Agenda packet — Suisun City City Council, April 5, 2023

CITY COUNCIL
Alma Hernandez, Mayor
Princess Washington, Mayor Pro Tem
Jenalee Dawson, Member
Amit Pal, Member

CITY COUNCIL MEETING

1 Approve of Additional National Opioid Settlements with Teva, Allergan, Walmart, Walgreens, and CVS by ratifying the following: - (City Attorney).

1 .

Adopt a Resolution Authorizing The City Of Suisun City To Enter Into The Master Settlement Agreements With Cvs, Allergan, Teva, Walmart, And Walgreens (Including The Related Participation Agreements); Agree To The Terms Of The Related State- Subdivision Agreements And Authorize Entry Into The Related State-Subdivision Allocation Agreements With The Attorney General; And Authorizing The City Manager To Carry Out Further Related Acts.

A G E N D A

SPECIAL MEETING OF THE CITY COUNCIL OF THE CITY OF SUISUN CITY

WEDNESDAY, APRIL
5, 2023
5:45 PM

Joseph A. Nelson Center - 611 Village Drive - Suisun City, California 94585

.
(Next Ord. No. – 799)
(Next City Council Res. No. 2023 – 32)
Next Suisun City Council Acting as Successor Agency Res. No. SA2023 - 01) (Next Housing Authority Res. No. HA2023 – 02)

ROLL CALL
Councilmembers

CONFLICT OF INTEREST NOTIFICATION
(Any items on this agenda that might be a conflict of interest to any Councilmembers / Boardmembers should be identified at this time.)

PUBLIC COMMENT
(Request by citizens to discuss any matter under our jurisdiction other than an item posted on this agenda per California Government Code §54954.3. Comments are limited to no more than 3 minutes unless allowable by the Mayor/Chair.

Speaker cards are available on the table near the entry of the meeting room and should be given to the City Clerk. By law, no prolonged discussion or action may be taken on any item raised during the public comment period, although informational answers to questions may be given and matters may be referred for placement on a future agenda.)

COUNCIL COMMENTS

CONSENT CALENDAR

1 2
.

City Manager’s approval Settlement Agreements and Participation Forms for the City’s participation in the National Opioid Settlement Agreements with Teva, Allergan, Walmart, Walgreens, and CVS.
3 .

City Manager’s approval of the California State-Subdivision Agreements Regarding Distribution and Use of Settlement Funds relating to the National Opioid Settlement Agreements with Teva, Allergan, Walmart, Walgreens, and CVS.

ADJOURNMENT
Public Access To Agenda Documents
A complete packet of information containing staff reports and exhibits related to each item for the open session of this meeting, and provided to the City Council, are available for public review at least 72 hours prior to a Council /Agency/Authority Meeting at Suisun City Hall 701 Civic Center Blvd., Suisun City. Agenda related writings or documents provided to a majority of the Council/Board/Commissioners less than 72 hours prior to a Council/Agency/Authority meeting related to an agenda item for the open session of this meeting will be made available for public inspection during normal business hours. An agenda packet is also located at the entrance to the Council Chambers during the meeting for public review. The city may charge photocopying charges for requested copies of such documents. To the extent feasible, the agenda packet is available for online public viewing on the City’s website:
https://www.suisun.com/Government/City-Council/Agendas

The City Council/Agency/Authority hopes to conclude its public business by 10:00 p.m. No new items will be taken up after 10:00 p.m., unless so moved by a majority of the City Council, and any items remaining will be agendized for the next meeting. The agendas have been prepared with the hope that all items scheduled will be discussed within the time allowed.

Accommodations
If you require an accommodation to participate in this meeting, please contact the City Clerk at (707) 421-7302 or [email protected]. The City’s reasonable accommodation policy is available for review on the City’s website at www.suisun.com/government/city-council/, you may request an electronic copy or have a copy mailed to you. Please note that for accommodations that are not readily available, you must make your request as soon as you can prior to the time of the meeting.

Decorum
All participants are expected to conduct themselves with mutual respect. Conduct that disrupts meetings will be addressed in accordance with Section 54957.95 of the Government Code.

Ordinances
Ordinances are city laws contained in the Suisun City Municipal Code. Enacting a new city law or changing an existing one is a two-step process. Government Code 36934 provides, except when, after reading the title, further reading is waived by regular motion adopted by majority vote all ordinances shall be read in full either at the time of introduction or passage; provided, however, that a reading of the title or ordinance shall not be required if the title is included on the published agenda and a copy of the full ordinance is made available to the public online and in print at the meeting prior to the introduction or passage.

Certification of Posting
Agendas for regular and special meetings are posted in accordance with the Brown Act at Suisun City Hall, 701 Civic Center Boulevard, Suisun City, CA. Agendas may be posted at other Suisun City locations including:

Suisun City Fire Station, 621 Pintail Drive, Suisun City, CA; Suisun City Senior Center, 318 Merganser Drive, Suisun City, CA; Joe Nelson Center, 611 Village Drive, Suisun City, CA;
Harbor Master Office, 800 Kellogg Street, Suisun City, CA.

I, Donna Pock, Deputy City Clerk for the City of Suisun City, declare under penalty of perjury that the above agenda was posted and available for review, in compliance with the Brown Act. 2 AGENDA ITEM NO. 1

AGENDA TRANSMITTAL

MEETING DATE:

April
5, 2023

CITY AGENDA ITEM:

Approve of Additional National Opioid Settlements with Teva, Allergan, Walmart, Walgreens, and CVS by ratifying the following:

1 .

Adopt a Resolution Authorizing The City Of Suisun City To Enter Into The Master Settlement Agreements With Cvs, Allergan, Teva, Walmart, And Walgreens (Including The Related Participation Agreements); Agree To The Terms Of The Related State-Subdivision Agreements And Authorize Entry Into The Related State-Subdivision Allocation Agreements With The Attorney General; And Authorizing The City Manager To Carry Out Further Related Acts. 2 .

FISCAL IMPACT:

None.

STRATEGIC PLAN:

Provide Good Governance.

BACKGROUND:

In 2021, the City entered into settlement agreements with McKesson Corporation, Cardinal Health, Inc., and AmerisourceBergen Corporation. (collectively, the “Distributors”) and Johnson & Johnson, Janssen Pharmaceuticals, Inc., Ortho-McNeil-Janssen Pharmaceuticals, Inc., and Janssen Pharmaceutica, Inc. (collectively, the “Manufacturer”) (for purposes of this submittal, the Distributors and Manufacturer are collectively referred to as the “2021 Settling Defendants”). The 2021 settlement agreement related to litigation (the City was not a party to this litigation) by various States, cities, and counties relating to the 2021 Settling Defendants’ manufacture and distribution of opioids and, in particular, the impact of such activities upon the national opioid epidemic (“2021 Settlement Agreements”). The 2021 Settlement Agreements required that a “critical mass” of public agencies participate in order for it to become effective, which was achieved in 2022.

At this time, a new settlement is proposed with Teva, Allergan, Walmart, Walgreens, and CVS, who are additional defendants that are retailers and manufacturers of opioids (for the purposes of this submittal, Teva, Allergan, Walmart, Walgreens, and CVS are collectively referred to as the “2023 Settling Defendants”).

STAFF REPORT:

The terms of the 2023 Settlement Agreements are similar to the 2021 Settlement Agreements, which includes the requirement that a critical mass of participation is required, provides for a broad release of the 2023 Settling Defendants from liability relating to opioids, and, further, direct or indirect payment of settlement funds to the various local agencies agreeing to participate. Additional information about these settlements can be found here: www.nationalopioidsettelment.com. The City Manager approved the 2023 Settlement Agreements on March 1, 2023. 3 With respect to the release, as indicated above, it is a very broad release covering any activities by the 2023 Settling Defendants relating to opioids. It arguably also includes a release from liability relating to land use matters for facilities that manufactured, distributed, or sold opioids within the city.

With respect to the settlement funds, the 2023 Settlement Agreements could provide up to approximately $1.8 billion to California. This amount assumes maximum participation. Similar to the 2021 Settlement Agreements, the more local agencies that participate, the more funds will be available to California. Further, the City’s share of this amount will be distributed over a 5 to 15 year period depending on the settlement agreement.

It must be emphasized that the $1.8 billion amount is an estimate and assumes a best-case scenario where all local agencies participate. The actual amount will not be known until the process has completed.

Similar to the 2021 Settlement Agreements, the
use of the funds is restricted to opioid remediation (e.g., addiction treatment programs). By default, these funds are allocated to the County, but the City is able to elect to receive a direct distribution; however, use of the funds also requires strict accounting requirements. These requirements only apply to the City if it elects to receive direct distribution and does not apply to the City if the funds go to the County. In terms of enforcement, the State enforces the expenditure requirements. Because of this, it is recommended that the funds be allocated to the County.

Ratification of the City Manager’s approval of Recommendation Nos. 1 and 2 would authorize the City to participate in the National Opioid Settlements with the 2023 Settling Defendants on the terms and conditions of those settlement agreements and, further, approve agreements with the State of California on the distribution of settlement funds, consistent with the 2023 Settlement Agreements. (Attachments 1, 2, and 3).

Approval of Recommendation No. 3 would approve and authorize the City Manager to carry out all necessary acts such that the City can participate in the National Opioid Settlements with Teva, Allergan, Walmart, Walgreens, and CVS, including signing necessary documents and transmittal thereof as necessary.

Approval and authorization to execution, submission, and receipt of all required documents must be completed before
April 18, 2023.

STAFF RECOMMENDATION:

It is recommended that the City Council ratify the following:

1 .

Adopt a Resolution Authorizing The City Of Suisun City To Enter Into The Master Settlement Agreements With Cvs, Allergan, Teva, Walmart, And Walgreens (Including The Related Participation Agreements); Agree To The Terms Of The Related State-Subdivision Agreements And Authorize Entry Into The Related State-Subdivision Allocation Agreements With The Attorney General; And Authorizing The City Manager To Carry Out Further Related Acts. 2 .

City Manger’s approval of the Settlement Agreements and Participation Forms for the City’s participation in the National Opioid Settlement Agreements with Teva, Allergan, Walmart, Walgreens, and CVS.
3 .

4 DOCUMENTS ATTACHED:

1 .

Resolution Authorizing The City Of Suisun City To Enter Into The Master Settlement Agreements With Cvs, Allergan, Teva, Walmart, And Walgreens (Including The Related Participation Agreements); Agree To The Terms Of The Related State-Subdivision Agreements And Authorize Entry Into The Related State-Subdivision Allocation Agreements With The Attorney General; And Authorizing The City Manager To Carry Out Further Related Acts. 2 .

Settlement Participation Form for the City’s participation in the National Opioid Settlements with Teva, Allergan, Walmart, Walgreens, and CVS.
3 .
2023 Settlement Agreements with Teva, Allergan, Walmart, Walgreens, and CVS (due to the length of each agreement, these documents are on file at the City Manager's office in Administration).
4 .

Proposed California State-Subdivision Agreements Regarding Distribution and Use of Settlement Funds in the Teva, Allergan, Walmart, Walgreens, and CVS Settlement Agreements.

PREPARED BY:

Elena Gerli, City Attorney
REVIEWED BY:

Greg Folsom, City Manager
APPROVED BY:

Greg Folsom, City Manager

ATTACHMENTS:
1 Resolution Authorizing the City of Suisun City to Enter into the Master Settlement Agreements with CVS, Allergan, Teva, Walmart, and Walgreens.pdf
2 Settlement Participation Form for the City's Participation in the National Opioid Settlements with Teva, Allergan, Walmart, Walgreens, and CVS.pdf
4 Proposed California State-Subdivision Agreements Regarding Distribution and Use of Settlement Funds in Teva, Allergan, Walmart, Walgreens, and CVS.pdf 5 Resolution No. 2023-__
Adopted April 5, 2023

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RESOLUTION NO. 2023-_____

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SUISUN

CITY, CALIFORNIA, AUTHORIZING THE CITY OF SUISUN CITY

TO ENTER INTO THE MASTER SETTLEMENT AGREEMENTS

WITH CVS, ALLERGAN, TEVA, WALMART, AND WALGREENS
(INCLUDING THE RELATED PARTICIPATION AGREEMENTS);

AGREE TO THE TERMS OF THE RELATED STATE- SUBDIVISION

AGREEMENTS AND AUTHORIZE ENTRY INTO THE RELATED

STATE-SUBDIVISION ALLOCATION AGREEMENTS WITH THE
ATTORNEY GENERAL; AND AUTHORIZING THE CITY MANAGER

TO CARRY OUT FURTHER RELATED ACTS
WHEREAS, the United States is facing an ongoing public health crisis of opioid abuse, addiction, overdose, and death, forcing the State of California and California counties and cities to spend billions of dollars each year to address the direct consequences of this crisis; and, WHEREAS, pending in the U.S. District Court for the Northern District of Ohio is a multidistrict litigation (“MDL”) being pursued by numerous public entity plaintiffs against the manufacturers and distributors of various opioids based on the allegation that the defendants’ unlawful conduct caused the opioid epidemic; and,
WHEREAS, on or about November 14, 2022, a proposed nationwide tentative settlement was reached between the plaintiffs in the MDL and Walmart Inc. (“Walmart”); and, WHEREAS, on or about November 22, 2022, a proposed nationwide tentative settlement was reached between the plaintiffs in the MDL and Teva Pharmaceutical Industries Ltd. and all of its respective past and present direct or indirect parents, subsidiaries, divisions, affiliates, joint ventures, predecessors, successors, assigns, including but not limited to Teva Pharmaceuticals USA, Inc., Actavis LLC (f/k/a Actavis Inc.), Actavis Elizabeth LLC, Actavis Kadian LLC, Actavis Pharma, Inc. (f/k/a Watson Pharma, Inc.), Actavis Kadian LLC, Actavis Laboratories UT, Inc. (f/k/a Watson Laboratories, Inc. – Utah), Actavis Mid Atlantic LLC, Actavis Totowa LLC, Actavis Laboratories FL, Inc. (f/k/a Watson Laboratories, Inc. – Florida), Actavis South Atlantic LL C, Warner Chilcott Company LLC, and Watson Laboratories, Inc., and Anda Inc. (collectively, “Teva”); and,
WHEREAS, on or about November 22, 2022, a proposed nationwide tentative settlement was reached between the plaintiffs in the MDL and Allergan Finance, LLC (f/k/a Actavis, Inc., which in turn was f/k/a Watson Pharmaceutics, Inc.) and Allergan Limited (f/k/a Allergan plc, which, in turn, was f/k/a Actavis plc)(collectively, “Allergan”); and, WHEREAS, on or about December 9, 2022, a proposed nationwide tentative settlement was reached between the plaintiffs in the MDL and CVS Health Corporation and CVS Pharmacy, Inc. and all of their past and present direct and indirect parent and subsidiaries (collectively, “CVS”); and,
WHEREAS, on or about December 9, 2022, a proposed nationwide tentative settlement was reached between the plaintiffs in the MDL and Walgreen Co. (“Walgreens”); and, 6 Resolution No. 2023-__
Adopted April 5, 2023

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WHEREAS, CVS, Teva, Walgreens, Walmart, and Allergan shall be referred in this Resolution as “Settling Defendants”; and
WHEREAS, as part of the settlements with the Settling Defendants, local subdivisions, including certain cities, that are not plaintiffs in the MDL may participate in the settlements in exchange for a release of the Settling Defendants (“Participating Subdivision”); and, WHEREAS, copies of the proposed terms of those proposed nationwide settlements have been set forth in the Master Settlement Agreements with the Settling Defendants; and, WHEREAS, copies of the Master Settlement Agreements have been made available to the City Council with this Resolution (“Master Settlement Agreements”); and, WHEREAS, the Settlement Agreements provide, among other things, for the payment of a certain sum to settling government entities in California including to the State of California and Participating Subdivisions upon occurrence of certain events as defined in the Settlement Agreements (“California Opioid Funds”); and,
WHEREAS, in order to become a Participating Subdivision, the City must enter into “Participation Agreements” which allow participation in the Master Settlement Agreements; and,
WHEREAS, California local governments in the MDL have engaged in extensive discussions with the State Attorney General’s Office (“AGO”) as to how the California Opioid Funds will be allo cated, which has resulted in the Proposed California State -Subdivision Agreements Regarding Distribution and Use of Settlement Funds (“Allocation Agreements”) from the settlements with the Settling Defendants; and, WHEREAS, copies of the Allocation Agreements for all of the settlements with the Settling Defendants have been made available to the City Council with this Resolution; and, WHEREAS, the Allocation Agreements allocate the California Opioid Funds as follows: 15% to the State Fund; 70% to the Abatement Accounts Fund; and 15% to the Subdivision Fund. For the avoidance of doubt, all funds allocated to California from the Settlements shall be combined pursuant to the Allocation Agreements, and 15% of total from each settlement shall be allocated to the State of California (the “State of California Allocation”), 70% to the California Abatement Accounts Fund (“CA Abatement Accounts Fund”), and 15% to the California Subdivision Fund (“CA Subdivision Fund”); and, WHEREAS, under the Master Settlement Agreements, certain local subdivisions that did not file a lawsuit against the Settlement Defendants may qualify to participate in the settlements and obtain funds from the Abatement Account Fund; and, WHEREAS, the City is eligib le to participate in the Settlement and become a CA Participating Subdivision; and,
WHEREAS, the funds in the CA Abatement Accounts Fund (the 70% allocation) will be allocated based on the allocation model developed in connection with the proposed 7 Resolution No. 2023-__
Adopted April 5, 2023

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negotiating class in the National Prescription Opiate Litigation (MDL No. 2804), as adjusted to reflect only those cities and counties that are eligible, based on population or litigation status, to become a CA Participating Subdivision (those above 10,000 in population). The percentage from the CA Abatement Accounts Fund allocated to each CA Participating Subdivision is set forth in Appendix 1 to the Allocation Agreements and provided to the City Council with this Resolution. The City’s share of the CA Abatement Accounts Fund will be a product of the total in the CA Abatement Accounts Fund multiplied by the City’s percentage set forth in Appendix 1 of the Allocation Agreements (the “Local Allocation”); and, WHEREAS, a CA Participating Subdivision that is a city wi ll be allocated its Local Allocation share as of the date on which it becomes a Participating Subdivision. The Local Allocation share for a city that is a CA Participating Subdivision will be paid to the county in which the city is located, unless the city elects to take a direct election of the settlement funds, so long as: (a) the county is a CA Participating Subdivision, and (b) the city has not advised the Settlement Fund Administrator that it requests direct payment at least 60 days prior to a Payment Date; and,
WHEREAS, it the intent of this Resolution is to authorize the City to enter into the Master Settlement Agreements with the Settling Defendants by executing the Participation Agreements and to enter into the Allocation Agreements by executing the signature pages to those agreements.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Suisun City as follows:

Recitals. The Recitals set forth above are true and correct and are incorporated into this Resolution by this reference.

Approval and Authorization. The City Manager is hereby approved and authorized to settle and release the City’s claims against the Settling Defendants in exchange for the consideration set forth in the Master Settlement Agreements, Participation Agreements, Allocation Agreements, and all exhibits thereto.

Further Acts. The City Manager is hereby authorized to carry out all necessary acts such that the City can participate in the Master Settlement Agreements, including, without limitation, execution (as necessary) of the Participation Agreements, Master Settlement Agreements, Allocation Agreements; and all related documents and the transmittal of thereof as necessary and appropriate.

Ratification. All actions heretofore taken by the City Council and other appropria te public officers and agents of the City with respect to the matters contemplated under this Resolution are hereby ratified, confirmed and approved.

Effective Date. This Resolution shall immediately take effect upon passage.

8 Resolution No. 2023-__
Adopted April 5, 2023

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PASSED AND ADOPTED by the City Council of the City of Suisun City at a special meeting thereof held on April 5, 2023, by the following vote:

AYES: Councilmembers:

NOES: Councilmembers:

ABSENT: Councilmembers:

ABSTAIN: Councilmembers:

WITNESS my hand and the seal of the City of Suisun City on April 5, 2023.

Anita Skinner
City Clerk
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Suisun City City CouncilApril 5, 2023

Suisun City City Council
April 5, 2023