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2025, 09-16 Formal B Meeting Packet AGENDA SPOKANE VALLEY CITY COUNCIL REGULAR MEETING FORMAL B FORMAT Tuesday, September 16, 2025 6:00 p.m. Remotely via ZOOM Meeting and In Person at Spokane Valley City Hall, Council Chambers 10210 E. Sprague Ave. Spokane Valley, WA 99206 Council Requests Please Silence Your Cell Phones During Council Meeting NOTE: Members of the public may attend Spokane Valley Council meetings in-person at the address provided above, or via Zoom at the link below. Members of the public will be allowed to comment in-person or via Zoom as described below. Public comments will only be accepted for those items noted on the agenda as “public comment opportunity.”Citizens must register by 4 p.m. the day of the meeting to provide comment by Zoom. Please use the links below to register to provide verbal or written comment. Sign up to Provide Verbal Public Comment at the Meeting via Calling-In Submit Written Public Comment Prior to the Meeting Join the Zoom WEB Meeting ------------------------------------------------------------------------------------------------------------------------------- CALL TO ORDER INVOCATION: Pastor Jim Hillbrick, Millwood Presbyterian PLEDGE OF ALLEGIANCE ROLL CALL APPROVAL OF AGENDA SPECIAL GUESTS/PRESENTATIONS: Mr. Blake McCracken, You Rock Recognition Award PROCLAMATIONS: : Valleyfest & Constitution Week GENERAL PUBLIC COMMENT OPPORTUNITY: This is an opportunity for the public to speak on any subject except agenda action items, as public comments will be taken on those items where indicated. Please keep comments to matters within the jurisdiction of the City Government.This is not an opportunity for questions or discussion. Diverse points of view are welcome but please keep remarks civil. Remarks will be limited to three minutes per person. If a person engages in disruptive behavior or makes individual personal attacks regarding matters unrelated to City business, then the Council and/or Mayor may end that person’s public comment time before the three-minute mark. To comment via zoom: use the link above for oral or written comments as per those directions. To comment at the meeting in person: speakers may sign in to speak but it is not required. A sign-in sheet will be provided at the meeting. ACTION ITEMS: 1. Public Hearing: Interim Ordinance 25-013 Communications Tower Height Restrictions – Kelly Konkright \[public comment opportunity\] 2. Resolution 25-017: Reaffirming Finding of Fact and Ordinance 25-013 – Kelly Konkright \[public comment opportunity\] 3. Ordinance 25-014: First Read, Business License Threshold – Mike Basinger \[public comment opportunity\] Council Agenda September 16, 2025 Page 1 of 2 4. Motion Consideration: 2026 TPA Budget & Work Plan -Lesli Brassfield \[public comment opportunity\] 5. Motion Consideration: Perdue Pharma & Secondary Manufacturer’s Opioid Settlements –Tony Beattie \[public comment opportunity\] NON-ACTION ITEMS: 6. Admin Report: Flag PolicyDiscussion –Kelly Konkright, Tony Beattie INFORMATION ONLY(will not be reported or discussed): GENERAL PUBLIC COMMENT OPPORTUNITY:General public comment rules apply. COUNCILCOMMENTS MAYOR’S COMMENTS CITY MANAGER COMMENTS EXECUTIVE SESSION ADJOURNMENT Scan to access the meeting materials Council AgendaSeptember 16, 2025 Page 2 of 2 Proclamation City of Spokane Valley, Washington Valleyfest WHEREAS, Valleyfest three decades, beginning in 1990 with a small group of volunteers and growing into a vibrant, city-wide tradition; and WHEREAS, Valleyfest offers a three-day experience each September at Mirabeau Point Park,and CenterPlace Regional Event Center, featuring live entertainment, family-friendly activities, cultural showcases, and opportunities to recognize and uplift youth talent; and WHEREAS, Valleyfest has evolved alongside the City of Spokane Valley, predating its engagement, and civic pride; and WHEREAS, Valleyfest draws more than 35,000 attendees to its events and over 10,000 parade goers to the Hearts of Gold Parade along Sprague Avenue, creating a lasting economic impact on local businesses and fostering regional tourism; and WHEREAS, Valleyfest provides a platform for nonprofits to raise awareness for their missions and for local businesses to promote products, services, and employment opportunities that support economic growth and quality of life in the Spokane Valley; and WHEREAS, Valleyfest continues to thrive thanks to the dedication of Executive Director Peggy Doering, countless volunteers, and the strong support of the City of Spokane Valley, Spokane Valley Fire Department, Spokane Valley Police Department, and community partners. NOW, THEREFORE, I, Pam Haley, Mayor of the City of Spokane Valley, on behalf of the Spokane Valley City Council and Spokane Valley citizens; do hereby invite all residents throughout the area, to join in the September 19 through 21, 2025 festival known as Valleyfest and I encourage all of our community members throughout the region and beyond, to enjoy this wonderful local festival. th Dated this 16 day of September 2025 _________ Pam Haley, Mayor Proclamation City of Spokane Valley, Washington Constitution Week WHEREAS, On September 17, 1787, members of the Constitutional Convention signed the final draft of the U.S. Constitution. For almost 250 years, the Constitution has served as the most important document in American history and government; and WHEREAS, This sacred and important document established our national government, fundamental laws and has protected and guaranteed certain basic rights to citizens of the United States; and WHEREAS, Each year on September 17, Americans celebrate Constitution Day and Citizenship Day. The observance of Constitution Week runs annually from September 17 to September 23; and WHEREAS, It was officially enacted on August 2, 1956, by President Dwight D. Eisenhower from a congressional resolution petitioned by the Daughters of the American Revolution. President George W. Bush officially declared the inception of Constitution Week in September 2002; and WHEREAS, During this time, Americans are encouraged to reflect on the rights and responsibilities of citizenship and what it means to be a U.S. citizen; and WHEREAS, The City of Spokane Valley and the Daughters and Sons of the American Revolution have joined together to celebrate our Nations 250th Semi quincentennial with a variety of activities; and WHEREAS, It is fitting and proper to accord official recognition to this magnificent document and its memorable anniversary, and to the patriotic celebrations which will commemorate the occasion. NOW, THEREFORE, I, Pam Haley, Mayor of the City of Spokane Valley, on behalf of the Spokane Valley City Councilmembers, do hereby proclaim the week of September 17 through 23 as Constitution Week and I encourage all citizens to reaffirm the ideals the Framers of the Constitution had in 1787 by vigilantly protecting the freedoms guaranteed to us through this guardian of our liberties. th Dated this 16 day of September 2025. Pam Haley, Mayor CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: September 16, 2025 Department Director Approval: Check all that apply:consent old business new business public hearing information admin. Report pending legislation executive session AGENDA ITEM TITLE: Public Hearing re: Interim Ordinance 25-013, Emergency Interim Ordinance Adopting Height Restrictions for Communication Towers Used by Regional Facilities for First Responder Communication. GOVERNING LEGISLATION: RCW 35A.63.220, SVMC 22.120 PREVIOUS COUNCIL ACTION TAKEN: 7/29/2025: Adopted Interim Ordinance 25-013 and scheduled public hearing for 9/16/2025 BACKGROUND: On July 29, 2025, City Council adopted Interim Ordinance 25-013, Emergency Interim Ordinance Adopting Height Restrictions for Communication Towers Used by Regional Facilities for First Responder Communication. Interim Ordinance 25-013 declares an emergency and authorizes towers for wireless communication services to be up to 100 feet tall (up to 120 feet tall including antennae array) when used by regional facilities for first responder communication. Interim Ordinance 25-013 includes findings of fact supporting the emergency finding and adoption of the interim ordinance. After Interim Ordinance 25-013 was adopted, SREC learned that it will be unable to occupy its current facility for even the beginning of 2026. In order to continuously provide emergency communication services while the new facility is being completed, SREC was able to (1) lease administrative office space within the City, and (2) identify a facility from which it can temporarily provide regional emergency communication services beginning in 2026. This is acceptable as a short-term arrangement only because the facilities are not sufficient to ensure, over the long-term, that SREC can provide continuous reliable emergency communication services due to the size, layout, condition, and distance between the two facilities. Council adopted the following findings of fact supporting Interim Ordinance 25-013: Spokane Regional Emergency Communications (“SREC”) operates the regional 911 call center that serves the City, Spokane County, and many other areas in the region. SREC currently operates its 911 call center and primary/master emergency communications tower on land leased from the City of Spokane, which lease terminates at the end of 2025. The City of Spokane has indicated that it intends to use those premises to establish and operate its own 911 call center by an as-of-yet undetermined time in 2026. To continue providing regional emergency communication services for the City and its other member agencies, SREC needs to relocate its 911 call center and construct a new primary/master emergency wireless communications tower at a different location. The only property SREC owns that is a viable site for a new 911 call center and primary/master emergency wireless communication tower is within the City’s territorial limits, located at 12809 E. Mirabeau Parkway (hereinafter “the SREC Property”). The SREC Property is zoned as Mixed-Use. In the Mixed-Use zone, the City development code (specifically SVMC 22.120.040(K) and Table 22.120-1) prohibits tower heights from exceeding a maximum height of 60 feet, with an additional 20 feet allowed for antenna array attached to the tower. SREC will lose the ability to reliably and consistently dispatch emergency personnel to respond to all emergency calls for service throughout the region unless the primary/master communications tower construction and 911 call center renovations are completed and operational before SREC no longer has use of the existing facilities owned by the City of Spokane. SREC needs to complete construction of the new primary/master communications tower on the Property before it can be programmed to effectively communicate with SREC’s other supporting communication towers. SREC cannot construct the primary/master communications tower without first having a design for the same, and cannot design the tower to be both operationally effective and permittable by the City due to the current language of SVMC 22.120 et seq. SREC must also complete renovations to convert the existing building into SREC’s new 911 call center in order to receive and send emergency communications but cannot take on the financial burden of proceeding with construction thereof unless and until the SVMC allows emergency wireless communication towers to be at least 100 feet in height (120 feet in total height including antenna array) because it could result in waste of public taxpayer funds. City staff estimate that it will take approximately 3 to 4 months, and potentially longer, to complete all necessary processes to amend SVMC 22.120 et seq. to allow transmission communication towers up to 120 feet (including antenna array and support structures) for SREC’s purposes. Thereafter, SREC estimates it will take at least 2 months to complete design and construction of the new primary/master communication tower, and an additional 5 months thereafter to complete the necessary programming for the tower to be operational. Between now and the date by which permits would need to be issued for SREC to complete the construction and programming necessary for the new primary/master communications tower to be operational, there is not enough time for (a) the City and the City Planning Commission to complete the process required by SVMC 18.10 et seq. to amend SVMC 22.120 et seq. and (b) City Council to thereafter consider and take action on the Planning Commission’s recommendations. SREC only has a few months left on its current lease. After that time, SREC will be in jeopardy of losing access to and use of its current facilities. This risk will increase over time in 2026 as the City of Spokane builds up its 911 call center and adds staff to operate the same. If SREC does not begin designing and constructing the primary/master communications tower now, there is a tangible danger that SREC’s new facilities will not be built and operational by the time they no longer have access to their current facilities. Were this to happen, SREC would be unable to provide reliable continuous emergency communication services to its members throughout the region. Emergency communication services being unavailable for any length of time could foreseeably result in delays or non-delivery of emergency lifesaving services and therefore presents an imminent risk of harm to the health, safety, and welfare of people both in and outside the City. Interim Ordinance 25-013 is necessary for the immediate preservation and protection of the public health, safety, and welfare because it is necessary for SREC to be able to construct a new primary/master communications tower and 911 call center in time to ensure SREC can reliably provide continuous uninterrupted emergency communication services to the region and City. As an interim emergency ordinance, City Council is required to hold a public hearing to receive public testimony within 60 days after the date Council adopted the interim ordinance – i.e. July 29, 2025. See RCW 35A.63.220. In adopting Interim Ordinance 25-013, the City Council scheduled the public hearing to occur at the regularly scheduled September 16, 2025, Council meeting. Notice of the public hearing was duly published in the Spokane Valley News Herald on August 29, 2025. City Council is not required to adopt additional findings of fact after completing the public hearing. This is because City Council already adopted findings of fact supporting Interim Ordinance 25-013 when it was initially adopted. For posterity purposes, it is nonetheless appropriate to pass a resolution memorializing that the public hearing was held and affirming the previously adopted findings. OPTIONS: Conduct the public hearing. After closing the public hearing, Council may (1) advance for motion consideration Resolution No. 25-017 reaffirming the findings of fact adopted in Interim Ordinance No. 25-013, or (2) take other action as Council deems appropriate. RECOMMENDED ACTION OR MOTION: Conduct the public hearing and thereafter move to approve Resolution No. 25-017. BUDGET/FINANCIAL IMPACTS: N/A STAFF CONTACT: City Attorney Kelly Konkright _________________________________________________________________________ ATTACHMENTS: Interim Ordinance No. 25-013 adopted by City Council on 7/29/2025 Proposed Resolution No. 25-017 Reaffirming Interim Ordinance No. 25-013 and Findings of Fact Therein CITY OF SPOKANE VALLEY SPOKANE COUNTY, WASHINGTON RESOLUTION NO. 25-017 A RESOLUTION OF THE CITY OF SPOKANE VALLEY, SPOKANE COUNTY, REAFFIRMING ORDINANCE NO. 25-013 AND THE FINDINGS OF FACT THEREIN WHEREAS, the SCSO and the Fire Service Providers both contract with Spokane Regional center) formed under RCW 39.34 et seq., to receive calls for emergency response services (i.e. 911 emergency calls) and dispatch appropriate emergency personnel to respond to emergencies (hereinafter WHEREAS, SREC needs to relocate both its regional 911 call center and primary/master communications tower lease to its current facilities expires at the end of 2025 and the lessor has decided to not renew the lease; and structures greater than 60 feet in height (80 feet including the tower structure and antennae array); and WHEREAS, in order to function properly and reliably dispatch emergency personnel throughout communications tower structure must be constructed to be at least 100 feet in height without attached antenna arrays, and up to 120 feet in total height including all attached antenna arrays, such that it is able to send and receive signals free from interference of surrounding buildings, power lines, and other facilities; and WHEREAS, between now and the date by which permits would need to be issued for SREC to complete the construction and programming necessary for the new primary/master communications tower to be operational, there is not enough time for (a) the City and the City Planning Commission to complete the process required by SVMC 18.10 et seq. to amend and (b) City Council ; and WHEREAS, on July 29, 2025, the City Council used its emergency authority under RCW 35A.63.220 to prevent imminent threat to the public health, safety, and welfare, and passed Interim Ordinance No. 25-013 authorizing wireless communication tower structures to be up to 100 feet in height (120 feet including antennae array) when used by regional facilities for first responder communications; and WHEREAS, after July 29, 2025, the following has occurred: (1) SREC has learned that it will not be able to occupy its current facilities for any period of time in year 2026, and (2) in order to maintain continuous operations, SREC secured temporary administrative office space under lease within the City and a separate communications facility north of the City of Spokane from which it will be able to temporarily provide regional emergency communication services beginning in 2026, but the facilities are inadequate to reliably provide emergency communication services other than on a short-term basis due to their size, layout, condition, and distance from each other; and WHEREAS, RCW 35A.63.220 requires City Council to hold a public hearing on Interim Ordinance No. 25-013 within 60 days after adoption; and WHEREAS, Interim Ordinance No. 25-013 set the public hearing to receive testimony for September 16, 2025, beginning at 6:00pm (or as soon as can be heard thereafter) at City Council Chambers; and WHEREAS, notice for the public hearing was duly advertised in the Spokane Valley News Herald on August 29, 2025; and WHEREAS, City Council held a public hearing and received public testimony regarding Interim Ordinance No. 25-013 on September 16, 2025; NOW, THEREFORE, be it resolved by the City Council of the City of Spokane Valley, Spokane County, Washington as follows:: Section 1: Recitals Incorporated. The statements in the above recitals are incorporated herein by this reference. Section 2: Findings of Fact Reaffirmed. The City Council reaffirms the findings of fact adopted in Section 2 of Interim Ordinance 25-013. Section 3: Effective Date. This Resolution shall be effective upon adoption. Passed by the City Council this day of ____________, 2025. CITY OF SPOKANE VALLEY Pam Haley, Mayor ATTEST: Approved as to form: Marci Patterson, City Clerk Office of the City Attorney CITY OF SPOKANE VALLEY Request for Council Action Meeting Date:September 16, 2025 Check all that apply: consent old business new business public hearing information admin. report pending legislation executive session AGENDA ITEM TITLE: First Reading- Proposed Ordinance No. 25-014 related to business license threshold. GOVERNING LEGISLATION: RCW 35A.82.020; chapter 35.90 RCW; chapter 5.05 SVMC. PREVIOUS COUNCIL ACTION: On September 25, 2018, City Council adopted Ordinance No. 18-020 amending the business license code. City Council heard an administrative report on September 9, 2025. BACKGROUND: In 2017, the State Legislature adopted the Engrossed House Bill 2005, which is now codified as chapter 35.90 RCW requiring all cities to adopt a business model license ordinance, by January 1, 2019. The model business license ordinance was developed by a large group of stakeholders with input from cities around the State. The 2018 model included a mandatory definition of “engaging in business” and an Out-of-City exemption for persons or businesses whose annual value of products, gross proceeds, or gross income within a city is equal to or less than $2,000. On September 25, 2018, City Council adopted Ordinance No. 18-020 which included the exemption for Out-of-City Businesses whose annual value of products, gross proceeds of sales, or gross income of the business in the City is equal to or less than $2,000. In 2024 the model threshold was reviewed and updated by a work group of Washington cities to revise the minimum threshold for Out-of-City businesses. Effective January 1, 2026, the model threshold increases to $4,000 (from $2,000) for Out-of-City businesses. Every four years thereafter, the threshold will have an automatic periodic increase based on cumulative inflation. These mandatory changes must be adopted by cities with the effective date of January 1, 2026. Business License Service requires 75-day notice for any changes to a city’s business licensing system, effectively the City is requesting to update the threshold model amount increase by September 30, 2025. During the September 9, 2025, meeting, City Council gave consensus to move forward with the st 1 reading. RECOMMENDED ACTION OR MOTION: Move to advance to second reading, with or without further amendments. BUDGET/FINANCIAL IMPACTS: The City cannot determine potential revenue collections from the proposed change at this time STAFF CONTACT: Mike Basinger, Community and Economic Development Director ATTACHMENTS: - Proposed regulation changes to 5.05.020(D) - Proposed Ordinance No. 25-014 - Outline of Changes to Business License Model Ordinance st RCA 1 Reading Business License Threshold Model Update Page 1 of 1 Draft CITY OF SPOKANE VALLEY SPOKANE COUNTY, WASHINGTON ORDINANCE NO. 25-014 AN ORDINANCE OF THE CITY OF SPOKANE VALLEY, SPOKANE COUNTY WASHINGTON, AMENDING SPOKANE VALLEY MUNICIPAL CODE 5.05.020 PERTAINING TO THE BUSINESS LICENSE OUT-OF-CITY THRESHOLD, AND OTHER MATTERS RELATED THERETO . WHEREAS pursuant to RCW 35A.82.020 and RCW 35.22.280, the City of Spokane Valley (City) is authorized to regulate and license businesses within its boundaries; and WHEREAS, the City has adopted chapter 5.05 Spokane Valley Municipal Code (SVMC) regarding the licensing of business within the City, and WHEREAS, the City contracts with Business Licensing Services (BLS) for administering City business license registrations under chapter 5.05 SVMC; and WHEREAS, in 2017, the Washington State Legislature adopted chapter 35.90 RCW, which required the City to adopt a model threshold option for businesses located outside of the City by January 1, 2019. WHEREAS, on September 25, 2018, the City Council adopted Ordinance No. 18-020, which included the threshold for Out-of-City Businesses. WHEREAS, the model ordinance threshold for Out-of-City Businesses established in 2018 was reviewed by a work group of cities in 2024; and WHEREAS, the work group updated the threshold to $4,000 and established a mechanism for modifying the threshold in accordance with CPI every four years; and WHEREAS, cities are required to update their thresholds accordingly by January 1, 2026; and WHEREAS, on September 16, 2025, Council considered a first ordinance reading to approve the 2026 threshold increase and subsequent automatic increases based on cumulative inflation every four years; and WHEREAS, the City Council hereby determines that amending chapter 5.05 SVMC to adopt the required business model update proposed by staff is in the best interest of the City and its citizens. NOW, THEREFORE, the City Council of the City of Spokane Valley do ordain as follows: Section 1. Purpose. The purpose of this Ordinance is to amend Spokane Valley Municipal Code (SVMC) 5.05.020 related to the threshold for Out-of-City Businesses in accordance with the requirements of state law and the model ordinance. Section 2. Amend. SVMC 5.05.020 is hereby amended to read as follows:. 5.05.020 Business license registration required. Ordinance 25-014: Model Business Threshold Page 1 of 3 Draft A. Every person engaging in business shall register such person’s business with the City. License registration shall include completion of a registration request, payment of any applicable license registration fees, and receipt of endorsement or approval of the license registration application by the City. If more than one business is located on a single premises, including residential home-based businesses, separate license registrations shall be required for each separate business conducted. Businesses with more than one City location shall register each location separately. B. Valid License Registration. No person may engage in business in the City or with the City without first having obtained and being the holder of a valid annual Washington State business license registration, and a valid annual City license registration. C. The city manager is hereby authorized to enter into an agreement with the State of Washington Master License Service, its successor, or any other entity as allowed by law under which that agency shall accept and process City business license registration applications. D. Threshold for Out-of-City Businesses. For purposes of the license registration by Chapter 5.05 SVMC, any person or business whose annual value of products, gross proceeds of sales, or gross income of the business in the City is equal to or less than $4,000 and who does not maintain a place of business within the City shall submit a business license registration to the City. The threshold does not apply to regulatory license requirements or activities that require a specialized permit. The threshold amount will be adjusted every forty-eight months with the first adjustment occurring on January 1, 2030 by an amount equal to the increase in the Consumer Price Index (“CPI”) for “West Urban, All Urban Consumers” (CPI-U) for each 12-month period ending on June 30 as published by the United States Department of Labor Bureau of Labor Statistics or successor agency. To calculate this adjustment, the current rate will be multiplied by one plus the cumulative four-year (forty-eight month) CPI increase using each 12-month period ending on June 30 of each prior year and rounded to the nearest $100. However, if any of the annual CPI increases are more than five (5) percent, a five (5) percent increase will be used in computing the annual basis and if any of the annual CPI decreased during the forty-eight-month period, a zero (0) percent increase will be used in computing the annual basis. Section 3. Other sections unchanged. All other provisions of chapter 5.05 not specifically referenced hereto remain unchanged and in full force and effect. Section 4. Severability. If any section, sentence, clause, or phrase of this Ordinance shall be held to be invalid or unconstitutional by a court of competent jurisdiction, such invalidity or unconstitutionality shall not affect the validity or constitutionality of any other section, sentence, clause, or phrase of this Ordinance. Section 5. Effective Date. This Ordinance shall be in full force and effect five days after publication of this Ordinance or a summary thereof in the official newspaper of the City as provided by law. rd Passed by City Council this 23 day of September, 2025 ____________________________________ ATTEST: Pam Haley, Mayor __________________________________ Marci Patterson, City Clerk Approved as to form: Ordinance 25-014: Model Business Threshold Page 2 of 3 Draft _________________________________ Office of the City Attorney Date of Publication: _________________ Effective Date: ____________________ Ordinance 25-014: Model Business Threshold Page 3 of 3 City Business License Model Ordinance 1. Outline of Changes to Business License Model Ordinance Fggfdujwf!ebuf!up!Kbovbsz!2-!3137/! Pof.ujnf!jodsfbtf!up!b!ijhifs!uisftipme!up!%5-111!gps!pvu.pg.djuz!cvtjofttft/! 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Cvsfbv!pg!Mbcps!Tubujtujdt!ps!tvddfttps!bhfodz/!Up!dbmdvmbuf!uijt!bekvtunfou-!uif!dvssfou!sbuf!xjmm!cf! nvmujqmjfe!cz!pof!qmvt!uif!dvnvmbujwf!gpvs.zfbs!)gpsuz.fjhiu!npoui*!DQJ!jodsfbtf!vtjoh!fbdi!23.npoui! qfsjpe!foejoh!po!Kvof!41!pg!fbdi!qsjps!zfbs-!boe!spvoefe!up!uif!ofbsftu!%211/!Ipxfwfs-!jg!boz!pg!uif! boovbm!DQJ!jodsfbtft!bsf!npsf!uibo!gjwf!)6*!qfsdfou-!b!gjwf!)6*!qfsdfou!jodsfbtf!xjmm!cf!vtfe!jo! dpnqvujoh!uif!boovbm!cbtjt!boe!jg!boz!pg!uif!boovbm!DQJ!efdsfbtfe!evsjoh!uif!gpsuz.fjhiu.npoui!qfsjpe-! b!{fsp!)1*!qfsdfou!jodsfbtf!xjmm!cf!vtfe!jo!dpnqvujoh!uif!boovbm!cbtjt/! ! \\Opuf;!Djuz!xpvme!mjtu!uijt!gff.gsff!mjdfotf!jo!jut!cvtjoftt!mjdfotf!sbuft!tfdujpo!bt!%1!ps!op!gff/^! 4/!Background Information !Npefm!uisftipme!xbt!sfrvjsfe!cz!3128!mfhjtmbujpo!)SDX!46/:1/191;!Bepqujpo!pg!npefm!psejobodf*!up! beesftt!pvu.pg.djuz!mjdfotjoh0efmjwfsz!dpodfsot/! !3129!gjobm!sfdpnnfoebujpo!xbt!%3111!gps!pvu.pg.djuz!cvtjofttft-!xjui!pqujpo!up!sfrvjsf!op.gff! sfhjtusbujpo!pomz!sfrvjsfnfou!cfmpx!uisftipme/! !Dibohft!nvtu!cf!bepqufe!cz!djujft!xjui!tbnf!fggfdujwf!ebuf!)SDX!46/:1/191)2*)d**/! !Npefm!dboopu!cf!vqebufe!npsf!gsfrvfoumz!uibo!fwfsz!5!zfbst/! !! Spokane Valley Municipal Code Page1/1 5.05.020 Business license registration required. A. Home Businesses. The following supplemental regulations apply to all home businesses. A. Every person engaging in business shall register such person’s business with the City. License registration shall include completion of a registration request, payment of any applicable license registration fees, and receipt of endorsement or approval of the license registration application by the City. If more than one business is located on a single premises, including residential home-based businesses, separate license registrations shall be required for each separate business conducted. Businesses with more than one City location shall register each location separately. B. Valid License Registration. No person may engage in business in the City or with the City without first having obtained and being the holder of a valid annual Washington State business license registration, and a valid annual City license registration. C. The city manager is hereby authorized to enter into an agreement with the State of Washington Master License Service, its successor, or any other entity as allowed by law under which that agency shall accept and process City business license registration applications. D. Threshold for Out-of-City Businesses. For purposes of the license registration by Chapter 5.05 SVMC, any person or business whose annual value of products, gross proceeds of sales, or gross income of the business in the City is equal to or less than $2,000 $4,000 and who does not maintain a place of business within the City shall submit a business license registration to the City. The threshold does not apply to regulatory license requirements or activities that require a specialized permit. The threshold amount will be adjusted every forty-eight months with the first adjustment occurring on January 1, 2030 by an amount equal to the increase in the Consumer Price Index (“CPI”) for “West Urban, All Urban Consumers” (CPI-U) for each 12-month period ending on June 30 as published by the United States Department of Labor Bureau of Labor Statistics or successor agency. To calculate this adjustment, the current rate will be multiplied by one plus the cumulative four-year (forty-eight month) CPI increase using each 12-month period ending on June 30 of each prior year and rounded to the nearest $100. However, if any of the annual CPI increases are more than five (5) percent, a five (5) percent increase will be used in computing the annual basis and if any of the annual CPI decreased during the forty-eight-month period, a zero (0) percent increase will be used in computing the annual basis. The Spokane Valley Municipal Code is current through Ordinance No. 24-019, and legislation passed through February 4, 2025. CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: Sept. 16, 2025 Department Director Approval: Check all that apply: consent old business new business public hearing information admin. report pending legislation executive session AGENDA ITEM TITLE: Tourism Promotion Area (TPA) 2026 Budget and Work Plan GOVERNING LEGISLATION: Chapter 3.21 SVMC, RCW 35.101 PREVIOUS COUNCIL ACTION TAKEN: On May 2, 2023, City Council approved a motion to authorize the City Manager or designee to execute a contract for $44,045 in TPA revenue with 116 & West to develop a five-year Destination Marketing Strategic Plan. On June 20, 2023, City Council authorized the City Manager or designee to execute a contract with Spokane Sports for $300,000 in TPA revenue to provide sports recruitment and marketing services for 2023. The Spokane Sports contract can be renewed annually through 2027. August 15, 2023, City Council received the 2023 TPA Summary Report outlining activities and related work completed by Community and Economic Development (CED) Department staff and the TPA Commission between Jan. 1, 2023, and August 31, 2023. On Sept. 19, 2023, City Council approved the five-year plan and authorized the City Manager or designee to execute a contract with 116 & West for $813,500 in TPA revenue to provide destination marketing services for 16 months through December 31, 2024. This 116 & West contract can be renewed annually through 2027. On Dec 12, 2023, Council approved a motion to authorize the City Manager or designee to execute a contract amendment with Spokane Sports for $400,000 in TPA revenue to provide sports recruitment and marketing services in 2024. On May 7, 2024, Council approved an amendment to the contract with 116 & West to spend an additional $466,000 in TPA revenue for additional marketing services in 2024. On August 27, 2024, Council received a TPA Summary Report for July 1, 2023, through June 30, 2024 that outlined activities and related work completed by the CED Department and TPA Commission. City code requires that a report be provided to Council prior to the adoption of the following year’s budget and work plan. On Sept. 10, 2024, Council approved a 2025 TPA Budget of $1,275,000 and Work Plan to utilize the consultants $116 & West and Spokane Sports to perform TPA marketing services. On Nov. 12, 2024, Council approved a motion to authorize the City Manager or designee to execute a 2025 contract amendment with Spokane Sports for $400,000 in TPA revenue to provide sports recruitment and marketing services in 2025; and to execute a 2025 contract amendment with 116 & West to spend $875,000 for destination marketing services. Both agreements with Spokane Sports and 116 & West contract can be renewed annually through amendment through 2027. On Sept. 2, 2025, City Council received the TPA Summary Report July 2024 - June 2025 as an information-item in the meeting packet. The report outlines activities and projects completed by the Community and Economic Development Department and contracted 1 consultants during the 12-month period. City code requires that the report be provided to Council prior to the adoption of the following year’s budget and work plan. On Sept. 9, 2025, Council heard a presentation regarding the proposed 2026 TPA Budget of $1,775,000 and Work Plan to utilize current contracted consultants, develop an Opportunity Fund and purchase technology services to support destination marketing and sports recruitment and marketing in 2026. Council recommended by consensus that staff bring forth a motion to approve the 2026 Budget and Work Plan. BACKGROUND: City Council received the TPA Summary Report July 2024 – June 2025 as an informational item in the Sept. 2, 2025, meeting packet. This report summarized revenues, expenditures, and marketing initiatives during the 12-month period. Spokane Valley Municipal Code 3.21 requires that the Hotel Commission, a recommending body for expenditures of TPA revenue, provides an annual written summary report to City Council prior to the adoption of the TPA Budget and Work Plan for the following year. The Annual Budget and Work Plan must be presented to Council by Sept. 30. The TPA Hotel Commission heard a presentation from city staff at its August 21 meeting regarding the proposed 2026 TPA Budget and Work Plan. City staff recommended $1,325,000 in TPA funds be made available in 2026 for destination marketing and event recruitment services. This budget was based on projected tourism travel and historical revenue generation. In addition, city staff recommended that $450,000 in 2025 carryover TPA funds be added to 2026 funds, resulting in a total 2026 TPA budget of $1,775,000. Regarding the 2026 Work Plan, City staff recommended the following: Amend consultant agreements with 116 & West and Spokane Sports to extend their services through 2026. Utilize a portion of TPA revenue in 2026 to establish and implement an “Opportunity Fund” to support events and venues that generate overnight visitors. Utilize a portion of funding to support the purchase of technology services that would provide place-based and financial data to help determine the geographical reach and economic impact of events or venues. The TPA Hotel Commission unanimously recommended that the 2026 TPA Budget and Work Plan as presented by staff be forwarded to City Council for consideration. If City Council approves the 2026 Budget and Work Plan as presented, CED staff will: Coordinate with the TPA Commission at its September 25 meeting regarding anticipated scope and fee proposals for 2026 TPA funds, including the proposed Opportunity Fund. Develop detailed scope and fee proposals for 2026 TPA funds from 116 & West, Spokane Sports, and from CED staff for an Opportunity Fund and technology services, to the TPA Commission for consideration on October 16. Provide scope and fee proposals for 2026 TPA funds to City Council in an administrative presentation in late October or early November. OPTIONS: Move to approve the 2026 TPA Budget of $1,775,000 and Work Plan as presented, or take other action. 2 RECOMMENDED ACTION OR MOTION: Move to approve the 2026 TPA Budget of $1,775,000 and Work Plan as presented. BUDGET/FINANCIAL IMPACTS: Expenditures of $1,775,000 to support TPA programs will come from Fund 109 – Tourism Promotion Area Fund. The city’s Finance Department is projecting TPA revenues of about $1,300,000 in 2026, and through a future budget amendment could carry over approximately $450,000 in 2025 revenue into the 2026 budget. STAFF CONTACT: Lesli Brassfield, Tourism and Marketing Manager ATTACHMENTS: Proposed 2026 TPA Budget and Work Plan 3 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: September 16, 2025 Department Director Approval: Check all that apply: consent old business new business public hearing information admin. report pending legislation executive session AGENDA ITEM TITLE: Motion Consideration: Purdue and Sackler Settlement GOVERNING LEGISLATION: SVMC 2.15.020. PREVIOUS COUNCIL ACTION TAKEN: (1) April 26, 2022 Approval of One Washington MOU; (2) July 19, 2022 - opioid distributors (“Settlement I”); (3) March 21, 2023 - pharmacies and manufacturers (“Settlement II”); (4) August 29, 2023 – MOU Establishing Opioid Abatement Council; and (5) April 30, 2024 - Johnson & Johnson; (6) July 16, 2024 – Kroger; (7) September 9, 2025 – Administrative Report: Purdue and Secondary Manufacturer Opioid Settlements. BACKGROUND: Over the course of the previous three years, the State of Washington and litigating local jurisdictions secured settlements against various entities involved in the production, sale, and distribution of opioids. City Council chose to participate in each of the settlements secured by the State of Washington against various entities contributing to the opioid crisis, which include the following: The distributors settlement (“Settlement I”). The City is expected to receive a total of $140,844.29 through 2038, with payments ranging from $5,773 to $9,727.98 per year. The pharmacies and manufactures settlement (“Settlement II”). The City anticipates receiving a total amount similar to Settlement I over the course of 15 years. The national opioid settlement administrator has yet to provide the exact breakdown for local governments for Settlement II; however, estimates from the Attorney General show that the City is expected to receive a total of $140,021.39 through 2037 with payments ranging from $3,152.36 to $11,784.51 per year. The Johnson & Johnson settlement (“Settlement III”), included a one-time payment of $37,680.96 to the City. The Kroger settlement (“Settlement IV). Estimates from the Attorney General show that the City is expected to receive a total of $15,342.32 through 2035 with payments ranging from $1,256.81 to $1,478.60 per year. In addition, a class-action lawsuit against McKinsey & Company was finalized in February 2024. Entities that entered into prior settlements were eligible to automatically receive funds from the McKinsey settlement. The City received $2,895.79 from the McKinsey settlement in September, 2024. Purdue and Sackler Settlement The new Purdue Pharmaceuticals and Sackler Family settlement will include payments to the State of Washington of approximately $105.6 million over the course of 15 years. The City is expected to receive approximately $33,958.46 after attorneys fees. The deadline to opt-in and send the required documentation to participate in the proposed settlement is September 30, 2025. Purdue Pharmaceuticals is currently in bankruptcy proceedings, which has complicated the settlement of the claims. Of note, the United States Supreme Court overturned a Chapter 11 Plan of Reorganization from 2021 sending the proceedings back to the Bankruptcy Court. This year, the debtors presented a new Plan of Reorganization to the Bankruptcy Court for approval. The City has the option of voting to accept or reject the bankruptcy plan, but voting does not affect the City’s ability to participate in the settlement. The votes will be considered by the Bankruptcy Court in determining whether to confirm or reject the plan. The City is not represented in these proceedings, but nevertheless participates as one of the defined class members. Secondary Manufacturer’s Settlement In addition to the Purdue Pharmaceuticals settlement, there is a new settlement with eight manufacturers including Alvogen, Amneal, Apotex, Kima, Indivior, Mylan, Sun and Zydus (the “Secondary Manufacturers Settlement”). The deadline to opt-in and send the required documentation to participate in the proposed settlement is October 8, 2025. The State is expected to receive approximately $16.6 million over the course of 10 years. The City is expected to receive approximately $5,338.26 after attorneys fees. The amounts above for both proposed settlements assume participation by every eligible jurisdiction. If participation decreases, the overall share for local governments may also decrease. Thus far, all eligible local jurisdictions have participated in the prior settlements. Similar to the other settlements, the City is required to execute the respective Settlement Participation Forms, as well as an Allocation Agreement in order to receive funds from the Purdue/Sackler Settlement and the Secondary Manufacturers Settlement. Without the Settlement Participation Forms and the releases therein, the City will not receive any funds. The City may be able to seek damages separate and apart from the settlement if it does not participate, but the City Attorney’s office does not recommend that course of action given the time, expense, and the uncertain success of such claims. According to the Attorney General’s calculation for participating local jurisdictions, the total amount the City is expected to receive from all settlements is approximately $395,990.88. In total, the City has received approximately $121,148.36 from the settlements to date. City Council recently approved an agreement with the Spokane Regional Health District (“SRHD”) to expand their opioid dashboard ($16,900), and conduct a needs assessment for the City ($40,300). City Council also provided consensus to enter into an agreement supporting the County’s Spokane Regional Crisis Stabilization Center expansion, which is currently being reviewed by the County. The City Council discussed these new settlements at an administrative report on September 9, 2025. There are two motions under consideration, one for each settlement. OPTIONS: (1) Move to approve the Purdue bankruptcy Plan of Reorganization, participate in the Purdue and Sackler Settlement, and authorize the City Manager or designee to finalize and execute all necessary documents regarding the same; and (2) move to participate in the Secondary Manufacturers Settlements and authorize the City Manager or designee to finalize and execute all documents regarding the same; or take other action as deemed appropriate. RECOMMENDED ACTION OR MOTION: (1) I move that the City vote to approve the Purdue bankruptcy Plan of Reorganization, participate in the Purdue and Sackler Settlement, and authorize the City Manager or designee to finalize and execute all necessary documents regarding the same. (2) I move to participate in the Secondary Manufacturers Settlements and authorize the City Manager or designee to finalize and execute all documents regarding the same BUDGET/FINANCIAL IMPACTS: To date, the City has received approximately $121,148.36 as a result of the opioid settlements. These funds must be used for opioid remediation purposes. STAFF CONTACT: Kelly Konkright, City Attorney Tony Beattie, Senior Deputy City Attorney ___________________________________________________________________________ ATTACHMENTS: Purdue Settlement Participation Form Secondary Manufacturer’s Settlement Participation Form Allocation Agreement IV Due to the number of pages the full settlement agreements and Plan of Reorganization Disclosure Statements are available in electronic format at www.nationalopioidsettlement.com and https://restructuring.ra.kroll.com/purduepharma/Home- DocketInfo?DocAttribute=4218&DocAttrName=PlanDisclosureStatement&MenuID=9013&AttributeNa me=Plan%20%26%20Disclosure%20Statement. CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: September 16, 2025 Department Director Approval: Check all that apply: consent old business new business public hearing information admin. report pending legislation executive session AGENDA ITEM TITLE: Motion Consideration: Secondary Manufacturers Opioid Settlement GOVERNING LEGISLATION: SVMC 2.15.020. PREVIOUS COUNCIL ACTION TAKEN: (1) April 26, 2022 Approval of One Washington MOU; (2) July 19, 2022 - opioid distributors (“Settlement I”); (3) March 21, 2023 - pharmacies and manufacturers (“Settlement II”); (4) August 29, 2023 – MOU Establishing Opioid Abatement Council; and (5) April 30, 2024 - Johnson & Johnson; (6) July 16, 2024 – Kroger; (7) September 9, 2025 – Administrative Report: Purdue and Secondary Manufacturer Opioid Settlements. BACKGROUND: Over the course of the previous three years, the State of Washington and litigating local jurisdictions secured settlements against various entities involved in the production, sale, and distribution of opioids. City Council chose to participate in each of the settlements secured by the State of Washington against various entities contributing to the opioid crisis, which include the following: The distributors settlement (“Settlement I”). The City is expected to receive a total of $140,844.29 through 2038, with payments ranging from $5,773 to $9,727.98 per year. The pharmacies and manufactures settlement (“Settlement II”). The City anticipates receiving a total amount similar to Settlement I over the course of 15 years. The national opioid settlement administrator has yet to provide the exact breakdown for local governments for Settlement II; however, estimates from the Attorney General show that the City is expected to receive a total of $140,021.39 through 2037 with payments ranging from $3,152.36 to $11,784.51 per year. The Johnson & Johnson settlement (“Settlement III”), included a one-time payment of $37,680.96 to the City. The Kroger settlement (“Settlement IV). Estimates from the Attorney General show that the City is expected to receive a total of $15,342.32 through 2035 with payments ranging from $1,256.81 to $1,478.60 per year. In addition, a class-action lawsuit against McKinsey & Company was finalized in February 2024. Entities that entered into prior settlements were eligible to automatically receive funds from the McKinsey settlement. The City received $2,895.79 from the McKinsey settlement in September, 2024. Purdue and Sackler Settlement The new Purdue Pharmaceuticals and Sackler Family settlement will include payments to the State of Washington of approximately $105.6 million over the course of 15 years. The City is expected to receive approximately $33,958.46 after attorneys fees. The deadline to opt-in and send the required documentation to participate in the proposed settlement is September 30, 2025. Purdue Pharmaceuticals is currently in bankruptcy proceedings, which has complicated the settlement of the claims. Of note, the United States Supreme Court overturned a Chapter 11 Plan of Reorganization from 2021 sending the proceedings back to the Bankruptcy Court. This year, the debtors presented a new Plan of Reorganization to the Bankruptcy Court for approval. The City has the option of voting to accept or reject the bankruptcy plan, but voting does not affect the City’s ability to participate in the settlement. The votes will be considered by the Bankruptcy Court in determining whether to confirm or reject the plan. The City is not represented in these proceedings, but nevertheless participates as one of the defined class members. Secondary Manufacturer’s Settlement In addition to the Purdue Pharmaceuticals settlement, there is a new settlement with eight manufacturers including Alvogen, Amneal, Apotex, Kima, Indivior, Mylan, Sun and Zydus (the “Secondary Manufacturers Settlement”). The deadline to opt-in and send the required documentation to participate in the proposed settlement is October 8, 2025. The State is expected to receive approximately $16.6 million over the course of 10 years. The City is expected to receive approximately $5,338.26 after attorneys fees. The amounts above for both proposed settlements assume participation by every eligible jurisdiction. If participation decreases, the overall share for local governments may also decrease. Thus far, all eligible local jurisdictions have participated in the prior settlements. Similar to the other settlements, the City is required to execute the respective Settlement Participation Forms, as well as an Allocation Agreement in order to receive funds from the Purdue/Sackler Settlement and the Secondary Manufacturers Settlement. Without the Settlement Participation Forms and the releases therein, the City will not receive any funds. The City may be able to seek damages separate and apart from the settlement if it does not participate, but the City Attorney’s office does not recommend that course of action given the time, expense, and the uncertain success of such claims. According to the Attorney General’s calculation for participating local jurisdictions, the total amount the City is expected to receive from all settlements is approximately $395,990.88. In total, the City has received approximately $121,148.36 from the settlements to date. City Council recently approved an agreement with the Spokane Regional Health District (“SRHD”) to expand their opioid dashboard ($16,900), and conduct a needs assessment for the City ($40,300). City Council also provided consensus to enter into an agreement supporting the County’s Spokane Regional Crisis Stabilization Center expansion, which is currently being reviewed by the County. The City Council discussed these new settlements at an administrative report on September 9, 2025. There are two motions under consideration, one for each settlement. OPTIONS: (1) Move to approve the Purdue bankruptcy Plan of Reorganization, participate in the Purdue and Sackler Settlement, and authorize the City Manager or designee to finalize and execute all necessary documents regarding the same; and (2) move to participate in the Secondary Manufacturers Settlements and authorize the City Manager or designee to finalize and execute all documents regarding the same; or take other action as deemed appropriate. RECOMMENDED ACTION OR MOTION: (1) I move that the City vote to approve the Purdue bankruptcy Plan of Reorganization, participate in the Purdue and Sackler Settlement, and authorize the City Manager or designee to finalize and execute all necessary documents regarding the same. (2) I move to participate in the Secondary Manufacturers Settlements and authorize the City Manager or designee to finalize and execute all documents regarding the same BUDGET/FINANCIAL IMPACTS: To date, the City has received approximately $121,148.36 as a result of the opioid settlements. These funds must be used for opioid remediation purposes. STAFF CONTACT: Kelly Konkright, City Attorney Tony Beattie, Senior Deputy City Attorney ___________________________________________________________________________ ATTACHMENTS: Purdue Settlement Participation Form Secondary Manufacturer’s Settlement Participation Form Allocation Agreement IV Due to the number of pages the full settlement agreements and Plan of Reorganization Disclosure Statements are available in electronic format at www.nationalopioidsettlement.com and https://restructuring.ra.kroll.com/purduepharma/Home- DocketInfo?DocAttribute=4218&DocAttrName=PlanDisclosureStatement&MenuID=9013&AttributeNa me=Plan%20%26%20Disclosure%20Statement. Purdue Settlement Participation Form EXHIBIT K Subdivision Participation and Release Form Governmental Entity: State: Authorized Official: Address 1: Address 2: City, State, Zip: Phone: Email: Governmental Entity order to obtain and in consideration for the benefits provided to the Governmental Entity pursuant to that certain Governmental Entity & Shareholder Direct Settlement Agreement accompanying this 1 participation form (the Agreement, and acting through the undersigned authorized official, hereby elects to participate in the Agreement, grant the releases set forth below, and agrees as follows. 1. The Governmental Entity is aware of and has reviewed the Agreement, and agrees that by executing this Participation and Release Form, the Governmental Entity elects to participate in the Agreement and become a Participating Subdivision as provided therein. 2. The Governmental Entity shall promptly after the Effective Date, and prior to the filing of the Consent Judgment, dismiss with prejudice any Shareholder Released Claims and Released Claims that it has filed. With respect to any Shareholder Released Claims and Released Claims pending in In re National Prescription Opiate Litigation, MDL No. 2804, on behalf of the Governmental Entity a Stipulation of Dismissal with Prejudice substantially in the form found at https://nationalopioidsettlement.com. 3. The Governmental Entity agrees to the terms of the Agreement pertaining to Participating Subdivisions as defined therein. 4. By agreeing to the terms of the Agreement and becoming a Releasor, the Governmental Entity is entitled to the benefits provided therein, including, if applicable, monetary payments beginning following the Effective Date. 5. The Governmental Entity agrees to use any monies it receives through the Agreement solely for the purposes provided therein. 6. The Governmental Entity submits to the jurisdiction of the court in the Governmental as and to the extent provided in, and for resolving disputes to the extent provided in, the 1 Capitalized terms used in this Exhibit K but not otherwise defined in this Exhibit K have the meanings given to them in the Agreement or, if not defined in the Agreement, the Master Settlement Agreement. K-1 Agreement. The Governmental Entity likewise agrees to arbitrate before the National Arbitration Panel as provided in, and for resolving disputes to the extent otherwise provided in, the Agreement. 7. The Governmental Entity has the right to enforce the Agreement as provided therein. 8. The Governmental Entity, as a Participating Subdivision, hereby becomes a Releasor for all purposes in the Agreement, including without limitation all provisions of Article 10 (Release), and along with all departments, agencies, divisions, boards, commissions, districts, instrumentalities of any kind and attorneys, and any person in his or her official capacity whether elected or appointed to serve any of the foregoing and any agency, person, or other entity claiming by or through any of the foregoing, and any other entity identified in the definition of Subdivision Releasor, to the maximum extent of its authority, for good and valuable consideration, the adequacy of which is hereby confirmed, the Shareholder Released Parties and Released Parties are, as of the Effective Date, hereby released and forever discharged by the Governmental Entity and its Subdivision Releasors from: any and all Causes of Action, including, without limitation, any Estate Cause of Action and any claims that the Governmental Entity or its Subdivision Releasors would have presently or in the future been legally entitled to assert in its own right (whether individually or collectively), notwithstanding section 1542 of the California Civil Code or any law of any jurisdiction that is similar, comparable or equivalent thereto (which shall conclusively be deemed waived), whether existing or hereinafter arising, in each case, (A) directly or indirectly based on, arising out of, or in any way relating to or concerning, in whole or in part, (i) the Debtors, as such Entities existed prior to or after the Petition Date, and their Affiliates, (ii) the Estates, (iii) the Chapter 11 Cases, or (iv) Covered Conduct and (B) as to which any conduct, omission or liability of any Debtor or any Estate is the legal cause or is otherwise a legally relevant factor (each such release, as it pertains to the Shareholder ReleaseShareholder Released Claims Released Claims. For the avoidance of doubt and without limiting the foregoing: the Shareholder Released Claims and Released Claims include any Cause of Action that has been or may be asserted against any Shareholder Released Party or Released Party by the Governmental Entity or its Subdivision Releasors (whether or not such party has brought such action or proceeding) in any federal, state, or local action or proceeding (whether judicial, arbitral, or administrative) (A) directly or indirectly based on, arising out of, or in any way relating to or concerning, in whole or in part, (i) the Debtors, as such Entities existed prior to or after the Petition Date, and their Affiliates, (ii) the Estates, (iii) the Chapter 11 Cases, or (iv) Covered Conduct and (B) as to which any conduct, omission or liability of any Debtor or any Estate is the legal cause or is otherwise a legally relevant factor. 9. As a Releasor, the Governmental Entity hereby absolutely, unconditionally, and irrevocably covenants not to bring, file, or claim, or to cause, assist or permit to be brought, filed, or claimed, or to otherwise seek to establish liability for any Shareholder Released Claims or Released Claims against any Shareholder Released Party or Released Party in any forum whatsoever, subject in all respects to Section 9.02 of the Master Settlement Agreement. The releases provided for herein holder Released K-2 are intended by the Governmental Entity and its Subdivision Releasors to be broad and shall be interpreted so as to give the Shareholder Released Parties and Released Parties the broadest possible release of any liability relating in any way to Shareholder Released Claims and Released Claims and extend to the full extent of the power of the Governmental Entity to release claims. The Agreement shall be a complete bar to any Shareholder Released Claim and Released Claims. 10. Parties and the Released Parties are, as of the Effective Date, hereby released and discharged from any and all Shareholder Released Claims and Released Claims of the Subdivision Releasors. 11. The Governmental Entity hereby takes on all rights and obligations of a Participating Subdivision as set forth in the Agreement. 12. In connection with the releases provided for in the Agreement, each Governmental Entity expressly waives, releases, and forever discharges any and all provisions, rights, and benefits conferred by any law of any state or territory of the United States or other jurisdiction, or principle of common law, which is similar, comparable, or equivalent to § 1542 of the California Civil Code, which reads: General Release; extent. A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release that, if known by him or her, would have materially affected his or her settlement with the debtor or released party. A Releasor may hereafter discover facts other than or different from those which it knows, believes, or assumes to be true with respect to the Shareholder Released Claims or such other Claims released pursuant to this release, but each Governmental Entity hereby expressly waives and fully, finally, and forever settles, releases and discharges, upon the Effective Date, any and all Shareholder Released Claims or such other Claims released pursuant to this release that may exist as of such date but which Releasors do not know or suspect to exist, whether through ignorance, oversight, error, negligence or through no fault decision to participate in the Agreement. 13. Nothing herein is intended to modify in any way the terms of the Agreement, to which Governmental Entity hereby agrees. To the extent any portion of this Participation and Release Form not relating to the release of, or bar against, liability is interpreted differently from the Agreement in any respect, the Agreement controls. 14. Notwithstanding anything to the contrary herein or in the Agreement, (x) nothing herein shall (A) release any Excluded Claims or (B) be construed to impair in any way the rights and obligations of any Person under the Agreement; and (y) the Releases set forth herein shall be subject to being deemed void to the extent set forth in Section 9.02 of the Master Settlement Agreement. K-3 I have all necessary power and authorization to execute this Participation and Release Form on behalf of the Governmental Entity. Signature: _____________________________ Name: _____________________________ Title: _____________________________ Date: _____________________________ K-4 Secondary Manufacturer’s Settlement Participation Form EXHIBIT K Secondary Manufacturers’ Combined Subdivision Participationand ReleaseForm (“Combined 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 each of the settlements which are listed in paragraph 1 below (each a “Secondary Manufacturer’s Settlement” and collectively, “the Secondary Manufacturers’ Settlements”), and acting through the undersigned authorized official, hereby elects to participate in each of the Secondary Manufacturers’ Settlements, release all Released Claims against all Released Entities in each of the Secondary Manufacturers’ Settlements, and agrees as follows. 1. The Participating Entity hereby elects to participate in each of the following Secondary Manufacturers’ Settlements as a Participating Entity: a. Settlement Agreement for Alvogen, Inc. dated April 4, 2025. b. Settlement Agreement for Apotex Corp. dated April 4, 2025. c. Settlement Agreement for Amneal PharmaceuticalsLLCdated April 4, 2025. d. Settlement Agreement for Hikma Pharmaceuticals USA Inc. dated April 4, 2025. e. Settlement Agreement for Indivior Inc. dated April 4, 2025. f. Settlement Agreement for Viatris Inc. (“Mylan”) dated April 4, 2025. h. Settlement Agreement for Sun Pharmaceutical Industries, Inc. dated April 4, 2025. i. Settlement Agreement for Zydus Pharmaceuticals (USA) Inc. dated April 4, 2025. 2. The Governmental Entity is aware of and has reviewed each of the Secondary Manufacturers’ Settlements, understands that all capitalized terms not defined in this Combined Participation Form have the meanings defined in each of the Secondary Manufacturers’ Settlements, and agrees that by executing this Combined Participation Form, the Governmental Entity elects to participate in each of the Secondary Manufacturers’ Settlements and become a Participating Subdivision as provided in each of the Secondary Manufacturers’ Settlements. 3. The Governmental Entity shall promptly, and in any event no later than 14 days after the Reference Date and prior to the filing of the Consent Judgment, dismiss with prejudice any Released Claims that it has filed against any Released Entity in each of the Secondary Manufacturers’ Settlements. With respect to any Released Claims pending in In re National Prescription Opiate Litigation, MDL No. 2804, the Governmental Entity K-1 authorizes the Plaintiffs’ Executive Committee to execute and file on behalf of the Governmental Entity a Stipulation of Dismissal with Prejudicefor each of the manufacturers listed in paragraph 1 above substantially in the form found at https://nationalopioidsettlement.com/additional-settlements/. 4. The Governmental Entity agrees to the terms of each of the Secondary Manufacturers’ Settlements pertaining to Participating Subdivisions as defined therein. 5. By agreeing to the terms of each of the Secondary Manufacturers’ Settlements and becoming a Releasor, the Governmental Entity is entitled to the benefits provided therein, including, if applicable, monetary payments beginning after the Effective Date. 6. The Governmental Entity agrees to use any monies it receives through each of the Secondary Manufacturers’ Settlements solely for the purposes provided therein. 7. The Governmental Entity submits to the jurisdiction of the court and agrees to follow the process for resolving any disputes related to each Secondary Manufacturer’s Settlement as 1 described in each of the Secondary Manufacturers’ Settlements. 8. The Governmental Entity has the right to enforce each of the Secondary Manufacturers’ Settlements as provided therein. 9. The Governmental Entity, as a Participating Subdivision, hereby becomes a Releasor for all purposes in each of the Secondary Manufacturers’ Settlements, including without 2 limitation all provisions related to release of any claims, and along with all departments, agencies, divisions, boards, commissions, districts, instrumentalities of any kind and attorneys, and any person in his or her official capacity whether elected or appointed to serve any of the foregoing and any agency, person, or other entity claiming by or through any of the foregoing, and any other entity identified in the definition of Releasor, provides for a release to the fullest extent of its authority. As a Releasor, the Governmental Entity hereby absolutely, unconditionally, and irrevocably covenants not to bring, file, or claim, or to cause, assist or permit to be brought, filed, or claimed, or to otherwise seek to establish liability for any Released Claims against any Released Entity in each of the Secondary Manufacturers’ Settlements in any forum whatsoever. The releases provided for in each of the Secondary Manufacturers’ Settlements are intended by the Parties to be broad and shall be interpreted so as to give the Released Entities in each of the Secondary Manufacturers’ Settlements the broadest possible bar against any liability relating in any 1 See Settlement Agreement for Alvogen, Inc. Section VII.F.2; Settlement Agreement for Apotex Corp. Section VII.F.2; Settlement Agreement for Amneal Pharmaceuticals LLC Section VII.F.2; Settlement Agreement for Hikma Pharmaceuticals USA Inc. Section VII.F.2; Settlement Agreement for Indivior Section VI.F.2; Settlement Agreement for Mylan Section VI.F.2; Settlement Agreement for Sun Pharmaceutical Industries, Inc. Section VII.F.2; Settlement Agreement for Zydus Pharmaceuticals (USA) Inc. Section VII.F.2. 2 See Settlement Agreement for Alvogen, Inc. Section XI; Settlement Agreement for Amneal Pharmaceuticals LLC Section X; Settlement Agreement for Apotex Corp. Section XI; Settlement Agreement for Hikma Pharmaceuticals USA Inc. Section XI; Settlement Agreement for Indivior Section X; Settlement Agreement for Mylan Section X; Settlement Agreement for Sun Pharmaceutical Industries, Inc. Section XI; Settlement Agreement for Zydus Pharmaceuticals (USA) Inc. Section XI. K-2 way to Released Claims and extend to the full extent of the power of the Governmental Entity to release claims. Each of the Secondary Manufacturers’ Settlementsshall be a complete bar to any Released Claim against that manufacturer’s Released Entities. 10. The Governmental Entity hereby takes on all rights and obligations of a Participating Subdivision as set forth in each of the Secondary Manufacturers’ Settlements. 11. In connection with the releases provided for in each ofthe Secondary Manufacturers’ Settlements, each Governmental Entity expressly waives, releases, and forever discharges any and all provisions, rights, and benefits conferred by any law of any state or territory of the United States or other jurisdiction, or principle of common law, which is similar, comparable, or equivalent to § 1542 of the California Civil Code, which reads: General Release; extent. A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release that,if known by him or her would have materially affected his or her settlement with the debtor or released party. A Releasor may hereafter discover facts other than or different from those which it knows, believes, or assumes to be true with respect to the Released Claims in each of the Secondary Manufacturers’ Settlements, but each Governmental Entity hereby expressly waives and fully, finally, and forever settles, releases and discharges, upon the Effective Date, any and all Released Claims that may exist as of such date but which Releasors do not know or suspect to exist, whether through ignorance, oversight, error, negligence or through no fault whatsoever, and which, if known, would materially affect the Governmental Entities’ decision to participate in each of the Secondary Manufacturers’ Settlements. 12. The Governmental Entity understands and acknowledges that each of the Secondary Manufacturers’ Settlements is an independent agreement with its own terms and conditions. Nothing herein is intended to modify in any way the terms of any ofthe Secondary Manufacturers’ Settlements, to which Governmental Entity hereby agrees, aside from the exceptions in paragraph 13 below. To the extent this Combined Participation Form is interpreted differently from any of theSecondary Manufacturers’ Settlementsin any respect, theindividual Secondary Manufacturer’s Settlement controls. 13. For the avoidance of doubt, in the event that some but not all of the Secondary Manufacturers’ Settlements proceed past their respective Reference Dates, all releases and other commitments or obligations shall become void only as to those Secondary Manufacturers’ Settlements that fail to proceed past their Reference Dates. All releases and other commitments or obligations (including those contained in this Combined Participation Form) shall remain in full effect as to each Secondary Manufacturer’s Settlement that proceeds past its Reference Date, and this Combined Participation Form need not be modified, returned, or destroyed as long as any Secondary Manufacturer’s Settlement proceeds past its Reference Date. K-3 I have all necessary power and authorization to execute this Combined ParticipationForm on behalf of the Governmental Entity. Signature: _____________________________ Name: _____________________________ Title: _____________________________ Date: _____________________________ K-4 Allocation Agreement IV WASHINGTON STATE ALLOCATION AGREEMENT GOVERNING THE ALLOCATION OF FUNDS PAID BY THE PURDUE BANKRUPTCY, SACKLERS, AND CERTAIN OPIOID MANUFACTURERS JULY 24, 2025 This Washington State Allocation Agreement Governing the Allocation of Funds Paid by the Purdue Bankruptcy, Sacklers, and Certain Opioid Manufacturers (the ÐAllocation Agreement IVÑ) governs the distribution of funds obtained from (1) the Purdue Bankruptcy and Sackler Direct Claims Settlement, (2) the Alvogen Settlement, (3) the Amneal Settlement, (4) the Apotex Settlement, (5) the Hikma Settlement, (6) the Indivior Settlement, (7) the Mylan Settlement, (8) the Sun Settlement, and (9) the Zydus Settlement in connection with the resolution of any and all claims by the State of Washington and the eligible counties, cities, and towns in Washington State (ÐLocal GovernmentsÑ) against the Settling Entities defined in the respective Settlement Agreements via the following settlements and bankruptcy plan of reorganization: th (1) The 13 Amended Joint Chapter 11 Plan of Reorganization of Purdue Pharma L.P. and its Affiliated Debtors (the ÐPurdue PlanÑ) , including and amendments thereto and all ÐPlan DocumentsÑ as defined therein, if the ÐEffective DateÑ as defined therein has occurred; (2) the Master Settlement Agreement By and Among the Master Disbursement Trust, Each of the Parties Listed On Exhibit A Hereto, Each of the Parties Listed on Exhibit B Hereto, the Sackler PartiesÓ Representative and PR L.P. and any subsequent amendments, and (3) Government Entity & Shareholder Direct Settlement Agreement and any subsequent amendments (collectively, the ÐPurdue Bankruptcy and Sackler Direct Claims SettlementÑ). Alvogen Settlement Agreement dated April 4, 2025 and any subsequent amendments (ÐAlvogen SettlementÑ). Amneal Settlement Agreement dated April 4, 2025 and any subsequent amendments (ÐAmneal SettlementÑ). Apotex Settlement Agreement dated April 4, 2025 and any subsequent amendments (ÐApotex SettlementÑ). Hikma Settlement Agreement dated April 4, 2025 and any subsequent amendments (ÐHikma SettlementÑ). Indivior Settlement Agreement dated April 4, 2025 and any subsequent amendments (ÐIndivior SettlementÑ). Mylan Settlement Agreement dated April 4, 2025 and any subsequent amendments (ÐMylan SettlementÑ). Sun Settlement Agreement dated April 4, 2025 and any subsequent amendments (ÐSun SettlementÑ) 1 Zydus Settlement Agreement dated April 4, 2025 and any subsequent amendments (ÐZydus SettlementÑ) Collectively, the Purdue Bankruptcy and Sackler Settlement, Alvogen Settlement, Amneal Settlement, Apotex Settlement, Hikma Settlement, Indivior Settlement, Mylan Settlement, Sun Settlement, and the Zydus Settlement shall be referred to as Ðthe SettlementsÑ. The Settlements can be accessed at https://nationalopioidsettlement.com/ and the Purdue Plan can be accessed at https://restructuring.ra.kroll.com/purduepharma/Home- DocketInfo?DocAttribute=4218&DocAttrName=PlanDisclosureStatement&MenuID=9013&Att ributeName=Plan%20%26%20Disclosure%20Statement.The terms and definitions of each of the respective Settlements are incorporated into this Allocation Agreement IV, and any undefined terms in this Allocation Agreement IV are as defined in the Settlements. 1. This Allocation Agreement IV is intended to be a State-Subdivision Agreement as defined in the Settlements. This Allocation Agreement IV shall be interpreted to be consistent with the requirements of a State-Subdivision Agreement in the Settlements. 2. This Allocation Agreement IV shall become effective with respect to a Settlement only if all of the following occur: A. The State of Washington joins such Settlement and becomes a Settling State as provided for in the respective Settlement and, with respect to the Purdue Bankruptcy and Sackler Settlement the State of Washington votes in favor of the Purdue Plan or does not vote against the Purdue Plan, and does not object to the confirmation of the Purdue Plan. B. Such Settlement becomes final and effective and a Consent Judgment that applies to Washington is filed and approved as provided for in the respective Settlement. For the Purdue Bankruptcy, the ÐEffective DateÑ as defined in the Purdue Plan has occurred. C. The number of Local Governments that execute and return this Allocation Agreement IV satisfies the participation requirements for a State- Subdivision Agreement as specified in such Settlement. 3. Requirements to become a Participating Local Government. To become a Participating Local Government that can participate in this Allocation Agreement IV with respect to any one of the Settlements, a Local Government must do all of the following: A. The Local Government must execute and return this Allocation Agreement IV. B. The Local Government must do the following: i. Release its claims against the Settling Entities identified in the respective Settlements and agree to be bound by the terms of the 2 Settlements by timely executing and returning the Participation Form for that Settlement and any other necessary documents. ii. Additionally, for the Purdue Bankruptcy and Sackler Direct Claims Settlement, either (1) vote in favor of or (2) abstain from voting on the Chapter 11 Plan of Reorganization of Purdue Pharma L.P. and its Affiliated Debtors, and (3) not object to the confirmation of the Purdue Plan. C. Litigating Subdivisions, also referred to as Litigating Local Governments, must dismiss the Settling Entities identified in the respective Settlement with prejudice from their lawsuits. D. Each Local Government that is eligible to participate in this Allocation Agreement IV has previously executed and signed the One Washington Memorandum of Understanding Between Washington Municipalities (ÐMOUÑ) agreed to by the Participating Local Governments in Washington State, which is attached hereto as Exhibit 1. By executing this Allocation Agreement IV, the Local Government agrees and affirms that the MOU applies to and shall govern the LG Share, as defined below, as modified by this Allocation Agreement IV for each of the Settlements in which the Local Government participates. A Local Government that meets all of the conditions in this paragraph for any of the Settlements shall be deemed a ÐParticipating Local GovernmentÑ for that Settlement. A Local Government can be a ÐParticipating Local GovernmentÑ for less than all of the Settlements. If a Local Government is a Participating Local Government for less than all of the Settlements, the Local Government can only receive a portion of the Washington Abatement Amount for the specific Settlement(s) for which it is a Participating Local Government. 4. The allocations set forth in this Allocation Agreement IV apply to the following, all of which collectively shall be referred to as the ÐWashington Abatement AmountÑ: A. For the Purdue Bankruptcy and Sackler Settlement, all amounts (collectively, ÐWashington DistributionsÑ) that are apportioned to Washington as Estate Distributions or from the Shareholder Direct Settlement Portion, including, without limitation, those to WashingtonÓs State Fund, Remediation Accounts Fund, Subdivision Fund, Direct Payment, Earned Direct Payment, and Estate Distributions for Washington and all Participating Local Governments for the Purdue Bankruptcy and Sackler Settlement, provided, however, that for the purposes of the allocations set forth in this Allocation Agreement IV, Washington Distributions shall not include StateÓs Fees and Costs (as defined below). This Allocation Agreement IV shall be considered a State-Subdivision 3 Agreement under the Government Entity & Shareholder Direct Settlement Agreement. B. For the Alvogen Settlement, the State of WashingtonÓs (1) Statewide Payment Amount and (2) Additional Remediation Amount. C. For the Amneal Settlement, the State of WashingtonÓs (1) State Allocation and (2) Additional Remediation Amount. D. For the Apotex Settlement, the State of WashingtonÓs (1) Statewide Payment Amount and (2) Additional Remediation Amount. E. For the Hikma Settlement, the State of WashingtonÓs (1) Statewide Payment Amount and (2) Additional Remediation Amount. F. For the Indivior Settlement, the State of WashingtonÓs (1) Statewide Payment Amount and (2) Additional Remediation Amount. G. For the Mylan Settlement, the State of WashingtonÓs (1) Statewide Payment Amount and (2) Additional Remediation Amount. H. For the Sun Settlement, the State of WashingtonÓs (1) Statewide Payment Amount and (2) Additional Remediation Amount. I. For the Zydus Settlement, the State of WashingtonÓs (1) Statewide Payment Amount and (2) Additional Remediation Amount. As specified in each of the Settlements, the Washington Abatement Amount will vary depending on the percentage of Participating Local Governments and whether there are any Later Litigating Subdivisions. 5. The (1) Amneal Settlement, (2) Hikma Settlement, and (3) Indivior Settlement each provide the option for Settling States to obtain Settlement Product or the discretion to convert any portion of the Settlement Product allocated to the Settling State into a cash value as specified in those Settlements of the Settling StateÓs allocated Settlement Product in specified years. It shall be solely the decision of the State regarding whether to convert any portion of the Settlement Product allocated to Washington into a cash value or to obtain the Settlement Product for each of those Settlements. If the State elects to obtain Settlement Product for a particular Settlement, the State in its sole discretion shall make all decisions related to the Settlement Product, including but not limited to where, how, and to whom it shall be distributed. For purposes of calculating the division of the Washington Abatement Amount in Paragraph 10 of this Allocation Agreement IV, the Settlement Product allocated to Washington shall be considered ÐState ShareÑ and shall have the cash conversion value assigned to it in the respective Settlement Agreements, i.e., the ÐSettlement Product Cash Conversion AmountÑ or the ÐCash Conversion AmountÑ identified in those settlements. 4 6. The allocations set forth in this Allocation Agreement IV do not apply to (i) the State Cost Fund, State AG Fees and Costs, State Expense Fund, State AG Fees, State Direct Expenses, or any attorneysÓ fees, fees, costs, or expenses referred to in the Settlement or via Fee Petitions or that are paid directly or indirectly via the Settlements or court order to the State of Washington and/or its outside counsels (ÐStateÓs Fees and CostsÑ) or to (ii) any payments made to Participating Subdivisions pursuant to section 5.9 of the Purdue Plan, which provides for a Local Government Fee Fund. 7. This Allocation Agreement IV and the MOU are a State Back-Stop Agreement. The Settling Entities are paying a portion of the Local GovernmentsÓ attorneysÓ fees and costs as provided for in the Settlements. The total contingent fees an attorney receives from the Contingency Fee Fund in the Settlements, the MOU, and this Allocation Agreement IV combined cannot exceed 15% of the portion of the LG Share paid to the Litigating Local Government that retained that firm to litigate against the Settling Entities (i.e., if City X filed suit with outside counsel on a contingency fee contract and City X receives $1,000,000 from the Walmart Settlement, then the maximum that the firm can receive is $150,000 for fees as to the Walmart Settlement; if City X did not retain the same firm for potential litigation against CVS and City X receives $1,000,000 from the CVS Settlement, then the firm receives no fees from the CVS Settlement.) 8. No portion of the StateÓs Fees and Costs and/or the State Share as defined in Paragraphs 6 and 10 of this Allocation Agreement IV shall be used to fund the Government Fee Fund (ÐGFFÑ) referred to in Paragraph 12 of this Allocation Agreement IV and Section D of the MOU, or in any other way to fund any Participating Local GovernmentÓs attorneysÓ fees, costs, or common benefit tax. 9. The Washington Abatement Amount shall and must be used by the State and Participating Local Governments for future Opioid Remediation as defined in the Settlements, except as allowed by the Settlements. 10. 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 (ÐState ShareÑ). B. Fifty percent (50%) to the Participating Local Governments (ÐLG ShareÑ). 11. The LG Share shall be distributed to Participating Local Governments pursuant to the MOU attached hereto as Exhibit 1 as amended and modified in this Allocation Agreement IV. 12. For purposes of this Allocation Agreement IV only, the MOU is modified as follows and any contrary provisions in the MOU are struck: 5 A. Exhibit A of the MOU is replaced by the Exhibit specifying the List of Opioid Remediation Uses for each of the respective Settlements, which generally can be found at Exhibit E of the respective Settlements. B. The definition of ÐLitigating Local GovernmentsÑ in Section A.4 of the MOU shall mean Litigating Subdivisions as defined in each the respective Settlements and shall also include any local government that notified Judge Polster in Case No. 1:17-md-02804-DAP of its intent to sue any of the settling entities that are covered by this Allocation Agreement. C. The definition of ÐNational Settlement AgreementÑ in Section A.6 of the MOU shall mean the Settlements. D. The definition of ÐSettlementÑ in Section A.14 of the MOU shall mean the Settlements and expressly includes the Chapter 11 Plan of Reorganization of Purdue Pharma L.P. and its Affiliated Debtors. E. The MOU is amended to add new Section C.4.g.vIV, which provides as follows: ÐIf a Participating Local Government receiving a direct payment (a) uses Opioid Funds other than as provided for in the respective Settlements, (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 (ÐRegional OACÑ) 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.IVi 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 date of suspension.Ñ F. The amounts payable to each law firm representing a Litigating Local Government from the GFF shall be consistent with the MOU and the process set forth in the Order Appointing the Fee Panel to Allocate and Disburse AttorneyÓs Fees Provided for in State Back-Stop Agreements, Case No. 1:17-md-02804-DAP Doc #: 4543 (June 17, 2022). 6 G. The GFF set forth in the MOU shall be funded by the LG Share of the Washington Abatement Amount only. To the extent the common benefit tax is not already payable by the Settling Entities as contemplated by Section D.8 of the MOU, the GFF shall be used to pay Litigating Local Government contingency fee agreements and any common benefit tax referred to in Section D of the MOU, which shall be paid on a pro rata basis to eligible law firms as determined by the Settlement Administrator. H. To fund the GFF, fifteen percent (15%) of the LG Share shall be deposited in the GFF from each LG Share settlement payment until the Litigating SubdivisionsÓ contingency fee agreements and common benefit tax (if any) referred to in Section D of the MOU are satisfied. Under no circumstances will any Primary Subdivision or Litigating Local Government be required to contribute to the GFF more than 15% of the portion of the LG Share allocated to such Primary Subdivision or Litigating Local Government. In addition, under no circumstances will any portion of the LG Share allocated to a Litigating Local Government be used to pay the contingency fees or litigation expenses of counsel for some other Litigating Local Government. I. The maximum amount of any Litigating Local Government contingency fee agreement (from the Contingency Fee Fund of the respective Settlements) 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 a Settlement, then the maximum that the firm can receive is $150,000 for fees.) The firms also shall be paid documented expenses due under their contingency fee agreements that have been paid by the law firm attributable to that Litigating Local Government. Consistent with Agreement on AttorneysÓ Fees, Costs, and Expenses, which is Exhibit R of the Settlements, as well as the Purdue Plan, amounts due to Participating Litigating SubdivisionsÓ attorneys under this Allocation Agreement IV 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 Exhibit R of the Settlements, or (iii) costs paid to subdivision attorneys from the MDL Expense Fund for expenses incurred by the attorneys pursuant to the Settlements. J. Under no circumstances may counsel receive more for its work on behalf of a Litigating Local Government than it would under its contingency agreement with that Litigating Local Government. To the extent a law firm was retained by a Litigating Local Government on a contingency fee agreement that provides for compensation at a rate that is less than fifteen percent (15%) of that Litigating Local GovernmentÓs recovery, the maximum amount payable to that law firm referred to in Section D.3 of 7 the MOU shall be the percentage set forth in that contingency fee agreement. K. For the avoidance of doubt, both payments from the GFF and the payment to the Participating Litigating Local GovernmentsÓ attorneys from the Contingency Fee Fund in the respective Settlements as well as any payments made to Participating Subdivisions pursuant to section 5.9 of the Purdue Plan shall be included when calculating whether the aforementioned fifteen percent (15%) maximum percentage (or less if the provisions of Paragraph 10.J of this Allocation Agreement IV apply) of any Litigating Local Government contingency fee agreement referred to above has been met. L.To the extent there are any excess funds in the GFF, the Settlement Administrator shall facilitate the return of those funds to the Participating Local Governments as provided for in Section D.6 of the MOU. 13. In connection with the execution and administration of this Allocation Agreement IV, the State and the Participating Local Governments agree to abide by the Public Records Act, RCW 42.56 et seq. 14. All Participating Local Governments, Regional OACs, and the State shall maintain all non-transitory records related to this Allocation Agreement IV as well as the receipt and expenditure of the funds from the Settlements for no less than five (5) years. 15. If any party to this Allocation Agreement IV 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 Settlements 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. 16. 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 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 Entities are subject to the requirements of the MOU and this Allocation Agreement IV. 17. Upon request by any of the Settling Entities, the Participating Local Governments must comply with the Tax Cooperation and Reporting provisions of the respective Settlement. 8 18.Venue for any legal action related to this Allocation Agreement IV (separate and apart from the MOU or the Settlements) shall be in King County, Washington. Washington law shall govern any dispute. 19.Each party represents that all procedures necessary to authorize such partyÓs execution of this Allocation Agreement IV have been performed and that such person signing for such party has been authorized to execute this Allocation Agreement IV. 9 FOR THE PARTICIPATING LOCAL GOVERNMENT: Name of Participating Local Government: Authorized signature: Name: Title: Date: 11 EXHIBIT 1 One Washington Memorandum of Understanding Between Washington Municipalities 12 CITY OF SPOKANE VALLEY Request for Council Action Meeting Date: September 16, 2025 Department Director Approval: Check all that apply:consent old business new business public hearing information admin. Report pending legislation executive session AGENDA ITEM TITLE: Administrative Report: Resolution 25-016 Establishing a Flag Policy GOVERNING LEGISLATION: RCW 35A.21.180; RCW 1.20.010 PREVIOUS COUNCIL ACTION TAKEN: None. BACKGROUND: At certain times, the City has been asked about flying flags for special occasions on City-owned flagpoles. The City’s choice to fly certain flags has constitutional implications. In 2022, the Supreme Court decided Shurtleff v. City of Boston which addressed a city’s ability to control messaging in raised flags as government speech. This opinion clarified that cities may adopt policies which (1) restrict the flags to be displayed on city property to those flags that reflect the views, values, and goals of the city, and (2) designate city-owned flagpoles as forums only for government expression as opposed to public forums for private speech. Without a policy guiding the City’s selection of which flags are allowed to be displayed on its City-owned flagpoles, the City is at risk of creating a public forum and subjecting its choice of flags or messages to a strict scrutiny analysis pursuant to the Free Speech clause of the First Amendment. Resolution 25-016 reiterates that the City complies with state laws and national protocols for flag display and etiquette for the United States, State, City, and the national league of families’ Prisoner of War/Missing in Action (POW/MIA) flags. For instance, it specifically declares that the City will fly the United States flag at half- staff only upon order of the President or proclamation of the Governor, but may, upon declaration by the Mayor, fly the State and City flag at half-staff. In addition, the policy delineates what messaging City Council desires to allow on City-owned flagpoles and provides procedures for making that determination. As drafted, alternate flags may be displayed that a) recognize and honor members of the U.S. armed forces and public safety institutions, including local, state and federal law enforcement agencies, and emergency services, or b) promote City Council priorities, policies, or programs that positively impact the community; provided that the flag display does not conflict with local, state, or federal law or the other terms of this policy. Consistent with the Mayor’s ceremonial duties, the Mayor retains discretion and sole authority to determine when alternate flags, consistent with the City Council’s chosen messages and policy, may be displayed. Upon approval, the requestor shall draft a proclamation and coordinate with the City to display the flag on the appropriate date(s). The proclamation, signed by the Mayor, will be issued accompanying the approval of the flag display. Additionally, there a couple of flags that the City has previously flown consistent with its participation in specific programs. Those are the Tree City USA Flag and the Purple Heart flag. Those flags are delineated as pre-approved flags that do not require further application because they are consistent with the stated policy. The list of pre-approved flags may be supplemented by resolution of the City Council. OPTIONS: Consensus to place Resolution 25-016 related to Establishing the City’s Flag Policy on a future agenda for motion consideration; or take other action Council deems appropriate. RECOMMENDED ACTION OR MOTION: Consensus to place Resolution 25-016 related to the City’s Flag Display Policy on a future agenda. BUDGET/FINANCIAL IMPACTS: N/A STAFF CONTACT: City Attorney Kelly Konkright, Senior Deputy City Attorney Tony Beattie _________________________________________________________________________ ATTACHMENTS: Proposed Resolution 25-016 DRAFT CITY OF SPOKANE VALLEY SPOKANE COUNTY, WASHINGTON RESOLUTION No. 25-016 A RESOLUTION OF THE CITY OF SPOKANE VALLEY, SPOKANE COUNTY, WASHINGTON, ESTABLISHING THE CITY COUNCIL’S POLICY RELATED TO THE DISPLAY OF FLAGS AT CITY FACILITIES, AND OTHER MATTERS RELATED THERETO. WHEREAS, state and federal laws establish rules and regulations concerning the display of certain flags; and WHEREAS, the City intends, by adoption of this policy, to continue to follow said rules and regulations; and WHEREAS, the City wishes to exercise its control over messaging from City-owned flagpoles by establishing a policy that comports with the values of the City; and WHEREAS, by establishing and following this written policy, the City is lawfully engaging in government speech. NOW, THEREFORE, be it resolved by the City Council of the City of Spokane Valley, Spokane County, Washington as follows: Section 1. Purpose. It is the policy of the City of Spokane Valley to correctly honor the flags of the United States, the State of Washington, and the City of Spokane Valley, andthe national league of families’ Prisoner of War/Missing in Action (POW/MIA) flags in accordance with state and federal laws and regulations. The City’s flagpoles are exclusively utilized by the City for government expression. Therefore, in addition to complying with state and federal laws and protocols related to proper flag display, it is the policy of the City of Spokane Valley to ensure that the flagpoles are used only for government speech and that alternate flag displays on City flagpoles reflect the views, values, and goals of the City. The City’s flagpoles are not intended to serve as a forum for free expression by the public. Section 2. Flag Display. The City of Spokane Valley shall comply with national and state laws and protocols concerning flag display and etiquette for the United States flag, the Washington State flag, the POW/MIA flag, and the City flag. These laws and regulationsinclude 4 USC §§ 1-10, RCW 35A.21.180 and RCW 1.20.010. Specifically, but not to the exclusion of any other law or protocol, the City recognizes that the United States flag shall only be flown at half-staff on days required by law, and upon orderby the President, or proclamationof the Governor. The State flag, City flag, and alternate flags, may be flown at half-staff upon declaration by the Mayor of the City of Spokane Valley to honor the passingof current or former local or regional officials, law enforcement officers, firefighters, and other first responders. Section 3. Display of alternate flags. In addition to the flags referenced in Section 2, other flags may be displayed on a temporary basis on City-owned flagpoles below or in place of Resolution 25-016Flag Display Policy DRAFT the City’s flagthata) recognize and honor members of the U.S. armed forces and public safety institutions, including local, state and federal law enforcement agencies, and emergency services, or b) promote City Council priorities, policies, or programs thatpositively impact the community; provided that the flag display does not conflict with local, state, or federal law or the other terms of this policy. Section 4. Procedure for alternate flag display proposals. As part of the ceremonial duties of the Mayor, the Mayor may issue proclamationsat his or her discretion that call for the display of alternate flags on certain dates to recognize groups, events, or occasions that comport with City Council’s desired message in Section 3. A request to fly an alternate flag shall be directed to the Mayor or City Clerk at least two weeks prior to the proposed date for the display. The request shall contain a copy of the proposed alternate flag, a written description of the message to be conveyed, date(s) for display, and an explanation of how the display comports with the desired message in Section 3 and other relevant terms and restrictions of this policy. The Mayor shall retain full authority and discretion in determining whether the proposed display comports with the desired message in Section 3 and other relevant terms and restrictions of this policy. The City Clerk shall communicate the Mayor’s decision to the individual making the request. If accepted, it shall be the responsibility of the individual making the requestto provide the flag, make arrangements through the City Clerk to display the flag on the appropriate date(s), and draft a proclamation. The City retains the right to modify/edit the proposed proclamation as it sees fit. The proclamation shall be signed by the Mayor, and mailed or delivered by alternate means to the requestor as determined by the Mayor. Upon approval of an alternate flag display by the Mayor, the alternate flag may be displayed annually, at the Mayor’s discretion, for the same event, or on the same date(s), without additional application by a requestor when consistent with the other terms and restrictions of this policy, Section 5. Pre-approved alternate flags. The following alternate flags comply with the City Council’s desired message described in Section 3, and may be flown at the Mayor’s discretion at special events, or on days connected to the flag’s message: Purple Heart flag Tree City USA flag This list may be supplemented by City Council resolution. Section 5. Restrictions. No alternate flag shall be flown for more than seven days per year without approval by City Council. Nothing herein shall be deemed to allow the flying of a flag at a time or location which would create a conflict with local, state, or federal law, or the aforementioned protocols and policies contained herein. Flag displays shall not be used to promote any particular candidate, or political campaign, or be used to promote political, or religious causes. Nor shall flags be displayed that sow division amongst or discriminate against groups of people on the basis of race, color, creed, national origin, religion, gender, sexual orientation, or disability. Resolution 25-016Flag Display Policy DRAFT Section 6. Effective Date.This Resolution shall be in full force and effect upon adoption. Adoptedthis ______ day of September, 2025. Pam Haley, Mayor ATTEST: City Clerk, Marci Patterson Approved as toForm: Office of the City Attorney Resolution 25-016Flag Display Policy