HomeMy WebLinkAboutResolution - 4041Resolution No. 4041
STATE OF CALIFORNIA)
COUNTY OF RIVERSIDE) ss
CITY OF SAN JACINTO )
RESOLUTION NO.4041
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
SAN JACINTO CALIFORNIA AUTHORIZING THE CITY
MANAGER TO ENTER INTO THE SETTLEMENT
AGREEMENT WITH KROGER CO., AGREE TO THE
TERMS OF THE STATE -SUBDIVISION AGREEMENT, AND
AUTHORIZE ENTRY INTO THE STATE -SUBDIVISION
AGREEMENT WITH THE ATTORNEY GENERAL
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 June 7, 2024, a proposed nationwide tentative settlement
was reached between the plaintiffs in the MDL and Kroger Co. ("Kroger"); and,
WHEREAS, Kroger shall be referred in this Resolution as the "Settling Defendant";
and
WHEREAS, as part of the settlement with the Settling Defendant, local
subdivisions, including certain cities, that are not plaintiffs in the MDL may participate in
the Settlement in exchange for a release of the Settling Defendants; and,
WHEREAS, copies of the proposed terms of this proposed nationwide settlement
have been set forth in the Master Settlement Agreements with the Settling Defendant;
and,
WHEREAS, copies of the Master Settlement Agreement are on file with the City
Clerk; and,
WHEREAS, the Settlement Agreement provides, 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 Agreement ("California Opioid Funds"); 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
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Resolution No. 4041
Opioid Funds will be allocated, which has resulted in the Proposed California State -
Subdivision Agreements Regarding Distribution and Use of Settlement Funds ("Allocation
} Agreement") from the Settlement with the Settling Defendant; 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
Settlement shall be combined pursuant to the Allocation Agreements, and 15% of the
total from the 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 Agreement, certain local subdivisions
that did not file a lawsuit against the Settlement Defendant may qualify to participate in
the Settlement and obtain funds from the Abatement Account Fund; and,
WHEREAS, the City is eligible 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
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. 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 will 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 Agreement with the Settling Defendant by executing the Participation
Agreement and to enter into the Allocation Agreement by executing the signature pages
to those agreements.
NOW THEREFORE, be it resolved by the City Council of the City of San Jacinto
hereby finds, determines, and resolves as follows:
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Resolution No. 4041
SECTION 1. The above recitals are true and correct and are incorporated herein
by this reference.
i
SECTION 2. The City Manager is authorized to settle and release the City's claims
against the Settling Defendant in exchange for the consideration set forth in the
Settlement Agreement and Allocation Agreement, including but not limited to taking the
following measures:
1. The execution of the Participation Agreement with the Settling Defendant
and any and all documents ancillary thereto.
2. The execution of the Proposed California State -Subdivision Agreement
Regarding Distribution and Use of Settlement Funds with the Settling
Defendant by executing the signature pages to the Allocation Agreement.
3. Notify the Settlement Fund Administrator that the City does not request
direct payment under the Allocation Agreement at least 60 days prior to the
Payment Date in the Settlement Agreement.
SECTION 3. CEQA. That the City Council finds this Resolution is not subject to
the California Environmental Quality Act (CEQA) in that the activity is covered by the
general rule that CEQA applies only to projects which have the potential for causing a
significant effect on the environment. Where it can be seen with certainty, as in this case,
that there is no possibility that the activity in question may have a significant effect on the
environment, the activity is not subject to CEQA.
SECTION 4. Severability. If any provision of this Resolution or the application
thereof to any person or circumstance is held invalid, such invalidity shall not affect other
provisions or applications, and to this end the provisions of this Resolution are declared
to be severable.
SECTION 5. Effective Date. This Resolution shall become effective immediately.
PASSED, APPROVED AND ADOPTED this 6th day of August 2024, by the following
vote:
AYES: Vandever, Ledezma, Ruiz, Ayala
NAYS: None
ABSENT: Hawkins
ABSTAIN: None
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Resolution No. 4041
ATTEST:
(�—1 A
Jul' spinoza, City Clerk
APPROVED AS TO FORM:
BEST, BEST & KRIEGER LLP
r / /
Craig Hayes, City Attorney
CITY OF SAN JACINTO:
Phil
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Resolution No. 4041
CERTIFICATION
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE )ss
CITY OF SAN JACINTO )
I, Julia Espinoza, City Clerk of the City of San Jacinto, do hereby certify that the
foregoing Resolution No. 4041 was passed, approved, and adopted at the Regular
Meeting of the San Jacinto City Council held on the 011 day of August 2024.
AYES: Vandever, Ledezma, Ruiz, Ayala
NAYS: None
ABSENT: Hawkins
ABSTAIN: None
WITNESS MY HAND AND OFFICIAL SEAL this 6th day of August 2024.
,IC7
J is Spinoza, City Clerk
of San Jacinto
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