R 5136 RESOLUTION NO. 5136
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ARROYO GRANDE, CALIFORNIA APPROVING
PARTICIPATION IN THE NATIONAL OPIOID
SETTLEMENT AND AUTHORIZING THE CITY MANAGER
TO EXECUTE THE RELATED PARTICIPATION
AGREEMENTS
WHEREAS, a national multi-district lawsuit regarding the opioid crisis is being adjudicated
in federal court in the Northern District of Ohio and is referred to as the MDL 2804 Opiate
Litigation; and
WHEREAS, on July 21, 2021 the National Prescription Opiate Litigation Multi-District
Litigation (MDL) Plaintiffs' Executive Committee, several State Attorneys General, and
four major defendants announced agreement on terms of proposed nationwide
settlements (the "Settlement Agreement") to resolve all opioids litigation brought by
various states and local political subdivisions against the three largest pharmaceutical
distributors: McKesson, Cardinal Health and AmerisourceBergen ("Distributors"), and
manufacturer Janssen Pharmaceuticals, Inc. and its parent company Johnson &Johnson
(collectively, "Janssen"); and
WHEREAS, the settlement requires the Distributors to pay up to $21 billion and Janssen
to pay up to $5 billion, and that roughly $2.6 billion of this settlement is to be directed to
the State of California and its political subdivisions, subject to the California Attorney
General and political subdivisions reaching an allocation agreement to determine how to
apportion and distribute the settlement funds directed to California; and
WHEREAS, In October 2021, an allocation agreement was reached, whereby 70% of the
total settlement funds sent to California will be allocated to the political subdivisions of the
State that elect to participate in the settlement and release their own potential claims
against the defendants; and
WHEREAS, in order for the City of Arroyo Grande to participate, the City must elect to
participate by January 2, 2022, by completing the Participation Agreements; and
WHEREAS, if the City elects to participate and wants to receive direct settlement
payments, it must notify the Settlement Distributor Administrator, otherwise, the funds will
be directed to the County.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo
Grande does declare, determine, and order as follows:
SECTION 1. The foregoing Recitals are true and correct and are incorporated herein.
SECTION 2. The City Manager is hereby authorized to execute the Participation
Agreements and any other necessary documents, in a form approved by the City
Attorney, required to participate in the Settlement Agreement.
RESOLUTION NO. 5136
PAGE 2
SECTION 3. The City Manager is authorized to take all necessary actions to join in the
settlements in the National Opioid Litigation and to release any potential claims against
the identified defendants, Distributors and Janssen and accept direct settlement
payments based on the terms and conditions set forth in the Settlement Agreement.
SECTION 4. If any section, subsection, sentence, clause, or phrase of this Resolution is
for any reason held to be invalid, such determination shall not affect the validity of the
remaining portions of this Resolution. The City Council hereby declares that it would have
passed this Resolution and each and every section, subsection, sentence, clause, or
phrase not declared invalid without regard to whether any portion of the Resolution would
be subsequently declared invalid or unconstitutional.
On motion of Council Member Barneich, seconded by Council Member Paulding, and on
the following roll call vote, to wit:
AYES: Council Members Barneich, Paulding, Storton, George, and Mayor Ray Russom
NOES: None
ABSENT: None
The foregoing Resolution was passed and adopted this 14th day of December, 2021.
RESOLUTION NO. 5136
PAGE 3
Pt/ Fr/
CAR RAY " *OM, MAYOR
ATTEST:
C
of,
J SSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:
WHITNEY T DONALD, CITY MANAGER
APPROVED AS TO FORM:
TIMOTH . CARM ATTOR1 EY
OFFICIAL CERTIFICATION
I, JESSICA MATSON, City Clerk of the City of Arroyo Grande, County of San Luis
Obispo, State of California, do hereby certify under penalty of perjury, that the attached
Resolution No. 5136 was passed and adopted at a regular meeting of the City Council
of the City of Arroyo Grande on the 14th day of December, 2021.
WITNESS my hand and the Seal of the City of Arroyo Grande affixed this 17th day of
December, 2021.
JESSICA MATSON, CITY CLERK