CC RESOLUTION 5297RESOLUTION NO. 5297
A RESOLUTION APPROVING PARTICIPATION IN TWO
NATIONAL OPIOID LITIGATION SETTLEMENTS AND
AUTHORIZING CITY MANAGER EXECUTION OF RELATED
PARTICIPATION AND SUBDIVISION AGREEMENTS.
The City Council of the city of El Segundo does resolve as follows:
SECTION 1. Findings. The City Council finds as follows:
A. Pending in the U.S. District Court for the Northern District of Ohio is multidistrict
litigation ("Litigation") numerous public entity plaintiffs have pursued against the
manufacturers and distributors of various opioids based on the allegation that
the defendants' unlawful conduct caused the opioid epidemic.
B. On or about July 1, 2021, a proposed nationwide tentative global settlement
("Settlement") was reached between the plaintiffs in the Litigation and several
of the defendants, specifically McKesson Corporation, Cardinal Health, Inc.,
AmerisourceBergen Corporation (collectively, "Distributors"), and Johnson &
Johnson, Janssen Pharmaceuticals, Inc., Ortho-McNeil-Janssen
Pharmaceuticals, Inc., and Janssen Pharmaceutica, Inc. (collectively,
"Manufacturers") (all collectively, "Settling Defendants").
C. The Settlement's terms are set forth in the Distributors Master Settlement
Agreement and the Manufacturers Master Settlement Agreement (collectively
"Settlement Agreements"), and copies of the Settlement Agreements are on file
with the City Clerk and available upon request.
D. The Settlement would require the Distributors and Manufacturers to
respectively pay approximately $21 billion over 18 years and $5 billion over
seven years to participating states, counties, and cities.
E. The state of California ("State") would receive approximately $2.2 billion of the
estimated $21 billion total, a portion which would be distributed to counties and
cities.
F. Under the Settlement, local subdivisions with population over 10,000, including
the city of El Segundo (the "City"), that are not plaintiffs in the Litigation may
participate in the Settlement and obtain certain Settlement funds, in exchange
for a release of claims against the Settling Defendants.
G. The total amount of Settlement funds increases in proportion to the number of
states and local subdivisions that opt in to participate in the Settlement.
H. To participate in the Settlement, the City must execute two allocation
agreements with the State to facilitate the distribution Settlement funds for the
Resolution No. 5297
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City ("Allocation Agreements"). Copies of the Allocation Agreements are on file
with the City Clerk and available upon request.
The City must also execute two participation forms ("Participation Forms") to
confirm its participation in the Settlement and the terms of the Settlement
Agreement, including the dismissal of the Litigation, payment of Settlement
funds, and associated release of claims against the Settlement Defendants.
Copies of the Participation Forms are on file with the City Clerk and available
upon request.
SECTION 2. Approval and Authorization. The City Council approves the City's
participation in the Settlement and authorizes the City Manager to execute the Allocation
Agreements, Participation Forms, and all other necessary documents —subject to the
review and approval of the City Attorney or designee —to effectuate such participation.
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. 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 5. Signature Authority. The Mayor, or presiding officer, is hereby
authorized to affix his signature to this Resolution signifying its adoption by the City
Council of the City of El Segundo, and the City Clerk, or her duly appointed deputy, is
directed to attest thereto.
SECTION 6. Effective Date. This Resolution will take effect immediately upon
adoption and will remain effective unless repealed or superseded.
SECTION 7. City Clerk Actions. The City Clerk will certify to the passage and
adoption of this Resolution, enter it in the City's book of original Resolutions, and make a
record of this action in the meeting's minutes.
PASSED AND ADOPTED this 7th day of December 2021.
Dr' w Boy or
Resolution No. 5297
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ATTEST:
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS
CITY OF EL SEGUNDO )
I, Tracy Weaver, City Clerk of the City of El Segundo, California, do hereby certify that
the whole number of members of the City Council of said City is five; that the foregoing
Resolution No. 5297 was duly passed and adopted by said City Council, approved and
signed by the Mayor of said City, and attested to by the City Clerk of said City, all at a
regular meeting of said Council held on the 7t" day of December 2021, and the same was
so passed and adopted by the following vote:
AYES: Mayor Boyles, Mayor Pro Tern Pimentel, Council Member Pirsztuk, Council
Member Nicol, and Council Member Giroux
NOES: None
ABSENT: None
ABSTAIN: None
it Clerk
M."', 11 =L P-4 r1i il y
APPROVED AS TO FORM
Mar D. Hensley, jCity Attorn