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
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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 —
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'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 —
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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 -
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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 —
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"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 --
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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.
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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.