CC AGENDA / 02/16/2022 1
AGENDA
REGULAR MEETING OF THE CITY COUNCIL
CITY OF IMPERIAL
200 WEST 9TH STREET
IMPERIAL, CA 92251-1637
FEBRUARY 16, 2022
CLOSED SESSION 6:00 PM
OPEN SESSION 7:00 PM
The Imperial City Council meetings, including public comments, are being Livestreamed on the City’s social media pages. By remaining in the room, you are giving your permission to be recorded.
1. You are encouraged to observe the City Council meetings via Livestream at the City of Imperial Facebook page.
2. Email public comments to [email protected] by 5:00 pm on Wednesday, February 16, 2022.
Comments received by 5:00 pm will be read into the record during the regular meeting.
IN COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT, IF YOU NEED SPECIAL ASSISTANCE TO PARTICIPATE IN THIS MEETING, PLEASE CONTACT (760) 355-4373. NOTIFICATION 48
HOURS PRIOR TO THE MEETING WILL ENABLE THE CITY TO MAKE REASONABLE ARRANGEMENTS TO ENSURE ACCESSIBILITY TO THIS MEETING [28CFR 35.102-35.104 ADA TITLE II] A. CITY COUNCIL CONVENES TO CLOSED SESSION AT 6:00 PM.
This is a CLOSED SESSION in which the COUNCIL discusses matters in closed as opposed to open session.
Only those matters authorized by the Brown Act as permissible CLOSED SESSION subjects will be discussed.
They are as follows:
A-1. SUBJECT: CONFERENCE WITH LEGAL COUNSEL-ANTICIPATED LITIGATION. (Initiation of litigation pursuant to paragraph (4) of Subdivision (d) of Section 54956.9).
Two (2) potential case.
A-2. SUBJECT: CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION.
(Significant Exposure to litigation pursuant to paragraph (2) or (3) of subdivision (d) of Government Code Section 54956.9) One (1) potential case.
A-3. SUBJECT: PUBLIC EMPLOYEE APPOINTMENT. GOVERNMENT CODE SECTION 54957 (b)(1)
Title: City Attorney
CITY COUNCIL ADJOURNS CLOSED SESSION
B. CITY COUNCIL RE-CONVENES TO OPEN SESSION AT 7:00 P.M.
ROLL CALL
PLEDGE OF ALLEGIANCE
ADJUSTMENTS TO THIS AGENDA
ANNOUNCEMENT OF ACTION TAKEN IN CLOSED SESSION
CC AGENDA / 02/16/2022 2
C. PUBLIC APPEARANCES:
C-1. Matters not appearing on the agenda. If you wish to address the COUNCIL concerning any item within the COUNCIL’S jurisdiction, please raise your hand and be acknowledged by the MAYOR, and at that time state your name and address for the record. The MAYOR reserves the right to place a time limit on each person’s presentation of three (3) minutes. It is requested that longer presentations be submitted to the Council in writing.
C-2. Matters appearing on the agenda. If you wish to address the COUNCIL concerning any item appearing on the agenda, please raise your hand and be acknowledged by the MAYOR, and at that time state your name and address for the record. The MAYOR reserves the right to place a time limit on each person’s presentation of three (3) minutes.
D. CONSENT AGENDA:
All items appearing under “Consent Agenda” will be acted upon by the City Council by one motion without discussion.
Should any Council member or other person request that any item be considered separately that item will then be taken up at the time as determined by the MAYOR
D-1. Approval of claims/warrants report.
D-2. Approval of Minutes from Regular Meeting of the City Council on February 2, 2022.
D-3. Approval of Treasurers Report for the Month of December 2021.
D-4. Approval of Participation and Authorization to enter into an Agreement with State of California and U.S. Department of Justice relating to Distributor Settlement and Janssen Opioid Settlement.
E. ACTION ITEMS: (DISCUSSION/ACTION – APPROVE-DISAPPROVE) E-1. SUBJECT: DISCUSSION/ACTION: CANON SOLUTIONS AMERICA, INC.
1. APPROVAL OF FIVE (5) YEAR LEASE CONTRACT BETWEEN CITY OF IMPERIAL AND CANON SOLUTIONS AMERICA, INC. FOR PRINTER AND PLOTTER.
E-2. SUBJECT: DISCUSSION/ACTION: DECLARATION OF IMPERIAL POLICE
DEPARTMENT VEHICLE AS SURPLUS
1. DECLARATION OF IMPERIAL POLICE DEPARTMENT VEHICLE AS SURPLUS; AND
2. AUTHORIZATION OF SALE AND/OR SALVAGE OF ITEMS DECLARED SURPLUS.
E-3. SUBJECT: DISCUSSION/ACTION: PURCHASE OF COMMUNICATIONS
EQUIPMENT FOR IMPERIAL POLICE DEPARTMENT
1. APPROVAL TO PURCHASE TWO (2) MOTOROLA APX 6000 RADIOS NOT EXCEED $14,000.00.
E-4. SUBJECT: DISCUSSION/ACTION: REMOVAL AND REPLACEMENT OF FOUR (4) SANITARY SEWER MANHOLES ALONG 2ND STREET BETWEEN
SR 86 AND “P” STREET
1. APPROVAL OF BALANCING CHANGE ORDER; AND
2. ACCEPTANCE OF WORK COMPLETED; AND
3. AUTHORIZATION FOR CITY CLERK TO RECORD NOTICE OF
COMPLETION.
CC AGENDA / 02/16/2022 3
ADJOURN CITY COUNCIL MEETING UNTIL THE NEXT REGULARLY SCHEDULED MEETING, WEDNESDAY, MARCH 2, 2022, AT 7:00 P.M.
NOTE: Any documents produced by the city and distributed to a majority of the City Council/Agency Board regarding any item on this agenda will be made available at the front counter at City Hall, located at 420 S. Imperial Avenue, during normal business hours.
Check Register Report
Date: 02/11/2022
Time: 1:34 pm
CITY OF IMPERIAL BANK: UNION BANK Page: 1
Check Check Status Void/Stop Reconcile Vendor Vendor Name Check Description Amount Number Date Date Date Number UNION BANK Checks
102956 01 /28/22 Printed 2357 ALL VALLEY FENCE AND 410.04
MATERIALS
102957 01 /28/22 Printed 195 ALLIED WASTE 12,185.16
102958 01/28/22 Printed 6306 AMERICAN FIDELITY 6,539.52
ASSURANCE
102959 01/28/22 Printed 5287 ANDREA STIFF-RIOS 22.27
102960 01 /28/22 Printed 7599 AQUATICS BY ARMANDO 350.00 102961 01/28/22 Printed 2081 ARAMARK UNIFORM 2,591.53
102962 01/28/22 Printed 1851 121.64
102963 01/28/22 Printed 2173 40.00
102964 01/28/22 Printed 250
SERVICE
AT&T LONG DISTANCE
ATEN EXPRESS INC
BLUE SHIELD OF CALIFORNIA 32,622.27
102967 01/28/22 Printed 7158 BLUETARP FINANCIAL, INC. 2,657.59 102968 01/28/22 Printed 455 CALIFORNIA STATE 1,726.14
DISBURSEMENT
102969 01/28/22 Printed 3669 CANON 647.97
102970 01/28/22 Printed 1053 CITY OF IMPERIAL 1,500.00
102971 01/28/22 Printed 4920 COAST RECREATION INC. 1,263.14 102972 01/28/22 Printed 6857 COUNTY MOTOR PARTS CO, 107.75 INC
102973 01/28/22 Printed 2725 CREDIT BUREAU OF 35.00
102974 01/28/22 Printed 7600 2,008.22
102975 01/28/22 Printed 1302
IMPERIAL
D AND H WATER SYSTEMS,
INC
DAVID TURCH & ASSOCIATES 10,000.00
102976 01/28/22 Printed 1573 DEPARTMENT OF JUSTICE 66.00 102977 01/28/22 Printed 4049 DIVISION OF THE STATE 249.20 102978 01 /28/22 Printed 4203 DUDLEYS 397.65
102979 01/28/22 Printed 2191 EMBER HALLER 212.86
102980 01/28/22 Printed 7474 ERICK QUERO 528.00
102981 01/28/22 Printed 7376 FIRST LOAN 100.00
102982 01/28/22 Printed 314 FRANCHISE TAX BOARD 200.00
102983 01/28/22 Printed 7598 HOUR PHOTO-MC TROPHIES 259.80 102984 01/28/22 Printed 1190 ICMA RC 890.00
102985 01 /28/22 Printed 4271 IMPERIAL COUNTY HUMANE 340.00
SOCIETY
102986 01/28/22 Printed 1403 IMPERIAL COUNTY 22.00
SHERIFF'S OFFI
102987 01/28/22 Printed 1403 IMPERIAL COUNTY 22.00
SHERIFPS OFFI
102988 01/28/22 Printed 028 IMPERIAL IRRIGATION 11,438.90
DISTRICT
102989 01/28/22 Printed 102 IMPERIAL POLICE OFFICERS 875.00 ASSN.
102990 01/28/22 Printed 221 IMPERIAL PRINTERS 49.57
102991 01/28/22 Printed 3187 IMPERIAL TRUSS & LUMBER 79.41 co.
102992 01/28/22 Printed 1555 IMPERIAL VALLEY PRESS 221.49 102993 01/28/22 Printed 5033 INFO SEND INC. 2,895.24
102994 01/28/22 Printed 320 INTERNAL REVENUE 150.00
SERVICE
102995 01/28/22 Printed 1647 LA BRUCHERIE IRRIGATION 639.17 SUPPLY
102996 01/28/22 Printed 696 LEONARD BARRA 279.07
102997 01/28/22 Printed 101 LINCOLN LIFE 1,082.66
102998 01/28/22 Printed 6499 MARIO ROACHO 4,750.00
102999 01/28/22 Printed 7597 NANCY PREUSS 113.51
103000 01/28/22 Printed 6491 PARTY PALS 2,200.00
D-1
Check Register Report
Date: 02/11/2022
Time: 1:34 pm
CITY OF IMPERIAL BANK: UNION BANK Page: 2
Check Check Status Void/Stop Reconcile Vendor Vendor Name Check Description Amount Number Date Date Date Number UNION BANK Checks
103001 01/28/22 Printed 084 400.00
103002 01/28/22 Printed 6710 2,188.50
103003 01/28/22 Printed 2782 5,210.34
PITNEY BOWES PURCHASE
POWER
PREMIER RENTALS
PRINCIPAL LIFE INSURANCE
COMP
103004 01/28/22 Printed 1637 ROMEO'S CAR WASH 220.00
103005 01/28/22 Printed 3526 RSD 672.85
103006 01/28/22 Printed 979 SELLERS PETROLEUM 9,252.12
103007 01 /28/22 Printed 1239 SHERWIN-WILLIAMS 280.81
103008 01 /28/22 Printed 3262 SIMNSA HEALTH PLAN 12,560.42 103009 01/28/22 Printed 135 SOCALGAS 112.63
103010 01128/22 Printed 2365 SPARKLETTS 281.49
103011 01/28/22 Printed 091 STAPLES CREDIT PLAN 36.09
103012 01/28/22 Printed 6416 SUN DATA SUPPLY 167.85
103013 01/28/22 Printed 3570 SWANK MOVIE LICENSING 450.00 USA
103014 01/28/22 Printed 1385 SWRCB ACCOUNTING 47,786.44 OFFICE
103015 01/28/22 Printed 104 TEAMSTERS, LOCAL 542 1,424.00 103016 01/28/22 Printed 7443 TEXAS LIFE INSURANCE 1,014.90
COMPANY
103027 01 /28/22 Printed 5837 U.S. BANK 14,786.71
103028 01 /28/22 Printed 275 UNDERGROUND SERVICE 239.59
ALERT OF
103029 01/28/22 Printed 2008 UNITED PARCEL SERVICE 31.65 103030 01/28/22 Printed 944 UNITED WAY OF IMPERIAL 7.00 COUNTY
103031 01/28/22 Printed 1100 USA BLUEBOOK 1,807.72
103032 01/28/22 Printed 611 VERIZON WIRELESS 4,812.36
103033 01/28/22 Printed 5674 WAGEWORKS, INC 102.60
103034 01 /28/22 Printed 1715 WAXIE SANITARY SUPPLY 598.64 103035 01/28/22 Printed 1132 WELLS FARGO BANK MN, 491,347.47 N.A.
103139 02/09/22 Printed 7601 3STAR INC 10,530.85
103140 02/09/22 Printed 391 A & R CONSTRUCTION 62,754.15 103141 02/09/22 Printed 1599 ACE UNIFORMS & 319.81
ACCESSORIES
103142 02/09/22 Printed 5201 AIR MED CARE NETWORK 75.00 103143 02/09/22 Printed 1119 ALBERT VALENZUELA 407.00
103144 02/09/22 Printed 1119 ALBERT VALENZUELA 407.00
103145 02/09/22 Printed 4626 ALBERTO HERNANDEZ 259.00
103146 02/09/22 Printed 2357 864.16
103147 02/09/22 Printed 195 12,636.01
103148 02/09/22 Printed 1406 4,900.00
103149 02/09/22 Printed 5956
ALL VALLEY FENCE AND
MATERIALS
ALLIED WASTE
ALVARO MADRID CONCRETE
INC.
AMAZON CAPITAL SERVICES 881.59
103150 02/09/22 Printed 6984 ANAAMAYA 407.00
103151 02/09/22 Printed 6984 ANAAMAYA 407.00
103152 02/09/22 Printed 2081 ARAMARK UNIFORM 3,533.81
SERVICE
103153 02/09/22 Printed 7609 ARIANA SWAIM 43.58
103154 02/09/22 Printed 6933 AT&T 42.39
103155 02/09/22 Printed 1851 AT&T LONG DISTANCE 743.39
103158 02/09/22 Printed 4400 BABCOCK LABORATORIES, 3,696.30 INC.
103159 02/09/22 Printed 6370 BIG STATE INDUSTRIAL 1,993.13 SUPPLY
Check Register Report
Date: 02/11/2022
Time: 1:34 pm
CITY OF IMPERIAL BANK: UNION BANK Page: 3
Check Check Status Void/Stop Reconcile Vendor Vendor Name Check Description Amount Number Date Date Date Number UNION BANK Checks
103160 02/09/22 Printed 7158 BLUETARP FINANCIAL, INC. 493.38 103161 02/09/22 Printed 674 BRENNTAG 4,258.95
103162 02/09/22 Printed 385 CA PEACE OFFICERS 125.00
ASSOCIATION
103163 02/09/22 Printed 6460 CALIFORNIA ANIMAL 100.00
WELFARE
103164 02/09/22 Printed 567 CALIFORNIA 4,953.92
ENVIRONMENTAL
103165 02/09/22 Printed 455 CALIFORNIA STATE 1,633.83
DISBURSEMENT
103166 02/09/22 Printed 3029 CLAIREMONT EQUIPMENT 4,815.38 103167 02/09/22 Printed 6222 CODE EXXPERTS, LLC 1,691.58 103168 02/09/22 Printed 1109 1,481.40
103169 02/09/22 Printed 514
CONSOLIDATED ELECTRICAL
DIST.
CORE & MAIN LP 7,421.26
103172 02/09/22 Printed 6857 COUNTY MOTOR PARTS CO, 1,437.87 INC
103173 02/09/22 Printed 6030 DANIEL BONTE & THE BONA 3,500.00 FIDE
103174 02/09/22 Printed 1573 DEPARTMENT OF JUSTICE 64.00 103175 02/09/22 Printed 1256 DEPARTMENT OF TOXIC 4,051.00
SUBSTANCES
103176 02/09/22 Printed 1077 DETROIT INDUSTRIAL TOOL 1,524.62 103177 02/09/22 Printed 7602 EARTH SCIENCE 6,283.76
LABORATORIES, IN
103178 02/09/22 Printed 7608 EDWARD SOLORZANO 48.97
103179 02/09/22 Printed 2558 EFILE CABINET 6,749.00
103180 02/09/22 Printed 207 EL CENTRO MOTORS 244.61
103181 02/09/22 Printed 7472 ELADIO REYES 407.00
103182 02/09/22 Printed 7472 ELADIO REYES 407.00
103183 02/09/22 Printed 7605 ELIA YEPEZ 91.51
103184 02/09/22 Printed 164 ELMS EQUIPMENT RENTAL, 4,114.39 INC.
103185 02/09/22 Printed 6250 ENVIRONMENTAL WATER 4,433.49
SOLUTIONS,
103186 02/09/22 Printed 019 FERGUSON ENTERPRISES, 25.56 INC.
103187 02/09/22 Printed 7145 FERGUSON WATERWORKS 569.73 #1083
103188 02/09/22 Printed 5134 FORENSIC DRUG TESTING 415.97
SERVICES
103189 02/09/22 Printed 314 FRANCHISE TAX BOARD 200.00
103190 02/09/22 Printed 7616 FRANCISCO GARCIA 5.52
103191 02/09/22 Printed 7617 FRANK PARTIDA 155.07
103192 02/09/22 Printed 513 GIBSON & SCHAEFER, INC. 4,383.27 103193 02/09/22 Printed 4456 GRAFFIK INDUSTRIES 307.09
103194 02/09/22 Printed 117 HAAKER EQUIPMENT 4,098.26
COMPANY
103195 02/09/22 Printed 331 HACH COMPANY 2,017.07
103196 02/09/22 Printed 1349 HDL COREN & CONE 1,875.00
103197 02/09/22 Printed 3039 HOLTVILLE TRIBUNE 1,344.00 103198 02/09/22 Printed 2096 HOME DEPOT CREDIT 2,769.41
SERVICES
103199 02/09/22 Printed 3160 IMPERIAL COUNTY 1,732.80
AUDITOR-CONTRO
103200 02/09/22 Printed 120 IMPERIAL COUNTY FIRE 63,217.88 DEPT.
103201 02/09/22 Printed 4637 IMPERIAL COUNTY PUBLIC 650.00 HEALTH
103202 02/09/22 Printed 028 IMPERIAL IRRIGATION 29,429.90
DISTRICT
103203 02/09/22 Printed 102 IMPERIAL POLICE OFFICERS 2/11/22 875.00 ASSN.
Check Register Report
Date: 02/11/2022
Time: 1:34 pm
CITY OF IMPERIAL BANK: UNION BANK Page: 4
Check Check Status Void/Stop Reconcile Vendor Vendor Name Check Description Amount Number Date Date Date Number UNION BANK Checks
103204 02/09/22 Printed 221 97.94
103205 02/09/22 Printed 3187 427.91
103206 02/09/22 Printed 7147 149.60
IMPERIAL PRINTERS
IMPERIAL TRUSS & LUMBER
co.
IMPERIAL VALLEY CHRYSLER
DODGE
103207 02/09/22 Printed 2099 IMPERIAL VALLEY 937.62
OCCUPATIONAL M
103208 02/09/22 Printed 7302 IMPERIAL VALLEY 9,806.55
VOLKSWAGEN
103209 02/09/22 Printed 320 INTERNAL REVENUE 150.00
SERVICE
103210 02/09/22 Printed 008 JIM REITER'S LOCKSMITH & 41.46 SAFE
103211 02/09/22 Printed 7613 JON CAZARES 241.50
103213 02/09/22 Printed 642 JORDAN CENTRAL 638.30
IMPLEMENT CO.
103214 02/09/22 Printed 868 K-C WELDING & RENTALS, 1,807.32 INC.
103215 02/09/22 Printed 2901 KIMBALL MIDWEST 2,775.18
103216 02/09/22 Printed 1647 LA BRUCHERIE IRRIGATION 846.13 SUPPLY
103217 02/09/22 Printed 5230 LABOR COMPLIANCE 1,335.00
CONSULTANTS
103218 02/09/22 Printed 843 LAURA GUTIERREZ 403.56
103219 02/09/22 Printed 7300 LAW OFFICE OF 8,000.00
103220 02/09/22 Printed 427 LEAGUE OF CA CITIES 9,163.00 103221 02/09/22 Printed 1996 LEE TIRE CO. 2,080.14
103222 02/09/22 Printed 101 LINCOLN LIFE 1,035.37
103223 02/09/22 Printed 816 LOCAL AGENCY FORMATION 17,556.00 103224 02/09/22 Printed 7603 MAGSAYSAY CRUZ 107.91
103225 02/09/22 Printed 260 MALLORY SAFETY AND 215.35
SUPPLY LLC
103226 02/09/22 Printed 7607 MARK JANOSZ 241.50
103227 02/09/22 Printed 7254 MICHAEL LANKFORD 20.47
103228 02/09/22 Printed 4475 MOTOROLA SOLUTIONS, INC 15,582.40 103230 02/09/22 Printed 4481 O'REILLY 3,909.42
103231 02/09/22 Printed 7612 OJEDA INDUSTRIES 96.82
103232 02/09/22 Printed 7615 OWEN MAKIN 24.70
103233 02/09/22 Printed 219 PADRE USA 594.25
103234 02/09/22 Printed 6530 PEER SOFTWARE INC. 756.25
103235 02/09/22 Printed 4562 PET WASTE ELIMINATOR 172.40 103236 02/09/22 Printed 3899 PLUMMER UPHOLSTERY 123.71
SHOP
103237 02/09/22 Printed 896 POLICE AND FIRE 350.00
PSYCHOLOGY
103238 02/09/22 Printed 7495 POLYDYNE INC. 7,633.01
103239 02/09/22 Printed 172 PYRAMID CONSTRUCTION 115,873.23 103240 02/09/22 Printed 3897 QT SANITATION 1,385.00
103241 02/09/22 Printed 7606 R.J. NEILD 130.79
103242 02/09/22 Printed 133 RAIN FOR RENT 149.08
103243 02/09/22 Printed 7604 RAUL LARA ACEVES 104.01
103244 02/09/22 Printed 3008 RDO EQUIPMENT COMPANY 26.71 103246 02/09/22 Printed 694 REXEL OF AMERICA, LLC 3,511.44 103247 02/09/22 Printed 7558 RISK MANAGEMENT 2,157.50
PROFESSIONALS,
103248 02/09/22 Printed 3526 RSD 62.62
103249 02/09/22 Printed 089 SAFEWAY SIGN COMPANY 385.91 103250 02/09/22 Printed 957 SC FUELS 4,957.88
103251 02/09/22 Printed 979 SELLERS PETROLEUM 12,295.85 103252 02/09/22 Printed 5706 SHI INTERNATIONAL CORP 3,432.60 103253 02/09/22 Printed 5257 SKM ENGINEERING LLC 120.00
CITY OF IMPERIAL
Check Check Status
Number Date
UNION BANK Checks
103254 02/09/22 Printed
103255 02/09/22 Printed
103256 02/09/22 Printed
103257 02/09/22 Printed
103258 02/09/22 Printed
103259 02/09/22 Printed
103260 02/09/22 Printed
103261 02/09/22 Printed
103262 02/09/22 Printed
103263 02/09/22 Printed
103264 02/09/22 Printed
103265 02/09/22 Printed
103269 02/09/22 Printed
103270 02/09/22 Printed
103271 02/09/22 Printed
103272 02/09/22 Printed
103274 02/09/22 Printed
103275 02/09/22 Printed
103276 02/09/22 Printed
Check Register Report
Date: 02/11/2022
BANK: UNION BANK
Void/Stop Reconcile Vendor
Date Date Number
6648
135
2365
091
6416
1385
690
536
275
2008
944
1100
Vendor Name
SMARTCOVER SYSTEMS
SOCALGAS
SPARKLETTS
STAPLES CREDIT PLAN
SUN DATA SUPPLY
SWRCB ACCOUNTING
OFFICE
TOKAY SOFTWARE
TUCKER AUTO BODY &
TOWING
UNDERGROUND SERVICE
ALERT OF
UNITED PARCEL SERVICE
UNITED WAY OF IMPERIAL
COUNTY
USA BLUEBOOK
Time:
Page:
Check Description
615 VALLEY PEST SERVICES, INC
611 VERIZON WIRELESS
5639 WAGEWORKS, INC
1715 WAXIE SANITARY SUPPLY
1568 WEBB AND ASSOCIATES
7614 WINGERT GREBING
BRUBAKER&
487 XPRESS LUBE
Total Checks: 195 Checks Total (excluding void checks):
Total Payments: 195 Bank Total (excluding void checks):
Total Payments: 195 Grand Total (excluding void checks):
1:34 pm
5 Amount
1,235.90
97.78 219.96
1,150.77
680.40
10,602.00
400.00
6,067.51
158.60
122.73
6.00 1,617.18
2,988.00
4,003.55
100.00
294.99
176,506.11
4,643.40
260.82
1,421,055.66
1,421,055.66
1,421,055.66
Executive Summary [Subject to ongoing corrections and updates] Nationwide settlements have been reached to resolve all Opioids litigation brought by states and local political subdivisions against the three largest pharmaceutical distributors: McKesson, Cardinal Health and AmerisourceBergen (“Distributors”), and manufacturer Janssen Pharmaceuticals, Inc. and its parent company Johnson & Johnson (collectively, “J&J”). These settlements will provide substantial funds to states and subdivisions for abatement of the Opioids epidemic across the country and will impose transformative changes in the way the settling defendants conduct their business.
If the proposed settlements are fully adopted by states and subdivisions nationwide:
The Distributors will pay a maximum of $21 billion over 18 years, while J&J will pay a maximum of $5 billion over no more than nine years, with approximately $22.8 billion in settlement proceeds payable to state and local subdivisions.[1] . Of the funds going directly to participating states and subdivisions, at least 85% must be used for abatement of the Opioid Epidemic, with the overwhelming bulk of the proceeds restricted to funding future abatement efforts by state and local governments.
The Distributors will make an initial deposit of funds into escrow by the end of September 2021, with additional deposits by J&J and the Distributors in early Summer of 2022.
Funds can begin to flow to states and local governments as early as April 2022, depending on when a settling State meets certain requirements. The J&J agreement also offers opportunities for significant acceleration of payments if states and subdivisions meet specified participation levels.
The settlements will allow for a broad range of approved abatement uses by state and local governments. Developed in consultation with the nation’s leading public health experts, the list of pre-approved uses includes a wide range of intervention, treatment, education, and recovery services so that state and local governments can decide what will best serve their communities. It is anticipated that entire communities will benefit from the effects of the opioid-remediation efforts funded by the settlements and the injunctive relief the settlements provide.
In addition to billions of dollars for abatement, the agreements also provide for injunctive relief that requires important changes to the Distributors’ and J&J’s conduct to better protect our nation’s health and welfare. This reform package includes the creation of a groundbreaking clearinghouse through which the Distributors will be required to account not only for their own shipments, but also the shipments of the other distributors, in order to detect, stop, and report suspicious Opioids orders. In addition, J&J (which ceased marketing Opioids in 2015 and ceased selling Opioids in 2020) National Opioid Settlement
D-4
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. J&J also has agreed to make the clinical trial data for its discontinued Opioids available for medical research.
Less than 10% of the settlement proceeds will be earmarked to compensate private lawyers who have been prosecuting Opioids cases on behalf of state and local governments for several years and have incurred substantial out of pocket costs. Compensation will occur through an application procedure overseen by court-appointed arbiters. An additional sum is provided to settling States that did not hire outside counsel, to use towards furthering the abatement goal and to defray their investigation and litigation costs.
These are not class action “opt out” settlements. Instead, these settlements require that a critical mass of both state and local governments “opt in” over the next six months. The extent of this participation will determine whether the settlement agreements take effect. The Distributors and J&J on the one hand, and the states and subdivisions on the other, each have options to walk away if they are not satisfied with levels of participation. Participation levels also affect how much money settling parties will receive because about half of the abatement funds are in the form of “incentive payments” and certain other settlement provisions also provide incentives for higher levels of participation. Put simply, the greater the level of participation, the more funds will ultimately be paid out for abatement.
The Tribes, the Distributors, and J&J are also working toward resolution of Tribal Opioids claims through mediations under the auspices of the MDL court.
The agreements with the Distributors and J&J are the culmination of almost three years of intense negotiations among representatives of the State Attorneys General, the court-appointed Plaintiffs’ Executive Committee and Negotiation Committee comprised of lawyers in the National Prescription Opiate MDL who represent subdivisions, and counsel to the Distributors and J&J, facilitated by Judge Dan Polster (who oversees the federal MDL litigation) and by the Special Masters appointed by the MDL Court.
The agreements, if adopted, will not settle or release any claims brought by private parties, including private individuals, private hospitals, or private third-party payers. [1] West Virginia previously settled with the Distributors in an unrelated settlement. A portion of the Distributors’ settlement funds ($491 million) is treated as a credit toward potential settlements with West Virginia subdivisions and with Tribes. For J&J’s agreement, a portion of the settlement funds ($270 million) is treated as a credit for Oklahoma (which obtained a trial verdict against J&J), the Tribes, and other litigation cost for non-participating entities. 1 Settlement Participation Form
Governmental Entity: Imperial city State: CA
Authorized Signatory: /officialname/
Address 1: /address1/
Address 2: /address2/
City, State, Zip: /cit/ /state/ /zi/
Phone: /Phone/
Email: /email/
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 July 21, 2021 (“Janssen Settlement”), and acting through the undersigned authorized official, hereby elects to participate in the Janssen Settlement, release all Released Claims against all Released Entities, and agrees as follows.
1. The Governmental Entity is aware of and has reviewed the Janssen 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 Janssen Settlement and become a Participating Subdivision as provided therein.
2. The Governmental Entity shall, within 14 days of the Reference Date and prior to the filing of the Consent Judgment, dismiss with prejudice any Released Claims that it has filed.
3. The Governmental Entity agrees to the terms of the Janssen Settlement pertaining to Subdivisions as defined therein.
4. By agreeing to the terms of the Janssen 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 Janssen Settlement solely for the purposes provided therein.
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 Janssen Settlement.
7. The Governmental Entity has the right to enforce the Janssen Settlement as provided therein.
2 8. The Governmental Entity, as a Participating Subdivision, hereby becomes a Releasor for all purposes in the Janssen Settlement, including but not limited to all provisions of Section IV (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 Janssen 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 Janssen Settlement shall be a complete bar to any Released Claim.
9. In connection with the releases provided for in the Janssen 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 Janssen Settlement.
10. Nothing herein is intended to modify in any way the terms of the Janssen Settlement, to which Governmental Entity hereby agrees. To the extent this Election and Release is interpreted differently from the Janssen Settlement in any respect, the Janssen Settlement controls.
3 I swear under penalty of perjury that I have all necessary power and authorization to execute this Election and Release on behalf of the Governmental Entity.
Signature: /signer_1/
Name: /name_1/
Title: /title_1/
Date: /date_1/
1 Proposed California State-Subdivision Agreement
Regarding Distribution and Use of
Settlement Funds – Janssen Settlement
1. Introduction
Pursuant to the Janssen Settlement Agreement, dated as of July 21, 2021, and any revision thereto (the “Janssen Settlement Agreement”), including Section VI and Exhibit O, the State of California proposes this agreement (the “CA Janssen Allocation Agreement”) to govern the allocation, distribution, and use of Settlement Fund payments made to California pursuant to Sections V and VI of the Janssen Settlement Agreement.
1 For the avoidance of doubt, this
agreement does not apply to payments made pursuant to Sections X or XI of the Janssen Settlement Agreement.
Pursuant to Exhibit O, Paragraph 4, of the Janssen Settlement Agreement, acceptance of this CA Janssen 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 Janssen Settlement Agreement. b) Distributor Settlement Agreement means the Distributor Settlement Agreement dated July 21, 2021, and any revision thereto.
c) 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, and LA Care Health Plan.
d) 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. e) Opioid Defendant means any defendant (including but not limited to Johnson & Johnson, Janssen Pharmaceuticals, Inc., Purdue Pharma L.P., Cardinal Health, Inc., 1 A parallel but separate agreement (the “CA Distributor Allocation Agreement”) will govern the allocation, distribution, and use of settlement fund payments under the Distributor Settlement Agreement. An eligible Subdivision may elect to participate in either the Distributor Settlement or the Janssen Settlement, or in both.
2 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 Janssen Settlement Agreement, as well as applicable law, and the Janssen Settlement Agreement governs over any inconsistent provision of this CA Janssen Allocation Agreement. Terms used in this CA Janssen Allocation Agreement have the same meaning as in the Janssen Settlement Agreement unless otherwise defined herein.
Pursuant to Section VI(D)(1) of the Janssen Settlement Agreement, (a) all Settlement Fund payments will be used for Opioid Remediation, except as allowed by Section VI(B)(2) of the Janssen 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,
2 pursuant to the Janssen 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 Janssen 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 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. 3 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 Janssen 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 Janssen 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 Janssen Settlement Agreement and this CA Janssen 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.
4 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 Janssen 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 Janssen 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 Janssen Settlement Agreement and this CA Janssen 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.
5 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 Janssen Settlement Agreement and this CA Janssen Allocation Agreement.
b) If DHCS determines that a CA Participating Subdivision’s use of CA Abatement Accounts Funds is inconsistent with the Janssen Settlement Agreement or this CA Janssen 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 Janssen Settlement Agreement or this CA Janssen 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 Janssen Settlement Agreement and this CA Janssen 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. 6 The CA Subdivision Funds will be allocated as follows:
a) First, funds in the CA Subdivision Fund shall be used to pay the Special Master’s reasonable fees and expenses in accordance with the procedures and limitations set forth in Appendix 2 to this document;
b) Second, funds will be allocated to Plaintiff Subdivisions that are Initial Participating Subdivisions that have been awarded Costs, as defined by and in accordance with the procedures and limitations set forth in Appendix 2 to this document. c) Funds remaining in the CA Subdivision Fund, which shall consist of no less than 50% of the total CA Subdivision Fund received in any year pursuant to Appendix 2, Section 2.c.v, will be distributed to Plaintiff Subdivisions that are Initial Participating Subdivisions, in relative proportion to the Local Allocation. These funds shall be used to fund future opioid-related projects and to reimburse past opioid-related expenses, which may include fees and expenses related to litigation against any Opioid Defendant.
D. Provision for State Back-Stop Agreement
On August 6, 2021, Judge Dan Polster of the U.S. District Court, Northern District of Ohio, Eastern Division, issued an order (ECF Docket Number 3814) (“MDL Fees Order”) in the National Prescription Opiate Litigation (MDL No. 2804) “cap[ping] all applicable contingent fee agreements at 15%.” Private counsel representing Plaintiff Subdivisions should seek its contingency fees and costs from the Attorney Fee Fund or Cost Funds under the Janssen Settlement Agreement and, if applicable, the Distributor 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(R), of the Janssen 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 Janssen Settlement, and if applicable, the Distributor 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 Janssen Settlement Agreement and, if applicable, the Distributor 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 7 General will also consider requests from Plaintiff Subdivisions to execute and enter into agreements presented in other forms.
For the avoidance of doubt, this agreement does not require a Plaintiff Subdivision to request or enter into a State Back-Stop Agreement, and no State Back-Stop Agreement shall impose any duty or obligation on the State of California or any of its agencies or officers, including without limitation the Attorney General.
5. State and Subdivision Reporting
a) DHCS will prepare an annual written report regarding the State’s use of funds from the settlement until those funds are fully expended and for one year thereafter. These reports will be made publicly available on the DHCS web site.
b) Each CA Participating Subdivision that receives payments of funds from the settlement will prepare written reports at least annually regarding the use of those funds, until those funds are fully expended and for one year thereafter. These reports will also include a certification that all funds that the CA Participating Subdivision has received through the settlement have been used in compliance with the Janssen Settlement Agreement and this CA Janssen 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 Janssen Settlement Agreement and this CA Janssen 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 VI(B)(2) of the Janssen Settlement Agreement, such information must also be reported to the Settlement Fund Administrator and Janssen. 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.
8 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 Janssen 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 Janssen Settlement Agreement, this CA Janssen 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 Janssen 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 Janssen Settlement Agreement, this agreement shall be governed by and interpreted in accordance with the laws of California.
The undersigned, Imperial city, ACKNOWLEDGES acceptance of this Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds - Janssen Settlement is a requirement to be an Initial Participating Subdivision in the Janssen Settlement and ACCEPTS this Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds - Janssen Settlement.
I swear under penalty of perjury that I have all necessary power and authorization to execute this Election and Release on behalf of the Governmental Entity.
Signature: /signer_1/
Name: /name_1/
Title: /title_1/
Date: /date_1/
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—Janssen 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.
APPENDIX 1
100.000% 100.000% 100.000%
Participating
Subdivision
Classification
Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage County Alameda County Alameda 2.332% 2.853% 2.4237952%
City Alameda Alameda 0.069% 0.0570162%City Albany Alameda 0.013% 0.0107768%City Berkeley Alameda 0.152% 0.1249656%City Dublin Alameda 0.033% 0.040% 0.0338810%City Emeryville Alameda 0.023% 0.0185765%City Fremont Alameda 0.108% 0.0888576%City Hayward Alameda 0.117% 0.0966218%City Livermore Alameda 0.054% 0.0446740%City Newark Alameda 0.026% 0.0217626%City Oakland Alameda 0.486% 0.595% 0.5055601%City Piedmont Alameda 0.014% 0.0114064%City Pleasanton Alameda 0.067% 0.0554547%City San Leandro Alameda 0.039% 0.0321267%City Union City Alameda 0.043% 0.0352484% County Amador County Amador 0.226% 0.277% 0.2349885%County Butte County Butte 1.615% 1.975% 1.6783178% City Chico Butte 0.216% 0.264% 0.2246499%City Oroville Butte 0.079% 0.0646595% County Calaveras County Calaveras 0.226% 0.277% 0.2351644%County Colusa County Colusa 0.059% 0.0489221%County Contra Costa County Contra Costa 2.102% 2.571% 2.1844585% City Antioch Contra Costa 0.037% 0.0301879%City Brentwood Contra Costa 0.026% 0.0215339%City Clayton Contra Costa 0.002% 0.0018060%City Concord Contra Costa 0.055% 0.0456676%City Danville Contra Costa 0.010% 0.0082255%City El Cerrito Contra Costa 0.023% 0.0189024%City Hercules Contra Costa 0.010% 0.0078273% 1 of 15
APPENDIX 1
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% 2 of 15
APPENDIX 1
Participating
Subdivision
Classification
Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Arcata Humboldt 0.054% 0.0447660%City Eureka Humboldt 0.117% 0.143% 0.1216284%City Fortuna Humboldt 0.032% 0.0266837% County Imperial County Imperial 0.258% 0.315% 0.2679006% City Brawley Imperial 0.011% 0.0087986%City Calexico Imperial 0.019% 0.0152799%City El Centro Imperial 0.158% 0.1302522%City Imperial 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% 3 of 15
APPENDIX 1
Participating
Subdivision
Classification
Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Agoura Hills Los Angeles 0.005% 0.0040024%City Alhambra Los Angeles 0.042% 0.0343309%City Arcadia Los Angeles 0.033% 0.0267718%City Artesia Los Angeles 0.001% 0.0005100%City Azusa Los Angeles 0.026% 0.0210857%City Baldwin Park Los Angeles 0.027% 0.0218520%City Bell Los Angeles 0.008% 0.0068783%City Bellflower Los Angeles 0.002% 0.0014485%City Bell Gardens Los Angeles 0.014% 0.0114301%City Beverly Hills Los Angeles 0.065% 0.0534897%City Burbank Los Angeles 0.100% 0.0823132%City Calabasas Los Angeles 0.006% 0.0048948%City Carson Los Angeles 0.019% 0.0159805%City Cerritos Los Angeles 0.005% 0.0039682%City Claremont Los Angeles 0.010% 0.0082584%City Commerce Los Angeles 0.000% 0.0002971%City Compton Los Angeles 0.044% 0.0361882%City Covina Los Angeles 0.028% 0.0229127%City Cudahy Los Angeles 0.001% 0.0006020%City Culver City Los Angeles 0.055% 0.0449894%City Diamond Bar Los Angeles 0.001% 0.0006993%City Downey Los Angeles 0.052% 0.0429994%City Duarte Los Angeles 0.003% 0.0027261%City El Monte Los Angeles 0.031% 0.038% 0.0318985%City El Segundo Los Angeles 0.033% 0.0268020%City Gardena Los Angeles 0.034% 0.0278088%City Glendale Los Angeles 0.166% 0.1366586%City Glendora Los Angeles 0.016% 0.0134411%City Hawaiian Gardens Los Angeles 0.005% 0.0040549%City Hawthorne Los Angeles 0.050% 0.0407833% 4 of 15
APPENDIX 1
Participating
Subdivision
Classification
Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Hermosa Beach Los Angeles 0.018% 0.0145307%City Huntington Park Los Angeles 0.023% 0.0190667%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% 5 of 15
APPENDIX 1
Participating
Subdivision
Classification
Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City San Dimas Los Angeles 0.003% 0.0022016%City San Fernando Los Angeles 0.013% 0.0104837%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%
6 of 15
APPENDIX 1
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% 7 of 15
APPENDIX 1
Participating
Subdivision
Classification
Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Fountain Valley Orange 0.055% 0.0455980%City Fullerton Orange 0.137% 0.168% 0.1425744%City Garden Grove Orange 0.213% 0.1752482%City Huntington Beach Orange 0.247% 0.302% 0.2568420%City Irvine Orange 0.139% 0.170% 0.1442350%City Laguna Beach Orange 0.047% 0.058% 0.0493043%City Laguna Hills Orange 0.014% 0.0115457%City Laguna Niguel Orange 0.001% 0.0007071%City Laguna Woods Orange 0.001% 0.0006546%City La Habra Orange 0.060% 0.073% 0.0621049%City Lake Forest Orange 0.012% 0.0101249%City La Palma Orange 0.012% 0.0095439%City Los Alamitos Orange 0.008% 0.0069190%City Mission Viejo Orange 0.014% 0.0117560%City Newport Beach Orange 0.179% 0.1470134%City Orange Orange 0.150% 0.1231320%City Placentia Orange 0.029% 0.035% 0.0298912%City Rancho Santa Margarita Orange 0.001% 0.0006296%City San Clemente Orange 0.008% 0.010% 0.0086083%City San Juan Capistrano Orange 0.008% 0.0065510%City Santa Ana Orange 0.502% 0.614% 0.5213866%City Seal Beach Orange 0.020% 0.0165891%City Stanton Orange 0.035% 0.0291955%City Tustin Orange 0.073% 0.0600341%City Westminster Orange 0.104% 0.127% 0.1082721%City Yorba Linda Orange 0.044% 0.0362223% County Placer County Placer 1.045% 1.278% 1.0861002%
City Auburn Placer 0.017% 0.0141114%City Lincoln Placer 0.031% 0.0255599%City Rocklin Placer 0.076% 0.0625485% 8 of 15
APPENDIX 1
Participating
Subdivision
Classification
Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Roseville Placer 0.196% 0.1616559%
County Plumas County Plumas 0.205% 0.251% 0.2128729%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% 9 of 15
APPENDIX 1
Participating
Subdivision
Classification
Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Citrus Heights Sacramento 0.057% 0.0465312%City Elk Grove Sacramento 0.130% 0.1066994%City Folsom Sacramento 0.108% 0.0890850%City Galt Sacramento 0.017% 0.0143704%City Rancho Cordova Sacramento 0.008% 0.0067679%City Sacramento Sacramento 0.721% 0.882% 0.7496530% County San Benito County San Benito 0.106% 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% 10 of 15
APPENDIX 1
Participating
Subdivision
Classification
Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Yucca Valley San Bernardino 0.003% 0.0021228%
County San Diego County San Diego 5.706% 6.980% 5.9309748% City Carlsbad San Diego 0.128% 0.1050485%City Chula Vista San Diego 0.189% 0.231% 0.1961456%City Coronado San Diego 0.044% 0.0359095%City El 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% 11 of 15
APPENDIX 1
Participating
Subdivision
Classification
Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City El Paso de Robles (Paso Robles) San Luis Obispo 0.043% 0.0353456%City Grover Beach San Luis 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% 12 of 15
APPENDIX 1
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% 13 of 15
APPENDIX 1
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% 14 of 15
APPENDIX 1
Participating
Subdivision
Classification
Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Oxnard Ventura 0.156% 0.190% 0.1617338%City Port Hueneme Ventura 0.021% 0.0174145%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%
15 of 15
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 paid or incurred (i) prior to July 21, 2021 in litigation against any Opioid Defendant and/or (ii) in negotiating and drafting this CA Janssen Allocation Agreement. 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 Distributor Settlement Agreement or Section XI and Exhibit R of the Janssen 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 a National Opioid Settlement with Distributors, Johnson & Johnson, and others.
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 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 2 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. 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 VI.B.2 of the Janssen Agreement.
vii. A member of the Plaintiff Subdivision Committee, which is a CA Participating Subdivision, will submit to the Settlement Fund Administrator and Janssen a report 3 of the fees and expenses incurred by the Special Master pursuant to Section VI.B.2 of the Janssen 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 Distributor Settlement Agreement and the Janssen 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 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. 4 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. 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 Janssen 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 Janssen Settlement Agreement.
Pursuant to this Backstop Agreement, [SUBDIVISION] may, subject to the limitations of the Janssen Settlement Agreement and CA Janssen Allocation Agreement, as well as any other limitations imposed by law, use funds that it receives from the Janssen 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 Distributors Settlement.
[COUNSEL] certify that they first sought fees and costs from the Attorney Fee Fund created under the Janssen 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 Janssen 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]
1 Settlement Participation Form
Governmental Entity: Imperial city State: CA
Authorized Signatory: /officialname/
Address 1: /address1/
Address 2: /address2/
City, State, Zip: /cit/ /state/ /zi/
Phone: /Phone/
Email: /email/
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 July 21, 2021 (“Janssen Settlement”), and acting through the undersigned authorized official, hereby elects to participate in the Janssen Settlement, release all Released Claims against all Released Entities, and agrees as follows.
1. The Governmental Entity is aware of and has reviewed the Janssen 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 Janssen Settlement and become a Participating Subdivision as provided therein.
2. The Governmental Entity shall, within 14 days of the Reference Date and prior to the filing of the Consent Judgment, dismiss with prejudice any Released Claims that it has filed.
3. The Governmental Entity agrees to the terms of the Janssen Settlement pertaining to Subdivisions as defined therein.
4. By agreeing to the terms of the Janssen 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 Janssen Settlement solely for the purposes provided therein.
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 Janssen Settlement.
7. The Governmental Entity has the right to enforce the Janssen Settlement as provided therein.
2 8. The Governmental Entity, as a Participating Subdivision, hereby becomes a Releasor for all purposes in the Janssen Settlement, including but not limited to all provisions of Section IV (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 Janssen 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 Janssen Settlement shall be a complete bar to any Released Claim.
9. In connection with the releases provided for in the Janssen 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 Janssen Settlement.
10. Nothing herein is intended to modify in any way the terms of the Janssen Settlement, to which Governmental Entity hereby agrees. To the extent this Election and Release is interpreted differently from the Janssen Settlement in any respect, the Janssen Settlement controls.
3 I swear under penalty of perjury that I have all necessary power and authorization to execute this Election and Release on behalf of the Governmental Entity.
Signature: /signer_1/
Name: /name_1/
Title: /title_1/
Date: /date_1/
1 Proposed California State-Subdivision Agreement
Regarding Distribution and Use of
Settlement Funds – Janssen Settlement
1. Introduction
Pursuant to the Janssen Settlement Agreement, dated as of July 21, 2021, and any revision thereto (the “Janssen Settlement Agreement”), including Section VI and Exhibit O, the State of California proposes this agreement (the “CA Janssen Allocation Agreement”) to govern the allocation, distribution, and use of Settlement Fund payments made to California pursuant to Sections V and VI of the Janssen Settlement Agreement.
1 For the avoidance of doubt, this
agreement does not apply to payments made pursuant to Sections X or XI of the Janssen Settlement Agreement.
Pursuant to Exhibit O, Paragraph 4, of the Janssen Settlement Agreement, acceptance of this CA Janssen 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 Janssen Settlement Agreement. b) Distributor Settlement Agreement means the Distributor Settlement Agreement dated July 21, 2021, and any revision thereto.
c) 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, and LA Care Health Plan.
d) 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. e) Opioid Defendant means any defendant (including but not limited to Johnson & Johnson, Janssen Pharmaceuticals, Inc., Purdue Pharma L.P., Cardinal Health, Inc., 1 A parallel but separate agreement (the “CA Distributor Allocation Agreement”) will govern the allocation, distribution, and use of settlement fund payments under the Distributor Settlement Agreement. An eligible Subdivision may elect to participate in either the Distributor Settlement or the Janssen Settlement, or in both.
2 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 Janssen Settlement Agreement, as well as applicable law, and the Janssen Settlement Agreement governs over any inconsistent provision of this CA Janssen Allocation Agreement. Terms used in this CA Janssen Allocation Agreement have the same meaning as in the Janssen Settlement Agreement unless otherwise defined herein.
Pursuant to Section VI(D)(1) of the Janssen Settlement Agreement, (a) all Settlement Fund payments will be used for Opioid Remediation, except as allowed by Section VI(B)(2) of the Janssen 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,
2 pursuant to the Janssen 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 Janssen 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 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. 3 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 Janssen 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 Janssen 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 Janssen Settlement Agreement and this CA Janssen 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.
4 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 Janssen 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 Janssen 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 Janssen Settlement Agreement and this CA Janssen 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.
5 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 Janssen Settlement Agreement and this CA Janssen Allocation Agreement.
b) If DHCS determines that a CA Participating Subdivision’s use of CA Abatement Accounts Funds is inconsistent with the Janssen Settlement Agreement or this CA Janssen 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 Janssen Settlement Agreement or this CA Janssen 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 Janssen Settlement Agreement and this CA Janssen 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. 6 The CA Subdivision Funds will be allocated as follows:
a) First, funds in the CA Subdivision Fund shall be used to pay the Special Master’s reasonable fees and expenses in accordance with the procedures and limitations set forth in Appendix 2 to this document;
b) Second, funds will be allocated to Plaintiff Subdivisions that are Initial Participating Subdivisions that have been awarded Costs, as defined by and in accordance with the procedures and limitations set forth in Appendix 2 to this document. c) Funds remaining in the CA Subdivision Fund, which shall consist of no less than 50% of the total CA Subdivision Fund received in any year pursuant to Appendix 2, Section 2.c.v, will be distributed to Plaintiff Subdivisions that are Initial Participating Subdivisions, in relative proportion to the Local Allocation. These funds shall be used to fund future opioid-related projects and to reimburse past opioid-related expenses, which may include fees and expenses related to litigation against any Opioid Defendant.
D. Provision for State Back-Stop Agreement
On August 6, 2021, Judge Dan Polster of the U.S. District Court, Northern District of Ohio, Eastern Division, issued an order (ECF Docket Number 3814) (“MDL Fees Order”) in the National Prescription Opiate Litigation (MDL No. 2804) “cap[ping] all applicable contingent fee agreements at 15%.” Private counsel representing Plaintiff Subdivisions should seek its contingency fees and costs from the Attorney Fee Fund or Cost Funds under the Janssen Settlement Agreement and, if applicable, the Distributor 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(R), of the Janssen 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 Janssen Settlement, and if applicable, the Distributor 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 Janssen Settlement Agreement and, if applicable, the Distributor 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 7 General will also consider requests from Plaintiff Subdivisions to execute and enter into agreements presented in other forms.
For the avoidance of doubt, this agreement does not require a Plaintiff Subdivision to request or enter into a State Back-Stop Agreement, and no State Back-Stop Agreement shall impose any duty or obligation on the State of California or any of its agencies or officers, including without limitation the Attorney General.
5. State and Subdivision Reporting
a) DHCS will prepare an annual written report regarding the State’s use of funds from the settlement until those funds are fully expended and for one year thereafter. These reports will be made publicly available on the DHCS web site.
b) Each CA Participating Subdivision that receives payments of funds from the settlement will prepare written reports at least annually regarding the use of those funds, until those funds are fully expended and for one year thereafter. These reports will also include a certification that all funds that the CA Participating Subdivision has received through the settlement have been used in compliance with the Janssen Settlement Agreement and this CA Janssen 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 Janssen Settlement Agreement and this CA Janssen 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 VI(B)(2) of the Janssen Settlement Agreement, such information must also be reported to the Settlement Fund Administrator and Janssen. 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.
8 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 Janssen 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 Janssen Settlement Agreement, this CA Janssen 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 Janssen 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 Janssen Settlement Agreement, this agreement shall be governed by and interpreted in accordance with the laws of California.
The undersigned, Imperial city, ACKNOWLEDGES acceptance of this Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds - Janssen Settlement is a requirement to be an Initial Participating Subdivision in the Janssen Settlement and ACCEPTS this Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds - Janssen Settlement.
I swear under penalty of perjury that I have all necessary power and authorization to execute this Election and Release on behalf of the Governmental Entity.
Signature: /signer_1/
Name: /name_1/
Title: /title_1/
Date: /date_1/
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—Janssen 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.
APPENDIX 1
100.000% 100.000% 100.000%
Participating
Subdivision
Classification
Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage County Alameda County Alameda 2.332% 2.853% 2.4237952%
City Alameda Alameda 0.069% 0.0570162%City Albany Alameda 0.013% 0.0107768%City Berkeley Alameda 0.152% 0.1249656%City Dublin Alameda 0.033% 0.040% 0.0338810%City Emeryville Alameda 0.023% 0.0185765%City Fremont Alameda 0.108% 0.0888576%City Hayward Alameda 0.117% 0.0966218%City Livermore Alameda 0.054% 0.0446740%City Newark Alameda 0.026% 0.0217626%City Oakland Alameda 0.486% 0.595% 0.5055601%City Piedmont Alameda 0.014% 0.0114064%City Pleasanton Alameda 0.067% 0.0554547%City San Leandro Alameda 0.039% 0.0321267%City Union City Alameda 0.043% 0.0352484% County Amador County Amador 0.226% 0.277% 0.2349885%County Butte County Butte 1.615% 1.975% 1.6783178% City Chico Butte 0.216% 0.264% 0.2246499%City Oroville Butte 0.079% 0.0646595% County Calaveras County Calaveras 0.226% 0.277% 0.2351644%County Colusa County Colusa 0.059% 0.0489221%County Contra Costa County Contra Costa 2.102% 2.571% 2.1844585% City Antioch Contra Costa 0.037% 0.0301879%City Brentwood Contra Costa 0.026% 0.0215339%City Clayton Contra Costa 0.002% 0.0018060%City Concord Contra Costa 0.055% 0.0456676%City Danville Contra Costa 0.010% 0.0082255%City El Cerrito Contra Costa 0.023% 0.0189024%City Hercules Contra Costa 0.010% 0.0078273% 1 of 15
APPENDIX 1
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% 2 of 15
APPENDIX 1
Participating
Subdivision
Classification
Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Arcata Humboldt 0.054% 0.0447660%City Eureka Humboldt 0.117% 0.143% 0.1216284%City Fortuna Humboldt 0.032% 0.0266837% County Imperial County Imperial 0.258% 0.315% 0.2679006% City Brawley Imperial 0.011% 0.0087986%City Calexico Imperial 0.019% 0.0152799%City El Centro Imperial 0.158% 0.1302522%City Imperial 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% 3 of 15
APPENDIX 1
Participating
Subdivision
Classification
Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Agoura Hills Los Angeles 0.005% 0.0040024%City Alhambra Los Angeles 0.042% 0.0343309%City Arcadia Los Angeles 0.033% 0.0267718%City Artesia Los Angeles 0.001% 0.0005100%City Azusa Los Angeles 0.026% 0.0210857%City Baldwin Park Los Angeles 0.027% 0.0218520%City Bell Los Angeles 0.008% 0.0068783%City Bellflower Los Angeles 0.002% 0.0014485%City Bell Gardens Los Angeles 0.014% 0.0114301%City Beverly Hills Los Angeles 0.065% 0.0534897%City Burbank Los Angeles 0.100% 0.0823132%City Calabasas Los Angeles 0.006% 0.0048948%City Carson Los Angeles 0.019% 0.0159805%City Cerritos Los Angeles 0.005% 0.0039682%City Claremont Los Angeles 0.010% 0.0082584%City Commerce Los Angeles 0.000% 0.0002971%City Compton Los Angeles 0.044% 0.0361882%City Covina Los Angeles 0.028% 0.0229127%City Cudahy Los Angeles 0.001% 0.0006020%City Culver City Los Angeles 0.055% 0.0449894%City Diamond Bar Los Angeles 0.001% 0.0006993%City Downey Los Angeles 0.052% 0.0429994%City Duarte Los Angeles 0.003% 0.0027261%City El Monte Los Angeles 0.031% 0.038% 0.0318985%City El Segundo Los Angeles 0.033% 0.0268020%City Gardena Los Angeles 0.034% 0.0278088%City Glendale Los Angeles 0.166% 0.1366586%City Glendora Los Angeles 0.016% 0.0134411%City Hawaiian Gardens Los Angeles 0.005% 0.0040549%City Hawthorne Los Angeles 0.050% 0.0407833% 4 of 15
APPENDIX 1
Participating
Subdivision
Classification
Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Hermosa Beach Los Angeles 0.018% 0.0145307%City Huntington Park Los Angeles 0.023% 0.0190667%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% 5 of 15
APPENDIX 1
Participating
Subdivision
Classification
Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City San Dimas Los Angeles 0.003% 0.0022016%City San Fernando Los Angeles 0.013% 0.0104837%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%
6 of 15
APPENDIX 1
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% 7 of 15
APPENDIX 1
Participating
Subdivision
Classification
Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Fountain Valley Orange 0.055% 0.0455980%City Fullerton Orange 0.137% 0.168% 0.1425744%City Garden Grove Orange 0.213% 0.1752482%City Huntington Beach Orange 0.247% 0.302% 0.2568420%City Irvine Orange 0.139% 0.170% 0.1442350%City Laguna Beach Orange 0.047% 0.058% 0.0493043%City Laguna Hills Orange 0.014% 0.0115457%City Laguna Niguel Orange 0.001% 0.0007071%City Laguna Woods Orange 0.001% 0.0006546%City La Habra Orange 0.060% 0.073% 0.0621049%City Lake Forest Orange 0.012% 0.0101249%City La Palma Orange 0.012% 0.0095439%City Los Alamitos Orange 0.008% 0.0069190%City Mission Viejo Orange 0.014% 0.0117560%City Newport Beach Orange 0.179% 0.1470134%City Orange Orange 0.150% 0.1231320%City Placentia Orange 0.029% 0.035% 0.0298912%City Rancho Santa Margarita Orange 0.001% 0.0006296%City San Clemente Orange 0.008% 0.010% 0.0086083%City San Juan Capistrano Orange 0.008% 0.0065510%City Santa Ana Orange 0.502% 0.614% 0.5213866%City Seal Beach Orange 0.020% 0.0165891%City Stanton Orange 0.035% 0.0291955%City Tustin Orange 0.073% 0.0600341%City Westminster Orange 0.104% 0.127% 0.1082721%City Yorba Linda Orange 0.044% 0.0362223% County Placer County Placer 1.045% 1.278% 1.0861002%
City Auburn Placer 0.017% 0.0141114%City Lincoln Placer 0.031% 0.0255599%City Rocklin Placer 0.076% 0.0625485% 8 of 15
APPENDIX 1
Participating
Subdivision
Classification
Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Roseville Placer 0.196% 0.1616559%
County Plumas County Plumas 0.205% 0.251% 0.2128729%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% 9 of 15
APPENDIX 1
Participating
Subdivision
Classification
Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Citrus Heights Sacramento 0.057% 0.0465312%City Elk Grove Sacramento 0.130% 0.1066994%City Folsom Sacramento 0.108% 0.0890850%City Galt Sacramento 0.017% 0.0143704%City Rancho Cordova Sacramento 0.008% 0.0067679%City Sacramento Sacramento 0.721% 0.882% 0.7496530% County San Benito County San Benito 0.106% 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% 10 of 15
APPENDIX 1
Participating
Subdivision
Classification
Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Yucca Valley San Bernardino 0.003% 0.0021228%
County San Diego County San Diego 5.706% 6.980% 5.9309748% City Carlsbad San Diego 0.128% 0.1050485%City Chula Vista San Diego 0.189% 0.231% 0.1961456%City Coronado San Diego 0.044% 0.0359095%City El 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% 11 of 15
APPENDIX 1
Participating
Subdivision
Classification
Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City El Paso de Robles (Paso Robles) San Luis Obispo 0.043% 0.0353456%City Grover Beach San Luis 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% 12 of 15
APPENDIX 1
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% 13 of 15
APPENDIX 1
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% 14 of 15
APPENDIX 1
Participating
Subdivision
Classification
Participating Subdivision County Abatement Percentage Plaintiff Subdivision Percentage Weighted Allcation Percentage City Oxnard Ventura 0.156% 0.190% 0.1617338%City Port Hueneme Ventura 0.021% 0.0174145%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%
15 of 15
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 paid or incurred (i) prior to July 21, 2021 in litigation against any Opioid Defendant and/or (ii) in negotiating and drafting this CA Janssen Allocation Agreement. 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 Distributor Settlement Agreement or Section XI and Exhibit R of the Janssen 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 a National Opioid Settlement with Distributors, Johnson & Johnson, and others.
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 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 2 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. 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 VI.B.2 of the Janssen Agreement.
vii. A member of the Plaintiff Subdivision Committee, which is a CA Participating Subdivision, will submit to the Settlement Fund Administrator and Janssen a report 3 of the fees and expenses incurred by the Special Master pursuant to Section VI.B.2 of the Janssen 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 Distributor Settlement Agreement and the Janssen 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 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. 4 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. 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 Janssen 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 Janssen Settlement Agreement.
Pursuant to this Backstop Agreement, [SUBDIVISION] may, subject to the limitations of the Janssen Settlement Agreement and CA Janssen Allocation Agreement, as well as any other limitations imposed by law, use funds that it receives from the Janssen 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 Distributors Settlement.
[COUNSEL] certify that they first sought fees and costs from the Attorney Fee Fund created under the Janssen 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 Janssen 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]