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07/09/2024 - Regular - PacketT.Q9RCHARD. Meeting Location: Contact us: Council Chambers, 311 Floor Phone (360) 876-4407 216 Prospect Street citvhall@portorchardwa.gov Port Orchard, WA 98366 www.portorchardwa.gov City of Port Orchard City Council Regular Meeting Agenda July 9, 2024 6:30 p.m. Due to construction at City Hall, and pursuant to the Open Public Meetings Act, Chapter 42.30 RCW, the City Council is conducting its public meeting in a hybrid format with options for in -person attendance on the 2nd floor of City Hall, or remote viewing and participation via Zoom (link below). The meeting is streamed live on the City's YouTube channel, click here. Remote access REMOTE ONLY Link: https://us02web.zoom.us/i/84121324120 Zoom Meeting ID: 8412132 4120 Zoom Call -In: 1 253 215 8782 Guiding Principles • Are we raising the bar in all of our actions? • Are we honoring the past, but not living in the past? • Are we building positive connections with our community and outside partners? • Is the decision -making process building a diverse, equitable, and inclusive community? 1. CALL TO ORDER A. Pledge of Allegiance 2. APPROVAL OF AGENDA 3. CITIZENS COMMENTS (This is an opportunity for citizens to address the City Council on any topic. Comments are limited to 3 minutes per speaker. Please approach the podium or raise your Zoom hand if viewing remotely and wait to be recognized by the Mayor. Then, state your name for the official record. If you are attending remotely by Zoom via telephone, enter *9 from your keypad to raise your hand.) 4. CONSENT AGENDA (Items listed are to be considered routine in nature and are grouped together in a single motion. A Councilmember may remove an item for separate consideration upon request. In the event of such request, the item is placed under Business Items.) A. Approval of Vouchers and Electronic Payments B. Approval of Payroll and Direct Deposits C. Approval of the June 11, 2024, City Council Regular Meeting Minutes Page 4 S. PRESENTATION 6. PUBLIC HEARING (Accepting public testimony from citizens limited to the specific item listed) 7. BUSINESS ITEMS A. Adoption of an Ordinance Amending POMC 13.06.100 Pertaining to Stormwater Rate Implementation (Ryan) Page 10 B. Adoption of a Resolution Approving WA AGO Settlement with Kroger as Part of Ongoing Opioid Litigation to Combat Opioid Crisis (Archer) Page 16 C. Adoption of a Resolution Approving the Purchase of Equipment for the Equipment Rental Revolving Fund 500 (M. Brown) Page 69 8. DISCUSSION ITEMS (No Action to be Taken) 9. REPORTS OF COUNCIL COMMITTEES 10. REPORT OF MAYOR 11. REPORT OF DEPARTMENT HEADS 12. CITIZEN COMMENTS (This is an opportunity for citizens to address the City Council on any topic. Comments are limited to 3 minutes per speaker. Please approach the podium or raise your Zoom hand if viewing remotely and wait to be recognized by the Mayor. Then, state your name for the official record. If you are attending remotely by Zoom via telephone, enter *9 from your keypad to raise your hand.) 13. CITY COUNCIL GOOD OF THE ORDER 14. EXECUTIVE SESSION: Pursuant to RCW 42.30.110, the City Council may hold an executive session. The topic(s) and the session duration will be announced prior to the executive session. 15. ADJOURNMENT CITY COUNCIL ADVISORY COMMITTEES (Three council members serve on the committee with staff to make collaborative recommendations about work product. Staff then prepares the items for full Council consideration based on the Committee's discussion.) COMMITTEE MEETINGS Date & Time Economic Development and Tourism July 8, 2024; 9:30am Utilities 9, 2024; 5:00pm :::::7j-uly. Finance July 16, 2024; 4:00pm Transportation July 30, 2024; 4:30pm Land Use TBD, 2024; 4:30pm Lodging Tax Advisory S TBD, 2024 Sewer Advisory September 10, 2024; 3:00pm Location Remote Access Remote Access and City Hall Remote Access Remote Access Remote Access City Hall Remote Access Outside Agency Committees Varies Varies ADA Requirements: In compliance with the Americans with Disabilities Act, if you need accommodations to participate in this meeting, please contact the City Clerk's office at (360) 876-4407. Notification at least 48 hours in advance of meeting will enable the City to make arrangements to assure accessibility to this meeting. July 9, 2024, Regular Meeting Agenda Page 2 of 3 REMINDER: Please silence all electronic devices while City Council is in sess.—... Back to Agenda To subscribe to our general news & public notices click the link: https://portorchardwa.gov/subscribe Robert (Rob) Putaansuu Mayor Administrative Official Eric Warden Councilmember Position 4 Land Use Committee Utilities/Sewer Advisory Committee KRCC-alt Brandy Wallace, MMC, CPRO City Clerk Matt Brown Police Chief Mark Trenary Councilmember Position 1 Finance Committee, Chair Transportation Committee KRCC PSRC-alt Heidi Fenton Councilmember Position 5 Utilities/Sewer Advisory Committee E/D & Tourism Committee Transportation Committee Debbie Lund, CEBS SPHR SHRM-SCP Human Resources Director Nicholas Bond, AICP Community Development Director Jay Rosapepe Councilmember Position 2 Utilities/Sewer Advisory Committee, Chair Land Use Committee, Chair KEDA-alt Fred Chang Councilmember Position 6 (Mayor Pro-Tempore) E/D & Tourism Committee Finance Committee Noah Crocker, M.B.A. Finance Director Denis Ryan, CPWP-M, CPRP Public Works Director Scott Diener Councilmember Position 3 Land Use Committee Transportation Committee Kitsap Public Health District John Morrissey Councilmember Position At -Large Finance Committee E/D & Tourism Committee Lodging Tax, Chair Kitsap Economic Development Alliance PSRC EDD-alt Tim Drury Municipal Court Judge July 9, 2024, Regular Meeting Agenda Page 3 of 3 City of Port Orchard Back to Agenda 1P_q`� Council Meeting Minutes ORCHARD® Regular Meeting of June 11, 2024 1. CALL TO ORDER AND ROLL CALL Mayor Putaansuu called the meeting to order at 6:30 p.m. Roll call was taken by the City Clerk as follows: Mayor Pro-Tem Chang Present Councilmember Diener Present Councilmember Fenton Present Councilmember Morrissey Present Councilmember Rosapepe Present Councilmember Trenary Present Councilmember Worden Present Mayor Putaansuu Present Staff present: Public Works Director Ryan, Judge Drury, Police Chief Brown, City Attorney Archer, City Clerk Wallace and Deputy City Clerk Floyd. Staff present via Zoom: Finance Director Crocker and Community Development Director Bond. The meeting streamed live on YouTube. A. PLEDGE OF ALLEGIANCE (Time Stamp 00:59) Mayor Putaansuu led the audience and Council in the Pledge of Allegiance. 2. APPROVAL OF AGENDA (Time Stamp: 00:01:17) MOTION: By Councilmember Trenary, seconded by Councilmember Rosapepe, to add a new item as Business Item to 7A, 'Adoption of a resolution increasing fees for conflict defense panel attorneys and Judges Pro tem'. The motion carried. MOTION: By Councilmember Rosapepe, seconded by Councilmember Diener, to approve the agenda as amended. The motion carried. Page 4 of 76 Back to Agenda 3. CITIZENS COMMENTS ON AGENDA ITEMS (Time Stamp: 03:35) There were no citizen comments. 4. CONSENT AGENDA (Time Stamp: 03:59) A. Approval of Voucher Nos. 87766 through 87780 and 87788 through 87802 including bank drafts in the amount of $1,977,605.74 and EFT's in the amount of $2,012,454.36 totaling $3,990,060.10. B. Approval of Payroll Check Nos. 87781 through 87787 including bank drafts and EFT's in the amount of $272,138.05 and Direct Deposits in the amount of $267,518.84 totaling $539,656.89. C. Adoption of a Resolution Declaring Certain Personal Property as Surplus and Authorizing its Disposition Thereof (Resolution No. 031-24) D. Approval of an Updated Memorandum of Understanding for the Kitsap Critical Incident Response Team (KCIRT) (Contract No. 053-24) E. Approval of an Alternative Location for City Council Meetings for June, July, August, and September 2024 due to City Hall Renovation Project F. Approval of the May 21, 2024, City Council Work Study Minutes MOTION: By Councilmember Diener, seconded by Councilmember Trenary, to approve the Consent Agenda as presented. The motion carried. 5. PRESENTATION There were no presentations. 6. PUBLIC HEARING There were no public hearings. 7. BUSINESS ITEMS A. NEW: Adoption of a Resolution Increasing Fees for Conflict Defense Panel Attorneys and Judges Pro Tern (Time Stamp: 05:03) MOTION: By Councilmember Rosapepe, seconded by Councilmember Morrissey, to adopt a resolution setting the fees for conflict defense counsel and Judges Pro-tem for the Port Orchard Municipal Court. The motion carried. (Resolution No. 033-24) Police Chief Brown and Judge Drury were excused by the Mayor and left the meeting at 6:52pm. June 11, 2024, City Council Meeting Minutes Page 5 of 76 Page 2 of 6 Back to Agenda B. Adoption of an Ordinance Amending POMC Sections 10.12.460 and 10.12.500 Regarding Parking Regulation (Time Stamp 20:21) MOTION: By Councilmember Worden, seconded by Councilmember Trenary, to adopt an ordinance amending POMC Chapter 10.12, regarding Parking, Stopping or Standing in the City. The motion carried. (Ordinance No. 010-24) C. Adoption of an Ordinance Modifying POMC Chapter 2.04 Pertaining to City Council Meeting Rules of Procedure (Time Stamp 23:58) MAIN MOTION: By Councilmember Rosapepe, seconded by Councilmember Fenton, to adopt an ordinance amending POMC Chapter 2.04, regarding City Council meetings. AMENDED MOTION: By Councilmember Rosapepe, seconded by Councilmember Morrissey, to keep the seconded citizen comment period at the end of the meeting on any item. The amended motion carried. The main motion carried. The motion carried. (Ordinance No. 011-24) D. Adoption of a Resolution Amending Resolution No. 030-16, Pertaining to the Rules Governing Public Comment at Council Meetings (Time Stamp 37:28) MAIN MOTION: By Councilmember Trenary, seconded by Councilmember Fenton, to adopt a resolution amending Resolution No. 030-16 pertaining to the rules governing public comments during regular City Council meetings and also excluding the amendment of removing the second public comment section. AMENDED MOTION: By Councilmember Morrissey, seconded by Councilmember Fenton, to limit the first public comment section to 60-minutes maximum. The amended motion failed. Councilmembers Diener, Chang Rosapepe, Trenary and Worden, voted no. AMENDED MOTION: By Councilmember Diener, seconded by Councilmember Rosapepe, to amend Exhibit A, Number 2, so it reads 'Each speaker may address the council up to 3-minutes. Once the 3- minutes have expired, the speaker must cease their comments and leave the podium if comments are given in person.' June 11, 2024, City Council Meeting Minutes Page 6 of 76 Page 3 of 6 Back to Agenda The amended motion carried. Councilmember Chang pointed out the language for Exhibit A should read 'Two public comment periods will be provided during regular council meetings. One to occur immediately following the Council's Approval of the Agenda, and the second to occur at the end of the meeting before the Council Good of the Order. AMENDED MOTION: By Councilmember Morrissey, seconded by Councilmember Rosapepe, to allow written comments to be accepted by noon on the day of a Council meeting. The amended motion carried. The main motion carried. The motion carried. (Resolution No. 032-24) E. Approval of an Agreement with Kitsap County Consolidated Housing Authority, dba Housing Kitsap for 1406 Funding (Time Stamp 1:12:30) MOTION: By Councilmember Fenton, seconded by Councilmember Rosapepe, to authorize the Mayor to execute an Agreement with Housing Kitsap for the use of SHB 1406 funds for affordable housing in Port Orchard. Councilmember Chang explained he will be voting no as he believes the money should go towards rental assistance. The motion carried. Councilmembers Chang and Worden voted no. (Contract No. 054-24) 8. DISCUSSION ITEMS (No Action to be Taken) A. City Rules and Procedures (Time Stamp 1:24:09) City Attorney Archer provided a presentation and discussion was held which included guiding principles, branches of government, City Council power and authority, day to day activities, building trust, roles of the executive and City Council, labor and personnel, procedures for Councilmembers seeking assistance or information from the administration, who runs the City, Council's most important functions, responding to constituent complaints, conduct in meetings, Point of Order, conflict of interest, right of inquiry, City Attorney, and concerns by individual Councilmembers. B. Bethel Phase 1 Blueberry to Salmon berry 60% Design (Time Stamp 1:58:15) June 11, 2024, City Council Meeting Minutes Page 7 of 76 Page 4 of 6 Back to Agenda Public Works Director Ryan spoke to the project noting the layout has not changed at this point and provided Council with maps to review. Council and staff provided their comments which included the vegetated medium, public outreach, access for businesses, adopted levels of services for the City, turn lanes, vegetation or pavers, budget for Tremont, safety, street lights, maintenance, and acquiring rights -of -way. 9. REPORTS OF COUNCIL COMMITTEES (Time Stamp 2:22:46) Councilmember Morrissey reported on the June 10th Economic Development and Tourism Committee meeting. The next meeting is scheduled for July 8tn Councilmember Rosapepe reported on the June 11th Utilities Committee meeting and the June 11th Sewer Advisory Committee meeting. Councilmember Trenary reported on the June 111h Finance Committee meeting. The Transportation Committee is scheduled to meet June 25th. The Land Use Committee is scheduled to meet June 27th. The Sewer Advisory Committee is scheduled to meet September 9tn 10. REPORT OF THE MAYOR (Time Stamp 2:34:50) The Mayor reported on the following: • Cancellation of the June work study meeting. • City Hall remodel and location of council meetings. After a brief discussion, Council agreed to host the next few months of Council meetings via Zoom with public access at City Hall. • Update on the purchase of 730 Prospect Street. • KRCC [Kitsap Regional Coordinating Council] regional funding forthe Bethel/Lund project. • AWC's City Vision magazine article about Port Orchard. • Juneteenth celebration. • Read a positive comment received about Community Development Director Bond. • Celebration for former Councilmember John Clauson. • In accordance with Ordinance 008-20 "Delegating Authority to the Mayor for Creating and Modification of Job Descriptions," he reported to the Council his approval of the revised job description for patrol officers. • Read into the record a portion of minutes from 50, 75, and 95 years ago. 11. REPORT OF DEPARTMENT HEADS (Time Stamp 2:46:39) Public Works Director Ryan reported the amount that was awarded to the City for the Bethel/Lund project was $648,750. Also reported on job updates and reorganization. Finance Director Crocker asked Council to watch the Finance Committee meeting video as discussion was held regrading the budget and an investment policy. June 11, 2024, City Council Meeting Minutes Page 8 of 76 Page 5 of 6 Back to Agenda 12. CITIZEN COMMENTS ON ANY ITEM (Time Stamp 2:48:30) Lila Mason said she brought a wheelchair to the meeting and asked someone from the Council to volunteer and sit in the wheelchair and try to get out of the bathroom as it is very hard for someone in a wheelchair. 13. CITY COUNCIL GOOD OF THE ORDER Not held. 14. EXECUTION SESSION At 9:18 p.m., Mayor Putaansuu recessed the meeting for a 5-minute break. At 9:23 p.m., Mayor Putaansuu reconvened the meeting back into session. At 9:23 p.m., Mayor Putaansuu recessed the meeting for a 20-minute executive session pursuant to RCW 42.30.110(1)(i) pertaining to legal risk. City Attorney Archer and Public Works Director Ryan was invited to attend, and City Attorney Archer noted no action will follow. At 9:43 p.m., Mayor Putaansuu extended the meeting an additional 10-minutes. At 9:53 p.m., Mayor Putaansuu extended the meeting an additional 10-minutes. At 10:03 p.m., Mayor Putaansuu extended the meeting an additional 10-minutes. At 10:13 p.m., Mayor Putaansuu extended the meeting an additional 5-minutes. At 10:18 p.m., Mayor Putaansuu reconvened the meeting back into session. 15. ADJOURNMENT The meeting adjourned at 10:18 p.m. No other action was taken. Audio/Visual was successful. Brandy Wallace, MMC, City Clerk Robert Putaansuu, Mayor June 11, 2024, City Council Meeting Minutes Page 9 of 76 Page 6 of 6 Back to Agenda City of Port Orchard OW216 Prospect Street Port Or1 (36 , 87 -4407 ORCHARD. cityhall ar portorchardwa.gov � (360) 876-4407 www. ortorchardwa. ov Agenda Staff Report Agenda Item No.: Business Item 7A Subject: Adoption of an Ordinance Amending POMC § 13.06.100, Pertaining to Stormwater Rate Implementation Meeting Date: July 9, 2024 Prepared By: Denis Ryan Public Works Director Summary: In 2023, the City Council adopted the City's 2023 Stormwater and Watersheds Comprehensive Plan following a multi -year collaborative effort to evaluate the City's stormwater drainage system and its impact on the community. Concurrently with the development of the Comprehensive Plan, the City commissioned a rate study conducted by FCS Group to evaluate the City's existing monthly base rate for storm drainage, as well as the need for a capital facility charge to fund the construction of additional facilities to support growth. The results of this effort were memorialized in Ordinance No. 038-23, which was adopted by the City Council in late 2023. The Ordinance updated the base charge for storm drainage services into the future, based on the evaluated needs set forth in the rate study. In early 2024, the Council amended Ordinance No. 038-23, to make technical amendments necessary for effective and efficient implementation of the rates set in 2023. During implementation of the new rates, staff identified an additional technical amendment to meet the needs of the City's billing software and billing cycle. The storm drainage utility service charges, just like water service charges, are billed to utility customers every two months. The billing cycle is staggard so a portion of customers are billed each month, with the other portion of customers billed the following month. For water service charges the annual increase in rates is triggered on either January 15Y or February 1St, depending on the customer's cycle, as "the rates in effect on the first day of the billing date are charged for the entire billing period." POMC 13.04.010. This process is to avoid the application of two different rates to one customer for one billing cycle and necessitated by the City's billing software. Staff requests the same approach for the billing of storm drainage service charges, and requests the insertion of this language into POMC 13.06.100 to clarify that, for storm drainage service charges, "the rates in effect on the first day of the billing date are charged for the entire billing period." Recommendation: Staff recommends adoption of an ordinance amending 13.06.100 to insert the aforementioned language. Relationship to Comprehensive Plan: Chapter 7: Utilities Page 10 of 76 Back to Agenda Motion for consideration: I move to adopt an Ordinance amending 13.06.100 pertaining to the billing cycle for storm drainage service charges. Fiscal Impact: The amendments would have a de minimus impact on the collection of fees. Alternatives: Do not approve and provide alternative guidance. Attachments: Ordinance Redline of proposed POMC amendment Page 11 of 76 Back to Agenda ORDINANCE NO. AN ORDINANCE OF THE CITY OF PORT ORCHARD, WASHINGTON, RELATING TO THE STORM DRAINAGE RATES; AMENDING POMC SECTION 13.06.100; PROVIDING FOR SEVERABILITY AND PUBLICATION; AND SETTING AN EFFECTIVE DATE. WHEREAS, the City Council recently amended the City's utility rates and fees via Ordinance No. 005-24; and WHEREAS, during implementation, the Finance Department identified a technical amendment to ensure the implementation of updated rates aligns with the billing cycle and associated software; and WHEREAS, this amendment would align the stormwater rates billing process with the current processes for water billing; and WHEREAS, the City Council finds that the technical amendment herein is consistent with goals and policies of the City's 2023 Stormwater and Watersheds Comprehensive Plan and related regulations, and serve the public health, safety, and general welfare of the citizens of Port Orchard; now, therefore, THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, DO ORDAIN AS FOLLOWS: SECTION 1. Amendment. Section 13.06.100 of the Port Orchard Municipal Code is hereby amended to read as follows: 13.06.100 Storm drainage service charges. In accordance with the basis for a rate structure set forth in POMC 13.06.070 and 13.06.080, there is levied upon all developed real property within the boundaries of the utility the following service charges which shall be collected from the owners of such properties. Rates in effect on the first day of the billing date are charged for the entire billing period. SECTION 2. Severability. Should any portion of this ordinance be held to be unconstitutional or unlawful by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause or phrase of this Ordinance. SECTION 3. Savings Clause. Those portions of the Port Orchard Municipal Code which are amended by this ordinance shall remain in force and effect as set out prior to this ordinance until the effective date of this ordinance. Such amendments shall not be construed as affecting Page 12 of 76 Back to Agenda — as� z- 2 any existing right acquired under the laws repealed, nor as affecting any proceeding instituted thereunder, nor any rule, regulation or order promulgated thereunder. SECTION 4. Ratification. Any act consistent with this chapter and prior to the effective date of the ordinance codified herein is hereby ratified and affirmed SECTION S. Publication. This Ordinance shall be published by an approved summary consisting of the title. SECTION 6. Effective Date. This Ordinance shall take effect and be in full force and effect five days after publication, as provided by law. PASSED by the City Council of the City of Port Orchard, APPROVED by the Mayor and attested by the Clerk in authentication of such passage this 9th day of July 2024. ATTEST: Brandy Wallace, MMC, City Clerk APPROVED AS TO FORM: Charlotte A. Archer, City Attorney PUBLISHED: EFFECTIVE DATE: Robert Putaansuu, Mayor Page 13 of 76 Back to Agenda POMC 13.06.100 - Redline of Amendments 13.06.100 Storm drainage service charges. In accordance with the basis for a rate structure set forth in POMC 13.06.070 and 13.06.080, there is levied upon all developed real property within the boundaries of the utilitythe following service charges which shall be collected from the owners of such properties. The rates in effect on the first of the billine date are charged for the entire billine period.= (1) Effective June 1, 2024, the storm drainage charges are shown below: (a) For all single-family residential uses, including mobile homes, the monthly service charge shall be $18.34. (b) For all other developed property, including but not limited to duplex, single- family residential with accessory dwelling unit(s), triplex, multifamily, and commercial accounts, the monthly service charge shall be $18.34, multiplied by the number of ISUs determined by the utility to be contained in such parcel pursuant to POMC 13.06.080. (2) Effective January 1, 2025, the storm drainage charges are shown below: (a) For all detached house accounts, including mobile homes, the monthly service charge shall be $24.03. (b) For all other developed property, including but not limited to duplex, single- family residential with accessory dwelling unit(s), triplex, multifamily and commercial accounts, the monthly service charge shall be $24.03, multiplied by the number of ISUs determined by the utility to be contained in such parcel pursuant to POMC 13.06.080. (3) Effective January 1, 2026, the storm drainage charges are shown below: (a) For all detached houses accounts, including mobile homes, the monthly service charge shall be $31.47. (b) For all other developed property, including but not limited to duplex, single- family residential with accessory dwelling unit(s), triplex, multifamily and commercial accounts, the monthly service charge shall be $31.47, multiplied by the number of ISUs determined by the utility to be contained in such parcel pursuant to POMC 13.06.080. (4) Effective January 1, 2027, the storm drainage charges are shown below: (a) For all detached houses, including mobile homes, the monthly service charge shall be $32.42. (b) For all other developed property, including but not limited to duplex, single- family residential with accessory dwelling unit(s), triplex, multifamily and 10892826.1 - 366922 - 0001 Page 14 of 76 Back to Agenda commercial accounts, the monthly service charge shall be $32.42, multiplied by the number of ISUs determined by the utility to be contained in such parcel pursuant to POMC 13.06.080. (5) Effective January 1, 2028, the storm drainage charges are shown below: (a) For all detached houses, including mobile homes, the monthly service charge shall be $33.39. (b) For all other developed property, including but not limited to duplex, single- family residential with accessory dwelling unit(s), triplex, multifamily and commercial accounts, the monthly service charge shall be $33.39, multiplied by the number of ISUs determined by the utility to be contained in such parcel pursuant to POMC 13.06.080. 10892826.1 - 366922 - 0001 Page 15 of 76 City of Port Orchard 216 Prospect Street Port Orchard, WA 98366 citvhall&portorchardwa.gov 1 (360) 876-4407 www.portorchardwa.gov Agenda Staff Report Agenda Item No.: Business Item 7B Subject: Adoption of a Resolution Approving WA AGO Settlement with Kroger as Part of Ongoing Opioid Litigation to Combat Opioid Crisis ORCHARD. Meeting Date: July 9, 2024 Prepared By: Charlotte Archer City Attorney Summary: The State of Washington, as a participant in multi -state litigation, has been actively pursuing litigation against a variety of entities that are manufacturers and distributors of prescription opioids, in an effort to combat the opioid crisis in Washington. The State has alleged that the manufacturers of prescription opioids grossly misrepresented the risks of long-term use of those drugs for persons with chronic pain, and distributors failed to properly monitor suspicious orders of those prescription drugs —all of which contributed to the current opioid epidemic. In one piece of the ongoing litigation, the State has reached a settlement with the entity Kroger (which does business in WA as QFC and Fred Meyer) in the amount of $47.5 million dedicated to abating the opioid crisis in Washington. Counties, as well as cities in Washington with a population of over 10,000, will receive distributions of these funds if they sign onto the settlement. Port Orchard's allocation is 0.00100949716200 percent. This amounts to approximately $47,000 for distribution. The uses of the funds are limited by the settlement agreement primarily for purposes of responding to, dealing with, or helping people recover from the impacts of opioid addiction (See pages 97-105 of the Kroger Multistate Settlement Agreement available here. To participate in this settlement, the City must opt in by executing the Participation Form and Allocation Agreement by August 12, 2024. This will not infringe the City's ability to participate in future litigation or settlements as they may relate to other manufacturers or distributors. Recommendation: Take action to authorize participation in the settlement. Has this item been presented to Committee/Work Study? If so, which one: No Relationship to Comprehensive Plan: N/A Motion for consideration: Motion to adopt a Resolution to authorize participation in the settlement with Kroger to combat the opioid crisis in Washington. Page 16 of 76 Back to Agenda B F- asp z- v, 2 Fiscal Impact: This will result in Port Orchard receiving approximately $47,000 for the distribution of this settlement. Alternatives: Do not approve and provide alternative guidance. Attachments: Resolution, Participation Form, and Allocation Agreement Page 17 of 76 RESOLUTION NO. -24 Back to Agenda A RESOLUTION OF THE CITY OF PORT ORCHARD, WASHINGTON, AUTHORIZING PARTICIPATION IN MULTI -STATE SETTLEMENT WITH KROGER TO RECEIVE PROCEEDS FROM THE LITIGATION TO COMBAT THE OPIOID CRISIS IN WASHINGTON. WHEREAS, the State of Washington, as a participant in multi -state litigation, filed a lawsuit against entities that are manufacturers and distributors of prescription opioids, including the company Kroger; and WHEREAS, the states have reached a settlement with Kroger in the amount of $47 million, of which a portion will be dedicated to abating the opioid crisis in Washington; and WHEREAS, Port Orchard is eligible to receive 0.00100949716200 of the proceeds if it executes a the required forms by August 12, 2024 to participate in the settlement; WHEREAS, the settlement funds may be used for opioid abatement, including opioid education, treatment and remediation of impacts that opioids have had in the Port Orchard community; and WHEREAS, the City Council finds that it is in the public interest to have the City execute the participation form in order to secure more funds for use in responding to the opioid crisis consistent with the uses outlined in the settlement agreement with the State of Washington; now, therefore; THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, HEREBY RESOLVES AS Y91W91hTE1 THAT: It is the intent of the Port Orchard City Council that the recitals set forth above are hereby adopted and incorporated as findings in support of this Resolution. THAT: The Mayor is authorized to execute the Participation Form and Allocation Agreement(s) attached hereto as Exhibit A, in a form acceptable to the City Attorney. The Mayor is further authorized to take all actions necessary to effectuate the direction set forth herein. PASSED by the City Council of the City of Port Orchard, SIGNED by the Mayor and attested by the City Clerk in authentication of such passage this 91h day of July 2024. ATTEST: Brandy Wallace, MMC, City Clerk Robert Putaansuu, Mayor Page 18 of 76 Back to Agenda F.XNTRTT K Subdivision Participation and Release Form Governmental Entity: State: Authorized Official: Address 1: Address 2: City, State, Zip: Phone: Email: The governmental entity identified above ("Governmental Entity"), in order to obtain and in consideration for the benefits provided to the Governmental Entity pursuant to the Settlement Agreement dated March 22, 2024 ("Kroger Settlement"), and acting through the undersigned authorized official, hereby elects to participate in the Kroger Settlement, release all Released Claims against all Released Entities, and agrees as follows. 1. The Governmental Entity is aware of and has reviewed the Kroger Settlement, understands that all terms in this Participation and Release Form have the meanings defined therein, and agrees that by executing this Participation and Release Form, the Governmental Entity elects to participate in the Kroger Settlement and become a Participating Subdivision as provided therein. 2. The Governmental Entity shall promptly, and in any event no later than 14 days after the Reference Date and prior to the filing of the Consent Judgment, dismiss with prejudice any Released Claims that it has filed. With respect to any Released Claims pending in In re National Prescription Opiate Litigation, MDL No. 2804, the Governmental Entity authorizes the Plaintiffs' Executive Committee to execute and file on behalf of the Governmental Entity a Stipulation of Dismissal with Prejudice substantially in the form found at https://nationalopioidsettlement.com/. 3. The Governmental Entity agrees to the terms of the Kroger Settlement pertaining to Participating Subdivisions as defined therein. 4. By agreeing to the terms of the Kroger Settlement and becoming a Releasor, the Governmental Entity is entitled to the benefits provided therein, including, if applicable, monetary payments beginning after the Effective Date. 5. The Governmental Entity agrees to use any monies it receives through the Kroger Settlement solely for the purposes provided therein. 6. The Governmental Entity submits to the jurisdiction of the court in the Governmental Entity's state where the Consent Judgment is filed for purposes limited to that court's role as provided in, and for resolving disputes to the extent provided in, the Kroger Settlement. The Governmental Entity likewise agrees to arbitrate before the National Arbitration Panel K-1 Page 19 of 76 as provided in, and for resolving disputes to the extent otherwise provided in, the Kroger Settlement. 7. The Governmental Entity has the right to enforce the Kroger Settlement as provided therein. 8. The Governmental Entity, as a Participating Subdivision, hereby becomes a Releasor for all purposes in the Kroger Settlement, including without limitation all provisions of Section XI (Release), and along with all departments, agencies, divisions, boards, commissions, districts, instrumentalities of any kind and attorneys, and any person in their official capacity elected or appointed to serve any of the foregoing and any agency, person, or other entity claiming by or through any of the foregoing, and any other entity identified in the definition of Releasor, provides for a release to the fullest extent of its authority. As a Releasor, the Governmental Entity hereby absolutely, unconditionally, and irrevocably covenants not to bring, file, or claim, or to cause, assist or permit to be brought, filed, or claimed, or to otherwise seek to establish liability for any Released Claims against any Released Entity in any forum whatsoever. The releases provided for in the Kroger Settlement are intended by the Parties to be broad and shall be interpreted so as to give the Released Entities the broadest possible bar against any liability relating in any way to Released Claims and extend to the full extent of the power of the Governmental Entity to release claims. The Kroger Settlement shall be a complete bar to any Released Claim. 9. The Governmental Entity hereby takes on all rights and obligations of a Participating Subdivision as set forth in the Kroger Settlement. 10. In connection with the releases provided for in the Kroger Settlement, each Governmental Entity expressly waives, releases, and forever discharges any and all provisions, rights, and benefits conferred by any law of any state or territory of the United States or other jurisdiction, or principle of common law, which is similar, comparable, or equivalent to § 1542 of the California Civil Code, which reads: General Release; extent. A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release that, if known by him or her would have materially affected his or her settlement with the debtor or released parry. A Releasor may hereafter discover facts other than or different from those which it knows, believes, or assumes to be true with respect to the Released Claims, but each Governmental Entity hereby expressly waives and fully, finally, and forever settles, releases and discharges, upon the Effective Date, any and all Released Claims that may exist as of such date but which Releasors do not know or suspect to exist, whether through ignorance, oversight, error, negligence or through no fault whatsoever, and which, if known, would materially affect the Governmental Entities' decision to participate in the Kroger Settlement. K-2 Page 20 of 76 11. Nothing herein is intended to modify in any way the terms of the Kroger Settlement, to which Governmental Entity hereby agrees. To the extent this Participation and Release Form is interpreted differently from the Kroger Settlement in any respect, the Kroger Settlement controls. I have all necessary power and authorization to execute this Participation and Release Form on behalf of the Governmental Entity. Signature: Name: Title: Date: K-3 Page 21 of 76 WASHINGTON STATE ALLOCATION AGREEMENT GOVERNING THE ALLOCATION OF OPIOID SETTLEMENT FUNDS PAID BY KROGER JUNE 28, 2024 This Washington State Allocation Agreement Governing the Allocation of Opioid Settlement Funds Paid by Kroger (the "Allocation Agreement III") governs the distribution of funds obtained from the Kroger Co. ("Kroger") in connection with the resolution of any and all claims by the State of Washington and the counties, cities, and towns in Washington State ("Local Governments") against Kroger via the Kroger Settlement Agreement dated March 22, 2024 ("Settlement"). The Settlement can be accessed at https://nationalopioidsettlement.com/. The terms and definitions of the Settlement are incorporated into this Allocation Agreement III, and any undefined terms in this Allocation Agreement III are as defined in the Settlement. 1. This Allocation Agreement III is intended to be a State -Subdivision Agreement as defined in the Settlement. This Allocation Agreement III shall be interpreted to be consistent with the requirements of a State -Subdivision Agreement in the Settlement. 2. This Allocation Agreement III shall become effective only if all of the following occur: A. The State of Washington joins the Settlement and becomes a Settling State as provided for in the Settlement. B. The Settlement becomes final and effective and a Consent Judgment is filed and approved as provided for in the Settlement. C. The number of Local Governments that execute and return this Allocation Agreement III satisfies the participation requirements for a State - Subdivision Agreement as specified in the Settlement. 3. Requirements to become a Participating Local Government. To become a Participating Local Government that can participate in this Allocation Agreement III, a Local Government must do all of the following: A. The Local Government must execute and return this Allocation Agreement III. B. The Local Government must release its claims against Kroger identified in the Settlement and agree to be bound by the terms of the Settlement by timely executing and returning the Participation Form, which is Exhibit K of the Settlement. C. Litigating Subdivisions, also referred to as Litigating Local Governments, must dismiss Kroger with prejudice from their lawsuits. 1 Page 22 of 76 D. Each of the Local Governments that is eligible to participate in this Allocation Agreement III has previously executed and signed 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 1. By executing this Allocation Agreement III, the local government agrees and affirms that the MOU applies to and shall govern the Local Government Share as modified by this Allocation Agreement III for the Settlement. A Local Government that meets all of the conditions in this paragraph shall be deemed a "Participating Local Government." 4. This Allocation Agreement III applies to the State of Washington's allocation of the (1) Adjusted State Remediation Payment and (2) Additional Remediation Amount, which collectively shall be referred to as the "Washington Abatement Amount." As specified in the Settlement, the Washington Abatement Amount will vary dependent on the percentage of Participating Local Governments and whether there are any Later Litigating Subdivisions. 5. This Allocation Agreement III does not apply to the State Cost Fund, State AG Fees and Costs, or any attorneys' fees, fees, costs, or expenses referred to in the Settlement or that are paid directly or indirectly via the Settlement to the State of Washington ("State's Fees and Costs"). 6. This Allocation Agreement III and the MOU are a State Back -Stop Agreement. Kroger is paying a portion of the Local Governments' attorneys' fees and costs as provided for in the Settlement. The total contingent fees an attorney receives from the Contingency Fee Fund in the Settlement, the MOU, and this Allocation Agreement III combined cannot exceed 15% of the portion of the LG Share paid to the Litigating Local Government that retained that firm to litigate against the Settling Entities (i.e., if City X filed suit with outside counsel on a contingency fee contract and City X receives $1,000,000 from the Settlement, then the maximum that the firm can receive is $150,000 for fees as to the Kroger Settlement.) 7. No portion of the State's Fees and Costs and/or the State Share as defined in Paragraphs 5 and 9 of this Allocation Agreement III shall be used to fund the Government Fee Fund ("GFF") referred to in Paragraph 11 of this Allocation Agreement III 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. 8. The Washington Abatement Amount shall and must be used by the State and Participating Local Governments for future Opioid Remediation as defined in the Settlement, except as allowed by the Settlement. 2 Page 23 of 76 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 to Participating Local Governments pursuant to the MOU as amended and modified in this Allocation Agreement III. 11. For purposes of this Allocation Agreement III only, the MOU is modified as follows and any contrary provisions in the MOU are struck: A. Exhibit A of the MOU is replaced by Exhibit E of the Settlement. B. The definition of "Litigating Local Governments" in Section AA of the MOU shall mean Litigating Subdivisions as defined in the Settlement and shall also include any local government that notified Judge Polster in Case No. 1:17-and-02804-DAP of its intent to sue Kroger in 2023 after the release of updated ARCOS data. C. The definition of "National Settlement Agreement" in Section A.6 of the MOU shall mean the Settlement. D. The definition of "Settlement" in Section A.14 of the MOU shall mean the Settlement. E. The MOU is amended to add new Section C.4.g.vIII, which provides as follows: "If a Participating Local Government receiving a direct payment (a) uses Opioid Funds other than as provided for in the 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 C.4.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.IIIi 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 3 Page 24 of 76 Government may apply to the Regional OAC to be reinstated for direct payments no earlier than five years after the date of suspension." F. The amounts payable to each law firm representing a Litigating Local Government from the GFF shall be consistent with the MOU and the process set forth in the Order Appointing the Fee Panel to Allocate and Disburse Attorney's Fees Provided for in State Back -Stop Agreements, Case No. 1:17-and-02804-DAP Doc #: 4543 (June 17, 2022). All amounts that the City of Seattle has contributed to the GFF shall be returned to the City of Seattle by the Settlement Administrator rather than paid to Hagens Berman Sobol Shapiro LLP. G. 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 Entities 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 GFF Administrator. H. 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 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 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 of the 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 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 Agreement on Attorneys' Fees, Costs, and Expenses, which is Exhibit R of the Settlement, amounts due to Participating Litigating Subdivisions' attorneys under this Allocation Agreement III shall not impact (i) costs paid by the subdivisions to their attorneys pursuant to a State Back -Stop 4 Page 25 of 76 agreement, (ii) fees paid to subdivision attorneys from the Common Benefit Fund for common benefit work performed by the attorneys pursuant to Exhibit R of the Settlement, or (iii) costs paid to subdivision attorneys from the MDL Expense Fund for expenses incurred by the attorneys pursuant to the Settlement. J. 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. K. For the avoidance of doubt, both payments from the GFF and the payment to the Participating Litigating Local Governments' attorneys from the Contingency Fee Fund in the Settlement shall be included when calculating whether the aforementioned fifteen percent (15%) maximum percentage (or less if the provisions of Paragraph 10.J of this Allocation Agreement III apply) of any Litigating Local Government contingency fee agreement referred to above has been met. L. To the extent there are any excess funds in the GFF, 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 III, the State and the Participating Local Governments agree to abide by the Public Records Act, RCW 42.56 et seq. 13. All Participating Local Governments, Regional OACs, and the State shall maintain all non -transitory records related to this Allocation Agreement III as well as the receipt and expenditure of the funds from the Settlement for no less than five (5) years. 14. If any parry to this Allocation Agreement III 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 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 (III) that 5 Page 26 of 76 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 Kroger is subject to the requirements of the MOU and this Allocation Agreement III. 16. Upon request by Kroger, the Participating Local Governments must comply with the Tax Cooperation and Reporting provisions of the Settlement. 17. Venue for any legal action related to this Allocation Agreement III (separate and apart from the MOU or the Settlement) shall be in King County, Washington. 18. Each party represents that all procedures necessary to authorize such parry's execution of this Allocation Agreement III have been performed and that such person signing for such party has been authorized to execute this Allocation Agreement III. 6 Page 27 of 76 FOR THE STATE OF WASHINGTON: ROBERT W. FERGUSON Attorney General Date: 7 Page 28 of 76 FOR THE PARTICIPATING LOCAL GOVERNMENT: Name of Participating Local Government: Authorized signature: Name: Title: Date: Page 29 of 76 Back to Agenda EXHIBIT 1 One Washiniton Memorandum of Understanding Between Washiniton Municipalities Page 30 of 76 ONE WASHINGTON MEMORANDUM OF UNDERSTANDING BETWEEN WASHINGTON MUNICIPALITIES Whereas, the people of the State of Washington and its communities have been harmed by entities within the Pharmaceutical Supply Chain who manufacture, distribute, and dispense prescription opioids; Whereas, certain Local Governments, through their elected representatives and counsel, are engaged in litigation seeking to hold these entities within the Pharmaceutical Supply Chain of prescription opioids accountable for the damage they have caused to the Local Governments; Whereas, Local Governments and elected officials share a common desire to abate and alleviate the impacts of harms caused by these entities within the Pharmaceutical Supply Chain throughout the State of Washington, and strive to ensure that principals of equity and equitable service delivery are factors considered in the allocation and use of Opioid Funds; and Whereas, certain Local Governments engaged in litigation and the other cities and counties in Washington desire to agree on a form of allocation for Opioid Funds they receive from entities within the Pharmaceutical Supply Chain. Now therefore, the Local Governments enter into this Memorandum of Understanding ("MOU") relating to the allocation and use of the proceeds of Settlements described. A. Definitions As used in this MOU: 1. "Allocation Regions" are the same geographic areas as the existing nine (9) Washington State Accountable Community of Health (ACH) Regions and have the purpose described in Section C below. 2. "Approved Purpose(s)" shall mean the strategies specified and set forth in the Opioid Abatement Strategies attached as Exhibit A. 3. "Effective Date" shall mean the date on which a court of competent jurisdiction enters the first Settlement by order or consent decree. The Parties anticipate that more than one Settlement will be administered according to the terms of this MOU, but that the first entered Settlement will trigger allocation of Opioid Funds in accordance with Section B herein, and the formation of the Opioid Abatement Councils in Section C. 4. "Litigating Local Govemment(s)" shall mean Local Governments that filed suit against any Pharmaceutical Supply Chain Participant pertaining to the Opioid epidemic prior to September 1, 2020. Page 31 of 76 5. "Local Government(s)" shall mean all counties, cities, and towns within the geographic boundaries of the State of Washington. 6. "National Settlement Agreements" means the national opioid settlement agreements dated July 21, 2021 involving Johnson & Johnson, and distributors AmerisourceBergen, Cardinal Health and McKesson as well as their subsidiaries, affiliates, officers, and directors named in the National Settlement Agreements, including all amendments thereto. 7. "Opioid Funds" shall mean monetary amounts obtained through a Settlement as defined in this MOU. 8. "Opioid Abatement Council" shall have the meaning described in Section C below. 9. "Participating Local Government(s)" shall mean all counties, cities, and towns within the geographic boundaries of the State that have chosen to sign on to this MOU. The Participating Local Governments may be referred to separately in this MOU as "Participating Counties" and "Participating Cities and Towns" (or "Participating Cities or Towns," as appropriate) or "Parties." 10. "Pharmaceutical Supply Chain" shall mean the process and channels through which controlled substances are manufactured, marketed, promoted, distributed, and/or dispensed, including prescription opioids. 11. "Pharmaceutical Supply Chain Participant" shall mean any entity that engages in or has engaged in the manufacture, marketing, promotion, distribution, and/or dispensing of a prescription opioid, including any entity that has assisted in any of the above. 12. "Qualified Settlement Fund Account," or "QSF Account," shall mean an account set up as a qualified settlement fund, 468b fund, as authorized by Treasury Regulations 1.468B-1(c) (26 CFR §1.468B-1). 13. "Regional Agreements" shall mean the understanding reached by the Participating Local Counties and Cities within an Allocation Region governing the allocation, management, distribution of Opioid Funds within that Allocation Region. 14. "Settlement" shall mean the future negotiated resolution of legal or equitable claims against a Pharmaceutical Supply Chain Participant when that resolution has been jointly entered into by the Participating Local Governments. "Settlement" expressly does not include a plan of reorganization confirmed under Title 1 Iof the United States Code, irrespective of the extent to which Participating Local Governments vote in favor of or otherwise support such plan of reorganization. 2 Page 32 of 76 15. "Trustee" shall mean an independent trustee who shall be responsible for the ministerial task of releasing Opioid Funds from a QSF account to Participating Local Governments as authorized herein and accounting for all payments into or out of the trust. 16. The "Washington State Accountable Communities of Health" or "ACH" shall mean the nine (9) regions described in Section C below. B. Allocation of Settlement Proceeds for Approved Purposes 1. All Opioid Funds shall be held in a QSF and distributed by the Trustee, for the benefit of the Participating Local Governments, only in a manner consistent with this MOU. Distribution of Opioid Funds will be subject to the mechanisms for auditing and reporting set forth below to provide public accountability and transparency. 2. All Opioid Funds, regardless of allocation, shall be utilized pursuant to Approved Purposes as defined herein and set forth in Exhibit A. Compliance with this requirement shall be verified through reporting, as set out in this MOU. 3. The division of Opioid Funds shall first be allocated to Participating Counties based on the methodology utilized for the Negotiation Class in In Re: National Prescription Opiate Litigation, United States District Court for the Northern District of Ohio, Case No. 1:17-and-02804-DAP. The allocation model uses three equally weighted factors: (1) the amount of opioids shipped to the county; (2) the number of opioid deaths that occurred in that county; and (3) the number of people who suffer opioid use disorder in that county. The allocation percentages that result from application of this methodology are set forth in the "County Total" line item in Exhibit B. In the event any county does not participate in this MOU, that county's percentage share shall be reallocated proportionally amongst the Participating Counties by applying this same methodology to only the Participating Counties. 4. Allocation and distribution of Opioid Funds within each Participating County will be based on regional agreements as described in Section C. C. Regional Agreements 1. For the purpose of this MOU, the regional structure for decision - making related to opioid fund allocation will be based upon the nine (9) pre- defined Washington State Accountable Community of Health Regions (Allocation Regions). Reference to these pre -defined regions is solely for the purpose of Page 33 of 76 drawing geographic boundaries to facilitate regional agreements for use of Opioid Funds. The Allocation Regions are as follows: • King County (Single County Region) • Pierce County (Single County Region) • Olympic Community of Health Region (Clallam, Jefferson, and Kitsap Counties) • Cascade Pacific Action Alliance Region (Cowlitz, Grays Harbor, Lewis, Mason, Pacific, Thurston, and Wahkiakum Counties) • North Sound Region (Island, San Juan, Skagit, Snohomish, and Whatcom Counties) • SouthWest Region (Clark, Klickitat, and Skamania Counties) • Greater Columbia Region (Asotin, Benton, Columbia, Franklin, Garfield, Kittitas, Walla Walla, Whitman, and Yakima Counties) • Spokane Region (Adams, Ferry, Lincoln, Pend Oreille, Spokane, and Stevens Counties) • North Central Region (Chelan, Douglas, Grant, and Okanogan Counties) 2. Opioid Funds will be allocated, distributed and managed within each Allocation Region, as determined by its Regional Agreement as set forth below. If an Allocation Region does not have a Regional Agreement enumerated in this MOU, and does not subsequently adopt a Regional Agreement per Section C.5, the default mechanism for allocation, distribution and management of Opioid Funds described in Section CA.a will apply. Each Allocation Region must have an OAC whose composition and responsibilities shall be defined by Regional Agreement or as set forth in Section CA. 3. King County's Regional Agreement is reflected in Exhibit C to this MOU. 4. All other Allocation Regions that have not specified a Regional Agreement for allocating, distributing and managing Opioid Funds, will apply the following default methodology: a. Opioid Funds shall be allocated within each Allocation Region by taking the allocation for a Participating County from Exhibit B and apportioning those funds between that Participating County and its Participating Cities and Towns. Exhibit B also sets forth the allocation to the Participating Counties and the Participating Cities or Towns within the Counties based on a default allocation formula. As set forth above in Section B.3, to determine the allocation to a county, this formula utilizes: (1) the amount of opioids shipped to the county; (2) the number of opioid deaths that occurred in that county; and (3) the number of people who suffer opioid use disorder in that county. To determine the allocation within a county, the formula utilizes historical federal data showing how the specific Counties and the Cities and Towns within the Counties have 4 Page 34 of 76 made opioids epidemic -related expenditures in the past. This is the same methodology used in the National Settlement Agreements for county and intra-county allocations. A Participating County, and the Cities and Towns within it may enter into a separate intra-county allocation agreement to modify how the Opioid Funds are allocated amongst themselves, provided the modification is in writing and agreed to by all Participating Local Governments in the County. Such an agreement shall not modify any of the other terms or requirements of this MOU. b. 10% of the Opioid Funds received by the Region will be reserved, on an annual basis, for administrative costs related to the OAC. The OAC will provide an annual accounting for actual costs and any reserved funds that exceed actual costs will be reallocated to Participating Local Governments within the Region. C. Cities and towns with a population of less than 10,000 shall be excluded from the allocation, with the exception of cities and towns that are Litigating Participating Local Governments. The portion of the Opioid Funds that would have been allocated to a city or town with a population of less than 10,000 that is not a Litigating Participating Local Government shall be redistributed to Participating Counties in the manner directed in CA.a above. d. Each Participating County, City, or Town may elect to have its share re -allocated to the OAC in which it is located. The OAC will then utilize this share for the benefit of Participating Local Governments within that Allocation Region, consistent with the Approved Purposes set forth in Exhibit A. A Participating Local Government's election to forego its allocation of Opioid Funds shall apply to all future allocations unless the Participating Local Government notifies its respective OAC otherwise. If a Participating Local Government elects to forego its allocation of the Opioid Funds, the Participating Local Government shall be excused from the reporting requirements set forth in this Agreement. e. Participating Local Governments that receive a direct payment maintain full discretion over the use and distribution of their allocation of Opioid Funds, provided the Opioid Funds are used solely for Approved Purposes. Reasonable administrative costs for a Participating Local Government to administer its allocation of Opioid Funds shall not exceed actual costs or 10% of the Participating Local Government's allocation of Opioid Funds, whichever is less. f. A Local Government that chooses not to become a Participating Local Government will not receive a direct allocation of Opioid Funds. The portion of the Opioid Funds that would have been allocated to a Local Government that is not a Participating Local Government shall be Page 35 of 76 redistributed to Participating Counties in the manner directed in CA.a above. g. As a condition of receiving a direct payment, each Participating Local Government that receives a direct payment agrees to undertake the following actions: i. Developing a methodology for obtaining proposals for use of Opioid Funds. ii. Ensuring there is opportunity for community -based input on priorities for Opioid Fund programs and services. iii. Receiving and reviewing proposals for use of Opioid Funds for Approved Purposes. iv. Approving or denying proposals for use of Opioid Funds for Approved Purposes. V. Receiving funds from the Trustee for approved proposals and distributing the Opioid Funds to the recipient. vi. Reporting to the OAC and making publicly available all decisions on Opioid Fund allocation applications, distributions and expenditures. h. Prior to any distribution of Opioid Funds within the Allocation Region, The Participating Local Governments must establish an Opioid Abatement Council (OAC) to oversee Opioid Fund allocation, distribution, expenditures and dispute resolution. The OAC may be a preexisting regional body or may be a new body created for purposes of executing the obligations of this MOU. i. The OAC for each Allocation Region shall be composed of representation from both Participating Counties and Participating Towns or Cities within the Region. The method of selecting members, and the terms for which they will serve will be determined by the Allocation Region's Participating Local Governments. All persons who serve on the OAC must have work or educational experience pertaining to one or more Approved Uses. The Regional OAC will be responsible for the following actions: i. Overseeing distribution of Opioid Funds from Participating Local Governments to programs and services within the Allocation Region for Approved Purposes. 0 Page 36 of 76 ii. Annual review of expenditure reports from Participating Local Jurisdictions within the Allocation Region for compliance with Approved Purposes and the terms of this MOU and any Settlement. iii. In the case where Participating Local Governments chose to forego their allocation of Opioid Funds: (i) Approving or denying proposals by Participating Local Governments or community groups to the OAC for use of Opioid Funds within the Allocation Region. (ii) Directing the Trustee to distribute Opioid Funds for use by Participating Local Governments or community groups whose proposals are approved by the OAC. (iii) Administrating and maintaining records of all OAC decisions and distributions of Opioid Funds. iv. Reporting and making publicly available all decisions on Opioid Fund allocation applications, distributions and expenditures by the OAC or directly by Participating Local Governments. V. Developing and maintaining a centralized public dashboard or other repository for the publication of expenditure data from any Participating Local Government that receives Opioid Funds, and for expenditures by the OAC in that Allocation Region, which it shall update at least annually. vi. If necessary, requiring and collecting additional outcome - related data from Participating Local Governments to evaluate the use of Opioid Funds, and all Participating Local Governments shall comply with such requirements. vii. Hearing complaints by Participating Local Governments within the Allocation Region regarding alleged failure to (1) use Opioid Funds for Approved Purposes or (2) comply with reporting requirements. 5. Participating Local Governments may agree and elect to share, pool, or collaborate with their respective allocation of Opioid Funds in any manner they choose by adopting a Regional Agreement, so long as such sharing, pooling, or collaboration is used for Approved Purposes and complies with the terms of this MOU and any Settlement. 7 Page 37 of 76 6. Nothing in this MOU should alter or change any Participating Local Government's rights to pursue its own claim. Rather, the intent of this MOU is to join all parties who wish to be Participating Local Governments to agree upon an allocation formula for any Opioid Funds from any future binding Settlement with one or more Pharmaceutical Supply Chain Participants for all Local Governments in the State of Washington. 7. If any Participating Local Government disputes the amount it receives from its allocation of Opioid Funds, the Participating Local Government shall alert its respective OAC within sixty (60) days of discovering the information underlying the dispute. Failure to alert its OAC within this time frame shall not constitute a waiver of the Participating Local Government's right to seek recoupment of any deficiency in its allocation of Opioid Funds. 8. If any OAC concludes that a Participating Local Government's expenditure of its allocation of Opioid Funds did not comply with the Approved Purposes listed in Exhibit A, or the terms of this MOU, or that the Participating Local Government otherwise misused its allocation of Opioid Funds, the OAC may take remedial action against the alleged offending Participating Local Government. Such remedial action is left to the discretion of the OAC and may include withholding future Opioid Funds owed to the offending Participating Local Government or requiring the offending Participating Local Government to reimburse improperly expended Opioid Funds back to the OAC to be re -allocated to the remaining Participating Local Governments within that Region. 9. All Participating Local Governments and OAC shall maintain all records related to the receipt and expenditure of Opioid Funds for no less than five (5) years and shall make such records available for review by any other Participating Local Government or OAC, or the public. Records requested by the public shall be produced in accordance with Washington's Public Records Act RCW 42.56.001 et seq. Records requested by another Participating Local Government or an OAC shall be produced within twenty-one (21) days of the date the record request was received. This requirement does not supplant any Participating Local Government or OAC's obligations under Washington's Public Records Act RCW 42.56.001 et seq. D. Payment of Counsel and Litigation Expenses 1. The Litigating Local Governments have incurred attorneys' fees and litigation expenses relating to their prosecution of claims against the Pharmaceutical Supply Chain Participants, and this prosecution has inured to the benefit of all Participating Local Governments. Accordingly, a Washington 0 Page 38 of 76 Government Fee Fund ("GFF") shall be established that ensures that all Parties that receive Opioid Funds contribute to the payment of fees and expenses incurred to prosecute the claims against the Pharmaceutical Supply Chain Participants, regardless of whether they are litigating or non -litigating entities. 2. The amount of the GFF shall be based as follows: the funds to be deposited in the GFF shall be equal to 15% of the total cash value of the Opioid Funds. 3. The maximum percentage of any contingency fee agreement permitted for compensation shall be 15% of the portion of the Opioid Funds allocated to the Litigating Local Government that is a party to the contingency fee agreement, plus expenses attributable to that Litigating Local Government. Under no circumstances may counsel collect more for its work on behalf of a Litigating Local Government than it would under its contingency agreement with that Litigating Local Government. 4. Payments from the GFF shall be overseen by a committee (the "Opioid Fee and Expense Committee") consisting of one representative of the following law firms: (a) Keller Rohrback L.LP.; (b) Hagens Berman Sobol Shapiro LLP; (c) Goldfarb & Huck Roth Riojas, PLLC; and (d) Napoli Shkolnik PLLC. The role of the Opioid Fee and Expense Committee shall be limited to ensuring that the GFF is administered in accordance with this Section. 5. In the event that settling Pharmaceutical Supply Chain Participants do not pay the fees and expenses of the Participating Local Governments directly at the time settlement is achieved, payments to counsel for Participating Local Governments shall be made from the GFF over not more than three years, with 50% paid within 12 months of the date of Settlement and 25% paid in each subsequent year, or at the time the total Settlement amount is paid to the Trustee by the Defendants, whichever is sooner. 6. Any funds remaining in the GFF in excess of: (i) the amounts needed to cover Litigating Local Governments' private counsel's representation agreements, and (ii) the amounts needed to cover the common benefit tax discussed in Section C.8 below (if not paid directly by the Defendants in connection with future settlement(s), shall revert to the Participating Local Governments pro rata according to the percentages set forth in Exhibits B, to be used for Approved Purposes as set forth herein and in Exhibit A. 7. In the event that funds in the GFF are not sufficient to pay all fees and expenses owed under this Section, payments to counsel for all Litigating Local Governments shall be reduced on a pro rata basis. The Litigating Local Governments will not be responsible for any of these reduced amounts. Page 39 of 76 8. The Parties anticipate that any Opioid Funds they receive will be subject to a common benefit "tax" imposed by the court in In Re: National Prescription Opiate Litigation, United States District Court for the Northern District of Ohio, Case No. 1:17-and-02804-DAP ("Common Benefit Tax"). If this occurs, the Participating Local Governments shall first seek to have the settling defendants pay the Common Benefit Tax. If the settling defendants do not agree to pay the Common Benefit Tax, then the Common Benefit Tax shall be paid from the Opioid Funds and by both litigating and non -litigating Local Governments. This payment shall occur prior to allocation and distribution of Rinds to the Participating Local Governments. In the event that GFF is not fully exhausted to pay the Litigating Local Governments' private counsel's representation agreements, excess funds in the GFF shall be applied to pay the Common Benefit Tax (if any). E. General Terms 1. If any Participating Local Government believes another Participating Local Government, not including the Regional Abatement Advisory Councils, violated the terms of this MOU, the alleging Participating Local Government may seek to enforce the terms of this MOU in the court in which any applicable Settlement(s) was entered, provided the alleging Participating Local Government first provides the alleged offending Participating Local Government notice of the alleged violation(s) and a reasonable opportunity to cure the alleged violation(s). In such an enforcement action, any alleging Participating Local Government or alleged offending Participating Local Government may be represented by their respective public entity in accordance with Washington law. 2. Nothing in this MOU shall be interpreted to waive the right of any Participating Local Government to seek judicial relief for conduct occurring outside the scope of this MOU that violates any Washington law. In such an action, the alleged offending Participating Local Government, including the Regional Abatement Advisory Councils, may be represented by their respective public entities in accordance with Washington law. In the event of a conflict, any Participating Local Government, including the Regional Abatement Advisory Councils and its Members, may seek outside representation to defend itself against such an action. 3. Venue for any legal action related to this MOU shall be in the court in which the Participating Local Government is located or in accordance with the court rules on venue in that jurisdiction. This provision is not intended to expand the court rules on venue. 4. This MOU may be executed in two or more counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same instrument. The Participating Local Governments approve the use of electronic signatures for execution of this MOU. All use of electronic signatures 10 Page 40 of 76 shall be governed by the Uniform Electronic Transactions Act. The Parties agree not to deny the legal effect or enforceability of the MOU solely because it is in electronic form or because an electronic record was used in its formation. The Participating Local Government agree not to object to the admissibility of the MOU in the form of an electronic record, or a paper copy of an electronic document, or a paper copy of a document bearing an electronic signature, on the grounds that it is an electronic record or electronic signature or that it is not in its original form or is not an original. 5. Each Participating Local Government represents that all procedures necessary to authorize such Participating Local Government's execution of this MOU have been performed and that the person signing for such Party has been authorized to execute the MOU. [Remainder of Page Intentionally Left Blank — Signature Pages Follow] 11 Page 41 of 76 This One Washington Memorandum of Understanding Between Washington Municipalities is signed this day of , 2022 by: Name & Title On behalf of 4894-0031-1574, v. 2 12 Page 42 of 76 Back to Agenda EXHIBIT A Page 43 of 76 Back to Age= OPIOID ABATEMENT STRATEGIES PART ONE: TREATMENT A. TREAT OPIOID USE DISORDER (OUD Support treatment of Opioid Use Disorder (OUD) and any co-occurring Substance Use Disorder or Mental Health (SUD/MH) conditions, co -usage, and/or co -addiction through evidence -based, evidence -informed, or promising programs or strategies that may include, but are not limited to, the following: 1. Expand availability of treatment for OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction, including all forms of Medication -Assisted Treatment (MAT) approved by the U.S. Food and Drug Administration. 2. Support and reimburse services that include the full American Society of Addiction Medicine (ASAM) continuum of care for OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction, including but not limited to: a. Medication -Assisted Treatment (MAT); b. Abstinence -based treatment; c. Treatment, recovery, or other services provided by states, subdivisions, community health centers; non -for -profit providers; or for -profit providers; d. Treatment by providers that focus on OUD treatment as well as treatment by providers that offer OUD treatment along with treatment for other SUD/MH conditions, co -usage, and/or co -addiction; or e. Evidence -informed residential services programs, as noted below. 3. Expand telehealth to increase access to treatment for OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction, including MAT, as well as counseling, psychiatric support, and other treatment and recovery support services. 4. Improve oversight of Opioid Treatment Programs (OTPs) to assure evidence -based, evidence -informed, or promising practices such as adequate methadone dosing. 5. Support mobile intervention, treatment, and recovery services, offered by qualified professionals and service providers, such as peer recovery coaches, for persons with OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction and for persons who have experienced an opioid overdose. 6. Support treatment of mental health trauma resulting from the traumatic experiences of the opioid user (e.g., violence, sexual assault, human trafficking, or adverse childhood experiences) and family members (e.g., surviving family members after an overdose 1 Page 44 of 76 Back to Agenda or overdose fatality), and training of health care personnel to identity anct actaress sucn trauma. 7. Support detoxification (detox) and withdrawal management services for persons with OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction, including medical detox, referral to treatment, or connections to other services or supports. 8. Support training on MAT for health care providers, students, or other supporting professionals, such as peer recovery coaches or recovery outreach specialists, including telementoring to assist community -based providers in rural or underserved areas. 9. Support workforce development for addiction professionals who work with persons with OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction. 10. Provide fellowships for addiction medicine specialists for direct patient care, instructors, and clinical research for treatments. 11. Provide funding and training for clinicians to obtain a waiver under the federal Drug Addiction Treatment Act of 2000 (DATA 2000) to prescribe MAT for OUD, and provide technical assistance and professional support to clinicians who have obtained a DATA 2000 waiver. 12. Support the dissemination of web -based training curricula, such as the American Academy of Addiction Psychiatry's Provider Clinical Support Service-Opioids web - based training curriculum and motivational interviewing. 13. Support the development and dissemination of new curricula, such as the American Academy of Addiction Psychiatry's Provider Clinical Support Service for Medication -Assisted Treatment. B. SUPPORT PEOPLE IN TREATMENT AND RECOVERY Support people in treatment for and recovery from OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction through evidence -based, evidence -informed, or promising programs or strategies that may include, but are not limited to, the following: 1. Provide the full continuum of care of recovery services for OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction, including supportive housing, residential treatment, medical detox services, peer support services and counseling, community navigators, case management, and connections to community -based services. 2. Provide counseling, peer -support, recovery case management and residential treatment with access to medications for those who need it to persons with OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction. 2 Page 45 of 76 Back to Agenda 3. Provide access to housing for people with OUD and any co-occurring autxlvfq conditions, co -usage, and/or co -addiction, including supportive housing, recovery housing, housing assistance programs, or training for housing providers. 4. Provide community support services, including social and legal services, to assist in deinstitutionalizing persons with OUD and any co-occurring SUD/MH conditions, co - usage, and/or co -addiction. 5. Support or expand peer -recovery centers, which may include support groups, social events, computer access, or other services for persons with OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction. 6. Provide employment training or educational services for persons in treatment for or recovery from OUD and any co-occurring SUD/MH conditions, co -usage, and/or co - addiction. 7. Identify successful recovery programs such as physician, pilot, and college recovery programs, and provide support and technical assistance to increase the number and capacity of high -quality programs to help those in recovery. 8. Engage non -profits, faith -based communities, and community coalitions to support people in treatment and recovery and to support family members in their efforts to manage the opioid user in the family. 9. Provide training and development of procedures for government staff to appropriately interact and provide social and other services to current and recovering opioid users, including reducing stigma. 10. Support stigma reduction efforts regarding treatment and support for persons with OUD, including reducing the stigma on effective treatment. C. CONNECT PEOPLE WHO NEED HELP TO THE HELP THEY NEED (CONNECTIONS TO CARE) Provide connections to care for people who have — or are at risk of developing — OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction through evidence - based, evidence -informed, or promising programs or strategies that may include, but are not limited to, the following: 1. Ensure that health care providers are screening for OUD and other risk factors and know how to appropriately counsel and treat (or refer if necessary) a patient for OUD treatment. 2. Support Screening, Brief Intervention and Referral to Treatment (SBIRT) programs to reduce the transition from use to disorders. 3. Provide training and long-term implementation of SBIRT in key systems (health, schools, colleges, criminal justice, and probation), with a focus on youth and young adults when transition from misuse to opioid disorder is common. 3 Page 46 of 76 Back to Agenda 4. Purchase automated versions of SBIRT and support ongoing costs of the tectinology. 5. Support training for emergency room personnel treating opioid overdose patients on post -discharge planning, including community referrals for MAT, recovery case management or support services. 6. Support hospital programs that transition persons with OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction, or persons who have experienced an opioid overdose, into community treatment or recovery services through a bridge clinic or similar approach. 7. Support crisis stabilization centers that serve as an alternative to hospital emergency departments for persons with OUD and any co-occurring SUD/MH conditions, co - usage, and/or co -addiction or persons that have experienced an opioid overdose. 8. Support the work of Emergency Medical Systems, including peer support specialists, to connect individuals to treatment or other appropriate services following an opioid overdose or other opioid-related adverse event. 9. Provide funding for peer support specialists or recovery coaches in emergency departments, detox facilities, recovery centers, recovery housing, or similar settings; offer services, supports, or connections to care to persons with OUD and any co- occurring SUD/MH conditions, co -usage, and/or co -addiction or to persons who have experienced an opioid overdose. 10. Provide funding for peer navigators, recovery coaches, care coordinators, or care managers that offer assistance to persons with OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction or to persons who have experienced on opioid overdose. 11. Create or support school -based contacts that parents can engage with to seek immediate treatment services for their child; and support prevention, intervention, treatment, and recovery programs focused on young people. 12. Develop and support best practices on addressing OUD in the workplace. 13. Support assistance programs for health care providers with OUD. 14. Engage non -profits and the faith community as a system to support outreach for treatment. 15. Support centralized call centers that provide information and connections to appropriate services and supports for persons with OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction. 16. Create or support intake and call centers to facilitate education and access to treatment, prevention, and recovery services for persons with OUD and any co- occurring SUD/MH conditions, co -usage, and/or co -addiction. 4 Page 47 of 76 Back to Agenda i 17. Develop or support a National Treatment Availability Liearmgnouse — a multistate/nationally accessible database whereby health care providers can list locations for currently available in -patient and out -patient OUD treatment services that are accessible on a real-time basis by persons who seek treatment. D. ADDRESS THE NEEDS OF CRIMINAL -JUSTICE -INVOLVED PERSONS Address the needs of persons with OUD and any co-occurring SUD/MH conditions, co - usage, and/or co -addiction who are involved — or are at risk of becoming involved — in the criminal justice system through evidence -based, evidence -informed, or promising programs or strategies that may include, but are not limited to, the following: 1. Support pre -arrest or post -arrest diversion and deflection strategies for persons with OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction, including established strategies such as: a. Self -referral strategies such as the Angel Programs or the Police Assisted Addiction Recovery Initiative (PAARI); b. Active outreach strategies such as the Drug Abuse Response Team (DART) model; c. "Naloxone Plus" strategies, which work to ensure that individuals who have received naloxone to reverse the effects of an overdose are then linked to treatment programs or other appropriate services; d. Officer prevention strategies, such as the Law Enforcement Assisted Diversion (LEAD) model; e. Officer intervention strategies such as the Leon County, Florida Adult Civil Citation Network or the Chicago Westside Narcotics Diversion to Treatment Initiative; f. Co -responder and/or alternative responder models to address OUD-related 911 calls with greater SUD expertise and to reduce perceived barriers associated with law enforcement 911 responses; or g. County prosecution diversion programs, including diversion officer salary, only for counties with a population of 50,000 or less. Any diversion services in matters involving opioids must include drug testing, monitoring, or treatment. 2. Support pre-trial services that connect individuals with OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction to evidence -informed treatment, including MAT, and related services. 3. Support treatment and recovery courts for persons with OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction, but only if these courts provide referrals to evidence -informed treatment, including MAT. 5 Page 48 of 76 Back to Agenda 4. Provide evidence -informed treatment, including MAT, recovery support, or other appropriate services to individuals with OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction who are incarcerated in jail or prison. 5. Provide evidence -informed treatment, including MAT, recovery support, or other appropriate services to individuals with OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction who are leaving jail or prison have recently left jail or prison, are on probation or parole, are under community corrections supervision, or are in re-entry programs or facilities. 6. Support critical time interventions (CTI), particularly for individuals living with dual - diagnosis OUD/serious mental illness, and services for individuals who face immediate risks and service needs and risks upon release from correctional settings. 7. Provide training on best practices for addressing the needs of criminal -justice - involved persons with OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction to law enforcement, correctional, or judicial personnel or to providers of treatment, recovery, case management, or other services offered in connection with any of the strategies described in this section. E. ADDRESS THE NEEDS OF PREGNANT OR PARENTING WOMEN AND THEIR FAMILIES, INCLUDING BABIES WITH NEONATAL ABSTINENCE SYNDROME Address the needs of pregnant or parenting women with OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction, and the needs of their families, including babies with neonatal abstinence syndrome, through evidence -based, evidence -informed, or promising programs or strategies that may include, but are not limited to, the following: 1. Support evidence -based, evidence -informed, or promising treatment, including MAT, recovery services and supports, and prevention services for pregnant women — or women who could become pregnant — who have OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction, and other measures to educate and provide support to families affected by Neonatal Abstinence Syndrome. 2. Provide training for obstetricians or other healthcare personnel that work with pregnant women and their families regarding treatment of OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction. 3. Provide training to health care providers who work with pregnant or parenting women on best practices for compliance with federal requirements that children born with Neonatal Abstinence Syndrome get referred to appropriate services and receive a plan of safe care. 4. Provide enhanced support for children and family members suffering trauma as a result of addiction in the family; and offer trauma -informed behavioral health treatment for adverse childhood events. 6 Page 49 of 76 Back to Agend 5. Offer enhanced family supports and home -based wrap-arouna services to persons wi OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction, including but not limited to parent skills training. 6. Support for Children's Services — Fund additional positions and services, including supportive housing and other residential services, relating to children being removed from the home and/or placed in foster care due to custodial opioid use. PART TWO: PREVENTION F. PREVENT OVER -PRESCRIBING AND ENSURE APPROPRIATE PRESCRIBING AND DISPENSING OF OPIOIDS Support efforts to prevent over -prescribing and ensure appropriate prescribing and dispensing of opioids through evidence -based, evidence -informed, or promising programs or strategies that may include, but are not limited to, the following: 1. Training for health care providers regarding safe and responsible opioid prescribing, dosing, and tapering patients off opioids. 2. Academic counter -detailing to educate prescribers on appropriate opioid prescribing. 3. Continuing Medical Education (CME) on appropriate prescribing of opioids. 4. Support for non-opioid pain treatment alternatives, including training providers to offer or refer to multi -modal, evidence -informed treatment of pain. 5. Support enhancements or improvements to Prescription Drug Monitoring Programs (PDMPs), including but not limited to improvements that: a. Increase the number of prescribers using PDMPs; b. Improve point -of -care decision -making by increasing the quantity, quality, or format of data available to prescribers using PDMPs or by improving the interface that prescribers use to access PDMP data, or both; or c. Enable states to use PDMP data in support of surveillance or intervention strategies, including MAT referrals and follow-up for individuals identified within PDMP data as likely to experience OUD. 6. Development and implementation of a national PDMP — Fund development of a multistate/national PDMP that permits information sharing while providing appropriate safeguards on sharing of private health information, including but not limited to: a. Integration of PDMP data with electronic health records, overdose episodes, and decision support tools for health care providers relating to OUD. 7 Page 50 of 76 Back to Agenda I b. Ensuring PDMPs incorporate available overdose/naioxone aepioyment data, including the United States Department of Transportation's Emergency Medical Technician overdose database. 7. Increase electronic prescribing to prevent diversion or forgery. 8. Educate Dispensers on appropriate opioid dispensing. G. PREVENT MISUSE OF OPIOIDS Support efforts to discourage or prevent misuse of opioids through evidence -based, evidence - informed, or promising programs or strategies that may include, but are not limited to, the following: 1. Corrective advertising or affirmative public education campaigns based on evidence. 2. Public education relating to drug disposal. 3. Drug take -back disposal or destruction programs. 4. Fund community anti -drug coalitions that engage in drug prevention efforts. 5. Support community coalitions in implementing evidence -informed prevention, such as reduced social access and physical access, stigma reduction — including staffing, educational campaigns, support for people in treatment or recovery, or training of coalitions in evidence -informed implementation, including the Strategic Prevention Framework developed by the U.S. Substance Abuse and Mental Health Services Administration (SAMHSA). 6. Engage non -profits and faith -based communities as systems to support prevention. 7. Support evidence -informed school and community education programs and campaigns for students, families, school employees, school athletic programs, parent - teacher and student associations, and others. 8. School -based or youth -focused programs or strategies that have demonstrated effectiveness in preventing drug misuse and seem likely to be effective in preventing the uptake and use of opioids. 9. Support community -based education or intervention services for families, youth, and adolescents at risk for OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction. 10. Support evidence -informed programs or curricula to address mental health needs of young people who may be at risk of misusing opioids or other drugs, including emotional modulation and resilience skills. 11. Support greater access to mental health services and supports for young people, including services and supports provided by school nurses or other school staff, to 8 Page 51 of 76 Back to Agenda address mental health needs in young people that (when not property aaaressea) increase the risk of opioid or other drug misuse. H. PREVENT OVERDOSE DEATHS AND OTHER HARMS Support efforts to prevent or reduce overdose deaths or other opioid-related harms through evidence -based, evidence -informed, or promising programs or strategies that may include, but are not limited to, the following: 1. Increase availability and distribution of naloxone and other drugs that treat overdoses for first responders, overdose patients, opioid users, families and friends of opioid users, schools, community navigators and outreach workers, drug offenders upon release from jail/prison, or other members of the general public. 2. Provision by public health entities of free naloxone to anyone in the community, including but not limited to provision of intra-nasal naloxone in settings where other options are not available or allowed. 3. Training and education regarding naloxone and other drugs that treat overdoses for first responders, overdose patients, patients taking opioids, families, schools, and other members of the general public. 4. Enable school nurses and other school staff to respond to opioid overdoses, and provide them with naloxone, training, and support. 5. Expand, improve, or develop data tracking software and applications for overdoses/naloxone revivals. 6. Public education relating to emergency responses to overdoses. 7. Public education relating to immunity and Good Samaritan laws. 8. Educate first responders regarding the existence and operation of immunity and Good Samaritan laws. 9. Expand access to testing and treatment for infectious diseases such as HIV and Hepatitis C resulting from intravenous opioid use. 10. Support mobile units that offer or provide referrals to treatment, recovery supports, health care, or other appropriate services to persons that use opioids or persons with OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction. 11. Provide training in treatment and recovery strategies to health care providers, students, peer recovery coaches, recovery outreach specialists, or other professionals that provide care to persons who use opioids or persons with OUD and any co- occurring SUD/MH conditions, co -usage, and/or co -addiction. 12. Support screening for fentanyl in routine clinical toxicology testing. 9 Page 52 of 76 PART THREE: OTHER STRATEGIES I. FIRST RESPONDERS In addition to items C8, D1 through D7, H1, H3, and H8, support the following: 1. Current and future law enforcement expenditures relating to the opioid epidemic. 2. Educate law enforcement or other first responders regarding appropriate practices and precautions when dealing with fentanyl or other drugs. J. LEADERSHIP, PLANNING AND COORDINATION Support efforts to provide leadership, planning, and coordination to abate the opioid epidemic through activities, programs, or strategies that may include, but are not limited to, the following: 1. Community regional planning to identify goals for reducing harms related to the opioid epidemic, to identify areas and populations with the greatest needs for treatment intervention services, or to support other strategies to abate the opioid epidemic described in this opioid abatement strategy list. 2. A government dashboard to track key opioid-related indicators and supports as identified through collaborative community processes. 3. Invest in infrastructure or staffing at government or not -for -profit agencies to support collaborative, cross -system coordination with the purpose of preventing overprescribing, opioid misuse, or opioid overdoses, treating those with OUD and any co-occurring SUD/MH conditions, co -usage, and/or co -addiction, supporting them in treatment or recovery, connecting them to care, or implementing other strategies to abate the opioid epidemic described in this opioid abatement strategy list. 4. Provide resources to staff government oversight and management of opioid abatement programs. K. TRAINING In addition to the training referred to in various items above, support training to abate the opioid epidemic through activities, programs, or strategies that may include, but are not limited to, the following: 1. Provide funding for staff training or networking programs and services to improve the capability of government, community, and not -for -profit entities to abate the opioid crisis. 2. Invest in infrastructure and staffing for collaborative cross -system coordination to prevent opioid misuse, prevent overdoses, and treat those with OUD and any co- occurring SUD/MH conditions, co -usage, and/or co -addiction, or implement other 10 Page 53 of 76 Back to Agenda strategies to abate the opioid epidemic described in this opioia abatement strategy i1st (e.g., health care, primary care, pharmacies, PDMPs, etc.). L. RESEARCH Support opioid abatement research that may include, but is not limited to, the following: 1. Monitoring, surveillance, and evaluation of programs and strategies described in this opioid abatement strategy list. 2. Research non-opioid treatment of chronic pain. 3. Research on improved service delivery for modalities such as SBIRT that demonstrate promising but mixed results in populations vulnerable to opioid use disorders. 4. Research on innovative supply-side enforcement efforts such as improved detection of mail -based delivery of synthetic opioids. 5. Expanded research on swift/certain/fair models to reduce and deter opioid misuse within criminal justice populations that build upon promising approaches used to address other substances (e.g. Hawaii HOPE and Dakota 24/7). 6. Research on expanded modalities such as prescription methadone that can expand access to MAT. 11 Page 54 of 76 Local County Government Adams County Adams County Hatton Lind Othello Ritzville Back to Agenda % Allocation 0.1638732475% Washtucna County Total: 0.1638732475 % Asotin County Asotin County 0.4694498386% Asotin Clarkston County Total: 0.4694498386% Benton County Benton County 1.4848831892% Benton City Kennewick 0.5415650564% Prosser Richland 0.4756779517% West Richland 0.0459360490% County Total: 2.5480622463% Chelan County Chelan County 0.7434914485% Cashmere Chelan Entiat Leavenworth Wenatchee 0.2968333494% County Total: 1.0403247979 % Clallam County Clallam County 1.3076983401% Forks Port Angeles 0.4598370527% Sequim County Total: 1.7675353928% *** - Local Government appears in multiple countid�19e4of M Back to Agenda Local County Government % Allocation Clark County Clark County 4.5149775326% Battle Ground 0.1384729857% Camas 0.2691592724% La Center Ridgefield Vancouver 1.7306605325% Washougal 0.1279328220% Woodland*** Yacolt County Total: 6.7812031452 Columbia County Columbia County 0.0561699537% Dayton Starbuck County Total: Cowlitz County Cowlitz County Castle Rock 0.0561699537% 1.7226945990% Kalama Kelso 0.1331145270% Longview 0.6162736905 Woodland*** County Total: 2.4720828165 Douglas County Douglas County 0.3932175175% Bridgeport Coulee Dam*** East Wenatchee 0.0799810865% Mansfield Rock Island Waterville _ County Total: 0.4731986040% Ferry County Ferry County 0.1153487994% Republic County Total: 0.1153487994% *** - Local Government appears in multiple countid�lge519-of M Back to Agenda Local County Government Franklin County Franklin County Kahlotus Pasco Garfield Count Allocation 0.3361237144% 0.4278056066% County Total: 0.7639293210% Garfield County 0.0321982209% Pomeroy County Total: 0.0321982209 Grant County Grant County 0.9932572167% Coulee City Coulee Dam*** Electric City Ephrata George Grand Coulee Hartline Krupp Mattawa Moses Lake 0.2078293909% Quincy Royal City Soap Lake Warden Wilson Creek County Total: 1.2010866076% *** - Local Government appears in multiple counti! g190: ot76 EXHIBIT B Back to Agenda Local County Government % Allocation Grays Harbor County Grays Harbor County 0.9992429138% Aberdeen 0.2491525333 Cosmopolis Elma Hoquiam McCleary Montesano Oakville Ocean Shores Westport County Total: 1.2483954471 Island County Island County 0.6820422610% Coupeville I analaw Oak Harbor 0.2511550431% County Total: 0.9331973041% Jefferson County Jefferson County 0.4417137380% Port Townsend County Total: 0.4417137380% *** - Local Government appears in multiple countid�19e of M EXHIBIT B Back to Agenda Local County Government % Allocation King County King County 13.9743722662% Algona Auburn*** 0.2622774917% Beaux Arts Village Bellevue 1.1300592573 % Black Diamond Bothell*** 0.1821602716% Burien 0.0270962921% Carnation Clyde Hill Covington 0.0118134406% Des Moines 0.1179764526% Duvall Enumclaw*** 0.0537768326% Federal Way 0.3061452240% Hunts Point Issaquah 0.1876240107% Kenmore 0.0204441024% Kent 0.5377397676% Kirkland 0.5453525246% Lake Forest Park 0.0525439124% Maple Valley 0.0093761587% Medina Mercer Island 0.1751797481% Milton*** Newcastle 0.0033117880% Normandy Park North Bend Pacific*** Redmond 0.4839486007 % Renton 0.7652626920% Sammamish 0.0224369090% SeaTac 0.1481551278% Seattle 6.6032403816% Shoreline 0.0435834501% Skykomish Snoqualmie 0.0649164481% Tukwila 0.3032205739% Woodinville 0.0185516364% Yarrow Point County Total: 26.0505653608% *** - Local Government appears in multiple countiEj�,gof 76 EXHIBIT B Back to Agenda Local County Government % Allocation Kitsap County Kitsap County 2.6294133668% Bainbridge Island 0.1364686014% Bremerton 0.6193374389% Port Orchard 0.1009497162% Poulsbo 0.0773748246% County Total: 3.5635439479% Kittitas County Kittitas County 0.3855704683% Cle Elum Ellensburg 0.0955824915% Kittitas Roslyn _ South Cle Elum County Total: 0.4811529598% Klickitat County Klickitat County 0.2211673457% Bingen Goldendale _ White Salmon County Total: 0.2211673457% Lewis County Lewis County 1.0777377479% Centralia 0.1909990353% Chehalis Morton Mossyrock Napavine Pe Ell Toledo _ Vader _ Winlock County Total: 1.2687367832% *** - Local Government appears in multiple countid�lgeYi%of M EXHIBIT B Back to Agenda Local County Government % Allocation Lincoln County Lincoln County 0.1712669645% Almira Creston Davenport Harrington Odessa Reardan Sprague Wilbur County Total: 0.1712669645 % Mason County Mason County 0.8089918012% Shelton 0.1239179888% County Total: 0.9329097900% Okanogan County Okanogan County 0.6145043345% Brewster Conconully Coulee Dam*** Elmer City Nespelem Okanogan Omak Oroville Pateros Riverside Tonasket Twisp Winthrop County Total: 0.6145043345 % Pacific County Pacific County 0.4895416466% Ilwaco Long Beach Raymond South Bend County Total: 0.4895416466% *** - Local Government appears in multiple countid�lgeEWW76 EXHIBIT B Back to Agenda Local County Government % Allocation Pend Oreille County Pend Oreille County 0.2566374940% Metaline Metaline Falls Newport County Total: 0.2566374940% Pierce County Pierce County 7.2310164020% Auburn*** 0.0628522112% Bonney Lake 0.1190773864% Buckley Carbonado DuPont Eatonville Edgewood 0.0048016791% Enumclaw*** 0.0000000000 Fife 0.1955185481 Fircrest Gig Harbor 0.0859963345% Lakewood 0.5253640894% Milton*** Orting Pacific*** Puyallup 0.3845704814% Roy Ruston South Prairie Steilacoom Sumner 0.1083157569% Tacoma 3.2816374617% University Place 0.0353733363% Wilkeson County Total: 12.0345236870% San Juan County San Juan County 0.2101495171% Friday Harbor County Total: 0.2101495171% *** - Local Government appears in multiple counting of M EXHIBIT B Back to Agenda Local County Government % Allocation Skagit County Burlington 0.1146861661% Concrete Hamilton La Conner Lyman Mount Vernon 0.2801063665% Sedro-Woolley 0.0661146351% County Total: 1.6910058544% Skamania County Skamania County 0.1631931925% North Bonneville Stevenson County Total: 0.1631931925% Snohomish County Snohomish County 6.9054415622% Arlington 0.2620524080% Bothell*** 0.2654558588% Brier Darrington Edmonds 0.3058936009% Everett 1.9258363241 Gold Bar Granite Falls Index Lake Stevens 0.1385202891% Lynnwood 0.7704629214% Marysville 0.3945067827% Mill Creek 0.1227939546% Monroe 0.1771621898% Mountlake Terrace 0.2108935805% Mukilteo 0.2561790702% Snohomish 0.0861097964% Stanwood Sultan Woodway _ County Total: 11.8213083387% *** - Local Government appears in multiple countiEj�,geY'got76 EXHIBIT B Back to Agenda Local County Government % Allocation Spokane Count Spokane County 5.5623859292% Airway Heights Cheney 0.1238454349 Deer Park Fairfield Latah Liberty Lake 0.0389636519% Medical Lake Millwood Rockford Spangle Spokane 3.0872078287% Spokane Valley 0.0684217500% Waverly County Total: 8.8808245947 Stevens County Stevens County 0.7479240179% Chewelah Colville Kettle Falls Marcus Northport Springdale County Total: 0.7479240179 Thurston County Thurston County 2.3258492094% Bucoda Lacey 0.2348627221% Olympia 0.6039423385% Rainier Tenino Tumwater 0.2065982350% Yelm County Total: 3.3712525050% Wahkiakum County Wahkiakum County 0.0596582197% Cathlamet County Total: 0.0596582197% *** - Local Government appears in multiple countiEj�,ggEl®f 76 Back to Agenda Local County Government % Allocation Walla Walla County Walla Walla County 0.5543870294% College Place Prescott Waitsburg Walla Walla 0.3140768654% County Total: 0.8684638948% Whatcom County Whatcom County 1.3452637306% Bellingham 0.8978614577% Blaine Everson Ferndale 0.0646101891% Lynden 0.0827115612% Nooksack Sumas County Total: 2.3904469386% Whitman County Whitman County 0.2626805837% Albion Colfax Colton Endicott Farmington Garfield LaCrosse Lamont Malden Oakesdale Palouse Pullman 0.2214837491% Rosalia St. John Tekoa Uniontown County Total: 0.4841643328% *** - Local Government appears in multiple countij�,gggpf 76 Back to Agenda Local County Government % Allocation Yakima County Yakima County 1.9388392959% Grandview 0.0530606109% Granger Harrah Mabton Moxee Naches Selah Sunnyside 0.1213478384% Tieton Toppenish Union Gap Wapato Yaki m .6060410539 Zillah County Total: 2.7192887991% *** - Local Government appears in multiple countid�19842'f 6 Back to Agenda Exhibit C Page 67 of 76 KING COUNTY REGIONAL AGREEMENT King County intends to explore coordination with its cities and towns to facilitate a Regional Agreement for Opioid Fund allocation. Should some cities and towns choose not to participate in a Regional Agreement, this shall not preclude coordinated allocation for programs and services between the County and those cities and towns who elect to pursue a Regional Agreement. As contemplated in C.5 of the MOU, any Regional Agreement shall comply with the terms of the MOU and any Settlement. If no Regional Agreement is achieved, the default methodology for allocation in CA of the MOU shall apply. Page 68 of 76 Back to Agenda City of Port Orchard OW216 Prospect Street Port Or1 (36 , 87 -4407 ORCHARD. cityhall ar portorchardwa.gov � (360) 876-4407 www. ortorchardwa. ov Agenda Staff Report Agenda Item No.: Business Item 7C Subject: Adoption of a Resolution Approving the Purchase of Equipment for the Equipment Rental Revolving Fund 500 Meeting Date: July 9, 2024 Prepared By: M. Brown, Police Chief Summary: The Police Department has identified the need to purchase one (1) emergency response vehicle (replacing a vehicle removed from the fleet early due to mechanical issues). Ordinance No. 012-24 provided an additional $73,000 to Fund 500 to reflect this modification to the fleet. Consistent with the City's Procurement Procedures Policies adopted by Resolution No. 036-22, as amended, staff determined that purchasing through a contract procured by the Arizona State Department of Administration ("ADA") would provide the City with competitive pricing for these purchases. The City maintains an interlocal agreement with the ADA to permit the City to purchase goods that are procured by ADA ("Contract No. C115-22"). For this purchase the City's Police Department identified PFVT Motors, Inc., as an approved vendor via ADA Contract No. CTR059322 ("ADA Contract"). Staff reviewed the procurement process utilized by ADA for the ADA Contract and confirmed the applicable procurement requirements were met and obtained all necessary documentation regarding procurement. On June 27, 2024, staff requested and received a quote of $49,450.00 (applicable tax not included) from PFVT Motors, Inc., for one (1) 2024 Ford Police Interceptor Utility. The estimated tax of 9.3% ($4,645.35) would be paid upon licensing the vehicles in Washington State. Further, staff have identified additional expenses associated with emergency response vehicles that are anticipated after delivery of the vehicle and are necessary to prepare the vehicle for service. These expenses include licensing, the purchase/installation of emergency lighting and equipment, and City logo decals. These items are all estimated to cost $22,000 per vehicle dependent upon the vehicle outfitting (within the $818,000 ER&R budget authority for patrol vehicle purchases). These items are not included in the ADA Contract. Staff have followed the City's Procurement Policies for these items and have a current vendor contract. Page 69 of 76 Back to Agenda 'C asp z- v, 2 The City's Procurement Policies require City Council authorization for purchasing budgeted items that cost $35,0000 or more. On July 1, 2024, staff completed the Interlocal Agreement Purchase Checklist for PVFT Motors, Inc., and confirmed this purchase meets RCW 39.34.030 and the City's Procurement Policies Recommendation: Staff recommend adopting a resolution, providing City Council approval of the purchase of a vehicle from PVFT Motors, Inc., under ADA Contract No. CTR059322. Relationship to Comprehensive Plan: N/A Has this item been presented to Committee/Work Study? If so, which one: No Motion for consideration: "I move to adopt a Resolution providing City Council approval of the purchase of a vehicle from PVFT Motors, Inc., under ADA Contract No. CTR059322, and authorizing the Mayor to execute all necessary documents to effectuate the purchase" Fiscal Impact: $54,095.35, including estimated applicable sales tax. Outfitting of the vehicle and miscellaneous expenses are included in the 2023-2024 Budget (500.10.594.2160). Licensing/emergency lighting and equipment/logo decals (not included in this approval but listed as a component cost of the emergency response vehicles for transparency): Estimated at $25,050.82, including tax. Alternatives: Do not approve and provide alternative guidance. Attachments: Resolution Exhibit A: Quote from PVFT Motors, Inc. ILA Checklist Page 70 of 76 Back to Agenda RESOLUTION NO. A RESOLUTION OF THE CITY OF PORT ORCHARD, WASHINGTON, APPROVING THE PURCHASE OF AN EMERGENCY RESPONSE VEHICLE FROM THE EQUIPMENT RENTAL REVOLVING FUND 500 AND DOCUMENTING PROCUREMENT PROCEDURES. WHEREAS, one (1) emergency response vehicle must be replaced in 2024 as part of the Equipment Rental and Revolving Fund 500 (ER&R) replacement process; and WHEREAS, the City has an interlocal agreement with Arizona State Department of Administration (ADA) (City Contract No. C115-22) which allows the City to utilize the contracts procured by ADA for services and purchases, so long as the City confirms the contract complies with all applicable statutory procurement requirements for the particular purchase or service, per RCW 39.34.030; and WHEREAS; consistent with City Contract No. C115-22 and the City's Procurement Procedures Policies, adopted as Resolution No. 036-22, as amended, the City's Police Department identified PFVT Motors, Inc., as an approved vendor for the emergency response vehicles, awarded via ADA Contract No. CTR059322 (ADA Contract); and WHEREAS, Staff reviewed the procurement process utilized by the ADA for the ADA Contract, confirmed the procurement requirements were met, and obtained all necessary documentation from DES and the vendor regarding procurement; and WHEREAS, on June 27, 2024, staff requested and received a quote from PFVT Motors, Inc., of $49,450.00 (applicable tax not included) for one (1) 2024 Ford Police Interceptor Utility. The estimated tax of 9.3% ($4,645.35) will be paid upon licensing the vehicles in Washington State; and WHEREAS, on July 1, 2024, the City's Police Department completed the Interlocal Agreement Purchase Checklist for the selected vendor and confirmed the quote was consistent with the ADA Contract; and WHEREAS, the 2023-2024 Biennial Budget includes $818,00 in Equipment Rental and Revolving Fund 500 (ER&R) for the purchase of emergency response vehicles; and WHEREAS, the City's Procurement Policies require City Council authorization for purchasing budgeted items that cost $35,000 or more and for unbudgeted purchases; and WHEREAS, the PFVT Motors, Inc., quote, attached as Exhibit A, is for the purchase of ER&R Equipment in an amount that exceeds the $35,000 authorization limit; and WHEREAS, the Port Orchard City Council, at the 2015 recommendation of the State Auditor's Office, wishes to document their selection/procurement process as described herein for this purchase by Resolution; now, therefore, Page 71 of 76 Back to Agenda _ Page 2 of 2 THE CITY COUNCIL OF THE CITY OF PORT ORCHARD, WASHINGTON, HEREBY RESOLVES /_ -11falwGJ►T53 THAT: It is the intent of the Port Orchard City Council that the recitals set forth above are hereby adopted and incorporated as findings in support of this Resolution. THAT: The City Council approves the purchase from PFVT Motors, Inc., of one (1) Police Interceptor Utility vehicles in the amount of $49,450.00 (applicable tax not included). The Mayor or his designee is authorized to take all actions necessary to effectuate the purchase, consistent with this authorization. THAT: The Resolution shall take full force and effect upon passage and signatures hereon. PASSED by the City Council of the City of Port Orchard, SIGNED by the Mayor and attested by the City Clerk in authentication of such passage on this 91" day of July 2024. ATTEST: Brandy Wallace, MMC, City Clerk Robert Putaansuu, Mayor Page 72 of 76 PFVT MOTORS, LLC. 9130 W Bell Rd Peoria AZ 85382 CLIFF KUJALA Government Account Team Direct: 623-239-0340 City of Port Orchard Matt Brown 216 Prospect Street Port Orchard WA 98366 mbrown@portorchardwa.gov 360-876-1700 ❑ 18" H.D.STEEL WHEELS L 255/60RI8A/S BSW POLICE TIRES ❑ CLASS III HITCH RECEIVER ❑ DUAL EXHAUST SYSTEM Li DUAL POWER MIRRORS n FULL SIZE 18" SPARE WrrPMS ❑HEADLAMPS -AUTO, LED LOW/HIGH INCLUDES FRONT HOUSING (W/ LED WIG -WAG) ❑ KEY LOCKS (DR/PASS/LFTGT) ❑ PRIVACY GLASS 2ND/3RD ROW EQU)PM ENT GROUP 500A OPTIONAL EOUIPM£NTIOTHF R 6f1lAY7•aSERIIE Drive one. Address:Invoice Same POLICE INTERCEPTOR 2024 UTILITY AWD EXTERIOR 119" WHEELBASE AGATE BLACK METALLIC 3,3LTI-VCT V6 FFV ENGINE INTERIOR 10-SPEED AUTO TRANSMISSION EBONY CLOTH FRTNINYL REAR ❑ 35/30/35 SPLIT VINYL REAR Li A/C W/AUTOMATIC CLIMATE CONTROL, DUAL ZONE ❑ BLACK VINYL FLOOR COVERING ❑ CERTIFIED SPEEDOMETER u CLOTH BUCKET FRONT SEATS n CONSOLE MOUNTING PLATE ❑ ENGINE HOUR / IDLE METER u HTD SANITIZATION SOLUTION n PWR DR SEAT/6-WAY/M LUMBAR ❑ RED/WHITE TASK LIGHTING ❑ SEATBACK INTRUSION PLATES u TILT/TELESCOPING STEERING WHL W/ 4 CONFIGURABLE LATCHING SWITCHES a3L TI-VCT V6 FFV ENGINE - 2,830.00 10-SPEEDAUTO TRANSMISSION NO CHARGE HID PLUNG W/R HNDL INOPERABLE 160,00 CARGO DOME LAMP-RED/WHITE 50.00 H8 AGM BATTERY 110.00 REAR CAMERA ON DEMAND 230.00 50 STATE EMISSIONS NO CHARGE COURTESY LAMP DISABLE 25.00 POLICE ENGINE IDLE FEATURE 260.00 SPOT LAMP LED DR - WHELEN 420.00 KEYLESS ENTRY - 4 FOBS 340.00 4G LTE WI-FI HOTSPOT CREDIT - 20.00 WIRING GRILL/LAMP/SIREN/SPKRS 50,00 NOISE SUPPRESSION BOND STRAPS 100.00 OBD-II SPLIT CONNECTOR 55.00 SIDE MARKER LIGHTS SKULL CAPS 290.00 Customer raapoftNbfe for regisbatian and sales tax in home state. CTRO69322-1 Phase 2 PdcIng VIN Quoted 1FM5K8AB4RGA75685 u UNIVERSAL TOP TRAY FUNCTIONAL Li AM/FM/MP3/BLUETOOTH & USB n COLUMN MOUNTED SHIFTER ❑ ENGINE OIL COOLER ❑ FULL-TIME ALL WHEEL DRIVE SYSTEM n HEAVY DUTY SUSPENSION ❑ HEAVY-DUTY 80-AMP BATTERY u INTERIORTRUNK/LIFTGATE RELEASE ❑ POLICE BRAKES: 4 WHL DISC W/ ABS & TRACTION CONTROL u POWER STEERING W/EPAS n REAR VIEW CAMERA ❑ TRANSMISSION OIL COOLER Back to Agenda Quote Date 6/27/2024 Valid Until 7/2/2024 Contract CTRO59322-1 Phase 2 PO Lead Time In Stack Delivery Systems for Public Safety Lakewood WA TRANSMISSION-IO-SPEED AUT( SAFETY/SECURITY L 75 MPH REAR -CRASH TESTED r ADVANCETRAC- WITH RSC® E AIRBAGS - FRONT AND SIDE E AIRBAGS - SAFETY CANOPY L SOS POST CRASH ALERT SYS F TIRE PRESSURE MONITOR SYS WARRANTY L 3 YR/36K MILE BUMPER -TO - BUMPER WARRANTY E 5 YR/100K MILE POWERTRAIN CARE EXTENDED SERVICE PLAN (ZERO DEDUCTIBLE) POL WIRE HARNESS CONNECTOR KIT 185,00 .POLICE WIRING KIT REAR .POLICE WIRING KIT FRONT PERIMETER ALERT 675.00 REAR DR HNDLAND LOCKS INOPR NO CHARGE DEFLECTOR PLATE 335.00 PRE -COLLISION ASSIST 145.00 REAR CONSOLE MOUNTING PLATE 45.00 REAR TAILLAMP HOUSING 60.00 REAR VIEW MIRROR W/REAR CAMERA NO CHARGE FLEX -FUEL CAPABILITY FRONT LICENSE PLATE BRACKET NO CHARGE P 47.165.00 OPTIONS / OTHER $ 685.00 FORD DESTINATION AND DELIVERY $ 1,595.00 Subtotal MSO/ODO Trade In Extended Warranty Freight Flooring Sales Tax 0.00% Tire Tax 5 Total Per Unit less Trade -In Quantity of Units Sale Total $ 49,445,00 $ $ $ $ $ $ - $ 5.00 $ 49,450.00 '• t r Above information is not an invoice and only an estimate ofsgrvimsjgoodr. described above Quote subject to change Please confirm your acceptance of this quote by signing this document, and returning your- . PO. t Jr T.d If you have any questions concerning this quote, contact Cliff Kujala Thank you for your business! 9130 W Bell Road, Peoria AZ 85382 623-239-0340 - cliff.kujala@governmentautosales.com 6/27/2024 11:33:23 Page 73 of 76 CITY OF PORT ORCHARD Back to Agenda PURCHASES THROUGH INTERLOCAL AGREEMEN 1 City Contract No.: 115-22 Interlocal Agreement with the Host Agency (government agency or Purchasing Co -Op name): Arizona Department of Administration Item Description: Ford Police Interceptor Utility vehicles Do you have an Interlocal agreement signed with the Contract (host) Agency? ❑X If yes, where is it filed: Clerks Office ❑ If no, get a mutually signed Agreement in place before you continue. ADA Contract No.#: Contract No. CTR059322 If you have an Office of State Procurement (OSP) contract number you may skip the remainder of this test because the OSP contracts comply with remaining requirements and retain the documentation on hand for SAO to review in the OSP offices. Is this a technology contract? ❑ If yes, do your own rules allow for technology contracts to be negotiated? ❑ If your own rules allow for negotiated IT contracts, you can skip this test. Is this a services contract? ❑ If yes, do your own rules allow services to be negotiated? ❑ If your own rules allow for negotiated services, you can skip the remainder of the test. Are you using this as only one of multiple quotes, for a small purchase? ❑ If yes, you can skip the remainder of the test. Your purchase will not mandate the sealed bid rules. ❑ If no, complete the remainder of the checklist. Checklist for Re uired Compliance Is the Host agency a public agency'? ❑X Yes ❑ No If Yes, what state laws apply to Host Agency: Arizona Does the host agency have a requirement ❑X Yes ❑ No See RFP on file. to run a newspaper ad in their local paper and did they comply Did they list on the public agency's ❑X Yes ❑ No See RFP on file. website? Did the bid & award comply with the ® Yes ❑ No See documentation on file. Host agency's state procurement laws? 1 RCW 39.34.020 (1), "public agency' means any agency, political subdivision, or unit of local government of this state including, but not limited to, municipal corporations, quasi municipal corporations, special purpose districts, and local service districts; any agency of the state government; any agency of the United States; any Indian tribe recognized as such by the federal government; and any political subdivision of another state Page 74 of 76 Back to Agenda ORCHARD Equipment Rental & Revolving Fund Purchase Request Form RCW 43.19.648 — Requires all local governments to convert their vehicle fleets to electricity or biofuel. Local governments are required to transition all vehicles to electricity or biofuels to the extent practicable. WAC 194-29-030 provides further guidance regarding this issue. If it is not practical for local governments to use electricity or biofuel for police, fire or emergency response vehicles, including utility vehicles frequently used for emergency response, it is encouraged to consider alternate fuels and vehicle technologies to displace gasoline and diesel fuel use. Please attach the quote for vehicle / equipment. Description of item: 2024 Ford Police Interceptor Utility AWD Procurement method: City contract no 115-22 interlocal agreement with host agency — Arizona Department of Administration. ADA Contract No CTR059322. City Contract No 17-23 — Systems for Public Safety. Department Water Sewer Storm Street Public Works DCD Police Admin x Addition or Replacement Addition to Fleet Replacement Vehicle / Equipment being replaced: ER&R #1040 x Fleet Standardization x Requested Vehicle / Equipment follows fleet standardization Requested Vehicle / Equipment DOES NOT follow Standardization. List items that are not fleet standard and reason for addition. Requested Vehicle / Equipment does not have a standard Cost $54,095.35 Fleet standard cost Additional cost for consideration: Build for patrol vehicle, license and registration TOTAL $22178.60 $78973.40 Page 75 of 76 Back to Agenda STANDARDS FOR VEHICLES Police Department Standard Vehicle Model Chassis Drive Train Color Graphics Accessories Ford Sedans Automatic Black City Decal Lights SUV 2WD Vehicle Number Radios 4WD Antennas AWD Public Works and Planning Standard Truck Model Chassis Cab Size Drive Train Color Graphics Accessories Ford 1/2 Ton Regular Automatic White City Logo Lights 3/4 Ton Extended 2WD Truck Number Radios 1 Ton Crew Cab 4WD Antennas Tool Boxes Administration and Planning Standard Vehicle Tvpe Chassis Drive Train Color Graphics Accessories Electric Sedans Automatic White City Logo Lights Biofuel SUV 2WD Vehicle Number Radios 4WD Antennas AWD Reviewed by Mechanic: Name Date I have reviewed the vehicles / equipment listed above and request approval for purchase. _July 3, 2024 Departm nt Director Date Approved for purchase by: ER&R Representative Date Page 76 of 76