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Home My WebLink AboutAGENDA REPORT 2024 0717 CCSA REG ITEM 10FCITY OF MOORPARK, CALIFORNIA City Council Meeting of July 17, 2024 ACTION APPROVED STAFF RECOMMENDATION. BY A. Hurtado. F. Consider Opioid Settlement Funds and Ratify the City Manager’s Execution of Documents of Participation in the New National Opioid Settlement with Kroger. Staff Recommendation: Ratify the City Managers Execution of Documents to participate in the new National Opioid Settlement with Kroger. (Staff: PJ Gagajena, Assistant City Manager) Item: 10.F. MOORPARK CITY COUNCIL AGENDA REPORT TO: Honorable City Council FROM: PJ Gagajena, Assistant City Manager DATE: 07/17/2024 Regular Meeting SUBJECT: Consider Opioid Settlement Funds and Ratify the City Manager’s Execution of Documents of Participation in the New National Opioid Settlement with Kroger BACKGROUND/DISCUSSION The opioid epidemic has continued to impact thousands of lives, families and communities across the nation. In 2020, there were approximately 5,502 opioid overdose deaths and 3,946 fentanyl overdose deaths in California according to the State of California Department of Justice. States and local governments have filed nearly 4,000 lawsuits against pharmaceutical distributors and manufacturers over the years for the detrimental impacts of opioids. This includes a $26 billion nationwide settlement in 2021 with pharmaceutical companies McKesson, Cardinal Health and AmerisourceBergen and manufacturers Janssen and Johnson & Johnson; and $20.4 billion nationwide settlement in 2023 with pharmaceutical companies CVS, Walgreens, and Walmart and manufacturers Teva and Allergen. On May 30, 2024, the City was notified of a new nationwide proposed settlement agreement with regional supermarket pharmacy Kroger Co. (Kroger) for $1.4 billion to be paid over the course of 11 years, with the State of California expecting to receive up to $122 million for abatement programs. As with prior National Opioid Settlements, the more cities and counties participate, the more settlement funds cities, counties and the state will receive. The City’s weighted allocation percentage for the settlement with Kroger is 0.0067337% of 85% of the $122 million estimated settlement funds allocated to California. This equates to the City receiving approximately $7,000 in settlement proceeds over the course of 11 years depending on the number of participating cities and counties. As with prior National Opioid Settlements, the City will elect the County to receive and administer the settlement funds for opioid abatement programs and services. Since the City Council already approved participation with prior National Opioid Settlements due to the benefits of participating and in order to meet the deadline of Item: 10.F. 198 Honorable City Council 07/17/2024 Regular Meeting Page 2 August 12, 2024, the City Manager opted in and completed the required participation documents for the Kroger settlement on June 14, 2024. Staff is seeking confirmation from the City Council to participate in this new National Opioid Settlement. More information about this new National Opioid Settlement can be found at https://nationalopioidsettlement.com. ENVIRONMENTAL DETERMINATION This action is exempt from the California Environmental Quality Act (CEQA) as it does not constitute a project, as defined by Section 15378 of the State CEQA Guidelines. Therefore, no further environmental review is required. FISCAL IMPACT The settlement agreement with Kroger indicates the City of Moorpark will be receiving a weighted allocation percentage of 0.0067337% of 85% of the $122 million estimated settlement funds allocated to California, if the City elects to participate. This equates to the City of Moorpark receiving an estimated amount of $7,000 in settlement proceeds, which is subject to change depending on the number of local government entities participating and/or changes to the calculated allocation percentages. The allocated funds will be paid over a period of 11 years. COUNCIL GOAL COMPLIANCE This action does not support a current strategic directive. STAFF RECOMMENDATION Ratify the City Managers Execution of Documents to participate in the new National Opioid Settlement with Kroger. Attachment 1: New National Opioid Settlement Notice - Kroger Attachment 2: Completed Participation Form and California State-Subdivision Agreement for Kroger Settlement Funds 199 From:National Opioid Settlements Implementation Administrator To:Troy Brown Subject:NEW NATIONAL OPIOID SETTLEMENT NOTICE - Kroger Co. - RefNum CL-789867 Date:Thursday, May 30, 2024 12:57:07 PM Attachments:national_opioid_settlement_notice_settlement_overview.pdf To: Moorpark city, CA Rubris Reference Number: CL-789867 NOTICE OF NEW NATIONAL OPIOID SETTLEMENT AND UPCOMING ACTION NEEDED TO PARTICIPATE A new national opioid settlement has been reached with Kroger Co. This is the formal notice required by the settlement and authorized by the parties. Please read this email and the attached document carefully. You are receiving this notice because your state has elected to participate in the national opioid settlement with Kroger Co. The list of states participating in the settlement can be found at https://nationalopioidsettlement.com. Your subdivision might have participated in the national opioid settlements with Johnson & Johnson/Janssen, the three Distributors (Cardinal, AmerisourceBergen (Cencora), and McKesson), Teva, Allergan, CVS, Walgreens, and Walmart. This notice concerns the opportunity to participate in the new settlement with the new Settling Defendant (Kroger Co.). Your subdivision or special district may participate in the new settlement whether or not it sued Kroger Co. In the next few weeks, you will receive additional information and documentation to sign and return if you wish to join the new national opioid settlement with Kroger Co.. Please review the list of individuals on this email and contact the Implementation Administrator at opioidsparticipation@rubris.com if someone else at your subdivision or special district should receive communications about this settlement. Your subdivision or special district must “opt in” to participate in the new settlements. To do so, you must sign and return the documentation that you will be receiving in the next few weeks. The deadline to return the required documentation is August 12, 2024. Documentation submitted for prior national settlements is not applicable to the new settlement. The attached document provides additional information concerning the ATTACHMENT 1 200 new national opioid settlement involving Kroger Co. Questions about this notice or the process for receiving and submitting the required Settlement Participation Forms may be directed to your attorney, the Implementation Administrator at opioidsparticipation@rubris.com, or your Attorney General's Office If your subdivision or special district is represented by an attorney with respect to opioid claims and they are not copied on this message, please immediately contact them concerning this notice. Thank you, National Opioid Settlements Implementation Administrator National Kroger Settlement The Implementation Administrator is retained to provide the settlement notice required by the respective settlement agreements referenced above and to manage the collection of settlement participation forms for each settlement. 201 ATTACHMENT 2 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 225 226 227 228 229 230 231 232 233 234 235 236 237 238