TO: Honorable Mayor and Members of the City Council
ATTENTION: Jeffrey L. Stewart, City Manager
FROM: Justin A. Tamayo, Deputy City Attorney
SUBJECT: Consideration and possible action to adopt Resolution No. 23-13 – A Resolution authorizing the City Manager, or designee, to enter into National Opioid Settlements with Teva, Allergan, CVS, Walgreens, and Walmart.
DATE: April 10, 2023
RECOMMENDATION TO CITY COUNCIL:
1) Adopt Resolution No. 23-13; or
2) Alternatively, discuss and take other action related to this item.
BACKGROUND:
On July 21, 2021, a $26 billion offer to settle was made by opioid manufacturer Janssen Pharmaceuticals (parent company of Johnson & Johnson) and the “big three" distributors (McKesson, AmerisourceBergen, and Cardinal Health) (“the Distributors") to resolve their liabilities in over 3,000 opioid crisis-related lawsuits nationwide. The City is participating in these settlement agreements and receives payments from the State each year that are derived from Janssen and the Distributors.
In late 2022, agreements were announced with three pharmacy chains (CVS, Walgreens, and Walmart) and two additional manufacturers (Allergan and Teva). In January 2023, each of those pharmacy chains and manufacturers confirmed that a sufficient number of states had agreed to the settlements to move forward. As with the 2021 National Settlements, cities that want to participate in the 2022 National Settlements now will have the opportunity to “opt in.” The greater the level of subdivision participation, the more funds will ultimately be paid out. The City must opt-in by April 18, 2023, or it will be precluded from participation.
Under both the 2021 and 2022 National Settlements, at least 85% of the funds going directly to participating cities must be used for abatement of the opioid epidemic, with the overwhelming bulk of the proceeds restricted to funding future abatement efforts by state and local governments.
FISCAL IMPACT:
Participation in the additional settlements entitles the City to opioid remediation funds from the new defendants. The amount of funds that the City will receive is dependent upon the total number of local subdivisions that timely opt-in.
ATTACHMENTS
Email to City Attorney ...................................................................................................... 2 Resolution No. 23-13 ....................................................................................................... 4
SUPPLEMENTAL MATERIAL
14-H
Monday, April 10, 2023 at 13:32:22 Pacific Daylight TimeBerger, Karl H.
Subject:Re: Na’onal Opioid Se0lement Agreements with Teva, Allergan, CVS, Walgreens, and Walmart Date:Friday, April 7, 2023 at 10:41:28 AM Pacific Daylight Time From:Opioids Implementa’on Administrator
To:Tamayo, Jus’n A.
CC:Berger, Karl H., Tamayo, Jus’n A., Opioids Implementa’on Administrator AHachments:image001.png
[EXTERNAL]
Good AUernoon –
Bellflower City, CA is eligible to par’cipate in the Na’onal Opioid Se0lement with Teva, Allergan, CVS, Walgreens, and Walmart. Par’cipa’on forms have been sent to Jeffrey L. Stewart (as the authorized signer), and Joaquin Vazquez as the copied recipient. If this is incorrect, we could update our contacts to include Karl and Jus’n, and resend the DocuSign package. Please let us know who should be listed as the authorized signer.
For Monterey Park City, CA – our records list Jus’n Tomayo as the authorized signer, with Martha Garcia and Ron Bow as copied recipients. Please let us know if this needs to be adjusted, as well.
Thank you,
Amanda
Opioids Implementa’on Administrator
Na’onal Teva, Allergan, Walgreens, Walmart, and CVS Se0lements The Implementa’on Administrator is retained to provide the se0lement no’ce required by the respec’ve se0lement agreements referenced above and to manage the collec’on of se0lement par’cipa’on forms for each se0lement.
opioidspar’cipa’[email protected]
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From: Tamayo, Jus’n A.
Date: Friday, April 7, 2023 at 11:11 AM
To: Opioids Implementa’on Administrator
Cc: Berger, Karl H. , Tamayo, Jus’n A.
Subject: Na’onal Opioid Se0lement Agreements with Teva, Allergan, CVS, Walgreens, and Walmart You don't oUen get email from [email protected]. Learn why this is important
Good morning,
I am wri’ng to you on behalf of Karl H. Berger, appointed city a0orney for the ci’es of Monterey Park and Bellflower. We have received correspondence about the City of Monterey Park’s ability to opt-in to the Opioid Se0lements with Teva, Allerga, CVS, Walgreens and Walmart; however, we have not received any correspondence about the City of Bellflower’s ability to par’cipate. Please confirm whether the City of Bellflower is eligible to par’cipate in these addi’onal se0lements. If so, please send the corresponding documents to Karl H. Berger and myself at your earliest convenience.
As to the City of Monterey Park, kindly let us know who your records iden’fy as the authorized signer for the City.
Thank you,
Justin A. Tamayo | Deputy City Attorney
444 South Flower Street, Suite 2400 | Los Angeles, CA 90071-2953 d - 213.236.2708 | t - 213.236.0600 | f - 213.236.2700
[email protected] | bwslaw.com
Burke, Williams & Sorensen, LLP
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CITY OF BELLFLOWER
RESOLUTION NO. 23-13
A RESOLUTION AUTHORIZING THE CITY MANAGER, OR DESIGNEE,
TO ENTER INTO NATIONAL OPIOID SETTLEMENTS WITH TEVA,
ALLERGAN, CVS, WALGREENS, AND WALMART
THE CITY COUNCIL RESOLVES AS FOLLOWS:
SECTION 1. The City Council finds as follows:
A. On July 21, 2021, a $26 billion offer to settle was made by opioid manufacturer Janssen Pharmaceuticals (parent company of Johnson & Johnson) and the “big three" distributors, McKesson, AmerisourceBergen, and Cardinal Health (“the Distributors") to resolve their liabilities in over 3,000 opioid crisis-related lawsuits nationwide.
B. California joined additional lawsuits against manufacturers, distributors, and other entities responsible for aiding the opioid epidemic.
C. Between November 2022 and December 2022, Teva, Allergan, CVS, Walgreens, and Walmart entered into National Opioid Settlements.
D. The deadline for the City to opt-in to the settlement agreements with Teva, Allergan, CVS, Walgreens, and Walmart is April 18, 2023.
SECTION 2. Authorization. The City Manager, or designee, is authorized to enter into National Opioid Settlement Agreements with Teva, Allergan, CVS, Walgreens, and Walmart.
SECTION 3. Severability. If any part of this Resolution or its application is deemed invalid by a court of competent jurisdiction, the City Council intends that such invalidity will not affect the effectiveness of the remaining provisions or applications, and to this end, the provisions of this Resolution are severable.
SECTION 4. Construction. This Resolution must be broadly construed to achieve the purposes stated in this Resolution. It is the City Council’s intent that the provisions of this Resolution be interpreted or implemented by the City and others in a manner that facilitates the purposes set forth in this Resolution.
SECTION 5. Electronic Signatures. This Resolution may be executed with electronic signatures in accordance with Government Code § 16.5. Such electronic signatures will be treated in all respects as having the same effect as an original signature.
SECTION 6. Recordation. The Mayor, or presiding officer, is hereby authorized to affix their signature to this Resolution signifying its adoption and the City Clerk, or their duly appointed deputy, is directed to attest hereto.
City of Bellflower
Resolution No. 23-13
SECTION 7. Effective Date. This Resolution will become effective immediately upon adoption and will remain effective unless repealed or superseded.
PASSED, APPROVED, AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF BELLFLOWER THIS 10th DAY OF APRIL, 2023.
_________________________________
Sonny R. Santa Ines, Mayor
ATTEST:
__________________________________
Mayra Ochiqui, City Clerk
APPROVED AS TO FORM:
KARL H. BERGER, City Attorney
__________________________________
Justin A. Tamayo, Deputy City Attorney