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HomeMy WebLinkAboutReg 2022-09-19 COMPLETE AGENDA PACKETTukwila City Council Agenda •••• REGULAR MEETING ❖ �q J��1LA A. sem: 1, `''�r 1905 Allan Ekberg, Mayor Councilmembers: + Kathy Hougardy + De'Sean Quinn David Cline, City Administrator + Kate Kruller + Cynthia Delostrinos Johnson Thomas McLeod, Council President ❖Mohamed Abdi ❖ Tosh Sharp THE MEETING WILL ON-SITE THE Monday, September BE CONDUCTED PRESENCE WILL PHONE NUMBER For Technical 19, 2022; BOTH ON-SITE AT TUKWILA CITY HALL AND ALSO VIRTUALLY. BE IN THE COUNCIL CHAMBERS (6200 SOUTHCENTER BOULEVARD). FOR THE PUBLIC TO PARTICIPATE IN THE MEETING IS: 1-253-292-9750, ACCESS CODE: 670077847#. Click here to: Join Microsoft Teams Meeting Support during the meeting call: 1-206-433-7155. 7:00 PM • Ord #2680 • Res #2050 1. CALL TO ORDER / PLEDGE OF ALLEGIANCE / ROLL CALL 2. LAND ACKNOWLEDGEMENT The City of Tukwila is located on the ancestral lands of the Coast Salish people. We acknowledge their continuing connections to land, waters and culture. We pay our respects to their elders past, present and emerging. 3. PUBLIC COMMENTS— including comment on items both on and not on the meeting agenda Those wishing to provide public comments may verbally address the City Council both on-site at Tukwila City Hall or via phone or Microsoft Teams for up to 5 minutes for items both on and not on the meeting agenda. To provide comment via phone or Microsoft Teams, please email citycouncil@tukwilawa.gov with your name and topic by 5:00 PM on the meeting the date. Please clearly indicate that your message is for public comment during meeting, and you will receive further instructions. 4. PRESENTATION National Recognition Day for Prisoners of War (POW)/Missing in Action (MIA). Burien Elks Pg.1 5. CONSENT AGENDA a. Approval of Minutes: 9/12/22 (Special Mtg.) b. Approval of Vouchers c. A resolution authorizing the cancellation of outstanding General Fund claims and payroll checks and Municipal Court checks. [Reviewed and forwarded to Consent by the Finance and Governance Committee on 9/12/22.] d. A resolution ordering the cancellation of past due accounts receivable. [Reviewed and forwarded to Consent by the Finance and Governance Committee on 9/12/22.] e. Authorize the expenditue of $100,000 from the State Seizure Fund to contribute toward a Valley Special Weapons and Tactics (VSWAT) armored vehicle. [Reviewed and forwarded to Consent by the Community Services and Safety Committee on 9/12/22.] Pg.3 Pg.13 Pg.25 (continued..) REGULAR MEETING September 19, 2022 Page 2 6. UNFINISHED BUSINESS a. Authorize the Mayor to sign an agreement with Recology King County, Inc., for 2023-2033 comprehensive garbage, recyclables, and compostables collection. b. Authorize the Mayor to sign a contract with Miller Hayashi for the Test -to -Fit phase for the Public Works Shops Maintenance and Engineering Building Project, in the amount of $188,727.00. J> Please refer to 9/12/22 C.O. W. packet. Q c. Authorize the Mayor to sign the Allocation Agreement and Participation Form relating to the Local Government Opioid Settlement to mitigate harm associated with the Pharmaceutical Supply Chain who manufacture and dispense prescription opioids. Pg.43 Pg.125 Pg.127 7. NEW BUSINESS 8. REPORTS a. Mayor b. City Council c. Staff - City Administrator Report and Monthly Construction and Budget Report Pg.263 9. MISCELLANEOUS 10. EXECUTIVE SESSION 11. ADJOURNMENT This agenda is available at www.tukwilawa.gov, and in alternate formats with advance notice for those with disabilities. Remote Tukwila Council meetings are audio taped (and video taped as of 9/14/20). Available at www.tukwilawa.gov) WELCOME TO THE TUKWILA CITY COUNCIL MEETING The Tukwila City Council encourages community participation in the local government process and welcomes attendance and public comment at its meetings. MEETING SCHEDULE Regular Meetings are held at 7:00 p.m. on the 1st and 3rd Mondays of each month. The City Council takes formal action in the form of motions, resolutions and ordinances at Regular Meetings. Committee of the Whole Meetings are held at 7:00 p.m. on the 2nd and 4th Mondays of each month. The City Council considers current issues, discusses policy matters in detail, and coordinates the work of the Council at Committee of the Whole meetings. PUBLIC COMMENTS Members of the public are given the opportunity to address the Council for up to 5 minutes on items both on and not on the meeting agenda during Public Comments. The City Council will also accept comments on an agenda item when the item is presented in the agenda, but speakers are limited to commenting once per item each meeting. When recognized by the Presiding Officer, please go to the podium if on-site or turn on your microphone if attending virtually and state your name clearly for the record. The City Council appreciates hearing from you but may not respond or answer questions during the meeting. Members of the City Council or City staff may follow up with you following the meeting. PUBLIC HEARINGS Public Hearings are required by law before the Council can take action on matters affecting the public interest such as land -use laws, annexations, rezone requests, public safety issues, etc. The City Council Rules of Procedure provide the following guidelines for Public Hearings: 1. City staff will provide a report summarizing and providing context to the issue at hand. 2. The proponent shall speak first and is allowed 15 minutes to make a presentation. 3. The opponent is then allowed 15 minutes to make a presentation. 4. Each side is then allowed 5 minutes for rebuttal. 5. After the proponents and opponents have used their speaking time, the Council may ask further clarifying questions of the speakers. 6. Members of the public who wish to address the Council on the hearing topic may speak for 5 minutes each. 7. Speakers are asked to sign in on forms provided by the City Clerk. 8. The Council may ask clarifying questions of speakers and the speakers may respond. 9. Speakers should address their comments to the City Council. 10. If a large number of people wish to speak to the issue, the Council may limit the total amount of comment time dedicated to the Public Hearing. 11. Once the Presiding Officer closes the public hearing, no further comments will be accepted, and the issue is open for Councilmember discussion. 12. Any hearing being held or ordered to be held by the City Council may be continued in the manner as set forth by RCW 42.30.100. For more information about the City Council, including its complete Rules of Procedure, please visit: https://www.tukwilawa.gov/departments/city-council/ National POW/MIA Recognition Day National POW/MIA Recognition Day was established in 1979 through a proclamation signed by President Jimmy Carter. Since then, each subsequent president has issued an annual proclamation commemorating the third Friday in September as National POW/MIA Recognition Day. A national -level ceremony is held on every National POW/MIA Recognition Day. Traditionally held at the Pentagon, it features members from each branch of military service and participation from high-ranking officials. In addition to the national -level ceremony, observances of National POW/MIA Recognition Day are held across the country on military installations, ships at sea, state capitols, schools and veterans' facilities. THEIR Sacrifice OUR Pledge investigate recover National identify returned r�?l PO'W/MIA Recognition Day w ,,..,.-° September 16, 2022 I #theirsacrif ice I www.dpaa.mil 1 2 COUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Mayor's review Council review 09/19/22 CW ITEM INFORMATION ITEM No. 5.C. 3 STAFF SPONSOR: VICKY CARLSEN ORIGINAL AGENDA DATE: 09/19/22 AGENDA ITEM TITLE Resolution authorizing the cancellation of abandoned or unclaimed property for 2022 reporting. CATEGORY ❑ Discussion Mtg Date ❑ Motion Mtg Date ' Resolution ❑ Ordinance Mtg Date ❑ Bid Award NLtg Date ❑ Public Hearing Mtg Date ❑ Other Mtg Date Altg Date 09/19/22 SPONSOR ❑Council ❑Mayor HR ❑DCD VA Finance Fire TS P&R ❑Police ❑PIF ❑Court SPONSOR'S The resolution authorized the cancellation of abandoned funds (unclaimed property). SUMMARY Unclaimed property will be reported to the Department of Revenue (DOR) Unclaimed Property Section. The Council is being asked to approve the resolution for cancellation of unclaimed property. REVIEWED BY ❑ C.O.W. Mtg. ❑ CDN Comm ❑ Trans &Infrastructure ❑ Arts Comm. DATE: 09/12/22 VA Finance Comm. ❑ Public Safety Comm. Comm. ❑ Planning Comm. CHAIR: QUINN ❑ Parks COMMITTEE RECOMMENDATIONS: SPONSOR/ADMIN. COMMITTEE Finance Unanimous Approval; Forward to Consent on 09/19/22 COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $ $ Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION MTG. DATE ATTACHMENTS 9/19/22 Informational Memorandum dated 9/12/22 Resolution in draft form with attachment Attachment A - 2022 Unclaimed Property Summary Detail Report Minutes from the Finance Committee meeting 09/12/22 3 4 City of Tukwila INFORMATIONAL MEMORANDUM Allan Ekberg, Mayor TO: Finance & Governance Committee FROM: Vicky Carlsen, Finance Director BY: Cindy Wilkins, Fiscal Specialist CC: Mayor Ekberg DATE: September 12, 2022 SUBJECT: 2022 Reporting of Abandoned Property to the Washington State Department of Revenue Unclaimed Property Section ISSUE Annual write-off of outstanding and unredeemed accounts payable and payroll claims. BACKGROUND Each year by November 1st, the City of Tukwila reports abandoned or unclaimed property that is owed either to individuals or business vendors to the Washington State Department of Revenue Unclaimed Property Section and removes these items from the accounting records. All local governments are required to report unclaimed property except unclaimed restitution. Normal restitution is then reported each year by the County Treasurer to the State Treasurer. Current Finance Department policy dictates that all abandoned or unclaimed property be reported annually to the Washington State Department of Revenue Unclaimed Property Section through the Council approved resolution process. DISCUSSION For the 2022 unclaimed property report year, reporting of abandoned or unclaimed property totals $8,723.15 comprised of General Fund Accounts Payable Claims checks, Payroll checks, and Court checks. To the extent possible, those individuals and businesses with unclaimed accounts payable claims and payroll checks have been notified by the City through "good faith" effort of being mailed due diligence letters. These individuals and businesses have either not responded to the due diligence notifications and/or cannot be located to claim their property. RECOMMENDATION The Council is being asked to approve the Resolution declaring the cancellation of unclaimed General Fund accounts payable claims and payroll checks, and municipal court checks and consider these items on the Consent Agenda at the September 19, 2022 Regular Council Meeting. ATTACHMENTS Proposed Draft Resolution 2022 Unclaimed Property Summary Report 5 6 DRAFT A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, AUTHORIZING THE CANCELLATION OF OUTSTANDING GENERAL FUND CLAIMS AND PAYROLL CHECKS AND MUNICIPAL COURT CHECKS. WHEREAS, the State of Washington, Department of Revenue Unclaimed Property Section, for the reporting on year 2021, requires a one-year dormancy period for outstanding claims and payroll checks issued from the General Government Fund and a two-year dormancy period for Municipal Court checks; and WHEREAS, the City of Tukwila Finance Department has made all reasonable attempts to resolve the outstanding, unredeemed General Fund claims; and WHEREAS, the City Council of the City of Tukwila wishes to cancel all outstanding, unclaimed General Fund claims and payroll checks and Municipal Court Checks issued prior to July 1, 2021; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: The Tukwila City Council authorizes the cancellation of General Fund checks as detailed on Attachment A, the 2022 Unclaimed Property Summary Detail Report. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2022. Page 1 of 2 7 ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk Thomas McLeod, Council President APPROVED AS TO FORM BY: Office of the City Attorney Filed with the City Clerk: Passed by the City Council: Resolution Number: Attachment A: 2022 Unclaimed Property Summary Report (7/1/2020 — 6/30/2021) Page 2 of 2 8 Attachment A - 2022 Unclaimed Property Summary Report - Reporting Period 7/20/2020 - 6/30/2021 Accounts Payable Check # Date Vendor DESC Dept INV DATE INVOICE AMT GL Code PA ..--84311 384311 08/03/2020 003233 WAY BACK INN FOUNDATION TRANSITNL HOUSING 4/1/20- 6/30/2IADM 07/15/2020 8032017 2,951.06 000.04.557.201.41.00 384720 10/19/2020 020602 HALEY J NORRIS WITNESS FEE 9/30/20 CRT 09/30/2020 10192053 10.00 000.09.512.500.49.04 384742 10/19/2020 020598 LI TINTING WITNESS FEE 9/30/20 CRT 09/30/2020 10192052 10.00 000.09.512.500.49.04 384939 11/23/2020 020652 MONESSERRAT ALTAMIRANO WITNESS FEE 10/28/20 CRT 10/28/2020 6051740 10.00 000.09.512.500.49.04 384962 11/23/2020 020650 ANA G MEDINA CRUZ WITNESS FEE 10/28/20 CRT 10/28/2020 6051741 10.00 000.09.512.500.49.04 384963 11/23/2020 020653 PETER J MENDIOLA WITNESS FEE 10/28/20 CRT 10/28/2020 6051742 10.00 000.09.512.500.49.04 385342 01/18/2021 018974 FELICIA EDMONSON KEMP WITNESS FEE CRT 11/25/2020 123120202 10.00 000.09.512.500.49.04 385373 01/18/2021 014364 DARRYL KEMP WITNESS FEE CRT 11/25/2020 123120207 10.00 000.09.512.500.49.04 385409 01/18/2021 020776 SYLVIA SALMERSON WITNESS FEE CRT 12/16/2020 123120208 10.00 000.09.512.500.49.04 385625 03/01/2021 020799 HOPE D CASTANEDA WITNESS FEE CRT 01/27/2021 123120202 10.00 000.09.512.500.49.04 385651 03/01/2021 020803 TEMWANI KATUNDU WITNESS FEE CRT 01/27/2021 123120203 10.00 000.09.512.500.49.04 385668 03/01/2021 020800 ELIZABETH NAVARRO WITNESS FEE CRT 01/27/2021 123120204 10.00 000.09.512.500.49.04 385793 03/22/2021 020840 AGAPITA BORJA WITNESS FEE CRT 02/24/2021 3222151 10.00 000.09.512.500.49.04 385794 03/22/2021 020839 JOSE M BORJA WITNESS FEE CRT 02/24/2021 3222152 10.00 000.09.512.500.49.04 385804 03/22/2021 020837 JALYNNE M FORSLUN WITNESS FEE CRT 02/24/2021 3222154 10.00 000.09.512.500.49.04 385808 03/22/2021 020838 ANDREA B HERNANDEZ WITNESS FEE CRT 02/24/2021 3222155 10.00 000.09.512.500.49.04 385829 03/22/2021 020841 RAYMOND J SABLAN WITNESS FEE CRT 02/24/2021 3222157 10.00 000.09.512.500.49.04 385980 04/19/2021 020810 ELIZABETH RANIA RAMPERSAD JUDGE PRO TEM 4/5/21 CRT 04/05/2021 4192110 480.00 000.09.512.500.41.01 386058 05/03/2021 020803 TEMWANI KATUNDU WITNESS FEE 4/1/21 CRT 04/01/2021 5032161 10.00 000.09.512.500.49.04 386128 05/17/2021 020919 HASSAN YUSUF AHMED WITNESS FEE 4/29/21 CRT 04/29/2021 5172140 10.00 000.09.512.500.49.04 386175 05/17/2021 020918 CHOMROEUN MELL WITNESS FEE 4/29/21 CRT 04/29/2021 5172141 10.00 000.09.512.500.49.04 386176 05/17/2021 020921 ELIZABETH MICHEL WITNESS FEE 4/29/21 CRT 04/29/2021 5172142 10.00 000.09.512.500.49.04 386180 05/17/2021 020917 EDWIN HERNANDEZ MORENO WITNESS FEE 4/29/21 CRT 04/29/2021 5172143 10.00 000.09.512.500.49.04 386186 05/17/2021 020920 ULISES CENTENO PALOMINO WITNESS FEE 4/29/21 CRT 04/29/2021 5172144 10.00 000.09.512.500.49.04 386276 06/07/2021 009456 ANGELO ABELLA INTERPRETER FEE 5/24 CRT 05/24/2021 61126 118.00 000.09.512.500.41.03 11000901.0000.001. 386373 06/21/2021 020948 TALILAGI IERENEO WITNESS FEE 5/27/21 CRT 05/27/2021 6212162 10.00 000.09.512.500.49.04 386382 06/21/2021 020947 ELIZABETH LAFAELE LAEPOI WITNESS FEE 5/27/21 CRT 05/27/2021 6212163 10.00 000.09.512.500.49.04 386390 06/21/2021 020952 SUDI M MOHAMEDNUR WITNESS FEE 5/27/21 CRT 05/27/2021 6212164 10.00 000.09.512.500.49.04 386394 06/21/2021 020951 SANH C NGUYEN WITNESS FEE 5/27/21 CRT 05/27/2021 6212165 10.00 000.09.512.500.49.04 386400 06/21/2021 020945 RAELA PATTERSON WITNESS FEE 5/27/21 CRT 05/27/2021 6212166 10.00 000.09.512.500.49.04 385830 03/22/2021 020714 SEATTLE METRO CHAMBER OF COMP GOLD MUNICIPAL MEMBERSHIP 20: MAY 04/01/2021 1019471 3,600.00 000.03.558.700.49.00 384390 08/17/2020 003207 WA ST PATROL BACKGROUND CHECKS - JUL 20 POL 08/05/2020 121000468 66.25 640.237.701 385296 01/04/2021 003207 WA ST PATROL BACKGROUND CHECKS POL 08/05/2020 21000468 66.25 640.237.701 385609 03/01/2021 002668 ROBERT ABBOTT CDL RENEWAL POL 02/10/2021 3012118 102.00 412.01.538.380.49.00 386069 05/03/2021 020877 VADIM MAMCHICH 5314 S 140TH ST, WATER 0/P PWM 04/15/2021 UB 02-0697 111.97 640.237.000 386375 06/21/2021 020962 RODNEY JEFFERS 11809 40TH AVE S, WATER 0/P PWM 06/15/2021 UB 17-0460 20.00 640.237.000 AP Total: $ 7,785.53 Payroll Check # Date Payee Name Pay Period Date Amount 536421 07/24/2020 AFLAC 7/1/2020-7/15/2020 234.85 Payroll Total $ 234.85 Cort Qdse # Date Payee Name Description Amount 9Z0623465 07/17/2019 HAMBERT, PACHARADA KLINPIBUL OVERPAYMENT 16.00 16.00 CR0065365 09/11/2019 BAGADIONG, JOEL RESTITUTION 3.02 CR0066085 05/05/2020 CHIU, PEI WAI ROY RESTITUTION 300.00 CR0067078 08/21/2019 INC, H&M RESTITUTION 40.75 7Z0958407 09/24/2018 INC, H&M RESTITUTION 343 686.77 Court Total: $ 702.77 Total Unclaimed Property: $ 8,723.15 City of Tukwila City Council Finance & Governance Committee Meeting Minutes September 12, 2022 - 5:30 p.m. - Hybrid Meeting; Duwamish Conference Room & MS Teams Councilmembers Present: De'Sean Quinn, Chair; Kate Kruller Thomas McLeod Staff Present: Rachel Bianchi, Laurel Humphrey, Vicky Carlsen I. BUSINESS AGENDA A. Resolution: Cancellation of Outstanding General Fund Claims and Payroll Checks Staff is seeking Council approval of the annual resolution cancelling uncollectable accounts *receivable in the total amount of $34,324.45. Committee Recommendation Unanimous approval. Forward to September 19, 2022 Regular Consent Agenda. B. Resolution: Cancellation of Past Due Accounts Receivables Staff is seeking Council approval of the annual resolution writing off outstanding and unredeemed accounts payable in the total amount of $8,723.15. Committee Recommendation Unanimous approval. Forward to September 19, 2022 Regular Consent Agenda. C. 2023-2024 Budget: Firemen's Pension Fund Staff presented the proposed budget for Fund 611, Firemen's Pension, which supports seven retired firefighters. Committee Recommendation Forward to September 12, 2022 Committee of the Whole. D. Resolution: City Property Naming Policy Staff is seeking Council approval of a resolution adopting an updated policy on naming city - owned property. Item(s) for follow-up: • Remove 75% approval requirement for street renaming • Add "people of Tukwila" to Section 4(A)(8) • Add ability for Council to request a recommendation from a specific Board or Commission. Committee Recommendation Unanimous approval as amended. Forward to September 26, 2022 Committee of the Whole. MISCELLANEOUS The meeting adjourned at 5:56 p.m. Committee Chair Approval 11 12 COUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Mayor's review Council review 09/19/22 CW ITEM INFORMATION ITEM No. 5.D. STAFF SPONSOR: VICKY CARLSEN ORIGINAL AGENDA DATE: 09/19/22 AGENDA ITEM TITLE Resolution Ordering the Cancellation of Past Due Accounts Receivable CATEGORY ❑ Discussion Mtg Date ❑ Motion Mtg Date ' Resolution ❑ Ordinance Mtg Date ❑ Bid Award NLtg Date ❑ Public Hearing Mtg Date ❑ Other Mtg Date Altg Date 09/19/22 SPONSOR ❑Council ❑Mayor HR ❑DCD VA Finance Fire TS P&R ❑Police ❑PIF ❑Court SPONSOR'S There are certain accounts receivable that have been deemed uncollectible and need to be SUMMARY removed from the Accounts Receivable ledger. The Council is being asked to consider and approve the resolution ordering their cancellation. REVIEWED BY ❑ C.O.W. Mtg. ❑ CDN Comm ❑ Trans &Infrastructure ❑ Arts Comm. DATE: 09/12/22 VA Finance Comm. ❑ Public Safety Comm. Comm. ❑ Planning Comm. CHAIR: QUINN ❑ Parks COMMITTEE RECOMMENDATIONS: SPONSOR/ADMIN. COMMITTEE Finance Department Unanimous Approval; Forward to Regular Meeting Consent Agenda COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $ $ Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION MTG. DATE ATTACHMENTS 9/19/22 Informational Memorandum dated 9/12/22 Resolution in draft form Attachment A - 2022 Write -Offs Attachment B - Historical Write -Offs Minutes from the 9/12/22 Finance and Governance Committee 14 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: Finance Committee FROM: Vicky Carlsen, Finance Director BY: Cindy Wilkins, Fiscal Specialist CC: Mayor Ekberg DATE: 9/12/2022 SUBJECT: Cancellation of Accounts Receivable ISSUE Each year a resolution comes before the Council for the cancellation of uncollectable accounts receivable. For 2022, these items include: False Alarms equaling $27,866.60, Miscellaneous Billings equals $6,457.85 for a grand total of $34,324.45. BACKGROUND The process for tracking accounts receivable is quite thorough. The steps below are followed prior to preparation of the attached write-off resolution. • Invoice is sent to the recipient by the Finance Department payable in 30 days. • If payment is not received within 30 days, the receivable is forwarded to our collection agency, Armada Corp., and placed into pre -collect status. • At this time, Armada sends a Delinquency Notice to debtor notifying them of the past -due status of the receivable and asks them to contact the City to make payment. Payments can still be made directly to the City while in pre -collect status. • Once 30 days has passed in pre -collect status, the receivable then rolls over to active collections. At the onset of active collections, a letter is sent to the debtor notifying them of status change and advising that all payments must now be made through the collection agency. • When in active collections status, debtor is contacted both by phone and letter. A search is made for assets with which the debt could be satisfied. Once the debt has been in active collections for 45 days, it is then reported to the national credit bureaus. • The last process in the collections cycle is the pursuit of legal action. This includes attaching checking accounts, garnishments and lawsuits. • It should be noted that while a debt may be written off our books: it is still active in Armada's collection process. DISCUSSION The proposed amount of the 2022 Cancellation of Accounts Receivable is $34,324.45. This is an annual housekeeping item. 15 INFORMATIONAL MEMO Page 2 FINANCIAL IMPACT The financial impact of cancelling $34,324.45 will be to reduce our accounts receivable balance by this amount. Please note that while we are writing off the accounts receivable for accounting purposes., the accounts are still being actively worked for collection purposes except for those accounts where a responsible party cannot be identified. Accounts covered by bankruptcy law cannot be pursued. RECOMMENDATION The Council is being asked to approve the annual resolution authorizing the cancellation of Accounts Receivable and to forward this item to the Regular Meeting Consent Agenda of 09/19/22. ATTACHMENTS Proposed Draft Resolution Attachment A — 2022 AR Write -Offs Attachment B — Historical Write -Offs 16 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, ORDERING THE CANCELLATION OF PAST DUE ACCOUNTS RECEIVABLES WHEREAS, certain receivables and checks have been deemed uncollectable after efforts by both the City and a collection agency have been unsuccessful; and WHEREAS, the City will continue to pursue these receivables when practical; NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, HEREBY RESOLVES AS FOLLOWS: Miscellaneous Accounts Receivable. The total of $34,324.45 (per Attachment A) is deemed uncollectable. PASSED BY THE CITY COUNCIL OF THE CITY OF TUKWILA, WASHINGTON, at a Regular Meeting thereof this day of , 2022. ATTEST/AUTHENTICATED: Christy O'Flaherty, MMC, City Clerk Thomas McLeod, Council President APPROVED AS TO FORM BY: Office of the City Attorney Filed with the City Clerk: Passed by the City Council: Resolution Number: Page 1 of 1 17 18 Attachment A - 2022 AR Write -Offs Eden Acct Customer Name I Inv Date I EDEN (Billing Description GL Account Inv Amount 000139 ALLIANCE ONE RECEIVABLES MGMT 06/01/20 RN -00179 ALLIANCE ONE JUN/2020 RENT MR003100-362500/640-237104 1,049.41 000138 ALLIANCE ONE RECEIVABLES MGMT 05/01/20 RN -00178 ALLIANCE ONE MAY/2020 RENT MC009100-362500/640-237104 1,049.41 000420 INTEGON NATIONAL INSURANCE 11/04/20 PW -00161 CLAIM PAC2019-21 000419 SIMON SEK G F000100-398000 11/02/20 PW -00160 PAC2019-33 (21901615) GF000100-398000 RYDTRU RYDER TRUCK RENTAL INC 05/22/20 PF -04077 POLICE FALSE ALARM #10 & 11 PD010100-342800 000428 VIRTUAL SPORTS TUKWILA WA LLC 12/01/20 PD -00364 POLICE FALSE ALARM #13 PD010100-342800 RYDTRU RYDER TRUCK RENTAL INC 07/23/20 PF -04101 POLICE FALSE ALARM #15-17 PD010100-342800 RYDTRU RYDER TRUCK RENTAL INC 11/10/20 PD -00311 POLICE FALSE ALARM #19 PD010100-342800 RYDTRU RYDER TRUCK RENTAL INC 11/19/20 PD -00334 POLICE FALSE ALARM #20-21 PD010100-342800 RYDTRU RYDER TRUCK RENTAL INC 12/01/20 PD -00365 POLICE FALSE ALARM #22 PD010100-342800 RYDTRU RYDER TRUCK RENTAL INC 12/23/20 PD -00400 POLICE FALSE ALARM #23-26 PD010100-342800 RYDTRU RYDER TRUCK RENTAL INC 12/31/20 PD -00430 POLICE FALSE ALARM #27 PD010100-342800 000207 CHURCH BY THE SIDE OF THE ROAD 03/13/20 PF -04057 POLICE FALSE ALARM #3 PD010100-342800 000214 US HEALTHWORKS MED GRP OF WA P 03/13/20 PF -04055 POLICE FALSE ALARM #3 PD010100-342800 000237 0 & E LIQUOR LLC 03/13/20 PF -04046 POLICE FALSE ALARM #3 PD010100-342800 000352 SEATTLE'S BEST FLOORS LP 11/19/20 PD -00328 POLICE FALSE ALARM #3 PD010100-342800 000388 AZ TRADING INC 03/13/20 PF -04056 POLICE FALSE ALARM #3 PD010100-342800 000399 TRIPLED PARTNERSHIP 06/11/20 PF -04080 POLICE FALSE ALARM #3 PD010100-342800 000412 KIDDER MATTHEWS 11/30/20 PD -00344 POLICE FALSE ALARM #3 PD010100-342800 000416 MOHAMMED ABAS 10/19/20 PF -04113 POLICE FALSE ALARM #3 PD010100-342800 000421 EMERALD CITY MOVING & STORAGE 11/09/20 PD -00297 POLICE FALSE ALARM #3 PD010100-342800 000427 WINNING CHRISTIAN CENTER 11/10/20 PD -00320 POLICE FALSE ALARM #3 PD010100-342800 000435 COMCAST CABLE COMM MGMTT LLC 12/02/20 PD -00374 POLICE FALSE ALARM #3 PD010100-342800 000444 SHERWIN WILLIAMS COMPANY 12/22/20 PD -00395 POLICE FALSE ALARM #3 PD010100-342800 000446 HOLMES ELECTRIC 12/23/20 PD -00402 POLICE FALSE ALARM #3 PD010100-342800 000450 VERTIV CORPORATION 12/23/20 PD -00407 POLICE FALSE ALARM #3 PD010100-342800 000451 KING CO TRANSIT 12/31/20 PD -00423 POLICE FALSE ALARM #3 PD010100-342800 MENSWE MEN'S WEARHOUSE 12/01/20 PD -00358 POLICE FALSE ALARM #3 PD010100-342800 REGALC REGAL CINEMAS INC 11/30/20 PD -00347 POLICE FALSE ALARM #3 PD010100-342800 RYDTRU RYDER TRUCK RENTAL INC 02/11/20 PF -04043 POLICE FALSE ALARM #3 PD010100-342800 UPSSUP UPS SUPPLY CHAIN SOLUTIONS 12/01/20 PD -00353 POLICE FALSE ALARM #3 PD010100-342800 000211 PETSMART INC #377 11/19/20 PD -00333 POLICE FALSE ALARM #3-4 PD010100-342800 000389 SOUND PAIN ALLIANCE PLLC 03/13/20 PF -04058 POLICE FALSE ALARM #3-4 PD010100-342800 000424 RAINIER CANCER CENTER PLLC 11/10/20 PD -00310 POLICE FALSE ALARM #3-4 PD010100-342800 000426 VIRTUAL SPORTS TUKWILA WA LLC 11/10/20 PD -00319 POLICE FALSE ALARM #3-6 PD010100-342800 000205 GRAINGER 11/30/20 PD -00350 POLICE FALSE ALARM #4 PD010100-342800 000208 CHURCH BY THE SIDE OF THE ROAD 12/02/20 PD -00372 POLICE FALSE ALARM #4 PD010100-342800 000407 RICHARD L NELSON 11/30/20 PD -00345 POLICE FALSE ALARM #4 PD010100-342800 000425 RAINIER CANCER CENTER PLLC 12/31/20 PD -00434 POLICE FALSE ALARM #4 PD010100-342800 000436 COMCAST CABLE COMM MGMTT LLC 12/23/20 PD -00408 POLICE FALSE ALARM #4 PD010100-342800 000447 HOLMES ELECTRIC 12/31/20 PD -00432 POLICE FALSE ALARM #4 PD010100-342800 LEAV LEAVITT MACHINERY USA INC 07/23/20 PF -04100 POLICE FALSE ALARM #4 PD010100-342800 OLDN OLD NAVY LLC 12/31/20 PD -00428 POLICE FALSE ALARM #4 PD010100-342800 UPSSUP UPS SUPPLY CHAIN SOLUTIONS 12/31/20 PD -00420 POLICE FALSE ALARM #4 PD010100-342800 RYDTRU RYDER TRUCK RENTAL INC 03/13/20 PF -04052 POLICE FALSE ALARM #4 - 7 PD010100-342800 000417 MOHAMMED ABAS 12/22/20 PD -00390 POLICE FALSE ALARM #4 - 8 PD010100-342800 000400 TRIPLE D PARTNERSHIP 11/19/20 PD -00326 POLICE FALSE ALARM #4-5 PD010100-342800 JACKSO JACKSON DEAN CONSTRUCTION 12/31/20 PD -00438 POLICE FALSE ALARM #4-5 PD010100-342800 000212 PETSMART INC #378 12/22/20 PD -00399 POLICE FALSE ALARM #5 PD010100-342800 000370 SINGH, TARAN DG FOODS 05/22/20 PF -04075 POLICE FALSE ALARM #5 PD010100-342800 000390 SOUND PAIN ALLIANCE PLLC 07/23/20 PF -04110 POLICE FALSE ALARM #5 PD010100-342800 000411 MADRONA SPECIALTY FOODS LLC 11/10/20 PD -00304 POLICE FALSE ALARM #5 PD010100-342800 2,098.82 779.76 1,615.07 2,394.83 400.00 200.00 600.00 200.00 400.00 200.00 800.00 200.00 150.00 150.00 150.00 150.00 150.00 150.00 150.00 150.00 150.00 150.00 150.00 150.00 150.00 150.00 150.00 150.00 150.00 150.00 150.00 350.00 350.00 350.00 750.00 200.00 200.00 200.00 200.00 200.00 200.00 200.00 200.00 200.00 800.00 1,000.00 400.00 400.00 200.00 200.00 200.00 200.00 Attachment A - 2022 AR Write -Offs Eden Acct Customer Name I Inv Date I EDEN (Billing Description GL Account Inv Amount TUKSVC GIVING 000371 000410 000194 000411 000427 000151 000390 000412 000442 GIVING 000195 000413 KEYBA2 000441 000369 000193 000423 RYDTRU 000150 000461 TUKWILA SERVICE CENTER GIVING TREE LEARNING CENTER IN SINGH, TARAN DG FOODS HABITAT FOR HUMANITY SEA/KC SEATTLE CHAR LLC HABITAT FOR HUMANITY SEA/KC VIRTUAL SPORTS TUKWILA WA LLC BURLINGTON COAT FACTORY OF WA KING LASIK INC PS HABITAT FOR HUMANITY SEA/KC MARINERPOLIS USA INC GIVING TREE LEARNING CENTER IN SEATTLE CHAR LLC HABITAT FOR HUMANITY SEA/KC KEY BANK NATIONAL ASSN MARINERPOLIS USA INC SINGH, TARAN DG FOODS SEATTLE CHAR LLC LIFE OF DECOR LLC RYDER TRUCK RENTAL INC BURLINGTON COAT FACTORY OF WA JUDGE SMITH 000391 KING LASIK INC PS 11/19/20 11/10/20 06/11/20 11/09/20 06/11/20 11/19/20 11/19/20 12/22/20 12/31/20 12/22/20 12/31/20 12/23/20 07/23/20 12/31/20 11/09/20 12/22/20 04/06/20 04/06/20 11/10/20 04/06/20 04/06/20 12/31/20 PD -00339 PD -00316 PF -04088 PD -00298 PF -04084 PD -00324 PD -00340 PD -00397 PD -00442 PD -00388 PD -00418 PD -00411 PF -04099 PD -00422 PD -00300 PD -00383 PF -04062 PF -04059 PD -00302 PF -04061 PF -04060 PW -00183 POLICE FALSE ALARM #5 POLICE FALSE ALARM #5-7 POLICE FALSE ALARM #6 POLICE FALSE ALARM #6 POLICE FALSE ALARM #7 POLICE FALSE ALARM #7 POLICE FALSE ALARM #7-12 POLICE FALSE ALARM #8 POLICE FALSE ALARM #8 POLICE FALSE ALARM #8 POLICE FALSE ALARM #8 POLICE FALSE ALARM #8 POLICE FALSE ALARM #8 - 10 POLICE FALSE ALARM #9 POLICE FALSE ALARM 3 - 5 POLICE FALSE ALARM 3-7 POLICE FALSE ALARMS #3-4 POLICE FALSE ALARMS #3-5 POLICE FALSE ALARMS #4 POLICE FALSE ALARMS #8-9 POLICE FALSE ALARMS 3-6 PW CLAIM PAC2020-23 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 PD010100-342800 G F000100-398000 12/31/20 PM -00139 WO 21840133 6700 FORT DENT WAY PW401801-379002 SEFNCO SEFNCO 10/21/20 PW -00155 WO 22040113 200.00 600.00 200.00 200.00 200.00 200.00 1,200.00 200.00 200.00 200.00 200.00 200.00 600.00 200.00 550.00 950.00 350.00 550.00 200.00 400.00 750.00 6,666.60 27,866.60 96.33 96.33 PW401800-343403 1,867.87 1,867.87 Total Write-offs: 34,324.45 Attachment B - Historical Write -Offs Resolution 1777 2012 $ 8,777.89 Resolution 1805 2013 $ 30,702.97 Resolution 1843 2014 $ 36,240.62 Resolution 1865 2015 $ 27,887.91 Resolution 1893 2016 $ 47,680.46 Resolution 1916 2017 $ 9,005.25 Resolution 1948 2018 $ 12,832.35 Resolution 1969 2019 $ 53,109.56 Resolution 2001 2020 $ 17,285.74 Resolution 2031 2021 $ 5,492.03 21 22 City of Tukwila City Council Finance & Governance Committee Meeting Minutes September 12, 2022 - 5:30 p.m. - Hybrid Meeting; Duwamish Conference Room & MS Teams Councilmembers Present: De'Sean Quinn, Chair; Kate Kruller Thomas McLeod Staff Present: Rachel Bianchi, Laurel Humphrey, Vicky Carlsen I. BUSINESS AGENDA A. Resolution: Cancellation of Outstanding General Fund Claims and Payroll Checks Staff is seeking Council approval of the annual resolution cancelling uncollectable accounts receivable in the total amount of $34,324.45. Committee Recommendation Unanimous approval. Forward to September 19, 2022 Regular Consent Agenda. B. Resolution: Cancellation of Past Due Accounts Receivables Staff is seeking Council approval of the annual resolution writing off outstanding and *unredeemed accounts payable in the total amount of $8,723.15. Committee Recommendation Unanimous approval. Forward to September 19, 2022 Regular Consent Agenda. C. 2023-2024 Budget: Firemen's Pension Fund Staff presented the proposed budget for Fund 611, Firemen's Pension, which supports seven retired firefighters. Committee Recommendation Forward to September 12, 2022 Committee of the Whole. D. Resolution: City Property Naming Policy Staff is seeking Council approval of a resolution adopting an updated policy on naming city - owned property. Item(s) for follow-up: • Remove 75% approval requirement for street renaming • Add "people of Tukwila" to Section 4(A)(8) • Add ability for Council to request a recommendation from a specific Board or Commission. Committee Recommendation Unanimous approval as amended. Forward to September 26, 2022 Committee of the Whole. MISCELLANEOUS The meeting adjourned at 5:56 p.m. Committee Chair Approval 23 24 COUNCIL AGENDA SYNOPSIS kJi' C/;. �4 f Initials ITEM No. O 40 S Meeting Date Prepared by Mayor's review Council review %'' 9/19/22 PH Q �� 0 5 E \\......., 1908 ITEM INFORMATION STAFF SPONSOR: ERIC DREVER ORIGINAL AGENDA DATE: 9/19/22 AGENDA ITEM TITLE Contribution to Valley SWAT Armored Vehicle Purchase CATEGORY 11 Mtg Discussion Date 9/12/22 II Motion Mtg Date 9/19/22 ❑ Resolution Mtg Date ❑ Ordinance Mtg Date ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑ Other Mtg Date SPONSOR ❑ Council ❑ Mayor ❑ Admin Svcs ❑ DCD ❑ Finance ❑ Fire ❑ P&R 11 Police ❑ PlC SPONSOR'S The Valley SWAT Team requires the purchase of an armored vehicle to allow safe covert SUMMARY ingress and egress from situations involving armed suspects. Tukwila is a SWAT Team partner to provide these types of responses. The Council is being asked to approve the $100,000 expenditure from state seizure fund to contribute towards the purchase of the vehicle. REVIEWED BY ❑ Trans&Infrastructure Svcs 1 ❑ LTAC ❑ DATE: 9/12/22 Community Svcs/Safety ❑ Finance & Governance ❑ Planning & Community Dev. Arts Comm. ❑ Parks Comm. ❑ Planning Comm. COMMITTEE CHAIR: HOUGARDY RECOMMENDATIONS: SPONsoR/ADMIN. Police Department COMMITTEE Unanimous Approval; Forward to consent agenda COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $100,000.00 $ $ Fund Source: STATE SEIZUER FUND Comments: MTG. DATE RECORD OF COUNCIL ACTION 9/19/22 MTG. DATE ATTACHMENTS 9/19/22 Informational Memorandum dated 9/1/22 Price quote from International Armored Group US, Inc. Armored vehicle specifications Minutes from the Community Services and Safety Committee meeting of 9/12/22 25 26 W i City of Tukwila Allan Ekberg, Mayor 19oa INFORMATIONAL MEMORANDUM TO: Public Safety Committee FROM: Eric Dreyer, Chief of Police CC: Mayor Ekberg DATE: September 1, 2022 SUBJECT: Contribution to Valley SWAT Armored Vehicle Purchase ISSUE The Valley SWAT Team requires the purchase of an armored vehicle to allow safe covert ingress and egress from situations involving armed suspects. BACKGROUND Tukwila is partnered with the Valley SWAT Team for providing a specialized response to highly dangerous incidents involving armed suspects. Tactics for transporting SWAT Team members into and out of the range of suspects' targeting involve the use of armored vehicles. The Valley SWAT team currently has armored vehicles called "BearCats" that are deployable in an overt response to threats. This vehicle is a military - style vehicle that looks like a police armored vehicle. They also have a carrier that is being refitted to allow for safer armored transportation in a more covert capacity. However, the SWAT Team needs a carrier that can carry more team members at once and need the ability to deploy two teams simultaneously in a covert fashion. Therefore, a second covert armored van is required to allow for more efficient and safer SWAT operations. DISCUSSION Because of the high cost of an armored vehicle, not all Valley partnered agencies have the financial capacity to contribute towards the purchase of an armored vehicle for the team. Tukwila has state seizure funds available, allowing for the capacity to take on a larger portion of the purchase of the armored SWAT vehicle. These funds have restricted use, and the armored vehicle falls within the guidelines of the restrictions. Tukwila's larger contribution will allow for the vehicle to be purchased, which otherwise would have a financial shortfall. FINANCIAL IMPACT Tukwila Police Department would like to contribute $100,000.00 of state seizure funds towards the purchase of the armored vehicle. State seizure funds must have a nexus to drug enforcement to be an authorized purchase. Where Valley SWAT is utilized to serve drug- related warrants, this purchase falls within the restrictive expenditures. Typically, Tukwila will use its state seizure funds for training and equipment for the TAC Team (Tukwila's drug enforcement team). However, over the last three years, the team has not been fully staffed, and at the beginning of 2022, was merged with the Major Crimes Unit to assist with the follow-up investigation of felony crimes. As a result, the funds are not being expended at the usual rate and funds are available to contribute the $100,000.00. Future operating and maintenance costs will be absorbed by the Valley SWAT regional budget. 27 28 INFORMATIONAL MEMO Page 2 RECOMMENDATION We are requesting approval from Council to allow the $100,000.00 expenditure from the state seizure fund to contribute towards the purchase of the Valley SWAT armored vehicle and have the approval to move forward to the September 19, 2022 Council consent agenda. ATTACHMENTS Armored vehicle quote Armored vehicle specifications https://tukwilawa.sharepoint.com/sites/mayorsoffice/cc/Council Agenda Items/Police/SWAT vehicle/Infol Memo SWAT Vehicle Purchase.docx INTERNATIONAL ARMORED GROUP INTERNATIONAL ARMORED GROUP US, Inc. 5840 US1 HWY S, Saint Augustine, Florida, 32086 Tel: +1-904-794-4304, Fax: +1-904-794-9232, Email: info@interarmored.com, Web: www.interarmored.com Price Quote Department/Agency: City of Ederalway Police Department Contact Name: Charlie Hinckle Email: Charlie.Hinckle@cityoffederalway.com Item Price Quantity Total Ford Transit Van 350HD Extended ,High Roof Tactical Van, 3.SL EcoBoost V6, Auto, AWD (NIJ III Level Vehicle Armoring) $136,850.00 1 $136,850.00 Included Options Vehicle Color: Grey Included 1 Included Battery and ECM Protection Included 1 Included Fuel Tank Protection Included 1 Included Upgraded HD Hinges Included 1 Included Wire mesh installed in tailpipe Included 1 Included Breaching Tool Storage Included 1 Included Red/White Interior Dome Light Included 3 Included Bench Seating Configuration with 2 Point Seatbelts Included 1 Included Rear Door has Custom Door Stops to Lock at 90 Degrees Included 1 Included Interior Grab Rails Included 1 Included Mounts for Rear Compartment Privacy Curtain Included 1 Included Rear Compartment A/C and Heater Included 1 Included HD Tires Included 7 Included Additional Options 29 INTERNATIONAL ARMORED GROUP INTERNATIONAL ARMORED GROUP US, Inc. 5840 US1 HWY S, Saint Augustine, Florida, 32086 Tel: +1-904-794-4304, Fax: +1-904-794-9232, Email: info@interarmored.com, Web: www.interarmored.com Undercover Law Enforcement Light Package (Whelen Siren/Light Controller, (4) LED Hide -Away Lights, (1) 100 Watt P/A Speaker) $2,350.00 1 $2,350.00 Run -Flat Inserts, (Spare included) $500.00 7 $3,500.00 Note: Sales Tax Not Included Total Price 1 $142,700.00 * All prices are FOB St. Augustine, FL, please note sales tax has not been included. **Please note this quote is open -market, non -GSA. Purchases made through the GSA schedule are subject to a GSA Industrial Funding Fee equal to 0.75% of $100 value. The GSA IFF fee is remitted to the GSA Schedule and not retained by IAG. Delivery Terms: 180 Days After Receipt of Chassis. Validity: Prices are valid for 60 days. Prepared By: Alex Wilson Date: 3/9/22 30 r INTERNATIONAL ARMORED GROUP INTL H NATI 0 NAL '1RMOREA GROUP Custom Armored Vehicle Manufacturer TERNATIONAL ;ROUP (Vehicle may not be exactly as shown) Technical Specification for Armored Ford Transit - Tactical Van r INTERNATIONAL ARMORED GROUP Custom Armored Vehicle Manufacturer TECHNICAL SPECIFICATION ARMORED FORD TRANSIT VAN SPECIFICATION: IAG FORD TRANSIT GAS AUTO LWB/HIGH-ROOF NIJ III This specification outlines the design modifications to be applied to the above mentioned vehicle in order to convert this vehicle to a protective armored vehicle. 2 JZ Table of Contents 2.0 Base Vehicle Details — FORD TRANSIT EXTENDED/HIGH-ROOF 4 3.0 Armoring Details 5 3.1 Opaque Armor and body 5 3.2 Transparent Armor 6 3.3 Doors 6 3.4 Electrical 7 3.5 Interior 7 3.6 Brakes 8 3.7 Suspension 8 3.8 Tires and Run Flats 8 3.9 Other Features 8 3.10 Weights 9 4.0 Ballistic Specifications 9 5.0 Warranty 10 3 6i r 2.0 Base Vehicle Details — FORD TRANSIT 3.5 Liter Gas Extended High - Roof (OEM features may vary depending upon availability at time of order) • 3.5 L Gas (310 hp and 400 lb -ft.) • AWD • Extended wheel base • 6 -speed automatic heavy-duty transmission • Brakes, 4 -wheel antilock, 4 -wheel disc • High roof • Power steering • Air conditioning (front & rear) • Medium pewter, vinyl seat trim • 16" steel wheels • Audio system, CD player 4 j4 r 3.0 Armoring Details 3.1 Opaque Armor and body • Five sided armoring of passenger compartment using certified ballistic steel plating to defeat high-powered rifle fire,.308 @ 2,750 fps. (Meets or exceeds NIJ III, see Ballistic Specifications in section 4.0) • Floor is fitted with steel blast protection to protect occupants against fragmentation from simultaneous detonation of 2 DM -51 German ordnance hand grenades or equivalent. • Armoring included on kick panels, front fenders, rear wheel wells, firewall, door pillars and posts. • Armor consists of welded certified ballistic grade steel construction. • The vehicle frame, constructed of certified ballistic grade steel, provides overlap and backup protection for the large -surface principal impact areas such as the doors and windows. It also reinforces the structural integrity of the pillars and other areas that are typically ignored or poorly armored by other manufacturers. • Vehicle armoring shall be constructed in such a way as to ensure that a projectile following a linear or angled path shall not enter the vehicle's interior without contacting the armor material. In addition to this, the possibility of a projectile entering the vehicle's interior due to a ricochet from the armor shall also be minimized. • Ballistic steel used in the opaque armoring areas will be constructed using CNC laser cutting and CNC bending technology, which allow for near perfect precision with an average of 0.002 inches of processing tolerance 5 �5 r 3.2 Transparent Armor • All original cab portion glass shall be replaced with either curved or flat -panel ballistic glass, or any combination of the two at the manufacturer's discretion, which maximizes visibility and efficiency as well as minimizes operational maintenance costs. • A combination of glass, Polycarbonate and Mylar are bonded together using the latest technology, producing one of the finest transparent Armors available while incorporating the following: • Meets or exceeds NIJ III ballistic protection, (see section 4.0 for ballistic specifications). • Finest optical quality offers minimal distortion. ifERNATIONAL ROUP kvb ��1� /r =Air.m.df Ars. '„r hili—+ .iiiiA,i .,!!!Eis! !AIM!!! AI sAN' Air !iiii.. 3.3 Doors • Original cab doors will be armored from inside to maintain appearance and minimize maintenance issues involved with re -tooling of original body components. • If the side door is sliding then there shall be an armored swing out door behind it. As a second option, armoring can be directly placed on the OEM side sliding door. • Armoring shall be placed directly on the rear doors. • Reinforced pillars & door hinges on all doors to cope with the weight of the armoring • Dual HD nylon door straps to reduce hinge wear at front & side passenger compartment doors. Armor overlap at all doors to prevent penetration through door posts and pillars. • Door pillars reinforced for maximum strength retention. • Handles are reinforced to provide longer life in rugged environments. • Rear doors are equipped with door stoppers and can lock open in several positions 6 :ib r 3.4 Electrical • All standard electrical equipment of this vehicle shall be tested and modified as necessary to protect against the armoring process. • Additional electrical accessories installed (such as rear lighting if required by client) shall be installed by qualified personnel and shall use automotive grade electrical wiring in protective looms to ensure durability and ease of maintenance. 3.5 Interior • All original OEM interior panels and trim in the cab area will be resized or modified and re- installed wherever possible to obtain as close to an original look as possible. • The passenger seating area shall be custom made by IAG to sit up to 8 passengers, plus driver and 1 co-driver. Exact seating can be determined based on client preference at time of contract signing. • Rear of the vehicle shall be equipped with an additional A/C and heat system • Rear of the vehicle shall be separated by a pull curtain if required —tett 7 OM :if r 3.6 Brakes • International Armored Group undertakes to provide a superior handling vehicle as an alternative to most vehicles in the industry. To this end we upgrade the braking systems as necessary for improved performance and safety. 3.7 Suspension • Along with the improved braking systems, International Armored Group alters the suspension components of all vehicles to provide added safety, and improved performance and handling of the finished armored vehicles. • Vehicle is equipped with custom heavy duty suspension system that includes: • Front HD Shocks • Front HD Coil Springs • Rear HD Shocks • Rear HD Rubber Bushings • Rear HD Leaf Springs • Rear HD Sway Bar 3.8 Tires and Run Flats • All vehicle tires shall be equipped with run flat inserts capable of operating for 50km at 50km/hr after the tires are punctured. The certified run flats used by IAG have been proven as reliable by clients worldwide in a variety of unique operating environments. • IAG Standard configuration includes a run flat installed in the spare tire. • IAG also offers an optional run flat upgrade and heavier tire combination which maintains higher load capacities and runs cooler than standard units. This guarantees improved performance in the event that the vehicle tires become disabled. 3.9 Other Features • Vehicle tire jack (upgraded if necessary to lift additional weight of armor) & tire iron. • Steel protection over fuel tank. • Ballistic protection for engine ECM unit and battery. • Wire mesh installed in tailpipe to prevent insertion of foreign objects. • All manuals and written information provided by vehicle manufacturer shall be included. • All armoring completed by experienced technicians. 8 i ti 1064 NIJ Standard - 0108.01 BALLISTIC RESISTANT PROTECTIVE MATERIALS r! 3.10 Weights • The centre of gravity in a vehicle of this nature is high when compared to that of an unarmored equivalent, thereby making vehicles such as this inherently less stable than commercially available units. While suspension upgrades have been engineered to offset this effect, care must be taken in handling any armored vehicle. It is strongly recommended that drivers are specifically trained to handle the vehicle with the increase in weight load and change in centre of gravity position. 4.0 Ballistic Specifications The following table represents the ballistic protection levels for the above mentioned vehicle for both transparent and opaque armor: (Level NIJ III). Opaque Armor: Armored passenger compartment roof and 4 sides. Floor of passenger compartment is protected to shield against fragmentation from simultaneous detonation of 2 DM -51 German ordnance hand grenades or equivalent. AMMUNITION ir Plre 22 LRHV Lead 38 Special RN Lead 2.6 g 40 gr 10.2 g 158 gr 15 to 16.5 cm 6 to 6.5 in 15 to 16.5 cm 6 to 6.5 in 357 Magnum 10.2 g 10 to 12 cm JSP 158 gr 4 to 4.75 in 9mm 8.09 10to12crn FMJ 124 gr 4 to 4.75 in 320±12m/s 1050 ± 40 ft/s 259 ± 15 m/s 850 ± 50 ft/s 381 ± 15 m/s 1250 ± 50 ftis 332 ± 12 rn/s 1090 ± 40 ft/s HITS PER ARMOR SPECIMEN 5 5 5 5 357 Magnum 10.2 g 15 to 16.5 cm 425 ± 15 m/s 5 JSP 158 gr 6 to 6.5 in 1395 ± 50 ft/s 9mm 8.0g 10 to 12 cm 358±12m/s 5 FMJ 124 gr 4 to 4.75 in 1175 ± 40 Ws 44 Magnum 15.55 g 14 to 16 cm 426 ± 15 m/s 5 Lead SWC 240 gr 5.5 to 6.25 in 1400 ± 50 fids Gas 8.0 g 24 to 26 cm 426 ± 15 m/s 5 Checked 124 gr 9.5 to 10.25 in 1400±50ft/s 9 mm FMJ 7.62 mm 308 Winchester FMJ 30-06 AP 9 9.7 g 150 gr 10.8 g 166 gr 56 cm 22 in 56 cm 22 in 838±15mfs 838 ± 15 m/s 2850 ± 50 W5 5 5.0 Warranty International Armored Group warrants any armor related items installed, and conversion related custom workmanship, for one year, or 36,000 miles. whichever comes first. Any suspected warranty related work must first be confirmed as being necessary by means of technical consultation with a representative of International Armored Group. Coverage applies to the original vehicle owner only. Technical consultation regarding any repairs or malfunctions is available by telephone during our normal operating hours. Warranty work to be directly covered by International Armored Group shall be performed locally only after assessment and authorization by International Armored Group. International Armored Group shall, upon consultation and approval, make payment for any/all repairs deemed to be of a reasonable nature by our management and engineering department. International Armored Group does not cover any OEM vehicle parts and components that have not been modified or preformed work on during the armoring process. Such parts and components are the sole responsibility of the client and the vehicle OEM. International Armored Group assumes no responsibility for damages incurred through vehicle misuse or abuse, negligence, accidental damage, or any unauthorized modifications or alterations made to the vehicle following delivery of the vehicle to the client. Under the terms of this limited warranty, International Armored Group. shall in no way be held liable for any incidental or consequential damages arising from loss of use or time, inconvenience, or commercial loss resulting from the need for warranty work. This warranty covers the repair and/or replacement of warranty related items only, and any non -warranty related additional costs incurred remain the responsibility of the client. Accessories not directly related to the armoring process (winches, lighting, shields, etc.) shall be covered by the warranties of their respective manufacturers, and are not included in the warranty coverage provided by this agreement. However, although International Armored Group does not warrant these items directly in any way, we do agree to offer any reasonable assistance in obtaining servicing from their companies of origin. Should there be any undue difficulties with obtaining servicing of these accessories; International Armored Group will also agree to replace them for the client at our current wholesale cost price. The client shall remain responsible for any/all shipping and handling fees or incidental costs associated with the replacement of such items, as well as the aforementioned replacement cost. 10 4U City of Tukwila City Council Community Services & Safety Committee Meeting Minutes September 12, 2022 - 5:30 p.m. - Hybrid Meeting; Hazelnut Conference Room & MS Teams Councilmembers Present: Staff Present: Kathy Hougardy, Chair; Mohamed Abdi, Tosh Sharp David Cline, Eric Dreyer, Eric Lund, David Rosen, Kraig Boyd, Jay Wittwer, Norm Golden, Trish Kinlow Chair Hougardy called the meeting to order at 5:30 p.m. I. BUSINESS AGENDA A. Contribution to Valley SWAT Armored Vehicle Purchase Staff is seeking Council approval to contribute $100K in state seizure funds toward the *purchase of an armored vehicle for the Valley SWAT Team. Committee Recommendation: Unanimous approval. Forward to September 19, 2022 Regular Meeting Consent Agenda. B. Expansion of School Speed Zone Camera Program Staff is seeking Council approval to install four school zone speed cameras on 42nd Avenue South. Committee Recommendation: Unanimous approval. Forward to September 26, 2022 Committee of the Whole C. Parks Speed Zone Camera Study Staff presented the results of the study, which took place in five parks over three days between 6:00 a.m. - 8:30 p.m. Item(s) for follow-up: Provide information on drawbacks to speed cameras near parks. Committee Recommendation: Install two cameras near Codiga Park to pilot a park camera program. Forward to September 26, 2022 Committee of the Whole. II. MISCELLANEOUS The meeting adjourned at 6:40 p.m. Committee Chair Approval Minutes by LH 41 42 COUNCIL AGENDA SYNOPSIS Initials Meeting Dale Prepared by .klayor's revic)) Council review 08/22/22 BR Motion Date 9/ 19/22 ❑ Resolution Mtg Date 09/12/22 BR ❑ Public Hearing Mtg Date ❑ Other Mtg Date 09/19/22 BR SPONSOR'S The current Comprehensive Solid Waste, Recyclables, and Yard Waste Collection Contract SUMMARY with Waste Management (WM) expires on October 31, 2023. At Council's direction, staff pursued an open, competitive procurement process for the upcoming 2023-2033 contract. Recology was selected as the highest-rated proponent. Staff recommends that Council approve the 2023-2033 Comprehensive Solid Waste, Recycling, and Compostables Collection Contract with Recology. REVIEWED BY L Trans&Infrastructure H CommunitySvs/Safety ❑ Finance Comm. ❑ Planning/Economic Dev. Arts Comm. ❑ Parks Comm. ❑ Planning Comm. COMMITTEE CHAIR: KATE KRULLER ❑ LTAC DATE: 08/15/22 RECOMMENDATIONS: SPONsoR/ADMIN. COMMITTEE ITEM INFORMATION ITEM NO. 6.A. 43 STAFF SPONSOR: HARI PONNEKANTI ORIGINAL AGENDA DATE: 08/22/22 AGENDA ITEM TITLE Solid Waste Contract Contract Award CATEGORY ❑ Discussion Mtg Date 08/22,9/12 Motion Date 9/ 19/22 ❑ Resolution Mtg Date ❑ Ordinance Mtg Date ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑ Other Mtg Date Mtg SPONSOR ❑Council ❑Mayor HR ❑DCD ❑Finance Fire TS P&R ❑Police II PIF ❑Court SPONSOR'S The current Comprehensive Solid Waste, Recyclables, and Yard Waste Collection Contract SUMMARY with Waste Management (WM) expires on October 31, 2023. At Council's direction, staff pursued an open, competitive procurement process for the upcoming 2023-2033 contract. Recology was selected as the highest-rated proponent. Staff recommends that Council approve the 2023-2033 Comprehensive Solid Waste, Recycling, and Compostables Collection Contract with Recology. REVIEWED BY L Trans&Infrastructure H CommunitySvs/Safety ❑ Finance Comm. ❑ Planning/Economic Dev. Arts Comm. ❑ Parks Comm. ❑ Planning Comm. COMMITTEE CHAIR: KATE KRULLER ❑ LTAC DATE: 08/15/22 RECOMMENDATIONS: SPONsoR/ADMIN. COMMITTEE Public Works Department Unanimous Approval; Forward to Committee of the Whole COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $0 $0 $0.00 Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 08/22/22 Forward to next Council meeting 09/12/22 Forward to next Regular meeting 09/19/22 MTG. DATE ATTACHMENTS 08/22/22 Informational Memorandum dated 08/12/22 with attachments Draft Contract Minutes from Transportation and Infrastructure Committee meeting of 08/15/22 09/12/22 Frequently Asked Questions (*added after 8/22/22 C.O.W. meeting*) Rate Comparison Sheet (*added after 8/22/22 C.O.W. meeting*) Draft Contract Informational Memorandum dated 08/12/22 with attachments (from 8/22/22 C.O.W.) 09/19/22 Draft Contract 43 44 COMPREHENSIVE GARBAGE, RECYCLABLES, AND COMPOSTABLES COLLECTION SERVICES CONTRACT City of Tukwila and Recology King County, Inc. November 1, 2023 — October 31, 2033 Comprehensive Garbage, Recyclables, and Compostables Collection Services Contract Table of Contents RECITALS 1 AGREEMENT 1 1. DEFINITIONS 1 2. TERM OF CONTRACT 6 3. CONTRACTOR REPRESENTATIONS AND WARRANTIES 6 4. SCOPE OF WORK 7 4.1 GENERAL COLLECTION SYSTEM REQUIREMENTS 7 4.1.1 Service Area 7 4.1.2 Service to Residences on Private Roads and Driveways 8 4.1.3 Hours/Days of Collection 8 4.1.4 Employee Conduct 9 4.1.5 Disabled Persons Service 9 4.1.6 Holiday Schedules 10 4.1.7 Inclement Weather and Other Service Disruptions 10 4.1.8 Suspending Collection from Problem Customers 11 4.1.9 Missed Collections 11 4.1.10 Same Day Collection 12 4.1.11 Requirement to Recycle and Compost and Quality Assurance 12 4.1.12 Routing, Notification and Approval 13 4.1.13 Vehicle and Equipment Type/Age/Condition/Use 13 4.1.14 Container Requirements and Ownership 15 4.1.14.1 Garbage, Recyclables, and Compostables Carts 15 4.1.14.2 Detachable Containers and Drop -box Containers 16 4.1.14.3 Ownership 17 4.1.14.4 Container Colors and Labeling 18 4.1.14.5 Container Weights 18 4.1.14.6 Container Removal Upon City or Customer Request 18 4.1.15 Spillage 19 4.1.16 Pilot Programs 19 4.1.17 Disruption Due to Construction 20 4.1.18 Contractor Planning and Performance Under Labor Disruption 20 4.1.19 Site Planning and Building Design Review 22 4.1.20 Safeguarding Public and Private Facilities 22 4.1.21 Transition and Implementation of Contract 22 4.1.22 Performance Review 23 4.1.23 Continual Monitoring and Evaluation of Operations 24 4.1.24 Collection/Disposal Restrictions 24 4.1.25 Emergency Response 25 4.1.26 Vacation Service Stops 25 4.1.27 Hiring Preference 25 4.2 COLLECTION SERVICES 26 4.2.1 Single -Family Residence Garbage Collection 26 4.2.1.1 Subject Materials 26 4.2.1.2 Containers 26 4.2.1.3 Specific Collection Requirements 26 4.2.2 Single -Family Residence Recyclables Collection 27 4.2.2.1 Recyclable Materials 27 City of Tukwila ii August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 46 Comprehensive Garbage, Recyclables, and Compostables Collection Services Contract Table of Contents 4.2.2.2 Containers 27 4.2.2.3 Specific Collection Requirements 28 4.2.3 Single -Family Residence Cornpostables Collection 28 4.2.3.1 Subject Materials 28 4.2.3.2 Containers 28 4.2.3.3 Specific Collection Requirements 28 4.2.4 Multifamily and Commercial Customer Garbage Collection 29 4.2.4.1 Subject Materials 29 4.2.4.2 Containers 29 4.2.4.3 Specific Collection Requirements 30 4.2.5 Multifamily and Commercial Customer Recyclables Collection 30 4.2.5.1 Subject Materials 30 4.2.5.2 Containers 30 4.2.5.3 Specific Collection Requirements 3138 4.2.6 Multifamily and Commercial Customer Compostables Collection 31 4.2.6.1 Subject Materials 31 4.2.6.2 Containers 31 4.2.6.3 Specific Collection Requirements 32 4.2.7 Permanent Drop -box Container Garbage Collection 32 4.2.7.1 Subject Materials 32 4.2.7.2 Containers 32 4.2.7.3 Specific Collection Requirements 333-2 4.2.8 Temporary (Non -Event) Container Customers 33 4.2.9 Special Event Services 33 4.2.10 Municipal Services 34 4.2.10.1 Street Litter and Recycling 34 4.2.10.2 City Facilities 34 4.2.11 Community Events 35 4.2.12 On-call Bulky Waste Collection 36 4.2.13 Excluded Services 36 4.3 COLLECTION SUPPORT AND MANAGEMENT 36 4.3.1 General Customer Service 3736 4.3.2 Specific Customer Service Requirements 37 4.3.2.1 Customer Service Representative Staffing 37 4.3.2.2 City Customer Service 3837 4.3.2.3 Service Recipient Complaints and Requests 38 4.3.2.4 Handling of Customer Calls 38 4.3.2.5 Corrective Measures 39 4.3.2.6 Contractor Website 39 4.3.2.7 Full Knowledge of Garbage, Recyclables, and Compostables Programs Required 40 4.3.2.8 Customer Communications 4148 4.3.3 Contractor's Customer Billing Responsibilities 41 4.3.4 Reporting 4342 4.3.4.1 Monthly Reports 43 4.3.4.2 Annual Reports 44 4.3.4.3 Ad Hoc Reports 44 4.3.4.4 Other Reports 4544 4.3.5 Promotion and Education 45 4.3.6 Transition to Next Contractor 46 4.3.7 Customer Service Center and Store 46 5. COMPENSATION 47 City of Tukwila iii August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 47 Comprehensive Garbage, Recyclables, and Compostables Collection Services Contract Table of Contents 5.1 COMPENSATION TO THE CONTRACTOR 47 5.1.1 Rates 47 5.1.2 Itemization on Invoices 47 5.2 COMPENSATION TO THE CITY 48 5.3 COMPENSATION ADJUSTMENTS 494g 5.3.1 Initial and Annual CPI Service Component Modification 4948 5.3.2 Changes in Tipping Fee and Fixed Annual Charge 5049 5.3.3 Changes in Disposal or Compostables Processing Sites 5150 5.3.4 Recycling Commodity Value 51 5.3.5 New or Changes in Existing Taxes 51 5.3.6 Changes in Service Provision 51 5.4 CHANGE IN LAW 5251 6. FAILURE TO PERFORM, REMEDIES, TERMINATION 52 6.1 PERFORMANCE FEES 52 6.2 CONTRACT DEFAULT 5554 7. NOTICES 56 8. GENERAL TERMS 5766 8.1 COLLECTION RIGHT 5756 8.2 ACCESS TO RECORDS 57 8.3 INSURANCE 585- 8.3.1 Minimum Scope of Insurance 58 8.3.2 Minimum Amounts of Insurance 5958 8.3.3 Other Insurance Provisions 59 8.3.4 Acceptability of Insurers 59 8.3.5 Verification of Coverage 59 8.3.6 Subcontractors 6059 8.4 PERFORMANCE BOND 605-9- 8.5 05$8.5 INDEMNIFICATION 60 8.5.1 Indemnify and Hold Harmless 60 8.5.2 Process 6168 8.6 CONFIDENTIALITY OF INFORMATION 61 8.7 ASSIGNMENT OF CONTRACT 61 8.7.1 Assignment or Pledge of Money by the Contractor 61 8.7.2 Assignment, Subcontracting, and Delegation of Duties 626-1- 8.7.3 Change of Trade Name 62 8.8 LAWS TO GOVERN/VENUE 62 8.9 COMPLIANCE WITH APPLICABLE LAWS AND REGULATIONS 62 8.10 PERMITS AND LICENSES 63 8.11 RELATIONSHIP OF PARTIES 63 8.12 CONTRACTOR'S RELATIONSHIP WITH CUSTOMERS 646-3 8.13 BANKRUPTCY 646-3 8.14 RIGHT TO RENEGOTIATE/AMEND 64 8.15 FORCE MAJEURE 64 8.16 SEVERABILITY 65 8.17 WAIVER 65 8.18 INCORPORATION OF CONTRACTOR'S PROPOSAL IN RESPONSE TO CITY'S RFP 65 City of Tukwila iv August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 48 Comprehensive Garbage, Recyclables, and Compostables Collection Services Contract Table of Contents 8.19 DISPUTE RESOLUTION 65 8.20 ENTIRETY 666-5 EXHIBITS: EXHIBIT A: Service Area EXHIBIT B: Contractor Rates EXHIBIT C: Recyclables List EXHIBIT D: Rate Modification Example City of Tukwila v August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 49 1 50 This Comprehensive Garbage, Recyclables, and Compostables Collection Services Contract (hereafter, "Contract"), passed by the Tukwila City Council at its regular meeting on the day of , 2022. This Contract is made and entered into this day of , 2022 (hereafter the "Date of Execution"), by and between the City of Tukwila, a municipal corporation (hereafter "City"), and Recology King County, Inc. (hereafter "Contractor"). The City and the Contractor are each individually a "party" and collectively the "parties" to this Contract. RECITALS WHEREAS, the City has conducted a competitive process to select a contractor to provide Garbage, Recyclables, and Compostables collection services ("Services") to all residents, businesses, and institutions located within the Service Area; and WHEREAS, the Contractor, having participated in the competitive process, acknowledges that the City conducted a thorough and exhaustive competitive process; and WHEREAS, the Contractor, having participated in the competitive process, acknowledges that the City had the right at any time during the process to reject any or all of the competitors, regardless of their proposals or prices; and WHEREAS, having completed the competitive process, the City has selected the best candidate to provide the Services outlined in the competitive process; and WHEREAS, the Contractor represents and warrants that it has the experience, resources, and expertise necessary to perform the Services as requested in the competitive process; and WHEREAS, the City desires to enter into this Contract with the Contractor for the Services outlined in the competitive process and included below; NOW, THEREFORE, in consideration of the mutual covenants, agreements, and promises herein contained, the City and Contractor do agree as follows: AGREEMENT 1. DEFINITIONS The following definitions apply to terms used in this Contract: Administrative Fee: A City -defined fee that is included in Customer rates charged by the Contractor, with receipts collected from Customers by the Contractor and remitted to the City as directed in this Contract. The Administrative Fee is separate from and distinct from any itemized utility, sales, or other taxes that may be assessed from time to time. City of Tukwila 1 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract Bulky Waste: Discrete items of Garbage of a size or shape that precludes collection in regular collection Containers. Bulky Waste includes: large appliances (such as refrigerators, freezers, stoves, dishwashers, clothes washing machines or dryers), water heaters, furniture (such as chairs, tables, shelves, cabinets or sofas), televisions, mattresses, and other similar large items placed at the Curb as discrete separate items. Bulky Waste does not include piles of debris, car parts, construction or demolition debris, Unacceptable Waste, or stumps. Call Center Hours: The times during which a live person Customer Service support shall be available to address Customer calls, e-mails, texts, or other communications. Call Center Hours shall be 7:00 a.m. PST through 7:00 p.m. PST, Monday through Friday of each week and no less than four hours on Saturdays, as agreed upon by the City and Contractor. Holidays, as defined by King County transfer stations, are excluded. Can: A receptacle that is a Customer -provided water -tight galvanized sheet -metal or plastic container not exceeding four (4) cubic feet or thirty-two (32) gallons in capacity; fitted with two (2) sturdy looped handles, one on each side. All Cans shall be rodent and insect -resistant and kept in sanitary conditions by their owner at all times. Cart: A Contractor -provided twenty (20), thirty-two (32)/or thirty-five (35), forty-five (45), sixty-four (64), or ninety-six (96) gallon wheeled receptacle with attached lid suitable for collection, storage, and Curbside placement of Garbage, Recyclables, or Compostables. Carts shall be rodent and insect -resistant. Change of Control: Any single transaction or series of related transactions by which the beneficial ownership of more than fifty percent (50%) of the voting securities of the Contractor is acquired by a person or entity, or by a related or affiliated group of persons or entities, who as of the effective date of the Contract do not have such a beneficial interest; provided, however, that intra -company transfers, such as transfers between different subsidiaries or branches of the parent corporation of the Contractor, or transfers to corporations, limited partnerships, or any other entity owned or controlled by the Contractor upon the effective date of the Contract, and transactions effected on any securities exchange registered with the U.S. Securities and Exchange Commission, shall not constitute a Change in Control. City: City of Tukwila, in King County, Washington. As used in the Contract, use of the term "City" may include reference to the City Administrator or his/her designated representative. Where the context makes it apparent, references to staff, streets, rights-of-way, activities and things refer to the staff, streets, rights-of-way and activities of the City, and things belonging to or located within the City. Commercial Customer: Non -Residential Customers, including businesses, institutions, governmental agencies, and all other users of commercial -type Garbage collection services. Compostables: Any organic waste material that is Source -separated for processing or composting, such as Yard Debris, clean scrap wood, and Food Scraps generated by any Residential, Multifamily or Commercial Customers. Shredded uncontaminated paper shall be accepted as a Compostable material unless disallowed by the Contractor's composting processor. Contractor: Recology King County, Inc, which has contracted with the City to provide all Services identified in this Contract, including, but not limited to, collecting, transporting, and disposing of Garbage and collecting, processing, marketing, and transporting of Recyclables and Compostables. City of Tukwila 2 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 51 Container: Any Micro -can, Can, Cart, Detachable Container, or Drop -box Container used in the performance of this Contract, including both loose and compacting Containers. Contract: This Contract for comprehensive Garbage, Recyclables and Compostable collection services. Contract Term: Term of this Contract as provided for in Section 2. County: King County in Washington State. Curb or Curbside: Customers' property, within five feet (5') of the Public Street or Private Road (or on the sidewalk without completely obstructing the sidewalk, if there is no Customer property within five feet (5') of the Public Street or Private Road) without blocking driveways or on -street parking. If extraordinary circumstances preclude such a location, Curbside shall be considered a placement suitable to the Customer, convenient to the Contractor's equipment, and mutually agreed to by the City and Contractor. Customer: All account -holders of the Contractor's services within the City as set forth in this contract. Customer Service: The assistance, advice and information provided by the Contractor to Customers and potential customers within the City. Date of Commencement of Service: November 1, 2023, which is the date that the Contractor agrees to commence the provision of Services as described throughout this Contract. Date of Execution: The date that this Contract is executed by all signatories. Day/Days: Calendar days unless otherwise specified. Detachable Container: A watertight metal or plastic loose or compacting receptacle equipped with a tight- fitting cover, capable of being mechanically unloaded into a collection vehicle, and that is not less than one (1) cubic yard or greater than eight (8) cubic yards in capacity. Driveway: A privately -owned and maintained way that connects a Residence or parking area/garage/carport with a Private Road or Public Street. Drop -box Container: A watertight all -metal loose material or compactor receptacle with ten (10) cubic yards or more capacity that is loaded onto a specialized collection vehicle. Environmental Law: Any applicable federal, State, or local statue, code, or ordinance or federal or State administrative rule, regulation, ordinance, order, decree, or other governmental authority as now or at any time hereafter in effect pertaining to the protection of human health or the environment. Extra Unit: Excess material that does not fit in the Customer's primary Container. An Extra Unit is equal to thirty-two (32) gallons for all Customers. Fixed Annual Charge: The charge assessed on the Contractor by the County on an annual basis that is allocable to the City Service Area to fund certain elements of the County's disposal system, in accordance City of Tukwila 3 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 52 with King County Ordinance 2021-0449. Contractor's Customer charges shall include a Fixed Annual Charge component that shall be calculated in accordance with this Contract and Contractor's receipts of the Fixed Annual Charge component, less the Administrative Fee and excise tax on the AdminstrativeAdministrative Fee that are included in the Fixed Annual Charge component, shall be used by Contractor to satisfy its obligations to County for payment of the Fixed Annual Charge. Food Scraps: All compostable pre- and post -consumer food waste, such as whole or partial pieces of produce, meats, bones, cheese, bread, cereals, coffee grounds, or egg shells, and food -soiled paper, such as paper napkins, paper towels, paper plates, coffee filters, paper take-out boxes, pizza boxes, or other paper products accepted by the Contractor's selected composting site. Food Scraps shall not include dead animals, plastics, diapers, cat litter, liquid wastes, ashes, pet wastes, or other materials prohibited by the selected composting facility. The range of Food Scraps handled by the Compostables collection program may be changed from time to time upon the mutual agreement of the Parties to reflect those materials allowed by the jurisdictional health department for the frequency of collection provided by the Contractor. Garbage: All putrescible and non-putrescible solid and semi-solid wastes, including, but not limited to, rubbish, small quantities of bagged cold ashes, demolition and construction wastes, dead small animals completely wrapped in plastic and weighing less than fifteen (15) pounds, and discarded commodities that are placed by Customers in appropriate Containers, bags, or other receptacles for collection and disposal by the Contractor. Needles or "sharps" used for the administration of medication can be included in the definition of "Garbage," provided that they are placed within a sealed, secure container as agreed upon by the City and the Contractor and this handling is consistent with current King County sharps policy. The term "Garbage" shall not include Hazardous Waste, Source -separated Recyclable materials, or Source -separated Compostables. Hazardous Waste: Any hazardous, toxic, or dangerous waste, substance, or material, or contaminant, pollutant, or chemical, known or unknown, defined or identified as such in any existing or future federal, State, or local law, statute, code, ordinance, rule, regulation, guideline, decree, or order relating to human health or the environment or environmental conditions, including but not limited to any substance that is: A. Defined as hazardous by 40 C.F.R. Part 261.3 and regulated as Hazardous Waste by the United States Environmental Protection Agency under Subtitle C of the Resource Conservation and Recovery Act ("RCRA") of 1976, 42 U.S.C. § 6901 et seq., as amended by the Hazardous and Solid Waste Amendments ("HSWA") of 1984; the Toxic Substances Control Act, 15 U.S.C. § 2601 et seq., as may be amended; or any other federal statute or regulation governing the treatment, storage, handling, or disposal of waste imposing special handling or disposal requirements similar to those required by Subtitle C of RCRA; B. Defined as dangerous or extremely hazardous by WAC 173-303-040, as may be amended, and regulated as dangerous waste or extremely hazardous waste by the Washington State Department of Ecology under the State Hazardous Waste Management Act, Chapter 70.105 RCW, or any other State statute, regulation or rule governing the treatment, storage, handling, or disposal of wastes and imposing special handling requirements similar to those required by Chapter 70.105 RCW; and City of Tukwila 4 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 53 C. Any substance that comes within the scope of this definition after the Date of Execution of this Contract. Any substance that ceases to fall within this definition after the Date of Execution of this Contract shall not be deemed to be Hazardous Waste. King County Disposal System: The areas owned, leased, or controlled by King County, Washington for the disposal of Garbage, or such other site as may be authorized by the current King County Comprehensive Solid Waste Management Plan and the Interlocal Agreement between the City and King County. Micro -Can: A water -tight plastic Container not exceeding ten (10) gallons in capacity; fitted with two sturdy handles, one on each side; and fitted with a tight cover. Multifamily: A multiple -unit Residence with multiple attached or unattached dwellings billed collectively for collection service. This includes shared Containers as well as individual Containers for each Residence. Office Hours: The times during which a Contractor administrative and management staff shall be available to respond to City staff inquiries. Office Hours shall be 8:00 a.m. PST through 5:00 p.m. PST, Monday through Friday of each week. Holidays, as defined by King County's transfer station schedule, are excluded. On-call: The provision of specified services only upon direct phone, written, or e-mailed request of the Customer to the Contractor. Party: Either the City or the Contractor. Parties: The City and Contractor. Private Road: A privately -owned and maintained way that allows for access by a service vehicle and that serves multiple Residences. Public Street: A public right-of-way used for public travel by motor vehicle, including public alleys. Recycling: The preparation, collection, transport, processing, and marketing of Recyclables. Recyclables: The materials designated as being part of a Residential or Commercial Recycling collection program, as listed in Exhibit C. Residence/Residential: A Single -Family and/or Multifamily living space individually rented, leased or owned. Services: The comprehensive Garbage, Recyclables, and Compostables collection and processing services provided by the Contractor pursuant to the Contract. City of Tukwila 5 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 54 Service Area: The initial service area boundaries shall be a portion of the corporate boundaries of the City, which are currently as shown on Exhibit A hereto. In the event of a change to the corporate boundaries of the City, the Service Area may be changed in accordance with Section 4.1.1. Single -Family Residence: All one -unit houses, duplexes, triplexes, four-plexes, and mobile homes that are billed for collection service individually and located on a Public Street or Private Road. Source -separated: Certain reclaimable materials that are separated from Garbage by the generator for recycling or reuse, including but not limited to Recyclables, Compostables, and other materials. State: The State of Washington. Strike Contingency Plan: The plan the Contractor will develop pursuant to Section 4.1.18 of this Contract. Tipping Fee: The per -ton disposal fee assessed on the Contractor by the County for Garbage delivered to County disposal facilities. Transition and Implementation Plan: The plan that the Contractor will develop pursuant to Section 4.1.21 of this Contract. Unacceptable Waste: Highly flammable substances, Hazardous Waste, liquid wastes, special wastes, certain pathological and biological wastes, explosives, toxic materials, radioactive materials, material that the disposal facility is not authorized to receive and/or dispose of, and other materials deemed by federal, State, or local law, or in the reasonable discretion of the Contractor, to be dangerous or threatening to health or the environment, or which cannot be legally accepted at the applicable disposal facility. WUTC: Washington Utilities and Transportation Commission. Yard Debris: Leaves, grass, prunings, branches and small trees. Materials larger than four inches (4") in diameter or four feet (4') in length are excluded. Bundles of Yard Debris up to two feet (2') in diameter by four feet (4') in length and no more than fifty-five (55) pounds, shall be allowed, and shall be secured by degradable string or twine, not nylon or other synthetic materials. Un -flocked, undecorated whole Christmas trees cut to less than six feet (6") in height are acceptable. Kraft paper bags, or Cans labeled "Yard Debris" may also be used to contain extra Yard Debris. 2. TERM OF CONTRACT The Term of this Contract is ten (10) years starting on the Date of Commencement of Service. The City may, at its sole option, extend the agreement for one extension which shall not exceed two (2) years in duration. The extension shall be under the terms and conditions of this Contract, as amended by the City and Contractor from time to time. To exercise its option to extend this Contract, notice shall be given by the City to the Contractor no less than ninety (90) Days prior to the expiration of the Contract term or the expiration of a previous extension. 3. CONTRACTOR REPRESENTATIONS AND WARRANTIES City of Tukwila 6 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 55 The Contractor represents and warrants to the City as follows: • Organization and Qualification. The Contractor is duly incorporated, validly existing, and in good standing under State laws, and has all requisite corporate power and authority to enter into and to perform its obligations under this Contract. • Authority. This Contract has been validly executed by an authorized representative of the Contractor, with the authority to sign on behalf of and bind the Contractor, and this Contract constitutes a valid and legally binding and enforceable obligation of Contractor. • Government Authorizations and Consents. The Contractor has or will obtain at its sole cost prior to the Date of Commencement of Service any such licenses, permits, and other authorizations from federal, State, and other governmental authorities, as are necessary for the performance of its obligations under this Contract. • Accuracy of Information. None of the representations or warranties in this Contract, and none of the documents, statements, reports, certificates, or schedules furnished or to be furnished by the Contractor pursuant to this Contract or in connection with the performance of the obligations contemplated under this Contract, at any time contain untrue statements of a material fact or omissions of material facts. • Independent Examination. In accepting these responsibilities, the Contractor represents and affirms that it has made its own examination of all conditions affecting the performance of this Contract, currently and into the future, and of the quantity, quality, and expense of labor, equipment, vehicles, facilities, properties, materials needed, and of applicable taxes, permits, and applicable laws. The Contractor affirms that within the Service Area it is aware of the present placement and location of all Containers. The Contractor represents and warrants that it is capable of collecting all Containers from their present locations, and that it is capable of providing service to and collection of Containers in any areas of the Service Area that may be built out or developed during the term of this Contract. 4. SCOPE OF WORK 4.1 General Collection System Requirements 4.1.1 Service Area The Contractor shall provide all Services pursuant to this Contract throughout the entire Service Area. If, during the term of the Contract, additional territory is added to the City through annexation or other means within which the Contractor has an existing WUTC certificate or other franchise for solid waste collection at the time of annexation, the Contractor shall, from the date of annexation, make collection in the annexed area in accordance with the provisions of this Contract at the unit prices set forth in this Contract. This Contract is in lieu of a franchise as provided in RCW 35A.14.900. The Contractor agrees that their WUTC certificate applicable to such additionally annexed territory areas shall be cancelled effective on City of Tukwila 7 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 56 the date of annexation by the City. The Contractor expressly waives and releases its right to claim any and all damages or compensation from the City, its officers, agents, or assigns arising out of the cancellation of any pre-existing permit or franchise held by the Contractor prior to annexation, and further specifically waives the right to receive any additional compensation or any rights of collection in the newly annexed territory. The term during which the Contractor shall service any future annexation areas shall be seven (7) years from the date of annexation, notwithstanding the term set forth in Section 1 of this Contract. If, during this seven (7) year period, this Contract terminates for any reason, and a new service provider is engaged to provide collection services under the terms of a new collection contract, the Contractor agrees to provide the services outlined in the new contract to customers in the annexed area in accordance with the provisions of that new collection contract at the unit prices set forth in that new collection contract, through the duration of the seven (7) year period, unless such area has been transferred to the new service provider prior to the end of that seven (7) year period. If, during the term of the Contract, additional territory is added to the City through annexation within which the Contractor does not have an existing WUTC certificate or other franchise for Garbage or other collections, then, upon written notification from the City, the Contractor agrees to make collections in such annexed areas in accordance with the provisions of this Contract at the unit price set forth in this Contract. The City will indemnify, hold harmless and defend the Contractor from any and all claims, actions, suits, liability, loss, costs, expenses and damages, including costs and attorney fees arising out of the Contractor's service in such annexed territory under this Contract. In the event that additional territory is added to the Contract Service Area, the City acknowledges that equipment, such as Contract -compliant vehicles and Containers, may take time to procure; and therefore, shall not charge performance fees as outlined in Section 6.1 to the Contractor for reasonable delays in the provision of services to annexed areas covered by this section due to procurement delays that are not within the control of the Contractor. 4.1.2 Service to Residences on Private Roads and Driveways The Contractor shall provide Curbside service to all Residences located on Private Roads, except as noted in this Section. Drive-in charges are to be used only for requested service on Driveways and are prohibited on Private Roads. The Contractor shall use smaller limited -access service vehicles as necessary to provide service to those Customers. In the event that the Contractor believes that a Private Road cannot be safely negotiated or that providing walk-in service on Driveways for Single -Family Residence Customers is impractical due to distance or unsafe conditions, the Contractor shall document the condition for the City and Customer and provide safe and appropriate alternative service to the Customer. If the Contractor believes that there is a probability of Private Road or Driveway damage due to the Contractor's vehicles, the Contractor shall inform the respective Customer(s) and may require a road damage waiver agreement in a form previously approved by the City. In such event, if the Customer(s) refuse to sign such a road damage waiver, the Contractor may decline to provide service on those Private Roads or Driveways, and the Customer(s) will only be serviced from the closest Public Road access. 4.1.3 Hours/Days of Collection City of Tukwila 8 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 57 All Residential collections by Contractor shall be made between the hours of 7:00 a.m. and 7:00 p.m. PST on each weekday, unless the City authorizes a temporary extension of hours or days. Saturday collection is allowed to the extent consistent with holiday schedules (Section 4.1.6) and inclement weather schedule (Section 4.1.7). The Contractor may perform Commercial collections twenty-four (24) hour per day, provided such services do not take place in areas adjacent to Residential dwellings and do not result in noise complaints to the Contractor or City from Residential Customers in the vicinity. If complaints are received, the Contractor shall use its best efforts to reroute or otherwise mitigate the noise complaint. 4.1.4 Employee Conduct The Contractor's employees collecting Garbage, Recyclables, or Compostables shall at all times be courteous, refrain from loud, inappropriate or obscene language, exercise due care, perform their work without delay, minimize noise, and avoid damage to public and private property. The Contractor's crews shall make collections in an orderly and quiet manner, and shall return all Containers, in an upright position, with lids closed and attached, to their original set -out location. If on private property, Contractor employees shall follow the regular pedestrian walkways and paths, returning to the street after replacing empty Containers. Contractor employees shall not trespass or loiter, cross flowerbeds, hedges, planting strips, or property of adjoining premises, or meddle with property that does not concern them or their task at hand. While performing work under the Contract, Contractor employees shall wear a professional and presentable uniform with a company emblem visible to the average observer, and carry photo identification on their person. At the City's option and direction, Contractor employees shall work with groups or organizations, such as neighborhood community organizations, homeowner associations, or the City's Utilities, Police, or Fire Departments, for training to recognize and call the appropriate agency when suspicious activities are observed. If any person employed by the Contractor to perform collection services is, in the opinion of the City, incompetent, disorderly, or otherwise unsatisfactory, the City shall promptly document the incompetent, disorderly, or unsatisfactory conduct in writing and transmit the documentation to the Contractor with a demand that such conduct be corrected. The Contractor shall promptly investigate any written complaint from the City regarding any unsatisfactory performance by any of its employees and take immediate corrective action. The City reserves the right to request at any time that the person be removed from all performance of additional work under this Contract. The Contractor shall remove the employee from Contract work within four (4) hours of City notification. 4.1.5 Disabled Persons Service The Contractor shall provide carry -out service for Garbage, Recyclables, and Compostables to Single - Family Residence Customers in cases where no household member has the ability to place Containers at the Curb, at no additional charge. The Contractor shall establish criteria that are fair and meet the needs of the City's disabled residents when determining whether a household member is unable to place Containers at the Curb. These criteria shall comply with all federal, State, and local regulations, and shall be subject to City review and approval prior to program implementation. City of Tukwila 9 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 58 4.1.6 Holiday Schedules The Contractor shall observe the same holiday schedule as the King County transfer stations. When observed holidays fall on a regular collection day, the Contractor shall reschedule the remainder of the week of regular collection to the next succeeding business day, which shall include Saturdays. The Contractor may not collect Single -Family Residence and Multifamily Garbage, Recyclables, or Compostables earlier than the regular collection day due to a holiday. Commercial collections may be made one (1) day early only with the consent of the Commercial Customer. Holiday scheduling information shall be included in written program materials, on the Contractor's website, on the Contractor's social media accounts, and by press releases to general news media in the Service Area by the Contractor the week prior to the holiday affecting service. 4.1.7 Inclement Weather and Other Service Disruptions When weather conditions are such that continued operation would result in danger to the Contractor's employees, area residents or property, the Contractor shall collect only in areas that do not pose a danger. The Contractor shall notify the City by 7:00 a.m. PST that same business day of its collection plans and outcomes for each day that severe inclement weather is experienced. The Contractor shall collect Garbage, Recycling and Compost from Customers with interrupted service on the first day that regular service to a Customer resumes and shall collect reasonable accumulated volumes of Garbage, Recycling, and Compost equal to what would have been collected on the missed collection day(s) from Customers at no extra charge. Following notification to the City, the Contractor will be provided temporary authorization to perform collection services after 7:00 p.m. PST and/or on Saturdays following disruptions due to weather in order to finish collection routes. If successive weather events occur on the same scheduled collection day(s) two collection cycles in a row for a single collection day (i.e., Tuesday Customers), an additional collection will be made on the next possible day that same week, (i.e. not waiting for the regularly scheduled collection day for the missed area.) If multiple days are missed due to inclement weather in multiple weeks, collections shall be made on the next regularly scheduled collection day. In the event of successive service disruptions impacting entire neighborhoods, the Contractor shall provide temporary Residential Garbage and Recycling collection sites using driver -staffed Drop Box Containers or other suitable equipment, with no additional charge assessed for such temporary service. The inclement weather/disruption in service requirements in this Section 4.1.7 may be changed upon mutual written agreement of the Contractor and City at any time during the term of this Contract to better serve Customers. All holiday and weather policies shall be included in program information provided to customers. On each inclement weather day, the Contractor shall release notices of service suspension and alternative collection schedules to a media list approved by the City notifying residents of the modification to the collection schedule. The Contractor shall use automated dialing services e-mail, or text messages to inform Customers at the route level about service changes, provided that Customers shall be provided the option of using their preferred method or to opt out of communications. Contractor shall update their website with inclement weather conditions by 8:00 a.m. PST. City of Tukwila 10 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 59 When closure of roadways providing access or other non -weather related events beyond the Contractor's control prevent timely collection on the scheduled day, the Contractor shall make collections on the first day that regular service to a Customer resumes, collect reasonable accumulated volumes of materials equal to what would have been collected on the missed collection day(s) from Customers at no extra charge. Following notification to the City, the Contractor will be provided temporary authorization to perform collection services after 7:00 p.m. PST and/or on Saturdays following such disruptions in order to finish collection routes. Delayed or interrupted collections as described in this Section are not considered service failures for purposes of Section 6. 4.1.8 Suspending Collection from Problem Customers The City and Contractor acknowledge that, in rare cases, some Customers may cause disruptions or conflicts that make continued service to that Customer unsafe or unreasonable. Those disruptions or conflicts may include, but not be limited to, repeated damage to Contractor -provided Containers, threatening or intimidating behavior toward the Contractor, repeated suspect claims of timely set -out followed by demands for return collection at no charge, repeated unsubstantiated claims of Contractor damage to a Customer's property, repeated contamination of Recyclables or Compostables, or other such problems. The Contractor shall make every reasonable effort to provide service to problem Customers. However, the Contractor may discontinue service to a problem Customer after prior written notice is given to the City of the intent to discontinue service, including the name, service address, reason for such action, and whether reasonable efforts to accommodate the Customer and provide services have occurred and failed. If the Customer submits a written letter or e-mail to the City appealing the Contractor decision, the City may, at its discretion, intervene in the dispute. In this event, the decision of the City shall be final. The City may also require the discontinuance of service to any Customer who is abusing the service or is determined to be ineligible. 4.1.9 Missed Collections If Garbage, Recyclables, or Compostables are set out inappropriately, improperly prepared, or contaminated with unacceptable materials, the Contractor shall place in a prominent location a written notification tag that identifies the specific problem(s) and reason(s) for rejecting the materials for collection. Failure to provide proper written notification to Customers, per the contamination reduction program referenced in Section 4.1.11, of the reason for rejecting Garbage, Recyclables, or Compostables shall be considered a missed collection and subject to performance fees, as established in Section 6.1, due to lack of proper Customer notification. The specific provisions in this paragraph may be revised and superseded by the annual promotion and education program (and contamination reduction plan) developed each year by the Contractor and City. The failure of the Contractor to collect Garbage, Recyclables, or Compostables that has been set out by a Customer in the proper manner on the appropriate day shall be considered a missed collection, and the Contractor shall collect the materials from the Customer within one (1) business day of the Contractor's receipt of notification of the missed pick-up. If the Contractor is notified of a missed pick-up by 9:00 a.m. PST the following business day, the missed pick-up shall be collected that same day. The Contractor shall maintain an electronic record of all calls related to missed collections and the response provided by the City of Tukwila 11 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 60 Contractor. Such records shall be made available for inspection upon request by the City, and the information shall be included in monthly reports. (See Reporting requirements set forth in Section 4.3.4). If the Contractor is requested by the Customer to make a return trip due to no fault of the Contractor, which the Contractor can prove through documentation (e.g., the Containers were not placed at the curb on time and the driver documented that fact in a log, with a photograph, etc.), the Contractor shall charge the Customer an additional return trip fee for this service, provided the Contractor notifies the Customer of this charge in advance and the Customer agrees to payment of the return trip fee. The Contractor will not be liable for a missed collection in such case. 4.1.10 Same Day Collection Collection of Garbage, Recyclables, and Compostables shall occur on the same regularly scheduled day of the week for Single -Family Residence Customers. Collection of Garbage, Recyclables, and Compostables for Multifamily and Commercial Customers can be scheduled on different days for each material. 4.1.11 Requirement to Recycle and Compost and Quality Assurance The Contractor shall use processing facilities to recycle or compost all Source -separated Recyclables and Compostables collected under this Contract (other than residue), unless express prior written permission is provided by the City. The Contractor shall use processing facilities that: 1. Process materials to a high standard to maximize the recovery and recycling of all incoming Recyclable and Compostable materials; 2. Are operated to minimize cross -contamination of materials that would result in otherwise Recyclable materials being misdirected to a market or disposal where they would not be recovered; 3. Are designed and operated to minimize the stream of otherwise recoverable materials destined for disposal. 4. Have sufficient preprocess and screening staff and equipment to ensure that otherwise recoverable materials are not cross -contaminated and rendered non -recyclable due to the nature of the processing facility. The City and Contractor agree that the Contractor is being compensated to fully recycle or compost those incoming materials and that maximum cost-effective recovery is a primary objective of the City's collection programs. The Contractor shall visually inspect Recyclables and Compostables Containers before or during servicing. If the Container contains more than five percent (5%) contamination, the Contractor shall document the contamination and leave an "oops" tag, noting the specific contamination for the Customer. If a Customer received more than three (3) oops tags in a ninety (90) day period, then the Contractor will call the Customer to provide education and outreach services. The Contractor shall develop and implement a contamination reduction program to reduce contamination in Customers' Recyclables and Compostables Containers. The Contractor's program shall include communication, education and outreach to Customers, methods for evaluating Customer compliance with recycling and contamination standards, and thresholds and policies for removing or re-establishing Recyclables and/or Compostables collection service to a customer. If the contamination reduction City of Tukwila 12 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 61 program does not result in a measurable decrease in contamination after a year, the program shall be adjusted or a new program shall be developed to address contamination. The Contractor shall develop the program in consultation with the City, and shall implement the program on approval of the program by the City. The program may be reviewed and adjusted at any time, if both Parties agree that review and adjustment is appropriate. Contractor shall provide such information as the City may request regarding aggregate contamination data that is collected and maintained by the Contractor on a quarterly basis. However, notwithstanding the foregoing or any other provision of this Agreement, the Contractor shall not provide any information to City regarding the contents of any individual Customer's Container. 4.1.12 Routing, Notification and Approval The Contractor shall indicate, on a map acceptable to the City, the day of the week Garbage, Recyclables, and Compostables shall be collected from each Single-family Residence. The Contractor may change the day of collection by giving notice at least thirty (30) Days prior to the effective date of the proposed change to and obtaining written approval from the City. On the City's approval, the Contractor shall provide affected Customers with at least fourteen (14) Days written, phone, and/or e-mail notice of pending changes of collection day. The Contractor shall obtain the prior written approval from the City of the notice to be given to the Customer, such approval shall not be unreasonably withheld. Routing changes shall be implemented in a manner that ensures that no Customer shall receive less than their normal frequency of service (e.g. a weekly Customer shall have no more than seven [7] days between collection days during the shift to the new collection date). 4.1.13 Vehicle and Equipment Type/Age/Condition/Use The Contractor shall use new 2023 or later model year collection vehicles for Garbage, Recyclables, and Compostables collection services performed under this Contract. Back-up collection vehicles used fewer than thirty (30) Days a calendar year shall not be subject to the age requirement that applies to regularly - used vehicles, but shall be: (i) presentable, (ii) in safe working order, (iii) not leak fluids, and (iv) subject to all other conditions of this section. The accumulated annual use of individual back-up vehicles shall be reported in the Contractor's monthly report. Collection vehicles used in the performance of this Contract shall be of sufficient size and dimension to provide service to all Customers. In some cases, this may mean that a small collection vehicle, capable of servicing narrow and/or tight locations must be used, and the Contractor shall make such vehicles available to ensure smooth and effective collection services throughout the Service Area. Collection vehicles shall have a switchable placard that clearly indicates the material stream currently being collected by that vehicle. The colors, trim scheme, and design to be used by the Contractor on the switchable placards shall be subject to the prior written approval of the City. The lack of switchable placards on collection vehicles shall be cause for performance fees as described in Section 6.1. Collection vehicles shall be maintained in a good condition at all times which includes but is not limited to being clean and sanitary, and shall be thoroughly washed at least once each week. All collection vehicles shall have appropriate safety markings, including all highway lighting, flashing and warning lights, City of Tukwila 13 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 62 clearance lights, and warning flags, all in accordance with current statutes, rules and regulations. Collection vehicles shall be repaired and/or have damaged areas repainted upon showing rust on the body or chassis or at the request of the City. All parts and systems of the collection vehicles shall operate properly and be maintained in a condition compliant with all federal, State, and local safety requirements and be in a condition satisfactory to the City. All collection vehicles shall be equipped with variable tone or proximity activated reverse movement back-up alarms. The Contractor shall maintain collection vehicles and Containers to ensure that no liquid wastes (e.g., Garbage or Compostables leachate) or oils (e.g., lubricating, hydraulic, or fuel) are discharged to Customer premises or streets. All collection, service, and supervisory vehicles used by the Contractor shall be equipped with a minimum 10 -gallon capacity spill kit. Any collection, service, and supervisory vehicles, or Containers not meeting these standards shall not be used within the Service Area until repairs are made. All collection vehicles shall be labeled with signs on both the front and driver's side door and the rear of the collection vehicle which clearly indicate the vehicle inventory number. The Customer Service phone number shall be labeled on the side of the collection vehicle. Signs shall use lettering not less than four inches (4") high and shall be clearly visible from a minimum distance of twenty feet (20'). Signs, sign locations and the phone number shall be subject to approval by the City. No advertising shall be allowed on Contractor vehicles other than the Contractor's name, logo and Customer Service phone number and website address, unless otherwise previously approved in writing by the City. Special promotional messages may be permitted, upon the City's prior written approval. The City's approval shall be in writing and solely within the City's discretion. In addition, any Contractor vehicle regularly used in the City shall include a placard clearly visible at the rear of the vehicle. This placard will show, in lettering at least 12" high, an abbreviated truck designation number specific to the Contractor's operating division, for example T-1, T-2, etc., limited to a two (2) digit numeral to aid in rapid identification of vehicles to allow more precise reporting and correction of any unsatisfactory condition related to specific vehicles. All Contractor collection, service, and supervisory vehicles shall be equipped with properly licensed two-way communication equipment. The Contractor shall maintain a base station or have communication equipment capable of reaching all collection areas. Collection vehicles shall also be equipped with back- up cameras, as well as route -recording cameras integrated with their on -board route management system. All collection vehicles shall be equipped with global positioning systems (GPS), as well as an on -board computer and data tracking system to track route progress and log non -set -outs, extras, and other service issues. The system shall incorporate photo documentation of route exceptions. The Contractor's drivers shall be fully trained and required to use these systems. The resulting data shall be uploaded to the Contractor's Customer Service database no less than daily to allow Customer Service personnel to be fully apprised of route progress, and be able to address misses and other Customer inquiries in near real-time. The Contractor shall provide to the City, on the Date of Commencement of Service of this Contract, a complete initial inventory of the vehicles and facilities to be used in the performance of this Contract. The inventory shall include each vehicle (including chassis model year, type of body, material collected, capacity, model, and vehicle identification number) and each facility to be used in performance of this Contract (including address and purpose of the facility). The Contractor may change vehicles and facilities from time to time, and shall include the revised inventory in the monthly report provided for in Section 4.3.4.1. The Contractor shall maintain vehicles and facilities levels during the performance of this Contract City of Tukwila 14 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 63 at least equal to those levels described in the initial inventory. The City reserves the right to request maintenance history logs for vehicles or equipment during the performance of this Contract. 4.1.14 Container Requirements and Ownership Contractor Garbage fees included in Exhibit B include all costs of the associated Containers unless Container rental for a particular service is specifically listed in Exhibit B, such as rent for Drop -box Containers. Single -Family Residence, Multifamily, and Commercial Customers must use Contractor -provided Containers for their initial Container of Garbage collection service, with the exception of compacting Drop - box Containers, which may be Customer -owned or Customer -leased from other parties. Plastic bags or Cans may be used for excess volumes of Garbage, but not as a Customer's primary container. In the event the Customer uses a Can for Extra Units, the Contractor shall handle the Customer -owned Can in such a way as to prevent undue damage. The Contractor shall be responsible for unnecessary or unreasonable damage to or for unrequested removal of Customer -owned Containers. All Contractor -provided Containers shall be permanently, clearly, and prominently screened, molded -in, molded -on, imprinted, or otherwise labeled in a fashion that any reasonable person can readily determine the intended material for the Container. The Container must also be labeled with the size capacity and material preparation requirements. Contractor -provided Containers shall not be screened, molded -in, molded -on, imprinted, or otherwise permanently labeled with the Contractor's logo or company name unless the City provides written permission. 4.1.14.1 Garbage, Recyclables, and Compostables Carts The Contractor shall provide a Micro -can, or twenty (20), thirty-two (32) or thirty-five (35), forty-five (45), sixty-four (64), and ninety-six (96) gallon Garbage Carts for the respective level of Garbage collection, thirty-two (32) or thirty-five (35), sixty-four (64), and ninety-six (96) gallon Recycling Carts for Recyclables collection, and thirty-two (32) or thirty-five (35), sixty-four (64), and ninety-six (96) gallon Compostables Carts for Compostables collection. The City shall transfer ownership of existing in-place Carts to the Contractor, and the Contractor shall wash and re -label all Carts no later than January 30, 2024. All replacement Carts shall be manufactured from a minimum of fifteen percent (15%) post -consumer recycled plastic, with a lid that will accommodate a label. Carts shall be provided to requesting Customers within seven (7) Days of the Customer's initial request. All Carts must have materials preparation instructions including any Customer actions that would void manufacture warranties (such as placement of hot ashes in the container causing the container to melt), procedures to follow to minimize potential fire problems, and phone and website contact information printed on a sticker on the lid. If this sticker is destroyed or removed, Contractor shall replace the sticker within seven (7) Days of being notified by the Customer or City. All Contractor -provided Carts shall be maintained by the Contractor in good condition for material storage and handling; contain no jagged edges or holes; contain wheels or rollers for movement and be equipped with an anti-skid device or sufficient surface area on the bottom of the Container to prevent unwanted movement. City of Tukwila 15 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 64 Collection crews shall note missing or damaged lids, damaged hinges, holes, missing or poorly functioning wheels, and other similar repair needs for Contractor -provided Carts (including those for Garbage, Recyclables, and Compostables), and forward written or electronic repair notices that same day to the Contractor's service personnel. Repairs shall then be made within seven (7) Days at the Contractor's expense. Any Cart that is damaged or missing on account of an accident, collection truck mechanical error, act of nature or the elements, fire, or theft or vandalism by a third party shall be replaced not later than three (3) business days after notice from the Customer or the City. In the event that a Cart is inadvertently lost into a collection vehicle during collection due to mechanical or operator error, Customers shall be notified on the same day via a door knocker tag of the incident and a replacement Cart shall be provided within twenty-four (24) hours of the loss. Replacement Carts may be used and reconditioned, but shall be presentable and cleaned before delivered to the Customer. Unusable Containers shall be cleaned (if necessary) and recycled to the extent possible. In the event that a Customer repeatedly damages a Container or requests more than one replacement Container during the term of the Contract due to negligence or intentional misuse, the Contractor shall forward in writing the Customer's name and address to the City. The City shall then attempt to resolve the problem. In the event that the problem continues, the Contractor may charge the Customer a City - approved Container repair or replacement fee and/or discontinue service to that Customer, provided the City provides previous written approval. 4.1.14.2 Detachable Containers and Drop -box Containers The Contractor shall furnish and install one (1), one and a half (1.5), two (2), three (3), four (4), six (6), and eight (8) cubic yard Detachable Containers, and ten (10), fifteen (15), twenty (20), twenty-five (25), thirty (30), and forty (40) cubic yard un -compacted Drop -box Containers to any Customer who requires their use for storage and collection of Garbage, Recyclables or Compostables within three (3) Days of the Customer's request. Containers shall be located on the premises in compliance with any related ordinance, and a manner satisfactory to the Customer and for collection by the Contractor. The Contractor shall charge rent for temporary and permanent Drop -box Container service in accordance with Exhibit B. The Contractor may not charge Customers any additional fees, charges, rates, or any expenses in connection with Drop -box Container service other than the applicable fees listed in Exhibit B. Detachable Containers shall be watertight and equipped with tight -fitting metal or plastic covers; have four (4) wheels for Containers four (4) cubic yards and under unless site-specific concerns dictate the use of a non -wheeled Container; be in good condition for Garbage or Recyclables storage and handling; be safe for the intended use; and, have no leaks, jagged edges, or holes. Drop -box Containers shall be all - metal, and if requested by a Customer, equipped with a tight -fitting screened or solid cover operated by a winch in good repair. Detachable Containers shall be cleaned, reconditioned, and repainted (if necessary), at the Contractor's expense before being supplied to a Customer who had not used it earlier. The Contractor shall provide a fee-based On-call Detachable Container cleaning service to Customers. As between the Contractor and the City, all Containers on Customers' premises are at the Contractor's risk and not the City's. The Contractor shall repair or replace within one (1) business day any Container that was supplied by or taken over by the Contractor and was in use if the City Code Compliance Inspector, City of Tukwila 16 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 65 King County Health Department Inspector, or other agent having safety or health jurisdiction determines that the Container fails to comply with reasonable standards or constitutes a health or safety hazard. The Contractor shall place Detachable Containers in areas mutually agreed upon by the Contractor and Customer with the least slope and best vehicle access possible. For Customers that must stage their Detachable Containers on Public Streets or on significantly sloped hills, the Contractor shall make a good faith effort to work with the Customer to ensure that Detachable Containers are not left unattended in potentially problematic staging areas and are sufficiently restrained such that the Container may not roll and cause harm to persons or property. The Contractor may require a Customer to attend to the Containers immediately prior to and after collection. Any disputes arising between the Contractor and a Customer as to what constitutes a "significantly sloped hill" or a "safety hazard" shall be submitted in writing to the City, and the City's decision shall be final. Containers shall be replaced after emptying in the same location as found, with the lid closed. Customer Containers shall be supplied by the Contractor, with the exception of compactors. Customers may elect to own or secure secondary Containers from other sources, and shall not be subject to discrimination by the Contractor in collection services on that account, provided that such Containers (including Carts) are compatible with the Contractor's collection equipment. However, Containers owned or secured by Customers must be properly labeled to be eligible for collection. The Contractor shall provide Garbage, Recyclables, and/or Compostable Container labels to Customers for use on personal Containers upon request. The Contractor is not required to service Customer Containers that are not compatible with the Contractor's equipment. In the event that a Customer damages a Detachable Container or Drop -box Container due to negligence or intentional misuse, the Contractor may charge the Customer a City -approved Container repair or replacement fee and/or discontinue service to that Customer, provided the City provides previous written approval. 4.1.14.3 Ownership At the end of the Contract Term or in the event the Contract is terminated for any reason, all Containers at Customer locations used by Contractor to provide Contract Services, shall, at the option of the City, revert to City ownership without further compensation to the Contractor. Temporary Containers, Compactor Drop -box Containers leased to Customers outside of this Contract, and all Containers held in reserve at the Contractor's yard and not actively in service at a Customer location are excluded from this provision. The City may elect to assign this potential ownership of said Containers to a third -party, and shall provide written notice to the Contractor. Any remaining warranties associated with the Containers described herein shall be transferred to the City or the City's assignee. The City in advance accepts all such Containers in their "as -is, where -is" condition and without any express or implied warranty by the Contractor of any kind, including but not limited to any warranty of fitness for any particular purpose or any warranty of merchantability. As between the City and the Contractor, the City assumes all risks of loss or liability on account of the City's exercising of its rights under this Section 4.1.14.3 or any use made of any such Containers after they become the property of the City or assignee of the City. City of Tukwila 17 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 66 4.1.14.4 Container Colors and Labeling Contractor -provided Carts and Detachable Containers for Recyclables shall be blue, Compostables Carts shall be grey, and Carts and Detachable Containers for Garbage shall be green. Specific Container colors shall be approved in writing by the City prior to the Contractor's order of new Containers. All distributed Containers shall be labeled with instructional information and contact information that include both a Customer Service phone number and website address. In-place Containers inherited from the City's previous contractor shall be washed and relabeled within sixty (60) Days of the start of collection services under this Contract. All labels shall be approved by the City prior to ordering by the Contractor. Location of the label on Containers shall be subject to the City's prior approval. Labels shall be replaced when faded, damaged, or upon the City or Customer request. Should any changes be made to the Garbage, Recycling, or Compostables collection program, the Contractor at their sole expense shall reproduce and reaffix labels on all Containers. The City may, at its option, provide labels to the Contractor to be affixed on the initial and replacement inventory of Carts and the Contractor shall place on the specified location on each Cart. The City shall reimburse the Contractor the Contractor's cost of applying the City's labels. All Detachable Containers and Drop -box Containers to be used for Garbage or Recyclables collection shall have materials preparation instructions and phone/contact information, including both a Customer Service phone number and a website address, printed on a sticker, and subject to the prior written approval of the City. All Detachable Containers and Drop -box Containers to be used for Garbage or Recyclables shall have a sticker affixed that indicates no charge replacement or repair for leaky or broken Containers, and provides a phone number to call. Information shall be printed in a size that is easily read by the users, on durable UV -resistant label stock squarely affixed to each Container. All labels shall be approved in writing by the City prior to ordering by the Contractor. Location of the label on the Containers shall be subject to the City's prior written approval. Containers used for the collection of Recyclables from Multifamily and Commercial Customers shall be relabeled by the Contractor if labels fade, are unreadable, contain incorrect information, or upon City's request for any individual Container. 4.1.14.5 Container Weights The Contractor shall not be required to lift or remove materials from any Container exceeding the safe working capacity of the Container, lifting mechanism, or collection vehicle. For Drop -box Containers, the combined weight of the Drop -box and contents must not cause the collection vehicle to exceed legal road weight limits. Any loose Extra Units or Recyclables that are not place in a Container and must be manually loaded shall be limited to fifty (50) pounds per bag or bundle unless otherwise authorized by the Contractor. 4.1.14.6 Container Removal Upon City or Customer Request The Contractor shall remove all Containers automatically upon service cancellation within seven (7) Days of the cancellation or upon three (3) business days of specific Customer, property manager, property City of Tukwila 18 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 67 owner, or the City's request. The contents of removed Containers shall be managed as if they were collected on a regular route (e.g. Recyclables shall be recycled, Compostables shall be delivered for composting). The disposal or recycling of materials accumulating in the Contractor's Container at the former Customer's location after the final Customer -paid collection shall be at the Contractor's, not Customer's cost. Failure to remove Containers within the specified timeline shall be subject to the same performance fees as delayed Container delivery for that Customer sector. 4.1.15 Spillage All loads collected by the Contractor shall be completely contained in collection vehicles at all times, except when material is actually being loaded. Hoppers on all collection vehicles shall be cleared frequently to prevent the occurrence of unnecessary blowing, leakage, or spillage. Any leakage or spillage of materials upon the road surface or exposed appurtenances that occurs during collection shall be cleaned up or removed by the Contractor within four (4) hours of the Contractor's knowledge of the leakage or spillage at its sole expense. Any associated spillage or leakage entering the City's municipal storm system shall be cleaned promptly by Contractor staff, to the extent possible. The Contractor shall be responsible for all City's costs in the event that City staff or contractors are required for spill containment or cleaning due to the Contractor's action. The Contractor shall document the fluid leakage, including taking pictures before and after clean-up or removal, and shall provide this documentation to the City. Leakage or spillage not cleaned up or removed by the Contractor within the required time frame shall be cause for performance fees, as described in Section 6.1 and may be subject to fines and penalties pursuant to City municipal code. Should a leakage or spillage occur during collection, the Contractor shall notify the designated City contact. Contractor expressly acknowledges it is solely responsible for any federal, State, or local violations, which may result from said leakage or spillage. Any leakage or spillage of materials that occurs during collection that is reported by Customers or the City shall be cleaned up or removed by the Contractor within four (4) hours at its sole expense. The Contractor shall document the reported leak or spillage, who reported the incident, and measures made to correct the incident and report this information via e-mail to the Contract administrator within three (3) hours. Failure of the Contractor to comply shall be cause for performance fees, as described in Section 6.1. Any Contractor -supplied Container determined by the City to be leaking shall be replaced by the Contractor within one (1) business day of notification from the City. Failure of the Contractor to comply shall be cause for performance fees, as described in Section 6.1. 4.1.16 Pilot Programs The City may wish to test and/or implement one or more new services or developments in waste stream segregation, materials processing, or collection technology at some point during the term of this Contract. The City shall notify the Contractor in writing at least ninety (90) Days in advance of its intention to implement a pilot program or of its intentions to utilize a new technology system on a partial or City-wide basis, or as negotiated between the City and Contractor. The costs (or savings) accrued by City -initiated pilot programs shall be negotiated prior to implementation. If the City deems the pilot a success, and desires to incorporate the service or development represented in the pilot program in the terms of this Contract, the City and Contractor each agrees to negotiate in good faith and in accordance with Section City of Tukwila 19 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 68 8.14 to include the provisions of the pilot program into this Contract, including any costs or savings to be accrued. Contractor -initiated pilot programs shall require prior written notification to and written approval by the City. Contractor -initiated pilot programs shall be performed at no additional charge to the City or the Customers; however, costs (or savings) accrued may be subject to negotiations prior to implementation at the City's request. Results of any Contractor -initiated pilot program shall be reported to the City in the monthly reports described in Section 4.3.4.1. The Contractor shall not be required to test or implement any pilot program, new technology, service or development unless the terms and conditions thereof (including any savings or additional compensation to Contractor) have been mutually agreed in writing by the City and Contractor. 4.1.17 Disruption Due to Construction The City reserves the right to construct any improvement or to permit any such construction in any Public Street in such manner as the City may direct, which may have the effect for a time of preventing the Contractor from traveling the accustomed route or routes for collection. However, the Contractor and the City shall develop a reasonable workaround to enable the Contractor to continue to collect Garbage, Recyclables, and Compostables to the nearest extent possible as though no interference existed upon the streets or alleys normally traversed. This shall be done at no extra expense to the City or Customers. 4.1.18 Contractor Planning and Performance Under Labor Disruption No later than ninety (90) Days prior to the expiration of any labor agreement associated with services performed under this Contract, the Contractor shall provide the City in writing with its planned response to labor actions that could compromise the Contractor's performance under this Contract. The planned response will take the form of a Contractor -prepared Strike Contingency Plan and shall address in detail: 1. The Contractor's specific staffing plan to cover Contract Services, including identification of staff resources moved from out -of -area operations and the use of local management staff to provide basic services. The staffing plan shall be sufficient to provide recovery of full operations within seven (7) Days following the initiation of the disruption. 2. Contingency training plans to ensure that replacement and management staff operating routes are able to continue to collect route data and follow collection and material delivery procedures for all material streams collected from Customers. 3. Identification of temporary Drop -box Containers or staffed packer truck locations for all material streams. For all sites identified in the Contractor -prepared Strike Contingency Plan, the Contractor shall list the property owner/lessee's contact information and the date on which permission for temporary use was received. The City shall review these locations, after which the City shall approve or deny in writing use of specific locations. 4. A recovery plan to address how materials will be collected in the event of a short -notice disruption that does not allow the Contractor to collect all materials on their regular schedule (e.g. a wildcat strike) within seven (7) Days following the initiation of the disruption. Except to the extent necessary to preserve the Contractor's attorney-client privilege and attorney work doctrine rights, the Contractor shall keep the City informed of the status of active labor negotiations affecting the Services hereunder on a timely basis, specifically during the period surrounding the end of employee contracts with Contractor employees. In the event that labor disruptions of any kind cause City of Tukwila 20 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 69 reductions in service delivery, the Contractor shall inform the City within three (3) hours by phone and e- mail of the nature and scope of the disruption, as well as the Contractor's immediate plans to activate some or its entire Strike Contingency Plan. At the close of each service day during a Labor Disruption, the Contractor shall report to the City via e-mail the areas (per a detailed map) and customer counts of served and un -served customers by material stream and service sector. The Contractor shall provide make-up collection on Saturday for any Single-family Garbage and Recyclables collection Customers missed during the preceding week. In the event that a disruption lasts more than one full Single-family Residential collection cycle, the Contractor with approval of the City shall provide Drop -box Containers or staffed packer trucks for Customer use for each affected material stream in approved locations throughout the affected route areas, as well as the collection of reasonable quantities of accumulated materials at no additional charge on the next regular collection cycle for each material. If there is no make-up collection, the Contractor shall provide a credit for all service missed equal to the Customers' pro -rata regular rate minus the disposal component on the Customer's next regular invoice. The City and Contractor agree that the following special compensation and performance fees reflect the best estimate of the impacts of the Labor Disruption to Customers and the City. The Contractor shall pay the City monthly by the tenth day of the following month: 1. A cost reimbursement amount of one thousand dollar ($1,000) for each day of Labor Disruption to reimburse staffing and other costs for managing the impacts of the Labor Disruption; 2. A performance fee of two thousand five hundred dollars ($2,500) a day for each day of Labor Disruption from the first (1st) day to the seventh (7th) day of the Labor Disruption; 3. A performance fee of five thousand dollars ($5,000) a day for each day of Labor Disruption from the eight (8th) day to fourteenth (14th) day of the Labor Disruption; and 4. A performance fee of ten thousand dollars ($10,000) a day for each day of Labor Disruption for every day beyond the fourteenth (14th) day of Labor Disruption. The performance fees listed as 2 through 4, above, are intended to apply to any complete work stoppage where alternative but substantially equivalent service by non -striking employees is not provided by the Contractor or otherwise. In the event substantially equivalent service is provided by the Contractor through the employment of non -striking employees at any point during the course of the labor disruption, the Contractor is entitled to reduce the amount of the performance fees that otherwise would be due on a pro -rata basis, based on the percentage of Contract service provided to Customer provided on that day. Given the nature of the failure arising from labor disruptions, the Contractor shall not be allowed any cure period opportunity or rectification process; provided, however, that the City may elect to receive the equivalent value of additional services, as negotiated, in lieu of these specific performance fees. The Contractor's failure to comply with the Contractor -prepared Strike Contingency Plan of this section shall be subject to a special fee of one thousand dollars ($1,000) per day for its non-compliance during the Labor Disruption event. This special fee is separate compensation to the City for the Contractor's failure to plan and execute the provisions of this section. The special fee shall be paid to the City within thirty (30) Days of the Contractor's receipt of the City's invoice. City of Tukwila 21 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 70 Fees paid by the Contractor under the terms of this Section 4.1.18 are not regular performance fees for the purposes of Section 6.1 and shall not be counted in the cumulative performance fee default threshold referenced in Section 6.2 (6). Any Contractor -prepared Strike Contingency Plan or other information communicated by the Contractor to the City pursuant to this section shall be maintained in confidence by the City to the maximum permissible extent under applicable law. 4.1.19 Site Planning and Building Design Review The Contractor shall, upon request and without additional charge, make available site planning assistance to either the City and Customers or potential Customers, and shall publicize the appropriate contact information for this function. The site planning assistance shall be available for all new construction or remodeling of buildings and structures within the Service Area, and shall address the design and planning of Garbage, Recyclables, and Compostables removal areas and their location upon the site of the proposed construction or remodeling project. Contractor planning assistance for optimizing loading docks and other areas shall also be available for existing building managers when realigning Garbage, Recyclables, and Compostables services. 4.1.20 Safeguarding Public and Private Facilities Contractor shall protect all public and private improvements, facilities, and utilities whether located on public or private property, including streets, signs/posts, light poles, planting strips, and trees. If such improvements, facilities, utilities, or streets are damaged as a result of Contractor's operations, Contractor shall notify the City in writing of all damage within four (4) hours, and Contractor shall repair or replace the same or pay the City for the costs of repairs, including overhead and administrative costs. If the damage creates an immediate public safety issue that requires an immediate response, Contractor shall, along with notifying the City in writing, call the City to inform them of such matter. If Contractor fails to do so promptly, as determined by the City, the City shall cause repairs or replacement to be made, and the cost, including overhead and administrative costs, of doing so shall be paid by the Contractor. The Contractor shall be liable for any damage to property or person caused by the negligent actions of Contractor, and the Contractor shall indemnify and hold the City harmless for any such damage or legal implications from said actions. 4.1.21 Transition and Implementation of Contract The Contractor shall develop, with the City's input and prior written approval, and submit to the City no later than thirty (30) Days after the Date of Execution of this Contract, a Transition and Implementation Plan for introducing the new and revised services to the different Customer sectors (i.e., Single-family, Multifamily, and Commercial Customers), and detailing a specific timeline as to when different activities and events will occur, including details of Container delivery, how different events impact other events in the timeline and the process to be used to ensure that implementation occurs with no disruption. The Transition and Implementation Plan shall cover the entire period following the Date of Execution of this Contract, up through and including the six (6) month period following the Date of Commencement of Service. The Transition and Implementation Plan shall describe in detail what is involved with each of the activities and events listed in the timeline. The Transition and Implementation Plan shall also specifically address how the Contractor intends to proceed in the event of inclement weather and what contingency City of Tukwila 22 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 71 plans will be in place to accelerate implementation if Container delivery or other planned activities are impacted by inclement weather. The Contractor shall be responsible for funding all the design, development, printing, sorting, mail prep, delivery, and mailing costs, including the cost of the postage -prepaid mail -back cards and any costs associated with the website ordering services, and of all new and continuing service and educational materials described above and needed to comply with the Transition and Implementation Plan outreach described in this section of the Contract. Any additional promotional, educational, informational, and outreach materials provided by the Contractor to Customers in connection with the initial transition and implementation of the Contract shall be designed, developed, printed, and delivered by the Contractor unless otherwise directed by the City, at the Contractor's cost, and subject to the City's prior review and written approval and the City's final approval as to method of delivery. Customer materials must contain important dates/timelines, answers to frequently asked questions, information about translations available, and a phone number and website for Customers needing additional information. Materials must contain clear and accurate wording, easy - to -read font, professional visual graphics, be free of inaccurate or misleading information, be free of typographical errors, and must be printed on minimum 30% post -consumer recycled paper. The City will be provided a minimum of two (2) weeks to review any of the materials included in the Contractor's Transition and Implementation Plan schedule to allow sufficient time for the City prior review and written approval. 4.1.22 Performance Review The City may, at its option, and upon reasonable notice to the Contractor, conduct a review of the Contractor's performance under this Contract. If conducted, the performance review shall include, but is not limited to, a review of the Contractor's performance relative to requirements and standards established in this Contract, including Customer Service standards. The Contractor agrees to fully cooperate with the performance review and work with City staff and consultants to ensure a timely and complete review process. The results of the performance review shall be presented to the Contractor within thirty (30) Days of completion. Should the City determine that the Contractor fails to meet the Contract performance requirements and standards, the City shall give the Contractor written notice of all deficiencies. The Contractor shall have sixty (60) Days from its receipt of notice to correct deficiencies to the City's satisfaction. If the Contractor fails to correct deficiencies within sixty (60) Days, the City may allow the Contractor additional time to comply, accept other remedies for the service failure or proceed with the contract default process pursuant to Section 6.2 of this Contract, at the City's sole option. The costs of the development and implementation of any action plan required under this Section 4.1.22 or Section 6.1 for the purpose of addressing failures on the part of the Contractor to perform in accordance with the terms and conditions of this Contract shall be paid for solely by the Contractor, and the costs of developing or implementing such action plan may not be passed on to Customers or the City, or included in rates or fees charged Customers. The City may, at its option, and upon reasonable notice to the Contractor, design and implement an alternative annual Contract compliance monitoring program with or without Contractor performance City of Tukwila 23 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 72 incentives. If such a program is desired by the City, the City and Contractor agree to negotiate in good faith the monitoring methodologies used to ensure accurate and unbiased sampling of performance data. The City shall bear the costs of City staff, City -retained consultants and performance incentives (if used) and the Contractor shall bear the costs of Contractor staff and route costs to perform the monitoring. 4.1.23 Continual Monitoring and Evaluation of Operations The Contractor's supervisory and management staff shall be available to meet with the City in person or via phone/video conference, at the City's option, on a weekly basis during the period three (3) months before and two (2) months after the Date of Commencement of Service and monthly throughout the term of the Contract to discuss operational and Contract issues. The Contractor shall continually monitor and evaluate all operations to ensure that compliance with the provisions of this Contract is maintained. The City may periodically monitor collection system parameters such as participation, Container condition, contents weights, and waste composition. The Contractor shall assist and fully cooperate with the City by coordinating the Contractor's operations with the City's periodic monitoring to minimize inconvenience to Customers, the City, and the Contractor. The Contractor also shall provide full access to equipment, processing facilities, route and Customer Service data, safety records, and other applicable information. The City's review of Contractor activities and records shall occur during normal Office Hours and shall be supervised by the Contractor's staff. 4.1.24 Collection/Disposal Restrictions Unless otherwise directed by the City, all Garbage collected under this Contract, as well as residues from processing Recyclables and Compostables (to the extent required for the City to comply with its Solid Waste Interlocal Agreement with the County), shall be delivered to the King County Disposal System in compliance with all King County rules regarding such disposal. Garbage containing obvious amounts of Yard Debris shall not knowingly be collected from Customers and instead prominently tagged with a written notice informing the Customer that the County does not accept Yard Debris mixed with Garbage for collection. Contractor's awareness, knowing, or intentional collection of Garbage mixed with visible Yard Debris shall be grounds for performance fees as provided in Section 6.1. Contractor shall be liable and legally responsible for the Contractor's awareness, knowing, or intentional collection of Garbage mixed with visible Yard Debris. The Contractor shall indemnify and hold the City harmless for any damage or liability resulting from said collection. The Contractor shall not knowingly collect or dispose of Unacceptable Waste or other hazardous materials that are either restricted from disposal or would pose a danger to collection crews. If materials are rejected for this reason, the Contractor shall leave a written notice in a prominent location with the rejected materials listing why they were not collected and providing the Customer with a contact for further information about proper disposal options for such materials. Title to and liability for any Unacceptable Wastes that are included with any materials collected under this Contract by Contractor despite the City's and Contractor's attempts to prevent the inclusion of such City of Tukwila 24 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 73 materials shall not pass to Contractor, but shall remain with the party from whom such Unacceptable Waste or any such other materials or substances is received. Garbage collected by the Contractor may be processed by the Contractor to recover recyclable material; provided, however, that the residual is appropriately disposed of within the King County Disposal System. The processing of such Recyclable material shall only be undertaken with the prior written approval of the County and the City and in accordance with the Solid Waste Interlocal Agreement between the County and the City. Contractor in all such instances shall charge Customers no more than the equivalent Garbage disposal fee within the King County Disposal System or such other disposal fee as the City reasonably directs the Contractor to charge. In addition, hauling fees charged by the Contractor in such instances shall be no higher than those provided for in Exhibit B. 4.1.25 Emergency Response Contractor shall assist the City in the event of a disaster or emergency declaration. Contractor services shall be provided as soon as practical upon City direction and paid at the Contract rates in Exhibit B. Contractor shall keep full and complete records and documentation of all costs incurred in connection with disaster or emergency response, and include such information in the monthly and annual reports required under Section 4.3.4. Contractor shall maintain such records and documentation in accordance with the City's prior written approval and any standards established by the Federal Emergency Management Agency (FEMA), and at the City's request, shall assist the City in developing any reports or applications necessary to seek federal assistance during or after a federally -declared disaster. 4.1.26 Vacation Service Stops Single -Family Residential Customers shall have the option of stopping collection services if their Residence will be vacant for more than four (4) consecutive weeks. The Customer shall not be charged for services during the vacation stop period. The Contractor may charge a standby fee as provided for in Exhibit B for vacation service stop exceeding ninety (90) Days. 4.1.27 Hiring Preference For initial hiring under this Contract, the Contractor and subcontractors shall give hiring preference to any Garbage, Recyclables, or Compostables (including Yard Debris) collection workers who serviced City routes for the previous hauler at the time that the previous collection contract expired and have been displaced as a result of the City awarding this Contract, provided that such workers are fully qualified and meet the Contractor's standards for employment. Nothing in this section is intended to create any third party rights under this Contract. Upon the hiring of a displaced collection worker represented by Teamsters Local 117 or 174, the Contractor shall be required to keep the displaced worker whole in regard to the workers' pay and benefit accruals earned as of the date of displacement. To the extent application of the Contractor's collective bargaining agreement would otherwise result in a reduction in pay or benefits, the existing pay/benefit accrual will be maintained at the current rate until such time as the applicable bargaining agreement provision(s) provides for an increase. Any displaced worker must be reimbursed by the company for any required COBRA payment made in order to retain health care coverage during the time period between City of Tukwila 25 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 74 displacement and when the worker would become eligible for such benefits under the collective bargaining agreement. 4.2 Collection Services 4.2.1 Single -Family Residence Garbage Collection 4.2.1.1 Subject Materials The Contractor shall collect all Garbage placed at Curbside for disposal by Single -Family Residence Customers in, and properly prepared and contained materials adjacent to, Garbage Carts, Cans, and bags. 4.2.1.2 Containers The Contractor shall provide collection Containers to Customers at no additional charge as part of the Customer -chosen service level. Garbage Containers shall be delivered by the Contractor to Single -Family Residence Customers within seven (7) Days of the Customer's initial request. Each Customer's initial Container must be a Contractor -provided Container, provided that Garbage in excess of the Customer's initial Container may be bundled or placed in a Customer -owned Can or plastic bag. 4.2.1.3 Specific Collection Requirements The Contractor shall offer regular weekly collection of the following service levels: 1. Ten (10) gallon Micro -can; 2. Twenty (20) gallon Garbage Cart; 3. Thirty-two (32) or thirty-five (35) gallon Garbage Cart; 4. Forty-five (45) gallon Garbage Cart; 5. Sixty-four (64) gallon Garbage Cart; and 6. Ninety-six (96) gallon Garbage Cart. The Contractor shall also offer a service of once per month collection of non-putrescible waste in a thirty- two (32) or thirty-five (35) gallon Cart. Carry -out surcharge fees shall be assessed only to those Customers who choose to have the Contractor move Containers to reach the collection vehicle at its nearest point of access, unless otherwise provided for in this Contract. The Carry -out surcharge fee listed in Exhibit B shall be charged once for all three collection streams. Garbage in excess of Container capacity or the subscribed service level shall be collected and properly charged as Extra Units to the Customer; with the exception of excess Garbage collection otherwise authorized under this Contract at no additional charge to the Customer. Extra charges may be assessed for materials loaded so as to lift the Container lid in excess of six inches (6") from the normally closed position. Overweight Containers shall be left at the Curb and tagged with written notification as to why it was not collected. City of Tukwila 26 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 75 The Contractor shall maintain route lists in sufficient detail to allow accurate recording and charging of all Extra Units. Customers shall be allowed to specify that no Extra Units be collected without prior Customer notification, which shall be provided by the Single -Family Residence Customer no less than one (1) business day prior to that Customer's regular collection. If a Customer specifies no Extra Units, than such materials shall be left at the Curb uncollected and tagged with written notification as to why it was not collected. Collections shall be made from Single -Family Residences on a regular schedule on the same day and as close to a consistent time as possible. The Contractor shall offer Single -Family Residential Customers an On -Call clean-up program that allows each Single -Family Customer to place up to two (2) cubic yards of Garbage once each year at the Curb for collection on the Customer's regular collection day, provided that any individual item is no larger than three feet (3') by three feet (3'), plus four (4) non -appliance bulky items such as couches or large chairs. The Contractor shall track usage to ensure that no Customer uses more than their allowed one collection per calendar year, unless they pay for regular Extra Units or Bulky Waste collection service. 4.2.2 Single -Family Residence Recyclables Collection 4.2.2.1 Recyclable Materials Residential Recyclables shall be collected from all participating Single -Family Residences Customers as part of Garbage collection services, at no additional charge. If operational or recycling processing improvements are made that allow additional materials to be recycled at no additional cost to the Contractor, the Contractor agrees to expand the defined list of Residential Recyclables to cover such materials, subject to prior written approval by the City. The Contractor shall collect Curbside prepared Recyclables as described in Exhibit C. With the exception of Corrugated Cardboard, the maximum dimensions for Recycling materials shall be two feet (2') by two feet (2'). The City reserves the right to engage in product stewardship and/or waste prevention activities that may result in one or more materials being removed from the Exhibit C list. 4.2.2.2 Containers The Contractor shall provide collection Recycling Containers to Customers at no charge. The default Recycling Cart size shall be ninety-six (96) gallons, provided that the Contractor shall offer and provide thirty-two (32)/thirty-five (35) or sixty-four (64) gallon Recycling Carts on request to those Single -Family Residence Customers requiring less capacity than provided by the standard ninety-six (96) gallon Recycling Cart. A Customer may request and receive from the Contractor one additional Recycling Cart at no additional charge. Additional Carts above the two provided at no cost shall be charged at the extra Recycling Cart rate provided in Exhibit B. Recycling Carts shall be delivered by the Contractor to new Single -Family Residence Customers, those Customers requesting replacements or additional Carts, or Customers that had previously rejected their Recycling Cart, within seven (7) Days of the Customer's initial request. City of Tukwila 27 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 76 4.2.2.3 Specific Collection Requirements Single -Family Residence Recyclables collection shall occur every -other -week on the same day as each household's Garbage and Compostables collection. Collections shall be made from Residences on a regular schedule on the same day and as close to a consistent time as possible. The Contractor shall collect on Public Streets and Private Roads in the same location as Garbage collection Service. The Contractor shall collect all Residential Recyclables from Single -Family Residences that are placed in Carts, paper bags, boxes, or labeled Cans next to the Customers' Recycling Cart. Customers choosing to use their own Containers for excess Recycling shall be provided, upon Customer request, durable labels by the Contractor that clearly identify the Container's contents as Recycling. Recyclables must be prepared as described in Exhibit C and uncontaminated with food or other residues. No limits shall be placed on set -out volumes for Curbside Recyclables, other than those specifically listed in Exhibit C. 4.2.3 Single -Family Residence Compostables Collection 4.2.3.1 Subject Materials The Contractor shall provide subscription -based (user fee-based) Compostables collection services to requesting Single -Family Customers. 4.2.3.2 Containers A Compostables Cart shall be provided to all Single -Family Customers who subscribe for Compostable service. Compostable service Customers shall be provided a kitchen Food Scraps composting starter kit upon request, including a kitchen container, one roll of compostable bag liners, and instructional materials. The contents of the starter kit shall be approved by the City prior to distribution. Customers shall be limited to one starter kit per Customer. The default Compostables Cart size shall be ninety-six (96) gallons, with thirty-two (32) or thirty-five (35) gallon and sixty-four (64) gallon sizes available upon request. The first Compostables Carts shall be provided as part of the Compostables service. Additional 96 -gallon Compostables Cart service shall be provided by the Contractor, at the rate provided in Exhibit B. The additional Cart service includes the provision of the Cart, collection and composting costs. Customers may also rent an additional 96 -gallon Cart without service (rental only) at the rate provided in Exhibit B. Compostables Carts shall be delivered by the Contractor to Customers within seven (7) Days of the Customer's initial request. The Contractor shall offer an annual cleaning of Compostables Carts at no additional charge, upon Customer or City request. Additional cleaning shall be available to Customers upon request at the charges listed in Exhibit B. 4.2.3.3 Specific Collection Requirements Properly prepared Compostables shall be collected every -other -week on the same day as Residential Garbage and Recyclables collection. Collections shall be made from Single -Family Residence Customers on a regular schedule on the same day and as close to a consistent time as possible. Compostables in excess of ninety-six (96) gallons may be charged at the additional Cart rate (if that Customer has ordered one or more additional Compostables Carts) or as Compostables Extra Units in accordance with Exhibit B. City of Tukwila 28 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 77 Extra Yard Debris material that does not fit in the initial Compostables Cart shall be bundled or placed in Kraft bags or Customer -owned Cans labeled for Yard Debris. Customers choosing to use their own Containers for excess Yard Debris shall be provided, upon Customer request, durable labels by the Contractor that clearly identify the Container's contents as Yard Debris. Food Scraps shall be contained in the initial Compostables Cart and only Yard Debris shall be placed in bags, bundles, or Cans. The Contractor shall provide collection of unflocked, undecorated, natural Christmas trees from Residential Customers at no additional charge. Customers who subscribe to Compostable collection may place trees out for collection on their regularly scheduled Compostable collection day. Customers who do not subscribe to Compostable collection may place trees out for collection within the first two weeks of Compostables collection each calendar year. Trees must be no greater than four feet (4') in length. Upon direction from the City, for two (2) collection cycles immediately following a City -designated storm event, up to ninety-six (96) additional gallons of containerized, bundled, or bagged Compostable storm debris shall be accepted with regular quantities of Compostables without additional charge, provided that the materials are prepared and set -out as described for excess Yard Debris in the prior section. This service shall be available only to Compostables service subscribers and shall be limited to no more than three (3) events per year. The Contractor shall collect on Public Streets and Private Roads in the same location as Garbage collection is provided. 4.2.4 Multifamily and Commercial Customer Garbage Collection 4.2.4.1 Subject Materials The Contractor shall collect all Garbage set out for disposal by Multifamily and Commercial Customers in Garbage Containers, and adjacent to, if properly prepared. 4.2.4.2 Containers Multifamily and Commercial Customers shall be offered a full range of Container and service options, including Garbage Carts, one (1) through eight (8) cubic yard non -compacted Detachable Containers, and one (1) through six (6) cubic yard compacted Detachable Containers. Containers shall be provided to Customers at no charge, except for compacting Containers or unless otherwise set forth in this Contract and directed by the City. Customer -owned or Customer -leased Detachable Container compactors shall be collected by the Contractor unless the Container is incompatible with the Contractor's equipment. The Contractor shall provide locks for Containers at no additional charge upon Customer -originated request. Materials in excess of Container capacity or the subscribed service level shall be collected and properly charged as Extra Units as directed by the City. Extra charges may be assessed for materials loaded so as to lift the Container lid in excess of six inches (6") from the normally closed position. The Contractor shall develop and maintain route lists in sufficient detail to allow accurate recording and charging of all Extra Units. City of Tukwila 29 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 78 The Contractor may use either or both front -load or rear -load Detachable Containers to service Multifamily and Commercial Customers. However, not all collection sites within the Service Area may be appropriate for front -load collection due to limited maneuverability or overhead obstructions. The Contractor shall provide Containers and collection services capable of servicing all Customer sites, whether or not front -load collection is feasible. Containers shall be delivered by the Contractor to requesting Multifamily and Commercial Customers within three (3) business days of the Customer's initial request. 4.2.4.3 Specific Collection Requirements Collections from both Multifamily and Commercial Customers shall be made on a regular schedule on the same day and as close to a consistent time as possible. The Contractor's crews shall make collections in an orderly and quiet manner, and shall return Containers after emptying to the same location as found, with their lids closed. The Contractor shall not charge fees for either opening gates or unlocking Containers. The Contractor shall remove and replace Containers from enclosures and position (roll-out) Containers up to twenty-five feet (25') for Garbage collection at no additional charge. Additional roll-out charges may be assessed in twenty- five foot (25') increments only to those Multifamily and Commercial Customers for whom the Contractor must move a Container over twenty-five feet (25') to reach the collection vehicle at its nearest point of access. Customers with hard -to -access Containers requiring the Contractor to wait for Customer Container relocation or requiring Contractor's use of specialized equipment for Container relocation may charge those Customers additional access fees and/or hourly fees consistent with Exhibit B. Multifamily and Commercial Customers may request extra collections and shall pay a proportional amount of their regular monthly rate for that service as established by the City. 4.2.5 Multifamily and Commercial Customer Recyclables Collection 4.2.5.1 Subject Materials All properly prepared Recyclables listed in Exhibit C for Multifamily and Commercial Customers (including those Multifamily and Commercial Customers utilizing permanent Drop -box Collection services), shall be collected as part of the Garbage collection services without extra charge, subject to the capacity limitations provided for in Section 4.2.5.3. The Contractor may decline to collect Recyclables if the Container in which they are placed by the Customer contains Excluded Materials or other materials that do not conform to the definition of Recyclables or that do not meet specifications. 4.2.5.2 Containers The Contractor shall provide Recycling Containers at no additional charge to all Multifamily and Commercial Customers requesting Containers. The Contractor shall encourage and promote participation in Recyclables and Compostables services and shall recommend appropriate relative Container sizes through its site visit and evaluation process. The Contractor shall encourage the use of Detachable Containers instead of multiple Carts at Multifamily sites City of Tukwila 30 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 79 where more than one (1) cubic yard of Recycling capacity is provided, unless constraints favor the use of Carts. The Contractor shall provide locks for Containers at no additional charge upon Customer -originated request. Containers used for the collection of Recyclables shall be delivered by the Contractor to requesting Customers within three (3) business days of the Customer's initial request. 4.2.5.3 Specific Collection Requirements Multifamily and Commercial Recyclables collection shall occur at least weekly or more frequently if space constraints preclude providing sufficient weekly capacity. Collections shall be made on a regular schedule on the same day(s) of the week and as close to a consistent time as possible. The Contractor's crews shall make collections in an orderly and quiet manner, and shall return Containers after emptying to the same location as found, with their lids closed. When providing weekly Commercial Recyclables collection to a particular Customer, the Contractor shall not be required to provide Recycling Container capacity greater than one hundred fifty percent (150%) of that Customer's weekly Garbage collection volume. For example, a Customer with a weekly four (4) cubic yard Garbage Container would be provided up to six (6) cubic yards of weekly Recyclables Container capacity. Any additional recycling may be fee-based as negotiated between the Customer and Contractor. A 3 -to -1 ratio shall be used for calculating volumes for compaction -based Garbage service. For example, a six (6) cubic yard compacted Garbage Container would be considered eighteen (18) cubic yards of uncompacted Garbage volume. The Contractor shall not charge fees for either opening gates or unlocking Containers. The Contractor shall remove and replace Containers from enclosures and position (roll-out) Containers up to twenty-five feet (25') for Recycling collection at no additional charge. Additional roll-out charges may be assessed in twenty-five foot (25') increments only to those Multifamily and Commercial Customers for whom the Contractor must move a Container over twenty-five feet (25') to reach the collection vehicle at its nearest point of access. Customers with hard -to -access Containers requiring the Contractor to wait for Customer Container relocation or requiring Contractor's use of specialized equipment for Container relocation may charge those Customers additional access fees and/or hourly fees consistent with Exhibit B. 4.2.6 Multifamily and Commercial Customer Compostables Collection The Contractor shall provide subscription -based (user fee-based) Compostables collection services to requesting Multifamily and Commercial Customers. 4.2.6.1 Subject Materials The Contractor shall provide collection of Compostables from any requesting Multifamily or Commercial Customer, subject to that Customer's continued compliance with material preparation requirements. Containers including contaminated or oversized Compostables materials rejected by the Contractor shall be tagged in writing in a prominent location with an appropriate problem notice explaining why the material was rejected. 4.2.6.2 Containers City of Tukwila 31 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 80 Carts shall be provided to subscribers as part of the service at no additional charge. The Contractor shall offer regular thirty-two (32) or thirty-five (35) gallon, sixty-four (64) gallon, and ninety-six (96) gallon Compostable Carts at the rates set forth in Exhibit B. To encourage Compostable diversion, upon request, the Contractor shall provide one (1) Compostable Cart to be serviced weekly for up to one (1) year to any Multifamily or Commercial Customer who previously did not subscribe to Compostables service. In order to participate, Customers must have demonstrated proper Recyclable materials preparation and accept technical assistance for Compostables. Carts may be removed if the Customer repeatedly contaminates the Compostables Cart. This no -charge program is limited to one hundred (100) Customers per calendar year. Additional service frequency, additional Carts, or time period after one (1) year shall be charged at the rates set forth in Exhibit B. The Contractor shall offer an annual cleaning of Compostables Carts at no additional charge, upon Customer or City request. Additional cleaning shall be available to Customers upon request at the charges listed in Exhibit B. Compostables Carts shall be delivered by the Contractor to Multifamily and Commercial Customers within three (3) business days of a Customer's initial request. 4.2.6.3 Specific Collection Requirements Multifamily and Commercial Customer Compostables collection shall occur weekly or twice -weekly, as subscribed for and requested by the Customer. Collections shall be made on a regular schedule on the same day(s) of the week and as close to a consistent time as possible. The Contractor's crews shall make collections in an orderly and quiet manner, and shall return Containers after emptying to the same location as found, with their lids closed. 4.2.7 Permanent Drop -box Container Garbage Collection 4.2.7.1 Subject Materials The Contractor shall provide permanent Drop -box Container Garbage collection services to Customers, in accordance with the service level selected by the Customer. For the purposes of this Section, a permanent Drop -box Container Customer is a Customer who retains service for more than ninety (90) Days and has their Container hauled at least once per calendar month. Permanent Drop -box Container Customers who have at least one (1) haul of their Container each month are eligible for Recycling services per Section 4.2.5. If a permanent Drop -box Container Customer with regular Recycling service falls below the minimum one (1) Garbage haul per month threshold, the Contractor shall notify the Customer of the minimum requirement for Recycling eligibility and that the Contractor will charge for future Recycling collection at market rates if the minimum Garbage haul threshold is not met in successive months. 4.2.7.2 Containers The Contractor shall pay the cost of procuring and providing Containers for Garbage meeting the standards described in Section 4.1.14. Customer -owned or Customer -leased Drop -box Container City of Tukwila 32 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 81 compactors shall be collected by the Contractor unless the Container is incompatible with the Contractor's equipment. The Contractor shall maintain a sufficient Drop -box Container inventory to provide delivery of empty Containers by the Contractor to new and temporary Customers within three (3) business days after the Customer's initial request. 4.2.7.3 Specific Collection Requirements The Contractor shall provide dispatch service and equipment capable of collecting full Drop -box Containers on the same business day if the Customer's initial request is received by the call center before or at 10:00 a.m. PST, and no later than the next business day if the Customer's initial call is received by the call center after 10:00 a.m. PST. At the Customer's request, the Contractor shall deliver an empty Drop -box Container to the Customer at the time of collecting the full Drop -box Container. Drop -box Containers shall be delivered to new Customers within one (1) business day of their initial request. The Contractor shall detach, remove, and replace Drop -box Containers from locked or unlocked enclosures at no additional charge. The Contractor may charge additional time and/or mileage only if (1) the Customer requests that Contractor deliver material to a facility other than the closest King County disposal facility, (2) the facility is one to which the Contractor is allowed to deliver the material under this Contract, and (3) Contractor delivers the material to such facility after advising the Customer in writing (e-mail is acceptable) as to the basis of the additional time and/or mileage charges to be payable by the Customer on account of such delivery(ies). 4.2.8 Temporary (Non -Event) Container Customers The Contractor shall maintain a sufficient Container inventory, including Detachable Container and Drop - box Containers, to provide delivery of empty Containers by the Contractor to temporary Customers within three (3) business days after the Customer's initial request. The charges for temporary Detachable Container service as listed in Exhibit B shall include delivery, collection, distance, and disposal. No additional fees other than those included in Exhibit B may be charged. Temporary Garbage services do not include Recycling or Compostables collection and shall not exceed ninety (90) Days in duration, unless the Customer has their Container hauled less than once per calendar month, in which case they will continue to be considered a temporary customer. Customers requiring more than monthly collection service for over ninety (90) Days shall subscribe for regular combined Garbage and Recycling, service. 4.2.9 Special Event Services Contractor shall provide temporary Garbage, Recyclables, and Compostables Carts to Customers sponsoring special events within the Service Area at the rates listed in Exhibit B. Contractor shall provide such Customers with assistance in determining Container needs and signage for Garbage, Recyclables, and Compostables at the special events, including site visits and technical assistance to ensure that the maximum Recyclables and Compostables diversion is achieved. Contractor shall coordinate their efforts with the City, and provide such Customers and the City with a summary of the volumes of materials disposed of and diverted for recycling and composting. City of Tukwila 33 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 82 Contractor shall provide special event services as a bundle, with each event providing collection of Recyclables and Compostables at no additional charge as part of the event Garbage collection service. The provision of Garbage -only service shall only be provided on a case-by-case basis upon prior written approval of the City. 4.2.10 Municipal Services The Contractor shall provide the services in this Section 4.2.10 at no additional charge to Customers or the City. In the event that the value of municipal services provided by the Contractor year-on-year increases more than the change in overall Contract revenues year-on-year, the City will either pay for the additional value of services, limit the provision of services to additional facilities, or adjust Contractor's rates to reflect the excess cost to Contractor in providing such services. If the City is restricted from accepting these services at no charge, the Contractor shall be separately and specifically paid for these services at Contract rates and the Contractor shall reduce the Contract rates by the estimated costs of providing these services to the City at no charge. 4.2.10.1 Street Litter and Recycling The Contractor shall provide weekly or more frequent as needed Garbage and Recycling collection for street litter or recycling receptacles (including the provision of plastic bags to line the receptacles) within the City. 4.2.10.2 City Facilities The Contractor shall provide weekly Garbage, Recyclables and (as appropriate) Compostables collection to all City -owned municipal facilities and parks as a part of this Contract and at no additional charge. As of the date herein, these facilities consist of the following: Facility Address(s) Bicentennial Park 6000 Christensen Rd City of Tukwila 6300 Southcenter Blvd Crestview Park 16200 42nd Ave S Crystal Park 15832 51st Ave S Evidence & Records Storage 12026 42nd Ave S Fire Station 51 17951 Southcenter Pkwy Fire Station 52 15447 65th Ave S Fire Station 53 4202 S 115th St Fire Station 54 4237 S 144th St Fort Dent Park 6800 Fort Dent Way Foster Golf Course 13500 Interurban Ave S Foster Park 13919 53rd Ave S George Long Building 14000 Interurban Ave S City of Tukwila 34 Comprehensive Garbage, Recyclables, and Compostables Collection Contract August 2022 83 Facility Address(s) Justice Center 14835 & 15005 Tukwila International Blvd Minkler Office 600 Minkler Blvd Old Fire Station 52 5900 S 147th St Parks & Golf Maintenance Facility 13900 Interurban Ave S Police Evidence 444 Andover Park East Public Works Maintenance Shop 11210 & 11234 Tukwila International Blvd Starfire Sports Complex 14800 Starfire Way Tukwila City Hall 6200 Southcenter Blvd Tukwila Community Center 12424 42nd Ave S Tukwila Heritage & Cultural Center 14475 59th S Tukwila Park 15460 65th Ave S Tukwila Pond 299 Strander Blvd Tukwila Pool 4414 S 144th St Way Back Inn 15421 42nd Ave S 14688 McCadam Rd S 14239 42nd Ave At any time during the term of this Contract, the City may add facilities in addition to those listed above. Additional municipal facilities added during the term of the Contract shall also be provided collection, including new facilities developed within the City Service Area, as well as municipal facilities in future annexation areas covered by this Contract. In cases in which Garbage, Recyclables, or Compostables are generated through the performance by third parties of services for the City outside of the normal operation of a municipal facility, Contractor may charge for the collection of such materials in accordance with charges listed in Exhibit B. For example, the City could be required by Contractor to pay for the disposal of debris generated by the replacement of the roof of a City facility. Regular Garbage, Recyclables, and Compostables generated on an ongoing basis at all City facilities in the ordinary course of their operations, however, whether generated by staff or third parties (e.g. janitorial contractor) will be collected by the Contractor without charge to the City. Tenants and other occupants of a municipal facility, other than those who operate the facility as a City contractor of municipal services may be charged by Contractor in accordance with this Contract for the collection from them of associated Garbage, Recyclables, and Compostables. The Contractor shall provide Garbage, Recycling, and Compostables collection services to the City for up to ten (10) clean-up events each calendar year. At each event, the Contractor shall provide a forty (40) yard Drop -box Container (or other size approved by the City) without charge to the City. Contractor shall waive delivery, rental, disposal, and other fees for the first ten (10) events each year. All Source -separated materials shall be properly recycled or composted by the Contractor. 4.2.11 Community Events The Contractor shall support up to two (2) special drop-off collection events scheduled each year for City residents (proof of residency required) located within the Service Area. At each event, the Contractor shall provide Drop -box Containers and/or Detachable Containers for Garbage. The Contractor shall provide all equipment, transportation, and disposal fees at no additional charge to the City. City of Tukwila 35 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 84 The Contractor shall provide Garbage, Recycling, and Compostables services for City -sponsored special events at no additional charge to the City or users. Container capacity shall be coordinated with event staff to ensure that sufficient Container capacity and collection frequency is provided by the Contractor. These events shall include, but not be limited to: 4th of July Celebration Tukwila Backyard Festival Tukwila Days Festival (2 separate events) At any time during the term of this Contract, the City may add City Sponsored Community Events in Contractor may negotiate compensation for those additional events. 4.2.12 On-call Bulky Waste Collection The Contractor shall provide on-call Bulky Waste collection to any Customer, including Multifamily and Commercial Customers. On-call collection of Bulky Waste shall be provided by the Contractor to Customers by appointment for no more than the charge set forth in Exhibit B to this Contract, with collection occurring no later than five (5) business days after a Customer initial request. Customers must place Bulky Waste at the regular Garbage collection location no more than twenty-four (24) hours prior to collection. The Contractor shall notify the Customer of the specific date that their item will be collected and the charge that will be made to their next bill. The Contractor shall recycle all metal appliances, unless another arrangement is approved in writing by the City, and to make a reasonable effort to recycle all other materials collected. The Contractor shall maintain a separate log listing service date, materials collected, Customer charges, weights, and whether the item was recycled or disposed. This log shall be provided to the City on a monthly basis in accordance with Section 4.3.4. On-call Bulky Waste collection must occur during the hours and days specified in Section 4.1.3, with the exception that Saturday collection is permissible if it is more convenient for Customers. The Contractor's crews shall make collections in an orderly, non - disruptive and quiet manner. 4.2.13 Excluded Services This Contract does not include the collection or disposal of Unacceptable Waste. 4.3 Collection Support and Management City of Tukwila 36 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 85 4.3.1 General Customer Service The Contractor shall be responsible for providing all Customer Service functions, including, but not limited to: 1. Answering Customer phone calls and e-mail requests; 2. Requesting at start of service Customer's preference for notification of service changes via out - dialer calls, texts, or e-mails; 3. Informing Customers of current, new, and optional services and charges; 4. Handling Customer subscriptions and cancellations; 5. Receiving and resolving Customer complaints; 6. Dispatching Drop -box Containers, temporary Containers, and special collections; 7. Billing; 8. Maintaining and updating regularly as necessary a user- and mobile -friendly internet website; and These functions shall be provided at the Contractor's sole cost, with such costs included in Contractor charges set forth in Exhibit B. 4.3.2 Specific Customer Service Requirements The Contractor shall maintain a service base for storing and/or maintaining collection vehicles within thirty (30) miles of the Service Area. Operations and management staff shall be located at that site. Call center operations may be remotely provided, but shall be based within the United States of America. The Contractor's call center shall be open and available with Customer Service representatives during Call Center Hours. Customer calls shall be taken during Call Center Hours by a person, not by voicemail. Outside of Call Center Hours, the Contractor shall have an answering or voicemail service available to record messages from all incoming phone calls. The Contractor shall maintain a twenty-four (24) hour emergency phone number for use by the City. The Contractor shall have a representative, or an answering service to contact such representative, available at such emergency phone number for City use during all hours, including normal Office Hours. Inability to reach the Contractor's staff via the emergency phone numbers shall be cause for performance fees in accordance with Section 6.1.2. 4.3.2.1 Customer Service Representative Staffing During Call Center Hours, the Contractor shall maintain sufficient call center staff to answer and handle complaints and service requests from all Customers without delay. If incoming phone calls necessitate, the Contractor shall increase staffing levels as necessary to meet Customer Service demands. The Contractor shall provide and publicize a phone number capable of handling service related text messages. The Contractor shall maintain sufficient staffing to answer and handle complaints and service requests in a timely manner made by methods other than phone, including letters, e-mails, text messages, social media messages, or webpage messages. If staffing is deemed to be insufficient by the City to handle Customer complaints and service requests in a timely manner, the Contractor shall increase staffing levels to meet performance criteria. City of Tukwila 37 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 86 The Contractor shall provide additional staffing during the transition and implementation period, and especially from six (6) weeks prior to the Date of Commencement of Service, through the end of the fourth (41 month after the Date of Commencement of Service, to ensure that sufficient staffing is available to minimize Customer waits and inconvenience. The Contractor shall receive no additional compensation for increased staffing levels during the transition and implementation period. Staffing levels during the transition and implementation period shall be subject to the City's prior review and approval. 4.3.2.2 City Customer Service The Contractor shall maintain local staff that has management level authority to provide a point of contact during Office Hours for the majority of inquiries, requests, and coordination covering the full range of Contractor activities related to this Contract. Duties include, but are not limited to: 1. Assisting staff with promotion and outreach to Single -Family Residences, Multifamily, Commercial Customers, and special events; 2. Serving as an ombudsperson, providing quick resolution of Customer issues, complaints, and inquiries; and 3. Assisting the City with program development and design, research, response to inquiries, and troubleshooting issues. A Contractor -designated service expert shall be accessible by staff to address emerging problems as needed, and shall return messages (phone, mobile messaging, or e-mail) within four (4) hours of the City's leaving or sending a message during Office Hours and by noon on the next business day if after Office Hours. Should the Contractor fail to meet the City expectations for Customer Service as described herein, the Contractor shall be assessed performance fees in accordance with Section 6.1. 4.3.2.3 Service Recipient Complaints and Requests The Contractor shall record all complaints and service requests, regardless of how received, including date, time, Customer's name and address, if the Customer is willing to give this information, method of transmittal, and nature, date and manner of resolution of the complaint or service request in a computerized daily log. Any phone calls received through the Contractor's non -Call Center Hours voicemail or answering service shall be recorded in the log no later than by the following business day. The Contractor shall make a conscientious effort to respond directly to the Customer and resolve all complaints within one (1) business day of the original phone call, letter, or electronic communication, and service requests within the times established throughout this Contract for various service requests. If a longer response time is necessary for complaints or requests, the reason for the delay shall be noted in the log, along with a description of the Contractor's efforts to resolve the complaint or request. The Customer Service log shall be available for inspection by the City, or its designated representatives, during the Contractor's Office Hours, and shall be in a format approved by the City. The Contractor shall provide a copy of this log in an electronic format from the Microsoft Office suite (or other City -approved format) of software to the City with the monthly report. 4.3.2.4 Handling of Customer Calls City of Tukwila 38 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 87 All incoming phone calls shall be answered promptly and courteously, with an average speed of answer of less than thirty (30) seconds. No phone calls shall be placed on hold for more than two (2) minutes per occurrence, and on a monthly basis, no more than 10% of incoming phone calls shall be placed on hold for more than twenty (20) seconds. A Customer calling into the Customer Service phone lines and placed on hold shall hear messages that are applicable to services provided under this Contract and not misleading to Customers. A Customer shall be able to talk directly with a Customer Service representative when calling the Contractor's Customer Service phone number during Office Hours without navigating an automated phone answering system that takes longer than sixty (60) seconds to navigate. An automated voicemail service or phone answering system may be used when the office is closed. Customer Service representatives shall provide accurate and applicable information, and shall not provide confusing, inaccurate, or misleading information. 4.3.2.5 Corrective Measures Upon the receipt of Customer complaints in regard to busy signals or excessive delays in answering the phone, the City may request the Contractor submit a plan to the City for correcting the problem. Once the City has approved the plan, the Contractor shall have sixty (60) Days to implement the corrective measures, except during the transition and implementation period from thirty (30) Days prior to the Date of Commencement of Service, through the end of the fourth month after the Date of Commencement of Service, during which the Contractor shall have seven (7) Days to implement corrective measures. Reasonable corrective measures shall be implemented without additional compensation to the Contractor. Failure to provide corrective measures shall result in possible performance fees pursuant to Section 6.1 assessed against the Contractor. 4.3.2.6 Contractor Website The Contractor shall maintain a mobile -friendly website containing information specific to the City's collection programs, including the following information at a minimum: 1. Contact information, noting available hours for each contact method; 2. Collection schedules; 3. Current day of collection map; 4. Material preparation requirements; 5. Available services and options; 6. Rates and fees for all sectors and services; 7. Holiday scheduled and resulting delays in collections; 8. Inclement weather service changes; 9. Current education and outreach materials; 10. Translation options available; and 11. Other relevant service information for its Customers. The Contractor website shall provide the following functions for Customers to: 1. Obtain day -of -service information; 2. Report issues and receive a tracking number or other method to monitor progress on their issue; 3. Chat/instant message with a Customer Service agent rather than talk if desired; 4. Connect to voice services for Customer Service; City of Tukwila 39 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 88 5. Review and pay bills; 6. Manage services; and 7. Switch service levels or order additional services; Electronic Customer Service requests shall be answered within one (1) business day of receipt. The website design shall be usability tested and then submitted to the City for approval a minimum of three (3) months prior to the Date of Commencement of Service of this Contract, and then changes shall be subject to the City's prior approval throughout the term of this Contract. The Contractor shall provide among its local staff a knowledgeable and proficient communications manager that is responsive to the City's request(s) for changes to the Contractor's website. Changes requested by the City consisting of textual messages only shall be implemented within seventy-two (72) hours of the time of the request(s). Changes requested by the City, of a textual nature, that are related to an emergency or time -sensitive situation (such as an inclement weather event, windstorm, or event preventing access to a Customer's regular place of Container set -out) shall be implemented as soon as possible but not more than three (3) hours from of the time of request. Changes requested by the City that include a graphical component must be implemented within five (5) Days of the time of the request. The Contractor shall provide timely updates to the website, and provide links to the City's website, checking on a regular basis that all links are current. The website shall include information requested by the City translated into a minimum of four (4) languages including English and Spanish. Upon the City's request, the Contractor shall provide a website utilization report indicating the usage and communication preferences. The Contractor shall collect only the Customer information necessary to perform Contracted solid waste collection functions from websites, applications, and any other electronic media used by Customers. To the extent permitted by applicable law, any Customer data collected in the course of performing functions of this Contract shall be provided to the City upon request, but shall not be sold or otherwise provided to any other party. 4.3.2.7 Full Knowledge of Garbage, Recyclables, and Compostables Programs Required The Contractor's Customer Service representatives shall be fully knowledgeable of all collection services available to Customers, including the various services available to Single -Family Residence, Multifamily and Commercial Customers. For new Customers, Customer Service representatives shall explain all Garbage, Recyclables, and Compostables collection options available depending on the sector the Customer is calling from. For existing Customers, the representatives shall explain new services and options, and resolve recycling issues, collection concerns, missed pickups, Container deliveries, disposal and recycling options for items not accepted by Contractor, and other Customer concerns. Customer Service representatives shall be trained to inform Customers of Recyclables and Compostables preparation specifications. City policy questions shall be forwarded to the City for response. The Contractor's Customer Service representatives shall have instantaneous electronic access to Customer Service data and history to assist them in providing excellent Customer Service. The Contractor shall provide the City with internal Customer Service representative training and support information specific to the City to allow the City to review and check information provided to Customer Service City of Tukwila 40 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 89 representatives and, in turn, provided to Customers. Any revisions to these materials shall be approved in writing (e-mail is acceptable) by the City prior to being used by Customer Service representatives. 4.3.2.8 Customer Communications All Customer communications (other than routine service and billing interactions with individual Customers) shall be reviewed and approved by the City before distribution. This includes messaging in out -dialer recorded messages, billing statements, bill inserts, e -newsletters, email marketing, social media, website, mailed materials, printed materials, and other avenues of planned communications. The City and Contractor recognize that Customer preferences for their method of communication may change during the Term of this Contract and agree to adjust Customer Service expectations to match Customer preferences. For example, if call traffic to the Contractor's phone -based call center reduces over time and is supplanted by an increase in texting, the Contractor shall shift staff resources accordingly to ensure high levels of Customer Service. The City and Contractor agree to review Contract requirements periodically and negotiate in good faith any desired improvements to the Contract service standards related to Customer Service delivery. 4.3.3 Contractor's Customer Billing Responsibilities The Contractor shall be responsible for all billing functions related to the collection services required under this Contract. All Single-family Residence Customers shall be billed every -other -month or quarterly, and Multifamily and Commercial Customers shall be billed monthly. In no case shall a Customer's invoice be past due prior to the receipt of all services covered by the billing period. The Contractor's billing cycle parameters include, but are not limited to the service period, invoice date, due date, late fee date, reminder date(s), Container removal and stop -service date. The City reserves the right to review and provide feedback on the bill template used by the Contractor as to format and design to ensure Customer satisfaction. The Contractor shall evaluate and may incorporate the City's recommendations in good faith. Billing and accounting costs associated with Customer invoicing, including credit card fees, shall be borne by the Contractor, and are included in the service fees in Exhibit B. The Contractor may bill to Customers late payments and "non -sufficient funds" check charges, as well as the costs of bad debt collection, under policies and amounts that have been previously approved in writing by the City. The Contractor shall offer paperless billing, including an autopay/electronic notification function that allows Customer to set up autopay and receive an e-mail or text notification of the amount and draw date of the payment, without requiring the Customer to navigate to the Contractor's website to obtain that information. The Contractor shall be responsible for the following: 1. Generating combined Garbage, Recyclables, and Compostables collection bills for all Customers; 2. Generating bills printed double -sided, on at least thirty percent (30%) post -consumer recycled - content paper; 3. Generating bills that include at a minimum a statement indicating the Customer's current service level, current charges and payments, appropriate taxes and fees, Customer Service contact information and website information; 4. Generating bills that clearly state the date at which late fees will be assessed for non-payment; City of Tukwila 41 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 90 5. Generating bills that have sufficient space on the front or back of the bill for educational or informational messaging, as directed by the City; 6. Accepting automatic ongoing payments from Customers via debit or credit card, checking or savings account withdrawal, or by wire transfer. No transaction fees may be levied on any Customer payments; 7. Accepting, processing, and posting payment data each business day; 8. Accepting bill inserts from the City for specific Customer sectors; 9. Maintaining a system to monitor Customer subscription levels, record excess Garbage or Compostables collected, place an additional charge on the Customer's bill for the excess collection, and charge for additional services requested and delivered. This system shall maintain a Customer's historical account data for a period of not less than six (6) years from the end of the fiscal year in accordance with the City's record retention policy, and in a manner that is instantaneously accessible to Customer Service representatives needing to refer to Customer Service data and history; 10. Forecasting annual rate modifications needed to collect the Fixed Annual Charge component from Customers, remitting the proportionate amount of the County Fixed Annual Charge to the County monthly, and reconciling and reporting the aggregate Fixed Annual Charge component collected from Customers with amounts billed by County to Contractor. 11. Accepting and responding to Customer requests for service level changes, missed or inadequate collection services, and additional services; 12. Collecting unpaid charges from Customers for collection services; and 13. Implementing rate changes as specified in Section 5.3. The Contractor shall be required to have procedures in place to backup and minimize the potential for the loss or damage of the account servicing (e.g., Customer Service, service levels, and billing history) database. The Contractor shall ensure that, at a minimum, a daily backup of the account servicing database is made and stored off-site. The Contractor shall also provide the City with a copy of the account servicing database (excluding Customer financial information such as credit card or bank account numbers) sorted by Customer sector via e-mail, FTP site or electronic media upon request. The City shall have unlimited rights to use such account servicing database for the purpose of developing targeted educational and outreach programs, analyzing service level shifts or rate impacts, and/or providing information to successor contractors. The Contractor shall track the aggregate Fixed Annual Charge component received by Contractor from Customer receipts. The Contractor shall total receipts for the Fixed Annual Charge component received from Customers during each July 1 to June 30 time period and deduct the City's Administrative Fee plus excise tax on the Administrative Fee from that amount to calculate the aggregate Fixed Annual Charge component collected during that period that is actually available to Contractor to pay the Fixed Annual Charge to the County. The resulting value shall be compared to the County Fixed Annual Charge paid by Contractor to the County during that same time period. The differential between those two amounts referenced in the preceding sentence shall represent the amount of any overpayment or underpayment which shall be subtracted or added to the subsequent year's aggregate Fixed Annual Charge component to be included in the Customer rates beginning January 1 of the following year. Upon seven (7) Days written notice, the Contractor shall provide the City with a paper and/or electronic copy at the City's discretion of the requested Customer information and history, including but not limited City of Tukwila 42 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 91 to Customer names, service and mailing addresses, contact information, service levels, and current account status. 4.3.4 Reporting The Contractor shall provide monthly, annual, and ad hoc reports to the City. The Contractor report formats may be modified from time to time at the City's request at no additional charge to the City. In addition, the Contractor shall allow City access to pertinent operations information related to compliance with the obligations of this Contract, including but not limited to vehicle route assignment and maintenance logs, certified weight slips from Garbage, Recyclables, and/or Compostables facility, and Customer charges and payments. Reports shall be focused on providing data in an easy to read fashion and must include sufficient information to determine that the terms of the Contract are being meet, not general company promotion. Data shall be provided directly in the relevant report, preferably in Microsoft Excel form. Links to websites or company database functions do not fulfill the requirements of this section. 4.3.4.1 Monthly Reports The Contractor shall provide a monthly report containing the following information for the previous month by the twenty-first (21st) Day of the following month. Reports shall be submitted in an electronic format approved by the City and shall be certified as accurate by the Contractor. At minimum, reports shall include a report for each of the following topics that is clearly labeled and identified by topic: 1. A log of all Customer complaints including Customer name, property name and address, date of contact, complaint, and resolution. 2. A tabulation of the number of Single -Family, Multifamily, and Commercial accounts by service level/Container size, and service frequency. 3. Total billed revenue, aggregate Fixed Annual Charge component collected with Administrative Fee and excise tax on Administrative free removed, and the Fixed Annual Charge payments made to the County; 4. Report from the Contractor's Customer Service phone system showing total call volume, total calls answered, and average speed of answer. 5. Website utilization report showing total number of Customers managing their services on-line, total number of messages received via website, data on site usage, and other data or information as the City may require for internal reporting purposes. 6. A summary of total Garbage, Recyclables, and Compostables quantities collected (in tons) for each collection sector by month and year-to-date. Drop -box tonnage shall be separated out and shall include total number of hauls. The summary shall include program participation statistics including: a summary of Multifamily and Commercial participation in recycling programs and set - out statistics for Residential Garbage, Compostables, and Recyclables collection Services. Where item counts are more appropriate for certain Recyclables or Bulky Wastes (e.g. appliances, etc.), reporting item counts are sufficient. The summary shall include the names of facilities used for all materials and tonnage delivered to each facility. 7. A summary of Recyclables quantities by commodity including contamination levels and processing residues disposed as Garbage, and notice of any significant changes in market value, if any. 8. A list of Commercial Customers with Recyclables collection, including monthly Garbage Container capacity, monthly Recyclables Container capacity, percentage of available (150% threshold) City of Tukwila 43 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 92 Recyclables collection service utilized, and the amount of additional paid Recyclables capacity arranged by any Customer. 9. A description of any vehicle accidents, infractions, and reported leaks. 10. A description of any changes to collection routes, Containers, vehicles (including the identification of back-up vehicles not meeting contract standards with the truck number and date of use), Customer Service or other related activities affecting the provision of services. 11. A description of any promotion, education, and outreach efforts, including where possible, samples of materials, and summary of any feedback or response received from Customers. 12. A description of Contractor activities and tonnages for City services and events. If collection vehicles are used to service more than one Customer sector, the Contractor shall develop an apportioning methodology that allows the accurate calculation and reporting of collection volumes and quantities from the different sectors. The apportioning methodology shall be subject to the prior review and written approval of the City, and shall be periodically verified through field-testing by the Contractor. 4.3.4.2 Annual Reports On an annual basis, by the first working day of March, the Contractor shall provide a report containing the following information for the previous year: 1. A consolidated summary and tabulation of the monthly reports, described above. 2. A discussion of highlights and other noteworthy experiences, along with measures taken to resolve problems, increase efficiency, and increase participation in, and volume of, Recyclables and Compostables collection programs. 3. A discussion of opportunities and challenges expected during the current year, including steps being taken to take advantage of opportunities and resolve the challenges. 4. A discussion of promotion, education, and outreach efforts, and accomplishments for each sector. 5. An inventory of current collection vehicles and other major equipment, including model, year, make, serial or VIN number, assigned vehicle number, mileage (if vehicle), collection sector assigned to or used in, and maintenance history, including vehicle painting. 6. A list of Multifamily Customers eligible for Recycling and Compostables collection service but not receiving one or both services. 7. A list of Commercial Customers eligible for Recycling and Compostables collection service but not receiving one or both services. 8. A summary of the monthly logs of Customer requests, complaints, inquiries, site visits, and resolutions or results, as required in Section 4.3.4.1. The summary shall organize Customer requests, complaints, inquiries, and site visits by category (e.g., missed pickups, improper set- ups). 9. A sustainability report. The annual report shall be specific to the City's operations, written in a format appropriate for contract management and shall not be a generalized listing of Contractor activities in the region or elsewhere. 4.3.4.3 Ad Hoc Reports The City may request and receive from the Contractor up to six (6) ad hoc reports each year, at no additional charge to the City. These reports may include Customer Service database tabulations to identify City of Tukwila 44 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 93 specific service level or participation patterns or other similar information. Reports shall be provided in a City -defined format and with Microsoft software (or other City -approved software) compatibility within thirty (30) days of the request. These reports shall not require the Contractor to expend more than fifty (50) staff hours per year to complete. 4.3.4.4 Other Reports If requested by the City, the Contractor shall provide daily route information for all service sectors and collection streams for the purpose of evaluating potential collection system changes during the Contract Term. 4.3.5 Promotion and Education The Contractor, at its own cost and at the direction of the City, shall have primary responsibility for developing, designing, executing, and distributing public promotion, education, and outreach programs. The Contractor shall also have primary responsibility for Customer recruitment, providing annual service- oriented information and outreach to Customers, distributing City -developed promotional and educational pieces at the City's direction, and implementing ongoing recycling promotions, education, and outreach programs at the direction of the City. Each year, the Contractor shall deliver an annual comprehensive service guide to each Single -Family Residential, Multifamily, and Commercial Customers which shall include, at a minimum, information on the proper preparation and disposal of Garbage, Recyclables, and Compostables; City rates information; disposal options for difficult -to -recycle items and Hazardous Wastes; collection guidelines; contact information; applicable services from this Contract; translation resources; assistance available from the Contractor; and any other pertinent information. The default distribution shall be a paper copy delivered to the Customer, with a Customer option to receive the service guide electronically instead of a hard copy. New Customers shall receive a welcome packet comprised of materials from the comprehensive service guide for their sector. Customers may choose electronic or mailed copy. Hard copy mailed welcome packets must be mailed within seven (7) days. Each September, the City and Contractor shall jointly plan the Contractor's specific promotion and education program for the following year, including adjustments in materials and/or targeted audiences and revisions to the Contractor's contamination reduction program (Section 4.1.11.1). Promotion and education materials may include inserts in Garbage bills, newsletters, e -newsletters, email blasts, social media posts, website content, cart hangers/tags, door hangers, postcards, interior posters, exterior signs, and other avenues directed by the City. The City may elect to assist the Contractor with development of promotional material layout and text, as staff time allows, however the Contractor shall be responsible for all design and development work, subject to City approval. The Contractor shall provide translations of the proper preparation and disposal of Garbage, Recyclables, and Compostables into languages spoken by over five percent (5%) of the City's population. Promotion, education, and outreach materials shall be clear, accurate, reflective of the Contract and industry, contain professional visual graphics, be free of misleading information or typographical errors, and include translation information. All promotion and education materials provided to Customers by the City of Tukwila 45 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 94 Contractor shall be approved in advance by the City. The Contractor shall provide the City with a minimum of a one (1) week advance review period for social media posts, email blasts, and electronic promotion, and minimum of a two (2) week advance review period for all printed materials. All edits and design changes shall be completed at Contractor's expense. All printed materials shall be printed on minimum thirty percent (30%) post -consumer recycled paper and have sufficient copies to fulfill requests from Customers and the City. Electronic copies of materials shall be provided to the City and posted on the Contractor's website with file size not to exceed 2 MB each. The Contractor shall attend a minimum of two community events per year in the Service Area to provide an educational booth for event attendees. Events shall be selected in coordination with the City and may include City -sponsored events/festivals, farmers markets, block parties, or other community gatherings. The Contractor shall contact the manager or owner of all Multifamily sites within the Service Area by phone and/or in-person visits to encourage Recycling and Composting participation, address concerns, space or contamination problems, provide outreach to residents, and inform the manager or owner of all available Recycling and Composting services and ways to decrease Garbage generation. The Contractor shall provide copies of educational materials, including translated versions, and reusable tote bags for each resident upon request of the City or the Multifamily manager or owner. The Contractor shall coordinate and work cooperatively with City staff and/or consultants hired to conduct outreach and education, and provide technical assistance. 4.3.6 Transition to Next Contractor The Contractor shall work with the City and any successive contractor in good faith to ensure minimal Customer disruption during the transition period from the City's previous contractor to the City's new Contractor. In the event that the City does not elect to retain the Contractor's Containers pursuant to Section 4.1.14.3, the Contractor shall remove any Containers for all services or any portion of services provided under this Contract upon sixty (60) Days written notice from the City. Container removal and replacement shall be coordinated between the Contractor and a successive contractor to occur simultaneously in order to minimize Customer inconvenience. Upon written request of the City at any time during the term of this Contract, the Contractor shall provide either the City or a successive contractor a detailed customer list, including customer name, contact information, service address, billing address, and collection and Container rental service levels to the City in Microsoft Excel format (or other City -approved format) within seven (7) Days of the City's request. Failure to fully comply with this Section 4.3.6 shall result in the forfeiture of the Contractor's performance bond, at the City's discretion. 4.3.7 Customer Service Center and Store The Contractor shall operate a Customer Service center and store in or within five miles of the Service Area limits. The store shall be open no less than forty (40) hours per week. The store shall provide Customers with the following: customer service assistance; host City -sponsored education events, waste zero presentations, virtual MRF tours, and other waste reducing events; and a Recycling education center City of Tukwila 46 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 95 1 96 with information on how to decrease waste including posters and brochures. The Customer Service center and store may sell items that help residents reduce waste such as reusable lunchboxes, mugs, cloth napkins and items made from recyclable materials. The Customer Service center and store shall provide Customers a no -cost drop-off location for the following recyclable items that are not accepted Curbside: certain small appliances, electronics, batteries, bikes, books, cooking oil, electronics, fluorescent bulbs, propane canisters, cooking oil and Styrofoam'. Upon mutual agreement between Contractor and City, the Customer Service center and store may add or delete specific recyclable items to the foregoing for acceptance at the store in response to current City needs and commodity end -market availability. 5. COMPENSATION 5.1 Compensation to the Contractor 5.1.1 Rates The Contractor shall be responsible for billing and collecting funds from Single-family Residence, Multifamily, and Commercial Customers in accordance with the charges for services listed in Exhibit B. The Contractor may reduce or waive at its option, but shall not exceed, the charges listed in Exhibit B. Senior low-income and/or disabled resident discounts of fifty percent (50%) shall be offered to Single- family Residential Customers meeting the City's eligibility criteria. The City shall provide the Contractor with a list of eligible accounts and shall update the list as revisions are made. The payment of charges for services listed in Exhibit B by Customers shall comprise the entire compensation due to the Contractor. In the event that a Customer places Excluded Materials or Unacceptable Materials in a Container, and the Contractor collects those materials inadvertently and incurs extraordinary expenses dealing with those materials, the Contractor may charge the Customer the actual costs of managing those materials, as approved by the City. Actual costs shall include additional transportation, handling, and disposal costs incurred by the Contractor for handling only those specific materials traceable to that Customer. The City is not required under this Contract to make any payments to the Contractor for the Services performed, or for any other reason, except as specifically described in this Contract, or for services the City obtains as a Customer. In the event that Contractor or a Customer desires services not specifically addressed in this Contract, the Contractor shall propose service parameters and a rate to the City in writing, based on the an adjacent Contractor WUTC tariff if the Contractor operates in such an area or an average of surrounding WUTC tariffs if the Contractor does not operate in an adjacent WUTC tariff area. Upon the City's written approval, the Contractor may provide the requested services. In no case shall the Contractor provide unauthorized services or charge unauthorized rates. 5.1.2 Itemization on Invoices The Fixed Annual Charge component and all applicable City, County, and State solid waste or Hazardous Waste taxes or fees, utility taxes, and certain sales taxes shall be itemized separately on Customer invoices and added to the charges listed in Exhibit B, except that the City Administrative Fee shall be included in Exhibit B rates and shall not be itemized separately on Customer invoices. City of Tukwila 47 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract The Contractor shall not charge separately for the collection of Source -Separated Recycling collection, other than Commercial Recyclables collection in excess of the one hundred fifty percent (150%) threshold limitation described in Section 4.2.5.3. Charges for excess Garbage or Compostables, Single-family, Multifamily and Commercial Compostables collection, Drop -box Container On-call collection services, On-call Bulky Waste collection services, Container rentals, or temporary Container services shall be itemized on the Customer invoices separately by the Contractor, and may at no time exceed the charges set forth in Exhibit B. The County Tipping Fee as it exists on the date of execution or as thereafter modified shall be itemized separately on Customer invoices with charges for Drop -box Container service. The Contractor shall charge Drop -box Customers the actual disposal cost plus twelve percent (12%) and the current state excise tax on the disposal component. The Contractor shall not separately charge sales tax for services that include any Container as part of the overall service package. Only Services that separate and itemize optional Container rental (specifically Drop -box Container rental) shall have sales tax charged and listed on Customer invoices. The Contractor shall pay appropriate sales tax upon purchase of all equipment and Containers, and those costs are included in the rates provided in Exhibit B. In no case shall Customers be separately charged sales taxes paid by the Contractor on its equipment and Containers. Except as otherwise expressly provided for by the Contract, the Contractor shall not adjust or modify rates due to employee wage increases, changes in Compostables processing fees (except as provided for in Section 5.3.2), Garbage collection service level shifts, or other changes affecting the collection system. 5.2 Compensation to the City The Contractor shall pay to the City a one-time fee of thirty-six thousand dollars ($36,000) upon Contract execution to cover City costs for procuring this Contract. The Contractor shall also pay to the City an Administrative Fee of 6% on or before the fifteenth(15th) day of each month during the term of this Contract, starting the month following the initiation of the fee. The Administrative Fee shall be based on the gross receipts received by the Contractor from all Customers under this Agreement, excluding Drop -box Container Tipping Fees. The Contractor's obligations to pay the Administrative Fee shall survive the termination date of this Contract until the Contractor is no longer receiving payments from Customers for services provided under this Contract. The Contractor shall fully participate with any City billing audit to confirm the Contractor's Customer receipts during any accounting period during the term of the Contract. The audit shall be confined to confirming Customer billing rates, Contractor receipts for services provided under this Contract and bad debt recovery. The City may implement or change the Administrative Fee level in any year, provided that the change is synchronized with the annual Contractor rate modification described in Section 5.3.1. The City shall notify the Contactor of the new Administrative Fee for the following year by September 1st, and the Contractor shall itemize and include the appropriate adjustment in its Rate Adjustment Statement provided October 1st of each year. In the event that the Administrative Fee is adjusted, either up or down, the Contractor City of Tukwila 48 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 97 shall add or subtract an amount equivalent to the State excise tax (1.75% in 2021), as may be adjusted from time to time by the State. In addition, the Contractor shall be responsible for payment of all applicable permits, licenses, fees and taxes as described in Section 8.10, Permits and Licenses. 5.3 Compensation Adjustments 5.3.1 Initial and Annual CPI Service Component Modification The collection fee component of the Contractor's service fees contained in Exhibit B, and the miscellaneous fees and charges contained in Exhibit B that do not have separate disposal fee components, for each level of service shall increase each year by one hundred percent (100%) of the annual percentage change in the Consumer Price Index (CPI) for Seattle -Tacoma -Bellevue, Urban Wage Earners and Clerical Workers, All items, Series ID: CWURS49DSA0 (1982-84=100) prepared by the United States Department of Labor, Bureau of Labor Statistics, or a replacement index. Adjustments shall be based on the twelve (12) month period ending June 30th of the previous year that the request for increase is made. For example, an adjustment to the Contractor's collection service charge effective January 1, 2025, will be based on the CPI for the twelve (12) month period ending June 30, 2024. An initial adjustment of the Exhibit B rates shall be performed in September 2023, based on the twelve (12) month period ending June 30, 2023. The adjusted rates shall be in effect from the Date of Commencement of Service through December 31, 2024. The rate modification notification to Customers shall be provided in informational materials provided as part of the new Contract roll-out. Beginning January 1, 2025, Contractor's collection fee component shall be adjusted annually pursuant to this section. The Contractor shall submit in writing and electronic form to the City for review and verification a Rate Adjustment Statement, calculating the new rates for the next year, on or by October 1st of each year, starting October 1, 2024. In the event that the CPI index series decreases year-to-year, the collection fee component and miscellaneous fees and charges shall remain unchanged. In the event that the CPI index series increases over five percent (5%) year-to-year, the actual adjustment used shall be capped at five percent (5%). Whether a cap or a floor is applied in a given year under this paragraph shall have no effect on the following year's CPI adjustment. Adjustments under this Section 5.3.1 shall be made in units of one cent ($0.01). Fractions less than one cent ($0.01) shall be truncated and not be considered when making adjustments. In the event that the Contractor does not submit a Rate Adjustment Statement by October 1st, the City shall calculate and unilaterally implement a rate adjustment based on the best available information as of October 1st of that year for the applicable period and the Contractor may not appeal this action. On the City's review and verification, absent any City exception to the Contractor's calculations, the new rates shall take effect on January 1st of the following year. An example of rate adjustments due to Consumer Price Index changes is provided in Exhibit D. City of Tukwila 49 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 98 5.3.2 Changes in Tipping Fee and Fixed Annual Charge Annual adjustments shall be made to the Tipping Fee component and Fixed Annual Charge component of Customer charges contained in Exhibit B to reflect increases or decreases in the Tipping Fee or Fixed Annual Charge charged by County. In the event of a change in the Tipping Fees, the Tipping Fee component of each Customer charge shall be adjusted by the percentage increase or decrease in the County Tipping Fee. The amount of each year's Fixed Annual Charge is to be provided by the County to the City and Contractor no later than September 1st of the year preceding in which the Fixed Annual Charge is to take effect. The City's Administrative Fee plus excise tax on the Administrative Fee shall be added to the Fixed Annual Charge component of the rate annually. The aggregate value of the Fixed Annual Charge component to be included in Customer rates each year shall be calculated to be the forecasted amount equal to the Fixed Annual Charge assessed on the Contractor by County plus the applicable Administrative Fee and excise tax on Administrative Fee, and further modified by any overpayment or underpayment calculated pursuant to Section 4.3.3. The Fixed Annual Charge component of the Customer charges shall be applied to all regular Garbage services and Garbage Drop -Box services, but shall not apply to Bulky Waste, Extra Units, temporary Detachable Container, Recyclables, or Compostables services. This component shall be allocated among applicable Customer subscriptions and calculated annually as a proportion of monthly Container volume for the current Customer counts. In the final year of the Contract, the Fixed Annual Charge component included in Customer charges shall be increased by a percentage to be mutually determined by the Contractor and City over and above what is required to be collected by Contractor to satisfy payment of the County's Fixed Annual Charge in order to avoid underpayment by Customers of an amount equal to at least the Fixed Annual Charge assessed on Contractor plus the applicable Administrative Fee and excise tax on the Administrative Fee. Any overpayment by Customers to Contractor of the Fixed Annual Charge component that exceeds amounts required to be paid by Contractor to satisfy its payment obligations of the Fixed Annual Charge, Administrative Fee, and excise tax on Administrative Fee at the end of the Contract shall be paid to the City. The Contractor's obligation to pay the Fixed Annual Charge components collected from Customers shall extend past the termination date of this Contract until the Contractor is no longer receiving payments from Customers for services provided under this Contract. Adjustments to the Contractor's Tipping Fee component and Fixed Annual Charge component on rates shall be made in units of one cent ($0.01). Fractions less than one cent ($0.01) shall not be considered when making adjustments. Specific examples of rate modifications due to changes in Consumer Price Index, Tipping Fee, and Fixed Annual Charge are provided in Exhibit D. In the event that Compostable processing fees that the Contractor pays a third party increase substantially more than the escalation factor described in Section 5.3.1 due to changes in law or regulation, the Contractor may submit to the City a request to consider a compensating rate adjustment for the amount of the impact above the normal inflationary adjustment. Any request shall be made in conjunction with the annual rate process. The City shall review the request promptly and may, at its sole discretion, allow City of Tukwila 50 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 99 the Contractor to increase rates by a City -specified amount to compensate for increased Compostables processing costs. 5.3.3 Changes in Disposal or Compostables Processing Sites If the Contractor is required by the City or other governmental authority to use Garbage disposal or Compostables processing sites other than those being used at the initiation of this Contract, the Contractor shall submit a detailed proposal for the adjustment of the rates to reflect any additional cost or savings to the Contractor. It is intended that the Contractor's rates pursuant to this Contract in such a case will be adjusted so as to pass through any resulting additional costs incurred by the Contractor to the Contractor or any additional savings to the Contractor to Customers. The City and Contractor agree to negotiate in good faith to make any changes to the rates to accomplish a pass-through of any such costs or savings. 5.3.4 Recycling Commodity Value The City and Contractor agree that the Contractor rates in Exhibit B include all Recyclables processing and marketing costs, including processing residual disposal. The Contractor shall retain revenues gained from the sale of Recyclables. Likewise, a tipping or acceptance fee charged for Recyclables shall be the financial responsibility of the Contractor. 5.3.5 New or Changes in Existing Taxes If new municipal, county, regional, or State taxes or fees are imposed, the rates of existing taxes (other than federal taxes) or fees are changed, or new road or bridge tolls necessarily affecting the Contractor's operations under this Contract imposed after the Date of Execution of this Contract, and the impact of these changes results in increased or decreased Contractor costs in excess of five thousand dollars ($5,000) in the aggregate annually, the Contractor shall submit a detailed proposal for the adjustment of the rates to reflect any additional costs or savings to the Contractor. It is intended that the Contractor's rates pursuant to this Contract in such a case be adjusted so as to pass through any resulting additional costs incurred by the Contractor to the Contractor or any savings realized to the Contractor to the City. The Contractor and City shall enter into good faith negotiations to determine whether compensation adjustments are appropriate for the amount exceeding the five thousand dollar ($5,000) aggregated threshold (in cases in which the threshold applies) and if so, to determine the amount and the method of adjustment. 5.3.6 Changes in Service Provision In the event that either the Contractor initiates any changes in how Contract services are provided that reduce Contractor costs and cause adverse Customer impacts in the opinion of the City, the Contractor shall promptly notify the City in writing of such reduced costs, and rates shall be reduced within thirty (30) Days of the subject change so that the City and the Contractor's Customers shall receive the benefit of fifty percent (50%) of the cost savings. Contractor changes in how Contract services are provided that do not adversely affect Customers shall not affect Customer rates. City of Tukwila 51 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 100 5.4 Change in Law The City may consider an adjustment to rates as a result of changes in federal, state, or local laws or regulations, the administrative or judicial interpretation thereof, or an order or judgement of any governmental authority, not addressed otherwise in this contract that affect the Contractor's cost in excess of five thousand dollars ($5,000) in the aggregate annually. The Contractor shall submit a detailed proposal for the adjustment of the rates to reflect any additional costs or savings to the Contractor. It is intended that the Contractor's rates pursuant to this Contract in such a case be adjusted so as to pass through any resulting additional costs incurred by the Contractor to the Contractor or any savings realized to the Contractor to the Customers or City. The Contractor and City shall enter into good faith negotiations to determine whether compensation adjustments are appropriate for the amount exceeding the five thousand dollar ($5,000) aggregated threshold (in cases in which the threshold applies) and if so, to determine the amount and the method of adjustment. 6. FAILURE TO PERFORM, REMEDIES, TERMINATION The City expects high levels of Customer Service and collection service provision. Performance failures shall be discouraged, to the extent possible, through specific performance fees for certain infractions and through Contract default for more serious lapses in service provision. Section 6.1 details infractions subject to performance fees and Section 6.2 details default provisions and procedures. 6.1 Performance Fees The City reserves the right to make periodic, unscheduled inspection visits to determine the Contractor's compliance with the provisions and requirements of this Contract. In the event that the City's inspection reveals that the Contractor has failed to satisfactorily perform any duties of this Contract, the City shall present an incident report to the Contractor detailing such unsatisfactory performance. The Contractor and the City agree that upon receiving such report, the Contractor shall pay the following dollar amounts, not as a penalty, but as performance fees for failure to satisfactorily perform its duties under this Contract. The City and the Contractor agree that the City's damages would be difficult to prove in any litigation and that these dollar amounts are a reasonable estimate of the damages sustained by the City as a result of the Contractor's failure to satisfactorily perform its duties under this Contract. The performance fees in this Section 6.1 shall not apply to the service impacts of Labor Disruptions, as separate performance fees shall apply under those circumstances, as described in Section 4.2.10. Performance fees shall include: City of Tukwila 52 Comprehensive Garbage, Recyclables, and Compostables Collection Contract August 2022 101 Action or Omission Performance fees 1 Collection before or after the times specified in Section 4.1.3, except as expressly permitted in writing. Five hundred dollars ($500) per incident (each vehicle on each route is a separate incident). City of Tukwila 52 Comprehensive Garbage, Recyclables, and Compostables Collection Contract August 2022 101 City of Tukwila 53 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 102 August 2022 Action or Omission Performance fees 2 Repetition of complaints on a route after notification, including, but not limited to, failure to replace Containers in designated locations, spilling, not closing gates, not replacing lids, crossing planted areas, or similar violations. One hundred dollars ($100) per incident, not to exceed five hundred dollars ($500) per vehicle per Day. 3 Failure to initiate clean-up or collect leaked or spilled materials and/or failure to notify the City within three (3) hours of Contractor knowledge of such release. The cost of cleanup to the City, plus five hundred dollars ($500) per incident. 4 City observed leakage or spillage from Contractor vehicles or of vehicle contents. Five hundred dollars ($500) per vehicle, per inspection, plus clean-up costs (and potential code fines/penalties). 5 Failure to replace a leaking Container within one (1) business day of notification. One hundred dollars ($100) per incident, and then one hundred dollars ($100) per Day that the Container is not replaced. 6 Failure to collect missed materials within one (1) business day of notification. One hundred dollars ($100) per incident to a maximum of five hundred dollars ($500) per vehicle per Day. 7 Missed collection of a block segment of Single -Family Residences (excluding collections prevented by inclement weather, but not excluding collections prevented by inoperable vehicles). A block segment is defined as one side of a street, between cross -streets, not to exceed fifty (50) houses. Two hundred fifty dollars ($250) per block segment if collection is performed the following day; one thousand dollars ($1,000) if not collected by the following Day. 8 Collection as Garbage of non -contaminated Source- separated Recyclables, Yard Debris, or Compostables in clearly identified Containers, Carts, bags, or boxes. One thousand dollars ($1,000) per incident. 9 Rejection of Garbage, Recyclables, or Compostables without providing documentation to the Customer of the reason for rejection. One hundred dollars ($100) per incident. 10 Failure to deliver or remove Containers within three (3) business days of request to Multifamily or Commercial Customers requesting service after the Date of Commencement of Service. One hundred dollars ($100) per incident. 11 Failure to deliver or remove Garbage, Recyclables, or Compostables Containers within seven (7) Days of request to Single -Family Residence Customers requesting service after the Date of Commencement of Service. One hundred dollars ($100) per incident. 12 Misrepresentation by Contractors in records or reporting. Five thousand dollars ($5,000) per incident. 13 Failure to provide the required annual, monthly, or ad hoc report on time. Five hundred dollars ($500) per Day past deadline. City of Tukwila 53 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 102 August 2022 Nothing in this Section shall be construed as providing an exclusive list of the acts or omissions of the Contractor that shall be considered violations or breaches of the Contract, and the City reserves the right to exercise any and all remedies it may have with respect to these and other violations and breaches. The performance fees schedule set forth here shall not affect the City's ability to terminate this Contract as described in Section 6.2. Performance fees, if assessed during a given month, shall be invoiced in writing by the City to the Contractor. The Contractor shall be required to pay the City the invoiced amount within thirty (30) Days of billing. Failure to pay performance fees shall be considered a breach of this Contract, and shall accrue penalty charges of eight percent (8%) per month of the amount of any delinquent payments. City of Tukwila 54 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 103 Action or Omission Performance fees 14 Failure to maintain clean, sanitary, properly painted, and properly labeled Containers. Fifty dollars ($50) per incident, up to maximum of one thousand dollars ($1,000) per inspection. 15 Failure to maintain Contract -compliant vehicles. Fifty dollars ($50) per incident, up to maximum of one thousand dollars ($1,000) per inspection. 16 Failure to meet Customer Service answer and on -hold time performance requirements. One hundred dollars ($100) per Day. 17 Failure to meet the service and performance standards listed in Section 4.3.2 of this Contract for a period of two (2) consecutive months. Two hundred and fifty dollars ($250) per Day until the service standards listed in Section 4.3.2 are met for ten (10) consecutive business days. 18 Failure to ensure that all Customers have Contract- compliant Garbage, Recyclables, and Compostables Containers on or before the Date of Commencement of Service. Five thousand dollars ($5,000) per day, plus twenty-five dollars ($25) per Container for each incident occurring after the Date of Commencement of Service. 19 Failure to include City -authorized instructional/ promotional materials when Garbage, Recycling, and/or Compostables Containers are delivered to Single -Family Residences, or failure to affix required City -authorized labels on Containers. One hundred dollars ($100) per incident. 20 Failure to separate collection of Recyclables materials from Service Area Customers from non -Service Area customers. Five thousand dollars ($5,000) per route per day. 21 Failure to properly use an authorized switchable placard or nameplates as described in Section 4.1.13. One hundred dollars ($100) per placard per vehicle per Day. 22 Inability to reach the Contractor's staff via the emergency phone number. Two hundred -fifty dollars ($250) per incident. 23 The use of outdated, or unauthorized labels, or lack of required labels on Contractor -provided Containers. One hundred dollars ($100) per Container. 24 Failure to have correct rates for all Customer sectors and service levels listed on the Contractor's website. Two hundred -fifty dollars ($250) per Day. Nothing in this Section shall be construed as providing an exclusive list of the acts or omissions of the Contractor that shall be considered violations or breaches of the Contract, and the City reserves the right to exercise any and all remedies it may have with respect to these and other violations and breaches. The performance fees schedule set forth here shall not affect the City's ability to terminate this Contract as described in Section 6.2. Performance fees, if assessed during a given month, shall be invoiced in writing by the City to the Contractor. The Contractor shall be required to pay the City the invoiced amount within thirty (30) Days of billing. Failure to pay performance fees shall be considered a breach of this Contract, and shall accrue penalty charges of eight percent (8%) per month of the amount of any delinquent payments. City of Tukwila 54 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 103 Any performance fees assessed against the Contractor may be appealed by the Contractor in writing to the City within ten (10) Days of being invoiced for assessed performance fees. The Contractor shall be allowed to present evidence as to why the amount of the assessed performance fees should be lessened or eliminated, including the provision of incorrect information provided by a previous contractor for contract failures during the initial transition period. The City's decision shall be final and not subject to appeal. 6.2 Contract Default The Contractor shall be in default of this Contract if it violates any material provision of this Contract. In addition, the Contractor shall be in default of the Contract should any of the following occur, including, but not limited to: 1. The Contractor fails to commence the collection of Garbage, Recyclables, or Compostables, or fails to provide any portion of service under the Contract on the Date of Commencement of Service, or for a period of more than five (5) consecutive Days at any time during the term of this Contract, except as provided pursuant to Section 4.1.18; 2. The Contractor fails to obtain and maintain any permit, certification, authorization, or license required by the City, County, or any federal, state, or other regulatory body in order to collect materials under this Contract, or comply with any environmental standards and regulations; 3. The Contractor's noncompliance creates a hazard to public health or safety or the environment; 4. The Contractor disposes of uncontaminated Source -separated Recyclables or Compostables collected from clearly identified Recyclables or Compostables Containers, bags, or boxes in a landfill or incinerated at an incinerator or energy recovery facility, without the prior written permission of the City; 5. The Contractor fails to make any required payment to the City, as specified in this Contract; 6. The Contractor is assessed performance fees pursuant to Section 6.1 in excess of fifteen thousand dollars ($15,000) during any consecutive six (6) month period; or 7. The Contractor fails to resume full service to Customers within twenty-one (21) Days following the initiation of a labor disruption pursuant to Section 4.1.18. The City reserves the right to pursue any remedy available at law or in equity for any default by the Contractor. In the event of default, the City shall give the Contractor ten (10) Days prior written notice of its intent to exercise its rights, stating the reasons for such action. However, if an emergency shall arise (including but not limited to a hazard to public health or safety or the environment) that does not allow ten (10) Days prior written notice, the City shall promptly notify the Contractor of its intent to exercise its rights. If the Contractor cures the stated reason within the stated period, or initiates efforts satisfactory to the City to remedy the stated reason and the efforts continue in good faith, the City may opt to not exercise its rights for the particular incident. If the Contractor fails to cure the stated reason within the stated period, or does not undertake efforts satisfactory to the City to remedy the stated reason, then the City may at its option terminate this Contract effective immediately. City of Tukwila 55 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 104 If Contractor abandons or violates any material provision of this Contract, fails to fully and promptly comply with all its obligations, or fails to give any reason satisfactory to the City for noncompliance, and fails to correct the same, the City, after the initial ten (10) Days' notice, may then declare the Contractor to be in default of this Contract and notify the Contractor of the termination of this Contract. A copy of said notice shall be sent to the Contractor and surety on the Contractor's performance bond. Upon receipt of such notice, the Contractor agrees that it shall promptly discontinue the services provided under this Contract. The surety of the Contractor's performance bond may, at its option, within ten (10) Days from such written notice, assume the services provided under this Contract that the City has ordered discontinued and proceed to perform same, at its sole cost and expense, in compliance with the terms and conditions of the Contract, and all documents incorporated herein. In the event that the surety on the Contractor's performance bond fails to exercise its option within the ten (10) day period, the City may complete the Services provided under this Contract or any part thereof, either through contract with another party or any other means. The City shall be entitled to recover from Contractor and the surety on Contractor's performance bond as damages all expenses incurred, including reasonable attorneys' fees, together with all such additional sums as may be necessary to complete the services provided under this Contract, together with any further damages sustained or to be sustained by the City. A surety performing under this Contract shall be entitled to payment in accordance with this Contract for Contract services provided by the surety, and shall otherwise be subject to the same rights and obligations with respect to the Contract services furnished by the surety as would be applicable if the Contract services were to be performed by the Contractor. The City's obligation to pay for such Contract services shall be subject to satisfactory performance by the surety as well as to setoffs or recoupments for sums, if any, owed by Contractor to City on account of Contractor's abandonment or default. If the City employees provide Garbage, Recyclables or Compostables collection, the actual incremental costs of City labor, overhead, and administration shall serve as the basis for a charge to the Contractor and the surety on the Contractor's performance bond. 7. NOTICES Routine communications between the Contractor and the City's contract manager shall be conducted via e-mail unless otherwise required under this Contract. All notices referencing change of ownership, penalties, rate requests, performance fees, or Contract default shall be e-mailed and provided in writing, personally served, or mailed (postage -prepaid and return receipt requested), addressed to the Parties as follows, or as amended by either Party, in writing, from time to time. The Contractor shall provide e-mail addresses for use by the City when sending notices of penalties, performance fees, or Contract default: To the City: Director of Public Works City of Tukwila 6300 Southcenter Blvd, Suite 200 Tukwila, WA 98188-2544 To Contractor: City of Tukwila 56 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 105 Recology King County, Inc. 801 S Fidalgo St, Suite 100 Seattle, WA 98108 8. GENERAL TERMS 8.1 Collection Right Throughout the Contract Term, the Contractor shall be the exclusive provider with which the City shall contract to collect Garbage, Compostables and Recyclables placed in designated Containers and set out in the regular collection locations within the City Service Area subject to this Contract. When asked by the Contractor, the City shall make a good faith effort to protect the exclusive rights of the Contractor under this Contract; however, the City shall not be obligated to instigate, join in or contribute to the expense of litigation to protect the exclusive rights of the Contractor unless the City's institution of or joinder in such litigation is necessary for the protection of such rights. The Contractor may independently enforce its rights under this Contract against third party violators, including, but not limited to, seeking injunctive relief, and the City shall use good faith efforts to cooperate in such enforcement actions brought by the Contractor (without obligating the City to join any such litigation, except for as provided in this paragraph). Such efforts may include but not be limited to cease and desist letters, assistance with documenting violations, and other activities as City staff time reasonably allows. This Contract provision shall not apply to Garbage, Recyclables, or Compostables self -hauled by the generator; to Source -separated materials hauled by common or private carriers (including drop-off recycling sites); or to construction/demolition waste hauled by self -haulers or construction or demolition contractors in the normal course of their business. The Contractor shall retain the right and cover all costs to dispose of or process and market the Garbage, Recyclables, and Compostables once these materials are placed in Contractor -provided or the City -owned Containers. The Contractor shall retain revenues gained from the sale of Recyclables or Compostables. Likewise, a tipping or acceptance fee charged for Recyclables or Compostables shall be the financial responsibility of the Contractor. 8.2 Access to Records The Contractor shall maintain in its local office full and complete operations, Customer, financial, and Service records that at any reasonable time shall be open for inspection and copying for any reasonable purpose by the City. In addition, the Contractor shall, during the Contract term, and at least seven (7) years thereafter, maintain in an office within thirty (30) miles of the Service Area for storing records pertaining to the Contract that are prepared in accordance with Generally Accepted Accounting Principles, reflecting the Contractor's Services provided under this Contract. Those Contractor's accounts shall include, but shall not be limited to, all records, invoices, and payments under the Contract, as adjusted for additional and deleted Services provided under this Contract. The City shall be allowed access to these records for audit and review purposes, subject to the same protections of the Contractor's financial or other proprietary information set forth in Section 5.3. City of Tukwila 57 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 106 The Contractor shall make available copies of certified weight slips for Garbage, Recyclables, and Compostables on request within two (2) business days of the request. The weight slips may be requested for any period during the Term of this Contract. 8.3 Insurance The Contractor shall procure and maintain, for the Term of the Contract, insurance that meets or exceeds the coverage set forth below, as determined in the sole reasonable discretion of the City. The cost of such insurance shall be paid by the Contractor. Contractor's maintenance of insurance as required by this Contract shall not be construed to limit the liability of the Contractor to the coverage provided by such insurance, or otherwise limit the City's recourse to any remedy available at law or in equity. 8.3.1 Minimum Scope of Insurance The Contractor shall obtain insurance that meets or exceeds the following of the types described below: 1. Automobile Liability insurance covering all owned, non -owned, hired, and leased vehicles. Coverage shall be written on Insurance Services Office (ISO) form CA 00 01 or a substitute form providing equivalent liability coverage. If necessary, the policy shall be endorsed to provide contractual liability coverage. The policy shall include the ISO CA 9948 Form (or its equivalent) for transportation of cargo and a MCS 90 Form in the amount specified in the Motor Carrier Act. The policy shall include a waiver of subrogation in favor of the City. The City shall be named as an additional insured under the Contractor's Automobile Liability insurance policy. 2. Commercial General Liability insurance shall be written on ISO occurrence form CG 00 01, or a substitute form providing equivalent liability coverage and shall cover liability arising from premises, operations, independent contractors, products -completed operations, personal injury and advertising injury, and liability assumed under an insured contract. There shall be no endorsement or modification of the Commercial General Liability insurance for liability arising from explosion, collapse, or underground property damage. The City shall be named as an additional insured under the Contractor's Commercial General Liability insurance policy with respect to the work performed for the City, using ISO additional insured endorsements CG 2010 0704 and CG 2037 0704. 3. Workers' Compensation coverage as required by the Industrial Insurance laws of the State. 4. Contractor's Pollution Liability insurance coverage covering any occurrence of bodily injury, personal injury, property damage, cleanup costs, and legal defense expenses applying to all work performed under the contract, including that related to transported cargo. The City shall be named as an additional insured under the Contractor's Pollution Liability insurance policy. City of Tukwila 58 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 107 8.3.2 Minimum Amounts of Insurance Contractor shall maintain at a minimum the following insurance limits: 1. Automobile Liability insurance with a minimum combined single limit for bodily injury and property damage of five million dollars ($5,000,000) for each accident. Limits may be achieved by a combination of primary and umbrella policies. 2. Commercial General Liability insurance shall be written with limits no less than five million dollars ($5,000,000) for each occurrence, five million dollars ($5,000,000) general aggregate, and a two million dollar ($2,000,000) products -completed operations aggregate limit. Limits may be achieved by a combination of primary and umbrella policies. 3. Workers' Compensation coverage as required by the Industrial Insurance laws of the State. 4. Contractor's Pollution Liability insurance shall be written with limits no less than three million dollars ($3,000,000) combined single limit for each pollution condition for bodily injury, personal injury, property damage, cleanup costs, and legal defense expense. 8.3.3 Other Insurance Provisions The insurance policies are to contain, or be endorsed to contain, the following provisions for Automobile Liability, Commercial General Liability, and Contractor's Pollution Liability coverage: 1. The Contractor's insurance coverage shall be the primary insurance with respect to the City, its officials, employees, and volunteers. Any insurance, self-insurance, or insurance pool coverage maintained by the City shall be in excess of the Contractor's insurance and shall not contribute with it. The City, its officials, officers, employees, agents, and volunteers shall be named as additional insureds on the Contractor's Automobile Liability, Commercial General Liability, and Pollution Liability insurance policies, via blanket -form endorsement. 2. Coverage shall state that the Contractor's insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer's liability. 3. Each insurance policy required by the insurance provisions of this Contract shall provide the required coverage and shall not be canceled except after the Contractor endeavors to provide thirty (30) Days prior written notice has been given to the City. Such notice shall be sent directly to the City. If any insurance company refuses to provide the required notice, the Contractor or its insurance broker shall notify the City of any cancellation of any insurance immediately on receipt of insurers' notification to that effect. 8.3.4 Acceptability of Insurers Insurance is to be placed with insurers with a current AM Best rating of not less than A -:VII. 8.3.5 Verification of Coverage City of Tukwila 59 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 108 The Contractor shall furnish the City Administrator and City Attorney with original certificates and a copy of the blanket -form amendatory endorsements as required herein, including, but not necessarily limited to, the additional insured endorsement, evidencing the insurance requirements of the Contractor at least thirty (30) Days before the Date of Commencement of Service of this Contract. 8.3.6 Subcontractors Contractor will request all subcontractors performing work in connection with this Agreement to maintain the following minimum insurance: Workers' Compensation in accordance with applicable law or regulation, Employer's Liability with limits of $1,000,000, Commercial General Liability with limits of $1,000,000 per occurrence and $2,000,000 in the annual aggregate, and Automobile Liability insurance with limits of $1,000,000. 8.4 Performance Bond The Contractor shall provide and maintain at all times a valid Contractor's Performance and Payment Bond(s) in a form acceptable and approved by the City in the amount of seven hundred and fifty thousand dollars ($750,000). The bond(s) shall be issued for a period of not less than one (1) year, and the Contractor shall provide new bond(s) to the City no less than sixty (60) Days prior to the expiration of the bond(s) then in effect. The City shall have the right to call the bond(s) in full in the event its renewal is not confirmed prior to five (5) Days before its expiration. 8.5 Indemnification 8.5.1 Indemnify and Hold Harmless The Contractor shall indemnify, defend, protect, and hold harmless the City, its elected and appointed officials, officers, employees, representatives and agents, from any and all third party claims or suits, and any damages, costs, judgments, awards or liability resulting from such claims or suits, (a) for injury or death of any person or damage to property to the extent the same is caused by the actual or alleged negligent acts or omissions, or willful misconduct, of Contractor, its agents, servants, representatives, officers, or employees in the performance of this Contract and any rights granted hereunder, orb) to the extent such claim or demand is caused by Contractor's unlawful release of Hazardous Waste in violation of any Environmental Law in its performance of Services and exercise of any rights granted hereunder. This indemnity under subsection 8.5.1(b) includes each of the following to the extent the same is caused by Contractor's unlawful release of Hazardous Substances in violation of applicable Environmental Laws: (i) liability for a governmental agency's costs of removal or remedial action for such release by Contractor of Hazardous Waste; (ii) damages to natural resources caused by Contractor's release of Hazardous Waste, including reasonable costs of assessing such damages; (iii) liability for any other person's costs of responding to such release by Contractor of Hazardous Waste; and (iv) liability for any costs of investigation, abatement, correction, cleanup, fines, penalties, or other damages arising under any Environmental Laws that are caused by Contractor's release of Hazardous Waste. Provided, however, such indemnification shall not extend to any portion of any claims, demands, liability, loss, cost, damage or expense of any nature whatsoever including all costs and attorneys' fees caused by the willfully tortious, or negligent acts or omissions of the City, its agents, employees, official, officers, contractors or subcontractors. City of Tukwila 60 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 109 8.5.2 Process In the event any claim for such damages be presented to or filed with the City, the City shall promptly notify Contractor thereof, and Contractor shall have the right, at its election and at its sole cost and expense, to settle and compromise such claim. In the event any suit or action is filed against the City based upon any such claim or demand, the City shall likewise promptly notify Contractor thereof, and Contractor shall defend such claim at is sole cost and expense and with legal counsel agreed to by the City; provided, Contractor shall not settle any such suit or action without the express written agreement by the City. The indemnification obligations set forth herein shall extend to claims which are not reduced to a suit and any claims which may be compromised, with Contractor's written consent, prior to the culmination of any litigation or the institution of any litigation. The City also has the right to defend or participate in the defense of any such claim at its own cost and expense, provided that Contractor shall not be liable for such settlement of other compromise unless it has consented thereto in writing. The provisions contained herein have been mutually negotiated by the Parties. Solely to the extent required to enforce the indemnification provisions of this Section 8.5.1, Contractor waives its immunity under Title 51 RCW, Industrial Insurance; provided, however, the foregoing waiver shall not in any way preclude Contractor from raising such immunity as a defense against any claim brought against Contractor by any of its employees. Inspection or acceptance by the City of any Services performed under this Contract shall not be grounds for avoidance of any of these covenants of indemnification. Said indemnification obligations shall extend to claims which are not reduced to a suit and any claims which may be compromised, with Contractor's prior written consent, prior to the culmination of any litigation or the institution of any litigation. The provisions of this Section 8.5 shall survive the termination or expiration of this Contract. 8.6 Confidentiality of Information Pursuant to the Washington Public Records Act ("PRA"), chapter 42.56 RCW, public records, as defined by the PRA may be subject to disclosure upon request by any person, unless the documents are exempt from public disclosure by a specific provision of law. If the City receives a request for inspection or copying of any documents Contractor -provided documents that have been identified as confidential and proprietary, it shall promptly notify the Contractor in writing regarding the public records request. The City will give the Contractor ten (10) business days after such notification within which to obtain a court order prohibiting the release of the documents. The City assumes no contractual obligation to enforce any exemption under the PRA. 8.7 Assignment of Contract 8.7.1 Assignment or Pledge of Money by the Contractor The Contractor shall not assign or pledge any of the money due under this Contract without securing the prior written approval of the surety of the Contractor's performance bond and providing at least thirty (30) day's prior written notice to the City of such assignment or pledge together with a copy of the surety's approval thereof. Such assignment or pledge, however, shall not release the Contractor or its sureties City of Tukwila 61 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 110 from any obligations or liabilities arising under or because of this Contract. The requirements of this section shall not apply to the grant of a general security interest in the Contractor's assets to secure the Contractor's obligations under any loan or credit facility entered into by the Contractor or the Contractor's parent. 8.7.2 Assignment, Subcontracting, and Delegation of Duties The Contractor shall not assign or subcontract any of the services provided under this Contract or delegate any of its duties under this Contract without the prior written approval of the City, which may be granted or withheld in the City's sole discretion. In the event of an assignment, subcontracting, or delegation of duties, the Contractor shall remain responsible for the full and faithful performance of this Contract and the assignee, subcontractor, or other obligor shall also become responsible to the City for the satisfactory performance of the services to be provided under this Contract. The City may impose conditions of approval on any such assignment, subcontracting, or Change of Control, including but not limited to requiring the delivery by the assignee, subcontractor, or other obligor of its covenant to the City to fully and faithfully complete the services to be provided under this Contract or responsibilities undertaken. In addition, the assignee, subcontractor, or obligor shall sign a separate statement agreeing to abide by all terms and conditions of this Contract. The City may terminate this Contract if the assignee, subcontractor, or obligor does not comply with this clause. For the purposes of this Contract, any Change of Control of the Contractor shall be considered an assignment subject to the requirements of this section. Nothing herein shall preclude the City from executing a novation, allowing the new ownership to assume the rights and duties of the Contract and releasing the previous ownership of all obligations and liability. 8.7.3 Change of Trade Name In the event the Contractor wishes to change the trade name under which it does business under this Contract, the Contractor shall provide the name, logo, and colors under which it will be doing business in writing to the City at least thirty (30) Days prior to the effective date of its change of trade name. Within a reasonable period following a change of trade name by the Contractor, all items, logos, articles, and implements seen by the public shall be changed, including but not limited to letterhead, signs, promotional materials, website pages, billing statements, envelopes, Container decals, and other items. Vehicles are the only exception; vehicles must be repainted with new trade name, and any new logo or colors, within two (2) years of the effective date of the change of trade name. Failure to comply with the terms of this section shall result in performance fees assessed against the Contractor in accordance with Section 6.1. 8.8 Laws to Govern/Venue This Contract shall be governed by the laws of the State both as to interpretation and performance. Venue shall be the County Superior Court. 8.9 Compliance with Applicable Laws and Regulations City of Tukwila 62 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 111 The Contractor shall comply with all federal, State, and local regulations and ordinances applicable to the work to be done under this Contract. Any violation of the provisions of this section shall be considered a violation of a material provision of this Contract and shall be grounds for cancellation, termination, or suspension of the Contract by the City, and may result in ineligibility for further work for the City. The Contractor agrees not to discriminate against any employee or applicant for employment or any other persons in the performance of this Contract because of race, religion, creed, color, national origin, marital status, gender, age, disability, sexual orientation, gender identity, or other circumstances as may be defined by federal, State, or local law or ordinance, except for a bona fide occupational qualification. Without limiting the foregoing, Contractor agrees to comply with the provisions of the Affidavit of Equal Opportunity & Title VI Compliance requirements incorporated herein by this reference. The Contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the Contractor setting forth the provisions of this nondiscrimination clause. Conditions of the Federal Occupational Safety and Health Act of 1970 (OSHA), the Washington Industrial Safety and Health Act of 1973 (WISHA), and standards and regulations issued under these Acts from time - to -time must be complied with, including ergonomic and repetitive motion requirements. The Contractor must indemnify and hold harmless the City from all damages, injuries or losses assessed for the Contractor's failure to comply with the Acts and Standards issued therein. The Contractor is also responsible for meeting all federal, State, and local health and environmental regulations and standards applying to the operation of the collection and processing systems used in the performance of this Contract. The Contractor is specifically directed to observe all weight -related laws and regulations in the performance of these services, including axle bridging and loading requirements. 8.10 Permits and Licenses The Contractor and subcontractors shall secure a City business license and pay all fees and taxes levied by the City. The Contractor shall obtain all permits, certifications, authorizations, and licenses necessary to provide the services required herein prior to the Date of Execution of this Contract at its sole expense. The Contractor shall be solely responsible for all taxes, fees, and charges incurred, including, but not limited to, license fees and all federal, State, regional, county, and local taxes and fees, including income taxes, property taxes, permit fees, operating fees, surcharges of any kind that apply to any and all persons, facilities, property, income, equipment, materials, supplies, or activities related to the Contractor's activities under the Contract, business and occupation taxes, workers' compensation, and unemployment benefits. 8.11 Relationship of Parties The City and Contractor intend that an independent contractor relationship shall be created by this Contract. The implementation of services shall lie solely with the Contractor. No agent, employee, servant, or representative of the Contractor shall be deemed to be an employee, agent, servant, or representative of the City. City of Tukwila 63 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 112 8.12 Contractor's Relationship with Customers The Contractor shall not separately contract with Customers for any services covered under this Contract; however, the Contractor may negotiate separate agreements with Customers for the sole purpose of compactor leasing, payment for recyclables, or other related services only when not included in this Contract, provided that Customers are provided separate invoices for those services and that the Contractor makes it clear to Customers that those services are not provided under this Contract. These separate agreements must be in writing and shall in no way expressly or by application supersede this Contract. The Contractor agrees these separate agreements shall not contain durations any longer than the final date of this Contract's Term. The Contractor shall provide to the City a detailed list of all such separate agreements with Customers upon the City's request. The City may, at its sole option, regulate similar or identical services in the successor to this contract. 8.13 Bankruptcy It is agreed that if an order for relief with respect to the Contractor is entered in any bankruptcy case, either voluntarily or involuntarily, in which the Contractor is a debtor, then this Contract, at the option of the City, may be terminated effective on or after the day and time the order for relief is entered. 8.14 Right to Renegotiate/Amend The City shall retain the right to renegotiate this Contract or negotiate contract amendments at its discretion or based on policy changes, State statutory changes, or County rule changes, State or federal regulations regarding issues that materially modify the terms and conditions of the Contract, including but not limited to any modifications to contracting terms or policies as they relate to County disposal services. The City may also renegotiate this Contract should any State, County, or City rate or fee associated with the Contract be held illegal or any increase thereof be rejected by voters. In addition, the Contractor agrees to renegotiate in good faith with the City in the event the City wishes to change disposal locations or add additional services or developments, such as those identified through a pilot program under Section 4.1.16, to the Contract and to provide full disclosure of existing and proposed costs and operational impacts of any proposed changes. This Contract may be amended, altered, or modified only by a written amendment or addendum executed by authorized representatives of the City and the Contractor. 8.15 Force Majeure Provided that the requirements of this section are met, Contractor shall not be deemed to be in default and shall not be liable for failure to perform under this Contract if Contractor's performance is prevented or delayed by Acts of Nature, including but not limited to landslides, lightning, forest fires, storms, floods, freezing and earthquakes, terrorism, civil disturbances, acts of the public enemy, wars, blockades, public riots, explosions, pandemics, governmental restraint or other causes, whether of the kind enumerated or otherwise, that are not reasonably within the control of the Contractor, and are not the result of the willful or negligent act, error or omission of the Contractor; and that could not have been prevented by the Contractor through the exercise of reasonable diligence ("Force Majeure"). The Contractor's obligations under this Contract shall be suspended, but only with respect to the particular component of obligations affected by the Force Majeure and only for the period during which the Force Majeure exists. City of Tukwila 64 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 113 The following events do not constitute Force Majeure: strikes, other than nationwide strikes or strikes that by virtue of their extent or completeness make the particular goods or services effectively unavailable to the Contractor; work stoppages or other labor disputes or disturbances occurring with respect to any activity performed or to be performed by the Contractor; accidents to machinery, equipment or materials; unavailability of required materials or disposal restrictions; or general economic conditions. If as a result of a Force Majeure event, Contractor is unable wholly or partially to meet its obligations under this Contract, the Contractor shall notify the City by phone and e-mail, on or promptly after the Force Majeure is first known, followed within seven (7) Days by a written description of the event and cause thereof to the extent known; the date the event began, its estimated duration, the estimated time during which the performance of the Contractor's obligations will be delayed; the likely financial impact of the event; and whatever additional information is available concerning the event and its impact on the City and its Customers. The Contractor shall provide prompt written notice of the cessation of the Force Majeure. Whenever such event shall occur, the Contractor, as promptly and as reasonably possible, shall use its best efforts to eliminate the cause, reduce the cost, and resume performance under the Contract. In addition, if as a result of a Force Majeure event, Contractor is unable wholly or partially to meet its obligations under this Contract, the Contractor shall notify all Customers regarding the disruption in collection service in a manner similar to the notification required in the case of inclement weather under Section 4.1.7. 8.16 Severability If any provision of this Contract shall be declared illegal, void, or unenforceable, the other provisions of the Contract shall remain in full force and effect. 8.17 Waiver No waiver of any right or obligation of either party hereto shall be effective unless in writing, specifying such waiver, and executed by the party against whom such waiver is sought to be enforced. A waiver by either party of any of its rights under this Contract on any occasion shall not be a bar to the exercise of the same right on any subsequent occasion or of any other right at any time. 8.18 Incorporation of Contractor's Proposal in Response to City's RFP The Contractor's Proposal, dated April 18, 2022 submitted in response to the City's Request for Proposals, is fully incorporated by this reference, including but not limited to collection vehicle types, Customer Service staffing and approach, processing abilities and other commitments made in the Contractor's proposal and all associated clarifications and supplemental proposal materials or attachments. In the case of conflict between the Contractor's proposal and this Contract, the provisions of this Contract shall prevail. 8.19 Dispute Resolution The Parties shall attempt to resolve any and all disputes to the mutual satisfaction of both Parties by good faith discussions. Throughout the duration of a dispute, the Contractor shall continue providing all Services included in this Contract. Disputes not resolved in accordance with other provisions of this Contract or City of Tukwila 65 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 114 through good faith discussions shall be submitted to non-binding mediation before a mediator acceptable to both the City and the Contractor. All costs of mediation, including the City's attorneys' fees and expert witness fees, shall be paid for by the Contractor. Neither party may initiate or commence legal proceedings prior to completion of the non-binding mediation. In the event of litigation, the prevailing party in the suit shall be entitled to attorney fees. 8.20 Entirety This Contract and the exhibits affixed hereto and herein incorporated by reference represent the entire agreement between the City and the Contractor with respect to the services to be provided under this Contract. No prior written or oral statement or proposal shall alter any term or provision of this Contract. WITNESS THE EXECUTION HEREOF on the day and year first herein above written. RECOLOGY KING COUNTY, INC. By CITY OF TUKWILA By City Manager Approved as to Form: By City Attorney City of Tukwila 66 August 2022 Comprehensive Garbage, Recyclables, and Compostables Collection Contract 115 EXHIBITS EXHIBIT A: Service Area EXHIBIT B: Contractor Rates EXHIBIT C: Recyclables List EXHIBIT D: Rate Modification Examples City of Tukwila 1 August 2022 Exhibits 116 EXHIBIT A Service Area Date: February 1, 2022 Dy: R, Linsdo a.,as f.111.0.1,15,,wmrinlom>Gr�msaie ums��sauwas«w,�n�a� City of Tukwila Service Area Exhibit A 1 August 2022 117 EXHIBIT B Contractor Rates City of Tukwila Contractor Rates 118 1 August 2022 2023 PROPOSED SOLID WASTE RATES Residential Curbside Services SERVICE LEVEL TIPPING FEE COMPONENT SERVICE COMPONENT CUSTOMER RATE FAC COMPONENT Monthly Service: Monthly 32/35 Gallon Garbage Cart $1.86 59.15 $11.01 $0.26 Weekly Service: 10 Gallon Garbage Micro -Can $2.01 $11-08 $13.09 $0.34 20 Gallon Garbage Cart $4.05 $10.18 $14.23 $0.67 32/35 Gallon Garbage Cart $6.50 $1185 $20.35 $1.12 45 Gallon Garbage Cart $9.15 $15.10 $24.25 $1.68 64 Gallon Garbage Cart $13.01 $16.37 $29.38 $2.24 96 Gallon Garbage Cart $19.55 $18.90 $38.45 $3.38 Extras (32 Gallon Equivalent) $1.06 $3.94 $5.00 - Compostables Service: 32/35 Gallon EOW Compostables Cart $11.59 - 64 Gallon EOW Compostables Cart $11.59 - 96 Gallon EOW Compostables Cart $1159 - Extra Compostables Cans/Bags, 32 Gallon Equivalent (Each) $3.18 96 Gallon Extra Compostables Cart Rental I $1.97 96 Gallon Extra Compostables Cart Rental + EOW Service $5.93 Miscellaneous Fees: Recycling Cart Rental, In Excess of 2 Carts $1.97 Return Trip (Per Pickup) $6.91 - Carry -out Charge, Per 25 ft, Per Month $3.94 Drive-in Charge, Per Month $5.53 Vacation Standby Fee, Per Month $4.54 Redelivery of All Carts After Service Cancellation $19.77 - On -Call Bulky Waste TIPPING FEE SERVICE DMER FAC Collection SERVICE LEVEL COMPONENT COMPONENT RATE COMPONENT White Goods, Except Refrigerators $24.72 $24.72 Refrigerators & Freezers $49.45- $49.45 Sofas & Chairs $31.83 $9.88 $4171 Mattresses $31.83 $9.88 541.71 - fiires. $4.24 $5.93 510.17 - Miscellaneous, Per Cubic Yard 527.58 $3.94 531.52 MF & Commercial Carts TIPPING FEE SERVICE CUSTOMER FAC SERVICE LEVEL COMPONENT COMPONENT RATE COMPONENT Weekly Service: 20 Gallon Garbage Cart $4.05 $17.05 $21.10 $0.67 32/35 Gallon Garbage Cart $6.50 $22.12 $28.52 $1.12 45 Gallon Garbage Cart $9.15 $24.79 $33.94 $1.68 64 Gallon Garbage Cart $13.01 $27.45 $40.46 $2.25 96 Gallon Garbage Cart $19.55 $37.97 $57.52 $3.37 Extra Garbage Cans/Bags, 12 Gallon Equivalent (Each $1.06 $3.94 $5.00 - Compostable Service: 32/35 Gallon Compostables Cart $14.23 - 64 Gallon Compostables Cart $19.91 96 Gallon Compostables Cart $28.24 Miscellaneous Services: Return Trip (Per Pickup) $6.91 Carry -out Charge, Per 25 ft, Per Month $3.94 Drive-in Charge, Per Month $5.93 Redelivery of Carts After Service Cancellation (Up to 3 Carts) $19.77 - City of Tukwila Contractor Rates 118 1 August 2022 MF & Commercial Detachable Containers lCompautedj SERVICE LEVEL TIPPING FEE COMPONENT SERVICE COMPONENT CUSTOMER RATE FAC COMPONENT Compacted Containers: 1 Cubic Yard Container $131.58 $511.41 $642.99 $20.26 13 Cubic Yard Container $197.36 $589.64 $787.00 $40.52 2 Cubic Yard Container $263.17 5662.24 $931.41 $6039 3 Cubic Yard Container $394.75 $758.09 $1,152.84 $81.05 4 Cubic Yard Container $526.34 $847.19 i $1,37333 $10L32 6 Cubic Yard Container $789.52 $949.80 $1,739.32 $10L32 8 Cubic Yard Container $1,052.73 51,052.47 $2,10520 $12L58 MF & Commercial 1 Detachable Containers{Loose} TIPPING FEE SERVICE CUSTOMER FAC SERVICE LEVEL COMPONENT COMPONENT RATE COMPONENT 1 Cubic Yard Uncompacted: 1 Pickup/Week/Container $37.58 $107.65 $145.23 $6.75 2 Pickups/Week/Container $75.16 $215.52 i $290.68 $13.50 3 Pickups/Week/Container $112.76 $323.29 $436.05 $20.26 4 Pickups/Week/Container $150.37 $431.21 $581.58 $27.01 5 Pickups/Week/Container $187.97 $538.92 $726.89 $33.77 L25/1.5 Cubic Yard Unoornpacted: 1 Pickup/Week/Container $5637 $138.91 $195.28 $10.13 2 Pickups/Week/Container $112.76 $277.93 $390.69 $20.26 3 Pickups/Week/Container $169.17 $41695 $586..12 $30.39 4 Pickups/Week/Container $225.58 $55599 1 $78137 $4032 5 Pickups/Week/Container $281.96 $695.04 $977.00 $50.66 2 Cubic Yard Uncornpacted: 1 Pickup/Week/Container $75.16 $15337 $229.13 $13.50 2 Pickups/Week/Container $150.37 $30820 $458.57 $27.01 3 Pickups/Week/Container $225.58 $46234 $687.92 $40.52 4 Pickups/Week/Container $300.75 $616.55 $917.30 $54.03 5 Pickups/Week/Container $375.97 $770.71 $1,146.68 $67.54 3 Cubic Yard Unctanpacted: 1 Pickup/Week/Container $112.76 $205.18 $317.94 $20.26 2 Pickups/Week/Container $225.58 $410.53 $636.11 $40.52 3 Pickups/Week/Container $338.34 $615.98 $954.32 $60.79 4 Pickups/Week/Container $451.17 $821.32 $1,272.49 $81.05 5 P'ickups/Week/Container $563.95 $1,026.69 51,590.64 5101.32 4 Cubic Yard Uncompacted: 1 Pickup/Week/Container $150.37 $25725 $407.62 $27.01 2 Pickups/Week/Container $300.75 $51437 $81532 $54.03 3 Pickups/Week/Container $451.17 $771.95 $1,223.12 $81.05 4 Pickups/Week/Container $601.54 $1;029.33 $1.,630.87 5108.07 5 Pickups/Week/Container $751.93 $1,286.73 52,038.66 5135.09 6 Cubic Yard Uncntnpacted: 1 Pickup/Week/Container $225.58 $327.01 $552.59 $40.52 2 Pickups/Week/Container $451.17 $65425 $1,105.42 $81.05 3 Pickups/Week/Container $676.76 $98130 $1,658.06 $121.58 4 Pickups/Week/Container $902.34 $1,308.59 $2,210.93 $162.11 5 Pickups/Week/Container $1,127.93 $1,635.64 52,76337 $202.64 ¢8 Cubic Yard Uncarnpacted: 1 Pickup/Nu'eek/Container $300.75 $412.98 $713.73 $54.03 2 Pickups/Week/Container $601.54 $826.17 $1,427.71 $108.07 3 Pickups/Week/Container $902.34 $1,239.29 $2,141.63 $162.11 4 Pickups/Week/Container $1,203.12 $1,652.44 $2,855.56 $216.15 5 Pickups/Week/Container $1,503.91 $2,065.56 1 $3,569.47 $270.19 Extra Garbage: Extra Loose Garbage In Container, 32 Gallon Equlva $1.06 $1.97 $3.03 Extra Loose Garbage an Ground, 32 Gallon EquivaI ivliscelfaneous Services: $1.06 $394 $5.00 Return Trip ( Prr Pickup) $0.88 Container Rollout, Over 25 Feet (Per 10 Feet, Per Pickup) $4.94 City of Tukwila Contractor Rates 2 August 2022 119 MF & Commercial Drop Box Hauling SERVICE LEVEL HAUL CHARGE FAC COMPONENT Non -compacted Service: 10 Cubic Yard Container $232.47 $15.60 15 Cubic Yard Container $232.47 $2140 20 Cubic Yard Container $232-47 $31.20 25 Chic Yard Container $232-47 $39.00 30 Cubic Yard Container $232.47 $46.80 40 Cubic Yard Container $232.47 $62.40 Compacted Service: 10 Cubic Yard Container $232.47 $46.80 15 Cubic Yard Container $232.47 $70.20 20 Cubic Yard Container $232.47 $93.60 25 Cubic Yard Container $232.47 $117.00 30 Cubic Yard Container $232.47 $140.40 40 Cubic Yard Container $232.47 5187.00 TempararyCOnta�iner TTPPING FEE SERVICE FAL SERVICE LEVEL COMPONENT COMPONENT HAUL CHARGE COMPONENT Hauling Temporary Collection Hauling: 2 Cubic Yard Detachable Container $10.70 $54.33 $74.03 4 Cubic Yard Detachable Container $39.39 $72.44 $111.83 6 Cubic Yard Detachable Container $59.11 $92.48 $151.59 8 Cubic Yard Detachable Container $78.80 $117-08 $195.88 Non -compacted 10.40 Cubic Yard Drop -box $232.47 Drop -box Container I IVERv FPI Rental &Delivery SERVICE LEVEL DAILY RENT MONTHLY RENT CHARGE COMPONLNT Detachable Temporary Container: 2 Cubic Yard Detachable Container $133.14 $61-85 $2.03 4 Cubic Yard Detachable Container $13114 $123.71 $4.06 6 Cubic Yard Detachable Container $133.14 $152-72 $5.02 8 Cubic Yard Detachable Container $133.14 $168.92 $5.54 Non -compacted Regular & Temporary Service: Non -compacted 10 Cubic Yard Drop•box $133.14 $13330 $6.53 Non -compacted 15 Cubic Yard Drop. box $133.14 $146-13 $7.10 Non -compacted 20 Cubic Yard Drop• box $133.14 $153-43 $7.40 Non -compacted 25 Cubic Yard Drop•box $133.14 $17131 $8.36 Non -compacted 30 Cubic Yard Drop. box $133.14 $186-85 $9.03 Non -compacted 40 Cubic Yard Drop•box $133.14 $223.64 $10.71 Miscellaneous Fees: SERVICE FEE Additional Mileage Charge for Hauls to Other Sites (Per One Way Mile) $2.96 Return Trip (Per Pickup) $14.83 Stand-by Time (Per Minute) $1.47 Drop -box Turn Around Charge $14.83 Solid Drop -box Lid Charge (Per Month/ $27.69 Event 5ervicet CU3TUIVIER SERVICE LEVEL RATE Delivery, Provision, Collection of a Set of 3 Carts (G, R &C) $30.53 Hourly Rates CUSTOMER SERVICE LEVEL RATE Hourly Rates: Rear/Side Load Packer & Dover $148.38 Front Load Packer & Driver $148.38 Drop Pox Truck & Driver $148.38 Additional Labor (Per Person) $79.13 Miscellaneous Fees SERVICE LEVEL RATE PER EVENT Container Cleaning - Carts $9.88 Container Cleaning - Detachable Containers $29.67 Re -line with Cornpostable Cart Liner $4.94 Drop -box Disposal Drop -box Disposal with Mark-up (Per Ton) $154.29 City of Tukwila Contractor Rates 120 3 August 2022 EXHIBIT C Recyclable Materials to be Collected Recyclable Item Customer Preparation Instructions Limitations Aluminum & Tin — All food and beverage cans, trays, pie tins, and food containers. Empty, clean, secure lids and place in Recycling Container. Food and beverage containers must be empty and clean. Corrugated Cardboard — All corrugated cardboard boxes. Flatten corrugated cardboard boxes and placed in or next to Recycling Container. No larger than 3' x 3' in size, larger boxes shall be cut down to size. Glass Containers — All colored or clear glass jars and bottles. Empty, clean, remove lids, and place in Recycling Container. Food and beverage containers must be empty and clean. Paper — All mixed paper, colored paper, magazines, phone books, catalogues, and advertising supplements. Place clean, dry paper in Recycling Container. All paper must be clean. Plastic Containers — All colors of plastic bottles, jugs, and tubs. Empty, clean, remove lids, and place in Recycling Container. Food and beverage containers must be empty and clean. Plastic bottles, jugs, tubs or containers that have hazardous or toxic products, such as motor oil or pesticides are excluded. Scrap Metal — All ferrous and non- ferrous scrap metal. Free of wood, rubber, and other contaminants. Small items: Place in Recycling Container or secure (e.g. bundle or box) next to Recycling Container. Large items: Call to request pickup at least twenty-four (24) hours before regular service day. Small items: Less than two feet (2') by two feet (2') and thirty - five (35) lbs. Less than five percent (5%) non-metal parts. Large items: Larger than two feet (2') by two feet (2'). Call to request pick-up. Residential only. Used Motor Oil — Pure motor oil. Seal uncontaminated motor oil (no large solids) in clean, clear, screw- top plastic jugs. Label jugs with name and address and place next to Recycling Cart. Limit three (3) gallons per pick - up and ten (10) gallons per year. Residential only. Used Cooking Oil — Pure liquid cooking oil of all types (vegetable, canola, etc.). Seal uncontaminated cooking oil (no large solids) in clean, clear, screw-top plastic jugs. Label jugs with name and address and place next to Recycling Cart. Limit three (3) gallons per pick - up and ten (10) gallons per year. Residential only. City of Tukwila Recyclables List 1 August 2022 121 EXHIBIT D Rate Modification Examples The Customer charges in Exhibit B shall be adjusted annually and are comprised of three separate components: the Service component, Tipping Fee component, and Fixed Annual Charge component. The Service component and Tipping Fee component shall produce the Customer rate and the Fixed Annual Charge shall be listed separately. The Customer charges shall also be adjusted if there is a change to the City's Administrative Fee or Washington State excise tax or any other adjustment to compensation made pursuant to Article 5 of the Contract. Service component. The service component of the Customer charges shall be adjusted annually to reflect the CPI change as described below. The City's Administrative Fee is embedded in the service component of the rate. Tipping Fee component. The Tipping Fee component of the Customer charges shall be adjusted by the percentage increase or decrease in the County Tipping Fee. Any increase or decrease shall not become effective until the new Tipping Fee becomes effective and are actually charged to the Contractor. The City's Administrative Fee plus excise tax on the Administrative Fee is embedded in the Tipping Fee component of the rate. Fixed Annual Charge component. The Fixed Annual Charge component of the Customer charges shall be applied to all regular Garbage services and Garbage Drop -box services. The amount of each year's Fixed Annual Charge is to be provided by the County to the City and Contractor no later than September 1st of the year preceding in which the Fixed Annual Charge is to take effect. This new Fixed Annual Charge shall be adjusted by adding or subtracting, as appropriate, any underpayment or overpayment collected from Customers from the prior calendar year. This component shall be calculated annually as a proportion of monthly Container volume for the current Customer counts. The City's Administrative Fee plus excise tax on the Administrative Fee is embedded in the Fixed Annual Charge component of the rate annually. Formulas for adjustments of the service component, Tipping fee component, and Fixed Annual Charge component are provided below. Adjustments to the Contractor's disposal fees and charges on rates shall be made in units of one cent ($0.01). For example, assuming that as of January 1, 2024, a 32/35 -gallon Cart has a Customer rate of $21.24 per month where $6.70 is the Tipping Fee component and $14.54 is the Service component. $1.13 is the Fixed Annual Charge component including the Administrative Fee and excise tax on the Administrative Fee. The current Tipping Fee is $135.64 and increases to $140.00 per ton starting on January 1, 2025. The new County Fixed Annual Charge is $950,000 with $10,000 previously overpaid by Customers to the Contractor. Currently there are 629,399 cubic yards of garbage calculated from current Customer counts. The previous CPI is 100.0 and the new CPI is 105.0. The current City Administrative Fee is 6.0% and the Washington State excise tax is 1.75%. Symbol Current Customer Rate Description Example Calculation TFCoLD Current Tipping Fee Component of Customer Rate $6.70 - SCOLD Current Service Component of Customer Rate $14.54 - CRoLD Current Customer Rate $21.24 = TFCoLo + SCOLD City of Tukwila Rate Modification Examples 122 1 August 2022 Symbol Tipping Fee Component Description Example Calculation TFoLD Current King County Garbage Tipping Fee $135.64 - TFNEw New King County Garbage Tipping Fee $140.00 - TF% Garbage Tipping Fee Adjustment 3.21% = (TFNEw - TFoLD) / TFoLD Symbol Service Component Description Value Calculation CPIoLD Previous CPI 100.0 - CPINEw Current CPI 105.0 - CPI% CPI Adjustment 5.0% = (CPINEw - CPIoLD) / CPIoLD Symbol New Customer Rate Description Example Calculation TFCNEw New Tipping Fee Component of Customer Rate $6.91 = TFCoLD * (1 + TF%) SCNEw New Service Component of Customer Rate $15.26 = SCOLD * (1 + CPI%) CRNEw New Customer Rate $22.17 = TFCNEw + SCNEw Symbol Fixed Annual Charge Description Example Calculation FACoLD Current County Fixed Annual Charge (FAC) $927,523 FAC for Current Year FACAGG Previous Aggregate FAC Components $937,523 = 1 Previous Years' FAC Components (Without Admin Fee or Excise Tax on Admin Fee) FACoiu FAC Overpayment/Underpayment from prior year $10,000 = FACAGG - FACoLD FACNEw New County FAC $950,000 - FACTRG New Target FAC $940,000 = FACNEw - FACoiu Symbol Fixed Annual Charge Component Description Example Calculation GV Annual Garbage Container Volume (Cubic Yards) 629,399 = 1 (Monthly Garbage Container Volume) * 12 FACGv Monthly Target FAC per Cubic Yard of Garbage (with Admin Fee and Excise Tax on Admin Fee) $1.58 = (FACTRG / GV) * (1 + FF + (FF * ET)) FACCNEw New Fixed Annual Charge Component $1.13 = (Monthly Garbage Container Volume) * FACGv Based upon the calculations above, the new Customer rate as of January 1, 2025 for one 32/35 -gallon Cart is $22.17 per month where $6.91 is the Tipping Fee component and $15.26 is the service component. The Fixed Annual Charge component is $1.13. City of Tukwila Rate Modification Examples 2 August 2022 123 Tax & Fee Elements Value Calculation FF Current City Administrative Fee 6.0% - ET Current Excise Tax 1.75% - Based upon the calculations above, the new Customer rate as of January 1, 2025 for one 32/35 -gallon Cart is $22.17 per month where $6.91 is the Tipping Fee component and $15.26 is the service component. The Fixed Annual Charge component is $1.13. City of Tukwila Rate Modification Examples 2 August 2022 123 124 COUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Mayor's review Council review 09/12/22 JR Works Shops Maintenance & Engineering Building Project Contract Award for Test -to -Fit Site & Program Analysis 09/12122 09/19/22 JR ❑ Ordinance Mtg Date ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑ Other Mtg Date CATEGORY Discussion 11 Mtg Date Mtg SPONSOR ❑Council Mayor HR ❑DCD Finance Fire TV P&R Police PW' ❑Court SPONSOR'S Staff conducted thorough reviews of the candidate firms that responded to the City's SUMMARY Request for Qualifications and Miller Hayashi Architects was selected for a test -to -fit phase contract which includes the architectural, structural engineering, electrical, civil, landscaping, and estimating consulting services among other expenses. Council is being asked to approve the test -to -fit contract in the amount of $188,727 for architect and engineering services with Miller Hayashi Architects. ITEM INFORMATION ITEM No. 6.B. 125 STAFF SPONSOR: HARI PONNEKANTI ORIGINAL AGENDA DATE: 09/12/22 AGENDA ITEM TITLE Public Architect Works Shops Maintenance & Engineering Building Project Contract Award for Test -to -Fit Site & Program Analysis 09/12122 Motion Date 09/19/22 ❑ Resolution Mtg Date ❑ Ordinance Mtg Date ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑ Other Mtg Date CATEGORY Discussion 11 Mtg Date Mtg SPONSOR ❑Council Mayor HR ❑DCD Finance Fire TV P&R Police PW' ❑Court SPONSOR'S Staff conducted thorough reviews of the candidate firms that responded to the City's SUMMARY Request for Qualifications and Miller Hayashi Architects was selected for a test -to -fit phase contract which includes the architectural, structural engineering, electrical, civil, landscaping, and estimating consulting services among other expenses. Council is being asked to approve the test -to -fit contract in the amount of $188,727 for architect and engineering services with Miller Hayashi Architects. REVIEWED BY Trans&Infrastructure ❑ CommunitySvs/Safety ❑ Finance Comm. ❑ Planning/Economic Dev. ❑ Arts Comm. ❑ Parks Comm. ❑ Planning Comm. COMMITTEE CHAIR: KATE KRULLER ❑ LTAC DATE: 08/29/22 RECOMMENDATIONS: SPONSOR/ADMIN. COMMITTEE Public Works Department Unanimous Approval; Forward to Committee of the Whole COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED $188,727.00 $350,000.00 $0.00 Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 09/12/22 09/19/22 MTG. DATE ATTACHMENTS 09/12/22 Informational Memorandum dated 08/26/22 Request for Qualifications Proposed Miller Hayashi Contract Miller Hayashi Proposal Minutes from Transportation and Infrastructure Committee meeting of 08/29/22 09/19/22 No attachments 125 126 COUNCIL AGENDA SYNOPSIS Initials Meeting Date Prepared by Mayor's review Council review 4/18/22 CO 4/25/22 CO 09/19/22 CO ITEM INFORMATION ITEM No. 6.C. STAFF SPONSOR: Kari Sand, City Attorney ORIGINAL AGENDA DATE: 4/18/22 AGENDA ITEM TITLE Opioid Settlement Agreement — Next Steps CATEGORY ® Discussion Mtg Date 4/18&4/25 Z Motion Mtg Date 9/19/22 ❑ Resolution Mtg Date ❑ Ordinance Mtg Date ❑ Bid Award Mtg Date ❑ Public Hearing Mtg Date ❑ Other Mtg Date SPONSOR ❑ Council ❑ Mayor ® Admin Svcs ❑ DCD ❑ Finance ❑ Fire ❑ P&R ❑ Police ❑ PW SPONSOR'S SUMMARY The Council approved the MOU to mitigate harm associated with the Pharmaceutical Supply Chain who manufacture and dispense prescription opioids on 4/25/22. In order to get the full settlement amount, the City needs to sign and return the Participation Form and Allocation Agreement before September 23, 2022. REVIEWED BY El Trans&Infrastructure Svcs ❑ Community Svcs/Safety El Finance & Governance ❑ Planning & Community Dev. El LTAC El Arts Comm. DATE: 4/18/22 & 4/25/22 El Parks Comm. ❑ Planning Comm. C.OW. and SPECIAL: COUNCIL PRESIDENT RECOMMENDATIONS: SPONSOR/ADMIN. Legal COMMIrIEE Approved to go to 9/19/22 Meeting by Council President COST IMPACT / FUND SOURCE EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED Fund Source: Comments: MTG. DATE RECORD OF COUNCIL ACTION 4/18/22 Forward to 4/25/22 Special Meeting 4/25/22 Approved Memorandum of Understanding 9/19/22 MTG. DATE ATTACHMENTS 4/18/22 Informational Memorandum dated 4/11/22 Powerpoint presentation Memorandum of Understanding, with Exhibits 4/25/22 Approved Memorandum of Understanding 9/19/22 Informational Memorandum dated 9/13/22 Allocation Agreement and Participation Form Presentation -Washington Distributor Presentation 22-052 - Washington Municipalities - MOU: Opioid Settlement Agreement 127 128 City of Tukwila Allan Ekberg, Mayor INFORMATIONAL MEMORANDUM TO: TUKWILA CITY COUNCIL FROM: Kari Sand, City Attorney BY: Christy O'Flaherty, Records Governance Manager/City Clerk CC: Mayor Ekberg DATE: September 13, 2022 SUBJECT: Opioid Settlement Agreement — Next Steps ISSUE The Council approved the One Washington Memorandum of Understanding to mitigate the harm associated with the Pharmaceutical Supply Chain who manufacture and dispense prescription opioids on April 25, 2022. In order to get the full settlement amount, the City needs to sign and return the Participation Form and Allocation Agreement before September 23, 2022. SETTLEMENT UPDATE The Washington State case was litigated by the Attorney General's Office against distributors AmerisourceBergen, Cardinal Health, and McKesson. The State litigation went to trial and was settled at close of evidence after weeks of trial. The settlement is $518 million, which will be paid over 17 years. $430 million must be used to address opioid issues and cannot be used in the General Fund. 90% of cities over 10,000, and all litigating cities, must agree to the settlement by signing the Participation Form. Cities with a population over 10,000 are listed in Exhibit A, and litigating cities are listed in Exhibit B to the settlement. Of the total settlement amount, up to $215 million are earmarked specifically for cities and will be paid over 17 years. The more cities that sign on, the closer to the maximum amount the cities will receive. To get the full settlement amount, the State needs those cities described above to sign and return the Participation Form before September 23, 2022, which includes a release. Cities must also sign the Allocation Agreement before September 23, 2022. This will be the document that splits the money between the state and local governments - the 50/50 split of up to $430 million. The default allocation in the national agreement is 15% to local, 15% to state, and 70% to dedicated fund. The proposed allocation agreement would change this default method to something the state and litigating cities specifically want. The cities' 50% (up to $215 million) would be split using the One Washington MOU, which the Tukwila Council approved at the April 25, 2022 Special Meeting. Settlement payments start on December 1, 2022. The first payment will be about 2x all the remaining yearly payments. Subsequent payments will be made on July 15 for the next 16 years. The Mallinckrodt and Purdue bankruptcies have different requirements, and no sign on is required. Washington may get substantial money here as well (Purdue larger than Mallinckrodt), which is not part of this current settlement. There may be future opioid settlements, and Johnson & Johnson is pending a trial date. RECOMMENDATION The Council is being asked to approve the Participation Form and Allocation Agreement for the Mayor's signature at the September 19, 2022 Regular Meeting. ATTACHMENTS -Informational Memorandum, dated 9/13/2022 -Allocation Agreement & Participation Form -Presentation-Washington Distributor Presentation -22-052 - Washington Municipalities - MOU: Opioid Settlement Agreement 129 130 ALLOCATION AGREEMENT GOVERNING THE ALLOCATION OF FUNDS PAID BY THE SETTLING OPIOID DISTRIBUTORS IN WASHINGTON STATE AUGUST 8, 2022 This Allocation Agreement Governing the Allocation of Funds Paid by the Settling Opioid Distributors in Washington State (the "Allocation Agreement") governs the distribution of funds obtained from AmerisourceBergen Corporation, Cardinal Health, Inc., and McKesson Corporation (the "Settling Distributors") in connection with its resolution of any and all claims by the State of Washington and the counties, cities, and towns in Washington State ("Local Governments") against the Settling Distributors (the "Distributors Settlement"). The Distributors Settlement including any amendments are attached hereto as Exhibit 1. 1. This Allocation Agreement is intended to be a State -Subdivision Agreement as defined in Section I.VVV of the Global Settlement (the "Global Settlement"), which is Exhibit H of the Distributors Settlement. This Allocation Agreement shall be interpreted to be consistent with the requirements of a State -Subdivision Agreement in the Global Settlement. 2. This Allocation Agreement shall become effective only if all of the following occur: A. All Litigating Subdivisions in Washington and 90% of Non -Litigating Primary Subdivisions in Washington as the terms are used in Section II.C.1 of the Distributors Settlement must execute and return the Subdivision Settlement Participation Form, Exhibit F of the Distributors Settlement (the "Participation Form") by September 23, 2022. This form is also attached hereto as Exhibit 2. B. The Consent Judgment and Stipulation of Dismissal with Prejudice, Exhibit G of the Distributors Settlement, is filed and approved by the Court. C. The number of Local Governments that execute and return this Allocation Agreement satisfies the participation requirements for a State -Subdivision Agreement as specified in Exhibit 0 of the Global Settlement. 3. Requirements to become a Participating Local Government. To become a Participating Local Government that can participate in this Allocation Agreement, a Local Government must do all of the following: A. The Local Government must execute and return this Allocation Agreement. B. The Local Government must release their claims against the Settling Distributors and agree to by bound by the terms of the Distributors Settlement by timely executing and returning the Participation Form. This form is attached hereto as Exhibit 2. 1 131 C. Litigating Subdivisions must dismiss the Settling Distributors with prejudice from their lawsuits. The Litigating Subdivisions are listed on Exhibit B of the Distributors Settlement. D. The Local Government must execute and return the One Washington Memorandum of Understanding Between Washington Municipalities ("MOU") agreed to by the Participating Local Governments in Washington State, which is attached hereto as Exhibit 3. As specified in Paragraph 10.A of this Allocation Agreement, the Local Government may elect in its discretion to execute the MOU for purposes of this Allocation Agreement only. A Local Government that meets all of the conditions in this paragraph shall be deemed a "Participating Local Government." Alternatively, if the requirements of Paragraphs 2(A), 2(B), and 2(C) of this Allocation Agreement are satisfied and this Allocation Agreement becomes effective, then all Local Governments that comply with Paragraph 3(B) of this Allocation Agreement shall be deemed a "Participating Local Government." 4. This Allocation Agreement applies to the Washington Abatement Amount as defined in Section IV.A of the Distributors Settlement. The maximum possible Washington Abatement Amount for the Distributors Settlement is $430,249,769.02. As specified in the Global Settlement, the Washington Abatement Amount varies dependent on the percentage of Primary Subdivisions that choose to become Participating Local Governments and whether there are any Later Litigating Subdivisions as defined in Section I.EE of the Global Settlement. 5. This Allocation Agreement does not apply to the Washington Fees and Costs as defined in Section V of the Distributors Settlement. After satisfying its obligations to its outside counsel for attorneys' fees and costs, the State estimates that it will receive approximately $46 million for its own attorneys' fees and costs pursuant to Section V.B.1 of the Distributors Settlement. The State shall utilize any and all amounts it receives for its own attorneys' fees and costs pursuant to Section V.B.1 of the Distributors Settlement to provide statewide programs and services for Opioid Remediation as defined in Section I.SS of the Global Settlement. 6. While this Allocation Agreement does not apply to the Washington Fees and Costs as defined in Section V of the Distributors Settlement, Section V.B.2 of the Distributors Settlement estimates that the Settling Distributors shall pay $10,920,914.70 to Participating Litigating Subdivisions' attorneys for fees and costs. The actual amount may be greater or less. This Allocation Agreement and the MOU are a State Back -Stop Agreement. The total contingent fees an attorney receives from the Contingency Fee Fund pursuant to Section II. D in Exhibit R the Global Settlement, the MOU, and this Allocation Agreement combined cannot exceed 15% of the portion of the LG Share paid to the Litigating Local Government that retained that firm (i.e., if City X filed suit with outside counsel 2 132 on a contingency fee contract and City X receives $1,000,000 from the Distributors Settlement, then the maximum that the firm can receive is $150,000 for fees.) 7. No portion of the Washington Fees and Costs as defined in Section V of the Distributors Settlement and/or the State Share as defined in Paragraph 8.A of this Allocation Agreement shall be used to fund the Government Fee Fund ("GFF") referred to in Paragraph 10 of this Allocation Agreement and Section D of the MOU, or in any other way to fund any Participating Local Government's attorneys' fees, costs, or common benefit tax other than the aforementioned payment by the Settling Distributors to Participating Litigating Subdivisions' attorneys for fees and costs in Section V.B.2 of the Distributors Settlement. 8. The Washington Abatement Amount shall and must be used by the State and Participating Local Governments for Opioid Remediation as defined in Section I.SS of the Global Settlement, except as allowed by Section V of the Global Settlement. Exhibit 4 is a non -exhaustive list of expenditures that qualify as Opioid Remediation. Further, the Washington Abatement Amount shall and must be used by the State and Participating Local Governments as provided for in the Distributors Settlement. 9. The State and the Participating Local Governments agree to divide the Washington Abatement Amount as follows: A. Fifty percent (50%) to the State of Washington ("State Share"). B. Fifty percent (50%) to the Participating Local Governments ("LG Share"). 10. The LG Share shall be distributed pursuant to the MOU attached hereto as Exhibit 3 as amended and modified in this Allocation Agreement. 11. For purposes of this Allocation Agreement only, the MOU is modified as follows and any contrary provisions in the MOU are struck: A. The MOU is amended to add new Section E.6, which provides as follows: A Local Government may elect in its discretion to execute the MOU for purposes of this Allocation Agreement only. If a Local Governments executes the MOU for purposes of this Allocation Agreement only, then the MOU will only bind such Local Government and be effective with respect to this Allocation Agreement and the Distributors Settlement, and not any other Settlement as that term is defined in Section A.14 of the MOU. To execute the MOU for purposes of this Allocation Agreement only, the Local Government may either (a) check the applicable box on its signature page of this Allocation Agreement that is returned or (b) add language below its signature lines in the MOU that is returned indicating that the Local Government is executing or has 3 133 executed the MOU only for purposes of the Allocation Agreement Governing the Allocation of Funds Paid by the Settling Opioid Distributors in Washington State. B. Exhibit A of the MOU is replaced by Exhibit E of the Global Settlement, which is attached as Exhibit 4 to this Agreement. C. The definition of "Litigating Local Governments" in Section A.4 of the MOU shall mean Local Governments that filed suit against one or more of the Settling Defendants prior to May 3, 2022. The Litigating Local Governments are listed on Exhibit B of the Distributors Settlement, and are referred to as Litigating Subdivisions in the Distributors Settlement. D. The definition of "National Settlement Agreement" in Section A.6 of the MOU shall mean the Global Settlement. E. The definition of "Settlement" in Section A.14 of the MOU shall mean the Distributors Settlement. F. The MOU is amended to add new Section C.4.g.vii, which provides as follows: "If a Participating Local Government receiving a direct payment (a) uses Opioid Funds other than as provided for in the Distributors Settlement, (b) does not comply with conditions for receiving direct payments under the MOU, or (c) does not promptly submit necessary reporting and compliance information to its Regional Opioid Abatement Counsel ("Regional OAC") as defined at Section 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.iii of the MOU. In the event of a suspension, the Regional OAC shall give prompt notice to the suspended Participating Local Government and the Settlement Fund Administrator specifying the reasons for the suspension, the process for reinstatement, the factors that will be considered for reinstatement, and the due process that will be provided. A suspended Participating Local Government may apply to the Regional OAC to be reinstated for direct payments no earlier than five years after the suspension." G. Consistent with how attorney fee funds for outside counsel for Participating Local Subdivisions are being administered in most states across the country, the Government Fee Fund ("GFF") set forth in the 4 134 MOU shall be overseen by the MDL Fee Panel (David R. Cohen, Randi S. Ellis and Hon. David R. Herndon (ret.)). The Fee Panel will preside over allocation and disbursement of attorney's fees in a manner consistent with the Motion to Appoint the Fee Panel to Allocate and Disburse Attorney s Fees Provided for in State Back -Stop Agreements and the Order Appointing the Fee Panel to Allocate and Disburse Attorney's Fees Provided for in State Back -Stop Agreements, Case No. 1:17-md-02804- DAP Doc #: 4543 (June 17, 2022). H. The GFF set forth in the MOU shall be funded by the LG Share of the Washington Abatement Amount only. To the extent the common benefit tax is not already payable by the Settling Distributors as contemplated by Section D.8 of the MOU, the GFF shall be used to pay Litigating Local Government contingency fee agreements and any common benefit tax referred to in Section D of the MOU, which shall be paid on a pro rata basis to eligible law firms as determined by the Fee Panel. To fund the GFF, fifteen percent (15%) of the LG Share shall be deposited in the GFF from each LG Share settlement payment until the Litigating Subdivisions contingency fee agreements and common benefit tax (if any) referred to in Section D of the MOU are satisfied. Under no circumstances will any Non -Litigating Primary Subdivision_or Litigating Local Government be required to contribute to the GFF more than 15% of the portion of the LG Share allocated to such Non -Litigating Primary Subdivision or Litigating Local Government. In addition, under no circumstances will any portion of the LG Share allocated to a Litigating Local Government be used to pay the contingency fees or litigation expenses of counsel for some other Litigating Local Government. J. The maximum amount of any Litigating Local Government contingency fee agreement (from the Contingency Fee Fund pursuant to Section II. D in Exhibit R the Global Settlement) payable to a law firm permitted for compensation shall be fifteen percent (15%) of the portion of the LG Share paid to the Litigating Local Government that retained that firm (i.e., if City X filed suit with outside counsel on a contingency fee contract and City X receives $1,000,000 from the Distributors Settlement, then the maximum that the firm can receive is $150,000 for fees.) The firms also shall be paid documented expenses due under their contingency fee agreements that have been paid by the law firm attributable to that Litigating Local Government. Consistent with the Distributors Settlement and Exhibit R of the Global Settlement, amounts due to Participating Litigating Subdivisions' attorneys under this Allocation Agreement shall not impact (i) costs paid by the subdivisions to their attorneys pursuant to a State Back -Stop agreement, (ii) fees paid to subdivision attorneys from the Common Benefit Fund for common benefit work performed by the attorneys pursuant to Section II.0 of Exhibit R of the Global Settlement, or (iii) costs paid to subdivision attorneys from the MDL Expense Fund 5 135 for expenses incurred by the attorneys pursuant to Section ILE of the Global Settlement. K. Under no circumstances may counsel receive more for its work on behalf of a Litigating Local Government than it would under its contingency agreement with that Litigating Local Government. To the extent a law firm was retained by a Litigating Local Government on a contingency fee agreement that provides for compensation at a rate that is less than fifteen percent (15%) of that Litigating Local Government's recovery, the maximum amount payable to that law firm referred to in Section D.3 of the MOU shall be the percentage set forth in that contingency fee agreement. L. For the avoidance of doubt, both payments from the GFF and the payment to the Participating Litigating Local Governments' attorneys for fees and costs referred to in Paragraph 6 of this Allocation Agreement and Section V.B.2 Distributors Settlement shall be included when calculating whether the aforementioned fifteen percent (15%) maximum percentage (or less if the provisions of Paragraph 10.K of this Allocation Agreement apply) of any Litigating Local Government contingency fee agreement referred to above has been met. M. To the extent there are any excess funds in the GFF, the Fee Panel and the Settlement Administrator shall facilitate the return of those funds to the Participating Local Governments as provided for in Section D.6 of the MOU. 12. In connection with the execution and administration of this Allocation Agreement, the State and the Participating Local Governments agree to abide by the Public Records Act, RCW 42.56 eq seq. 13. All Participating Local Governments, Regional OACs, and the State shall maintain all non -transitory records related to this Allocation Agreement as well as the receipt and expenditure of the funds from the Distributors Settlement for no less than five (5) years. 14. If any party to this Allocation Agreement believes that a Participating Local Government, Regional OAC, the State, an entity, or individual involved in the receipt, distribution, or administration of the funds from the Distributors Settlement has violated any applicable ethics codes or rules, a complaint shall be lodged with the appropriate forum for handling such matters, with a copy of the complaint promptly sent to the Washington Attorney General, Complex Litigation Division, Division Chief, 800 Fifth Avenue, Suite 2000, Seattle, Washington 98104. 15. To the extent (i) a region utilizes a pre-existing regional body to establish its Opioid Abatement Council pursuant to the Section 4.h of the MOU, and (ii) that 6 136 pre-existing regional body is subject to the requirements of the Community Behavioral Health Services Act, RCW 71.24 et seq., the State and the Participating Local Governments agree that the Opioid Funds paid by the Settling Distributors are subject to the requirements of the MOU and this Allocation Agreement. 16. Upon request by the Settling Distributors, the Participating Local Governments must comply with the Tax Cooperation and Reporting provisions of the Distributors Settlement and the Global Settlement. 17. Venue for any legal action related to this Allocation Agreement (separate and apart from the MOU, the Distributors Settlement, or the Global Settlement) shall be in King County, Washington. 18. Each party represents that all procedures necessary to authorize such party's execution of this Allocation Agreement have been performed and that such person signing for such party has been authorized to execute this Allocation Agreement. 7 137 FOR THE STATE OF WASHINGTON: ROBERT W. FERGUSON Attorney General JEFFREY G. RUPERT Division Chief Date: 138 FOR THE PARTICIPATING LOCAL GOVERNMENT: Name of Participating Local Government: Authorized signature: Name: Title: Date: A Local Government may elect in its discretion to execute the MOU for purposes of this Allocation Agreement only by checking this box (see Paragraph 10.A of this Allocation Agreement): ❑ Local Government is executing the MOU in the form attached hereto as Exhibit 3, but which is further amended and modified as set forth in this Allocation Agreement, only for purposes of this Allocation Agreement. 9 139 140 EXHIBIT 1 Distributors Settlement 141 DISTRIBUTORS WASHINGTON SETTLEMENT AGREEMENT 142 Table of Contents I. Overview 1 II. Conditions to Effectiveness of Agreement 1 III. Participation by Subdivisions 3 IV. Settlement Payments 3 V. Plaintiffs' Attorneys' Fees and Costs 4 VI. Release 6 VII. Miscellaneous 6 Exhibit A Primary Subdivisions A-1 Exhibit B Litigating Subdivisions B-1 Exhibit C ABC IRS Form 1098-F C-1 Exhibit D Cardinal Health IRS Form 1098-F D-1 Exhibit E McKesson IRS Form 1098-F E-1 Exhibit F Subdivision Settlement Participation Form F-1 Exhibit G Consent Judgment and Stipulation of Dismissal with Prejudice G-1 Exhibit H Distributor Global Settlement Agreement H-1 143 DISTRIBUTORS — WASHINGTON SETTLEMENT AGREEMENT I. Overview This Distributors Washington Settlement Agreement ("Agreement") sets forth the terms and conditions of a settlement agreement between and among the State of Washington, McKesson Corporation ("McKesson"), Cardinal Health, Inc. ("Cardinal") and AmerisourceBergen Corporation ("Amerisource") (collectively, the "Agreement Parties") to resolve opioid -related Claims against McKesson, Cardinal, and/or Amerisource (collectively, "Settling Distributors"). By entering into this Agreement, the State of Washington and its Participating Subdivisions agree to be bound by all terms and conditions of the Distributor Global Settlement Agreement dated July 21, 2021 (including its exhibits) ("Global Settlement"), which (including its exhibits) is incorporated into this Agreement as Exhibit H.1 By entering this Agreement, and upon execution of an Agreement Regarding the State of Washington and the Distributor Global Settlement Agreement ("Enforcement Committee Agreement"), unless otherwise set forth in this Agreement, the Settling Distributors agree to treat the State of Washington for all purposes as if it were a Settling State under the Global Settlement and its Participating Subdivisions for all purposes as if they were Participating Subdivisions under the Global Settlement. Unless stated otherwise in this Agreement, the terms of this Agreement are intended to be consistent with the terms of the Global Settlement and shall be construed accordingly. Unless otherwise defined in this Agreement, all capitalized terms in this Agreement shall be defined as they are in the Global Settlement. The Settling Distributors have agreed to the below terms for the sole purpose of settlement, and nothing herein, including in any exhibit to this Agreement, may be taken as or construed to be an admission or concession of any violation of law, rule, or regulation, or of any other matter of fact or law, or of any liability or wrongdoing, or any misfeasance, nonfeasance, or malfeasance, all of which the Settling Distributors expressly deny. No part of this Agreement, including its statements and commitments, and its exhibits, shall constitute or be used as evidence of any liability, fault, or wrongdoing by the Settling Distributors. Unless the contrary is expressly stated, this Agreement is not intended for use by any third party for any purpose, including submission to any court for any purpose. II. Conditions to Effectiveness of Agreement A. Global Settlement Conditions to Effectiveness. 1. The Agreement Parties acknowledge that certain deadlines set forth in Section VIII of the Global Settlement passed before the execution of this Agreement. For 1 The version of the Global Settlement as updated on March 25, 2022 is attached to this Agreement as Exhibit H. Further updates to the Global Settlement shall be deemed incorporated into this Agreement and shall supersede all earlier versions of the updated provisions. 1 144 that reason, (i) Settling Distributors agree to treat the State of Washington as satisfying the deadlines set forth in Section VIII of the Global Settlement provided that the State of Washington satisfies its obligations set forth in this Section II and (ii) the State of Washington agrees to treat Settling Distributors as having satisfied all notice obligations under Section VIII.B of the Global Settlement as to the State of Washington. 2. The State of Washington shall deliver all signatures and releases required by the Agreement to be provided by the Settling States to the Settling Distributors by September 30, 2022. This Section II.A.2 supersedes the deadline for delivering those signatures and releases set forth in Section VIII.A.1 of the Global Settlement. B. Agreement with Enforcement Committee. This Agreement shall not become effective unless the Enforcement Committee and the Settling Distributors execute the Enforcement Committee Agreement. If the Enforcement Committee Agreement is not executed by June 1, 2022, the State of Washington and Settling Distributors will promptly negotiate an agreement that mirrors the Global Settlement to the extent possible and with a credit of $1,000,000 to Settling Distributors to account for possible credits the Settling Distributors would have received under Section V of this Agreement from the State Cost Fund and the Litigating Subdivision Cost Fund of the Global Settlement and to be deducted from the Year 7 payment described in Section V.B.1 and Section V.C.g of this Agreement. C. Participation by Subdivisions. If the condition in Section II.B has been satisfied, this Agreement shall become effective upon one of the following conditions being satisfied: 1. All Litigating Subdivisions in the State of Washington and ninety percent (90%) of Non -Litigating Primary Subdivisions (calculated by population pursuant to the Global Settlement) in the State of Washington must become Participating Subdivisions by September 23, 2022. 2. If the condition set forth in Section II.C.1 is not met, the Settling Distributors shall have sole discretion to accept the terms of this Agreement, which shall become effective upon notice provided by the Settling Distributors to the State of Washington. If the condition set forth by Section II.C.1 is not met and Settling Distributors do not exercise discretion to accept this Agreement, this Agreement will have no further effect and all releases and other commitments or obligations contained herein will be void. D. Dismissal of Claims. Provided that the conditions in Sections II.B and II.0 have been satisfied, the State of Washington shall file the Consent Judgment described in Section I.N of the Global Settlement and attached hereto as Exhibit G ("Washington Consent Judgment") with the King County Superior Court ("Washington Consent Judgment Court") on or before November 1, 2022. This Section II.C.2 supersedes the deadline for submitting a Consent Judgment set forth in Section VIII.B of the Global Settlement. In the event that the Court declines to enter the Washington Consent Judgment, each Settling Distributor shall be entitled to terminate the Agreement as to itself and shall be excused from all obligations under the Agreement, and if a Settling Distributor terminates the Agreement as to itself, all releases and other commitments or obligations contained herein with respect to that Settling Distributor will be null and void. The date of the entry of the Washington Consent Judgment shall be the effective date of this Agreement 2 145 ("Washington Effective Date"). Within the later of forty-five (45) days after the Washington Effective Date or December 31, 2022, each Settling Distributor will certify to the State that all medical claims data provided to it during the litigation (including Medicaid, PMP, LNI claims, and PEBB data) has been destroyed by the party and its agents, including all retained experts. III. Participation by Subdivisions A. Notice. The Office of the State of Washington Attorney General in consultation with the Settling Distributors shall send individual notice of the opportunity to participate in this Agreement and the requirements for participation to all Subdivisions eligible to participate who have not returned an executed Subdivision Settlement Participation Form within fifteen (15) days of the execution of this Agreement. The Office of the State of Washington Attorney General may also provide general notice reasonably calculated to alert Subdivisions, including publication and other standard forms of notification. Nothing contained herein shall preclude the State of Washington from providing further notice to, or from contacting any of its Subdivision(s) about, becoming a Participating Subdivision. B. Trigger Date for Later Litigating Subdivisions. Notwithstanding Sections I.EE and I.GGGG of the Global Settlement, as to the State of Washington, Settling Distributors and the State of Washington agree to treat the Trigger Date for Primary Subdivisions as September 23, 2022 and the Trigger Date for all other Subdivisions as May 3, 2022. C. Initial and Later Participating Subdivisions. Notwithstanding Sections I.BB, I.CC, I.FF and Section VII.D and E of the Global Settlement, any Participating Subdivision in Washington that meets the applicable requirements for becoming a Participating Subdivision set forth in Section VII.B or Section VII.0 of the Global Settlement on or before September 23, 2022 shall be considered an Initial Participating Subdivision. Participating Subdivisions that are not Initial Participating Subdivisions but meet the applicable requirements for becoming Participating Subdivisions set forth in Section VII.B or Section VII.0 of the Global Settlement after September 23, 2022 shall be considered Later Participating Subdivisions. D. Subdivision Settlement Participation Forms. Each Subdivision Settlement Participation Form submitted by a Participating Subdivision from the State of Washington shall be materially identical to Exhibit F to this Agreement. Nothing in Exhibit F is intended to modify in any way either the terms of this Agreement or the terms of the Global Settlement, both of which the State of Washington and Participating Subdivisions agree to be bound. To the extent that any Subdivision Settlement Participation Form submitted by any Participating Subdivision is worded differently from Exhibit F to this Agreement or interpreted differently from the Global Agreement and this Agreement in any respect, the Global Agreement and this Agreement control. IV. Settlement Payments A. Schedule. Annual Payments under this Agreement shall be calculated as if the State of Washington were a Settling State under the Global Settlement and shall be made pursuant to the terms of Section IV of the Global Settlement except that, as to the State of Washington, the Payment Date for Payment Year 1 shall be December 1, 2022 and the Payment Date for Payment 3 146 Year 2 shall be December 1, 2022. For the avoidance of doubt, the sole component of the State of Washington's Annual Payment is the portion of the Net Abatement Amount allocated to the State of Washington under the Global Settlement ("Washington Abatement Amount"). The maximum possible Washington Abatement Amount is $430,249,769.02. B. Use of Payment. The Washington Abatement Amount paid under this Agreement shall be used as provided for in Section V of the Global Settlement. C. Nature of Payment. The State of Washington and its Participating Subdivisions agree that payments made to the State of Washington and its Participating Subdivisions under this Agreement are properly characterized as described in Section V.F of the Global Settlement. V. Plaintiffs' Attorneys' Fees and Costs A. Interaction with Global Settlement. Notwithstanding any contrary provision in the Global Settlement, payments to cover attorneys' fees and costs under this Agreement ("Washington Fees and Costs") shall be made pursuant to this Section V. B. Amounts. The total amount to cover of all Washington Fees and Costs is $87,750,230.98. That total consists of the categories of attorneys' fees and costs set forth in this Section V.B and shall be paid on the schedule set forth in Section V.C. 1. State Outside and Inside Counsel Fees and Costs. Settling Distributors shall pay $76,829,316.21 to cover in-house fees and costs and outside counsel fees and costs to the Washington Attorney General's Office, which shall be used for any lawful purpose in the discharge of the Attorney General's duties at the sole discretion of the Attorney General. The amount shall be paid in increments as specified in Section V.0 (Payment Year 1 — 20%, Payment Year 2 — 20%, Payment Year 3 — 15%, Payment Year 4 — 15%, Payment Year 5 — 15%, Payment Year 6 — 10%, Payment Year 7— 5%.) 2. Fees and Costs for Participating Litigating Subdivisions' Attorneys. Settling Distributors shall pay $10,920,914.70 to Participating Litigating Subdivisions' attorneys for fees and costs into a single account as directed by the Washington Attorney General's Office, which then shall be paid as agreed between the State of Washington and attorneys for Participating Litigating Subdivisions. Participating Litigating Subdivisions' attorneys shall be paid in accordance with the schedule in Section V.0 and V.D.5 of this Agreement. C. Schedule. Washington Fees and Costs shall be paid according to the following schedule: a. Payment Year 1: Twenty percent (20%) of the total Washington Fees and Costs amount ($17,550,046.20), to be paid on or before December 1, 2022. 4 147 b. Payment Year 2: Twenty percent (20%) of the total Washington Fees and Costs amount ($17,550,046.20), to be paid on or before December 1, 2022. c. Payment Year 3: Fifteen percent (15%) of the total Washington Fees and Costs amount ($13,162,534.65), to be paid on or before July 15, 2023. d. Payment Year 4: Fifteen percent (15%) of the total Washington Fees and Costs amount ($13,162,534.65), to be paid on or before July 15, 2024. e. Payment Year 5: Fifteen percent (15%) of the total Washington Fees and Costs amount ($13,162,534.65), to be paid on or before July 15, 2025. f. Payment Year 6: Ten percent (10%) of the total Washington Fees and Costs amount ($8,775,023.10), to be paid on or before July 15, 2026. g. Payment Year 7: Five percent (5%) of the total Washington Fees and Costs amount ($4,387,511.55), to be paid on or before July 15, 2027. D. Remittance. So that Settling Distributors do not pay the same fees and costs under both the Global Settlement and this Agreement, Washington and its Participating Litigating Subdivisions and their respective counsel shall do as follows: 1. Participating Litigating Subdivisions in Washington and their counsel shall apply to the Attorney Fee Fund and the Litigating Subdivision Cost Fund created pursuant to Exhibit R of the Global Settlement for all fees, costs and expenses for which they may be eligible and shall instruct the Fee Panel and the Cost and Expense Fund Administrator to remit to Settling Distributors the full amount awarded to such Participating Litigating Subdivision, with each Settling Distributor receiving the percentage of that amount corresponding to the allocation set forth in Section IV.I of the Global Settlement. 2. Counsel for Participating Subdivisions shall instruct the Fee Panel created by the MDL Court pursuant to Exhibit R of the Global Settlement to remit to Settling Distributors the Contingency Fee Amount for their Participating Subdivisions in the State of Washington, with each Settling Distributor receiving the percentage of that amount corresponding to the allocation set forth in Section IV.I of the Global Settlement. 3. The State of Washington shall instruct the Fee Fund Administrator selected pursuant to Exhibit S of the Global Settlement that the Settling Distributors shall not pay the Fixed Amount for the State of Washington, and the State of Washington will not be eligible to receive funds from the State Outside Counsel Fee Fund under the Global Settlement. 4. The State of Washington shall submit documented costs, as provided for in Exhibit T of the Global Settlement, to the Global Settlement State Cost Fund created pursuant to Exhibit T of the Global Settlement for all costs and expenses for which it may be eligible and shall instruct the State Cost Fund Administrator to remit to Settling Distributors the full amount awarded to the State of Washington, with each Settling 5 148 Distributor receiving the percentage of that amount corresponding to the allocation set forth in Section IV.I of the Global Settlement. 5. No Participating Litigating Subdivision shall receive any payment due under this Agreement, including but not limited to the portion of the Washington Abatement Amount allocable to the Participating Subdivision, until it and/or its outside counsel, as applicable, fulfill their obligations under Sections V.D. 1-2. VI. Release A. Scope. As of the Washington Effective Date, Section XI of the Global Settlement is fully binding on, and effective with respect to, all Releasors under this Agreement. Accordingly, as of the Washington Effective Date, the Released Entities are hereby released and forever discharged from all Released Claims of Releasors, including the State of Washington and its Participating Subdivisions. VII. Miscellaneous A. No Admission. The Settling Distributors do not admit liability, fault, or wrongdoing. Neither this Agreement nor the Washington Consent Judgment shall be considered, construed or represented to be (1) an admission, concession or evidence of liability or wrongdoing or (2) a waiver or any limitation of any defense otherwise available to the Settling Distributors. It is the understanding and intent of the Agreement Parties that no portion of the Agreement shall be entered into evidence in any other action against the Settling Distributors, among other reasons, because it is not relevant to such action. For the avoidance of any doubt, nothing herein shall prohibit a Settling Distributor from entering this Agreement into evidence in any litigation or arbitration concerning a Settling Distributor's right to coverage under an insurance contract. B. Tax Cooperation and Reporting. The State of Washington and its Participating Subdivisions will be bound by Section V.F and Section XIV.F of the Global Settlement, except (i) as set forth in the final sentence of this Section VII.B and (ii) that the State of Washington shall be its own Designated State and shall designate its own "appropriate official" within the meaning of Treasury Regulations Section 1.6050X-1(f)(1)(ii)(B) (the "Appropriate Official"). The IRS Forms 1098-F to be filed with respect to this Agreement are attached as Exhibit C, Exhibit D, and Exhibit E. The State of Washington and its Participating Subdivisions agree that any return, amended return, or written statement filed or provided pursuant to Section XIV.F.4 of the Global Settlement with respect to this Agreement, and any similar document, shall be prepared and filed in a manner consistent with reporting each Settling Distributor's portion of the aggregate amount of payments paid or incurred by the Settling Distributors hereunder as the "Total amount to be paid" pursuant to this Agreement in Box 1 of IRS Form 1098-F, each Settling Distributor's portion of the amount equal to the aggregate amount of payments paid or incurred by the Settling Distributors hereunder less the Compensatory Restitution Amount as the "Amount to be paid for violation or potential violation" in Box 2 of IRS Form 1098-F and each Settling Distributor's portion of the Compensatory Restitution Amount as "Restitution/remediation amount" in Box 3 of IRS Form 1098-F, as reflected in Exhibit C, Exhibit D, and Exhibit E. 6 149 C. No Third -Party Beneficiaries. Except as expressly provided in this Agreement, no portion of this Agreement shall provide any rights to, or be enforceable by, any person or entity that is not the State of Washington or a Released Entity. The State of Washington may not assign or otherwise convey any right to enforce any provision of this Agreement. D. Cooperation. Each Agreement Party and each Participating Subdivision agrees to use its best efforts and to cooperate with the other Agreement Parties and Participating Subdivisions to cause this Agreement to become effective, to obtain all necessary approvals, consents and authorizations, if any, and to execute all documents and to take such other action as may be appropriate in connection herewith. Consistent with the foregoing, each Agreement Party and each Participating Subdivision agrees that it will not directly or indirectly assist or encourage any challenge to this Agreement or the Washington Consent Judgment by any other person, and will support the integrity and enforcement of the terms of this Agreement and the Washington Consent Judgment. E. Enforcement. All disputes between Settling Distributors and the State of Washington and/or the Participating Subdivisions in the State of Washington shall be handled as specified in Section VI of the Global Settlement, including the referral of relevant disputes to the National Arbitration Panel. F. No Violations of Applicable Law. Nothing in this Agreement shall be construed to authorize or require any action by Settling Distributors in violation of applicable federal, state, or other laws. G. Modification. This Agreement may be modified by a written agreement of the Agreement Parties. For purposes of modifying this Agreement or the Washington Consent Judgment, Settling Distributors may contact the Washington Attorney General for purposes of coordinating this process. The dates and deadlines in this Agreement may be extended by written agreement of the Agreement Parties, which consent shall not be unreasonably withheld. H. No Waiver. Any failure by any Agreement Party to insist upon the strict performance by any other party of any of the provisions of this Agreement shall not be deemed a waiver of any of the provisions of this Agreement, and such party, notwithstanding such failure, shall have the right thereafter to insist upon the specific performance of any and all of the provisions of this Agreement. I. Entire Agreement. This Agreement, including the Global Settlement (and its exhibits), represents the full and complete terms of the settlement entered into by the Agreement Parties, except as provided herein. In any action undertaken by the Agreement Parties, no prior versions of this Agreement and no prior versions of any of its terms may be introduced for any purpose whatsoever. J. Counterparts. This Agreement may be executed in counterparts, and a facsimile or .pdf signature shall be deemed to be, and shall have the same force and effect as, an original signature. K. Notice. All notices or other communications under this Agreement shall be provided to the following via email and overnight delivery to: 7 150 Copy to AmerisourceBergen Corporation's attorneys at: Michael T. Reynolds Cravath, Swaine & Moore LLP 825 8th Avenue New York, NY 10019 mreynolds@cravath.com Copy to Cardinal Health, Inc. 's attorneys at: Elaine Golin Wachtell, Lipton, Rosen & Katz 51 West 52nd Street New York, NY 10019 epgolin@wlrk.com Copy to McKesson Corporation's attorneys at: Thomas J. Perrelli Jenner & Block LLP 1099 New York Avenue, NW, Suite 900 Washington, DC 20001-4412 TPerrelli@jenner.com Copy to the State of Washington at: Shane Esquibel Jeffrey Rupert Laura Clinton Washington Attorney General's Office 1125 Washington Street SE PO Box 40100 Olympia, WA 98504-0100 Shane.Esquibel@atg.wa.gov Jeffrey.Rupert@atg.wa.gov Laura.Clinton@atg.wa.gov [Signatures begin on next page.] 8 151 Authorized and agreed to by: Dated: 152 ROBERT W. FERGUSON Attorney General, State . ngton By. Name: JEF RUPERT Title: Division Chief 9 Authorized and agreed to by: Dated: May 2, 2022 AMERISOURCEBERGEN CORPORATION e 6 By: Elizabeth Campbell Executive Vice President and Chief Legal Officer 153 Authorized and agreed to by: Dated: 04/29/2022 CARDINAL HEALTH, INC. By: Name: Jessica Mayer Title: Chief Legal and Compliance Officer 154 Authorized and agreed to by: Dated: 45124 ZZ MCKESSON CORPORATION By: Name: SC rat il-JOV C- Ora U Title: Urcioesrak Se of 155 Exhibit A Primary Subdivisions2 No. Subdivision Name 1. Aberdeen city 2. Adams County 3. Anacortes City 4. Arlington City 5. Asotin County 6. Auburn City* 7. Bainbridge Island City 8. Battle Ground City 9. Bellevue City* 10. Bellingham City* 11. Benton County* 12. Bonney Lake City 13. Bothell City* 14. Bremerton City* 15. Burien City* 16. Camas City 17. Centralia City 18. Chelan County* 19. Cheney City 20. Clallam County* 21. Clark County* 22. Covington City 23. Cowlitz County* 24. Des Moines City* 25. Douglas County* 26. East Wenatchee City 27. Edgewood City 28. Edmonds City* 29. Ellensburg City 30. Enumclaw City 31. Everett City* 32. Federal Way City* 33. Ferndale City 34. Fife City 35. Franklin County* 36. Gig Harbor City 37. Grandview City 38. Grant County* 2 Entities denoted with an asterisk (*) indicate a population of greater than 30,000 for purposes of the definition of Primary Subdivision as it relates to Incentive Payment C. A-1 156 39. Grays Harbor County* 40. Island County* 41. Issaquah City* 42. Jefferson County* 43. Kelso City 44. Kenmore City 45. Kennewick City* 46. Kent City* 47. King County* 48. Kirkland City* 49. Kitsap County* 50. Kittitas County* 51. Klickitat County 52. Lacey City* 53. Lake Forest Park City 54. Lake Stevens City* 55. Lakewood City* 56. Lewis County* 57. Liberty Lake City 58. Lincoln County 59. Longview City* 60. Lynden City 61. Lynnwood City* 62. Maple Valley City 63. Marysville City* 64. Mason County* 65. Mercer Island City 66. Mill Creek City 67. Monroe City 68. Moses Lake City 69. Mount Vernon City* 70. Mountlake Terrace City 71. Mukilteo City 72. Newcastle City 73. Oak Harbor City 74. Okanogan County* 75. Olympia City* 76. Pacific County 77. Pasco City* 78. Pend Oreille County 79. Pierce County* 80. Port Angeles City 81. Port Orchard City 82. Poulsbo City 83. Pullman City* 84. Puyallup City* A-2 157 85. Redmond City* 86. Renton City* 87. Richland City* 88. Sammamish City* 89. San Juan County 90. Seatac City 91. Seattle City* 92. Sedro-Woolley City 93. Shelton City 94. Shoreline City* 95. Skagit County* 96. Skamania County 97. Snohomish City 98. Snohomish County* 99. Snoqualmie City 100. Spokane City* 101. Spokane County* 102. Spokane Valley City* 103. Stevens County* 104. Sumner City 105. Sunnyside City 106. Tacoma City* 107. Thurston County* 108. Tukwila City 109. Tumwater City 110. University Place City* 111. Vancouver City* 112. Walla Walla City* 113. Walla Walla County* 114. Washougal City 115. Wenatchee City* 116. West Richland City 117. Whatcom County* 118. Whitman County* 119. Woodinville City 120. Yakima City* 121. Yakima County* 158 Exhibit B Litigating Subdivisions No. Subdivision Name 1. Anacortes City 2. Bainbridge Island City 3. Burlington City 4. Chelan County 5. Clallam County 6. Clark County 7. Everett City 8. Franklin County 9. Island County 10. Jefferson County 11. Kent City 12. King County 13. Kirkland City 14. Kitsap County 15. Kittitas County 16. La Conner School District 17. Lakewood City 18. Lewis County 19. Lincoln County 20. Mount Vernon City 21. Mount Vernon School District 22. Olympia City 23. Pierce County 24. San Juan County 25. Seattle City 26. Sedro-Woolley City 27. Sedro-Woolley School District 28. Skagit County 29. Snohomish County 30. Spokane City 31. Spokane County 32. Tacoma City 33. Thurston County 34. Vancouver City 35. Walla Walla County 36. Whatcom County 37. Whitman County B-1 159 Exhibit C ABC IRS Form 1098-F This Exhibit C will be appended to the Agreement prior to the Effective Date pursuant to Section VII.B. C-1 160 Exhibit D Cardinal Health IRS Form 1098-F This Exhibit D will be appended to the Agreement prior to the Effective Date pursuant to Section VII.B. D-1 161 Exhibit E McKesson IRS Form 1098-F This Exhibit E will be appended to the Agreement prior to the Effective Date pursuant to Section VII.B. E- 1 162 Exhibit F Subdivision Settlement Participation 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 May 2, 2022 ("Distributors Washington Settlement"), and acting through the undersigned authorized official, hereby elects to participate in the Distributors Washington Settlement, release all Released Claims against all Released Entities, and agrees as follows. 1. The Governmental Entity is aware of and has reviewed the Distributors Washington Settlement, including the Distributor Global Settlement Agreement dated July 21, 2021 ("Global Settlement") attached to the Distributors Washington Settlement as Exhibit H, understands that all terms in this Participation Form have the meanings defined therein, and agrees that by signing this Participation Form, the Governmental Entity elects to participate in the Distributors Washington Settlement and become a Participating Subdivision as provided therein. 2. The Governmental Entity shall, within 14 days of October 1, 2022 and prior to the filing of the Consent Judgment, secure the dismissal with prejudice of any Released Claims that it has filed. 4. The Governmental Entity agrees to the terms of the Distributors Washington Settlement pertaining to Subdivisions as defined therein. 5. By agreeing to the terms of the Distributors Washington Settlement and becoming a Releasor, the Governmental Entity is entitled to the benefits provided therein, including, if applicable, monetary payments beginning after December 1, 2022. 6. The Governmental Entity agrees to use any monies it receives through the Distributors Washington Settlement solely for the purposes provided therein. 7. The Governmental Entity submits to the jurisdiction of the Washington Consent Judgment Court for purposes limited to that court's role as provided in, and for resolving disputes to the extent provided in, the Distributors Washington Settlement. The Governmental Entity likewise agrees to arbitrate before the National Arbitration Panel as provided in, and for resolving disputes to the extent otherwise provided in the Distributors Washington Settlement. F-1 163 8. The Governmental Entity has the right to enforce the Distributors Washington Settlement as provided therein. 9. The Governmental Entity, as a Participating Subdivision, hereby becomes a Releasor for all purposes in the Distributors Washington Settlement, including, but not limited to, all provisions of Section XI of the Global Settlement, 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 Distributors Washington Settlement are intended by the Agreement 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 Distributors Washington Settlement shall be a complete bar to any Released Claim. 10. The Governmental Entity hereby takes on all rights and obligations of a Participating Subdivision as set forth in the Distributors Washington Settlement. 11. In connection with the releases provided for in the Distributors Washington 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, and that if known by him or her would have materially affected his or her settlement with the debtor or released party. A Releasor may hereafter discover facts other than or different from those which it knows, believes, or assumes to be true with respect to the Released Claims, but each Governmental Entity hereby expressly waives and fully, finally, and forever settles, releases and discharges, upon the date the Distributors Washington Settlement becomes effective pursuant to Section II.B of the Distributors Washington Settlement, 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 Distributors Washington Settlement. F-2 164 12. Nothing herein is intended to modify in any way the terms of the Distributors Washington Settlement, to which Governmental Entity hereby agrees. To the extent this Participation Form is worded differently from Exhibit F to the Distributors Washington Settlement or interpreted differently from the Distributors Washington Settlement in any respect, the Distributors Washington Settlement controls. I have all necessary power and authorization to execute this Participation Form on behalf of the Governmental Entity. Signature: Name: Title: Date: F-3 165 Exhibit G Consent Judgment and Stipulation of Dismissal with Prejudice The Honorable Michael Ramsey Scott Trial Date: November 15, 2021 STATE OF WASHINGTON KING COUNTY SUPERIOR COURT STATE OF WASHINGTON, Plaintiff, v. MCKESSON CORPORATION, CARDINAL HEALTH INC., and AMERISOURCEBERGEN DRUG CORPORATION, Defendants. NO. 19-2-06975-9 SEA FINAL CONSENT JUDGMENT AND DISMISSAL WITH PREJUDICE FINAL CONSENT JUDGMENT AND DISMISSAL WITH PREJUDICE The State of Washington ("State") and McKesson Corporation, Cardinal Health, Inc., AmerisourceBergen Drug Corporation and AmerisourceBergen Corporation, together with the subsidiaries thereof (collectively, the "Settling Distributors," and each a "Settling Distributor") (together with the State, the "Parties," and each a "Party") have entered into a consensual resolution of the above -captioned litigation (the "Action") pursuant to a settlement agreement entitled Distributors Washington Settlement Agreement, dated as of May 2, 2022 (the "Washington Agreement"), a copy of which is attached hereto as Exhibit A. The Washington Agreement shall become effective by its terms upon the entry of this Final Consent Judgment (the "Judgment") by the Court without adjudication of any contested issue of fact or law, and without finding or admission of wrongdoing or liability of any kind. By entering into the Washington Agreement, the State of Washington agrees to be bound by all terms and conditions G-1 166 of the Distributor Settlement Agreement, dated as of July 21, 2021 (as subsequently updated) (the "Global Agreement"), a copy of which is attached hereto as Exhibit B (together with the Washington Agreement, the "Agreements") unless stated otherwise in the Washington Agreement. Unless stated otherwise in the Washington Agreement, the terms of the Washington Agreement are intended to be consistent with the terms of the Global Settlement and shall be construed accordingly. I. RECITALS: 1. Each Party warrants and represents that it engaged in arm's-length negotiations in good faith. In hereby executing the Agreements, the Parties intend to effect a good -faith settlement. 2. The State has determined that the Agreements are in the public interest. 3. The Settling Distributors deny the allegations against them and that they have any liability whatsoever to the State, its Subdivisions, and/or (a) any of the State's or Subdivisions' departments, agencies, divisions, boards, commissions, districts, instrumentalities of any kind and attorneys, including its Attorney General, and any person in his or her official capacity whether elected or appointed to serve any of the foregoing and any agency, person, or other entity claiming by or through any of the foregoing, (b) any public entities, public instrumentalities, public educational institutions, unincorporated districts, fire districts, irrigation districts, and other Special Districts, and (c) any person or entity acting in a parens patriae, sovereign, quasi - sovereign, private attorney general, qui tam, taxpayer, or other capacity seeking relief on behalf of or generally applicable to the general public. 4. The Parties recognize that the outcome of the Action is uncertain and a final resolution through the adversarial process likely will require protracted litigation. 5. The Parties agree to the entry of the injunctive relief terms pursuant to Exhibit P of the Global Agreement. 6. Therefore, without any admission of liability or wrongdoing by the Settling Distributors or any other Released Entities (as defined in the Global Agreement), the Parties now mutually consent to the entry of this Judgment and agree to dismissal of the claims with prejudice pursuant G-2 167 to the terms of the Agreements to avoid the delay, expense, inconvenience, and uncertainty of protracted litigation. NOW THEREFORE, IT IS HEREBY ORDERED, ADJUDGED AND DECREED THAT: In consideration of the mutual promises, terms, and conditions set forth in the Agreements, the adequacy of which is hereby acknowledged by all Parties, it is agreed by and between the Settling Distributors and the State, and adjudicated by the Court, as follows: 1. The foregoing Recitals are incorporated herein and constitute an express term of this Judgment. 2. The Parties have entered into a full and final settlement of all Released Claims of Releasors against the Settling Distributors (including but not limited to the State) and the Released Entities pursuant to the terms and conditions set forth in the Agreements. 3. The "Definitions" set forth in Section I of the Global Agreement are incorporated by reference into this Judgment. The State is a "Settling State" within the meaning of the Global Agreement. Unless otherwise defined herein, capitalized terms in this Judgment shall have the same meaning given to them in the Global Agreement, or, if not defined in the Global Agreement, the same meaning given to them in the Washington Agreement. 4. The Parties agree that the Court has jurisdiction over the subject matter of the Action and over the Parties with respect to the Action and this Judgment. This Judgment shall not be construed or used as a waiver of any jurisdictional defense the Settling Distributors or any other Released Entity may raise in any other proceeding. 5. The Court finds that the Agreements were entered into in good faith. 6. The Court finds that entry of this Judgment is in the public interest and reflects a negotiated settlement agreed to by the Parties. The Action is dismissed with prejudice, subject to a retention of jurisdiction by the Court as provided herein and in the Agreements. G-3 168 7. By this Judgment, the Agreements are hereby approved by the Court, and the Court hereby adopts their terms as its own determination of this matter and the Parties' respective rights and obligations. 8. The Court shall have authority to resolve disputes identified in Section VI.F.1 of the Global Agreement, governed by the rules and procedures of the Court. 9. The Parties have satisfied the Conditions to Effectiveness of Agreement set forth in Section II.B of the Washington Agreement as follows: a. The Enforcement Committee and the Settling Distributors executed the Enforcement Committee Agreement by June 1, 2022. b. All Litigating Subdivisions in the State of Washington and ninety percent (90%) of Non -Litigating Primary Subdivisions (calculated by population pursuant to the Global Settlement) in the State of Washington became Participating Subdivisions by September 23, 2022. 10. The Parties have satisfied the Condition to Effectiveness of Agreement set forth in Section VIII of the Global Agreement and the Release set forth in Sections XI.A, F, and G of the Global Agreement, as follows: a. The Attorney General of the State exercised the fullest extent of his or her powers to release the Settling Distributors and all other Released Entities from all Released Claims pursuant to the release attached hereto as Exhibit C (the "AG Release"). b. The Settling Distributors have determined that there is sufficient State participation and sufficient resolution of the Claims of the Litigating Subdivisions in the Settling States to proceed with the Agreements. c. The Participation Form for each Initial Participating Subdivision in the State has been delivered to the Settling Distributors. As stated in the Participation Form, and for the avoidance of doubt, nothing in the Participation Form executed by the Participating Subdivisions is intended to modify in any way the terms of the G-4 169 Agreements to which the Participating Subdivisions agree. As stated in the Participation Form, to the extent the executed version of the Participation Form differs from the Global Agreement in any respect, the Global Agreement controls. d. Pursuant to Section VIII.B of the Global Agreement, each Participating Subdivision in the State is dismissing with prejudice any Released Claims that it has filed against the Settling Distributors and the Released Entities. 11. Release. The Parties acknowledge that the AG Release, which is incorporated by reference herein, is an integral part of this Judgment. Pursuant to the Agreements and the AG Release and without limitation and to the maximum extent of the power of the State's Attorney General, the Settling Distributors and the other Released Entities are, as of the Effective Date, hereby released from any and all Released Claims of (a) the State and its Participating Subdivisions and any of their departments, agencies, divisions, boards, commissions, Subdivisions, districts, instrumentalities of any kind and attorneys, including the State's Attorney General, and any person in his or her official capacity whether elected or appointed to serve any of the foregoing, and any agency, person, or other entity claiming by or through any of the foregoing, (b) any public entities, public instrumentalities, public educational institutions, unincorporated districts, fire districts, irrigation districts, and other Special Districts in the State, and (c) any person or entity acting in a parens patriae, sovereign, quasi -sovereign, private attorney general, qui tam, taxpayer, or other capacity seeking relief on behalf of or generally applicable to the general public with respect to the State or any Subdivision in the State, whether or not any of them participate in the Agreements. Pursuant to the Agreements and the AG Release and to the maximum extent of the State's power, the Settling Distributors and the other Released Entities are, as of the Effective Date, hereby released from any and all Released Claims of (1) the State, (2) all past and present executive departments, state agencies, divisions, boards, commissions and instrumentalities with the regulatory authority to enforce state and federal controlled substances acts, and (3) any of the State's past and present executive departments, agencies, divisions, boards, commissions and instrumentalities that have the authority to bring Claims related to Covered Conduct seeking G-5 170 money (including abatement and/or remediation) or revocation of a pharmaceutical distribution license. For the purposes of clause (3) above, executive departments, agencies, divisions, boards, commissions, and instrumentalities are those that are under the executive authority or direct control of the State's Governor. Further, the provisions set forth in Section XI of the Global Agreement are incorporated by reference into this Judgment as if fully set forth herein. The Parties acknowledge, and the Court finds, that those provisions are an integral part of the Agreements and this Judgment, and shall govern the rights and obligations of all participants in the settlement. Any modification of those rights and obligations may be made based only on a writing signed by all affected parties and approved by the Court. 12. Release of Unknown Claims. The State expressly waives, releases, and forever discharges any and all provisions, rights, and benefits conferred by any law of any state or territory of the United States or other jurisdiction, or principle of common law, which is similar, comparable, or equivalent to § 1542 of the California Civil Code, which reads: General Release; extent. A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release that, if known by him or her, would have materially affected his or her settlement with the debtor or released party. 13. The State 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 the State expressly waived and fully, finally, and forever settled, released and discharged, through the Agreements and AG Release, any and all Released Claims that may exist as of the Effective Date but which the State does not know or suspect to exist, whether through ignorance, oversight, error, negligence or through no fault whatsoever, and which, if known, would have materially affected the State's decision to enter into the Agreements. 14. Costs and Fees. The Parties will bear their own costs and attorneys' fees except as otherwise provided in the Agreements. G-6 171 15. No Admission of Liability. The Settling Distributors are consenting to this Judgment solely for the purpose of effectuating the Agreements, and nothing contained herein may be taken as or construed to be an admission or concession of any violation of law, rule, or regulation, or of any other matter of fact or law, or of any liability or wrongdoing, all of which the Settling Distributors expressly deny. None of the Settling Distributors or any other Released Entity admits that it caused or contributed to any public nuisance, and none of the Settling Distributors or any other Released Entity admits any wrongdoing that was or could have been alleged by the State, its Participating Subdivisions, or any other person or entity. No part of this Judgment shall constitute evidence of any liability, fault, or wrongdoing by the Settling Distributors or any other Released Entity. The Parties acknowledge that payments made under the Agreements are not a fine, penalty, or payment in lieu thereof and are properly characterized as described in Section V.F of the Global Agreement. 16. No Waiver. This Judgment is entered based on the Agreements without adjudication of any contested issue of fact or law or finding of liability of any kind. This Judgment shall not be construed or used as a waiver of any Settling Distributor's right, or any other Released Entity's right, to defend itself from, or make any arguments in, any other regulatory, governmental, private individual, or class claims or suits relating to the subject matter or terms of this Judgment. Notwithstanding the foregoing, the State may enforce the terms of this Judgment as expressly provided in the Agreements. 17. No Private Right of Action. This Judgment is not intended for use by any third party for any purpose, including submission to any court for any purpose, except pursuant to Section VI.A of the Global Agreement. Except as expressly provided in the Agreements, no portion of the Agreements or this Judgment shall provide any rights to, or be enforceable by, any person or entity that is not a Settling State or Released Entity. The State shall allow Participating Subdivisions in the State to notify it of any perceived violations of the Agreements or this Judgment. No Settling State, including the State of Washington, may assign or otherwise convey any right to enforce any provision of the Agreements. G-7 172 18. Admissibility. It is the intent of the Parties that this Judgment not be admissible in other cases against the Settling Distributors or binding on the Settling Distributors in any respect other than in connection with the enforcement of this Judgment or the Agreements. For the avoidance of doubt, nothing herein shall prohibit a Settling Distributor from entering this Judgment or the Agreements into evidence in any litigation or arbitration concerning (1) a Settling Distributor's right to coverage under an insurance contract or (2) the enforcement of the releases provided for by the Agreements and this Judgment. 19. Preservation of Privilege. Nothing contained in the Agreements or this Judgment, and no act required to be performed pursuant to the Agreements or this Judgment, is intended to constitute, cause, or effect any waiver (in whole or in part) of any attorney-client privilege, work product protection, or common interest/joint defense privilege, and each Party agrees that it shall not make or cause to be made in any forum any assertion to the contrary. 20. Mutual Interpretation. The Parties agree and stipulate that the Agreements were negotiated on an arm's-length basis between parties of equal bargaining power and was drafted jointly by counsel for each Party. Accordingly, the Agreements are incorporated herein by reference and shall be mutually interpreted and not construed in favor of or against any Party, except as expressly provided for in the Agreements. 21. Retention of Jurisdiction. The Court shall retain jurisdiction of the Parties for the limited purpose of the resolution of disputes identified in Section VI.F.1 of the Global Agreement. The Court shall have jurisdiction over Participating Subdivisions in the State for the limited purposes identified in the Agreements. 22. Successors and Assigns. This Judgment is binding on each of the Settling Distributor's successors and assigns. 23. Modification. This Judgment shall not be modified (by the Court, by any other court, or by any other means) without the consent of the State and the Settling Distributors, or as provided for in Section XIV.0 of the Global Agreement. G-8 173 So ORDERED this day of 2022. THE HONORABLE JUDGE MICHAEL. R. SCOTT APPROVED, AGREED TO AND PRESENTED BY: ROBERT W. FERGUSON Attorney General s/ MARTHA RODRIGUEZ LOPEZ, WSBA No. 35466 ANDREW R.W. HUGHES, WSBA No. 49515 NATHAN K. BAYS, WSBA No. 43025 BRIAN H. ROWE, WSBA No. 56817 SPENCER W. COATES, WSBA No. 49683 KELSEY E. ENDRES, WSBA No. 39409 LAURA K. CLINTON, WSBA No. 29846 JONATHAN J. GUSS, WSBA No. 57663 SUSAN E. LLORENS, WSBA No. 38049 LIA E. PERNELL, WSBA No. 50208 MOTLEY RICE LLC s/ LINDA SINGER, pro hac vice ELIZABETH SMITH, pro hac vice DAVID I. ACKERMAN, pro hac vice JAMES LEDLIE, pro hac vice DON MIGLIORI, pro hac vice REBECCA FONSECA, pro hac vice MICHAEL J. QUIRK, pro hac vice ANNIE KOUBA, pro hac vice MICHAEL J. PENDELL, pro hac vice CHRISTOPHER MORIARTY, pro hac vice LISA M. SALTZBURG, pro hac vice NATALIA DEYNEKA, pro hac vice MICHAEL E. ELSNER, pro hac vice ANDREW P. ARNOLD, pro hac vice MIMI LIU, pro hac vice 174 STOEL RIVES LLP s/ VANESSA SORIANO POWER, WSBA No. 30777 JENNA M. POLIGO, WSBA No. 54466 RACHEL C. LEE, WSBA No. 48245 S. JULIA LITTELL, WSBA No. 54106 PER RAMFJORD, pro hac vice CHRIS C. RIFER, pro hac vice WILLIAMS & CONNOLLY LLP s/ LORYN HELFMANN, pro hac vice A. JOSHUA PODOLL, pro hac vice SUZANNE SALGADO, pro hac vice NEELUM J. WADHWANI, pro hac vice PAUL E. BOEHM, pro hac vice ELEANOR J.G. WASSERMAN, pro hac vice DAVID J. PARK, pro hac vice JOSHUA D. TULLY, pro hac vice STEVEN PYSER, pro hac vice ENU A. MAINIGI, pro hac vice JENNIFER G. WICHT, pro hac vice JOSEPH S. BUSHUR, pro hac vice COLLEEN MCNAMARA, pro hac vice MATTHEW P. MOONEY, pro hac vice ASHLEY W. HARDIN, pro hac vice J. ANDREW KEYES, pro hac vice EMILY R. PISTILLI, pro hac vice BRAD MASTERS, pro hac vice G-9 ANN RITTER, pro hac vice WILLIAM F. HAWKINS, pro hac vice SARA AGUINGUA, pro hac vice DAVID BURNETT, pro hac vice Attorneys for Defendant Cardinal Health Inc. VINCENT GREENE, pro hac vice Attorneys for Plaintiff State of Washington GORDON TILDEN THOMAS & CORDELL LLP s/ FRANKLIN D. CORDELL, WSBA No. 26392 JEFFREY M. THOMAS, WSBA No. 21175 KASEY HUEBNER, WSBA No. 32890 COVINGTON & BURLING CHISTOPHER EPPICH, pro hac vice ANDREW STANNER, pro hac vice KEVIN KELLY, pro hac vice AMBER CHARLES, pro hac vice MEGHAN MONAGHAN, pro hac vice ISAAC CHAPUT, pro hac vice DANIEL EAGLES, pro hac vice MEGAN MCLAUGHLIN, pro hac vice DEVON L. MOBLEY-RITTER, pro hac vice MEGAN RODGERS, pro hac vice SONYA D. WINNER, pro hac vice CLAYTON L. BAILEY, pro hac vice JAMES A. GOOLD, pro hac vice EMILY KVESELIS, pro hac vice PAUL W. SCHMIDT, pro hac vice ALEXANDER SETZEPFANDT, pro hac vice CHRISTIAN J. PISTILLI, pro hac vice LAUREN DORRIS, pro hac vice NICHOLAS GRIEPSMA, pro hac vice ALISON DICIURCIO, pro hac vice SARA J. DENNIS, pro hac vice PHYLLIS A. JONES, pro hac vice DALE A. RICE, pro hac vice Attorneys for Defendant McKesson Corp. LANE POWELL PC s/ JOHN S. DEVLIN III, WSBA No. 23988 PILAR FRENCH, WSBA No. 33300 REED SMITH LLP G-10 175 ROBERT A. NICHOLAS, pro hac vice KIM M. WATTERSON, pro hac vice STEVEN BORANIAN, pro hac vice ELIZABETH BRANDON, pro hac vice Attorneys for Defendant AmerisourceBergen Drug Corporation and AmerisourceBergen Corporation G-11 176 DECLARATION OF SERVICE I declare that I caused a copy of the foregoing document to be electronically served using the Court's Electronic Filing System, which will serve a copy of this document upon all counsel of record. G-12 177 CARDINAL Vanessa S. Power, Atty vanessa.power@stoel.com Jenna Poligo, Atty jenna.poligo@stoel.com Per A. Ramfjord, Atty per.ramfjord@stoel.com Rachel C. Lee, Atty rachel.lee@stoel.com Christopher C. Rifer, Atty christopher.rifer@stoel.com Loryn Helfmann, Atty lhelfmann@wc.com A. Joshua Podoll, Atty apodoll@wc.com Suzanne Salgado, Atty ssalgado@wc.com Neelum J. Wadhwani, Atty nwadhwani@wc.com Paul E. Boehm, Atty pboehm@wc.com Eleanor J. G. Wasserman, Atty ewasserman@wc.com David J. Park, Atty dpark@wc.com Joshua D. Tully, Atty jtully@wc.com Steven Pyser, Atty spyser@wc.com Enu A. Mainigi, Atty emainigi@wc.com Jennifer G. Wicht, Atty jwicht@wc.com Joseph S. Bushur, Atty jbushur@wc.com Colleen McNamara, Atty cmcnamara@wc.com Ashley W. Hardin, Atty ahardin@wc.com J. Andrew Keyes, Atty akeyes@wc.com Emily R. Pistilli, Atty epistilli@wc.com William F. Hawkins, Atty whawkins@wc.com Stoel Docketing docketclerk@stoel.com Leslie Lomax, Legal Assistant leslie.lomax@stoel.com WA Action cardinalwashingtonaction@wc.com G-12 177 MCKESSON Franklin D. Cordell fcordell@gordontilden.com Jeffrey M. Thomas jthomas@gordontilden.com Kasey Huebner khuebner@gordontilden.com Christopher Eppich, Atty ceppich@cov.corn Andrew Stanner, Atty astanner@cov.com Kevin Kelly, Atty kkelly@cov.com Amber Charles, Atty acharles@cov.com Meghan Monaghan, Atty mmonaghan@cov.com Isaac Chaput, Atty ichaput@cov.com Daniel Eagles, Atty deagles@cov.com Megan McLaughlin, Atty mmclaughlin@cov.com Devon L. Mobley -Ritter, Atty dmobleyritter@cov.com Megan Rodgers, Atty mrodgers@cov.com Sonya D. Winner, Atty swinner@cov.com Clayton L. Bailey, Atty cbailey@cov.com G-12 177 James A. Goold, Atty jgoold@cov.com Emily Kveselis, Atty ekveselis@cov.com Paul W. Schmidt, Atty pschmidt@cov.com Alexander Setzepfandt, Atty asetzepfandt@cov.com Christian J. Pistilli, Atty cpistilli@cov.com Lauren Dorris, Atty ldorris@cov.com Nicholas Griepsma, Atty n&iepsma@cov.com Alison DiCiurcio, Atty adiciurcio@cov.com Sara J. Dennis, Atty sdennis@cov.com Phyllis A. Jones, Atty pajones@cov.com Dale A. Rice, Atty drice@cov.com Nicole Antoine, Atty nantoine@cov.com Timothy Hester, Atty thester@cov.com Gregory L. Halperin, Atty ghalperin@cov.com Stephen Petkis, Atty spetkis@cov.com Alice Phillips Atty aphillips@cov.com Ellen Evans, Legal Assistant eevans@gordontilden.com Jacqueline Lucien Legal Assistant jlucien@gordontilden.com Courtney Caryl Garth, Paralegal ccaryl@gordontilden.com Electronic Mailing Inbox mckessonwa@cov.com AMERISOURCEBERGEN Pilar French, Atty frenchp@lanepowell.com John S. Devlin III, Atty devlinj@lanepowell.com Katie Bass, Atty bassk@lanepowell.com Elizabeth Brandon, Atty ebrandon@reedsmith.com Sarah Johansen, Atty sjohansen@reedsmith.com Rachel B. Weil, Atty rweil@reedsmith.com Steven Boranian, Atty sboranian@reedsmith.com Adam D. Brownrout, Atty abrownrout@reedsmith.com Nicole S. Soussan, Atty nsoussan@reedsmith.com Brian T. Himmel, Atty bhimmel@reedsmith.com Shannon E. McClure, Atty smcclure@reedsmith.com Michael J. Salimbene, Atty msalimbene@reedsmith.com Robert A. Nicholas, Atty rnicholas@reedsmith.com Thomas H. Suddath, Jr., Atty tsuddath@reedsmith.com Thomas J. McGarrigle, Atty tmcgarrigle@reedsmith.com Courtland C Chillingworth, Atty cchillingworth@reedsmith.com Christina M. Vitale, Atty cvitale@reedsmith.com Brian T. Kiolbasa, Atty kiolbasab@lanepowell.com Abigail M. Pierce, Atty abigail.pierce@reedsmith.com Joseph Mahady, Atty jmahady@reedsmith.com Jeffrey R. Melton, Atty jmelton@reedsmith.com Anne E. Rollins, Atty arollins@reedsmith.com Eric J. Buhr, Atty ebuhr@reedsmith.com Brent R. Gary, Atty bgary@reedsmith.com Kim M. Watterson, Atty KWatterson@reedsmith.com Jeffrey M. Weimer, Atty JWeimer@reedsmith.com E -Mailbox Docketing-SEA@lanepowell.com E -Mailbox Docketing-PDX@lanepowell.com E -Mailbox ABDCWA@LanePowell.com G-13 178 DATED day of 2022, at Seattle, Washington. s/ ANDREW R.W. HUGHES, WSBA No. 49515 G-14 179 Exhibit H Distributor Global Settlement Agreement This document is not attached due to its size. The document can be found here: https://agportal- s3bucket. s3 . amazonaws. com/DistributorsSettlement/National%20Distributor%20Settlement.pdf 180 EXHIBIT 2 Subdivision Settlement Participation Form (Exhibit F of the Distributors Settlement) 181 Exhibit F Subdivision Settlem nt Participation Form Governmental Entity: tate: Authorized Official: Address 1: Address 2: City, State, Zip: Phone: Em il: The governm ntal entity identified above ("Governmental Entity"), in order to obtain and in consideration for the benefits provided to the Governm ntal Entity pursuant to the Settlem nt Agreem nt dated M y 2, 2022 ("Distributors W shington Settlement"), and acting through the undersigned authorized official, hereby elects to participate in the Distributors W shington Settlem nt, release all Released Claim against all Released Entities, and agrees as follows. 1. The Governm ntal Entity is aware of and has reviewed the Distributors W shington Settlem nt, including the Distributor Global Settlem nt Agreem nt dated July 21, 2021 ("Global Settlement") attached to the Distributors W shington Settlem nt as Exhibit H, understands that all term in this Participation Form have the m anings defined therein, and agrees that by signing this Participation Form the Governm ntal Entity elects to participate in the Distributors W shington Settlem nt and becom a Participating Subdivision as provided therein. 2. The Governm ntal Entity shall, within 14 days of October 1, 2022 and prior to the filing of the Consent Judgm nt, secure the dism ssal with prejudice of any Released Claim that it has filed. 4. The Governm ntal Entity agrees to the term of the Distributors W shington Settlem nt pertaining to Subdivisions as defined therein. 5. By agreeing to the term of the Distributors W shington Settlem nt and becom ng a Releasor, the Governm ntal Entity is entitled to the benefits provided therein, including, if applicable, m netary paym nts beginning after Decem er 1, 2022. 6. The Governm ntal Entity agrees to use any m vies it receives through the Distributors W shington Settlem nt solely for the purposes provided therein. 7. The Governm ntal Entity subm is to the jurisdiction of the W shington Consent Judgm nt Court for purposes lim ted to that court's role as provided in, and for resolving disputes to the extent provided in, the Distributors W shington Settlem nt. The Governm ntal Entity likewise agrees to arbitrate before the National Arbitration Panel as provided in, and for resolving disputes to the extent otherwise provided in the Distributors W shington Settlem nt. F-1 182 8. The Governm ntal Entity has the right to enforce the Distributors W shington Settlem nt as provided therein. 9. The Governm ntal Entity, as a Participating Subdivision, hereby becom s a Releasor for all purposes in the Distributors W shington Settlem nt, including, but not lim ted to, all provisions of Section XI of the Global Settlem nt, and along with all departm nts, agencies, divisions, boards, corn ssions, districts, instrum ntalities 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 claim ng 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 Governm ntal Entity hereby absolutely, unconditionally, and irrevocably covenants not to bring, file, or claim or to cause, assist or perm t to be brought, filed, or claim d, or to otherwise seek to establish liability for any Released Claim against any Released Entity in any forum whatsoever. The releases provided for in the Distributors W shington Settlem nt are intended by the Agreem nt 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 Claim and extend to the full extent of the power of the Governm ntal Entity to release claim . The Distributors W shington Settlem nt shall be a com lete bar to any Released Claim 10. The Governm ntal Entity hereby takes on all rights and obligations of a Participating Subdivision as set forth in the Distributors W shington Settlem nt. 11. In connection with the releases provided for in the Distributors W shington Settlem nt, each Governm ntal 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 corn n law, which is sim lar, comparable, or equivalent to § 1542 of the California Civil Code, which reads: G neral Release; extent. A general release does not extend to claim that the creditor or releasing party does not know or suspect to exist in his or her favor at the tim of executing the release, and that if known by him or her would have m terially affected his or her settlem nt with the debtor or released party. A Releasor m y hereafter discover facts other than or different from those which it knows, believes, or assum s to be true with respect to the Released Claim , but each Governm ntal Entity hereby expressly waives and fully, finally, and forever settles, releases and discharges, upon the date the Distributors W shington Settlem nt becom s effective pursuant to Section II.B of the Distributors W shington Settlem nt, any and all Released Claim that m y 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 m terially affect the Governm ntal Entities' decision to participate in the Distributors W shington Settlem nt. F-2 183 12. Nothing herein is intended to m dify in any way the term of the Distributors W shington Settlem nt, to which Governm ntal Entity hereby agrees. To the extent this Participation Form is worded differently from Exhibit F to the Distributors W shington Settlem nt or interpreted differently from the Distributors W shington Settlem nt in any respect, the Distributors W shington Settlem nt controls. I have all necessary power and authorization to execute this Participation Form on behalf of the Governm ntal Entity. Signature: Nam : Title: Date: F-3 184 EXHIBIT 3 One Washington Memorandum of Understanding Between Washington Municipalities 185 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 Government(s)" shall mean Local Governments that filed suit against any Pharmaceutical Supply Chain Participant pertaining to the Opioid epidemic prior to September 1, 2020. 1 186 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 11 of the United States Code, irrespective of the extent to which Participating Local Governments vote in favor of or otherwise support such plan of reorganization. 2 187 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-md-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 3 188 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 C.4.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 C.4. 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 4 189 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 C.4.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 5 190 redistributed to Participating Counties in the manner directed in C.4.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. j. 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. 6 191 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. 7 192 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 8 193 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. 9 194 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-md-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 funds 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 10 195 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] 11 196 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 12 197 EXHIBIT A 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 1 199 or overdose fatality), and training of health care personnel to identify and address such 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. 2 200 3. Provide access to housing for people with OUD and any co-occurring SUD/MH 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. 3 201 4. Purchase automated versions of SBIRT and support ongoing costs of the technology. 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. 4 202 17. Develop or support a National Treatment Availability Clearinghouse — 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. 5 203 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. 6 204 5. Offer enhanced family supports and home-based wrap-around services to persons with 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. 7 205 b. Ensuring PDMPs incorporate available overdose/naloxone deployment 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 8 206 address mental health needs in young people that (when not properly addressed) 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. 9 207 PART THREE: OTHER STRATEGIES I. FIRST RESPONDERS In addition to items C8, Dl 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 10 208 strategies to abate the opioid epidemic described in this opioid abatement strategy list (e.g., health care, primary care, pharmacies, PDMPs, etc.). L. RESEARCH Support opioid abatement research that may include, but is not limited to, the following: 1. Monitoring, surveillance, 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. 11 209 EXHIBIT B Local County Government % Allocation Adams County Adams County Hatton Lind Othello Ritzville Washtucna 0.1638732475% County Total: 0.1638732475% Asotin County Asotin County Asotin Clarkston 0.4694498386% County Total: 0.4694498386% Benton County Benton County Benton City 1.4848831892% Kennewick Prosser 0.5415650564% Richland West Richland County Total: Chelan County Chelan County Cashmere 0.4756779517% 0.0459360490% 2.5480622463% 0.7434914485% Chelan Entiat Leavenworth Wenatchee 0.2968333494% County Total: 1.0403247979% Clallam County Clallam County Forks 1.3076983401% Port Angeles Sequim 0.4598370527% County Total: 1.7675353928% 210 *** Local Government appears in multiple counties B-1 EXHIBIT B 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 Dayton Starbuck 0.0561699537% County Total: 0.0561699537% Cowlitz County Cowlitz County Castle Rock Kalama Kelso Longview Woodland*** 1.7226945990% 0.1331145270% 0.6162736905% County Total: 2.4720828165% Douglas County Douglas County Bridgeport 0.3932175175% Coulee Dam*** East Wenatchee Mansfield 0.0799810865% Rock Island Waterville County Total: 0.4731986040% Ferry County Ferry County Republic 0.1153487994% County Total: 0.1153487994% *** - Local Government appears in multiple counties B-2 211 EXHIBIT B Local County Government % Allocation Franklin County Franklin County Connell Kahlotus Mesa Pasco 0.3361237144% 0.4278056066% County Total: 0.7639293210% Garfield County Garfield County Pomeroy 0.0321982209% County Total: 0.0321982209% Grant County Grant County Coulee City 0.9932572167% Coulee Darn*** Electric City Ephrata George Grand Coulee Hartline Krupp Mattawa Moses Lake Quincy 0.2078293909% Royal City Soap Lake Warden Wilson Creek County Total: 1.2010866076% 212*** - Local Government appears in multiple counties B-3 EXHIBIT B 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 Coupeville 0.6820422610% Langley Oak Harbor County Total: Jefferson County Jefferson County Port Townsend 0.2511550431% 0.9331973041% 0.4417137380% County Total: 0.4417137380% *** - Local Government appears in multiple counties B-4 213 EXHIBIT B Local County Government % Allocation King County King County Algona Auburn*** Beaux Arts Village 13.9743722662% 0.2622774917% Bellevue Black Diamond 1.1300592573% 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 Milton*** 0.1751797481% Newcastle Normandy Park 0.0033117880% 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 Yarrow Point 0.0185516364% County Total: 26.0505653608% 214*** - Local Government appears in multiple counties B-5 EXHIBIT B 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 Cle Elum 0.3855704683% 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 counties B-6 215 EXHIBIT B Local County Government % Allocation Lincoln County Lincoln County Almira Creston Davenport Harrington Odessa 0.1712669645% Reardan Sprague Wilbur County Total: 0.1712669645% Mason County Mason County 0.8089918012% Shelton 0.1239179888% County Total: 0.9329097900% Okanogan County Okanogan County Brewster Conconully Coulee Dam*** 0.6145043345% Elmer City Nespelem Okanogan Omak Oroville Pateros Riverside Tonasket Twisp Winthrop County Total: 0.6145043345% Pacific County Pacific County Ilwaco 0.4895416466% Long Beach Raymond South Bend County Total: 0.4895416466% 216 *** - Local Government appears in multiple counties B-7 EXHIBIT B Local County Government % Allocation Pend Oreille County Pend Oreille County Cusick lone Metaline Metaline Falls Newport 0.2566374940% 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 Roy 0.3845704814% 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 Friday Harbor 0.2101495171% County Total: 0.2101495171% *** - Local Government appears in multiple counties B-8 217 EXHIBIT B Local County Government % Allocation Skagit County Skagit County 1.0526023961% Anacortes 0.1774962906% Burlington 0.1146861661% Concrete Hamilton La Conner Lyman Mount Vernon Sedro-Woolley County Total: 0.2801063665% 0.0661146351% 1.6910058544% Skamania County Skamania County North Bonneville Stevenson 0.1631931925% 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% *** - 218 Local Government appears in multiple counties B-9 EXHIBIT B Local County Government % Allocation Spokane County Spokane County Airway Heights 5.5623859292% Cheney Deer Park 0.1238454349% Fairfield Latah Liberty Lake Medical Lake 0.0389636519% Millwood Rockford Spangle Spokane 3.0872078287% Spokane Valley 0.0684217500% Waverly County Total: 8.8808245947% Stevens County Stevens County Chewelah 0.7479240179% Colville Kettle Falls Marcus Northport Springdale County Total: 0.7479240179% Thurston County Thurston County Bucoda 2.3258492094% Lacey 0.2348627221% Olympia 0.6039423385% Rainier Tenino Tumwater 0.2065982350% Yelm County Total: 3.3712525050% Wahkiakum County Wahkiakum County Cathlamet 0.0596582197% County Total: 0.0596582197% *** - Local Government appears in multiple counties B-10 219 EXHIBIT B Local County Government % Allocation Walla Walla County Walla Walla County College Place Prescott Waitsburg Walla Walla County Total: 0.5543870294% 0.3140768654% 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 Albion Colfax Colton Endicott Farmington Garfield LaCrosse 0.2626805837% Lamont Malden Oakesdale Palouse Pullman Rosalia 0.2214837491% St. John Tekoa Uniontown County Total: 0.4841643328% 220*** Local Government appears in multiple counties B-11 EXHIBIT B Local County Government % Allocation Yakima County Yakima County 1.9388392959% Grandview 0.0530606109% Granger Harrah Mabton Moxee Naches Selah Sunnyside Tieton 0.1213478384% Toppenish Union Gap Wapato Yakima Zillah 0.6060410539% County Total: 2.7192887991% *** - Local Government appears in multiple counties B-12 221 EXHIBIT 4 Non -Exhaustive List of Expenditures that Qualify as Opioid Remediation (Exhibit E of the Global Settlement) 222 FINAL AGREEM NT 3.25.22 EXH BIT E List of 0 ioid Rem diation Uses Schedule A Core Strategies States and Qualifying Block Grantees shall choose from am ng the abatem nt strategies listed in Schedule B. However, priority shall be given to the following core abatem nt strategies ("Core Strategies").14 A. NALO E 0 0 R FDA-APPRO ED DRUG TO REVERSE 0 IO D 0 ERDO ES 1. Expand training for first responders, schools, com unity support groups and fam lies; and 2. Increase distribution to individuals who are uninsured or whose insurance does not cover the needed service. B. M DICATIO -ASSISTED TREATM NT ("M T") DISTRIBUTIO AND 0 H R 0 IO D -RELATED TREATM NT 1. Increase distribution of M T to individuals who are uninsured or whose insurance does not cover the needed service; 2. Provide education to school-based and youth -focused program that discourage or prevent m suse; 3. Provide M T education and awareness training to healthcare providers, EM s, law enforcem nt, and other first responders; and 4. Provide treatm nt and recovery support services such as residential and inpatient treatm nt, intensive outpatient treatm nt, outpatient therapy or counseling, and recovery housing that allow or integrate m dication and with other support services. 14 As used in this Schedule A, words like "expand," "fund," "provide" or the like shall not indicate a preference for new or existing program . E-1 223 FINAL AGREEM NT 3.25.22 C. PREG ANT & PO TPARTUM WOMEN 1. Expand Screening, Brief Intervention, and Referral to Treatm nt ("SBIRT') services to non -M dicaid eligible or uninsured pregnant worn n; 2. Expand corn rehensive evidence -based treatm nt and recovery services, including M T, for worn n with co- occurring Opioid Use Disorder ("OUD") and other Substance Use Disorder ("SUD")/M ntal Health disorders for uninsured individuals for up to 12 m nths postpartum and 3. Provide com rehensive wrap-around services to individuals with OUD, including housing, transportation, job placem nt/training, and childcare. D. EXPANDING TREATM NT FO NEO ATAL ABSTINENCE SYNDRO ("NAS") 1. Expand corn rehensive evidence -based and recovery support for NAS babies; 2. Expand services for better continuum of care with infant - need dyad; and 3. Expand long-term treatm nt and services for m dical m nitoring of NAS babies and their fam lies. E. EXPANSIO 0 WARM H ND -O F PRO AM AND RECO ERY SERVICES 1. Expand services such as navigators and on-call team to begin M T in hospital em rgency departm nts; 2. Expand warm hand-off services to transition to recovery services; 3. Broaden scope of recovery services to include co-occurring SUD or m ntal health conditions; 4. Provide corn rehensive wrap-around services to individuals in recovery, including housing, transportation, job placem nt/training, and childcare; and 5. Hire additional social workers or other behavioral health workers to facilitate expansions above. E-2 224 FINAL AGREEM NT 3.25.22 F. TREATM NT FO INCARCERATED PO ULATIO 1. Provide evidence -based treatm nt and recovery support, including M T for persons with OUD and co-occurring SUD/M disorders within and transitioning out of the crim nal justice system and 2. Increase funding for jails to provide treatm nt to inm tes with OUD. G. PREVENTIO PRO AM 1. Funding for m dia cam aigns to prevent opioid use (sim lar to the FDA's "Real Cost" cam aign to prevent youth from m susing tobacco); 2. Funding for evidence -based prevention program in schools; 3. Funding for m dical provider education and outreach regarding best prescribing practices for opioids consistent with the 2016 CDC guidelines, including providers at hospitals (academ c detailing); 4. Funding for com nity drug disposal program ; and 5. Funding and training for first responders to participate in pre -arrest diversion program , post -overdose response team , or sim lar strategies that connect at -risk individuals to behavioral health services and supports. H. EXPANDING SYRING SERVICE PRO AM 1. Provide corn rehensive syringe services program with m re wrap-around services, including linkage to OUD treatm nt, access to sterile syringes and linkage to care and treatm nt of infectious diseases. I. EVIDENCE -BASED DATA CO LECTIO AND RESEARCH ANALYZING TH EFFECTIVENESS 0 TH ABATEM NT STRATEG ES WITH N TH STATE E-3 225 FINAL AGREEM NT 3.25.22 Schedule B Approved Uses Support treatm nt of Opioid Use Disorder (OUD) and any co-occurring Substance Use Disorder or M ntal Health (SUD/M ) conditions through evidence -based or evidence -inform d program or strategies that m y include, but are not lin' ted to, the following: PART ONE: TREATM NT A. TREAT 0 IO D USE DISO DER (0 D) Support treatm nt of Opioid Use Disorder ("OUD") and any co-occurring Substance Use Disorder or M ntal Health ("SUD/M ") conditions through evidence -based or evidence - inform d program or strategies that m y include, but are not lim ted to, those that:15 1. Expand availability of treatm nt for OUD and any co-occurring SUD/M conditions, including all form of M dication-Assisted Treatm nt ("M T') approved by the U.S. Food and Drug Adm nistration. 2. Support and reim urse evidence -based services that adhere to the Am rican Society of Addiction M dicine ("ASAM ) continuum of care for OUD and any co- occurring SUD/M conditions. 3. Expand telehealth to increase access to treatm nt for OUD and any co-occurring SUD/M conditions, including M T, as well as counseling, psychiatric support, and other treatm nt and recovery support services. 4. Im rove oversight of Opioid Treatm nt Program ("OTPs") to assure evidence - based or evidence -inform d practices such as adequate m thadone dosing and low threshold approaches to treatm nt. 5. Support m bile intervention, treatm nt, and recovery services, offered by qualified professionals and service providers, such as peer recovery coaches, for persons with OUD and any co-occurring SUD/M conditions and for persons who have experienced an opioid overdose. 6. Provide treatm nt of traum for individuals with OUD (e.g., violence, sexual assault, hum n trafficking, or adverse childhood experiences) and fam ly m m ers (e.g., surviving fam ly m m ers after an overdose or overdose fatality), and training of health care personnel to identify and address such traum . 7. Support evidence -based withdrawal m nagem nt services for people with OUD and any co-occurring m ntal health conditions. 15 As used in this Schedule B, words like "expand," "fund," "provide" or the like shall not indicate a preference for new or existing program . E-4 226 FINAL AGREEM NT 3.25.22 8. Provide training on M T for health care providers, first responders, students, or other supporting professionals, such as peer recovery coaches or recovery outreach specialists, including telem ntoring to assist corn unity -based providers in rural or underserved areas. 9. Support workforce developm nt for addiction professionals who work with persons with OUD and any co-occurring SUD/M conditions. 10. Offer fellowships for addiction m dicine specialists for direct patient care, instructors, and clinical research for treatm nts. 11. Offer scholarships and supports for behavioral health practitioners or workers involved in addressing OUD and any co-occurring SUD/M or m ntal health conditions, including, but not lim ted to, training, scholarships, fellowships, loan repaym nt program , or other incentives for providers to work in rural or underserved areas. 12. Provide funding and training for clinicians to obtain a waiver under the federal Drug Addiction Treatm nt Act of 2000 ("DATA 2000") to prescribe M T for OUD, and provide technical assistance and professional support to clinicians who have obtained a DATA 2000 waiver. 13. Dissem nate of web -based training curricula, such as the Am rican Academ of Addiction Psychiatry's Provider Clinical Support Service—Opioids web -based training curriculum and m tivational interviewing. 14. Develop and dissem nate new curricula, such as the Am rican Academ of Addiction Psychiatry's Provider Clinical Support Service for M dication— Assisted Treatm nt. B. SUPPO T PEO LE IN TREATM NT AND RECO ERY Support people in recovery from OUD and any co-occurring SUD/M conditions through evidence -based or evidence -inform d program or strategies that m y include, but are not lira ted to, the program or strategies that: 1. Provide corn rehensive wrap-around services to individuals with OUD and any co-occurring SUD/M conditions, including housing, transportation, education, job placem nt, job training, or childcare. 2. Provide the full continuum of care of treatm nt and recovery services for OUD and any co-occurring SUD/M conditions, including supportive housing, peer support services and counseling, com nity navigators, case m nagem nt, and connections to corn nity-based services. 3. Provide counseling, peer -support, recovery case m nagem nt and residential treatm nt with access to m dications for those who need it to persons with OUD and any co-occurring SUD/M conditions. E-5 227 FINAL AGREEM NT 3.25.22 4. Provide access to housing for people with OUD and any co-occurring SUD/M conditions, including supportive housing, recovery housing, housing assistance program , training for housing providers, or recovery housing program that allow or integrate FDA -approved m diation with other support services. 5. Provide corn nity support services, including social and legal services, to assist in deinstitutionalizing persons with OUD and any co-occurring SUD/M conditions. 6. Support or expand peer -recovery centers, which m y include support groups, social events, corn uter access, or other services for persons with OUD and any co-occurring SUD/M conditions. 7. Provide or support transportation to treatm nt or recovery program or services for persons with OUD and any co-occurring SUD/M conditions. 8. Provide em loym nt training or educational services for persons in treatment for or recovery from OUD and any co-occurring SUD/M conditions. 9. Identify successful recovery program such as physician, pilot, and college recovery program , and provide support and technical assistance to increase the num er and capacity of high-quality program to help those in recovery. 10. Engage non -profits, faith -based com nities, and corn nity coalitions to support people in treatm nt and recovery and to support fam ly m ers in their efforts to support the person with OUD in the fam ly. 11. Provide training and developm nt of procedures for governm nt staff to appropriately interact and provide social and other services to individuals with or in recovery from OUD, including reducing stigm . 12. Support stigm reduction efforts regarding treatm nt and support for persons with OUD, including reducing the stigm on effective treatm nt. 13. Create or support culturally appropriate services and program for persons with OUD and any co-occurring SUD/M conditions, including new Am ricans. 14. Create and/or support recovery high schools. 15. Hire or train behavioral health workers to provide or expand any of the services or supports listed above. C. CONNECT PEO LE WHO NEED H LP TO TH H LP TH Y NEED (CO NECTIO S TO CARE) Provide connections to care for people who have—or are at risk of developing—OUD and any co-occurring SUD/M conditions through evidence -based or evidence -inform d program or strategies that m y include, but are not lim ted to, those that: E-6 228 FINAL AGREEM NT 3.25.22 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 treatm nt. 2. Fund SBIRT program to reduce the transition from use to disorders, including SBIRT services to pregnant wom n who are uninsured or not eligible for M dicaid. 3. Provide training and long-term im lem ntation of SBIRT in key system (health, schools, colleges, crim nal justice, and probation), with a focus on youth and young adults when transition from m suse to opioid disorder is com n. 4. Purchase autom ted versions of SBIRT and support ongoing costs of the technology. 5. Expand services such as navigators and on-call team to begin M T in hospital em rgency departm nts. 6. Provide training for em rgency room personnel treating opioid overdose patients on post -discharge planning, including coin nity referrals for M T, recovery case m nagem nt or support services. 7. Support hospital program that transition persons with OUD and any co-occurring SUD/M conditions, or persons who have experienced an opioid overdose, into clinically appropriate follow-up care through a bridge clinic or sim lar approach. 8. Support crisis stabilization centers that serve as an alternative to hospital em rgency departm nts for persons with OUD and any co-occurring SUD/M conditions or persons that have experienced an opioid overdose. 9. Support the work of Em rgency M dical System , including peer support specialists, to connect individuals to treatm nt or other appropriate services following an opioid overdose or other opioid -related adverse event. 10. Provide funding for peer support specialists or recovery coaches in em rgency departm nts, detox facilities, recovery centers, recovery housing, or sim lar settings; offer services, supports, or connections to care to persons with OUD and any co-occurring SUD/M conditions or to persons who have experienced an opioid overdose. 11. Expand warm hand-off services to transition to recovery services. 12. Create or support school-based contacts that parents can engage with to seek im diate treatm nt services for their child; and support prevention, intervention, treatm nt, and recovery program focused on young people. 13. Develop and support best practices on addressing OUD in the workplace. E-7 229 FINAL AGREEM NT 3.25.22 14. Support assistance program for health care providers with OUD. 15. Engage non -profits and the faith com nity as a system to support outreach for treatm nt. 16. Support centralized call centers that provide inform tion and connections to appropriate services and supports for persons with OUD and any co-occurring SUD/M conditions. D. ADDRESS TH NEEDS 0 CRIM NAL JUSTICE-INVO VED PERSO S Address the needs of persons with OUD and any co-occurring SUD/M conditions who are involved in, are at risk of becom ng involved in, or are transitioning out of the crim nal justice system through evidence -based or evidence -inform d program or strategies that m y include, but are not lim ted to, those that: 1. Support pre -arrest or pre-arraignm nt diversion and deflection strategies for persons with OUD and any co-occurring SUD/M conditions, including established strategies such as: 1. Self -referral strategies such as the Angel Program or the Police Assisted Addiction Recovery Initiative ("PAARI" ); 2. Active outreach strategies such as the Drug Abuse Response Team ("DART') m del; 3. "Naloxone Plus" strategies, which work to ensure that individuals who have received naloxone to reverse the effects of an overdose are then linked to treatm nt program or other appropriate services; 4. Officer prevention strategies, such as the Law Enforcem nt Assisted Diversion ("LEAD") m del; 5. Officer intervention strategies such as the Leon County, Florida Adult Civil Citation Network or the Chicago W stside Narcotics Diversion to Treatm nt Initiative; or 6. Co -responder and/or alternative responder m dels to address OUD-related 911 calls with greater SUD expertise. 2. Support pre-trial services that connect individuals with OUD and any co- occurring SUD/M conditions to evidence -inform d treatm nt, including M T, and related services. 3. Support treatm nt and recovery courts that provide evidence -based options for persons with OUD and any co-occurring SUD/M conditions. E-8 230 FINAL AGREEM NT 3.25.22 4. Provide evidence -inform d treatm nt, including M T, recovery support, harm reduction, or other appropriate services to individuals with OUD and any co- occurring SUD/M conditions who are incarcerated in jail or prison. 5. Provide evidence -inform d treatm nt, including M T, recovery support, harm reduction, or other appropriate services to individuals with OUD and any co- occurring SUD/M conditions who are leaving jail or prison or have recently left jail or prison, are on probation or parole, are under corn nity corrections supervision, or are in re-entry program or facilities. 6. Support critical tim interventions ("CTI"), particularly for individuals living with dual -diagnosis OUD/serious m ntal illness, and services for individuals who face im diate risks and service needs and risks upon release from correctional settings. 7. Provide training on best practices for addressing the needs of crim nal justice - involved persons with OUD and any co-occurring SUD/M conditions to law enforcem nt, correctional, or judicial personnel or to providers of treatment, recovery, harm reduction, case m nagem nt, or other services offered in connection with any of the strategies described in this section. E. ADDRESS TH NEEDS 0 PREG ANT 0 PARENTING W N AND THEIR FAM LIES, INCLUDING BABIES WITH NEO ATAL ABSTINENCE SYNDRO Address the needs of pregnant or parenting worn n with OUD and any co-occurring SUD/M conditions, and the needs of their fam lies, including babies with neonatal abstinence syndrom ("NAS"), through evidence -based or evidence -inform d program or strategies that m y include, but are not lim ted to, those that: 1. Support evidence -based or evidence -inform d treatm nt, including M T, recovery services and supports, and prevention services for pregnant women—or worn n who could becom pregnant— holhave OUD and any co-occurring SUD/M conditions, and other m asures to educate and provide support to fam lies affected by Neonatal Abstinence Syndrom . 2. Expand com rehensive evidence -based treatm nt and recovery services, including M T, for uninsured worn n with OUD and any co-occurring SUD/M conditions for up to 12 m nths postpartum 3. Provide training for obstetricians or other healthcare personnel who work with pregnant worn n and their fam lies regarding treatm nt of OUD and any co- occurring SUD/M conditions. 4. Expand corn rehensive evidence -based treatm nt and recovery support for NAS babies; expand services for better continuum of care with infant -need dyad; and expand long-term treatm nt and services for m dical m nitoring of NAS babies and their fam lies. E-9 M 231 FINAL AGREEM NT 3.25.22 5. Provide training to health care providers who work with pregnant or parenting worn n on best practices for corn liance with federal requirem nts that children born with NAS get referred to appropriate services and receive a plan of safe care. 6. Provide child and fam ly supports for parenting worn n with OUD and any co- occurring SUD/M conditions. 7. Provide enhanced fam ly support and child care services for parents with OUD and any co-occurring SUD/M conditions. 8. Provide enhanced support for children and fam ly m ers suffering traum as a result of addiction in the fam ly; and offer traum -inform d behavioral health treatm nt for adverse childhood events. 9. Offer horn -based wrap-around services to persons with OUD and any co- occurring SUD/M conditions, including, but not lim ted to, parent skills training. 10. Provide support for Children's Services—Fund additional positions and services, including supportive housing and other residential services, relating to children being rem ved from the horn and/or placed in foster care due to custodial opioid use. PART TW : PREVENTION F. PREVENT 0 ER -PRESCRIBING AND ENSURE APPRO RIATE PRESCRIBING AND DISPENSING 0 10 DS Support efforts to prevent over -prescribing and ensure appropriate prescribing and dispensing of opioids through evidence -based or evidence -inform d program or strategies that m y include, but are not lim ted to, the following: 1. Funding m dical provider education and outreach regarding best prescribing practices for opioids consistent with the Guidelines for Prescribing Opioids for Chronic Pain from the U.S. Centers for Disease Control and Prevention, including providers at hospitals (academ c detailing). 2. Training for health care providers regarding safe and responsible opioid prescribing, dosing, and tapering patients off opioids. 3. Continuing M dical Education (CM ) on appropriate prescribing of opioids. 4. Providing Support for non -opioid pain treatm nt alternatives, including training providers to offer or refer to m lti-m dal, evidence -inform d treatm nt of pain. 5. Supporting enhancem nts or im rovem nts to Prescription Drug M nitoring Program ("PDM s"), including, but not lim ted to, im rovem nts that: E-10 232 FINAL AGREEM NT 3.25.22 1. Increase the num er of prescribers using PDM s; 2. Im rove point -of -care decision -m king by increasing the quantity, quality, or form t of data available to prescribers using PDM s, by im roving the interface that prescribers use to access PDM data, or both; or 3. Enable states to use PDM data in support of surveillance or intervention strategies, including M T referrals and follow-up for individuals identified within PDM data as likely to experience OUD in a m nner that corn lies with all relevant privacy and security laws and rules. 6. Ensuring PDM s incorporate available overdose/naloxone deploym nt data, including the United States Departm nt of Transportation's Em rgency Medical Technician overdose database in a m nner that corn lies with all relevant privacy and security laws and rules. 7. Increasing electronic prescribing to prevent diversion or forgery. 8. Educating dispensers on appropriate opioid dispensing. G PREVENT M SUSE O 0 IO DS Support efforts to discourage or prevent m suse of opioids through evidence -based or evidence -inform d program or strategies that m y include, but are not lim ted to, the following: 1. Funding m dia cam aigns to prevent opioid m suse. 2. Corrective advertising or affirm tive public education cam aigns based on evidence. 3. Public education relating to drug disposal. 4. Drug take -back disposal or destruction program . 5. Funding com nity anti-drug coalitions that engage in drug prevention efforts. 6. Supporting corn nity coalitions in im lem nting evidence -inform d prevention, such as reduced social access and physical access, stigm ireduction— ncluding staffing, educational cam aigns, support for people in treatm nt or recovery, or training of coalitions in evidence -inform d im lem ntation, including the Strategic Prevention Fram work developed by the U.S. Substance Abuse and M ntal Health Services Adm nistration ("SAM SA"). 7. Engaging non -profits and faith -based corn nities as system to support prevention. E-11 233 FINAL AGREEM NT 3.25.22 8. Funding evidence -based prevention program in schools or evidence -inform d school and corn nity education program and cam aigns for students, fam lies, school em loyees, school athletic program , parent -teacher and student associations, and others. 9. School-based or youth -focused program or strategies that have dem nstrated effectiveness in preventing drug m suse and seem likely to be effective in preventing the uptake and use of opioids. 10. Create or support corn nity-based education or intervention services for fam lies, youth, and adolescents at risk for OUD and any co-occurring SUD/M conditions. 11. Support evidence -inform d program or curricula to address m ntal health needs of young people who m y be at risk of m susing opioids or other drugs, including em tional m dulation and resilience skills. 12. Support greater access to m ntal health services and supports for young people, including services and supports provided by school nurses, behavioral health workers or other school staff, to address m ntal health needs in young people that (when not properly addressed) increase the risk of opioid or another drug m suse. H PREVENT 0 ERDO E DEATH AND 0 H R H RM (H RM REDUCTIO ) Support efforts to prevent or reduce overdose deaths or other opioid -related harms through evidence -based or evidence -inform d program or strategies that m y include, but are not lim ted to, the following: 1. Increased availability and distribution of naloxone and other drugs that treat overdoses for first responders, overdose patients, individuals with OUD and their friends and fam ly m ers, schools, corn nity navigators and outreach workers, persons being released from jail or prison, or other m m ers of the general public. 2. Public health entities providing free naloxone to anyone in the com nity. 3. Training and education regarding naloxone and other drugs that treat overdoses for first responders, overdose patients, patients taking opioids, fam lies, schools, corn nity support groups, and other m m ers of the general public. 4. Enabling school nurses and other school staff to respond to opioid overdoses, and provide them with naloxone, training, and support. 5. Expanding, im roving, or developing data tracking software and applications for overdoses/naloxone revivals. 6. Public education relating to em rgency responses to overdoses. E-12 234 FINAL AGREEM NT 3.25.22 7. Public education relating to im nity and Good Sam ritan laws. 8. Educating first responders regarding the existence and operation of im nity and Good Sam ritan laws. 9. Syringe service program and other evidence -inform d program to reduce harm associated with intravenous drug use, including supplies, staffing, space, peer support services, referrals to treatm nt, fentanyl checking, connections to care, and the full range of harm reduction and treatm nt services provided by these program . 10. Expanding access to testing and treatm nt for infectious diseases such as HIV and Hepatitis C resulting from intravenous opioid use. 11. Supporting m bile units that offer or provide referrals to harm reduction services, treatm nt, recovery supports, health care, or other appropriate services to persons that use opioids or persons with OUD and any co-occurring SUD/M conditions. 12. Providing training in harm reduction strategies to health care providers, students, peer recovery coaches, recovery outreach specialists, or other professionals that provide care to persons who use opioids or persons with OUD and any co- occurring SUD/M conditions. 13. Supporting screening for fentanyl in routine clinical toxicology testing. PART THREE: OTHER STRATEGIES I. FIRST RESPO DERS In addition to item in section C, D and H relating to first responders, support the following: 1. Education of law enforcem nt or other first responders regarding appropriate practices and precautions when dealing with fentanyl or other drugs. 2. Provision of wellness and support services for first responders and others who experience secondary traum associated with opioid -related em rgency events. J. LEADERSH P, PLANNING AND CO DINATIO Support efforts to provide leadership, planning, coordination, facilitations, training and technical assistance to abate the opioid epidem c through activities, program , or strategies that m y include, but are not lim ted to, the following: 1. Statewide, regional, local or com nity regional planning to identify root causes of addiction and overdose, goals for reducing harm related to the opioid epidem c, and areas and populations with the greatest needs for treatm nt E-13 235 FINAL AGREEM NT 3.25.22 intervention services, and to support training and technical assistance and other strategies to abate the opioid epidem c described in this opioid abatem nt strategy list. 2. A dashboard to (a) share reports, recom ndations, or plans to spend opioid settlem nt funds; (b) to show how opioid settlem nt funds have been spent; (c) to report program or strategy outcom s; or (d) to track, share or visualize key opioid - or health-related indicators and supports as identified through collaborative statewide, regional, local or corn nity processes. 3. Invest in infrastructure or staffing at governor nt or not-for-profit agencies to support collaborative, cross -system coordination with the purpose of preventing overprescribing, opioid m suse, or opioid overdoses, treating those with OUD and any co-occurring SUD/M conditions, supporting them in treatm nt or recovery, connecting them to care, or im lem nting other strategies to abate the opioid epidem c described in this opioid abatem nt strategy list. 4. Provide resources to staff governm nt oversight and m nagem nt of opioid abatem nt program . K TRAINING In addition to the training referred to throughout this docum nt, support training to abate the opioid epidem c through activities, program , or strategies that m y include, but are not lira ted to, those that: 1. Provide funding for staff training or networking program and services to im rove the capability of governm nt, corn nity, and not-for-profit entities to abate the opioid crisis. 2. Support infrastructure and staffing for collaborative cross -system coordination to prevent opioid m suse, prevent overdoses, and treat those with OUD and any co- occurring SUD/M conditions, or im lem nt other strategies to abate the opioid epidem c described in this opioid abatem nt strategy list (e.g., health care, prim ry care, pharm cies, PDM s, etc.). L. RESEARCH Support opioid abatem nt research that m y include, but is not lim ted to, the following: 1. M nitoring, surveillance, data collection and evaluation of program and strategies described in this opioid abatem nt strategy list. 2. Research non -opioid treatm nt of chronic pain. 3. Research on im roved service delivery for m dalities such as SBIRT that dem nstrate prom sing but m xed results in populations vulnerable to opioid use disorders. E-14 236 FINAL AGREEM NT 3.25.22 4. Research on novel harm reduction and prevention efforts such as the provision of fentanyl test strips. 5. Research on innovative supply-side enforcem nt efforts such as im roved detection of m it -based delivery of synthetic opioids. 6. Expanded research on swift/certain/fair m dels to reduce and deter opioid m sure within crim nal justice populations that build upon prom sing approaches used to address other substances (e.g., Hawaii HOPE and Dakota 24/7). 7. Epidem ological surveillance of OUD-related behaviors in critical populations, including individuals entering the crim nal justice system including, but not lim ted to approaches m deled on the Arrestee Drug Abuse M nitoring ("ADAM ) system 8. Qualitative and quantitative research regarding public health risks and harm reduction opportunities within illicit drug m rkets, including surveys of m rket participants who sell or distribute illicit opioids. 9. Geospatial analysis of access barriers to M T and their association with treatm nt engagem nt and treatm nt outcom s. E-15 237 Exhibit F Subdivision Settlem nt Participation Form Governmental Entity: tate: Authorized Official: Address 1: Address 2: City, State, Zip: Phone: Em il: The governm ntal entity identified above ("Governmental Entity"), in order to obtain and in consideration for the benefits provided to the Governm ntal Entity pursuant to the Settlem nt Agreem nt dated M y 2, 2022 ("Distributors W shington Settlement"), and acting through the undersigned authorized official, hereby elects to participate in the Distributors W shington Settlem nt, release all Released Claim against all Released Entities, and agrees as follows. 1. The Governm ntal Entity is aware of and has reviewed the Distributors W shington Settlem nt, including the Distributor Global Settlem nt Agreem nt dated July 21, 2021 ("Global Settlement") attached to the Distributors W shington Settlem nt as Exhibit H, understands that all term in this Participation Form have the m anings defined therein, and agrees that by signing this Participation Form the Governm ntal Entity elects to participate in the Distributors W shington Settlem nt and becom a Participating Subdivision as provided therein. 2. The Governm ntal Entity shall, within 14 days of October 1, 2022 and prior to the filing of the Consent Judgm nt, secure the dism ssal with prejudice of any Released Claim that it has filed. 4. The Governm ntal Entity agrees to the term of the Distributors W shington Settlem nt pertaining to Subdivisions as defined therein. 5. By agreeing to the term of the Distributors W shington Settlem nt and becom ng a Releasor, the Governm ntal Entity is entitled to the benefits provided therein, including, if applicable, m netary paym nts beginning after Decem er 1, 2022. 6. The Governm ntal Entity agrees to use any m vies it receives through the Distributors W shington Settlem nt solely for the purposes provided therein. 7. The Governm ntal Entity subm is to the jurisdiction of the W shington Consent Judgm nt Court for purposes lim ted to that court's role as provided in, and for resolving disputes to the extent provided in, the Distributors W shington Settlem nt. The Governm ntal Entity likewise agrees to arbitrate before the National Arbitration Panel as provided in, and for resolving disputes to the extent otherwise provided in the Distributors W shington Settlem nt. F-1 238 8. The Governm ntal Entity has the right to enforce the Distributors W shington Settlem nt as provided therein. 9. The Governm ntal Entity, as a Participating Subdivision, hereby becom s a Releasor for all purposes in the Distributors W shington Settlem nt, including, but not lim ted to, all provisions of Section XI of the Global Settlem nt, and along with all departm nts, agencies, divisions, boards, corn ssions, districts, instrum ntalities 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 claim ng 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 Governm ntal Entity hereby absolutely, unconditionally, and irrevocably covenants not to bring, file, or claim or to cause, assist or perm t to be brought, filed, or claim d, or to otherwise seek to establish liability for any Released Claim against any Released Entity in any forum whatsoever. The releases provided for in the Distributors W shington Settlem nt are intended by the Agreem nt 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 Claim and extend to the full extent of the power of the Governm ntal Entity to release claim . The Distributors W shington Settlem nt shall be a com lete bar to any Released Claim 10. The Governm ntal Entity hereby takes on all rights and obligations of a Participating Subdivision as set forth in the Distributors W shington Settlem nt. 11. In connection with the releases provided for in the Distributors W shington Settlem nt, each Governm ntal 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 corn n law, which is sim lar, comparable, or equivalent to § 1542 of the California Civil Code, which reads: G neral Release; extent. A general release does not extend to claim that the creditor or releasing party does not know or suspect to exist in his or her favor at the tim of executing the release, and that if known by him or her would have m terially affected his or her settlem nt with the debtor or released party. A Releasor m y hereafter discover facts other than or different from those which it knows, believes, or assum s to be true with respect to the Released Claim , but each Governm ntal Entity hereby expressly waives and fully, finally, and forever settles, releases and discharges, upon the date the Distributors W shington Settlem nt becom s effective pursuant to Section II.B of the Distributors W shington Settlem nt, any and all Released Claim that m y 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 m terially affect the Governm ntal Entities' decision to participate in the Distributors W shington Settlem nt. F-2 239 12. Nothing herein is intended to m dify in any way the term of the Distributors W shington Settlem nt, to which Governm ntal Entity hereby agrees. To the extent this Participation Form is worded differently from Exhibit F to the Distributors W shington Settlem nt or interpreted differently from the Distributors W shington Settlem nt in any respect, the Distributors W shington Settlem nt controls. I have all necessary power and authorization to execute this Participation Form on behalf of the Governm ntal Entity. Signature: Nam : Title: Date: F-3 240 Washington Distributor Settlement August 8, 2022 presentation Jeff Rupert, Washington AGO The AGO's lawsuit against the distributors to The AGO filed suit against AmerisourceBergen, Cardinal Health, and McKesson • Nuisance and consumer protection claims ► Huge amount of document and data in discovery ► 6 -month trial in King County Superior Court ► Settled at close of evidence Overview of settlement Up to $518 million payable over 17 years $430 million must be spent on combatting the opioid epidemic Attorney General is directing an additional $46 million in attorneys' fees to opioid spending by the State. Remainder is attorneys' fees. Who must join the settlement for it become effective? I► 125 local governments listed in the settlement All 37 jurisdictions that filed a lawsuit must join 90% of the local governments with a population over 10,000 that did not file a lawsuit must join All other states have approved Washington settlement structure is very similar to the national distributor settlement that 48 other states and local governments joined No other State and its local governments have decided not to approve the national settlement How a city or county can join the settlement 10- Sign and return the Participation Form Deadline is September 23, 2022 Return form to comopioidsc«esC atg.wa: What happens if not enough cities and counties join the settlement? If not enough local governments join by September 23, 2022, the settlement is void * No one gets any of the settlement money ► As of 8/8, only 17 out of 125 eligible local governments have returned the Participation Form The national distributor settlement is part of Washington's settlement The national distributor settlement is incorporated into the Washington settlement as Exhibit H The terms and conditions in the national settlement apply to Washington How will the money be split between the State and the local governments? 4► The State and attorneys representing the local governments have agreed in principle to 50% local government/50% State split of the up to $430 million abatement amount ► The local governments will receive up to $215 million payable over 17 years Why is the local government share "up to" $215 million? No The Washington and national settlement have base and incentive payment structures • If less than 100% of the non -litigating local governments join, the settlement payments are less ► If a local government later files a lawsuit against the distributors, the settlement payments are less and the payments may be delayed How to join the Allocation Agreement io The Allocation Agreement has not yet been finalized, but will be sent to the local governments soon • Sign the Allocation Agreement and return the signature page to The threshold for the Allocation Agreement to be effective is in Exhibit 0 of the national settlement agreement How are the local governments dividing their share? No The One Washington MOU that Keller Rohrback circulated will be used to divide the local government share The Allocation Agreement makes a few changes to the One Washington MOU for the Distributor settlement How to calculate the share your city or county would receive t Exhibit B of the One Washington MOU lists the percentage that each eligible local government will receive or Percentages based on population adjusted for proportionate share of the impact of the opioid epidemic ► A local government's share can calculated by multiplying $215 million and that local government's percentage in Exhibit B Attorneys' fees of 15% then need to be deducted, but this will not occur in later payment years as some of these fees are being paid via the settlement How to join the One Washington MOU Sign the One Washington MOU r Return the signature page to comopioidscases@atg.wa.,_ . or Keller Rohrback The threshold for the One Washington MOU to be effective is in Exhibit 0 of the national settlement agreement A local government can decide to spend settlement money or pool it with others +► The One Washington MOU requires that each region establish an Opioid Abatement Council to oversee allocation, distribution, and spending A local government can spend settlement money itself or regionally ► Settlement funds must be spent on an Approved Use for fighting the opioid epidemic per court order Spending and reporting requirements Opioid spending must be spent on an Approved Uses per court order t Approved Uses are listed on Exhibit E of the national settlement agreement ► The national settlement and settlement administrator have reporting and tax cooperation requirements r All records must be retained and the Public Records Act applies To increase efficiency, please coordinate your spending with the State's spending 110- The State's opioid spending is being coordinated by HCA and DOH $ Please discuss your spending plans with State and regional counsels so that spending can be coordinated When do settlement payments start? 410- The first payment is due by December 1, 2022 Each of the 16 successive payment will be made on July 15 Will the settlement payments be the same each year? 40 - Settlement payments will not be the same but will not vary greatly unless certain incentive payments are not achieved. See Section IV and Exhibit M of the national settlement ► The first payment on December 1, 2022 will be approximately double the amount of the remaining 16 payments Other opioid bankruptcies I* The Mallinckrodt and Purdue bankruptcies have different requirements, and no sign on is required for either There may be future opioid settlements Questions 0. Contact Jeff Rupert, the Complex Litigation Division Chief, at 206-389-2116 or Jeffrey. Ru pert@at. wa. o 0.- You also can contact ► https://www.atg.wa.gov/distributors-. settlemen has more information about the settlement and the sign -on forms 262 TO: City of Tukwila Allan Ekberg, Mayor Mayor's Office - David Cline, City Administrator The City of opportunity, the community of choice Mayor Ekberg Councilmembers FROM: David Cline, City Administrator DATE: September 14, 2022 SUBJECT: City Administrator's Report The City Administrator Report is meant to provide the Council, staff and community an update on the activities of the City and on issues that concern Tukwila. Please let me know if you have any questions or need additional information about any of the following items. �. Intergovernmental Update • Meetings with King County Councilmember Upthegrove: Mayor Ekberg and mayors from other South King County cities met with King County Councilmember Dave Upthegrove on August 29 to discuss Public Safety and August 31 to discuss the Lower Green River. • King County City Managers/City Administrators Meeting: City Administrator David Cline hosted the monthly King County City Managers/City Administrators meeting at the Tukwila Justice Center on September 7. The meeting included a presentation from the King County Drug Diversion Court, a roundtable discussion on budget processes, and updates from WCMA and SCA. • South King County Mobility Coalition Meeting: Community Development staff attended a South King County Mobility Coalition meeting. King County Metro presented details regarding the transition to free youth rides on transit spurred by the Move Washington package. Metro has connected with Foster High staff to share information and ORCA cards. II. Community Events • Sunset Bat Walk: Green Tukwila partnered with Woodland Park Zoo and Bats Northwest to bring a Sunset Bat Walk to TCC and discuss the importance of community science. The event exceeded expectations with community interest and 25 people attended with 5 volunteers leading the walk. Green Tukwila Continues to look for ways to bring more urban wildlife education to Tukwila. • Green Tukwila Park Stewardship: o The Bhutanese Community Resource Center removed 500 -square -feet of English ivy from Tukwila Park to prep the site for a fall tree planting. Tukwila City Halt • 6200 Southcenter Boulevard • Tukwila, WA 98188 • 206-433-1800 • Website: TukwilaWA.gov 263 City Administrator's Report September 14, 2022 Page 2 o Partner in Employment lead a Green Job training crew of 16 youths for a week at Tukwila Park, and the youth removed English ivy and mulched and planted young native plants, while learning about the watershed and green job possibilities. o Parks & Recreation staff member Olena Perry lead a work party for the Maritime Highschool, Highline School District, 9th and 10th grade. The school spent the day learning about the Duwamish Hill Preserve and removing Himalayan blackberry, Teasel, Queen Anne's Lace, and Burdock, all invasive plants; the crew of 45 youth finished the day by mulching and planting Oregon grape, young trees and walking to the top of the hill. o All Green Tukwila fall work parties are online at www.Tukwilawa.gov/GreenTukwila. Staff Updates Public Safety • CERT Academy: On September 9 Emergency Management started a CERT Academy for Tukwila residents. This was made possible through an interagency partnership with the cities of Des Moines and Burien. Classes will run on Thursday nights through October 13 at the Burien Community Center and culminate with a disaster simulation on October 15 at South King Fire and Rescue in Federal Way. Tukwila firefighters will be providing instruction to the students. Project Updates • 2022 Annual Small Drainage Program Estimated Completion: September2022 The contractor is working on 49th Ave S, completed 37th Ave S and will be moving to 48th Ave S next. They are planning on completing construction by September 28, 2022. • 42nd Ave S Bridge Replacement: The design for the 42nd Ave S Bridge Replacement continues toward the 30% mark which is expected in early 2023. TranTech Engineering design staff continues to research stormwater treatment options as the Washington Department of Ecology has released new stormwater treatment guidelines. Project staff are continuing to work with the parks department to select the location of the treatment areas. • Story Walk Installations: Parks & Recreation staff Olena Perry and Matthew Austin worked with the Children's Librarian at the Tukwila Library to install two story walks at local parks, one at Riverton Park and the other at Cascade View Community Park. Boards, Commissions and Committees • Arts Commission: The next meeting is scheduled for September 28, 2022. 2 Resident position terms expire December 31, 2022. No vacancies. • Civil Service Commission: The next meeting is scheduled for September 15, 2022. No terms set to expire in 2022. No vacancies. Phone: 206-4334800 • Email: Mayor@TukwilaWA.gov • Website: TukwilaWA.gov 264 City Administrator's Report September 14, 2022 Page 3 • COPCAB: The next meeting is scheduled for October 13, 2022. 1 Business Representative position term expires December 31, 2022. 1 Resident position term expires December 31, 2022. 1 School District Representative position term expires December 31, 2022. VACANT: 2 Resident positions, 1 School District Representative and Student Representative. • Equity & Social Justice Commission: The next meeting is scheduled for October 2, 2022. 1 City Employee position term expires December 31, 2022. 1 Education/Community position terms expires December 31, 2022. 2 Community Representative position terms expire December 31, 2022. VACANT: 1 Community Representative and Student Representative. Two applications received. Appointment recommendations are scheduled for October 3, 2022. • Human Services Advisory Board: The next meeting is scheduled for mid-October. 1 Medical/Health position term expires December 31, 2022. 1 School District Representative position term expires December 31, 2022. 1 Resident position term expires December 31, 2022. VACANT: 1 School District Representative and 1 Business Community Representative. • Library Advisory Board: The next meeting is scheduled for October 4, 2022. 4 Resident position terms expire December 31, 2022. VACANT: Student Representative. • Lodging Tax Advisory Committee: The next meeting is scheduled for October 14, 2022. All positions are 1 -year terms. VACANT: 1 Business Collecting Tax Representative and 1 Funded by Tax Representative. • Park Commission: The next meeting is scheduled for October 12, 2022. 2 Community position terms expire December 31, 2022. VACANT: 1 Community Representative and Student Representative. • Planning Commission: The next meeting is scheduled for September 22, 2022. 2 Resident position terms expire December 31, 2022. No vacancies. W. Responses to Council/Community Inquiries Date of Inquiry Inquiry Response August 22, 2022 Councilmember Sharp The department PROS Plan calls for the asked what major development of a Senior and Youth Center and projects does Parks the Tukwila Pond site. However, with our have on its agenda to limited CIP budget, we have no major projects present in the next year, not involving planned in this next biennium. We intend on revisiting these and other major projects in maintenance or current structures. 2025-26. Phone: 206-433-1800 • Email: Mayor@TukwilaWA,gov • Website: TukwilaWA.gov 265 City Administrator's Report September 14, 2022 Page 4 August 22, 2022 Councilmember Sharp asked if Parks has investigated ways to make the Golf course solvent. Has there been any talk about having that facility sold to a private outfit to run? Sold outright and taxing the new entity? Foster Golf Course continues to show growth in annual rounds and earned revenue. The course by itself is returning nearly every dollar in General Fund investment via indirect cost payments, sales tax inflows generated, and surface water expenses covered that would otherwise be General Fund expenditures. We also know that it is an indispensable asset to the community. For instance, during the pandemic while many City services were limited or paused, Foster Golf Links flourished - experiencing an increase of 27% in annual rounds between 2019 and 2021. Staff have not explored scenarios that may include selling Foster Golf Links to a private party to operate or sold outright. However, in 2013, the then Finance and Safety Committee was briefed regarding Foster Golf Links Marketing and Operations. This overview included a comparison of operational data for select municipal and private golf courses, a marketing work plan for Foster's identifying strategies to retain, engage and attract customers and consultant reports relating to Auburn and Lynnwood's municipal golf courses. Information was shared regarding the pros and cons of various operational models including 1) self -operation; 2) full-service management contract; 3) concession agreements; 4) lease/concession; 5) hybrid contract. Additionally, as recently as this past May, the Community Services and Public Safety Committee was briefed by staff on the Operational Plan for Foster Golf Links which included financial, performance, operations and maintenance information. Phone: 206-433-1800 • Email: Mayor@TukwilaWA,gov • Website: TukwilaWA.gov 266 City Administrator's Report September 14, 2022 Page 5 August 22, 2022 Councilmember Sharp asked about reports of criminal activity at Codiga Park in the evening, is there any talk about adding lighting there or perhaps a gate that blocks the parking at the park in the evening. Currently we have purchased a camera for this park and allocated capital budget dollars in the next biennium to add a gate with security to lock at night. August 22, 2022 Councilmember Sharp The average cost of one event is $2,500. By asked about the cost of seeking out grants from the Washington the "See You In the Festivals and Events Association ($9,000) and Park" events. Can the Cascade Water Alliance ($1,000), we were able events be combined to to present this year's events to local increase the number of neighborhood residents at their local parks at participants and perhaps save resources? no cost to the city, other than staff time. August 22, 2022 Councilmember Sharp The city has reached out to King County Metro asked about the plans in the past and was not able to get a stop at for a bus stop at the TCC. We used to have a stop on Gateway Drive Tukwila Community and up by the corner market on 130th St. and Center. 40th Ave. But both are now gone. As Laurel noted in her 9/1 email, Councilmember Hougardy is the City's representative on the Regional Transit Committee and may have some helpful background on this matter. We will be reaching out to learn more. Currently we do have a pilot service, Via, that provides on -demand service from most of the city as long as the pick-up OR final destination is one of two locations: TCC and the light rail station. We have promoted this on the City website, as well as on social media channels and through the school district. Phone: 206-433-1800 • Email: Mayor@TukwilaWA.gov • Website: TukwilaWA.gov 267 268 City of Tukwila - Public Works Fleet & Facilities TOTAL PROJECT MONTHLY Budget Report (REVISED Budget; D-20 Plan Adopted by Council) Life to Date Costs as of September 2, 2022 (reconciled w/acctg thru March 2, 2022 GL) COUNCIL REPORTING SUMMARY- PUBLIC WORKS Original Budget Budget Transfers Current Budget Committed Bridget Life to Date Cosh Remain'g Committed Remaining Budget A/E Services (Design & CA) Permits/Fees Construction Construction (Tax) Construction Related Costs PM Services (incl Other Professional Svcs) Contingency (incl Construction & Project) $ 670,768 $ 130,000 $ 6,715,000 $ 662,618 $ 378,186 $ 350,000 $ 843,437 $ 85,500 $ 24,315 $ 945,451 $ 124,500 $ 94,572 $ 195,000 $ (469,338) $ 756,268 $ 154,315 $ 7,660,451 $ 787,118 $ 472,758 $ 545,000 $ 374,099 $ 741,393 $ 135,275 $ 7,660,450 $ 764,500 $ 344,876 $ 538,442 $ - $ 618,576 $ 115,275 $ 5,652,752 $ 538,210 $ 305,779 $ 458,308 $ - $ 122,817 $ 20,000 $ 2,007,699 $ 226,289 $ 39,097 $ 80,133 $ - $ 14,875 $ 19,040 $ 0 $ 22,618 $ 127,882 $ 6,558 $ 374,099 SUBTOTAL -CURRENT MANAGED PROJECT $ 9,750,008 $ 1,000,000 $ 10,750,008 $ 10,184,935 $ 7,688,900 $ 2,496,035 $ 565,073 Previously Managed Svcs (Land,A/E,Bond,Demo) $ 25,949,992 $ - $ 25,949,992 $ 25,936,198 $ 25,936,198 $ - $ 13,794 TOTAL -COMBINED PROJECT $ 35,700,000 $ 1,000,000 $ 36,700,000 $ 36,121,133 $ 33,625,098 $ 2,496,035 $ 578,867 270 UPCOMING MEETINGS AND EVENTS SEPTEMBER - OCTOBER 2022 City Council meetings and Council Committee meetings will be conducted in a hybrid model, with in-person and virtual attendance available. SEP 19 MON SEP 20 TUE SEP 21 WED SEP 22 THU SEP 23 FRI SEP 24 SAT > Planning and Community Development Committee 5:30 PM City Hall - Hazelnut Room Hybrid Meeting ➢Transportation and Infrastructure Services Committee 5:30 PM 6300 Building -Duwamish Room on 2'd Floor Hybrid Meeting ➢City Council Regular Meeting 7:00 PM City Hall Council Chambers Hybrid Meeting Planning Commission 6:30 PM Tukwila Justice Center Hybrid Meeting " w r T COMMUNITY TOWN HALL Tukwila Police invite residents, businesses, business employees and property owners to attend this public meeting. Chief Dreyer will be providing updates on public safety, Q&A session and more. 6:00 PM - 8:00 PM Westfield Southcenter Mall Sky Terrace (near AMC) Click here for more information. TUKWILA INTERNATIONAL ALE 99 ,. • TUKWILA INTERNATIONAL BOULEVARD ACTION COMMITTEE TRASH PICK-UP DAY For more information, call Sharon Mannnnat 206-200-3616. Tukwila Village e> Farmers Market • See above for more information. Connecting to Our Creeks FREE family -friendly event to learn about the local ecosystem of Longfellow Creek and other neighborhood creeks - about their water, plants, fish and wildlife, and what we can do to keep our creeks healthy. 6:30 PM — 8:00 PM Duwamish Longhouse 4705 S Marginal Way SW, Seattle Click here to register. SEP 26 MON SEP 27 TUE SEP 28 WED SEP 29 THU SEP 30 FRI OCT 1 SAT ➢ Community Services and Safety Committee 5:30 PM City Hall - Hazelnut Room Hybrid Meeting- ➢ Finance and Governance Committee 5:30 PM 6300 Building - Duwamish Room on 2"d Floor Hybrid Meeting ➢City Council Committee of the Whole Meeting 7:00 PM City Hall Council Chambers Hybrid Meeting s z ,9oe BUDGET TOWN HALL The City Council will convene a Budget Town Hall focused on labor. 5:30 PM City Hall Council Chambers Click here to join the meeting virtually. TRUC eL L EATO CK REROUToo__E_PROJoon ��rT��rT UPDATE CANCELLED Give Blood =Save 3 Lives .. 00 ov _ . • _ DONATE BLOOD IN SEPTEMBER AND ENTER TO WIN A SET OF APPLE AIRPODS MAX WIRELESS HEADPHONES Your donation is critical! Our community is dangerously low on the platelets and Type 0 blood needed to supply each of the cancer and surgery patients. To schedule an appointment, call 1-800-398-7888. Click here to schedule an appointment online. Tukwila Village 4 Farmers Market, All communities welcome. The Farmers Market accepts EBT cards. 4:00 PM — 7:00 PM Tukwila Village Plaza 14350 Tukwila Intl Blvd ➢Arts Commission 6:00 PM Tukwila Community Center YOU GOT NEXT BASKETBALL AND COMMUNITY FESTIVAL SATURDAY, SEP 17 10:00 AM - 5:00 PM Free giveaways, inflatables, music, food, basketball activities for youth of all abilities, and more. Click here for more information and to register. See flyer in other languages: Somali Espanol Tieng Viet KALEIDOSCOPE PLAY AND LEARN STARTS ON OCT 7 Kaleidoscope Play & Learn groups offer parents and other caregivers the opportunity to support their children's early learning through everyday activities, and build relationships with other participants. Registration opens each Monday of the week program is held. Click here to register your child. POLICE DEPARTMENT HIRING PROCESS VOLUNTEERS NEEDED Tukwila Police Department is seeking members of the community who are interested in volunteering with the Police Department hiring process as members of an interview panel for selection of Police Department staff. Click here for more information and to apply. THE CITY WANTS COMMUNITY FEEDBACK ON 2023-2024 BIENNIAL BUDGET The new budget cycle will be challenging for the City. Revenues are slow to return to pre -pandemic levels. Inflation is at its highest level in 40 years, resulting in higher costs for supplies, materials and wages. We have a budget tool that you can make budget adjustments. Your challenge is to develop a balanced budget. Click here for more information. DRIVE THRU PICK-UP 3118 S 140TH ST TUESDAYS, THURSDAYS AND SATURDAYS 10:00 AM - 2:00 PM .7: 1;gcc VOLUNTEERS - In need of volunteers between 8 AM — 1 PM for food packaging Mondays, Wednesdays and Fridays and food distributions Yrcin :27 Tuesdays, Thursdays and Saturdays. Click here to sign-up to volunteer. DONORS - Please donate at TukwilaPantry.org. NEW TRANSPORTATION SERVICE TO TUKWILA COMMUNITY CENTER MON THRU SAT 5 AM -1 AM SUNDAYS 6 AM -12 AM a KC Metro has launched a new pilot program that will provide on -demand transportation service from anywhere in Tukwila to the Tukwila Community Center. Click here for more information and rates. COVID-19 TESTING King County Rapid, over the counter COVID tests are now widely available around King County. These tests are also known as home-based self -collected COVID tests or antigen tests and provide results in 15 minutes. Click here for more information. Click here to find COVID testing sites by location in King County. COVID-19 VACCINATION All Washingtonians ages 5 and up are eligible to receive a COVID-19 vaccination—and now also babies and children 6 months and older. For more information, visit Getting vaccinated in King County or call 206-477-3977. You can also search at vaccinelocator.doh.wa.gov Interpreters available for assistance. Telephone -to -text relay service: Dial 711 or 1-800-833-6384. Tactile interpretation: seattledbsc.org. KING COUNTY 141 SOCIAL SECURITY WORKSHOP FOR SENIORS 55+ Learn about social security in an online workshop. The class will cover eligibility, early retirement, survivor benefits and more. Click here to register. LIBRARY _, S Y ST EM GET HOMEWORK HELP FROM A TUTOR Also get help to prepare for college entrance exams. Explore back -to -school resources for all ages on site. Click here for more information. Students in grades K-12 can also connect to virtual homework help and resources with Study Zone Plus. Click here for more information. FREE EMPLOYMENT SERVICES AND SKILLS TRAINING Learn about the free services and programs provided by Puget Sound Training Center. Registration not required. Reasonable accommodation for people with disabilities per request. Email access@kcls.org at least 7 days before the event. Click here for more information and multiple dates. GET CERTIFIED AT YOUR LIBRARY FOR FREE! Take free online classes, practice tests and Certiport certification exams. Get certified in MS Office, Adobe, QuickBooks, coding and more! You will need your KCLS library card number and PIN to access some resources. Click here for more information and registration. FREE TECH COURSES & EARN BELLEVUE COLLEGE CREDIT! Take free tech courses from Cisco, and apply for college credit from Bellevue College. The courses are online, self -paced and free. Click here for more information and register to enroll in the tech courses. 271 272 Tentative Agenda Schedule MEETING 1 — REGULAR MEETING 2 — C.O.W. MEETING 3 — REGULAR MEETING 4 — C.O.W. SEPTEMBER tih* No Counc'I L due * H BOR or to * 4 P k Committee the 5 * P YLL * holiday. meetings SEPTEMBER 12 See below link for the agenda packet to view the agenda items: September 12, 2022 Committee of the Whole / Special Meeting SEPTEMBER 19 See below link for the agenda packet to view the agenda items: September 19, 2022 Regular Meeting SEPTEMBER 26 SPECIAL ISSUES - An update on Tourism and Lodging Tax: 2023=2024 Biennial Budget and Updated Six -Year Financial Plan. Discussion on the acquisition of additional School Zone Speeding Cameras. - Discussion on additional Parks Zone Speeding Cameras. - Discussion on the proposed 2023- 2024 Biennial Budget: Residential and Arterial Streets. - An Interlocal Agreement with the Puget Sound Regional Fire Authority. - A resolution adopting a policy for naming or renaming City -owned property; and repealing Resolution No. 1400.. - Public Safety Plan fund budget. - Proposed 2023-2024 Biennial Budget: City Facilities (303 and 306 Funds). - LEOFF 1 Retiree Health Care Budget. MEETING 1 — REGULAR MEETING 2 — C.O.W. MEETING 3 — REGULAR MEETING 4 — C.O.W. OCTOBER 3 APPOINTMENT Confirm the appointments to Position #9 and to the Student Representative Position on the Equity and Social Justice Commission, with terms expiring December 31, 2023. PRESENTATIONS - Promotion of Fire Department staff: Eric Dunkley to Fire Captain. - Presentation of Mayor's Proposed 2023-2024 Biennial Budget. CONSENT AGENDA - Authorize the Mayor to sign a contract for construction services for the Green River Trail Improvements Project. - Authorize the Mayor to sign a contract for consultant services for a GIS Inventory — Water/Sewer, in the amount of $200,000.00. - Authorize the Mayor to sign Amendment # 2 to Contract #21- 163 for the Chinook Wind Public Access Project, in the amount of $52,281.00. - Authorize the Mayor to accept a grant from the Department of Ecology for the Stormwater Management Action Plan in the amount of $72,353.00 (local match $10,853.00). - Authorize the Mayor to accept a grant from the Department of Ecology for the Stormwater Quality Retrofit Project in the amount of $1,176,341.00 (local match $176,451.00). - Authorize the Mayor to sign a contract for the City Hall Siding Repairs Project in the amount of $158,806.86. UNFINISHED BUSINESS - Authorize the acquisition of additional School Zone Speeding Cameras. - Authorize the Mayor to sign an Interlocal Agreement with the Puget Sound Regional Fire Authority. - A resolution adopting a policy for naming or renaming City -owned property; and repealing Resolution No. 1400. - Urban Renewal Budget. OCTOBER 10 SPECIAL ISSUES - A resolution regarding Permit Fees. - A contract for Microsoft Enterprise Services. OCTOBER 17 PRESENTATION An update on the Small Business Development Center at Highline College. CONSENT AGENDA Authorize the Mayor to sign a contract for Microsoft Enterprise Services in the amount of $443,882.00. UNFINISHED BUSINESS A resolution regarding Permit Fees. OCTOBER 24 SPECIAL ISSUES An update on the Economic Development Plan. Special Meeting to follow Committee of the Whole Meeting.