HomeMy WebLinkAboutReso 60-24 Kroger Opioid SettlementRESOLUTION NO. 60-24
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF MORRO BAY, CALIFORNIA,
AUTHORIZING THE CITY OF MORRO BAY TO ENTER INTO
THE MASTER SETTLEMENT AGREEMENT WITH KROGER CO
(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
THE CITY COUNCIL
City of Morro Bay, California
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 September 8, 2023, a proposed nationwide tentative settlement
was reached between the plaintiffs in the MDL and Kroger Co. ("Kroger"); and,
WHEREAS, as part of the settlement with Kroger, local subdivisions, including certain
cities, that are not plaintiffs in the MDL may participate in the settlement in exchange for a release
of Kroger ("Participating Subdivision"); and,
WHEREAS, copies of the proposed terms of those proposed nationwide settlements have
been set forth in the Master Settlement Agreement with Kroger; and,
WHEREAS, copies of the Master Settlement Agreement have been made available to the
City Council with this Resolution ("Master Settlement Agreement"); and,
WHEREAS, the Master Settlement Agreement provide, among other things, for the
payment of up to approximately $1.2 billion to settling government entities in the United States,
including to the State of California and Participating Subdivisions upon occurrence of certain
events as defined in the Master Settlement Agreements ("Califomia 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 Agreement; 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 allocated, which has resulted in the Proposed Califomia State -Subdivision
Agreements Regarding Distribution and Use of Settlement Funds ("Allocation Agreements") from
01181.0001 / 1013686.1
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, under the Master Settlement Agreement, 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 eligible to participate in the Master Settlement Agreements and
become a CA Participating Subdivision; and,
WHEREAS, City's share of the CA portion of the settlement funds will be determined
based upon a final calculation as provided in 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 is the intent of this Resolution 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, THE CITY COUNCIL OF THE CITY OF MORRO BAY,
CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. Recitals. The Recitals set forth above are true and correct and are
incorporated into this Resolution by this reference.
Section 2. Approval and Authorization. The City Manager is hereby approved and
authorized to settle and release the City's claims against Kroger in exchange for the consideration
set forth in the Master Settlement Agreement, Participation Agreement, Allocation Agreement,
and all exhibits thereto.
Section 3. Further Acts. The City Manager is hereby authorized to carry out all
necessary acts such that the City can participate in the Master Settlement Agreement, including,
without limitation, execution (as necessary) of the Participation Agreement, Master Settlement
Agreement, Allocation Agreement, and all related documents; and the transmittal of thereof as
necessary and appropriate.
Section 4. Ratification. All actions heretofore taken by the City Council and other
appropriate public officers and agents of the City with respect to the matters contemplated under
this Resolution are hereby ratified, confirmed and approved.
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Section 5. Certification, Adoption and Effective Date. That the City Clerk shall
certify to the passage and adoption of this Resolution and enter it into the book of original
Resolutions. This Resolution shall be effective immediately upon passage and adoption.
PASSED, APPROVED AND ADOPTED by the City Council, City of Morro Bay, at a
regular meeting held on the 10th day of September, 2024 by the following vote:
AYES:
Wixom, Barton, Edwards, Ford, Landrum
NOES:
None
ABSENT:
None
ABSTAIN:
None
RECUSE:
None
11U VD k n-n
CAR WIXOM, Mayor
ATTEST:
2L,4�
DANA SWANSON, City Clerk
01181.000111013686.1