2022-09-13 City Council - Full Agenda-32611.
Op E D
o Agenda
Edmonds City Council
BLIC SAFETY -PLANNING -HUMAN SERVICES -PERSONNEL
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SEPTEMBER 13, 2022, 4:30 PM
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COMMITTEE MEMBERS: LAURA JOHNSON (CHAIR), SUSAN PAINE, COUNCIL PRESIDENT (EX-
OFFICIO MEMBER)
CALL TO ORDER
COMMITTEE BUSINESS
1. Changes to Finance Manager Job Description (5 min)
2. Vacation Accrual for Returning Employee (10 min)
3. Opioid Settlement Allocation Agreement (10 min)
ADJOURN
Edmonds City Council Agenda
September 13, 2022
Page 1
2.1
City Council Agenda Item
Meeting Date: 09/13/2022
Changes to Finance Manager Job Description
Staff Lead: Dave Turley
Department: Administrative Services
Preparer: Dave Turley
Background/History
This is to make small changes to the Finance Manager job description, mainly to change the reporting
responsibility from Public Works to Administrative Services.
Staff Recommendation
Approve changes and move to September 20 Consent Agenda.
Narrative
N/A
Attachments:
Public Works and Utilities Financial Manager rev 2022-08
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2.1.a
City of
EDMONDS
Washington
of ED4f
s�
Financial Manager for Public Works & Utilities
Department: PubliG Works Administrative
Services
Bargaining Unit: AFSCME Council 2
Revised Date: duly 2O8September 2022
Pay Grade: NE-14
FLSA Status: Non-exempt
Reports To: Public WE)FkS & Utilities Administrative
Services Director
POSITION PURPOSE: Under the supervision of the P �"', Administrative Services Director (Director) the
Financial Manager for Public Works & Utilities performs professional financial management and accounting activities
primarily for the Public Works and Utilities Department (PW&U). Responsibilities include departmental project and
grant accounting; management of utility rate studies, rate calculations, and comparative rate analyses; acting as
financial advisor to the Director and Departmental Managers in the development of the City's Capital Improvement
Program, Transportation Improvement Program, and Comprehensive Plans for Water, Sewer, and Stormwater;
organizes and participates in the preparation of the Department's annual budget and financial reports; develops
the PW&U Department long-range financial planning inputs to the Finance Department; consistently applies
relevant accounting standards and practices as established by the Finance Department and City financial policies,
follows guidelines established by granting and/or contracting agencies; understands and applies the Washington
State Budgeting, Accounting, and Reporting System (BARS); and ensures the accuracy of information provided
by the PW&U Department to the City's Finance Department for subsequent preparation of periodic financial
reports. Provides leadership, procedural support, and guidance to staff assigned to work on capital projects and
grants. Works closely with Finance Department staff and PW&U Managers {64 to help develop annual budget
submittals, estimate revenues, track budget performance, identify deviations from expected performance as early
as possible, and develop budget amendments as necessary. The position will also provide data and evaluation
for updating Public Works capital asset records, including recording and documenting Public Works asset
dispositions and trade-ins. Additionally, this position will be responsible for quality control and documentation for
grant agency invoicing and reimbursements to ensure grant and contract work is reimbursed to the City in a timely
manner.
ESSENTIAL FUNCTIONS AND RESPONSIBILITIES:
The following duties ARE NOT intended to serve as a comprehensive list of all duties performed by all employees
in this classification, but only as a representative summary of the primary duties and responsibilities. Incumbent(s)
assigned to this position are expected to perform the responsibilities of the Accountants and may or may not be
required to perform all duties listed, and may be required to perform additional, position -specific duties.
• Responsible for preparing Public Works Department grant agency invoicing and reimbursements to
ensure that grant and contract work is reimbursed to the City in a timely manner. Provides similar services
for other departmental grants being managed by the Public Works Department.
• Prepares and submits accurate and timely Public Works Department Capital Work In Progress status
reports as required by the Finance Department.
• Following guidance and policies established by the Finance Department, establishes and maintains
project accounting codes and structures to ensure a consistent application of these policies across all
Divisions in the Public Works Department.
Financial Manager for Public Works & Utilities Last Reviewe
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2.1.a
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JOB DESCRIPTION
Financial Manager for Public Works & Utilities
• Responsible for working as the key Public Works Department team member in developing the text and
data necessary to prepare any revenue bond statements for reports on existing debt as well as for new
borrowings.
• Responsible for providing Public Works Department forecasts and summaries to the Finance Department
and the Public Works Director for use in the development of the City's Capital Improvement Program.
• Responsible for providing confidential research reports and analysis as requested for the Public Works
Department labor negotiating representatives.
• Responsible for developing the information required by the Director to respond to budget questions and
accounting inquiries from other department directors, Councilmembers, and citizens.
• Responsible for coordinating Public Works Department submittals to Finance for completion of the fixed
asset reconciliation.
• Responsible for preparing and maintaining a variety of reports, including preparing and presenting staff
reports and other necessary correspondence as requested by the Director
• Responsible for preparing ad hoc reports as requested by Public Works Department Divisions, and/or
outside agencies as requested by the Director, and working on a variety of special projects as assigned
by the Director.
• Responsible for participating in the preparation of the City's annual budget by assisting Finance Division
staff and Public Works Department Division Managers with their budgets; analyzing requested funding
levels; preparing assigned portions of the budget document in coordination with the Director and other
staff.
• Responsible for providing information as requested by the Director in the preparation of the City's Long-
range Financial Plan.
• Provides data and evaluation for updating Public hz ., Wor
ks rl,s capital asset records, provide periodic reports to
the Public Works Director and Finance Department to ensure assets are accurately recorded in the City's
capital asset system; accurately records and documents D hliG Works capital asset dispositions and
trade-ins.
• May be required to serve as staff on a variety of internal committees.
• Attendance at occasional evening meetings may be required to represent the division or department at
City Council meetings.
• Responsible for attending and participating in professional group meetings, and maintaining awareness
of new trends and developments in the fields related to the areas assigned.
• Responsible for incorporating new developments in management and accounting as assigned, and
ensuring processes, policies and practices are interpreted and applied consistently and effectively within
the Public Works department.
• Performs other duties as required.
Required Knowledge of:
• Operational characteristics, services and activities of governmental financial management and
accounting.
• Public sector accounting principles and practices, including generally accepted accounting principles
(GAAP), GASB, BARS, state laws and regulations, city codes and departmental policies.
• Preparation of information for inclusion in overall City financial statements and comprehensive accounting
reports, including producing data to be used by the Finance Department in preparing the CAFR annual
financial report and annual budgets.
• Grant recording and reporting for compliance with BARS.
• Computer hardware and software for automated accounting/financial systems.
• Techniques in data verification and data entry and proper coding of documents.
• Analysis of complex financial statements, reports and systems.
• Performing a variety of professional financial analyses and forecasts.
• Principles of customer service and public relations.
• Research methods and report preparation and presentation.
Financial Manager for Public Works & Utilities Last Reviewe
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2.1.a
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JOB DESCRIPTION
Financial Manager for Public Works & Utilities
• Advanced mathematical computations adequate to correctly perform work.
• Record -keeping and report writing techniques.
• Effective oral and written communication principles and practices, to include public relations.
• Modern office procedures, methods, and equipment, including computers and computer applications such
as: word processing, spreadsheets, and statistical databases.
• English usage, spelling, grammar and punctuation.
• Principles of business letter writing.
• Principles and practices of governmental budget preparation and administration.
Required Skill in:
• Meeting deadlines, working with multiple projects and overseeing, verifying and validating the work of
others, occasionally including those in other departments.
• Operating automated accounting systems and general office equipment.
• Familiarity with and competency in Microsoft Excel, Word, PowerPoint, Outlook. Competency with €derma
City Financial software, asset management, and GIS systems desired but not required_
• Identifying and reporting discrepancies between budgeted and actual financial performance_
• Analyzing and interpreting fiscal and accounting reports_
• Producing rapid and accurate mathematical computations.
• Gathering and verifying data from multiple sources.
• Responding to inquiries from customers, regulatory agencies, audit firms or members of the business
community.
• Interpreting and applying federal, state and local policies, laws and regulations.
• Utilizing personal computer software programs and other relevant software affecting assigned work, and
in compiling and preparing spreadsheets.
• Establishing and maintaining effective working relationships with staff, management, vendors, outside
agencies, community groups and the general public.
• Interpreting and administering policies and procedures sufficient to administer, discuss, resolve and
explain them.
• Maintaining confidentiality and communicating with tact and diplomacy.
• Communicating effectively verbally and in writing, including public relations.
MINIMUM QUALIFICATIONS:
Education and Experience:
Bachelor's Degree in Accounting, Finance, Business Administration or related field and three years of
progressively responsible financial management experience and/or professional accounting that includes
experience developing financial reports and recordkeeping, and budget preparation in a medium to large scale
municipal or private sector organization, two years budgeting and accounting experience related to municipal
utilities; OR an equivalent combination of education, training and experience.
Required Licenses or Certifications:
CPA license desired but not required.
Must be able to successfully complete and pass a background check & credit check.
Financial Manager for Public Works & Utilities Last Reviewe
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JOB DESCRIPTION
Financial Manager for Public Works & Utilities
WORKING CONDITIONS:
Environment:
• Office environment.
• Constant interruptions.
Physical Abilities
• Hearing, speaking or otherwise communicating to exchange information in person or on the phone.
• Operating a computer keyboard or other office equipment.
• Reading and understanding a variety of materials.
• Sitting or otherwise remaining stationary for extended periods of time.
• Bending at the waist, reaching above shoulders and horizontally or otherwise positioning oneself to
accomplish tasks.
• May have to occasionally lift up to 25 pounds.
Hazards:
• Occasional contact with angry and/or dissatisfied customers.
Incumbent Signature:
Department Head:
Date:
Date:
Financial Manager for Public Works & Utilities
Last Reviewe
Last Revise Packet Pg. 6
2.2
City Council Agenda Item
Meeting Date: 09/13/2022
Vacation Accrual for Returning Employee
Staff Lead: Rob English
Department: Engineering
Preparer: Emiko Rodarte
Background/History
Staff Recommendation
Forward item to the consent agenda for approval at the next City Council meeting.
Narrative
Mr. Jerry Shuster was originally hired as the Stormwater Program Manager on July 21, 2008. He worked
in that capacity until he voluntarily resigned, effective January 18, 2016. According to the City Personnel
Policy Section 3.9, "The City may rehire previous employees, provided they performed satisfactorily in
their previous employment with the City." While working here, he always received outstanding
performance reviews. Recent references were checked as well, and they confirm that he continues to
deliver outstanding work and receive outstanding performance reviews. We are fortunate to have an
opportunity to bring him back to Edmonds as the Stormwater Engineer. His rehire date will be October
3, 2022.
Section 2.35.030 of the ECC outlines the rates of vacation accrual for different amounts of "length of
continuous service." In short, as a person works for the city, over the years their rate of vacation accrual
increases. In the past, in the case of a rehire, the City has allowed employees to begin their new
employment period at the same rate of vacation accrual that they had when they left, rather than make
them start over again at a lower accrual rate.
Staff is requesting City Council approval for:
1) Mr. Shuster's vacation accrual be based on his prior years of service and position with Edmonds
(approximately 7.5 years), effective on his hire date of 10/3/2022.
2) Waive the requirement for him to complete his probationary period prior to the accrual and use
of his vacation. This would allow him to begin accruing and using his vacation immediately, which is
consistent with what has been done in similar situations in the past.
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2.3
City Council Agenda Item
Meeting Date: 09/13/2022
Opioid Settlement Allocation Agreement
Staff Lead: Sharon Cates, Lighthouse Law Group
Department: City Attorney's Office
Preparer: Scott Passey
Background/History
In May 2022, the City Council approved the Mayor's signature on the "One Washington Memorandum
of Understanding Between Washington Municipalities" (MOU) to opt the City in to the settlement of
certain opioid lawsuits brought by Washington State against the three major opioid distributors and
other entities involved in the pharmaceutical supply chain that manufacture and dispense prescription
opioids. In June 2022, the City Council approved the Mayor's signature on the Subdivision Settlement
Participation Form, which was provided to the Attorney General's Office as requested as an additional
document required to allow the City to participate in the opioid settlement. The next, and final, step in
this process for which the City Council has already given conceptual approval is to approve the filing
with the State of a signed Allocation Agreement.
Recommendation
Approval of Mayor's signature on and filing of Allocation Agreement on consent agenda.
Narrative
The State has reached an agreement in principle to settle its lawsuit against the three opioid distributors
for $518 Million. The State Attorney General's Office requires that a sufficient number of local
jurisdictions agree to all of the terms of the settlement before it can be finalized. The City has already
provided signatures to the AG's Office for the MOU and the Subdivision Settlement Participation Form.
The attached Allocation Agreement is between the State and local governments and: (a) provides more
details on the distribution of funds obtained from the settling opioid distributors; (b) makes some
amendments to the MOU; and (c) includes some additional requirements on local governments'
participation in the settlement. The Allocation Agreement provides that the funds from the opioid
settlement that must be used for opioid abuse remediation and abatement activities ("Abatement
Amount") will be distributed 50% to the State and 50% to local governments according to the formula in
set forth in the MOU, as amended by the Agreement. The maximum Abatement Amount may be over
$430,000,000. The Allocation Agreement does not govern the attorneys' fees and costs for the
associated litigation, but notes that that is anticipated to be approximately $57,000,000.
The Allocation Agreement sets forth the steps that local governments must take in order to participate
in the opioid settlement:
3. Requirements to become a Participating Local Government. To become a Participating Local
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2.3
Government that can participate in this Allocation Agreement, a Local Government must do all
of the following:
A. The Local Government must execute and return this Allocation Agreement.
B. The Local Government must release their claims against the Settling Distributors and
agree to by bound by the terms of the Distributors Settlement by timely executing and
returning the Participation Form. This form is attached hereto as Exhibit 2.
C. Litigating Subdivisions must dismiss the Settling Distributors with prejudice from their
lawsuits. The Litigating Subdivisions are listed on Exhibit B of the Distributors
Settlement.
D. The Local Government must execute and return the One Washington Memorandum of
Understanding Between Washington Municipalities ("MOU") agreed to by the
Participating Local Governments in Washington State, which is attached hereto as
Exhibit 3. As specified in Paragraph 10.A of this Allocation Agreement, the Local
Government may elect in its discretion to execute the MOU for purposes of this
Allocation Agreement only.
As noted above, the City has already submitted signature pages for the Participation Form and MOU as
required by Sections B and D, above. And the City is not a "litigating subdivision" that would need to
take any action as required by Section C, above. The only remaining step is to provide a signature on the
Allocation Agreement. The City Attorney's Office can answer questions regarding the requirements of
the Allocation Agreement as needed.
Attachments: 9-page Allocation Agreement without Exhibits; link to 108-page Allocation Agreement
with Exhibits, which include the Distributors Washington Settlement Agreement, the Subdivision
Settlement Participation Form, the MOU and other supporting documents:
https://agportaI-s3bucket.s3.amazonaws.com/Allocation%20Agreement O.pdf
Attachments:
Opioid Settlement Allocation Agreement (No Exhibits) 8.8.2022
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2.3.a
ALLOCATION AGREEMENT GOVERNING THE ALLOCATION OF FUNDS PAID
BY THE SETTLING OPIOID DISTRIBUTORS IN WASHINGTON STATE
AUGUST 8, 2022
This Allocation Agreement Governing the Allocation of Funds Paid by the Settling
Opioid Distributors in Washington State (the "Allocation Agreement") governs the distribution
of funds obtained from AmerisourceBergen Corporation, Cardinal Health, Inc., and McKesson
Corporation (the "Settling Distributors") in connection with its resolution of any and all claims
by the State of Washington and the counties, cities, and towns in Washington State ("Local
Governments") against the Settling Distributors (the "Distributors Settlement"). The Distributors
Settlement including any amendments are attached hereto as Exhibit 1.
1. This Allocation Agreement is intended to be a State -Subdivision Agreement as
defined in Section I.VVV of the Global Settlement (the "Global Settlement"),
which is Exhibit H of the Distributors Settlement. This Allocation Agreement
shall be interpreted to be consistent with the requirements of a State -Subdivision
Agreement in the Global Settlement.
2. This Allocation Agreement shall become effective only if all of the following
occur:
A. All Litigating Subdivisions in Washington and 90% of Non -Litigating
Primary Subdivisions in Washington as the terms are used in Section
II.C.1 of the Distributors Settlement must execute and return the
Subdivision Settlement Participation Form, Exhibit F of the Distributors
Settlement (the "Participation Form") by September 23, 2022. This form
is also attached hereto as Exhibit 2.
B. The Consent Judgment and Stipulation of Dismissal with Prejudice,
Exhibit G of the Distributors Settlement, is filed and approved by the
Court.
C. The number of Local Governments that execute and return this Allocation
Agreement satisfies the participation requirements for a State -Subdivision
Agreement as specified in Exhibit O of the Global Settlement.
3. Requirements to become a Participating Local Government. To become a
Participating Local Government that can participate in this Allocation Agreement,
a Local Government must do all of the following:
A. The Local Government must execute and return this Allocation
Agreement.
B. The Local Government must release their claims against the Settling
Distributors and agree to by bound by the terms of the Distributors
Settlement by timely executing and returning the Participation Form. This
form is attached hereto as Exhibit 2.
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2.3.a
C. Litigating Subdivisions must dismiss the Settling Distributors with
prejudice from their lawsuits. The Litigating Subdivisions are listed on
Exhibit B of the Distributors Settlement.
D. The Local Government must execute and return the One Washington
Memorandum of Understanding Between Washington Municipalities
("MOU") agreed to by the Participating Local Governments in
Washington State, which is attached hereto as Exhibit 3. As specified in
Paragraph 10.A of this Allocation Agreement, the Local Government may
elect in its discretion to execute the MOU for purposes of this Allocation
Agreement only.
A Local Government that meets all of the conditions in this paragraph shall be
deemed a "Participating Local Government." Alternatively, if the requirements of
Paragraphs 2(A), 2(B), and 2(C) of this Allocation Agreement are satisfied and
this Allocation Agreement becomes effective, then all Local Governments that
comply with Paragraph 3(B) of this Allocation Agreement shall be deemed a
"Participating Local Government."
4. This Allocation Agreement applies to the Washington Abatement Amount as
defined in Section IV.A of the Distributors Settlement. The maximum possible
Washington Abatement Amount for the Distributors Settlement is
$430,249,769.02. As specified in the Global Settlement, the Washington
Abatement Amount varies dependent on the percentage of Primary Subdivisions
that choose to become Participating Local Governments and whether there are
any Later Litigating Subdivisions as defined in Section I.EE of the Global
Settlement.
5. This Allocation Agreement does not apply to the Washington Fees and Costs as
defined in Section V of the Distributors Settlement. After satisfying its obligations
to its outside counsel for attorneys' fees and costs, the State estimates that it will
receive approximately $46 million for its own attorneys' fees and costs pursuant
to Section V.B.1 of the Distributors Settlement. The State shall utilize any and all
amounts it receives for its own attorneys' fees and costs pursuant to Section V.B.1
of the Distributors Settlement to provide statewide programs and services for
Opioid Remediation as defined in Section I.SS of the Global Settlement.
6. While this Allocation Agreement does not apply to the Washington Fees and
Costs as defined in Section V of the Distributors Settlement, Section V.B.2 of the
Distributors Settlement estimates that the Settling Distributors shall pay
$10,920,914.70 to Participating Litigating Subdivisions' attorneys for fees and
costs. The actual amount may be greater or less. This Allocation Agreement and
the MOU are a State Back -Stop Agreement. The total contingent fees an attorney
receives from the Contingency Fee Fund pursuant to Section II. D in Exhibit R
the Global Settlement, the MOU, and this Allocation Agreement combined cannot
exceed 15% of the portion of the LG Share paid to the Litigating Local
Government that retained that firm (i.e., if City X filed suit with outside counsel
2
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2.3.a
on a contingency fee contract and City X receives $1,000,000 from the
Distributors Settlement, then the maximum that the firm can receive is $150,000
for fees.)
7. No portion of the Washington Fees and Costs as defined in Section V of the
Distributors Settlement and/or the State Share as defined in Paragraph 8.A of this
Allocation Agreement shall be used to fund the Government Fee Fund ("GFF")
referred to in Paragraph 10 of this Allocation Agreement and Section D of the
MOU, or in any other way to fund any Participating Local Government's
attorneys' fees, costs, or common benefit tax other than the aforementioned
payment by the Settling Distributors to Participating Litigating Subdivisions'
attorneys for fees and costs in Section V.13.2 of the Distributors Settlement.
8. The Washington Abatement Amount shall and must be used by the State and
Participating Local Governments for Opioid Remediation as defined in Section
I.SS of the Global Settlement, except as allowed by Section V of the Global
Settlement. Exhibit 4 is a non -exhaustive list of expenditures that qualify as
Opioid Remediation. Further, the Washington Abatement Amount shall and must
be used by the State and Participating Local Governments as provided for in the
Distributors Settlement.
9. The State and the Participating Local Governments agree to divide the
Washington Abatement Amount as follows:
A. Fifty percent (50%) to the State of Washington ("State Share").
B. Fifty percent (50%) to the Participating Local Governments ("LG Share").
10. The LG Share shall be distributed pursuant to the MOU attached hereto as Exhibit
3 as amended and modified in this Allocation Agreement.
11. For purposes of this Allocation Agreement only, the MOU is modified as follows
and any contrary provisions in the MOU are struck:
A. The MOU is amended to add new Section E.6, which provides as follows
A Local Government may elect in its discretion to execute the
MOU for purposes of this Allocation Agreement only. If a Local
Governments executes the MOU for purposes of this Allocation
Agreement only, then the MOU will only bind such Local
Government and be effective with respect to this Allocation
Agreement and the Distributors Settlement, and not any other
Settlement as that term is defined in Section A.14 of the MOU. To
execute the MOU for purposes of this Allocation Agreement only,
the Local Government may either (a) check the applicable box on
its signature page of this Allocation Agreement that is returned or
(b) add language below its signature lines in the MOU that is
returned indicating that the Local Government is executing or has
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2.3.a
executed the MOU only for purposes of the Allocation Agreement
Governing the Allocation of Funds Paid by the Settling Opioid
Distributors in Washington State.
B. Exhibit A of the MOU is replaced by Exhibit E of the Global Settlement,
which is attached as Exhibit 4 to this Agreement.
C. The definition of "Litigating Local Governments" in Section AA of the
MOU shall mean Local Governments that filed suit against one or more of
the Settling Defendants prior to May 3, 2022. The Litigating Local
Governments are listed on Exhibit B of the Distributors Settlement, and
are referred to as Litigating Subdivisions in the Distributors Settlement.
D. The definition of "National Settlement Agreement" in Section A.6 of the
MOU shall mean the Global Settlement.
E. The definition of "Settlement" in Section A.14 of the MOU shall mean the
Distributors Settlement.
F. The MOU is amended to add new Section C.4.g.vii, which provides as
follows:
"If a Participating Local Government receiving a direct payment
(a) uses Opioid Funds other than as provided for in the Distributors
Settlement, (b) does not comply with conditions for receiving
direct payments under the MOU, or (c) does not promptly submit
necessary reporting and compliance information to its Regional
Opioid Abatement Counsel ("Regional OAC") as defined at
Section CA.h of the MOU, then the Regional OAC may suspend
direct payments to the Participating Local Government after
notice, an opportunity to cure, and sufficient due process. If direct
payments to Participating Local Government are suspended, the
payments shall be treated as if the Participating Local Government
is foregoing their allocation of Opioid Funds pursuant to Section
C.4.d and C.4.j.iii of the MOU. In the event of a suspension, the
Regional OAC shall give prompt notice to the suspended
Participating Local Government and the Settlement Fund
Administrator specifying the reasons for the suspension, the
process for reinstatement, the factors that will be considered for
reinstatement, and the due process that will be provided. A
suspended Participating Local Government may apply to the
Regional OAC to be reinstated for direct payments no earlier than
five years after the suspension."
G. Consistent with how attorney fee funds for outside counsel for
Participating Local Subdivisions are being administered in most states
across the country, the Government Fee Fund ("GFF") set forth in the
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2.3.a
MOU shall be overseen by the MDL Fee Panel (David R. Cohen, Randi S.
Ellis and Hon. David R. Herndon (ret.)). The Fee Panel will preside over
allocation and disbursement of attorney's fees in a manner consistent with
the Motion to Appoint the Fee Panel to Allocate and Disburse Attorney's
Fees Provided for in State Back -Stop Agreements and the Order
Appointing the Fee Panel to Allocate and Disburse Attorney's Fees
Provided for in State Back -Stop Agreements, Case No. 1:17-md-02804-
DAP Doc #: 4543 (June 17, 2022).
H. The GFF set forth in the MOU shall be funded by the LG Share of the
Washington Abatement Amount only. To the extent the common benefit
tax is not already payable by the Settling Distributors as contemplated by
Section D.8 of the MOU, the GFF shall be used to pay Litigating Local
Government contingency fee agreements and any common benefit tax
referred to in Section D of the MOU, which shall be paid on a pro rata
basis to eligible law firms as determined by the Fee Panel.
To fund the GFF, fifteen percent (15%) of the LG Share shall be deposited
in the GFF from each LG Share settlement payment until the Litigating
Subdivisions contingency fee agreements and common benefit tax (if any)
referred to in Section D of the MOU are satisfied. Under no circumstances
will any Non -Litigating Primary Subdivision -or Litigating Local
Government be required to contribute to the GFF more than 15% of the
portion of the LG Share allocated to such Non -Litigating Primary
Subdivision or Litigating Local Government. In addition, under no
circumstances will any portion of the LG Share allocated to a Litigating
Local Government be used to pay the contingency fees or litigation
expenses of counsel for some other Litigating Local Government.
The maximum amount of any Litigating Local Government contingency
fee agreement (from the Contingency Fee Fund pursuant to Section II. D
in Exhibit R the Global Settlement) payable to a law firm permitted for
compensation shall be fifteen percent (15%) of the portion of the LG
Share paid to the Litigating Local Government that retained that firm (i.e.,
if City X filed suit with outside counsel on a contingency fee contract and
City X receives $1,000,000 from the Distributors Settlement, then the
maximum that the firm can receive is $150,000 for fees.) The firms also
shall be paid documented expenses due under their contingency fee
agreements that have been paid by the law firm attributable to that
Litigating Local Government. Consistent with the Distributors Settlement
and Exhibit R of the Global Settlement, amounts due to Participating
Litigating Subdivisions' attorneys under this Allocation Agreement shall
not impact (i) costs paid by the subdivisions to their attorneys pursuant to
a State Back -Stop agreement, (ii) fees paid to subdivision attorneys from
the Common Benefit Fund for common benefit work performed by the
attorneys pursuant to Section II.0 of Exhibit R of the Global Settlement,
or (iii) costs paid to subdivision attorneys from the MDL Expense Fund
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2.3.a
for expenses incurred by the attorneys pursuant to Section ILE of the
Global Settlement.
K. Under no circumstances may counsel receive more for its work on behalf
of a Litigating Local Government than it would under its contingency
agreement with that Litigating Local Government. To the extent a law
firm was retained by a Litigating Local Government on a contingency fee
agreement that provides for compensation at a rate that is less than fifteen
percent (15%) of that Litigating Local Government's recovery, the
maximum amount payable to that law firm referred to in Section D.3 of
the MOU shall be the percentage set forth in that contingency fee
agreement.
L. For the avoidance of doubt, both payments from the GFF and the payment
to the Participating Litigating Local Governments' attorneys for fees and
costs referred to in Paragraph 6 of this Allocation Agreement and Section
V.13.2 Distributors Settlement shall be included when calculating whether
the aforementioned fifteen percent (15%) maximum percentage (or less if
the provisions of Paragraph 10.K of this Allocation Agreement apply) of
any Litigating Local Government contingency fee agreement referred to
above has been met.
M. To the extent there are any excess funds in the GFF, the Fee Panel and the
Settlement Administrator shall facilitate the return of those funds to the
Participating Local Governments as provided for in Section D.6 of the
MOU.
12. In connection with the execution and administration of this Allocation
Agreement, the State and the Participating Local Governments agree to abide by
the Public Records Act, RCW 42.56 eq seq.
13. All Participating Local Governments, Regional OACs, and the State shall
maintain all non -transitory records related to this Allocation Agreement as well as
the receipt and expenditure of the funds from the Distributors Settlement for no
less than five (5) years.
14. If any party to this Allocation Agreement believes that a Participating Local
Government, Regional OAC, the State, an entity, or individual involved in the
receipt, distribution, or administration of the funds from the Distributors
Settlement has violated any applicable ethics codes or rules, a complaint shall be
lodged with the appropriate forum for handling such matters, with a copy of the
complaint promptly sent to the Washington Attorney General, Complex Litigation
Division, Division Chief, 800 Fifth Avenue, Suite 2000, Seattle, Washington
98104.
15. To the extent (i) a region utilizes a pre-existing regional body to establish its
Opioid Abatement Council pursuant to the Section 4.h of the MOU, and (ii) that
IN
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2.3.a
pre-existing regional body is subject to the requirements of the Community
Behavioral Health Services Act, RCW 71.24 et seq., the State and the
Participating Local Governments agree that the Opioid Funds paid by the Settling
Distributors are subject to the requirements of the MOU and this Allocation
Agreement.
16. Upon request by the Settling Distributors, the Participating Local Governments
must comply with the Tax Cooperation and Reporting provisions of the
Distributors Settlement and the Global Settlement.
17. Venue for any legal action related to this Allocation Agreement (separate and
apart from the MOU, the Distributors Settlement, or the Global Settlement) shall
be in King County, Washington.
18. Each party represents that all procedures necessary to authorize such party's
execution of this Allocation Agreement have been performed and that such person
signing for such party has been authorized to execute this Allocation Agreement.
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2.3.a
FOR THE STATE OF WASHINGTON:
ROBERT W.FERGUSON
Attorney General
JEFFREY G. RUPERT
Division Chief
Date:
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2.3.a
FOR THE PARTICIPATING LOCAL GOVERNMENT:
Name of Participating Local Government:
Authorized signature:
Name:
Title:
Date:
A Local Government may elect in its discretion to execute the MOU for purposes of this
Allocation Agreement only by checking this box (see Paragraph 10.A of this Allocation
Agreement):
❑ Local Government is executing the MOU in the form attached hereto as Exhibit 3, but
which is further amended and modified as set forth in this Allocation Agreement, only
purposes of this Allocation Agreement.
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