APPENDIX
APPENDIX
64
APPENDIX
APPENDIX
65 APPENDIX C – RAMP REINFORCEMENT LIMITS EXHIBIT
APPENDIX
APPENDIX
66 APPENDIX D – DAVIS-BACON WAGE DETERMINATION
RESOLUTION NO. 11309 (2022 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, APPROVING THE 2023 COMMUNITY
DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM
WHEREAS, City of San Luis Obispo is a participating jurisdiction in the San Luis Obispo Urban County, along with the cities of Arroyo Grande, Atascadero, Morro Bay, Paso Robles, Pismo Beach, and the County of San Luis Obispo; and WHEREAS, said cities and County cooperatively administer several federal grant programs under the provisions of the 2021-2023 Cooperative Agreement between the City and County dated July 7, 2020, and under applicable U.S. Department of Housing and Urban Development Department (HUD) rules; and
WHEREAS, pursuant to said agreement, the Urban County Public Participation Plan, and HUD rules, the City Council held a public hearing on March 1, 2022, to consider funding recommendations by the Human Relations Commission ( HRC), to review applications for federal grant funding, and to consider public comments on community needs and the use of such funds; and
WHEREAS, the Council has considered applications for Community Development Block Grant ( CDBG) funds, public testimony, the Urban County’s proposed One-Year Action Plan, and the HRC and staff recommendations included in the agenda report; and NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows:
SECTION 1. Environmental Determination. The project is exempt from environmental review per CEQA Guidelines under the General Rule ( Section 15061(b)(3)). It can be seen with certainty that CDBG funding allocations could not have a significant effect on the environment and that projects would be reviewed separately during the entitlement and/or permitting phase.
SECTION 2. 2022-23 Community Development Block Grant Program Amendments. The City’s 2022-23 Community Development Block Grant Program is hereby approved. The Community Development Director is authorized to approve final dollar amounts once HUD releases allocations with the direction to make up differences in the two amounts.
SECTION 3. Board of Supervisors Consideration. The Council hereby forwards the above actions to the San Luis Obispo County Board of Supervisors for consideration prior to the Board’s final action on the Urban County’s 2022-23 Consolidated Plan.
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SECTION 4. Community Development Director Authority. The Community Development Director is authorized to act on behalf of the City in executing grant agreements and other actions necessary to implement the approved Consolidated Plan and CDBG Program, including revisions to funding amounts for the 2022-23 CDBG Program if the City’s actual CDBG allocation is different than expected.
Upon motion of Council Member Marx, seconded by Vice Mayor Christianson, and on the following roll call vote:
AYES: Council Member Marx, Council Member Pease, Council Member Shoresman, Vice Mayor Christianson, and Mayor Stewart
NOES: None
ABSENT: None
The foregoing resolution was adopted this 1st day of March 2022.
Mayor EricaA. Stewart
ATTEST:
Teresa Purington
City Clerk
APPROVED AS TO FORM:
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ___________________________.
Teresa Purington
CityClerk
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SUBRECIPIENT AGREEMENT FOR 2022 COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS
BETWEEN
THE COUNTY OF SAN LUIS OBISPO AND THE CITY OF SAN LUIS OBISPO THIS SUBRECIPIENT AGREEMENT FOR 2022 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) FUNDS BETWEEN THE COUNTY OF SAN LUIS OBISPO AND THE CITY OF SAN LUIS OBISPO (“Agreement”) is made and entered into on the date and year last written below by and between the County of San Luis Obispo, a political subdivision of the State of California, hereinafter called “Recipient,” and the City of San Luis Obispo, a municipal corporation in the State of California, located in the County of San Luis Obispo, hereinafter called “Subrecipient”; jointly referred to as “Parties.”
WITNESSETH
WHEREAS, the Subrecipient applied for 2022 CDBG funds to support the Curb Ramp Improvement Project (hereinafter called “Project”); and WHEREAS, the Recipient and the Subrecipient entered into an Agreement to implement the Housing and Community Development (HCD) Act of 1974, herein called the “Act”. Said Act is omnibus legislation relating to federal involvement in a wide range of housing and community development activities and is administered by the federal Department of Housing and Urban Development (hereinafter "HUD"); and
WHEREAS, on April 19, 2021, the County of San Luis Obispo Board of Supervisors approved the County of San Luis Obispo (County) Program Year 2022 Action Plan of the Consolidated Plan and projected use of funds pursuant to applicable federal regulations (24 CFR Part 570) (hereinafter referred to as the “2022 Action Plan”); and
WHEREAS, this agreement shall remain in effect throughout the implementation of projects specified in the Urban County of San Luis Obispo’s Program Year 2022 Action Plan of the 2020 Consolidated Plan (Federal Award Identification #B-22-UC-06-0508) and any amendments thereto; and WHEREAS, the Federal Award date identified in the Grant Agreement for the 2022 CDBG funds is September 20, 2022; and
WHEREAS, the Recipient completed the necessary federal environmental review documents per 24 CFR Part 58 to account for all CDBG funds allocated to the Project; and WHEREAS, the Parties desire to enter into this Agreement to govern the use of the CDBG funds for the Project; and
NOW, THEREFORE, it is agreed between the parties hereto that:
This Agreement sets forth the responsibilities of the Recipient and the Subrecipient accomplishing the objectives of the Community Development Block Grant (CDBG) program (CFDA Title #14.218) as set forth in the HCD Act.
1. Scope of Work. County hereby engages Subrecipient to perform, and Subrecipient hereby agrees to perform for the County, the services set forth in Exhibit A, attached hereto and incorporated herein by reference, all pursuant to the terms and conditions hereinafter set forth.
2. Compensation. Subrecipient shall be compensated by County for performing said work in accordance with Exhibit B, attached hereto and incorporated herein by reference.
3. Effective Date and Duration. The effective date and duration of this Agreement shall be as set forth in Exhibit C, attached hereto and incorporated herein by reference.
4. General Conditions. Subrecipient and County shall comply with all provisions of County’s General Conditions as set forth in Exhibit D, attached hereto and incorporated herein by reference.
5. Special Conditions. Subrecipient and County shall comply with all provisions of County’s Special Conditions as set forth in Exhibit E, attached hereto and incorporated herein by reference. In the event of conflicts between the provisions of the General Conditions and the Special Conditions, the provisions of the Special Conditions shall be controlling.
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6. Lobbying Form and Disclosure. Subrecipient shall document its compliance with certifications and disclosure as required under the lobbying and disclosure requirements, as set forth in Exhibit G, attached hereto and incorporated herein by reference.
7. Agreement Signatures. This Agreement may be executed in counterparts, each of which shall be deemed to be an original, but all of which, when taken together, shall constitute one and the same agreement. This Contract may be executed and delivered by facsimile or scanned signature by any of the Parties and the receiving Party may rely on the receipt of such document so executed and delivered by facsimile or email as if the original had been received.
IN WITNESS WHEREOF, the Parties have executed this Agreement on the day and the year set forth below.
THE CITY OF SAN LUIS OBISPO, a California municipal corporation BY: ________________________________
Michael Codron, Community Development Director
DATED: ________________
BY: ________________________________
Teresa Purrington, City Clerk
DATED: ________________
ATTEST:
APPROVED AS TO FORM:
CITY OF SAN LUIS OBISPO, J. CHRISTINE DIETRICK
CITY ATTORNEY
BY: ________________________________
City Attorney
DATED: ________________
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2/6/2023
2/6/2023
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COUNTY OF SAN LUIS OBISPO, A Public Entity in the State of California BY: ________________________________
Devin Drake
Director, Department of Social Services
DATED: ________________
APPROVED AS TO FORM AND EFFECT:
RITA L. NEAL
County Counsel
BY: ________________________________
Deputy County Counsel
DATED: ________________
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EXHIBIT A
SCOPE OF WORK
Community Development Block Grant Program. Pursuant to 24 CFR 200, 24 CFR 570.500(c) and 24 CFR 570.501(b), the Recipient may provide CDBG funds to public or private nonprofit agencies, authorities or organizations, or for-profit entities authorized under 570.201(o) (referred to collectively and individually as “subrecipients”) to be used by the subrecipients to provide certain eligible services in connection with the Recipient’s desire to develop viable urban communities, through community development activities, as specified in 24 CFR 570.200 (“CDBG Program”); and
Curb Ramp Improvements:
i. The project encompasses construction of curb ramps to provide accessibility improvements. This includes construction of new curb ramps at intersections ii. Project Type. Public Facilities 24 CFR 570.201(c)
iii. National Objective. Per 24 CFR 570.208, this project meets the following National Objective: Low/Mod Income – Area Benefit
iv. Client Documentation. The subrecipient shall utilize the census tract(s) for which the project is in to document each client served.
v. Schedule. The following milestones will occur on the identified date(s).
1. Design: July 2022 – March 2023
2. Advertisement: March 2023 – May 2023
3. Construction: May 2023 – July 2023
vi. Reporting. The Subrecipient is responsible for submitting Progress Reports (HSG-1008), not less than once quarterly (Q1: July-Sept, Q2: Oct-Dec, Q3: Jan-Mar, Q4: Apr-Jun), by the 15th day of the month following the end of the quarter, identifying milestones achieved and/or barriers encountered. Progress Report submittals are requested each quarter to ensure reimbursement. The final Progress Report must be submitted with the final Payment Request to allow the Recipient to meet federal reporting requirements. The Subrecipient’s failure to comply with this requirement could result in forfeit of funds.
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EXHIBIT B
COMPENSATION
1. Compensation
a. Prior to commencement of services, Subrecipient shall provide a valid, current taxpayer ID number to:
County of San Luis Obispo Auditor/Controller
1055 Monterey Street, Room D220
San Luis Obispo, CA 93408
County shall pay to Subrecipient, as compensation in full for all services performed by Subrecipient pursuant to this contract, the following sums in the following manner:
i. County’s Maximum Cost of the Agreement for Services. a. Subrecipient understands that the County shall not expend more than $385,483 for all services under this agreement.
b. Subrecipient has submitted a program budget that has been accepted as follows:
c. Subrecipient shall submit a line-item budget for each type of activity. Said budget shall be subject to approval by the County.
d. Line-item budget adjustments may be requested by Subrecipient and shall be subject to approval by the County. If the line-item budget adjustment does not increase the contract maximum, an agreement amendment will not be required, only written approval by the County will be required. If the line-item budget adjustment causes the agreement maximum to be exceeded, then an agreement amendment will be required.
ii. If applicable, should both Parties exercise the right to extend this Agreement as described in Exhibit C, the maximum fund amount for this Agreement in total per extended term is identical to the maximum fund amount in FY 2022–23 pursuant to section 5 of Exhibit C, Option to Extend.
2. Billing
a. Subrecipient shall bill County for services provided under this agreement as follows:
i. Subrecipient shall submit to County a quarterly payment request by the 15th day of the month following the quarter for which Subrecipient is billing. ii. Subrecipient shall include only actual expenses for the quarter for which Subrecipient is billing and Subrecipient’s submitted quarterly expense report shall include budget line item(s) and type of activity or activities provided.
3. Documentation. The Subrecipient must keep documentation showing that CDBG funds were spent on allowable costs in accordance with the requirements for eligible activities under 24 CFR 570.200 through 570.210, financial management in 2 CFR 200.302, and the cost principles in 2 CFR 200, Subpart E.
a. Timecard tracking for each employee shall be true to hours worked on the Project and not a percentage allocation. Subrecipients are required to specify time spent working on the project within the documentation.
b. Documentation indicating income eligibility and method of review are required to be kept in each project file and should be made available to HUD, or the Recipient, upon request.
Curb Ramp Improvements
Design Phase (Design and Survey) $ 50,000.00
Construction Phase $ 465,483.00
City Funding $ 130,000.00
TOTAL BUDGET $ 515,483.00
TOTAL CDBG BUDGET $ 385,483.00
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4. Payments
a. County shall, within thirty (30) days following receipt of a complete payment request meeting all criteria in this Agreement, pay the undisputed charges on the request. If there are any disputed charges on the payment request, County shall include an explanation of the nature of the dispute with the payment for the undisputed charges and shall provide Subrecipient with a Notice of Adverse Beneficiary Determination, if applicable. The Parties shall exchange any information needed to resolve the dispute within a reasonable time. b. Absent fraud or mistake on the part of the County or HUD, the determination by the County and HUD of allowance of any expenditure shall be final.
5. Withholding Payment
a. In addition to withholding payment due to disputed charges on a payment request, County shall have the right to withhold payment to Subrecipient under any of the following conditions:
i. Subrecipient has not documented or has not sufficiently documented Subrecipient’s services according to client records standards of the industry and any special requirements needed by third party payors or federal or state funding agencies. ii. Subrecipient has failed or refused to furnish information or cooperate with any inspection, review or audit of Subrecipient’s program or County’s use of Subrecipient’s program. This includes interviews and/or reviews of records in any form of information storage.
iii. Subrecipient has failed to sufficiently itemize or document an itemized payment request.
iv. When in the opinion of County and expressed by County to Subrecipient in writing, Subrecipient’s performance, in whole or in part, has not been sufficiently documented.
6. Reimbursement of Improper Expenditures. If at any time within applicable statutory periods of limitation it is determined by County or by HUD or its duly authorized representatives, or by the United States Secretary of Treasury or his duly authorized representatives that funds provided for under the terms of this Agreement have been used by or on behalf of Subrecipient in a manner or for purposes not authorized or prohibited by 24 CFR Part 570), or by regulations adopted pursuant thereto, Subrecipient shall, at County's request, pay to County an amount equal to one hundred percent of the amount improperly expended.
7. Uniform Administrative Requirements, if applicable
a. Subrecipient understands that this Agreement may be funded in part by Federal Grants and, as such, Subrecipient must perform in accordance with the Uniform Administrative Requirements for Federal Awards, codified in 2 CFR section 200.331. i. Subrecipient shall participate in regularly scheduled agreement monitoring designed to review various aspects of services including program and financial compliance issues in accordance with 2 CFR section 200.331. At a minimum, one (1) desk audit monitoring shall be completed by the County each program year in any one of the four (4) quarters. Monitoring shall include, at a minimum, a review of the following financial statements: Balance Sheet, Income Statement and Statement of Cash Flow. Subrecipient shall email financial statements for the desk audit within the timeframe identified in the County’s Notice of Monitoring. ii. Subrecipient shall ensure that their annual financial statements are audited by an independent audit firm and a copy is provided to County on an annual basis, no later than thirty (30) days after the completion of the audit.
8. Ineligible Costs. The City of Grover Beach is not a participating jurisdiction of the Urban County of San Luis Obispo. CDBG regulations do not allow the expenditure of CDBG funds for the benefit residents of, nor expend these funds within, the City of Grover Beach.
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EXHIBIT C
DURATION AND EFFECTIVE DATE
1. Effective Date. This Agreement shall be effective as of the date this Agreement is signed by County, and that signatory shall be the last to sign.
2. Service Date.
a. Services shall commence on or after October 28, 2022 and shall end upon the end of the duration date, as outlined in section 3 of this Exhibit, below. b. County specifically acknowledges that in anticipation of execution of this Agreement, services within the scope of this Agreement may have been provided in reliance on assurances that this Agreement would be executed by the Parties by October 28, 2022.
Pre-award costs, services may have been rendered from October 28, 2022, to the date the Parties are executing this Agreement, and which were intended in the best interest of the public health and welfare, must meet the requirements provided in the County’s grant agreement or other applicable HUD written approval of pre-award costs. County expressly authorizes the retroactive effective date under this Agreement to be October 28, 2022.
County also expressly authorizes payment for those services accepted by County at the same rates and under the same terms and conditions as stated in this Agreement, even though this Agreement is being signed after October 28, 2022. c. 24 CFR Part 58 prohibits the commitment or expenditure of HUD funds until the environmental review process has been completed and the subrecipient receives an “Ability to Obligate and Incur Costs” notice from the County. d. If any services from October 28, 2022 until the date of execution of this Agreement have been paid by a purchase order via County Purchasing Agent, that amount shall be deducted from the maximum allowed expenditure under Exhibit B of this Agreement.
3. Duration Date. This Agreement shall remain in effect from the effective date, stated in section 1 of this Exhibit, above, until July 30, 2023, unless terminated sooner pursuant to sections 6 or 7 of Exhibit D, or extended pursuant to section 5 of this Exhibit.
4. Final Payment Request Deadline. All payment requests are due to the Recipient by July 10, 2023.
Failure to submit final requests with complete documentation by the aforementioned date may result in forfeit of funds.
5. Option to Extend. The Director of the County Department of Social Services or his or her designee may, at his or her sole discretion, grant the Subrecipient up to two 180-day term extensions upon receipt of a written request from the Subrecipient, provided that the final end date of the term does not extend beyond 24 months after the effective date identified in this paragraph. Such extension must be requested no later than 45 days before the end date of the original term in the case of the first extension, and no later than 45 days before the end date of the first extension in the case of the second extension.
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EXHIBIT D
GENERAL CONDITIONS
1. General Compliance. The Subrecipient agrees to comply with the requirements of Title 24 of the Code of Federal Regulations, Part 570 (the U.S. Housing and Urban Development regulations concerning Community Development Block Grants (CDBG)) including subpart K of these regulations, except that (1) the Subrecipient does not assume the recipient’s environmental responsibilities described in 24 CFR 570.604 and (2) the Subrecipient does not assume the recipient’s responsibility for initiating the review process under the provisions of 24 CFR Part 52.
The Subrecipient also agrees to comply with all other applicable Federal, state, and local laws, regulations, and policies governing the funds provided under this Agreement. The Subrecipient further agrees to utilize funds available under this Agreement to supplement rather than supplant funds otherwise available.
2. Notices. All notices given or made pursuant hereto shall be in writing and shall be deemed to have been duly given if delivered personally, mailed by registered or certified mail (postage paid, return receipt requested) or sent by a nationally recognized overnight courier (providing proof of delivery) to the Parties at the following addresses or sent by electronic transmission to the following facsimile numbers:
a. The Recipient’s representative who shall be responsible for negations, contractual matters, and coordination with the Subrecipient is as follows:
i. Name and Title: Harlee Hopkins, Program Manager
Address: County of San Luis Obispo
Department of Social Services
976 Osos Street, Rm. 300
San Luis Obispo, CA 93408
Fax: (805) 781-5624
Telephone: (805) 781-4099
Email: [email protected]
b. The Subrecipient’s representative who shall be responsible for job performance, negotiations, contractual matters, and coordination with the County is as follows:
i. Name and Title: Owen Goode, Assistant Planner, City of SLO Address: 919 Palm Street
San Luis Obispo, CA 93401
Telephone: (805) 781-7576
Email: [email protected]
Entity DUNS: 09-899-2407
Entity UEI: VCUGK243NQ71
c. Any such notice shall be deemed to have been received:
i. In the case of personal delivery or facsimile transmission with confirmation retained, on the date of such delivery or transmission; or
ii. In the case of nationally recognized overnight courier, on the next business day after the date sent; or
iii. In the case of mailing, on the third business day following posting.
3. Environmental Review. 24 CFR Part 58 prohibits the commitment or expenditure of HUD funds until the environmental review process has been completed and the subrecipient receives an "Ability to Obligate and Incur Costs" notice from the County. Subrecipients may not spend either public or private project funds (HUD, other Federal or nonfederal funds), or execute a legally binding agreement for property acquisition, rehabilitation, conversion, repair or construction pertaining to a specific site until environmental clearance has been achieved. Subrecipients must avoid any and all actions that would preclude the selection of alternative choices before a final decision is made – that decision being based upon an understanding of the environmental consequences and actions that can protect, restore and enhance the human environment (i.e., the DocuSign Envelope ID: 7DBBE933-3FC3-4C29-8663-9B47FCA8217F DocuSign Envelope ID: 4FB98944-924B-4392-8D14-02CE3C536870
natural, physical, social and economic environment). Activities that have physical impacts or which limit the choice of alternatives cannot be undertaken, even with the subrecipient's or other project participant’s own funds, prior to obtaining environmental clearance.
Obligated and/or incurred project funds prior to the completion of all required local, state, and federal environmental laws will jeopardize the project’s eligibility to receive federal funds. Under federal law, the County of San Luis Obispo is not responsible for the award of funds nor the reimbursement of any project funds to the applicant/subrecipient and the County will reallocate the funds to another eligible project and applicant.
4. Independent Contractor. Nothing contained in this Agreement is intended to, or shall be construed in any manner, as creating or establishing the relationship of employer/employee between the parties. The Subrecipient shall at all times remain an “independent contractor” with respect to the services to be performed under this Agreement. The Recipient shall be exempt from payment of all Unemployment Compensation, FICA, retirement, life and/or medical insurance and Workers’ Compensation Insurance, as the Subrecipient is an independent contractor.
5. Indemnification. To the fullest extent permitted by law, Subrecipient shall indemnify, defend, and hold harmless the County and its officers, agents, employees, and volunteers from and against all claims, demands, damages, liabilities, loss, costs, and expense (including attorney’s fees and costs of litigation) of every nature arising out of or in connection with Subrecipient’s performance or attempted performance of any obligation or duty provided for or relating to this Agreement, except such loss or damage which was caused by sole negligence or willful misconduct of the County.
6. Recipient Recognition. The Subrecipient shall insure recognition of the role of the Recipient in providing services through this Agreement. All activities, facilities and items utilized pursuant to this Agreement shall be prominently labeled as to funding source. In addition, the Subrecipient will include a reference to the support provided herein in all publications made possible with funds made available under this Agreement.
7. Severability. If any provision of this Agreement is held invalid, the remainder of the Agreement shall not be affected thereby, and all other parts of this Agreement shall nevertheless be in full force and effect.
8. Section Headings and Subheadings. Section headings and subheadings contained in this Agreement are included for convenience only and shall not limit or otherwise affect the terms of this Agreement.
9. Waiver. The Recipient’s failure to act with respect to a breach by the Subrecipient does not waive its right to act with respect to subsequent or similar breaches. The failure of the Recipient to exercise or enforce any right or provision shall not constitute a waiver of such right or provision.
10. Entire Agreement. This agreement constitutes the entire agreement between the Recipient and the Subrecipient for the use of funds received under this Agreement and it supersedes all prior or contemporaneous communications and proposals, whether electronic, oral, or written between the Recipient and the Subrecipient with respect to this Agreement.
11. Amendments. The Recipient or Subrecipient may amend this Agreement at any time provided that such amendments make specific reference to this Agreement, and are executed in writing, signed by a duly authorized representative of each organization, and approved by the Recipient’s governing body. Such amendments shall not invalidate this Agreement, nor relieve or release the Recipient or Subrecipient from its obligations under this Agreement.
The Recipient may, in its discretion, amend this Agreement to conform with Federal, state, or local governmental guidelines, policies and available funding amounts, or for other reasons. If such amendments result in a change in the funding, the scope of services, or schedule of the activities to be undertaken as part of this Agreement, such modifications will be incorporated only by written amendment signed by both Recipient and Subrecipient.
12. Suspension or Termination. In accordance with 24 CFR 85.43, the Recipient may suspend or terminate this Agreement if the Subrecipient materially fails to comply with any terms of this Agreement, which include (but are not limited to) the following:
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a. Failure to comply with any of the rules, regulations or provisions referred to herein, or such statutes, regulations, executive orders, and HUD guidelines, policies or directives as may become applicable at any time;
b. Failure, for any reason, of the Subrecipient to fulfill in a timely and proper manner its obligations under this Agreement;
c. Ineffective or improper use of funds provided under this Agreement; or d. Submission by the Subrecipient to the Recipient reports that are incorrect or incomplete in any material respect.
In accordance with 24 CFR 85.44, this Agreement may also be terminated for convenience by either the Recipient or the Subrecipient, in whole or in part, by setting forth the reasons for such termination, the effective date, and, in the case of partial termination, the portion to be terminated.
However, if in the case of a partial termination, the Recipient determines that the remaining portion of the award will not accomplish the purpose for which the award was made, the Recipient may terminate the award in its entirety.
13. Insurance & Bonding. Subrecipient shall procure and maintain for the duration of the agreement insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Subrecipient, its agents, representatives, or employees.
a. Minimum Scope and Limit of Insurance. Coverage shall be at least as broad as:
i. Commercial General Liability (CGL): Insurance Services Office (ISO) Form CG 00 01 covering CGL on an “occurrence” basis for bodily injury and property damage, including products-completed operations, personal injury and advertising injury, with limits no less than $1,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location or the general aggregate limit shall be twice the required occurrence limit. ii. Automobile Liability. ISO Form Number CA 0001 covering, Code 1 (any auto), or if Subrecipient has no owned autos, Code 8 (hired) and 9 (non-owned), with limit no less than $1,000,000 per accident for bodily injury and property damage. iii. Workers’ Compensation insurance as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limit of no less than $1,000,000 per accident for bodily injury or disease. If Subrecipient will provide leased employees, or, is an employee leasing or temporary staffing firm or a professional employer organization (PEO), coverage shall also include an Alternative Employer endorsement (providing scope of coverage equivalent to ISO policy form WC 00 03 01 A) naming the County as the Alternate Employer and the endorsement form shall be modified to provide that County will receive not less than thirty (30) days advance written notice of cancellation of this coverage provision. If applicable to Subrecipient’s operations, coverage also shall be arranged to satisfy the requirements of any federal workers or workmen’s compensation law or any federal occupational disease law. If the Subrecipient maintains higher limits than the minimums shown above, the County requires and shall be entitled to coverage for the higher limits maintained by the Subrecipient.
iv. Professional Liability/Errors and Omissions. Insurance covering Subcontractor’s liability arising from or related to this Agreement, with limits of not less than $1 million per claim and $2 million aggregate. Further, Subrecipient understands and agrees it shall maintain such coverage for a period of not less than three (3) years following this Agreement’s expiration, termination or cancellation.
b. Additional Insured Status. The County, its officers, officials, employees, and volunteers are to be covered as insureds on the auto policy with respect to liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of the Subrecipient; and on DocuSign Envelope ID: 7DBBE933-3FC3-4C29-8663-9B47FCA8217F DocuSign Envelope ID: 4FB98944-924B-4392-8D14-02CE3C536870
the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Subrecipient including materials, parts, or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Subrecipient’s insurance (at least as broad as ISO Form CG 20 10, 11 85 or both CG 20 10 and CG 23 37 forms if later revisions used). i. Primary Coverage. For any claims related to this contract, the Subrecipient’s insurance coverage shall be primary insurance as respects the County, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the County, its officers, officials, employees, or volunteers shall be excess of the Subrecipient’s insurance and shall not contribute with it. ii. Notice of Cancellation. Each insurance policy required above shall state that coverage shall not be canceled, except after thirty (30) days’ prior written notice (10 days for non-payment) has been given to the County. iii. Failure to Maintain Insurance. Subrecipient’s failure to maintain or to provide acceptable evidence that it maintains the required insurance shall constitute a material breach of the Agreement, upon which the County immediately may withhold payments due to Subrecipients, and/or suspend or terminate this Agreement. The County, at its sole discretion, may obtain damages from Subrecipient resulting from said breach. iv. Waiver of Subrogation. Subrecipient hereby grants to County a waiver of any right to subrogation which any insurer of said Subrecipient may acquire against the County by virtue of the payment of any loss under such insurance. Subrecipient agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether the County has received a waiver of subrogation endorsement for the insurer.
v. Deductibles and Self-Insured Retentions. Any deductibles or self-insured retentions must be declared to and approved by the County. The County may require the Subcontractor to provide proof of ability to pay losses and related investigation, claim administration, and defense expenses within the retention. vi. Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M.
Best’s rating of no less than A: VII, unless otherwise acceptable to the County. vii. Claims Made Policies. If any of the required policies provide coverage on a claimsmade basis:
1. The Retroactive Date must be shown and must be before the date of the agreement or the beginning of agreement work.
2. Insurance must be maintained, and evidence of insurance must be provided for at least five (5) years after completion of the agreement of work.
3. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a Retroactive Date prior to the agreement effective date, the Subrecipient must purchase “extended reporting” coverage for a minimum of five (5) years after completion of agreement work. viii. Separation of Insureds. All liability policies shall provide cross-liability coverage as would be afforded by the standard ISO (Insurance Services Office, Inc.) separation of insureds provision with no insured versus insured exclusions or limitation. ix. Verification of Coverage. Subrecipient shall furnish the County with original certification and amendatory endorsements, or copies of the applicable policy language effecting coverage required by this clause. All certificates and endorsements are to be received and approved by the County before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the Subrecipient’s obligation to provide them. The County reserves the right to require DocuSign Envelope ID: 7DBBE933-3FC3-4C29-8663-9B47FCA8217F DocuSign Envelope ID: 4FB98944-924B-4392-8D14-02CE3C536870
complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.
x. Certificates and copies of any required endorsements shall be sent to:
Harlee Hopkins, Program Manager
County of San Luis Obispo
Department of Planning & Building
976 Osos St., Rm. 300
San Luis Obispo, CA 93408
xi. Subcontractors: Subrecipient shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein.
xii. Special Risks or Circumstances: County reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.
14. Uniform Administrative Requirements
a. Compliance. Pursuant to 24 CFR 570.502, the Subrecipient will comply with the requirements of 2 CFR part 200, except that the following provisions shall not apply: § 200.305 as modified by 24 CFR 570.502(a)(1), 200.306, 200.307 as governed by 24 CFR 570.504, 200.308, 200.311 except as provided in 24 CFR 570.200(j) and governed by 24 CFR 570.505, 200.313 except as provided in 570.502(a)(6), 200.333 except as provided in 570.502(a)(7)(ii) for subrecipients. If there is a conflict between definitions in 2 CFR part 200 and 24 CFR part 570, the definitions in 24 CFR part 570 shall govern. b. Subpart K of 24 CFR Part 570. The Subrecipient agrees to carry out each activity in compliance with all Federal laws and regulations described in subpart K of these regulations, except that:
i. The Subrecipient does not assume the recipient’s environmental responsibilities described at 570.604; and
ii. The Subrecipient does not assume the recipient’s responsibility for initiating the review under the provisions of 24 CFR Part 52.
c. Agreement Responsibility for Monitoring and Records. HUD, the Office of the Inspector General (OIG), and the designated representatives of the Subrecipient, and other appropriate officials shall have access to all personnel records, management information, and fiscal data of the Subrecipient and any agency or contractor with whom the Subrecipient executes a subcontract necessary to carry out any CDBG program(s) for monitoring purposes (2 CFR Part 200.328, 200.327 and 200.326). The Subrecipient shall respond in a timely manner to all identified corrective action needs as a result of HUD, Recipient, or other monitoring. The Subrecipient shall submit to Recipient all required reports and monitoring corrective action plans on a timely basis, as delineated by the Recipient. Records shall be maintained as follows:
i. The Subrecipient agrees to retain all pertinent records under CDBG program, including financial records, until advised by the Recipient that further retention is unnecessary.
Generally, records shall be retained for a period for five (5) years from the end of the fiscal year in which the last project covered by the Recipient’s annual agreement with HUD is completed. Records shall be open and available for inspection by auditors and/or other staff assigned by HUD and/or the Recipient during the normal business hours of the Subrecipient. If at the end of such five-year period, there is ongoing litigation, claims, negotiations, audit or other action involving the Subrecipient’s or the Recipient’s records, which has started before expiration of the five (5) year period, the Subrecipient will retain the records until the completion of the action and resolution of all issues which arise from it as stated in 2 CFR Part 200.333. ii. Consistent with applicable state and local laws regarding privacy and obligations of confidentiality, the Subrecipient shall furnish and cause each of its own subrecipients or subcontractors to furnish all information and reports required hereunder and will DocuSign Envelope ID: 7DBBE933-3FC3-4C29-8663-9B47FCA8217F DocuSign Envelope ID: 4FB98944-924B-4392-8D14-02CE3C536870
permit access to its books, records and accounts to the Recipient, HUD or its agent, or other authorized Federal officials for purposes of investigation to ascertain compliance with the rules, regulations and provisions stated herein The Subrecipient also must provide citizens with reasonable access to records on the past use of CDBG funds (24 CFR 570.508).
iii. Records for nonexpendable property shall be retained for a period of five (5) years after final disposition of the property, if applicable.
15. Financial Management.
a. Accounting Standards. The Subrecipient agrees to comply with 24 CFR 84.21−28 and agrees to adhere to the accounting principles and procedures required therein, utilize adequate internal controls, and maintain necessary source documentation for all costs incurred.
b. Cost Principles. The Subrecipient shall administer its program in conformance with OMB Circulars A-122, “Cost Principles for Non-Profit Organizations,” or A-21, “Cost Principles for Educational Institutions,” as applicable. These principles shall be applied for all costs incurred whether charged on a direct or indirect basis.
16. Conflict of Interest. The Subrecipient agrees to abide by the provisions of 24 CFR 84.42 and 570.611, which include (but are not limited to) the following:
a. The Subrecipient shall maintain a written code or standards of conduct that shall govern the performance of its officers, employees or agents engaged in the award and administration of contracts supported by Federal funds. b. No employee, officer or agent of the Subrecipient shall participate in the selection, or in the award, or administration of, a contract supported by Federal funds if a conflict of interest, real or apparent, would be involved.
c. No covered persons who exercise or have exercised any functions or responsibilities with respect to CDBG-assisted activities, or who are in a position to participate in a decisionmaking process or gain inside information with regard to such activities, may obtain a financial interest in any contract, or have a financial interest in any contract, subcontract, or agreement with respect to the CDBG-assisted activity, or with respect to the proceeds from the CDBG-assisted activity, either for themselves or those with whom they have business or immediate family ties, during their tenure or for a period of one (1) year thereafter. For purposes of this paragraph, a “covered person” includes any person who is an employee, agent, consultant, officer, or elected or appointed official of the Recipient, the Subrecipient, or any designated public agency.
17. Lobbying. The Subrecipient hereby certifies that:
a. No Federal appropriated funds have been paid or will be paid, by or on behalf of it, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement. b. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, it will complete and submit Standard Form-LLL, “Disclosure Form to Report Lobbying,” in accordance with its instructions; and
c. It will require that the language of paragraph (d) of this certification be included in the award documents for all subawards at all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all Subrecipients shall certify and disclose accordingly.
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d. Lobbying Certification: This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S.C. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure.
18. Religious Activities. The Subrecipient agrees that funds provided under this Agreement will not be utilized for inherently religious activities prohibited by 24 CFR 570.200(j), such as worship, religious instruction, or proselytization.
19. Copyright. If this contract results in any copyrightable material or inventions, the Recipient and/or grantor agency reserves the right to royalty-free, non-exclusive, and irrevocable license to reproduce, publish or otherwise use and to authorize others to use, the work or materials for governmental purposes.
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EXHIBIT E
SPECIAL CONDITIONS
1. Administrative Requirements
a. Documentation and Record Keeping.
1. Records to be Maintained. The Subrecipient shall maintain all records required by the Federal regulations specified in 24 CFR 570.506, that are pertinent to the activities to be funded under this Agreement. Such records shall include but not be limited to:
1. Records providing a full description of each activity undertaken;
2. Records demonstrating that each activity undertaken meets one of the National Objectives of the CDBG program;
3. Records required to determine the eligibility of activities;
4. Records required to document the acquisition, improvement, use or disposition of real property acquired or improved with CDBG assistance;
5. Records documenting compliance with the fair housing and equal opportunity components of the CDBG program;
6. Financial records as required by 24 CFR 570.502, and 24 CFR 84.21−28; and
7. Other records necessary to document compliance with Subpart K of 24 CFR Part 570.
2. Retention. The Subrecipient shall retain all financial records, supporting documents, statistical records, and all other records pertinent to the Agreement for a period of five (5) years. The retention period begins on the date of the submission of the Recipient’s annual performance and evaluation report to HUD in which the activities assisted under the Agreement are reported on for the final time.
3. Client Data. The Subrecipient shall maintain client data demonstrating client eligibility for services provided. Such data shall include, but not be limited to, client identifier, address, income level or other basis for determining eligibility, and description of service provided. Such information shall be made available to Recipient monitors or their designees for review upon request.
4. Disclosure. The Subrecipient understands that client information collected under this contract is private and the use or disclosure of such information, when not directly connected with the administration of the Recipient’s or Subrecipient’s responsibilities with respect to services provided under this contract, is prohibited unless written consent is obtained from such person receiving service and, in the case of a minor, that of a responsible parent/guardian.
5. Close-outs. The Subrecipient’s obligation to the Recipient shall not end until all closeout requirements are completed. Activities during this close-out period shall include, but are not limited to: making final payments, disposing of program assets (including the return of all unused materials, equipment, unspent cash advances, program income balances, and accounts receivable to the Recipient), and determining the custodianship of records. Notwithstanding the foregoing, the terms of this Agreement shall remain in effect during any period that the Subrecipient has control over CDBG funds, including program income.
6. Audits & Inspections. All Subrecipient records with respect to any matters covered by this Agreement shall be made available to the Recipient, grantor agency, and the Comptroller General of the United States or any of their authorized representatives, at any time during normal business hours, as often as deemed necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any deficiencies noted in audit reports must be fully cleared by the Subrecipient within 30 days after receipt by the Subrecipient. Failure of the Subrecipient to comply with the above audit requirements will constitute a violation of this contract and may result in the withholding of future payments. The Subrecipient hereby agrees to have an annual agency audit DocuSign Envelope ID: 7DBBE933-3FC3-4C29-8663-9B47FCA8217F DocuSign Envelope ID: 4FB98944-924B-4392-8D14-02CE3C536870
conducted in accordance with current Recipient policy concerning subrecipient audits and OMB Circular A-133.
2. Reporting and Payment Procedures.
a. Program Income. The use of program income by the Subrecipient shall comply with the requirements set forth at 24 CFR 570.504.
b. Indirect Costs. If indirect costs are charged, the Subrecipient will develop an indirect cost allocation plan for determining the appropriate Subrecipient’s share of administrative costs and shall submit such plan to the Recipient for approval, in a form specified by the Recipient.
c. Payment Procedures. The Recipient will pay to the Subrecipient funds available under this Agreement based upon information submitted by the Subrecipient and consistent with any approved budget and Recipient policy concerning payments. Payments will be made for eligible expenses actually incurred by the Subrecipient, and not to exceed actual award amount. The Recipient shall pay Subrecipient within 30 days of receipt of a complete payment request.
d. Progress Reports. The Subrecipient shall submit regular Progress Reports to the Recipient in the form, content, and frequency as required by the Recipient, set forth in Exhibit A.
e. Use and Reversion of Assets. The use and disposition of real property and equipment under this Agreement shall be in compliance with the requirements of 24 CFR Part 84 and 24 CFR 570.502, 570.503, and 570.504, as applicable, which include but are not limited to the following:
i. The Subrecipient shall transfer to the Recipient any CDBG funds on hand and any accounts receivable attributable to the use of funds under this Agreement at the time of expiration, cancellation, or termination. Real property under the Subrecipient’s control that was acquired or improved, in whole or in part, with funds under this Agreement in excess of $25,000 shall be used to meet one of the CDBG National Objectives pursuant to 24 CFR 570.208 until five (5) years after expiration of this Agreement. If the Subrecipient fails to use CDBG-assisted real property in a manner that meets a CDBG National Objective for the prescribed period of time, the Subrecipient shall pay the Recipient an amount equal to the current fair market value of the property less any portion of the value attributable to expenditures of non-CDBG funds for acquisition of, or improvement to, the property. Such payment shall constitute program income to the Recipient. The Subrecipient may retain real property acquired or improved under this Agreement after the expiration of the five-year period. ii. In all cases in which equipment acquired, in whole or in part, with funds under this Agreement is sold, the proceeds shall be program income (prorated to reflect the extent to funds received under this Agreement were used to acquire the equipment).
Equipment not needed by the Subrecipient for activities under this Agreement shall be (a) transferred to the Recipient for the CDBG program or (b) retained after compensating the Recipient [an amount equal to the current fair market value of the equipment less the percentage of non-CDBG funds used to acquire the equipment].
3. Civil Rights.
a. Compliance. The Subrecipient agrees to comply with local and state civil rights ordinances and with Title VI of the Civil Rights Act of 1964 as amended, Title VIII of the Civil Rights Act of 1968 as amended, Section 104(b) and Section 109 of Title I of the Housing and Community Development Act of 1974 as amended, Section 504 of the Rehabilitation Act of 1973, the Americans with Disabilities Act of 1990, the Age Discrimination Act of 1975, Executive Order 11063, and Executive Order 11246 as amended by Executive Orders 11375, 11478, 12107 and 12086.
b. Nondiscrimination. The Subrecipient agrees to comply with the non-discrimination in employment and contracting opportunities laws, regulations, and executive orders DocuSign Envelope ID: 7DBBE933-3FC3-4C29-8663-9B47FCA8217F DocuSign Envelope ID: 4FB98944-924B-4392-8D14-02CE3C536870
referenced in 24 CFR 570.607, as revised by Executive Order 13279. The applicable nondiscrimination provisions in Section 109 of the HCDA are still applicable. c. Land Covenants. This contract is subject to the requirements of Title VI of the Civil Rights Act of 1964 (P. L. 88-352) and 24 CFR 570.601 and 570.602. In regard to the sale, lease, or other transfer of land acquired, cleared or improved with assistance provided under this contract, the Subrecipient shall cause or require a covenant running with the land to be inserted in the deed or lease for such transfer, prohibiting discrimination as herein defined, in the sale, lease or rental, or in the use or occupancy of such land, or in any improvements erected or to be erected thereon, providing that the Recipient and the United States are beneficiaries of and entitled to enforce such covenants. The Subrecipient, in undertaking its obligation to carry out the program assisted hereunder, agrees to take such measures as are necessary to enforce such covenant, and will not itself so discriminate. d. Section 504. The Subrecipient agrees to comply with all Federal regulations issued pursuant to compliance with Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794), which prohibits discrimination against the individuals with disabilities or handicaps in any Federally assisted program. The Recipient shall provide the Subrecipient with any guidelines necessary for compliance with that portion of the regulations in force during the term of this Agreement.
e. Subcontract Provisions. The Subrecipient will include the provisions of Civil Rights, and Affirmative Action, in every subcontract or purchase order, specifically or by reference, so that such provisions will be binding upon each of its own subrecipients or subcontractors.
4. MBE/WBE.
a. Women- and Minority-Owned Businesses (W/MBE). The Subrecipient will use its best efforts to afford small businesses, minority business enterprises, and women’s business enterprises the maximum practicable opportunity to participate in the performance of this contract. As used in this contract, the terms “small business” means a business that meets the criteria set forth in section 3(a) of the Small Business Act, as amended (15 U.S.C. 632), and “minority and women’s business enterprise” means a business at least fifty-one (51) percent owned and controlled by minority group members or women. For the purpose of this definition, “minority group members” are AfroAmericans, Spanish-speaking, Spanish surnamed or Spanish-heritage Americans, AsianAmericans, and American Indians. The Subrecipient may rely on written representations by businesses regarding their status as minority and female business enterprises in lieu of an independent investigation.
5. Labor Standards. The Labor Standards Regulations set forth in Section 570.603 of 24 CFR Part 570; and HUD Handbook 1344.1. If this Agreement involves construction or facility improvements exceeding $2,000 awarded by the Recipient, the Subrecipient agrees to comply with:
a. Prevailing Wages. Subrecipient shall comply with the prevailing wage requirements of the Secretary of Labor in accordance with the Davis-Bacon Act (40 USC 276a to 276 a-7) as supplemented in the Department of Labor regulations (29 CFR Part 5). These requirements shall apply to all contracts, financed in whole or in part with assistance provided under this Agreement, that exceed $2,000.00 and involve construction, renovation or repair of any building or work. These requirements shall not apply to contracts the exceed $2,000 that involve the rehabilitation of residential property containing less than eight (8) households, or as allowed by the Housing and Community Development Act of 1974, as amended. Contractors shall also comply regulations under 29 CFR, Parts 3, 1, 5 and 7 governing the payment of wages for apprentices and trainees to journeymen.
However, if wage rates higher than those required under the regulations are imposed by state or local law, nothing hereunder is intended to relieve the Subrecipient of its obligation, if any, to require payment of the higher wage. The Subrecipient shall cause or require to be inserted in full, in all such contracts subject to such regulations, provisions meeting the requirements of this paragraph, for such contracts in excess of $10,000.00.
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b. Copeland Anti-Kickback Act. During the performance of this Agreement, the Subrecipient and its contractors and subcontractors agree to comply with the Copeland Anti-Kickback Act (18 USC 874) as supplemented in the Department of labor regulations (29 CFR Part 3). This act provides that the Subrecipient, its contractor and subcontractors shall be prohibited from inducing any person employed in the construction, completion, or repair of public facilities to give up any part of the compensation which they are otherwise entitled.
The Subrecipient, its contractor and subcontractors shall maintain documentation that demonstrates compliance with hour and wages requirements of this part. Such documentation shall be made available to the Recipient for review upon request. The Subrecipient’s contractor and subcontractors agree to include a provision requiring such compliance in its lower tier covered contracts and transactions.
Agreements exceeding $100,000 that involve the employment of mechanics or laborers shall comply with the following:
a. Contract Work Hours and Safety Standards Act. Where applicable, during the performance of this Agreement all contracts awarded by the Subrecipient, the prime contractor and subcontractors in excess of $2,000 for construction contracts and in excess of $100,000 are required, pursuant to the Contract Work Hours and Safety Standards Act, to apply the four clauses below. These clauses shall be inserted in addition to the clauses required by 29 CFR Part 5.5(a) or 29 CFR Part 4.6. As used in this section, the terms laborers and mechanics include watchmen and guards. i. Overtime requirements. No contractor or subcontractor contracting for any part of the contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives compensation at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek. ii. Violation; liability for unpaid wages; liquidated damages. In the event of any violation of the clause set forth in paragraph (a.) of this section, the contractor, and any subcontractor responsible therefor shall be liable for the unpaid wages. In addition, such contractor and subcontractor shall be liable to the United States (in the case of work done under contract for the District of Columbia or a territory, to such District or to such territory), for liquidated damages. Such liquidated damages shall be computed with respect to each individual laborer or mechanic, including watchmen and guards, employed in violation of the clause set forth in paragraph (a.) of this section, in the sum of $10 for each calendar day on which such individual was required or permitted to work in excess of the standard workweek of forty hours without payment of the overtime wages required by the clause set forth in paragraph (a.) of this section.
iii. Withholding for unpaid wages and liquidated damages. The Recipient shall upon its own action or upon written request of an authorized representative of the U.S. Department of Housing and Urban Development (HUD) or the U.S. Department of Labor (DOL) withhold or cause to be withheld, from any moneys payable on account of work performed by the contractor or subcontractor under any such contract or any other federal contract with the same prime contractor, or any other federally-assisted contract subject to the Contract Work Hours and Safety Standards Act, which is held by the same prime contractor, such sums as may be determined to be necessary to satisfy any liabilities of such contractor or subcontractor for unpaid wages and liquidated damages as provided in the clause set forth in paragraph (ii.) of this section.
iv. Subcontracts. The contractor or subcontractor shall insert in any subcontracts the clauses set forth in paragraphs (i.) through (iv.) of this section and a clause requiring the subcontractors to include these clauses in any lower tier subcontracts. The prime contractor shall be DocuSign Envelope ID: 7DBBE933-3FC3-4C29-8663-9B47FCA8217F DocuSign Envelope ID: 4FB98944-924B-4392-8D14-02CE3C536870
responsible for compliance by any subcontractor or lower tier subcontractor with the clauses set forth in paragraphs (i.) through (iv.) of this section.
6. Bonding Requirements. For construction or facility improvements contracts or subcontracts exceeding the Simplified Acquisition Threshold ($150,000) the Recipient may accept the bonding policy and requirements of the Subrecipient provided that the Recipient has made a determination that the CDBG funds are adequately protected. If such a determination has not been made, the minimum requirements must be as follows:
a. Bid Guarantee. At the submission of a bid to the Subrecipient, the contractor shall furnish a “bid” guarantee equivalent to five percent of the bid price. The “bid guarantee” must consist of a firm commitment such as a bid bond, certified check, or other negotiable instrument accompanying a bid as assurance that the bidder will, upon acceptance of the bid, execute such contractual documents as may be required within the time specified. b. Performance Bond. At the time of execution of a contract between the Subrecipient and the contractor, the contractor shall furnish a “faithful performance” bond in the sum of one hundred percent (100%) of the contract price to guarantee the performance of the contract. c. Payment Bond. At the time of execution of the contract, the contractor shall furnish a “payment” bond in the sum of one hundred percent (100%) of the contract price to assure payment as required by law of all persons supplying labor and material in the execution of the work provided for in the contract.
7. Section 3. Economic Opportunities for Low- and Very Low-Income Persons (24 CFR Part 75). A project receiving HUD assistance of at least $200,000 involving construction, demolition, or rehabilitation is required to comply with Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701u (Section 3 Final Rule). hereinafter referred to as “Section 3”.
The purpose of the Section 3 is to ensure that employment and other economic opportunities generated by the U.S. Department of Housing and Urban Development (HUD) assistance shall, to the greatest extent feasible, be directed to low and very low-income persons within the project area or to Business Concerns located in or owned in substantial part by persons residing within the area of the project (Section 3 Workers and/or Section 3 Business Concerns). Income limits defined by Section 3(b)(2) of the Housing Act of 1937. a. Recordkeeping. HUD shall have access to all records, reports, and other documents or items of the recipient that are maintained to demonstrate compliance with the requirements of this part, or that are maintained in accordance with the regulations governing the specific HUD program by which the Section 3 project is governed.
Subrecipients must maintain documentation to ensure that workers meet the definition of a Section 3 worker or Targeted Section 3 worker, at the time of hire or the first reporting period. b. The Subrecipient shall insure that all contracts subject to Section 3 include the following:
i. The Parties to this contract agree to comply with the Section 3 provisions set forth in 24 CFR Part 75. The parties to this contract certify that they are under no contractual or other impediments that would prevent them from complying with the Part 75 regulations. ii. The contractor agrees to send to each labor organization or representative of workers with which the contractor has a collective bargaining agreement or other understanding, if any, a notice advising the labor organization or workers’ representative of the contractor’s commitments under this Section 3 clause and will post copies of the notice in conspicuous places at the work site where both employees and applicants for training and employment positions can see the notice. The notice shall describe the Section 3 preference, shall set forth minimum number and job titles subject to hire, availability of apprenticeship and training positions, the qualifications for each; and the name and location of the person(s) taking applications for each of the positions; and the anticipated date the work shall begin. iii. The contractor agrees to include this Section 3 language in every subcontract subject to compliance with regulation in 24 CFR Part 75, and agrees to take appropriate action, as provided in an applicable provision of the subcontract or in this Section 3 language, upon a finding that the subcontractor is in violation of the regulation in 24 CFR Part 75 and the DocuSign Envelope ID: 7DBBE933-3FC3-4C29-8663-9B47FCA8217F DocuSign Envelope ID: 4FB98944-924B-4392-8D14-02CE3C536870
associated policies and guidelines. The contractor will not subcontract with any subcontractor where the contractor has notice or knowledge that the subcontractor has been found in violation of the regulation in 24 CFR Part 75. iv. The contractor will certify that any vacant employment positions, including training positions, that are filled (1) after the contractor is selected but before the contract is executed, and (2) with persons other than those to whom the regulations of 24 CFR Part 135 require employment opportunities to be directed, were not filled to circumvent the contractor’s obligations under 24 CFR Part 135.
v. Noncompliance with 24 CFR Part 75 and the associated policies and guidelines may result in sanctions specified by 24 CFR 75, termination of this contract for default, or debarment or suspension from future HUD-assisted contracts.
c. Subcontracts. The Subrecipient will include this Section 3 clause in every subcontract and will take appropriate action pursuant to the subcontract upon a finding that the subcontractor is in violation of regulations issued by the grantor agency. The Subrecipient will not subcontract with any entity where it has notice or knowledge that the latter has been found in violation of regulations under 24 CFR Part 135 and will not let any subcontract unless the entity has first provided it with a preliminary statement of ability to comply with the requirements of these regulations.
8. Access to Records. The Subrecipient shall furnish and cause each of its own subrecipients or subcontractors to furnish all information and reports required hereunder and will permit access to its books, records and accounts by the Recipient, HUD or its agent, or other authorized Federal officials for purposes of investigation to ascertain compliance with the rules, regulations and provisions stated herein.
9. Equal Employment Opportunity and Affirmative Action (EEO/AA) Statement. The Subrecipient will, in all solicitations or advertisements for employees placed by or on behalf of the Subrecipient, state that it is an Equal Opportunity or Affirmative Action employer.
10. Employment Restrictions. The Subrecipient is prohibited from using funds provided herein or personnel employed in the administration of the program for: political activities; inherently religious activities; lobbying; political patronage; and nepotism activities.
11. Conduct.
a. Assignability. The Subrecipient shall not assign or transfer any interest in this Agreement without the prior written consent of the Recipient thereto; provided, however, that claims for money due or to become due to the Subrecipient from the Recipient under this contract may be assigned to a bank, trust company, or other financial institution without such approval. Notice of any such assignment or transfer shall be furnished promptly to the Recipient. b. Subcontracts
i. Approvals
The Subrecipient shall not enter into any subcontracts with any agency or individual in the performance of this contract without the written consent of the Recipient prior to the execution of such agreement.
ii. Monitoring
The Subrecipient will monitor all subcontracted services on a regular basis to assure contract compliance. Results of monitoring efforts shall be summarized in written reports and supported with documented evidence of follow-up actions taken to correct areas of noncompliance.
iii. Content
The Subrecipient shall cause all of the provisions of this contract in its entirety to be included in and made a part of any subcontract executed in the performance of this Agreement.
iv. Selection Process
The Subrecipient shall undertake to ensure that all subcontracts let in the performance of this Agreement shall be awarded on a fair and open competition basis in accordance with DocuSign Envelope ID: 7DBBE933-3FC3-4C29-8663-9B47FCA8217F DocuSign Envelope ID: 4FB98944-924B-4392-8D14-02CE3C536870
applicable procurement requirements. Executed copies of all subcontracts shall be forwarded to the Recipient along with documentation concerning the selection process.
12. Hatch Act. The Subrecipient agrees that no funds provided, nor personnel employed under this Agreement, shall be in any way or to any extent engaged in the conduct of political activities in violation of Chapter 15 of Title V of the U.S.C.
13. Environmental Conditions
a. Air and Water. The Subrecipient agrees to comply with the following requirements insofar as they apply to the performance of this Agreement:
i. Clean Air Act, 42 U.S.C., 7401, et seq.;
ii. Federal Water Pollution Control Act, as amended, 33 U.S.C., 1251, et seq., as amended, 1318 relating to inspection, monitoring, entry, reports, and information, as well as other requirements specified in said Section 114 and Section 308, and all regulations and guidelines issued thereunder;
iii. Environmental Protection Agency (EPA) regulations pursuant to 40 CFR Part 50, as amended.
b. Flood Disaster Protection. In accordance with the requirements of the Flood Disaster Protection Act of 1973 (42 U.S.C. 4001), the Subrecipient shall assure that for activities located in an area identified by the Federal Emergency Management Agency (FEMA) as having special flood hazards, flood insurance under the National Flood Insurance Program is obtained and maintained as a condition of financial assistance for acquisition or construction purposes (including rehabilitation).
c. Lead-Based Paint. The Subrecipient agrees that any construction or rehabilitation of residential structures with assistance provided under this Agreement shall be subject to HUD Lead-Based Paint Regulations at 24 CFR 570.608, and 24 CFR Part 35, Subpart B. Such regulations pertain to all CDBG-assisted housing and require that all owners, prospective owners, and tenants of properties constructed prior to 1978 be properly notified that such properties may include lead-based paint. Such notification shall point out the hazards of leadbased paint and explain the symptoms, treatment and precautions that should be taken when dealing with lead-based paint poisoning and the advisability and availability of blood lead level screening for children under seven. The notice should also point out that if lead-based paint is found on the property, abatement measures may be undertaken. The regulations further require that, depending on the amount of Federal funds applied to a property, paint testing, risk assessment, treatment and/or abatement may be conducted. d. Historic Preservation. The Subrecipient agrees to comply with the Historic Preservation requirements set forth in the National Historic Preservation Act of 1966, as amended (16 U.S.C. 470) and the procedures set forth in 36 CFR Part 800, Advisory Council on Historic Preservation Procedures for Protection of Historic Properties, insofar as they apply to the performance of this agreement.
In general, this requires concurrence from the State Historic Preservation Officer for all rehabilitation and demolition of historic properties that are fifty years old or older or that are included on a Federal, state, or local historic property list.
DocuSign Envelope ID: 7DBBE933-3FC3-4C29-8663-9B47FCA8217F DocuSign Envelope ID: 4FB98944-924B-4392-8D14-02CE3C536870
R ______
RESOLUTION NO. _____ (2023 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, AUTHORIZING APPROPRIATION OF
COMMUNITY DEVELOPMENT BLOCK GRANT FUNDS (CDBG) TO
SUPPORT THE CDBG CURB RAMPS 2022 PROJECT, SPECIFICATION NUMBER 2000576
WHEREAS, in December of 2021, City staff applied for Community Development Block Grant (CDBG) funds; and
WHEREAS, in March of 2022, City Council approved the 2023 Community Development Block Grant Program; and
WHEREAS, in July of 2022, City staff were notified of award of CDBG funding for the CDBG Curb Ramps 2022 Project (Project); and
WHEREAS, in February of 2023, the City entered into a subrecipient agreement for 2022 Community Development Block Grant Funds between the County of San Luis Obispo and the City of San Luis Obispo; and
WHEREAS, the City was awarded $385,483 from the Community Development Block Grant Funds; and
WHEREAS, to provide funding to support construction work for the Project, staff is recommending the City Council approve the use of $385,483 from the Community Development Block Grant Funds for the Project.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows:
Resolution No. _____ (2023 Series) Page 2
R ______
SECTION 1. The City Council authorizes the Finance Director to appropriate $385,483 from the Community Development Block Grant Funds to the CDBG Curb Ramps 2022 Project account, Specification No. 2000576.
Upon motion of _______________________, seconded by
_______________________, and on the following roll call vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this _____ day of _____________________ 2023. ___________________________
Mayor Erica A. Stewart
ATTEST:
__________________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
__________________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ______________________. ___________________________
Teresa Purrington
City Clerk
Item 5d
Department: Administration
Cost Center: 1001
For Agenda of: 4/4/2023
Placement: Consent
Estimated Time: N/A
FROM: Greg Hermann, Deputy City Manager
Prepared By: Hans Poschman, Assistant to the City Manager SUBJECT: 2023 LEGISLATIVE PLATFORM
RECOMMENDATION
1. As recommended by Council Members Francis and Pease, adopt a Draft Resolution entitled, “A Resolution of the City Council of the City of San Luis Obispo, California, establishing the City Legislative Action Platform for 2023 and appointing the Council Member and Staff Person to act as liaison between the City of San Luis Obispo and the League of California Cities”; and
2. Provide direction to staff on the scope and application of the legislative platform related to advocacy for non-legislative items or particular projects; and
3. Appoint the Mayor, City Manager, and City Attorney to act as the primary legislative liaisons between the League of California Cities and the City of San Luis Obispo.
POLICY CONTEXT
The Legislative Platform is a tool to promote the efficient use of staff and Council City time while also ensuring the City is actively engaged on relevant legislative issues. City Council approval is required for any modifications to the platform as updated through an annual review process. The City will be providing a copy of the City’s Legislative Platform to Federal and State legislators and will be also sharing a copy with the County Board of Supervisors.
DISCUSSION
Legislative Action Program
Attached for the Council’s consideration is a Resolution (Attachment A) establishing the City’s 2023 Legislative Action Platform. Similar resolutions have been adopted by the Council since 1993. The City Administration and IT Department coordinates the Legislative Action Program with assistance from the Attorney’s Office and other City departments, as appropriate. This Resolution authorizes staff to respond to legislative issues affecting the City (via letters signed by the Mayor, City Manager and, occasionally, Department Heads), provided that the positions taken in the letters are consistent with the priorities identified in Exhibit A to the Resolution and League of California Cities advocacy efforts.
Item 5d
By establishing a broad legislative platform and delegating responsibility to the Mayor and staff to respond to proposed legislation and recommendations from the League of California Cities, the City is better able to react quickly to changing circumstances and urgent requests than it would be if each item were brought to the Council at its regular meetings. The process is considered a best practice, has been efficient given the limited City resources available, and the City continues to be very active in communicating its positions on Federal and State legislation. In 2022, the City sent 20 letters pertaining to pending legislation utilizing the Legislative Action Platform, six more than in 2021.
During the December 13, 2022 City Council meeting the Council appointed Council Members Francis and Pease to an Ad Hoc Committee to review the 2023 Legislative Platform. Staff reviewed the Legislative Platform and suggested edits based on their subject matter expertise. In early March, the Ad Hoc Committee met after they had reviewed the platform and suggested additional edits. The Ad Hoc Committee made several changes to the platform that mostly expanded upon previous items in the platform.
Legislative Liaison Appointments
The League of California Cities encourages cities to appoint a Council Member and a staff person to act as legislative liaisons between the League and the City. As has been past practice, staff recommends that Mayor Erica A. Stewart act as the Council Legislative Liaison and the City Manager and the City Attorney serve as the Staff Liaisons.
Previous Council or Advisory Body Action
Similar resolutions have been adopted by the Council since 1993 following the advice and example of other cities (1993 Staff Report). The most recent Legislative Action Platform was approved on April 19, 2022.
Public Engagement
Public comment on the item can be provided to the City Council through written correspondence prior to the meeting and through public testimony at the meeting.
CONCURRENCE
In preparing this year’s draft platform, input was solicited from all City departments and several additions and clarifications were recommended. All changes, including language clean-ups and issue consolidations, are shown in the legislative draft of the 2023 Platform attached to this report (Attachment B).
In addition to Council’s substantive direction on the platform, staff also is seeking direction as to the application of the platform to City positions on particular projects or applications that Council Members believe raise issues related to the platform. Historically, and as affirmed by the City Councils of the last three years, the platform has been utilized primarily to advocate for or against a particular piece of legislation and not for or against a particular project or permitting application (adjudicative acts before other jurisdictions’ legislative bodies). Staff continues to recommend that the scope be limited to legislative action, but again requests explicit direction from the council majority on that issue to ensure clarity in expectations moving forward.
Item 5d
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a “Project” under CEQA Guidelines Sec. 15378.
FISCAL IMPACT
Budgeted: Budget Year:
Funding Identified:
Fiscal Analysis:
Funding
Sources
Total Budget
Available
Current
Funding
Request
Remaining
Balance
Annual
Ongoing
Cost
General Fund $ N/A $ $ $
State
Federal
Fees
Other:
Total $ $ $ $
Because no additional staff work is anticipated as a result of this ongoing program, no new fiscal impact will be incurred that was not already included in the current budget appropriation.
ALTERNATIVES
The Council may wish to include other issues, not included in the current draft.
However, it is important to note that the Legislative Action Platform allows the City to take action on any bills and other measures formally supported by the League of California Cities. It is staff’s recommendation that desired additions to the Platform are generally crafted and flexible to allow for quick responses to legislation important to cities.
ATTACHMENTS
A – Draft Resolution adopting the 2023 Legislative Platform B – 2023 Legislative Action Platform (Legislative Version) C – Exhibit A to the Draft Resolution - 2023 Legislative Action Platform (Clean Version)
R ______
RESOLUTION NO. _______ (2023 SERIES)
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS
OBISPO, CALIFORNIA, ESTABLISHING THE CITY LEGISLATIVE
ACTION PLATFORM FOR 2023 AND APPOINTING THE COUNCIL
MEMBER AND STAFF PERSON TO ACT AS LIAISON BETWEEN THE
CITY OF SAN LUIS OBISPO AND THE LEAGUE OF CALIFORNIA CITIES WHEREAS, a major objective of the City Council is to adopt an aggressive legislative action platform which strengthens local government, promotes City goals and defends the City against legislative actions by State and Federal governments that would weaken local government and/or take away traditional revenue sources; and WHEREAS, it is vital to the fiscal health and the self determination of the City to effectively communicate with State Legislators and Federal representatives in order to favorably influence State and Federal legislation, regulations and grant requests; and WHEREAS, the League of California Cities conducts a legislative analysis and advocacy program on behalf of cities for State issues and major Federal issues; and WHEREAS, the City desires to be proactive and involved in the governmental decision-making processes directly affecting the City legislative priorities identified in Exhibit A, and other selected issues as may from time to time be recommended by the League of California Cities; and
WHEREAS, the City Council considered an update to the Legislative Action Platform on December 13, 2022 and formed an Ad-Hoc Subcommittee consisting of Councilmember Francis and Pease to provide further review and changes in response to Council and public input; and
WHEREAS, a key component of the City’s Legislative Action Platform is face-to-face meetings between City representatives and elected officials at the Federal, State, and County levels, and coordination with similar efforts made by other local government entities.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of San Luis Obispo does hereby:
Section 1. Establish the Legislative Action Platform for 2023 as set forth in the attached Exhibit “A” and authorize the Mayor and designated staff to take positions on legislation generally consistent with the Legislative Action Platform and such other resolutions and recommendations of the League of California Cities as may be from time to time presented to the City; and
Resolution No. ______ (2023 Series) Page 2
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Section 2. Appoint Mayor Erica A. Stewart to act as Council Member Legislative Liaison and City Manager Derek Johnson and City Attorney Christine Dietrick within their respective capacities and to also serve as Staff Legislative Liaisons with the League of California Cities.
Upon motion of ____________________, seconded by ________________, and on the following vote:
AYES:
NOES:
ABSENT:
The foregoing resolution was adopted this ______ day of _______ 2023. ___________________________
Mayor Erica A. Stewart
ATTEST:
_______________________
Teresa Purrington
City Clerk
APPROVED AS TO FORM:
_______________________
J. Christine Dietrick
City Attorney
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, on ________________________. ___________________________
Teresa Purrington
City Clerk
EXHIBIT A
CITY OF SAN LUIS OBISPO
LEGISLATIVE ACTION PLATFORM
Adopted by City Council Resolution No. XXXXX(2023 Series)
LEGISLATIVE ACTION PLATFORM
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The following document reflects those legislative matters on which the council majority authorizes the Mayor, City Manager and City Attorney to engage in legislative advocacy on behalf of the City without the need for further council review or authority. The council’s authorization extends only to advocacy for or against generally applicable legislative proposals being considered by local, regional, state and/or federal policy makers or regulators, as well as regional initiatives consistent with Major City Goals, and adopted City policy platforms, and does not otherwise extend to advocacy on any individual project or entitlement application pending before any decision-making body, unless specifically noted herein.
Contents
Climate Action...............................................................................................................................................3 Energy ...........................................................................................................................................................3 Diversity, Equity, and Inclusion.....................................................................................................................5 Homelessness Resources Advocacy............................................................................................................65 Community Development...........................................................................................................................87 Economic Development................................................................................................................................9 Finance........................................................................................................................................................10 Human Resources/Employee Relations..................................................................................................1110 Public Safety............................................................................................................................................1211 Public Works ...........................................................................................................................................1413 Parks and Recreation and Natural Resources.........................................................................................1413 Transportation ........................................................................................................................................1514 Utilities....................................................................................................................................................1716 County/Regional Priorities....................................................................................................................1918
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Climate Action
1. Support funding for communities to pay for public infrastructure that meets state greenhouse gas emission reduction goals and adopted City objectives.
2. Support funding to implement programs and related action items contained in local and regional Climate Action Plans to quantitatively reduce greenhouse gas emissions and advocate for regulatory reform, including but not limited to clean technologies, micro-grids, all electric buildings, electrified transportation, and behind the meter technology, and natural solutions (e.g., tree planting, open space conservation, and contemporary land management and restoration practices).
3. Support regulatory reform for the transition to clean technologies, microgrids, low and zero carbon energy generation, and decarbonized buildings.
3.4.Support legislation and regulation that is aligned with the City’s goals of carbon neutrality by 2035 and sub-goals related to municipal operations, clean electricity, building decarbonization, clean mobility, organic waste diversion, and natural solutions.
4. 5. Support legislation and regulation that is aligned with the policies and programs set forth by the Climate Adaptation and Safety Element including using future projections for climate hazards in planning decisions, investing in community resilience, and adapting built infrastructure and natural ecosystems to climate change hazards and disturbances.
6. Support funding and resources to focus climate investments on programs and projects that support environmental justice, economic and racial equity, and head of household jobs.
7. Support extended producer responsibility for packaging and single-use product manufacturing as to encourage source reduction and the manufacturing of reusable and sustainable products.
8. Support measures that make waste diversion and reduction more equitable for our residents and businesses.
9. Support legislation that makes recycling organic waste and edible food recovery and distribution more efficient and easily accessible to residents and businesses in need.
Energy
1. Support local communities’ broad authority to form and administer Community Choice Energy (CCE) programs, reforming the California Public Utilities Commission (CPUC), and limiting decisions that
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negatively impact CCEs or otherwise shift the financial impacts of investor-owned utilities to CCEs.
2. Support California Community Choice Associations’ (Cal CCA) Regulatory and Legislative Platform, where consistent with the City’s legislative platform.
3. Support reform of CPUC policies to ensure investor-owned utilities are able and required to provide timely, accurate, and sufficiently detailed energy data.
4. Support reform of CPUC policies and state legislation that supports increased and equitable access to distributed energy resources, including rooftop solar.
5. Support legislation eliminating departing load charges which discourage the use of alternative energy resources.
5. 6. Central Coast Community Energy Policy Board and Operations Board Positions. 1 a. Support environmental justice and economic equity. b. Support 3CE investment in and support for distributed energy resources (e.g., rooftop solar), virtual power plants, demand response, behind the meter technology and energy efficiency. c. Support 3CE in evaluating and deploying programs that are climate action force multipliers (e.g., tariffed on-bill financing, virtual power plants, etc.). c.d. Support climate mitigation (e.g., emissions reductions), adaptation (e.g. distributed energy resources and grid stability), and resilience (e.g. disaster preparedness). d.e.Support the inclusion of all segments of the community in policy making and program design processes.
e.f. Support processes that are transparent, collaborative, visible, accessible and inclusive. f.g. Support rate, rebate, and revenue structures that create a robust programs budget. g.h. Support a portfolio of programs that focuses on economic, social, and environmental equity. h.i. Support a portfolio of programs that focuses on strategic and intentional long-term economic development consistent with sub-regional economic development approaches. i.j. Support regional climate action and a portfolio of programs that are strategically 1 The City Council approved the City joining Central Coast Community Energy (3CE) in September 2018 and City representatives have been seated on 3CE’s Policy Board, Operations Board, and Community Advisory Council since 2019. This section of the City’s Legislative Platform identifies City of San Luis Obispo policy positions on key topics that may come before the various boards and advisory bodies of 3CE. The policy positions contained herein are intended to guide Board member deliberation, and voting and staff review of agenda, but are not an exhaustive list of issues that may arise. These positions are intended to extend only to advocacy for or against generally applicable policy proposals being considered by 3CE and does not extend to advocacy on any individual project or entitlement application pending before any decision-making body, nor does it extend to the larger legislative platform of the City.
LEGISLATIVE ACTION PLATFORM
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implemented to achieve regional climate targets.
j.k. Support staffing required to effectively design, advertise, implement, and monitor effectiveness of the agency’s project portfolio.
k.l. Support local government access to data, transparent GHG emissions reporting, and subannual emissions factors as available. l.m.Support programs that provide funding, technical support, or legislation that promotes grid independence and resiliency.
m.n. Support processes and governance approaches that provide sufficient time for Board members to fully participate and drive decisions, from inception to implementation. n.o.Support projects that focus on strategic and intentional regional economic development consistent with regional economic development approaches, when feasible, and with entities that support fair wage practices and maximize benefit to local workforces, when feasible.
Diversity, Equity, and Inclusion
1. Support programs and policies to enhance diversity, equity, and inclusion initiatives and address systemic inequities that disproportionately impact Black, Indigenous, People of Color (BIPOC), LGBTQIA+, and other marginalized racial, ethnic, and faith-based communities.
2. Support programs and policies that disrupt anti-immigrant ideologies and center strategies for undocumented individuals’ health, well-being, and success.
3. Support education and employment opportunities and advancement of upward economic mobility and access to programs such as childcare, after-school activities, school’s family support networks and supportive services for people aging out of the foster care system.
4. Support increased availability of grant funding for ADA accessibility improvements and connectivity to streets, parks, and other public infrastructure.
5. Support amendments to the California Voting Rights Act to expand safe harbor provisions to include remedies, in addition to district elections, to enhance quantifiable equity gains in participation and representation in local elections. Support the expansion of the safe harbor provisions of the California Voting Rights Act to include options other than district elections.
6.5.Support policies that protect voting rights and work to disrupt voter suppression tactics that disproportionately impact Black, Indigenous, and other communities of color.
7.6.Support legislation that provides funding sources for appropriate human service agencies that support the mission of the Human Relations Commission.
7. Support legislation and funding to increase affordable and equitable childcare services and activities,
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and options for working low-income families.
8. Support legislation related to implementation of the Racial Equity Framework and resources and tools to promote racial equity and address structural racism.
8.9. Homelessness Resources Advocacy
1. Support legislation and funding for the prevention of homelessness and support of families and individuals vulnerable to becoming homeless.
2. Support funding for project-based, permanent affordable housing.
3. Support funding for the entire housing spectrum (including affordable units, ADUs, Tiny Homes, Temporary Emergency Shelters and family housing, and supportive housing for all homeless individuals and families including the mentally ill and aging adults).
4. Advocate for increased flexibility in the use of Federal Funds at the local level to address the full spectrum of services and transitional housing for individuals who are unhoused.
5. Support nonprofit eviction prevention services for low-income individuals and families.
6. Support programs and funding to encourage private market landlords to provide affordable units, participate in housing voucher programs and upgrade units for energy efficiency.
7. Support additional funding that encourages unique multi-departmental and inter-governmental collaboration to assist individuals experiencing homelessness, such as the City’s Community Action Team (CAT) and Mobile Crisis Unit (MCU), as well as Crisis Intervention Training (CIT) for public safety personnel.
8. Support employment services and job training forindividuals who are homeless or at-risk of becoming homeless.
9. Support funding for federal, state, county and local, non-profit and faith community’s coordination in preventing and ending homelessness.
10. Support funding for the removal and storage of homeless individual’s belongings and the cleaning of sites used by unhoused residents.
11. Support funding and county programs that promote whole person care approaches that include access to expanded medical, mental, and behavioral health services, including substance use disorder treatment services, and new approaches to financing health care access and patient wellness to
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reduce avoidable emergency room visits, hospital stays and readmissions.
12. Support increased funding and statutory authorization for crisis intervention, involuntary assessment and commitment, guardianship control, and health welfare intervention and supervision of those suffering from chronic homelessness, mental illness and addiction and recognition of mental illness and addiction as contributors to chronic homelessness.
13. Support streamlined protocols and metrics to be used by homeless service providers, local agencies, and other non-governmental partners to capture and share accurate statistics of individuals experiencing homelessness, including vacancy rates, in-flow and out-flow information, cost-reporting of services provided and rendered, and individuals successfully housed.
14. Oppose legislation that seeks to circumvent local control and consideration of local circumstances and safety of the general public when addressing homelessness.
15. Support legislation , programs, funding, court intervention, and statutory authorization for a unified crisis response system and enhances the ability of the County Behavioral Health Director, crisis response personnel, family members and social service providers to share information necessary for effective treatment interventions and to compel assisted outpatient treatment for a person exiting a conservatorship and those lacking capacity to provide for their own healthcare, shelter and food needs.
16. Support legislation that would allow the courts and crisis intervention personnel to consider a person’s medical, addiction and mental health conditions, history of adverse impacts on community health and safety, and capacity of individuals to provide for their own health, shelter and food needs in mandating program participation in connection with criminal justice and other contacts, including or expansion of the definition of “gravely disabled” under code section 5150 et seq. in evaluating whether an individual is a danger to themselves or others.
17. Support legislation for Mental Health Services Act (MHSA) to allow for flexibility in funds earmarked for “Innovation” programs that are aimed at finding new and different ways to provide services.
18. Support legislation, funding, programs and policies to help expand capacity in local psychiatric health facilities, delivery of case management, drug, alcohol, and detoxification services and facilities, and mental health services for all County residents.
19. Advocate that the County lead in the area of expanding humane shelter and housing opportunities for the unhoused population and expand outreach and case management services specifically tailored to the needs of homeless individuals in the County to transition out of homelessness.
20. Support the use of data from public safety, City, and regional Community Action Teams (CAT) and
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Mobile Crisis Units (MCU) outcomes, to advocate that the County allocate new resources to scale up these programs to match the need.
21. Support an effective and efficient update implementation of the 10-Year Plan to End Chronic Homelessness that is action-oriented and focused on measurable, positive and realistic outcomesSan Luis Obispo County’s 5 Year Plan to Address Homelessness.
22. Support state and federal funding of mandates to provide care and services to vulnerable populations.
23. Support legislative efforts to repeal Article 34 of the California Constitution, which requires majority approval by the voters of a city or county for the development, construction, or acquisition of a publicly funded affordable housing project.
Community Development
1. Support local control of land use planning and zoning matters.
2. Support State and Federal assistance to prevent the loss of housing for those impacted by local, state, or federal disasters.
3. Support reforms of the State mandated HCD Regional Housing Need Allocations process to recognize local resource limitations and align infrastructure and other funding to help communities meet mandated housing requirements.
4. Support funding of on-campus housing at Cal Poly for students, staff and faculty, and University acquisition of residences for staff and faculty housing.
5. Support increased funding for affordable housing and supportive housing services for very low, low, and moderate income individuals and families in all cities and communities and opposing the erosion of local inclusionary housing and in-lieu fee programs.
6. Support continued funding of National Housing Trust Fund and streamlined and efficient implementation regulations at the state level.
7. Support additional state funding to implement AB 32 (The California Global Warming Solutions Act of 2006) and SB 375 (The Sustainable Communities and Climate Protection Act of 2008) through local general plan updates that implement the regional sustainable communities plan and alternative planning strategy, if needed.
8. Advocate for funding for the identification, acquisition, maintenance and restoration of historic sites and structures.
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9. Support continued and expanded funding for the Community Development Block Grant (CDBG) program.
10. Support continued local control over mobile home park rent stabilization and local control over the conversion of mobile home parks to other uses to ensure that low-incomemobile home park residents are not involuntarily removed from homes or otherwise subject to involuntary displacement due to economic impacts of parks subdivision or conversion.
11. Encourage the protection, enhancement and increased production of mobile home park residency opportunities.
12. Promote resolving regulatory or financial barriers to implement AB 811 (2008) property-assessed clean energy districts.
13. Encourage continued viability and expansion of inclusionary housing provisions and avoidance of conflicts with Costa-Hawkins Act.
14. Advocate for the ability to issue parking citations on private property.
15. Support responsible review and revision of CEQA to ensure sound environmental determinations.
16. Promote pragmatic and clarifying actions to implement Proposition 64 Cannabis legalization, including increased funding for health education, the preservation of local land use decision making, reconciliation of conflicts in state and federal law, and systems for legal banking.
17. Support increased relocation assistance (AB 1482 2019) when a tenant is evicted due to no-fault of their own.
18. Support a comprehensive approach to renter protections for rental housing.
16.19. Support funding for seismic retrofitting for buildings that haven't been retrofitted.
Economic Development
1. Support state and federal assistance for those people and businesses facing severe economic losses due to pandemic or other disasters.
2. Support regional economic activities except for those that promote weapons or fossil fuel production or distribution activities.
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3. Support direct assistance and/or legislation that supports local agencies with recovering costs related to the pandemic or other disasters and stimulate economic development, resiliency, and recovery.
4. Support funding and legislation using tax credits or other incentive programs to encourage research and development by businesses in California.
5. Support funding and policies for the promotion of California and the City and County of San Luis Obispo as a place to locate businesses that provide head-of-household jobs.
6. Support economic development that is integrated with articulated Major City Goals such as climate action, environmental protection and social justice and diversity objectives.
7. Support funding for the state tourism promotion program.
8. Support the effective and efficient use of all communications technologies including voice, video, data, and information services over wired and wireless transmission technologies and supporting net neutrality.
9. Support telecommunications reform legislation and other measures that preserve local control over public rights-of-way, protect local resources, broadband for all residents and guarantee access to, funding for, and local flexibility in utilizing funds for public, educational and government (PEG) access television.
10. Support the expansion of public infrastructure financing tools and funding for infrastructure.
Finance
1. Support meaningful fiscal reform that allows each level of government to adequately finance its service responsibilities while continuing to support efforts to protect the City from loss of revenues due to State take-aways and unfunded State or Federal mandates.
2. Oppose initiatives that unduly burden and/or prohibit local government ability to support essential services to the community.
3. Support collection of the full amount of local transient occupancy tax from online sales of lodging.
4. Support the continuation of California Specialized Training Institute activities within San Luis Obispo County.
5. Oppose removal of the municipal bond tax exemption.
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6. Support legislation to modernize the Ralph M. Brown Act to provide increased flexibility for remote participation in public meetings by elected and appointed officials and provide increased opportunities for public engagement.
Human Resources/Employee Relations
1. Support additional workers’ compensation reforms that lower employers' costs while still protecting workers and oppose legislation that would restrict appropriate cost controls in the workers’ compensation system.
2. Support pension and retiree health benefits reform efforts, policy changes, and permissible administration decisions aimed at reducing unfunded liabilities, reducing costs, and ensuring the longterm viability of the defined benefit pension system in concert with the League of California Cities and the California Public Employees Retirement System (PERS) Board of Directors.
3. Oppose the expansion of property rights in public employment and procedural requirements that hinder or significantly increase the public costs of effective performance management, including legislation that curtails management rights or obstructs the timely, efficient, and cost-effective implementation of performance management or disciplinary measures.
4. Support legislation to protect the City's continued ability to administer its Cafeteria Benefit Plan and maintain comprehensive health care coverage for eligible employees, in a financially sustainable manner.
5. Support reforms that limit the financial impacts of joint and several liability on public entities.
6. Support the clarification, modification or repeal of AB 646 fact finding requirements and oppose measures that reduces local control over public employee disputes.
7. Oppose measures that curtail management rights or impose local government mandated employee benefits that should be directly negotiated between labor groups and employers.
8. Support Federal legislation to modify, refine, or eliminate Federal Labor Standards Act (FLSA) requirements on public agencies.
9. Support reforms that limit the joint and several liability to agencies who have entered into Joint Powers Agreements (JPAs).
10. Support meaningful statewide and national efforts to make quality health care more affordable and
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accessible to residents and reduce costs for cities and employers.
Public Safety
1. Support new and continued State and Federal funding for school safety, disaster preparedness, earthquake preparedness, Homeland Security, hazardous material response, State COPS (Citizen’s Options for Public Safety) program, CIT (Crisis Intervention Training) and other public safety activities.
2. Support preservation of the City's authority to investigate police misconduct.
3. Support local control on issuance of concealed weapons permits.
4. Support legislation to help curb drug and alcohol-related criminal behavior and underage consumption.
5. Support legislation to limit or end the sale of all nonflavored and flavored electronic smoking device products, including mint and menthol and to increase enforcement and education related to their use.
6. Oppose new or increased state fees for state-provided law enforcement services.
7. Support the fair and efficient allocation of radio spectrum that provides quality frequencies, free from interference, for all local public safety communication needs.
8. Support efforts to enhance radio and data system(s) stability and interoperability among public safety agencies and jurisdictions.
9. Support efforts to reduce retention periods for video monitoring data not related to an identified incident or operation.
10.9. Preserve the City's right to regulate activities with adverse health and safety impacts on local streets, sidewalks, public spaces and rights-of-way.
11.10. Support legislation to improve and enhance the safety of cargo transported via rail, including but not limited to: safety enhancements for rail vessel construction with an emphasis on efforts to rapidly improve the safe transport of volatile crude oil and limit the use of older, “grandfathered” containers and vessels; enhancements in remote monitoring and control of railcar speeds; reduction of railcar speeds in populated areas like San Luis Obispo; enhancements in communications, notifications and
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information dissemination to local governments, especially public safety agencies.
12.11. Support and expand funding and programs to local jurisdictions to proactively reduce fire risk attributed to heavy vegetative fuels loads, high tree mortality, drought, and climate change to remove diseased, dead and/or down combustible vegetation, thin forests to improve forest health, and create effective defensible space between the undeveloped and developed environments.
13.12. Support grants and aid to land/property owners with properties one mile or less from natural vegetation, which are threatened by wind-driven fire events, to harden structures again fire impingement and create sustainable defensible spaces.
14.13. Support grants and aid to local governments to develop modern evacuation communications systems to effectively reach all residents in a timely fashion via voice, text, email, and other electronic means.
15.14. Support legislation to preserve and enhance local control, at the city level, for the provision of public safety services, including the scope and provision of medical and non-medical emergency services and legislation that would result in the implementation of a statewide modern earthquake notification and evacuation communications system to effectively reach all residents in a timely fashion via voice, text, email, and other electronic means, which is available for use by local governments at the discretion of local governments.
16.15. Support uniformity of state and federal regulations of drones and the study and adoption of appropriate local airport protections and public safety exemptions.
17.16. Support legislation regarding the safe transport and storage of nuclear waste.
18.17. Support legislation to address the education, funding, and treatment of opioid addiction.
19.18. Support legislation that expands funding to manage vegetation and fuel sources in the wildland urban interface.
20.19. Support legislation to provide funding to help communities prepare for response, recovery and be resilient after natural disasters.
20. Support regional economic development programs and funding to remove unwanted firearms from homes and businesses.
21. Support responsive intervention programs that promote accountability and divert people away from both crime and prison.
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Public Works
1. Support increased availability of grant funding to replace aging infrastructure of all types, e.g. streets, bridges, water, sewer, parks, and storm sewer systems, etc.
2. Support increased funding for flood protection, clean stormwater and low impact infrastructure projects.
3. Support cooperation and prompt approval from Federal and State regulatory agencies (such as the Department of Fish & Wildlife, Regional Water Quality Control Board and the Army Corps of Engineers) for necessary projects involving the City's creek system.
4. Support monetary incentives or grant funding for electric vehicles for replacement of municipal fleet equipment.
5. Support funding and policies that support and enhance active transportation modes such as bicycles, pedestrian, and transit.
6. Support continued protection of SB-1 and other funding for transportation infrastructure maintenance.
7. Support policies and legislation that maintains local control of parking rules, regulations, rates and citation fees.
6.8.Support permanently allowing local governments to use design-build processes and expand the types of projects that cities can use design build and progressive design-build.
Parks and Recreation and Natural Resources
1. Support State and Federal funding and other measures to promote the acquisition, protection, preservation and restoration of natural resources, open space, coastal resources, signature landforms, wetlands and park development, including continued funding for the Land and Water Conservation Grant Program and for the California Conservation Corps.
2. Support the expansion of National Marine Sanctuary off the coast of San Luis Obispo County to protect this fragile habitat from offshore oil and gas development.
3. Oppose any development under existing or new offshore oil and gas leases off the Coast of San Luis Obispo County.
4. Oppose any development under existing or new oil and gas leases in San Luis Obispo County.
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5. Support and seek State and Federal funding and other measures to conduct research and implement land management measures for the purpose of carbon sequestration.
6. Support measures to prohibit discharge of pollutants into the creeks and ocean (e.g. selenium contaminated waters from the San Joaquin valley).
7. Support State and Federal funding and other measuresexpedited distribution of remaining Proposition 1 bond funds to take advantage of the many favorable opportunities for land and easement acquisition and enhancement project contracting.
8. Support legislative exemption from property taxes on lands dedicated to open space purposes, which may be outside the boundaries of the jurisdiction owning such lands.
9. Support funding to reduce or mitigate negative impacts to vital regional and community services and enhance public access to parks, open space, after school programming, senior services, facilities that promote physical activity, protect natural resources, and strengthen safety and security.
10. Promote policies that recognize the benefits of parks and recreational facilities in the advancement of "sustainable communities" and curbing greenhouse gas emissions including: strengthening policies that fund parks, open-space, bike lanes and non-motorized trails through the development and implementation of a carbon credit and offset program, and advocating for the strong integration of local and regional park and non-motorized transportation improvements into "Smart Growth Scenarios" pursuant to SB 375 (2008).
11. Support access and connectivity to joint use of schools; parks and open space; development of streets and trails that encourage physical activity and healthy living.
12. Support extension or permanent legislation at the federal level of enhanced tax deductions for charitable donations of Conservation Easements.
13. Support legislation to limit the opening of national parks (or other protected public lands, e.g. Carrizo Plain,) to fossil fuel extraction.
Transportation
1. Support changes in gas tax laws that allow local tax for transportation purposes based on a majority vote of the public, as well as revenue replacement for electric vehicles to support transportation infrastructure.
2. Support the continuation of, and increased funding sources for street maintenance projects,
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transportation improvements, transit operations and multimodal facility projects.
3. Support funding sources for fleet and transit electrification.
4. Support transportation funding for San Luis Obispo County, in particular funding that provides for alternative modes of transportation with clean air benefits or reductions in Vehicle Miles Traveled (VMT) and greenhouse gases.
5. Support transportation funding and policy that promote regional bike and pedestrian connections between cities and other population centers.
6. Support actions to: (1) promote cooperation and mutual support between metropolitan planning organization (MPO) agencies and local transit providers, and (2) discourage trends toward MPO agencies/regional "control" of local transit providers.
7. Support cooperation of private transportation companies (such as Union Pacific Railroad) to reach agreements for sharing of properly secured right of way corridors for other compatible uses such as bicycle and pedestrian facilities.
8. Oppose the proposed diversion of any funding source for transportation that reduces amounts designated for transit operations.
9. Support funding for projects to implement adopted complete street plans demonstrated to improve public health and reduce greenhouse gas emissions.
10. Support provision of Cap-and-Trade funding for transportation projects.
11. Support increased funding for existing Active Transportation Program (ATP) and other sources of bicycle and pedestrian transportation funding.
12. Support funding for existing and future transportation needs.
13. Support funding strategies to reduce the personal cost of transportation, especially cargo and electricassist bicycles and their supporting infrastructure.
14. Oppose proposed changes to statistical methodologies such as Metropolitan Statistical Areas that have the potential to reduce funding for transportation improvements.
15. Support improvements of state and federal standards guiding application of street design and traffic control devices to allow more flexibility for local agencies to prioritize safety, particularly for vulnerable road users, consistent with calls to action from groups like the National Transportation
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Safety Board, NACTO and others.
16. In alignment with the National Association of City Transportation Officials (NACTO), support legislation for a Bike Safety Stop that would authorize a person bicycling to treat a stop sign like a yield sign, giving right-of-way to other traffic at an intersection before proceeding safely through, but without the requirement to come to a full stop.
15.17. Support consideration of increased funding and options for safe bike and pedestrian crossing of railroad tracks, including bridges, underpasses and controlled at-grade crossings.
Utilities
1. Support clean water and drinking water funding programs.
2. Support recycling, waste diversion, and zero waste programs and enhancing local government's ability to comply with solid waste reduction requirements (includes building of recycling infrastructure and organics / biosolids composting facilities).
3. Support measures that require the State Water Resources Control Board and Regional Water Quality Control Boards establish a process to evaluate, in advance of adoption, the costs of compliance for pending and future regulatory actions on National Pollutant Discharge Elimination System (NPDES) permittees.
4. Support legislation that requires the State's environmental agencies to conduct peer review of proposed regulations to ensure that the proposal is based on sound science.
5. Support the elimination of mandatory minimum penalties for violations of NPDES Requirements and returning discretionary control to the Regional Water Quality Control Board Executive Officers (i.e. repeal SB 709) (i.e., California Water Code Section 13385[h]).
6. Support measures to ensure reasonableness in the administration of NPDES permit governing City operations, including pursuing a municipal representative on the Regional Water Quality Control Board.
7. Support the safe, responsible, and cost-effective reuse of Exceptional Quality or better biosolids.
8. Support sustainable and resilient energy programs.
9. Support legislation allowing cities/agencies to establish fees for the costs of operating mandated
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water quality programs such as, but not limited to, municipal storm water and total maximum daily loading.
10. Support federal legislative action and funding to transfer Salinas Reservoir from Army Corps of Engineers Military Project to Army Corps of Engineers Civil Works Project.
11. Support federal and state funding that would allow for transfer of Salinas Reservoir from the Army Corps of Engineers to the County or City of San Luis Obispo.
12. Support water conservation and water use efficiency best management practices.
13. Support amendments to the Urban Water Management Planning Act to recognize past investment in water conservation and the City's ability to comply with SBx7-7 (2009) and other water conservation regulations.
14. Oppose legislation that requires recycled water to be included in water conservation regulations.
15. Oppose mandatory consolidation of water systems.
16. Support the expansion of recycled water production and use, including potable reuse.
17. Support the use of PublicGoods Fundsfor the development and installation of energy saving or green energy generating projects to benefit local government.
18. Oppose legislation that diminishes the City’s existing or potential water rights.
19. Support the protection of water resources.
20. Support the protection of our natural resourcesfrom invasive species.
21. Support regional water resiliency initiatives.
22. Support streamlined water rights amendment processes for minor water rights permit changes.
23. Support federal and statewide funding of water infrastructure projects.
24. Oppose legislation that inhibits the City's ability to collect water and sewer bills either through terminating service for non-payment or other reasonable means absent public health or safety emergencies.
25. Oppose legislation that restricts water and sewer rates for certain customers to below the cost to
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provide service based on legitimate public interests such as affordable housing, senior housing, nonprofit public beneficial uses, and/or educational uses.
26. Support amendments to stormwater regulatory requirements to reduce mandatory minimum fines and penalties and the recovery of private attorneys’ fees for technical non-compliance issues that do not result in adverse public health impacts or environmental harm.
27. Support stormwater requirements that are related to specific issues and include reasonable implementation timeframes and funding.
28. Support autonomy for management of individual Sustainable Groundwater Management Act designated basins within the county.
29. Support funding for implementation of Groundwater Sustainability Plans including the San Luis Obispo/Edna Valley Basin.
County/Regional Priorities
1. Support County land use policies and practices that are consistent with the Memorandum of Agreement adopted by the City Council and County Board of Supervisors in 2016 regarding development near the edges of the City and opposing inconsistent policies and practices.
2. Encourage participation by County in providing nearby parking for County employees and clients, and alternate transportation and parking demand reduction.
3. Support County development of a local ordinance providing additional local oversight and regulation of the land application of Pollutant Concentration (PC) or better biosolids.
4. Support the County’sSan Luis Obispo County Zone 9 Flood Control and Water Conservation District efforts to solve City/County flood problems.
5. Support the San Luis Obispo County Air Pollution Control District's legislative program, where consistent with the City's adopted policies and platform.
6. Support the San Luis Obispo Council of Governments' legislative advocacy activities, where consistent with the City's adopted policies, platform, and public policy and project objectives.
7. Support efforts to enhance dangerous animal regulation and enforcement.
8. Support the streamlining, clarification, and simplification of conflict-of-interest regulations applicable to local officials.
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9. Support efforts of other regional entities to join Central Coast Community Energy.
10. Support the Central Coast Regional Energy Network at the County Board of Supervisors, the CPUC, and related relevant entities and supporting pilot projects in the City as feasible.
11. Support regional and regulatory collaboration to fund and support climate change impact projections and coordinate approaches for increasing regional resilience.
12. Supporting requirements that development outside City jurisdiction has have adequate water supplies to support development activities and intensities and does not indirectly impose water service obligations to adjacent municipal water agencies.
13. Support assistance for those experiencing physical and mental health impacts of a pandemic or other disaster.
14. Support the Integrated Waste Management Authority’s (IWMA) legislative platform, where consistent with the City’s adopted policies, platforms, and public policy and project objectives.
15. Support regional efforts to create a spectrum of housing types (including board and care and housing types that include other supportive services) within the County to house the unhoused.
16. Encourage the County of San Luis Obispo to build complete streets when building new roads, and to upgrade existing roadways to be complete streets.
EXHIBIT A
CITY OF SAN LUIS OBISPO
LEGISLATIVE ACTION PLATFORM
Adopted by City Council Resolution No. XXXXX(2023 Series)
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The following document reflects those legislative matters on which the council majority authorizes the Mayor, City Manager and City Attorney to engage in legislative advocacy on behalf of the City without the need for further council review or authority. The council’s authorization extends only to advocacy for or against generally applicable legislative proposals being considered by local, regional, state and/or federal policy makers or regulators, as well as regional initiatives consistent with Major City Goals, and adopted City policy platforms, and does not otherwise extend to advocacy on any individual project or entitlement application pending before any decision-making body, unless specifically noted herein.
Contents
Climate Action...............................................................................................................................................3 Energy ...........................................................................................................................................................3 Diversity, Equity, and Inclusion.....................................................................................................................5 Homelessness Resources Advocacy..............................................................................................................6 Community Development.............................................................................................................................8 Economic Development................................................................................................................................9 Finance........................................................................................................................................................10 Human Resources/Employee Relations......................................................................................................11 Public Safety................................................................................................................................................12 Public Works ...............................................................................................................................................13 Parks and Recreation and Natural Resources.............................................................................................14 Transportation ............................................................................................................................................15 Utilities........................................................................................................................................................17 County/Regional Priorities........................................................................................................................19
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Climate Action
1. Support funding for communities to pay for public infrastructure that meets state greenhouse gas emission reduction goals and adopted City objectives.
2. Support funding to implement programs and related action items contained in local and regional Climate Action Plans to quantitatively reduce greenhouse gas emissions and advocate for regulatory reform, including but not limited to clean technologies, micro-grids, all electric buildings, electrified transportation, behind the meter technology, and natural solutions (e.g., tree planting, open space conservation, and contemporary land management and restoration practices).
3. Support regulatory reform for the transition to clean technologies, microgrids, low and zero carbon energy generation, and decarbonized buildings.
4. Support legislation and regulation that is aligned with the City’s goals of carbon neutrality by 2035 and sub-goals related to municipal operations, clean electricity, building decarbonization, clean mobility, organic waste diversion, and natural solutions.
5. Support legislation and regulation that is aligned with the policies and programs set forth by the Climate Adaptation and Safety Element including using future projections for climate hazards in planning decisions, investing in community resilience, and adapting built infrastructure and natural ecosystems to climate change hazards and disturbances.
6. Support funding and resources to focus climate investments on programs and projects that support environmental justice, economic and racial equity, and head of household jobs.
7. Support extended producer responsibility for packaging and single-use product manufacturing as to encourage source reduction and the manufacturing of reusable and sustainable products.
8. Support measures that make waste diversion and reduction more equitable for our residents and businesses.
9. Support legislation that makes recycling organic waste and edible food recovery and distribution more efficient and easily accessible to residents and businesses in need.
Energy
1. Support local communities’ broad authority to form and administer Community Choice Energy (CCE) programs, reforming the California Public Utilities Commission (CPUC), and limiting decisions that
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negatively impact CCEs or otherwise shift the financial impacts of investor-owned utilities to CCEs.
2. Support California Community Choice Associations’ (Cal CCA) Regulatory and Legislative Platform, where consistent with the City’s legislative platform.
3. Support reform of CPUC policies to ensure investor-owned utilities are able and required to provide timely, accurate, and sufficiently detailed energy data.
4. Support reform of CPUC policies and state legislation that supports increased and equitable access to distributed energy resources, including rooftop solar.
5. Support legislation eliminating departing load charges which discourage the use of alternative energy resources.
6. Central Coast Community Energy Policy Board and Operations Board Positions. 1 a. Support environmental justice and economic equity. b. Support 3CE investment in and support for distributed energy resources (e.g., rooftop solar), virtual power plants, demand response, behind the meter technology and energy efficiency. c. Support 3CE in evaluating and deploying programs that are climate action force multipliers (e.g., tariffed on-bill financing, virtual power plants, etc.). d. Support climate mitigation (e.g., emissions reductions), adaptation (e.g. distributed energy resources and grid stability), and resilience (e.g. disaster preparedness). e. Support the inclusion of all segments of the community in policy making and program design processes.
f. Support processes that are transparent, collaborative, visible, accessible and inclusive. g. Support rate, rebate, and revenue structures that create a robust programs budget. h. Support a portfolio of programs that focuses on economic, social, and environmental equity. i. Support a portfolio of programs that focuses on strategic and intentional long-term economic development consistent with sub-regional economic development approaches. j. Support regional climate action and a portfolio of programs that are strategically implemented to achieve regional climate targets.
1 The City Council approved the City joining Central Coast Community Energy (3CE) in September 2018 and City representatives have been seated on 3CE’s Policy Board, Operations Board, and Community Advisory Council since 2019. This section of the City’s Legislative Platform identifies City of San Luis Obispo policy positions on key topics that may come before the various boards and advisory bodies of 3CE. The policy positions contained herein are intended to guide Board member deliberation, and voting and staff review of agenda, but are not an exhaustive list of issues that may arise. These positions are intended to extend only to advocacy for or against generally applicable policy proposals being considered by 3CE and does not extend to advocacy on any individual project or entitlement application pending before any decision-making body, nor does it extend to the larger legislative platform of the City.
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k. Support staffing required to effectively design, advertise, implement, and monitor effectiveness of the agency’s project portfolio.
l. Support local government access to data, transparent GHG emissions reporting, and subannual emissions factors as available. m. Support programs that provide funding, technical support, or legislation that promotes grid independence and resiliency.
n. Support processes and governance approaches that provide sufficient time for Board members to fully participate and drive decisions, from inception to implementation. o. Support projects that focus on strategic and intentional regional economic development consistent with regional economic development approaches, when feasible, and with entities that support fair wage practices and maximize benefit to local workforces, when feasible.
Diversity, Equity, and Inclusion
1. Support programs and policies to enhance diversity, equity, and inclusion initiatives and address systemic inequities that disproportionately impact Black, Indigenous, People of Color (BIPOC), LGBTQIA+, and other marginalized racial, ethnic, and faith-based communities.
2. Support programs and policies that disrupt anti-immigrant ideologies and center strategies for undocumented individuals’ health, well-being, and success.
3. Support education and employment opportunities and advancement of upward economic mobility and access to programs such as childcare, after-school activities, school’s family support networks and supportive services for people aging out of the foster care system.
4. Support increased availability of grant funding for ADA accessibility improvements and connectivity to streets, parks, and other public infrastructure.
Support amendments to the California Voting Rights Act to expand safe harbor provisions to include remedies, in addition to district elections, to enhance quantifiable equity gains in participation and representation in local elections.
5. Support policies that protect voting rights and work to disrupt voter suppression tactics that disproportionately impact Black, Indigenous, and other communities of color.
6. Support legislation that provides funding sources for appropriate human service agencies that support the mission of the Human Relations Commission.
7. Support legislation and funding to increase affordable and equitable childcare services and activities, and options for working low-income families.
8. Support legislation related to implementation of the Racial Equity Framework and resources and tools to promote racial equity and address structural racism.
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9. Homelessness Resources Advocacy
1. Support legislation and funding for the prevention of homelessness and support of families and individuals vulnerable to becoming homeless.
2. Support funding for project-based, permanent affordable housing.
3. Support funding for the entire housing spectrum (including affordable units, ADUs, Tiny Homes, Temporary Emergency Shelters and family housing, and supportive housing for all homeless individuals and families including the mentally ill and aging adults).
4. Advocate for increased flexibility in the use of Federal Funds at the local level to address the full spectrum of services and transitional housing for individuals who are unhoused.
5. Support nonprofit eviction prevention services for low-income individuals and families.
6. Support programs and funding to encourage private market landlords to provide affordable units, participate in housing voucher programs and upgrade units for energy efficiency.
7. Support additional funding that encourages unique multi-departmental and inter-governmental collaboration to assist individuals experiencing homelessness, such as the City’s Community Action Team (CAT) and Mobile Crisis Unit (MCU), as well as Crisis Intervention Training (CIT) for public safety personnel.
8. Support employment services and job training forindividuals who are homeless or at-risk of becoming homeless.
9. Support funding for federal, state, county and local, non-profit and faith community’s coordination in preventing and ending homelessness.
10. Support funding for the removal and storage of homeless individual’s belongings and the cleaning of sites used by unhoused residents.
11. Support funding and county programs that promote whole person care approaches that include access to expanded medical, mental, and behavioral health services, including substance use disorder treatment services, and new approaches to financing health care access and patient wellness to reduce avoidable emergency room visits, hospital stays and readmissions.
12. Support increased funding and statutory authorization for crisis intervention, involuntary assessment
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and commitment, guardianship control, and health welfare intervention and supervision of those suffering from chronic homelessness, mental illness and addiction and recognition of mental illness and addiction as contributors to chronic homelessness.
13. Support streamlined protocols and metrics to be used by homeless service providers, local agencies, and other non-governmental partners to capture and share accurate statistics of individuals experiencing homelessness, including vacancy rates, in-flow and out-flow information, cost-reporting of services provided and rendered, and individuals successfully housed.
14. Oppose legislation that seeks to circumvent local control and consideration of local circumstances and safety of the general public when addressing homelessness.
15. Support legislation , programs, funding, court intervention, and statutory authorization for a unified crisis response system and enhances the ability of the County Behavioral Health Director, crisis response personnel, family members and social service providers to share information necessary for effective treatment interventions and to compel assisted outpatient treatment for a person exiting a conservatorship and those lacking capacity to provide for their own healthcare, shelter and food needs.
16. Support legislation that would allow the courts and crisis intervention personnel to consider a person’s medical, addiction and mental health conditions, history of adverse impacts on community health and safety, and capacity of individuals to provide for their own health, shelter and food needs in mandating program participation in connection with criminal justice and other contacts, including or expansion of the definition of “gravely disabled” under code section 5150 et seq. in evaluating whether an individual is a danger to themselves or others.
17. Support legislation for Mental Health Services Act (MHSA) to allow for flexibility in funds earmarked for “Innovation” programs that are aimed at finding new and different ways to provide services.
18. Support legislation, funding, programs and policies to help expand capacity in local psychiatric health facilities, delivery of case management, drug, alcohol, and detoxification services and facilities, and mental health services for all County residents.
19. Advocate that the County lead in the area of expanding humane shelter and housing opportunities for the unhoused population and expand outreach and case management services specifically tailored to the needs of homeless individuals in the County to transition out of homelessness.
20. Support the use of data from public safety, City, and regional Community Action Teams (CAT) and Mobile Crisis Units (MCU) outcomes, to advocate that the County allocate new resources to scale up these programs to match the need.
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21. Support an effective and efficient implementation of San Luis Obispo County’s 5 Year Plan to Address Homelessness.
22. Support state and federal funding of mandates to provide care and services to vulnerable populations.
23. Support legislative efforts to repeal Article 34 of the California Constitution, which requires majority approval by the voters of a city or county for the development, construction, or acquisition of a publicly funded affordable housing project.
Community Development
1. Support local control of land use planning and zoning matters.
2. Support State and Federal assistance to prevent the loss of housing for those impacted by local, state, or federal disasters.
3. Support reforms of the State mandated HCD Regional Housing Need Allocations process to recognize local resource limitations and align infrastructure and other funding to help communities meet mandated housing requirements.
4. Support funding of on-campus housing at Cal Poly for students, staff and faculty, and University acquisition of residences for staff and faculty housing.
5. Support increased funding for affordable housing and supportive housing services for very low, low, and moderate income individuals and families in all cities and communities and opposing the erosion of local inclusionary housing and in-lieu fee programs.
6. Support continued funding of National Housing Trust Fund and streamlined and efficient implementation regulations at the state level.
7. Support additional state funding to implement AB 32 (The California Global Warming Solutions Act of 2006) and SB 375 (The Sustainable Communities and Climate Protection Act of 2008) through local general plan updates that implement the regional sustainable communities plan and alternative planning strategy, if needed.
8. Advocate for funding for the identification, acquisition, maintenance and restoration of historic sites and structures.
9. Support continued and expanded funding for the Community Development Block Grant (CDBG) program.
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10. Support continued local control over mobile home park rent stabilization and local control over the conversion of mobile home parks to other uses to ensure that low-incomemobile home park residents are not involuntarily removed from homes or otherwise subject to involuntary displacement due to economic impacts of parks subdivision or conversion.
11. Encourage the protection, enhancement and increased production of mobile home park residency opportunities.
12. Promote resolving regulatory or financial barriers to implement AB 811 (2008) property-assessed clean energy districts.
13. Encourage continued viability and expansion of inclusionary housing provisions and avoidance of conflicts with Costa-Hawkins Act.
14. Advocate for the ability to issue parking citations on private property.
15. Support responsible review and revision of CEQA to ensure sound environmental determinations.
16. Promote pragmatic and clarifying actions to implement Proposition 64 Cannabis legalization, including increased funding for health education, the preservation of local land use decision making, reconciliation of conflicts in state and federal law, and systems for legal banking.
17. Support increased relocation assistance (AB 1482 2019) when a tenant is evicted due to no-fault of their own.
18. Support a comprehensive approach to renter protections for rental housing.
19. Support funding for seismic retrofitting for buildings that haven't been retrofitted.
Economic Development
1. Support state and federal assistance for those people and businesses facing severe economic losses due to pandemic or other disasters.
2. Support regional economic activities except for those that promote weapons or fossil fuel production or distribution activities.
3. Support direct assistance and/or legislation that supports local agencies with recovering costs related to the pandemic or other disasters and stimulate economic development, resiliency, and recovery.
4. Support funding and legislation using tax credits or other incentive programs to encourage research
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and development by businesses in California.
5. Support funding and policies for the promotion of California and the City and County of San Luis Obispo as a place to locate businesses that provide head-of-household jobs.
6. Support economic development that is integrated with articulated Major City Goals such as climate action, environmental protection and social justice and diversity objectives.
7. Support funding for the state tourism promotion program.
8. Support the effective and efficient use of all communications technologies including voice, video, data, and information services over wired and wireless transmission technologies and supporting net neutrality.
9. Support telecommunications reform legislation and other measures that preserve local control over public rights-of-way, protect local resources, broadband for all residents and guarantee access to, funding for, and local flexibility in utilizing funds for public, educational and government (PEG) access television.
10. Support the expansion of public infrastructure financing tools and funding for infrastructure.
Finance
1. Support meaningful fiscal reform that allows each level of government to adequately finance its service responsibilities while continuing to support efforts to protect the City from loss of revenues due to State take-aways and unfunded State or Federal mandates.
2. Oppose initiatives that unduly burden and/or prohibit local government ability to support essential services to the community.
3. Support collection of the full amount of local transient occupancy tax from online sales of lodging.
4. Support the continuation of California Specialized Training Institute activities within San Luis Obispo County.
5. Oppose removal of the municipal bond tax exemption.
6. Support legislation to modernize the Ralph M. Brown Act to provide increased flexibility for remote participation in public meetings by elected and appointed officials and provide increased opportunities for public engagement.
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Human Resources/Employee Relations
1. Support additional workers’ compensation reforms that lower employers' costs while still protecting workers and oppose legislation that would restrict appropriate cost controls in the workers’ compensation system.
2. Support pension and retiree health benefits reform efforts, policy changes, and permissible administration decisions aimed at reducing unfunded liabilities, reducing costs, and ensuring the longterm viability of the defined benefit pension system in concert with the League of California Cities and the California Public Employees Retirement System (PERS) Board of Directors.
3. Oppose the expansion of property rights in public employment and procedural requirements that hinder or significantly increase the public costs of effective performance management, including legislation that curtails management rights or obstructs the timely, efficient, and cost-effective implementation of performance management or disciplinary measures.
4. Support legislation to protect the City's continued ability to administer its Cafeteria Benefit Plan and maintain comprehensive health care coverage for eligible employees, in a financially sustainable manner.
5. Support reforms that limit the financial impacts of joint and several liability on public entities.
6. Support the clarification, modification or repeal of AB 646 fact finding requirements and oppose measures that reduces local control over public employee disputes.
7. Oppose measures that curtail management rights or impose local government mandated employee benefits that should be directly negotiated between labor groups and employers.
8. Support Federal legislation to modify, refine, or eliminate Federal Labor Standards Act (FLSA) requirements on public agencies.
9. Support reforms that limit the joint and several liability to agencies who have entered into Joint Powers Agreements (JPAs).
10. Support meaningful statewide and national efforts to make quality health care more affordable and accessible to residents and reduce costs for cities and employers.
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Public Safety
1. Support new and continued State and Federal funding for school safety, disaster preparedness, earthquake preparedness, Homeland Security, hazardous material response, State COPS (Citizen’s Options for Public Safety) program, CIT (Crisis Intervention Training) and other public safety activities.
2. Support preservation of the City's authority to investigate police misconduct.
3. Support local control on issuance of concealed weapons permits.
4. Support legislation to help curb drug and alcohol-related criminal behavior and underage consumption.
5. Support legislation to limit or end the sale of all nonflavored and flavored electronic smoking device products, including mint and menthol and to increase enforcement and education related to their use.
6. Oppose new or increased state fees for state-provided law enforcement services.
7. Support the fair and efficient allocation of radio spectrum that provides quality frequencies, free from interference, for all local public safety communication needs.
8. Support efforts to enhance radio and data system(s) stability and interoperability among public safety agencies and jurisdictions.
9. Preserve the City's right to regulate activities with adverse health and safety impacts on local streets, sidewalks, public spaces and rights-of-way.
10. Support legislation to improve and enhance the safety of cargo transported via rail, including but not limited to: safety enhancements for rail vessel construction with an emphasis on efforts to rapidly improve the safe transport of volatile crude oil and limit the use of older, “grandfathered” containers and vessels; enhancements in remote monitoring and control of railcar speeds; reduction of railcar speeds in populated areas like San Luis Obispo; enhancements in communications, notifications and information dissemination to local governments, especially public safety agencies.
11. Support and expand funding and programs to local jurisdictions to proactively reduce fire risk attributed to heavy vegetative fuels loads, high tree mortality, drought, and climate change to remove diseased, dead and/or down combustible vegetation, thin forests to improve forest health, and create effective defensible space between the undeveloped and developed environments.
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12. Support grants and aid to land/property owners with properties one mile or less from natural vegetation, which are threatened by wind-driven fire events, to harden structures again fire impingement and create sustainable defensible spaces.
13. Support grants and aid to local governments to develop modern evacuation communications systems to effectively reach all residents in a timely fashion via voice, text, email, and other electronic means.
14. Support legislation to preserve and enhance local control, at the city level, for the provision of public safety services, including the scope and provision of medical and non-medical emergency services and legislation that would result in the implementation of a statewide modern earthquake notification and evacuation communications system to effectively reach all residents in a timely fashion via voice, text, email, and other electronic means, which is available for use by local governments at the discretion of local governments.
15. Support uniformity of state and federal regulations of drones and the study and adoption of appropriate local airport protections and public safety exemptions.
16. Support legislation regarding the safe transport and storage of nuclear waste.
17. Support legislation to address the education, funding, and treatment of opioid addiction.
18. Support legislation that expands funding to manage vegetation and fuel sources in the wildland urban interface.
19. Support legislation to provide funding to help communities prepare for response, recovery and be resilient after natural disasters.
20. Support funding to remove unwanted firearms from homes and businesses.
21. Support responsive intervention programs that promote accountability and divert people away from both crime and prison.
Public Works
1. Support increased availability of grant funding to replace aging infrastructure of all types, e.g. streets, bridges, water, sewer, parks, and storm sewer systems, etc.
2. Support increased funding for flood protection, clean stormwater and low impact infrastructure projects.
3. Support cooperation and prompt approval from Federal and State regulatory agencies (such as the
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Department of Fish & Wildlife, Regional Water Quality Control Board and the Army Corps of Engineers) for necessary projects involving the City's creek system.
4. Support monetary incentives or grant funding for electric vehicles for replacement of municipal fleet equipment.
5. Support funding and policies that support and enhance active transportation modes such as bicycles, pedestrian, and transit.
6. Support continued protection of SB-1 and other funding for transportation infrastructure maintenance.
7. Support policies and legislation that maintains local control of parking rules, regulations, rates and citation fees.
8. Support permanently allowing local governments to use design-build processes and expand the types of projects that cities can use design build and progressive design-build.
Parks and Recreation and Natural Resources
1. Support State and Federal funding and other measures to promote the acquisition, protection, preservation and restoration of natural resources, open space, coastal resources, signature landforms, wetlands and park development, including continued funding for the Land and Water Conservation Grant Program and for the California Conservation Corps.
2. Support the expansion of National Marine Sanctuary off the coast of San Luis Obispo County to protect this fragile habitat from offshore oil and gas development.
3. Oppose any development under existing or new offshore oil and gas leases off the Coast of San Luis Obispo County.
4. Oppose any development under existing or new oil and gas leases in San Luis Obispo County.
5. Support and seek State and Federal funding and other measures to conduct research and implement land management measures for the purpose of carbon sequestration.
6. Support measures to prohibit discharge of pollutants into the creeks and ocean (e.g. selenium contaminated waters from the San Joaquin valley).
7. Support State and Federal funding and other measures to take advantage of opportunities for land and easement acquisition and enhancement project contracting.
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8. Support legislative exemption from property taxes on lands dedicated to open space purposes, which may be outside the boundaries of the jurisdiction owning such lands.
9. Support funding to reduce or mitigate negative impacts to vital regional and community services and enhance public access to parks, open space, after school programming, senior services, facilities that promote physical activity, protect natural resources, and strengthen safety and security.
10. Promote policies that recognize the benefits of parks and recreational facilities in the advancement of "sustainable communities" and curbing greenhouse gas emissions including: strengthening policies that fund parks, open-space, bike lanes and non-motorized trails through the development and implementation of a carbon credit and offset program, and advocating for the strong integration of local and regional park and non-motorized transportation improvements into "Smart Growth Scenarios" pursuant to SB 375 (2008).
11. Support access and connectivity to joint use of schools; parks and open space; development of streets and trails that encourage physical activity and healthy living.
12. Support extension or permanent legislation at the federal level of enhanced tax deductions for charitable donations of Conservation Easements.
13. Support legislation to limit the opening of protected public lands, e.g. Carrizo Plain, to fossil fuel extraction.
Transportation
1. Support changes in gas tax laws that allow local tax for transportation purposes based on a majority vote of the public, as well as revenue replacement for electric vehicles to support transportation infrastructure.
2. Support the continuation of, and increased funding sources for street maintenance projects, transportation improvements, transit operations and multimodal facility projects.
3. Support funding sources for fleet and transit electrification.
4. Support transportation funding for San Luis Obispo County, in particular funding that provides for alternative modes of transportation with clean air benefits or reductions in Vehicle Miles Traveled (VMT) and greenhouse gases.
5. Support transportation funding and policy that promote regional bike and pedestrian connections between cities and other population centers.
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6. Support actions to: (1) promote cooperation and mutual support between metropolitan planning organization (MPO) agencies and local transit providers, and (2) discourage trends toward MPO agencies/regional "control" of local transit providers.
7. Support cooperation of private transportation companies (such as Union Pacific Railroad) to reach agreements for sharing of properly secured right of way corridors for other compatible uses such as bicycle and pedestrian facilities.
8. Oppose the proposed diversion of any funding source for transportation that reduces amounts designated for transit operations.
9. Support funding for projects to implement adopted complete street plans demonstrated to improve public health and reduce greenhouse gas emissions.
10. Support provision of Cap-and-Trade funding for transportation projects.
11. Support increased funding for existing Active Transportation Program (ATP) and other sources of bicycle and pedestrian transportation funding.
12. Support funding for existing and future transportation needs.
13. Support funding strategies to reduce the personal cost of transportation, especially cargo and electricassist bicycles and their supporting infrastructure.
14. Oppose proposed changes to statistical methodologies such as Metropolitan Statistical Areas that have the potential to reduce funding for transportation improvements.
15. Support improvements of state and federal standards guiding application of street design and traffic control devices to allow more flexibility for local agencies to prioritize safety, particularly for vulnerable road users, consistent with calls to action from groups like the National Transportation Safety Board, NACTO and others.
16. In alignment with the National Association of City Transportation Officials (NACTO), support legislation for a Bike Safety Stop that would authorize a person bicycling to treat a stop sign like a yield sign, giving right-of-way to other traffic at an intersection before proceeding safely through, but without the requirement to come to a full stop.
17. Support consideration of increased funding and options for safe bike and pedestrian crossing of railroad tracks, including bridges, underpasses and controlled at-grade crossings.
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Utilities
1. Support clean water and drinking water funding programs.
2. Support recycling, waste diversion, and zero waste programs and enhancing local government's ability to comply with solid waste reduction requirements (includes building of recycling infrastructure and organics / biosolids composting facilities).
3. Support measures that require the State Water Resources Control Board and Regional Water Quality Control Boards establish a process to evaluate, in advance of adoption, the costs of compliance for pending and future regulatory actions on National Pollutant Discharge Elimination System (NPDES) permittees.
4. Support legislation that requires the State's environmental agencies to conduct peer review of proposed regulations to ensure that the proposal is based on sound science.
5. Support the elimination of mandatory minimum penalties for violations of NPDES Requirements and returning discretionary control to the Regional Water Quality Control Board Executive Officers (i.e., California Water Code Section 13385[h]).
6. Support measures to ensure reasonableness in the administration of NPDES permit governing City operations, including pursuing a municipal representative on the Regional Water Quality Control Board.
7. Support the safe, responsible, and cost-effective reuse of Exceptional Quality or better biosolids.
8. Support sustainable and resilient energy programs.
9. Support legislation allowing cities/agencies to establish fees for the costs of operating mandated water quality programs such as, but not limited to, municipal storm water and total maximum daily loading.
10. Support federal legislative action and funding to transfer Salinas Reservoir from Army Corps of Engineers Military Project to Army Corps of Engineers Civil Works Project.
11. Support federal and state funding that would allow for transfer of Salinas Reservoir from the Army Corps of Engineers to the County or City of San Luis Obispo.
12. Support water conservation and water use efficiency best management practices.
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13. Support amendments to the Urban Water Management Planning Act to recognize past investment in water conservation and the City's ability to comply with SBx7-7 (2009) and other water conservation regulations.
14. Oppose legislation that requires recycled water to be included in water conservation regulations.
15. Oppose mandatory consolidation of water systems.
16. Support the expansion of recycled water production and use, including potable reuse.
17. Support the use of PublicGoods Fundsfor the development and installation of energy saving or green energy generating projects to benefit local government.
18. Oppose legislation that diminishes the City’s existing or potential water rights.
19. Support the protection of water resources.
20. Support the protection of our natural resourcesfrom invasive species.
21. Support regional water resiliency initiatives.
22. Support streamlined water rights amendment processes for minor water rights permit changes.
23. Support federal and statewide funding of water infrastructure projects.
24. Oppose legislation that inhibits the City's ability to collect water and sewer bills either through terminating service for non-payment or other reasonable means absent public health or safety emergencies.
25. Oppose legislation that restricts water and sewer rates for certain customers to below the cost to provide service based on legitimate public interests such as affordable housing, senior housing, nonprofit public beneficial uses, and/or educational uses.
26. Support amendments to stormwater regulatory requirements to reduce mandatory minimum fines and penalties and the recovery of private attorneys’ fees for technical non-compliance issues that do not result in adverse public health impacts or environmental harm.
27. Support stormwater requirements that are related to specific issues and include reasonable implementation timeframes and funding.
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28. Support autonomy for management of individual Sustainable Groundwater Management Act designated basins within the county.
29. Support funding for implementation of Groundwater Sustainability Plans including the San Luis Obispo/Edna Valley Basin.
County/Regional Priorities
1. Support County land use policies and practices that are consistent with the Memorandum of Agreement adopted by the City Council and County Board of Supervisors in 2016 regarding development near the edges of the City and opposing inconsistent policies and practices.
2. Encourage participation by County in providing nearby parking for County employees and clients, and alternate transportation and parking demand reduction.
3. Support County development of a local ordinance providing additional local oversight and regulation of the land application of Pollutant Concentration (PC) or better biosolids.
4. Support the San Luis Obispo County Zone 9 Flood Control and Water Conservation District efforts to solve City/County flood problems.
5. Support the San Luis Obispo County Air Pollution Control District's legislative program, where consistent with the City's adopted policies and platform.
6. Support the San Luis Obispo Council of Governments' legislative advocacy activities, where consistent with the City's adopted policies, platform, and public policy and project objectives.
7. Support efforts to enhance dangerous animal regulation and enforcement.
8. Support the streamlining, clarification, and simplification of conflict-of-interest regulations applicable to local officials.
9. Support efforts of other regional entities to join Central Coast Community Energy.
10. Support the Central Coast Regional Energy Network at the County Board of Supervisors, the CPUC, and related relevant entities and supporting pilot projects in the City as feasible.
11. Support regional and regulatory collaboration to fund and support climate change impact projections and coordinate approaches for increasing regional resilience.
12. Support requirements that development outside City jurisdiction have adequate water supplies to support development activities and intensities and does not indirectly impose water service
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obligations to adjacent municipal water agencies.
13. Support assistance for those experiencing physical and mental health impacts of a pandemic or other disaster.
14. Support the Integrated Waste Management Authority’s (IWMA) legislative platform, where consistent with the City’s adopted policies, platforms, and public policy and project objectives.
15. Support regional efforts to create a spectrum of housing types (including board and care and housing types that include other supportive services) within the County to house the unhoused.
16. Encourage the County of San Luis Obispo to build complete streets when building new roads, and to upgrade existing roadways to be complete streets.
Item 5e
Department: Attorney
Cost Center: 1501
For Agenda of: 4/4/2023
Placement: Consent
Estimated Time: N/A
FROM: Christine Dietrick, City Attorney
Prepared By: Mark Amberg, Assistant City Attorney
Sadie Symens, Deputy City Attorney
SUBJECT: APPROVE PARTICIPATION IN 2023 NATIONAL OPIOID LITIGATION
SETTLEMENT AGREEMENTS
RECOMMENDATION
1. Approve City participation in the nationally negotiated opioid-related settlement agreements with pharmacies CVS, Walgreens, and Walmart ("Pharmacies"), and with pharmaceutical manufacturers Teva and Allergan (“Manufacturers”); and
2. Authorize the City Manager and City Attorney to execute documents as needed to participate in the settlement agreements.
POLICY CONTEXT
Participating in the settlement agreement will provide substantial funding to be used to address opioid abuse, addiction and other opioid related issues and may assist the City in advancing City objectives consistent with the City's Economic Recovery, Resiliency and Fiscal Sustainability, Diversity, Equity and Inclusion and Housing and Homelessness Major City Goals.
DISCUSSION
Background
Five new proposed nationwide settlement agreements (“Settlements”) have been reached that would resolve opioid litigation that has been brought by numerous states, local political subdivisions, and special districts against three pharmacies, CVS, Walgreens, and Walmart ("Pharmacies"), and with pharmaceutical manufacturers Teva and Allergan (“Manufacturers”) over the impacts of opioid use, abuse, and addiction.
The proposed settlements require the Pharmacies and Manufacturers to pay over $20 billion. Depending on participation by states and subdivisions, the Settlements require Teva to pay up to $3.34 billion over 13 years and to provide either $1.2 billion of its generic version of the drug Narcan over 10 years or an agreed upon cash equivalent over 13 years; Allergan to pay up to $2.02 billion over seven years; CVS to pay up to $4.90 billion over 10 years; Walgreens to pay up to $5.52 billion over 15 years; and Walmart to pay up to $2.74 billion in 2023, with all payments to be made within six years.
Item 5e
At least 70% of all funds paid by the defendants shall be used solely for future opioid remediation. Permissible opioid remediation expenditures are defined broadly in the agreements, but generally the funds are meant to address the misuse and abuse of opioid products, treat or mitigate opioid use or related disorders, and/or mitigate other effects, including those injured as a result of, the opioid epidemic. The settlement agreements include expansive and non-exhaustive lists of examples of remediation uses, including purchase of naloxone, providing medication-assisted treatment training and distribution, treatment for incarcerated population, prevention programs, expansion of “wrap around” services related to recovery, and many more.
Each of the proposed settlements has two key participation steps. First, each state must decide whether to participate. California has elected to participate in all the proposed settlements. Second, eligible subdivisions within the state must decide whether to participate in the settlement agreements entered into by California by no later than April 18, 2023. Based upon subdivision participation forms received on or before April 18th, the subdivision participation rate will be used to determine whether participation for each deal is sufficient for the settlement to move forward and whether a state earns its maximum potential payment under the settlement. If the settlement moves forward, the subdivision’s release will become effective. If a settlement does not move forward, that release will not become effective.
Generally, the more subdivisions that participate, the greater amount of the settlement funds will flow to California and its participating local jurisdictions. In the case of the Walmart settlement, a minimum objective participation threshold of eligible subdivisions must participate in order for that settlement to move forward. Any subdivision that does not participate cannot directly share in any of the settlement funds. Any subdivision that does not participate may also reduce the amount of money for programs to remediate the opioid crisis in the state. For the Allergan and Teva settlements, the City must participate in both settlement agreements, or neither.
If the City elects to participate, the City can later decide whether to receive its share of allocated funds under the settlement agreements directly or have its share of funds default to San Luis Obispo County. That decision does not need to be made now (that decision will need to be made by late spring 2023). The only decision the City needs to make now is whether to participate in the settlement agreements. Opting to participate in the settlement means agreeing to the terms of the settlement agreements, releasing all claims within the scope of the settlements, and agreeing to use monies received as required under each settlement.
If the City does not elect to participate by April 18, 2023, it will be precluded from participation in the agreements, will not receive any of the allocated settlement funds and will be left with the option to individually pursue litigation against the pharmaceutical distributors and manufacturer (note that the City’s participation in the settlement will include executing a Master Dismissal of released claims against these defendants.) The latter option would be burdensome, costly, risky and demanding of resources vastly disproportionate to the City's likely ability to prevail in individual litigation against the various defendants. Accordingly, staff is recommending the City Council authorize participation in the existing settlement.
Item 5e
Two Notices to Local California Political Subdivisions that provide more of an overview of the settlements and participation by local jurisdictions are combined and attached as Attachment A. The five State of California Participation Agreements are combined and attached as Attachment B. The five proposed Settlement Agreements are combined and attached as Attachment C.
Previous Council or Advisory Body Action
This is the first Council action on a class-action settlement with these defendants. The City Council approved participation in national opioid litigation settlement agreements with other pharmaceutical distributors and Janssen (manufacturer) in 2021.
Public Engagement
None. Not applicable since this involves a settlement of litigation to which the City was not a direct party.
CONCURRENCE
The Police and Fire Chief, Community Development and City Administration Departments concur with the recommendation.
ENVIRONMENTAL REVIEW
The California Environmental Quality Act does not apply to the recommended action in this report, because the action does not constitute a "Project" under CEQA Guidelines Section 15378.
FISCAL IMPACT
Budgeted: No Budget Year: 2023-2036
Funding Identified: N/A. Settlement agreement would be providing funds to the City, not requiring funds be paid out.
Fiscal Analysis:
Though the amount of funds the City would receive under the settlement cannot be precisely determined at this time, it is estimated to be approximately $1,148,114. This estimate is based on the state’s total allocation of $1.8 billion (according to the state Attorney General’s National Opioids Settlements – Information for California Cities and Counties website) and the City’s weighted allocation (0.00637841%). The actual payout amount will depend on whether the state receives this full share and on how many local jurisdictions elect to participate in the settlement. The funds will be received annually over a period of 13 years for the Teva Settlement, 7 years for the Allergan settlement, approximately 6 years for the Walmart Settlement, 14 years for the Walgreens settlement, and 10 years for the CVS settlement. Following this participation election stage, the City anticipates receiving further information regarding its anticipated allocation and will need to determine whether to receive a direct allocation or authorize distribution and administration of the City’s allocation to the County.
Item 5e
ALTERNATIVES
Don't approve the City's participation in the settlement agreements and preserve the City's option to pursue litigation against the pharmacies and pharmaceutical manufacturers without receiving any funds from the settlement agreements. Staff does not recommend this option for reasons set forth above.
ATTACHMENTS
A - Notices to Local Political Subdivisions regarding Participation in National Opioid Settlement Agreements
B - California Participation Agreements
C - Proposed Settlement Agreements
National Opioid Settlements: Teva, Allergan, CVS, Walgreens, and Walmart San Luis Obispo city, CA
Reference Number: CL-383332
TO LOCAL POLITICAL SUBDIVISIONS AND SPECIAL DISTRICTS:
THIS NOTICE CONTAINS IMPORTANT INFORMATION ABOUT NATIONAL OPIOID SETTLEMENTS.
SETTLEMENT OVERVIEW
Proposed nationwide settlement agreements (“Settlements”) have been reached that would resolve opioid litigation brought by states, local political subdivisions, and special districts against two pharmaceutical manufacturers, Teva and Allergan (“Manufacturers”), and three pharmacies, CVS, Walgreens, and Walmart (“Pharmacies”). Local political subdivisions and special districts are referred to as “subdivisions.” The Settlements require the settling Manufacturers and Pharmacies to pay billions of dollars to abate the opioid epidemic. The Settlements total over $20 billion. Of this amount, approximately $17 billion will be used by participating states and subdivisions to remediate and abate the impacts of the opioid crisis.
Depending on participation by states and subdivisions, the Settlements require:
Teva to pay up to $3.34 billion over 13 years and to provide either $1.2 billion of its generic version of the drug Narcan over 10 years or an agreed upon cash equivalent over 13 years; Allergan to pay up to $2.02 billion over 7 years;
CVS to pay up to $4.90 billion over 10 years;
Walgreens to pay up to $5.52 billion over 15 years; and Walmart to pay up to $2.74 billion in 2023, and all payments to be made within 6 years.
As provided under the Agreements, these figures are net of amounts attributable to prior settlements between the Defendants and certain states/subdivisions, and include amounts for attorneys’ fees and costs.
The Settlements also contain injunctive relief governing opioid marketing, sale, distribution, and/or dispensing practices.
Each of the proposed settlements has two key participation steps.
First, each eligible state decides whether to participate in each Settlement. A list of participating states for each settlement can be found at https://nationalopioidsettlement.com.
Second, eligible subdivisions within each participating state decide whether to participate in each Settlement. The more subdivisions that participate, the more funds flow to that state and its subdivisions.
Any subdivision that does not participate cannot directly share in any of the settlement funds, even if the subdivision’s state is settling and other participating subdivisions are sharing in settlement funds. If the state does not participate in a particular Settlement, the subdivisions in that state are not eligible to participate in that Settlement.
WHO IS RUBRIS INC. AND WHAT IS THE IMPLEMENTATION ADMINISTRATOR? The Settlements provide that an Implementation Administrator will provide notice and manage the collection of participation forms. Rubris Inc. is the Implementation Administrator for these new Settlements and was also retained for the 2021 national opioid settlements.
WHY IS YOUR SUBDIVISION RECEIVING THIS NOTICE?
Your state has elected to participate in one or more of the Settlements with the Manufacturers and/or the Pharmacies, and your subdivision may participate in those Settlements in which your state has elected to participate. This notice is also sent directly to counsel for such subdivisions if the Implementation Administrator has their information.
If you are represented by an attorney with respect to opioid claims, please contact them. Subdivisions can participate in the Settlements whether or not they filed a lawsuit or are represented.
WHERE CAN YOU FIND MORE INFORMATION?
Detailed information about the Settlements, including each settlement agreement, may be found at:
https://nationalopioidsettlement.com. This website also includes information about how the Settlements are being implemented in most states and how funds will be allocated within your state.
You are encouraged to review the settlement agreement terms and discuss the terms and benefits with your counsel, your Attorney General’s Office, and other contacts within your state. Information and documents regarding the Settlements and your state allocation can be found on the settlement website at https://nationalopioidsettlement.com.
Your subdivision will need to decide whether to participate in the proposed Settlements, and subdivisions are encouraged to work through this process before the April 18, 2023 deadline.
HOW DO YOU PARTICIPATE IN THE SETTLEMENTS?
The Settlements require that you take affirmative steps to “opt in” to the Settlements.
In the next few weeks, you will receive documentation and instructions from the Implementation Administrator or, in some cases, your Attorney General’s Office. In order to participate in a settlement, a subdivision must sign and return the required Participation Form for that settlement.
Please add the following email addresses to your “safe” list so emails do not go to spam / junk folders:
[email protected] and [email protected] . Please monitor your email for the Participation Forms and instructions.
All required documentation must be signed and returned on or before April 18, 2023.
New National Opioids Settlements: Teva, Allergan, CVS, Walgreens, and Walmart Opioids Implementation Administrator
[email protected]
San Luis Obispo city, CA
Reference Number: CL-383332
TO LOCAL POLITICAL SUBDIVISIONS AND SPECIAL DISTRICTS:
THIS PACKAGE CONTAINS DOCUMENTATION TO PARTICIPATE IN THE NEW NATIONAL OPIOID SETTLEMENTS. YOU MUST TAKE ACTION IN ORDER TO PARTICIPATE.
Deadline: April 18, 2023
Five new proposed national opioid settlements (“New National Opioid Settlements”) have been reached with Teva, Allergan, CVS, Walgreens, and Walmart (“Settling Defendants”). This Participation Package is a follow-up communication to the Notice of National Opioid Settlements recently received electronically by your subdivision or special district (“subdivision”).
You are receiving this Participation Package because California is participating in the following settlements:
Teva
Allergan
CVS
Walgreens
Walmart
This electronic envelope includes eleven attachments:
Participation Forms for Teva, Allergan, CVS, Walgreens, and Walmart, including a release of any claims.
California State-Subdivision Agreements for Teva, Allergan, CVS, Walgreens, and Walmart.
Side-letter agreement between California and CVS.
The Participation Form and California Intrastate Allocation Agreement for each settlement must be executed, without alteration, and submitted on or before April 18, 2023, in order for your subdivision to be considered for initial participation calculations and payment eligibility.
The side-letter agreement between California and CVS modifies the CVS National Settlement’s incentive structure for subdivision participation as it applies to California.
Based upon subdivision participation forms received on or before April 18th, the subdivision participation rate will be used to determine whether participation for each deal is sufficient for the settlement to move forward and whether a state earns DocuSign Envelope ID: 3CD9F679-6B77-46D5-9A87-D10ED0D68C74
its maximum potential payment under the settlement. If the settlement moves forward, your release will become effective. If a settlement does not move forward, that release will not become effective.
Any subdivision that does not participate cannot directly share in the settlement funds, even if the subdivision’s state is settling and other participating subdivisions are sharing in settlement funds. Any subdivision that does not participate may also reduce the amount of money for programs to remediate the opioid crisis in its state.
Please note, a subdivision will not necessarily directly receive settlement funds by participating; decisions on how settlement funds will be allocated within a state are subject to intrastate agreements or state statutes.
You are encouraged to discuss the terms and benefits of the New National Opioid Settlements with your city attorney/county counsel, outside counsel representing your city/county on opioid matters, the Attorney General’s Office, and other contacts within your state. Many states are implementing and allocating funds for these new settlements the same as they did for the prior opioid settlements with McKesson, Cardinal, Amerisource, and J&J/Janssen, but states may choose to treat these settlements differently.
Information and documents regarding the New National Opioid Settlements and how they are being implemented in your state and how funds will be allocated within your state allocation can be found on the national settlement website at https://nationalopioidsettlement.com/ and the California Attorney General’s website at https://oag.ca.gov/opioids. These websites will be supplemented as additional documents are created. Please also refer to the Side-Letter Agreement with CVS, which modifies the CVS National Opioid Settlement.
How to return signed forms:
There are three methods for returning the executed Participation Forms and California-State Subdivision Agreements (“Subdivision Agreements”) to the Implementation Administrator:
(1) Electronic Signature via DocuSign: Executing the Participation Forms and the Subdivision Agreements electronically through DocuSign will return the signed forms to the Implementation Administrator and associate your forms with your subdivision’s records. Electronic signature is the most efficient method for returning Participation Forms and Subdivision Agreements, allowing for more timely participation and the potential to meet higher settlement payment thresholds, and is therefore strongly encouraged. (2) Manual Signature returned via DocuSign: DocuSign allows forms to be downloaded, signed manually, then uploaded to DocuSign and returned automatically to the Implementation Administrator. Please be sure to complete all fields and note that execution and return of both the Subdivision Agreement and the Participation Form are required for participation in the corresponding settlement. As with electronic signature, returning manually signed Participation Forms and Subdivision Agreements via DocuSign will associate your signed forms with your subdivision’s records.
DocuSign Envelope ID: 3CD9F679-6B77-46D5-9A87-D10ED0D68C74
(3) Manual Signature returned via electronic mail: If your subdivision is unable to return executed Participation Forms and Subdivision Agreements using DocuSign, signed Participation Forms and Subdivision Agreements may be returned via electronic mail to [email protected]. Please include the name, state, and reference ID of your subdivision in the body of the email and use the subject line Settlement Participation Forms – [Subdivision Name, Subdivision State] – [Reference ID]. Note that execution and return of both the Subdivision Agreement and the Participation Form are required for participation in the corresponding settlement.
Detailed instructions on how to sign and return the Participation Forms and the Subdivision Agreements, including changing the authorized signer, can be found at https://nationalopioidsettlement.com. You may also contact [email protected].
The sign-on period for subdivisions ends on April 18, 2023.
If you have any questions about executing these forms, please contact your city attorney/county counsel, outside counsel representing your city/county on opioids matters, the Implementation Administrator at [email protected], or the California Attorney General’s Office at opioidsettlement[email protected].
Thank you,
National Opioids Settlements Implementation Administrator The Implementation Administrator is retained to provide the settlement notice required by the respective settlement agreements referenced above and to manage the collection of settlement participation forms for each settlement.
DocuSign Envelope ID: 3CD9F679-6B77-46D5-9A87-D10ED0D68C74
EXHIBIT K
Subdivision and Special District Settlement Participation Form Will your subdivision or special district be signing the settlement participation forms for the Allergan and Teva Settlements at this time?
[ ] Yes_ta [ ] No_ta
Governmental Entity: San Luis Obispo city State: CA
Authorized Signatory: /officialname_teva_allergan/
Address 1: /address1_teva_allergan/
Address 2: /address2_teva_allergan/
City, State, Zip: /cit_ta/ /state_ta/ /zi_ta/
Phone: /phone_teva_allergan/
Email: /email_teva_allergan/
The governmental entity identified above (“Governmental Entity”), in order to obtain and in consideration for the benefits provided to the Governmental Entity pursuant to the Agreement dated November 22, 2022 (“Allergan Settlement”), and acting through the undersigned authorized official, hereby elects to participate in the Allergan Settlement, release all Released Claims against all Released Entities, and agrees as follows.
1. The Governmental Entity is aware of and has reviewed the Allergan Settlement, understands that all terms in this Election and Release have the meanings defined therein, and agrees that by this Election, the Governmental Entity elects to participate in the Allergan Settlement as provided therein.
2. Following the execution of this Settlement Participation Form, the Governmental Entity shall comply with Section III.B of the Allergan Settlement regarding Cessation of Litigation Activities.
3. The Governmental Entity shall, within fourteen (14) days of the Reference Date and prior to the filing of the Consent Judgment, file a request to dismiss with prejudice any Released Claims that it has filed. With respect to any Released Claims pending in In re National Prescription Opiate Litigation, MDL No. 2804, the Governmental Entity authorizes the MDL Plaintiffs’ Executive Committee to execute and file on behalf of the Governmental Entity a Stipulation of Dismissal With Prejudice substantially in the form found at https://nationalopioidsettlement.com.
4. The Governmental Entity agrees to the terms of the Allergan Settlement pertaining to Subdivisions and Special Districts as defined therein.
5. By agreeing to the terms of the Allergan Settlement and becoming a Releasor, the Governmental Entity is entitled to the benefits provided therein, including, if applicable, monetary payments beginning after the Effective Date.
6. The Governmental Entity agrees to use any monies it receives through the Allergan Settlement solely for the purposes provided therein.
1 DocuSign Envelope ID: 3CD9F679-6B77-46D5-9A87-D10ED0D68C74
7. The Governmental Entity submits to the jurisdiction of the court in the Governmental Entity’s state where the Consent Judgment is filed for purposes limited to that court’s role as provided in, and for resolving disputes to the extent provided in, the Allergan Settlement.
8. The Governmental Entity has the right to enforce the Allergan Settlement as provided therein.
9. The Governmental Entity, as a Participating Subdivision or Participating Special District, hereby becomes a Releasor for all purposes in the Allergan Settlement, including, but not limited to, all provisions of Section V (Release), and along with all departments, agencies, divisions, boards, commissions, Subdivisions, districts, instrumentalities of any kind and attorneys, and any person in their official capacity whether elected or appointed to serve any of the foregoing and any agency, person, or other entity claiming by or through any of the foregoing, and any other entity identified in the definition of Releasor, provides for a release to the fullest extent of its authority. As a Releasor, the Governmental Entity hereby absolutely, unconditionally, and irrevocably covenants not to bring, file, or claim, or to cause, assist in bringing, or permit to be brought, filed, or claimed, or to otherwise seek to establish liability for any Released Claims against any Released Entity in any forum whatsoever. The releases provided for in the Allergan Settlement are intended to be broad and shall be interpreted so as to give the Released Entities the broadest possible bar against any liability relating in any way to Released Claims and extend to the full extent of the power of the Governmental Entity to release claims. The Allergan Settlement shall be a complete bar to any Released Claim.
10. The Governmental Entity hereby takes on all rights and obligations of a Participating Subdivision or Participating Special District as set forth in the Allergan Settlement.
11. In connection with the releases provided for in the Allergan Settlement, each Governmental Entity expressly waives, releases, and forever discharges any and all provisions, rights, and benefits conferred by any law of any state or territory of the United States or other jurisdiction, or principle of common law, which is similar, comparable, or equivalent to § 1542 of the California Civil Code, which reads:
General Release; extent. A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release that, if known by him or her, would have materially affected his or her settlement with the debtor or released party.
A Releasor may hereafter discover facts other than or different from those which it knows, believes, or assumes to be true with respect to the Released Claims, but each Governmental Entity hereby expressly waives and fully, finally, and forever settles, releases and discharges, upon the Effective Date, any and all Released Claims that may exist as of such date but which Releasors do not know or suspect to exist, whether through ignorance, oversight, error, negligence or through no fault whatsoever, and which, if known, would materially affect the Governmental Entities’ decision to participate in the Allergan Settlement.
12. Nothing herein is intended to modify in any way the terms of the Allergan Settlement, to which the Governmental Entity hereby agrees. To the extent this Settlement Participation Form is interpreted differently from the Allergan Settlement in any respect, the Allergan Settlement controls.
2 DocuSign Envelope ID: 3CD9F679-6B77-46D5-9A87-D10ED0D68C74
I have all necessary power and authorization to execute this Settlement Participation Form on behalf of the Governmental Entity.
Signature: /signer_1_teva_allergan/
Name: /name_1_teva_allergan/
Title: /title_1_teva_allergan/
Date: /date_1_teva_allergan/
3 DocuSign Envelope ID: 3CD9F679-6B77-46D5-9A87-D10ED0D68C74
Exhibit K
Subdivision and Special District Settlement Participation Form Governmental Entity: San Luis Obispo city State: CA
Authorized Signatory: /officialname_teva_allergan/
Address 1: /address1_teva_allergan/
Address 2: /address2_teva_allergan/
City, State, Zip: /cit_ta/ /state_ta/ /zi_ta/
Phone: /phone_teva_allergan/
Email: /email_teva_allergan/
The governmental entity identified above (“Governmental Entity”), in order to obtain and in consideration for the benefits provided to the Governmental Entity pursuant to the Agreement dated November 22, 2022 (“Teva Settlement”), and acting through the undersigned authorized official, hereby elects to participate in the Teva Settlement, release all Released Claims against all Released Entities, and agrees as follows.
1. The Governmental Entity is aware of and has reviewed the Teva Settlement, understands that all terms in this Election and Release have the meanings defined therein, and agrees that by this Election, the Governmental Entity elects to participate in the Teva Settlement as provided therein.
2. Following the execution of this Settlement Participation Form, the Governmental Entity shall comply with Section III.B of the Teva Settlement regarding Cessation of Litigation Activities.
3. The Governmental Entity shall, within 14 days of the Reference Date and prior to the filing of the Consent Judgment, file a request to dismiss with prejudice any Released Claims that it has filed. With respect to any Released Claims pending in In re National Prescription Opiate Litigation, MDL No. 2804, the Governmental Entity authorizes the Plaintiffs’ Executive Committee to execute and file on behalf of the Governmental Entity a Stipulation of Dismissal With Prejudice substantially in the form found at https://nationalopioidsettlement.com.
4. The Governmental Entity agrees to the terms of the Teva Settlement pertaining to Subdivisions as defined therein.
5. By agreeing to the terms of the Teva Settlement and becoming a Releasor, the Governmental Entity is entitled to the benefits provided therein, including, if applicable, monetary payments beginning after the Effective Date.
6. The Governmental Entity agrees to use any monies it receives through the Teva Settlement solely for the purposes provided therein.
7. The Governmental Entity submits to the jurisdiction of the court in the Governmental Entity’s state where the Consent Judgment is filed for purposes limited to that court’s role as provided in, and for resolving disputes to the extent provided in, the Teva Settlement. 1 DocuSign Envelope ID: 3CD9F679-6B77-46D5-9A87-D10ED0D68C74
8. The Governmental Entity has the right to enforce the Teva Settlement as provided therein.
9. The Governmental Entity, as a Participating Subdivision or Participating Special District, hereby becomes a Releasor for all purposes in the Teva Settlement, including but not limited to all provisions of Section V (Release), and along with all departments, agencies, divisions, boards, commissions, districts, instrumentalities of any kind and attorneys, and any person in their official capacity elected or appointed to serve any of the foregoing and any agency, person, or other entity claiming by or through any of the foregoing, and any other entity identified in the definition of Releasor, provides for a release to the fullest extent of its authority. As a Releasor, the Governmental Entity hereby absolutely, unconditionally, and irrevocably covenants not to bring, file, or claim, or to cause, assist or permit to be brought, filed, or claimed, or to otherwise seek to establish liability for any Released Claims against any Released Entity in any forum whatsoever. The releases provided for in the Teva Settlement are intended by Released Entitles and the Governmental Entity to be broad and shall be interpreted so as to give the Released Entities the broadest possible bar against any liability relating in any way to Released Claims and extend to the full extent of the power of the Governmental Entity to release claims. The Teva Settlement shall be a complete bar to any Released Claim.
10. The Governmental Entity hereby takes on all rights and obligations of a Participating Subdivision or Participating Special District as set forth in the Teva Settlement.
11. In connection with the releases provided for in the Teva Settlement, each Governmental Entity expressly waives, releases, and forever discharges any and all provisions, rights, and benefits conferred by any law of any state or territory of the United States or other jurisdiction, or principle of common law, which is similar, comparable, or equivalent to § 1542 of the California Civil Code, which reads:
General Release; extent. A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release that, if known by him or her, would have materially affected his or her settlement with the debtor or released party.
A Releasor may hereafter discover facts other than or different from those which it knows, believes, or assumes to be true with respect to the Released Claims, but each Governmental Entity hereby expressly waives and fully, finally, and forever settles, releases and discharges, upon the Effective Date, any and all Released Claims that may exist as of such date but which Releasors do not know or suspect to exist, whether through ignorance, oversight, error, negligence or through no fault whatsoever, and which, if known, would materially affect the Governmental Entities’ decision to participate in the Teva Settlement.
12. Nothing herein is intended to modify in any way the terms of the Teva Settlement, to which Governmental Entity hereby agrees. To the extent this Election and Release is interpreted differently from the Teva Settlement in any respect, the Teva Settlement controls. 2 DocuSign Envelope ID: 3CD9F679-6B77-46D5-9A87-D10ED0D68C74
I have all necessary power and authorization to execute this Election and Release on behalf of the Governmental Entity.
Signature: /signer_1_teva_allergan/
Name: /name_1_teva_allergan/
Title: /title_1_teva_allergan/
Date: /date_1_teva_allergan/
3 DocuSign Envelope ID: 3CD9F679-6B77-46D5-9A87-D10ED0D68C74
EXHIBIT K
Subdivision Participation and Release Form
Will your subdivision or special district be signing the settlement participation form for the CVS Settlement at this time?
[ ] Yes_cv [ ] No_cv
Governmental Entity: San Luis Obispo city State: CA
Authorized Signatory: /officialname_cvs/
Address 1: /address1_cvs/
Address 2: /address2_cvs/
City, State, Zip: /cit_cv/ /state_cv/ /zi_cv/
Phone: /phone_cvs/
Email: /email_cvs/
The governmental entity identified above (“Governmental Entity”), in order to obtain and in consideration for the benefits provided to the Governmental Entity pursuant to the Settlement Agreement dated December 9, 2022 (“CVS Settlement”), and acting through the undersigned authorized official, hereby elects to participate in the CVS Settlement, release all Released Claims against all Released Entities, and agrees as follows.
1. The Governmental Entity is aware of and has reviewed the CVS Settlement, understands that all terms in this Participation and Release Form have the meanings defined therein, and agrees that by executing this Participation and Release Form, the Governmental Entity elects to participate in the CVS Settlement and become a Participating Subdivision as provided therein.
2. The Governmental Entity shall promptly, and in any event no later than 14 days after the Reference Date and prior to the filing of the Consent Judgment, dismiss with prejudice any Released Claims that it has filed. With respect to any Released Claims pending in In re National Prescription Opiate Litigation, MDL No. 2804, the Governmental Entity authorizes the Plaintiffs’ Executive Committee to execute and file on behalf of the Governmental Entity a Stipulation of Dismissal with Prejudice substantially in the form found at https://nationalopioidsettlement.com.
3. The Governmental Entity agrees to the terms of the CVS Settlement pertaining to Participating Subdivisions as defined therein.
4. By agreeing to the terms of the CVS Settlement and becoming a Releasor, the Governmental Entity is entitled to the benefits provided therein, including, if applicable, monetary payments beginning after the Effective Date.
5. The Governmental Entity agrees to use any monies it receives through the CVS Settlement solely for the purposes provided therein.
1 DocuSign Envelope ID: 3CD9F679-6B77-46D5-9A87-D10ED0D68C74
6. The Governmental Entity submits to the jurisdiction of the court in the Governmental Entity’s state where the Consent Judgment is filed for purposes limited to that court’s role as provided in, and for resolving disputes to the extent provided in, the CVS Settlement. The Governmental Entity likewise agrees to arbitrate before the National Arbitration Panel as provided in, and for resolving disputes to the extent otherwise provided in, the CVS Settlement.
7. The Governmental Entity has the right to enforce the CVS Settlement as provided therein.
8. The Governmental Entity, as a Participating Subdivision, hereby becomes a Releasor for all purposes in the CVS Settlement, including without limitation all provisions of Section XI (Release), and along with all departments, agencies, divisions, boards, commissions, districts, instrumentalities of any kind and attorneys, and any person in their official capacity elected or appointed to serve any of the foregoing and any agency, person, or other entity claiming by or through any of the foregoing, and any other entity identified in the definition of Releasor, provides for a release to the fullest extent of its authority. As a Releasor, the Governmental Entity hereby absolutely, unconditionally, and irrevocably covenants not to bring, file, or claim, or to cause, assist or permit to be brought, filed, or claimed, or to otherwise seek to establish liability for any Released Claims against any Released Entity in any forum whatsoever. The releases provided for in the CVS Settlement are intended by the Parties to be broad and shall be interpreted so as to give the Released Entities the broadest possible bar against any liability relating in any way to Released Claims and extend to the full extent of the power of the Governmental Entity to release claims. The CVS Settlement shall be a complete bar to any Released Claim.
9. The Governmental Entity hereby takes on all rights and obligations of a Participating Subdivision as set forth in the CVS Settlement.
10. In connection with the releases provided for in the CVS Settlement, each Governmental Entity expressly waives, releases, and forever discharges any and all provisions, rights, and benefits conferred by any law of any state or territory of the United States or other jurisdiction, or principle of common law, which is similar, comparable, or equivalent to § 1542 of the California Civil Code, which reads:
General Release; extent. A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release that, if known by him or her would have materially affected his or her settlement with the debtor or released party.
A Releasor may hereafter discover facts other than or different from those which it knows, believes, or assumes to be true with respect to the Released Claims, but each Governmental Entity hereby expressly waives and fully, finally, and forever settles, releases and discharges, upon the Effective Date, any and all Released Claims that may exist as of such date but which Releasors do not know or suspect to exist, whether through ignorance, oversight, error, negligence or through no fault whatsoever, and which, if known, would materially affect the Governmental Entities’ decision to participate in the CVS Settlement.
2 DocuSign Envelope ID: 3CD9F679-6B77-46D5-9A87-D10ED0D68C74
11. Nothing herein is intended to modify in any way the terms of the CVS Settlement, to which Governmental Entity hereby agrees. To the extent this Participation and Release Form is interpreted differently from the CVS Settlement in any respect, the CVS Settlement controls.
I have all necessary power and authorization to execute this Participation and Release Form on behalf of the Governmental Entity.
Signature: /signer_1_cvs/
Name: /name_1_cvs/
Title: /title_1_cvs/
Date: /date_1_cvs/
3 DocuSign Envelope ID: 3CD9F679-6B77-46D5-9A87-D10ED0D68C74
EXHIBIT K
Subdivision Participation and Release Form
Will your subdivision or special district be signing the settlement participation form for the Walgreens Settlement at this time?
[ ] Yes_wg [ ] No_wg
Governmental Entity: San Luis Obispo city State: CA
Authorized Signatory: /officialname_walgreens/
Address 1: /address1_ walgreens/
Address 2: /address2_ walgreens/
City, State, Zip: /cit_wg/ /state_wg/ /zi_wg/
Phone: /phone_walgreens/
Email: /email_walgreens/
The governmental entity identified above (“Governmental Entity”), in order to obtain and in consideration for the benefits provided to the Governmental Entity pursuant to the Settlement Agreement dated December 9, 2022 (“Walgreens Settlement”), and acting through the undersigned authorized official, hereby elects to participate in the Walgreens Settlement, release all Released Claims against all Released Entities, and agrees as follows.
1. The Governmental Entity is aware of and has reviewed the Walgreens Settlement, understands that all terms in this Participation and Release Form have the meanings defined therein, and agrees that by executing this Participation and Release Form, the Governmental Entity elects to participate in the Walgreens Settlement and become a Participating Subdivision as provided therein.
2. The Governmental Entity shall promptly, and in any event no later than 14 days after the Reference Date and prior to the filing of the Consent Judgment, dismiss with prejudice any Released Claims that it has filed. With respect to any Released Claims pending in In re National Prescription Opiate Litigation, MDL No. 2804, the Governmental Entity authorizes the Plaintiffs’ Executive Committee to execute and file on behalf of the Governmental Entity a Stipulation of Dismissal with Prejudice substantially in the form found at https://nationalopioidsettlement.com.
3. The Governmental Entity agrees to the terms of the Walgreens Settlement pertaining to Participating Subdivisions as defined therein.
4. By agreeing to the terms of the Walgreens Settlement and becoming a Releasor, the Governmental Entity is entitled to the benefits provided therein, including, if applicable, monetary payments beginning after the Effective Date.
5. The Governmental Entity agrees to use any monies it receives through the Walgreens Settlement solely for the purposes provided therein.
1 DocuSign Envelope ID: 3CD9F679-6B77-46D5-9A87-D10ED0D68C74
6. The Governmental Entity submits to the jurisdiction of the court in the Governmental Entity’s state where the Consent Judgment is filed for purposes limited to that court’s role as provided in, and for resolving disputes to the extent provided in, the Walgreens Settlement. The Governmental Entity likewise agrees to arbitrate before the National Arbitration Panel as provided in, and for resolving disputes to the extent otherwise provided in, the Walgreens Settlement.
7. The Governmental Entity has the right to enforce the Walgreens Settlement as provided therein.
8. The Governmental Entity, as a Participating Subdivision, hereby becomes a Releasor for all purposes in the Walgreens Settlement, including without limitation all provisions of Section XI (Release), and along with all departments, agencies, divisions, boards, commissions, districts, instrumentalities of any kind and attorneys, and any person in their official capacity elected or appointed to serve any of the foregoing and any agency, person, or other entity claiming by or through any of the foregoing, and any other entity identified in the definition of Releasor, provides for a release to the fullest extent of its authority. As a Releasor, the Governmental Entity hereby absolutely, unconditionally, and irrevocably covenants not to bring, file, or claim, or to cause, assist or permit to be brought, filed, or claimed, or to otherwise seek to establish liability for any Released Claims against any Released Entity in any forum whatsoever. The releases provided for in the Walgreens Settlement are intended by the Parties to be broad and shall be interpreted so as to give the Released Entities the broadest possible bar against any liability relating in any way to Released Claims and extend to the full extent of the power of the Governmental Entity to release claims. The Walgreens Settlement shall be a complete bar to any Released Claim.
9. The Governmental Entity hereby takes on all rights and obligations of a Participating Subdivision as set forth in the Walgreens Settlement.
10. In connection with the releases provided for in the Walgreens Settlement, each Governmental Entity expressly waives, releases, and forever discharges any and all provisions, rights, and benefits conferred by any law of any state or territory of the United States or other jurisdiction, or principle of common law, which is similar, comparable, or equivalent to § 1542 of the California Civil Code, which reads:
General Release; extent. A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release that, if known by him or her would have materially affected his or her settlement with the debtor or released party.
A Releasor may hereafter discover facts other than or different from those which it knows, believes, or assumes to be true with respect to the Released Claims, but each Governmental Entity hereby expressly waives and fully, finally, and forever settles, releases and discharges, upon the Effective Date, any and all Released Claims that may exist as of such date but which Releasors do not know or suspect to exist, whether through ignorance, oversight, error, negligence or through no fault whatsoever, and which, if known, would materially affect the Governmental Entities’ decision to participate in the Walgreens Settlement. 2 DocuSign Envelope ID: 3CD9F679-6B77-46D5-9A87-D10ED0D68C74
11. Nothing herein is intended to modify in any way the terms of the Walgreens Settlement, to which Governmental Entity hereby agrees. To the extent this Participation and Release Form is interpreted differently from the Walgreens Settlement in any respect, the Walgreens Settlement controls.
I have all necessary power and authorization to execute this Participation and Release Form on behalf of the Governmental Entity.
Signature: /signer_1_walgreens/
Name: /name_1_walgreens/
Title: /title_1_walgreens/
Date: /date_1_walgreens/
3 DocuSign Envelope ID: 3CD9F679-6B77-46D5-9A87-D10ED0D68C74
EXHIBIT K
Subdivision Participation Form
Will your subdivision or special district be signing the settlement participation form for the Walmart Settlement at this time?
[ ] Yes_wm [ ] No_wm
Governmental Entity: San Luis Obispo city State: CA
Authorized Official: /officialname_walmart/
Address 1: /address1_walmart/
Address 2: /address2_walmart/
City, State, Zip: /cit_wm/ /state_wm/ /zi_wm/
Phone: /phone_walmart/
Email: /email_walmart/
The governmental entity identified above (“Governmental Entity”), in order to obtain and in consideration for the benefits provided to the Governmental Entity pursuant to the Settlement Agreement dated November 14, 2022 (“Walmart Settlement”), and acting through the undersigned authorized official, hereby elects to participate in the Walmart Settlement, release all Released Claims against all Released Entities, and agrees as follows.
1. The Governmental Entity is aware of and has reviewed the Walmart Settlement, understands that all terms in this Election and Release have the meanings defined therein, and agrees that by this Election, the Governmental Entity elects to participate in the Walmart Settlement and become a Participating Subdivision as provided therein.
2. The Governmental Entity shall promptly, and in any event within 14 days of the Effective Date and prior to the filing of the Consent Judgment, dismiss with prejudice any Released Claims that it has filed. With respect to any Released Claims pending in In re National Prescription Opiate Litigation, MDL No. 2804, the Governmental Entity authorizes the Plaintiffs’ Executive Committee to execute and file on behalf of the Governmental Entity a Stipulation of Dismissal With Prejudice substantially in the form found at https://nationalopioidsettlement.com/.
3. The Governmental Entity agrees to the terms of the Walmart Settlement pertaining to Subdivisions as defined therein.
4. By agreeing to the terms of the Walmart Settlement and becoming a Releasor, the Governmental Entity is entitled to the benefits provided therein, including, if applicable, monetary payments beginning after the Effective Date.
5. The Governmental Entity agrees to use any monies it receives through the Walmart Settlement solely for the purposes provided therein.
1 DocuSign Envelope ID: 3CD9F679-6B77-46D5-9A87-D10ED0D68C74
6. The Governmental Entity submits to the jurisdiction of the court in the Governmental Entity’s state where the Consent Judgment is filed for purposes limited to that court’s role as provided in, and for resolving disputes to the extent provided in, the Walmart Settlement.
7. The Governmental Entity has the right to enforce the Walmart Settlement as provided therein.
8. The Governmental Entity, as a Participating Subdivision, hereby becomes a Releasor for all purposes in the Walmart Settlement, including but not limited to all provisions of Section X (Release), and along with all departments, agencies, divisions, boards, commissions, districts, instrumentalities of any kind and attorneys, and any person in their official capacity elected or appointed to serve any of the foregoing and any agency, person, or other entity claiming by or through any of the foregoing, and any other entity identified in the definition of Releasor, provides for a release to the fullest extent of its authority. As a Releasor, the Governmental Entity hereby absolutely, unconditionally, and irrevocably covenants not to bring, file, or claim, or to cause, assist or permit to be brought, filed, or claimed, or to otherwise seek to establish liability for any Released Claims against any Released Entity in any forum whatsoever. The releases provided for in the Walmart Settlement are intended by the Parties to be broad and shall be interpreted so as to give the Released Entities the broadest possible bar against any liability relating in any way to Released Claims and extend to the full extent of the power of the Governmental Entity to release claims. The Walmart Settlement shall be a complete bar to any Released Claim.
9. In connection with the releases provided for in the Walmart Settlement, each Governmental Entity expressly waives, releases, and forever discharges any and all provisions, rights, and benefits conferred by any law of any state or territory of the United States or other jurisdiction, or principle of common law, which is similar, comparable, or equivalent to § 1542 of the California Civil Code, which reads:
General Release; extent. A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release that, if known by him or her, would have materially affected his or her settlement with the debtor or released party.
A Releasor may hereafter discover facts other than or different from those which it knows, believes, or assumes to be true with respect to the Released Claims, but each Governmental Entity hereby expressly waives and fully, finally, and forever settles, releases and discharges, upon the Effective Date, any and all Released Claims that may exist as of such date but which Releasors do not know or suspect to exist, whether through ignorance, oversight, error, negligence or through no fault whatsoever, and which, if known, would materially affect the Governmental Entities’ decision to participate in the Walmart Settlement.
10. Nothing herein is intended to modify in any way the terms of the Walmart Settlement, to which Governmental Entity hereby agrees. To the extent this Election and Release is interpreted differently from the Walmart Settlement in any respect, the Walmart Settlement controls.
2 DocuSign Envelope ID: 3CD9F679-6B77-46D5-9A87-D10ED0D68C74
I have all necessary power and authorization to execute this Election and Release on behalf of the Governmental Entity.
Signature: /signer_1_walmart/
Name: /name_1_walmart/
Title: /title_1_walmart/
Date: /date_1_walmart/
3 DocuSign Envelope ID: 3CD9F679-6B77-46D5-9A87-D10ED0D68C74
1 Proposed California State-Subdivision Agreement
Regarding Distribution and Use of
Settlement Funds – Allergan Settlement
1. Introduction
Pursuant to the Allergan Settlement Agreement, dated as of November 22, 2022, and any revision thereto (the “Allergan Settlement Agreement”), including Section VIII and Exhibit O, the State of California proposes this agreement (the “CA Allergan Allocation Agreement”) to govern the allocation, distribution, and use of Settlement Fund payments made to California pursuant to Sections VI, VII, and VIII of the Allergan Settlement Agreement. For the avoidance of doubt, this agreement does not apply to payments made pursuant to Sections XII or XIII of the Allergan Settlement Agreement.
Pursuant to Exhibit O, Paragraph 4, of the Allergan Settlement Agreement, acceptance of this CA Allergan Allocation Agreement is a requirement to be an Initial Participating Subdivision.1 Further, pursuant to Sections X.B and X.C of the Teva Settlement Agreement and Sections IX.B and IX.C of the Allergan Settlement Agreement, eligible Subdivisions must participate in both the Teva Settlement Agreement and Allergan Settlement Agreement, or neither.2
2. Definitions
a) CA Participating Subdivision means a Participating Subdivision that is also (a) a Plaintiff Subdivision and/or (b) a Subdivision with a population equal to or greater than 10,000. For the avoidance of doubt, eligible CA Participating Subdivisions are those California subdivisions listed in Exhibit C (excluding Litigating Special Districts) and/or Exhibit I to the Allergan Settlement Agreement. b) Teva Settlement Agreement means the Teva Settlement Agreement dated November 22, 2022, and any revision thereto.
c) CVS Settlement Agreement means the CVS Settlement Agreement dated December 9, 2022, and any revision thereto as well as any modification thereto entered into by the State of California and CVS.
d) Distributor Settlement Agreement means the Distributor Settlement Agreement dated July 21, 2021, and any revision thereto.
e) Janssen Settlement Agreement means the Janssen Settlement Agreement dated July 21, 2021, and any revision thereto.
1 A parallel but separate agreement (the “CA Teva Allocation Agreement”) will govern the allocation, distribution, and use of settlement fund payments under the Teva Settlement Agreement.
2 However, if Teva enters bankruptcy prior to the Effective Date, an eligible Subdivision can choose to only join the Allergan Settlement Agreement.
DocuSign Envelope ID: 3CD9F679-6B77-46D5-9A87-D10ED0D68C74
2 f) Walgreens Settlement Agreement means the Walgreens Settlement Agreement dated December 9, 2022, and any revision thereto.
g) Walmart Settlement Agreement means the Walmart Settlement Agreement dated November 14, 2022, and any revision thereto.
h) CA Litigating Special District means a Litigating Special District located in California. CA Litigating Special Districts include Downey Unified School District, Elk Grove Unified School District, Kern High School District, Montezuma Fire Protection District (located in Stockton, California), Santa Barbara San Luis Obispo Regional Health Authority, Inland Empire Health Plan, Health Plan of San Joaquin, San Leandro Unified School District, Pleasant Valley School District Board, and LA Care Health Plan.
i) Plaintiff Subdivision means a Subdivision located in California, other than a CA Litigating Special District, that filed a lawsuit, on behalf of the Subdivision and/or through an official of the Subdivision on behalf of the People of the State of California, against one or more Opioid Defendants prior to October 1, 2020. j) Opioid Defendant means any defendant (including but not limited to Teva Pharmaceutical Industries Ltd., Allergan Finance, LLC, Allergan Limited, CVS Health Corporation, CVS Pharmacy, Inc., Walgreen Co., Walmart Inc., Johnson & Johnson, Janssen Pharmaceuticals, Inc., Purdue Pharma L.P., Cardinal Health, Inc., AmerisourceBergen Corporation, and McKesson Corporation) named in a lawsuit seeking damages, abatement, or other remedies related to or caused by the opioid public health crisis in any lawsuit brought by any state or local government on or before October 1, 2020.
3. General Terms
This agreement is subject to the requirements of the Allergan Settlement Agreement, as well as applicable law, and the Allergan Settlement Agreement governs over any inconsistent provision of this CA Allergan Allocation Agreement. Terms used in this CA Allergan Allocation Agreement have the same meaning as in the Allergan Settlement Agreement unless otherwise defined herein.
Pursuant to Section VIII(E)(1) of the Allergan Settlement Agreement, (a) all Settlement Fund payments will be used for Opioid Remediation, except as allowed by Section VIII(C) of the Allergan Settlement Agreement; and (b) at least seventy percent (70%) of Settlement Fund payment amounts will be used solely for future Opioid Remediation.
4. State Allocation
DocuSign Envelope ID: 3CD9F679-6B77-46D5-9A87-D10ED0D68C74
3 The Settlement Fund payments to California,3 pursuant to the Allergan Settlement Agreement, shall be allocated as follows: 15% to the State Fund; 70% to the Abatement Accounts Fund; and 15% to the Subdivision Fund. For the avoidance of doubt, all funds allocated to California from the Settlement Fund shall be combined pursuant to this CA Allergan Allocation Agreement, and 15% of that total shall be allocated to the State of California (the “State of California Allocation”), 70% to the California Abatement Accounts Fund (“CA Abatement Accounts Fund”), and 15% to the California Subdivision Fund (“CA Subdivision Fund”).
A. State of California Allocation
Fifteen percent of the total Settlement Fund payments will be allocated to the State and used by the State for future Opioid Remediation.
B. CA Abatement Accounts Fund
i. Allocation of CA Abatement Accounts Funds
a) Seventy percent of the total Settlement Fund payments will be allocated to the CA Abatement Accounts Fund. The funds in the CA Abatement Accounts Fund will be allocated based on the allocation model developed in connection with the proposed negotiating class in the National Prescription Opiate Litigation (MDL No. 2804), as adjusted to reflect only those cities and counties that are eligible, based on population or litigation status, to become a CA Participating Subdivision. The percentage from the CA Abatement Accounts Fund allocated to each CA Participating Subdivision is set forth in Appendix 1 in the column entitled abatement percentage (the “Local Allocation”). For the avoidance of doubt, CA Litigating Special Districts and California towns, cities, and counties with a population less than 10,000 are not eligible to receive an allocation of CA Abatement Accounts Funds.
b) A CA Participating Subdivision that is a county, or a city and county, will be allocated its Local Allocation share as of the date on which it becomes a Participating Subdivision, and will receive payments as provided in the Allergan Settlement Agreement. c) A CA Participating Subdivision that is a city will be allocated its Local Allocation share as of the date on which it becomes a Participating Subdivision. The Local Allocation share for a city that is a CA Participating Subdivision will be paid to the county in which the city is located, rather than to the city, so long as: (a) the county is a CA Participating Subdivision, and (b) the city has not advised the Settlement Fund Administrator that it requests direct payment at least 60 days prior to a Payment Date. A Local Allocation share allocated to a city but paid to a county is not required to be spent exclusively for abatement activities in that city, but will become part of the county’s share of the CA Abatement Accounts Funds, which will be used in accordance with Section 4.B.ii (Use of
3 For purposes of clarity, use of the term “California” refers to the geographic territory of California and the state and its local governments therein. The term “State” or “State of California” refers to the State of California as a governmental unit.
DocuSign Envelope ID: 3CD9F679-6B77-46D5-9A87-D10ED0D68C74
4 CA Abatement Accounts Funds) and reported on in accordance with Section 4.B.iii (CA Abatement Accounts Fund Oversight).
d) A city within a county that is a CA Participating Subdivision may opt in or out of direct payment at any time, and it may also elect direct payment of only a portion of its share, with the remainder going to the county, by providing notice to the Settlement Fund Administrator at least 60 days prior to a Payment Date. For purposes of this CA Allergan Allocation Agreement, the Cities of Los Angeles, Oakland, San Diego, San Jose and Eureka will be deemed to have elected direct payment if they become Participating Subdivisions.
e) The State will receive the Local Allocation share of any payment to the Settlement Fund that is attributable to a county or city that is eligible to become a CA Participating Subdivision, but that has not, as of the date of that payment to the Settlement Fund, become a Participating Subdivision.
f) Funds received by a CA Participating Subdivision, and not expended or encumbered within five years of receipt and in accordance with the Allergan Settlement Agreement and this CA Allergan Allocation Agreement shall be transferred to the State; provided however, that CA Participating Subdivisions have seven years to expend or encumber CA Abatement Accounts Funds designated to support capital outlay projects before they must be transferred to the State. This provision shall not apply to the Cost Reimbursement Funds, which shall be controlled by Appendix 2.
ii. Use of CA Abatement Accounts Funds
a) The CA Abatement Accounts Funds will be used for future Opioid Remediation in one or more of the areas described in the List of Opioid Remediation Uses, which is Exhibit E to the Allergan Settlement Agreement.
b) In addition to this requirement, no less than 50% of the funds received by a CA Participating Subdivision from the Abatement Accounts Fund in each calendar year will be used for one or more of the following High Impact Abatement Activities:
(1) the provision of matching funds or operating costs for substance use disorder facilities within the Behavioral Health Continuum Infrastructure Program; (2) creating new or expanded Substance Use Disorder (“SUD”) treatment infrastructure; (3) addressing the needs of communities of color and vulnerable populations (including sheltered and unsheltered homeless populations) that are disproportionately impacted by SUD;
(4) diversion of people with SUD from the justice system into treatment, including by providing training and resources to first and early responders (sworn and non-sworn) and implementing best practices for outreach, diversion and deflection, employability, restorative justice, and harm reduction; and/or
(5) interventions to prevent drug addiction in vulnerable youth.
DocuSign Envelope ID: 3CD9F679-6B77-46D5-9A87-D10ED0D68C74
5 c) The California Department of Health Care Services (“DHCS”) may add to this list (but not delete from it) by designating additional High Impact Abatement Activities. DHCS will make reasonable efforts to consult with stakeholders, including the CA Participating Subdivisions, before adding additional High Impact Abatement Activities to this list. d) For the avoidance of doubt, and subject to the requirements of the Allergan Settlement Agreement and applicable law, CA Participating Subdivisions may form agreements or ventures, or otherwise work in collaboration with, federal, state, local, tribal or private sector entities in pursuing Opioid Remediation activities funded from the CA Abatement Accounts Fund. Further, provided that all CA Abatement Accounts Funds are used for Opioid Remediation consistent with the Allergan Settlement Agreement and this CA Allergan Allocation Agreement, a county and any cities or towns within the county may agree to reallocate their respective shares of the CA Abatement Accounts Funds among themselves, provided that any direct distribution may only be to a CA Participating Subdivision and any CA Participating Subdivision must agree to their share being reallocated.
iii. CA Abatement Accounts Fund Oversight
a) Pursuant to Section 5 below, CA Participating Subdivisions receiving settlement funds must prepare and file reports annually regarding the use of those funds. DHCS may regularly review the reports prepared by CA Participating Subdivisions about the use of CA Abatement Accounts Funds for compliance with the Allergan Settlement Agreement and this CA Allergan Allocation Agreement.
b) If DHCS determines that a CA Participating Subdivision’s use of CA Abatement Accounts Funds is inconsistent with the Allergan Settlement Agreement or this CA Allergan Allocation Agreement, whether through review of reports or information from any other sources, DHCS shall send a request to meet and confer with the CA Participating Subdivision. The parties shall meet and confer in an effort to resolve the concern.
c) If the parties are unable to reach a resolution, DHCS may conduct an audit of the Subdivision’s use of the CA Abatement Accounts Funds within one year of the request to meet and confer, unless the parties mutually agree in writing to extend the meet and confer time frame.
d) If the concern still cannot be resolved, the State may bring a motion or action in the court where the State has filed its Consent Judgment to resolve the concern or otherwise DocuSign Envelope ID: 3CD9F679-6B77-46D5-9A87-D10ED0D68C74
6 enforce the requirements of the Allergan Settlement Agreement or this CA Allergan Allocation Agreement. However, in no case shall any audit be conducted, or motion be brought, as to a specific expenditure of funds, more than five years after the date on which the expenditure of the funds was reported to DHCS, in accordance with this agreement.
e) Notwithstanding the foregoing, this Agreement does not limit the statutory or constitutional authority of any state or local agency or official to conduct audits, investigations, or other oversight activities, or to pursue administrative, civil, or criminal enforcement actions.
C. CA Subdivision Fund
i. Fifteen percent of the total Settlement Fund payments will be allocated to the CA Subdivision Fund. All funds in the CA Subdivision Fund will be allocated among the Plaintiff Subdivisions that are Initial Participating Subdivisions. The funds will be used, subject to any limits imposed by the Allergan Settlement Agreement and this CA Allergan Allocation Agreement, to fund future Opioid Remediation and reimburse past opioid-related expenses, which may include fees and expenses related to litigation, and to pay the reasonable fees and expenses of the Special Master as set forth in Appendix 2.
The CA Subdivision Funds will be allocated as follows:
a) First, funds in the CA Subdivision Fund shall be used to pay the Special Master’s reasonable fees and expenses in accordance with the procedures and limitations set forth in Appendix 2 to this document;
b) Second, funds will be allocated to Plaintiff Subdivisions that are Initial Participating Subdivisions that have been awarded Costs, as defined by and in accordance with the procedures and limitations set forth in Appendix 2 to this document. c) Funds remaining in the CA Subdivision Fund, which shall consist of no less than 50% of the total CA Subdivision Fund received in any year pursuant to Appendix 2, Section 2.c.v, will be distributed to Plaintiff Subdivisions that are Initial Participating Subdivisions, in relative proportion to the Local Allocation. These funds shall be used to fund future opioid-related projects and to reimburse past opioid-related expenses, which may include fees and expenses related to litigation against any Opioid Defendant.
D. Provision for State Back-Stop Agreement
On August 6, 2021, Judge Dan Polster of the U.S. District Court, Northern District of Ohio, Eastern Division, issued an order (ECF Docket Number 3814) (“MDL Fees Order”) in the National Prescription Opiate Litigation (MDL No. 2804) “cap[ping] all applicable contingent fee agreements at 15%.” Private counsel representing Plaintiff Subdivisions should seek its DocuSign Envelope ID: 3CD9F679-6B77-46D5-9A87-D10ED0D68C74
7 contingency fees and costs from the Attorney Fee Fund or Cost Funds under the Teva Settlement Agreement and Allergan Settlement Agreement, and, if applicable, the CVS Settlement Agreement, Distributor Settlement Agreement, Janssen Settlement Agreement, Walgreens Settlement Agreement, and Walmart Settlement Agreement.
A Plaintiff Subdivision may separately agree to use its share of the CA Subdivision Fund to pay for fees or costs incurred by its contingency-fee counsel (“State Back-Stop Agreement”), pursuant to Exhibit R, section I(X), of the Allergan Settlement Agreement and the MDL Fees Order, so long as such contingency fees do not exceed a total contingency fee of 15% of the total gross recovery of the Plaintiff Subdivision pursuant to the Allergan Settlement, inclusive of contingency fees from the national Attorney Fee Fund and this State Back-Stop Agreement.
Before seeking fees or litigation costs and expenses from a State Back-Stop Agreement, private counsel representing Plaintiff Subdivisions must first seek contingency fees and costs from the Attorney Fee Fund or Cost Funds created under the Allergan Settlement Agreement. Further, private counsel may only seek reimbursement for litigation fees and costs that have not previously been reimbursed through prior settlements or judgments.
To effectuate a State Back-Stop Agreement pursuant to this section, an agreement in the form of Appendix 3 may be entered into by a Plaintiff Subdivision, private counsel, and the California Office of the Attorney General. The California Office of the Attorney General shall, upon the request of a Plaintiff Subdivision, execute any agreement executed by a Plaintiff Subdivision and its private counsel if it is in the form of Appendix 3. The California Office of the Attorney General will also consider requests from Plaintiff Subdivisions to execute and enter into agreements presented in other forms.
For the avoidance of doubt, this agreement does not require a Plaintiff Subdivision to request or enter into a State Back-Stop Agreement, and no State Back-Stop Agreement shall impose any duty or obligation on the State of California or any of its agencies or officers, including without limitation the Attorney General.
5. State and Subdivision Reporting
a) DHCS will prepare an annual written report regarding the State’s use of funds from the settlement until those funds are fully expended and for one year thereafter. These reports will be made publicly available on the DHCS web site.
b) Each CA Participating Subdivision that receives payments of funds from the settlement will prepare written reports at least annually regarding the use of those funds, until those funds are fully expended and for one year thereafter. These reports will also include a certification that all funds that the CA Participating Subdivision has received through the settlement have been used in compliance with the Allergan Settlement Agreement and this CA Allergan Allocation Agreement. The report will be in a form reasonably determined by DHCS. Prior to specifying the form of the report DHCS will confer with representatives of the Plaintiff Subdivisions.
DocuSign Envelope ID: 3CD9F679-6B77-46D5-9A87-D10ED0D68C74
8 c) The State and all CA Participating Subdivisions receiving CA Abatement Accounts Funds will track all deposits and expenditures. Each such subdivision is responsible solely for the CA Abatement Accounts Funds it receives. A county is not responsible for oversight, reporting, or monitoring of CA Abatement Accounts Funds received by a city within that county that receives direct payment. Unless otherwise exempt, Subdivisions’ expenditures and uses of CA Abatement Accounts Funds and other Settlement Funds will be subject to the normal budgetary and expenditure process of the Subdivision. d) Each Plaintiff Subdivision receiving CA Subdivision Funds will track all deposits and expenditures, as required by the Allergan Settlement Agreement and this CA Allergan Allocation Agreement. Among other things, Plaintiff Subdivisions using monies from the CA Subdivision Fund for purposes that do not qualify as Opioid Remediation must identify and include in their annual report, the amount and how such funds were used, including if used to pay attorneys’ fees, investigation costs, or litigation costs. Pursuant to Section VIII(C) of the Allergan Settlement Agreement, such information must also be reported to the Settlement Fund Administrator and Allergan. e) In each year in which DHCS prepares an annual report DHCS will also host a meeting to discuss the annual report and the Opioid Remediation activities being carried out by the State and Participating Subdivisions.
6. Miscellaneous
a) The State or any CA Participating Subdivision may bring a motion or action in the court where the State has filed its Consent Judgment to enforce the requirements of this CA Allergan Allocation Agreement. Before filing such a motion or action the State will meet and confer with any CA Participating Subdivision that is the subject of the anticipated motion or action, and vice versa.
b) Except as provided in the Allergan Settlement Agreement, this CA Allergan Allocation Agreement is not enforceable by any party other than the State and the CA Participating Subdivisions. It does not confer any rights or remedies upon, and shall not be enforceable by, any third party.
c) Except as provided in the CA Allergan Allocation Agreement, if any provision of this agreement or the application thereof to any person, entity, or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this agreement, or the application of such provision to persons, entities, or circumstances other than those as to which it is invalid or unenforceable, will not be affected thereby, and each other provision of this agreement will be valid and enforceable to the fullest extent permitted by law. d) Except as provided in the Allergan Settlement Agreement, this agreement shall be governed by and interpreted in accordance with the laws of California.
DocuSign Envelope ID: 3CD9F679-6B77-46D5-9A87-D10ED0D68C74
9 The undersigned, San Luis Obispo city, ACKNOWLEDGES acceptance of this Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds – Allergan Settlement is a requirement to be an Initial Participating Subdivision in the Allergan Settlement and ACCEPTS this Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds – Allergan Settlement. EXECUTED on /date_1_teva_allergan/.
Signature: /signer_1_teva_allergan/
Name: /name_1_teva_allergan/
Title: /title_1_teva_allergan/
Date: /date_1_teva_allergan/
DocuSign Envelope ID: 3CD9F679-6B77-46D5-9A87-D10ED0D68C74
DISCLAIMER: The allocation percentages herein are estimates only and should not be relied on for decisions regarding legal rights, releases, waivers, or other decisions affecting current or potential legal claims. Percentages shown in the Plaintiff Subdivision Percentage column may change pursuant to Section 4.C. of the California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds—Allergan Settlement, whereas the percentages shown in the Abatement Percentage column should not change. Participating Subdivisions, underlying calculations, and the calculated allocation percentages are subject to change.
Regarding the column herein entitled “Abatement Percentage,” pursuant to Section 4.B.e., the State of California will receive the Local Allocation share of any payment to the Settlement Fund that is attributable to a county or city that is eligible to become a CA Participating Subdivision, but that has not, as of the date of that payment to the Settlement Fund, become a Participating Subdivision.
Regarding the column herein entitled “Plaintiff Subdivision Percentage,” payments allocated to a Plaintiff Subdivision, which is not an Initial Participating Subdivision, will be re-allocated among the Plaintiff Subdivisions that are Initial Participating Subdivisions.
Regarding the column herein entitled “Abatement Percentage,” the annotation of “100%” refers to one-hundred percent (100%) of the California Abatement Account Funds received, pursuant to Section 4.B. Regarding the column herein entitled “Plaintiff Subdivision Percentage,” the annotation of “100%” refers to one-hundred percent (100%) of the California Subdivision Funds received, pursuant to Section 4.C. Regarding the column herein entitled “Weighted Allocation Percentage,” the annotation of “100%” refers to onehundred percent (100%) of the combined and weighted allocation of the Abatement Percentage and the Plaintiff Subdivision Percentage.
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100.000% 100.000% 100.000%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
County Alameda County Alameda 2.332% 2.853% 2.4237952%
City Alameda Alameda 0.069% 0.0570162%
City Albany Alameda 0.013% 0.0107768%
City Berkeley Alameda 0.152% 0.1249656%
City Dublin Alameda 0.033% 0.040% 0.0338810%
City Emeryville Alameda 0.023% 0.0185765%
City Fremont Alameda 0.108% 0.0888576%
City Hayward Alameda 0.117% 0.0966218%
City Livermore Alameda 0.054% 0.0446740%
City Newark Alameda 0.026% 0.0217626%
City Oakland Alameda 0.486% 0.595% 0.5055601%
City Piedmont Alameda 0.014% 0.0114064%
City Pleasanton Alameda 0.067% 0.0554547%
City San Leandro Alameda 0.039% 0.0321267%
City Union City Alameda 0.043% 0.0352484%
County Amador County Amador 0.226% 0.277% 0.2349885%
County Butte County Butte 1.615% 1.975% 1.6783178%
City Chico Butte 0.216% 0.264% 0.2246499%
City Oroville Butte 0.079% 0.0646595%
County Calaveras County Calaveras 0.226% 0.277% 0.2351644% County Colusa County Colusa 0.059% 0.0489221%
County Contra Costa County Contra Costa 2.102% 2.571% 2.1844585% City Antioch Contra Costa 0.037% 0.0301879%
City Brentwood Contra Costa 0.026% 0.0215339%
City Clayton Contra Costa 0.002% 0.0018060%
City Concord Contra Costa 0.055% 0.0456676%
City Danville Contra Costa 0.010% 0.0082255%
City El Cerrito Contra Costa 0.023% 0.0189024%
City Hercules Contra Costa 0.010% 0.0078273%
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APPENDIX 1
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Lafayette Contra Costa 0.006% 0.0046030%
City Martinez Contra Costa 0.012% 0.0098593%
City Moraga Contra Costa 0.004% 0.0031007%
City Oakley Contra Costa 0.010% 0.0079416%
City Orinda Contra Costa 0.005% 0.0038157%
City Pinole Contra Costa 0.013% 0.0110909%
City Pittsburg Contra Costa 0.053% 0.0436369%
City Pleasant Hill Contra Costa 0.013% 0.0106309%
City Richmond Contra Costa 0.146% 0.1201444%
City San Pablo Contra Costa 0.018% 0.0148843%
City San Ramon Contra Costa 0.021% 0.0176459%
City Walnut Creek Contra Costa 0.026% 0.0212132%
County Del Norte County Del Norte 0.114% 0.140% 0.1189608% County El Dorado County El Dorado 0.768% 0.939% 0.7980034% City Placerville El Dorado 0.015% 0.0127642%
City South Lake Tahoe El Dorado 0.081% 0.0665456%
County Fresno County Fresno 1.895% 2.318% 1.9693410%
City Clovis Fresno 0.065% 0.0536211%
City Coalinga Fresno 0.012% 0.0098554%
City Fresno Fresno 0.397% 0.3270605%
City Kerman Fresno 0.005% 0.0042534%
City Kingsburg Fresno 0.008% 0.0066167%
City Mendota Fresno 0.002% 0.0019387%
City Orange Cove Fresno 0.004% 0.0035607%
City Parlier Fresno 0.008% 0.0069755%
City Reedley Fresno 0.012% 0.0098804%
City Sanger Fresno 0.018% 0.0146135%
City Selma Fresno 0.015% 0.0127537%
County Glenn County Glenn 0.107% 0.131% 0.1116978%
County Humboldt County Humboldt 1.030% 1.260% 1.0703185% DocuSign Envelope ID: 3CD9F679-6B77-46D5-9A87-D10ED0D68C74
APPENDIX 1
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Arcata Humboldt 0.054% 0.0447660%
City Eureka Humboldt 0.117% 0.143% 0.1216284%
City Fortuna Humboldt 0.032% 0.0266837%
County Imperial County Imperial 0.258% 0.315% 0.2679006% City Brawley Imperial 0.011% 0.0087986%
City Calexico Imperial 0.019% 0.0152799%
City El Centro Imperial 0.158% 0.1302522%
City Imperial Imperial 0.006% 0.0048791%
County Inyo County Inyo 0.073% 0.089% 0.0754413%
County Kern County Kern 2.517% 3.079% 2.6159145%
City Arvin Kern 0.006% 0.0046425%
City Bakersfield Kern 0.212% 0.1747198%
City California City Kern 0.009% 0.0070820%
City Delano Kern 0.030% 0.0249316%
City McFarland Kern 0.003% 0.0025644%
City Ridgecrest Kern 0.015% 0.0120938%
City Shafter Kern 0.013% 0.0103417%
City Tehachapi Kern 0.009% 0.0073580%
City Wasco Kern 0.008% 0.0069861%
County Kings County Kings 0.293% 0.2413469%
City Avenal Kings 0.007% 0.0056335%
City Corcoran Kings 0.013% 0.0107032%
City Hanford Kings 0.027% 0.0226038%
City Lemoore Kings 0.016% 0.0131900%
County Lake County Lake 0.795% 0.6545389%
City Clearlake Lake 0.041% 0.050% 0.0426253%
City Lakeport Lake 0.021% 0.026% 0.0222964%
County Lassen County Lassen 0.319% 0.391% 0.3320610%
City Susanville Lassen 0.027% 0.0219295%
County Los Angeles County Los Angeles 13.896% 16.999% 14.4437559% DocuSign Envelope ID: 3CD9F679-6B77-46D5-9A87-D10ED0D68C74
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4 of 15
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Agoura Hills Los Angeles 0.005% 0.0040024%
City Alhambra Los Angeles 0.042% 0.0343309%
City Arcadia Los Angeles 0.033% 0.0267718%
City Artesia Los Angeles 0.001% 0.0005100%
City Azusa Los Angeles 0.026% 0.0210857%
City Baldwin Park Los Angeles 0.027% 0.0218520%
City Bell Los Angeles 0.008% 0.0068783%
City Bellflower Los Angeles 0.002% 0.0014485%
City Bell Gardens Los Angeles 0.014% 0.0114301%
City Beverly Hills Los Angeles 0.065% 0.0534897%
City Burbank Los Angeles 0.100% 0.0823132%
City Calabasas Los Angeles 0.006% 0.0048948%
City Carson Los Angeles 0.019% 0.0159805%
City Cerritos Los Angeles 0.005% 0.0039682%
City Claremont Los Angeles 0.010% 0.0082584%
City Commerce Los Angeles 0.000% 0.0002971%
City Compton Los Angeles 0.044% 0.0361882%
City Covina Los Angeles 0.028% 0.0229127%
City Cudahy Los Angeles 0.001% 0.0006020%
City Culver City Los Angeles 0.055% 0.0449894%
City Diamond Bar Los Angeles 0.001% 0.0006993%
City Downey Los Angeles 0.052% 0.0429994%
City Duarte Los Angeles 0.003% 0.0027261%
City El Monte Los Angeles 0.031% 0.038% 0.0318985%
City El Segundo Los Angeles 0.033% 0.0268020%
City Gardena Los Angeles 0.034% 0.0278088%
City Glendale Los Angeles 0.166% 0.1366586%
City Glendora Los Angeles 0.016% 0.0134411%
City Hawaiian Gardens Los Angeles 0.005% 0.0040549%
City Hawthorne Los Angeles 0.050% 0.0407833%
DocuSign Envelope ID: 3CD9F679-6B77-46D5-9A87-D10ED0D68C74
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Hermosa Beach Los Angeles 0.018% 0.0145307%
City Huntington Park Los Angeles 0.023% 0.0190667%
City Inglewood Los Angeles 0.059% 0.0489195%
City La Cañada Flintridge Los Angeles 0.003% 0.0025565% City Lakewood Los Angeles 0.005% 0.0039971%
City La Mirada Los Angeles 0.010% 0.0081572%
City Lancaster Los Angeles 0.045% 0.0369689%
City La Puente Los Angeles 0.002% 0.0012999%
City La Verne Los Angeles 0.024% 0.0194190%
City Lawndale Los Angeles 0.002% 0.0017731%
City Lomita Los Angeles 0.004% 0.0031940%
City Long Beach Los Angeles 0.439% 0.3614151%
City Los Angeles Los Angeles 2.715% 3.321% 2.8218811%
City Lynwood Los Angeles 0.016% 0.0134345%
City Malibu Los Angeles 0.002% 0.0019269%
City Manhattan Beach Los Angeles 0.032% 0.0260686%
City Maywood Los Angeles 0.004% 0.0035528%
City Monrovia Los Angeles 0.031% 0.0254455%
City Montebello Los Angeles 0.030% 0.0250670%
City Monterey Park Los Angeles 0.031% 0.0256677%
City Norwalk Los Angeles 0.031% 0.0258228%
City Palmdale Los Angeles 0.046% 0.0375827%
City Palos Verdes Estates Los Angeles 0.006% 0.0053102% City Paramount Los Angeles 0.011% 0.0091483%
City Pasadena Los Angeles 0.146% 0.1200524%
City Pico Rivera Los Angeles 0.022% 0.0183333%
City Pomona Los Angeles 0.111% 0.0911933%
City Rancho Palos Verdes Los Angeles 0.002% 0.0012645%
City Redondo Beach Los Angeles 0.062% 0.0506992%
City Rosemead Los Angeles 0.003% 0.0028260%
DocuSign Envelope ID: 3CD9F679-6B77-46D5-9A87-D10ED0D68C74
APPENDIX 1
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City San Dimas Los Angeles 0.003% 0.0022016%
City San Fernando Los Angeles 0.013% 0.0104837%
City San Gabriel Los Angeles 0.018% 0.0147726%
City San Marino Los Angeles 0.009% 0.0073791%
City Santa Clarita Los Angeles 0.022% 0.0178167%
City Santa Fe Springs Los Angeles 0.031% 0.0257531%
City Santa Monica Los Angeles 0.158% 0.1298513%
City Sierra Madre Los Angeles 0.006% 0.0048646%
City Signal Hill Los Angeles 0.010% 0.0084884%
City South El Monte Los Angeles 0.005% 0.0039603%
City South Gate Los Angeles 0.020% 0.0166272%
City South Pasadena Los Angeles 0.012% 0.0095334%
City Temple City Los Angeles 0.005% 0.0039498%
City Torrance Los Angeles 0.112% 0.0919820%
City Walnut Los Angeles 0.006% 0.0047305%
City West Covina Los Angeles 0.049% 0.0404521%
City West Hollywood Los Angeles 0.013% 0.0108517%
City Whittier Los Angeles 0.032% 0.0260581%
County Madera County Madera 0.349% 0.427% 0.3630669%
City Chowchilla Madera 0.012% 0.0097332%
City Madera Madera 0.039% 0.0318441%
County Marin County Marin 0.564% 0.690% 0.5861325%
City Larkspur Marin 0.015% 0.0124697%
City Mill Valley Marin 0.020% 0.0168401%
City Novato Marin 0.028% 0.0229824%
City San Anselmo Marin 0.009% 0.0078062%
City San Rafael Marin 0.089% 0.0729823%
County Mariposa County Mariposa 0.084% 0.103% 0.0876131% County Mendocino County Mendocino 0.439% 0.536% 0.4558394% City Ukiah Mendocino 0.039% 0.0317153%
DocuSign Envelope ID: 3CD9F679-6B77-46D5-9A87-D10ED0D68C74
APPENDIX 1
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
County Merced County Merced 0.551% 0.674% 0.5724262%
City Atwater Merced 0.024% 0.0195846%
City Livingston Merced 0.006% 0.0045873%
City Los Banos Merced 0.020% 0.0165142%
City Merced Merced 0.061% 0.0500762%
County Modoc County Modoc 0.065% 0.080% 0.0678250%
County Mono County Mono 0.023% 0.029% 0.0242606%
County Monterey County Monterey 0.908% 1.111% 0.9437083% City Greenfield Monterey 0.006% 0.0050552%
City King City Monterey 0.005% 0.0037355%
City Marina Monterey 0.017% 0.0144098%
City Monterey Monterey 0.041% 0.0336540%
City Pacific Grove Monterey 0.009% 0.0074842%
City Salinas Monterey 0.094% 0.0776576%
City Seaside Monterey 0.023% 0.0191772%
City Soledad Monterey 0.007% 0.0060870%
County Napa County Napa 0.288% 0.352% 0.2994325%
City American Canyon Napa 0.017% 0.0136869%
City Napa Napa 0.078% 0.0642783%
County Nevada County Nevada 0.441% 0.539% 0.4579827%
City Grass Valley Nevada 0.024% 0.0197805%
City Truckee Nevada 0.003% 0.0023843%
County Orange County Orange 4.364% 5.339% 4.5363576%
City Aliso Viejo Orange 0.014% 0.0113841%
City Anaheim Orange 0.554% 0.678% 0.5759282%
City Brea Orange 0.086% 0.0708897%
City Buena Park Orange 0.087% 0.0714352%
City Costa Mesa Orange 0.124% 0.152% 0.1288366%
City Cypress Orange 0.033% 0.0271937%
City Dana Point Orange 0.001% 0.0005560%
DocuSign Envelope ID: 3CD9F679-6B77-46D5-9A87-D10ED0D68C74
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Fountain Valley Orange 0.055% 0.0455980%
City Fullerton Orange 0.137% 0.168% 0.1425744%
City Garden Grove Orange 0.213% 0.1752482%
City Huntington Beach Orange 0.247% 0.302% 0.2568420%
City Irvine Orange 0.139% 0.170% 0.1442350%
City Laguna Beach Orange 0.047% 0.058% 0.0493043%
City Laguna Hills Orange 0.014% 0.0115457%
City Laguna Niguel Orange 0.001% 0.0007071%
City Laguna Woods Orange 0.001% 0.0006546%
City La Habra Orange 0.060% 0.073% 0.0621049%
City Lake Forest Orange 0.012% 0.0101249%
City La Palma Orange 0.012% 0.0095439%
City Los Alamitos Orange 0.008% 0.0069190%
City Mission Viejo Orange 0.014% 0.0117560%
City Newport Beach Orange 0.179% 0.1470134%
City Orange Orange 0.150% 0.1231320%
City Placentia Orange 0.029% 0.035% 0.0298912%
City Rancho Santa Margarita Orange 0.001% 0.0006296%
City San Clemente Orange 0.008% 0.010% 0.0086083%
City San Juan Capistrano Orange 0.008% 0.0065510%
City Santa Ana Orange 0.502% 0.614% 0.5213866%
City Seal Beach Orange 0.020% 0.0165891%
City Stanton Orange 0.035% 0.0291955%
City Tustin Orange 0.073% 0.0600341%
City Westminster Orange 0.104% 0.127% 0.1082721%
City Yorba Linda Orange 0.044% 0.0362223%
County Placer County Placer 1.045% 1.278% 1.0861002%
City Auburn Placer 0.017% 0.0141114%
City Lincoln Placer 0.031% 0.0255599%
City Rocklin Placer 0.076% 0.0625485%
DocuSign Envelope ID: 3CD9F679-6B77-46D5-9A87-D10ED0D68C74
APPENDIX 1
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Participating Subdivision County Abatement
Percentage
Plaintiff
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Percentage
Weighted
Allcation
Percentage
City Roseville Placer 0.196% 0.1616559%
County Plumas County Plumas 0.205% 0.251% 0.2128729%
County Riverside County Riverside 4.534% 5.547% 4.7128296% City Banning Riverside 0.017% 0.0143848%
City Beaumont Riverside 0.021% 0.0171135%
City Blythe Riverside 0.012% 0.0096714%
City Canyon Lake Riverside 0.000% 0.0001761%
City Cathedral City Riverside 0.067% 0.0553614%
City Coachella Riverside 0.021% 0.0173054%
City Corona Riverside 0.147% 0.1207083%
City Desert Hot Springs Riverside 0.024% 0.0200433%
City Eastvale Riverside 0.000% 0.0002747%
City Hemet Riverside 0.051% 0.0421792%
City Indio Riverside 0.056% 0.0457794%
City Jurupa Valley Riverside 0.001% 0.0008991%
City Lake Elsinore Riverside 0.021% 0.0172949%
City La Quinta Riverside 0.063% 0.0516732%
City Menifee Riverside 0.032% 0.0260909%
City Moreno Valley Riverside 0.137% 0.1130348%
City Murrieta Riverside 0.048% 0.059% 0.0497423%
City Norco Riverside 0.016% 0.0134542%
City Palm Desert Riverside 0.083% 0.0682465%
City Palm Springs Riverside 0.076% 0.0629862%
City Perris Riverside 0.009% 0.0076774%
City Rancho Mirage Riverside 0.052% 0.0431098%
City Riverside Riverside 0.268% 0.2206279%
City San Jacinto Riverside 0.010% 0.0085936%
City Temecula Riverside 0.022% 0.0180086%
City Wildomar Riverside 0.008% 0.0062500%
County Sacramento County Sacramento 3.797% 4.645% 3.9465887% DocuSign Envelope ID: 3CD9F679-6B77-46D5-9A87-D10ED0D68C74
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Participating Subdivision County Abatement
Percentage
Plaintiff
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Percentage
Weighted
Allcation
Percentage
City Citrus Heights Sacramento 0.057% 0.0465312%
City Elk Grove Sacramento 0.130% 0.1066994%
City Folsom Sacramento 0.108% 0.0890850%
City Galt Sacramento 0.017% 0.0143704%
City Rancho Cordova Sacramento 0.008% 0.0067679%
City Sacramento Sacramento 0.721% 0.882% 0.7496530%
County San Benito County San Benito 0.106% 0.130% 0.1101417% City Hollister San Benito 0.027% 0.0225355%
County San Bernardino County San Bernardino 3.259% 3.987% 3.3878124% City Adelanto San Bernardino 0.008% 0.0066640%
City Apple Valley San Bernardino 0.025% 0.0207360%
City Barstow San Bernardino 0.015% 0.0122056%
City Chino San Bernardino 0.064% 0.0525893%
City Chino Hills San Bernardino 0.001% 0.0006388%
City Colton San Bernardino 0.031% 0.0253443%
City Fontana San Bernardino 0.112% 0.0920543%
City Grand Terrace San Bernardino 0.006% 0.0051051%
City Hesperia San Bernardino 0.035% 0.0291522%
City Highland San Bernardino 0.004% 0.0029061%
City Loma Linda San Bernardino 0.009% 0.0071188%
City Montclair San Bernardino 0.039% 0.0322108%
City Ontario San Bernardino 0.179% 0.1472934%
City Rancho Cucamonga San Bernardino 0.084% 0.0689431%
City Redlands San Bernardino 0.057% 0.0469150%
City Rialto San Bernardino 0.073% 0.0603206%
City San Bernardino San Bernardino 0.178% 0.1461880%
City Twentynine Palms San Bernardino 0.002% 0.0012605%
City Upland San Bernardino 0.052% 0.0424460%
City Victorville San Bernardino 0.033% 0.0269400%
City Yucaipa San Bernardino 0.016% 0.0128772%
DocuSign Envelope ID: 3CD9F679-6B77-46D5-9A87-D10ED0D68C74
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Participating Subdivision County Abatement
Percentage
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Percentage
Weighted
Allcation
Percentage
City Yucca Valley San Bernardino 0.003% 0.0021228%
County San Diego County San Diego 5.706% 6.980% 5.9309748% City Carlsbad San Diego 0.128% 0.1050485%
City Chula Vista San Diego 0.189% 0.231% 0.1961456%
City Coronado San Diego 0.044% 0.0359095%
City El Cajon San Diego 0.113% 0.0933582%
City Encinitas San Diego 0.061% 0.074% 0.0630289%
City Escondido San Diego 0.145% 0.1192204%
City Imperial Beach San Diego 0.014% 0.0118283%
City La Mesa San Diego 0.055% 0.068% 0.0575593%
City Lemon Grove San Diego 0.022% 0.0183911%
City National City San Diego 0.080% 0.0656808%
City Oceanside San Diego 0.213% 0.1753428%
City Poway San Diego 0.062% 0.0511040%
City San Diego San Diego 1.975% 2.416% 2.0531169%
City San Marcos San Diego 0.089% 0.0733897%
City Santee San Diego 0.033% 0.0268401%
City Solana Beach San Diego 0.017% 0.0138564%
City Vista San Diego 0.052% 0.0425144%
Consolidated San Francisco San Francisco 3.026% 3.702% 3.1457169% County San Joaquin County San Joaquin 1.680% 2.055% 1.7460399% City Lathrop San Joaquin 0.009% 0.0075394%
City Lodi San Joaquin 0.053% 0.0439484%
City Manteca San Joaquin 0.054% 0.0443454%
City Ripon San Joaquin 0.013% 0.0104219%
City Stockton San Joaquin 0.313% 0.383% 0.3256176%
City Tracy San Joaquin 0.084% 0.0692047%
County San Luis Obispo County San Luis Obispo 0.816% 0.999% 0.8484126% City Arroyo Grande San Luis Obispo 0.024% 0.0199053%
City Atascadero San Luis Obispo 0.029% 0.0240680%
DocuSign Envelope ID: 3CD9F679-6B77-46D5-9A87-D10ED0D68C74
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Participating Subdivision County Abatement
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Weighted
Allcation
Percentage
City El Paso de Robles (Paso Robles) San Luis Obispo 0.043% 0.0353456% City Grover Beach San Luis Obispo 0.017% 0.0137881%
City Morro Bay San Luis Obispo 0.020% 0.0160922%
City San Luis Obispo San Luis Obispo 0.077% 0.0637841%
County San Mateo County San Mateo 1.074% 1.313% 1.1159599% City Belmont San Mateo 0.021% 0.0169860%
City Burlingame San Mateo 0.019% 0.0152537%
City Daly City San Mateo 0.044% 0.0363880%
City East Palo Alto San Mateo 0.013% 0.0103982%
City Foster City San Mateo 0.020% 0.0166101%
City Half Moon Bay San Mateo 0.004% 0.0031638%
City Hillsborough San Mateo 0.013% 0.0110029%
City Menlo Park San Mateo 0.015% 0.0126209%
City Millbrae San Mateo 0.013% 0.0105836%
City Pacifica San Mateo 0.016% 0.0130625%
City Redwood City San Mateo 0.056% 0.0463511%
City San Bruno San Mateo 0.021% 0.0172161%
City San Carlos San Mateo 0.013% 0.0108885%
City San Mateo San Mateo 0.052% 0.0425841%
City South San Francisco San Mateo 0.043% 0.0353943%
County Santa Barbara County Santa Barbara 1.132% 1.385% 1.1768968% City Carpinteria Santa Barbara 0.001% 0.0008938%
City Goleta Santa Barbara 0.004% 0.0028969%
City Lompoc Santa Barbara 0.047% 0.0389379%
City Santa Barbara Santa Barbara 0.122% 0.1004559%
City Santa Maria Santa Barbara 0.058% 0.0479179%
County Santa Clara County Santa Clara 2.404% 2.941% 2.4987553% City Campbell Santa Clara 0.014% 0.0112566%
City Cupertino Santa Clara 0.008% 0.0066824%
City Gilroy Santa Clara 0.025% 0.0202891%
DocuSign Envelope ID: 3CD9F679-6B77-46D5-9A87-D10ED0D68C74
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Participating Subdivision County Abatement
Percentage
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Weighted
Allcation
Percentage
City Los Altos Santa Clara 0.013% 0.0103338%
City Los Gatos Santa Clara 0.013% 0.0103220%
City Milpitas Santa Clara 0.036% 0.0298120%
City Morgan Hill Santa Clara 0.015% 0.0124619%
City Mountain View Santa Clara 0.041% 0.0334608%
City Palo Alto Santa Clara 0.039% 0.0323080%
City San Jose Santa Clara 0.294% 0.360% 0.3054960%
City Santa Clara Santa Clara 0.067% 0.0549723%
City Saratoga Santa Clara 0.004% 0.0034161%
City Sunnyvale Santa Clara 0.053% 0.0434069%
County Santa Cruz County Santa Cruz 0.783% 0.957% 0.8135396% City Capitola Santa Cruz 0.020% 0.0168191%
City Santa Cruz Santa Cruz 0.143% 0.1180348%
City Scotts Valley Santa Cruz 0.015% 0.0126525%
City Watsonville Santa Cruz 0.063% 0.0520136%
County Shasta County Shasta 1.095% 1.339% 1.1380191%
City Anderson Shasta 0.024% 0.0198896%
City Redding Shasta 0.284% 0.2334841%
City Shasta Lake Shasta 0.004% 0.0031993%
County Siskiyou County Siskiyou 0.228% 0.279% 0.2373393% County Solano County Solano 0.760% 0.6260795%
City Benicia Solano 0.031% 0.0253903%
City Dixon Solano 0.016% 0.0130849%
City Fairfield Solano 0.109% 0.0897317%
City Suisun City Solano 0.021% 0.0176183%
City Vacaville Solano 0.119% 0.0976497%
City Vallejo Solano 0.167% 0.1373644%
County Sonoma County Sonoma 1.218% 1.490% 1.2661290%
City Healdsburg Sonoma 0.032% 0.0266929%
City Petaluma Sonoma 0.081% 0.0667507%
DocuSign Envelope ID: 3CD9F679-6B77-46D5-9A87-D10ED0D68C74
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Percentage
City Rohnert Park Sonoma 0.041% 0.0340759%
City Santa Rosa Sonoma 0.184% 0.1519070%
City Sonoma Sonoma 0.022% 0.0183438%
City Windsor Sonoma 0.016% 0.0129298%
County Stanislaus County Stanislaus 1.722% 1.4182273%
City Ceres Stanislaus 0.041% 0.0340260%
City Modesto Stanislaus 0.217% 0.1788759%
City Newman Stanislaus 0.006% 0.0046964%
City Oakdale Stanislaus 0.018% 0.0145531%
City Patterson Stanislaus 0.015% 0.0126590%
City Riverbank Stanislaus 0.010% 0.0085699%
City Turlock Stanislaus 0.065% 0.0531966%
County Sutter County Sutter 0.306% 0.374% 0.3179548%
City Yuba City Sutter 0.074% 0.0606242%
County Tehama County Tehama 0.213% 0.261% 0.2216654%
City Red Bluff Tehama 0.014% 0.0117771%
County Trinity County Trinity 0.082% 0.101% 0.0855476%
County Tulare County Tulare 0.809% 0.990% 0.8410949%
City Dinuba Tulare 0.014% 0.0116929%
City Exeter Tulare 0.004% 0.0032479%
City Farmersville Tulare 0.003% 0.0027879%
City Lindsay Tulare 0.007% 0.0057111%
City Porterville Tulare 0.021% 0.0171845%
City Tulare Tulare 0.037% 0.0302273%
City Visalia Tulare 0.066% 0.0545872%
County Tuolumne County Tuolumne 0.486% 0.594% 0.5047621% County Ventura County Ventura 2.192% 2.681% 2.2781201%
City Camarillo Ventura 0.002% 0.0012815%
City Fillmore Ventura 0.002% 0.0020294%
City Moorpark Ventura 0.008% 0.0067337%
DocuSign Envelope ID: 3CD9F679-6B77-46D5-9A87-D10ED0D68C74
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Weighted
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Percentage
City Oxnard Ventura 0.156% 0.190% 0.1617338%
City Port Hueneme Ventura 0.021% 0.0174145%
City San Buenaventura (Ventura) Ventura 0.085% 0.0702181% City Santa Paula Ventura 0.014% 0.0119072%
City Simi Valley Ventura 0.065% 0.0533043%
City Thousand Oaks Ventura 0.022% 0.0179902%
County Yolo County Yolo 0.357% 0.437% 0.3713319%
City Davis Yolo 0.055% 0.0451747%
City West Sacramento Yolo 0.066% 0.0544321%
City Woodland Yolo 0.058% 0.0477904%
County Yuba County Yuba 0.214% 0.262% 0.2225679%
City Marysville Yuba 0.014% 0.0112079%
DocuSign Envelope ID: 3CD9F679-6B77-46D5-9A87-D10ED0D68C74
1 APPENDIX 2
Cost Reimbursement Procedure
1. Additional defined terms:
a) Costs means the reasonable amounts paid for the attorney and other City Attorney and County Counsel staff time for individuals employed by a Plaintiff Subdivision at the contractual rate, inclusive of benefits and overhead, together with amounts paid for court reporters, experts, copying, electronic research, travel, vendors, and the like, which were not previously reimbursed and which were paid or incurred (i) prior to December 31, 2022 in litigation against any Opioid Defendant and/or (ii) in negotiating and drafting any CA Allocation Agreement(s) concerning a settlement with any Opioid Defendant(s).
Costs does not include attorneys’ fees, costs, or expenses incurred by private contingency fee counsel. No part of the CA Abatement Accounts Fund will be used to reimburse Costs.
b) First Claims Date means October 1, 2023 or when all applications for reimbursement of Costs, in whole or in part, from funds available under Section XIV and Exhibit R of the Teva Settlement Agreement, Section XIII and Exhibit R of the Allergan Settlement Agreement, Section X and Exhibit R of the Distributor Settlement Agreement, Section XI and Exhibit R of the Janssen Settlement Agreement, Section X and Exhibit R of the CVS Settlement Agreement, Section IX and Exhibit R of the Walgreens Settlement Agreement, or Section IX and Exhibit R of the Walmart Settlement Agreement, have been finally determined under the provisions of those agreements, whichever comes first. c) Special Master means a retired judicial officer or former public lawyer, not presently employed or retained by a Plaintiff Subdivision, who will aggregate, review, and determine the reasonable Costs to be awarded to each Plaintiff Subdivision that submits a claim for reimbursement of Costs. The Special Master will be selected by a majority vote of the votes cast by Plaintiff Subdivisions, with each such subdivision having one vote. d) Plaintiff Subdivision Committee means the committee of Plaintiff Subdivisions that will review and approve the invoices submitted by the Special Master reflecting his or her reasonable time and expenses.
2. Cost Reimbursement to Plaintiff Subdivision
a) Purpose. Substantial resources have been expended to hold Opioid Defendants accountable for creating and profiting from the opioid crisis, and this effort has been a significant catalyst in creating National Opioid Settlements with various manufacturers, distributors, and chain pharmacies.
b) Claims Procedure.
DocuSign Envelope ID: 3CD9F679-6B77-46D5-9A87-D10ED0D68C74
2 i. If a Plaintiff Subdivision is eligible to seek reimbursement of Costs, in whole or in part, from funds available under Section XIV and Exhibit R of the Teva Settlement Agreement, Section XIII and Exhibit R of the Allergan Settlement Agreement, Section X and Exhibit R of the CVS Settlement Agreement, Section IX and Exhibit R of the Walgreens Settlement Agreement, Section IX and Exhibit R of the Walmart Settlement Agreement, Section X or Exhibit R of the Distributor Settlement Agreement, or Section XI or Exhibit R of the Janssen Settlement Agreement, it must first make a timely application for reimbursement from such funds. To allow sufficient time for determination of those applications, no claim for Costs to the CA Subdivision Fund under this Agreement may be made before the First Claims Date. ii. A Plaintiff Subdivision that wishes to be reimbursed from the CA Subdivision Fund must submit a claim to the Special Master no later than forty-five (45) days after the First Claims Date. The Special Master will then compile and redistribute the aggregated claim totals for each Plaintiff Subdivision via email to representatives of all the Plaintiff Subdivisions. A claim for attorney and staff time must list, for each attorney or staff member included in the claim, the following information: name, title, total hours claimed, hourly rate (including, if sought, benefits and share of overhead), and narrative summarizing the general nature of the work performed by the attorney or staff member. For reimbursement of “hard” costs, the subdivision may aggregate across a category (e.g., total for travel costs). It is the intention of the Plaintiff Subdivisions that submission of documents related to reimbursement of Costs does not waive any attorney-client privilege or exemptions to the California Public Records Act.
iii. The Special Master may request, at his or her sole option, additional documents or details to assist in the final award of Costs.
iv. The Special Master will review claims for reasonableness and will notify each Plaintiff Subdivision of the final determination of its claim, and will provide a list of all final awards to all Plaintiff Subdivisions by email or, upon request, via First Class U.S. Mail. Any Plaintiff Subdivision may ask the Special Master to reconsider any final award within twenty-one (21) days. The Special Master will make a final determination on any such reconsideration request within thirty (30) days of receipt. v. Any decision of the Special Master is final and binding, and will be considered under the California Arbitration Act, Code of Civil Procedure section 1280 et seq. as a final arbitration award. Nothing in this agreement is intended to expand the scope of judicial review of the final award for errors of fact or law, and the Parties agree that they may only seek to vacate the award if clear and convincing evidence demonstrates one of the factors set forth in Code of Civil Procedure, section 1286.2, subdivision (a). Plaintiff Subdivisions will have fourteen (14) days after all final awards are made, together with any final determination of a request for reconsideration, to seek review in the Superior Court of California, pursuant to Code of Civil Procedure, section 1285, where the State has filed its Consent Judgment.
DocuSign Envelope ID: 3CD9F679-6B77-46D5-9A87-D10ED0D68C74
3 vi. The Special Master will prepare a report of Costs that includes his or her fees and expenses at least ninety (90) days before the Payment Date for each Annual Payment. The Special Master’s preparation of a report of Costs does not discharge a Plaintiff Subdivision’s reporting requirement under Section VIII.C of the Allergan Settlement Agreement.
vii. A member of the Plaintiff Subdivision Committee, which is a CA Participating Subdivision, will submit to the Settlement Fund Administrator and Allergan a report of the fees and expenses incurred by the Special Master pursuant to Section VIII.C of the Allergan Settlement Agreement.
c) Claims Priority and Limitation.
i. The Special Master will submit invoices for compensation of reasonable fees and expenses to the Plaintiff Subdivision Committee no later than ninety (90) days prior to the Payment Date for each Annual Payment. The Plaintiff Subdivision Committee will promptly review and, if reasonable, approve the Special Master’s invoice for compensation. The Plaintiff Subdivision Committee will submit approved invoices to the Settlement Fund Administrator for payment. The Special Master’s approved invoices have priority and will be paid first from the CA Subdivision Fund before any award of Costs, subject to the limitation in Section 2.c.v below. ii. Final Awards of Costs that do not exceed seventy-five thousand dollars ($75,000.00) will be paid next in priority after the Special Master’s approved invoices.
iii. Final Awards of Costs in excess of seventy-five thousand dollars ($75,000.00) will be paid proportionally from the funds remaining in that year’s Annual Payment. iv. Any claim for Costs that is not paid in full will be allocated against the next year’s distribution from the CA Subdivision Fund, until all approved claims for Costs are paid in full.
v. In no event will more than 50% of the total CA Subdivision Fund received in any year be used to pay Costs or the Special Master’s approved invoices. vi. In no event shall more than $28 million of the total CA Subdivision Funds paid pursuant to the Teva Settlement Agreement, Allergan Settlement Agreement, Distributor Settlement Agreement, CVS Settlement Agreement, Janssen Settlement Agreement, Walgreens Settlement Agreement, and the Walmart Settlement Agreement be used to pay Costs.
d) Collateral Source Payments and Third-Party Settlement. i. In the event a Plaintiff Subdivision is awarded compensation, in whole or in part, by any source of funds created as a result of litigation against an Opioid Defendant for its reasonable Costs, it will reduce its claim for Costs from the CA Subdivision Fund by that amount. If a Plaintiff Subdivision has already received a final award of Costs from the CA Subdivision Fund, it will repay the fund up to the prior award DocuSign Envelope ID: 3CD9F679-6B77-46D5-9A87-D10ED0D68C74