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HomeMy WebLinkAboutRES NO 039-2023RESOLUTION NO. 0 3 9- 2 0 2 3 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAKERSFIELD APPROVING PARTICIPATION IN NATIONAL OPIOID SETTLEMENT AGREEMENTS 2022 AND AUTHORIZING THE CITY MANAGER OR DESIGNEE TO EXECUTE THE RELATED PARTICIPATION AGREEMENTS. WHEREAS, a 2021 nationwide settlement was reached in multi -distract litigation in Ohio brought by states, and cities against the three largest opioid distributors - McKesson, Cardinal Health, and AmerisourceBergen - and the opioid manufacturer Janssen (owned by Johnson & Johnson); and WHEREAS, in January 2022, the City of Bakersfield ("CITY") passed a resolution to opt -in and receive the benefits of the 2021 settlement in exchange for releasing its claims against the opioid distributors and Janssen; and WHEREAS, another nationwide settlement was reached that would resolve opioid litigation brought by states, local political subdivisions, and special districts against two pharmaceutical manufacturers - Teva and Allergan ("Manufacturers"), and three pharmacies - CVS, Walgreens, and Walmart ('Pharmacies"); and WHEREAS, the 2022 settlement (Settlement) consists of an agreement with the Manufacturers and an agreement with Pharmacies; and WHEREAS, under the terms of the Settlement, $5.36 billion will be paid by the opioid Manufacturers over a 13-year period and Pharmacies will pay $13.6 billion over a 15-year period to states, cities, and counties; and WHEREAS, under the terms of the Settlement, funds will be distributed to the State of California, cities and counties; and WHEREAS, although the City of Bakersfield ("CITY") is not a litigating entity involved in this litigation it may opt -in and receive the benefits of the Settlement in exchange for releasing its claims against the opioid Manufacturers and Pharmacies; and WHEREAS, the more cities with populations greater than 10,000 people, such as the CITY, which opt -in to the Settlement will enable their respective counties and states to receive more funds under the incentive structure of the Settlement; and Resolution Approving Participant in National Opidd Settlement Agreements 2022 and l thodAng the City Manager or Designee to &ecate the Related Porficipation Agreements -- Page 1 of 3 Pages - pF OAKF) > r U ORIGINAL WHEREAS, opting -in to the Settlement will enable the CITY to receive funds from the Settlement, which can be used to treat opioid use disorder and for other related eligible purposes; and WHEREAS, jurisdictions must opt -in to the Settlement before April 18, 2023. NOW, THEREFORE, IT IS RESOLVED by the Council of the City of Bakersfield as follows: 1. The above recitals are true and correct and incorporated herein. 2. This City Council finds that all the facts, findings, and conclusions set forth in the recitals above in this Resolution are true and correct. 3. This City Council finds that the City Manager or Designee is authorized to accept the proposed settlements with the opioid manufacturers and pharmacies on behalf of the City of Bakersfield. 4. Should any section, clause, or provision of this Resolution be declared by the Courts to be invalid, the some shall not affect the validity of the Resolution as a whole, or parts thereof, other than the part so declared to be invalid. 5. The City Clerk shall certify to the passage and adoption of this Resolution and shall cause the same to be published or posted according to law. I HEREBY CERTIFY that the foregoing Resolution was passed and adopted by the Council of the City of Bakersfield at a regular meeting thereof held on _, by the following vote: AYES: COUNOWEMBER ARIAS. GONZALES, WEIR, SMITH, FREEMAN, GRAY, KAUR NOES: COUNCILMEMBER ABSTAIN: COUNCILMEMBER ABSENT: COUNCILMEMBER JULIE DRIMAKIS, CPMC, MMC CITY CLERK and EX OFFICIO CLERK of the Council of the City of Bakersfield IAddiflonal signaWres on next page] Resolulion Approving Parlicipant in National Opiold Selflement Agreements 2M2 and / ffiodting the City Manager or Designee to aecute the Related Parlicipolon Agreements -- Page 2 of 3 Pages — o`` 9pKF2� 'ORIGINALS APPROVED: By KAREN GOH Mayor APPROVED AS TO FORM: JeS %��.HUA H. RUDNICK uty City Attorney JHR/Ng 5:\C0UNCIL\Resos\22-23\0pioid Settlement 2g22 Opt-In.Resodocx ResoWtlon ApproAW Participant in National Oploid Settlement Agreements 2022 and Aathonmg the City Monger or Designee to Uecate the Related Participation Agreements — Page 3 of 3 Pages — O��pKF�.es s 9ORIGINAL� RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BAKERSFIELD APPROVING PARTICIPATION IN NATIONAL OPIOID SETTLEMENT AGREEMENTS 2022 AND AUTHORIZING THE CITY MANAGER OR DESIGNEE TO EXECUTE THE RELATED PARTICIPATION AGREEMENTS. WHEREAS, a 2021 nationwide settlement was reached in multi -district litigation in Ohio brought by states, and cities against the three largest opioid distributors - McKesson, Cardinal Health, and AmerisourceBergen - and the opioid manufacturer Janssen (owned by Johnson & Johnson); and WHEREAS, in January 2022, the City of Bakersfield ("CITY") passed a resolution to opt -in and receive the benefits of the 2021 settlement in exchange for releasing its claims against the opioid distributors and Janssen; and WHEREAS, another nationwide settlement was reached that would resolve opioid litigation brought by states, local political subdivisions, and special districts against two pharmaceutical manufacturers - Teva and Allergan ("Manufacturers"), and three pharmacies - CVS, Walgreens, and Walmart ("Pharmacies"); and WHEREAS, the 2022 settlement (Settlement) consists of an agreement with the Manufacturers and an agreement with Pharmacies; and WHEREAS, under the terms of the Settlement, $5.36 billion will be paid by the opioid Manufacturers over a 13-year period and Pharmacies will pay $13.6 billion over a 15-year period to states, cities, and counties; and WHEREAS, under the terms of the Settlement, funds will be distributed to the State of California, cities and counties; and WHEREAS, although the City of Bakersfield ("CITY") is not a litigating entity involved in this litigation it may opt -in and receive the benefits of the Settlement in exchange for releasing its claims against the opioid Manufacturers and Pharmacies; and WHEREAS, the more cities with populations greater than 10,000 people, such as the CITY, which opt -in to the Settlement will enable their respective counties and states to receive more funds under the incentive structure of the Settlement; and Resdulon ApproiAng Participant in National Dodd Selement Agreemenh 20U and lwMonang Me cN Manager or Designee to &ecate Me Related Parraipation Agreements -- Page 1 of 3 Pages - OOPKF�sn > m r 50RIeINAL WHEREAS, opting -in to the Settlement will enable the CITY to receive funds from the Settlement, which can be used to treat opioid use disorder and for other related eligible purposes: and WHEREAS, jurisdictions must opt -in to the Settlement before April 18, 2023. NOW, THEREFORE, IT IS RESOLVED by the Council of the City of Bakersfield as follows: 1. The above recitals are true and correct and incorporated herein. 2. This City Council finds that all the facts, findings, and conclusions set forth in the recitals above in this Resolution are true and correct. 3. This City Council finds that the City Manager or Designee is authorized to accept the proposed settlements with the opioid manufacturers and pharmacies on behalf of the City of Bakersfield. 4. Should any section, clause, or provision of this Resolution be declared by the Courts to be invalid, the some shall not affect the validity of the Resolution as a whole, or parts thereof, other than the part so declared to be invalid. 5. The City Clerk shall certify to the passage and adoption of this Resolution and shall cause the some to be published or posted according to law. ----00o------ I HEREBY CERTIFY that the foregoing Resolution was passed and adopted by the Council of the City of Bakersfield at a regular meeting thereof held on APR! by the following vote: ✓ ✓ �/ COUNCILMEMBER ARIAS, GONiALES. WEIR, SMITH, FREFFAAN,9RRY, KAUR NOES: COUNCIIMEMBER N: COUNCIIMFMBER A85 COUNCILMEMBER QN� tYALA J LIE RIMAKIS, CPMC, MMC CITY CLERK and EX OFFICIO CLERK of the Council of the City of Bakersfield [Additional signatures on next page] Resolufion Approving Participant in National Opiad Settlement Agreements 2M and Authonnng the City Manager or Designee to Execute the Related Partlapatlon Agreements -- Page 2 of 3 Pages — �gPKF,i o sa "ORIGINAL' APPROVED: PR 1 2 2�23 By KAR N GOH Mayor APPROVED AS TO FORM: e y OSHUA RUDNICK DeputyCiy Attorney JHRMg S:\C0UNCIL\Resos\22-23\0pidd Settlement 2022 Opt-ln.Reso.c= Resolution Approving Participant in National Opioid Settlement Agreements 2022 and Authonmg the City Manager or Oesignee to Execute the Related Participation Agreements — Page 3 of 3 Pages -- o``OAKF�s 5 anORIGINAL National Opioid Settlements: Teva, Allergan, CVS, Walgreens, and Walmart Bakersfield city, CA Reference Number. CL-383070 TO LOCAL POLITICAL SUBDIVISIONS AND SPECIAL DISTRICTS: THIS NOTICE CONTAINS IMPORTANT INFORMATION ABOUT NATIONAL OPIOID SETTLEMENTS. Proposed nationwide settlement agreements ("Settlements") have been reached that would resolve opioid litigation brought by states, local political subdivisions, and special districts against two pharmaceutical manufacturers, Teva and Allergen ("Manufacturers"), and three pharmacies, CVS, Walgreens, and Walmart ("Pharmacies"). Local political subdivisions and special districts are referred to as "subdivisions" The Settlements require the settling Manufacturers and Pharmacies to pay billions of dollars to abate the opioid epidemic. The Settlements total over $20 billion. Of this amount, approximately $17 billion will be used by participating states and subdivisions to remediate and abate the impacts of the opioid crisis. Depending on participation by states and subdivisions, the Settlements require: • Teva to pay up to $3.34 billion over 13 years and to provide either $1.2 billion of its generic version of the drug Narcan over 10 years or an agreed upon cash equivalent over 13 years; • Allergen to pay up to $2.02 billion over 7 years; • CVS to pay up to $4.90 billion over 10 years; • Walgreens to pay up to $5.52 billion over 15 years; and • Walmart to pay up to $2.74 billion in 2023, and all payments to be made within 6 years. As provided under the Agreements, these figures are net of amounts attributable to prior settlements between the Defendants and certain states/subdivisions, and include amounts for attorneys' fees and costs. The Settlements also contain injunctive relief governing opioid marketing, sale, distribution, and/or dispensing practices. Each of the proposed settlements has two key participation steps First, each eligible state decides whether to participate in each Settlement. A list of participating states for each settlement can be found at httns Hnationaloo okisettlement.corn. Second, eligible subdivisions within each participating state decide whether to participate in each Settlement. The more subdivisions that participate, the more funds flow to that state and its subdivisions. Any subdivision that does = participate cannot directly share in any of the settlement funds, even if the subdivision's state is settling and other participating subdivisions are sharing in settlement funds. If the state does not participate in a particular Settlement, the subdivisions in that state are not eligible to participate in that Settlement. o``eNkf 2'h.� > m 0ORIOINN' The Settlements provide that an Implementation Administrator will provide notice and manage the collection of participation forms. Rubds Inc. is the Implementation Administrator for these new Settlements and was also retained for the 2021 national opioid settlements. Your state has elected to participate in one or more of the Settlements with the Manufacturers and/or the Pharmacies, and your subdivision may participate in those Settlements in which your state has elected to participate. This notice is also sent directly to counsel for such subdivisions if the Implementation Administrator has their information. If you are represented by an attomey with respect to opioid claims, please contact them. Subdivisions can participate in the Settlements whether or not they filed a lawsuit or are represented. Detailed information about the Settlements, including each settlement agreement, may be found at: httnsY/nationalopioidsettlement.com. This website also includes information about how the Settlements are being implemented in most states and how funds will be allocated within your state. You are encouraged to review the settlement agreement terms and discuss the terms and benefits with your counsel, your Attorney General's Office, and other contacts within your state. Information and documents regarding the Settlements and your state allocation can be found on the settlement website at httos'//nationalooioidsettlement.com. Your subdivision will need to decide whether to participate in the proposed Settlements, and subdivisions are encouraged to work through this process before the April 18. 2023 deadline. The Settlements require that you take affirmative steps to "opt in" to the Settlements. In the next few weeks, you will receive documentation and instructions from the Implementation Administrator or, in some cases, your Attorney General's Office. In order to participate in a settlement, a subdivision must sign and return the required Participation Forn for that settlement. All required documentation must be signed and returned on or before April 18, 2023.