ADMINISTRATIVE REPORT
MEETING DATE: April 22, 2026 AGENDA CATEGORY: Consent - Resolutions TO: Honorable Mayor and City Council
FROM: Jennifer M. Byers, Economic and Community Development Director DATE: March 31, 2026
SUBJECT: Resolution approving participation in the National Opioid Settlement Agreements and authorizing the City Manager or Designee to execute related participation documents.
RECOMMENDATION:
Staff recommends adoption of the resolution.
BACKGROUND:
On January 19, 2022, the City adopted Resolution No. 003-2022 to opt-in and receive the benefits of the 2021 national settlement brought by states and cities against the three largest opioid distributors (McKesson, Cardinal Health, and AmerisourceBergen) and opioid manufacturer (Janssen, owned by Johnson & Johnson).
In 2022, a second national opioid settlement was reached that would resolve opioid litigation against two pharmaceutical manufacturers (Teva and Allergan) and three pharmacies (CVS, Walgreens, and Walmart). On April 12, 2023, the City adopted Resolution No. 039-2023 to opt-in and receive the benefits of the 2022 settlement.
A third national settlement has been reached with six remnant regional distributors/dispenser defendants which, if effectuated, could result in a settlement of $97,625,000. The City is eligible to opt- in to this settlement and in so doing, must release its claims against the opioid distributors and dispenser defendants participating in the settlement. In exchange, the City will receive funds, which can be used to combat opioid abuse.
The City shall utilize the Remnant Settlement funds for the Core Strategies and Approved Uses as set forth in the Remnant Defendant Settlement Agreement and City Council will approve disbursement of Remnant Settlement funds at a later date.
FISCAL IMPACT:
The acceptance of the opioid settlement fund requires the City to adopt this resolution, it will allow the City to receive these additional funds from this litigation settlement. The Fiscal Impact is a net increase to City funds.
COUNCIL GOAL:
Community Character & Quality of Life
Safety & Resilience
Innovative and Efficient City Government
ATTACHMENT:
Resolution