Agenda packet — South Lake Tahoe City Council, September 23, 2025 (part 1 of 3)

City Council
Tamara Wallace, Mayor
Cody Bass, Mayor Pro Tem
Scott Robbins, Councilmember
David Jinkens, Councilmember
Keith Roberts, Councilmember
Mission of the City Council
We provide responsive and effective local
government by maintaining a safe, livable, and
well-managed city through smart investment,
reliable services, and thoughtful planning.

City of South Lake Tahoe
City Council
Meeting Agenda
Tuesday, September 23, 2025 at 5:30 pm
City Hall - Council Chambers - 1901 Lisa Maloff Way, South Lake Tahoe Public Participation
City Council meetings are held in person at the time and location listed on this agenda. Meetings are live-streamed on Channel 21, City website at www.cityofslt.us, YouTube at https://www.youtube.com/channel/UC3LYne8Ih-kTPLnnuyJW9SQ/live and via ZOOM at this link https://us02web.zoom.us/j/87490014912
A public agenda packet is available for review at City Hall, 1901 Lisa Maloff Way, on the City’s Website at www.cityofslt.us, or by contacting the City Clerk's Office, (530) 542-6005 or [email protected] Providing Public Comment:

In Person: Every agenda for regular meetings provides an opportunity for members of the public to directly address the legislative body (City Council), on any item of public interest which is within the jurisdiction of the City Council during Public Communications. For items on the agenda or in connection with any item which the City Council will consider, the public is given the opportunity to comment before or during the City Council's consideration of the item [Government Code Section 54954.3(a)].

Remote Participation: If you are joining the meeting via ZOOM and would like to make a comment, press the "raise a hand" button. If you are joining the meeting via Channel 21 or live stream and would like to make a comment, please call (530) 542-6500. The Webinar ID is: 874 9001 4912. Press *9 to indicate a desire to make a comment. Press *6 to unmute your phone. The Clerk will call you by the last three digits of your phone number when it is your turn to speak. Note: The Mayor reserves the right to conduct the meeting with in-person public participation only, if there is a technology malfunction that precludes the use of remote public participation.

In Writing: Written comments received by 3 p.m. the day before the meeting will be distributed to City Council prior to the meeting. Written public comment regarding any item on this agenda may be sent to [email protected]. When emailing comments, identify the agenda item number in the subject line to which your comments relate. Any such comment that is a public record and is emailed to 1 1. Proclamation Recognizing October 5-11, 2025, as "Fire Prevention Week"

2. Presentations from the Tahoe Regional Planning Agency (TRPA) on Tahoe Living (Housing) Strategic Priority and Transportation Mobility Mitigation Fee [email protected] or otherwise provided to a majority of the City Council before the meeting will be made available for public inspection during normal business hours at the City Clerk's Office located at City Hall, 1901 Lisa Maloff Way, South Lake Tahoe [Government Code Section 54957.5(b)]. Written comments will not be read out loud during the meeting.

The City Council Chambers meeting facility is accessible to people with disabilities. Every reasonable effort will be made to accommodate any person needing special assistance to attend this meeting.

Contact the City Clerk at (530) 542-6005 at least 48 hours in advance of the meeting for assistance [28 CFR 35.102.35.104 ADA Title II and Brown Act Government Code Sections 54953.2, 54954.1, 54954.2, and 54957.5].

Spanish Interpretations: The public may access Spanish interpretation using the ZOOM link listed on the front of the Agenda from an internet device (smartphone, laptop, tablet, home computer) with audio capabilities and selecting the Spanish language option. Persons without an internet device may attend the meeting in-person and a device will be provided while supplies last. Requests for interpreter services to offer public comment may be made by contacting the City Clerk.

Land Acknowledgement
Land Acknowledgement - The City of South Lake Tahoe acknowledges the lands we occupy today are the lands and home of the Wašíšiw, the people from here known today as the Washoe Tribe of Nevada and California, a sovereign nation. Since the beginning of time and for thousands of years before the arrival of any other people, the Washoe lived here and cared for this place, with values and intention that we can all learn from. On behalf of the City Council, I would like to acknowledge, thank, and honor the Indigenous Washoe Tribal Communities that are the past, present, and future stewards of the Lake Tahoe Basin.

Call to Order/Pledge of Allegiance
Roll Call
Closed Session Report
Proclamation
Requested Action / Suggested Motions: Issue a Proclamation to the City Fire Department recognizing October 5-11, 2025, as "Fire Prevention Week".

Responsible Staff Member(s): Susan Blankenship, City Clerk Item 1- Executive Summary.pdf
Proclamation Recognizing Oct 5-11 as Fire Prevention Week.pdf Public Communications
This is the public's opportunity to speak on any topic NOT LISTED on this agenda. Comments shall be limited to four (4) minutes. In accordance with the Brown Act, the City Council cannot deliberate or vote on any matter raised under public communications, but may briefly respond to statements made or questions posed. (Government Code Sections 54954.2)
Presentations
Requested Action / Suggested Motions: Receive presentations from TRPA staff on Tahoe Living Strategic Priority and the Transportation Mobility Mitigation Fee, and Pass a Motion providing policy recommendations to the TRPA Governing Board.

Responsible Staff Member(s): Joseph D. Irvin, City Manager Item 2- Executive Summary.pdf
2 3. City Council Meeting Minutes

4. Bellamy Parking Garage PARCS-APGS system - Ratification of Contract Change Orders 1-6 with Ample Electric

5. Update Organizational Authorized Agent for California Office of Emergency Services (Cal OES) Law Enforcement Specialized Unit Grant

6. Purchase of Two Parking Ambassador Vehicles from Champion Chevrolet and Related Equipment from Lehr
01 - Staff Report _ TRPA Tahoe Living and Transportation Strategic Priorities Presentation.pdf 02 - South Lake Tahoe- TLWG and Transportation Strategic Priorities (9.23.25).pdf City Commission Reports
Consent Agenda
Public Comment - This is the public's opportunity to speak on any topic listed on the Consent Agenda.

Comments shall be limited to three (3) minutes per item and six (6) minutes total per speaker.

The consent agenda consists of items of a repeating or routine nature considered under a single action.

Any Councilmember may have an item on the consent agenda removed and considered separately upon request.

Pass a Motion to adopt the Consent Agenda in one motion except as indicated at each item.

Requested Action / Suggested Motions: Pass a Motion approving the minutes from the September 9, 2025, City Council meeting.

Responsible Staff Member(s): Michelle Davis, Assistant City Clerk Item 3- Executive Summary.pdf
09 09 2025 City Council Meeting Minutes.pdf
Requested Action / Suggested Motions:

Pass a Motion ratifying six Bellamy Parking Garage Improvements Phase II Contract Change Orders in the amount of $21,912.97 (within the approved 10% contingency), for a total Contract value of $340,953.24.

CEQA Determination: This action is categorically exempt under CEQA Guidelines 15301 (Existing Facilities).

Responsible Staff Member(s): Jeff Roberson, Chief of Police Item 4- Executive Summary.pdf
01-Staff Report - Bellamy Parking Garage- Insight Inc.docx 02-Ample Electric CCO One.pdf
03-Ample Electric CCO Two.pdf
04-Ample_Electric_CCO_Three.pdf
05-Ample_Electric_CCO_Four.pdf
06_-_Ample_Electric_CCO_Five.pdf
07-Ample_Electric_CCO_Six.pdf
Requested Action / Suggested Motions: Pass a Resolution updating Organizational Authorized Agent to The Chief of Police as the authorized signatory for the City of South Lake Tahoe for the current and future Law Enforcement Specialized Unit Grant Subawards related to domestic violence through the California Office of Emergency Services (CalOES).

Responsible Staff Member(s): Jeff Roberson, Chief of Police Item 5- Executive Summary.pdf
01-Staff Report - Cal OES Grant Ratification change of authority.docx 02-Resolution-Update Organizational Authorized Agent for CalOES Law Enforcement Specialized Unit Grant .docx
3 7. Participation in National Opioid Litigation Settlements with Purdue and Secondary Manufacturers and Appropriation of Settlement Funds

8. Agreement with CDM Smith, Inc. for US 50/89 Multimodal Mainstreet Corridor Plan

9. Agreement with Engineering Solution Services for Grant Identification and Writing Services

10. Amendment No. 2 to Agreement with Trella Tahoe, Inc. for Snow Removal Operations Requested Action / Suggested Motions: Pass a Motion authorizing the purchase of two 2025 Chevrolet Silverado 4WD pickups from Champion Chevrolet, and authorizing purchase of related equipment through cooperative purchasing from a Placer County contract with Lehr per South Lake Tahoe City Code section 3.45.090, using existing budget appropriations up to $85,826.16.

Responsible Staff Member(s): Lt. Scott Crivelli
Item 6- Executive Summary.pdf
01-_Staff_Report_Parking_Ambassador_Vehicle_Purchase.docx 02 - Colorado Spec.pdf
03 - Planet Bid Summary Colorado.pdf
04 - 55589 Lehr Sales Quote - PA Truck upfitting.pdf
05 - Placer County Contract with Lehr.pdf
Requested Action / Suggested Motions: Pass a Resolution Approving Participation in National Opioid Litigation Settlement with Purdue and the Sackler Family, and Litigation Settlements with Secondary Opioid Manufacturers Alvogen, Amneal, Apotex, Hikma, Indivior, Mylan, Sun and Zydus, and Accepting and Appropriating Settlement Funds
Responsible Staff Member(s): Mark Avila, Paralegal
Item 7- Executive Summary.pdf
01-Staff Report- Opioid Settlement Purdue Sackler.docx
02-Resolution.docx
03 - Settlement Agreement with Purdue and the Sackler Family. (Exh. A to Reso)pdf 04- Settlement Agreement with Secondary Manufacturers (Exh. B to Reso).pdf C-239-2023_Reimbursement_Agreement_with_Barton_Health.pdf Requested Action / Suggested Motions: Pass a Motion authorizing and directing the Mayor to execute the agreement with CDM Smith, Inc. for architectural and engineering services to develop the US 50/89 Multimodal Mainstreet Corridor Plan for a not to exceed amount of $474,946.27.

CEQA Determination: This action is statutorily exempt under CEQA Guidelines section 15262 (Feasibility and Planning Studies).

Responsible Staff Member(s): Hilary Roverud, Assistant City Manager and Emily Dougherty, Associate Transportation Planner
Item 8- Executive Summary.pdf
01-Staff Report US 5089 Corridor Plan.docx
02-Agreement with CDM Smith.pdf
Requested Action / Suggested Motions: Pass a Motion authorizing and directing the Mayor to execute the Professional Services Agreement with Engineering Solution Services for Grant Identification and Writing Services for a not to exceed amount of $95,000.

CEQA Determination: This action is statutorily exempt under the California Environmental Quality Act (â€œCEQAâ€) under CEQA Guidelines section 15262 (Feasibility and Planning Studies).

Responsible Staff Member(s): John Dickinson, Interim Public Works Director Item 9- Executive Summary.pdf
01-Staff Report - Grant Writing Servcies.docx
02-PSA - Grant Writing Services - ESS.pdf
Requested Action / Suggested Motions: Pass a Motion authorizing and directing the Mayor to execute Amendment No. 2 to Agreement with Trella Tahoe, Inc. for snow removal services at the Airport, Fire Department, Police Department, Fire Rescue Facility, and sidewalks not maintained by City Park forces, plus on-call service as needed for a term of November 1, 2025 to April 30, 2026 in an amount not to exceed $441,916.00.
4 11. Amendment No. 2 to Agreement with Building Services of CA and NV, LLC, for Custodial Services for Bellamy Garage and City Hall/Airport Terminal

12. Professional Service Agreement with CREDE Construction Advisory, LLC for On-call Labor Compliance Specialist Services

13. Professional Service Agreement with Eastern Sierra Engineering for On-call Inspection and Materials Testing

14. Medical Insurance Side Letters with Police Officers' Association, Police Employees’ Association, Police Supervisors' Committee, Firefighters’ Association, Local 39 Administrative and Confidential, Local 39 General & Public Works, and Unrepresented Employees CEQA Determination: The action is categorically exempt from review under CEQA Guidelines section 15301 (Existing Facilities).

Responsible Staff Member(s): Milan Jevic, Interim Airport Manager and John Dickinson, Interim Public Works Director, Joe Irvin City Manager
Item 10- Executive Summary.pdf
01-Staff Report-Amendment to Agreement with Trella Tahoe.docx 02-Amendment No. 2 to Agreement with Trella Tahoe Inc..docx 04-C-180-2023 Trella Tahoe - signed.pdf
C-230-2024_Trella_Tahoe_Amendment_1.pdf
Requested Action / Suggested Motions: Pass a Motion authorizing and directing the Mayor to execute Amendment No. 2 to Agreement with Building Services of CA and NV, LLC (dba Sunwest), for Custodial Services for Bellamy Garage and City Hall/Airport Terminal, extending the Agreement for one year for an amount not to exceed $111,772.00, including $5,000.00 contingency.

Responsible Staff Member(s): Milan Jevic, Interim Airport Manager Item 11- Executive Summary.pdf
01-Staff Report-Amendment No. 2 to Agreement for Custodial Services.docx 02 - Amendment No. 02 to PSA 2025-2026.docx
03-C-231-2024 Sunwest Amendment #1.pdf
04-C-224-2023 Custodial Services Agreement for Bellamy Garage and City Hall.pdf Requested Action / Suggested Motions: Pass a Motion authorizing and directing the Mayor to execute the Professional Services Agreement with CREDE Construction Advisory, LLC for on-call labor compliance consulting services for a not to exceed amount of $400,000.

Responsible Staff Member(s): Lilian Iverson, Engineering Technician Item 12- Executive Summary.pdf
01 Staff Report - Labor Compliance Specialist.docx
02 Labor Compliance PSA.pdf
Requested Action / Suggested Motions: Pass a Motion authorizing and directing the Mayor to execute the Professional Services Agreement with Eastern Sierra Engineering for on-call materials testing and inspection services in an amount not to exceed $400,000.

Responsible Staff Member(s): Lilian Iverson, Engineering Technician Item 13- Executive Summary.pdf
01 Staff Report - Materials Testing.docx
02 Materials Testing PSA.pdf
Requested Action / Suggested Motions: (1) Pass a Resolution authorizing and directing the Mayor to execute Side Letters to the Memoranda of Understanding with the Police Officers' Association, Police Employees' Association, Police Supervisors' Committee, Firefighters' Association, Local 39 Administrative and Confidential, Local 39 General & Public Works; and (2) Pass a Resolution approving amendment to 2023-2026 Unrepresented Employees Compensation and Benefit Package.

Responsible Staff Member(s): Joseph D. Irvin
Item 14- Executive Summary.pdf
01 - Staff Report _ Medical Benefits Side Letters 09.23.2025.docx 5 15. Funding Agreement with the South Shore Transportation Management Association

16. Policy Regarding Disposition of Tahoe Regional Planning Agency (TRPA) Development Commodities Owned by the City of South Lake Tahoe

17. Grow and Diversify the Economy - Strategic Plan Priority Update

18. Consideration of Paving Priority – James & Eloise Neighborhood vs. Johnson Boulevard 02-Resolution-Compensation and Benefits Unrepresented Employees Including Elected City Clerk.docx
03- Exhibit 1 to Resolution re Unrepresented Employees.dox.pdf 04-Exhibit 2 to Resolution re Unrepresented Employees.docx 05-Resolution-Compensation and Benefits Bargaining Groups.docx 06-Exhibit A - PEA.pdf
07 - Exhibit B - POA.pdf
08 - Exhibit C - PSA.pdf
09 - Exhibit D - Local 39 Admin and Confidential.pdf
10 - Exhibit E - Local 39 General and Public Works.pdf
11 - Exhibit F - Firefighters' Association.pdf
Regular-Unfinished Business
Requested Action / Suggested Motions: Pass a Motion authorizing and directing the Mayor to execute a Funding Agreement with the South Shore Transportation Management Association (SS/TMA) for an amount of $650,000 (Fiscal Year 25/26, October 1, 2025 - September 30, 2026) for the operation of microtransit service.

Responsible Staff Member(s): Hilary Roverud, Assistant City Manager Item 15- Executive Summary.pdf
01-Staff Report - SSTMA Funding Agreement 2025.docx
02-Lake Link Ridership August 2024-July 2025.pdf
03- C-024-2023 Agreement with SSTMA + Amendment 1 & 2
04 - SSTMA Funding agreement 2025.docx
Requested Action / Suggested Motions: Pass a Resolution amending the policy regarding disposition of Tahoe Regional Planning Agency (TRPA) development commodities owned by the City of South Lake Tahoe to modify disposition to commercial/industrial projects.

Responsible Staff Member(s): John Hitchcock, Planning Manager Item 16- Executive Summary.pdf
01-Staff Report - Development Commodities.docx
02-Res 2023-051 TRPA Development Commodities.pdf
03-Resolution-Disposition of Development Rights (Redline).pdf 04-Resolution-Disposition of Development Rights.docx
Requested Action / Suggested Motions: Pass a Motion directing staff to continue business outreach efforts, initiate the General Plan Economic Development Update process, continue efforts to reduce regulatory barriers to business investment, develop industry social media campaigns, and explore options to fund a facade/property improvement grant program and/or pre-development loan program.

Responsible Staff Member(s): Hilary Roverud, Assistant City Manager Item 17- Executive Summary.pdf
01-Staff Report
02- General Plan Economic Development Element
03-Economic Development Presentation
Regular-New Business
Requested Action / Suggested Motions: Pass a Motion either prioritizing paving in James and Eloise Neighborhood or Johnson Blvd temporary overlay.
6 19. Agenda Planning Calendar
CEQA Determination: This action is categorically exempt under CEQA Guidelines section 15301 (Existing Facilities).

Responsible Staff Member(s): Stephen Anderjack, Project Manager Item 18- Executive Summary.pdf
01-Staff_Report - Road Rehab.docx
02 - 2026 Presentation.pptx
Agenda Planning Calendar
Requested Action / Suggested Motions: Identify, with consent of at least two Council Members, any desired future agenda items, and/or modify the Agenda Planning Calendar as desired.

Responsible Staff Member(s): Susan Blankenship, City Clerk, and Joseph Irvin, City Manager Item 19- Executive Summary.pdf
APC 09 18 2025.pdf
Updates and Announcements (City Attorney, City Clerk, City Manager) Councilmember Reports and Comments - Assignments to Boards, Committees, and Commissions
Adjournment
I, Susan Blankenship, City Clerk for the City of South Lake Tahoe, declare that the foregoing agenda for the Tuesday September 23, 2025, City Council meeting was posted and available for review on Thursday September 18, 2025, at City Hall, 1901 Lisa Maloff Way, South Lake Tahoe, CA 96150. The agenda was also available on the City's website at https://www.cityofslt.us.

Signed September 18, 2025
\\sb\\ Susan Blankenship, Elected City Clerk
7 City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: September 23,
2025
Agenda Item #:1
Agenda Item: Proclamation Recognizing October 5-11, 2025, as "Fire Prevention Week" Executive Summary: At their September 9, 2025, meeting, Council provided consensus to bring this Proclamation forward.

Requested Action / Suggested Motions: Issue a Proclamation to the City Fire Department recognizing October 5-11, 2025, as "Fire Prevention Week".

Responsible Staff Member: Susan Blankenship, City Clerk Reviewed and Approved By: Susan Blankenship, City Clerk Attachments:

Proclamation Recognizing Oct 5-11 as Fire Prevention Week.pdf 8 The City of South Lake Tahoe
Proclamation
Recognizing October 5-11, 2025, as
“Fire Prevention Week”
“Charge into Fire Safety: Lithium-Ion Batteries in Your Home.” Whereas, the City of South Lake Tahoe is committed to ensuring the safety and security of all those living in and visiting our city; and
Whereas, fire is a serious public safety concern both locally and nationally, and homes are the locations where people are at greatest risk from fire; and Whereas, home fires killed more than 3,600 people in the United States in 2023, according to the US Fire Administration (FEMA) and fire departments in the United States responded to 344,600 home fires; and
Whereas, this year’s focus on lithium-ion batteries works to better educate the public about how to buy, charge, and dispose of them safely; and
Whereas, most of the electronics in our homes — smartphones, tablets, power and lawn tools, laptops, e-cigarettes, headphones, e-scooters and e-bikes — are powered by lithium-ion batteries.

If not used correctly or damaged, they can overheat and start a fire or explode. The NPFA website nfpa.org “Charge into Fire Safety: Lithium-Ion Batteries in Your Home” provides the information, guidance, and resources needed to use lithium-ion batteries with caution and care; and Whereas, South Lake Tahoe’s first responders are dedicated to reducing the occurrence of home fires and home fire injuries through prevention and protection education; and Whereas, South Lake Tahoe’s residents are responsive to public education measures and are able to take personal steps to increase their safety from fire, especially in their homes; and Whereas, the 2025 Fire Prevention Week theme, “Charge into Fire Safety; Lithium-Ion Batteries in Your Home” effectively serves to remind us to stay alert and use caution when using and charging Lithium-Ion batteries to reduce the risk of home fires.

Now Therefore, the City Council of the City of South Lake Tahoe does hereby proclaim October 5–11, 2025, as “Fire Prevention Week.” We urge everyone in South Lake Tahoe to use safe LithiumIon battery charging practices during Fire Prevention Week 2025, and to support the many public safety activities and efforts of South Lake Tahoe Fire Rescue. _____________________ __________________________
Tamara Wallce, Mayor Susan Blankenship, City Clerk
9 City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: September 23,
2025
Agenda Item #:2
Agenda Item: Presentations from the Tahoe Regional Planning Agency (TRPA) on Tahoe Living (Housing) Strategic Priority and Transportation Mobility Mitigation Fee Executive Summary: At its meeting on August 12, 2025, Councilmember Robbins (seconded by Mayor Pro Tem Bass) requested that staff reach out to the TRPA staff to request that a presentation on the Growth Management System Briefing Book and the Transportation, Mobility Mitigation Fee (MMF) be placed on a future Council agenda; therefore allowing the City Council the opportunity to provide policy recommendations for the TRPA Governing Board to consider as part of their decision making process on these topics. The Growth Management Systems Briefing Book is available on the TRPA website at this link: https://www.trpa.gov/wp-content/uploads/Growth-Management-System-Briefing-Book-May2025.pdf. As of Jan. 21, 2025, the TRPA's Mobility Mitigation Fee is set at the following amounts:

Mobility Mitigation Fee Per Average Daily Vehicle Miles Travelled (VMT) Residential $207.13 per VMT Commercial $23.01 per VMT Tourist Accommodation Unit $207.13 per VMT Campsites & RV sites $207.13 per VMT Other $23.01 per VMT The Mobility Mitigation Fee Update Policy Paper is available on the TRPA website at this link: https://www.trpa.gov/wp-content/uploads/Attachment-A-Policy-Paper.pdf.

TRPA staff will provide presentations to the City Council and the Council as a body will consider what, if any recommendations and/or suggestions they would like the TRPA Governing Board to consider in their decision making process.

Requested Action / Suggested Motions: Receive presentations from TRPA staff on Tahoe Living Strategic Priority and the Transportation Mobility Mitigation Fee, and Pass a Motion providing policy recommendations to the TRPA Governing Board.

Responsible Staff Member: Joseph D. Irvin, City Manager Reviewed and Approved By: Susan Blankenship, City Clerk Olga Tikhomirova, Director of Finance Heather Stroud, City Attorney
Attachments:
01 - Staff Report _ TRPA Tahoe Living and Transportation Strategic Priorities Presentation.pdf 02 - South Lake Tahoe- TLWG and Transportation Strategic Priorities (9.23.25).pdf 10 STAFF REPORT ATTACHMENT
Date: September 11, 2025
To: South Lake Tahoe City Council and City Manager
From: TRPA Staff
Subject: Presentations from TRPA on Tahoe Living (Housing) and Transportation Strategic Priorities Summary and Staff Recommendation:

This is an informational item only.

Background:

The Tahoe Regional Planning Agency (TRPA) Governing Board updates its strategic priorities, work plan, and budget annually. The City of South Lake Tahoe requested a presentation from TRPA staff related to two strategic priorities:

1. Cultivating Community, Conserving the Basin (Cultivating Community) - Cultivating Community is the latest phase of the Tahoe Living Strategic Priority (Tahoe Living), a long-term initiative approved by the TRPA Governing Board to adapt TRPA policies and regulations to support local housing in the basin and help achieve environmental goals. The first phase of Tahoe Living was completed in 2021, allowing accessory dwelling units on residential parcels of less than one acre, and grandfathering existing densities during the conversion of motel units into residences.

The second phase, completed in 2023, created zoning standards to incentivize the construction of new deed-restricted affordable, moderate, and achievable housing. The third phase, called Cultivating Community, Conserving the Basin (Cultivating Community) aims to increase housing accessibility and prevent displacement of residents by adapting TRPA’s development rights and fees system to better serve the needs of local workers, families, and seniors.

2. Transportation, Mobility Mitigation Fee (MMF) Update – The Transportation Strategic Priority focuses on improving the quality of Tahoe’s transportation system. Part of the priority includes the review of the transportation project impact assessment process and the mobility mitigation fee. The MMF provides both a standardized process to mitigate the impacts of development as required by Article VII of the TRPA Compact and serves as a funding mechanism for the projects that are part of the regional transportation plan that TRPA updates every four years as the federal and state designated Metropolitan Planning Organization for transportation planning.

TRPA staff will provide more detailed context and the status of these two priorities, as well as the role of the City of South Lake Tahoe in the process.

Contact Information:

For questions regarding this item, please contact John Hester, TRPA Chief Operating Officer, at (775) 589-5219 or [email protected].
11 1
John B. Hester, AICP
Chief Operating Officer
September 23, 2025
Tahoe Living and Transportation
Strategic Priorities
Presentation to South Lake Tahoe City Council
12 2
TRPA Mandates and Operations
13 3
Threshold
Evaluation
Budget and
Staffing
TRPA Board
Strategic
Planning
Retreat
Work Plan Development
14 4
TRPA Mission
and Vision
Forest Health
and Wildfire
Lake and
Watershed
Restoration
Tahoe Living
(Housing)
Transportation
Strategic Priorities

TRPA MISSION & VISION
Our mission is to cooperatively lead the effort to
preserve, restore, and enhance the unique natural
and human environment of the Lake Tahoe Region,
while improving local communities, and people’s
interactions with our irreplaceable environment.

Our vision is for a Lake environment that is
sustainable, healthy, and safe for the community
and future generations.
15 5
2021: ADUs on smaller
lots and non-residential
density conversions
2023: Height, density,
coverage, and parking
changes for deed
restricted units
Now: Cultivating
Community, Conserving
the Basin
Tahoe Living Strategic Priority
16 6
Cultivating Community Overview
6 YOU
ARE
HERE
17 7
Scaled Development Rights – use square footage as the metric for residential development rights vs. number of units or direct exemptions for workforce housing Scaled Fees – variable fee structure based on size, value, number of bedrooms, and impact
Performance Based System – allow flexibility to use stormwater management methods other than coverage to meet thresholds
ADU Exemptions – exempt units under 750 square feet from from development right and land coverage requirements
Other – housing authority, local planning standards, multi-family in single family zones, stormwater system incentives, TAUs for STRs, no net loss policy, renovation and rehabilitation incentives
Cultivating Community Policy Packages
18 8
Joint TLWG /
CPG Meeting
(Sept 22, 2025)
Community
Meetings (Oct
6 and 7, 2025)
Governing
Board
(Nov 19, 2025)
APC Meeting
(Dec 12, 2025)
Governing
Board
(Jan 28, 2026)
8 Explore, Define, and Test Phase:

Develop and Review Recommendations
Confirm
Recommendations
and Initiate
Environmental
Impact Statement
City Government Representation
Cultivating Community Next Steps
City Participation Representation
19 9
Transportation Strategic Priority Tasks
Regional/interregional transit services
Mobility Mitigation Fee (MMF) update
Transportation Systems Management and Operations (a.k.a. ITS) Transportation Resiliency Improvement Plan and emergency transportation communications plan Regional parking
Transportation Biennial Performance Report
Sustainable recreation coordination
20 10
Regional Transportation Plan Funding
10 41%
1%
34%
24%
4%
Local Local - MMF Federal State Private
• RTP required to have projects to
meet air quality and vehicle
miles traveled standards with
funding sources
• Local contribution is 42% of
total
• MMF contribution is 3.5% of
local (1% of total)
21 11 11
Mobility Mitigation Fee
Program Purpose
• RTP funding source
• Mitigates environmental
impacts of development
• Based on nexus and
proportional impact
• Funds distributed for
shovel-ready RTP
mitigation projects
22 12 12
Mitigation Fund Process
Projects pay fees as part
of the project permitting
process.

Project Applicant
pays fees
Fees allocated into respective mitigation
(Water Quality, Mobility Mitigation, Excess
Coverage Mitigation, etc.) accounts.

TRPA deposits fees into
Mitigation Fund accounts
Local jurisdictions/State lands organizations
submit requests for eligible shovel-ready
projects.

RTP Projects
Implemented
Funds disbursed – on the
ground environmental benefits
and RTP implementation.

Jurisdiction submits funding
request for review/approval
23 13
Example Mitigation Fee Funded Project
City of South Lake Tahoe
Tahoe Valley Greenbelt &
Stormwater Improvement
24 14 14
Year EIP # Project Fund Amount
2019 01.01.01.0005 US Hwy 50 WQIP – “Y” to Trout Creek AQ $50,000.00 2020 03.02.02.0090 Emerald Bay McDonald's Bike Trail AQ $35,000.00 2021 01.01.02.0022 Elgin Street Sweeper Purchase AQ $75,000.00 2022 01.01.01.0033 Tahoe Valley Greenbelt & Stormwater Improvement AQ $200,000.00 2024 03.02.02.0092 Bijou Park Class I Bike Trail - Greenway Connector AQ $183,518.31 2024 03.02.02.0092 Bijou Park Class I Bike Trail - Greenway Connector MMF $216,481.69 2024 01.01.01.0217 2 x Xbroom Street Sweeper Purchase (CARB UPGRADE) AQ $54,685.35 2024 03.02.02.0078 Pioneer Trail Pedestrian Project - Phase II AQI $46,000.00 CSLT 2019-2025 AQ/MMF Approved Mitigation Fund Releases 25 15
Single Family Home 5K Square Foot Restaurant

OUT OF BASIN
Placer Tahoe (east of crest, not basin) $3,728 $65,497
Placer East $4,378 $71,755
Placer Foresthill $6,331 $53,972
RTC Washoe – South $5,428 $39,240
RTC Washoe – North $5,929 $42,852
Truckee $9,100 $143,500
El Dorado - Zone A (rural) $13,364 $14,200
El Dorado - Zone B (Diamond Springs to Cameron Park) $28,622 $53,550 El Dorado - Zone C (El Dorado Hills) $37,467 $65,700

IN BASIN
(JURISDICTION AVERAGE)
TRPA
MMF
Local TOTAL TRPA
MMF
Local TOTAL
Douglas $7,198 0 $7,198 $63,678 0 $63,678
El Dorado $9,877 0 $9,877 $76,350 0 $76,350
Placer $8,060 $2,949 $11,009 $68,577 $51,808 $120,385
SLT $5,146 0 $5,146 $41,260 0 $41,260
Washoe $6,706 0 $6,706 $54,265 0 $54,265
15 Comparison to Similar Fee Systems
26 16 16
MMF Update and Process
Potential Update Topics
• Zones
• Credit Period
• Screening
Process
• Transportation Committee
• Advisory Planning Commission
• Regional Planning Committee
• Governing Board
27 17
Thank You
28 City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: September 23,
2025
Agenda Item #:3
Agenda Item: City Council Meeting Minutes
Executive Summary: City Council are asked to formally approve the Minutes of the September 9, 2025, meeting.

Requested Action / Suggested Motions: Pass a Motion approving the minutes from the September 9, 2025, City Council meeting.

Responsible Staff Member: Michelle Davis, Assistant City Clerk Reviewed and Approved By: Susan Blankenship, City Clerk Attachments:
09 09 2025 City Council Meeting Minutes.pdf
29 City of South Lake Tahoe
City Council Meeting Minutes
Tuesday, September 9, 2025, at 9:00 a.m.

City Hall - Council Chambers – 1901 Lisa Maloff Way, South Lake Tahoe NOTE: The Meeting Minutes represent actions taken during the meeting of the City Council.

Complete Council member discussions on Regular Session meeting items can be viewed in archived video recordings on the City’s website at http://www.cityofslt.us Public submittals on items are retained in the administrative record and can be viewed in the City Clerk’s repository at http://www.cityofslt.us
Land Acknowledgement
Mayor Wallace read the Washoe Tribe of Nevada and California Land Acknowledgement.

Call to Order/Pledge of Allegiance
Mayor Wallace called the meeting to order at 9:06 a.m., then led the pledge of allegiance.

Roll Call
Present were Mayor Wallace, Mayor Pro Tem Bass, and Councilmembers Robbins, Jinkens and Roberts.

Also present were City Manager Irvin, City Attorney Stroud, and City Clerk Blankenship.

Closed Session Update from the August 12, 2025 Meeting

1. Conference with Legal Counsel – Existing Litigation – Government Code section 54956.9(d)(1) Kyle Printz v. City of South Lake Tahoe, Workers’ Compensation Appeals Board Case Nos. ADJ16686341 and ADJ18748809.

Action: This case was settled by compromise and release for the amount of $165,000.

Proclamations

1. Proclamation Recognizing September 17-23 as "Constitution Week" Action: Issued a Proclamation to Jini Becktell, Regent, Daughters of the American Revolution, recognizing September 17-23 as "Constitution Week" Written Public Comment was received from the following person:

1. Scott Loberg
30 2. Proclamation Recognizing September 2025 as "Suicide Prevention Month and Recovery Month"
Action: Issued a Proclamation to Reverend Nathan Wheeler, and Angie Reagan of Access Tahoe recognizing September 2025 as "Suicide Prevention Month and Recovery Month"
Written Public Comment was received from the following person:

1. Scott Loberg
Public Communications
General Public Comment was heard from the following people:

1. Ed Mosur- City financial policies, sale of Osgood and Blue Lakes lots, Whole Foods project audit, former IT Manager dismissal.

2. Melissa Soderston- Treatment of bears in the City, Labor Blackout Week, need for support of disabled populations.

City Commission Reports
None.

Consent Agenda
Note: City Clerk Blankenship noted the legal publication dodument added to Item 14.

Action: Moved/Seconded: Bass/Jinkens
Yes: Wallace, Bass, Robbins, Jinkens, Roberts
Action: Passed the consent agenda.

3. South Tahoe Joint Powers Parking Financing Authority and City Council Budget Workshop Meeting Minutes
Action: Passed a Motion 2025-072 approving the minutes from the August 12, 2025, South Tahoe Joint Powers Parking Financing Authority meeting and the August 26, 2025, City Council Budget Workshop meeting.

4. Fiscal Year 2024-25 Quarterly Financial Status Report - Quarter Ending June 2025 Requested Action: Receive and file.

5. Fiscal Year 2025-2026 Investment Policy and Authority Action: Passed Resolution 2025-067 delegating investment authority to the City Treasurer and adopting the City Investment Policy for the fiscal year from October 1, 2025 to September 30, 2026.

6. Investment Portfolio Report - June 30, 2025
Action: Receive and file.

7. Agreement with Freemotion Fitness, Inc. for Purchase and Installation of Exercise Equipment for New Multigenerational Recreation and Aquatic Center Action: Passed Motion 2025-073 authorizing and directing the Mayor to execute the Professional Services Agreement with Freemotion Fitness, Inc. (C-189-2025) in the amount of $120,021.47 for the purchase, delivery and installation of the exercise equipment for the new Multigenerational Recreation and Aquatic Center.

Written Public Comment was received from the following people:

1. Steve Rose

2. Scott Loberg
31 8. Grant of Temporary Construction Easements to Caltrans Action: Passed Motion 2025-074 authorizing and directing the Mayor to execute Easement Agreements granting temporary construction easements to Caltrans for the U.S. Highway 50 Pavement Preservation Project as follows: Parcel No. 029-470 -016 for $7,000 (C-190-2025); Parcel Nos. 027-081-002 -005 -006, and 029-150-012, -008, and - 009 for $4,000 (C-191-2025); and Parcel No. 027-690-001 for $3,500, (C-192-2025) for a total amount of $14,500 to be paid to the City.

9. Maintenance Agreement with Caltrans for City-Owned Traffic Signals Action: Passed Motion 2025-075 authorizing and directing the Mayor to execute Maintenance Agreement with Caltrans (C-193-2025) to maintain the City traffic signals at Pioneer Trail and Ski Run Blvd., Pioneer Trail and Al Tahoe Blvd., and Al Tahoe Blvd. and Johnson Blvd. for a total cost estimated at $3,000 per year.

10. Accept Donation from South Tahoe Parks Foundation & Award Batting Cages Contract for New Multigenerational Recreation and Aquatics Center Action: Passed Resolution 2025-068: 1) authorizing and directing the Mayor to accept $30,000 in donations from the South Tahoe Parks Foundation into the New Multigenerational Recreation and Aquatic Center FF&E Account; 2) authorizing and directing the Mayor to execute a Professional Services Agreement with Grand Slam Safety (C-195-2025) in the amount of $85,844.67 for the purchase, delivery and installation of the batting cages and other equipment; and 3) authorizing the City Manager to execute the two acknowledgement letters.

11. Ratification of Organizational Authorized Agent Appointment for Cal OES Listos CERT Grant
Action: Passed Resolution 2025-069 Ratifying the Appointment of the Director of Parks and Recreation as the Organizational Authorized Agent and Signatory of the City of South Lake Tahoe for the current CalOES Listos Grant Award# LC23 01 7994, for all Subaward Agreements, Amendments, and all applicable Grant Submittals.

12. Use of General Fund to Cover Facility Rental Fees for Boo Bash Event Action: Passed Resolution 2025-070 authorizing the Use of General Fund to cover facility rental fees for Ever After Productions for the rental of the Gym, Aspen, Cedar and Douglas Rooms to produce the Boo Bash event totaling $5,828.

Written Public Comment was received from the following person:

1. Scott Loberg

13. Reimbursement Agreement with South Tahoe Public Utility District (STPUD) for Bijou 1 Waterline Replacement Repaving
Action: Passed Resolution 2025-071 1) authorizing and directing the Mayor to execute a Reimbursement Agreement with STPUD for Bijou 1 waterline replacement repaving (C-196-2025); 2) accepting $530,000.00 with 25% contingency of $132,500.00 to reimburse the City for the STPUD utility work; and 3) amending the 2026 Road Rehabilitation Project Budget (301-50005-48030).

Written Public Comment was received from the following person:

1. Scott Loberg
32 14. Ordinance Amending South Lake Tahoe City Code to Lower Speed Limits on Sections of Sierra Boulevard (Second Reading)
Action: Passed Ordinance 2025-1201 Amending South Lake Tahoe City Code Chapter 4.25 (Motor Vehicles and Traffic), Article IV (Operation of Vehicles), Sections

4.25.160 and 4.25.170 to Modify the Speed Restrictions on Sierra Boulevard.

15. Reimbursement Agreement with Liberty Utilities for Tahoe Keys Blvd.

Action: Passed Resolution 2025-072 authorizing and directing the Mayor to execute a Reimbursement Agreement with Liberty Utilities (C-197-2025) and accepting $85,905.00 into the Street Overlay Program.

Written Public Comment was received from the following person:

1. Scott Loberg

16. Sustainable Transportation Planning Grant Agreement with the California Department of Transportation (Caltrans) for the Stateline Complete Streets Project
Action: Passed Resolution 2025-073 authorizing the Public Works Director, or designee, to execute all Restricted Grant Agreements and any amendment thereto with the California Department of Transportation, and authorizing the Finance Director to appropriate funding once executed.

Public Comment was heard from the following person:

1. Ed Mosur
Written Public Comment was received from the following person:

1. Scott Loberg

17. South Tahoe Parks Foundation Community Tile Fundraiser Donation Acceptance & Sponsorship Approval
Action: Passed Resolution 2025-074: 1) authorizing and directing the Mayor to accept $34,320 in donations from the South Tahoe Parks Foundation (C-198-2025) into the New Multigenerational Recreation and Aquatic Center Donations Account; 2) authorizing and directing the Mayor to approve the tile sponsorships; and 3) authorizing the City Manager to execute the acknowledgement letter.

18. Hazardous Fuels Reduction Agreement with Acres Forestry Action: Passed Motion 2025-076 authorizing and directing the Mayor to execute the Professional Services Agreement with Acres Forestry (C-199-2025) in an amount not to exceed $398,909.30 for the City of South Lake Tahoe SNPLMA R18 Hazardous Fuels Reduction Project.

19. Agreement with Lake Tahoe Unified School District to Provide School Resource Officer
Action: Passed Resolution 2025-075 authorizing and directing the Mayor to execute the Memorandum of Agreement with the Lake Tahoe Unified School District (LTUSD) (C-200-2025) regarding the operation of the School Resource Officer (SRO) for the 2025-2026 School Year and approve budget for reimbursement from LTUSD to the City in the amount up to $82,484.00.
33 20. Ratification of Subcontractor Addition for the Tahoe Valley Stormwater and Greenbelt Improvement Project, Phase 2
Action: Passed Motion 2025-077 ratifying the addition of a concrete subcontractor (Morgan Concrete) to the construction contract with Herback General Engineering for Phase 2 of the Tahoe Valley Stormwater and Greenbelt Improvement Project, pursuant to Public Contract Code section 4109 and the written finding of public necessity in the staff report.

21. Amendment No. 8 to Agreement with Jordan Knighton Architecture Engineering for Architectural and Engineering Services for the Multigenerational Recreation and Aquatics Center
Action: Passed Motion 2025-078 authorizing and directing the Mayor to execute Amendment No. 8 to the Professional Services Agreement with Jordan Knighton Architecture Engineering (C-201-2025) for an additional $50,000.00 to cover design changes requested by the City for a total not-to-exceed amount of $5,110,303.00, and extending the term until October 2026.

Written Public Comment was heard from the following person:

1. Steve Rose
Regular- New Business

31. Extension of City Manager Employment Agreement
Note: Councilmember Jinkens requested this item to be brought forward after the consent agenda (Council provided consensus).

Action: Moved/ Seconded: Jinkens/Bass
Yes: Wallace, Bass, Robbins, Jinkens, Roberts
Action: Passed Resolution 2025-079 authorizing and directing the Mayor to execute the Amended and Restated City Manager Employment Agreement with Joseph D. Irvin (C-202- 2025), extending the term of his employment for an additional six years, until April 14, 2032.

Public Comment has heard from the following person:

1. Ed Mosur
Regular- Unfinished Business

22. Update on Vacation Home Rental Permitting
Action: Moved/Seconded: Wallace/Jinkens
Yes: Wallace, Bass, Jinkens, Roberts
No: Robbins
Action: Passed Motion 2025-079 directing staff to bring back two possible versions of an ordinance for a first reading that would amend the Vacation Home Rental Ordinance to:
• Version A:
o Remove 150-foot buffer and impose a cap of no more than 1200 VHR permits in residential areas
o Establish a minimum age of 25 to rent a VHR
o Allow attached condominiums to get a VHR permit unless the applicable HOA has rules prohibiting VHRs
o Require advertising platforms to include “family friendly” language for VHRs in residential areas
o Have appeals of permit denials go to an independent hearing officer instead of the Planning Commission
34 o Regulate commercial and recreational areas with rules applicable to Tourist Core Area Plan
• Version B:
o Remove 150-foot buffer but prohibit VHR permit adjacent to any property that already has an adjacent VHR
o All other provisions the same as Version A
Additionally, Council directed staff staff to provide refunds of the application fee to applicants who have been buffered out. Any inspection fees would only be refunded if the City had not already paid the outside inspector. Staff will bring this back for a first reading on October 21, 2025 at 5:30 p.m. If a first reading is held at that time, a second reading would be set for November 4, and the changes would become effective 30 days later, on December 4, 2025. The existing ordinance will remain in place until then.

Public Comment was heard from the following people:

1. Fabian Marino *written comment submitted

2. Scott

3. Lorraine D. Jackson

4. Caleb Fry *written comment submitted

5. Mark Salmon

6. Steve Teshara, Tahoe Chamber

7. Karen Lienert *written public comment submitted

8. Mark Brower *written comment submitted

9. Ed Mosur

10. No name provided

11. John Messina

12. Vince Haghiri

13. Andrew Pierce, Attorney for SLT Property Owners’ Group

14. Heidi Sandborn

15. Davy Chain *written comment submitted

16. Eric Lentz *written comment submitted

17. Duggan Smith

18. Lisa Underwood, Tahoe Keys Resort

19. Melissa Soderston

20. Nicole Ladd

21. Erick Asbury

22. Karen Budell Parsons

23. Peter Popov
Written Public Comment was submitted by the following people:

1. Cristy Roberts

2. Larry Reid

3. Jessica McBride

4. Dylan Hastings, South Tahoe Association of Realtors

5. Lorraine Jackson

6. Allyson Giordano

7. Andres DiGenio

8. Christopher Clare

9. Duane Wallace, South Tahoe Chamber of Commerce
35 23. Cannabis Revenues Grant Program Award Recommendations for 2025 Note: Mayor Pro Tem Bass recused himself from participating on this item due to finanical interest in the industry and left the meeting.

Action: Moved/Seconded: Robbins/Jinkens
Yes: Wallace, Robbins, Jinkens, Roberts
Recused (Absent): Bass
Action: Passed Resolution 2025-076 appropriating an additional allocation of $46,415 of Cannabis Program Revenue toward the 2025 Cannabis Revenue Grant Program for a total amount of $446,415 and approving the grant awards list of projects recommended by the grant application review committee; with additional direction to bring back an agenda item to expand the grant application parameters eliminating the restriction related to cannabis associated harms.

Public Comment was heard from the following people:

1. Jess, Cannablue

2. Alex Gosselin, Cannablue

3. Melissa Soderston

4. Kimberly Peterson, Tahoe Coalition for the Homeless
Regular-New Business

24. Cannabis Tax Rate Discussion
Note: Mayor Pro Tem Bass recused himself from participating on this item due to financial interest in the industry and left the meeting.

Action: Moved/Seconded: Robbins/Jinkens
Yes: Wallace, Robbins, Jinkens, Roberts
Recused (Absent): Bass
Action: Passed Motion 2025-080 directed staff to bring back legislative changes to establish a new cannabis tax rate of 3%, identify the capacity of the current legislation to support a medical cannabis tax rate of 0%, engage with relevant lobbying and outreach organizations to lobby with the State on lowering the State tax rate; and, eliminate the public safety mitigation fee.

Public Comment was heard from the following people:

1. Jess, Cannablue

2. Tamara Allen

3. Jared Benvenuto, Aloha Ice Cream and Tahoe Club Crawl

4. Ed Mosur

5. David Turner, Tahoe Green

6. Tyler Strafford

7. Nick Beach, Cannablue

8. Alex Gosselin, Cannablue

9. Ross Rose

10. Cody Bass, Tahoe Wellness Center

11. Melissa Soderston

12. Jason Desimone

13. Justin Woodcock

14. Maryjane Solarzano, Cannablue

15. Josh Etherington

16. Mariah Ramblas

17. Alex Peace

18. Sarah Winner, Cannablue

19. Adam Kovalchik

20. Sara, Barton nurse
36 25. Grant Applications to Tahoe Regional Planning Agency for Tahoe Metropolitan Planning Organization (TMPO) 2025 Regional Grant Program for Complete Streets Projects
Note: Mayor Pro Tem Bass recused himself from participating on this item due to real property interest and left the meeting.

Action: Moved/Seconded: Robbins/Jinkens
Yes: Wallace, Robbins, Jinkens, Roberts
Recused (Absent): Bass
Action: Passed Resolution 2025-077 authorizing the Public Works Director, or designee, to submit grant application(s) to the TMPO for federal fiscal years 2027 and 2028 for the Stateline Complete Streets Project Design, Engineering, and Environmental Review ($2,700,000 grant requested with $309,690 local match); as well as to execute a letter of support for the Tahoe Transportation District’s request.

Public Comment was heard from the following people:

1. Ed Mosur

2. Jason Burke, Tahoe Transportation District

26. Mid-Town Area Plan Policy Review and Design Standards Discussion Note: Mayor Pro Tem Bass recused himself from participating on this item due to real property interest and left the meeting.

Note: Councilmember Jinkens left the meeting at 4:34 p.m. and did not return.

Action: Moved/Seconded: Wallace/Roberts
Yes: Wallace, Roberts
No: Robbins

Absent: Bass

Absent: Jinkens
Action: Passed Motion 2025-081 providing direction to staff to: 1) bring an item to the Tahoe Regional Planning Agency to increase density on all income levels of housing, including market rate; 2) increasing maximum density of residential development; 3) increasing the height limit to 56 feet; 4) modifying parking requirements and establishing exceptions to a minimum parking requirement; 5) approve of the design standards and priorities that were presented to Council; and 6) confirm the proposed implementation strategies.

Public Comment was heard from the following person:

1. Heather Cade-Bauer

27. Grow and Diversify the Economy Strategic Plan Priority Update Note: City Council provided consensus to move this item to the September 23, 2025, City Council meeting.

28. Policy Regarding Disposition of Tahoe Regional Planning Agency (TRPA) Development Commodities Owned by the City of South Lake Tahoe Note: City Council provided consensus to move this item to the September 23, 2025, City Council meeting.
37 29. Emergency Shelter and Warm Room Discussion
Note: A PowerPoint that was not included in the published agenda packet was distributed to Council and the public.

Action: Moved/Seconded: Bass/Robbins
Yes: Wallace, Bass, Robbins, Roberts

Absent: Jinkens
Action: Passed Motion 2025-082 directing staff to pursue an establishment of a motel voucher program in partnership with local and regional stakeholders.

The following person addressed the Council:

1. Kimberly Peterson, Tahoe Coalition for the Homeless

30. Pay for Success Contract with Tahoe Coalition for the Homeless Action: Moved/Seconded: Robbins/Roberts
Yes: Wallace, Bass, Robbins, Roberts

Absent: Jinkens
Action: 1) Passed Motion 2025-083 authorizing and directing the Mayor to execute Pay for Success Agreement with Tahoe Coalition for the Homeless in an amount not to exceed $40,000; and 2) Passed Resolution 2025-078 Authorizing $40,000 Budget Appropriations from General Fund Undesignated Excess Reserves for the agreement.

Public Comment was heard from the following people:

1. Nicole Zaborsky, Tahoe Coalition for the Homeless

2. Kimberly Peterson, Tahoe Coalition for the Homeless

3. Erick Asbury
Written Public Comment was received from the following person:

1. Marissa Muscat, Tahoe Coalition for the Homeless
Note: Item 31 was taken up after the Consent Agenda.

32. League of California Cities Annual Conference Voting Delegate and Alternate Action: Moved/Seconded: Bass/Roberts
Yes: Wallace, Bass, Robbins, Roberts

Absent: Jinkens
Action: Passed Motion 2025-084 selecting Councilmember Jinkens as the Voting Delegate and Councilmember Robbins as the Alternate for the League of California Cities Annual Conference General Assembly.

Public Comment was heard from the following people:

1. Erick Asbury
Agenda Planning Calendar

33. Agenda Planning Calendar
Action: Received and filed.

Updates and Announcements (City Attorney, City Clerk, City Manager) City Clerk Blankenship

1. Proclamation request from Sallie Ross of the South Lake Tahoe Fire Department for “National Fire Prevention Week” (Council provided consensus) 38 Councilmember Reports and Comments - Assignments to Boards, Committees, and Commissions
Councilmember Roberts

1. Request for a discussion item on the VHR citation process (Wallace seconded). Staff will include this in their report for the next VHR item brought to Council.

2. Request for a discussion item on Council opposition to CA Proposition 50 (Use of Legislative Congressional Redistricting Map Amendment). (Wallace seconded).

Adjournment
Mayor Wallace adjourned the Meeting at 6:10 p.m.

Date:

Tamara Wallace, Mayor
Attest:

Susan Blankenship, City Clerk
The presence of electronic signature certifies that the foregoing is a true and correct copy as approved by the South Lake Tahoe City Council.
39 City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: September 23,
2025
Agenda Item #:4
Agenda Item: Bellamy Parking Garage PARCS-APGS system - Ratification of Contract Change Orders 1-6 with Ample Electric
Executive Summary: City Council is asked to ratify six Contract Change Orders addressing issues that arose during installation of the PARCS-APGS systems,. These contract change orders were executed by the Public Works Director for the 2024 Bellamy Parking Garage Phase II improvements project.

Requested Action / Suggested Motions:

Responsible Staff Member: Jeff Roberson, Chief of Police Reviewed and Approved By: Susan Blankenship, City Clerk Olga Tikhomirova, Director of Finance Heather Stroud, City Attorney
Attachments:
01-Staff Report - Bellamy Parking Garage- Insight Inc.docx 02-Ample Electric CCO One.pdf
03-Ample Electric CCO Two.pdf
04-Ample Electric CCO Three.pdf
06 - Ample Electric CCO Five.pdf
05-Ample Electric CCO Four.pdf
07-Ample Electric CCO Six.pdf
40 STJPPFA report- September 23, 2025 Page 1 of 2
City of South Lake Tahoe
Report to
South Tahoe Joint Powers
Parking Financing Authority
Meeting Date: September 23, 2025
Title: Bellamy Parking garage PARCS-APGS system - Reconciliation of Contract Change Orders No. 1, 2, 3, 4, 5, and 6 with Ample Electric, Inc.

Location: 1 Bellamy Ct, South Lake Tahoe, CA
Responsible Staff Members: Jeff Roberson, Chief of Police

Background: The Bellamy Parking garage function, maintenance, and enforcement is assigned to the Police Department.

On April 5, 2022, the South Tahoe Joint Powers Parking Financing Authority (STJPPFA) entered into an agreement with Walker Consultants to evaluate the City Parking Garage and provide recommendations to upgrade the parking structure, circulation, Parking Revenue, and Access Control System (PARCS), Advance Parking Guidance System (APGS), and addition of 14 Electric Vehicle Charging Stations (EVCS) charging stations and
On November 1, 2022, the STJPPFA amended Walker’s Consultant contract to divide the project into two phases. Phase 1 included structural and circulation upgrades, which were completed in November 2023. Phase 2 consists of PARCS, APGS, and installation of the EVCS equipment.

Phase 2 of the project involves procuring and installing a new Parking Revenue and Access Control System (PARCS), Automated Parking Guidance System (APGS), and electric vehicle charging stations (EVCS). Staff issued Requests for Proposals for EVCS, PARCS, and APGS systems. Blink was selected as the best-qualified vendor for the EVCS system, and Ensight Technologies was chosen as the most qualified PARCS/APGS system vendor. The installation contractor had yet to be identified.

On July 29, 2024, the Public Works Department advertised the Parking Garage Equipment Installation Upgrade Project on the City Planet Bids website. 507 vendors were notified. 8 bidders downloaded the bid documents. The Project bidding period closed on August 28, 2024.

The lowest responsive and responsible bid received for this project was from Ample Electric, Inc., for $319,040.27. The Engineer’s Estimate for this work by Walker is $250,000 to $350,000, which is in line with the bid amount. This resulted in Ample Electric’s contract with the City, C-247-2024.

The demolition and construction period ran from April 14, 2025 to July 31, 2025. 41 STJPPFA report- September 23, 2025 Page 2 of 2
Issue and Discussion: During construction of these systems, the Contractor encountered unforeseen site conditions, delivered equipment disparity, delays not the result of their actions, and additional work requested for best outcomes; none of which had been in the original contract.

Financial Implications: All Contract Change Orders (CCO’s) are listed in Table 1 below:

Table 1 - Contract Change Orders (CCO)
CCO No. CCO Description CCO Amount
1 Ample – Revised Switchgear <$9762.28>
2 Ample – install 14/2 shielded wire 24VDC to APGS $1799.11 3 Ample – amended liquidated damages time frame No cost 4 Ample – replace 400’ of 1” conduit for IT run $16447.70 5 Ample – additional labor for incorrect product delivery (will be charged to Blink) $7559.76 6 Ample – Level bollards and pedestals $5868.68
Total CCO Amount: $21,912.97
With all Contract Change Orders, including credit, no cost, and increases, the total expenses were $340,953.24. This additional $21,912.97 is above the original contract value of $319.040.27, but within the 10% ($31,904.00) contingency approved by the City Council.

No additional funding is being requested for the CCOs that City Council is considering for this reconciliation.

Additionally, the cost for CCO 5 will be recovered in a credit from Blink as the work-time used and billed by Ample was to install a pedestal, shipped by Blink, not designed for the delivered product.

Environmental Considerations: This project is considered roadway rehabilitation and will not extend the boundaries of the existing roadways. As such, the project is exempt from Tahoe Regional Planning Agency (TRPA) permits and the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15301(c) (Existing Facilities). All applicable best management practices will be utilized to protect air and water quality during construction.

Policy Implications: This project supported 2021-2026 Strategic Priority One: Built Environment, subsection 1.4 Transportation, Action item One: Paid parking and enhanced enforcement and Action Item Three: city-wide parking management strategies, from the Strategic Plan from which this project originally was authorized.
42

Page 1 of 2 ends

Public Works Department 1740 D Street, South Lake Tahoe, CA 96150 Bellamy Parking Garage Electrical Upgrade for
EVCS and Parking Technology - Phase 2
PUBLIC WORKS CONTRACT No. PWC 24-52005320-02

CONTRACT CHANGE ORDER
Date: February 10, 2025
Contract Change Order No.: 1 Revise Switch Gear with a Panel To: Ample Electric Inc.

You are hereby directed to make the herein described changes to the plans and specifications or do the following described work not included in the specifications of the contract except as specifically modified by this contract change order (CCO).

Note: This CCO is not effective until approved by the Owner, or until an authorized Field Directive is executed.

This CCO is requested by: City of South Lake Tahoe
CONTRACT CHANGE ORDER AMOUNT: ($9,762.28) (Nine Thousand Seven Hundred SixtyTwo Dollars and 28 cents Credit).

REASON FOR CHANGE: Credit for Revised Gear and Replacement with New Panel.

The following is hereby changed:

Replace the Switch Gear with a Panel. (See Attachment)
COST OF CHANGE: ($9,762.28)
43 February 10, 2025

Page 2 ends

Page 2 of 2 ends

Public Works Department 1740 D Street, South Lake Tahoe, CA 96150 CONTRACT TIME ADJUSTMENT: No Change. This contract change order constitutes full and complete compensation for all labor, equipment, materials, tools, jobsite and home office overhead, profit, all indirect costs and contract time adjustment to perform the above-described change. All other costs are non-compensable.

RECOMMENDED BY: ACCEPTED BY:
________________________ ________________________ ______________ Project Manager, Date Ample Electric, Date Jeff Roberson Jose Diaz, President ________________________ ____________ Anush Nejad, P.E. Date Director of Public Works
44

Page 1 of 2 ends

Public Works Department 1740 D Street, South Lake Tahoe, CA 96150 Bellamy Parking Garage Electrical Upgrade for
EVCS and Parking Technology - Phase 2
PUBLIC WORKS CONTRACT No. PWC 24-52005320-02

CONTRACT CHANGE ORDER
Date: February 10, 2025
Contract Change Order No.: 2 14/2 Shielded Pair of Wire for 24VDC to APGS To: Ample Electric Inc.

Note: This CCO is not effective until approved by the Owner, or until an authorized Field Directive is executed.

This CCO is requested by: City of South Lake Tahoe
CONTRACT CHANGE ORDER AMOUNT: $1,799.11 (One Thousand Seven Hundred NinetyNine Dollars and Eleven cents).

REASON FOR CHANGE: Credit for Revised Gear and Replacement with New Panel.

The following is hereby changed:

Materials and Labor to pull 14/2 Shielded Pair of Wire for the 24VDC Power supply to three (3) Exterior APGS signs.
45 February 10, 2025

Page 2 ends

Page 2 of 2 ends

Public Works Department 1740 D Street, South Lake Tahoe, CA 96150 COST OF CHANGE: $1,799.11
CONTRACT TIME ADJUSTMENT: No Change. This contract change order constitutes full and complete compensation for all labor, equipment, materials, tools, jobsite and home office overhead, profit, all indirect costs and contract time adjustment to perform the above-described change. All other costs are non-compensable.

RECOMMENDED BY: ACCEPTED BY:
________________________ _ ____________________ ______________ Project Manager, Date Ample Electric, Date Jeff Roberson Joe Diaz, President ________________________ _____________ Anush Nejad, P.E. Date Director of Public Works
46 Public Works Department – 1740 D Street, South Lake Tahoe, CA 96150

Page 1 of 2 ends

PARKING ACCESS AND REVENUE CONTROL AND PARKING GUIDANCE

SYSTEMS (PARCS AND PGS)

CONTRACT CHANGE ORDER
Date: April 1, 2025
Contract Change Order No.: 3 – Amendment of liquidated damages time frame To: Ample Electric Inc.

You are hereby directed to make the herein described changes to Contract, the following described work not included in the original scope and modified by this contract change order (CCO).

This CCO is requested by: City of South Lake Tahoe
CONTRACT CHANGE ORDER AMOUNT: Zero
REASON FOR CHANGE: POF delivery date delay expected based on unknown MID-TID provision date.

Modify Subsection 1.04(A)(5)

1.04(A)(5) The Contractor shall collaborate with the PARCS/APGS Vendor, and the Contractor shall prepare and submit for City review, an installation/phase-over plan that is focused on scheduling and phasing the removal of the current OmniQ revenue collection system and installation of the new PARCS with the goal of reducing downtime of parking revenue collection and enforcement to a maximum of 45 (forty-five) calendar days. Liquidated damage in 47 Public Works Department – 1740 D Street, South Lake Tahoe, CA 96150

Page 2 of 2 ends

January 25, 2025

Page 2 ends

the amount of $500 per day will be assessed for time over 45 days.

Modify Subsection 1.05(A)

1.05(A) Parking Revenue Collection Downtime: Per Section 1.04(A)(5) above, downtime of the City’s ability to collect parking revenue collection in excess of 45 calendar days will result in the assessment of Liquidated Damages of $500 per calendar day.

COST OF CHANGE: zero
CONTRACT TIME ADJUSTMENT: This contract change order constitutes full and complete compensation for all labor, equipment, materials, tools, jobsite and home office overhead, profit, all indirect costs and contract time adjustment to perform the above-described change. All other costs are non-compensable.

RECOMMENDED BY: ACCEPTED BY:

Apr 3, 2025 Apr 4, 2025
Project Manager, Date Ample Electric Date
Jeff Roberson Katie Reineck Aalerud
Vice President of Ops.

Apr 3, 2025
Project Manager, Date
Acting Director of Public Works
John Dickinson
48 CCO-3 - Ample liquidated damages
Final Audit Report 2025-04-04
"CCO-3 - Ample liquidated damages" History
Document created by Kelli Durocher ([email protected]) 2025-04-03 - 3:36:06 PM GMT
Document emailed to John Dickinson ([email protected]) for signature 2025-04-03 - 3:37:15 PM GMT
Email viewed by John Dickinson ([email protected]) 2025-04-03 - 3:38:45 PM GMT
Document e-signed by John Dickinson ([email protected]) Signature Date: 2025-04-03 - 3:38:58 PM GMT - Time Source: server Document emailed to Jeff Roberson ([email protected]) for signature 2025-04-03 - 3:39:00 PM GMT
Email viewed by Jeff Roberson ([email protected])
2025-04-03 - 7:22:40 PM GMT
Document e-signed by Jeff Roberson ([email protected]) Signature Date: 2025-04-03 - 7:27:26 PM GMT - Time Source: server Document emailed to Katie Reineck ([email protected]) for signature 2025-04-03 - 7:27:29 PM GMT
Email viewed by Katie Reineck ([email protected]) 2025-04-04 - 3:23:02 PM GMT
Document signing delegated to Jose Diaz ([email protected]) by Katie Reineck ([email protected])
2025-04-04 - 3:24:21 PM GMT
Document emailed to Jose Diaz ([email protected]) for signature 2025-04-04 - 3:24:22 PM GMT
Created: 2025-04-03
By:

Status:

Transaction ID:

Kelli Durocher ([email protected])
Signed
CBJCHBCAABAA4NCOBWq7129mSz3Wkayp6PBnLPtEuW45
49 Email viewed by Jose Diaz ([email protected])
2025-04-04 - 3:29:08 PM GMT
Document e-signed by Katie Reineck ([email protected]) Signature Date: 2025-04-04 - 3:31:14 PM GMT - Time Source: server Agreement completed.
2025-04-04 - 3:31:14 PM GMT
50

Page 1 of 2 ends

Public Works Department – 1740 D Street, South Lake Tahoe, CA 96150 Bellamy Parking Garage Electrical Upgrade for
EVCS and Parking Technology - Phase 2
PUBLIC WORKS CONTRACT No. PWC 24-52005320-02

CONTRACT CHANGE ORDER
Date: May 14th, 2025
Contract Change Order No. 4 – Kiosk Conduit – Replace 1” approximately 400 feet of conduit with larger conduit size to
accommodate conduit runs and fill
requirements
To: Ample Electric Inc.

Note: This CCO is not effective until approved by the Owner, or until an authorized Field Directive is executed.

This CCO is requested by: City of South Lake Tahoe
CONTRACT CHANGE ORDER AMOUNT: $16,447.70 (Sixteen Thousand Four Hundred FortySeven dollars and 70 cents).

REASON FOR CHANGE: The Existing conduit size is too small.

The following is hereby changed: Remove (E) Kiosk Conduit, Replace with 1". 51

Page 2 of 2 ends

Public Works Department – 1740 D Street, South Lake Tahoe, CA 96150 February 10, 2025

Page 2 ends

In response to RFI#3 "Existing Conduit Capacity for Pay-On-Foot Kiosk Cat-6 Cabling Requirements. Ample Electric shall demo, remove, and install 400' of 1" EMT conduit (to accommodate conduit fill requirement) and run (8) Cat-6 low-voltage cable to the ground floor of Bellamy CT parking garage Pay-OnFoot Kiosk and make final connections.

COST OF CHANGE: $16,447.70
CONTRACT TIME ADJUSTMENT: Four (4) Days.

This contract change order constitutes full and complete compensation for all labor, equipment, materials, tools, jobsite and home office overhead, profit, all indirect costs and contract time adjustment to perform the above-described change. All other costs are non-compensable.

RECOMMENDED BY: ACCEPTED BY:

May 19, 2025
_ Jose Diaz May 19, 2025 Jose Diaz (May 19, 2025 08:01 PDT) Project Manager, Date Ample Electric, Date
Jeff Roberson Joe Diaz, President
Anush Nejad (May 19, 2025 15:39 PDT) May 19, 2025
Anush Nejad, P.E. Date
Director of Public Works
52 License: 807298
Ample Electric, Inc.

PO Box 456
Winters CA 95694
(530) 795-9913
Change Order
Order#: 4
Order Date: 05/01/2025
To: City of South Lake Tahoe
1740 D Street
South Lake Tahoe CA 96150-6251
Project: 24358
Bellamy Parking Garage - Phase 2
1 Bellamy CT.

South Lake Tahoe CA 96150
The contractor agrees to perform and the owner agrees to pay for the following changes to this contract.

Ordered By: Customer Order:

Plans Attached
Specifications Attached
Description of Work Amount
Remove (E) Kiosk Conduit, Replace with 1" 16,447.70
Per the request of City of South Lake Tahoe and their response to RFI#3 "Existing Conduit Capacity for Pay-On-Foot Kiosk Cat-6 Cabling Requirements," Ample Electric would like to provide the following change order.

This change order scope requires Ample Electric to demolition, remove, and install 400' of 1" EMT conduit meant to run (8) Cat-6 low-voltage cable to the ground floor of Bellamy CT parking garage Pay-On-Foot Kiosk and make final connections.

Notes
Negative changes will lower the overall contract Requested Amount of Change 16,447.70 price requiring no additional payment by owner.

The original Contract Sum was 319,040.27
Net change by previous Change Orders -7,963.17
The Contract Sum prior to this Change Order 311,077.10
The Contract Sum will be changed by this Change Order 16,447.70 The new Contract Sum including this Change Order will be 327,524.80 The Contract Time will be changed by 4 Days
Owner: Date:

Contractor: Date:
53 Ample Electric, Inc.

Takeoff Worksheet
by Phase
Job# 24358 to 24358, Phase# 30 to 30
Takeoff Worksheet
05/08/25
Assembly# Part# Description Unit
Extended
Quantity Cost Ext. Cost Ext. Price
Job: 24358 Bellamy Parking Garage - Phase 2
Phase: 30 Change Order 4 RFI#3
Material LS 1.00 4,259.430000 4,259.43 4,898.34
Miscellaneous Material LS 1.00 200.000000 200.00 230.00 Labor
340401 340 - Journeyman Reg Rate HR 40.00 105.080000 4,203.20 4,833.68 340401 340 - Journeyman Reg Rate HR 40.00 105.080000 4,203.20 4,833.68 Equipment
301 F150 Truck & Tools HR 40.00 30.000000 1,200.00 1,380.00 Bond LS 1.00 302.000000 302.00 302.00
Phase Totals: 14,367.83 16,477.70
Grand Totals: 14,367.83 16,477.70
Report 9-5-0-31
Katie Page 1 of 1
05/08/2025
09:56 AM
54 BELLAMY PARKING GARAGE ELECTRICAL UPGRADE FOR
EVCS AND PARKING TECHNOLOGY – PHASE 2
PUBLIC WORKS CONTRACT NO. PWC 24-52005320

CONTRACT CHANGE ORDER
Date: July 11, 2025
Contract Change Order No.: 5 (Additional Labor Due to Blink’s Wrong EVC Pedestal Delivery)
To: Ample Electric, Inc.

You are hereby directed to make the herein described changes to plans and specifications, the following described work not included in the original scope and modified by this contract change order (CCO).

Note: This CCO is not effective until approved by the Owner, or until an authorized Field Directive is executed.

This CCO is requested by Ample Electric.

CONTRACT CHANGE ORDER AMOUNT: $7,559.76 (Seven Thousand Five Hundred Fifty Nine Dollars and Seventy-Six cents).

REASON FOR CHANGE: Additional Labor required to install the EVC pedestals due to the initial delivery of incorrect units by Blink.

The following is hereby changed: Additional Labor Due to Delivery of Wrong Pedestals.

COST OF CHANGE: $7,559.76

Page 1 of 2 ends

Public Works Department – 1740 D Street, South Lake Tahoe, CA 96150 55 Date: July 11, 2025
CONTRACT TIME ADJUSTMENT: Zero days will be added to the contract.

RECOMMENDED BY: ACCEPTED BY:

Jul 18, 2025 Jose Diaz Jose Diaz (Jul 16, 2025 10:50 PDT) Project Manager Date Ample Electric, Inc. Date
Jeff Roberson Jose Diaz, President
Anush Nejad Anush Nejad (Jul 21, 2025 10:39 EDT)
Anush Nejad, P.E. Date
Director of Public Works

Page 2 of 2 ends

Public Works Department – 1740 D Street, South Lake Tahoe, CA 96150 Jul 16, 2025
Jul 21, 2025
56 License: 807298
Ample Electric, Inc.

PO Box 456
Winters CA 95694
(530) 795-9913
Change Order
Order#: 5
Order Date: 05/07/2025
To: City of South Lake Tahoe
1740 D Street
South Lake Tahoe CA 96150-6251
Project: 24358
Bellamy Parking Garage - Phase 2
1 Bellamy CT.

South Lake Tahoe CA 96150
The contractor agrees to perform and the owner agrees to pay for the following changes to this contract.

Ordered By: Customer Order:

Plans Attached
Specifications Attached
Description of Work Amount
Wrong Pedestals 7,559.76
This change order is submitted by Ample Electric, Inc. to account for the additional labor required to install the EVC pedestals due to the initial delivery of incorrect units by the vendor.

Notes
Negative changes will lower the overall contract Requested Amount of Change 7,559.76 price requiring no additional payment by owner.

The original Contract Sum was 319,040.27
Net change by previous Change Orders -7,963.17
The Contract Sum prior to this Change Order 311,077.10
The Contract Sum will be changed by this Change Order 7,559.76 The new Contract Sum including this Change Order will be 318,636.86 The Contract Time will be changed by 0 Days
Owner: Date:

Contractor: Date:
57 Created: 2025-07-15
By:

Status:

Transaction ID:

Kelli Durocher ([email protected])
Signed
CBJCHBCAABAAt-hZjZd0WksiAsGv5Hd2U_Siq_XHNfoo
CCO No. 5 - Ample Electric
Final Audit Report 2025-07-21
"CCO No. 5 - Ample Electric" History
Document created by Kelli Durocher ([email protected]) 2025-07-15 - 5:08:25 PM GMT
Document emailed to [email protected] for signature 2025-07-15 - 5:09:46 PM GMT
Email viewed by [email protected]
2025-07-16 - 5:46:24 PM GMT
Signer [email protected] entered name at signing as Jose Diaz 2025-07-16 - 5:50:11 PM GMT
Document e-signed by Jose Diaz ([email protected]) Signature Date: 2025-07-16 - 5:50:13 PM GMT - Time Source: server Document emailed to Jeff Roberson ([email protected]) for signature 2025-07-16 - 5:50:16 PM GMT
Email viewed by Jeff Roberson ([email protected])
2025-07-16 - 6:59:01 PM GMT
Email viewed by Jeff Roberson ([email protected])
2025-07-18 - 4:03:26 PM GMT
Document e-signed by Jeff Roberson ([email protected]) Signature Date: 2025-07-18 - 4:03:40 PM GMT - Time Source: server Document emailed to Anush Nejad ([email protected]) for signature 2025-07-18 - 4:03:41 PM GMT
Email viewed by Anush Nejad ([email protected])
2025-07-21 - 2:38:57 PM GMT
58 Document e-signed by Anush Nejad ([email protected]) Signature Date: 2025-07-21 - 2:39:45 PM GMT - Time Source: server Agreement completed.
2025-07-21 - 2:39:45 PM GMT
59 BELLAMY PARKING GARAGE ELECTRICAL UPGRADE FOR
EVCS AND PARKING TECHNOLOGY – PHASE 2
PUBLIC WORKS CONTRACT NO. PWC 24-52005320

CONTRACT CHANGE ORDER
Date: May 28, 2025
Contract Change Order No.: 6 (Leveling Bollards and Pedestals) To: Ample Electric, Inc.

Note: This CCO is not effective until approved by the Owner, or until an authorized Field Directive is executed.

This CCO is requested by the City of South Lake Tahoe
CONTRACT CHANGE ORDER AMOUNT: $5,868.68 (Five Thousand Eight Hundred SixtyEight Dollars and Sixty-Eight cents).

REASON FOR CHANGE: Due to the Slope of the Parking Garage, leveling of the Bollards and EVCS Pedestals is required. The method and materials for leveling have been provided to the Contractor.

The following is hereby changed: Leveling of the Bollards and EVCS Pedestals COST OF CHANGE: $5,868.68
CONTRACT TIME ADJUSTMENT: Zero days will be added to the contract.

Page 1 of 2 ends

Public Works Department – 1740 D Street, South Lake Tahoe, CA 96150 60 Date: May 28, 2025
This contract change order constitutes full and complete compensation for all labor, equipment, materials, tools, jobsite and home office overhead, profit, all indirect costs and contract time adjustment to perform the above-described change. All other costs are non-compensable.

RECOMMENDED BY: ACCEPTED BY:

Jun 2, 2025 Jose Diaz Jose Diaz (May 31, 2025 08:30 PDT) Project Manager Date Ample Electric, Inc. Date
Jeff Roberson Jose Diaz, President
Anush Nejad Anush Nejad (Jun 2, 2025 12:13 PDT)
Anush Nejad, P.E. Date
Director of Public Works

Page 2 of 2 ends

Public Works Department – 1740 D Street, South Lake Tahoe, CA 96150 May 31, 2025
Jun 2, 2025
61 License: 807298
Ample Electric, Inc.
16 Light Sky Court
Sacramento CA 95828
(916) 873-8111
Change Order
Order#: 6
Order Date: 05/07/2025
To: City of South Lake Tahoe
1740 D Street
South Lake Tahoe CA 96150-6251
Project: 24358
Bellamy Parking Garage - Phase 2
1 Bellamy CT.

South Lake Tahoe CA 96150
The contractor agrees to perform and the owner agrees to pay for the following changes to this contract.

Ordered By: Customer Order:

Plans Attached
Specifications Attached
Description of Work Amount
Leveling Bollards and Pedestals 5,868.68
Ample Electric, Inc. submits this change order in response to a request from the City of South Lake Tahoe to furnish and install level pads for the EVC bollards and pedestals.

Notes
Negative changes will lower the overall contract Requested Amount of Change 5,868.68 price requiring no additional payment by owner.

The original Contract Sum was 319,040.27
Net change by previous Change Orders 8,484.53
The Contract Sum prior to this Change Order 327,524.80
The Contract Sum will be changed by this Change Order 5,868.68 The new Contract Sum including this Change Order will be 333,393.48 The Contract Time will be changed by 0 Days
Owner: Date:

Contractor: Date:
62 Takeoff Worksheet
with Notes
Ample Electric, Inc.

License No. 807298
Takeoff Worksheet
05/27/25
Job# 24358 to 24358, Phase# 50 to 50
Extended
Assembly# Part# Description Unit Quantity Cost Ext. Cost Ext. Price Job: 24358 Bellamy Parking Garage - Phase 2
Material
Miscellaneous Material LS 1.00 300.000000 300.00 345.00 Labor
340401 340 - Journeyman Reg Rate HR 20.00 105.080000 2,101.60 2,416.84 340401 340 - Journeyman Reg Rate HR 20.00 105.080000 2,101.60 2,416.84 301 F150 Truck & Tools HR 20.00 30.000000 600.00 690.00 Grand Totals: 5,103.20 5,868.68
Report 9-5-0-22
Ian Page 1 of 1
05/27/2025
10:01 AM
63 CCO No. 6 - Ample Electric (003)
Final Audit Report 2025-06-02
"CCO No. 6 - Ample Electric (003)" History
Document created by Kelli Durocher ([email protected]) 2025-05-28 - 8:34:35 PM GMT
Document emailed to [email protected] for signature 2025-05-28 - 8:36:15 PM GMT
Email viewed by [email protected]
2025-05-31 - 3:30:17 PM GMT
Signer [email protected] entered name at signing as Jose Diaz 2025-05-31 - 3:30:56 PM GMT
Document e-signed by Jose Diaz ([email protected]) Signature Date: 2025-05-31 - 3:30:58 PM GMT - Time Source: server Document emailed to Jeff Roberson ([email protected]) for signature 2025-05-31 - 3:31:00 PM GMT
Email viewed by Jeff Roberson ([email protected])
2025-06-02 - 5:04:12 PM GMT
Document e-signed by Jeff Roberson ([email protected]) Signature Date: 2025-06-02 - 6:54:18 PM GMT - Time Source: server Document emailed to Anush Nejad ([email protected]) for signature 2025-06-02 - 6:54:20 PM GMT
Email viewed by Anush Nejad ([email protected])
2025-06-02 - 7:13:34 PM GMT
Document e-signed by Anush Nejad ([email protected])
Signature Date: 2025-06-02 - 7:13:49 PM GMT - Time Source: server Created: 2025-05-28
By:

Status:

Transaction ID:

Kelli Durocher ([email protected])
Signed
CBJCHBCAABAAhyAOjOycIJvrx9L3V6j1m2FB5ODtDiCu
64 Agreement completed.
2025-06-02 - 7:13:49 PM GMT
65 City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: September 23,
2025
Agenda Item #:5
Agenda Item: Update Organizational Authorized Agent for California Office of Emergency Services (Cal OES) Law Enforcement Specialized Unit Grant
Executive Summary: Amends the Organizational Authorized agent from the named Chief of Police to position of 'The Chief of Police' as instructed by the CalOES Sub-recipient Handbook.

Requested Action / Suggested Motions: Pass a Resolution updating Organizational Authorized Agent to The Chief of Police as the authorized signatory for the City of South Lake Tahoe for the current and future Law Enforcement Specialized Unit Grant Subawards related to domestic violence through the California Office of Emergency Services (CalOES).

Responsible Staff Member: Jeff Roberson, Chief of Police Reviewed and Approved By: Susan Blankenship, City Clerk Olga Tikhomirova, Director of Finance Heather Stroud, City Attorney
Attachments:
01-Staff Report - Cal OES Grant Ratification change of authority.docx 02-Resolution-Update Organizational Authorized Agent for CalOES Law Enforcement Specialized Unit Grant .docx
66 Council Agenda Report September 23, 2025 Page 1 of 1 City of South Lake Tahoe
Report to City Council
Meeting Date: September 23, 2025
Title: Update Organizational Authorized Agent for California Office of Emergency Services (Cal OES) Law Enforcement Specialized Unit Grant Location: Citywide
Responsible Staff Member: Jeff Roberson, Chief of Police Background: Since 2003, the South Lake Tahoe Police Department has worked in partnership with Vista Rise Collective (formerly Live Violence Free) to supplement the investigation of and response to, domestic violence incidents, advocate for involved parties, educate the community and law enforcement on domestic violence issues, and provide counselling services to victims and perpetrators.

The Law Enforcement Specialized Unit program plays a vital role in the Police Department’s ability to effectively protect victims of domestic violence and prosecute the offenders. Domestic violence continues to be a significant issue in our community and has devastating long-term effects on victims and families.

As ratified in February 2025, South Lake Tahoe Police Department received a grant from the California Office of Emergency Services in the amount up to $203,142.00 The operational period for this grant is January 1, 2025 through December 31, 2025.

Issue and Discussion: The attached resolution seeks to update the Organizational Authorized Agent for the Law Enforcement Specialized Unit CalOES grant LE24035801, specifically for domestic violence.

The CalOES 2024 Subrecipient Handbook states that the subrecipient must have written authority from the governing body such as the City Council to enter into a specific grant subaward.

Handbook Section 1.055 goes on to note that it is best to use the Official Designee’s title rather than name to avoid having to seek further authorization from the governing body if the person named leaves the position/agency/organization.

Police Chief Dave Stevenson had formerly been that Organizational Authorized Agent as designated by City Council Resolution. This current resolution seeks to update that Organizational Authorized Agent to the position of ‘The Chief of Police’.

Financial Implications: None
Environmental Considerations: Not a project: This is not a “project” subject to review under the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15378(b)(2) (continuing administrative or maintenance activities, such as purchases for supplies) Policy Implications: The approval and receipt of this grant supports Strategic Priority Three:

Ensure Public Safety.
67 Resolution 2025-XXX September 23, 2025 Page 1 of 2
Resolution 2025-XXX
Adopted by the City of South Lake Tahoe
City Council
Sept 23, 2025
Update Organizational Authorized Agent for
California Office of Emergency Services (Cal OES)
Law Enforcement Specialized Unit Grant

BACKGROUND
A. The City of South Lake Tahoe is committed to maintain the Domestic Violence Response Team (DVRT) in support of victims and families of domestic violence, and B. The City of South Lake Tahoe in partnership with Vista Rise Collective (formerly Live Violence Free) has been awarded a grant through the California Office of Emergency Services in the amount up to $203,142 in support of the DVRT program for calendar year 2025.

C. Chief David Stevenson had been named as the prior Organizational Authorized Agent with signatory authority for entering into the grant subaward agreement.

D. The CalOES Subrecipient Handbook states that the subrecipient must have written authority from the governing body such as the City Council to enter into a specific grant subaward.

E. CalOES Subrecipient Handbook Section 1.055 goes on to note that it is best to use the Official Designee’s title rather than name to avoid having to seek further authorization from the governing body if the person named leaves the position/agency/organization.

F. Chief David Stevenson has retired, and this resolution seeks to designate the Organizational Authorized Agent as ‘The Chief of Police’.

BASED ON THE FACTS SET FORTH IN THE BACKGROUND, BE IT RESOLVED, that the City Council of the City of South Lake Tahoe hereby:

1. Appoints ‘The Chief of Police’ as an authorized signatory of the City of South Lake Tahoe for the current Law Enforcement Specialized Unit Grant Subaward LE24035801, all applicable Grant Subaward Amendments, and future Law Enforcement Specialized Unit Grant Subaward through CalOES.

2. The current Grant Subaward performance period is January 1, 2025 through December 31, 2025.
68 Resolution 2025-XXX September 23, 2025 Page 2 of 2
Adopted by the City of South Lake Tahoe City Council on September 23, 2025 by the following vote:

Yes:

No:

Absent:

Abstain:
________________________ Date:_________
Tamara Wallace, Mayor
Attest:
________________________
Susan Blankenship, City Clerk
The presence of electronic signatures certifies that the foregoing is a true and correct copy as approved by the South Lake Tahoe City Council.
69 City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: September 23,
2025
Agenda Item #:6
Agenda Item: Purchase of Two Parking Ambassador Vehicles from Champion Chevrolet and Related Equipment from Lehr
Executive Summary: This action item would authorize the purchase of two 2025 Chevrolet Colorado 4WD pick ups and related equipment, for a total purchase price not to exceed $85,826.16. Champion Chevrolet submitted the lowest matching spec bid, with the vehicles in stock, in a competitive bidding process on Planet Bids. Additional electronics and equipment will be obtained through a Placer County cooperative purchase agreement with Lehr. Up fitting will be done by Fleet Services.

Requested Action / Suggested Motions: Pass a Motion authorizing the purchase of two 2025 Chevrolet Silverado 4WD pickups from Champion Chevrolet, and authorizing purchase of related equipment through cooperative purchasing from a Placer County contract with Lehr per South Lake Tahoe City Code section 3.45.090, using existing budget appropriations up to $85,826.16.

Responsible Staff Member: Lt. Scott Crivelli
Reviewed and Approved By: Susan Blankenship, City Clerk Olga Tikhomirova, Director of Finance Heather Stroud, City Attorney
Attachments:
01-_Staff_Report_Parking_Ambassador_Vehicle_Purchase.docx 02 - Colorado Spec.pdf
03 - Planet Bid Summary Colorado.pdf
04 - 55589 Lehr Sales Quote - PA Truck upfitting.pdf
05 - Placer County Contract with Lehr.pdf
70 Council Agenda Report- September 23, 2025 Page 1 of 2 City of South Lake Tahoe
Report to City Council
Meeting Date: September 23, 2025
Title: Parking Ambassador Vehicle Purchase
Location: Police Department
Responsible Staff Member: Lieutenant Scott Crivelli (530) 542-6130 Background: Historically, funding for the purchase of emergency vehicles has come almost entirely from Proposition 172, a Safety Sales Tax. This is a restricted revenue source required to be used specifically for public safety services which includes sheriffs, police, fire protection, county district attorneys, county corrections and ocean lifeguards. The parking ambassador vehicles will be purchased using a combination of Prop 172 funds and a $75,000 transfer from the Parking Garage, which was allocated for this purpose in the FY 2024- 25budget.

Issue and Discussion: On 9/20/2022, City Council authorized the allocation of two FTE Parking Ambassadors to be utilized for parking education and enforcement inside the Crescent V parking center, the parking garage, and the Bellamy Ct area. On 3/14/2023, City Council authorized increasing the Parking Ambassador FTEs to 4 positions to increase parking enforcement in the City, to include the Heavenly Parking area.

Since the creation of the Parking Ambassador program, no additional vehicles have been added to the police support division to accommodate the increased employees. Our parking ambassador vehicle fleet consists of Chevrolet Tahoe and a Ford F-150. Only two vehicles are available for parking ambassador details. When more than 2 parking ambassadors are working at the same time, 2 must ride together, which results in less efficient parking enforcement. Adding two vehicles to the parking ambassador fleet will allow all parking ambassadors to be working simultaneously and work different areas to increase parking enforcement proficiency and productivity.

The Police Department seeks approval to purchase two (2) 2025 Chevrolet Colorado pickup trucks. Chevrolet offers this Colorado in 4-wheel drive. Having a truck for parking ambassadors is most efficient in order to carry cones, road closure signs, and other traffic hazard awareness equipment. This equipment readily available in a truck has proven successful for parking enforcement, especially when addressing road closures or other traffic related issues in the Heavenly Parking area in the winter.

The police department also recommends the purchase of equipment for upfitting the trucks with amber overhead lighting. Mobile radios for these vehicles have already been purchased. 71 Council Agenda Report- September 23, 2025 Page 2 of 2 At the request of the Police Department, the Fleet Division advertised the procurement through Planet Bids on August 13, 2025. 25 vendors were notified. When the bidding process closed on August 27, 2025; Champion Chevrolet submitted the lowest bid, while matching the spec required and having the vehicles in stock.

Financial Implications: The expense of the vehicle purchase recommended in this staff report will have no impact on the City General Fund. The total purchase price, with equipment, for two 2025 Chevrolet Colorado 4WD trucks will be $85,826.16 from the Police Department Vehicle Replacement Fund (21102110 46130).

The collective bid for these two Parking Ambassador trucks was $80,469.76 with sales tax; the price of each Chevy Colorado is $40,234.88, with sales tax.

The department also recommends purchasing lighting equipment from Lehr. The cost to outfit both trucks with additional equipment from Lehr will be $5,356.40.

A cooperative purchase agreement will be used for all other equipment from Lehr using Placer County- Lehr contract SCN107418.

Environmental Considerations: This is not a ‘project’ subject to review under the California Environmental Quality Act (CEQA) under CEQA guidelines section 15378(b)(2) (continuing administrative or maintenance activities, such as purchases for supplies).

Policy Implications: This report considers Climate Action Plan Action Item EV-2 which directs city fleet vehicles toward electric vehicles. In conversations with the Sustainability Coordinator, we agree that emergency response EVs are not a viable option for emergency response police operations. Parking Ambassadors and their vehicles provide significant parking enforcement and traffic control support, especially during the winter months in the Heavenly area. support to patrol operations daily, but more significantly during emergency operations. These Parking Ambassador vehicles fall under the emergency response vehicle exemption to the Advanced Clean Fleet Regulations
The purchase of these vehicles supports the following strategic priorities:
- Priority 3: Ensure Public Safety
- Priority 5.7: Evaluation of city-wide parking management strategies including potential expansion of paid parking and reduction of parking requirements. 72 73
City of South Lake Tahoe
Purchase of 2025 Chevrolet Colorado (08-13-2025), bidding on 08/27/2025 7:00 AM (PDT)

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PlanetBids
74 City of South Lake Tahoe
Purchase of 2025 Chevrolet Colorado (08-13-2025), bidding on 08/27/2025 7:00 AM (PDT)

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PlanetBids
75 City of South Lake Tahoe
Purchase of 2025 Chevrolet Colorado (08-13-2025), bidding on 08/27/2025 7:00 AM (PDT)

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76 City of South Lake Tahoe
Purchase of 2025 Chevrolet Colorado (08-13-2025), bidding on 08/27/2025 7:00 AM (PDT)

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77 City of South Lake Tahoe
Purchase of 2025 Chevrolet Colorado (08-13-2025), bidding on 08/27/2025 7:00 AM (PDT)

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78 City of South Lake Tahoe
Purchase of 2025 Chevrolet Colorado (08-13-2025), bidding on 08/27/2025 7:00 AM (PDT)

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Purchase of 2025 Chevrolet Colorado (08-13-2025), bidding on 08/27/2025 7:00 AM (PDT)

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80 City of South Lake Tahoe
Purchase of 2025 Chevrolet Colorado (08-13-2025), bidding on 08/27/2025 7:00 AM (PDT)

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81 City of South Lake Tahoe
Purchase of 2025 Chevrolet Colorado (08-13-2025), bidding on 08/27/2025 7:00 AM (PDT)

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Purchase of 2025 Chevrolet Colorado (08-13-2025), bidding on 08/27/2025 7:00 AM (PDT)

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83 Item No. Description Quantity Unit Price Total Price BB8FFFF-LEHR Whelen, Liberty II 48" WCX DUO Amber / White Lightbar 2 2,335.00 4,670.00 STPKT95 Whelen, Strap Kit 2
CCP9 Whelen Core-C Control Pt/Switch Combo 2 343.20 686.40 5,356.40

0.00 5,356.40
Total:

Total Tax
Sub-Total
5,356.40
0 Amount Exempt from Sales Tax
Amount Subject to Sales Tax
Name: __________________________________________________ Auth. Signature: ________________________________________ Agency Approval
PLEASE READ: No returns without approval and an RMA# will be accepted. All shortages, damage, or return claims must be made within 10 days of invoice date. NO EXCEPTIONS. A copy of the invoice and RMA paperwork must be shipped with returns. All return orders or cancellations are subject to a 25% restocking fee plus freight. Any change orders made 60 days prior to the installation date may be subject to a production delay and pricing changes. PRICES ARE SUBJECT TO CHANGE WITHOUT NOTICE.

Page:

Document Date:

Quote Number:

Sales Quote
To:

Ship
SalesPerson
Ship Via Customer ID
To:

Sell
55589
Darian Putnam
62850
Phone: 800-982-8468
SOUTH LAKE TAHOE, CA 96150-6227
1700 D ST
Scott Crivelli
South Lake Tahoe-Motor Pool
Phone: (530) 542-6130
So Lake Tahoe, CA 96150-6325
1901 Airport Road Suite 210
Scott Crivelli
City of South Lake Tahoe
Phone: 775-507-2460 Fax:
9240 Prototype Dr Reno, NV 89521-8987
8/28/2025
1 Tax Ident. Type Legal Entity
Vehicle Information:

Terms: Net 30
Payment Method:

PRICES ARE VALID FOR 30 DAYS FROM DATE OF QUOTE UNLESS OTHERWISE SPECIFIED 84 County of Placer
Procurement Services Division
2964 Richardson Drive
Auburn, CA 95603
Phone (530) 886-2122
Supplier Contract
Contract Number SCN107418
Contract Reference 97
Contract Start Date 10/01/2024
Contract End Date 09/30/2025
Buyer Javier Terrazas
Phone Number +1 (530) 8894252
Email [email protected]

Page 1 ends

1 Supplier:

STOMMEL INC
dba LEHR
631 N MARKET BLVD STE N
SACRAMENTO, CA 95834
This Supplier Contract shall be governed by the attached terms and conditions.

Please reference the Supplier Contract number above on all invoices and correspondence related to this order.

Summary:

Emergency Response Vehicle Supplies/Equipment and Installation Services Vendor Contact: Steve Adair, Ph. #No. 916-267-5547, Email: [email protected] County Contacts:

Probation Dept. Contact: Jeff Thompson, Ph. #530-889-7912, Email: [email protected] Placer County Sheriff Contact: Matt Burgans, Ph. #530-889-7865 Sheriff Accounting: [email protected]
Placer County Fire: Sarah Poindexter, Ph. #530-889-4037 Placer County Fire Accounting: [email protected] District Attorney's Office: Mary Green, Ph. #916-543-8079, [email protected] Renewal of SCN1063120
Payment Terms Total Contract Amount
500,000.00
Service Lines
Line Number Description Start Date End Date Amount
1 Emergency response vehicle equipment and supplies as well as equipment installation services in accordance with the vendor's agreement to renew SCN106312 - see attached for pricing, terms, and conditions, and discounts.

Approved by the Placer County Board of Supervisors on July 9, 2024.
10/01/2024 09/30/2025 500,000.00
85 631 North Market Street Suite N, Sacramento Ca 95834 Labor Price Increase Notice
Due to wage pressure for technicians our labor rate has increased to $140 per hour Effective:

October 1, 2024
October 1, 2024
To Our Valued Customers,
Due to the State of California increasing wage pressure and industry changes our new Labor Rate will need to increase from $125.00 per hour to $140.00 per hour for work performed at a LEHR facility. Labor performed outside of a LEHR facility will be billed at $200.00 per hour. Technicians travel will be billed at $140.00 per hour.

Lehr provides specialized labor for the fabrication of first responder vehicles.

Historically we have only taken four labor increases in 15 years. Wages have increased annually to allow Lehr to continue to employ certified and qualified technicians. To ensure that Lehr provides the best emergency equipment installations in the industry this increase was implemented.

If you have any questions regarding the labor increase, please reach out to:

Steve Adair
Lehr
Regional Sales Manager
631 North Market St. Suite N
Sacramento, CA 95834
Cell 916.267.5547
Fax: 916.646.6656
[email protected]
86 Additional Emergency Equipment Manufatures Discounts Manufacture Discount of List Price
AFS 40%
AceK‐9 2%
AEDEC 2%
American Aluminum 25%
Airgain 15%
BackRack 15%
Big Sky 10%
Boss 20%
Brooking 20%
CHEETAH 13.33%
Copeland 15%
D&R 10%
ECCO 40%
GORhino 25%
Grote 20%
Hint 15%
Hybrid Power Solutions 2% I‐Key 23%
Intermotive 10%
Jotto Desk 12%
Kussmaul 5%
LEHR Vehicle Solutions 30%
Lind 2%
Lund 5%
MnStar 10%
Newmar 5%
Panorama 5%
Patrol Power 20%
Pico 35%
PMT 5%
Power Products 15%
Pro‐Gard 20%
Ram Mounts 15%
Ray Allen 2%
Rockland Boxes 2%
Stico 2%
Stopstick 5%
Streamlight 30%
Secure‐Idle 5%
TigerTough 5%
Tomar 23%
Trucklite 67%
Tuffy 20%
Unity 38%
Weatherguard 10%
Weldex 15%
Westin 20%
Xantrex 20%
Panasonic Toughbooks 12%
Panasonic ICV 12%
Vigilant ALPR 12%
CradlePoint 5%
Sierra Wirless 5%
Ubiquity 2%
Fixed PODS 10%
Watch Guard MSI 2%
87 Procurement Services Division
2964 Richardson Drive ▪ Auburn, CA 95603
(530) 886-2122
20000 - Emergency Response Vehicle Equipment and Installation Services Opening Date: July 30, 2019 4:45 PM
Closing Date: August 13, 2019 3:00 PM
To ensure a complete and timely response, it is strongly recommended that you submit your bid response via our Online Bidding System.

However, if you have difficult submitting your bid online or prefer to submit your bid manually (hard-copy) for any reason, print and complete this bid package along with any required bid documents, and mail or deliver in a sealed envelope to:

Placer County Procurement Services Division
2964 Richardson Drive
Auburn, CA 95603
All bids must be submitted on original documents (no fax bids) prior to the Closing Date and Time specified above and as prescribed in this bid's General Terms and Conditions. All bids must be signed by an authorized representative of the firm. UNSIGNED OR LATE BIDS WILL BE REJECTED.

Vendors shall complete the area below for hard copy submissions:

COMPANY NAME: Stommel Inc. DBA LEHR
Mailing Address:

City/State/Zip:

Contact Person:

Telephone:

Email:
631 N. Market Street Suite N
Sacramento CA 95834
Steve Adair
916-267-5547 Cell -- 916-646-6646 Office
[email protected]
SIGNATURE:

DATE:

Title:
____________________________________________________
_____8/22/2024___________________________
____________________________________________________
By signature above, bidder hereby agrees to and accepts the terms, conditions and requirements specified in this bid, including the following bid documents and all related addenda (if any).

Vendor Details
Regional Sales Manager
88 Company Name: Stommel Inc
Does your company conduct business
under any other name? If yes, please
state:

Lehr Auto Electric
Address:
4707 Northgate Blvd
Sacramento, CA 95834-1120
Contact: Steve Adair
Email: [email protected]
Phone: 916-267-5547
Fax: 916-646-6656
HST#: 61-1499917
Submission Details
Created On: Thursday August 08, 2019 16:23:20
Submitted On: Tuesday August 13, 2019 11:55:35
Submitted By: Steve Adair
Email: [email protected]
Transaction #: bf9e4edd-1317-482f-9d85-05e42711727e
Submitter's IP Address: 207.242.136.194
89 Schedule of Prices
BID PRICING WORKSHEET - Category 1
ITEM NO. DESCRIPTION UOM EST. ANNUAL
USAGE

MANUFACTURE
R

MANUFACTURERS
PART NUMBER UNIT PRICE * EXT PRICE

PRODUCT

WARRANTY

INFORMATION
(state number
of months and
any special
terms or
provisions that
may apply)

COMMENTS

1.1 Lightbar with the following
options/modifications: Add (2) LR11
Flashing Alley Lights, LED
(SRALF1); Add (2) 500 Series
inboard LED, one red and one blue
(SLDBR); Add (2) 500 Series
inboard LED, one red and one blue
(SLDBR); Add (2) TIR high output
LED take downs, flashing or steady
(SXTDLED); and Add (2) 500
Series inboard LED, amber/amber
(SLDAA).

EA 15 Whelen LFL
Liberty SW
WeCan Series
Super-LED 54"
Lightbar
SW2RRBB $1,750.0000 $ 26,250.00 60 Whelen Master
Distributor
*

1.2 Strap Kit for LFL Liberty SW
WeCan Series Super-LED 54"
Lightbar. Strap Kit shall be
compatible with Chevrolet Tahoe
Police SUVs.

EA 15 Whelen
Engineering
STPKT71 $57.0000 $ 855.00 60 Whelen Master
Distributor
*

1.3 CenCom Sapphire Siren with
amplifier control module with pigtails,
traffic advisor module, and
microphone with CCMICX20 included
(20' microphone cable).

EA 15 Whelen
Engineering
CCSRN3 $749.00 $ 60 Whelen Master
Distributor
*

1.4 PB400 Full Aluminum Push
Bumpers. Push bumpers shall be
compatible with 2015 to current
model year Chevrolet Tahoe Police
SUVs.

EA 15 Setina
Manufacturing
Bodyguard
PB400
BK0534TAH15 $319.2000 $ 4,788.00 60 Setina Master
Distributor
*

1.5 Patrol Car Seat, black, with Laguna
Seat Belts and Rear Cargo Cage.

Patrol car seat shall be compatible
with 2011 to current model year
Chevrolet Tahoe Police SUVs.

EA 15 Laguna 3P
Products
CT5502 $1,084.0000 $ 16,260.00 60 Laguna
distributor
*

1.6 Stationary Vinyl Coated Partition
with Full Lower Extension Panel.

The partition shall be compatible
with 2015 to current model year
Chevrolet Tahoe Police SUVs.

EA 15 Setina
Manufacturing 8-
VS Series
PK0369TAH10SCA $599.2500 $ 8,988.75 60 correct Part
Number
PK0369TAH15S
CA
*

1.7 Shotgun Gun Lock EA 15 Santa Cruz SC-1H $77.0400 $ 1,155.60 12 #2 Key *

1.8 Ratchet Lock Gen. 2 EA 15 Santa Cruz SC-6H $131.64 12 #2 Key *

1.9 Muzzle Up Partition Mount EA 30 Santa Cruz SC-915P $69.9900 $ 2,099.70 12 Authorized Distributor
*

1.10 Siren Speaker EA 15 Whelen SA315P $199.99 24 Authorized Distributor
*

1.11 Speaker Bracket Kit for Whelen
SA315P Speaker
EA 15 Whelen SAK1 $29.40 $ 60 Authorized
Distributor
*

1.12 Plug In Headlight Flasher for 2015
to current model year Chevrolet
Tahoe Police SUVs
EA 15 SoundOff ETHTAHO-07 $65.7200 $ 985.80 60 Authorized Distributor *

1.13 Vertex Super-LED Light, Single SelfContained Hemispheric Light, Color: BLUE
EA 45 Whelen VTX609B $84.99 $ 60 Authorized
Distributor *

1.14 Vertex Super-LED Light, Single SelfContained Hemispheric Light, Color: RED
EA 45 Whelen VTX609R $84.99 $ 60 Authorized
Distributor *

1.15 Vertex Super-LED Light, Single SelfContained Hemispheric Light, Color: CLEAR
EA 45 Whelen VTX609J $$84.99 $ 60 Authorized
Distributor *

1.16 LIN3 Series Super-LED Lighthead,
Horizontal Mounting, Color: BLUE
EA 15 Whelen RSB02ZCR $$66.60 $ 60 Authorized
Distributor
*

1.17 LIN3 Series Super-LED Lighthead,
Horizontal Mounting, Color: RED
EA 15 Whelen RSR02ZCR $66.60 $ 60 Authorized
Distributor
*

1.18 Mounting Bracket for LIN3 Series
Super-LED Lighthead (Horizontal
Mounting)
EA 30 Whelen RBKT1 $10.80 $ 60 Authorized
Distributor *
Change
40% OFF
CHANGE
25% OFF
30% OFF
30% OFF
30% OFF
40% OFF
40% OFF
40% OFF
40% OFF
40%
25%
40% OFF
11%
40% off
10 year warranty
90 1.19 PAR46 LED Flood - Spotlight EA 25 Whelen
Engineering
P46FLC $154.99 $ 60 Authorized
Distributor
*

1.20 PAR46 LED Spot - Spotlight EA 25 Whelen
Engineering
P46SLC $154.99 $ 60 Authorized
Distributor
*

1.21 Magnetic Mic Kit EA 25 Whelen
Engineering
MMSU-1 $34.9500 $ 873.75 12 Authorized
Distributor
*

1.22 Blac-Rac Weapon Mount EA 20 Blac-Rac 1082E $861.75 $ 12 Authorized Distributor
*

1.23 Chargeguard-Select Auto Shut-Off
Timer
EA 15 Havis Inc. CG-X $71.3800 $ 1,070.70 36 Authorized Distributor
*

1.24 Littlite 12" Gooseneck Lamp with
Rehostat Control, Gooseneck
Extends From End of Chassis, Lead
Extends From Bottom of Chassis.

EA 15 Federal Signal LF12ERB $57.7500 $ 866.25 60 Authorized Distributor
*

1.25 Patrol Vehicle "Placer" Console,
consisting of the following
components:Arm Rest w/2"
Extension - Lehr Auto Electric
Model# PARM002Tall, Arm Rest
Pad - Lehr Auto Electric Model#
PARP, XTL2500 3" Faceplate -
Troy Products Model#FP-MXTL5000,
Cencom 4" Faceplate - Troy
Products Model#FP-WC10285909,
1" Blank - Troy Products Model# FPBLNK1, 2" Blank - Troy Products Model# FP-BLNK2, 4" Beverage
Holder - Troy Products Model#
EA 12 Lehr Auto
Electric
PCC001 $1,142.0000 $ 13,704.00 60 Authorized
Distributor
*

1.26 Mount Kit EA 1 Troy Products AC-EXP03 $117.1800 $ 117.18 60 limited Lifetime *

1.27 Speaker EA 1 Code 3 C3100ENO7 $178.3800 $ 178.38 24 Authorized Distributor
*

1.28 12" Litlite Console Light EA 1 Feederal Signal LF12TRB $66.95 60 Authorized Distributor
*

1.29 3 Accessory Outlet EA 2 Able2 Shoe-Me 14.0553 $21.9500 $ 43.90 24 Authorized Distributor
*

1.30 Dual Stacked LED X Light EA 2 Code 3 LXEX2F-RR $411.10 $ 60 Authorized Distributor
*

1.31 Wig-Wag EA 1 Sound Off LAROOBK $42.6000 $ 42.60 60 Authorized Distributor
*

1.32 Double Beam Halogen Work Lamp
12V
EA 2 Hella 006991663 AS 115 $41.8200 $ 83.64 12 Authorized Distributor
*

1.33 LED Strip Light EA 1 Whelen PSC0CDCR $ 112.20 $ 60 Authorized Distributor
*

1.34 2007-2010 Ford Expedition Base EA 1 Gamber Johnson 7160-446- $113.4000 $ 113.40 60 Part Number 7160-0046
*

1.35 Mongoose 9" Locking Slide Arm w/o
Standard Attachment
EA 1 Gamber Johnson 7160-0219 $247.8000 $ 247.80 60 Part has been discontinued
replacement
quoted 7160-
0220
*

1.36 Tlt Swivel Attachment EA 1 Gamber Johnson DS-CLEVIS $56.0000 $ 56.00 60 Discontinued part -
replacement
quoted 7110-
1008
*

1.37 Radio Ray Wireless Spot Light EA 1 GoLight 7900 $244.1100 $ 244.11 36 Limited 3yr warranty
*

1.38 18" Console EA 1 Troy Products CC-MC18 384.48 $ 60 Authorized Distributor
*
Subtotal: $ 124,020.15
40% OFF
40% OFF
25% OFF
35% OFF
30% OFF
40%
40%
30%
30%
30%
20%
28%
EOL
35%
28%
91 $140
$140
92 Bid Questions
Delivery Time: Bidders shall indicate their delivery time (after an order is received) for items specified in this bid without installation services in the space provided. Indicate your Delivery Time in Days
Delivery time 2-21 days. (In stock items 1-2 days, Items needed to be ordered up to 3 weeks however we stock many of your every day items.)
Turnaround Time: Bidders shall indicate their normal
turnaround time for a fully installed emergency vehicle in the space provided. Indicate your Turnaround Time in
Days
3-5 business days
**Note: If installation service is needed on behalf of Placer County Fire Department, the County intends to deliver and pick up the vehicles at the successful firm's location. As an option, Placer County Fire may require the successful firm to pick up and/or deliver a vehicle. Bidder shall provide rates for pick up and delivery service to be charged oneway, from vendor's shop to Placer County Fire facility only.**
$65 per hour based on Map Quest travel time 35 minutes travel time Travel Rate: Bidders shall provide rates for pick up and delivery service to be charges one-way, from the vendor's shop to the Placer County Fire Department address:
13760 Lincoln Way Auburn, CA 95603. Indicate your travel rate
$65 per hour based on Map Quest travel time 35 minutes travel time Travel Time: Bidders shall provide rates for pick up and delivery service to be charges one-way, from the vendor's shop to the Placer County Fire Department address:
13760 Lincoln Way Auburn, CA 95603. Indicate your
Travel Time
$65 per hour based on Map Quest travel time 35 minutes travel time Documents
Upload additional information here - optional, unless otherwise denoted as mandatory (with asterisk):

Additional Document - Additional Discounts.xlsx - Tuesday August 13, 2019 11:36:56 Travel $140.00 per hour
Onsite work $200.00 Per hour
93 Attachment A
Bid No. 20000

Page 1 of 4 ends

COUNTY OF PLACER

EMERGENCY RESPONSE VEHICLE EQUIPMENT AND INSTALLATION SERVICES

SUPPLEMENTAL TERMS AND CONDITIONS

1. DOCUMENTS
Below are the documents associated with this bid.

Attachment A – Supplemental Terms and Conditions
Attachment B – Scope of Work
Attachment C – Insurance Requirements
Attachment D – Lightbar Configuration (Patrol Vehicle)

2. OVERVIEW
Placer County is soliciting bids for the purchase and installation of emergency response vehicle equipment & related supplies for the Placer County sheriff’s Office and Placer County Fire Department. Placer County intends to award a supplier contract for the purchase emergency response vehicle equipment and installation services on an as-needed basis. The items, quantities, sample jobs, services, and occurrences listed in this bid represent the County’s estimated annual requirements and will be utilized for evaluation purposes only. The County does not guarantee any minimum or maximum quantities that will be purchased or minimum or maximum dollar amounts to be spent throughout the term of the resulting agreement(s). Please note that the County requires NEW PRODUCT ONLY – No refurbished, demo, or restored products will be accepted unless specifically authorized by County staff.

3. PRICING
Responding bidders shall indicate their hourly shop rate for the services described herein as well as provide firm, fixed prices and discounts off list prices for the emergency response vehicle equipment and supplies listed in this bid for the initial contract period of approximately one year from the date this bid is awarded. Pricing offered in the bid line items herein shall be for services provided during the successful firm’s normal business hours. Overtime will not be required. The bidder’s shop labor rate per hour offered herein shall apply to all vehicle and equipment makes, models, and types.

The prices offered by bidders shall be exclusive of sales tax (applicable sales tax shall be added to the County’s invoices). The discounts offered by bidders for the brands listed in this solicitation shall be calculated and billed in addition to any invoice terms that are offered.

All rates shall be billed in accordance with the bidders offered pricing. The County will not accept or pay any premiums, administrative surcharge costs, or any other surcharges that are not identified in the bidder’s response. Charges imposed by the State of California or Federal Government after the bid has been awarded will be honored.
94 Attachment A
Bid No. 20000

Page 2 of 4 ends

4. AWARD

4.1. This bid shall be evaluated and awarded by an all-or-none basis. The bid evaluation will consider the total cost to install the Sheriff’s Office patrol vehicle equipment into a typical Chevrolet Tahoe 4x2 and 4x4 for items 1.1 through 1.25 and a Ford Expedition for the Placer County Fire Department for items 1.26 through 1.38 for evaluation purposes. This cost will be determined by multiplying the firm’s shop labor rate by the total estimated time to install the equipment, as determined by the County. The estimated installation time will be 18 hours of labor for evaluation purposes only. Local Vendor Preference (if applicable), prompt payment discounts, optional pick up/delivery rates, travel time, travel time rate, turnaround time, and adherence to all conditions and requirements of this bid will also be considered.

Bidders are not required to bid on all categories to be considered for award however Placer County reserves the right to award the bid based on pricing offered for the most categories.

4.2. An example of a typical Chevrolet Tahoe patrol vehicle installation includes the following equipment (manufacturer or supplier is shown in parenthesis – no substitutions):
 Light Bar System (Whelen/Cencom)
 Headlight Flasher (Soundoff)
 Siren Speaker and Bracket (Whelen)
 Maplight (Little Lite)
 Radio Mounting Console (Lehr)
 Cage (Setina)
 Gun Locks – 2 per vehicle (Santa Cruz)
 Push Bumper (Setina)

All emergency equipment, dome light, and spotlight are required to be wired to an auxiliary power source in the rear of the vehicle. All power should be timed and disconnected as to protect the vehicle from a dead battery.

4.3. Other public agencies may elect to “piggyback” on the County’s resulting agreement(s). It will be the responsibility of the other agencies to execute separate contracts with the successful bidder(s) at the same bid pricing (refer to this Bid’s General Terms and Conditions, Section 22) through the end of the initial contract period. Any subsequent renewal pricing and terms successfully negotiated between Placer County and the successful bidder(s) would be made available to those other agencies.

5. DELIVERY REQUIREMENTS

5.1. Bidder’s pricing for equipment and supplies shall be FOB Destination, freight prepaid and assumed by the successful bidder, inside delivery to the following address:

Placer County Sheriff’s Office
2929 Richardson Drive, Ste. A
Auburn, CA 95603
Placer County Fire Department
13760 Lincoln Way
Auburn, CA 95603
95 Attachment A
Bid No. 20000

Page 3 of 4 ends

5.2. The successful bidder shall deliver regular orders within five (5) business days of order placement for the complete order (no partial deliveries will be allowed unless specifically approved by County staff at the time the order is placed). There will also be occasions where the County will need to place an emergency order, which shall be defined as items which are so urgently needed that they must be delivered within forty-eight (48) hours of placing the order or items that are not available from the vendor’s normal inventory. In these instances actual freight charges will be allowed with written approval from the County employee placing the order. All freight charges shall be prepaid by the vendor and added to the resulting invoice. Freight collect charges will not be allowed. The vendor shall clearly advise County personnel of such emergency order circumstances for authorization at the time the order is placed with the vendor.

5.3. If the County’s orders are not delivered within the delivery times specified herein, the County reserves the right to cancel the order and obtain the products from another source. In the event that the County must make such open market purchases, the County reserves the right to exercise the provisions of Section 17 of this bid’s General Terms and Conditions.

Continued non-compliance with the stated delivery times may be cause for cancellation of the resulting agreement.

6. PRICE LISTS
Placer County requests that the successful bidder provide price lists upon award of the resulting agreement for each of the manufacturer discounts offered in the successful bidder’s completed Bid Pricing Worksheet. The County will accept electronic versions of the price lists if hard copies are not available (e.g. CD’s, flash drives, etc.). These lists will be used to verify the discount pricing on the resulting invoices. All price lists shall be provided free of charge to the County. The County also prefers that the successful bidder(s) state the manufacturer’s list price, the bidder’s offered discount off list price, and the net price for each part purchased on the resulting invoices. The successful bidder shall be responsible for notifying the Placer County Sheriff’s Office primary contact as well as the Procurement Services Division of any changes or updates to the bidder’s/manufacturer’s published catalog/list prices that occur during the contract period.

7. INSURANCE REQUIREMENTS
The successful bidder shall be required to furnish a certificate of insurance within ten (10) calendar days following receipt of a Notice of Award demonstrating proof of coverage in the amounts specified in Attachment C, Insurance Requirements.

8. SUBCONTRACTING
The successful bidder shall not subcontract any portion of the work to be performed under the resulting agreement.

9. EQUIVALENT/ALTERNATE OFFERS
Due to the standardization of the County’s emergency response vehicle equipment including the County’s inventory of repair/replacement parts as well as staff training issues, bids will only be accepted for the brand and model emergency response vehicle equipment and supplies specified in the Bid Worksheet.
96 Attachment A
Bid No. 20000

Page 4 of 4 ends

10. SERVICE STANDARDS
The successful bidder shall provide all necessary personnel, tools, parts, materials, and equipment to perform the services described herein. The successful bidder shall perform all work in such a manner as to meet all accepted standards for safe practices for emergency response vehicle equipment installation services and to safely maintain stored equipment or other hazards consequential or related to the work. The successful bidder agrees to accept the sole responsibility for complying with all local, County, State or other legal requirements at all times including, but not limited to, O.S.H.A. and CAL. O.S.H.A. Safety Orders. The successful bidder must meet all EPA standards as well as all Federal, State, and Local laws, standards, and regulatory and permitting requirements while performing services on behalf of Placer County.

11. WORKMANSHIP
All services shall be performed in accordance with the highest standards prevailing in the trades. All of the successful bidder’s employees shall be especially skilled and appropriately trained and certified for the kind of work for which they are employed. Should the successful bidder’s Manager and/or Placer County staff deem anyone employed by the successful bidder incapable of completing the work required, the successful bidder shall immediately dismiss the employee from performing services on behalf of the County. Such removal shall not be considered a basis for employee’s claim for compensation or damages against the County, or any of its officers or agents. 97 Attachment B
Bid No. 20000

Page 1 of 2 ends

COUNTY OF PLACER

EMERGENCY RESPONSE VEHICLE EQUIPMENT AND INSTALLATION SERVICES

SCOPE OF WORK

1.0 The successful bidder shall be regularly established in the business of routine emergency vehicle lighting and equipment installation services on a variety of patrol vehicles, light trucks, and fire trucks. Responding firms shall have staff experienced in the installation of law enforcement and fire department radios, “Code 3” emergency equipment, prisoner partitions, mounting consoles, trunk racks, cages and gun locks at a minimum.

2.0 The successful bidder shall be qualified and capable of performing equipment installation services on various types of emergency response vehicles and equipment including, but not limited to, law enforcement sedans, sport utility vehicles, trucks, undercover vehicles, trailers, off-highway vehicles, and boats, including Type I and Type II engines.

3.0 Time is of the essence in returning County vehicles to service. The successful bidder agrees that work performed under the resulting agreement shall receive top priority over other work in the successful bidder’s shop. If the County determines that the workload of the successful bidder is such that timeliness is not possible in a given situation, the County reserves the right to assign the job to another vendor.

4.0 In the event that the successful bidder is unable to respond or complete the requested services within the bidder’s stated turnaround time, the successful bidder shall notify the County designated contact person immediately prior to commencing work. The County at its sole discretion may elect to utilize the services of another vendor in such instances and will notify the successful bidder if such intention is to be exercised.

5.0 The successful bidder agrees that the County has the right to view any work performed on a County vehicle at the successful bidder’s facility at any time, whether or not services have been completed. The successful bidder agrees that the County has the right to audit any work performed by the successful bidder.

6.0 The successful bidder warrants the goods furnished to be of the highest quality, complying with the specifications and free from all defects whatsoever in workmanship and materials, for a minimum period of one year from the date of delivery. Replacements and repairs under this warranty are to be made by the successful bidder at no cost and to the satisfaction of the County. Equipment installations shall be guaranteed for as long as the County owns/possesses the vehicle.

7.0 The successful bidder agrees that the County has the right to make the final determination as to whether services have been satisfactorily completed. The successful bidder shall include County staff on a walk-through of the vehicle to confirm that all equipment is installed and functioning correctly and testing the equipment prior to the County's acceptance of the work as being completed. Should any portion of the work to be done which, due to any cause, is not in accordance with the specifications or is not satisfactorily completed, it will be rejected and the successful bidder shall immediately make a satisfactory arrangement with the County before proceeding with other work. The successful bidder shall promptly correct all work rejected by the County as faulty, defective, or failing to conform to the product specifications or scope of 98 Attachment B
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work defined herein, whether observed before or after substantial completion of the work and whether or not inspected, tested, repaired, fabricated, installed, or completed. The successful bidder shall bear all costs of correcting such rejected work. This provision applies during the contract term and any resulting renewal periods.

8.0 The successful bidder shall be held responsible for any breakage or loss of the County’s vehicles or equipment while performing service on the County’s vehicles. The successful bidder shall be responsible for restoring or replacing any equipment, vehicle, etc. so damaged to the satisfaction of the County and at the sole expense of the successful bidder. The successful bidder shall immediately report to the County any damages to the vehicle or equipment resulting from services performed under the resulting agreement.

9.0 The successful bidder, at the County’s request, shall provide a field representative to meet with County personnel at least once a month to review the department's inventory levels, discuss the department's emergency lighting and equipment requirements and introduce additional products to address any County needs. The successful bidder shall also have technical staff available to conduct scheduled on-site meetings at the County’s request. The successful bidder shall provide inside sales support capable of providing product specification sheets, quotations, order placement and expediting, via fax and telephone at the County’s request.
99 Attachment C
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PLACER COUNTY INSURANCE REQUIREMENTS

1. HOLD HARMLESS AND INDEMNIFICATION AGREEMENT
The CONTRACTOR shall save, keep, hold harmless, defend, and indemnify PLACER COUNTY from all damages, costs, or expenses in law or equity that may at any time arise or be set up because of damages to property or personal injury received by reason of or in the course of performing work which may be occasioned by any willful or negligent act or omissions of the CONTRACTOR, any of the CONTRACTOR'S employees, or any subcontractors.

The CONTRACTOR shall be responsible for any liability imposed by law and for death, injury, or damage to property of any person including, but not limited to, workmen, subcontractors, and the public, resulting from any cause whatsoever during the progress of the work or at any time before its completion and final acceptance.

If any judgment is rendered against PLACER COUNTY for any injury, death, or damage caused by CONTRACTOR as a result of work performed or completed, pursuant to this agreement, CONTRACTOR shall, at its own expense, satisfy and discharge any judgment.

As used above, the term PLACER COUNTY means PLACER COUNTY, its officers, agents, employees, and volunteers.

2. INSURANCE:

CONTRACTOR shall file with the COUNTY concurrently herewith a Certificate of Insurance, in companies acceptable to COUNTY, with a Best's Rating of no less than A- :VII showing.

3. WORKER'S COMPENSATION AND EMPLOYERS LIABILITY INSURANCE:

Worker's Compensation Insurance shall be provided as required by any applicable law or regulation. Employer's liability insurance shall be provided in amounts not less than one million dollars ($1,000,000) each accident for bodily injury by accident, one million dollars ($1,000,000) policy limit for bodily injury by disease, and one million dollars ($1,000,000) each employee for bodily injury by disease.

If there is an exposure of injury to PROVIDER'S employees under the U.S. Longshoremen's and Harbor Worker's Compensation Act, the Jones Act, or under laws, regulations, or 100
Attachment C
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statutes applicable to maritime employees, coverage shall be included for such injuries or claims.

Each Worker's Compensation policy shall be endorsed with the following specific language:

Cancellation Notice - “This policy shall not be changed without first giving thirty (30) days prior written notice and ten (10) days prior written notice of cancellation for non-payment of premium to the County of Placer.”
Waiver of Subrogation - The workers’ compensation policy shall be endorsed to state that the workers’ compensation carrier waives its right of subrogation against the County, its officers, directors, officials, employees, agents or volunteers, which might arise by reason of payment under such policy in connection with performance under this agreement by the CONSULTANT.

CONTRACTOR shall require all SUBCONTRACTORS to maintain adequate Workers' Compensation insurance. Certificates of Workers' Compensation shall be filed forthwith with the County upon demand.

4. GENERAL LIABILITY INSURANCE:

A. Comprehensive General Liability or Commercial General Liability insurance covering all operations by or on behalf of CONTRACTOR, providing insurance for bodily injury liability and property damage liability for the limits of liability indicated below and including coverage for:
(1) Products and completed operations;
(2) Contractual liability insuring the obligations assumed by CONTRACTOR in this Agreement; and
(3) Broad form property damage (including completed operations) Except with respect to bodily injury and property damage included within the products and completed operations hazards, the aggregate limits, where applicable, shall apply separately to CONTRACTOR'S work under the Contract.

B. One of the following forms is required:
(1) Comprehensive General Liability;
(2) Commercial General Liability (Occurrence); or
(3) Commercial General Liability (Claims Made).

C. If CONTRACTOR carries a Comprehensive General Liability policy, the limits of liability shall not be less than a Combined Single Limit for bodily injury, property damage, and Personal Injury Liability of:
One million dollars ($1,000,000) each occurrence
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Two million dollars ($2,000,000) aggregate
D. If CONTRACTOR carries a Commercial General Liability (Occurrence) policy:
(1) The limits of liability shall not be less than:
One million dollars ($1,000,000) each occurrence (combined single limit for bodily injury and property damage)
One million dollars ($1,000,000) for Products Completed Operations Two million dollars ($2,000,000) General Aggregate
(2) If the policy does not have an endorsement providing that the General Aggregate Limit applies separately, or if defense costs are included in the aggregate limits, then the required aggregate limits shall be two million dollars ($2,000,000).

E. Special Claims Made Policy Form Provisions:

CONTRACTOR shall not provide a Commercial General Liability (Claims Made) policy without the express prior written consent of COUNTY, which consent, if given, shall be subject to the following conditions:
(1) The limits of liability shall not be less than:
One million dollars ($1,000,000) each occurrence (combined single limit for bodily injury and property damage)
One million dollars ($1,000,000) aggregate for Products Completed Operations
Two million dollars ($2,000,000) General Aggregate
(2) The insurance coverage provided by CONTRACTOR shall contain language providing coverage up to one (1) year following the completion of the contract in order to provide insurance coverage for the hold harmless provisions herein if the policy is a claims-made policy.

Conformity of Coverages - If more than one policy is used to meet the required coverages, such as a separate umbrella policy, such policies shall be consistent with all other applicable policies used to meet these minimum requirements. For example, all policies shall be Occurrence Liability policies or all shall be Claims Made Liability policies, if approved by the County as noted above. In no cases shall the types of polices be different.

5. ENDORSEMENTS:

Each Comprehensive or Commercial General Liability policy shall be endorsed with the following specific language:
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A. "The County of Placer, its officers, agents, employees, and volunteers are to be covered as an additional insured for all liability arising out of the operations by or on behalf of the named insured in the performance of this Agreement." B. "The insurance provided by the Contractor, including any excess liability or umbrella form coverage, is primary coverage to the County of Placer with respect to any insurance or self-insurance programs maintained by the County of Placer and no insurance held or owned by the County of Placer shall be called upon to contribute to a loss."
C. “This policy shall not be changed without first giving thirty (30) days prior written notice and ten (10) days prior written notice of cancellation for non-payment of premium to the County of Placer.”

6. AUTOMOBILE LIABILITY INSURANCE:

Automobile Liability insurance covering bodily injury and property damage in an amount no less than one million dollars ($1,000,000) combined single limit for each occurrence.

Covered vehicles shall include owned, non-owned, and hired automobiles/trucks.

7. ADDITIONAL REQUIREMENTS:

Premium Payments - The insurance companies shall have no recourse against the COUNTY and funding agencies, its officers and employees or any of them for payment of any premiums or assessments under any policy issued by a mutual insurance company.

Policy Deductibles - The CONTRACTOR shall be responsible for all deductibles in all of the CONSULTANT’s insurance policies. The maximum amount of allowable deductible for insurance coverage required herein shall be $25,000.

CONTRACTOR’s Obligations - CONTRACTOR’s indemnity and other obligations shall not be limited by the foregoing insurance requirements and shall survive the expiration of this agreement.

Verification of Coverage - CONTRACTOR shall furnish the County with original certificates 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 CONTRACTOR’s obligation to provide them. The County reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.
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Material Breach - Failure of the CONTRACTOR to maintain the insurance required by this agreement, or to comply with any of the requirements of this section, shall constitute a material breach of the entire agreement.

Certificate Holder –Placer County subscribes to a service that monitors insurance certificates for compliance with the above requirements. The Certificate Holder on insurance certificates and related documents should read as follows:

County of Placer
c/o EXIGIS LLC
PO Box 4668 ECM #35050
New York, NY 10168-4668
Fax: 888-355-3599
Email: [email protected]
Upon initial award of a contract to your firm, Exigis will contact you with further instructions for providing insurance certificates which meet the terms of the contract.

Certificates which amend or alter the coverage during the term of the contract, including updated certificates due to policy renewal, should be sent directly to Exigis via fax or email as indicated above.
***SOLE PROPRIETER LANGUAGE:

Workers’ Compensation
CONTRACTOR represents they have no employees and, therefore, not required to have Workers’ Compensation coverage.

CONTRACTOR agrees they have no rights, entitlements or claim against COUNTY for any type of employment benefits or workers’ compensation or other programs afforded to COUNTY employees.
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105
Terms & Conditions
INVITATION FOR BIDS
GENERAL TERMS AND CONDITIONS
The following provisions are hereby made a part of this Invitation for Bids ("bid") by reference and attachment to the Invitation for Bids document. Any contract award made as the result of this bid shall be governed by these General Terms and Conditions. By submission of a bid, bidder does agree if the bid is accepted within 90 calendar days from the date of opening, to furnish to furnish the product(s) and/or service(s) pursuant to these conditions. In the event of a contract award pursuant to this bid, performance by the successful bidder of any or all of the services, or delivery of any or all of the products defined herein, shall constitute acceptance of all terms, conditions and requirements of the resulting agreement.

WARNING: It is the bidder’s responsibility to monitor the County’s website for possible addenda to this bid to inform him/herself of the most current specifications, terms, and conditions (see also Section 4 below), and to submit his/her bid in accordance with the original bid requirements and all addenda. All available bids and related addenda can be found at: https://placer.bidsandtenders.net. Failure of bidder to obtain this information shall not relieve him/her of the requirements contained therein. Additionally, failure of bidder to respond to any addenda, when required, may be cause for rejection of his/her bid.

1. GENERAL. These provisions are standard for all County contracts. The County may delete or modify any of these standard provisions for a particular contract by indicating a change in the special instructions to bidders or in the bid. Any bidder accepting a contract award as the result of this bid agrees that the provisions included within this Invitation for Bid shall prevail over any conflicting provision within any standard form contract of the bidder.

2. SUBMISSION OF BIDS. Bids shall be submitted to the Procurement Services Division either online, by using the Placer County EBid System, or in hard-copy form (see below for instructions). All bids must be submitted prior to the date and time specified in this solicitation. Bids shall be submitted by an employee who is authorized to commit his/her firm or organization to the provisions of the bid. Any exceptions to the specifications, terms, or conditions of this solicitation shall be clearly indicated by bidder.

SUBMISSION OF HARD-COPY BIDS. Bidders who wish to submit bids in hard-copy form in lieu of using the Placer County EBid System shall submit their bids to the Procurement Services Division, 2964 Richardson Drive, Auburn, California, 95603, between the hours of 8:00 am and 5:00 PM (Pacific), Monday through Friday (excluding County holidays). Hard-copy bids shall be submitted in a sealed envelope which clearly identifies the bid number, commodity, and closing date and time. Bids shall be submitted on the bid forms provided by the County, which may be downloaded from the EBid System or obtained from Procurement Services. Hard-copy bids must be signed by an authorized employee of the firm. The County shall not be responsible for bids delivered to a person/location other than that specified herein. Bids shall be in ink or typewritten and all changes and/or erasures shall be initialed and dated in ink. Any exceptions to the specifications, terms, or conditions of this solicitation shall be clearly indicated by bidder, without obliterating the original text or images contained herein.

WARNING: Late bids or unsigned bids shall not be accepted under any circumstances. Facsimile or telephone bids shall not be accepted.

3. AMENDMENTS TO THE BID. Any amendment to this bid is valid only if in writing and issued by the Placer County Procurement Services Division.

REQUESTS FOR CLARIFICATION/INFORMATION. Bidders are instructed to contact the Placer County Buyer/Contact Person(s) specifically identified in this bid for further clarification or information related to the specifications, terms, conditions, or evaluation of this bid. Information provided by other than the named contact person may be invalid, and responses which are submitted in accordance with such information may be declared non-responsive. Additionally, contacts made with other County staff in an attempt to circumvent or interfere with the County’s standard bidding and evaluation practices may be grounds for disqualification of the bidder. Questions should be submitted using the Question tool on the Bids&Tenders site. Questions submitted within four (4) County working days of the bid opening date may not be answered.

4. NON-COLLUSION. The bidder certifies that his bid is made without any previous understanding, agreement or connection with any person, firm or corporation making a bid for the same project and is in all respects fair, without outside control, collusion, fraud or otherwise illegal action.

5. CONFLICT OF INTEREST. Bidder states that no County officer or employee, nor any business entity in which they have an interest, has an interest in the bid awarded or has been employed or retained to solicit or aid in the procuring of the resulting contract, nor will any such person be employed in the performance of such contract.

6. AWARD. The contract may be awarded to the lowest responsible and responsive bidder complying with the provisions of the Invitation for Bid. In determining whether a bid is lowest and responsive, and the bidder responsible, the following may be considered by the County: a) Ability to perform the service required within the specified time; b) Reputation, judgment and experience; c) The quality of performance in previous contracts; d) Previous compliance with laws, as well as employment practices; e) Financial ability to perform the contract; f) The quality, availability and adaptability of the supplies or the contractual services to the particular use required; g) Ability to provide maintenance and service; h) Whether the bidder is in arrears to the County, in debt on contract, is a defaulter on surety to the County or whether the bidder’s taxes or assessments are delinquent; i) The resale value and life cycle costs of the items; j) Such other information as identified in the Purchasing Policy Manual having bearing on the decision to make the award. The award analysis will also include consideration for Local Vendor Preference (per Section 18 below) and any prompt pay discounts offered by the bidder (per Section 19 below). The County reserves the right to reject any and all bids and to waive any informality in bids received whenever such rejection or waiver is in the interest of the County. The County also reserves the right to reject the bid of a bidder who has previously failed to perform properly. The County may award bids by line item, category, or on an all-or-none basis.

7. MERCHANTABILITY. There shall be an implied warranty of merchantability and fitness for an intended use. Any bid submittals taking exception to this requirement may, at the County’s option, be considered non-responsive.

8. SAMPLES. Samples of items, when required, must be furnished free of expense to Placer County and if not destroyed by tests will, upon request, be returned at bidder’s expense. Samples of selected items may be retained for comparison.

9. MANUFACTURER’S NAME AND APPROVED EQUIVALENTS. Unless otherwise specified, manufacturer’s names, trade names, brand names, information and/or catalog numbers listed in a specification are intended only to identify the quality level desired. They are not intended to limit competition. The bidder may offer any equivalent product, which meets or exceeds the specifications. If bids are based on equivalent products, the bids must: 1) Indicate on the bid form the alternate manufacturer’s name and catalog number; 2) Include complete descriptive literature and/or specifications; 3) Include proof that the proposed equivalent shall meet the specifications. The County reserves the right to be the sole judge of what is equal and acceptable. If bidder fails to name a substitute, goods identical to the bid standard must be furnished.

10. INSURANCE AND INDEMNIFICATION. The awarded bidder may be required to provide proof of liability, automobile, and/or workers compensation insurance. If required, the minimum coverage requirements will be identified in the bidding documents. All costs of complying with the insurance requirements shall be included in your pricing. The selected firm shall provide complete and valid insurance certificates within ten (10) days of the County’s written request. Failure to provide the documents within the time stated may result in the rejection of the bid response and/or cancellation of the resulting contract or purchase order.

Unless indemnification requirements are stated otherwise in this solicitation, said requirements shall be as follows: The awarded bidder ("Contractor") hereby agrees to protect, defend, indemnify, and hold Placer County free and harmless from any and all losses, claims, liens, demands, and causes of action of every kind and character including, but not limited to the amounts of judgments, penalties, interest, court costs, legal fees, and all other expenses incurred by Placer County arising in favor of any party, including claims, liens, debts, personal injuries, death, or damages to property (including employees or property of the County) and without limitation by enumeration, all other claims or demands of every character occurring or any way incident to, in connection with or arising directly or indirectly out of, the contract or agreement. The Contractor agrees to investigate, handle, respond to, provide defense for, and defend any such claims, demand, or suit at the sole expense of the Contractor. Contractor also agrees to bear all other costs and expenses related thereto, even if the claim or claims alleged are groundless, false, or fraudulent. This provision is not intended to create any cause of action in favor of any third party against Contractor or the County or to enlarge in any way the Contractor’s liability but is intended solely to provide for indemnification of Placer County from liability for 106
damages or injuries to third persons or property arising from Contractor’s performance pursuant to the resulting contract or agreement.

11. FORCE MAJEURE. If an emergency or natural disaster causes delay or interferes with the use or delivery of the products/services described in this bid, deliveries may be suspended as long as needed to remove the cause or repair the damage. An emergency or natural disaster includes fire, flood, blizzard, strike, accident, consequences of foreign or domestic war, or any other cause beyond the control of the parties. The County reserves the right to acquire from other sources any products/services during any suspension of delivery.

12. TAXES. Placer County is exempt from Federal Excise Tax; an exemption certificate will be furnished upon request. Placer County is not exempt from California State sales/use taxes. All applicable State sales/use taxes will be added to the purchase order.

13. DELIVERY. All prices bid must be FOB Destination, unloaded inside and assembled unless otherwise indicated.

14. FIXED CONTRACT QUANTITIES. Purchase order(s) for full quantities will be issued to successful bidder(s) after notification of award and receipt of all required documents.

15. OPEN-END CONTRACT. No guarantee is expressed or implied as to the total quantity of commodities/services to be purchased under any open-end contract. Estimated quantities/bid ratio or discounts from manufacturer’s list price may be used for bid comparison. The County reserves the right to: issue purchase orders as and when required; or issue a contract for individual agencies or multiple County agencies; or any combination of the preceding. No delivery shall be made without a written order by the County, unless otherwise specifically provided for in the contract. If in a subsequent year the vendor offers to supply his goods and service for the same bid price, or in the event the supplier is willing to negotiate to the satisfaction of Placer County any justifiable price increase prior to the succeeding year’s contract renewal and if the service provided by the supplier was to the satisfaction of the County, the County of Placer reserves the right to extend the period of the resulting contract on a year-to-year basis. Alternatively, the bid solicitation may set forth specific renewal terms. Bidder certifies that prices charged to the County for non-listed commodities or no-fixed price items are equal to or less than those charged the bidder’s most favored customer for comparable quantities under similar terms and conditions.

16. TERMINATION OF CONTRACT. In the event of a material breach of the contractual obligations by the Contractor, the County may terminate the contract. At its sole discretion, the County may give the contractor an opportunity to cure the breach or to explain how the breach will be cured. The actual cure must be completed within no more than 10 working days from notification, or at minimum the contractor must provide the county within 10 working days from notification a written plan detailing how the contractor intends to cure the breach. If the contractor fails to cure the breach or if circumstances demand immediate action, the County will issue a notice of immediate termination.

Supplier Contracts may be terminated by the County without cause upon 30 calendar days’ written notice.

17. NON-APPROPRIATION. In the event that sufficient funds are not appropriated and budgeted for the payment of goods or services described herein, the agreement shall immediately terminate on the last day of the fiscal period for which appropriations were received or other amounts were available to pay the amounts due under the agreement, without penalty or expense to the County of any kind whatsoever, except that the County will be liable for payment of any unpaid invoices for goods or services which were delivered prior to the end of the last fiscal period for which appropriations were made.

18. RIGHTS AND REMEDIES OF COUNTY FOR DEFAULT. If any item or service furnished by the vendor fails to conform to bid specifications, or to the sample submitted by the vendor with his bid (if any), or if the vendor fails to deliver the items or perform any services required by the contract in the time and manner prescribed, the County may reject the products and/or services provided. Upon rejection, the vendor must promptly reclaim and remove any rejected items without expense to the County, and shall immediately replace all such rejected items with others conforming to such specifications or samples, and/or correct the service deficiency. If the vendor fails to do so, the County has the right to purchase in the open market a corresponding quantity of the rejected items, or have another firm provide the required service, and to deduct from any monies due the vendor the difference between the price named in the contract or purchase order and the actual cost to the County. If the vendor breaches the contract or purchase order, any loss or damage sustained by the County in procuring items which the vendor therein agreed to supply shall be borne and paid for by the vendor. The rights and remedies of the County identified above are in addition to any other rights and remedies provided by law or under the contract. In any legal proceeding brought to enforce the terms of the herein agreement, the prevailing party shall be entitled to an award of reasonable attorney’s fees and costs incurred as a result of enforcing the terms of this agreement.

19. LOCAL VENDOR PREFERENCE. A local preference credit of 5.0% for Placer County businesses will be permitted when evaluating bids for supplies, equipment, materials and services that are not part of a public project. Bidders claiming local vendor preference must submit an Affidavit of Eligibility with their bid, unless an authorized affidavit is already on file with Placer County Procurement. Preference criteria and affidavit forms are available on our website at: https://www.placer.ca.gov/1408/LocalVendor-Preference

20. INVOICES AND PAYMENT TERMS. Invoices are to be mailed to the County department specified on the resulting purchase order or contract. All invoices must include the purchase order or contract number. Failure to comply will result in delayed payments. The County will make payment on a Net 30-day basis unless a cash discount is allowed for payment within the time period specified by vendor. The payment term shall begin on the date the merchandise is inspected, delivered and accepted by the County, or on the date a correct invoice is received in the office specified in the order, whichever is later. Prompt payment discounts shall be considered earned if payment is postmarked or personally delivered within the prescribed term. For the purposes of this section, the beginning date described above shall be considered day zero for the purposes of counting days in the prescribed term. For the purposes of bid evaluation, the County will only consider discount periods of ten (10) days or more. LATE FEES: In accordance with Section 926.10 of the California Government Code, Placer County may pay interest at not more than the rate of 6% per annum on invoices which are unpaid 61 or more days beyond the “beginning date” or “day zero” as defined above. In cases where this policy may conflict with other terms provided by the supplier, this provision shall prevail.

21. LEGAL REQUIREMENTS. Federal, State, County and local ordinances, rules and regulations, and policies shall govern development, submittal and evaluation of bids and disputes about bids. Lack of knowledge by any bidder about applicable law is not a defense.

22. ASSIGNMENT. Any contract awarded shall not be assignable by the vendor without the express written approval of the County, and shall not become an asset in any bankruptcy, receivership or guardianship proceedings.

23. OTHER AGENCIES. The successful vendor shall agree to extend Placer County contract prices and terms to other governmental agencies. Any contract resulting from this requirement shall be executed by the successful vendor and the other agency. Placer County will not be a party to “other agency” contracts.

24. PROTEST AND APPEAL PROCESS. Any actual or prospective bidder or contractor who is aggrieved in connection with the solicitation or award of a contract may protest to the Director of Administrative Services in the manner prescribed by Section 10.0 of the Placer County Purchasing Policy. The protest shall be submitted in writing to the Director of Administrative Services within seven (7) County business days after such aggrieved person or company knows or should have known of the facts giving rise thereto.

25. RECYCLED PRODUCT PREFERENCE. A preference of 10% will be given to bids for products meeting the definition of recycled product cited in Public Contract Code Sections 22150 - 22154. In order to be granted this preference bidder shall provide statements and/or documentation as supporting evidence that the product(s) meets the definition.

26. PATENT INFRINGEMENT. Supplier shall indemnify and hold harmless County, its agents and employees, against and from any and all actions, suits, liabilities, prosecutions, penalties, settlements, losses, damages, costs, charges, attorney’s fees, and all other expenses which may arise directly or indirectly from any claim that any of the products supplied by supplier infringes any patent, copyright, trade secret, or other property right.

27. VENDOR FINANCIAL STABILITY. If a vendor is currently involved in an ongoing bankruptcy as a debtor, or in a reorganization, liquidation, or dissolution proceeding, or if a trustee or receiver has been appointed over all or a substantial portion of the property of the vendor under federal bankruptcy law or any state insolvency law, the vendor must provide the County with that information as part of its bid/proposal. In accordance with Section 3.12(g) of the Placer County Purchasing Policy Manual and paragraph 8.e. of this document, the County may use information regarding a bidder’s financial responsibility when making an award determination.

The County reserves the right to take any action available if it discovers a failure to provide such information to the County, including but not limited to, a determination that the vendor should be declared non-responsible and/or non-responsive, and suspension or debarment of the vendor, in accordance with the processes defined in the Placer County Purchasing Policy Manual.
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By submitting a bid/proposal in response to this solicitation, the vendor agrees that if, during the term of any contract it has with the County, it becomes involved as a debtor in a bankruptcy proceeding, or becomes involved in a reorganization, liquidation, or dissolution proceeding, or if a trustee or receiver has been appointed over all or a substantial portion of the property of the vendor under federal bankruptcy law or any state insolvency law, the vendor will immediately provide the County with a written notice to that effect and that it will provide the County any relevant information requested in order for the County to determine whether the vendor has the financial ability to meet its obligations to the County.
- - End of General Terms and Conditions - -
07/25/2019
I acknowledge that I have the authority to bind the Company and submit this bid on behalf of the Company. - Steve Adair, Regional Sales Manager The Applicant declares that there is an actual or potential Conflict of Interest relating to the preparation of its submission, and/or the Applicant foresees an actual or potential Conflict of Interest in performing the contractual obligations contemplated in the bid. Yes No The Bidder acknowledges and agrees that the addendum/addenda below form part of the Bid Document Please check the box in the column "I have reviewed this addendum" below to acknowledge each of the addenda.

File Name
I have reviewed the
below addendum and
attachments (if
applicable)
Pages
There have not been any addenda issued for this bid.
108
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: September 23,
2025
Agenda Item #:7
Agenda Item: Participation in National Opioid Litigation Settlements with Purdue and Secondary Manufacturers and Appropriation of Settlement Funds
Executive Summary: The City has joined three national opioid litigation settlements since 2021.

Recently, the City was notified of an opportunity to participate in two new nationwide settlements, one involving Defendants Purdue and the Sackler Family ("Purdue Settlement"), and another involving the eight opioid manufacturers Alvogen, Amneal, Apotex, Hikma, Indivior, Mylan, Sun, and Zydus ("Secondary Manufacturers Settlements"). If the City decides to opt in to these settlements, the City will receive a maximum of $198,796.70 over 16 years from the Purdue Settlement, and a maximum of $40,812.91 over 10 years from the Secondary Manufacturers Settlements. Like the funds from the previous national opioid litigation settlements, these funds will be used for allowable opioid abatement activities in support of the Cityâ€™s Reimbursement Agreement with Barton Healthcare System and the Police Departmentâ€™s South Tahoe Alternative Collaborative Services (STACS) program. If the City decides not to be a participant in the settlements, the City will not receive the settlement funds but would retain the ability to pursue its own litigation against the Defendants in the future if desired.

Requested Action / Suggested Motions: Pass a Resolution Approving Participation in National Opioid Litigation Settlement with Purdue and the Sackler Family, and Litigation Settlements with Secondary Opioid Manufacturers Alvogen, Amneal, Apotex, Hikma, Indivior, Mylan, Sun and Zydus, and Accepting and Appropriating Settlement Funds
Responsible Staff Member: Mark Avila, Paralegal
Reviewed and Approved By: Heather Stroud, City Attorney Susan Blankenship, City Clerk Olga Tikhomirova, Director of Finance
Attachments:
01-Staff Report- Opioid Settlement Purdue Sackler.docx
02-Resolution.docx
03 - Settlement Agreement with Purdue and the Sackler Family. (Exh. A to Reso)pdf 04- Settlement Agreement with Secondary Manufacturers (Exh. B to Reso).pdf 05- C-239-2023 Reimbursement Agreement with Barton Health.pdf 109
Council Agenda Report- September 23, 2025 Page 1 of 3
City of South Lake Tahoe
Report to City Council
Meeting Date: September 23, 2025
Title: Participation in National Opioid Litigation Settlements with Purdue, and Secondary Manufacturers and Appropriation of Settlement Funds
Location: Citywide
Responsible Staff Member: Mark Avila, Paralegal (530) 542-6046 Background:

On December 7, 2021, City Council adopted Resolution No. 2021-105 which approved the City’s participation in the National Opioid Litigation Settlement (Distributors and Janssen). On September 7, 2022, City Council adopted Resolution No. 2022-112 to accept and appropriate the settlement funds. The $26 Billion settlement consisted of agreements with opioid distributors McKesson, Cardinal Health, and Amerisource Bergen and opioid manufacturer Janssen. On April 6, 2023, City adopted Resolution No. 2023-030 to join a second round of nationwide settlements involving Teva, Allergan, CVS, Walgreens, and Walmart. On August 13, 2024, the City Council adopted Resolution No. 2024-078 to join a third nationwide settlement involving pharmacy chain Kroger.

Recently, the City was notified of an opportunity to participate in two new nationwide settlements, one involving Defendants Purdue and the Sackler Family (“Purdue Settlement”), and another involving the eight opioid manufacturers Alvogen, Amneal, Apotex, Hikma, Indivior, Mylan, Sun, and Zydus (“Secondary Manufacturers Settlements”). Each of the opioid manufacturers have executed their own settlement agreement with their own remediation payment schedule. Like the previous nationwide settlements, the Purdue and Secondary Manufacturer Settlements will cover all states, counties, and cities, including those like the City of South Lake Tahoe who are not parties to the litigation.

Purdue will pay $3.09 Billion over a 16-year period. Under the terms of the settlements, California is slated to receive up to 9.67 percent of the total amount, or up to approximately $299 million.

Eighty-five percent of the abatement funds will go to eligible counties and cities over 10,000 in population based on the 2020 census, whether or not they have filed a lawsuit. Settlement funds distributed to cities and counties may be used only for approved abatement activities.

The eight opioid manufacturers included in the Secondary Manufacturers Settlements will pay a combined total of approximately $618 Million in the form of annual payments over varying payment schedules lasting from one to ten years. Under the term of the settlements, California is slated to receive up to 9.92 percent of the total amount, or up to approximately $61 Million.

Eighty-five percent of the combined abatement funds will go to eligible counties and cities over 10,000 in population based on the 2020 census, whether or not they have filed a lawsuit. 110
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Settlement funds distributed to cities and counties may be used only for approved abatement activities.

Issue and Discussion:

In both the Purdue and Secondary Manufacturer Settlements, The City, as a non-litigating entity, has two options: (1) Opt in to the settlements; or (2) Do not opt in.

If the City opts in to either or both of these settlements, it must release its claims against the Defendants. The City would have the ability to either receive the settlement funds directly or have them allocated to El Dorado County, and can change the allocation over time by notifying the Settlement Fund Administrator at least 60 days prior to each annual distribution. The funds may be used only for approved opioid abatement activities such as opioid overdose training for first responders, recovery programs, and opioid prevention outreach (see Exhibit E to the Purdue and Second Manufacturer Settlements Agreements, attached). Additionally, at least 50 percent of the funds received must be used for High Impact Abatement Activities, which are: (1) the provision of matching funds or operation costs for substance abuse disorder facilities; (2) creating new or expanded substance use disorder treatment infrastructure; (3) addressing the needs of vulnerable populations including homeless individuals and people of color who are disproportionately impacted by substance use disorder; (4) diversion from the justice system of people with substance use disorder into treatment programs including first responder training and restorative justice programs; (5) interventions to prevent drug addition in vulnerable youth; and (6) the purchase of naxalone for distribution and efforts to expand access to naxalone for opioid overdose reversals. The City is responsible for annual reporting to the State of directly distributed funds.

Like the funds from the previous settlements, these funds will be used for allowable opioid abatement activities in support of the City’s Reimbursement Agreement with Barton Healthcare System and the Police Department’s South Tahoe Alternative Collaborative Services (STACS) program.

Staff recommends that City Council delegate authority to the City Manager and City Attorney to determine whether to accept direct distribution on an annual basis and to negotiate any agreement with El Dorado County that may be desirable if part or all of the City’s distribution is determined to be appropriate to go to the County for provision of these services. The City Manager and City Attorney intend to select direct distribution of the funds for year one.

The allocation model for the distribution of funds allocated to California distributes funds based on a city’s population and available federal data on opioid use, disorder, overdose deaths, and opioid shipments within a city. The City of South Lake Tahoe’s “weighted allocation percentage” in both the Purdue Settlement and the Secondary Manufacturers Settlements is 0.0665456 percent.

Although the funds allocated to the City will depend on the participation level among cities and counties in California, it is anticipated that based on this weighted allocation percentage and the amount of funds the City has received thus far under the Distributors and Janssen settlement using the same formula, the City would receive a maximum of $40,812.91 over 10 years from all Secondary Manufacturer Settlements combined, and a maximum of $198,796.70 over 16 years from the Purdue Settlement.

By not opting in, the City would not be a participant in the settlement but would retain the ability to pursue its own litigation against the Defendants in the future if desired. If the City does not opt in, then the funds otherwise allocated to the City would go to the State. 111
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More information about these national opioid settlements and the California allocation is available on the Attorney General’s website at https://oag.ca.gov/opioids.

Financial Implications:

The proposed resolution would authorize and direct the City Attorney to execute the settlements and direct the Director of Finance to accept and appropriate these funds into Account No. 290- 02110-36294 (Opioid Settlement Proceeds). The total distribution over 10 years from all Secondary Manufacturer Settlements is estimated to be $40,812.91. The total distribution over 16 years from the Purdue Settlement is estimated to be $198,796.70.

Environmental Considerations:

This action is not a “project” subject to review under the California Environmental Quality Act (CEQA) under CEQA Guidelines section 15378(b)(4) (the creation of government funding mechanisms or other government fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment).

Policy Implications:

This action is generally consistent with City of South Lake Tahoe Strategic Plan 2025-2030 Priority 3.(Ensure Public Safety).
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Resolution 2025-XXX September 23, 2025 Page 1 of 3
Resolution 2025-XXX
Adopted by the City of South Lake Tahoe
City Council
September 23, 2025
Approving Participation in National Opioid Litigation Settlement with Purdue and the Sackler Family, and Litigation Settlements with Secondary Opioid Manufacturers (Alvogen, Amneal, Apotex, Hikma, Indivior, Mylan, Sun, and Zydus), and Accepting and Appropriating Settlement Funds

BACKGROUND
A. On December 7, 2021, City Council adopted Resolution No. 2021-105, which approved the City’s participation in the National Opioid Litigation Settlement with opioid distributors McKesson, Cardinal Health, and Amerisource Bergen and opioid manufacturer Janssen.

Under the terms of the settlement, $21 Billion will be paid by the opioid distributors over an 18-year period and $5 Billion will be paid by Janssen over a 9-year period.

B. On September 7, 2022, City Council adopted Resolution No. 2022-112 to accept and appropriate the funds from the settlement with distributors and Janssen.

C. On April 6, 2023, the City Council Adopted Resolution No. 2023-030 authorizing participation in settlements with Teva, Allergan, CVS, Walgreens, and Walmart. Under the terms of the settlements, $18.1 Billion would be paid over a 15-year period.

D. On August 13, 2024, the City Council adopted Resolution No. 2024-078 authorizing participation in a settlement with the pharmacy chain Kroger.

E. Recently, the City was notified of an opportunity to participate in two additional nationwide settlements reached with Purdue and the Sackler family (“Purdue Settlement”), and a group of eight opioid manufacturers, Alvogen, Amneal, Apotex, Hikma, Indivior, Mylan, Sun, and Zydus (“Secondary Manufacturers Settlement”).

F. While the City is not a party to either litigation, it may opt in to the settlements and receive the benefits of the settlements in exchange for releasing its potential claims against the Defendants.

G. The Purdue Settlement and the Secondary Manufacturers Settlement are completely independent, and must be opted into separately. The deadline to join the Purdue Settlement is September 30, 2025. The deadline to join the Secondary Manufacturers Settlement is October 8, 2025. The City can choose to join one, both, or neither of the settlements.

H. The more cities with populations greater than 10,000, such as the City, opt in to the settlements, the more funds will be received under the incentive structure of the settlements. 113
Resolution 2025-XXX September 23, 2025 Page 2 of 3
I. Opting into the Purdue Settlement will enable the City to receive funds, estimated to be a maximum of $198,796.70 over 16 years, which can be used to mitigate the impacts of opioid use disorder in the community.

J. Opting into the Secondary Manufacturers Settlement will enable the City to receive funds, estimated to be a maximum of $40,812.91 over 10 years, which can be used to mitigate the impacts of opioid use disorder in the community.

K. The City intends to use the settlement funds in support of the Reimbursement Agreement with Barton Healthcare System and the Police Department’s South Tahoe Area Collaborative Services (STACS) program.

BASED ON THE FACTS SET FORTH IN THE BACKGROUND, BE IT RESOLVED, that the City Council of the City of South Lake Tahoe:

1. Approves the execution of the Subdivision Participation and Release Form and California State-Subdivision Agreement with Purdue and the Sackler family (attached hereto as Exhibit “A”).

2. Approves the execution of the Secondary Manufacturer’s Combined Subdivision Participation and Release Form and the California State-Subdivision Agreements with each of the Secondary Manufacturers (attached hereto as Exhibit “B”)

3. Delegates to the City Manager and City Attorney, on an annual basis, to select direct distribution of some or all of the City’s settlement funds, or to select distribution of some or all of the City’s settlement funds to El Dorado County.

4. Delegates to the City Manager and City Attorney authority to negotiate an agreement with El Dorado County for use of the City’s settlement funds to provide County services in the City, to be brought back to City Council prior to execution.

5. Authorizes and directs the Finance Director to accept and appropriate these settlement funds into Account No. 290-02110-36294 (revenue) and 290-02210-42025 (expenditures).

Adopted by the City of South Lake Tahoe City Council on September 23, 2025, by the following vote:

Yes:

No:

Absent:

Abstain:
________________________ Date:_________
Tamara Wallace, Mayor
Attest:
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Resolution 2025-XXX September 23, 2025 Page 3 of 3
________________________
Susan Blankenship, City Clerk
The presence of electronic signature certifies that the foregoing is a true and correct copy as approved by the South Lake Tahoe City Council.
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New National Opioids Settlement: Purdue
Opioids Implementation Administrator
[email protected]
South Lake Tahoe city, CA
Reference Number: CL-1730816
TO LOCAL POLITICAL SUBDIVISIONS:

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

Deadline: September 30, 2025
A new proposed national opioids settlement has been reached with Purdue (and certain of its affiliates) and the Sackler family. This Participation Package is a followup communication to the Notice of New National Opioids Settlement recently received electronically by your subdivision.

The proposed settlement is being implemented in connection with Purdue’s bankruptcy proceedings, and consists of, among other things, a settlement of Purdue’s claims against the Sacklers and certain other parties (referred to as the “Purdue Estate Settlement”), and settlements of direct claims against the Sacklers held by States, local governments and other creditors (collectively, the “Purdue Direct Settlement”, and together with the Estate Settlement, the “Purdue Settlement”). The Purdue Direct Settlement for States and local governments is documented in the Governmental Entity and Shareholder Direct Settlement Agreement.

You are receiving this Participation Package because all eligible States and territories, including California, are participating in the Purdue Direct Settlement.

This electronic envelope contains:
 The Participation Form for the Purdue Direct Settlement, including a release of any claims; and
 The Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds - Purdue/Sackler Settlement (“California StateSubdivision Agreement”), which governs the allocation, distribution, and use of abatement funds from the Purdue Settlement paid to California.

The Participation Form and California State-Subdivision Agreement must be executed, without alteration, and submitted on or before September 30, 2025, in order for your subdivision to be considered for initial participation calculations and payment eligibility under the Purdue Direct Settlement.

Based upon subdivision participation forms received on or before September 30, 2025, the subdivision participation rate will be used to determine whether Docusign Envelope ID: 9B0CECF2-9C0A-40C6-935C-A761A5E9AE3E 116
participation is sufficient for the Purdue Settlement to move forward and whether a state earns its maximum potential payment under the Purdue Direct Settlement. If the Purdue Settlement moves forward and goes effective, your release will become effective. If the Purdue Settlement does not move forward, that release will not become effective.

Any subdivision that does not participate in the Purdue Direct Settlement cannot directly share in the Purdue Direct Settlement funds, even if other subdivisions in the state are participating and sharing in those Purdue Direct 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 Purdue Settlement funds by participating; decisions on how Purdue 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 Purdue Settlement with your counsel, your Attorney General’s Office, and other contacts within your state.

The State of California, along with a group of cities and counties, negotiated the California State-Subdivision Agreement, which governs the allocation, distribution, and use of abatement funds from the Purdue Settlement paid to California. The allocation of abatement funds will be similar to the allocation in the prior opioids settlements, where the vast majority (85%) of abatement funds is expected to go to local governments.

Information and documents regarding the Purdue Settlement, including a complete copy of the Governmental Entity and Shareholder Direct Settlement Agreement, and how it is being implemented in your state and how funds will be allocated within your state can be found on the national settlement website at https://nationalopioidsettlement.com/purdue-sacklers-settlements/. This website will be supplemented as additional documents are created.

How to return signed forms:

There are three methods for returning the executed Participation Form and any supporting documentation to the Implementation Administrator:
(1)Electronic Signature via DocuSign: Executing the Participation Form and California State-Subdivision Agreement electronically through DocuSign will return the signed form and agreement to the Implementation Administrator and associate your form and agreement with your subdivision’s records.

Electronic signature is the most efficient method for returning the Participation Form and California State-Subdivision Agreement, 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 Docusign Envelope ID: 9B0CECF2-9C0A-40C6-935C-A761A5E9AE3E 117
all fields. As with electronic signature, returning a manually signed Participation Form and California State-Subdivision Agreement via DocuSign will associate your signed form and agreement with your subdivision’s records. (3)Manual Signature returned via electronic mail: If your subdivision is unable to return an executed Participation Form and California State-Subdivision Agreement using DocuSign, the signed Participation Form and California StateSubdivision Agreement 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 Form – [Subdivision Name, Subdivision State] – [Reference ID].

Detailed instructions on how to sign and return the Participation Form and California State-Subdivision Agreement, including changing the authorized signer, can be found at https://nationalopioidsettlement.com/purdue-sacklers-settlements/. You may also contact [email protected].

YOU MUST PARTICIPATE IN THE PURDUE DIRECT SETTLEMENT BY RETURNING YOUR PARTICIPATION FORM AND CALIFORNIA STATESUBDIVISION AGREEMENT IN ORDER TO RECEIVE THE BENEFITS OF THE PURDUE SETTLEMENT.

Please note that this is NOT a solicitation or a request for subdivisions to submit votes on the Purdue bankruptcy plan. This settlement package only pertains to a decision to participate in the Purdue Direct Settlement. If you receive a package to vote on the plan you should follow the applicable instructions for voting. PLEASE NOTE THAT VOTING ON THE PLAN IS SEPARATE FROM PARTICIPATION IN THE PURDUE DIRECT SETTLEMENT.

The sign-on period for subdivisions ends on September 30, 2025.

If you have any questions about executing the Participation Form, please contact your counsel, the Implementation Administrator at
[email protected], or the California Attorney General’s Office at [email protected].

Thank you,
Implementation Administrator for the Purdue Direct Settlement The Implementation Administrator is retained to provide the settlement notice required by the Purdue Direct Settlement to manage the collection of the participation forms for it.

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EXHIBIT K
Subdivision Participation and Release Form
Governmental Entity: South Lake Tahoe city State: CA
Authorized Signatory: /officialname_purdue/
Address 1: /address1_purdue/
Address 2: /address2_purdue/
City, State, Zip: /cit_pd/ /state_pd/ /zi_pd/
Phone: /phone_purdue/
Email: /email_purdue/
The governmental entity identified above (“Governmental Entity”), in order to obtain and in consideration for the benefits provided to the Governmental Entity pursuant to that certain Governmental Entity & Shareholder Direct Settlement Agreement accompanying this participation form (the “Agreement”)1, and acting through the undersigned authorized official, hereby elects to participate in the Agreement, grant the releases set forth below, and agrees as follows.

1. The Governmental Entity is aware of and has reviewed the Agreement, and agrees that by executing this Participation and Release Form, the Governmental Entity elects to participate in the Agreement and become a Participating Subdivision as provided therein.

2. The Governmental Entity shall promptly after the Effective Date, and prior to the filing of the Consent Judgment, dismiss with prejudice any Shareholder Released Claims and Released Claims that it has filed. With respect to any Shareholder Released Claims and 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 Agreement pertaining to Participating Subdivisions as defined therein.

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

5. The Governmental Entity agrees to use any monies it receives through the Agreement solely for the purposes provided therein.

6. The Governmental Entity submits to the jurisdiction of the court in the Governmental Entity’s state where the Consent Judgment is filed for purposes limited to that court’s role as and to the extent provided in, and for resolving disputes to the extent provided in, the 1 Capitalized terms used in this Exhibit K but not otherwise defined in this Exhibit K have the meanings given to them in the Agreement or, if not defined in the Agreement, the Master Settlement Agreement.

K-1
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Agreement. 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 Agreement.

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

8. The Governmental Entity, as a Participating Subdivision, hereby becomes a Releasor for all purposes in the Agreement, including without limitation all provisions of Article 10 (Release), and along with all departments, agencies, divisions, boards, commissions, districts, instrumentalities of any kind and attorneys, and any person in his or her 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 Subdivision Releasor, to the maximum extent of its authority, for good and valuable consideration, the adequacy of which is hereby confirmed, the Shareholder Released Parties and Released Parties are, as of the Effective Date, hereby released and forever discharged by the Governmental Entity and its Subdivision Releasors from: any and all Causes of Action, including, without limitation, any Estate Cause of Action and any claims that the Governmental Entity or its Subdivision Releasors would have presently or in the future been legally entitled to assert in its own right (whether individually or collectively), notwithstanding section 1542 of the California Civil Code or any law of any jurisdiction that is similar, comparable or equivalent thereto (which shall conclusively be deemed waived), whether existing or hereinafter arising, in each case, (A) directly or indirectly based on, arising out of, or in any way relating to or concerning, in whole or in part, (i) the Debtors, as such Entities existed prior to or after the Petition Date, and their Affiliates, (ii) the Estates, (iii) the Chapter 11 Cases, or (iv) Covered Conduct and (B) as to which any conduct, omission or liability of any Debtor or any Estate is the legal cause or is otherwise a legally relevant factor (each such release, as it pertains to the Shareholder Released Parties, the “Shareholder Released Claims”, and as it pertains to the Released Parties other than the Shareholder Released Parties, the “Released Claims”). For the avoidance of doubt and without limiting the foregoing: the Shareholder Released Claims and Released Claims include any Cause of Action that has been or may be asserted against any Shareholder Released Party or Released Party by the Governmental Entity or its Subdivision Releasors (whether or not such party has brought such action or proceeding) in any federal, state, or local action or proceeding (whether judicial, arbitral, or administrative) (A) directly or indirectly based on, arising out of, or in any way relating to or concerning, in whole or in part, (i) the Debtors, as such Entities existed prior to or after the Petition Date, and their Affiliates, (ii) the Estates, (iii) the Chapter 11 Cases, or (iv) Covered Conduct and (B) as to which any conduct, omission or liability of any Debtor or any Estate is the legal cause or is otherwise a legally relevant factor.

9. 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 Shareholder Released Claims or Released Claims against any Shareholder Released Party or Released Party in any forum whatsoever, subject in all respects to Section 9.02 of the Master Settlement Agreement. The releases provided for herein (including the term “Shareholder Released K-2
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Claims” and “Released Claims”) are intended by the Governmental Entity and its Subdivision Releasors to be broad and shall be interpreted so as to give the Shareholder Released Parties and Released Parties the broadest possible release of any liability relating in any way to Shareholder Released Claims and Released Claims and extend to the full extent of the power of the Governmental Entity to release claims. The Agreement shall be a complete bar to any Shareholder Released Claim and Released Claims.

10. To the maximum extent of the Governmental Entity’s power, the Shareholder Released Parties and the Released Parties are, as of the Effective Date, hereby released and discharged from any and all Shareholder Released Claims and Released Claims of the Subdivision Releasors.

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

12. In connection with the releases provided for in the Agreement, 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 Shareholder Released Claims or such other Claims released pursuant to this release, but each Governmental Entity hereby expressly waives and fully, finally, and forever settles, releases and discharges, upon the Effective Date, any and all Shareholder Released Claims or such other Claims released pursuant to this release 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 Agreement.

13. Nothing herein is intended to modify in any way the terms of the Agreement, to which Governmental Entity hereby agrees. To the extent any portion of this Participation and Release Form not relating to the release of, or bar against, liability is interpreted differently from the Agreement in any respect, the Agreement controls.

14. Notwithstanding anything to the contrary herein or in the Agreement, (x) nothing herein shall (A) release any Excluded Claims or (B) be construed to impair in any way the rights and obligations of any Person under the Agreement; and (y) the Releases set forth herein shall be subject to being deemed void to the extent set forth in Section 9.02 of the Master Settlement Agreement.

K-3
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I have all necessary power and authorization to execute this Participation and Release Form on behalf of the Governmental Entity.

Signature: /signer_1_purdue/
Name: /name_1_purdue/
Title: /title_1_purdue/
Date: /date_1_purdue/
K-4
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1 Proposed California State-Subdivision Agreement
Regarding Distribution and Use of Settlement Funds
Purdue/Sackler Settlement

1. Introduction
The State of California1 and certain of its cities and counties have reached this proposed agreement (the “California Purdue/Sackler State-Subdivision Agreement” or the “Agreement”) to govern the payments made to California in In re: Purdue Pharma L.P., et al, Case No. 19- 23649, pending in the United States Bankruptcy Court, Southern District of New York (the “Purdue Bankruptcy Matter”) and pursuant to the related settlement with the Sacklers.

This Agreement is proposed to govern the allocation, distribution, and use of payments, including the Statewide Payment Amounts, consisting of Base Payments and Incentive Payments, and Estate Distributions, paid to California pursuant to the Governmental Entity & Shareholder Direct Settlement Agreement (“GESA”), the Master Settlement Agreement (“MSA”), the Thirteenth Amended Joint Chapter 11 Plan of Reorganization of Purdue Pharma L.P. and its Affiliated Debtors (the “Plan”), and the Governmental Remediation Trust Agreement (“GRTA”), and any revisions thereto (collectively, the “Governing Documents”), filed in the Purdue Bankruptcy Matter.

For the avoidance of doubt, this Agreement does not apply to payments of attorneys’ fees and costs made to California, including any payments to California from the Local Government Costs and Expenses Fund and the State Expenses Fund and payments pursuant to Sections

9.01, 9.02, and 9.03 and Exhibit R of the GESA and Sections 5.9(a) and 5.9(b) of the Plan, unless otherwise noted.

Pursuant to Exhibit O, paragraph 4, of the GESA, acceptance of this California State-Subdivision Agreement is a requirement to be an Initial Participating Subdivision.

2. Definitions
a) CA Participating Subdivision means a General Purpose Government that is a Participating Subdivision and also (a) a Plaintiff Subdivision; (b) a Primary Subdivision; and/or (c) a Non-Litigating Threshold Subdivision. For the avoidance of doubt, eligible CA Participating Subdivisions are those California Subdivisions listed in Exhibits C (excluding Litigating Special Districts), I, and/or W to the GESA. b) CA Litigating Special District means a Litigating Special District located in California. For the avoidance of doubt, CA Litigating Special District does not include School Districts and certain Health and Hospital Special Districts that fall under a separate creditor group in the Purdue Bankruptcy Plan. 1 For purposes of clarity, use of the term “California” refers to the geographic territory of California and the state and its local governments therein. The term “State” or “State of California” refers to the State of California as a governmental unit.

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2 c) 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. d) Opioid Defendant means any defendant (including but not limited to Alvogen, Inc.

Amneal Pharmaceuticals LLC; Apotex Corp., Hikma Pharmaceuticals USA Inc. f/k/a West-Ward Pharmaceuticals Corp.; Indivior Inc.; Viatris Inc. a/k/a Mylan N.V.; Sun Pharmaceutical Industries, Inc.; Zydus Pharmaceuticals (USA) Inc.; Kroger Co., 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., Cencora, Inc. f/k/a AmerisourceBergen Corporation, McKesson Corporation, Dr.

Richard S. Sackler, Beverly Sackler, Jonathan Sackler, David Sackler, Marianna Sackler, Theresa Sackler, Ilene Sackler Lefcourt, Dr. Kathe Sackler, and Mortimer D.A. Sackler) 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 Governing Documents, as well as applicable law, and the Governing Documents govern over any inconsistent provision of this California Purdue/Sackler State-Subdivision Agreement. Terms not otherwise defined herein shall have the same meaning as in the Governing Documents.

All payments made to the State of California and CA Participating Subdivisions subject to this Agreement will be used for Opioid Remediation, except as allowed by Section 5.02(b) of the GESA and Section 4.01(f)(ii) of the MSA.

This Agreement does not apply to funds received by California for attorneys’ fees and cost, including payments from the Local Government Costs and Expenses Fund or the State Expenses Fund, unless otherwise noted.

4. State Allocation
Funds allocated to California shall be combined pursuant to this 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 payments to California subject to this Agreement will be allocated to the State and used by the State for future Opioid Remediation.

Docusign Envelope ID: 9B0CECF2-9C0A-40C6-935C-A761A5E9AE3E 124
3 B. CA Abatement Accounts Fund
i. Allocation of CA Abatement Accounts Funds
a) Seventy percent of the payments to California subject to this Agreement 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 (except those that are Plaintiff Subdivisions) 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 Governing Documents and this 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 the county is a CA Participating Subdivision; provided, however, that if a city currently receives direct payment of its share of funds in the National Opioids Settlement with Distributors Cencora, Inc. (f/k/a AmerisourceBergenCorporation), Cardinal Health, Inc., and McKesson Corporation (the “Distributors Settlement”), that city’s Local Allocation amount will be paid directly to the city. A Local Allocation share allocated to a city but paid to a county is not required to be spent exclusively for abatement activities in that city, but will become part of the county’s share of the CA Abatement Accounts Funds, which will be used in accordance with Section 4.B.ii (Use of CA Abatement Accounts Funds). 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 Administrator at least 60 days prior to a Payment Date. e) The State will receive the Local Allocation share of any payment that is attributable to a county or city that is eligible to become a CA Participating Subdivision, but has not, for a particular payment, 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 Governing Documents and this Docusign Envelope ID: 9B0CECF2-9C0A-40C6-935C-A761A5E9AE3E 125
4 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. 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 GESA.
b) In addition to this requirement, no less than 50% of the funds received by a CA Participating Subdivision from the CA 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;
(5) interventions to prevent drug addiction in vulnerable youth, including but not limited to, youth in foster care, juvenile justice-impacted youth, youth experiencing adversities related to socioeconomic status, and unhoused youth; and/or (6) the purchase of naloxone for distribution and efforts to expand access to naloxone for opioid overdose reversals.
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 Governing Documents 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 Governing Documents and this Agreement, a county and Docusign Envelope ID: 9B0CECF2-9C0A-40C6-935C-A761A5E9AE3E 126
5 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 funds pursuant to the Purdue Bankruptcy Plan and related Sackler settlement 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 Governing Documents and this Agreement. b) If DHCS determines that a CA Participating Subdivision’s use of CA Abatement Accounts Funds is inconsistent with the Governing Documents or this 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 against the Subdivision in the court where the State has filed its Consent Judgment to resolve the concern or otherwise enforce the requirements of the Governing Documents or this 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 payments to California subject to this Agreement 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 Governing Documents and this Agreement, to fund future Opioid Remediation and reimburse past opioid-related expenses, which may include fees and expenses related to litigation.

Docusign Envelope ID: 9B0CECF2-9C0A-40C6-935C-A761A5E9AE3E 127
6 However, in no event shall more than one-third (5% out of the 15%) be used for litigation-related fees and expenses.

D. Provision for State Back-Stop Agreement
On August 6, 2021, Judge Dan Polster of the U.S. District Court, Northern District of Ohio, Eastern Division, issued an order (ECF Docket Number 3814) (“MDL Fees Order”) in the National Prescription Opiate Litigation (MDL No. 2804) “cap[ping] all applicable contingent fee agreements at 15%.” Private counsel representing Plaintiff Subdivisions should seek its contingency fees and costs from the Local Government Costs and Expenses Fund pursuant to the Governing Documents, and if applicable, the Attorney Fee Fund or Cost Funds under the settlement agreements with other Opioid Defendants.

A Plaintiff Subdivision may separately agree to use up to one-third (5% out of the 15%) of 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 of the GESA and the MDL Fees Order, so long as: (1) such payments, together with any payments to contingency-fee counsel from the Local Government Costs and Expenses Fund related to such Plaintiff Subdivision, do not exceed 15% of a Plaintiff Subdivision’s total gross recovery under this Agreement; and (2) Plaintiff Subdivision certifies that any payments made under a State Back-Stop Agreement will be made in accordance with the 95% Opioid Abatement use requirements under Section 5.02(a) of the GESA and Section 4.01(f)(i) of the MSA. 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 Local Government Costs and Expenses Fund funded pursuant to the Governing Documents. 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 2 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 2. The California Office of the Attorney General will also consider requests from Plaintiff Subdivisions to execute and enter into agreements presented in other forms.

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

Docusign Envelope ID: 9B0CECF2-9C0A-40C6-935C-A761A5E9AE3E 128
7 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 Purdue Bankruptcy Plan and related Sackler 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 Purdue Bankruptcy Plan and related Sackler settlement have been used in compliance with the Governing Documents and this Agreement. The report will be in a form reasonably determined by DHCS. Prior to specifying the form of the report DHCS will confer with representatives of the Plaintiff Subdivisions.
c) The State and all CA Participating Subdivisions receiving CA Abatement Accounts Funds will track all deposits and expenditures. Each such subdivision is responsible solely for the CA Abatement Accounts Funds it receives. A county is not responsible for oversight, reporting, or monitoring of CA Abatement Accounts Funds received by a city within that county that receives direct payment. Unless otherwise exempt, Subdivisions’ expenditures and uses of CA Abatement Accounts Funds and other payments 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 Governing Documents and this 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 5.02(b) of the GESA and Section 4.01(f)(ii) of the MSA, such information must also be reported to the Settlement Administrator and Sackler Parties’ Representative.
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.

Docusign Envelope ID: 9B0CECF2-9C0A-40C6-935C-A761A5E9AE3E 129
8 b) Except as provided in the Governing Documents, this California Purdue/Sackler StateSubdivision 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 this 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 Governing Documents, this Agreement shall be governed by and interpreted in accordance with the laws of California.

Docusign Envelope ID: 9B0CECF2-9C0A-40C6-935C-A761A5E9AE3E 130
9 The undersigned, South Lake Tahoe city, CA, ACKNOWLEDGES acceptance of this Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds - Purdue/Sackler Settlement is a requirement to be an Initial Participating Subdivision and ACCEPTS this Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds - Purdue/Sackler Settlement.

I swear under penalty of perjury that I have all necessary power and authorization to execute this agreement on behalf of the Governmental Entity.

Signature: /signer_1_purdue/
Name: /name_1_purdue/
Title: /title_1_purdue/
Date: /date_1_purdue/
Docusign Envelope ID: 9B0CECF2-9C0A-40C6-935C-A761A5E9AE3E 131
APPENDIX 1
DISCLAIMER: The allocation percentages herein are estimates only and should not be relied on for decisions regarding legal rights, releases, waivers, or other decisions affecting current or potential legal claims. Percentages shown in the Plaintiff Subdivision Percentage column may change pursuant to Section 4.C. of the Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds—Purdue/Sackler 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 onehundred percent (100%) of the California Abatement Account Funds received, pursuant to Section 4.B. Regarding the column herein entitled “Plaintiff Subdivision Percentage,” the annotation of “100%” refers to one-hundred percent (100%) of the California Subdivision Funds received, pursuant to Section 4.C. Regarding the column herein entitled “Weighted Allocation Percentage,” the annotation of “100%” refers to one-hundred percent (100%) of the combined and weighted allocation of the Abatement Percentage and the Plaintiff Subdivision Percentage.

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APPENDIX 1
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100.000% 100.000% 100.000%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
County Alameda County Alameda 2.332% 2.853% 2.4237952%
City Alameda Alameda 0.069% 0.0570162%
City Albany Alameda 0.013% 0.0107768%
City Berkeley Alameda 0.152% 0.1249656%
City Dublin Alameda 0.033% 0.040% 0.0338810%
City Emeryville Alameda 0.023% 0.0185765%
City Fremont Alameda 0.108% 0.0888576%
City Hayward Alameda 0.117% 0.0966218%
City Livermore Alameda 0.054% 0.0446740%
City Newark Alameda 0.026% 0.0217626%
City Oakland Alameda 0.486% 0.595% 0.5055601%
City Piedmont Alameda 0.014% 0.0114064%
City Pleasanton Alameda 0.067% 0.0554547%
City San Leandro Alameda 0.039% 0.0321267%
City Union City Alameda 0.043% 0.0352484%
County Amador County Amador 0.226% 0.277% 0.2349885%
County Butte County Butte 1.615% 1.975% 1.6783178%
City Chico Butte 0.216% 0.264% 0.2246499%
City Oroville Butte 0.079% 0.0646595%
County Calaveras County Calaveras 0.226% 0.277% 0.2351644% County Colusa County Colusa 0.059% 0.0489221 %
County Contra Costa County Contra Costa 2.102% 2.571% 2.1844585% City Antioch Contra Costa 0.037% 0.0301879%
City Brentwood Contra Costa 0.026% 0.0215339%
City Clayton Contra Costa 0.002% 0.0018060%
City Concord Contra Costa 0.055% 0.0456676%
City Danville Contra Costa 0.010% 0.0082255%
City El Cerrito Contra Costa 0.023% 0.0189024%
City Hercules Contra Costa 0.010% 0.0078273%
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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: 9B0CECF2-9C0A-40C6-935C-A761A5E9AE3E 134
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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 Kem 2.517% 3.079% 2.6159145%
City Arvin Kem 0.006% 0.0046425%
City Bakersfield Kem 0.212% 0.1747198%
City California City Kem 0.009% 0.0070820%
City Delano Kem 0.030% 0.0249316%
City McFarland Kem 0.003% 0.0025644%
City Ridgecrest Kem 0.015% 0.0120938%
City Shafter Kem 0.013% 0.0103417%
City Tehachapi Kem 0.009% 0.0073580%
City Wasco Kem 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: 9B0CECF2-9C0A-40C6-935C-A761A5E9AE3E 135
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Agoura Hills Los Angeles 0.005% 0.0040024%
City Alhambra Los Angeles 0.042% 0.0343309%
City Arcadia Los Angeles 0.033% 0.0267718%
City Artesia Los Angeles 0.001% 0.0005100%
City Azusa Los Angeles 0.026% 0.0210857%
City Baldwin Park Los Angeles 0.027% 0.0218520%
City Bell Los Angeles 0.008% 0.0068783%
City Bellflower Los Angeles 0.002% 0.0014485%
City Bell Gardens Los Angeles 0.014% 0.0114301%
City Beverly Hills Los Angeles 0.065% 0.0534897%
City Burbank Los Angeles 0.100% 0.0823132%
City Calabasas Los Angeles 0.006% 0.0048948%
City Carson Los Angeles 0.019% 0.0159805%
City Cerritos Los Angeles 0.005% 0.0039682%
City Claremont Los Angeles 0.010% 0.0082584%
City Commerce Los Angeles 0.000% 0.0002971%
City Compton Los Angeles 0.044% 0.0361882%
City Covina Los Angeles 0.028% 0.0229127%
City Cudahy Los Angeles 0.001% 0.0006020%
City Culver City Los Angeles 0.055% 0.0449894%
City Diamond Bar Los Angeles 0.001% 0.0006993%
City Downey Los Angeles 0.052% 0.0429994%
City Duarte Los Angeles 0.003% 0.0027261%
City El Monte Los Angeles 0.031% 0.038% 0.0318985%
City El Segundo Los Angeles 0.033% 0.0268020%
City Gardena Los Angeles 0.034% 0.0278088%
City Glendale Los Angeles 0.166% 0.1366586%
City Glendora Los Angeles 0.016% 0.0134411 %
City Hawaiian Gardens Los Angeles 0.005% 0.0040549%
City Hawthorne Los Angeles 0.050% 0.0407833%
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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 Cafiada 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%
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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%
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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: 9B0CECF2-9C0A-40C6-935C-A761A5E9AE3E 139
APPENDIX 1
8 of 15
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: 9B0CECF2-9C0A-40C6-935C-A761A5E9AE3E 140
APPENDIX 1
9 of 15
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Roseville Placer 0.196% 0.1616559%
County Plumas County Plumas 0.205% 0.251% 0.2128729%
County Riverside County Riverside 4.534% 5.547% 4.7128296% City Banning Riverside 0.017% 0.0143848%
City Beaumont Riverside 0.021% 0.0171135%
City Blythe Riverside 0.012% 0.0096714%
City Canyon Lake Riverside 0.000% 0.0001761%
City Cathedral City Riverside 0.067% 0.0553614%
City Coachella Riverside 0.021% 0.0173054%
City Corona Riverside 0.147% 0.1207083%
City Desert Hot Springs Riverside 0.024% 0.0200433%
City Eastvale Riverside 0.000% 0.0002747%
City Hemet Riverside 0.051% 0.0421792%
City Indio Riverside 0.056% 0.0457794%
City Jurupa Valley Riverside 0.001% 0.0008991 %
City Lake Elsinore Riverside 0.021% 0.0172949%
City La Quinta Riverside 0.063% 0.0516732%
City Menifee Riverside 0.032% 0.0260909%
City Moreno Valley Riverside 0.137% 0.1130348%
City Murrieta Riverside 0.048% 0.059% 0.0497423%
City Norco Riverside 0.016% 0.0134542%
City Palm Desert Riverside 0.083% 0.0682465%
City Palm Springs Riverside 0.076% 0.0629862%
City Perris Riverside 0.009% 0.0076774%
City Rancho Mirage Riverside 0.052% 0.0431098%
City Riverside Riverside 0.268% 0.2206279%
City San Jacinto Riverside 0.010% 0.0085936%
City Temecula Riverside 0.022% 0.0180086%
City Wildomar Riverside 0.008% 0.0062500%
County Sacramento County Sacramento 3.797% 4.645% 3.9465887% Docusign Envelope ID: 9B0CECF2-9C0A-40C6-935C-A761A5E9AE3E 141
APPENDIX 1
10 of 15
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Citrus Heights Sacramento 0.057% 0.0465312%
City Elk Grove Sacramento 0.130% 0.1066994%
City Folsom Sacramento 0.108% 0.0890850%
City Galt Sacramento 0.017% 0.0143704%
City Rancho Cordova Sacramento 0.008% 0.0067679%
City Sacramento Sacramento 0.721% 0.882% 0.7496530%
County San Benito County San Benito 0.106% 0.130% 0.1101417% City Hollister San Benito 0.027% 0.0225355%
County San Bernardino County San Bernardino 3.259% 3.987% 3.3878124% City Adelanto San Bernardino 0.008% 0.0066640%
City Apple Valley San Bernardino 0.025% 0.0207360%
City Barstow San Bernardino 0.015% 0.0122056%
City Chino San Bernardino 0.064% 0.0525893%
City Chino Hills San Bernardino 0.001% 0.0006388%
City Colton San Bernardino 0.031% 0.0253443%
City Fontana San Bernardino 0.112% 0.0920543%
City Grand Terrace San Bernardino 0.006% 0.0051051%
City Hesperia San Bernardino 0.035% 0.0291522%
City Highland San Bernardino 0.004% 0.0029061%
City Loma Linda San Bernardino 0.009% 0.0071188%
City Montclair San Bernardino 0.039% 0.0322108%
City Ontario San Bernardino 0.179% 0.1472934%
City Rancho Cucamonga San Bernardino 0.084% 0.0689431 % City Redlands San Bernardino 0.057% 0.0469150%
City Rialto San Bernardino 0.073% 0.0603206%
City San Bernardino San Bernardino 0.178% 0.1461880%
City Twentynine Palms San Bernardino 0.002% 0.0012605%
City Upland San Bernardino 0.052% 0.0424460%
City Victorville San Bernardino 0.033% 0.0269400%
City Yucaipa San Bernardino 0.016% 0.0128772%
Docusign Envelope ID: 9B0CECF2-9C0A-40C6-935C-A761A5E9AE3E 142
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Yucca Valley San Bernardino 0.003% 0.0021228%
County San Diego County San Diego 5.706% 6.980% 5.9309748% City Carlsbad San Diego 0.128% 0.1050485%
City Chula Vista San Diego 0.189% 0.231% 0.1961456%
City Coronado San Diego 0.044% 0.0359095%
City El Cajon San Diego 0.113% 0.0933582%
City Encinitas San Diego 0.061% 0.074% 0.0630289%
City Escondido San Diego 0.145% 0.1192204%
City Imperial Beach San Diego 0.014% 0.0118283%
City La Mesa San Diego 0.055% 0.068% 0.0575593%
City Lemon Grove San Diego 0.022% 0.0183911%
City National City San Diego 0.080% 0.0656808%
City Oceanside San Diego 0.213% 0.1753428%
City Poway San Diego 0.062% 0.0511040%
City San Diego San Diego 1.975% 2.416% 2.0531169%
City San Marcos San Diego 0.089% 0.0733897%
City Santee San Diego 0.033% 0.0268401%
City Solana Beach San Diego 0.017% 0.0138564%
City Vista San Diego 0.052% 0.0425144%
Consolidated San Francisco San Francisco 3.026% 3.702% 3.1457169% County San Joaquin County San Joaquin 1.680% 2.055% 1.7460399% City Lathrop San Joaquin 0.009% 0.0075394%
City Lodi San Joaquin 0.053% 0.0439484%
City Manteca San Joaquin 0.054% 0.0443454%
City Ripon San Joaquin 0.013% 0.0104219%
City Stockton San Joaquin 0.313% 0.383% 0.3256176%
City Tracy San Joaquin 0.084% 0.0692047%
County San Luis Obispo County San Luis Obispo 0.816% 0.999% 0.8484126% City Arroyo Grande San Luis Obispo 0.024% 0.0199053%
City Atascadero San Luis Obispo 0.029% 0.0240680%
Docusign Envelope ID: 9B0CECF2-9C0A-40C6-935C-A761A5E9AE3E 143
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City El Paso de Robles (Paso Robles) San Luis Obispo 0.043% 0.0353456% City Grover Beach San Luis Obispo 0.017% 0.0137881%
City Morro Bay San Luis Obispo 0.020% 0.0160922%
City San Luis Obispo San Luis Obispo 0.077% 0.0637841 % County San Mateo County San Mateo 1.074% 1.313% 1.1159599% City Belmont San Mateo 0.021% 0.0169860%
City Burlingame San Mateo 0.019% 0.0152537%
City Daly City San Mateo 0.044% 0.0363880%
City East Palo Alto San Mateo 0.013% 0.0103982%
City Foster City San Mateo 0.020% 0.0166101%
City Half Moon Bay San Mateo 0.004% 0.0031638%
City Hillsborough San Mateo 0.013% 0.0110029%
City Menlo Park San Mateo 0.015% 0.0126209%
City Millbrae San Mateo 0.013% 0.0105836%
City Pacifica San Mateo 0.016% 0.0130625%
City Redwood City San Mateo 0.056% 0.0463511%
City San Bruno San Mateo 0.021% 0.0172161%
City San Carlos San Mateo 0.013% 0.0108885%
City San Mateo San Mateo 0.052% 0.0425841%
City South San Francisco San Mateo 0.043% 0.0353943%
County Santa Barbara County Santa Barbara 1.132% 1.385% 1.1768968% City Carpinteria Santa Barbara 0.001% 0.0008938%
City Goleta Santa Barbara 0.004% 0.0028969%
City Lompoc Santa Barbara 0.047% 0.0389379%
City Santa Barbara Santa Barbara 0.122% 0.1004559%
City Santa Maria Santa Barbara 0.058% 0.0479179%
County Santa Clara County Santa Clara 2.404% 2.941% 2.4987553% City Campbell Santa Clara 0.014% 0.0112566%
City Cupertino Santa Clara 0.008% 0.0066824%
City Gilroy Santa Clara 0.025% 0.0202891%
Docusign Envelope ID: 9B0CECF2-9C0A-40C6-935C-A761A5E9AE3E 144
APPENDIX 1
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Los Altos Santa Clara 0.013% 0.0103338%
City Los Gatos Santa Clara 0.013% 0.0103220%
City Milpitas Santa Clara 0.036% 0.0298120%
City Morgan Hill Santa Clara 0.015% 0.0124619%
City Mountain View Santa Clara 0.041% 0.0334608%
City Palo Alto Santa Clara 0.039% 0.0323080%
City San Jose Santa Clara 0.294% 0.360% 0.3054960%
City Santa Clara Santa Clara 0.067% 0.0549723%
City Saratoga Santa Clara 0.004% 0.0034161%
City Sunnyvale Santa Clara 0.053% 0.0434069%
County Santa Cruz County Santa Cruz 0.783% 0.957% 0.8135396% City Capitola Santa Cruz 0.020% 0.0168191%
City Santa Cruz Santa Cruz 0.143% 0.1180348%
City Scotts Valley Santa Cruz 0.015% 0.0126525%
City Watsonville Santa Cruz 0.063% 0.0520136%
County Shasta County Shasta 1.095% 1.339% 1.1380191%
City Anderson Shasta 0.024% 0.0198896%
City Redding Shasta 0.284% 0.2334841 %
City Shasta Lake Shasta 0.004% 0.0031993%
County Siskiyou County Siskiyou 0.228% 0.279% 0.2373393% County Solano County Solano 0.760% 0.6260795%
City Benicia Solano 0.031% 0.0253903%
City Dixon Solano 0.016% 0.0130849%
City Fairfield Solano 0.109% 0.0897317%
City Suisun City Solano 0.021% 0.0176183%
City Vacaville Solano 0.119% 0.0976497%
City Vallejo Solano 0.167% 0.1373644%
County Sonoma County Sonoma 1.218% 1.490% 1.2661290%
City Healdsburg Sonoma 0.032% 0.0266929%
City Petaluma Sonoma 0.081% 0.0667507%
Docusign Envelope ID: 9B0CECF2-9C0A-40C6-935C-A761A5E9AE3E 145
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Rohnert Park Sonoma 0.041% 0.0340759%
City Santa Rosa Sonoma 0.184% 0.1519070%
City Sonoma Sonoma 0.022% 0.0183438%
City Windsor Sonoma 0.016% 0.0129298%
County Stanislaus County Stanislaus 1.722% 1.4182273%
City Ceres Stanislaus 0.041% 0.0340260%
City Modesto Stanislaus 0.217% 0.1788759%
City Newman Stanislaus 0.006% 0.0046964%
City Oakdale Stanislaus 0.018% 0.0145531%
City Patterson Stanislaus 0.015% 0.0126590%
City Riverbank Stanislaus 0.010% 0.0085699%
City Turlock Stanislaus 0.065% 0.0531966%
County Sutter County Sutter 0.306% 0.374% 0.3179548%
City Yuba City Sutter 0.074% 0.0606242%
County Tehama County Tehama 0.213% 0.261% 0.2216654%
City Red Bluff Tehama 0.014% 0.0117771%
County Trinity County Trinity 0.082% 0.101% 0.0855476%
County Tulare County Tulare 0.809% 0.990% 0.8410949%
City Dinuba Tulare 0.014% 0.0116929%
City Exeter Tulare 0.004% 0.0032479%
City Farmersville Tulare 0.003% 0.0027879%
City Lindsay Tulare 0.007% 0.0057111%
City Porterville Tulare 0.021% 0.0171845%
City Tulare Tulare 0.037% 0.0302273%
City Visalia Tulare 0.066% 0.0545872%
County Tuolumne County Tuolumne 0.486% 0.594% 0.5047621% County Ventura County Ventura 2.192% 2.681% 2.2781201%
City Camarillo Ventura 0.002% 0.0012815%
City Fillmore Ventura 0.002% 0.0020294%
City Moorpark Ventura 0.008% 0.0067337%
Docusign Envelope ID: 9B0CECF2-9C0A-40C6-935C-A761A5E9AE3E 146
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Oxnard Ventura 0.156% 0.190% 0.1617338%
City Port Hueneme Ventura 0.021% 0.0174145%
City San Buenaventura (Ventura) Ventura 0.085% 0.0702181% City Santa Paula Ventura 0.014% 0.0119072%
City Simi Valley Ventura 0.065% 0.0533043%
City Thousand Oaks Ventura 0.022% 0.0179902%
County Yolo County Yolo 0.357% 0.437% 0.3713319%
City Davis Yolo 0.055% 0.0451747%
City West Sacramento Yolo 0.066% 0.0544321%
City Woodland Yolo 0.058% 0.0477904%
County Yuba County Yuba 0.214% 0.262% 0.2225679%
City Marysville Yuba 0.014% 0.0112079%
Docusign Envelope ID: 9B0CECF2-9C0A-40C6-935C-A761A5E9AE3E 147
1 APPENDIX 2

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

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

Pursuant to this Backstop Agreement, [SUBDIVISION] may, subject to the limitations of the Governing Documents and California Purdue/Sackler State-Subdivision Agreement, as well as any other limitations imposed by law, use funds that it receives from the CA Subdivision Fund of the Purdue/Sackler settlement to pay a contingent fee to [COUNSEL]. Any such payment from [SUBDIVISION] to [COUNSEL] from [SUBDIVISION’S] CA Subdivision Fund allocation will not exceed [PERCENTAGE NOT TO EXCEED ONE-THIRD OR 5% OUT OF THE 15%] out of the [SUBDIVISION’S] 15% CA Subdivision Fund allocation; provided further that such payments, together with any contingency-fees that [COUNSEL] may receive from the Local Government Costs and Expenses Fund, will not exceed a total contingency fee of [PERCENTAGE NOT TO EXCEED 15%] of the [SUBDIVISION’S] total gross recovery from the Purdue/Sackler settlement. [SUBDIVISION] further certifies that any payments made under this Backstop Agreement will be made in accordance with the 95% Opioid Abatement use requirements under Section 5.02 A of the GESA and Section 4.01(f)(i) of the Master Settlement Agreement.
[COUNSEL] certify that they first sought fees and costs from the Local Government Costs and Expenses Fund created under the Governing Documents before seeking or accepting payment under this backstop agreement. [COUNSEL] further certify that they are not seeking and will not accept payment under this backstop agreement of any litigation fees or costs that have been reimbursed through prior settlements or judgments.

The Attorney General is executing this agreement solely because the definition of “State BackStop Agreement” in Exhibit R of the Governmental Entity & Shareholder Settlement Agreement requires such agreements to be between “a Settling State” and private counsel for a participating subdivision. Neither the California Attorney General nor the State of California have any obligations under this Backstop Agreement, and this Backstop Agreement does not require the payment of any state funds to [SUBDIVISION], [COUNSEL], or any other party.

Docusign Envelope ID: 9B0CECF2-9C0A-40C6-935C-A761A5E9AE3E 148
2 [DATE] [SUBDIVISION SIGNATURE BLOCK]
[DATE] [COUNSEL SIGNATURE BLOCK]
[DATE] [ATTORNEY GENERAL SIGNATURE BLOCK]
Docusign Envelope ID: 9B0CECF2-9C0A-40C6-935C-A761A5E9AE3E 149
New National Opioids Settlement: Secondary Manufacturers Opioids Implementation Administrator
[email protected]
South Lake Tahoe city, CA
Reference Number: CL-1762638
TO LOCAL POLITICAL SUBDIVISIONS:

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

Deadline: October 8, 2025
A new proposed national opioids settlement (“Secondary Manufacturers Settlements”) has been reached with eight opioids manufacturers: Alvogen, Amneal, Apotex, Hikma, Indivior, Mylan, Sun, and Zydus (“Settling Defendants”). This Combined Participation Package is a follow-up communication to the Notice of National Opioids Settlement recently received electronically by your subdivision.

You are receiving this Combined Participation Package because California is participating in the Secondary Manufacturers Settlements.

If a state is not eligible to or does not participate in the settlement with a particular manufacturer, the subdivisions in that state are not eligible to participate in that manufacturer’s settlement.

This electronic envelope contains nine attachments:
 A Combined Participation Form for the Secondary Manufacturers Settlements that your subdivision is eligible to join, including a release of any claims.  California State-Subdivision Agreements for Alvogen, Amneal, Apotex, Hikma, Indivior, Mylan, Sun, and Zydus (“California State-Subdivision Agreements”).

The Combined Participation Form and all eight California State-Subdivision Agreements must be executed, without alteration, and submitted on or before October 8, 2025, in order for your subdivision to be considered for initial participation calculations and payment eligibility under the Secondary Manufacturers Settlement.

Based upon Combined Participation Forms received on or before October 8, 2025, the subdivision participation rate will be used to determine whether participation is sufficient for each settlement to move forward and whether a state earns its maximum potential payment under each settlement. If a settlement moves forward, your release will become effective. If a settlement does not move forward, that release will not become effective.

Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 150
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 Secondary Manufacturers Settlements with your counsel, your Attorney General’s Office, and other contacts within your state. Many states are implementing and allocating funds for this new settlement the same as they did for the prior opioids settlements but states may choose to treat this settlement differently.

Information and documents regarding the Secondary Manufacturers Settlements, implementation in your state, and how funds will be allocated within your state 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.

This Participation Packet is different than the participation packet you recently received from Rubris concerning a settlement with Purdue Pharma, L.P, and the Sackler Family. The Secondary Manufacturers Settlements discussed in this Participation Packet are different than the settlement with Purdue and the Sacklers, and you may participate in the Secondary Manufacturers Settlements regardless of whether you join the Purdue and Sackler settlement.

How to return signed forms:

There are three methods for returning the executed Combined Participation Form, the eight California State-Subdivision Agreements, and any supporting documentation to the Implementation Administrator:
(1)Electronic Signature via DocuSign: Executing the Combined Participation Form electronically through DocuSign will return the signed form to the Implementation Administrator and associate your form with your subdivision’s records. Electronic signature is the most efficient method for returning the Combined Participation Form, 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. As with electronic signature, returning a manually signed Combined Participation Form via DocuSign will associate your signed forms with your subdivision’s records.

Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 151
(3)Manual Signature returned via electronic mail: If your subdivision is unable to return an executed Combined Participation Form using DocuSign, the signed Combined Participation Form 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 Combined Settlement Participation Form – [Subdivision Name, Subdivision State] – [Reference ID].

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

The sign-on period for subdivisions ends on October 8, 2025.

If you have any questions about executing the Combined Participation Form, please contact your counsel, the Implementation Administrator at [email protected], or the California Attorney General’s Office at [email protected].

Thank you,
Secondary Manufacturers Settlements Implementation Administrator The Implementation Administrator is retained to provide the settlement notice required by the Secondary Manufacturers Settlements and to manage the collection of the Combined Participation Form.

Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 152

EXHIBIT K
Secondary Manufacturers’ Combined Subdivision Participation and Release Form (“Combined Participation Form”)
Governmental Entity: South Lake Tahoe city State: CA
Authorized Official: /officialname_som/
Address 1: /address1_som/
Address 2: /address2_som/
City, State, Zip: /cit_sm/ /state_sm/ /zi_sm/
Phone: /phone_som/
Email: /email_som/
The governmental entity identified above (“Governmental Entity”), in order to obtain and in consideration for the benefits provided to the Governmental Entity pursuant to each of the settlements which are listed in paragraph 1 below (each a “Secondary Manufacturer’s Settlement” and collectively, “the Secondary Manufacturers’ Settlements”), and acting through the undersigned authorized official, hereby elects to participate in each of the Secondary Manufacturers’ Settlements, release all Released Claims against all Released Entities in each of the Secondary Manufacturers’ Settlements, and agrees as follows.

1. The Participating Entity hereby elects to participate in each of the following Secondary Manufacturers’ Settlements as a Participating Entity:
a. Settlement Agreement for Alvogen, Inc. dated April 4, 2025. b. Settlement Agreement for Apotex Corp. dated April 4, 2025. c. Settlement Agreement for Amneal Pharmaceuticals LLC dated April 4, 2025. d. Settlement Agreement for Hikma Pharmaceuticals USA Inc. dated April 4, 2025. e. Settlement Agreement for Indivior Inc. dated April 4, 2025. f. Settlement Agreement for Viatris Inc. (“Mylan”) dated April 4, 2025. g. Settlement Agreement for Sun Pharmaceutical Industries, Inc. dated April 4, 2025. h. Settlement Agreement for Zydus Pharmaceuticals (USA) Inc. dated April 4, 2025.

2. The Governmental Entity is aware of and has reviewed each of the Secondary Manufacturers’ Settlements, understands that all capitalized terms not defined in this Combined Participation Form have the meanings defined in each of the Secondary Manufacturers’ Settlements, and agrees that by executing this Combined Participation Form, the Governmental Entity elects to participate in each of the Secondary Manufacturers’ Settlements and become a Participating Subdivision as provided in each of the Secondary Manufacturers’ Settlements.

3. 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 against any Released Entity in each of the Secondary Manufacturers’ Settlements. With respect to any Released Claims pending in In re National Prescription Opiate Litigation, MDL No. 2804, the Governmental Entity K-1
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authorizes the Plaintiffs’ Executive Committee to execute and file on behalf of the Governmental Entity a Stipulation of Dismissal with Prejudice for each of the manufacturers listed in paragraph 1 above substantially in the form found at https://nationalopioidsettlement.com/additional-settlements/.

4. The Governmental Entity agrees to the terms of each of the Secondary Manufacturers’ Settlements pertaining to Participating Subdivisions as defined therein.

5. By agreeing to the terms of each of the Secondary Manufacturers’ Settlements 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 each of the Secondary Manufacturers’ Settlements solely for the purposes provided therein.

7. The Governmental Entity submits to the jurisdiction of the court and agrees to follow the process for resolving any disputes related to each Secondary Manufacturer’s Settlement as described in each of the Secondary Manufacturers’ Settlements.1

8. The Governmental Entity has the right to enforce each of the Secondary Manufacturers’ Settlements as provided therein.

9. The Governmental Entity, as a Participating Subdivision, hereby becomes a Releasor for all purposes in each of the Secondary Manufacturers’ Settlements, including without limitation all provisions related to release of any claims,2 and along with all departments, agencies, divisions, boards, commissions, districts, instrumentalities of any kind and attorneys, and any person in his or her 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 or permit to be brought, filed, or claimed, or to otherwise seek to establish liability for any Released Claims against any Released Entity in each of the Secondary Manufacturers’ Settlements in any forum whatsoever. The releases provided for in each of the Secondary Manufacturers’ Settlements are intended by the Parties to be broad and shall be interpreted so as to give the Released Entities in each of the Secondary Manufacturers’ Settlements the broadest possible bar against any liability relating in any way to Released 1 See Settlement Agreement for Alvogen, Inc. Section VII.F.2; Settlement Agreement for Apotex Corp. Section VII.F.2; Settlement Agreement for Amneal Pharmaceuticals LLC Section VII.F.2; Settlement Agreement for Hikma Pharmaceuticals USA Inc. Section VII.F.2; Settlement Agreement for Indivior Section VI.F.2; Settlement Agreement for Mylan Section VI.F.2; Settlement Agreement for Sun Pharmaceutical Industries, Inc. Section VII.F.2; Settlement Agreement for Zydus Pharmaceuticals (USA) Inc. Section VII.F.2. 2 See Settlement Agreement for Alvogen, Inc. Section XI; Settlement Agreement for Amneal Pharmaceuticals LLC Section X; Settlement Agreement for Apotex Corp. Section XI; Settlement Agreement for Hikma Pharmaceuticals USA Inc. Section XI; Settlement Agreement for Indivior Section X; Settlement Agreement for Mylan Section X; Settlement Agreement for Sun Pharmaceutical Industries, Inc. Section XI; Settlement Agreement for Zydus Pharmaceuticals (USA) Inc. Section XI.

K-2
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Claims and extend to the full extent of the power of the Governmental Entity to release claims. Each of the Secondary Manufacturers’ Settlements shall be a complete bar to any Released Claim against that manufacturer’s Released Entities.

10. The Governmental Entity hereby takes on all rights and obligations of a Participating Subdivision as set forth in each of the Secondary Manufacturers’ Settlements.

11. In connection with the releases provided for in each of the Secondary Manufacturers’ Settlements, 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 in each of the Secondary Manufacturers’ Settlements, 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 each of the Secondary Manufacturers’ Settlements.

12. The Governmental Entity understands and acknowledges that each of the Secondary Manufacturers’ Settlements is an independent agreement with its own terms and conditions. Nothing herein is intended to modify in any way the terms of any of the Secondary Manufacturers’ Settlements, to which Governmental Entity hereby agrees, aside from the exceptions in paragraph 13 below. To the extent this Combined Participation Form is interpreted differently from any of the Secondary Manufacturers’ Settlements in any respect, the individual Secondary Manufacturer’s Settlement controls.

13. For the avoidance of doubt, in the event that some but not all of the Secondary Manufacturers’ Settlements proceed past their respective Reference Dates, all releases and other commitments or obligations shall become void only as to those Secondary Manufacturers’ Settlements that fail to proceed past their Reference Dates. All releases and other commitments or obligations (including those contained in this Combined Participation Form) shall remain in full effect as to each Secondary Manufacturer’s Settlement that proceeds past its Reference Date, and this Combined Participation Form need not be modified, returned, or destroyed as long as any Secondary Manufacturer’s Settlement proceeds past its Reference Date.

K-3
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I have all necessary power and authorization to execute this Combined Participation Form on behalf of the Governmental Entity.

Signature: /signer_1_som/
Name: /name_1_som/
Title: /title_1_som/
Date: /date_1_som/
K-4
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1 Proposed California State-Subdivision Agreement
Regarding Distribution and Use of
Settlement Funds – Alvogen Settlement

1. Introduction
Pursuant to the Alvogen Settlement Agreement, dated as of April 4, 2025, and any revision thereto (the “Alvogen Settlement Agreement”), including Section VI and Exhibit O, the State of California proposes this agreement (the “CA Alvogen Allocation Agreement”) to govern the allocation, distribution, and use of Settlement Fund payments made to California pursuant to Sections V and VI of the Alvogen Settlement Agreement. For the avoidance of doubt, this agreement does not apply to payments made pursuant to Section X of the Alvogen Settlement Agreement.

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

2. Definitions
a) CA Participating Subdivision means a Participating Subdivision that is also (a) a Plaintiff Subdivision and/or (b) a Primary Subdivision with a population equal to or greater than 10,000. For the avoidance of doubt, eligible CA Participating Subdivisions are those California subdivisions listed in Exhibit C (excluding Litigating Special Districts) and/or Exhibit I to the Alvogen Settlement Agreement. b) CA Litigating Special District means a Litigating Special District located in California.
c) 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. d) Opioid Defendant means any defendant including but not limited to Alvogen, Inc.

Amneal Pharmaceuticals LLC; Apotex Corp., Hikma Pharmaceuticals USA Inc. f/k/a West-Ward Pharmaceuticals Corp.; Indivior Inc.; Viatris Inc. (“Mylan”); Sun Pharmaceutical Industries, Inc.; Zydus Pharmaceuticals (USA) Inc.; Kroger Co., 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., Cencora, Inc. f/k/a AmerisourceBergen Corporation, McKesson Corporation, Dr.

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

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

This Agreement does not apply to funds received by California1 pursuant to Section X of the Alvogen Settlement Agreement, including payments for Private Attorney Fees and the Additional Remediation Amount.

4. State Allocation
The Settlement Fund payments to California, pursuant to the Alvogen 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 Alvogen 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 1 For purposes of clarity, use of the term “California” refers to the geographic territory of California and the state and its local governments therein. The term “State” or “State of California” refers to the State of California as a governmental unit.

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3 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 Alvogen 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 the county is a CA Participating Subdivision; provided, however, that if a city currently receives direct payment of its share of funds in the National Opioids Settlement with Distributors Cencora, Inc. (f/k/a AmerisourceBergenCorporation), Cardinal Health, Inc., and McKesson Corporation (the “Distributors Settlement”), that city’s Local Allocation amount will be paid directly to the city. If a city later changes or has already changed its distribution election in the Distributors Settlement, that change in election will apply here, provided that the change in election is received by the settlement administrator at least 60 days prior to a Payment Date. A Local Allocation share allocated to a city but paid to a county is not required to be spent exclusively for abatement activities in that city, but will become part of the county’s share of the CA Abatement Accounts Funds, which will be used in accordance with Section 4.B.ii (Use of CA Abatement Accounts Funds) and reported on in accordance with Section 4.B.iii (CA Abatement Accounts Fund Oversight). d) A city within a county that is a CA Participating Subdivision may opt in or out of direct payment at any time, and it may also elect direct payment of only a portion of its share, with the remainder going to the county, by providing notice to the Settlement Fund Administrator at least 60 days prior to a Payment Date. For purposes of this CA Alvogen 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 Alvogen Settlement Agreement and this CA Alvogen Allocation Agreement shall be transferred to the State; provided however, that CA Participating Subdivisions have seven years to expend or encumber CA Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 159
4 Abatement Accounts Funds designated to support capital outlay projects before they must be transferred to the State.
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 Alvogen 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;
(5) interventions to prevent drug addiction in vulnerable youth, including but not limited to, youth in foster care, juvenile justice-impacted youth, youth experiencing adversities related to socioeconomic status, and unhoused youth; and/or (6) the purchase of naloxone for distribution and efforts to expand access to naloxone for opioid overdose reversals.
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 Alvogen 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 Alvogen Settlement Agreement and this CA Alvogen Allocation Agreement, a county and any cities or towns within the county may Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 160
5 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 Alvogen Settlement Agreement and this CA Alvogen Allocation Agreement.
b) If DHCS determines that a CA Participating Subdivision’s use of CA Abatement Accounts Funds is inconsistent with the Alvogen Settlement Agreement or this CA Alvogen Allocation Agreement, whether through review of reports or information from any other sources, DHCS shall send a request to meet and confer with the CA Participating Subdivision. The parties shall meet and confer in an effort to resolve the concern.
c) If the parties are unable to reach a resolution, DHCS may conduct an audit of the Subdivision’s use of the CA Abatement Accounts Funds within one year of the request to meet and confer, unless the parties mutually agree in writing to extend the meet and confer time frame.
d) If the concern still cannot be resolved, the State may bring a motion or action in the court where the State has filed its Consent Judgment to resolve the concern or otherwise enforce the requirements of the Alvogen Settlement Agreement or this CA Alvogen 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 Alvogen Settlement Agreement and this CA Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 161
6 Alvogen Allocation Agreement, to fund future Opioid Remediation and reimburse past opioid-related expenses, which may include fees and expenses related to litigation.

However, in no event shall more than one third (5% out of the 15%) of CA Subdivision Funds be used for litigation-related fees and expenses.

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

A Plaintiff Subdivision may separately agree to use up to one-third (5% out of the 15%) of 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 Alvogen Settlement Agreement and the MDL Fees Order, provided that: (1) such payments, together with any payments to contingency-fee counsel from the Private Attorneys Fee amount related to such Plaintiff Subdivision, do not exceed 15% of a Plaintiff Subdivision’s total gross recovery under this Alvogen Settlement Agreement; and (2) the Plaintiff Subdivision certifies that any payments made under a State Back-Stop agreement will be made in accordance with the 95% Opioid Abatement use requirements under Section VI.B.1 of the Alvogen Settlement Agreement. Before seeking fees or litigation costs and expenses from a State Back-Stop Agreement, private counsel representing Plaintiff Subdivisions must first seek contingency fees and costs from the Attorney Fee Fund or Cost Funds created under the Alvogen 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.

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.
///
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7 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 Alvogen Settlement Agreement and this CA Alvogen Allocation Agreement. The report will be in a form reasonably determined by DHCS. Prior to specifying the form of the report DHCS will confer with representatives of the Plaintiff Subdivisions.
c) The State and all CA Participating Subdivisions receiving CA Abatement Accounts Funds will track all deposits and expenditures. Each such subdivision is responsible solely for the CA Abatement Accounts Funds it receives. A county is not responsible for oversight, reporting, or monitoring of CA Abatement Accounts Funds received by a city within that county that receives direct payment. Unless otherwise exempt, Subdivisions’ expenditures and uses of CA Abatement Accounts Funds and other Settlement Funds will be subject to the normal budgetary and expenditure process of the Subdivision. d) Each Plaintiff Subdivision receiving CA Subdivision Funds will track all deposits and expenditures, as required by the Alvogen Settlement Agreement and this CA Alvogen Allocation Agreement. Among other things, Plaintiff Subdivisions using monies from the CA Subdivision Fund for purposes that do not qualify as Opioid Remediation must identify and include in their annual report, the amount and how such funds were used, including if used to pay attorneys’ fees, investigation costs, or litigation costs. Pursuant to Section VI(B)(2) of the Alvogen Settlement Agreement, such information must also be reported to the Settlement Fund Administrator and Alvogen. 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 Alvogen 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 Alvogen Settlement Agreement, this CA Alvogen Allocation Agreement is not enforceable by any party other than the State and the CA Participating Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 163
8 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 Alvogen 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 Alvogen Settlement Agreement, this agreement shall be governed by and interpreted in accordance with the laws of California.

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9 The undersigned, South Lake Tahoe city, CA, ACKNOWLEDGES acceptance of this Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds – Alvogen Settlement is a requirement to be an Initial Participating Subdivision in the Alvogen Settlement and ACCEPTS this Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds – Alvogen Settlement.

Signature: /signer_1_som/
Name: /name_1_som/
Title: /title_1_som/
Date: /date_1_som/
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APPENDIX 1
DISCLAIMER: The allocation percentages herein are estimates only and should not be relied on for decisions regarding legal rights, releases, waivers, or other decisions affecting current or potential legal claims. Percentages shown in the Plaintiff Subdivision Percentage column may change pursuant to Section 4.C. of the California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds—Alvogen 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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APPENDIX
1 1of15
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%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Lafayette Contra Costa 0.006% 0.0046030%
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APPENDIX
1 2of15
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% 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%
Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 168

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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% 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%
Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 169

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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%
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 Canada Flintridge Los Angeles 0.003% 0.0025565% City Lakewood Los Angeles 0.005% 0.0039971%
City La Mirada Los Angeles 0.010% 0.0081572%
City Lancaster Los Angeles 0.045% 0.0369689%
City La Puente Los Angeles 0.002% 0.0012999%
City La Verne Los Angeles 0.024% 0.0194190%
City Lawndale Los Angeles 0.002% 0.0017731%
City Lomita Los Angeles 0.004% 0.0031940%
City Long Beach Los Angeles 0.439% 0.3614151%
City Los Angeles Los Angeles 2.715% 3.321% 2.8218811%
Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 170

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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%
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%
Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 171

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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%
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%
Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 172

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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%
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%
Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 173

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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%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Roseville Placer 0.196% 0.1616559%
County Plumas County Plumas 0.205% 0.251% 0.2128729%
County Riverside County Riverside 4.534% 5.547% 4.7128296% City Banning Riverside 0.017% 0.0143848%
City Beaumont Riverside 0.021% 0.0171135%
City Blythe Riverside 0.012% 0.0096714%
City Canyon Lake Riverside 0.000% 0.0001761%
City Cathedral City Riverside 0.067% 0.0553614%
City Coachella Riverside 0.021% 0.0173054%
City Corona Riverside 0.147% 0.1207083%
City Desert Hot Springs Riverside 0.024% 0.0200433%
City Eastvale Riverside 0.000% 0.0002747%
City Hemet Riverside 0.051% 0.0421792%
City Indio Riverside 0.056% 0.0457794%
City Jurupa Valley Riverside 0.001% 0.0008991%
City Lake Elsinore Riverside 0.021% 0.0172949%
City La Quinta Riverside 0.063% 0.0516732%
City Menifee Riverside 0.032% 0.0260909%
City Moreno Valley Riverside 0.137% 0.1130348%
City Murrieta Riverside 0.048% 0.059% 0.0497423%
City Norco Riverside 0.016% 0.0134542%
City Palm Desert Riverside 0.083% 0.0682465%
City Palm Springs Riverside 0.076% 0.0629862%
City Perris Riverside 0.009% 0.0076774%
City Rancho Mirage Riverside 0.052% 0.0431098%
City Riverside Riverside 0.268% 0.2206279%
City San Jacinto Riverside 0.010% 0.0085936%
City Temecula Riverside 0.022% 0.0180086%
City Wildomar Riverside 0.008% 0.0062500%
Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 174

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County Sacramento County Sacramento 3.797% 4.645% 3.9465887% Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Citrus Heights Sacramento 0.057% 0.0465312%
City Elk Grove Sacramento 0.130% 0.1066994%
City Folsom Sacramento 0.108% 0.0890850%
City Galt Sacramento 0.017% 0.0143704%
City Rancho Cordova Sacramento 0.008% 0.0067679%
City Sacramento Sacramento 0.721% 0.882% 0.7496530%
County San Benito County San Benito 0.106% 0.130% 0.1101417% City Hollister San Benito 0.027% 0.0225355%
County San Bernardino County San Bernardino 3.259% 3.987% 3.3878124% City Adelanto San Bernardino 0.008% 0.0066640%
City Apple Valley San Bernardino 0.025% 0.0207360%
City Barstow San Bernardino 0.015% 0.0122056%
City Chino San Bernardino 0.064% 0.0525893%
City Chino Hills San Bernardino 0.001% 0.0006388%
City Colton San Bernardino 0.031% 0.0253443%
City Fontana San Bernardino 0.112% 0.0920543%
City Grand Terrace San Bernardino 0.006% 0.0051051%
City Hesperia San Bernardino 0.035% 0.0291522%
City Highland San Bernardino 0.004% 0.0029061%
City Loma Linda San Bernardino 0.009% 0.0071188%
City Montclair San Bernardino 0.039% 0.0322108%
City Ontario San Bernardino 0.179% 0.1472934%
City Rancho Cucamonga San Bernardino 0.084% 0.0689431%
City Redlands San Bernardino 0.057% 0.0469150%
City Rialto San Bernardino 0.073% 0.0603206%
City San Bernardino San Bernardino 0.178% 0.1461880%
City Twentynine Palms San Bernardino 0.002% 0.0012605%
City Upland San Bernardino 0.052% 0.0424460%
City Victorville San Bernardino 0.033% 0.0269400%
City Yucaipa San Bernardino 0.016% 0.0128772%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 175
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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%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City El Paso de Robles (Paso Robles) San Luis Obispo 0.043% 0.0353456% City Grover Beach San Luis Obispo 0.017% 0.0137881%
City Morro Bay San Luis Obispo 0.020% 0.0160922%
City San Luis Obispo San Luis Obispo 0.077% 0.0637841%
Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 176

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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%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Los Altos Santa Clara 0.013% 0.0103338%
City Los Gatos Santa Clara 0.013% 0.0103220%
City Milpitas Santa Clara 0.036% 0.0298120%
City Morgan Hill Santa Clara 0.015% 0.0124619%
City Mountain View Santa Clara 0.041% 0.0334608%
City Palo Alto Santa Clara 0.039% 0.0323080%
City San Jose Santa Clara 0.294% 0.360% 0.3054960%
City Santa Clara Santa Clara 0.067% 0.0549723%
Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 177

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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%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Rohnert Park Sonoma 0.041% 0.0340759%
City Santa Rosa Sonoma 0.184% 0.1519070%
City Sonoma Sonoma 0.022% 0.0183438%
City Windsor Sonoma 0.016% 0.0129298%
County Stanislaus County Stanislaus 1.722% 1.4182273%
City Ceres Stanislaus 0.041% 0.0340260%
City Modesto Stanislaus 0.217% 0.1788759%
City Newman Stanislaus 0.006% 0.0046964%
City Oakdale Stanislaus 0.018% 0.0145531%
City Patterson Stanislaus 0.015% 0.0126590%
City Riverbank Stanislaus 0.010% 0.0085699%
City Turlock Stanislaus 0.065% 0.0531966%
Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 178
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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%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Oxnard Ventura 0.156% 0.190% 0.1617338%
City Port Hueneme Ventura 0.021% 0.0174145%
City San Buenaventura (Ventura) Ventura 0.085% 0.0702181% City Santa Paula Ventura 0.014% 0.0119072%
City Simi Valley Ventura 0.065% 0.0533043%
City Thousand Oaks Ventura 0.022% 0.0179902%
County Yolo County Yolo 0.357% 0.437% 0.3713319%
City Davis Yolo 0.055% 0.0451747%
City West Sacramento Yolo 0.066% 0.0544321%
City Woodland Yolo 0.058% 0.0477904%
County Yuba County Yuba 0.214% 0.262% 0.2225679%
City Marysville Yuba 0.014% 0.0112079%
Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 179
APPENDIX 2

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

Pursuant to this Backstop Agreement, [SUBDIVISION] may, subject to the limitations of the Alvogen Settlement Agreement and CA Alvogen Allocation Agreement, as well as any other limitations imposed by law, use funds that it receives from the Alvogen Settlement CA Subdivision Fund to pay a contingent fee to [COUNSEL]. Any such payment from [SUBDIVISION] to [COUNSEL] from [SUBDIVISION’S] CA Subdivision Fund allocation will not exceed [PERCENTAGE NOT TO EXCEED ONE-THIRD OR 5% OUT OF THE 15%] out of the [SUBDIVISION’S] 15% CA Subdivision Fund allocation; provided further that such payments, together with any contingency-fees that [COUNSEL] may receive from the Attorney Fee Fund will not exceed a total contingency fee of [PERCENTAGE NOT TO EXCEED 15%] of the total gross recovery of [SUBDIVISION] from the Alvogen Settlement Agreement. [COUNSEL] certify that they first sought fees and costs from the Attorney Fee Fund created under the Alvogen Settlement Agreement before seeking or accepting payment under this backstop agreement. [COUNSEL] further certify that they are not seeking and will not accept payment under this backstop agreement of any litigation fees or costs that have been reimbursed through prior settlements or judgments.

The Attorney General is executing this agreement solely because the definition of “State BackStop Agreement” in Exhibit R of the Alvogen Settlement Agreement requires such agreements to be between “a Settling State” and private counsel for a participating subdivision. Neither the California Attorney General nor the State of California have any obligations under this Backstop Agreement, and this Backstop Agreement does not require the payment of any state funds to [SUBDIVISION], [COUNSEL], or any other party.
[DATE] [SUBDIVISION SIGNATURE BLOCK]
[DATE] [COUNSEL SIGNATURE BLOCK]
[DATE] [ATTORNEY GENERAL SIGNATURE BLOCK]
1 Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 180
1 Proposed California State-Subdivision Agreement
Regarding Distribution and Use of
Settlement Funds – Amneal Settlement

1. Introduction
Pursuant to the Amneal Settlement Agreement, dated as of April 4, 2025, and any revision thereto (the “Amneal Settlement Agreement”), including Section V and Exhibit O, the State of California proposes this agreement (the “CA Amneal Allocation Agreement”) to govern the allocation, distribution, and use of Settlement Fund payments made to California pursuant to Sections IV and V of the Amneal Settlement Agreement. For the avoidance of doubt, this agreement does not apply to payments made pursuant to Sections IX or XIV of the Amneal Settlement Agreement.

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

2. Definitions
a) CA Participating Subdivision means a Participating Subdivision that is also (a) a Plaintiff Subdivision and/or (b) a Primary Subdivision with a population equal to or greater than 10,000. For the avoidance of doubt, eligible CA Participating Subdivisions are those California subdivisions listed in Exhibit C (excluding Litigating Special Districts) and/or Exhibit I to the Amneal Settlement Agreement. b) CA Litigating Special District means a Litigating Special District located in California. CA Litigating Special Districts include Central California Alliance for Health, Health Plan of San Joaquin, Santa Barbara San Luis Obispo Regional Health Authority d/b/a Cencal Health, and Ventura County Medi-Cal Managed Care Commission d/b/a Gold Coast Health Plan.
c) 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. d) Opioid Defendant means any defendant including but not limited to Alvogen, Inc.

Richard S. Sackler, Beverly Sackler, Jonathan Sackler, David Sackler, Marianna Sackler, Theresa Sackler, Ilene Sackler Lefcourt, Dr. Kathe Sackler, and Mortimer Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 181
2 D.A. Sackler) 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 Amneal Settlement Agreement, as well as applicable law, and the Amneal Settlement Agreement governs over any inconsistent provision of this CA Amneal Allocation Agreement. Terms used in this CA Amneal Allocation Agreement have the same meaning as in the Amneal Settlement Agreement unless otherwise defined herein.

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

This Agreement does not apply to funds received by California1 pursuant to Sections IX or XIV of the Amneal Settlement Agreement, including payments for Private Attorney Fees, the Additional Remediation Amount, and the Settlement Product Cash Conversion Amount.2

4. State Allocation
The Settlement Fund payments to California, pursuant to the Amneal 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 Amneal 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.
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1 For purposes of clarity, use of the term “California” refers to the geographic territory of California and the state and its local governments therein. The term “State” or “State of California” refers to the State of California as a governmental unit. 2All Settlement Product Cash Conversion Amounts paid to California pursuant to Section XIV of the Amneal Settlement Agreement shall be allocated to the State and used by the State for future Opioid Remediation.

Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 182
3 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 Amneal 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 the county is a CA Participating Subdivision; provided, however, that if a city currently receives direct payment of its share of funds in the National Opioids Settlement with Distributors Cencora, Inc. (f/k/a AmerisourceBergenCorporation), Cardinal Health, Inc., and McKesson Corporation (the “Distributors Settlement”), that city’s Local Allocation amount will be paid directly to the city. If a city later changes or has already changed its distribution election in the Distributors Settlement, that change in election will apply here, provided that the change in election is received by the settlement administrator at least 60 days prior to a Payment Date. A Local Allocation share allocated to a city but paid to a county is not required to be spent exclusively for abatement activities in that city, but will become part of the county’s share of the CA Abatement Accounts Funds, which will be used in accordance with Section 4.B.ii (Use of CA Abatement Accounts Funds) and reported on in accordance with Section 4.B.iii (CA Abatement Accounts Fund Oversight). d) A city within a county that is a CA Participating Subdivision may opt in or out of direct payment at any time, and it may also elect direct payment of only a portion of its share, with the remainder going to the county, by providing notice to the Settlement Fund Administrator at least 60 days prior to a Payment Date. For purposes of this CA Amneal 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.

Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 183
4 e) The State will receive the Local Allocation share of any payment to the Settlement Fund that is attributable to a county or city that is eligible to become a CA Participating Subdivision, but that has not, as of the date of that payment to the Settlement Fund, become a Participating Subdivision.
f) Funds received by a CA Participating Subdivision, and not expended or encumbered within five years of receipt and in accordance with the Amneal Settlement Agreement and this CA Amneal 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..
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 Amneal 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;
(5) interventions to prevent drug addiction in vulnerable youth, including but not limited to, youth in foster care, juvenile justice-impacted youth, youth experiencing adversities related to socioeconomic status, and unhoused youth; and/or (6) the purchase of naloxone for distribution and efforts to expand access to naloxone for opioid overdose reversals.
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 Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 184
5 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 Amneal 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 Amneal Settlement Agreement and this CA Amneal 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 Amneal Settlement Agreement and this CA Amneal Allocation Agreement.
b) If DHCS determines that a CA Participating Subdivision’s use of CA Abatement Accounts Funds is inconsistent with the Amneal Settlement Agreement or this CA Amneal Allocation Agreement, whether through review of reports or information from any other sources, DHCS shall send a request to meet and confer with the CA Participating Subdivision. The parties shall meet and confer in an effort to resolve the concern.
c) If the parties are unable to reach a resolution, DHCS may conduct an audit of the Subdivision’s use of the CA Abatement Accounts Funds within one year of the request to meet and confer, unless the parties mutually agree in writing to extend the meet and confer time frame.
d) If the concern still cannot be resolved, the State may bring a motion or action in the court where the State has filed its Consent Judgment to resolve the concern or otherwise enforce the requirements of the Amneal Settlement Agreement or this CA Amneal 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.

Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 185
6 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 Amneal Settlement Agreement and this CA Amneal Allocation Agreement, to fund future Opioid Remediation and reimburse past opioidrelated expenses, which may include fees and expenses related to litigation However, in no event shall more than one third (5% out of the 15%) of CA Subdivision Funds be used for litigation-related fees and expenses.

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

A Plaintiff Subdivision may separately agree to use up to one-third (5% out of the 15%) of 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 Amneal Settlement Agreement and the MDL Fees Order, provided that: (1) such payments, together with any payments to contingency-fee counsel from the Private Attorneys Fee amount related to such Plaintiff Subdivision, do not exceed 15% of a Plaintiff Subdivision’s total gross recovery under this Amneal Settlement Agreement; and (2) the Plaintiff Subdivision certifies that any payments made under a State Back-Stop agreement will be made in accordance with the 95% Opioid Abatement use requirements under Section VI.B.1 of the Amneal Settlement Agreement. Before seeking fees or litigation costs and expenses from a State Back-Stop Agreement, private counsel representing Plaintiff Subdivisions must first seek contingency fees and costs from the Attorney Fee Fund or Cost Funds created under the Amneal 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 2 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 2. The California Office of the Attorney Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 186
7 General will also consider requests from Plaintiff Subdivisions to execute and enter into agreements presented in other forms.

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 Amneal Settlement Agreement and this CA Amneal Allocation Agreement. The report will be in a form reasonably determined by DHCS. Prior to specifying the form of the report DHCS will confer with representatives of the Plaintiff Subdivisions.
c) The State and all CA Participating Subdivisions receiving CA Abatement Accounts Funds will track all deposits and expenditures. Each such subdivision is responsible solely for the CA Abatement Accounts Funds it receives. A county is not responsible for oversight, reporting, or monitoring of CA Abatement Accounts Funds received by a city within that county that receives direct payment. Unless otherwise exempt, Subdivisions’ expenditures and uses of CA Abatement Accounts Funds and other Settlement Funds will be subject to the normal budgetary and expenditure process of the Subdivision. d) Each Plaintiff Subdivision receiving CA Subdivision Funds will track all deposits and expenditures, as required by the Amneal Settlement Agreement and this CA Amneal Allocation Agreement. Among other things, Plaintiff Subdivisions using monies from the CA Subdivision Fund for purposes that do not qualify as Opioid Remediation must identify and include in their annual report, the amount and how such funds were used, including if used to pay attorneys’ fees, investigation costs, or litigation costs. Pursuant to Section V(B)(2) of the Amneal Settlement Agreement, such information must also be reported to the Settlement Fund Administrator and Amneal. 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.
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Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 187
8 6. Miscellaneous
a) The State or any CA Participating Subdivision may bring a motion or action in the court where the State has filed its Consent Judgment to enforce the requirements of this CA Amneal 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 Amneal Settlement Agreement, this CA Amneal 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 Amneal 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 Amneal Settlement Agreement, this agreement shall be governed by and interpreted in accordance with the laws of California.

Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 188
The undersigned, South Lake Tahoe city, CA, ACKNOWLEDGES acceptance of this Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds – Amneal Settlement is a requirement to be an Initial Participating Subdivision in the Amneal Settlement and ACCEPTS this Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds – Amneal Settlement.

Signature: /signer_1_som/
Name: /name_1_som/
Title: /title_1_som/
Date: /date_1_som/
Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 189
APPENDIX 2

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

Pursuant to this Backstop Agreement, [SUBDIVISION] may, subject to the limitations of the Amneal Settlement Agreement and CA Amneal Allocation Agreement, as well as any other limitations imposed by law, use funds that it receives from the Amneal Settlement CA Subdivision Fund to pay a contingent fee to [COUNSEL]. Any such payment from [SUBDIVISION] to [COUNSEL] from [SUBDIVISION’S] CA Subdivision Fund allocation will not exceed [PERCENTAGE NOT TO EXCEED ONE-THIRD OR 5% OUT OF THE 15%] out of the [SUBDIVISION’S] 15% CA Subdivision Fund allocation; provided further that such payments, together with any contingency-fees that [COUNSEL] may receive from the Attorney Fee Fund, will not exceed a total contingency fee of [PERCENTAGE NOT TO EXCEED 15%] of the total gross recovery of [SUBDIVISION] from the Amneal Settlement Agreement. [COUNSEL] certify that they first sought fees and costs from the Attorney Fee Fund created under the Amneal Settlement Agreement before seeking or accepting payment under this backstop agreement. [COUNSEL] further certify that they are not seeking and will not accept payment under this backstop agreement of any litigation fees or costs that have been reimbursed through prior settlements or judgments.

The Attorney General is executing this agreement solely because the definition of “State BackStop Agreement” in Exhibit R of the Amneal Settlement Agreement requires such agreements to be between “a Settling State” and private counsel for a participating subdivision. Neither the California Attorney General nor the State of California have any obligations under this Backstop Agreement, and this Backstop Agreement does not require the payment of any state funds to [SUBDIVISION], [COUNSEL], or any other party.
[DATE] [SUBDIVISION SIGNATURE BLOCK]
[DATE] [COUNSEL SIGNATURE BLOCK]
[DATE] [ATTORNEY GENERAL SIGNATURE BLOCK]
1 Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 190
1 Proposed California State-Subdivision Agreement
Regarding Distribution and Use of
Settlement Funds – Apotex Settlement

1. Introduction
Pursuant to the Apotex Settlement Agreement, dated as of April 4, 2025, and any revision thereto (the “Apotex Settlement Agreement”), including Section VI and Exhibit O, the State of California proposes this agreement (the “CA Apotex Allocation Agreement”) to govern the allocation, distribution, and use of Settlement Fund payments made to California pursuant to Sections V and VI of the Apotex Settlement Agreement. For the avoidance of doubt, this agreement does not apply to payments made pursuant to Section X of the Apotex Settlement Agreement.

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

2. Definitions
a) CA Participating Subdivision means a Participating Subdivision that is also (a) a Plaintiff Subdivision and/or (b) a Primary Subdivision with a population equal to or greater than 10,000. For the avoidance of doubt, eligible CA Participating Subdivisions are those California subdivisions listed in Exhibit C (excluding Litigating Special Districts) and/or Exhibit I to the Apotex Settlement Agreement. b) CA Litigating Special District means a Litigating Special District located in California.
c) 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. d) Opioid Defendant means any defendant including but not limited to Alvogen, Inc.

Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 191
2 3. General Terms
This agreement is subject to the requirements of the Apotex Settlement Agreement, as well as applicable law, and the Apotex Settlement Agreement governs over any inconsistent provision of this CA Apotex Allocation Agreement. Terms used in this CA Apotex Allocation Agreement have the same meaning as in the Apotex Settlement Agreement unless otherwise defined herein.

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

This Agreement does not apply to funds received by California1 pursuant to Section X of the Apotex Settlement Agreement, including payments for Private Attorney Fees and the Additional Remediation Amount.

4. State Allocation
The Settlement Fund payments to California, pursuant to the Apotex 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 Apotex 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 1 For purposes of clarity, use of the term “California” refers to the geographic territory of California and the state and its local governments therein. The term “State” or “State of California” refers to the State of California as a governmental unit.

Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 192
3 Abatement Accounts Fund allocated to each CA Participating Subdivision is set forth in Appendix 1 in the column entitled abatement percentage (the “Local Allocation”). For the avoidance of doubt, CA Litigating Special Districts and California towns, cities, and counties with a population less than 10,000 are not eligible to receive an allocation of CA Abatement Accounts Funds.
b) A CA Participating Subdivision that is a county, or a city and county, will be allocated its Local Allocation share as of the date on which it becomes a Participating Subdivision, and will receive payments as provided in the Apotex 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 the county is a CA Participating Subdivision; provided, however, that if a city currently receives direct payment of its share of funds in the National Opioids Settlement with Distributors Cencora, Inc. (f/k/a AmerisourceBergenCorporation), Cardinal Health, Inc., and McKesson Corporation (the “Distributors Settlement”), that city’s Local Allocation amount will be paid directly to the city. If a city later changes or has already changed its distribution election in the Distributors Settlement, that change in election will apply here, provided that the change in election is received by the settlement administrator at least 60 days prior to a Payment Date. A Local Allocation share allocated to a city but paid to a county is not required to be spent exclusively for abatement activities in that city, but will become part of the county’s share of the CA Abatement Accounts Funds, which will be used in accordance with Section 4.B.ii (Use of CA Abatement Accounts Funds) and reported on in accordance with Section 4.B.iii (CA Abatement Accounts Fund Oversight). d) A city within a county that is a CA Participating Subdivision may opt in or out of direct payment at any time, and it may also elect direct payment of only a portion of its share, with the remainder going to the county, by providing notice to the Settlement Fund Administrator at least 60 days prior to a Payment Date. For purposes of this CA Apotex 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 Apotex Settlement Agreement and this CA Apotex 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.

Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 193
4 ii. Use of CA Abatement Accounts Funds
a) The CA Abatement Accounts Funds will be used for future Opioid Remediation in one or more of the areas described in the List of Opioid Remediation Uses, which is Exhibit E to the Apotex 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;
(5) interventions to prevent drug addiction in vulnerable youth, including but not limited to, youth in foster care, juvenile justice-impacted youth, youth experiencing adversities related to socioeconomic status, and unhoused youth; and/or (6) the purchase of naloxone for distribution and efforts to expand access to naloxone for opioid overdose reversals.
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 Apotex 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 Apotex Settlement Agreement and this CA Apotex 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 Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 194
5 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 Apotex Settlement Agreement and this CA Apotex Allocation Agreement.
b) If DHCS determines that a CA Participating Subdivision’s use of CA Abatement Accounts Funds is inconsistent with the Apotex Settlement Agreement or this CA Apotex Allocation Agreement, whether through review of reports or information from any other sources, DHCS shall send a request to meet and confer with the CA Participating Subdivision. The parties shall meet and confer in an effort to resolve the concern. c) If the parties are unable to reach a resolution, DHCS may conduct an audit of the Subdivision’s use of the CA Abatement Accounts Funds within one year of the request to meet and confer, unless the parties mutually agree in writing to extend the meet and confer time frame.
d) If the concern still cannot be resolved, the State may bring a motion or action in the court where the State has filed its Consent Judgment to resolve the concern or otherwise enforce the requirements of the Apotex Settlement Agreement or this CA Apotex 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 Apotex Settlement Agreement and this CA Apotex Allocation Agreement, to fund future Opioid Remediation and reimburse past opioidrelated expenses, which may include fees and expenses related to litigation.

Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 195
6 However, in no event shall more than one third (5% out of the 15%) of CA Subdivision Funds be used for litigation-related fees and expenses.

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

A Plaintiff Subdivision may separately agree to use up to one-third (5% out of the 15%) of 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 Apotex Settlement Agreement and the MDL Fees Order, provided that: (1) such payments, together with any payments to contingency-fee counsel from the Private Attorneys Fee amount related to such Plaintiff Subdivision, do not exceed 15% of a Plaintiff Subdivision’s total gross recovery under this Apotex Settlement Agreement; and (2) the Plaintiff Subdivision certifies that any payments made under a State Back-Stop agreement will be made in accordance with the 95% Opioid Abatement use requirements under Section VI.B.1 of the Apotex Settlement Agreement. Before seeking fees or litigation costs and expenses from a State Back-Stop Agreement, private counsel representing Plaintiff Subdivisions must first seek contingency fees and costs from the Attorney Fee Fund or Cost Funds created under the Apotex 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.

For the avoidance of doubt, this agreement does not require a Plaintiff Subdivision to request or enter into a State Back-Stop Agreement, and no State Back-Stop Agreement shall impose any duty or obligation on the State of California or any of its agencies or officers, including without limitation the Attorney General.
///
Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 196
7 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 Apotex Settlement Agreement and this CA Apotex Allocation Agreement. The report will be in a form reasonably determined by DHCS. Prior to specifying the form of the report DHCS will confer with representatives of the Plaintiff Subdivisions.
c) The State and all CA Participating Subdivisions receiving CA Abatement Accounts Funds will track all deposits and expenditures. Each such subdivision is responsible solely for the CA Abatement Accounts Funds it receives. A county is not responsible for oversight, reporting, or monitoring of CA Abatement Accounts Funds received by a city within that county that receives direct payment. Unless otherwise exempt, Subdivisions’ expenditures and uses of CA Abatement Accounts Funds and other Settlement Funds will be subject to the normal budgetary and expenditure process of the Subdivision. d) Each Plaintiff Subdivision receiving CA Subdivision Funds will track all deposits and expenditures, as required by the Apotex Settlement Agreement and this CA Apotex Allocation Agreement. Among other things, Plaintiff Subdivisions using monies from the CA Subdivision Fund for purposes that do not qualify as Opioid Remediation must identify and include in their annual report, the amount and how such funds were used, including if used to pay attorneys’ fees, investigation costs, or litigation costs. Pursuant to Section VI(B)(2) of the Apotex Settlement Agreement, such information must also be reported to the Settlement Fund Administrator and Apotex. 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 Apotex 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 Apotex Settlement Agreement, this CA Apotex Allocation Agreement is not enforceable by any party other than the State and the CA Participating Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 197
8 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 Apotex 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 Apotex Settlement Agreement, this agreement shall be governed by and interpreted in accordance with the laws of California.

Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 198
9 The undersigned, South Lake Tahoe city, CA, ACKNOWLEDGES acceptance of this Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds – Apotex Settlement is a requirement to be an Initial Participating Subdivision in the Apotex Settlement and ACCEPTS this Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds – Apotex Settlement.

Signature: /signer_1_som/
Name: /name_1_som/
Title: /title_1_som/
Date: /date_1_som/
Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 199
APPENDIX 2

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

Pursuant to this Backstop Agreement, [SUBDIVISION] may, subject to the limitations of the Apotex Settlement Agreement and CA Apotex Allocation Agreement, as well as any other limitations imposed by law, use funds that it receives from the Apotex Settlement CA Subdivision Fund to pay a contingent fee to [COUNSEL]. Any such payment from [SUBDIVISION] to [COUNSEL] from [SUBDIVISION’S] CA Subdivision Fund allocation will not exceed [PERCENTAGE NOT TO EXCEED ONE-THIRD OR 5% OUT OF THE 15%] out of the [SUBDIVISION’S] 15% CA Subdivision Fund allocation; provided further that such payments, together with any contingency-fees that [COUNSEL] may receive from the Attorney Fee Fund will not exceed a total contingency fee of [PERCENTAGE NOT TO EXCEED 15%] of the total gross recovery of [SUBDIVISION] from the Apotex Settlement Agreement. [COUNSEL] certify that they first sought fees and costs from the Attorney Fee Fund created under the Apotex Settlement Agreement before seeking or accepting payment under this backstop agreement. [COUNSEL] further certify that they are not seeking and will not accept payment under this backstop agreement of any litigation fees or costs that have been reimbursed through prior settlements or judgments.

The Attorney General is executing this agreement solely because the definition of “State BackStop Agreement” in Exhibit R of the Apotex Settlement Agreement requires such agreements to be between “a Settling State” and private counsel for a participating subdivision. Neither the California Attorney General nor the State of California have any obligations under this Backstop Agreement, and this Backstop Agreement does not require the payment of any state funds to [SUBDIVISION], [COUNSEL], or any other party.
[DATE] [SUBDIVISION SIGNATURE BLOCK]
[DATE] [COUNSEL SIGNATURE BLOCK]
[DATE] [ATTORNEY GENERAL SIGNATURE BLOCK]
1 Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 200
1 Proposed California State-Subdivision Agreement
Regarding Distribution and Use of
Settlement Funds – Hikma Settlement

1. Introduction
Pursuant to the Hikma Settlement Agreement, dated as of April 4, 2025, and any revision thereto (the “Hikma Settlement Agreement”), including Section VI and Exhibit O, the State of California proposes this agreement (the “CA Hikma Allocation Agreement”) to govern the allocation, distribution, and use of Settlement Fund payments made to California pursuant to Sections V and VI of the Hikma Settlement Agreement. For the avoidance of doubt, this agreement does not apply to payments made pursuant to Sections X or XV of the Hikma Settlement Agreement.

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

2. Definitions
a) CA Participating Subdivision means a Participating Subdivision that is also (a) a Plaintiff Subdivision and/or (b) a Primary Subdivision with a population equal to or greater than 10,000. For the avoidance of doubt, eligible CA Participating Subdivisions are those California subdivisions listed in Exhibit C (excluding Litigating Special Districts) and/or Exhibit I to the Hikma Settlement Agreement. b) CA Litigating Special District means a Litigating Special District located in California.
c) 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. d) Opioid Defendant means any defendant including but not limited to Alvogen, Inc.

Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 201
2 3. General Terms
This agreement is subject to the requirements of the Hikma Settlement Agreement, as well as applicable law, and the Hikma Settlement Agreement governs over any inconsistent provision of this CA Hikma Allocation Agreement. Terms used in this CA Hikma Allocation Agreement have the same meaning as in the Hikma Settlement Agreement unless otherwise defined herein.

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

This Agreement does not apply to funds received by California1 pursuant to Sections X or XV of the Hikma Settlement Agreement, including payments for Private Attorney Fees, the Additional Remediation Amount, and the Settlement Product Cash Conversion Amount.2

4. State Allocation
The Settlement Fund payments to California, pursuant to the Hikma 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 Hikma 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 1 For purposes of clarity, use of the term “California” refers to the geographic territory of California and the state and its local governments therein. The term “State” or “State of California” refers to the State of California as a governmental unit. 2All Settlement Product Cash Conversion Amounts paid to California pursuant to Section XV of the Hikma Settlement Agreement shall be allocated to the State and used by the State for future Opioid Remediation.

Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 202
3 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 Hikma 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 the county is a CA Participating Subdivision; provided, however, that if a city currently receives direct payment of its share of funds in the National Opioids Settlement with Distributors Cencora, Inc. (f/k/a AmerisourceBergenCorporation), Cardinal Health, Inc., and McKesson Corporation (the “Distributors Settlement”), that city’s Local Allocation amount will be paid directly to the city. If a city later changes or has already changed its distribution election in the Distributors Settlement, that change in election will apply here, provided that the change in election is received by the settlement administrator at least 60 days prior to a Payment Date. A Local Allocation share allocated to a city but paid to a county is not required to be spent exclusively for abatement activities in that city, but will become part of the county’s share of the CA Abatement Accounts Funds, which will be used in accordance with Section 4.B.ii (Use of CA Abatement Accounts Funds) and reported on in accordance with Section 4.B.iii (CA Abatement Accounts Fund Oversight). d) A city within a county that is a CA Participating Subdivision may opt in or out of direct payment at any time, and it may also elect direct payment of only a portion of its share, with the remainder going to the county, by providing notice to the Settlement Fund Administrator at least 60 days prior to a Payment Date. For purposes of this CA Hikma 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 Hikma Settlement Agreement and this CA Hikma Allocation Agreement shall be transferred to the State; provided however, Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 203
4 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..
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 Hikma 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;
(5) interventions to prevent drug addiction in vulnerable youth, including but not limited to, youth in foster care, juvenile justice-impacted youth, youth experiencing adversities related to socioeconomic status, and unhoused youth; and/or (6) the purchase of naloxone for distribution and efforts to expand access to naloxone for opioid overdose reversals.
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 Hikma 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 Hikma Settlement Agreement and this CA Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 204
5 Hikma 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 Hikma Settlement Agreement and this CA Hikma Allocation Agreement.
b) If DHCS determines that a CA Participating Subdivision’s use of CA Abatement Accounts Funds is inconsistent with the Hikma Settlement Agreement or this CA Hikma Allocation Agreement, whether through review of reports or information from any other sources, DHCS shall send a request to meet and confer with the CA Participating Subdivision. The parties shall meet and confer in an effort to resolve the concern. c) If the parties are unable to reach a resolution, DHCS may conduct an audit of the Subdivision’s use of the CA Abatement Accounts Funds within one year of the request to meet and confer, unless the parties mutually agree in writing to extend the meet and confer time frame.
d) If the concern still cannot be resolved, the State may bring a motion or action in the court where the State has filed its Consent Judgment to resolve the concern or otherwise enforce the requirements of the Hikma Settlement Agreement or this CA Hikma 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 Hikma Settlement Agreement and this CA Hikma Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 205
6 Allocation Agreement, to fund future Opioid Remediation and reimburse past opioidrelated expenses, which may include fees and expenses related to litigation However, in no event shall more than one third (5% out of the 15%) of CA Subdivision Funds be used for litigation-related fees and expenses.

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

A Plaintiff Subdivision may separately agree to use up to one-third (5% out of the 15%) of 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 Hikma Settlement Agreement and the MDL Fees Order, provided that: (1) such payments, together with any payments to contingency-fee counsel from the Private Attorneys Fee amount related to such Plaintiff Subdivision, do not exceed 15% of a Plaintiff Subdivision’s total gross recovery under this Hikma Settlement Agreement; and (2) the Plaintiff Subdivision certifies that any payments made under a State Back-Stop agreement will be made in accordance with the 95% Opioid Abatement use requirements under Section VI.B.1 of the Hikma Settlement Agreement. Before seeking fees or litigation costs and expenses from a State Back-Stop Agreement, private counsel representing Plaintiff Subdivisions must first seek contingency fees and costs from the Attorney Fee Fund or Cost Funds created under the Hikma 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.

For the avoidance of doubt, this agreement does not require a Plaintiff Subdivision to request or enter into a State Back-Stop Agreement, and no State Back-Stop Agreement shall impose any duty or obligation on the State of California or any of its agencies or officers, including without limitation the Attorney General.
///
Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 206
7 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 Hikma Settlement Agreement and this CA Hikma Allocation Agreement. The report will be in a form reasonably determined by DHCS. Prior to specifying the form of the report DHCS will confer with representatives of the Plaintiff Subdivisions.
c) The State and all CA Participating Subdivisions receiving CA Abatement Accounts Funds will track all deposits and expenditures. Each such subdivision is responsible solely for the CA Abatement Accounts Funds it receives. A county is not responsible for oversight, reporting, or monitoring of CA Abatement Accounts Funds received by a city within that county that receives direct payment. Unless otherwise exempt, Subdivisions’ expenditures and uses of CA Abatement Accounts Funds and other Settlement Funds will be subject to the normal budgetary and expenditure process of the Subdivision. d) Each Plaintiff Subdivision receiving CA Subdivision Funds will track all deposits and expenditures, as required by the Hikma Settlement Agreement and this CA Hikma Allocation Agreement. Among other things, Plaintiff Subdivisions using monies from the CA Subdivision Fund for purposes that do not qualify as Opioid Remediation must identify and include in their annual report, the amount and how such funds were used, including if used to pay attorneys’ fees, investigation costs, or litigation costs. Pursuant to Section V(B)(2) of the Hikma Settlement Agreement, such information must also be reported to the Settlement Fund Administrator and Hikma. 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 Hikma 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 Hikma Settlement Agreement, this CA Hikma Allocation Agreement is not enforceable by any party other than the State and the CA Participating Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 207
8 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 Hikma 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 Hikma Settlement Agreement, this agreement shall be governed by and interpreted in accordance with the laws of California.

Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 208
9 The undersigned, South Lake Tahoe city, CA, ACKNOWLEDGES acceptance of this Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds – Hikma Settlement is a requirement to be an Initial Participating Subdivision in the Hikma Settlement and ACCEPTS this Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds – Hikma Settlement.

Signature: /signer_1_som/
Name: /name_1_som/
Title: /title_1_som/
Date: /date_1_som/
Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 209
APPENDIX 2

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

Pursuant to this Backstop Agreement, [SUBDIVISION] may, subject to the limitations of the Hikma Settlement Agreement and CA Hikma Allocation Agreement, as well as any other limitations imposed by law, use funds that it receives from the Hikma Settlement CA Subdivision Fund to pay a contingent fee to [COUNSEL]. Any such payment from [SUBDIVISION] to [COUNSEL] from [SUBDIVISION’S] CA Subdivision Fund allocation will not exceed [PERCENTAGE NOT TO EXCEED ONE-THIRD OR 5% OUT OF THE 15%] out
of the [SUBDIVISION’S] 15% CA Subdivision Fund allocation; provided further that such payments, together with any contingency-fees that [COUNSEL] may receive from the Attorney Fee Fund, will not exceed a total contingency fee of [PERCENTAGE NOT TO EXCEED 15%] of the total gross recovery of [SUBDIVISION] from the Hikma Settlement Agreement. [COUNSEL] certify that they first sought fees and costs from the Attorney Fee Fund created under the Hikma Settlement Agreement before seeking or accepting payment under this backstop agreement. [COUNSEL] further certify that they are not seeking and will not accept payment under this backstop agreement of any litigation fees or costs that have been reimbursed through prior settlements or judgments.

The Attorney General is executing this agreement solely because the definition of “State BackStop Agreement” in Exhibit R of the Hikma Settlement Agreement requires such agreements to be between “a Settling State” and private counsel for a participating subdivision. Neither the California Attorney General nor the State of California have any obligations under this Backstop Agreement, and this Backstop Agreement does not require the payment of any state funds to [SUBDIVISION], [COUNSEL], or any other party.
[DATE] [SUBDIVISION SIGNATURE BLOCK]
[DATE] [COUNSEL SIGNATURE BLOCK]
[DATE] [ATTORNEY GENERAL SIGNATURE BLOCK]
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1 Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 211
1 Proposed California State-Subdivision Agreement
Regarding Distribution and Use of
Settlement Funds – Indivior Settlement

1. Introduction
Pursuant to the Indivior Settlement Agreement, dated as of April 4, 2025, and any revision thereto (the “Indivior Settlement Agreement”), including Section V and Exhibit O, the State of California proposes this agreement (the “CA Indivior Allocation Agreement”) to govern the allocation, distribution, and use of Settlement Fund payments made to California pursuant to Sections IV and V of the Indivior Settlement Agreement. For the avoidance of doubt, this agreement does not apply to payments made pursuant to Sections IX or XIV of the Indivior Settlement Agreement.

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

2. Definitions
a) CA Participating Subdivision means a Participating Subdivision that is also (a) a Plaintiff Subdivision and/or (b) a Primary Subdivision with a population equal to or greater than 10,000. For the avoidance of doubt, eligible CA Participating Subdivisions are those California subdivisions listed in Exhibit C (excluding Litigating Special Districts) and/or Exhibit I to the Indivior Settlement Agreement. b) CA Litigating Special District means a Litigating Special District located in California.
c) 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. d) Opioid Defendant means any defendant including but not limited to Alvogen, Inc.

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

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

This Agreement does not apply to funds received by California1 pursuant to Sections IX or XIV of the Indivior Settlement Agreement, including payments for Private Attorney Fees, the Additional Remediation Amount, and the Settlement Product Cash Conversion Amount. 2

4. State Allocation
The Settlement Fund payments to California, pursuant to the Indivior 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 Indivior 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 1 For purposes of clarity, use of the term “California” refers to the geographic territory of California and the state and its local governments therein. The term “State” or “State of California” refers to the State of California as a governmental unit. 2All Settlement Product Cash Conversion Amounts paid to California pursuant to Section XIV of the Indivior Settlement Agreement shall be allocated to the State and used by the State for future Opioid Remediation.

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3 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 Indivior 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 the county is a CA Participating Subdivision; provided, however, that if a city currently receives direct payment of its share of funds in the National Opioids Settlement with Distributors Cencora, Inc. (f/k/a AmerisourceBergenCorporation), Cardinal Health, Inc., and McKesson Corporation (the “Distributors Settlement”), that city’s Local Allocation amount will be paid directly to the city. If a city later changes or has already changed its distribution election in the Distributors Settlement, that change in election will apply here, provided that the change in election is received by the settlement administrator at least 60 days prior to a Payment Date. A Local Allocation share allocated to a city but paid to a county is not required to be spent exclusively for abatement activities in that city, but will become part of the county’s share of the CA Abatement Accounts Funds, which will be used in accordance with Section 4.B.ii (Use of CA Abatement Accounts Funds) and reported on in accordance with Section 4.B.iii (CA Abatement Accounts Fund Oversight). d) A city within a county that is a CA Participating Subdivision may opt in or out of direct payment at any time, and it may also elect direct payment of only a portion of its share, with the remainder going to the county, by providing notice to the Settlement Fund Administrator at least 60 days prior to a Payment Date. For purposes of this CA Indivior 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 Indivior Settlement Agreement and this CA Indivior Allocation Agreement shall be transferred to the State; provided Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 214
4 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..
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 Indivior 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;
(5) interventions to prevent drug addiction in vulnerable youth, including but not limited to, youth in foster care, juvenile justice-impacted youth, youth experiencing adversities related to socioeconomic status, and unhoused youth; and/or (6) the purchase of naloxone for distribution and efforts to expand access to naloxone for opioid overdose reversals.
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 Indivior 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 Indivior Settlement Agreement and this CA Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 215
5 Indivior 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 Indivior Settlement Agreement and this CA Indivior Allocation Agreement.
b) If DHCS determines that a CA Participating Subdivision’s use of CA Abatement Accounts Funds is inconsistent with the Indivior Settlement Agreement or this CA Indivior Allocation Agreement, whether through review of reports or information from any other sources, DHCS shall send a request to meet and confer with the CA Participating Subdivision. The parties shall meet and confer in an effort to resolve the concern.
c) If the parties are unable to reach a resolution, DHCS may conduct an audit of the Subdivision’s use of the CA Abatement Accounts Funds within one year of the request to meet and confer, unless the parties mutually agree in writing to extend the meet and confer time frame.
d) If the concern still cannot be resolved, the State may bring a motion or action in the court where the State has filed its Consent Judgment to resolve the concern or otherwise enforce the requirements of the Indivior Settlement Agreement or this CA Indivior 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, Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 216
6 subject to any limits imposed by the Indivior Settlement Agreement and this CA Indivior Allocation Agreement, to fund future Opioid Remediation and reimburse past opioidrelated expenses, which may include fees and expenses related to litigation However, in no event shall more than one third (5% out of the 15%) of CA Subdivision Funds be used for litigation-related fees and expenses.

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

A Plaintiff Subdivision may separately agree to use up to one-third (5% out of the 15%) of 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 Indivior Settlement Agreement and the MDL Fees Order, provided that: (1) such payments, together with any payments to contingency-fee counsel from the Private Attorneys Fee amount related to such Plaintiff Subdivision, do not exceed 15% of a Plaintiff Subdivision’s total gross recovery under this Indivior Settlement Agreement; and (2) the Plaintiff Subdivision certifies that any payments made under a State Back-Stop agreement will be made in accordance with the 95% Opioid Abatement use requirements under Section V.B.1 of the Indivior Settlement Agreement. Before seeking fees or litigation costs and expenses from a State Back-Stop Agreement, private counsel representing Plaintiff Subdivisions must first seek contingency fees and costs from the Attorney Fee Fund or Cost Funds created under the Indivior 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.

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.
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7 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 Indivior Settlement Agreement and this CA Indivior Allocation Agreement. The report will be in a form reasonably determined by DHCS. Prior to specifying the form of the report DHCS will confer with representatives of the Plaintiff Subdivisions.
c) The State and all CA Participating Subdivisions receiving CA Abatement Accounts Funds will track all deposits and expenditures. Each such subdivision is responsible solely for the CA Abatement Accounts Funds it receives. A county is not responsible for oversight, reporting, or monitoring of CA Abatement Accounts Funds received by a city within that county that receives direct payment. Unless otherwise exempt, Subdivisions’ expenditures and uses of CA Abatement Accounts Funds and other Settlement Funds will be subject to the normal budgetary and expenditure process of the Subdivision. d) Each Plaintiff Subdivision receiving CA Subdivision Funds will track all deposits and expenditures, as required by the Indivior Settlement Agreement and this CA Indivior Allocation Agreement. Among other things, Plaintiff Subdivisions using monies from the CA Subdivision Fund for purposes that do not qualify as Opioid Remediation must identify and include in their annual report, the amount and how such funds were used, including if used to pay attorneys’ fees, investigation costs, or litigation costs. Pursuant to Section V(B)(2) of the Indivior Settlement Agreement, such information must also be reported to the Settlement Fund Administrator and Indivior. 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 Indivior 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 Indivior Settlement Agreement, this CA Indivior Allocation Agreement is not enforceable by any party other than the State and the CA Participating Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 218
8 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 Indivior 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 Indivior Settlement Agreement, this agreement shall be governed by and interpreted in accordance with the laws of California.

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9 The undersigned, South Lake Tahoe city, CA, ACKNOWLEDGES acceptance of this Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds – Indivior Settlement is a requirement to be an Initial Participating Subdivision in the Indivior Settlement and ACCEPTS this Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds –Indivior Settlement.

Signature: /signer_1_som/
Name: /name_1_som/
Title: /title_1_som/
Date: /date_1_som/
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APPENDIX 2

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

Pursuant to this Backstop Agreement, [SUBDIVISION] may, subject to the limitations of the Indivior Settlement Agreement and CA Indivior Allocation Agreement, as well as any other limitations imposed by law, use funds that it receives from the Indivior Settlement CA Subdivision Fund to pay a contingent fee to [COUNSEL]. Any such payment from [SUBDIVISION] to [COUNSEL] from [SUBDIVISION’S] CA Subdivision Fund allocation will not exceed [PERCENTAGE NOT TO EXCEED ONE-THIRD OR 5% OUT OF THE 15%] out of the [SUBDIVISION’S] 15% CA Subdivision Fund allocation; provided further that such payments, together with any contingency-fees that [COUNSEL] may receive from the Attorney Fee Fund, will not exceed a total contingency fee of [PERCENTAGE NOT TO EXCEED 15%] of the total gross recovery of [SUBDIVISION] from the Indivior Settlement Agreement. [COUNSEL] certify that they first sought fees and costs from the Attorney Fee Fund created under the Indivior Settlement Agreement before seeking or accepting payment under this backstop agreement. [COUNSEL] further certify that they are not seeking and will not accept payment under this backstop agreement of any litigation fees or costs that have been reimbursed through prior settlements or judgments.

The Attorney General is executing this agreement solely because the definition of “State BackStop Agreement” in Exhibit R of the Indivior Settlement Agreement requires such agreements to be between “a Settling State” and private counsel for a participating subdivision. Neither the California Attorney General nor the State of California have any obligations under this Backstop Agreement, and this Backstop Agreement does not require the payment of any state funds to [SUBDIVISION], [COUNSEL], or any other party.
[DATE] [SUBDIVISION SIGNATURE BLOCK]
[DATE] [COUNSEL SIGNATURE BLOCK]
[DATE] [ATTORNEY GENERAL SIGNATURE BLOCK]
1 Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 221
1 Proposed California State-Subdivision Agreement
Regarding Distribution and Use of
Settlement Funds – Mylan Settlement

1. Introduction
Pursuant to the Mylan Settlement Agreement, dated as of April 4, 2025, and any revision thereto (the “Mylan Settlement Agreement”), including Section V and Exhibit O, the State of California proposes this agreement (the “CA Mylan Allocation Agreement”) to govern the allocation, distribution, and use of Settlement Fund payments made to California pursuant to Sections IV and V of the Mylan Settlement Agreement. For the avoidance of doubt, this agreement does not apply to payments made pursuant to Section IX of the Mylan Settlement Agreement.

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

2. Definitions
a) CA Participating Subdivision means a Participating Subdivision that is also (a) a Plaintiff Subdivision and/or (b) a Primary Subdivision with a population equal to or greater than 10,000. For the avoidance of doubt, eligible CA Participating Subdivisions are those California subdivisions listed in Exhibit C (excluding Litigating Special Districts) and/or Exhibit I to the Mylan Settlement Agreement. b) CA Litigating Special District means a Litigating Special District located in California. CA Litigating Special Districts include Susanville Elementary School District and Lassen County Office of Education.
c) 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. d) Opioid Defendant means any defendant including but not limited to Alvogen, Inc.

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

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

This Agreement does not apply to funds received by California1 pursuant to Section IX of the Mylan Settlement Agreement, including payments for Private Attorney Fees and the Additional Remediation Amount.

4. State Allocation
The Settlement Fund payments to California, pursuant to the Mylan 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 Mylan 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 1 For purposes of clarity, use of the term “California” refers to the geographic territory of California and the state and its local governments therein. The term “State” or “State of California” refers to the State of California as a governmental unit.

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3 Abatement Accounts Fund allocated to each CA Participating Subdivision is set forth in Appendix 1 in the column entitled abatement percentage (the “Local Allocation”). For the avoidance of doubt, CA Litigating Special Districts and California towns, cities, and counties with a population less than 10,000 are not eligible to receive an allocation of CA Abatement Accounts Funds.
b) A CA Participating Subdivision that is a county, or a city and county, will be allocated its Local Allocation share as of the date on which it becomes a Participating Subdivision, and will receive payments as provided in the Mylan 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 the county is a CA Participating Subdivision; provided, however, that if a city currently receives direct payment of its share of funds in the National Opioids Settlement with Distributors Cencora, Inc. (f/k/a AmerisourceBergenCorporation), Cardinal Health, Inc., and McKesson Corporation (the “Distributors Settlement”), that city’s Local Allocation amount will be paid directly to the city. If a city later changes or has already changed its distribution election in the Distributors Settlement, that change in election will apply here, provided that the change in election is received by the settlement administrator at least 60 days prior to a Payment Date. A Local Allocation share allocated to a city but paid to a county is not required to be spent exclusively for abatement activities in that city, but will become part of the county’s share of the CA Abatement Accounts Funds, which will be used in accordance with Section 4.B.ii (Use of CA Abatement Accounts Funds) and reported on in accordance with Section 4.B.iii (CA Abatement Accounts Fund Oversight). d) A city within a county that is a CA Participating Subdivision may opt in or out of direct payment at any time, and it may also elect direct payment of only a portion of its share, with the remainder going to the county, by providing notice to the Settlement Fund Administrator at least 60 days prior to a Payment Date. For purposes of this CA Mylan 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 Mylan Settlement Agreement and this CA Mylan 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.

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4 ii. Use of CA Abatement Accounts Funds
a) The CA Abatement Accounts Funds will be used for future Opioid Remediation in one or more of the areas described in the List of Opioid Remediation Uses, which is Exhibit E to the Mylan 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;
(5) interventions to prevent drug addiction in vulnerable youth, including but not limited to, youth in foster care, juvenile justice-impacted youth, youth experiencing adversities related to socioeconomic status, and unhoused youth; and/or (6) the purchase of naloxone for distribution and efforts to expand access to naloxone for opioid overdose reversals.
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 Mylan 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 Mylan Settlement Agreement and this CA Mylan 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 Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 225
5 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 Mylan Settlement Agreement and this CA Mylan Allocation Agreement.
b) If DHCS determines that a CA Participating Subdivision’s use of CA Abatement Accounts Funds is inconsistent with the Mylan Settlement Agreement or this CA Mylan Allocation Agreement, whether through review of reports or information from any other sources, DHCS shall send a request to meet and confer with the CA Participating Subdivision. The parties shall meet and confer in an effort to resolve the concern. c) If the parties are unable to reach a resolution, DHCS may conduct an audit of the Subdivision’s use of the CA Abatement Accounts Funds within one year of the request to meet and confer, unless the parties mutually agree in writing to extend the meet and confer time frame.
d) If the concern still cannot be resolved, the State may bring a motion or action in the court where the State has filed its Consent Judgment to resolve the concern or otherwise enforce the requirements of the Mylan Settlement Agreement or this CA Mylan 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 Mylan Settlement Agreement and this CA Mylan Allocation Agreement, to fund future Opioid Remediation and reimburse past opioidrelated expenses, which may include fees and expenses related to litigation.

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6 However, in no event shall more than one third (5% out of the 15%) of CA Subdivision Funds be used for litigation-related fees and expenses.

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

A Plaintiff Subdivision may separately agree to use up to one-third (5% out of the 15%) of 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 Mylan Settlement Agreement and the MDL Fees Order, provided that: (1) such payments, together with any payments to contingency-fee counsel from the Private Attorneys Fee amount related to such Plaintiff Subdivision, do not exceed 15% of a Plaintiff Subdivision’s total gross recovery under this Mylan Settlement Agreement; and (2) the Plaintiff Subdivision certifies that any payments made under a State Back-Stop agreement will be made in accordance with the 95% Opioid Abatement use requirements under Section V(B)(1) of the Mylan Settlement Agreement. Before seeking fees or litigation costs and expenses from a State Back-Stop Agreement, private counsel representing Plaintiff Subdivisions must first seek contingency fees and costs from the Attorney Fee Fund or Cost Funds created under the Mylan 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.

For the avoidance of doubt, this agreement does not require a Plaintiff Subdivision to request or enter into a State Back-Stop Agreement, and no State Back-Stop Agreement shall impose any duty or obligation on the State of California or any of its agencies or officers, including without limitation the Attorney General.
///
Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 227
7 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 Mylan Settlement Agreement and this CA Mylan Allocation Agreement. The report will be in a form reasonably determined by DHCS. Prior to specifying the form of the report DHCS will confer with representatives of the Plaintiff Subdivisions.
c) The State and all CA Participating Subdivisions receiving CA Abatement Accounts Funds will track all deposits and expenditures. Each such subdivision is responsible solely for the CA Abatement Accounts Funds it receives. A county is not responsible for oversight, reporting, or monitoring of CA Abatement Accounts Funds received by a city within that county that receives direct payment. Unless otherwise exempt, Subdivisions’ expenditures and uses of CA Abatement Accounts Funds and other Settlement Funds will be subject to the normal budgetary and expenditure process of the Subdivision. d) Each Plaintiff Subdivision receiving CA Subdivision Funds will track all deposits and expenditures, as required by the Mylan Settlement Agreement and this CA Mylan Allocation Agreement. Among other things, Plaintiff Subdivisions using monies from the CA Subdivision Fund for purposes that do not qualify as Opioid Remediation must identify and include in their annual report, the amount and how such funds were used, including if used to pay attorneys’ fees, investigation costs, or litigation costs. Pursuant to Section V(B)(2) of the Mylan Settlement Agreement, such information must also be reported to the Settlement Fund Administrator and Mylan. 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 Mylan 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 Mylan Settlement Agreement, this CA Mylan Allocation Agreement is not enforceable by any party other than the State and the CA Participating Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 228
8 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 Mylan 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 Mylan Settlement Agreement, this agreement shall be governed by and interpreted in accordance with the laws of California.

Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 229
9 The undersigned, South Lake Tahoe city, CA, ACKNOWLEDGES acceptance of this Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds –Mylan Settlement is a requirement to be an Initial Participating Subdivision in the Mylan Settlement and ACCEPTS this Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds – Mylan Settlement.

Signature: /signer_1_som/
Name: /name_1_som/
Title: /title_1_som/
Date: /date_1_som/
Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 230
APPENDIX 2

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

Pursuant to this Backstop Agreement, [SUBDIVISION] may, subject to the limitations of the Mylan Settlement Agreement and CA Mylan Allocation Agreement, as well as any other limitations imposed by law, use funds that it receives from the Mylan Settlement CA Subdivision Fund to pay a contingent fee to [COUNSEL]. Any such payment from [SUBDIVISION] to [COUNSEL] from [SUBDIVISION’S] CA Subdivision Fund allocation will not exceed [PERCENTAGE NOT TO EXCEED ONE-THIRD OR 5% OUT OF THE 15%] out of the [SUBDIVISION’S] 15% CA Subdivision Fund allocation; provided further that such payments, together with any contingency-fees that [COUNSEL] may receive from the Attorney Fee Fund will not exceed a total contingency fee of [PERCENTAGE NOT TO EXCEED 15%] of the total gross recovery of [SUBDIVISION] from the Mylan Settlement Agreement. [COUNSEL] certify that they first sought fees and costs from the Attorney Fee Fund created under the Mylan Settlement Agreement before seeking or accepting payment under this backstop agreement. [COUNSEL] further certify that they are not seeking and will not accept payment under this backstop agreement of any litigation fees or costs that have been reimbursed through prior settlements or judgments.

The Attorney General is executing this agreement solely because the definition of “State BackStop Agreement” in Exhibit R of the Mylan Settlement Agreement requires such agreements to be between “a Settling State” and private counsel for a participating subdivision. Neither the California Attorney General nor the State of California have any obligations under this Backstop Agreement, and this Backstop Agreement does not require the payment of any state funds to [SUBDIVISION], [COUNSEL], or any other party.
[DATE] [SUBDIVISION SIGNATURE BLOCK]
[DATE] [COUNSEL SIGNATURE BLOCK]
[DATE] [ATTORNEY GENERAL SIGNATURE BLOCK]
1 Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 231
1 Proposed California State-Subdivision Agreement
Regarding Distribution and Use of
Settlement Funds – Sun Settlement

1. Introduction
Pursuant to the Sun Settlement Agreement, dated as of April 4, 2025, and any revision thereto (the “Sun Settlement Agreement”), including Section VI and Exhibit O, the State of California proposes this agreement (the “CA Sun Allocation Agreement”) to govern the allocation, distribution, and use of Settlement Fund payments made to California pursuant to Sections V and VI of the Sun Settlement Agreement. For the avoidance of doubt, this agreement does not apply to payments made pursuant to Section X of the Sun Settlement Agreement.

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

2. Definitions
a) CA Participating Subdivision means a Participating Subdivision that is also (a) a Plaintiff Subdivision and/or (b) a Primary Subdivision with a population equal to or greater than 10,000. For the avoidance of doubt, eligible CA Participating Subdivisions are those California subdivisions listed in Exhibit C (excluding Litigating Special Districts) and/or Exhibit I to the Sun Settlement Agreement. b) CA Litigating Special District means a Litigating Special District located in California.
c) 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. d) Opioid Defendant means any defendant including but not limited to Alvogen, Inc.

Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 232
2 3. General Terms
This agreement is subject to the requirements of the Sun Settlement Agreement, as well as applicable law, and the Sun Settlement Agreement governs over any inconsistent provision of this CA Sun Allocation Agreement. Terms used in this CA Sun Allocation Agreement have the same meaning as in the Sun Settlement Agreement unless otherwise defined herein.

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

This Agreement does not apply to funds received by California1 pursuant to Section X of the Sun Settlement Agreement, including payments for Private Attorney Fees and the Additional Remediation Amount.

4. State Allocation
The Settlement Fund payments to California, pursuant to the Sun 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 Sun 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 1 For purposes of clarity, use of the term “California” refers to the geographic territory of California and the state and its local governments therein. The term “State” or “State of California” refers to the State of California as a governmental unit.

Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 233
3 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 Sun 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 the county is a CA Participating Subdivision; provided, however, that if a city currently receives direct payment of its share of funds in the National Opioids Settlement with Distributors Cencora, Inc. (f/k/a AmerisourceBergenCorporation), Cardinal Health, Inc., and McKesson Corporation (the “Distributors Settlement”), that city’s Local Allocation amount will be paid directly to the city. If a city later changes or has already changed its distribution election in the Distributors Settlement, that change in election will apply here, provided that the change in election is received by the settlement administrator at least 60 days prior to a Payment Date. A Local Allocation share allocated to a city but paid to a county is not required to be spent exclusively for abatement activities in that city, but will become part of the county’s share of the CA Abatement Accounts Funds, which will be used in accordance with Section 4.B.ii (Use of CA Abatement Accounts Funds) and reported on in accordance with Section 4.B.iii (CA Abatement Accounts Fund Oversight). d) A city within a county that is a CA Participating Subdivision may opt in or out of direct payment at any time, and it may also elect direct payment of only a portion of its share, with the remainder going to the county, by providing notice to the Settlement Fund Administrator at least 60 days prior to a Payment Date. For purposes of this CA Sun 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 Sun Settlement Agreement and this CA Sun 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.

Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 234
4 ii. Use of CA Abatement Accounts Funds
a) The CA Abatement Accounts Funds will be used for future Opioid Remediation in one or more of the areas described in the List of Opioid Remediation Uses, which is Exhibit E to the Sun 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;
(5) interventions to prevent drug addiction in vulnerable youth, including but not limited to, youth in foster care, juvenile justice-impacted youth, youth experiencing adversities related to socioeconomic status, and unhoused youth; and/or (6) the purchase of naloxone for distribution and efforts to expand access to naloxone for opioid overdose reversals.
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 Sun 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 Sun Settlement Agreement and this CA Sun 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 Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 235
5 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 Sun Settlement Agreement and this CA Sun Allocation Agreement.
b) If DHCS determines that a CA Participating Subdivision’s use of CA Abatement Accounts Funds is inconsistent with the Sun Settlement Agreement or this CA Sun Allocation Agreement, whether through review of reports or information from any other sources, DHCS shall send a request to meet and confer with the CA Participating Subdivision. The parties shall meet and confer in an effort to resolve the concern. c) If the parties are unable to reach a resolution, DHCS may conduct an audit of the Subdivision’s use of the CA Abatement Accounts Funds within one year of the request to meet and confer, unless the parties mutually agree in writing to extend the meet and confer time frame.
d) If the concern still cannot be resolved, the State may bring a motion or action in the court where the State has filed its Consent Judgment to resolve the concern or otherwise enforce the requirements of the Sun Settlement Agreement or this CA Sun 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 Sun Settlement Agreement and this CA Sun Allocation Agreement, to fund future Opioid Remediation and reimburse past opioidrelated expenses, which may include fees and expenses related to litigation.

Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 236
6 However, in no event shall more than one third (5% out of the 15%) of CA Subdivision Funds be used for litigation-related fees and expenses.

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

A Plaintiff Subdivision may separately agree to use up to one-third (5% out of the 15%) of its share of the CA Subdivision Fund to pay for fees or costs incurred by its contingency-fee counsel (“State Back-Stop Agreement”), pursuant to Exhibit R, section I(Y), of the Sun Settlement Agreement and the MDL Fees Order, provided that: (1) such payments, together with any payments to contingency-fee counsel from the Private Attorneys Fee amount related to such Plaintiff Subdivision, do not exceed 15% of a Plaintiff Subdivision’s total gross recovery under this Sun Settlement Agreement; and (2) the Plaintiff Subdivision certifies that any payments made under a State Back-Stop agreement will be made in accordance with the 95% Opioid Abatement use requirements under Section VI(B)(1) of the Sun Settlement Agreement. Before seeking fees or litigation costs and expenses from a State Back-Stop Agreement, private counsel representing Plaintiff Subdivisions must first seek contingency fees and costs from the Attorney Fee Fund or Cost Funds created under the Sun 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.

For the avoidance of doubt, this agreement does not require a Plaintiff Subdivision to request or enter into a State Back-Stop Agreement, and no State Back-Stop Agreement shall impose any duty or obligation on the State of California or any of its agencies or officers, including without limitation the Attorney General.
///
Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 237
7 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 Sun Settlement Agreement and this CA Sun Allocation Agreement. The report will be in a form reasonably determined by DHCS. Prior to specifying the form of the report DHCS will confer with representatives of the Plaintiff Subdivisions.
c) The State and all CA Participating Subdivisions receiving CA Abatement Accounts Funds will track all deposits and expenditures. Each such subdivision is responsible solely for the CA Abatement Accounts Funds it receives. A county is not responsible for oversight, reporting, or monitoring of CA Abatement Accounts Funds received by a city within that county that receives direct payment. Unless otherwise exempt, Subdivisions’ expenditures and uses of CA Abatement Accounts Funds and other Settlement Funds will be subject to the normal budgetary and expenditure process of the Subdivision. d) Each Plaintiff Subdivision receiving CA Subdivision Funds will track all deposits and expenditures, as required by the Sun Settlement Agreement and this CA Sun Allocation Agreement. Among other things, Plaintiff Subdivisions using monies from the CA Subdivision Fund for purposes that do not qualify as Opioid Remediation must identify and include in their annual report, the amount and how such funds were used, including if used to pay attorneys’ fees, investigation costs, or litigation costs. Pursuant to Section VI(B)(2) of the Sun Settlement Agreement, such information must also be reported to the Settlement Fund Administrator and Sun.
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 Sun 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 Sun Settlement Agreement, this CA Sun Allocation Agreement is not enforceable by any party other than the State and the CA Participating Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 238
8 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 Sun 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 Sun Settlement Agreement, this agreement shall be governed by and interpreted in accordance with the laws of California.

Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 239
9 The undersigned, South Lake Tahoe city, CA, ACKNOWLEDGES acceptance of this Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds –Sun Settlement is a requirement to be an Initial Participating Subdivision in the Sun Settlement and ACCEPTS this Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds –Sun Settlement.

Signature: /signer_1_som/
Name: /name_1_som/
Title: /title_1_som/
Date: /date_1_som/
Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 240
APPENDIX 2

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

Pursuant to this Backstop Agreement, [SUBDIVISION] may, subject to the limitations of the Sun Settlement Agreement and CA Sun Allocation Agreement, as well as any other limitations imposed by law, use funds that it receives from the Sun Settlement CA Subdivision Fund to pay a contingent fee to [COUNSEL]. Any such payment from [SUBDIVISION] to [COUNSEL] from [SUBDIVISION’S] CA Subdivision Fund allocation will not exceed [PERCENTAGE NOT TO EXCEED ONE-THIRD OR 5% OUT OF THE 15%] out of the [SUBDIVISION’S] 15% CA Subdivision Fund allocation; provided further that such payments, together with any contingency-fees that [COUNSEL] may receive from the Attorney Fee Fund will not exceed a total contingency fee of [PERCENTAGE NOT TO EXCEED 15%] of the total gross recovery of [SUBDIVISION] from the Sun Settlement Agreement.
[COUNSEL] certify that they first sought fees and costs from the Attorney Fee Fund created under the Sun Settlement Agreement before seeking or accepting payment under this backstop agreement. [COUNSEL] further certify that they are not seeking and will not accept payment under this backstop agreement of any litigation fees or costs that have been reimbursed through prior settlements or judgments.

The Attorney General is executing this agreement solely because the definition of “State BackStop Agreement” in Exhibit R of the Sun Settlement Agreement requires such agreements to be between “a Settling State” and private counsel for a participating subdivision. Neither the California Attorney General nor the State of California have any obligations under this Backstop Agreement, and this Backstop Agreement does not require the payment of any state funds to [SUBDIVISION], [COUNSEL], or any other party.
[DATE] [SUBDIVISION SIGNATURE BLOCK]
[DATE] [COUNSEL SIGNATURE BLOCK]
[DATE] [ATTORNEY GENERAL SIGNATURE BLOCK]
1 Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 241
1 Proposed California State-Subdivision Agreement
Regarding Distribution and Use of
Settlement Funds – Zydus Settlement

1. Introduction
Pursuant to the Zydus Settlement Agreement, dated as of April 4, 2025, and any revision thereto (the “Zydus Settlement Agreement”), including Section VI and Exhibit O, the State of California proposes this agreement (the “CA Zydus Allocation Agreement”) to govern the allocation, distribution, and use of Settlement Fund payments made to California pursuant to Sections V and VI of the Zydus Settlement Agreement. For the avoidance of doubt, this agreement does not apply to payments made pursuant to Section X of the Zydus Settlement Agreement.

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

2. Definitions
a) CA Participating Subdivision means a Participating Subdivision that is also (a) a Plaintiff Subdivision and/or (b) a Primary Subdivision with a population equal to or greater than 10,000. For the avoidance of doubt, eligible CA Participating Subdivisions are those California subdivisions listed in Exhibit C (excluding Litigating Special Districts) and/or Exhibit I to the Zydus Settlement Agreement. b) CA Litigating Special District means a Litigating Special District located in California.
c) 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. d) Opioid Defendant means any defendant including but not limited to Alvogen, Inc.

Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 242
2 3. General Terms
This agreement is subject to the requirements of the Zydus Settlement Agreement, as well as applicable law, and the Zydus Settlement Agreement governs over any inconsistent provision of this CA Zydus Allocation Agreement. Terms used in this CA Zydus Allocation Agreement have the same meaning as in the Zydus Settlement Agreement unless otherwise defined herein.

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

This Agreement does not apply to funds received by California1 pursuant to Section X of the Zydus Settlement Agreement, including payments for Private Attorney Fees and the Additional Remediation Amount.

4. State Allocation
The Settlement Fund payments to California, pursuant to the Zydus 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 Zydus 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 1 For purposes of clarity, use of the term “California” refers to the geographic territory of California and the state and its local governments therein. The term “State” or “State of California” refers to the State of California as a governmental unit.

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3 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 Zydus 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 the county is a CA Participating Subdivision; provided, however, that if a city currently receives direct payment of its share of funds in the National Opioids Settlement with Distributors Cencora, Inc. (f/k/a AmerisourceBergenCorporation), Cardinal Health, Inc., and McKesson Corporation (the “Distributors Settlement”), that city’s Local Allocation amount will be paid directly to the city. If a city later changes or has already changed its distribution election in the Distributors Settlement, that change in election will apply here, provided that the change in election is received by the settlement administrator at least 60 days prior to a Payment Date. A Local Allocation share allocated to a city but paid to a county is not required to be spent exclusively for abatement activities in that city, but will become part of the county’s share of the CA Abatement Accounts Funds, which will be used in accordance with Section 4.B.ii (Use of CA Abatement Accounts Funds) and reported on in accordance with Section 4.B.iii (CA Abatement Accounts Fund Oversight). d) A city within a county that is a CA Participating Subdivision may opt in or out of direct payment at any time, and it may also elect direct payment of only a portion of its share, with the remainder going to the county, by providing notice to the Settlement Fund Administrator at least 60 days prior to a Payment Date. For purposes of this CA Zydus 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 Zydus Settlement Agreement and this CA Zydus 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.

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4 ii. Use of CA Abatement Accounts Funds
a) The CA Abatement Accounts Funds will be used for future Opioid Remediation in one or more of the areas described in the List of Opioid Remediation Uses, which is Exhibit E to the Zydus 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;
(5) interventions to prevent drug addiction in vulnerable youth, including but not limited to, youth in foster care, juvenile justice-impacted youth, youth experiencing adversities related to socioeconomic status, and unhoused youth; and/or (6) the purchase of naloxone for distribution and efforts to expand access to naloxone for opioid overdose reversals.
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 Zydus 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 Zydus Settlement Agreement and this CA Zydus 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 Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 245
5 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 Zydus Settlement Agreement and this CA Zydus Allocation Agreement.
b) If DHCS determines that a CA Participating Subdivision’s use of CA Abatement Accounts Funds is inconsistent with the Zydus Settlement Agreement or this CA Zydus Allocation Agreement, whether through review of reports or information from any other sources, DHCS shall send a request to meet and confer with the CA Participating Subdivision. The parties shall meet and confer in an effort to resolve the concern. c) If the parties are unable to reach a resolution, DHCS may conduct an audit of the Subdivision’s use of the CA Abatement Accounts Funds within one year of the request to meet and confer, unless the parties mutually agree in writing to extend the meet and confer time frame.
d) If the concern still cannot be resolved, the State may bring a motion or action in the court where the State has filed its Consent Judgment to resolve the concern or otherwise enforce the requirements of the Zydus Settlement Agreement or this CA Zydus 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 Zydus Settlement Agreement and this CA Zydus Allocation Agreement, to fund future Opioid Remediation and reimburse past opioidrelated expenses, which may include fees and expenses related to litigation.

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6 However, in no event shall more than one third (5% out of the 15%) of CA Subdivision Funds be used for litigation-related fees and expenses.

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

A Plaintiff Subdivision may separately agree to use up to one-third (5% out of the 15%) of 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 Zydus Settlement Agreement and the MDL Fees Order, provided that: (1) such payments, together with any payments to contingency-fee counsel from the Private Attorneys Fee amount related to such Plaintiff Subdivision, do not exceed 15% of a Plaintiff Subdivision’s total gross recovery under this Zydus Settlement Agreement; and (2) the Plaintiff Subdivision certifies that any payments made under a State Back-Stop agreement will be made in accordance with the 95% Opioid Abatement use requirements under Section VI(B)(1) of the Zydus Settlement Agreement. Before seeking fees or litigation costs and expenses from a State Back-Stop Agreement, private counsel representing Plaintiff Subdivisions must first seek contingency fees and costs from the Attorney Fee Fund or Cost Funds created under the Zydus 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.

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.
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7 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 Zydus Settlement Agreement and this CA Zydus Allocation Agreement. The report will be in a form reasonably determined by DHCS. Prior to specifying the form of the report DHCS will confer with representatives of the Plaintiff Subdivisions.
c) The State and all CA Participating Subdivisions receiving CA Abatement Accounts Funds will track all deposits and expenditures. Each such subdivision is responsible solely for the CA Abatement Accounts Funds it receives. A county is not responsible for oversight, reporting, or monitoring of CA Abatement Accounts Funds received by a city within that county that receives direct payment. Unless otherwise exempt, Subdivisions’ expenditures and uses of CA Abatement Accounts Funds and other Settlement Funds will be subject to the normal budgetary and expenditure process of the Subdivision. d) Each Plaintiff Subdivision receiving CA Subdivision Funds will track all deposits and expenditures, as required by the Zydus Settlement Agreement and this CA Zydus Allocation Agreement. Among other things, Plaintiff Subdivisions using monies from the CA Subdivision Fund for purposes that do not qualify as Opioid Remediation must identify and include in their annual report, the amount and how such funds were used, including if used to pay attorneys’ fees, investigation costs, or litigation costs. Pursuant to Section VI(B)(2) of the Zydus Settlement Agreement, such information must also be reported to the Settlement Fund Administrator and Zydus. 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 Zydus 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 Zydus Settlement Agreement, this CA Zydus Allocation Agreement is not enforceable by any party other than the State and the CA Participating Docusign Envelope ID: 094203A0-BADE-4A28-9096-5E9C70FC1C25 248
8 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 Zydus 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 Zydus Settlement Agreement, this agreement shall be governed by and interpreted in accordance with the laws of California.

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9 The undersigned, South Lake Tahoe city, CA, ACKNOWLEDGES acceptance of this Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds –Zydus Settlement is a requirement to be an Initial Participating Subdivision in the Zydus Settlement and ACCEPTS this Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds – Zydus Settlement.

Signature: /signer_1_som/
Name: /name_1_som/
Title: /title_1_som/
Date: /date_1_som/
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APPENDIX 2

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

Pursuant to this Backstop Agreement, [SUBDIVISION] may, subject to the limitations of the Zydus Settlement Agreement and CA Zydus Allocation Agreement, as well as any other limitations imposed by law, use funds that it receives from the Zydus Settlement CA Subdivision Fund to pay a contingent fee to [COUNSEL]. Any such payment from [SUBDIVISION] to [COUNSEL] from [SUBDIVISION’S] CA Subdivision Fund allocation will not exceed [PERCENTAGE NOT TO EXCEED ONE-THIRD OR 5% OUT OF THE 15%] out of the [SUBDIVISION’S] 15% CA Subdivision Fund allocation; provided further that such payments, together with any contingency-fees that [COUNSEL] may receive from the Attorney Fee Fund will not exceed a total contingency fee of [PERCENTAGE NOT TO EXCEED 15%] of the total gross recovery of [SUBDIVISION] from the Zydus Settlement Agreement. [COUNSEL] certify that they first sought fees and costs from the Attorney Fee Fund created under the Zydus Settlement Agreement before seeking or accepting payment under this backstop agreement. [COUNSEL] further certify that they are not seeking and will not accept payment under this backstop agreement of any litigation fees or costs that have been reimbursed through prior settlements or judgments.

The Attorney General is executing this agreement solely because the definition of “State BackStop Agreement” in Exhibit R of the Zydus Settlement Agreement requires such agreements to be between “a Settling State” and private counsel for a participating subdivision. Neither the California Attorney General nor the State of California have any obligations under this Backstop Agreement, and this Backstop Agreement does not require the payment of any state funds to [SUBDIVISION], [COUNSEL], or any other party.
[DATE] [SUBDIVISION SIGNATURE BLOCK]
[DATE] [COUNSEL SIGNATURE BLOCK]
[DATE] [ATTORNEY GENERAL SIGNATURE BLOCK]
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C-239-2023

CITY OF SOUTH LAKE TAHOE

REIMBURSEMENT AGREEMENT

FOR OPIOID USE DISORDER SERVICES
This Agreement is made and entered into as of the 7th day of November 2023 by and between the City of South Lake Tahoe, a municipal corporation (“City”) and Barton Healthcare System, a California nonprofit community health care system (“Barton”).

RECITALS
A. The City is participating in national opioid litigation settlements with Janssen, McKesson/Cardinal Health/Amerisource Bergen, and Teva/Allergan/CVS/Walgreens/Walmart (collectively, “Settlement Agreements”), in which the City is receiving settlement funds in an approximate amount of $123,350 per year (collectively, “Settlement Funds”).

B. The City is required by the Settlement Agreements to expend the Settlement Funds on specific opioid remediation activities as articulated in Exhibit “E” to the Settlement Agreements, which is attached hereto as Exhibit “1.”
C. The City is further required by the Settlement Agreements to expend at least fifty (50) percent of the Settlement Funds for each calendar year on one or more of specific opioid remediation activities, namely: (1) the provision of matching funds or operating costs for Substance Use Disorder (“SUD”) facilities within the Behavioral Health Continuum Infrastructure Program; (2) creating new or expanded 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; (5) interventions to prevent drug addiction in vulnerable youth; and/or (6) the purchase of naloxone for distribution and efforts to expand access to naloxone for opioid overdose reversals (collectively, “High Impact Abatement Activities”).
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D. The City, through its Police Department, has established a program called South Tahoe Alternative Collaborative Services (“STACS”), which is a collaborative working agreement between the City (Police Department and South Lake Tahoe Fire Rescue), Barton, Tahoe Coalition for the Homeless, El Dorado County Behavioral Health Services (Mental Health and SUD Services), and Cal Tahoe JPA Ambulance to provide coordinated services to persons experiencing homelessness, mental illness, and/or substance use disorders. This Agreement supports and advances the mission of STACS by funding existing and expanded opioid remediation services for the population served by STACS.

E. The Settlement Agreements allow the City to enter into agreements with private sector entities in pursuing these opioid remediation activities.

F. Through its Substance Use Navigator (“SUN”) program that currently interacts with an average of 40 patients a month and coordinates care for nearly 80 patients per month, Barton currently provides various opioid remediation services consistent with the allowable uses of Settlement Funds, some of which qualify as High Impact Abatement Activities, and Barton and the City desire for Barton to continue and expand these services with use of the Settlement Funds for the benefit of the South Lake Tahoe community.

AGREEMENT

1. Reimbursable Opioid Remediation Services. Barton currently provides the following opioid remediation services that are reimbursable with Settlement Funds under this Agreement (collectively, “Existing Services”):
a. Medication-Assisted Treatment (“MAT”) including rapid access to buprenorphine in the Emergency Department and rapid follow-up in the outpatient setting, including for individuals who are uninsured or whose insurance does not cover the needed service.
b. Naloxone distribution via emergency room and rural health clinic, including to patients who are uninsured or whose insurance does not cover this treatment.
c. Coordination of care through a navigator to improve treatment retention and follow-up rates.

Barton plans to expand its opioid remediation services to include the following, which are reimbursable with Settlement Funds under this Agreement (collectively, “Expanded Services”):
a. Social services expansion with cognitive behavioral therapy for SUD/co-occurring mental health diagnoses.
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b. Provision of wrap-around services to include expansion of current intensive outpatient treatment, such as naloxone distribution, infectious disease testing, pre-exposure prophylaxis for HIV, and outpatient therapy/counseling services with a licensed clinical social worker.
c. More succinct local pathway from incarceration to opioid treatment such as coordination and outreach with parole officers to provide MAT including long-lasting medication for better overdose defense for individuals leaving incarceration.
d. Apply for grants through the Behavioral Health Continuum Infrastructure Program, which may require matching funds.

2. Reimbursement. The City will use available Settlement Funds to reimburse Barton for the Existing Services and Expanded Services in Section 1. At least fifty (50) percent of the reimbursement for each calendar year shall be for one or more High Impact Abatement Activities as listed in Recital C. At no time shall the City reimburse Barton for any amount above the available Settlement Funds balance. Reimbursement is contingent upon compliance with all terms and conditions of this Agreement, as set forth herein.

3. Method of Payment. Beginning on December 31, 2023, Barton shall submit quarterly invoices to the City describing the Existing Services and Expanded Services performed during the preceding quarter and indicating which of the services are High Impact Abatement Activities. Barton’s invoices shall include an itemized description of the services performed, the date the services were performed, and information about the personnel performing services, patient services provided, and equipment and/or supplies purchased. Invoices shall provide information sufficient for the City to complete the annually required California Department of Health Care Services Opioid Settlements Expenditure Reporting Form, which is attached hereto as Exhibit 3. Invoices should be mailed to the following address:

Finance Department
Attn: Andrew Black, Financial Services Supervisor
City of South Lake Tahoe
1901 Lisa Maloff Way,
South Lake Tahoe, CA 96150
City shall reimburse Barton no later than 15 days after approval of the quarterly invoice by City staff.

4. Communication and Coordination. The Parties agree to meet as needed or by request of either Barton or the City to discuss and coordinate on the following:
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a. Remaining available Settlement Funds for coordination of expenditures on Existing Services and Expanded Services. b. Prioritization of Existing Services and Expanded Services, includingfor support of STACS.
c. Grant applications to support additional funding for Existing Services and Expanded Services.

5. Term. The Term of this Agreement is three (3) years with the option to extend for two (2) additional years upon mutual agreement of the Parties.

6. Termination. This Agreement may be terminated by City or Barton for cause or without cause upon ninety days (90) days written notice of termination.

Upon termination, Barton shall be entitled to reimbursement for qualifying services performed up to the effective date of termination.

Termination, revocation, or expiration of this Agreement shall not release either party from liability resulting from an event which occurred prior to such termination, revocation or expiration.

7. Barton’s Books and Records.
a. Barton shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to invoices for Existing Services and Expanded Services for a minimum period of three (3) years, or for any longer period required by law, from the date of final payment to Barton for services reimbursed pursuant to this Agreement.
b. Barton shall maintain all documents and records which demonstrate performance under this Agreement for a minimum period of three (3) years, or for any longer period required by law, from records shall be available at Barton’s address indicated for the date of termination or completion of this Agreement.
c. Any records or documents required to be maintained pursuant to this Agreement shall be made available for inspection or audit, at any time during regular business hours, upon written request by the City Manager, City Attorney, City Auditor or a designated representative of these officers. Copies of such documents shall be provided to City for inspection at City offices when it is practical to do so. Otherwise, 255
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unless an alternative is mutually agreed upon, the receipt of notices in this Agreement.
d. Where City has reason to believe that such records or documents may be lost or discarded due to dissolution, disbandment or termination of Barton’s business, City may, by written request by any of the above-named officers, require that custody of the records be given to City and that the records and documents be maintained at City offices. Access to such records and documents shall be granted to any party authorized by Barton, Barton’s representatives, or Barton’s successor-in-interest.

8. Independent Contractor. It is understood that Barton, in the performance of the services subject to reimbursement under this Agreement, shall act as and be an independent contractor and shall not act as an agent or employee of City. Barton shall obtain no rights to retirement benefits or other benefits which accrue to City’s employees, and Barton hereby expressly waives any claim it may have to any such rights. All employees, agents, contractors or subcontractors hired or retained by Barton are employees, agents, contractors or subcontractors of Barton and not of the City.

City is not required to make any deductions or withholdings form the compensation payable to Barton under the provisions of this Contract, and is not required to issue W-2 Forms for income and employment tax purposes for any of Barton’s assigned personnel. Any third party persons retained by Barton shall be entirely and exclusively under the direction, supervision, and control of Barton. Barton hereby indemnifies and holds City harmless from any and all claims that may be made against City based upon any contention by any third party that an employer-employee relationship exists by reason of this Agreement.

9. Interest of Barton. Barton, (and its principals, associates and professional employees) covenants and represents that it does not now have any investment or interest and shall not acquire any interest, direct or indirect, in any source of income or investment which would be affected in any manner or degree by this Agreement.

10. Compliance with Laws. Barton shall comply with all applicable federal, state, regional and local laws, codes, ordinances and regulations in performing the services reimbursable under this Agreement. Barton shall observe and comply with all applicable laws, ordinances, regulations and codes of federal, state and local governments in performing any of the work reimbursable under this Agreement. The City, its officials, officers, elected officials, appointed officials 256
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and employees shall not be liable at law or in equity as a result of any failure of Barton to comply with this section.

11. Licenses. Barton represents and warrants to City that it has all licenses, permits, qualifications, insurance and approvals of whatsoever nature which are legally required of Barton to perform the services reimbursable under this Agreement. Barton represents and warrants to City that Barton shall, at its sole cost and expense, keep in effect or obtain at all times during the term of this Agreement, any licenses, permits, insurance and approvals which are legally required of Barton. Barton acknowledges that payments made pursuant to this Agreement may be withheld until this provision has been satisfied.

12. Indemnity. Barton hereby agrees to and shall indemnify and hold harmless City, its elected and appointed boards, officers, agents, employees and volunteers from and against any liability for any and all claims, demands, actions, losses, damages and injuries, direct or indirect (including any and all costs and expenses in connection therein), arising out of or caused in any way by Barton’s negligent performance of this Agreement or its breach of its obligations contained in this Agreement, except for any such claims arising out of the negligence or willful misconduct of the City. Barton agrees to defend City from and against any and all losses, damages, claims costs and fees arising out Barton’s negligent acts, errors, omissions, regarding this Agreement.

City does not, and shall not, waive any rights against Barton which it may have by reason of the aforesaid hold harmless agreement, because of the acceptance by City, or the deposit with City by Barton, of any of the insurance policies hereinafter set forth.

This hold harmless agreement by Barton shall apply to all damages and claims for damages, or alleged to have been suffered, by reason of any of the aforesaid operation of Barton or any subcontractor, regardless of whether or not such insurance policies shall have been determined to be applicable to any of such damages or claims for damages.

Barton further waives any and all rights to any type of express or implied indemnity or right of contribution from the City for any liability, claims, demands, costs, charges and expenses and causes of action of whatsoever arising out of or in any way connected with this Agreement, and Barton’s work under this Agreement.

13. Insurance Requirements.
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a. Barton, at Barton’s own cost and expense, shall procure and maintain, for the duration of the contract, the following insurance policies.
i. Workers’ Compensation Coverage. Barton shall maintain Workers’ Compensation Insurance and Employer’s Liability Insurance for its employees in accordance with the laws of the State of California. In addition, Barton shall require each subcontractor to similarly maintain Workers’ Compensation Insurance and Employer’s Liability Insurance in accordance with the laws of the State of California for all of the subcontractor’s employees. Any notice of cancellation of all Workers’ Compensation policies must be received by City at least thirty (30) days prior to such change. Barton shall provide thirty (30) days written notice of nonrenewal of any Workers’ Compensation policies. The insurer shall agree to waive all rights of subrogation against City, its officers, agents, employees and volunteers for losses arising from reimbursable services under this Agreement.
ii. Commercial General Liability Coverage. Barton shall maintain commercial general liability insurance no less broad than ISO form CG 00 01 in an amount not less than one million dollars ($1,000,000) per occurrence for bodily injury, personal injury and property damage. Coverage must be made on the
standard Occurrence form. Claims-Made forms are not
acceptable without prior written consent of City. City of South Lake Tahoe must be endorsed as an additional insured for liability arising out of ongoing operation by on behalf of Barton. If a commercial general liability insurance form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement or the general
aggregate limit shall be at least twice the required
occurrence limit.
iii. Automobile Liability Coverage. Barton shall maintain automobile liability insurance covering bodily injury and property damage for all activities of the Barton arising out of or in connection with the reimbursable services under this Agreement, including coverage for owned, hired and nonowned vehicles, in an amount of not less than one million dollars ($1,000,000) combined single limit for each occurrence. 258
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iv. Professional Liability Coverage. Barton shall maintain professional errors and omissions liability insurance for protection against claims alleging negligent acts, errors or omissions which may arise from Barton or by its employees, or subcontractors. The amount of this insurance shall not be less than one million dollars ($1,000,000) on a claims-made annual aggregate basis, or a combined single-limit per occurrence basis.
b. Endorsements. Each general liability and automobile liability insurance policy shall be with insurers possessing a AM Best’s rating of no less than A:VII and shall be endorsed with the following specific language:
i. The insurer waives all rights of subrogation against City, its elected or appointed officers, officials, employees or agents, except for Barton’s Professional Liability and Employers’ Liability policies.
ii. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to City, its elected or appointed officers, officials, employees, agents or volunteers. iii. No policies of insurance carried by Barton shall be suspended, voided, canceled, or changed in coverage or in limits except after thirty (30) days written notice to the City Attorney by Certified Mail. c. Deductibles and Self-Insured Retentions. Barton shall be responsible for all deductibles in all of Barton’s insurance policies. The amount of deductibles for insurance coverage required herein shall be reasonable and approved by the City Attorney.
d. Certificates of Insurance. Barton shall provide certificates of insurance with original endorsements to City as evidence of the insurance coverage required herein. Barton shall not be entitled to reimbursement under this Agreement until all insurance required under this section has been approved by City as to form, amount and carrier, nor shall Barton allow any subcontractor to commence work on any subcontract until all similar insurance required and reasonably consistent limits of the subcontractor has been so obtained and approved. Certificates of insurance shall contain no exclusions unless negotiated with the City Attorney and approved, in writing, by the City Attorney.
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14. Notices. Any notice required to be given under this Agreement shall be in writing and either served personally or sent prepaid, first class mail. Any such notice shall be addressed to the other party at the address set forth below.

Notice shall be deemed communicated within 48 hours from the time of mailing if mailed as provided in this section.

If to City: City of South Lake Tahoe
1901 Lisa Maloff Way
South Lake Tahoe, CA 96150
Attn: Andrew Black,
Financial Services Supervisor
[email protected]
Provide a copy to: City Attorney’s Office
Attn: Heather Stroud, City Attorney
City of South Lake Tahoe
1901 Lisa Maloff Way, Suite 300
South Lake Tahoe, CA 96150
[email protected]
If to Barton: Barton Health
Attn: Chief Financial Officer
2170 South Avenue
South Lake Tahoe, CA 96150
[email protected]
Provide a copy to: Matthew Milone,
Barton Health Corporate Counsel
2170 South Avenue
South Lake Tahoe, CA 96150
[email protected]

15. Assignment and Subcontracting. The Parties recognize that a substantial inducement to City for entering into this Agreement is the professional reputation, experience and competence of Barton. Assignments of any or all rights, duties or obligations of Barton under this Agreement will be permitted only with the express consent of City. Barton shall not subcontract any portion of the reimbursable services to be performed under this Agreement without the written authorization of City. If the City consents to such subcontract, Barton shall be fully responsible to City for all acts or omissions of the subcontractor. Nothing in the Agreement shall create any contractual relationship between City and subcontractor nor shall it create any obligation 260
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on the part of City to pay or to see to the payment of any monies due to any such subcontractor other than as otherwise required by law.

16. Waiver. Waiver of a breach or default under this Agreement shall not constitute a continuing waiver of a subsequent breach of the same or any other provision under this Agreement.

17. Dispute Resolution. Any dispute concerning this Agreement will be first submitted to the City Manager or his designee for resolution. If no resolution is reached, such dispute shall be submitted to the City Council. The decision of the City Council shall be final and shall be appealable only to the El Dorado Superior Court pursuant to California Code of Civil Procedure §1094.5, and as provided by law.

18. Controlling Law Venue. This Agreement and all matters relating to it shall be governed by the laws of the State of California and any action brought relating to this Agreement shall be held exclusively in the Superior Courts in the County of El Dorado, South Lake Tahoe Division.

19. Prohibited Interests. Barton maintains and warrants that it has not employed nor retained any person to solicit or secure this Agreement. Further, Barton warrants that it has not paid nor has it agreed to pay any person, other than a bona fide employee working solely for Barton any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.

20. Equal Opportunity Employment. Barton represents that it is an equal opportunity employer and it shall not discriminate against any subcontractor, employee or applicant for employment because of race, religion, color, national origin, disability, ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination.

21. Drug-Free Workplace Certification. By signing this Agreement, Barton hereby certifies under penalty of perjury under the laws of the State of California that Barton will comply with the requirements of the Drug-Free Workplace Act of 1990 (Government Code Section 8350, et seq.) and will provide a drug-free work place by taking the following actions:
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a. Publish a statement notifying employees that unlawful manufacture, distribution dispensation, possession, or use of a controlled substance is prohibited and specifying actions to be taken against employees for violations, as required by Government Code Section 8355(a). b. Establish a Drug-Free Awareness Program as required by Government Code Section 8355(a) to inform employees about all of the following:
i. The dangers of drug abuse in the workplace;
ii. The person’s or organization’s policy of maintaining a drug-free workplace;
iii. Any available counseling, rehabilitation and employee assistance program; and
iv. Penalties that may be imposed upon employees for drug abuse violations.
c. Provide, as required by Government Code Section 8355(a), that every employee who performs grant activities under this Agreement:
i. Will receive a copy of the Barton’s drug-free policy statement; and ii. Will agree to abide by the terms of the Barton’s statement as a condition of employment on this Agreement.

Failure to comply with these requirements may result in suspension of payments under this Agreement or termination of the Agreement, or both, and Barton may be ineligible for award of any future City agreements if City determines that any of the following has occurred: Barton (1) has made false certification, or (2) violates the certification by failing to carry out the requirements as noted above.

22. Anti-Lobbying Certification. Barton shall submit to City the Anti-Lobbying Certification contained in Exhibit 2. Further, Barton shall require that the language of the certification in Exhibit 2 be included in all contracts or subcontracts entered into in connection with this Agreement and that all contractors and subcontractors shall certify and disclose accordingly.

23. Americans with Disabilities Act. By signing this Agreement, Barton assures the City that it complies with the American with Disabilities Act (ADA) of 1990, (42 U.S.C. 12101, et. seq.), which prohibits discrimination on the basis of disability, as well as all applicable regulations and guidelines issued pursuant to ADA. 262
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24. Amendments. This Agreement may be modified or amended only by a written document executed by both Barton and the City and approved as to form by the City Attorney.

25. Entire Agreement. This Agreement constitutes the complete and exclusive statement of Agreement between City and Barton. All prior written and oral communications, including correspondence, drafts, memoranda, and representations, are superseded in total by this Agreement.

26. Execution. This Agreement may be executed in several counterparts, each of which shall constitute one and the same instrument and shall become binding upon the parties when at least one copy hereof shall have been signed by both parties hereto. In approving this Agreement, it shall not be necessary to produce or account for more than one such counterpart.

27. Time is of the Essence. Time is of the essence for this Agreement.

28. Authority to Enter Agreement. Barton has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement.

Each party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and to bind each respective party.

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed on the date first written above.

CITY OF SOUTH LAKE TAHOE:

Cristi Creegan Cristi Creegan (Dec 18, 2023 09:14 PST)
Cristi Creegan, Mayor
BARTON HEALTHCARE SYSTEM:

Clint Purvance MD
By Clint Purvance MD (Dec 18, 2023 10:39 PST)
Clinton Purvance, M.D., President & CEO
Date Dec 18, 2023 Date Dec 18, 2023
Business License # 005095
APPROVED AS TO FORM:

By Heather Stroud (Dec 18, 2023 09:17 PST)
Heather Stroud, City Attorney
Date Dec 18, 2023
B
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ATTEST:

By Sue Blankenship (Nov 21, 2023 14:47 PST)
Susan Blankenship, City Clerk
Date Nov 21, 2023
Attachments:

Exhibit 1 – Exhibit “E” to Opioid Settlement Agreements Exhibit 2 - Anti-Lobbying Certification
Exhibit 3 - California Department of Health Care Services Opioid Settlements Expenditure Reporting Form
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EXHIBIT 1
EXHIBIT “E” to Opioid Settlement Agreements
(List of Opioid Remediation Uses)
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EXHIBIT E
List of Opioid Remediation Uses
Schedule A
Core Strategies
States and Qualifying Block Grantees shall choose from among the abatement strategies listed in Schedule B. However, priority shall be given to the following core abatement strategies (“Core Strategies”).14
A. NALOXONE OR OTHER FDA-APPROVED DRUGTO

REVERSE OPIOID OVERDOSES

1. Expand training for first responders, schools, community support groups and families; and

2. Increase distribution to individuals who are uninsured or whose insurance does not cover the needed service.

B. MEDICATION-ASSISTED TREATMENT (“MAT”)

DISTRIBUTION AND OTHER OPIOID-RELATED

TREATMENT

1. Increase distribution of MAT to individuals who are
uninsured or whose insurance does not cover the needed
service;

2. Provide education to school-based and youth-focused
programs that discourage or prevent misuse;

3. Provide MAT education and awareness training to
healthcare providers, EMTs, law enforcement, and other
first responders; and

4. Provide treatment and recovery support services such as residential and inpatient treatment, intensive outpatient treatment, outpatient therapy or counseling, and recovery housing that allow or integrate medication and with other support services.
14 As used in this Schedule A, words like “expand,” “fund,” “provide” or the like shall not indicate a preference for new or existing programs.
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C. PREGNANT & POSTPARTUM WOMEN

1. Expand Screening, Brief Intervention, and Referral to Treatment (“SBIRT”) services to non-Medicaid eligible or uninsured pregnant women;

2. Expand comprehensive evidence-based treatment and
recovery services, including MAT, for women with cooccurring Opioid Use Disorder (“OUD”) and other Substance Use Disorder (“SUD”)/Mental Health disorders
for uninsured individuals for up to 12 months postpartum; and

3. Provide comprehensive wrap-around services to individuals with OUD, including housing, transportation, job
placement/training, and childcare.

D. EXPANDING TREATMENT FOR NEONATAL
ABSTINENCE SYNDROME (“NAS”)

1. Expand comprehensive evidence-based and recovery
support for NAS babies;

2. Expand services for better continuum of care with infantneed dyad; and

3. Expand long-term treatment and services for medical
monitoring of NAS babies and their families.

E. EXPANSION OF WARM HAND-OFF PROGRAMS AND

RECOVERY SERVICES

1. Expand services such as navigators and on-call teams to begin MAT in hospital emergency departments;

2. Expand warm hand-off services to transition to recovery services;

3. Broaden scope of recovery services to include co-occurring SUD or mental health conditions;

4. Provide comprehensive wrap-around services to individuals in recovery, including housing, transportation, job
placement/training, and childcare; and

5. Hire additional social workers or other behavioral health workers to facilitate expansions above.
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F. TREATMENT FOR INCARCERATED POPULATION

1. Provide evidence-based treatment and recovery support, including MAT for persons with OUD and co-occurring
SUD/MH disorders within and transitioning out of the
criminal justice system; and

2. Increase funding for jails to provide treatment to inmates with OUD.

G. PREVENTION PROGRAMS

1. Funding for media campaigns to prevent opioid use (similar to the FDA’s “Real Cost” campaign to prevent youth from misusing tobacco);

2. Funding for evidence-based prevention programs in
schools;

3. Funding for medical provider education and outreach
regarding best prescribing practices for opioids consistent with the 2016 CDC guidelines, including providers at
hospitals (academic detailing);

4. Funding for community drug disposal programs; and

5. Funding and training for first responders to participate in pre-arrest diversion programs, post-overdose response
teams, or similar strategies that connect at-risk individuals to behavioral health services and supports.

H. EXPANDING SYRINGE SERVICEPROGRAMS

1. Provide comprehensive syringe services programs with more wrap-around services, including linkage to OUD
treatment, access to sterile syringes and linkage to care and treatment of infectious diseases.

I. EVIDENCE-BASED DATA COLLECTION AND

RESEARCH ANALYZING THE EFFECTIVENESS OF THE

ABATEMENT STRATEGIES WITHIN THE STATE
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PART ONE: TREATMENT
Schedule B
Approved Uses
Support treatment of Opioid Use Disorder (OUD) and any co-occurring Substance Use Disorder or Mental Health (SUD/MH) conditions through evidence-based or evidence-informed programs or strategies that may include, but are not limited to, the following:

A. TREAT OPIOID USE DISORDER (OUD)
Support treatment of Opioid Use Disorder (“OUD”) and any co-occurring Substance Use Disorder or Mental Health (“SUD/MH”) conditions through evidence-based or evidenceinformed programs or strategies that may include, but are not limited to, those that:15

1. Expand availability of treatment for OUD and any co-occurring SUD/MH conditions, including all forms of Medication-Assisted Treatment (“MAT”) approved by the U.S. Food and Drug Administration.

2. Support and reimburse evidence-based services that adhere to the American Society of Addiction Medicine (“ASAM”) continuum of care for OUD and any cooccurring SUD/MH conditions.

3. Expand telehealth to increase access to treatment for OUD and any co-occurring SUD/MH conditions, including MAT, as well as counseling, psychiatric support, and other treatment and recovery support services.

4. Improve oversight of Opioid Treatment Programs (“OTPs”) to assure evidencebased or evidence-informed practices such as adequate methadone dosing and low threshold approaches to treatment.

5. Support mobile intervention, treatment, and recovery services, offered by qualified professionals and service providers, such as peer recovery coaches, for persons with OUD and any co-occurring SUD/MH conditions and for persons who have experienced an opioid overdose.

6. Provide treatment of trauma for individuals with OUD (e.g., violence, sexual assault, human trafficking, or adverse childhood experiences) and family members (e.g., surviving family members after an overdose or overdose fatality), and training of health care personnel to identify and address such trauma.

7. Support evidence-based withdrawal management services for people withOUD and any co-occurring mental health conditions.
15 As used in this Schedule B, words like “expand,” “fund,” “provide” or the like shall not indicate a preference for new or existing programs.
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8. Provide training on MAT for health care providers, first responders, students, or other supporting professionals, such as peer recovery coaches or recovery outreach specialists, including telementoring to assist community-based providers in rural or underserved areas.

9. Support workforce development for addiction professionals who work with persons with OUD and any co-occurring SUD/MH conditions.

10. Offer fellowships for addiction medicine specialists for direct patient care, instructors, and clinical research for treatments.

11. Offer scholarships and supports for behavioral health practitioners or workers involved in addressing OUD and any co-occurring SUD/MH or mental health conditions, including, but not limited to, training, scholarships, fellowships, loan repayment programs, or other incentives for providers to work in rural or underserved areas.

12. Provide funding and training for clinicians to obtain a waiver under the federal Drug Addiction Treatment Act of 2000 (“DATA 2000”) to prescribe MAT for OUD, and provide technical assistance and professional support to clinicians who have obtained a DATA 2000 waiver.

13. Disseminate of web-based training curricula, such as the American Academy of Addiction Psychiatry’s Provider Clinical Support Service–Opioids web-based training curriculum and motivational interviewing.

14. Develop and disseminate new curricula, such as the American Academy of Addiction Psychiatry’s Provider Clinical Support Service for Medication– Assisted Treatment.

B. SUPPORT PEOPLE IN TREATMENT ANDRECOVERY
Support people in recovery from OUD and any co-occurring SUD/MH conditions through evidence-based or evidence-informed programs or strategies that may include, but are not limited to, the programs or strategies that:

1. Provide comprehensive wrap-around services to individuals with OUD and any co-occurring SUD/MH conditions, including housing, transportation, education, job placement, job training, or childcare.

2. Provide the full continuum of care of treatment and recovery services for OUD and any co-occurring SUD/MH conditions, including supportive housing, peer support services and counseling, community navigators, case management, and connections to community-based services.

3. Provide counseling, peer-support, recovery case management and residential treatment with access to medications for those who need it to persons with OUD and any co-occurring SUD/MH conditions.
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4. Provide access to housing for people with OUD and any co-occurring SUD/MH conditions, including supportive housing, recovery housing, housing assistance programs, training for housing providers, or recovery housing programs that allow or integrate FDA-approved mediation with other support services.

5. Provide community support services, including social and legal services, to assist in deinstitutionalizing persons with OUD and any co-occurring SUD/MH conditions.

6. Support or expand peer-recovery centers, which may include support groups, social events, computer access, or other services for persons with OUD and any co-occurring SUD/MH conditions.

7. Provide or support transportation to treatment or recovery programs or services for persons with OUD and any co-occurring SUD/MH conditions.

8. Provide employment training or educational services for persons in treatment for or recovery from OUD and any co-occurring SUD/MH conditions.

9. Identify successful recovery programs such as physician, pilot, and college recovery programs, and provide support and technical assistance to increase the number and capacity of high-quality programs to help those in recovery.

10. Engage non-profits, faith-based communities, and community coalitions to support people in treatment and recovery and to support family members in their efforts to support the person with OUD in the family.

11. Provide training and development of procedures for government staff to appropriately interact and provide social and other services to individuals with or in recovery from OUD, including reducing stigma.

12. Support stigma reduction efforts regarding treatment and support for persons with OUD, including reducing the stigma on effective treatment.

13. Create or support culturally appropriate services and programs for persons with OUD and any co-occurring SUD/MH conditions, including new Americans.

14. Create and/or support recovery high schools.

15. Hire or train behavioral health workers to provide or expand any of the services or supports listed above.

C. CONNECT PEOPLE WHO NEED HELP TO THE HELP THEYNEED
(CONNECTIONS TO CARE)
Provide connections to care for people who have—or are at risk of developing—OUD and any co-occurring SUD/MH conditions through evidence-based or evidence-informed programs or strategies that may include, but are not limited to, those that:
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1. Ensure that health care providers are screening for OUD and other risk factors and know how to appropriately counsel and treat (or refer if necessary) a patient for OUD treatment.

2. Fund SBIRT programs to reduce the transition from use to disorders, including SBIRT services to pregnant women who are uninsured or not eligible for Medicaid.

3. Provide training and long-term implementation of SBIRT in key systems (health, schools, colleges, criminal justice, and probation), with a focus on youth and young adults when transition from misuse to opioid disorder is common.

4. Purchase automated versions of SBIRT and support ongoing costs of the technology.

5. Expand services such as navigators and on-call teams to begin MAT in hospital emergency departments.

6. Provide training for emergency room personnel treating opioid overdose patients on post-discharge planning, including community referrals for MAT, recovery case management or support services.

7. Support hospital programs that transition persons with OUD and any co-occurring SUD/MH conditions, or persons who have experienced an opioid overdose, into clinically appropriate follow-up care through a bridge clinic or similar approach.

8. Support crisis stabilization centers that serve as an alternative to hospital emergency departments for persons with OUD and any co-occurring SUD/MH conditions or persons that have experienced an opioid overdose.

9. Support the work of Emergency Medical Systems, including peer support specialists, to connect individuals to treatment or other appropriate services following an opioid overdose or other opioid-related adverse event.

10. Provide funding for peer support specialists or recovery coaches in emergency departments, detox facilities, recovery centers, recovery housing, or similar settings; offer services, supports, or connections to care to persons with OUD and any co-occurring SUD/MH conditions or to persons who have experienced an opioid overdose.

11. Expand warm hand-off services to transition to recoveryservices.

12. Create or support school-based contacts that parents can engage with to seek immediate treatment services for their child; and support prevention, intervention, treatment, and recovery programs focused on young people.

13. Develop and support best practices on addressing OUD in theworkplace. 272
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14. Support assistance programs for health care providers with OUD.

15. Engage non-profits and the faith community as a system to support outreach for treatment.

16. Support centralized call centers that provide information and connections to appropriate services and supports for persons with OUD and any co-occurring SUD/MH conditions.

D. ADDRESS THE NEEDS OF CRIMINAL JUSTICE-INVOLVEDPERSONS Address the needs of persons with OUD and any co-occurring SUD/MH conditions who are involved in, are at risk of becoming involved in, or are transitioning out of the criminal justice system through evidence-based or evidence-informed programs or strategies that may include, but are not limited to, those that:

1. Support pre-arrest or pre-arraignment diversion and deflection strategies for persons with OUD and any co-occurring SUD/MH conditions, including established strategies such as:

1. Self-referral strategies such as the Angel Programs or the Police Assisted Addiction Recovery Initiative (“PAARI”);

2. Active outreach strategies such as the Drug Abuse Response Team (“DART”) model;

3. “Naloxone Plus” strategies, which work to ensure that individualswho have received naloxone to reverse the effects of an overdose are then linked to treatment programs or other appropriate services;

4. Officer prevention strategies, such as the Law Enforcement Assisted Diversion (“LEAD”) model;

5. Officer intervention strategies such as the Leon County, Florida Adult Civil Citation Network or the Chicago Westside Narcotics Diversion to Treatment Initiative; or

6. Co-responder and/or alternative responder models to address OUD-related 911 calls with greater SUD expertise.

2. Support pre-trial services that connect individuals with OUD and any cooccurring SUD/MH conditions to evidence-informed treatment, including MAT, and related services.

3. Support treatment and recovery courts that provide evidence-based options for persons with OUD and any co-occurring SUD/MH conditions. 273
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4. Provide evidence-informed treatment, including MAT, recovery support, harm reduction, or other appropriate services to individuals with OUD and any cooccurring SUD/MH conditions who are incarcerated in jail or prison.

5. Provide evidence-informed treatment, including MAT, recovery support, harm reduction, or other appropriate services to individuals with OUD and any cooccurring SUD/MH conditions who are leaving jail or prison or have recently left jail or prison, are on probation or parole, are under community corrections supervision, or are in re-entry programs or facilities.

6. Support critical time interventions (“CTI”), particularly for individuals living with dual-diagnosis OUD/serious mental illness, and services for individuals who face immediate risks and service needs and risks upon release from correctional settings.

7. Provide training on best practices for addressing the needs of criminal justiceinvolved persons with OUD and any co-occurring SUD/MH conditions to law enforcement, correctional, or judicial personnel or to providers of treatment, recovery, harm reduction, case management, or other services offered in connection with any of the strategies described in thissection.

E. ADDRESS THE NEEDS OF PREGNANT OR PARENTING WOMEN AND

THEIR FAMILIES, INCLUDING BABIES WITH NEONATALABSTINENCE

SYNDROME
Address the needs of pregnant or parenting women with OUD and any co-occurring SUD/MH conditions, and the needs of their families, including babies with neonatal abstinence syndrome (“NAS”), through evidence-based or evidence-informed programs or strategies that may include, but are not limited to, those that:

1. Support evidence-based or evidence-informed treatment, including MAT, recovery services and supports, and prevention services for pregnantwomen—or women who could become pregnant—who have OUD and any co-occurring SUD/MH conditions, and other measures to educate and provide support to families affected by Neonatal Abstinence Syndrome.

2. Expand comprehensive evidence-based treatment and recovery services, including MAT, for uninsured women with OUD and any co-occurring SUD/MH conditions for up to 12 months postpartum.

3. Provide training for obstetricians or other healthcare personnel who work with pregnant women and their families regarding treatment of OUD and any cooccurring SUD/MH conditions.

4. Expand comprehensive evidence-based treatment and recovery support for NAS babies; expand services for better continuum of care with infant-need dyad; and expand long-term treatment and services for medical monitoring of NAS babies and their families.
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PART TWO: PREVENTION

5. Provide training to health care providers who work with pregnant or parenting women on best practices for compliance with federal requirements that children born with NAS get referred to appropriate services and receive a plan of safe care.

6. Provide child and family supports for parenting women with OUD and any cooccurring SUD/MH conditions.

7. Provide enhanced family support and child care services for parents withOUD and any co-occurring SUD/MH conditions.

8. Provide enhanced support for children and family members suffering trauma as a result of addiction in the family; and offer trauma-informed behavioral health treatment for adverse childhood events.

9. Offer home-based wrap-around services to persons with OUD and any cooccurring SUD/MH conditions, including, but not limited to, parent skills training.

10. Provide support for Children’s Services—Fund additional positions and services, including supportive housing and other residential services, relating to children being removed from the home and/or placed in foster care due to custodial opioid use.

F. PREVENT OVER-PRESCRIBING AND ENSUREAPPROPRIATE

PRESCRIBING AND DISPENSING OF OPIOIDS
Support efforts to prevent over-prescribing and ensure appropriate prescribing and dispensing of opioids through evidence-based or evidence-informed programs or strategies that may include, but are not limited to, the following:

1. Funding medical provider education and outreach regarding best prescribing practices for opioids consistent with the Guidelines for Prescribing Opioids for Chronic Pain from the U.S. Centers for Disease Control and Prevention, including providers at hospitals (academic detailing).

2. Training for health care providers regarding safe and responsible opioid prescribing, dosing, and tapering patients off opioids.

3. Continuing Medical Education (CME) on appropriate prescribing of opioids.

4. Providing Support for non-opioid pain treatment alternatives, including training providers to offer or refer to multi-modal, evidence-informed treatment of pain.

5. Supporting enhancements or improvements to Prescription Drug Monitoring Programs (“PDMPs”), including, but not limited to, improvements that:
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1. Increase the number of prescribers using PDMPs;

2. Improve point-of-care decision-making by increasing the quantity, quality, or format of data available to prescribers using PDMPs, by improving the interface that prescribers use to access PDMP data, or both; or

3. Enable states to use PDMP data in support of surveillance or intervention strategies, including MAT referrals and follow-up for individuals identified within PDMP data as likely to experience OUD in a manner that complies with all relevant privacy and security laws and rules.

6. Ensuring PDMPs incorporate available overdose/naloxone deployment data, including the United States Department of Transportation’s Emergency Medical Technician overdose database in a manner that complies with all relevant privacy and security laws and rules.

7. Increasing electronic prescribing to prevent diversion or forgery.

8. Educating dispensers on appropriate opioid dispensing.

G. PREVENT MISUSE OF OPIOIDS
Support efforts to discourage or prevent misuse of opioids through evidence-based or evidence-informed programs or strategies that may include, but are not limited to, the following:

1. Funding media campaigns to prevent opioid misuse.

2. Corrective advertising or affirmative public education campaigns based on evidence.

3. Public education relating to drug disposal.

4. Drug take-back disposal or destruction programs.

5. Funding community anti-drug coalitions that engage in drug prevention efforts.

6. Supporting community coalitions in implementing evidence-informed prevention, such as reduced social access and physical access, stigma reduction—including staffing, educational campaigns, support for people in treatment or recovery, or training of coalitions in evidence-informed implementation, including the Strategic Prevention Framework developed by the U.S. Substance Abuse and Mental Health Services Administration (“SAMHSA”).

7. Engaging non-profits and faith-based communities as systems to support prevention.
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8. Funding evidence-based prevention programs in schools or evidence-informed school and community education programs and campaigns for students, families, school employees, school athletic programs, parent-teacher and student associations, and others.

9. School-based or youth-focused programs or strategies that have demonstrated effectiveness in preventing drug misuse and seem likely to be effective in preventing the uptake and use of opioids.

10. Create or support community-based education or intervention services for families, youth, and adolescents at risk for OUD and any co-occurring SUD/MH conditions.

11. Support evidence-informed programs or curricula to address mental health needs of young people who may be at risk of misusing opioids or other drugs, including emotional modulation and resilience skills.

12. Support greater access to mental health services and supports for young people, including services and supports provided by school nurses, behavioral health workers or other school staff, to address mental health needs in young people that (when not properly addressed) increase the risk of opioid or another drug misuse.

H. PREVENT OVERDOSE DEATHS AND OTHER HARMS (HARMREDUCTION) Support efforts to prevent or reduce overdose deaths or other opioid-related harms through evidence-based or evidence-informed programs or strategies that may include, but are not limited to, the following:

1. Increased availability and distribution of naloxone and other drugs that treat overdoses for first responders, overdose patients, individuals with OUD and their friends and family members, schools, community navigators and outreach workers, persons being released from jail or prison, or other members of the general public.

2. Public health entities providing free naloxone to anyone in the community.

3. Training and education regarding naloxone and other drugs that treat overdoses for first responders, overdose patients, patients taking opioids, families, schools, community support groups, and other members of the general public.

4. Enabling school nurses and other school staff to respond to opioid overdoses, and provide them with naloxone, training, and support.

5. Expanding, improving, or developing data tracking software and applications for overdoses/naloxone revivals.

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7. Public education relating to immunity and Good Samaritan laws.

8. Educating first responders regarding the existence and operation of immunity and Good Samaritan laws.

9. Syringe service programs and other evidence-informed programs to reduce harms associated with intravenous drug use, including supplies, staffing, space, peer support services, referrals to treatment, fentanyl checking, connections to care, and the full range of harm reduction and treatment services provided by these programs.

10. Expanding access to testing and treatment for infectious diseases such as HIV and Hepatitis C resulting from intravenous opioid use.

11. Supporting mobile units that offer or provide referrals to harm reduction services, treatment, recovery supports, health care, or other appropriate services to persons that use opioids or persons with OUD and any co-occurring SUD/MHconditions.

12. Providing training in harm reduction strategies to health care providers, students, peer recovery coaches, recovery outreach specialists, or other professionals that provide care to persons who use opioids or persons with OUD and any cooccurring SUD/MH conditions.

13. Supporting screening for fentanyl in routine clinical toxicologytesting.

I. FIRST RESPONDERS
In addition to items in section C, D and H relating to first responders, support the following:

1. Education of law enforcement or other first responders regarding appropriate practices and precautions when dealing with fentanyl or other drugs.

2. Provision of wellness and support services for first responders and others who experience secondary trauma associated with opioid-related emergency events.

J. LEADERSHIP, PLANNING AND COORDINATION
Support efforts to provide leadership, planning, coordination, facilitations, training and technical assistance to abate the opioid epidemic through activities, programs, or strategies that may include, but are not limited to, the following:

1. Statewide, regional, local or community regional planning to identify root causes of addiction and overdose, goals for reducing harms related to the opioid epidemic, and areas and populations with the greatest needs for treatment 278
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intervention services, and to support training and technical assistance and other strategies to abate the opioid epidemic described in this opioid abatement strategy list.

2. A dashboard to (a) share reports, recommendations, or plans to spend opioid settlement funds; (b) to show how opioid settlement funds have been spent; (c) to report program or strategy outcomes; or (d) to track, share or visualize key opioidor health-related indicators and supports as identified through collaborative statewide, regional, local or community processes.

3. Invest in infrastructure or staffing at government or not-for-profit agencies to support collaborative, cross-system coordination with the purpose of preventing overprescribing, opioid misuse, or opioid overdoses, treating those with OUD and any co-occurring SUD/MH conditions, supporting them in treatment or recovery, connecting them to care, or implementing other strategies to abate the opioid epidemic described in this opioid abatement strategy list.

4. Provide resources to staff government oversight and management of opioid abatement programs.

K. TRAINING
In addition to the training referred to throughout this document, support training to abate the opioid epidemic through activities, programs, or strategies that may include, but are not limited to, those that:

1. Provide funding for staff training or networking programs and services to improve the capability of government, community, and not-for-profit entities to abate the opioid crisis.

2. Support infrastructure and staffing for collaborative cross-system coordination to prevent opioid misuse, prevent overdoses, and treat those with OUD and any cooccurring SUD/MH conditions, or implement other strategies to abate the opioid epidemic described in this opioid abatement strategy list (e.g., health care, primary care, pharmacies, PDMPs, etc.).

L. RESEARCH
Support opioid abatement research that may include, but is not limited to, the following:

1. Monitoring, surveillance, data collection and evaluation of programs and strategies described in this opioid abatement strategy list.

2. Research non-opioid treatment of chronic pain.

3. Research on improved service delivery for modalities such as SBIRT that demonstrate promising but mixed results in populations vulnerable to opioid use disorders.
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4. Research on novel harm reduction and prevention efforts such as the provision of fentanyl test strips.

5. Research on innovative supply-side enforcement efforts such as improved detection of mail-based delivery of synthetic opioids.

6. Expanded research on swift/certain/fair models to reduce and deter opioid misuse within criminal justice populations that build upon promising approaches used to address other substances (e.g., Hawaii HOPE and Dakota 24/7).

7. Epidemiological surveillance of OUD-related behaviors in critical populations, including individuals entering the criminal justice system, including, but not limited to approaches modeled on the Arrestee Drug Abuse Monitoring (“ADAM”) system.

8. Qualitative and quantitative research regarding public health risks and harm reduction opportunities within illicit drug markets, including surveys of market participants who sell or distribute illicit opioids.

9. Geospatial analysis of access barriers to MAT and their association with treatment engagement and treatment outcomes.

E-15
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EXHIBIT 2

ANTI-LOBBYING CERTIFICATION
Barton shall submit to City this certification prior to or at the time of the execution of this Agreement.

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. Code. Any person who fails to file the required certification shall be subject to a civil penalty not less than $10,000 and no more than $100,000 for such failure.

The undersigned certifies, to the best of his or her knowledge or belief, that:

1. 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; and

2. 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, cooperative agreement, it will complete and submit Standard Form-LLL, “Disclosure Form to Report Lobbying,” in accordance with its instruction.

Barton:

Clinton Purvance, President & CEO
Clint Purvance MD
By: Clint Purvance MD (Dec 18, 2023 10:39 PST)
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EXHIBIT 3
California Department of Health Care Services Opioid Settlements Expenditure Reporting Form
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California's Opioid Settlements
Expenditure Reporting Form
Cover Page Introduction
Participating Subdivisions receiving funds from California's Opioid Settlements are required to complete annual reporting to the Department of Health Care Services (DHCS). Opioid settlement funds in this instance refers to final and proposed agreements between California and opioid distributors and manufacturers: McKesson, Cardinal Health and AmerisourceBergen (collectively, the Distributors); Janssen Pharmaceuticals, Inc.; Teva; Allergan; and pharmacies Walmart, Walgreens, and CVS (collectively, the Pharmacies).

This reporting form covers the period of July 1, 2022 – June 30, 2023. Please ensure all responses reflect the 2022 – 2023 State Fiscal Year (SFY). This report is due September 30, 2023.

This form is intended to collect expenditure information from California Participating Subdivisions and Plaintiff Subdivisions receiving allocations from the California Abatements Account and California Subdivision Fund as part of California's Opioid Settlements.
» A Participating Subdivision is a city or county eligible to receive funds from one or multiple of the settlements listed above. A definition for Participating Subdivisions can be found in Section 2(a) of the California State Subdivision Agreements.
» A Plaintiff Subdivision is a Subdivision located in California, other than a 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.

A list of Participating and Plaintiff Subdivisions can be found in both the California State Agreements in Appendix 1. If you have questions about your Subdivision’s status, please reference this appendix, or contact your City, County, or outside Counsel. 283
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If you have any questions filling out this form, please review the Q&A document.

If you need to submit a revision to already submitted data, please contact the UCLA Evaluation team by emailing [email protected].

Necessary Materials
To see a comprehensive list of necessary materials and information, please view the Necessary Materials Checklist. You will need the following information to complete this form:
» The amount of funds received by your Participating Subdivision by settlement in SFY 2022-2023;
» The amount of funds expended by your Participating Subdivision, by activity, in SFY 2022-2023;
» Interest earned on settlement funds allocated to your Participating Subdivision in SFY 2022-2023;
» Reallocations to/from other Participating Subdivisions; » The amount of settlement funds spent on administrative costs; and » A description of planned activities/programs for the next fiscal year All Expenditure Reporting Forms must be submitted online. Word Document and PDF versions will not be accepted, they are for reference only.

If you would like to see a copy of the entire reporting form prior to completing it, please download the Opioid Settlement Funds Expenditure Reporting Form. All Expenditure Reporting Forms must be submitted online.

Submission Requirements
Participating Subdivisions shall only submit one (1) expenditure report annually for funds received from all settlements.

Do not send the expenditure reporting form to contractors or sub grantees to whom you may have awarded your opioid settlement funds. It is the Participating Subdivision’s responsibility to collect all required information regarding the opioid settlement funds they have received and to compile it into a singular report.

The preparer of the Expenditure Report should be the only person to submit one (1) expenditure report for your Participating Subdivision. 284
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1. General Information
This section of the survey will ask for general information about your Participating Subdivision and the person preparing the expenditure report.

Participating Subdivision:
(Select the Participating Subdivision for which you are reporting. A list of Participating Subdivisions can be found on the DHCS OSF website.)
» Dropdown list of Participating Subdivisions. Select theParticipating Subdivision you represent.
(Answer if “Other” selected above.) If your Participating Subdivision was not listed in the previous question, write the name of your Participating Subdivision below.

Participating Subdivision address:
(Please format as 0000 Street Name, City, State Initials Zip Code.) Name of preparer:
(Please include the first and last name of the individual preparing this form.) Preparer email address:
(This email will receive confirmation of the report submitted. Please ensure that it is correct.)
Confirm email address:

Preparer phone Number:
(xxx-xxx-xxxx)
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2. Settlement Funds Information
This section will cover which settlement funds your Participating Subdivision has received.

Please select all settlement agreements for which your Participating Subdivision received opioid settlement funds. You must report expenditures on all settlement agreements that your Participating Subdivision received.

Opioid settlement funds in this instance refers to final agreements between California and opioid distributors and manufacturers: McKesson, Cardinal Health and AmerisourceBergen (collectively, the Distributors); Janssen Pharmaceuticals, Inc.; Teva; Allergan; and pharmacies Walmart, Walgreens, and CVS (collectively, the Pharmacies).

More information on each settlement agreement can be found on the DHCS OSF website.
» Allergan
» CVS
» Distributors
» Janssen
» Teva
» Walgreens
» Walmart
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3. California Abatement Account - Payments
This section will cover settlement dollars received as payments as well as interest earned from settlement accounts that were allocated to the California Abatement Account.

1. List all settlement dollars received as payments to your California Abatement Account by each settlement. If there were no payments made for a particular settlement, write in 0.

Note: Due to delays with receiving settlement funds, multiple payments were made for the Janssen and Distributor settlements within the 2022-2023 fiscal year. Please indicate the total amount received for the below settlements within FY 22-23.

CA Abatement Account Payments Received in SFY 22-
23 Allergan
CVS
Distributors
Janssen
Teva
Walgreens
Walmart

2. List all interest earned from your California Abatement Account by each settlement.

If no interest was earned, please write in 0
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CA Abatement Account Interest Earned in SFY 22-23
Allergan
CVS
Distributors
Janssen
Teva
Walgreens
Walmart
Reallocations To Other Participating Subdivisions
Participating Subdivisions may agree to reallocate their shares of the California Abatement Account Funds among themselves, provided that any direct distribution may only be to a Participating Subdivision and any Participating Subdivision must agree to their share being reallocated.

3. Did you reallocate any of your Participating Subdivision's funds received fromthe Settlement Administrator from the period of July 1, 2022 - June 30, 2023 from the California Abatement account to another Participating Subdivision. oYes
o No
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(Answer this if yes to question above.)
3a. For the California Abatement Account, enter the exact amount of funds that your Participating Subdivision reallocated to other Participating Subdivisions from the period of July 1, 2022 - June 30, 2023. Please list all reallocations individually below.

Number Participating Subdivision
that received the
reallocated funds
Amount reallocated Which Settlement
Agreement were funds
reallocated from?
1 2
3 4
5 6
7 8
9 10
Reallocations Received From Other Participating Subdivisions Participating Subdivisions may agree to reallocate their shares of the California Abatement Account Funds among themselves, provided that any direct distribution may only be to a Participating Subdivision and any Participating Subdivision must agree to their share being reallocated.

4. Did you receive any of funds from another Participating Subdivision's during the period of July 1, 2022 - June 30, 2023 from their California Abatement account? oYes
o No
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(Answer this if yes to question above.)
4a. For the California Abatement Account, enter the exact amount of funds that your Participating Subdivision received from other Participating Subdivisions from the period of July 1, 2022 - June 30, 2023. Please list all reallocations individually below.

Number Participating
Subdivision that you
received funds from
Amount reallocated Which Settlement
Agreement were funds
reallocated to?
1 2
3 4
5 6
7 8
9 10
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4. California Abatement Account - Expenditures
In this section, Participating Subdivisions will report their expenditures of all opioid settlement funds from the California Abatement Account.

List all settlement dollars expended from your California Abatement Account by each settlement. If there were no funds expended for a particular settlement, put 0.

Note: Due to delays with receiving settlement funds, multiple payments were made for the Janssen and Distributor settlements within the 2022-2023 fiscal year. Please indicate the total amount expended for the below settlements within FY 22-23.

CA Abatement Account Funds Expended
in SFY 22-23
Allergan
CVS
Distributors
Janssen
Teva
Walgreens
Walmart
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5. Plaintiff Subdivision
This section will cover information about Plaintiff Subdivisions.

Is your Participating Subdivision also a Plaintiff Subdivision? A Plaintiff Subdivision is a Subdivision located in California, other than a 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.
oYes
o No
(If No is answered above, skip to Section 10.)
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6. California Subdivision Fund - Payments
This section will cover settlement dollars received as well as interest earned from settlement accounts that were allocated to the California Subdivision Fund.

1. List all settlement dollars received as payments to your California Subdivision Fund by each settlement. If there were no payments made for a particular settlement, write in

0. Note: Due to delays with receiving settlement funds, multiple payments were made for the Janssen and Distributor settlements within the 2022-2023 fiscal year. Please indicate the total amount received for the below settlements within FY 22-23.

CA Subdivision Payments Received in SFY
22-23
Allergan
CVS
Distributors
Janssen
Teva
Walgreens
Walmart

2. List interest earned from your California Subdivision Fund by each settlement. If no interest was earned, please write in 0.
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CA Subdivision Fund Interest Earned in
SFY 22-23
Allergan
CVS
Distributors
Janssen
Teva
Walgreens
Walmart
Reallocations To Other Participating Subdivisions
Participating Subdivisions may agree to reallocate their shares of the California Subdivision Funds among themselves, provided that any direct distribution may only be to a Participating Subdivision and any Participating Subdivision must agree to their share being reallocated.

3. Did you reallocate any of your Participating Subdivision's funds received fromthe Settlement Administrator from the period of July 1, 2022 - June 30, 2023 from the California Subdivision Fund to another Participating Subdivision? oYes
o No
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(Answer this if yes to question above.)
3a. For the California Subdivision Fund, enter the exact amount of funds that your Participating Subdivision reallocated to other Participating Subdivisions from the period of July 1, 2022 - June 30, 2023. Please list all reallocations individually below.

Number Participating Subdivision
that received the
reallocated funds
Amount reallocated Which Settlement
Agreement were funds
reallocated from?
1 2
3 4
5 6
7 8
9 10
Reallocations Received From Other Participating Subdivisions Participating Subdivisions may agree to reallocate their shares of the California Subdivision Funds among themselves, provided that any direct distribution may only be to a Participating Subdivision and any Participating Subdivision must agree to their share being reallocated.

4. Did you receive any of funds from another Participating Subdivision's during the period of July 1, 2022 - June 30, 2023 from the California Subdivision Fund? oYes
o No
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(Answer this if yes to question above.)
4a. For the California Subdivision Fund, enter the exact amount of funds that your Participating Subdivision received from other Participating Subdivisions from the period of July 1, 2022 - June 30, 2023. Please list all transfers individually below.

Number Participating
Subdivision that you
received funds from
Amount reallocated Which Settlement
Agreement were funds
reallocated to?
1 2
3 4
5 6
7 8
9 10
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7. California Subdivision Account - Expenditures
In this section, Participating Subdivisions will report their expenditures of all opioid settlement funds from the California Subdivision Fund.

List all settlement dollars expended from your California Subdivision Fund by each settlement. If there were no funds expended for a particular settlement, put 0.

Note: Due to delays with receiving settlement funds, multiple payments were made for the Janssen and Distributor settlements within the 2022-2023 fiscal year. Please indicate the total amount expended for the below settlements within FY 22-23.

CA Subdivision Funds Expended in SFY 22-23
Allergan
CVS
Distributors
Janssen
Teva
Walgreens
Walmart
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8. Past Opioid-Related Expenses
Did your Plaintiff Subdivision spend any California Subdivision funds on past opioidrelated expenses, including legal costs? oYes
o No
(Answer if yes to question above.) California Subdivision funds spent on past opioid related expenses, including legal costs, must be reported to the settlement funds administrator BrownGreer.

Has your Plaintiff Subdivision reported expenditures on past opioid-related expenses, including legal costs, to BrownGreer?
oYes
o No

9. Non-Opioid Remediation Expenses
Plaintiff Subdivisions must also report total expenditures for activities that do not qualify as opioid remediation to BrownGreer every six months, by June 30th and December 31st each year.

Enter the total expenditures from your Plaintiff Subdivision's California Subdivision Fund expended for activities that do not qualify as opioid remediation. Please enter a dollar amount.
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10. Administrative Expenses
Pursuant to Section 1 of the settlement agreements, qualifying expenditures may include reasonable related administrative expenses. Please refer to DHCS Administrative Costs policy for additional guidance.

What amount of your total allocation from the California Abatement Account was spent on administrative costs? Please list the total administrative expenses for each opioid settlement your Participating Subdivision received.

Administrative Expenses for SFY 22-23
Allergan
CVS
Distributors
Janssen
Teva
Walgreens
Walmart
(Answer only if you answered “Yes” in Section 5.) What amount of your total allocation from the California Subdivision Fund was spent on administrative costs? Please list the total administrative expenses for each opioid settlement your Participating Subdivision received.

Administrative Expenses for SFY 22-23
Allergan
CVS
Distributors
Janssen
Teva
Walgreens
Walmart
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I acknowledge that Participating Subdivisions may not exceed a cap of 10% of the total allocation from the California Abatement Account for administrative costs.

Sign:
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11. Allowable Expenses Reporting
In this section, Participating Subdivisions will be asked to categorize expenditures by activities and by Exhibit E allowable expenses. Please read the Allowable Expenses document prior to completing this section.

Programs or Activities are defined as specific projects or uses of opioid settlement funds. Programs may be a set of related activities to accomplish a project or outcome.

Activities may be smaller scale or a singular use of funds. For example, a program may be a syringe exchange program while an activity may be passing out flyers for prevention education.

Examples of program or activity names and descriptions:
• Activity or Program Name: Naloxone purchase
o Activity or Program Description: Our Participating Subdivision purchased 1,200 units of naloxone in February 2023 to distribute to unhoused individuals in Los Angeles City during a community distribution event led by a county community partner, Harm Reduction Organization. • Activity or Program Name: Expanded a recovery treatment center o Activity or Program Description: Our Participating Subdivision expanded a recovery treatment center by adding two additional staff members and expanded the physical building to include extra rooms and beds. • Activity or Program Name: Expanded syringe services in San FranciscoCity o Activity or Program Description: Our Participating Subdivision expanded safe syringe services in San Francisco City by installing safe syringe disposal units across the city. We also purchased safer drug use supplies to distribute at syringe exchanges and harm reduction centers in the city.

How many total activities or programs will you be reporting on for the SFY 2022- 2023 (period of July 1, 2022 - June 30, 2023)? Please enter a number. 301
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11. Allowable Expenses Reporting
Answer the following set of questions for each activity or program and you will be reporting on.

Please answer the following questions for Activity #1.

1. Activity or Program Name:

2. Activity or Program description (2-4 sentences):

3. List how much money was spent on this activity or program from your California Abatement Account by each settlement. If no money was spent from certain settlements, please write in 0.

Funds Expended in SFY 22-23
Allergan
CVS
Distributors
Janssen
Teva
Walgreens
Walmart
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4. List how much money was spent on this activity or program from your California Subdivision Fund by each settlement. If no money was spent from certain settlements, please write in 0.

Funds Expended in SFY 22-23
Allergan
CVS
Distributors
Janssen
Teva
Walgreens
Walmart

5. Activity Start Date (mm/dd/yyyy):

6. List all local agencies or organizations who were given funds to implementthis activity/program:

7. Select all Allowable Expenditure types that apply for this activity. (In this section, Participating Subdivisions will be asked to categorize their activities by the list of approved uses in Exhibit E, including subcategories, of the settlement agreements. Subcategories are not listed in this PDF. Please review Exhibit E before completing this section to review the subcategories.) » ▢ Treat Opioid Use Disorder (OUD)
» ▢ Support People in Treatment and Recovery
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» ▢ Connect People Who Need Help to the Help They Need (Connections to Care)
» ▢ Address the Needs of Criminal Justice-Involved Persons » ▢ Address the Needs of Pregnant or Parenting Women and Their Families, Including Babies with NAS
» ▢ Prevent Over-Prescribing and Ensure Appropriate Prescribing and Dispensing of Opioids
» ▢ Prevent Misuse of Opioids
» ▢ Prevent Overdose Deaths and Other Harms (Harm Reduction) » ▢ First Responders
» ▢ Leadership, Planning and Coordination
» ▢ Training
» ▢ Research
» ▢ Other
No less than fifty percent (50%) of the funds received by a Participating Subdivision from the Abatement Accounts Fund in each calendar year must be used for one or more of the High Impact Abatement Activities (HIAA).

Which, if any, High Impact Abatement Activities does activity #1 meet? Select all that apply and provide no more than 200 words to describe how this activity meets the selected High Impact Abatement Activity. ▢ HIAA 1: Provision of matching funds or operating costs for substance use disorder facilities within the Behavioral Health Continuum Infrastructure Program Please describe:
▢ HIAA 2: Creating new or expanded Substance Use Disorder (SUD) treatment infrastructure
Please describe:
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▢ HIAA 3: Addressing the needs of communities of color and vulnerable populations (including sheltered and unsheltered homeless populations) that are disproportionately impacted by SUD
Please describe:
▢ HIAA 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
Please describe:
▢ HIAA 5: Interventions to prevent drug addiction in vulnerable youth Please describe:
▢ HIAA 6: The purchase of naloxone for distribution and efforts to expand access to naloxone for opioid overdose reversals.

Please describe:
▢ This activity is not a High Impact Abatement Activity and do not meet the criteria as defined above.
(Answer if HIAA 3 is selected.) You selected: "HIAA 3: Addressing the needs of communities of color and vulnerable populations (including sheltered and unsheltered homeless populations) that are disproportionately impacted by SUD" Please describe the population(s) this activity or program serves:
(Answer if HIAA 4 is selected.) You selected: "HIAA 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 305
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outreach, diversion and deflection, employability, restorative justice, and harm reduction"
Please describe the population(s) this activity or program serves:
(Answer if HIAA 5 is selected.) You selected: "HIAA 5: Interventions to prevent drug addiction in vulnerable youth"
Please describe the population(s) this activity or program serves:

Please add anything else you would like to share about activity #1:
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12. Additional Activities
Do you have any other activities to report on?
oYes
o No
(If No, skip to Section 13.)
(If yes, answer this question.) How many more activities do you need to report for SFY 2022-2023 (period of July 1, 20223 – June 30, 2024)? Please enter a number.

12. Additional Allowable Expenses Reporting
Answer the following set of questions for each activity or program and you will be reporting on.
(If yes was selected above, repeat flow of Allowable Expenses Reporting pages 17- 35 above for each additional activity.)
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13. Planned Activities Reporting for SFY 2023 - 2024
In this section, Participating Subdivisions will report their planned activities for opioid settlement funds for the State Fiscal Year 2023-2024.

Participating Subdivisions will be asked to categorize planned expenditures by activities and by Exhibit E Allowable Expenses. Please read the Allowable Expenses document prior to completing this section.

Programs or Activities are defined as specific projects or uses of opioid settlement funds. Programs may be a set of related activities to accomplish a project or outcome.

Activities may be smaller scale or singular uses of funds. For example, a program may be a syringe exchange program while an activity may be passing out flyers for prevention education.

1. Does your Participating Subdivision plan to maintain the same activities in the SFY 2023 – 2024 (period of July 1, 2023 – June 30, 2024)?
oYes
o No
oUnsure

2. Does your Participating Subdivision plan to add or change new activities in the SFY 2023-2024 (period of July 1, 2023 – June 30, 2024)?
oYes
o No
(If Yes to 1. AND No to 2 to the questions above, then skip to Section 15. Technical Assistance.

Any other combinations of answers, please proceed to Section 14. Planned Activities Reporting.)
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14. Planned Activities Reporting
This section is where your Participating Subdivision will note planned activities and programs for the upcoming fiscal year.

Please answer the following questions for planned activity #1.

1. Activity or Program Name:

2. Activity or Program description (2-4 sentences):

5. Select all Allowable Expenditure types that apply for this activity. In this section, (In this section, Participating Subdivisions will be asked to categorize their activities by the list of approved uses in Exhibit E, including subcategories, of the settlement agreements. Subcategories are not listed in this PDF. Please review Exhibit E before completing this section to review the subcategories.) »
»
▢
▢
Treat Opioid Use Disorder (OUD)
Support People in Treatment and Recovery
» ▢
Care)
Connect People Who Need Help to the Help They Need (Connections to » ▢ Address the Needs of Criminal Justice-Involved Persons » ▢ Address the Needs of Pregnant or Parenting Women and Their Families, Including Babies with NAS
» ▢ Prevent Over-Prescribing and Ensure Appropriate Prescribing and Dispensing of Opioids
» ▢ Prevent Misuse of Opioids
» ▢ Prevent Overdose Deaths and Other Harms (Harm Reduction) 309
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» ▢ First Responders
» ▢ Leadership, Planning and Coordination
» ▢ Training
» ▢ Research
» ▢ Other
No less than fifty percent (50%) of the funds received by a Participating Subdivision from the Abatement Accounts Fund in each calendar year must be used for one or more of the High Impact Abatement Activities (HIAA).

Which, if any, High Impact Abatement Activities does planned activity #1 meet? Select all that apply and provide no more than 200 words to describe how this activity meets the selected High Impact Abatement Activity. ▢ HIAA 1: Provision of matching funds or operating costs for substance use disorder facilities within the Behavioral Health Continuum Infrastructure Program Please describe:
▢ HIAA 2: Creating new or expanded Substance Use Disorder (SUD) treatment infrastructure
Please describe:
▢ HIAA 3: Addressing the needs of communities of color and vulnerable populations (including sheltered and unsheltered homeless populations) that are disproportionately impacted by SUD
Please describe:
▢ HIAA 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
Please describe:
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▢ HIAA 5: Interventions to prevent drug addiction in vulnerable youth Please describe:
▢ HIAA 6: The purchase of naloxone for distribution and efforts to expand access to naloxone for opioid overdose reversals.

Please describe:
▢ This activity is not a High Impact Abatement Activity and do not meet the criteria as defined above.
(Answer if HIAA 3 is selected.) You selected: "HIAA 3: Addressing the needs of communities of color and vulnerable populations (including sheltered and unsheltered homeless populations) that are disproportionately impacted by SUD" Please describe the population(s) this activity or program serves:
(Answer if HIAA 4 is selected.) You selected: "HIAA 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"
Please describe the population(s) this activity or program serves:
(Answer if HIAA 5 is selected.) You selected: "HIAA 5: Interventions to prevent drug addiction in vulnerable youth"
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Please describe the population(s) this activity or program serves:

Please add anything else you would like to share about planned activity #1:
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15. Technical Assistance
Does your Participating Subdivision want technical assistance on how to spend opioid settlement funds?
oYes
o No
DHCS has created several resources for technical assistance and has an official TA request form where Participating Subdivisions can request consultation and assistance in how to spend their opioid settlement funds. These resources can be found on the DHCS OSF website. Please see the following technical assistance (TA) request form below. Please use the TA Request Form to formally submit a request for technical assistance or consultation.
• Technical Assistance Request Form

16. Attestations
I certify and attest on behalf of my Participating Subdivision that no less than fifty percent (50%) of the funds received from the California Abatement Account were used for one or more of the High Impact Abatement Activities:

Sign:

I certify and attest on behalf of my Participating Subdivision that all funds received have been used in compliance with the requirements of the National Settlement Agreements and State Subdivision Agreements. Final versions of these agreements can be found on the CA Attorney General’s website: https://oag.ca.gov/opioids Sign:
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I certify and attest on behalf of my Participating Subdivision that everything reported on this Opioid Settlement Funds Expenditure Reporting Form is true and correct:

Sign:
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CERTIFICATE OF LIABILITY INSURANCE DATE (MM/DD/YYYY)
11/20/2023
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS

CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.

IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed.

If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s).

PRODUCER
Optima Healthcare Insurance Services
9229 Sierra College Blvd
Roseville CA 95661
CONTACT Stewart Risk, Account Manager NAME:

PHONE (916) 945-7693 (A/C, No, Ext): FAX
(A/C, No): (916) 773-8208
E-MAIL [email protected] ADDRESS:

INSURER(S) AFFORDING COVERAGE NAIC #
INSURER A : California Healthcare Insurance Company, Inc. RRG 44504

INSURED
Barton Healthcare System
2170 South Avenue
South Lake Tahoe CA 96150
INSURER B :

INSURER C :

INSURER D :

INSURER E :

INSURER F :

COVERAGES CERTIFICATE NUMBER: 23-24 REVISION NUMBER:

THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS

CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.

INSR

LTR TYPE OF INSURANCE ADDL

INSD SUBRWVD POLICY NUMBER POLICY EFF (MM/DD/YYYY) POLICY EXP (MM/DD/YYYY) LIMITS COMMERCIAL GENERAL LIABILITY EACH OCCURRENCE $ 5,000,000

CLAIMS-MADE OCCUR

DAMAGE TO RENTED
PREMISES (Ea occurrence) $
Hospital Professional and MED EXP (Any one person) $
A General Liability HP 00833 07/01/2023 07/01/2024 PERSONAL & ADV INJURY $ Included GEN'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $ 15,000,000 POLICY PRO- LOC PRODUCTS - COMP/OP AGG $ JECT
Self Insured Retention $ 25,000 OTHER: Retroactive Date 01/01/90 AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT $ (Ea accident) ANY AUTO BODILY INJURY (Per person) $
OWNED SCHEDULED BODILY INJURY (Per accident) $ AUTOS ONLY AUTOS $ HIRED NON-OWNED PROPERTY DAMAGE
AUTOS ONLY AUTOS ONLY (Per accident)
$

UMBRELLA LIAB

EXCESS LIAB
OCCUR

CLAIMS-MADE
EACH OCCURRENCE $
AGGREGATE $
DED RETENTION $ $

WORKERS COMPENSATION

AND EMPLOYERS' LIABILITY Y / N
PER

STATUTE OTH- ER
ANY PROPRIETOR/PARTNER/EXECUTIVE E.L. EACH ACCIDENT $ OFFICER/MEMBER EXCLUDED? N / A (Mandatory in NH) E.L. DISEASE - EA EMPLOYEE $
If yes, describe under
DESCRIPTION OF OPERATIONS below E.L. DISEASE - POLICY LIMIT $ DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) RE: Reimbursement Agreement of Opioid Use Disorder Services The City of South Lake Tahoe, its elected or appointed officers, officials, employees, agents and volunteers are included as a Supplemental (Additional) Insured, but only with respect to General Liability arising out of the acts, errors or omissions of the Named Insured in the performance of the above-mentioned agreement, per the terms and conditions of the policy. Waiver of Subrogation included

CERTIFICATE HOLDER CANCELLATION
City of South Lake Tahoe
1901 Lisa Maloff Way
South Lake Tahoe, CA 96150

SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE

THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS.

The ACORD name and logo are registered marks of ACORD 315 AGENCY CUSTOMER ID:

LOC #:

ADDITIONAL REMARKS SCHEDULE Page of
AGENCY
Optima Healthcare Insurance Services

NAMED INSURED
Barton Healthcare System

POLICY NUMBER
HP 00833

CARRIER
California Healthcare Insurance Company, Inc. RRG

NAIC CODE
44504 EFFECTIVE DATE: 07/01/2023

ADDITIONAL REMARKS

THIS ADDITIONAL REMARKS FORM IS A SCHEDULE TO ACORD FORM, FORM NUMBER: 25
**NOTICE**
FORM TITLE: Certificate of Liability Insurance: Notes
"This policy is issued by your Risk Retention Group. Your Risk Retention Group may not be subject to all of the insurance laws and regulations of your state.

The ACORD name and logo are registered marks of ACORD 316 Authorized Representative
If issued after the inception date of this policy,
this endorsement must be signed by our
Authorized Representative.

Form No. HP E 020 (08.18) Page 1 of 1
CALIFORNIA HEALTHCARE INSURANCE COMPANY, INC.,
A Risk Retention Group
Honolulu, Hawaii

ENDORSEMENT
Endorsement No. 32
Named Insured: Barton Healthcare System
October 17, 2023 HP 00833
Effective Date of Endorsement Policy Number
City of South Lake Tahoe, its elected or appointed officers, officials, employees, agents and volunteers City of South Lake Tahoe
1901 Lisa Maloff Way
South Lake Tahoe, CA 96150
Reimbursable Opioid Remediation Services
Agreement dated: 10/17/2023
It is further understood and agreed that any coverage provided by this endorsement shall be subject to a Self-Insured Retention (SIR) as specified in Item 1.B. of the Declarations and a sub-limit of $1,000,000 each Claim, $1,000,000 aggregate per Policy Period. Any payments under this endorsement shall be deemed to be included within and not in addition to the Limit of Liability shown in Item 1.A. of the Declarations.

A thirty (30) day notice of cancellation will be provided to the Supplemental Insured listed above.

All other terms and conditions of this policy remain unchanged.

Endorsement Issue Date: November 20, 2023
317
Authorized Representative
If issued after the inception date of this policy,
this endorsement must be signed by our
Authorized Representative.

Form No. HP E 055 (08.18) Page 1 of 1
CALIFORNIA HEALTHCARE INSURANCE COMPANY, INC.,
A Risk Retention Group
Honolulu, Hawaii

ENDORSEMENT
Endorsement No. 33
WAIVER OF SUBROGATION – SUPPLEMENTAL INSURED
Named Insured: Barton Healthcare System
October 17, 2023
Effective Date of Endorsement
HP 00833
Policy Number
Supplemental Insured:

City of South Lake Tahoe, its elected or appointed officers, officials, employees, agents and volunteers City of South Lake Tahoe
1901 Lisa Maloff Way
South Lake Tahoe, CA 96150
Reimbursable Opioid Remediation Services
Agreement dated: 10/17/2023
It is understood and agreed that Section VII.N. of the Healthcare Entity Professional & General Liability Coverage Form (HP F 04) shall not prohibit the Named Insured from giving a waiver of subrogation to the Supplemental Insured named above.

All other terms and conditions of this policy remain unchanged.

Endorsement Issue Date: November 20, 2023
318
City of South Lake Tahoe
Agenda Item Executive Summary
Joe Irvin, City Manager
__________________________________
Meeting Date: September 23,
2025
Agenda Item #:8
Agenda Item: Agreement with CDM Smith, Inc. for US 50/89 Multimodal Mainstreet Corridor Plan Executive Summary: City Council will consider awarding a Professional Services Agreement to CDM Smith to prepare a Multimodal Mainstreet Corridor Plan along US Highway 50 and State Route 89. The services would be paid for with a Caltrans Sustainable Transportation grant.

Requested Action / Suggested Motions: Pass a Motion authorizing and directing the Mayor to execute the agreement with CDM Smith, Inc. for architectural and engineering services to develop the US 50/89 Multimodal Mainstreet Corridor Plan for a not to exceed amount of $474,946.27.

Responsible Staff Member: Hilary Roverud, Assistant City Manager and Emily Dougherty, Associate Transportation Planner
Reviewed and Approved By: Susan Blankenship, City Clerk Olga Tikhomirova, Director of Finance Heather Stroud, City Attorney
Attachments:
01-Staff Report US 5089 Corridor Plan.docx
02-Agreement with CDM Smith.pdf
319
Council Agenda Report September 23, 2025 Page 1 of 3

City of South Lake Tahoe
Report to City Council
Meeting Date: September 23, 2025
Title: US 50/89 Multimodal Mainstreet Corridor Plan Architecture and Engineering services agreement
Project Location: US 50/SR 89 Multi-Modal Corridor Study Responsible Staff Member: Hilary Roverud, Assistant City Manager, and Emily Dougherty, Associate Transportation Planner
Background: Caltrans manages US Highway 50 and State Route 89 in coordination with the City of South Lake Tahoe and El Dorado County. Caltrans is currently implementing Phase 1 Safety upgrades along US 50 from the “Y” to Pioneer Trail, which includes the addition of new street lights, pedestrian signals, and a new signal at US 50/Johnson Blvd.

The City, in association with the California Department of Transportation (Caltrans) and partner agencies, including TRPA and El Dorado County, recently completed a Road Safety Audit (RSA) study along US 50 and SR 89. The study was completed due to the City of South Lake Tahoe’s concerns regarding speeding along US 50/SR 89 and interactions between pedestrians, bicyclists, and non-motorized users in the corridor. The study identified several short-term, medium-term, and long-term action plans for traffic calming and other management applications to address these safety and mobility concerns. The City and Caltrans are in the process of implementing the short-term recommendations and the medium- and long-term recommendations will be incorporated into the Corridor Study implementation process.

Finally, the City recently completed a Vision Zero Action Plan, which includes a safety analysis for all roadways, including US 50/89. This study provides background information that will also be incorporated into the US 50 Corridor Plan.

South Lake Tahoe City CouncilSeptember 23, 2025

South Lake Tahoe City Council
September 23, 2025