Agenda packet — Woodland City Council, April 4, 2023

City of Woodland

Meeting Agenda

City Council
City Hall
Council Chambers
300 First Street
Woodland, CA 95695
April 4, 2023
6:00 PM

JOINT REGULAR CITY COUNCIL/WOODLAND FINANCE AUTHORITY MEETING 6:00 PM

A. CALL TO ORDER

B. ROLL CALL

C. PLEDGE OF ALLEGIANCE

D. COMMUNICATIONS - PUBLIC COMMENT

This is an opportunity for the public to speak to the Council on any item other than those listed on this agenda.

Speakers are requested to use the microphone in front of the Council and to begin by stating their name, whether they reside in Woodland and the name of the organization they represent if any. The Mayor may impose a time limit on any speaker depending on the number of people wanting to speak and time available for the rest of the agenda. In the event comments are related to an item scheduled on the agenda, speakers may be required to wait to make their comments until that item is considered. The option to submit a public comment via voicemail is no longer available. Written Public Comments Members of the public are welcome to submit written comments prior to the meeting. Comments should be submitted by email to [email protected]. Written Comments received at least two (2) hours prior to the scheduled start time of the City Council meeting will be provided to the City Council and posted to the City website as part of the official record of the meeting but will not be read into the record. Written Comments received within two (2) hours of the scheduled start time of the City Council meeting and during the City Council meeting will be provided to the City Council the day following the City Council meeting. If you are submitting written comments on a particular item on the agenda, please identify the agenda item number and letter. If you are submitting written comments on an item not listed on the agenda, please identify your e- mail/comment as a General Public Comment. Note: Public comments at special meetings are limited to items on the agenda only.

1. SUBJECT: General Public Comments

WRITTEN COMMUNICATIONS: This section is reserved for "General" Public Comments emailed within two (2) hours prior to the Council Meeting. These comments will be provided to the City Council and incorporated into the meeting minutes. Any other written communication submitted for items specific to this agenda will be attached as a file to the associated agenda item.

E. COMMUNICATIONS - COUNCIL/STAFF STATEMENTS AND REQUESTS

This is an opportunity for the Council Members and Staff to make comments and announcements, to express concerns, or to request Council's consideration of any items a Council Member would like to have discussed at a future Council meeting.

2. SUBJECT: Long Range Calendar

RECOMMENDATION FOR ACTION: Staff recommends that the City Council receive the Long Range Calendar for informational purposes only.

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F. CONSENT CALENDAR

3. SUBJECT: Proclaim April as Child Abuse Prevention Month

RECOMMENDATION FOR ACTION: Staff recommends that the City Council recognize April 2023 as Child Abuse Prevention Month.

4. SUBJECT: Certificate of Appreciation for Richard Thomas

RECOMMENDATION FOR ACTION: Staff recommends that the City Council recognize Woodland Fire Department Battalion Chief Richard Thomas for his many years of dedicated, unwavering service to the City of Woodland.

5. SUBJECT: City Council Meeting Minutes of March 7, 2023 and March 21, 2023

RECOMMENDATION FOR ACTION: Staff recommends that the City Council adopt the minutes of the Joint Regular City Council/Woodland Finance Authority Meetings of March 7, 2023 and March 21, 2023.

6. SUBJECT: Settlement Agreement with Opioid Distributors and Manufacturers

RECOMMENDATION FOR ACTION: Staff recommends that the City Council adopt a Resolution of the City Council of the City of Woodland authorizing the City Manager to:

1. Opt into settlement agreement with opioid distributor, Walgreens Co., and direct the City Manager to execute any documents necessary to implement the action.

2. Opt into settlement agreement with opioid distributor, Walmart, Inc. and direct the City Manager to execute any documents necessary to implement the action.

3. Opt into settlement agreement with opioid distributor, CVS Health Corporation/CVS Pharmacy, Inc. and direct the City Manager to execute any documents necessary to implement the action.

4. Opt into settlement agreement with opioid manufacturer, Teva Pharmaceutical Industries Ltd., and direct the City Manager to execute any documents necessary to implement the action.

5. Opt into settlement agreement with opioid manufacturer, Allergan Finance, LLC/Allergan Limited and direct the City Manager to execute any documents necessary to implement the action.

G. REPORTS OF THE CITY MANAGER

7. SUBJECT: Fiscal Year 2023/24 Spring Budget Workshop

RECOMMENDATION FOR ACTION: Staff recommends that the City Council conduct a workshop to receive an update from staff on the development of the City's Fiscal Year 2023/24 Budget.

H. ADJOURN

I declare under penalty of perjury that the foregoing Agenda for the Joint Regular City Council/Woodland Finance Authority Meeting of the City of Woodland scheduled for Tuesday, April 4, 2023 was posted on Thursday, March 30, 2023 in the outside display case at City Hall, 300 First Street, Woodland, CA, and was available to the public during normal business hours.

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Upon request, agendas and documents in the agenda packet will be made available in appropriate alternative formats to persons with a disability, as required by law. Any such requests must be made in writing to the Office of the City Clerk of the City of Woodland.

Requests will be valid for the calendar year in which the request is received, and must be renewed prior to January 1st.

Persons needing disability-related modifications or accommodations in order to participate in public meetings, including persons requiring auxiliary aids or services, may request such modifications or accommodations by calling the Office of the City Clerk (530-661-5806) at least 48 hours prior to the meeting.

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TO: THE HONORABLE MAYOR AND CITY COUNCIL
AGENDA: City Council Regular Meeting
DATE: April 4, 2023
ITEM #: E.2
SUBJECT: Long Range Calendar

Recommendation for Action: Staff recommends that the City Council receive the Long Range Calendar for informational purposes only.

Staff Contact:

Ana B. Gonzalez, City Clerk, (530) 661-5806, [email protected]

Background:

This calendar is being provided for planning purposes only and is intended to keep the Council apprised of upcoming agenda items and plan for upcoming Council items.

Attachments:

1. Council Long Range Calendar

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UPDATED CITY COUNCIL LONG RANGE CALENDAR
April 18TH REGULAR MEETING
Deputy Chief Anthony Cucchi Proclamation
Lieutenant Tom Davis Proclamation
Regulatory Agreement and Land Conveyance w/ Friends of the Mission (Phase 3 E. Beamer Way) Code Correction to Chapter 15.08.140 Designation of the Floodplain Administrator Award consultant design agreement for ASR Well #31, CIP #17-05 Military Use Equipment Annual Report
Spring Lake CIP Update and Consultant Services Agreement Woodland Regional Park Conservation Easement
Cannabis Tax Resolution
April 20TH SPECIAL JOINT MEETING
Adoption of Youth Action Plan – Joint Meeting with WJUSD Board of Trustees May 2ND REGULAR MEETING
City Council Meeting Minutes of April 4, 2023 and April 18, 2023 Animal Services Contract
Overview of Draft Comprehensive Zoning Ordinance Update May 16TH REGULAR MEETING
FY 2024 Budget Introduction
Woodland Micro Transit Service Presentation
June 6TH REGULAR MEETING
Woodland Research & Technology Park – Final EIR & Specific Plan Woodland TV (WAVE) Contract Renewal
Future Topics / Study Sessions:

Comprehensive Zoning Adoption (October)
Annexations – Westucky, Barnard Court, North East Street, & Industrial Area (Summer) Waste Management Residential Smart Truck (TBD)
Rule 20A Undergrounding District (TBD)
NOTE: Summer at City Hall students will attend the June 20th meeting

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TO: THE HONORABLE MAYOR AND CITY COUNCIL
AGENDA: City Council Regular Meeting
DATE: April 4, 2023
ITEM #: F.3
SUBJECT: Proclaim April as Child Abuse Prevention Month

Recommendation for Action: Staff recommends that the City Council recognize April 2023 as Child Abuse Prevention Month.

Staff Contact
Ana B. Gonzalez, City Clerk, (530) 661-5806, [email protected]

Background
At the request of the Yolo County Children's Alliance, the Woodland City Council is being asked to consider adopting a proclamation recognizing April 2023 as Child Abuse Prevention Month and promoting the new campaign "Cultivating a Trauma-Informed Community."

Attachments:

1. 2023 Woodland Child Abuse Prevention Proclamation

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Child Abuse Prevention Month
April 2023
WHEREAS, child abuse and neglect continue to pose serious threats to our nation’s children; and WHEREAS, Adverse Childhood Experiences (ACEs), such as physical, emotional, and sexual abuse, neglect, and parental stress or illness, can have short- and long-term outcomes, including a multitude of health and social problems; and WHEREAS, in 2022, according to the internal dataset from the Yolo County Health and Human Services Agency, 289 children in Yolo County were found to be victims of abuse and/or neglect. The pandemic exacerbated income inequality, toxic stress and access to resources in Woodland and across Yolo County; and WHEREAS, preventing child abuse and neglect is a community issue, and we all have a responsibility to nurture and protect our children and help ensure they become healthy and productive adults. Woodland is fortunate to have people and organizations who work to bring awareness to this issue and who help children and families dealing with abuse and neglect; and
WHEREAS, Yolo County Children’s Alliance (YCCA) was founded as the Child Abuse Prevention Council (CAPC) of Yolo County in 2002 and has continued to coordinate county efforts to prevent and respond to child abuse and neglect. Yolo County’s child abuse prevention efforts are fostered by the contributions of the following agencies and organizations: CommuniCare Health Centers, Empower Yolo, First 5 Yolo, West Sacramento Police Department, Yolo County CASA, Yolo County District Attorney’s Office- Multi-Disciplinary Interview Center, Yolo County HHSA, Yolo County Office of Education, Yolo County Probation, community members and those with lived experience; and
WHEREAS, prevention can only be accomplished if we, both as a City and a County, take responsibility to offer parents and families the support and tools they need to provide healthy, nurturing homes for their children; and WHEREAS, Woodland residents are encouraged to support child abuse prevention activities in their communities by joining the new CAPC campaign: Cultivating a Trauma-Informed Community through the Lisa Project and Resource Fair. The Lisa Project is a multisensory exhibit that tells the story of child abuse from a child’s perspective. While walking through the exhibit and hearing a child’s story, one learns that child abuse does not discriminate against age, gender, race, or socioeconomic status; it tends to be cyclic, leaves life-long scars, and tends to remain a secret. The objective of bringing The Lisa Project to Yolo County is to raise awareness of child abuse and help illustrate that it is our collective responsibility to protect children in our community.

NOW, THEREFORE BE IT PROCLAIMED that the City Council of the City of Woodland does hereby recognize the month of April 2023 as “Child Abuse Prevention Month”.

Dated this 21st day of March, 2023
Vicky Fernandez, Mayor
Tania Garcia-Cadena, Mayor Pro Tempore Rich Lansburgh, Council Member Tom Stallard, Council Member Mayra Vega, Council Member

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TO: THE HONORABLE MAYOR AND CITY COUNCIL
AGENDA: City Council Regular Meeting
DATE: April 4, 2023
ITEM #: F.4
SUBJECT: Certificate of Appreciation for Richard Thomas

Attachments:

1. Thomas Certificate of Appreciation

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CERTIFICATE OF APPRECIATION

RECOGNIZING RICH THOMAS FOR HIS MANY YEARS OF PUBLIC SERVICE WHEREAS, Rich Thomas has had a distinguished career in public service with the City of Woodland Fire Department spanning 37 years. He joined the Fire Department as a Firefighter on September 1st, 1986 and promoted to Fire Captain on August 1st, 2003 spending most of his career at Fire Station 1. Battalion Chief Thomas has been involved in many aspects of the Fire Department, including the Fire Department Honor Guard, arson investigation team, President of the Woodland Professional Firefighters Association, lead instructor at the department’s new hire orientation academies, uniform committee, certification board, and built the department’s first grade program that is still in use today throughout all Woodland schools; and WHEREAS,Battalion Chief Thomas was a valued community member and resident of Woodland for more than 15 years, coaching youth sports and volunteering at various fundraising events.; and
WHEREAS, In September of 2003 the Woodland City Council through a council proclamation acknowledged, then Fire Captain Thomas’s actions at a house fire where he and his crew rescued a victim in zero visibility conditions, saving the victims life; and WHEREAS,Battalion Chief Thomas promoted to Battalion Chief December 1st, 2012 and took on the role of training officer as a collateral assignment. Battalion Chief Thomas is a steering committee member at the West Valley Regional Fire Training Consortium, and he has assisted with many hiring and promotional examinations; and WHEREAS, Battalion Chief Thomas is a State Fire Marshal certified Company Officer, and Chief Officer, and has earned his Associates Degree in Fire Science from Columbia Junior College.

NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Woodland does hereby recognize Rich Thomas for over 37 years of dedicated public service to the citizens of Woodland.

DATED: April 4, 2023
Vicky Fernandez, Mayor
Tania Garcia-Cadena, Mayor Pro Tempore Mayra Vega, Council Member Rich Lansburgh, Council Member Tom Stallard, Council Member

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TO: THE HONORABLE MAYOR AND CITY COUNCIL
AGENDA: City Council Regular Meeting
DATE: April 4, 2023
ITEM #: F.5
SUBJECT: City Council Meeting Minutes of March 7, 2023 and March 21, 2023

Recommendation for Action: Staff recommends that the City Council adopt the minutes of the Joint Regular City Council/Woodland Finance Authority Meetings of March 7, 2023 and March 21, 2023.

Staff Contact:

Ana B. Gonzalez, City Clerk, (530) 661-5806, [email protected]

Attachments:

1. 03.07.23 Minutes_DRAFT

2. 03.21.23 Minutes_DRAFT

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City of Woodland
City Hall
Council Chambers
300 First Street
Woodland, CA 95695

Regular Meeting Minutes

Tuesday, March 7, 2023

6:00 PM

City Council

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CITY COUNCIL

CLOSED SESSION
5:30 PM

A. CALL TO ORDER

B. CLOSED SESSION

1. CONFERENCE WITH LABOR NEGOTIATORS (Gov. Code §54957.6) Agency Designated Representative: City Manager and Director of Administrative Services
Employee Organization: Confidential Employees, Woodland Fire Mid- Management Association, Woodland Professional Firefighters Association and Woodland City Employees Association

JOINT REGULAR CITY COUNCIL/WOODLAND FINANCE AUTHORITY MEETING 6:00 PM

C. CALL TO ORDER
Meeting called to order at 6:04 PM.

D. ROLL CALL

Present: Members Garcia-Cadena, Lansburgh, Stallard and Mayor Vicky Fernandez Abesent: Member Vega

E. PLEDGE OF ALLEGIANCE
Pledge of Allegiance led by Community Services Director Christine Engel.

F. COMMUNICATIONS - PUBLIC COMMENT

This is an opportunity for the public to speak to the Council on any item other than those listed on this agenda.

Mary Solecki and Michele Mitchell spoke regarding Stroll through History and Chris Palomo with Norcal Carpenters Union spoke regarding the Apprenticeship Program.

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2. SUBJECT: General Public Comments

Received email from Communicate Ccib regarding speed limit removal.

G. COMMUNICATIONS - COUNCIL/STAFF STATEMENTS AND REQUESTS

Verbal updates provided by Council Members/Staff.

3. SUBJECT: Long Range Calendar

RECOMMENDATION FOR ACTION: Staff recommends that the City Council receive the Long Range Calendar for informational purposes only.

H. CONSENT CALENDAR

4. SUBJECT: City Council Meeting Minutes of February 7, 2023 and February 21, 2023

RECOMMENDATION FOR ACTION: Staff recommends that the City Council adopt the minutes of the Joint Regular City Council/Woodland Finance Authority Meetings of February 7, 2023 and February 21, 2023.

Adopted the minutes of the Joint Regular City Council/Woodland Finance Authority Meetings of February 7, 2023 and February 21, 2023.

5. SUBJECT: Side Letter of Agreement - Woodland City Employees' Association

RECOMMENDATION FOR ACTION: Staff recommends that the City Council approve the Side Letter of Agreement to amend the Memorandum of Understanding with the Woodland City Employees' Association.

Approved the Side Letter of Agreement to amend the Memorandum of Understanding with the Woodland City Employees' Association.

6. SUBJECT: Job Description Modifications

RECOMMENDATION FOR ACTION: Staff recommends that the City Council (1) approve modifications to the job descriptions for the Executive Assistant to the City Manager and the Marketing and Business Relations Specialist, and (2) approve the modified salary schedule.

Approved modifications to the job descriptions for the Executive Assistant to the City Manager and the Marketing and Business Relations Specialist, and approved the modified salary schedule.

7. SUBJECT: Second Reading and Adoption of Ordinance No. 1704, Approving Amendments to the Emergency Shelter Ordinance, Section 17.152

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RECOMMENDATION FOR ACTION: Staff recommends that the City Council conduct the second reading and adopt Ordinance No. 1704, approving amendments to Section 17.152. of Chapter 17 and the allowed use tables of the Municipal Code related to emergency shelters.

Adopted ORDINANCE NO. 1704, AN ORDINANCE OF THE CITY COUNCIL OF THE CITY

OF WOODLAND TO UPDATE ZONING REQUIREMENTS TO ENSURE CONSISTENCY

WITH STATE HOUSING REQUIREMENTS REGARDING EMERGENCY SHELTERS,

INCLUDING ALLOWING EMERGENCY SHELTERS AND LOW BARRIER NAVIGATION

CENTERS AS A BY-RIGHT USE IN MIXED USE ZONES (CMU) AND AS A CONDITIONALLY ALLOWED USE IN THE INDUSTRIAL ZONE (I).

8. SUBJECT: Final Acceptance and Notice of Completion for the 2022 Water and Sewer Repair and Replacement Project, CIP 21-01

RECOMMENDATION FOR ACTION: Staff recommends that the City Council adopt Resolution No. _____, accepting the construction contract for the 2022 Water and Sewer Repair and Replacement Project, CIP 21-01 with Argonaut Constructors as complete and authorizing the City Clerk to file a Notice of Completion.

Adopted RESOLUTION NO. 8049, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WOODLAND TO ACCEPT THE 2022 WATER AND SEWER REPAIR AND REPLACEMENT PROJECT, CIP 21-01, CONSTRUCTION CONTRACT AS COMPLETE AND AUTHORIZE THE CITY CLERK TO FILE A NOTICE OF COMPLETION.

9. SUBJECT: Final Acceptance and Notice of Completion of Fifth and Clover Streets Sewer Rehabilitation, CIP #22-18

RECOMMENDATION FOR ACTION: Staff recommends that the City Council approve Resolution No. _____, accepting the Fifth and Clover Streets Sewer Rehabilitation, CIP #22-18, construction project as complete and authorizing the City Clerk to file a Notice of Completion.

Adopted RESOLUTION NO. 8050, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF4- WOODLAND TO ACCEPT AS COMPLETE AND AUTHORIZE THE CITY CLERK TO

FILE A NOTICE OF COMPLETION FOR FIFTH AND CLOVER SEWER REHABILITATION (CIP #22-18).

On a motion by Mayor Pro Tem Garcia-Cadena, seconded by Council Member Stallard and carried on a 4-0 vote, Council Members approved Consent Calendar Items No. 4 through 9.

AYES: Members Garcia-Cadena, Lansburgh, Stallard and Mayor Vicky Fernandez NOES: None
ABSENT: Member Vega

I. REPORTS OF THE CITY MANAGER

10. SUBJECT: Fiscal Year 2022/23 Mid-Year Budget Update

RECOMMENDATION FOR ACTION: Staff recommends the City Council receive a mid-year update on the Fiscal Year 2022/23 Budget.

Received a mid-year update on the Fiscal Year 2022/23 Budget from Finance Officer Evis Morales and Administrative Services Director Kim McKinney.

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11. SUBJECT: Fiscal Year 2022/23 Mid-Year Budget Adjustments

RECOMMENDATION FOR ACTION: Staff recommends that the City Council adopt Resolution No. _____, authorizing amendments to the Fiscal Year 2022/23 Budget Totaling $11,759,989 and authorizing amendments to authorized positions as outlined in Exhibit B.

On a motion by Council Member Stallard, seconded by Council Member Lansburgh and carried on a 4-0 vote, Council Members adopted RESOLUTION NO. 8051, A

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WOODLAND APPROVING AMENDMENTS TO THE FISCAL YEAR 2022-2023 ANNUAL BUDGET.

AYES: Members Garcia-Cadena, Lansburgh, Stallard and Mayor Vicky Fernandez NOES: None
ABSENT: Member Vega

J. ADJOURN

Meeting adjourned at 6:59 PM.

Respectfully submitted,

Ana B. Gonzalez, City Clerk

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City of Woodland
City Hall
Council Chambers
300 First Street
Woodland, CA 95695

Regular Meeting Minutes

Tuesday, March 21, 2023

6:00 PM

City Council

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CITY COUNCIL

CLOSED SESSION
5:45 PM

A. CALL TO ORDER

B. CLOSED SESSION

1. Conference with Legal Counsel – Existing Litigation (Government Code Section 54956.9)
Name of Case: Bisch v. County of Yolo, et al (Eastern District of California Case No. 2:23-CV-00455)

JOINT REGULAR CITY COUNCIL/WOODLAND FINANCE AUTHORITY MEETING 6:00 PM

C. CALL TO ORDER
Meeting called to order at 6:05 PM.

D. ROLL CALL

Present: Member Garcia-Cadena, Lansburgh, Vega and Mayor Vicky Fernandez

Absent: Member Stallard

E. PLEDGE OF ALLEGIANCE
Pledge of Allegiance led by Tom Crumpacker.

F. COMMUNICATIONS - PUBLIC COMMENT

This is an opportunity for the public to speak to the Council on any item other than those listed on this agenda.

2. SUBJECT: General Public Comments

WRITTEN COMMUNICATIONS: This section is reserved for "General" Public Comments emailed within two (2) hours prior to the Council Meeting. These

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comments will be provided to the City Council and incorporated into the meeting minutes. Any other written communication submitted for items specific to this agenda will be attached as a file to the associated agenda item.

G. COMMUNICATIONS - COUNCIL/STAFF STATEMENTS AND REQUESTS

Verbal updates provided by Council Members/Staff.

3. SUBJECT: Long Range Calendar

RECOMMENDATION FOR ACTION: Staff recommends that the City Council receive the Long Range Calendar for informational purposes only.

H. CONSENT CALENDAR

4. SUBJECT: Proclaim March as Women's History Month

RECOMMENDATION FOR ACTION: Staff recommends that the City Council proclaim March 2023 as Women’s History Month, themed “Celebrating Women Who Tell Our Stories”.

Proclaimed March 2023 as Women’s History Month, themed “Celebrating Women Who Tell Our Stories.

5. SUBJECT: Parks & Recreation Commission Meeting Minutes of January 23, 2023

RECOMMENDATION FOR ACTION: Staff recommends that the City Council receive the January 23, 2023 Parks & Recreation Commission Meeting Minutes.

Received the January 23, 2023 Parks & Recreation Commission Meeting Minutes.

6. SUBJECT: Sustainability Advisory Committee Minutes and Update

RECOMMENDATION FOR ACTION: Staff recommends that the City Council receive the Sustainability Advisory Committee's recent meeting minutes and 2023 Work Plan .

Received the Sustainability Advisory Committee's recent meeting minutes and 2023 Work Plan.

7. SUBJECT: Public Works Quarterly Status Report

RECOMMENDATION FOR ACTION: Staff recommends that the City Council receive a presentation and accept the Public Works Quarterly Status Report for the period of December 2022 through February 2023.

Accepted the Public Works Quarterly Status Report for the period of December 2022 through February 2023.

8. SUBJECT: Cooperative Agreement with Caltrans for Gibson Road at SR-113 Interchange Modification Project, CIP 19-13

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RECOMMENDATION FOR ACTION: Staff recommends that the Council adopt Resolution No. _____, approving the Cooperative Agreement with the State of California Department of Transportation (Caltrans) regarding interchange modifications at the SR-113 NB off-ramp at Gibson Road, and authorizing the City Manager to sign the Agreement on behalf of the City.

Adopted RESOLUTION NO. 8052, A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF WOODLAND APPROVING A COOPERATIVE AGREEMENT WITH THE STATE DEPARTMENT OF TRANSPORTATION (CALTRANS).

9. SUBJECT: Final Acceptance and Notice of Completion for 2022 Road Maintenance Project, CIP 22-06

RECOMMENDATION FOR ACTION: Staff recommends that the City Council (1) adopt Resolution No. _____, accepting the 2022 Road Maintenance Project, CIP 22-06, as complete and authorizing the City Clerk to file a Notice of Completion; and (2) authorize the reallocation of $100,000.00 of unspent Measure F Funds from the Fiscal Year 2023 Budget for the 2022 Road Maintenance Project, CIP 22-06, to the 2023 Road Maintenance Project, CIP 23-01.

Adopted RESOLUTION NO. 8053, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WOODLAND TO ACCEPT THE 2022 ROAD MAINTENANCE PROJECT (CIP 22-06)

CONSTRUCTION CONTRACT AS COMPLETE AND AUTHORIZE THE CITY CLERK TO FILE A NOTICE OF COMPLETION, AND REALLOCATING $100,000 OF MEASURE F FUNDING TO THE 2023 ROAD MAINTENANCE PROJECT (CIP 23-01).

10. SUBJECT: Amend Contract with Golden State Emergency Vehicle Service, Inc. for Fire Apparatus Maintenance and Repair Services

RECOMMENDATION FOR ACTION: Staff recommends that the City Council adopt Resolution No. _____, authorizing the City Manager to execute the First Amendment to the maintenance and repair services agreement with Golden State Emergency Vehicle Services, Inc for an additional amount up to $150,000 for a total agreement amount of $314,000.

Adopted RESOLUTION NO. 8054, A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF WOODLAND APPROVING THE FIRST AMENDMENT TO AN AGEEMENT WITH

GOLDEN STATE EMERGENCY VEHILCE SERVICES, INC FOR MAINTENANCE AND REPAIR SERVICES FOR FIRE APPARATUS.

11. SUBJECT: Contract Amendment with Economic Planning Systems, Inc., for the preparation of a Public Facilities Financing Plan for the Woodland Research and Technology Park Specific Plan Project

RECOMMENDATION FOR ACTION: Staff recommends that the City Council adopt Resolution No. _____, authorizing the City Manager to execute Amendment #3 to the consultant services agreement with Economic Planning Systems, Inc. ("EPS"), for the Public Facilities Financing Plan for the Woodland Research and Technology Park Specific Plan Project for an additional amount not to exceed $27,000, for a total amended contract amount of $107,000.

Adopted RESOLUTION NO. 8055, A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF WOODLAND APPROVING THE THIRD AMENDMENT TO THE PROFESSIONAL

SERVICES AGREEMENT WITH ECONOMIC PLANNING SYSTEMS, INC FOR PUBLIC

FACILITIES FINANCING PLAN IN SUPPORT OF THE WOODLAND RESEARCH AND TECHNOLOGY PARK SPECIFIC PLAN PROJECT.

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On a motion by Council Member Vega, seconded by Mayor Pro Tem Garcia-Cadena and carried on a 4-0 vote, Council Members approved Consent Calendar Items No. 4 through 11.

AYES: Members Garcia-Cadena, Lansburgh, Vega and Mayor Vicky Fernandez NOES: None
ABSENT: Member Stallard

I. PUBLIC HEARINGS

12. SUBJECT: 6th Cycle Housing Element - Version 2

RECOMMENDATION FOR ACTION: Staff recommends that the City Council:
(1) Receive a staff report; (2) Hold a public hearing; and:
(a) Certify that the Housing Element- Version 2 is consistent with the General Plan EIR pursuant to Section 15183 of the California Environmental Quality Act (CEQA);
(b) Adopt Resolution No. _____, amending the existing General Plan to replace the existing Housing Element Version 1 with the 6th Cycle 2021- 2029 Housing Element Version 2; and
(c) Direct staff to transmit the final document to the State Department of Housing and Community Development (HCD) pursuant to Government Code Section 65585(g).

On a motion by Council Member Lansburgh, seconded by Council Member Vega and carried on a 4-0 vote, Council Members adopted RESOLUTION NO. 8056, RESOLUTION

OF THE CITY COUNCIL OF THE CITY OF WOODLAND APPROVING AN AMENDMENT

TO THE GENERAL PLAN TO REPLACE THE EXISTING HOUSING ELEMENT WITH THE FINAL VERSION 2 -2021-2029 HOUSING ELEMENT UPDATE.

AYES: Members Garcia-Cadena, Lansburgh, Vega and Mayor Vicky Fernandez NOES: None
ABSENT: Member Stallard

J. REPORTS OF THE CITY MANAGER

13. SUBJECT: Campbell Park Neighborhood Traffic Calming

RECOMMENDATION FOR ACTION: Staff recommends that the City Council 1) receive an update on the results of the neighborhood review and approval of the traffic calming plan and 2) provide staff direction on implementation of neighborhood traffic calming.

On a motion by Mayor Vicky Fernandez, seconded by Council Member Garcia-Cadena and carried on a 4-0 vote, Council Members provided direction to staff to continue with the traffic calming plan.

AYES: Members Garcia-Cadena, Lansburgh, Vega and Mayor Vicky Fernandez NOES: None
ABSENT: Member Stallard

14. SUBJECT: Updated Priority Goals and Strategic Plan for 2023-2024

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RECOMMENDATION FOR ACTION: Staff recommends that the City Council review and affirm its Updated Priority Goals and Strategic Plan for 2023-2024.

On a motion by Mayor Pro Tem Garcia-Cadena, seconded by Council Member Vega and carried on a 4-0 vote, Council Members affirmed its Updated Priority Goals and Strategic Plan for 2023-2024 with a friendly amendment to move "Expand volunteer and neighborhood watch program" from Priority Initiative back to Continuing Initiative as was originally indicated.

AYES: Members Garcia-Cadena, Lansburgh, Vega and Mayor Vicky Fernandez NOES: None
ABSENT: Member Stallard

K. ADJOURN

Meeting adjourned at 08:04 PM.

Respectfully submitted,

Ana B. Gonzalez, City Clerk

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TO: THE HONORABLE MAYOR AND CITY COUNCIL
AGENDA: City Council Regular Meeting
DATE: April 4, 2023
ITEM #: F.6
SUBJECT: Settlement Agreement with Opioid Distributors and Manufacturers

Recommendation for Action: Staff recommends that the City Council adopt a Resolution of the City Council of the City of Woodland authorizing the City Manager to:

1. Opt into settlement agreement with opioid distributor, Walgreens Co., and direct the City Manager to execute any documents necessary to implement the action.

2. Opt into settlement agreement with opioid distributor, Walmart, Inc. and direct the City Manager to execute any documents necessary to implement the action.

3. Opt into settlement agreement with opioid distributor, CVS Health Corporation/CVS Pharmacy, Inc. and direct the City Manager to execute any documents necessary to implement the action.

4. Opt into settlement agreement with opioid manufacturer, Teva Pharmaceutical Industries Ltd., and direct the City Manager to execute any documents necessary to implement the action.

5. Opt into settlement agreement with opioid manufacturer, Allergan Finance, LLC/Allergan Limited and direct the City Manager to execute any documents necessary to implement the action.

Staff Contact:

Ken Hiatt, City Manager, (530) 661-5802, [email protected] Fiscal Impact:

If the City opts into all of the settlements and elects to have the money deposited directly with the City (rather than the default option, which is to have the City’s allocated funds be deposited with Yolo County) the City has a projected weighted allocation of 0.0477904% of 70% of the potential maximum settlement amount of $1,800,000,000, which totals approximately $602,159.04.

Background:

Last year, litigation brought by states and cities across the United States against the three largest pharmaceutical distributors of opioid painkillers, Amerisource Bergen, Cardinal Health, and McKesson (the “Distributors”), and the opioid painkiller manufacturer, Janssen (owned by Johnson & Johnson) (“J&J”), resulted in two proposed settlements totaling approximately $26 billion dollars.

Between November and December 2022, five additional parties (the “New Parties”) have entered into National Opioid Settlements with terms identical to the Distributors/J&J Settlements. Copies of each of these settlement agreements can be viewed in full by accessing nationalopioidsettlement.com. The City can opt into these new settlements, thereby releasing its claims against the new, in order to receive at most $602,159.04 paid out over a period of 15 years. The funds are restricted to certain opioid abatement/remediation uses. The City can either allow the funds to be used by the County of Yolo (which is the default option) or elect to use the funds itself, subject to reporting requirements to the state.

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Alternatively, the City can take no action, thereby opting out of the settlements, while maintaining its right to pursue litigation against the New Parties.

Discussion:

A. Allocation of Funds
Additional litigation brought by states and cities across the United States against the New Parties has resulted in a proposed settlement totaling approximately $20.2 billion dollars. The proposed settlement is broken into five separate deals: (1) the Walgreens Settlement; (2) the Walmart Settlement; (3) the CVS Settlement; (4) the Teva Settlement; and the Allergan Settlement. The estimated total nationwide payout and payment schedule are outlined below:

Defendant Estimated Max Payout
(100% Participation)
Years
Walgreens $5,522,528,766 15 years
Walmart $3,011,242,061 Primarily paid within 3 years, but if participation levels are not met
until later, payment can extend
over 6 years.

CVS $5,002,083,578 10 years
Teva $4,246,567,371.76 6 years
Allergan $2,372,972,184.12 7 years

Of the amounts above, California is to receive approximately $1.8 billion and is to distribute these funds pursuant to intrastate allocation agreements for the new settlements.

As outlined in the Intrastate Allocation Agreements, Settlement Fund payments due to the State of California are allocated as follows: 15% to the State Fund; 70% to the California Abatement Accounts Fund; and 15% to the California Subdivision Fund. This results in the State receiving 15% of the payments allocated to California and local subdivisions receiving the remaining 85%. The percentages paid out to the California Subdivision Fund is reserved or entities that participated in the litigation of the claims giving rise to the settlement agreements. The percentages paid out to local subdivisions that did not litigate, but choose to opt into the settlements comes from the share of the settlement proceeds that are placed in the California Abatement Accounts Fund. Essentially, this means that the City of Woodland, if it chooses to opt into the settlement, is entitled to receive a percentage share from the California Abatement Accounts Fund.

The City of Woodland has been allocated 0.0477904% of the 70% of the approximate $1,800,000,000 (i.e., best case scenario), which is equal to $602,159.04. This total amount will be disbursed over a period of 15 years, with payments decreasing as each settlement finishes paying out. The first payments are scheduled to occur in the latter half of 2023. After the receipt of these initial payments, further payments will be received annually thereafter. As stated above, the definite amount is not yet known because of the bonus structure built into the agreements.

The default distribution of funds in the settlement agreements provides that the funds will go directly to the county in which a city is located. A city can instead elect to have its funds delivered directly to the city by providing notice in the settlement agreements. Additionally, a city within a county 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 administrators at least sixty days prior to a payment date.

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In deciding whether to allow a city’s funds to go directly to the county in which a city is located, a city should consider the following: (1) whether the amount of money is substantial enough for the city to handle it on its own; (2) whether the city offers the services and has the employees to spend the money in accordance with its prescribed uses; and (3) whether the city wants to engage in the reporting requirements over the course of the next nineteen years (eighteen years of distribution and an additional year following final distribution).

B. Use of Received Funds
Funds received from these settlements must be used for future opioid remediation or abatement. For instance, participating subdivisions may use funds for areas such as services to treat opioid-use disorder; support people in treatment and recovery; connect people to care; address needs of criminal justice-involved persons; address the needs of pregnant or parenting women and their families, including babies with neonatal abstinence syndrome; prevent over-prescribing and ensure appropriate prescribing and dispensing of opioids; prevent misuse of opioids; prevent overdose deaths and other harms; provide leadership, planning, and coordination of programs; provide training; and conduct research.

The Intrastate Allocation Agreements also provide spending limitations in addition to those provided in the settlement agreements. Under the Intrastate Allocation Agreements, no less than 50% of the funds received in each calendar year will be used for one or more of the following High Impact Abatement Activities:
(1) the provision of matching funds or operating costs for substance-use disorder facilities within the Behavioral Health Continuum Infrastructure Program;
(2) creating new or expanded Substance Use Disorder (“SUD”) treatment infrastructure; (3) addressing the needs of communities of color and vulnerable populations (including sheltered and unsheltered homeless populations) that are disproportionately impacted by SUD; (4) diversion of people with SUD from the justice system into treatment, including by providing training and resources to first and early responders (sworn and non-sworn) and implementing best practices for outreach, diversion and deflection, employability, restorative justice, and harm reduction; and/or (5) interventions to prevent drug addiction in vulnerable youth.

In addition to these requirements, there is also a time limit on the spending of received funds. If funds are not expended or encumbered within five years of receipt and in accordance with the settlement agreements and the Intrastate Allocation Agreements, the funds are required to be transferred back to the State.

C. Management of Funds
Each county and city that receives payment of funds from the settlements must prepare written reports at least annually regarding the use of those funds until the funds are fully expended and for one year thereafter. Each county and city will need to track all deposits and expenditures. These reports will also include a certification that all funds received have been used in compliance with the allocation agreements. The California Department of Healthcare and Services (“DHCS”) may review these reports in order to determine compliance with the settlement agreements and the Intrastate Allocation Agreement.

If the DHCS determines that a participating subdivision’s use of abatement funds is inconsistent with the settlement agreements or Intrastate Allocation Agreements, the parties are required to meet and confer. If the meet and confer process does not provide a resolution, the DHCS may conduct an audit, which can lead to a court action if the matter is still not resolved after an audit.

D. Opting In

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The City must opt into the settlements by April 18, 2023, which requires the City to release its claims against the New Parties. If the City takes no action, it will have opted out of the settlements and its designated funds will flow to the State. The City would still have the opportunity to bring its own action against the New Parties.

Conclusion:

Unless the City intends to pursue its own litigation against the settling parties, it is recommended that the City adopt a resolution authorizing the City Manager to opt into the settlement and elect to exercise the default option of having the City’s funds deposited with Yolo County.

Prepared By: Ethan Walsh, City Attorney
Reviewed By: Ken Hiatt, City Manager

Attachments:

1. Resolution regarding 2022 National Opioid Settlements

2. Allocation Chart-c1

3. 2022-National-Opioids-Settlements-FAQs-02-02-2023-c1

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RESOLUTION NO. ____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF WOODLAND, CALIFORNIA AUTHORIZING THE

CITY MANAGER TO ENTER INTO THE SETTLEMENT
AGREEMENTS WITH WALGREENS CO., WALMART,
INC., CVS HEALTH CORPORATION/CVS PHARMACY
INC., TEVA PHARMACEUTICAL INDUSTRIALS LTD.,

AND ALLERGAN FINANCE LLC/ALLERGAN LIMITED,

AGREE TO THE TERMS OF THE STATE-SUBDIVISION

AGREEMENTS, AND AUTHORIZE ENTRY INTO THE

STATE-SUBDIVISION AGREEMENTS WITH THE

ATTORNEY GENERAL
WHEREAS, the United States is facing an ongoing public health crisis of opioid abuse, addiction, overdose, and death, forcing the State of California and California counties and cities to spend billions of dollars each year to address the direct consequences of this crisis; and, WHEREAS, pending in the U.S. District Court for the Northern District of Ohio is a multidistrict litigation (“MDL”) being pursued by numerous public entity plaintiffs against the manufacturers and distributors of various opioids based on the allegation that the defendants’ unlawful conduct caused the opioid epidemic; and,
WHEREAS on or about November 14, 2022, a proposed nationwide tentative settlement was reached between the plaintiffs in the MDL and Walmart Inc. (“Walmart”); and, WHEREAS on or about November 22, 2022, a proposed nationwide tentative settlement was reached between the plaintiffs in the MDL and Teva Pharmaceutical Industries Ltd. and all of its respective past and present direct or indirect parents, subsidiaries, divisions, affiliates, joint ventures, predecessors, successors, assigns, including but not limited to Teva Pharmaceuticals USA, Inc., Actavis LLC (f/k/a Actavis Inc.), Actavis Elizabeth LLC, Actavis Kadian LLC, Actavis Pharma, Inc. (f/k/a Watson Pharma, Inc.), Actavis Kadian LLC, Actavis Laboratories UT, Inc. (f/k/a Watson Laboratories, Inc. – Utah), Actavis Mid Atlantic LLC, Actavis Totowa LLC, Actavis Laboratories FL, Inc. (f/k/a Watson Laboratories, Inc. – Florida), Actavis South Atlantic LLC, Warner Chilcott Company LLC, and Watson Laboratories, Inc., and Anda Inc. (collectively, “Teva”); and,
WHEREAS on or about November 22, 2022, a proposed nationwide tentative settlement was reached between the plaintiffs in the MDL and Allergan Finance, LLC (f/k/a Actavis, Inc., which in turn was f/k/a Watson Pharmaceutics, Inc.) and Allergan Limited (f/k/a Allergan plc, which, in turn, was f/k/a Actavis plc)(collectively, “Allergan”); and, WHEREAS, on or about December 9, 2022, a proposed nationwide tentative settlement was reached between the plaintiffs in the MDL and CVS Health Corporation and CVS Pharmacy, Inc. and all of their past and present direct and indirect parent and subsidiaries (collectively, “CVS”); and,

Page 26 ends

WHEREAS, on or about December 9, 2022, a proposed nationwide tentative settlement was reached between the plaintiffs in the MDL and Walgreen Co. (“Walgreens”); and, WHEREAS, CVS, Teva, Walgreens, Walmart, and Allergan shall be referred in this Resolution as “Settling Defendants”; and
WHEREAS, as part of the settlements with the Settling Defendants, local subdivisions, including certain cities, that are not plaintiffs in the MDL may participate in the settlements in exchange for a release of the Settling Defendants; and, WHEREAS, copies of the proposed terms of those proposed nationwide settlements have been set forth in the Master Settlement Agreements with the Settling Defendants; and, WHEREAS, copies of the Master Settlement Agreements are on file with the City Clerk; and,
WHEREAS, the Settlement Agreements provide, among other things, for the payment of a certain sum to settling government entities in California including to the State of California and Participating Subdivisions upon occurrence of certain events as defined in the Settlement Agreements (“California Opioid Funds”); and,
WHEREAS, California local governments in the MDL have engaged in extensive discussions with the State Attorney General’s Office (“AGO”) as to how the California Opioid Funds will be allocated, which has resulted in the Proposed California State-Subdivision Agreements Regarding Distribution and Use of Settlement Funds (“Allocation Agreements”) from the settlements with the Settling Defendants; and,
WHEREAS, the Allocation Agreements allocate the California Opioid Funds as follows:
15% to the State Fund; 70% to the Abatement Accounts Fund; and 15% to the Subdivision Fund.

For the avoidance of doubt, all funds allocated to California from the Settlements shall be combined pursuant to the Allocation Agreements, and 15% of total from each settlement shall be allocated to the State of California (the “State of California Allocation”), 70% to the California Abatement Accounts Fund (“CA Abatement Accounts Fund”), and 15% to the California Subdivision Fund (“CA Subdivision Fund”); and,
WHEREAS, under the Master Settlement Agreements, certain local subdivisions that did not file a lawsuit against the Settlement Defendants may qualify to participate in the settlements and obtain funds from the Abatement Account Fund; and,
WHEREAS, the City is eligible to participate in the Settlement and become a CA Participating Subdivision; and,
WHEREAS, the funds in the CA Abatement Accounts Fund (the 70% allocation) will be allocated based on the allocation model developed in connection with the proposed negotiating class in the National Prescription Opiate Litigation (MDL No. 2804), as adjusted to reflect only those cities and counties that are eligible, based on population or litigation status, to become a CA

Page 27 ends

Participating Subdivision (those above 10,000 in population). The percentage from the CA Abatement Accounts Fund allocated to each CA Participating Subdivision is set forth in Appendix 1 to the Allocation Agreements. The City’s share of the CA Abatement Accounts Fund will be a product of the total in the CA Abatement Accounts Fund multiplied by the City’s percentage set forth in Appendix 1 of the Allocation Agreements (the “Local Allocation”); and, WHEREAS, a CA Participating Subdivision that is a city will be allocated its Local Allocation share as of the date on which it becomes a Participating Subdivision. The Local Allocation share for a city that is a CA Participating Subdivision will be paid to the county in which the city is located, unless the city elects to take a direct election of the settlement funds, so long as: (a) the county is a CA Participating Subdivision, and (b) the city has not advised the Settlement Fund Administrator that it requests direct payment at least 60 days prior to a Payment Date; and,
WHEREAS, it the intent of this Resolution is to authorize the City to enter into the Master Settlement Agreements with the Settling Defendants by executing the Participation Agreements and to enter into the Allocation Agreements by executing the signature pages to those agreements.

NOW THEREFORE, be it resolved by the City Council of the City of Woodland as follows:

SECTION 1.The above recitals are true and correct and are incorporated herein by this reference.

SECTION 2.The City Manager is authorized to settle and release the City’s claims against the Settling Defendants in exchange for the consideration set forth in the Settlement Agreements and Allocation Agreements, including but not limited to taking the following measures:

1. The execution of the Participation Agreements with the Settling Defendants and any and all documents ancillary thereto.

2. The execution of the Proposed California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds with the Settling Defendants by executing the signature pages to those Allocation Agreements.

3. If applicable, notify the Settlement Fund Administrator that the City requests a direct payment under the Allocation Agreements at least 60 days prior to the Payment Date in the Settlement Agreements (as an alternative to having the money default to Yolo County).

SECTION 3.CEQA. That the City Council finds this Resolution is not subject to the California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA.

Page 28 ends

SECTION 4.Severability. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications, and to this end the provisions of this Resolution are declared to be severable.

SECTION 5. Effective Date. This Resolution shall become effective immediately.

PASSED, APPROVED AND ADOPTED by the City Council of the City of Woodland on _________, 2023 by the following vote, to wit:

Ayes:

Nays:

Absent:

Abstain:
__________________________________________
Vicky Fernandez, Mayor
ATTEST:
__________________________________________
Ana Gonzalez, City Clerk
APPROVED AS TO FORM:
__________________________________
Ethan Walsh
City Attorney

Page 29 ends

DISCLAIMER: The allocation percentages herein are estimates only and should not be relied on for decisions regarding legal rights, releases, waivers, or other decisions affecting current or potential legal claims. Percentages shown in the Plaintiff Subdivision Percentage column may change pursuant to Section 4.C. of the California State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds—Teva Settlement, whereas the percentages shown in the Abatement Percentage column should not change.

Participating Subdivisions, underlying calculations, and the calculated allocation percentages are subject to change. Regarding the column herein entitled “Abatement Percentage,” pursuant to Section 4.B.e., the State of California will receive the Local Allocation share of any payment to the Settlement Fund that is attributable to a county or city that is eligible to become a CA Participating Subdivision, but that has not, as of the date of that payment to the Settlement Fund, become a Participating Subdivision. Regarding the column herein entitled “Plaintiff Subdivision Percentage,” payments allocated to a Plaintiff Subdivision, which is not an Initial Participating Subdivision, will be re-allocated among the Plaintiff Subdivisions that are Initial Participating Subdivisions. Regarding the column herein entitled “Abatement Percentage,” the annotation of “100%” refers to one-hundred percent (100%) of the California Abatement Account Funds received, pursuant to Section 4.B. Regarding the column herein entitled “Plaintiff Subdivision Percentage,” the annotation of “100%” refers to one-hundred percent (100%) of the California Subdivision Funds received, pursuant to Section 4.C.

Regarding the column herein entitled “Weighted Allocation Percentage,” the annotation of “100%” refers to one-hundred percent (100%) of the combined and weighted allocation of the Abatement Percentage and the Plaintiff Subdivision Percentage.

DocuSign Envelope ID: 80E86211-C5BB-484A-9808-1B09F0F2EB31

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APPENDIX 1
1 of 15
100.000% 100.000% 100.000%
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
County Alameda County Alameda 2.332% 2.853% 2.4237952%
City Alameda Alameda 0.069% 0.0570162%
City Albany Alameda 0.013% 0.0107768%
City Berkeley Alameda 0.152% 0.1249656%
City Dublin Alameda 0.033% 0.040% 0.0338810%
City Emeryville Alameda 0.023% 0.0185765%
City Fremont Alameda 0.108% 0.0888576%
City Hayward Alameda 0.117% 0.0966218%
City Livermore Alameda 0.054% 0.0446740%
City Newark Alameda 0.026% 0.0217626%
City Oakland Alameda 0.486% 0.595% 0.5055601%
City Piedmont Alameda 0.014% 0.0114064%
City Pleasanton Alameda 0.067% 0.0554547%
City San Leandro Alameda 0.039% 0.0321267%
City Union City Alameda 0.043% 0.0352484%
County Amador County Amador 0.226% 0.277% 0.2349885%
County Butte County Butte 1.615% 1.975% 1.6783178%
City Chico Butte 0.216% 0.264% 0.2246499%
City Oroville Butte 0.079% 0.0646595%
County Calaveras County Calaveras 0.226% 0.277% 0.2351644% County Colusa County Colusa 0.059% 0.0489221%
County Contra Costa County Contra Costa 2.102% 2.571% 2.1844585% City Antioch Contra Costa 0.037% 0.0301879%
City Brentwood Contra Costa 0.026% 0.0215339%
City Clayton Contra Costa 0.002% 0.0018060%
City Concord Contra Costa 0.055% 0.0456676%
City Danville Contra Costa 0.010% 0.0082255%
City El Cerrito Contra Costa 0.023% 0.0189024%
City Hercules Contra Costa 0.010% 0.0078273%
DocuSign Envelope ID: 80E86211-C5BB-484A-9808-1B09F0F2EB31

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APPENDIX 1
2 of 15
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Lafayette Contra Costa 0.006% 0.0046030%
City Martinez Contra Costa 0.012% 0.0098593%
City Moraga Contra Costa 0.004% 0.0031007%
City Oakley Contra Costa 0.010% 0.0079416%
City Orinda Contra Costa 0.005% 0.0038157%
City Pinole Contra Costa 0.013% 0.0110909%
City Pittsburg Contra Costa 0.053% 0.0436369%
City Pleasant Hill Contra Costa 0.013% 0.0106309%
City Richmond Contra Costa 0.146% 0.1201444%
City San Pablo Contra Costa 0.018% 0.0148843%
City San Ramon Contra Costa 0.021% 0.0176459%
City Walnut Creek Contra Costa 0.026% 0.0212132%
County Del Norte County Del Norte 0.114% 0.140% 0.1189608% County El Dorado County El Dorado 0.768% 0.939% 0.7980034% City Placerville El Dorado 0.015% 0.0127642%
City South Lake Tahoe El Dorado 0.081% 0.0665456%
County Fresno County Fresno 1.895% 2.318% 1.9693410%
City Clovis Fresno 0.065% 0.0536211%
City Coalinga Fresno 0.012% 0.0098554%
City Fresno Fresno 0.397% 0.3270605%
City Kerman Fresno 0.005% 0.0042534%
City Kingsburg Fresno 0.008% 0.0066167%
City Mendota Fresno 0.002% 0.0019387%
City Orange Cove Fresno 0.004% 0.0035607%
City Parlier Fresno 0.008% 0.0069755%
City Reedley Fresno 0.012% 0.0098804%
City Sanger Fresno 0.018% 0.0146135%
City Selma Fresno 0.015% 0.0127537%
County Glenn County Glenn 0.107% 0.131% 0.1116978%
County Humboldt County Humboldt 1.030% 1.260% 1.0703185% DocuSign Envelope ID: 80E86211-C5BB-484A-9808-1B09F0F2EB31

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APPENDIX 1
3 of 15
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Arcata Humboldt 0.054% 0.0447660%
City Eureka Humboldt 0.117% 0.143% 0.1216284%
City Fortuna Humboldt 0.032% 0.0266837%
County Imperial County Imperial 0.258% 0.315% 0.2679006% City Brawley Imperial 0.011% 0.0087986%
City Calexico Imperial 0.019% 0.0152799%
City El Centro Imperial 0.158% 0.1302522%
City Imperial Imperial 0.006% 0.0048791%
County Inyo County Inyo 0.073% 0.089% 0.0754413%
County Kern County Kern 2.517% 3.079% 2.6159145%
City Arvin Kern 0.006% 0.0046425%
City Bakersfield Kern 0.212% 0.1747198%
City California City Kern 0.009% 0.0070820%
City Delano Kern 0.030% 0.0249316%
City McFarland Kern 0.003% 0.0025644%
City Ridgecrest Kern 0.015% 0.0120938%
City Shafter Kern 0.013% 0.0103417%
City Tehachapi Kern 0.009% 0.0073580%
City Wasco Kern 0.008% 0.0069861%
County Kings County Kings 0.293% 0.2413469%
City Avenal Kings 0.007% 0.0056335%
City Corcoran Kings 0.013% 0.0107032%
City Hanford Kings 0.027% 0.0226038%
City Lemoore Kings 0.016% 0.0131900%
County Lake County Lake 0.795% 0.6545389%
City Clearlake Lake 0.041% 0.050% 0.0426253%
City Lakeport Lake 0.021% 0.026% 0.0222964%
County Lassen County Lassen 0.319% 0.391% 0.3320610%
City Susanville Lassen 0.027% 0.0219295%
County Los Angeles County Los Angeles 13.896% 16.999% 14.4437559% DocuSign Envelope ID: 80E86211-C5BB-484A-9808-1B09F0F2EB31

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APPENDIX 1
4 of 15
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Agoura Hills Los Angeles 0.005% 0.0040024%
City Alhambra Los Angeles 0.042% 0.0343309%
City Arcadia Los Angeles 0.033% 0.0267718%
City Artesia Los Angeles 0.001% 0.0005100%
City Azusa Los Angeles 0.026% 0.0210857%
City Baldwin Park Los Angeles 0.027% 0.0218520%
City Bell Los Angeles 0.008% 0.0068783%
City Bellflower Los Angeles 0.002% 0.0014485%
City Bell Gardens Los Angeles 0.014% 0.0114301%
City Beverly Hills Los Angeles 0.065% 0.0534897%
City Burbank Los Angeles 0.100% 0.0823132%
City Calabasas Los Angeles 0.006% 0.0048948%
City Carson Los Angeles 0.019% 0.0159805%
City Cerritos Los Angeles 0.005% 0.0039682%
City Claremont Los Angeles 0.010% 0.0082584%
City Commerce Los Angeles 0.000% 0.0002971%
City Compton Los Angeles 0.044% 0.0361882%
City Covina Los Angeles 0.028% 0.0229127%
City Cudahy Los Angeles 0.001% 0.0006020%
City Culver City Los Angeles 0.055% 0.0449894%
City Diamond Bar Los Angeles 0.001% 0.0006993%
City Downey Los Angeles 0.052% 0.0429994%
City Duarte Los Angeles 0.003% 0.0027261%
City El Monte Los Angeles 0.031% 0.038% 0.0318985%
City El Segundo Los Angeles 0.033% 0.0268020%
City Gardena Los Angeles 0.034% 0.0278088%
City Glendale Los Angeles 0.166% 0.1366586%
City Glendora Los Angeles 0.016% 0.0134411%
City Hawaiian Gardens Los Angeles 0.005% 0.0040549%
City Hawthorne Los Angeles 0.050% 0.0407833%
DocuSign Envelope ID: 80E86211-C5BB-484A-9808-1B09F0F2EB31

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APPENDIX 1
5 of 15
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City Hermosa Beach Los Angeles 0.018% 0.0145307%
City Huntington Park Los Angeles 0.023% 0.0190667%
City Inglewood Los Angeles 0.059% 0.0489195%
City La Cañada Flintridge Los Angeles 0.003% 0.0025565% City Lakewood Los Angeles 0.005% 0.0039971%
City La Mirada Los Angeles 0.010% 0.0081572%
City Lancaster Los Angeles 0.045% 0.0369689%
City La Puente Los Angeles 0.002% 0.0012999%
City La Verne Los Angeles 0.024% 0.0194190%
City Lawndale Los Angeles 0.002% 0.0017731%
City Lomita Los Angeles 0.004% 0.0031940%
City Long Beach Los Angeles 0.439% 0.3614151%
City Los Angeles Los Angeles 2.715% 3.321% 2.8218811%
City Lynwood Los Angeles 0.016% 0.0134345%
City Malibu Los Angeles 0.002% 0.0019269%
City Manhattan Beach Los Angeles 0.032% 0.0260686%
City Maywood Los Angeles 0.004% 0.0035528%
City Monrovia Los Angeles 0.031% 0.0254455%
City Montebello Los Angeles 0.030% 0.0250670%
City Monterey Park Los Angeles 0.031% 0.0256677%
City Norwalk Los Angeles 0.031% 0.0258228%
City Palmdale Los Angeles 0.046% 0.0375827%
City Palos Verdes Estates Los Angeles 0.006% 0.0053102% City Paramount Los Angeles 0.011% 0.0091483%
City Pasadena Los Angeles 0.146% 0.1200524%
City Pico Rivera Los Angeles 0.022% 0.0183333%
City Pomona Los Angeles 0.111% 0.0911933%
City Rancho Palos Verdes Los Angeles 0.002% 0.0012645%
City Redondo Beach Los Angeles 0.062% 0.0506992%
City Rosemead Los Angeles 0.003% 0.0028260%
DocuSign Envelope ID: 80E86211-C5BB-484A-9808-1B09F0F2EB31

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APPENDIX 1
6 of 15
Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City San Dimas Los Angeles 0.003% 0.0022016%
City San Fernando Los Angeles 0.013% 0.0104837%
City San Gabriel Los Angeles 0.018% 0.0147726%
City San Marino Los Angeles 0.009% 0.0073791%
City Santa Clarita Los Angeles 0.022% 0.0178167%
City Santa Fe Springs Los Angeles 0.031% 0.0257531%
City Santa Monica Los Angeles 0.158% 0.1298513%
City Sierra Madre Los Angeles 0.006% 0.0048646%
City Signal Hill Los Angeles 0.010% 0.0084884%
City South El Monte Los Angeles 0.005% 0.0039603%
City South Gate Los Angeles 0.020% 0.0166272%
City South Pasadena Los Angeles 0.012% 0.0095334%
City Temple City Los Angeles 0.005% 0.0039498%
City Torrance Los Angeles 0.112% 0.0919820%
City Walnut Los Angeles 0.006% 0.0047305%
City West Covina Los Angeles 0.049% 0.0404521%
City West Hollywood Los Angeles 0.013% 0.0108517%
City Whittier Los Angeles 0.032% 0.0260581%
County Madera County Madera 0.349% 0.427% 0.3630669%
City Chowchilla Madera 0.012% 0.0097332%
City Madera Madera 0.039% 0.0318441%
County Marin County Marin 0.564% 0.690% 0.5861325%
City Larkspur Marin 0.015% 0.0124697%
City Mill Valley Marin 0.020% 0.0168401%
City Novato Marin 0.028% 0.0229824%
City San Anselmo Marin 0.009% 0.0078062%
City San Rafael Marin 0.089% 0.0729823%
County Mariposa County Mariposa 0.084% 0.103% 0.0876131% County Mendocino County Mendocino 0.439% 0.536% 0.4558394% City Ukiah Mendocino 0.039% 0.0317153%
DocuSign Envelope ID: 80E86211-C5BB-484A-9808-1B09F0F2EB31

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APPENDIX 1
7 of 15
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%
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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: 80E86211-C5BB-484A-9808-1B09F0F2EB31

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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: 80E86211-C5BB-484A-9808-1B09F0F2EB31

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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%
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APPENDIX 1
11 of 15
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%
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APPENDIX 1
12 of 15
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%
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APPENDIX 1
13 of 15
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%
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APPENDIX 1
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City 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%
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APPENDIX 1
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Participating
Subdivision
Classification
Participating Subdivision County Abatement
Percentage
Plaintiff
Subdivision
Percentage
Weighted
Allcation
Percentage
City 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: 80E86211-C5BB-484A-9808-1B09F0F2EB31

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1 Frequently Asked Questions about the 2022 National Opioid Settlements with Teva, Allergan, Walmart, Walgreens, and CVS [Subject to ongoing corrections and updates]
[Executed Agreements Control]

1. Which Defendants Have Executed National Opioid Settlements?

Since the Summer of 2021, nine Defendant families have executed National Opioid Settlements. First, in July 2021, J&J and Distributors McKesson, Cardinal Health, and AmerisourceBergen entered into National Opioids Settlements (“2021 National Settlement(s)”; details regarding the 2021 National Settlements, including a separate set of FAQs, can be found here:
https://nationalopioidsettlement.com/distributor-janssen-faq/). More recently, between November and December of 2022, five additional Defendant families have entered into National Opioids Settlements (“2022 National Settlement(s)”).1 They are:

Settling Defendant Date of Settlement
Agreement
Link to Settlement Agreement
Teva November 22, 2022 https://nationalopioidsettlement.com/wp-content/uploads/2022/12/Final-Teva- Global-Settlement-Agreement-and-Exhibits_12-20-22.pdf
Allergan November 22, 2022 https://nationalopioidsettlement.com/wp-content/uploads/2022/12/Final- Allergan-Global-Agreement-and-Exhibits_12-20-22.pdf
Walmart November 14, 2022 https://nationalopioidsettlement.com/wp-content/uploads/2022/12/Walmart- Settlement-Agreement-2022.12.02_FINAL.pdf
Walgreens December 9, 2022 https://nationalopioidsettlement.com/wp-content/uploads/2022/12/Walgreens- Multistate-Agreement-and-Exhibits.pdf
CVS December 9, 2022 https://nationalopioidsettlement.com/wp-content/uploads/2022/12/2022-12-09- CVS-Global-Settlement-Agreement-with-Exhibits.pdf

2. Which Entities Are Eligible to Participate in the 2022 National Settlements? The 2022 National Settlements are “opt in” settlements that are open only to states, as well as state subdivisions (e.g., municipalities, counties, parishes, cities, towns, incorporated townships, villages, and boroughs) and certain special districts (e.g., school districts, fire

1 The 2022 National Settlements define the specific entities entering into the respective agreements, as well as the “Released Entities.”

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2 districts, and hospital districts). Claims brought on behalf of private individuals and businesses (including private hospitals and private third-party payors) are not included and will not be released. Claims brought on behalf of Tribal Nations are also not included and will not be released through participation in these agreements, but Tribal Nations may be eligible to participate in separate settlements with these same defendants; more information on those separate agreements may be found here: https://www.tribalopioidsettlements.com/.

Each 2022 National Settlement has the same basic “two-phase” structure:

Phase I – Eligible States: With respect to each 2022 National Settlement, most states are eligible to participate. (For these purposes, Washington, D.C. and the five U.S. Territories2 are treated as “states.”) Certain states are not eligible to participate in certain of these settlements (e.g., due to prior settlements or litigation with a settling Defendant). Among the states eligible to participate in certain 2022 National Settlements, a small number have chosen not to participate in one or more of those settlements. Accordingly, for each of the 2022 National Settlements, the only states that may participate are those that are eligible and elected to do so. The following list sets forth, for each 2022 National Settlement, the eligible and ineligible states, as well as those eligible states that have chosen not to participate.

• Teva Settlement:
o All states are eligible, except Florida, Louisiana, Oklahoma, Rhode Island, Texas, and West Virginia . Oklahoma subdivisions and special districts, however, are eligible to participate. o Nevada has chosen not to participate.

• Allergan Settlement:
o All states are eligible, except Florida, Louisiana, New York, Rhode Island, and West Virginia. o Nevada has chosen not to participate.

• Walmart Settlement:
o All states are eligible, except Alabama, Florida, New Mexico, and West Virginia.

• Walgreens Settlement:
o All states are eligible, except Florida.
o Michigan, Nevada, New Mexico, and West Virginia have chosen not to participate.

2 American Samoa, Guam, Northern Mariana Islands, Puerto Rico, and the U.S. Virgin Islands.

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3 • CVS Settlement:
o All states are eligible, except Florida, New Mexico, and West Virginia. o Maryland and Nevada have chosen not to participate.

Phase II – Eligible Subdivisions: Within settling states only, both non-litigating and litigating subdivisions may participate, including all municipal, county, city, town, township, parish, village, or borough governments, as well as any other subdivisions that have filed lawsuits that fall within the release provisions of the 2022 National Settlements. “Special Districts” are treated as “Subdivisions” under the Walmart, Walgreens, and CVS Settlements. Under the Teva and Allergan Settlements, certain special districts, such as school districts, fire districts, and hospital districts, are eligible to participate in the 2022 National Settlements, along with subdivisions. For ease of reference, unless otherwise noted, use of the term “Subdivision” in these FAQs incudes eligible “Special Districts.”

Subdivisions within a state can only participate if their state is participating.

In addition, certain subdivisions—even within participating states —may not be eligible to participate in one or more of the 2022 National Settlements despite their state participating, e.g., if they have previously settled and released their claims. Subdivisions should speak to their respective counsel and/or their respective state attorney general for further information on their eligibility.

3. If a State or Subdivision Did Not Participate in the 2021 National Settlements with J&J or the Distributors (McKesson, Cardinal Health, and AmerisourceBergen), Can It Participate in the 2022 National Settlements with Teva, Allergan, Walmart, Walgreens, and CVS?

Yes. Whether an eligible state or subdivision participated in either of the 2021 National Settlements does not impact its eligibility to participate in these more recent 2022 National Settlements with Teva, Allergan, Walmart, Walgreens, and CVS.

4. May a State or Subdivision Participate in Some of the 2022 National Settlements While Choosing Not to Participate in Others?
Yes, except for the Teva and Allergan Settlements, eligible states and subdivisions may choose to participate in one or more of the 2022 National Settlements, while choosing not to participate in others. However, if your state has participated in both the Teva and Allergan Settlements, your subdivision must participate in both or neither of these settlements; it cannot choose to participate in just Teva or just Allergan. If your state only participated in Teva, you can choose to participate only in Teva (and the Allergan Settlement is not available to you). And vice versa. A chart reflecting each state’s participation status with respect to each of the 2022 National Settlements is available here: https://nationalopioidsettlement.com/state-participation-status/.

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4 5. How Many States Are Participating? Has “Critical Mass” Been Reached at the State Level?

The 2022 National Settlements are designed to incentivize higher participation rates. Each settlement provides two or more “critical mass” phases for each settling Defendant and/or the states to determine whether there is sufficient participation to make it worth proceeding with the settlement or, in in the case of the Walmart Settlement, to meet minimum, objective participation thresholds.

Phase I has been met for each of the 2022 National Settlements, meaning that there was sufficient state-level participation to proceed to Phase II of the settlements regarding subdivisions. Teva, Allergan, and Walgreens each determined there was sufficient state participation to proceed to the second phase of those agreements. For the CVS Settlement, settling states on the “Enforcement Committee,” as well as CVS, determined there was sufficient state participation to proceed to the second of the settlement. For the Walmart Settlement, the “State Participation Threshold” was achieved (i.e., at least 45 of the 50 “Threshold States” joined the settlement), so that settlement will also proceed to its second phase.

A chart reflecting each state’s participation status with respect to each of the 2022 National Settlements is available here:
https://nationalopioidsettlement.com/state-participation-status/.

6. What Steps Are Needed for a Subdivision to Opt In?

To participate, a subdivision must execute and submit a participation form for each settlement it wants to participate in. Participation forms must be executed and submitted on or before April 18, 2023, for subdivisions to be considered an “Initial Partic ipating Subdivision” in a settlement. The participation forms will include a release (discussed below) and advance authorization for entry of a Master Dismissal of the released claims (if the settlement moves forward).

By executing and returning a participation form for a settlement: (1) the subdivision agrees to the terms of the applicable settlement agreement pertaining to subdivisions; (2) the subdivision releases all claims within the scope of such settlement; (3) the subdivision agrees to use monies it receives as required under such settlement; (4) the subdivision submits to the jurisdiction of the court where their state’s consent judgment is filed for purposes limited to that court’s role under such settlement; and (5) with respect to subdivisions who have filed lawsuits against any settling Defendant, the subdivision commits to promptly dismissing its legal action against that settling Defendant. By signing a participation form, the subdivision is authorizing the Plaintiffs’ Executive Committee (PEC) to file a dismissal on its behalf for any claims pending in the MDL. (For claims pending outside the MDL, the subdivision is obligated to dismiss those claims itself.) A link to an example of such dismissal may be found here:
https://nationalopioidsettlement.com/wp-content/uploads/2023/01/form-of-Master-Stipulation-of-Dismissal.pdf.

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5 After April 18, 2023, the extent of subdivision participation will be used to determine whether participation for each deal is sufficient for the settlement to move forward and whether a state earns its maximum potential payment under the settlement. See FAQ #8 below.

If the settlement moves forward, the release in the subdivision’s participation form will become effective. If a settlement does not move forward, that release will not become effective.

There are three methods for returning the executed participation forms and any supporting docume ntation to the Implementation Administrator:

1. Electronic Signature via DocuSign: Executing the participation forms electronically through DocuSign will return the signed forms to the Implementation Administrator and associate a subdivision’s forms with tha t subdivision’s records. Electronic signature is the most efficient method for returning participation forms, 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 manually signed participation forms via DocuSign will associate a subdivision’s signed forms with that subdivision’s records.

3. Manual Signature returned via electronic mail: If a subdivision is unable to return executed participation forms using DocuSign, signed participation forms 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 following subject line:

Settlement Participation Forms – [Subdivision Name, Subdivision State] – [Reference ID]

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

7. What Are the Deadlines to Opt In to One or More of the 2022 National Settlements?

As discussed above in FAQ #5, the state participation phase of the settlements has resulted in sufficient state participation to move forward with subdivision participation phase. The applicable time periods and deadlines are set forth below in Chart A. These deadlines reflect agreed extensions beyond the dates provided for under the settlement agreements.

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6 For each of the 2022 National Settlements, subdivisions will have until April 18, 2023, to execute and submit their participation forms and be considered an “Initial Participating Subdivision” in a settlement.

For the Teva, Allergan, Walgreens, and CVS Settlements, these settling Defendants will then have until May 18, 2023, to determine whether to proceed further with their respective settlements.3 The Walgreens and CVS Settlements include an intervening deadline (May 2, 2023) by which states are to determine whether there has been sufficient subdivision-level participation to proceed with those settlements.

Chart A

Settling
Defendant
Initial deadline for
subdivisions to participate
in settlement
Deadline for states to
determine whether to
proceed
Deadline for settling Defendants
to determine whether to proceed
(Reference Date4)
Walmart April 18, 2023

Teva April 18, 2023

May 18, 2023
Allergan April 18, 2023

May 18, 2023
Walgreens April 18, 2023 May 2, 2023 May 18, 2023
CVS April 18, 2023 May 2, 2023 May 18, 2023

3 Under the Walmart Settlement, each of the settling states will use reasonable efforts to ensure that, by April 18, 2023, the settling states have met the following “Subdivision Participation Thresholds” for the Walmart Settlement to become effective: (1) more than 85% of the aggregate population of all litigating subdivisions located in the settling states and separately settling states, and (2) more than 85% of the aggregate population of all non-litigating threshold subdivisions located in the settling states and separately settling states, (a) have become participating subdivisions, (b) are subject to a bar or case-specific resolution, or (c) have joined a settlement between Walmart and a separately settling state by executing a participation form, including a release.
4 In the Teva, Allergan, Walgreens, and CVS Settlements, the “Reference Date” refers to the date by which each respective settling Defendant is to determine whether there has been enough subdivision-level participation to proceed beyond the second phase of its settlement. (In the Walmart Settlement, the “Subdivision Participation Thresholds” are based on objective criteria, and there is thus no such “Reference Date.”)

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7 8. What Level of Subdivision Participation Is Necessary for the 2022 National Settlements to Become Effective?

Under the Teva, Allergan, Walgreens, and CVS Settlements, there is no set threshold of subdivision-level participation required for those settlements to become effective. As to the Teva and Allergan Settlements, once the deadline for subdivisions to participate has passed, these settling Defendants will determine whether there has been sufficient subdivision-level participation for these settlements to become effective. The Walgreens and CVS Settlements operate similarly to the Teva and Allergan Settlements, except that under those settlements, the settling states (Walgreens) or the “Enforcement Committee” representing the settling states (CVS) will first have the opportunity to determine whether there has been sufficient subdivision participation to proceed with these settlements. If so, then Walgreens and CVS are to determine whether they agree that sufficient subdivisions have participated in the settlements. The decisions of the Teva, Allergan, CVS, and Walgreens as to whether there has been adequate subdivision-level participation is in their sole discretion and must be made in good faith.

The Walmart Settlement is different in that the level of subdivision participation required for the settlement to become effective is based on objective criteria: (1) more than 85% of the aggregate population of all litigating subdivisions located in settling states, as well as states that have separately settled with Walmart, must agree to participate or otherwise have their claims fully released, and (2) more than 85% of the aggregate population of all non-litigating threshold subdivisions (defined to include subdivisions with populations greater than 30,000 or those with populations between 10,000 and 30,000 that have brought opioids-related claims against McKesson, Cardinal Health, AmerisourceBergen, or J&J) must agree to participate or otherwise have their claims fully released. The calculation of the aggregate populations of litigating subdivisions and non-litigating threshold subdivisions is on an aggregated basis and not a state-by-state basis. If these thresholds are met, then the Walmart Settlement will become effective.

9. Can Eligible States Opt In After the Deadlines for Doing So?

Except for the Walmart Settlement, eligible states may, under certain circumstances, join the 2022 National Settlements after the deadlines to do so. However, later joinder by eligible states requires the consent of the respective settling Defendant (and, if applicable, the State Enforcement Committee for such settlement). If an eligible state later joins a 2022 National Settlement, subdivisions within that state may also sign on and participate in such settlement but may receive lower total payments. Note that, with respect to the CVS and Walgreens Settlements, no eligible state may become a settling state after May 31, 2023, and June 30, 2023, respectively.

10. What Funds Will Be Available for Abatement?
The amounts to be paid under each 2022 National Settlement depend on the level of participation by eligible states and subdivisions.

Each of the settlements requires the settling Defendant to make annual payments over a period of years consisting of base and

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8 incentive payments. Assuming maximum participation by eligible states and subdivisions, Chart B below reflects the highest amounts to be paid by each settling Defendant, including the base, incentive, and total amounts for abatement.

Chart B

5 Under the Teva Settlement, Teva will offer up to $1.2 billion of Teva’s generic version of the overdose reversal drug Narcan or, alternatively, provide cash at 20% of the $1.2 billion wholesale acquisition cost “in lieu of product.” Settling
Defendant
Abatement –
Base
Abatement -
Incentive
Abatement –
Total
Other Total
Teva $1,325,488,100

(45% of the Net
Abatement Amount of
$2,945,529,111)

$1,620,041,011

(55% of the Net
Abatement Amount
of $2,945,529,111)
$2,945,529,111 • Maximum cash conversion of
Settlement Product if Settling
State elects to convert all or a
portion of its Settlement
Product allocation into a cash
payment ($240,000,000)5
• Additional Restitution Amount
($28,669,762)
• Global Settlement Attorney Fee
Amount of ($366,335,847.76)
$3,580,534,720.76
Allergan $809,634,037.95

(45% of the Net
Abatement Amount of
$1,799,186,751)

$989,552,713.05

(55% of the Net
Abatement Amount
of $1,799,186,751)
$1,799,186,751 • Additional Restitution Amount
($16,192,680.76)
• Global Settlement Attorney Fee
Amount ($206,906,476.36)

$2,022,285,908.12

Walmart $909,641,765.08

(38% of Global Settlement
Remediation Amount of
$2,393,794,118.64).
$1,484,152,353.56

(62% of Global
Settlement
Remediation Amount
of
$2,393,794,118.64).
$2,393,794,118.64 • Subdivision Attorneys’ Fees,
Expenses and Costs
($297,720,376.93)
• State Outside Counsel Fee
Fund ($16,006,471.88)
• State Cost Fund
($16,006,471.88)
$2,739,533,911.20

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9 11. How Much Will a Settling State Receive in Base Payments Under the 2022 National Settlements?

As illustrated in Chart B above, approximately $6.63 billion in base payments would be available to settling states. These base payments do not require a settling state to meet any specific participation benchmarks or conditions. Base payments will be paid out annually for distribution to each settling state according to its share of the abatement funds using the top-level state allocation model discussed below. Each state’s base payment is then allocated into the three sub-funds or according to a state-subdivision agreement, qualifying statute, or statutory trust, as explained below.

12. How Much Can a State Receive in Incentive Payments?

Under the 2022 National Settlements, approximately $9.57 billion in abatement funds would be earmarked for “Incentive Payments” Although the criteria for Incentive Payments under each of the 2022 National Settlements are similar, there are differences in how they operate and when they accrue, as explained in FAQ #13 below.

• Additional Remediation
($16,006,471.88)
Walgreens $1,963,147,836

(41% of the Adjusted
State Remediation
Payment of
$4,788,165,456)
$2,825,017,620

(59% of the Adjusted
State Remediation
Payment of
$4,788,165,456)
$4,788,165,456 • Private Attorneys Fees
($638,600,000)
• State AG Fees and Costs
($63,842,206)
• Additional Remediation
Amount ($31,921,103)
$5,522,528,766
CVS $1,626,081,118

(38% of Maximum
Remediation Payment of
$4,279,160,837)
$2,653,079,719

(62% of Maximum
Remediation
Payment of
$4,279,160,837)
$4,279,160,837 • Common Benefit and
Subdivision Attorneys’ Fees,
Expenses and Costs
($539,457,124)
• State Outside Counsel Fee
Fund ($28,527,739) State Cost
Fund ($28,527,739) and
Additional Remediation
Amount ($28,527,739)
$4,904,201,178

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10 13. How Do Incentive Payments Work?6
In each of the 2022 National Settlements, incentive payments are designed to reward states for increasing participation in the settlements by their subdivisions and/or taking steps to bar or otherwise resolve current and future subdivision litigation, but there are differences in how these incentive payments operate and when they accrue.

Eligibility for incentive payments is state-specific, meaning that eligibility for incentive payments, as well as the amount of such payments, depends on whether, and the extent to which, the applicable incentive criteria set forth in each of the 2022 National Settlements are met in each such settling state, irrespective of any other settling states.

• Teva/Allergan

The Teva and Allergan Settlements divide incentive payments into four categories: Incentives A, B, C, and D. Under the Teva Settlement, Incentives A-C would be due in installments over 12 years beginning with Payment Year 2, and Incentive D would be due in installments over 10 years beginning with Payment Year 4. Under the Allergan Settlement, Incentives A-C would be due in installments over 6 years beginning with Annual Payment 2, and Incentive D would be due in installments over 4 years beginning with Annual Payment 4. Under these settlements, if a settling state qualifies for Incentive A, it would receive the maximum payment allocable to the State for Incentives A-C. If a settling state does not qualify for Incentive A, it can alternatively qualify for Incentive B and/or Incentive C. A settling state can qualify for Incentive D regardless of whether it qualifies for another incentive payment.

Incentives A-D are generally as follows:

Incentive A: Full participation, or fully released claims, of (1) litigating subdivisions/special districts and (2) non-litigating subdivisions with populations greater than 10,000/non-litigating covered special districts.

Incentive B: Early participation, or released claims, by litigating subdivisions/special districts representing at least 75% of the settling state’s litigating population.

Incentive C: Participation, or release of claims, by litigating or non-litigating primary subdivisions (defined as subdivisions with populations of 30,000 or more) representing more than 60% of the settling state’s primary subdivision population (Part 1) and 100% of its 10 largest subdivisions by population (Part 2).

6 Note that these FAQs include certain terms that are specifically defined in the 2022 National Settlements. The definitions contained in the 2022 National Settlements are determinative.

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11 Incentive D: No opioids-related lawsuits filed by subdivisions within the settling state against settling Defendants as of two look-back dates 2 years and 5.5 years after the “Preliminary Agreement Date.”

• CVS

Under the CVS Settlement, Incentives A-D are generally like the Teva and Allergan Settlements. But there are certain differences.

First, unlike the Teva and Allergan Settlements, Incentive A is mutually exclusive with Incentives B, C, and D, meaning that a settling state may either qualify for Incentive A, or Incentives B, C, and/or D. A settling state will be eligible for its full allocable share of the maximum amount available for incentive payments by either: (1) achieving Incentive A within 2 years of the Effective Date or (2) by fully earning Incentive B in each Payment Year it is available and earning Incentives C and D in a manner that produces that maximum possible combined amount from those two incentives.

Second, Incentive B requires early participation, or released claims, by litigating subdivisions representing at least 85% of the settling state’s litigating population.

Third, Incentive C requires participation, or release of claims, by at least 85% of the settling state’s litigating subdivisions and non- litigating threshold subdivisions (defined to include subdivisions with populations greater than 30,000 or subdivisions with populations between 10,000 and 30,000 that have brought an opioids-related claim against McKesson, Cardinal Health, AmerisourceBergen, or J&J).

Finally, there are five look-back dates for Incentive D: April 30 of Payment Years 6-10.

• Walgreens

Under the Walgreens Settlement, incentive payments are divided among three categories: Incentives A, BC, and D. Incentive A is mutually exclusive with Incentives BC and D; if a settling state receives Incentive A, such settling state is not eligible for Incentives BC or D.

Incentive A requires full participation from all litigating subdivisions, primary subdivisions (defined to include subdivisions with populations over 10,000), and certain special districts. Incentive BC is determined based on the percentage of the aggregate population of all the settling state’s litigating subdivisions and non-litigating threshold subdivisions (defined to include subdivisions with

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12 populations greater than 30,000 or those with populations between 10,000 and 30,000 that have brought opioids-related claims against McKesson, Cardinal Health, AmerisourceBergen, or J&J) that have participated in the settlement or otherwise fully released their claims. A sliding percentage scale will determine the Incentive BC Payments under these settlement agreements.

Under the Walgreens Settlement, a settling state may earn Incentives A and BC in annual payments 2 through 15.

Finally, Incentive D (payments which are based on Incentive BC participation percentage) can be earned if there are no qualifying lawsuits surviving a threshold motion as of certain look-back dates prior to Incentive D payments being made. Any Incentive D payments would be made under the Walgreens Settlement during Payment Years 6-15.

• Walmart

Incentive payments under the Walmart Settlement operate similarly to incentive payments under the Walgreens Settlement. However, under the Walmart Settlement, Incentive Payments A and BC would be paid in (at most) three payments in Payment Years 1 through

3. Any Incentive D payments would be made during Payment Years 3-6.

14. If States or Subdivisions Elect to Participate in the 2022 National Settlements, When Will They Receive Abatement Fund Payments?
Participating states and subdivisions would receive abatement proceeds through annual payments continuing over a period of years.

Chart C below sets forth, for each 2022 National Settlement, the date through which annual abatement payments would be made by the respective settling Defendant.

Chart C
Settling Agreement Annual Abatement Payments Made Until Teva Settlement July 15, 2035
Allergan Settlement July 15, 2029
Walmart Settlement ~July 15, 2028
Walgreens Settlement December 31, 2036
CVS Settlement June 30, 2032

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13 15. How Will Settlement Proceeds Be Used?
Each of the 2022 National Settlements requires that at least 85% to 95.5% of abatement funds be used to fund opioid-remediation efforts, with at least 70% of abatement funds required to be used in connection with future opioid-remediation efforts. Chart D below sets forth, for each settlement, the minimum percentage of settlement payments disbursed to states and participating subdivisions that must be spent on “Opioid Remediation” and “future Opioid Remediation,” respectively. The 2022 National Settlements effectively define “Opioid Remediation” as including care, treatment, and other programs and expenditures (including reimbursement for past such programs or expenditures, except where the agreement restricts the use of funds solely to future Opioid Remediation) designed to (1) address the misuse and abuse of opioid products, (2) treat or mitigate opioid use or related disorders, or (3) mitigate other alleged effects of, including on those injured as a result of, the opioid epidemic. The 2022 National Settlements include broad and non-exhaustive lists of qualifying opioid-remediation expenditures.7

Chart D

Settling Defendant Minimum Amount of Settlement Proceeds To Be Spent on Opioid Remediation
Minimum Amount of Settlement Proceeds
To Be Spent on Future Opioid Remediation
Teva 85% 70%
Allergan 85% 70%
Walmart 85% 70%
Walgreens 95% 70%
CVS 95.5%; provided, however, that the remaining 4.5%
only may be spent outside of Opioid Remediation to
the extent necessary to satisfy certain attorney fee
agreements entered into by settling states.
70%

16. How Will the State-Level Allocations Be Made?

Under the 2022 National Settlements, each of the settling Defendants would make annual payments consisting of base and incentive payments (described above). Calculation of the amounts distributed to each settling state (including the state and its settling subdivisions) starts with a top-level allocation among all states of the maximum potential payment. How much of that maximum

7 If settlement proceeds are used for something other than “Opioid Remediation,” then the amounts and uses (including any use t o pay attorneys’ fees and costs) must be publicly reported.

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14 amount each state will receive in any given year is then based on (1) which incentive payment categories that state qualifies for that year; and (2) whether amounts otherwise payable are offset or otherwise adjusted (see FAQ #18 below regarding offsets). Once the annual payment for a state is calculated, the further allocation of that state’s payment proceed as outlined below among that state’s (1) “State Fund”; (2) “Abatement Accounts Fund”/“Remediation Accounts Fund”; and (3) “Subdivision Fund.”

For purposes of the top-level maximum potential allocation discussed above, an “Overall Allocation Percentage” or “State Allocation Percentage” has been calculated for each 2022 National Settlement based on the states eligible to participate in such settlements.

Within each eligible state, there is a “Subdivision Allocation Percentage” or “Subdivision and Special District Allocation Percentage,” set forth in Exhibit G to the respective 2022 National Settlements, which reflects the portion of a settling state’s Subdivision Fund that a subdivision would receive if it becomes a participating subdivision (in the absence of a state-subdivision agreement, qualifying statute, or statutory trust; see FAQ #17 below). The aggregate “Subdivision Allocation Percentage” or “Subdivision and Special District Allocation Percentage” for each state equals 100%.

These sub-percentages for each state are based on population, adjusted for the proportionate share of the impact of the opioid epidemic using reliable, detailed, and objective national data, including: (1) the amount of opioids shipped to the state; (2) the number of opioid- related deaths that occurred in the state; and (3) the number of people who suffer opioid use disorder in the state. Adjustments were made to reflect the severity of impact insofar as the oversupply of opioids had more deleterious effects in some locales than in others.

Ultimately, the model allocates settlement funds in proportion to where the opioid crisis has caused harm.

17. How Will Settlement Funds Be Allocated Within a State?

Settlement proceeds will be allocated in accordance with the terms of any qualifying agreement between a state and its subdivisions, a qualifying statute, or a statutory trust. Otherwise, settlement proceeds will be allocated in accordance with default allocation terms set out in the respective 2022 National Settlements. Under these default terms, settlement proceeds will be allocated among three sub- funds for each settling state: (1) a State Fund; (2) an Abatement Accounts Fund or Remediation Accounts Fund; and (3) a Subdivision Fund.8 There are several important points to observe with respect to three sub-funds:

8 Non-litigating municipalities with a population under 10,000 and special districts will not receive direct allocations from the Subdivision Fund, unless an intrastate agreement provides otherwise. Moreover, a subdivision will not necessarily directly receive settlement funds by participating because decisions on how settlement funds will be allocated within a state may be subject to intrastate agreements or state statutes.

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15 • The settlement agreements provide default allocations among the sub-funds (15% to the State Fund, 70% to the Abatement Accounts Fund/Remediation Accounts Fund, and 15% to the Subdivision Fund9). As noted above, these defaults can be changed on a state-by-state basis through a qualifying state-subdivision agreement, qualifying statute, or statutory trust.10 • Under the default set forth in the 2022 National Settlements, at least 50% of the annual spend from the Abatement Accounts Fund/Remediation Accounts Fund must be allocated at a regional level for settling states above a certain population. Each settling state will have an advisory committee—with equal representation from the st ate and local levels—to recommend how to spend the Abatement Accounts Fund/Remediation Accounts Fund.11 • Certain large participating subdivisions also will be eligible to receive block grants from the Abatement Accounts Fund/Remediation Accounts Fund.
• A settling state also is free to direct all or a portion of its State Fund to its Abatement Accounts Fund/Remediation Accounts Fund. A participating subdivision listed in Exhibit G to the respective 2022 National Settlements also may choose to direct all or a portion of its allocation from the Subdivision Fund to the state’s Abatement Accounts Fund/Remediation Accounts Fund or to another participating subdivision.

18. Can a Defendant Take an Offset Against a Settlement Payment?

In each of the 2022 National Settlements, the settling Defendant is entitled to an offset for abatement/remediation payments that had been allocated to states that did not choose to participate in that settlement. In addition, Teva, Allergan, Walgreens, and CVS are entitled to dollar-for-dollar offsets for certain class resolution opt-outs, as well as payments made as a result of litigation bars, settlement class resolutions, or case-specific resolutions that are subsequently revoked, rescinded, or otherwise materially limited.

Walgreens and CVS are also entitled to a dollar-for-dollar offset for certain taxes, assessments, or any other fees imposed by a settling state on Walgreens or CVS on the sale, transfer, or distribution of opioid products.

9 As a default, amounts apportioned to a state’s Subdivision Fund would be distributed to participating subdivisions in that state listed on Exhibit G to the respective 2022 National Settlement, per the Subdivision Allocation Percentage listed in Exhibit G. 10 Allocation agreements/statutes have already been reached or enacted in several states. 11 Spending from the Abatement Allocation Account Fund will be tracked and reported annually.

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16 19. Will the Settlements Require Any Change to How the Defendants Operate Their Businesses?

In addition to billions of dollars to be used for abatement of the effects of the opioid epidemic in communities across the nation, the proposed settlements provide for robust and meaningful injunctive relief that will require the settling Defendants to make significant changes to their business operations to address the opioid epidemic.

Teva and Allergan have agreed to strict limitations on their marketing, promotion, sale, and distribution of opioids, including a ban on:
(1) promotion and lobbying; (2) rewarding or disciplining employees based on volume of opioid sales; and (3) funding or grants to third parties; and Teva and Allergan are also required to publicly disclose documents, including internal documents, related to their role in the opioid crisis. Allergan is also required to stop manufacturing and selling opioids for ten years, and Teva is required to create and maintain systems to prevent drug misuse, including suspicious order monitoring.

Walmart, CVS, and Walgreens are required to implement changes in how they handle opioids, including requirements that they: (1) maintain independent departments to oversee compliance with controlled-substance laws and the injunctive terms in the settlements; (2) ensure pharmacists exercise independent judgment in the dispensing of controlled substances; (3) create and maintain robust oversight programs, including site visits and audits, to prevent diversion; (4) monitor, report, and share data about suspicious activity related to opioid prescriptions; and (5) provide data to the states about their red-flag processes, as well as blocked and potentially problematic prescribers.

20. How Will Attorneys’ Fees and Costs Be Addressed?

The overarching goal of these global settlements is to dedicate funds to abate opioid-related harms. If private lawyers who represent some of the states and thousands of subdivisions were to enforce their contingency fee contracts, then a significant portion of the global settlement payments would potentially go towards legal fees to compensate efforts to prosecute the lawsuits that are being resolved as to the settling Defendants. As a result, government entities that hired outside counsel to litigate against the settling Defendants would recover proportionately less than entities that did not litigate. To protect against this imbalance, and maximize the amounts available for abatement, the negotiating State Attorneys General, the Plaintiffs’ Executive Committee (PEC) Negotiation Team, and the settling Defendants agreed that the settling Defendants will pay, and the parties will set aside, separate funds to compensate attorneys’ fees and costs. These funds total approximately $2.2 billion in connection with the Teva, Allergan, Walmart, Walgreens, and CVS Settlements. See the “Other” column within Chart B in FAQ #10 above for deal-specific amounts. These attorneys’ fees include amounts for outside counsel representing participating states and participating subdivisions and are intended to cover both contingency and common benefit work.

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17 21. How will more information on the settlements be made available?

Settlement documents, information, and updates will be posted on a public settlement website: https://nationalopioidsettlement.com/

The website will provide current information on an ongoing basis as the settlement implementation progresses. Some states have also set up their own websites to provide state-specific information.

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TO: THE HONORABLE MAYOR AND CITY COUNCIL
AGENDA: City Council Regular Meeting
DATE: April 4, 2023
ITEM #: G.7
SUBJECT: Fiscal Year 2023/24 Spring Budget Workshop

Recommendation for Action: Staff recommends that the City Council conduct a workshop to receive an update from staff on the development of the City's Fiscal Year 2023/24 Budget.

Staff Contact:

Evis Morales, Finance Officer, (530) 661-5923, [email protected]

Discussion:

This initial budget meeting is intended to provide the City Council with a review of the baseline budget for fiscal year (FY) 2023/24, as well as an update to the General Fund five-year forecast.

The primary focus of the workshop will be a discussion of the General Fund revenue and expenditure trends, as well as the assumptions used to inform development of the FY2023/24 budget and the remainder of the five-year forecast. Staff will present updated financial forecasts; review the current budget framework; seek Council input on recommendations to maintain a balanced budget, manage prudent reserve levels, and advance the City Council's goal of long-term fiscal stability.

The budget development process, which typically begins in December each year, includes trends and assumptions showing the short-term budget outlook has improved over the previous forecast, while the long-term budget outlook continues to reflect growing deficits, as the City's expenditures outpace its revenue growth.

The General Fund FY2023/24 budget and five-year forecast show annual operating deficits ranging from $1.76 million in FY2023/24 to $3.4 million in FY2027/28. The City has prudently built and maintained a healthy reserve balance, which is intended to help with times of economic uncertainty by guarding against unexpected revenue fluctuation, and allowing some flexibility in implementation of balancing measures. Healthy reserve balances in previous budget years have allowed for funding of priority projects or initiatives with one-time money. Although many needs remain unfunded, staff anticipates limited flexibility to support one-time and ongoing funding requests. Council feedback will be requested regarding assumptions used to develop the forecast and allocation of one-time resources to be considered in the development of the City Manager's FY2023/24 Proposed Budget.

Staff expects to return to the Council in May to discuss the spending plans for Measures F, Measure R, and the American Rescue Plan (ARP). A proposed budget will be presented on June 5, 2023, with formal adoption of the FY2023/24 Annual Budget expected on June 19, 2023.

Conclusion:

Staff recommends that the City Council conduct a workshop to receive an update from staff on the development of the City's Fiscal Year 2023/24 Budget.

Prepared by: Evis Morales, Finance Officer

Reviewed by: Kim McKinney, Director of Administrative Services

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Attachments:

1. Spring Budget Workshop Outline

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Spring Budget Workshop
April 4, 2023

OUTLINE
PART I - FY2023/24 Baseline Budget Model
✓Revenue Assumptions
✓Expenditure Assumptions
Personnel Costs
Non-personnel Costs
✓Other Funds
✓Baseline Five-Year Forecast / Sensitivity
PART II - Financial Planning For Fiscal Stability
✓Budget Framework
✓Priority Needs
Progress-to-Date
Unfunded Needs / Budget Requests
✓Voter-Approved Sales Tax Measures
Council Feedback
Next Steps

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Woodland City CouncilApril 4, 2023

Woodland City Council
April 4, 2023