on or before October 1, 2020.

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

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

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

DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 3 Settlement Fund shall be combined pursuant to this CA Teva Allocation Agreement, and 15% of that total shall be allocated to the State of California (the “State of California Allocation”), 70% to the California Abatement Accounts Fund (“CA Abatement Accounts Fund”), and 15% to the California Subdivision Fund (“CA Subdivision Fund”).

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

B. CA Abatement Accounts Fund
i. Allocation of CA Abatement Accounts Funds
a) Seventy percent of the total Settlement Fund payments will be allocated to the CA Abatement Accounts Fund. The funds in the CA Abatement Accounts Fund will be allocated based on the allocation model developed in connection with the proposed negotiating class in the National Prescription Opiate Litigation (MDL No. 2804), as adjusted to reflect only those cities and counties that are eligible, based on population or litigation status, to become a CA Participating Subdivision. The percentage from the CA Abatement Accounts Fund allocated to each CA Participating Subdivision is set forth in Appendix 1 in the column entitled abatement percentage (the “Local Allocation”). For the avoidance of doubt, CA Litigating Special Districts and California towns, cities, and counties with a population less than 10,000 are not eligible to receive an allocation of CA Abatement Accounts Funds.
b) A CA Participating Subdivision that is a county, or a city and county, will be allocated its Local Allocation share as of the date on which it becomes a Participating Subdivision, and will receive payments as provided in the Teva Settlement Agreement. c) A CA Participating Subdivision that is a city will be allocated its Local Allocation share as of the date on which it becomes a Participating Subdivision. The Local Allocation share for a city that is a CA Participating Subdivision will be paid to the county in which the city is located, rather than to the city, so long as: (a) the county is a CA Participating Subdivision, and (b) the city has not advised the Settlement Fund Administrator that it requests direct payment at least 60 days prior to a Payment Date. A Local Allocation share allocated to a city but paid to a county is not required to be spent exclusively for abatement activities in that city, but will become part of the county’s share of the CA Abatement Accounts Funds, which will be used in accordance with Section 4.B.ii (Use of CA Abatement Accounts Funds) and reported on in accordance with Section 4.B.iii (CA Abatement Accounts Fund Oversight).
d) A city within a county that is a CA Participating Subdivision may opt in or out of direct payment at any time, and it may also elect direct payment of only a portion of its share, with the remainder going to the county, by providing notice to the Settlement Fund Administrator at least 60 days prior to a Payment Date. For purposes of this CA Teva
DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 4 Allocation Agreement, the Cities of Los Angeles, Oakland, San Diego, San Jose and Eureka will be deemed to have elected direct payment if they become Participating Subdivisions.
e) The State will receive the Local Allocation share of any payment to the Settlement Fund that is attributable to a county or city that is eligible to become a CA Participating Subdivision, but that has not, as of the date of that payment to the Settlement Fund, become a Participating Subdivision.
f) Funds received by a CA Participating Subdivision, and not expended or encumbered within five years of receipt and in accordance with the Teva Settlement Agreement and this CA Teva Allocation Agreement shall be transferred to the State; provided however, that CA Participating Subdivisions have seven years to expend or encumber CA Abatement Accounts Funds designated to support capital outlay projects before they must be transferred to the State. This provision shall not apply to the Cost Reimbursement Funds, which shall be controlled by Appendix 2. ii. Use of CA Abatement Accounts Funds
a) The CA Abatement Accounts Funds will be used for future Opioid Remediation in one or more of the areas described in the List of Opioid Remediation Uses, which is Exhibit E to the Teva Settlement Agreement.
b) In addition to this requirement, no less than 50% of the funds received by a CA Participating Subdivision from the Abatement Accounts Fund in each calendar year will be used for one or more of the following High Impact Abatement Activities:
(1) the provision of matching funds or operating costs for substance use disorder facilities within the Behavioral Health Continuum Infrastructure Program; (2) creating new or expanded Substance Use Disorder (“SUD”) treatment infrastructure; (3) addressing the needs of communities of color and vulnerable populations (including sheltered and unsheltered homeless populations) that are disproportionately impacted by SUD;
(4) diversion of people with SUD from the justice system into treatment, including by providing training and resources to first and early responders (sworn and non-sworn) and implementing best practices for outreach, diversion and deflection, employability, restorative justice, and harm reduction; and/or (5) interventions to prevent drug addiction in vulnerable youth. c) The California Department of Health Care Services (“DHCS”) may add to this list (but not delete from it) by designating additional High Impact Abatement Activities. DHCS will make reasonable efforts to consult with stakeholders, including the CA Participating Subdivisions, before adding additional High Impact Abatement Activities to this list.

DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 5 d) For the avoidance of doubt, and subject to the requirements of the Teva Settlement Agreement and applicable law, CA Participating Subdivisions may form agreements or ventures, or otherwise work in collaboration with, federal, state, local, tribal or private sector entities in pursuing Opioid Remediation activities funded from the CA Abatement Accounts Fund. Further, provided that all CA Abatement Accounts Funds are used for Opioid Remediation consistent with the Teva Settlement Agreement and this CA Teva Allocation Agreement, a county and any cities or towns within the county may agree to reallocate their respective shares of the CA Abatement Accounts Funds among themselves, provided that any direct distribution may only be to a CA Participating Subdivision and any CA Participating Subdivision must agree to their share being reallocated.
iii. CA Abatement Accounts Fund Oversight
a) Pursuant to Section 5 below, CA Participating Subdivisions receiving settlement funds must prepare and file reports annually regarding the use of those funds. DHCS may regularly review the reports prepared by CA Participating Subdivisions about the use of CA Abatement Accounts Funds for compliance with the Teva Settlement Agreement and this CA Teva Allocation Agreement.
b) If DHCS determines that a CA Participating Subdivision’s use of CA Abatement Accounts Funds is inconsistent with the Teva Settlement Agreement or this CA Teva Allocation Agreement, whether through review of reports or information from any other sources, DHCS shall send a request to meet and confer with the CA Participating Subdivision. The parties shall meet and confer in an effort to resolve the concern. c) If the parties are unable to reach a resolution, DHCS may conduct an audit of the Subdivision’s use of the CA Abatement Accounts Funds within one year of the request to meet and confer, unless the parties mutually agree in writing to extend the meet and confer time frame.
d) If the concern still cannot be resolved, the State may bring a motion or action in the court where the State has filed its Consent Judgment to resolve the concern or otherwise enforce the requirements of the Teva Settlement Agreement or this CA Teva Allocation Agreement. However, in no case shall any audit be conducted, or motion be brought, as to a specific expenditure of funds, more than five years after the date on which the expenditure of the funds was reported to DHCS, in accordance with this agreement. e) Notwithstanding the foregoing, this Agreement does not limit the statutory or constitutional authority of any state or local agency or official to conduct audits, 6 investigations, or other oversight activities, or to pursue administrative, civil, or criminal enforcement actions.

DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 6 C. CA Subdivision Fund
i. Fifteen percent of the total Settlement Fund payments will be allocated to the CA Subdivision Fund. All funds in the CA Subdivision Fund will be allocated among the Plaintiff Subdivisions that are Initial Participating Subdivisions. The funds will be used, subject to any limits imposed by the Teva Settlement Agreement and this CA Teva Allocation Agreement, to fund future Opioid Remediation and reimburse past opioidrelated expenses, which may include fees and expenses related to litigation, and to pay the reasonable fees and expenses of the Special Master as set forth in Appendix 2.

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

A Plaintiff Subdivision may separately agree to use its share of the CA Subdivision Fund to pay for fees or costs incurred by its contingency-fee counsel (“State Back-Stop Agreement”), pursuant to Exhibit R, section I(X), of the Teva Settlement Agreement and the MDL Fees Order, DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 7 so long as such contingency fees do not exceed a total contingency fee of 15% of the total gross recovery of the Plaintiff Subdivision pursuant to the Teva Settlement, inclusive of contingency fees from the national Attorney Fee Fund and this State Back-Stop Agreement. Before seeking fees or litigation costs and expenses from a State Back-Stop Agreement, private counsel representing Plaintiff Subdivisions must first seek contingency fees and costs from the Attorney Fee Fund or Cost Funds created under the Teva Settlement Agreement. Further, private counsel may only seek reimbursement for litigation fees and costs that have not previously been reimbursed through prior settlements or judgments.

DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 8 d) Each Plaintiff Subdivision receiving CA Subdivision Funds will track all deposits and expenditures, as required by the Teva Settlement Agreement and this CA Teva Allocation Agreement. Among other things, Plaintiff Subdivisions using monies from the CA Subdivision Fund for purposes that do not qualify as Opioid Remediation must identify and include in their annual report, the amount and how such funds were used, including if used to pay attorneys’ fees, investigation costs, or litigation costs. Pursuant to Section VIII(C) of the Teva Settlement Agreement, such information must also be reported to the Settlement Fund Administrator and Teva.
e) In each year in which DHCS prepares an annual report DHCS will also host a meeting to discuss the annual report and the Opioid Remediation activities being carried out by the State and Participating Subdivisions.

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

DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 9 The undersigned, Cypress city, ACKNOWLEDGES acceptance of this Proposed California StateSubdivision Agreement Regarding Distribution and Use of Settlement Funds – Teva Settlement is a requirement to be an Initial Participating Subdivision in the Teva Settlement and ACCEPTS this Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds – Teva Settlement. EXECUTED on /date_1_teva_allergan/.

Signature: /signer_1_teva_allergan/
Name: /name_1_teva_allergan/
Title: /title_1_teva_allergan/
Date: /date_1_teva_allergan/
DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 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.

2.c.v below.
ii. Final Awards of Costs that do not exceed seventy-five thousand dollars ($75,000.00) will be paid next in priority after the Special Master’s approved invoices.
iii. Final Awards of Costs in excess of seventy-five thousand dollars ($75,000.00) will be paid proportionally from the funds remaining in that year’s Annual Payment. iv. Any claim for Costs that is not paid in full will be allocated against the next year’s distribution from the CA Subdivision Fund, until all approved claims for Costs are paid in full.
v. In no event will more than 50% of the total CA Subdivision Fund received in any year be used to pay Costs or the Special Master’s approved invoices. vi. In no event shall more than $28 million of the total CA Subdivision Funds paid pursuant to the Teva Settlement Agreement, Allergan Settlement Agreement, Distributor Settlement Agreement, CVS Settlement Agreement, Janssen Settlement Agreement, Walgreens Settlement Agreement, and the Walmart Settlement Agreement be used to pay Costs.
d) Collateral Source Payments and Third-Party Settlement. i. In the event a Plaintiff Subdivision is awarded compensation, in whole or in part, by any source of funds created as a result of litigation against an Opioid Defendant for 4 its reasonable Costs, it will reduce its claim for Costs from the CA Subdivision Fund by that amount. If a Plaintiff Subdivision has already received a DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 4 final award of Costs from the CA Subdivision Fund, it will repay the fund up to the prior award of Costs via a payment to the Settlement Fund Administrator or notify the Settlement Fund Administrator that its allocation from the next and subsequent Annual Payments should be reduced accordingly. If the Plaintiff Subdivision is repaying any prior award of Costs, that repayment will occur as soon as is feasible after the Plaintiff Subdivision’s receipt of Cost funds from the collateral source, but no more than 90 days after its receipt from the collateral source. The Settlement Fund Administrator will add any repaid Costs to the CA Subdivision Fund. Any Plaintiff Subdivision that has submitted for reimbursement to any national fund and has not received a final determination by the First Claims Date may request that the settlement administrator withhold some or all of its payment from the CA Subdivision Fund in order to avoid repayment.
ii. In the event a Plaintiff Subdivision reaches a monetary settlement or compromise against any Opioid Defendant outside of the National Opioid Settlement, the monetary portion of such settlement, net of fees paid to outside contingency fee counsel and of funds earmarked strictly for abatement, will be credited against its Costs and the subdivision will be ineligible to recover those credited Costs from the CA Subdivision Fund. Plaintiff Subdivisions negotiating monetary settlements or compromises against any Opioid Defendant outside of the National Opioid Settlement will negotiate for funds to repay any Costs it previously received from the CA Subdivision Fund or for Costs it otherwise might be eligible to claim from the CA Subdivision Fund. If such a settlement is paid after all final approved claims for Costs by all Plaintiff Subdivisions are satisfied in full, the settling subdivision will reimburse the CA Subdivision Fund in that amount by making payment to the Settlement Fund Administrator to add to the CA Subdivision Fund in a manner consistent with the repayments described in section 2.d.i above.

DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 1 APPENDIX 3

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

The Attorney General is executing this agreement solely because the definition of “State BackStop Agreement” in Exhibit R of the Teva Settlement Agreement requires such agreements to be between “a Settling State” and private counsel for a participating subdivision. Neither the California Attorney General nor the State of California have any obligations under this Backstop Agreement, and this Backstop Agreement does not require the payment of any state funds to [SUBDIVISION], [COUNSEL], or any other party.
[DATE] [SUBDIVISION SIGNATURE BLOCK]
[DATE] [COUNSEL SIGNATURE BLOCK]
[DATE] [ATTORNEY GENERAL SIGNATURE BLOCK]
DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 1 Proposed California State-Subdivision Agreement
Regarding Distribution and Use of
Settlement Funds – Walgreens Settlement

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

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

2. Definitions
a) CA Participating Subdivision means a Participating Subdivision that is also (a) a Plaintiff Subdivision and/or (b) a Primary Subdivision with a population equal to or greater than 10,000. For the avoidance of doubt, eligible CA Participating Subdivisions are those California subdivisions listed in Exhibit C (excluding Litigating Special Districts) and/or Exhibit I to the Walgreens Settlement Agreement.
b) Allergan Settlement Agreement means the Allergan Settlement Agreement dated November 22, 2022, and any revision thereto.
c) CVS Settlement Agreement means the CVS Settlement Agreement dated December 9, 2022, and any revision thereto as well as any modification thereto entered into by the State of California and CVS.
d) Distributor Settlement Agreement means the Distributor Settlement Agreement dated July 21, 2021, and any revision thereto.
e) Janssen Settlement Agreement means the Janssen Settlement Agreement dated July 21, 2021, and any revision thereto.
f) Teva Settlement Agreement means the Teva Settlement Agreement dated November 22, 2022, and any revision thereto.
g) Walmart Settlement Agreement means the Walmart Settlement Agreement dated November 14, 2022, and any revision thereto.
h) CA Litigating Special District means a Litigating Special District located in California. CA Litigating Special Districts include Downey Unified School District, Elk Grove Unified School District, Kern High School District, Montezuma Fire Protection District (located in Stockton, California), Santa Barbara San Luis Obispo Regional Health Authority, Inland Empire Health Plan, Health Plan of San Joaquin, San Leandro Unified School District, DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 2 Pleasant Valley School District Board, and LA Care Health Plan. i) Plaintiff Subdivision means a Subdivision located in California, other than a CA Litigating Special District, that filed a lawsuit, on behalf of the Subdivision and/or through an official of the Subdivision on behalf of the People of the State of California, against one or more Opioid Defendants prior to October 1, 2020. j) Opioid Defendant means any defendant (including but not limited to Walgreen Co., Teva Pharmaceutical Industries Ltd., Allergan Finance, LLC, Allergan Limited, CVS Health Corporation, CVS Pharmacy, Inc., Walmart Inc., Johnson & Johnson, Janssen Pharmaceuticals, Inc., Purdue Pharma L.P., Cardinal Health, Inc., AmerisourceBergen Corporation, and McKesson Corporation) named in a lawsuit seeking damages, abatement, or other remedies related to or caused by the opioid public health crisis in any lawsuit brought by any state or local government on or before October 1, 2020.

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

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

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

DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 3 A. State of California Allocation
Fifteen percent of the total Settlement Fund payments will be allocated to the State and used by the State for future Opioid Remediation.

DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 4 e) The State will receive the Local Allocation share of any payment to the Settlement Fund that is attributable to a county or city that is eligible to become a CA Participating Subdivision, but that has not, as of the date of that payment to the Settlement Fund, become a Participating Subdivision.
f) Funds received by a CA Participating Subdivision, and not expended or encumbered within five years of receipt and in accordance with the Walgreens Settlement Agreement and this CA Walgreens Allocation Agreement shall be transferred to the State; provided however, that CA Participating Subdivisions have seven years to expend or encumber CA Abatement Accounts Funds designated to support capital outlay projects before they must be transferred to the State. This provision shall not apply to the Cost Reimbursement Funds, which shall be controlled by Appendix 2.
ii. Use of CA Abatement Accounts Funds
a) The CA Abatement Accounts Funds will be used for future Opioid Remediation in one or more of the areas described in the List of Opioid Remediation Uses, which is Exhibit E to the Walgreens Settlement Agreement.
b) In addition to this requirement, no less than 50% of the funds received by a CA Participating Subdivision from the Abatement Accounts Fund in each calendar year will be used for one or more of the following High Impact Abatement Activities:
(1) the provision of matching funds or operating costs for substance use disorder facilities within the Behavioral Health Continuum Infrastructure Program; (2) creating new or expanded Substance Use Disorder (“SUD”) treatment infrastructure; (3) addressing the needs of communities of color and vulnerable populations (including sheltered and unsheltered homeless populations) that are disproportionately impacted by SUD;
(4) diversion of people with SUD from the justice system into treatment, including by providing training and resources to first and early responders (sworn and non-sworn) and implementing best practices for outreach, diversion and deflection, employability, restorative justice, and harm reduction; and/or (5) interventions to prevent drug addiction in vulnerable youth. c) The California Department of Health Care Services (“DHCS”) may add to this list (but not delete from it) by designating additional High Impact Abatement Activities. DHCS will make reasonable efforts to consult with stakeholders, including the CA Participating Subdivisions, before adding additional High Impact Abatement Activities to this list.
d) For the avoidance of doubt, and subject to the requirements of the Walgreens Settlement Agreement and applicable law, CA Participating Subdivisions may form agreements or
DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 5 ventures, or otherwise work in collaboration with, federal, state, local, tribal or private sector entities in pursuing Opioid Remediation activities funded from the CA Abatement Accounts Fund. Further, provided that all CA Abatement Accounts Funds are used for Opioid Remediation consistent with the Walgreens Settlement Agreement and this CA Walgreens Allocation Agreement, a county and any cities or towns within the county may agree to reallocate their respective shares of the CA Abatement Accounts Funds among themselves, provided that any direct distribution may only be to a CA Participating Subdivision and any CA Participating Subdivision must agree to their share being reallocated.
iii. CA Abatement Accounts Fund Oversight
a) Pursuant to Section 5 below, CA Participating Subdivisions receiving settlement funds must prepare and file reports annually regarding the use of those funds. DHCS may regularly review the reports prepared by CA Participating Subdivisions about the use of CA Abatement Accounts Funds for compliance with the Walgreens Settlement Agreement and this CA Walgreens Allocation Agreement.
b) If DHCS determines that a CA Participating Subdivision’s use of CA Abatement Accounts Funds is inconsistent with the Walgreens Settlement Agreement or this CA Walgreens Allocation Agreement, whether through review of reports or information from any other sources, DHCS shall send a request to meet and confer with the CA Participating Subdivision. The parties shall meet and confer in an effort to resolve the concern.
c) If the parties are unable to reach a resolution, DHCS may conduct an audit of the Subdivision’s use of the CA Abatement Accounts Funds within one year of the request to meet and confer, unless the parties mutually agree in writing to extend the meet and confer time frame.
d) If the concern still cannot be resolved, the State may bring a motion or action in the court where the State has filed its Consent Judgment to resolve the concern or otherwise enforce the requirements of the Walgreens Settlement Agreement or this CA Walgreens Allocation Agreement. However, in no case shall any audit be conducted, or motion be brought, as to a specific expenditure of funds, more than five years after the date on which the expenditure of the funds was reported to DHCS, in accordance with this agreement.
e) Notwithstanding the foregoing, this Agreement does not limit the statutory or constitutional authority of any state or local agency or official to conduct audits, investigations, or other oversight activities, or to pursue administrative, civil, or criminal enforcement actions.

DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 6 C. CA Subdivision Fund
i. Fifteen percent of the total Settlement Fund payments will be allocated to the CA Subdivision Fund. All funds in the CA Subdivision Fund will be allocated among the Plaintiff Subdivisions that are Initial Participating Subdivisions. The funds will be used, subject to any limits imposed by the Walgreens Settlement Agreement and this CA Walgreens Allocation Agreement, to fund future Opioid Remediation and reimburse past opioid-related expenses, which may include fees and expenses related to litigation, and to pay the reasonable fees and expenses of the Special Master as set forth in Appendix 2.

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

Before seeking fees or litigation costs and expenses from a State Back-Stop Agreement, private counsel representing Plaintiff Subdivisions must first seek contingency fees and costs from the Attorney Fee Fund or Cost Funds created under the Walgreens Settlement Agreement. Further, DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 7 private counsel may only seek reimbursement for litigation fees and costs that have not previously been reimbursed through prior settlements or judgments.

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

DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 8 e) In each year in which DHCS prepares an annual report DHCS will also host a meeting to discuss the annual report and the Opioid Remediation activities being carried out by the State and Participating Subdivisions.

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

DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 9 The undersigned, Cypress city, ACKNOWLEDGES acceptance of this Proposed California StateSubdivision Agreement Regarding Distribution and Use of Settlement Funds – Walgreens Settlement is a requirement to be an Initial Participating Subdivision in the Walgreens Settlement and ACCEPTS this Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds – Walgreens Settlement. EXECUTED on /date_1_walgreens/.

Signature: /signer_1_teva_allergan/
Name: /name_1_teva_allergan/
Title: /title_1_teva_allergan/
Date: /date_1_walgreens/
DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 APPENDIX 1
DISCLAIMER: The allocation percentages herein are estimates only and should not be relied on for decisions regarding legal rights, releases, waivers, or other decisions affecting current or potential legal claims. Percentages shown in the Plaintiff Subdivision Percentage column may change pursuant to Section 4.C. of the California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds—Walgreens Settlement, whereas the percentages shown in the Abatement Percentage column should not change. Participating Subdivisions, underlying calculations, and the calculated allocation percentages are subject to change.

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

2. Cost Reimbursement to Plaintiff Subdivision
a) Purpose. Substantial resources have been expended to hold Opioid Defendants accountable for creating and profiting from the opioid crisis, and this effort has been a significant catalyst in creating National Opioid Settlements with various manufacturers, distributors, and chain pharmacies.
b) Claims Procedure.
i. If a Plaintiff Subdivision is eligible to seek reimbursement of Costs, in whole or in part, from funds available under Section IX and Exhibit R of the Walgreens DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 1 7
Settlement Agreement, Section XIV and Exhibit R of the Teva Settlement Agreement, Section XIII and Exhibit R of the Allergan Settlement Agreement, Section X and Exhibit R of the CVS Settlement Agreement, Section IX and Exhibit R of the Walmart Settlement Agreement, Section X or Exhibit R of the Distributor Settlement Agreement, or Section XI or Exhibit R of the Janssen Settlement Agreement, it must first make a timely application for reimbursement from such funds. To allow sufficient time for determination of those applications, no claim for Costs to the CA Subdivision Fund under this Agreement may be made before the First Claims Date.
ii. A Plaintiff Subdivision that wishes to be reimbursed from the CA Subdivision Fund must submit a claim to the Special Master no later than forty-five (45) days after the First Claims Date. The Special Master will then compile and redistribute the aggregated claim totals for each Plaintiff Subdivision via email to representatives of all the Plaintiff Subdivisions. A claim for attorney and staff time must list, for each attorney or staff member included in the claim, the following information: name, title, total hours claimed, hourly rate (including, if sought, benefits and share of overhead), and narrative summarizing the general nature of the work performed by the attorney or staff member. For reimbursement of “hard” costs, the subdivision may aggregate across a category (e.g., total for travel costs). It is the intention of the Plaintiff Subdivisions that submission of documents related to reimbursement of Costs does not waive any attorney-client privilege or exemptions to the California Public Records Act.
iii. The Special Master may request, at his or her sole option, additional documents or details to assist in the final award of Costs.
iv. The Special Master will review claims for reasonableness and will notify each Plaintiff Subdivision of the final determination of its claim, and will provide a list of all final awards to all Plaintiff Subdivisions by email or, upon request, via First Class U.S. Mail. Any Plaintiff Subdivision may ask the Special Master to reconsider any final award within twenty-one (21) days. The Special Master will make a final determination on any such reconsideration request within thirty (30) days of receipt.
v. Any decision of the Special Master is final and binding, and will be considered under the California Arbitration Act, Code of Civil Procedure section 1280 et seq. as a final arbitration award. Nothing in this agreement is intended to expand the scope of judicial review of the final award for errors of fact or law, and the Parties agree that they may only seek to vacate the award if clear and convincing evidence demonstrates one of the factors set forth in Code of Civil Procedure, section 1286.2, subdivision (a). Plaintiff Subdivisions will have fourteen (14) days after all final awards are made, together with any final determination of a request for DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 1 8
reconsideration, to seek review in the Superior Court of California, pursuant to Code of Civil Procedure, section 1285, where the State has filed its Consent Judgment. vi. The Special Master will prepare a report of Costs that includes his or her fees and expenses at least ninety (90) days before the Payment Date for each Annual Payment. The Special Master’s preparation of a report of Costs does not discharge a Plaintiff Subdivision’s reporting requirement under Section V(B)(2) of the Walgreens Settlement Agreement.
vii. A member of the Plaintiff Subdivision Committee, which is a CA Participating Subdivision, will submit to the Settlement Fund Administrator and Walgreens a report of the fees and expenses incurred by the Special Master pursuant to Section V(B)(2) of the Walgreens Settlement Agreement.
c) Claims Priority and Limitation.
i. The Special Master will submit invoices for compensation of reasonable fees and expenses to the Plaintiff Subdivision Committee no later than ninety (90) days prior to the Payment Date for each Annual Payment. The Plaintiff Subdivision Committee will promptly review and, if reasonable, approve the Special Master’s invoice for compensation. The Plaintiff Subdivision Committee will submit approved invoices to the Settlement Fund Administrator for payment. The Special Master’s approved invoices have priority and will be paid first from the CA Subdivision Fund before any award of Costs, subject to the limitation in Section

DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 1 9
d) Collateral Source Payments and Third-Party Settlement. i. In the event a Plaintiff Subdivision is awarded compensation, in whole or in part, by any source of funds created as a result of litigation against an Opioid Defendant for its reasonable Costs, it will reduce its claim for Costs from the CA Subdivision Fund by that amount. If a Plaintiff Subdivision has already received a final award of Costs from the CA Subdivision Fund, it will repay the fund up to the prior award of Costs via a payment to the Settlement Fund Administrator or notify the Settlement Fund Administrator that its allocation from the next and subsequent Annual Payments should be reduced accordingly. If the Plaintiff Subdivision is repaying any prior award of Costs, that repayment will occur as soon as is feasible after the Plaintiff Subdivision’s receipt of Cost funds from the collateral source, but no more than 90 days after its receipt from the collateral source. The Settlement Fund Administrator will add any repaid Costs to the CA Subdivision Fund. Any Plaintiff Subdivision that has submitted for reimbursement to any national fund and has not received a final determination by the First Claims Date may request that the settlement administrator withhold some or all of its payment from the CA Subdivision Fund in order to avoid repayment.
ii. In the event a Plaintiff Subdivision reaches a monetary settlement or compromise against any Opioid Defendant outside of the National Opioid Settlement, the monetary portion of such settlement, net of fees paid to outside contingency fee counsel and of funds earmarked strictly for abatement, will be credited against its Costs and the subdivision will be ineligible to recover those credited Costs from the CA Subdivision Fund. Plaintiff Subdivisions negotiating monetary settlements or compromises against any Opioid Defendant outside of the National Opioid Settlement will negotiate for funds to repay any Costs it previously received from the CA Subdivision Fund or for Costs it otherwise might be eligible to claim from the CA Subdivision Fund. If such a settlement is paid after all final approved claims for Costs by all Plaintiff Subdivisions are satisfied in full, the settling subdivision will reimburse the CA Subdivision Fund in that amount by making payment to the Settlement Fund Administrator to add to the CA Subdivision Fund in a manner consistent with the repayments described in section 2.d.i above.

DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 1 APPENDIX 3

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

The Attorney General is executing this agreement solely because the definition of “State BackStop Agreement” in Exhibit R of the Walgreens Settlement Agreement requires such agreements to be between “a Settling State” and private counsel for a participating subdivision. Neither the California Attorney General nor the State of California have any obligations under this Backstop Agreement, and this Backstop Agreement does not require the payment of any state funds to [SUBDIVISION], [COUNSEL], or any other party.
[DATE] [SUBDIVISION SIGNATURE BLOCK]
[DATE] [COUNSEL SIGNATURE BLOCK]
[DATE] [ATTORNEY GENERAL SIGNATURE BLOCK]
DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 1 Proposed California State-Subdivision Agreement
Regarding Distribution and Use of
Settlement Funds – Walmart Settlement

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

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

DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 2 i) Plaintiff Subdivision means a Subdivision located in California, other than a CA Litigating Special District, that filed a lawsuit, on behalf of the Subdivision and/or through an official of the Subdivision on behalf of the People of the State of California, against one or more Opioid Defendants prior to October 1, 2020. j) Opioid Defendant means any defendant (including but not limited to Teva Pharmaceutical Industries Ltd., Allergan Finance, LLC, Allergan Limited, CVS Health Corporation, CVS Pharmacy, Inc., Walgreen Co., Walmart Inc., Johnson & Johnson, Janssen Pharmaceuticals, Inc., Purdue Pharma L.P., Cardinal Health, Inc., AmerisourceBergen Corporation, and McKesson Corporation) named in a lawsuit seeking damages, abatement, or other remedies related to or caused by the opioid public health crisis in any lawsuit brought by any state or local government on or before October 1, 2020.

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

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

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

DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 4 e) The State will receive the Local Allocation share of any payment to the Settlement Fund that is attributable to a county or city that is eligible to become a CA Participating Subdivision, but that has not, as of the date of that payment to the Settlement Fund, become a Participating Subdivision.
f) Funds received by a CA Participating Subdivision, and not expended or encumbered within five years of receipt and in accordance with the Walmart Settlement Agreement and this CA Walmart Allocation Agreement shall be transferred to the State; provided however, that CA Participating Subdivisions have seven years to expend or encumber CA Abatement Accounts Funds designated to support capital outlay projects before they must be transferred to the State. This provision shall not apply to the Cost Reimbursement Funds, which shall be controlled by Appendix 2.
ii. Use of CA Abatement Accounts Funds
a) The CA Abatement Accounts Funds will be used for future Opioid Remediation in one or more of the areas described in the List of Opioid Remediation Uses, which is Exhibit E to the Walmart Settlement Agreement.
b) In addition to this requirement, no less than 50% of the funds received by a CA Participating Subdivision from the Abatement Accounts Fund in each calendar year will be used for one or more of the following High Impact Abatement Activities:
(1) the provision of matching funds or operating costs for substance use disorder facilities within the Behavioral Health Continuum Infrastructure Program; (2) creating new or expanded Substance Use Disorder (“SUD”) treatment infrastructure; (3) addressing the needs of communities of color and vulnerable populations (including sheltered and unsheltered homeless populations) that are disproportionately impacted by SUD;
(4) diversion of people with SUD from the justice system into treatment, including by providing training and resources to first and early responders (sworn and non-sworn) and implementing best practices for outreach, diversion and deflection, employability, restorative justice, and harm reduction; and/or (5) interventions to prevent drug addiction in vulnerable youth. c) The California Department of Health Care Services (“DHCS”) may add to this list (but not delete from it) by designating additional High Impact Abatement Activities. DHCS will make reasonable efforts to consult with stakeholders, including the CA Participating Subdivisions, before adding additional High Impact Abatement Activities to this list.
d) For the avoidance of doubt, and subject to the requirements of the Walmart Settlement Agreement and applicable law, CA Participating Subdivisions may form agreements or ventures, or otherwise work in collaboration with, federal, state, local, tribal or private sector entities in pursuing Opioid Remediation activities funded from the CA Abatement DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 5 Accounts Fund. Further, provided that all CA Abatement Accounts Funds are used for Opioid Remediation consistent with the Walmart Settlement Agreement and this CA Walmart Allocation Agreement, a county and any cities or towns within the county may agree to reallocate their respective shares of the CA Abatement Accounts Funds among themselves, provided that any direct distribution may only be to a CA Participating Subdivision and any CA Participating Subdivision must agree to their share being reallocated.
iii. CA Abatement Accounts Fund Oversight
a) Pursuant to Section 5 below, CA Participating Subdivisions receiving settlement funds must prepare and file reports annually regarding the use of those funds. DHCS may regularly review the reports prepared by CA Participating Subdivisions about the use of CA Abatement Accounts Funds for compliance with the Walmart Settlement Agreement and this CA Walmart Allocation Agreement.
b) If DHCS determines that a CA Participating Subdivision’s use of CA Abatement Accounts Funds is inconsistent with the Walmart Settlement Agreement or this CA Walmart Allocation Agreement, whether through review of reports or information from any other sources, DHCS shall send a request to meet and confer with the CA Participating Subdivision. The parties shall meet and confer in an effort to resolve the concern.
c) If the parties are unable to reach a resolution, DHCS may conduct an audit of the Subdivision’s use of the CA Abatement Accounts Funds within one year of the request to meet and confer, unless the parties mutually agree in writing to extend the meet and confer time frame.
d) If the concern still cannot be resolved, the State may bring a motion or action in the court where the State has filed its Consent Judgment to resolve the concern or otherwise enforce the requirements of the Walmart Settlement Agreement or this CA Walmart Allocation Agreement. However, in no case shall any audit be conducted, or motion be brought, as to a specific expenditure of funds, more than five years after the date on which the expenditure of the funds was reported to DHCS, in accordance with this agreement.
e) Notwithstanding the foregoing, this Agreement does not limit the statutory or constitutional authority of any state or local agency or official to conduct audits, investigations, or other oversight activities, or to pursue administrative, civil, or criminal enforcement actions.

DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 6 C. CA Subdivision Fund
i. Fifteen percent of the total Settlement Fund payments will be allocated to the CA Subdivision Fund. All funds in the CA Subdivision Fund will be allocated among the Plaintiff Subdivisions that are Participating Subdivisions. The funds will be used, subject to any limits imposed by the Walmart Settlement Agreement and this CA Walmart Allocation Agreement, to fund future Opioid Remediation and reimburse past opioidrelated expenses, which may include fees and expenses related to litigation, and to pay the reasonable fees and expenses of the Special Master as set forth in Appendix 2.

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

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

Before seeking fees or litigation costs and expenses from a State Back-Stop Agreement, private DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 7 counsel representing Plaintiff Subdivisions must first seek contingency fees and costs from the Attorney Fee Fund or Cost Funds created under the Walmart Settlement Agreement. Further, private counsel may only seek reimbursement for litigation fees and costs that have not previously been reimbursed through prior settlements or judgments.

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

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

DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 9 The undersigned, Cypress city, ACKNOWLEDGES acceptance of this Proposed California StateSubdivision Agreement Regarding Distribution and Use of Settlement Funds – Walmart Settlement is a requirement to be an Initial Participating Subdivision in the Walmart Settlement and ACCEPTS this Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds – Walmart Settlement. EXECUTED on /date_1_walmart/.

Signature: /signer_1_teva_allergan/
Name: /name_1_teva_allergan/
Title: /title_1_teva_allergan/
Date: /date_1_walmart/
DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 APPENDIX 1
DISCLAIMER: The allocation percentages herein are estimates only and should not be relied on for decisions regarding legal rights, releases, waivers, or other decisions affecting current or potential legal claims. Percentages shown in the Plaintiff Subdivision Percentage column may change pursuant to Section 4.C. of the California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds—Walmart Settlement, whereas the percentages shown in the Abatement Percentage column should not change. Participating Subdivisions, underlying calculations, and the calculated allocation percentages are subject to change.

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

2. Cost Reimbursement to Plaintiff Subdivision
a) Purpose. Substantial resources have been expended to hold Opioid Defendants accountable for creating and profiting from the opioid crisis, and this effort has been a significant catalyst in creating National Opioid Settlements with various manufacturers, distributors, and chain pharmacies.
b) Claims Procedure.
i. If a Plaintiff Subdivision is eligible to seek reimbursement of Costs, in whole or in DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 1 7
part, from funds available under Section IX and Exhibit R of the Walmart Settlement Agreement, Section XIV and Exhibit R of the Teva Settlement Agreement, Section XIII and Exhibit R of the Allergan Settlement Agreement, Section X and Exhibit R of the CVS Settlement Agreement, Section IX and Exhibit R of the Walgreens Settlement Agreement, Section X or Exhibit R of the Distributor Settlement Agreement, or Section XI or Exhibit R of the Janssen Settlement Agreement, it must first make a timely application for reimbursement from such funds. To allow sufficient time for determination of those applications, no claim for Costs to the CA Subdivision Fund under this Agreement may be made before the First Claims Date.
ii. A Plaintiff Subdivision that wishes to be reimbursed from the CA Subdivision Fund must submit a claim to the Special Master no later than forty-five (45) days after the First Claims Date. The Special Master will then compile and redistribute the aggregated claim totals for each Plaintiff Subdivision via email to representatives of all the Plaintiff Subdivisions. A claim for attorney and staff time must list, for each attorney or staff member included in the claim, the following information: name, title, total hours claimed, hourly rate (including, if sought, benefits and share of overhead), and narrative summarizing the general nature of the work performed by the attorney or staff member. For reimbursement of “hard” costs, the subdivision may aggregate across a category (e.g., total for travel costs). It is the intention of the Plaintiff Subdivisions that submission of documents related to reimbursement of Costs does not waive any attorney-client privilege or exemptions to the California Public Records Act.
iii. The Special Master may request, at his or her sole option, additional documents or details to assist in the final award of Costs.
iv. The Special Master will review claims for reasonableness and will notify each Plaintiff Subdivision of the final determination of its claim, and will provide a list of all final awards to all Plaintiff Subdivisions by email or, upon request, via First Class U.S. Mail. Any Plaintiff Subdivision may ask the Special Master to reconsider any final award within twenty-one (21) days. The Special Master will make a final determination on any such reconsideration request within thirty (30) days of receipt.
v. Any decision of the Special Master is final and binding, and will be considered under the California Arbitration Act, Code of Civil Procedure section 1280 et seq. as a final arbitration award. Nothing in this agreement is intended to expand the scope of judicial review of the final award for errors of fact or law, and the Parties agree that they may only seek to vacate the award if clear and convincing evidence demonstrates one of the factors set forth in Code of Civil Procedure, section 1286.2, subdivision (a). Plaintiff Subdivisions will have fourteen (14) days after all final awards are made, together with any final determination of a request for DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 1 8
reconsideration, to seek review in the Superior Court of California, pursuant to Code of Civil Procedure, section 1285, where the State has filed its Consent Judgment. vi. The Special Master will prepare a report of Costs that includes his or her fees and expenses at least ninety (90) days before the Payment Date for each Annual Payment. The Special Master’s preparation of a report of Costs does not discharge a Plaintiff Subdivision’s reporting requirement under Section V(B)(2) of the Walmart Settlement Agreement.
vii. A member of the Plaintiff Subdivision Committee, which is a CA Participating Subdivision, will submit to the Settlement Fund Administrator and Walmart a report of the fees and expenses incurred by the Special Master pursuant to Section V(B)(2) of the Walmart Settlement Agreement.
c) Claims Priority and Limitation.
i. The Special Master will submit invoices for compensation of reasonable fees and expenses to the Plaintiff Subdivision Committee no later than ninety (90) days prior to the Payment Date for each Annual Payment. The Plaintiff Subdivision Committee will promptly review and, if reasonable, approve the Special Master’s invoice for compensation. The Plaintiff Subdivision Committee will submit approved invoices to the Settlement Fund Administrator for payment. The Special Master’s approved invoices have priority and will be paid first from the CA Subdivision Fund before any award of Costs, subject to the limitation in Section

DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 1 APPENDIX 3

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

The Attorney General is executing this agreement solely because the definition of “State BackStop Agreement” in Exhibit R of the Walmart Settlement Agreement requires such agreements to be between “a Settling State” and private counsel for a participating subdivision. Neither the California Attorney General nor the State of California have any obligations under this Backstop Agreement, and this Backstop Agreement does not require the payment of any state funds to [SUBDIVISION], [COUNSEL], or any other party.
[DATE] [SUBDIVISION SIGNATURE BLOCK]
[DATE] [COUNSEL SIGNATURE BLOCK]
[DATE] [ATTORNEY GENERAL SIGNATURE BLOCK]
DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 1 Proposed California State-Subdivision Agreement
Regarding Distribution and Use of
Settlement Funds – CVS Settlement

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

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

2. Definitions
a) CA Participating Subdivision means a Participating Subdivision that is also (a) a Plaintiff Subdivision and/or (b) a Primary Subdivision with a population equal to or greater than 10,000. For the avoidance of doubt, eligible CA Participating Subdivisions are those California subdivisions listed in Exhibit C (excluding Litigating Special Districts) and/or Exhibit I to the CVS Settlement Agreement. b) Allergan Settlement Agreement means the Allergan Settlement Agreement dated November 22, 2022, and any revision thereto.
c) Distributor Settlement Agreement means the Distributor Settlement Agreement dated July 21, 2021, and any revision thereto.
d) Janssen Settlement Agreement means the Janssen Settlement Agreement dated July 21, 2021, and any revision thereto.
e) Teva Settlement Agreement means the Teva Settlement Agreement dated November 22, 2022, and any revision thereto.
f) Walgreens Settlement Agreement means the Walgreens Settlement Agreement dated December 9, 2022, and any revision thereto.
g) Walmart Settlement Agreement means the Walmart Settlement Agreement dated November 14, 2022, and any revision thereto.
h) CA Litigating Special District means a Litigating Special District located in California. CA Litigating Special Districts include Downey Unified School District, Elk Grove Unified School District, Kern High School District, Montezuma Fire Protection District (located in Stockton, California), Santa Barbara San Luis Obispo Regional Health Authority, Inland Empire Health Plan, Health Plan of San Joaquin, San Leandro Unified School District, Pleasant Valley School District Board, and LA Care Health Plan.
i) Plaintiff Subdivision means a Subdivision located in California, other than a CA DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 2 Litigating Special District, that filed a lawsuit, on behalf of the Subdivision and/or through an official of the Subdivision on behalf of the People of the State of California, against one or more Opioid Defendants prior to October 1, 2020. j) Opioid Defendant means any defendant (including but not limited to Teva Pharmaceutical Industries Ltd., Allergan Finance, LLC, Allergan Limited, CVS Health Corporation, CVS Pharmacy, Inc., Walgreen Co., Walmart Inc., Johnson & Johnson, Janssen Pharmaceuticals, Inc., Purdue Pharma L.P., Cardinal Health, Inc., AmerisourceBergen Corporation, and McKesson Corporation) named in a lawsuit seeking damages, abatement, or other remedies related to or caused by the opioid public health crisis in any lawsuit brought by any state or local government on or before October 1, 2020.

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

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

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

DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 4 e) The State will receive the Local Allocation share of any payment to the Settlement Fund that is attributable to a county or city that is eligible to become a CA Participating Subdivision, but that has not, as of the date of that payment to the Settlement Fund, become a Participating Subdivision.
f) Funds received by a CA Participating Subdivision, and not expended or encumbered within five years of receipt and in accordance with the CVS Settlement Agreement and this CA CVS Allocation Agreement shall be transferred to the State; provided however, that CA Participating Subdivisions have seven years to expend or encumber CA Abatement Accounts Funds designated to support capital outlay projects before they must be transferred to the State. This provision shall not apply to the Cost Reimbursement Funds, which shall be controlled by Appendix 2.
ii. Use of CA Abatement Accounts Funds
a) The CA Abatement Accounts Funds will be used for future Opioid Remediation in one or more of the areas described in the List of Opioid Remediation Uses, which is Exhibit E to the CVS Settlement Agreement.
b) In addition to this requirement, no less than 50% of the funds received by a CA Participating Subdivision from the Abatement Accounts Fund in each calendar year will be used for one or more of the following High Impact Abatement Activities:
(1) the provision of matching funds or operating costs for substance use disorder facilities within the Behavioral Health Continuum Infrastructure Program; (2) creating new or expanded Substance Use Disorder (“SUD”) treatment infrastructure; (3) addressing the needs of communities of color and vulnerable populations (including sheltered and unsheltered homeless populations) that are disproportionately impacted by SUD;
(4) diversion of people with SUD from the justice system into treatment, including by providing training and resources to first and early responders (sworn and non-sworn) and implementing best practices for outreach, diversion and deflection, employability, restorative justice, and harm reduction; and/or (5) interventions to prevent drug addiction in vulnerable youth. c) The California Department of Health Care Services (“DHCS”) may add to this list (but not delete from it) by designating additional High Impact Abatement Activities. DHCS will make reasonable efforts to consult with stakeholders, including the CA Participating Subdivisions, before adding additional High Impact Abatement Activities to this list.
d) For the avoidance of doubt, and subject to the requirements of the CVS Settlement Agreement and applicable law, CA Participating Subdivisions may form agreements or
DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 5 ventures, or otherwise work in collaboration with, federal, state, local, tribal or private sector entities in pursuing Opioid Remediation activities funded from the CA Abatement Accounts Fund. Further, provided that all CA Abatement Accounts Funds are used for Opioid Remediation consistent with the CVS Settlement Agreement and this CA CVS Allocation Agreement, a county and any cities or towns within the county may agree to reallocate their respective shares of the CA Abatement Accounts Funds among themselves, provided that any direct distribution may only be to a CA Participating Subdivision and any CA Participating Subdivision must agree to their share being reallocated.
iii. CA Abatement Accounts Fund Oversight
a) Pursuant to Section 5 below, CA Participating Subdivisions receiving settlement funds must prepare and file reports annually regarding the use of those funds. DHCS may regularly review the reports prepared by CA Participating Subdivisions about the use of CA Abatement Accounts Funds for compliance with the CVS Settlement Agreement and this CA CVS Allocation Agreement.
b) If DHCS determines that a CA Participating Subdivision’s use of CA Abatement Accounts Funds is inconsistent with the CVS Settlement Agreement or this CA CVS Allocation Agreement, whether through review of reports or information from any other sources, DHCS shall send a request to meet and confer with the CA Participating Subdivision. The parties shall meet and confer in an effort to resolve the concern. c) If the parties are unable to reach a resolution, DHCS may conduct an audit of the Subdivision’s use of the CA Abatement Accounts Funds within one year of the request to meet and confer, unless the parties mutually agree in writing to extend the meet and confer time frame.
d) If the concern still cannot be resolved, the State may bring a motion or action in the court where the State has filed its Consent Judgment to resolve the concern or otherwise enforce the requirements of the CVS Settlement Agreement or this CA CVS Allocation Agreement. However, in no case shall any audit be conducted, or motion be brought, as to a specific expenditure of funds, more than five years after the date on which the expenditure of the funds was reported to DHCS, in accordance with this agreement. e) Notwithstanding the foregoing, this Agreement does not limit the statutory or constitutional authority of any state or local agency or official to conduct audits, investigations, or other oversight activities, or to pursue administrative, civil, or criminal enforcement actions.

DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 6 C. CA Subdivision Fund
i. Fifteen percent of the total Settlement Fund payments will be allocated to the CA Subdivision Fund. All funds in the CA Subdivision Fund will be allocated among the Plaintiff Subdivisions that are Initial Participating Subdivisions. The funds will be used, subject to any limits imposed by the CVS Settlement Agreement and this CA CVS Allocation Agreement, to fund future Opioid Remediation and reimburse past opioidrelated expenses, which may include fees and expenses related to litigation, and to pay the reasonable fees and expenses of the Special Master as set forth in Appendix 2.

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

A Plaintiff Subdivision may separately agree to use its share of the CA Subdivision Fund to pay for fees or costs incurred by its contingency-fee counsel (“State Back-Stop Agreement”), pursuant to Exhibit R, section I(Y), of the CVS Settlement Agreement and the MDL Fees Order, so long as such contingency fees do not exceed a total contingency fee of 15% of the total gross recovery of the Plaintiff Subdivision pursuant to the CVS Settlement, inclusive of contingency fees from the national Attorney Fee Fund and this State Back-Stop Agreement. Before seeking fees or litigation costs and expenses from a State Back-Stop Agreement, private counsel DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 7 representing Plaintiff Subdivisions must first seek contingency fees and costs from the Attorney Fee Fund or Cost Funds created under the CVS Settlement Agreement. Further, private counsel may only seek reimbursement for litigation fees and costs that have not previously been reimbursed through prior settlements or judgments.

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

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

DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 9 The undersigned, Cypress city, ACKNOWLEDGES acceptance of this Proposed California StateSubdivision Agreement Regarding Distribution and Use of Settlement Funds – CVS Settlement is a requirement to be an Initial Participating Subdivision in the CVS Settlement and ACCEPTS this Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds – CVS Settlement. EXECUTED on /date_1_cvs/.

Signature: /signer_1_teva_allergan/
Name: /name_1_teva_allergan/
Title: /title_1_teva_allergan/
Date: /date_1_cvs/
DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 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.

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

2. Cost Reimbursement to Plaintiff Subdivision
a) Purpose. Substantial resources have been expended to hold Opioid Defendants accountable for creating and profiting from the opioid crisis, and this effort has been a significant catalyst in creating National Opioid Settlements with various manufacturers, distributors, and chain pharmacies.
b) Claims Procedure.
i. If a Plaintiff Subdivision is eligible to seek reimbursement of Costs, in whole or in part, from funds available under Section X and Exhibit R of the CVS Settlement DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 1 7
Agreement, Section XIV and Exhibit R of the Teva Settlement Agreement, Section XIII and Exhibit R of the Allergan Settlement Agreement, Section IX and Exhibit R of the Walgreens Settlement Agreement, Section IX and Exhibit R of the Walmart Settlement Agreement, Section X or Exhibit R of the Distributor Settlement Agreement, or Section XI or Exhibit R of the Janssen Settlement Agreement, it must first make a timely application for reimbursement from such funds. To allow sufficient time for determination of those applications, no claim for Costs to the CA Subdivision Fund under this Agreement may be made before the First Claims Date. ii. A Plaintiff Subdivision that wishes to be reimbursed from the CA Subdivision Fund must submit a claim to the Special Master no later than forty-five (45) days after the First Claims Date. The Special Master will then compile and redistribute the aggregated claim totals for each Plaintiff Subdivision via email to representatives of all the Plaintiff Subdivisions. A claim for attorney and staff time must list, for each attorney or staff member included in the claim, the following information: name, title, total hours claimed, hourly rate (including, if sought, benefits and share of overhead), and narrative summarizing the general nature of the work performed by the attorney or staff member. For reimbursement of “hard” costs, the subdivision may aggregate across a category (e.g., total for travel costs). It is the intention of the Plaintiff Subdivisions that submission of documents related to reimbursement of Costs does not waive any attorney-client privilege or exemptions to the California Public Records Act.
iii. The Special Master may request, at his or her sole option, additional documents or details to assist in the final award of Costs.
iv. The Special Master will review claims for reasonableness and will notify each Plaintiff Subdivision of the final determination of its claim, and will provide a list of all final awards to all Plaintiff Subdivisions by email or, upon request, via First Class U.S. Mail. Any Plaintiff Subdivision may ask the Special Master to reconsider any final award within twenty-one (21) days. The Special Master will make a final determination on any such reconsideration request within thirty (30) days of receipt.
v. Any decision of the Special Master is final and binding, and will be considered under the California Arbitration Act, Code of Civil Procedure section 1280 et seq. as a final arbitration award. Nothing in this agreement is intended to expand the scope of judicial review of the final award for errors of fact or law, and the Parties agree that they may only seek to vacate the award if clear and convincing evidence demonstrates one of the factors set forth in Code of Civil Procedure, section 1286.2, subdivision (a). Plaintiff Subdivisions will have fourteen (14) days after all final awards are made, together with any final determination of a request for DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 1 8
reconsideration, to seek review in the Superior Court of California, pursuant to Code of Civil Procedure, section 1285, where the State has filed its Consent Judgment. vi. The Special Master will prepare a report of Costs that includes his or her fees and expenses at least ninety (90) days before the Payment Date for each Annual Payment. The Special Master’s preparation of a report of Costs does not discharge a Plaintiff Subdivision’s reporting requirement under Section V(B)(2) of the CVS Settlement Agreement.
vii. A member of the Plaintiff Subdivision Committee, which is a CA Participating Subdivision, will submit to the Settlement Fund Administrator and CVS a report of the fees and expenses incurred by the Special Master pursuant to Section V(B)(2) of the CVS Settlement Agreement.
c) Claims Priority and Limitation.
i. The Special Master will submit invoices for compensation of reasonable fees and expenses to the Plaintiff Subdivision Committee no later than ninety (90) days prior to the Payment Date for each Annual Payment. The Plaintiff Subdivision Committee will promptly review and, if reasonable, approve the Special Master’s invoice for compensation. The Plaintiff Subdivision Committee will submit approved invoices to the Settlement Fund Administrator for payment. The Special Master’s approved invoices have priority and will be paid first from the CA Subdivision Fund before any award of Costs, subject to the limitation in Section

DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 1 APPENDIX 3

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

The Attorney General is executing this agreement solely because the definition of “State BackStop Agreement” in Exhibit R of the CVS Settlement Agreement requires such agreements to be between “a Settling State” and private counsel for a participating subdivision. Neither the California Attorney General nor the State of California have any obligations under this Backstop Agreement, and this Backstop Agreement does not require the payment of any state funds to [SUBDIVISION], [COUNSEL], or any other party.
[DATE] [SUBDIVISION SIGNATURE BLOCK]
[DATE] [COUNSEL SIGNATURE BLOCK]
[DATE] [ATTORNEY GENERAL SIGNATURE BLOCK]
DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921

OFFICE OF ATTORNEY GENERAL ROB BONTA
JANUARY 27, 2023
PAGE 3
SO AGREED BY AND ON BEHALF OF THE STATE OF CALFORNIA:

N e
Title: t Attorney General
Date:
8524664.1
1/30/2023
DocuSign Envelope ID: 7CE596A8-6AA0-4755-BA05-AA940FDE9921 CITY OF CYPRESS
CITY COUNCIL REPORT
City Council Regular 8.

FROM: Peter Grant, City Manager
DATE: 04/10/2023
SUBJECT: Approve an Agreement for Property Management Services for 5121 Myra Avenue

RECOMMENDATION

1. Approve an agreement with PMI Patron Management for property management services at 5121 Myra Avenue for an amount not to exceed $25,000; and

2. Authorize the City Manager to finalize and execute the agreement.

DISCUSSION
The City recently acquired the single family home (5121 Myra Avenue) adjacent to the Myra Avenue Stormwater Pump Station No. 1 to facilitate the pump station's replacement in FY 2025-26. The former owner of 5121 Myra Avenue relocated out of state and the City purchased the property for its appraised value, without the use of eminent domain. It is recommended the City rent the home until construction begins in a few years.

A Request for Proposals for property management services was released in March. The City received five proposals and PMI Patron Management (PMI) is recommended. Founded in 2018, PMI manages over 150 single-family homes and its employees have decades of experience in the Cypress area and have been very involved in the community. The three-year agreement includes a City option for two one-year extensions. PMI will receive an eight percent property management fee and manage all facets of renting the home (marketing, screening and selecting tenants, collecting rent, and maintenance). It is anticipated that the home will generate approximate $37,000 a year in net revenue to the City, with PMI earning approximately $3,200 annually for property management.

BUDGET IMPACT
Rental income, estimated to be $37,000 annually, will be recorded in the Capital Improvement Projects Fund and will be available for future capital projects.

LEGAL REVIEW
The City Attorney will approve the agreement as to form.

APPROVED BY: Peter Grant, City Manager
Attachments
PMI Patron Property Management Proposal
Robert W Sittman III, Owner/Operator
Patron Property Management, Inc.

Dba: PMI Patron
3020 Old ranch Pkwy Suite 300 Seal Beach, CA 90740
March 24, 2023
Jason Machado, Senior Management Analyst
City of Cypress, Finance Department
5275 Orange Avenue Cypress CA 90630
Dear Jason Machado,
PMI Patron is pleased to submit the proposal to offer property management services for the property located at 5121 Myra Avenue, Cypress, CA 90630. In the following pages you will find a detailed description of the services and philosophy that makes. PMI Patron the premier property management company in Orange County specializing in managing single-family homes.

PMI Patron is a full service property management company with a team of professionals who have the expertise to provide you with the highest level of service and care to manage your property. We specialize in the following areas.

Property Marketing: We work to quickly find the right tenant for your home and use our proven marketing methods to attract high-quality tenants.

Tenant Screening: Every application undergoes a consistent and fair yet careful screening with background and financial checks designed to keep your interests protected. PMI Patron always follows the exact screening procedures to all potential applicants according to federal/state/local Fair Housing laws. PMI has never been found in violation or been accused of a fair housing violation.

Rent Collection and Payment Distribution. Getting your rent on time shouldn’t be a guessing game. We handle all billing and get your money to you on time. Our “On time Payment Guarantee” is that you will receive your payment distribution electronically within 10 business days or that months management fee is free.

Property Maintenance: We know how to keep your property in optimal condition. We handle all maintenance and coordinate repairs for you. We will not perform any maintenance issue costing over $500 without your prior approval.

Financial Reporting: We provide full visibility and monthly reports for your property. Access your account any time through the 24/7 Online Owner Portal. “Our accurate Accounting Guarantee” is that we promise to accurately account for your money each month or else that months management fee is free.

Property Inspections: Our regular in-person inspections allow us to identify potential problems in advance and keep your home healthy. Your property will receive a minimum of one full inspection per year with a detailed inspection report with an option to receive additional inspections throughout the year at your request for an extra cost of $150 per inspection.

Legal Compliance: We monitor laws and insurance regulations that impact your home and work to ensure that your property is legally compliant. PMI Patron has never been convicted or even accused of breaking any legal regulation.

Sincerely,
Robert Sittman
About PMI Patron
PMI Patron is designed with passive income in mind, giving you a stress-free experience knowing that your property will be profitable and cared for. PMI Patron offers the highest quality of services available and is the premier Property Management company in North Orange County.

As a high school student, Rob Sittman, owner of PMI Patron, remembered watching his parents manage their 12 rental properties while traveling on a cruise ship in the Caribbean. His parents were juggling rent collection, turnover maintenance, and a vacancy all while on vacation. Even while not traveling, they had jobs, a busy family life, and volunteered within the community. Despite all of this, they continued to manage their own rental properties without the help of a professional Property Manager.

The reason behind creating PMI Patron was to offer property owners the experience of earning passive income without having to deal with the hassle and hands-on experience of being a landlord. Since founding PMI Patron in 2018, the company has grown to manage over 150 single-family homes. The vision of PMI Patron is to manage over 1,000 single-family homes, 10,000 HOA units, and 100 Vacation rentals by the end of 2030.

Rob Sittman holds the prestigious Residential Management Professional (RMP®) designation from NARPM which sets him apart in an elite group of only 500 other property managers in the nation and only 3 in Orange County that hold this designation. This designation demonstrates a commitment to his business, career, along with a dedication to bettering the greater industry in general. Rob is also the Past President of the California NARPM chapter representing thousands of California Property Managers.

PMI Patron is part of a larger franchise that has been perfecting and changing the property management industry for over 20 years. The experience PMI Patron has gained worldwide… truly reflects within their service offerings on a local level.

The key to the success of PMI Patron is not only providing prompt, friendly, and professional services to property owners and their tenants but also understanding that property owners expect their property manager to be available and easily accessible when there is a problem or question. PMI Patron will increase the value of your real estate over time, maximize income, and protect against risk.

Our Team
Our Team
Our Team
Property Analysis:

Proposed Monthly Rent: $3,300 - $3,700
References:

Laura Oaks - Phone number (714) 264-3099
Properties:
* 3515 W Greentree Cir Unit D Anaheim CA 92804
* 6445 San Marcos Way Buena Park CA 90620
Manny and Lalaine Vilafuerte - Phone#: (714) 496-7581
Properties:
* 747 N Philadelphia St Unit A, B and C Anaheim CA 92805 * 1412 Naples Pl Fullerton CA 92833
Rick Desai - Phone#: (562) 972-0755
Properties:
* 22311 Arline Ave - (Downstairs North Unit) Hawaiian Gardens, CA 90716 * 22315 Arline Ave - (Downstairs South Unit) Hawaiian Gardens, CA 90716 * 22311 Arline Ave. - (Upstairs North Unit) Hawaiian Gardens, CA 90716 * 22315 1/2 Arline Ave (Upstairs South Unit) Hawaiian Gardens, CA 90716 Matt Deller - Phone#: (909) 636-9077
Properties:
* 8465 E Cody Way Anaheim CA 92808-
* 13374 Crystal Springs Dr Corona CA 92883
* 2874 Echo Springs Dr Corona CA 92883
* 1881 Mitchell Ave Unit 5 Tustin CA 92780
* 7854 E Hampshire Rd Orange CA 92867
PMI Patron Management Snapshot:

PMI Patron currently manages 152 single family properties in Orange, Los Angeles and Riverside counties. Locally we manage properties in Cypress - 24, Buena Park - 11, Long Beach - 16, Anaheim - 12, Hawaiian Gardens - 5, La Palma - 1, Garden Grove - 4, Seal Beach - 2, and Huntington Beach - 1.

PMI Patron Pricing:
● Monthly Management Fee 8% of Monthly Rent
● Leasing Placement Fee $300
● Account Set-up Included
● Year-End Accounting Included
IRS Filing
● Video Walk-thru Tour Included
● Comprehensive Included
136 Point Inspection
● Lease Renewal Service Included
● Rent Increase Service Included
PMI Patron Eviction Protection Guarantee:

PMI Patron is so confident in our professional ability to screen and place a highly qualified applicant that we guarantee the following:
1) Eviction Protection Lawyers Fees: PMI Patron will pay the first $2,000 in lawyers fees should there be an eviction due to non-payment of rent.
2) Property Damage Assurance: PMI Patron will pay the first $1,500 in property damage should the tenant damage the
property during an eviction due to non-payment of rent. 3) Rent Loss Protection: PMI Patron will pay the first $1,500 in property damage should the tenant be evicted due to
non-payment of rent.

CONTACT INFORMATION:
3020 Old Ranch Pkwy Suite 300
Seal Beach CA 90740
Rich Fieger
General Manager
562.318.4399 Direct
[email protected]
pmipatron.com
CITY OF CYPRESS
CITY COUNCIL REPORT
City Council Regular 9.

FROM: Douglas Dancs, Director of Public Works
DATE: 04/10/2023
SUBJECT: Approve a Contract Amendment for Tree Maintenance Services

RECOMMENDATION
Approve a $36,800 contract amendment to the agreement with Great Scott Tree Services, Inc. for on-call tree maintenance services.

DISCUSSION
As part of the mid-year budget update, the City Council approved an increase to on-call tree trimming services. Under normal circumstances, Public Works contracts out the majority of tree trimming services, but handles unscheduled tree trimming with Maintenance division staff. With the replacement of the City’s bucket truck delayed because of scarcity and cost, Public Works cannot perform unscheduled tree trimming and the recommended contract amendment will authorize Great Scott Tree Services to perform necessary unscheduled tree trimming through June 30, 2023.

BUDGET IMPACT
Sufficient amounts are available in the General Fund budget for required on-call tree maintenance services through the end of the fiscal year.

LEGAL REVIEW
The City Attorney has approved the contract amendment as to form.

APPROVED BY: Peter Grant, City Manager
Attachments
Contract Amendment
- 1 -

FIRST AMENDMENT TO AGREEMENT FOR CONTRACT SERVICES

FOR CITYWIDE TREE MAINTENANCE
This FIRST AMENDMENT to GREAT SCOTT TREE SERVICES FOR
CITYWIDE TREE MAINTENANCE AGREEMENT is entered into effective the 11th day of April, 2023, (“First Amendment”) by and between the CITY OF CYPRESS (City), a charter city and California municipal corporation (“City”) and GREAT SCOTT TREE SERVICES, INC., a California corporation, (“Contractor”) (collectively, the “Parties”).

RECITALS
A. WHEREAS, on the 26th day of June, 2017, City and Contractor entered into that certain “CITYWIDE TREE MAINTENANCE SERVICES AGREEMENT” (“the Agreement”) in which Contractor agreed to perform certain services for City:

B. WHEREAS, the parties desire to add on-call tree maintenance services to the Agreement by this First Amendment and increase the Contract Sum to account for such additional services.

NOW, THEREFORE, for and in consideration of the mutual covenants and conditions contained herein, the parties agree as follows:

AGREEMENT
Section 2. Section 2.1. Contract Sum, of the Agreement is hereby amended, increasing the Contract Sum by $36,800.00, to read, in its entirety, as follows:
"For the services rendered pursuant to this Agreement, Contractor shall be compensated in accordance with the "Schedule of Compensation" attached hereto as Exhibit "C" and incorporated herein by this reference, but not exceeding the maximum contract amount of Two Hundred Eighty Thousand Three Hundred and 00/100 Dollars ($280,300.00) ("Contract Sum")."
Exhibit C. Exhibit C of the Agreement is hereby replaced in its entirety with the attached, revised Exhibit C.

IN WITNESS WHEREOF, the parties have executed and entered into this First Amendment and agree to be bound by the terms and a conditions of the same. [SIGNATURES ON FOLLOWING PAGE]

EXHIBIT “C”

SCHEDULE OF COMPENSATION
I. Section 2.1 shall be amended to read as follows:
“Contract Sum. For services rendered pursuant to this Amendment, the Contractor shall be compensated in accordance with the “Schedule of Compensation” attached hereto as Exhibit “C” and incorporated herein by this reference. The City reserves the right to add or delete work in the City’s sole discretion to best provide the service.”
II. Compensation from April 11, 2023 through June 30, 2023 reads as follows:

Current Contract Total $243,500.00
Additional Tree Maintenance
Services: April 11, 2023 through
June 30, 2023. $36,800.00
Amended Contract Total $280,300.00
CITY OF CYPRESS
CITY COUNCIL REPORT
City Council Regular 10.

FROM: Alisha Farnell, City Clerk
DATE: 04/10/2023
SUBJECT: Second Reading of Ordinance Amending the Municipal Code to Incorporate City Council Approved Changes to Agenda Structure

RECOMMENDATION
Approve the second reading and adopt an Ordinance, by title only and waive further reading, amending Sections 2-1 and 2-2, and subsections thereunder, of the Municipal Code relating to the conduct of City Council meetings.

SUMMARY
On March 27, the City Council approved the first reading of an Ordinance amending Sections 2-1 and 2-2, and subsections thereunder, of the Municipal Code relating to the conduct of City Council meetings. The Ordinance incorporates changes to the order of business at City Council meetings as approved by the City Council at their March 13 regular meeting.

Additionally, the Ordinance repeals and replaces Ordinance No. 1193, which previously updated the order of business, to incorporate necessary codification corrections to remove inconsistencies between Ordinance No. 1193 and Municipal Code Sections 2-1 and 2-2, and subsections thereunder.

It is recommended the City Council approve the second reading and adopt the Ordinance.

The Ordinance will become effective May 10, 2023.

BUDGET IMPACT
None.

LEGAL REVIEW
Ordinance was drafted and approved by the City Attorney.

APPROVED BY: Peter Grant, City Manager
Attachments
Ordinance
01004.0001/860803.1 1
ORDINANCE NO.

AN ORDINANCE OF THE CITY OF CYPRESS, CALIFORNIA REPEALING AND REPLACING ORDINANCE NO. 1193 AND SECTIONS 2-1 AND 2-2 OF

THE CYPRESS MUNICIPAL CODE RELATING TO THE CONDUCT OF

CITY COUNCIL MEETINGS
WHEREAS, the City Council of the City of Cypress is authorized to establish rules of conduct for its proceedings pursuant to Government Code section 36813; and WHEREAS, on March 14, 2022, the City Council adopted Ordinance No. 1193 updating the rules of conduct and decorum, as well as the order of business of City Council meetings; and WHEREAS, the publishing company for the Cypress Municipal Code noted some inconsistencies between Ordinance No. 1193 and Cypress Municipal Code Section 2-2 and subsections thereunder; and
WHEREAS, by adoption of this Ordinance, the City Council wishes to amend the order of business and make certain corrections to remove inconsistencies between Ordinance No. 1193 and Cypress Municipal Code Sections 2-1 and 2-2 and subsections thereunder.

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

Section 1. Repeal and Replacement of Ordinance No. 1193. The City Council hereby repeals Ordinance No. 1193 in its entirety and replaces it with this Ordinance.

Section 2. Amendments to Chapter 2. Sections 2-1 and 2-2, including all subsections thereunder, of the Cypress Municipal Code shall be amended in their entirety to read as follows:
2-1. City council meetings—Time of regular meetings.

The city council shall hold regular meetings at 5:30 p.m., on the second and fourth Mondays of each month. Said meetings shall be adjourned no later than 11:30 p.m., unless the majority of the council waives said adjournment time. 2-2. Same—Place.

Meetings of the city council shall be held at 5275 Orange Avenue, Cypress, or at such other locations as the city council may specify. 2-2.0. Definitions pertaining to open meeting compliance.

For the purposes of this chapter, the definitions of “legislative body,” “regular meeting,” and “special meeting” as set forth in Section 54950 et seq. of the 01004.0001/860803.1 2
Government Code of the State of California shall apply. 2-2.1. Special meetings, call.

A special meeting may be called at any time by the presiding officer of the legislative body, or by a majority of the members of the legislative body, by delivering written notice to each member of the legislative body, posting on the city’s website, and to each local newspaper of general circulation, radio, or television station requesting notice in writing. The notice shall be delivered personally or by any other means and shall be received at least twenty-four (24) hours before the time of the meeting as specified in the notice. The call and notice shall specify the time and place of the special meeting and the business to be transacted or discussed. No other business shall be considered at these meetings by the legislative body. The written notice may be dispensed with as to any member who at or prior to the time of the meeting convenes files with the clerk or secretary of the legislative body a written waiver of notice. The waiver may be given in writing by electronic communication. The written notice may be dispensed with as to any member who is actually present at the meeting at the time it convenes. Notice shall be required pursuant to this section regardless of whether any action is taken at the special meeting. The call and notice shall be posted at least twenty-four (24) hours prior to the special meeting in a location that is freely accessible to members of the public.
2-2.2. Same—Adjourned meetings.

Any regular or adjourned regular or special meeting may be adjourned to a time certain but not beyond the next regular meeting date. 2-2.3. Same—Notice.

Notice shall be given of all meetings as required by state law. 2-2.4. Same - Agenda.
(a) The city clerk shall prepare an agenda of the council proceedings, which agenda shall be prepared in accordance with the order of business, and shall furnish each member of the council, the mayor, the city manager and city attorney with a copy of the same not less than seventy-two (72) hours prior to each regular meeting and not less than twenty-four (24) hours prior to each special meeting. Any council member wishing to add an item on the agenda shall adhere to the city council’s adopted process for council members adding items to the agenda, as may be amended by the council from time-to-time. Matters that are not listed on the agenda shall not be presented to the council, except matters of an urgent or 01004.0001/860803.1 3
emergency nature presented by the city manager as provided by Government Code Section 54954.2.
(b) In the case of an emergency situation involving matters upon which prompt action is necessary due to the disruption or threatened disruption of public facilities, a legislative body, including the city council, may hold an emergency meeting without complying with either the twenty-four-hour notice requirement or the twenty-four-hour posting requirement of Government Code Section 54956 or both the notice and posting requirement. Meetings held in such emergency situations shall comply with Government Code Section 54956.5. (c) The council may take action on any item of business not appearing on the agenda pursuant to the provisions of Government Code 54954.2. 2-2.4.1. Enforcement.

The provisions of this chapter shall be enforceable pursuant to the provisions of Government Code Sections 54960 through 54960.5, as said sections may be amended.
2-2.5. Same – Presiding Officer.

The mayor shall preside at the meetings of the council and shall preserve strict order and decorum at all regular and special meetings of the council. The mayor shall state every question coming before the council, announce the decision of the council on all subjects, except where the city clerk makes such announcement, and decide all questions of order subject however to an appeal to the council in which event a majority vote of the council shall govern and conclusively determine such question of order.
2-2.6. City council meetings – Call to order; temporary chairperson.

The mayor, or in his/her absence the mayor pro tempore, shall take the chair precisely at the hour appointed for the meeting, and shall immediately call the council to order. In the absence of the mayor or mayor pro tempore, the city clerk shall call the council meeting to order, whereupon a temporary chair shall be elected by the council members present. Upon the arrival of the mayor or mayor pro tempore, the temporary chair shall immediately relinquish the chair upon the conclusion of the business immediately before the council. 2-2.7. Same – Roll call.

Before proceeding with the business of the council, the city clerk shall call the roll of the council members and the names of those present shall be entered in the minutes.
01004.0001/860803.1 4
2-2.8. Same – Quorum.

A majority of the council constitutes a quorum for the transaction of business, but a lesser number may adjourn from time to time and may cancel the meeting by a notice. The city clerk may also notice the adjournment or cancellation of a meeting for lack of a quorum.
2-2.9. Same – Order of business.

All meetings of the council shall be open to the public. Promptly at the hour set by law on the day of each regular meeting, the council members, city manager, city clerk and the city attorney shall take their assigned stations in the council chambers and the business of the council shall be taken up for consideration and disposition in the following order, unless otherwise changed by resolution of the council.

1. Call to order

2. Roll call

3. Oral communications on closed session/workshop items

4. Closed session; workshop

5. Presentations

6. Oral communications on agenda items

7. Consent calendar; minutes

8. Public hearings

9. New business

10. Items removed from consent calendar

11. Continued items

12. Items from council members

13. Oral communications on items not on the agenda

14. Council member reports from city-affiliated boards and committees, and remarks

15. Council member items for future consideration

16. City manager reports

17. Adjournment
2-2.10. Same—Approved minutes as official record of proceedings. (a) Approval of minutes. Unless the reading of the minutes of a council meeting is requested by council member, such minutes may be approved without reading if the city clerk has previously furnished each member with a copy thereof.

Minutes shall be approved by voice or roll call vote.
(b) Designated as official record. The approved written minutes constitute the official record of council proceedings and actions and are superior to any other 01004.0001/860803.1 5
record, recordation, document, transcript, audio recording, video recording, or other memorial or writing of said proceedings and action. Any other recordings and records of council proceedings which may be deemed duplicate records shall be kept only as required by Government Code Section 34090.7 as it presently exists and as it may from time to time be amended. The council hereby authorizes the city clerk to store and destroy said duplicate records in accordance with said section of the Government Code.
(c) Subsections (a) and (b) shall apply to the minutes of the meetings of any city board, commission, committee, task force, or agency after the board, commission, committee, task force, or agency and the council have approved the same. The city clerk, and every board, commission, committee, task force, or agency secretary or clerk shall cause any recording made of the proceedings to assist in the preparation of the minutes to be destroyed in accordance with Government Code Section 34090.7.
(d) The provisions of this section shall apply to all minutes and recordings which have been approved by the body conducting the meeting and by the council. 2-2.11. Council meetings—Rules of debate.
(a) Presiding officer may debate and vote. The mayor, or in his/her absence, such other council member as may be presiding may move, second and debate from the chair, subject only to such limitations of debate per these rules imposed on all council members and shall not be deprived of any of the rights and privileges of a council member by reason of his/her acting as the presiding officer. (b) Getting the floor. Every council member desiring to speak shall request to be recognized by the presiding officer, only speak after being so recognized, and confine him/herself to the question under debate.
(c) Interruptions. A council member, once recognized, shall not be interrupted when speaking unless it be to call him/her to order, or as herein otherwise provided. If a council member, while speaking, is called to order, he/she shall cease speaking until the question of order is determined.
(d) Remarks of council member - When entered in minutes. Any council member may request, through the presiding officer, the privilege of having a written abstract of his/her statement on any subject under consideration by the city council entered in the minutes. If the city council consents thereto, such statement shall be entered in the minutes.
(e) Motion to reconsider. A motion to reconsider any action taken by the council may be made only on the day such action was taken. It may be made either immediately during the same session or at a recessed or adjourned session thereof. 01004.0001/860803.1 6
Such motion must be made by one on the prevailing side, but may be seconded by any council member and may be made at any time and have precedence over all other motions or, while a council member has the floor, it shall be debatable. (f) Rules of order. Except as otherwise provided in this chapter “Robert’s Rules of Order”, as revised and updated from time-to-time, shall govern the conduct of the meetings of the council.
2-2.12. Same—Addressing City Council—Generally.
(a) Opportunity to address legislative body. Every agenda for regular meetings of any legislative body, including the city council, of the City of Cypress shall provide an opportunity for members of the public to directly address the legislative body on items of interest to the public that are within the subject matter jurisdiction of the legislative body, provided that no action shall be taken on any item not appearing on the agenda unless the action is otherwise authorized by Government Code Section 54954.(b). The legislative body may adopt reasonable regulations to ensure that the intent of this section is carried out, including, but not limited to, regulations limiting the total amount of time allocated for public testimony on particular issues and for each individual speaker. The rules pertaining to addressing the council shall also apply equally to all city board, commission, committee, task force, or agency after the board, commission, committee, task force, or agency created by the council.
(b) Oral communications. Each member of the public addressing the council shall step up to the microphone in front of the podium, give his/her name and address in an audible tone of voice for the record and, unless further time is granted by the council, shall limit his/her address to the time allotted on the agenda for public comments. Members of the public may address the council by oral communications on any matter over which the council has control; provided, however, that preference shall be given to those persons who may have notified the city clerk in advance of their desire to speak in order that the same may appear on the agenda of the city council. All remarks shall be addressed to the legislative body as a body and not to an individual council member. No person, other than the council and the person having the floor shall be permitted to participate in the discussion, without the permission of the presiding officer. No member of the public may ask a direct question shall to a council member except through the presiding officer. In discussion of any issue before the council, members of the public and of the council must confine themselves to the question before the council. (c) Spokesperson for group of persons. Whenever any group of persons wishes to address the council on the same subject matter, the presiding officer may request that a spokesperson be chosen by the group to address the council, and in case additional matters are to be presented at the time by any other member of said 01004.0001/860803.1 7
group, to limit the number of persons so addressing the council so as to avoid unnecessary repetition before the council.
(d) Written communications. Interested parties or their authorized representatives may address the council by written communications in regard to matters then under discussion.
(e) Public hearings and protests. Interested persons or their authorized representatives may address the council by reading of protests, petitions, or communications relating to zoning, sewer, and street proceedings, hearings on protests, appeals, and petitions, or similar matters in regard to matters then under consideration.
2-2.13. Same—Same—After motion made.

After a motion is made by the council, no person shall address the council without first securing the permission of the Presiding Officer. 2-2.14. Reserved.
2-2.15. Council meetings—Decorum.
(a) By council members.

1. Conduct. While the council is in session, the council members must preserve order and decorum, and a council member shall neither by conversation, by the utterance of loud, threatening, profane or abusive language, or by engaging in any other disorderly conduct at any council meeting, delay or interrupt the council proceedings. A council member’s persistence in discussing an agenda item or any other matter before the council after the matter has been called to a vote, shall constitute a violation of this subsection. Council members shall obey the orders of the council or the presiding officer. The following rules shall be obeyed:
i. Council members shall keep any remarks clear,
concise and on-topic.
ii. When there are differences of opinion, council
members shall focus on debating the facts of the situation and avoid personalities. Council members should seek to build on the ideas of others and look for common ground.
iii. Council members shall be prepared at council
meetings, including by reading their agendas with enough time to ask questions prior to the council meeting. Every effort will be made to 01004.0001/860803.1 8
ask questions before the council meeting so that the city manager or the city attorney, as applicable, has ample time to research the question before the council meeting.
iv. Council members shall base their decisions on the
merits and substance of the matter at hand, rather than on unrelated considerations.

2. Censure. A violation of these rules of decorum or the adopted civility, conduct and governance policy by a council member shall be subject to the below enforcement provisions. Any council member may make a motion for a vote to censure or for a vote for removal or ejection as set forth herein.
i. Resolution of censure. Any council member who
reasonably believes that another council member is violating these rules of decorum or the adopted civility, conduct and governance policy shall be allowed to request an agenda item be presented, in accordance with the procedures for requesting future agenda items, calling for staff to bring back a draft resolution of censure by identifying the council member, and that council member’s speech, actions or behavior, that he/she believes constitutes such violation.

Once approved to be presented to the council for consideration, the resolution of censure may be approved by a majority of the council and may contain the penalties described below. Upon such motion, all council members present shall immediately vote on the motion and state whether they agree that the identified speech, actions or behavior constitutes a violation and justifies a vote of censure. If a majority of the council members present a vote for censure, then that vote shall be duly noted by the city clerk and the subject of that vote shall have two (2) minutes to make a rebuttal stating why the vote should be overturned. After such rebuttal, any council member shall be entitled to make a motion to overturn the vote of censure. If such motion is approved by a majority vote of those council members present, then the city clerk shall remove such censure from the record. Motions to overturn a vote of censure may only be made at the meeting at which the vote of censure was made. This subsection contemplates no other administrative remedy to a vote of censure other than the two (2) minute rebuttal. If not so overturned, the resolution of censure shall be adopted.
ii. Fines for censure. Any council member who is
censured by the City Council may be subject to a one hundred dollar ($100.00) fine per censure. Such fine(s) shall be paid to the city clerk 01004.0001/860803.1 9
within thirty (30) days of the date imposed. Failure to pay such fine(s) within sixty (60) days shall give rise to a civil action by the city for collection, or shall be deducted or offset from the council member’s compensation or per diem entitlements.
iii. Revocation of special privileges. Any council
member who is censured by the council shall be subject to revocation of his/her committee assignments, regional boards and commissions, and community-generated board/committee appointments;
suspension of official travel, conference participation, access to a city credit card, council salary, stipends, and ceremonial titles. iv. Removal. Any council member who is censured by a
majority of the council during a council meeting, in addition to the attendant fines, shall also be subject to a vote, upon motion by any council member, by a majority of the council present, to remove such offender from the council meeting. If a majority of the council votes for removal, then the subject of that vote shall have two (2) minutes to make a rebuttal stating why the vote should be overturned. After such rebuttal any council member shall be entitled to make a motion to overturn the vote to remove. If such motion is approved by a majority vote of those council members present, then the city clerk shall remove such vote from the record. If the vote to remove is not overturned, then such vote shall remain part of the administrative record and resolution of censure. Motions to overturn a vote of removal may only be made at the meeting at which the vote of removal was made. If the offending council member does not leave voluntarily, the presiding officer may order any law enforcement officer who is on duty at the council meeting as sergeant at arms to remove the offender from the council chambers. It shall be the duty of any law enforcement officer who is serving as sergeant at arms at the council meeting to carry out all orders and instructions given by the presiding officer for the purpose of maintaining order and decorum, including the removal of disruptive council members and/or members of the public.
v. Resisting removal; penalty. Any council member or
member of the public who resists removal by the sergeant at arms shall be guilty of a misdemeanor.

3. Motion to enforce. If the presiding officer fails to enforce the rules set forth above, any council member may move to require the presiding officer to do so, and an affirmative vote of a majority of the council shall mandate such action. If the presiding officer fails to carry out the will of a 01004.0001/860803.1 10
majority of the council the majority may designate another council member to act as the presiding officer for the limited purpose of enforcing any provision of this subsection which it desires to enforce. (b) By other persons. Any person making personal, impertinent or slanderous remarks or who shall become boisterous while addressing the council shall be forthwith, by directive of the presiding officer, be barred from further audience at said meeting before the council unless permission to continue is granted by a majority vote of the council.
2-2.16. Same – Same – Enforcement.

The Chief of Police or such member or members of the Police Department as he/she may designate shall be Sergeant-at-Arms of the Council meetings. He/she shall carry out all orders and instructions given by the Presiding Officer for the purpose of maintaining order and decorum at the Council meeting. Upon instructions of the Presiding Officer, it shall be the duty of the Sergeant-at-Arms or designee to place any person who violates the order and decorum of the meeting under arrest, and cause him/her to be prosecuted under the provisions of this Code or state law.
2-2.17 Same—Entering protest of city council action in minutes.

Any member at his request shall have the right to have the reasons for his dissent from or protest against any action of the council entered on the minutes. 2-2.18. Same—Ordinances, resolutions, motions and contracts. (a) Preparation of ordinances. All ordinances shall be prepared by the city attorney. No ordinance shall be prepared for presentation to the council unless ordered by a majority vote of the council or requested in writing by any member of the council, the presiding officer or the city manager or prepared by the city attorney on his own initiative.
(b) Prior approval by administrative staff. All ordinances, resolutions and contract documents shall, before presentation to the council, have been approved as to form and legality by the city attorney or his authorized representative and shall have been examined and approved for the administration by the city manager or his authorized representative where there are substantive matters of administration involved.
(c) Introducing for passage or approval. Ordinances, resolutions and other matters or subjects requiring action by the council must be introduced and sponsored by a member of the council, except that the mayor, city manager or city attorney may present ordinances, resolutions and other matters of subjects to the council, and 01004.0001/860803.1 11
any councilman may assume sponsorship thereof by moving that such ordinances, resolutions, matters or subjects be adopted; otherwise, they shall not be considered. 2-2.19. Same—Voting—Roll call vote.

A roll call vote shall be taken upon the passage of all ordinances and resolutions and be entered upon the journal of the proceedings of the council. Upon request of any member, a roll call vote shall be taken and recorded on any vote.

Whenever a recorded or roll call vote of the council is in order, the city clerk shall call the names of the members in alphabetical order, except that the name of the presiding officer shall be called last.
2-2.20. Same—Same—Disqualification and abstention.

No city council member shall be permitted to disqualify him/herself if such disqualification results in a tied vote unless such disqualification shall have been approved by the city attorney or by vote of the remainder of the council. Unexcused disqualification and abstentions shall be counted by the city clerk as a vote in favor of the particular motion.
2-2.21. Same—Motion to adjourn.

A motion to adjourn shall always be in order and decided without debate. 2-2.22. Same—Code of ethics.

The following principles shall constitute the Cypress code of ethics, applicable to all council members. Council members, upon the adoption of this ordinance or upon entering office, shall sign a statement affirming they read and understood the code of ethics. In addition, this code of ethics shall be periodically reviewed and updated by the council.
(a) Act in the public interest. Recognizing that stewardship of the public interest must be their primary concern, council members will work for the common good of the community and not for any private or personal interest, and they will assure fair and equal treatment of all persons, claims and transactions coming before the council.
(b) Comply with the law. Council members shall comply with the laws of the nation, the State of California and the City of Cypress in the performance of their public duties. These laws include, but are not limited to: the United States and California Constitutions; the Charter; the Municipal Code; laws pertaining to conflicts of interest, election campaigns, financial disclosures, employer responsibilities, and open processes of government. Council members shall also comply with all applicable city policies and procedures. 01004.0001/860803.1 12
(c) Conduct of council members. The professional and personal conduct of council members must be above reproach and should avoid even the appearance of impropriety. Council members shall refrain from abusive conduct, personal charges or verbal attacks upon the character or motives of other council members, city staff or public.
(d) Respect for process. Council members shall perform their duties in accordance with the processes and rules of order established by the council governing the deliberation of public policy issues, meaningful involvement of the public, and implementation of policy decisions of the council by city staff. (e) Incompatible employment. No council member shall engage in or accept private employment, or render services for private interests, when such employment or service is incompatible with the proper discharge of his/her official duties or would tend to impair his/her independence of judgment or action in the performance of his/her official duties.
(f) Use of public property. No council member shall request or permit the use of city owned vehicles, equipment, materials or property for personal convenience or profit, except when such services are available to the public generally, and in the same manner as available to the public, or are provided as city policy for the use of such official in the conduct of official business. No official shall use the time of any city employee during working hours for personal purposes. (g) Contracts with city. Council members shall not have a financial interest in any business transaction, or contract with the city, or in the sale of real estate, materials, supplies or services to the city, except as permitted in the conflict of interest statutes of the state.
(h) Disclosure of interest in legislation. A council member who has a financial or other private interest in any legislation shall disclose on the records of the city council or other appropriate authority the nature and extent of such interest. (i) Conflict of interest. In order to assure their independence and impartiality on behalf of the common good, council members shall not use their official positions to influence government decisions in which they have a material financial interest. In accordance with the law, council members shall disclose investments, interests in real property, sources of income and gifts; and abstain from participating in deliberations and decision-making where conflicts, as determined under applicable laws, may exist. Council members should endeavor to consult with the city attorney before any council meeting to allow an evaluation by the city attorney of any potential conflict.
(j) Confidential information. Council members shall respect the 01004.0001/860803.1 13
confidentiality of information concerning the property, personnel or affairs of the city. They shall neither disclose confidential information without proper legal authorization, nor use such information to advance their personal, financial or other private interests.
(k) Advocacy. When representing the city while serving on or appearing before other government agencies or in court, council members shall represent the official policies or positions of the council to the best of their ability when designated as delegates for this purpose. When representing the city while serving on or appearing before other government agencies or in court, council members shall advocate policies that are in the best interest of the city over their own personal interests. When presenting their individual opinions and positions, council members shall explicitly state they do not represent the council or the city, and shall not allow the inference that they do.
(l) Positive workplace environment. Council members shall support positive and constructive workplace environment for city employees and for citizens and businesses dealing with the city. Council members shall recognize their special role in dealings with city employees not provide direction to city staff in violation of the city charter.
2-2.22.1. Vacancy on commissions upon filing of nomination papers for city council.

Whenever a member of the recreation and community services commission, senior citizens commission, traffic commission, or any other board or commission officially adopted by ordinance of the city council, as the case may be, is nominated for the office of city council by the filing of nomination papers designating such person as a candidate for the office of city council, the office of such person so nominated on the recreation and community services commission, senior citizens commission, traffic commission or any board or commission officially adopted by ordinance of the city council, as the case may be, shall be immediately and automatically rendered vacant and the city clerk shall immediately notify the city council of that fact, and the vacancy may be filled in the manner provided by law.
2-2.23. City council to serve as planning commission.

The city council hereby is designated as the planning commission of the City of Cypress. Except as otherwise provided for by resolution of the city council, any meeting of the city council shall also be deeded to be a meeting of the planning commission.

Section 3. Effective date. This Ordinance shall become effective thirty (30) days from its 01004.0001/860803.1 14
adoption.

Section 4. Certification. The Mayor shall sign and the City Clerk shall certify to the passage of this Ordinance and shall cause the same to be published and posted pursuant to the provisions of law in that regard.

PASSED, APPROVED, AND ADOPTED by the City Council of the City of Cypress at a regular meeting held on the ____ day of _________, 2023. _______________________________

MAYOR OF THE CITY OF CYPRESS
ATTEST:
__________________________________

CITY CLERK OF THE CITY OF CYPRESS
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
I, ALISHA FARNELL, City Clerk of the City of Cypress, DO HEREBY CERTIFY that the foregoing Ordinance was duly adopted at a regular meeting of said City Council held on the _____ day of ___________, 2023, by the following roll call vote:

AYES: COUNCIL MEMBERS:

NOES: COUNCIL MEMBERS:

ABSENT: COUNCIL MEMBERS:

ABSTAIN: COUNCIL MEMBERS:
_____________________________________

CITY CLERK OF THE CITY OF CYPRESS
CITY OF CYPRESS
CITY COUNCIL REPORT
City Council Regular 11.

FROM: Alisha Farnell, City Clerk
DATE: 04/10/2023
SUBJECT: Proclaim the Week of April 9-15, 2023 as National Public Safety Telecommunicators Week

RECOMMENDATION
Proclaim the week of April 9-15, 2023 as National Public Safety Telecommunicators Week.

DISCUSSION
Periodically, the City receives requests to publicly declare, recognize, observe, or promote awareness of a special event. As the City's past practice has established, routine and/or internal proclamation requests are placed on an agenda by the City Clerk for consideration by the City Council. Any new proclamation requests may be added to a future agenda in accordance with City Council policy.

The City Clerk received a routine request from West Cities Police Communications Center (West-Comm) requesting the City Council officially proclaim the week of April 9-15, 2023 as National Public Safety Telecommunicators Week. A proclamation has been prepared for the Mayor’s signature and is attached for consideration.

BUDGET IMPACT
None.

LEGAL REVIEW
None required.

APPROVED BY: Peter Grant, City Manager
Attachments
Proclamation

NATIONAL PUBLIC SAFETY TELECOMMUNICATORS WEEK
April 9 – 15, 2023
WHEREAS, emergencies can occur at any time that require police, fire or emergency medical services; and
WHEREAS, when an emergency occurs the prompt response of police officers, firefighters and paramedics is critical to the protection of life and preservation of property; and
WHEREAS, the safety of our police officers is dependent upon the quality and accuracy of information obtained from citizens who telephone the West Cities Police Communications Center; and
WHEREAS, Public Safety Dispatchers are the first and most critical contact our citizens have with emergency services; and
WHEREAS, Public Safety Dispatchers are the single vital link for our police officers and firefighters by monitoring their activities by radio, providing them information and insuring their safety; and
WHEREAS, the Dispatchers of the West Cities Police Communications have contributed substantially to the apprehension of criminals, suppression of fires and treatment of patients; and
WHEREAS, each Dispatcher has exhibited compassion, understanding and professionalism during the performance of their job in the past year.

NOW, THEREFORE, BE IT PROCLAIMED, that I, ANNE HERTZ-MALLARI, Mayor of the City of Cypress, along with my fellow Council Members, do hereby proclaim the week of April 9 - 15, 2023, as NATIONAL PUBLIC SAFETY TELECOMMUNICATORS WEEK, in honor of the men and women whose diligence and professionalism keep our City and citizens safe.
_________________________________

ANNE HERTZ-MALLARI

MAYOR OF THE CITY OF CYPRESS
Dated: April 10, 2023
CITY OF CYPRESS
CITY COUNCIL REPORT
City Council Regular 12.

FROM: Douglas Dancs, Director of Public Works
DATE: 04/10/2023
SUBJECT: Receive the Annual Solid Waste Franchise Consumer Price Index Rate Adjustment

RECOMMENDATION
Receive the annual solid waste franchise Consumer Price Index rate adjustment.

DISCUSSION
The solid waste franchise provides Valley Vista Services (VVS) an annual rate adjustment each July 1. The adjustment includes a weighted average of component indexes based on the published Consumer Price Index (CPI), the County gate fee for disposal, and the recycling and transfer facility gate fee for green waste recycling. The franchise includes CPI caps: 3.5 percent plus 85 percent of the CPI increase above the cap on regular disposal; and five percent plus 85 percent of the CPI increase above the cap on green waste recycling.

The resulting rate adjustment effective in July 2023 is 5.41 percent for residential accounts,

5.13 percent for commercial accounts, and 4.86 to 6.23 percent for all other services.

Beginning in July, residential rates will be $23.32 per month (a $1.20 increase). Commercial rates vary based on container size and frequency of service. For the average commercial customer with a three-cubic yard dumpster serviced once per week, the rate will be $162.04 per month (a $7.91 increase).

The franchise requires VVS to prepare and distribute a notice to customers within 60 days of the effective date of a rate change.

BUDGET IMPACT
None.

LEGAL REVIEW
None required.

APPROVED BY: Peter Grant, City Manager
Attachments
Updated VVS Rate Adjustment Letter
Residential Rate Adjustment Table
City of Cypress
Public Works Department
Memorandum
April 10, 2023
TO: Alisha Farnell, City Clerk
FROM: Douglas Dancs, P.E., Public Works Director
SUBJECT: Annual Solid Waste Franchise Consumer Price Index Rate Adjustment Public Works discovered a labeling error on the Valley Vista Services (VVS) annual rate adjustment indices. The prior year’s component indices were included. Public Works has confirmed that none of the rates are impacted. The corrected tables with highlighted corrections are attached.

CART SERVICE AB C
Row Rate Component Old Index New Index
Percent Change in
Index ((Column B/
Column A)-1)
1 Collection (1) 317.571 302.164 5.10%
2 Disposal (2) 38.34 36.09 6.23%
3 Green Waste (1) 317.57 302.16 5.10%
STEP TWO: Determine Weighted Change D E F
Row Rate Component
Maximum
Allowed
Percentage
Change
Component
Weighting
Total Weighted
Change (Column D
x E)
4 Collection Service (4) 4.86% 46.00% 2.24%
5 Disposal 6.23% 37.00% 2.31%
6 Green Waste (5) 5.08% 17.00% 0.86%

6.5 Discretionary Rate Adjustment 0.00%
7 Total Residential Cart Percentage Rate Adjustment 5.41% STEP THREE: Apply Percentage Change to Rates G H I J
Row Rate Category Current Rate
Total Weighted
Percentage
Change (from
Row 7, Column F)
Rate Increase or
Decrease (Column
G x Column H)
Adjusted Rate
(Column G +
Column I)
8 RESIDENTIAL CART SERVICE – One 96-gallons capacity each:
refuse, recycling, and green waste carts – weekly collection; billing provided by City billing Agent. $22.12 5.41% 1.20 23.32 9 Additional Refuse Cart(s) – Each. $6.53 5.41% 0.35 6.88 10 Additional Green Waste Cart(s) – Each after first 2. $32.66 5.41% 1.77 34.43 11 First Additional Green Waste Cart and All Additional Recycling Carts will be free of charge. n/c n/a n/a n/c
12 Cart Delivery (addition, removal or exchange) beyond two (2) per type per customer. $32.66 5.41% 1.77 34.43
13 Cart Replacement Due to Customer Damage. $65.31 5.41% 3.53 68.84 14 On-Call Bulky Waste / E-Waste (Up to two (2) items per year.) n/c n/a n/a n/c 15 On-Call Bulky Waste / E-Waste (beyond two (2) per year.) $65.31 5.41% 3.53 68.84 16 Annual Holiday Tree Collection n/c n/a n/a n/c
17 Cart Roll-Out Service – Incremental Charge (in addition to base charge in line 8). $32.66 5.41% 1.77 34.43
1 of 9

BIN/COMPACTOR SERVICE AB C
Row Rate Component Old Index New Index
Percent Change in
Index ((Column B/
Column A)-1)
1 Collection (1) 317.571 302.164 5.10%
2 Disposal (2) 38.34 36.09 6.23%
STEP TWO: Determine Weighted Change D E F
Row Rate Component
Maximum
Allowed
Percentage
Change Component Weighting
Total Weighted
Change (Column D x
E)
3 Collection (4) 4.86% 80.00% 3.89%
4 Disposal 6.23% 20.00% 1.25%

4.5 Discretionary Rate Adjustment 0.00%
5 Total Commercial Service Percentage Rate Adjustment 5.13% STEP THREE: Apply Percentage Change to Rates G H I J
Row Rate Category Current Rate
Total Weighted
Percentage Change
(from Row 5 or 1,
Column F)
Rate Increase or
Decrease (Column G
x Column H)
Adjusted Rate
(Column G +
Column I)
6 Refuse 2 Cu Yards 1 x WK 142.84 5.13% 7.33 150.17
7 Refuse 2 Cu Yards 2 X Wk 246.40 5.13% 12.65 259.05
8 Refuse 2 Cu Yards 3 X WK 329.03 5.13% 16.89 345.92
9 Refuse 2 Cu Yards 4 X Wk 411.66 5.13% 21.14 432.80
10 Refuse 2 Cu Yards 5 X Wk 491.64 5.13% 25.24 516.88
11 Refuse 2 Cu Yards 6 X Wk 572.60 5.13% 29.40 602.00
12 Refuse 3 Cu Yards 1 x Wk 154.13 5.13% 7.91 162.04
13 Refuse 3 Cu Yards 2 X Wk 255.02 5.13% 13.09 268.11
14 Refuse 3 Cu Yards 3 X Wk 348.90 5.13% 17.91 366.81
15 Refuse 3 Cu Yards 4 X Wk 438.57 5.13% 22.52 461.09
16 Refuse 3 Cu Yards 5 X Wk 525.45 5.13% 26.98 552.43
17 Refuse 3 Cu Yards 6 X Wk 616.53 5.13% 31.65 648.18
18 Refuse 4 Cu Yards 1 x Wk 211.20 5.13% 10.84 222.04
19 Refuse 4 Cu Yards 2 X Wk 344.71 5.13% 17.70 362.41
20 Refuse 4 Cu Yards 3 X Wk 418.78 5.13% 21.50 440.28
21 Refuse 4 Cu Yards 4 X Wk 491.44 5.13% 25.23 516.67
22 Refuse 4 Cu Yards 5 X Wk 565.48 5.13% 29.03 594.51
23 Refuse 4 Cu Yards 6 X Wk 660.92 5.13% 33.93 694.85
24 Extra Dump Refuse 56.05 5.13% 2.88 58.93
25 Locking Bin Fee 1x 21.16 5.13% 1.09 22.25
26 Locking Bin Fee 2x 28.21 5.13% 1.45 29.66
27 Locking Bin Fee 3x 35.26 5.13% 1.81 37.07
28 Locking Bin Fee 4x 42.31 5.13% 2.17 44.48
29 Locking Bin Fee 5x 49.37 5.13% 2.53 51.90
30 Locking Bin Fee 6x 56.42 5.13% 2.90 59.32
31 96 Gallon Cart 28.02 5.13% 1.44 29.46
32 96 Gallon Cart Extra Dump 14.01 5.13% 0.72 14.73
33 Compactor 2 Cu Yards 1 x WK 280.24 5.13% 14.39 294.63 34 Compactor 2 Cu Yards 2 X Wk 490.42 5.13% 25.18 515.60 35 Compactor 2 Cu Yards 3 X WK 658.56 5.13% 33.81 692.37 36 Compactor 2 Cu Yards 4 X Wk 840.72 5.13% 43.16 883.88 37 Compactor 2 Cu Yards 5 X Wk 980.84 5.13% 50.36 1,031.20 38 Compactor 2 Cu Yards 6 X Wk 1,120.96 5.13% 57.55 1,178.51 39 Compactor 3 Cu Yards 1 x Wk 308.26 5.13% 15.83 324.09 40 Compactor 3 Cu Yards 2 X Wk 504.43 5.13% 25.90 530.33 41 Compactor 3 Cu Yards 3 X Wk 700.60 5.13% 35.97 736.57 42 Compactor 3 Cu Yards 4 X Wk 875.75 5.13% 44.96 920.71 43 Compactor 3 Cu Yards 5 X Wk 1,050.90 5.13% 53.95 1,104.85 44 Compactor 3 Cu Yards 6 X Wk 1,233.05 5.13% 63.31 1,296.36 45 Compactor 4 Cu Yards 1 x Wk 336.29 5.13% 17.27 353.56 46 Compactor 4 Cu Yards 2 X Wk 518.44 5.13% 26.62 545.06 47 Compactor 4 Cu Yards 3 X Wk 742.63 5.13% 38.13 780.76 48 Compactor 4 Cu Yards 4 X Wk 910.78 5.13% 46.76 957.54 49 Compactor 4 Cu Yards 5 X Wk 1,120.96 5.13% 57.55 1,178.51 50 Compactor 4 Cu Yards 6 X Wk 1,345.15 5.13% 69.06 1,414.21 2 of 9

BIN SERVICE - RECYCLING AB C
Row Rate Component Old Index New Index
Percent Change in
Index ((Column B/
Column A)-1)
1 Collection (1) 317.571 302.164 5.10%
2 STEP TWO: Determine Weighted Change D E F
Row Rate Component
Maximum
Allowed
Percentage
Change Component Weighting
Total Weighted
Change (Column D x
E)
3 Collection (4) 4.86% 100.00% 4.86%
4 4.5 Discretionary Rate Stabilization 0.00%
5 Total Commercial Service Percentage Rate Adjustment 4.86% STEP THREE: Apply Percentage Change to Rates G H I J
Row Rate Category Current Rate
Total Weighted
Percentage Change
(from Row 5, Column
F)
Rate Increase or
Decrease (Column G
x Column H)
Adjusted Rate
(Column G +
Column I)
6 Recycling 3 Cu Yards 1 x Wk 115.60 N/A 75% of Bin Rate 121.53 7 Recycling 3 Cu Yards 2 X Wk 191.26 N/A 75% of Bin Rate 201.08 8 Recycling 3 Cu Yards 3 X Wk 261.67 N/A 75% of Bin Rate 275.11 9 Recycling 3 Cu Yards 4 X Wk 328.93 N/A 75% of Bin Rate 345.82 10 Recycling 3 Cu Yards 5 X Wk 394.09 N/A 75% of Bin Rate 414.32 11 Recycling 3 Cu Yards 6 X Wk 462.39 N/A 75% of Bin Rate 486.14 12 96 Gallon Cart Recylcing 21.02 N/A 75% of Bin Rate 22.10 13 Extra Dump Recycling - Bin 42.96 4.86% 2.09 45.05
14 Extra Dump Recycling - 96 Gal Cart 14.32 4.86% 0.70 15.02 3 of 9

BIN GREEN WASTE SERVICES AB C
Row Rate Component Old Index New Index
Percent Change in
Index ((Column B/
Column A)-1)
1 Collection (1) 317.571 302.164 5.10%
2 Disposal (1) 317.571 302.164 5.10%
STEP TWO: Determine Weighted Change D E F
Row Rate Component
Maximum
Allowed
Percentage
Change Component Weighting
Total Weighted
Change (Column D x
E)
3 Collection (4) 4.86% 80.00% 3.89%
4 Disposal (5) 5.08% 20.00% 1.02%

4.5 Discretionary Rate Adjustment 0.00%
5 Total Commercial Service Percentage Rate Adjustment 4.90% STEP THREE: Apply Percentage Change to Rates G H I J
Row Rate Category Current Rate
Total Weighted
Percentage Change
(from Row 5 or 1,
Column F)
Rate Increase or
Decrease (Column G
x Column H)
Adjusted Rate
(Column G +
Column I)
6 Green Waste 2 Cu Yards 1 x WK 96.85 4.90% 4.75 101.60 7 Green Waste 2 Cu Yards 2 X Wk 130.51 4.90% 6.40 130.51 8 Green Waste 2 Cu Yards 3 X WK 201.75 4.90% 9.89 211.64 9 Green Waste 2 Cu Yards 4 X Wk 290.54 4.90% 14.25 304.79 10 Green Waste 2 Cu Yards 5 X Wk 338.96 4.90% 16.62 355.58 11 Green Waste 2 Cu Yards 6 X Wk 387.38 4.90% 19.00 406.38 12 Green Waste 3 Cu Yards 1 x Wk 106.53 4.90% 5.22 111.75 13 Green Waste 3 Cu Yards 2 X Wk 161.40 4.90% 7.92 169.32 14 Green Waste 3 Cu Yards 3 X Wk 242.11 4.90% 11.87 253.98 15 Green Waste 3 Cu Yards 4 X Wk 322.81 4.90% 15.83 338.64 16 Green Waste 3 Cu Yards 5 X Wk 363.17 4.90% 17.81 380.98 17 Green Waste 3 Cu Yards 6 X Wk 419.66 4.90% 20.58 440.24 18 Green Waste 4 Cu Yards 1 x Wk 145.26 4.90% 7.12 152.38 19 Green Waste 4 Cu Yards 2 X Wk 242.11 4.90% 11.87 253.98 20 Green Waste 4 Cu Yards 3 X Wk 290.54 4.90% 14.25 304.79 21 Green Waste 4 Cu Yards 4 X Wk 355.09 4.90% 17.41 372.50 22 Green Waste 4 Cu Yards 5 X Wk 403.52 4.90% 19.79 423.31 23 Green Waste 4 Cu Yards 6 X Wk 443.86 4.90% 21.77 465.63 24 Locking Bin Fee 1x 21.90 4.90% 1.07 22.97
25 Locking Bin Fee 2x 29.19 4.90% 1.43 30.62
26 Locking Bin Fee 3x 36.49 4.90% 1.79 38.28
27 Locking Bin Fee 4x 43.79 4.90% 2.15 45.94
28 Locking Bin Fee 5x 51.10 4.90% 2.51 53.61
29 Locking Bin Fee 6x 58.40 4.90% 2.86 61.26
30 96 Gallon Cart 85.11 4.90% 4.17 89.28
4 of 9

BIN ORGANICS SERVICES AB C
Row Rate Component Old Index New Index
Percent Change in
Index ((Column B/
Column A)-1)
1 Collection (1) 317.571 302.164 5.10%
2 Disposal (1) 317.571 302.164 5.10%
STEP TWO: Determine Weighted Change D E F
Row Rate Component
Maximum
Allowed
Percentage
Change Component Weighting
Total Weighted
Change (Column D x
E)
3 Collection (4) 4.86% 80.00% 3.89%
4 Disposal (5) 5.08% 20.00% 1.02%

4.5 Discretionary Rate Adjustment 0.00%
5 Total Commercial Oragnics Service Percentage Rate Adjustment 4.90% STEP THREE: Apply Percentage Change to Rates G H I J
Row Rate Category Current Rate
Total Weighted
Percentage Change
(from Row 5, Column
F)
Rate Increase or
Decrease (Column G
x Column H)
Adjusted Rate
(Column G +
Column I)
6 Organics 2 Cu Yards 1 x WK 196.72 4.90% 9.65 206.37
7 Organics 2 Cu Yards 2 X Wk 339.32 4.90% 16.64 355.96
8 Organics 2 Cu Yards 3 X WK 453.13 4.90% 22.22 475.35
9 Organics 2 Cu Yards 4 X Wk 566.90 4.90% 27.80 594.70
10 Organics 2 Cu Yards 5 X Wk 677.03 4.90% 33.20 710.23 11 Organics 2 Cu Yards 6 X Wk 788.54 4.90% 38.67 827.21 12 Organics 3 Cu Yards 1 x Wk 212.26 4.90% 10.41 222.67 13 Organics 3 Cu Yards 2 X Wk 351.18 4.90% 17.22 368.40 14 Organics 3 Cu Yards 3 X Wk 480.47 4.90% 23.56 504.03 15 Organics 3 Cu Yards 4 X Wk 602.03 4.90% 29.52 631.55 16 Organics 3 Cu Yards 5 X Wk 723.60 4.90% 35.49 759.09 17 Organics 3 Cu Yards 6 X Wk 849.02 4.90% 41.64 890.66 18 Organics 4 Cu Yards 1 x Wk 290.85 4.90% 14.26 305.11 19 Organics 4 Cu Yards 2 X Wk 474.70 4.90% 23.28 497.98 20 Organics 4 Cu Yards 3 X Wk 576.71 4.90% 28.28 604.99 21 Organics 4 Cu Yards 4 X Wk 676.76 4.90% 33.19 709.95 22 Organics 4 Cu Yards 5 X Wk 778.74 4.90% 38.19 816.93 23 Organics 4 Cu Yards 6 X Wk 910.16 4.90% 44.63 954.79 24 96 Gallon Cart 102.11 4.90% 5.01 107.12
24 70 Gallon Cart 97.16 4.90% 4.76 101.92
5 of 9

ROLL-OFF SERVICES AB C
Row Rate Component Old Index New Index
Percent Change
in Index
((Column B/
Column A)-1)
1 Collection (1) 317.571 302.164 5.10%
2 Disposal (2) 38.340 36.09 6.23%
STEP TWO: Determine Weighted Change D E F
Row Rate Component
Maximum
Allowed
Percentage
Change
Component
Weighting
Total Weighted
Change (Column
D x E)
3 Total Roll-Off Collection & Other Services Pecentage Rate Adjustment(3) 4.86% 100.00% 4.86%
4 Roll-Off Disposal (3) 6.23% 100.00% 6.23%

4.5 Discretionary Rate Adjustment 0.00%
STEP THREE: Apply Percentage Change to Rates G H I J
Row Rate Category Current Rate
Total Weighted
Percentage
Change (from
Row 3 & 4,
Column F)
Rate Increase or
Decrease
(Column G x
Column H)
Adjusted Rate
(Column G +
Column I)
5 MRF C&D Service Component(4) 4.86% 1.26 25.85 27.11
6 Disposal Component 6.23% 2.23 35.82 38.06
7 Per Ton C&D MRF Processing Fee for C&D (Row 5 + Row 6)(5) 5.66% 65.17 61.68 Row Rate Category Current Rate
Total Weighted
Percentage
Change (from
Row 3 or 4,
Column F)
Rate Increase or
Decrease
(Column G x
Column H)
Adjusted Rate
(Column G +
Column I)
8 Roll-Off Or Compactor Service Up to 6 Tons 4.86% 28.75 591.59 620.34 9 Roll-Off C&D Service Up to 6 Tons 4.86% 37.15 764.50 801.65 10 Roll-Off Daily Rental (after 7 days with no dump) 13.07 4.86% 0.64 13.71 11 Roll-Off Dead Run 39.22 4.86% 1.91 41.13
12 Overloaded Container 46.84 6.23% 2.92 49.76
13 3-Yard Clean up Bin: Includes one dump 156.89 4.86% 7.62 164.51 14 3-Yard Clean-up Bin (each dump) 65.37 4.86% 3.18 68.55 15 3-Yard Clean-up Bin Dead run 13.07 4.86% 0.64 13.71
16 3-Yard Clean-up Bin Rental (after 7 days with no dump) 6.54 4.86% 0.32 6.86 6 of 9

OTHER SERVICES AB C
Row Rate Component Old Index New Index
Percent Change in
Index ((Column B/
Column A)-1)
1 Collection (1) 317.571 302.164 5.10%
2 STEP TWO: Determine Weighted Change D E F
Row Rate Component
Maximum
Allowed
Percentage
Change Component Weighting
Total Weighted
Change (Column D x
E)
3 Collection (3) 4.86% 100.00% 4.86%
4 4.5 Discretionary Rate Stabilization 0.00%
5 Total Commercial Service Percentage Rate Adjustment 4.86% STEP THREE: Apply Percentage Change to Rates G H I J
Row Rate Category Current Rate
Total Weighted
Percentage Change
(from Row 5, Column
F)
Rate Increase or
Decrease (Column G
x Column H)
Adjusted Rate
(Column G +
Column I)
6 On-Call Bulky Waste – Commercial Premises $71.60 4.86% 3.48 75.08 7 On-Call Bulky Waste / E-Waste – Multi-Family
Premises (Up to two (2) items per year.)
8 On-Call Bulky Waste / E-Waste – Multi-Family
Premises (Beyond two (2) items per year.) $71.60 4.86% 3.48 75.08 9 On-Call E-Waste & U-Waste Collection & Recycling –
Commercial & Multi-Family Premises $71.60 4.86% 3.48 75.08 10 Household Hazardous Waste Collection – Multi-Family
Premises $71.60 4.86% 3.48 75.08
11 Emergency Service $71.68 4.86% 3.48 75.16
12 Maximum Late Fee 6.86% 4.86% 0.33% 7.19%
13 Bin Washing Service beyond Once a Year
7 of 9
Series Id: CUURS49ASA0 replaces CUURA421SA0
Not Seasonally AdjustedArea: Los Angeles-Riverside-Orange County, CAItem: All itemsBase Period: 1982-84=100Download:

Cypress City CouncilApril 10, 2023

Cypress City Council
April 10, 2023