HomeMy WebLinkAbout10415ORDINANCE NO. 10415
AN ORDINANCE APPROVING AND AUTHORIZING THE
MAYOR TO SIGN SETTLEMENT PARTICIPATION AND
GENERAL RELEASE AGREEMENTS WITH (1) TEVA
PHARMACEUTICAL INDUSTRIES, LTD (2) ALLERGAN
FINANCE, LLC / ALLERGAN LIMITED (3) WALMART, INC. (4)
CVS HEALTH CORPORATION / CVS PHARMACY, INC. AND (5)
WALGREEN CO., TO RECEIVE SETTLEMENT FUNDS BY THE
CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION,
AS A RESULT OF THE OPIOID CRISIS
BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
The Settlement Participation and General Release Agreements (“Agreements”) attached
hereto, with the following five (5) business entities, concerning the recovery of settlement funds
by the City of Pueblo, a Colorado municipal corporation, as a result of the opioid crisis, having
been approved as to form by the City Attorney, are hereby approved:
1. Teva Pharmaceutical Industries Ltd.
2. Allergan Finance, LLC / Allergan Limited,
3. Walmart, Inc.,
4. CVS Health Corporation/CVS Pharmacy, Inc.,
5. Walgreen Co.
SECTION 2.
The Mayor is hereby authorized to execute said Agreements for and on behalf of the
City and the City Clerk is authorized to affix the seal of the City thereto and attest same.
SECTION 3.
The officers and staff of the City are authorized to perform any and all acts consistent
with this Ordinance and the attached Agreements to implement the policies and procedures
described herein.
SECTION 4.
This Ordinance shall become effective on the date of final action by the Mayor and City
Council.
Action by City Council:
Introduced and initial adoption of Ordinance by City Council on February 27, 2023.
Final adoption of Ordinance by City Council on March 13, 2023 .
President of City Council
Action by the Mayor:
☒ Approved on March 15, 2023 .
□ Disapproved on based on the following objections:
Mayor
Action by City Council After Disapproval by the Mayor:
□ Council did not act to override the Mayor's veto.
□ Ordinance re-adopted on a vote of , on
□ Council action on _______ failed to override the Mayor’s veto.
President of City Council
ATTEST
City Clerk
City Clerk's Office Item # R13
Background Paper for Proposed
Ordinance
February 27, 2023
COUNCIL MEETING DATE:
TO: President Heather Graham and Members of City Council
CC: Mayor Nicholas A. Gradisar
VIA: Marisa Stoller, City Clerk
FROM: Daniel C. Kogovsek, City Attorney
SUBJECT: AN ORDINANCE APPROVING AND AUTHORIZING THE MAYOR TO
SIGN SETTLEMENT PARTICIPATION AND GENERAL RELEASE
AGREEMENTS WITH (1) TEVA PHARMACEUTICAL INDUSTRIES, LTD
(2) ALLERGAN FINANCE, LLC / ALLERGAN LIMITED (3) WALMART,
INC. (4) CVS HEALTH CORPORATION / CVS PHARMACY, INC. AND
(5) WALGREEN CO., TO RECEIVE SETTLEMENT FUNDS BY THE
CITY OF PUEBLO, A COLORADO MUNICIPAL CORPORATION, AS A
RESULT OF THE OPIOID CRISIS
SUMMARY:
This Ordinance approves and authorizes the Mayor to sign five (5) Settlement
Participation and General Release Agreements concerning the recovery of settlement
funds by the City as a result of the opioid crisis.
PREVIOUS COUNCIL ACTION:
On October 27, 2021, by Ordinance No. 10031, the Pueblo City Council approved and
authorized the Mayor to sign:
1. Settlement Agreements with AmerisourceBergen; Cardinal Health; McKesson
and Janssen Pharmaceuticals and its parent company Johnson & Johnson; and
A Memorandum of Understanding and an Escrow Agreement with the Office of the
Colorado Attorney General regarding the distribution of opioid settlement proceeds.
BACKGROUND:
Colorado Attorney General Phil Weiser has reached opioid settlements with Teva
Pharmaceutical Industries Ltd. and Allergan Finance, LLC/Allergan Limited, as well as
with Walmart Inc., CVS Health Corporation/CVS Pharmacy, Inc., and Walgreen Co.
The Mayor is recommending that the City join these settlements. In order to do so, the
attached Settlement Participation and General Release Agreements must be approved
by the Pueblo City Council and returned to the Office of the Colorado Attorney General
no later than April 7, 2023.
FINANCIAL IMPLICATIONS:
If the attached agreements are approved, it is anticipated that the City of Pueblo will
receive opioid settlement funds as follows:
Source Teva Allergan CVS Walgreens Walmart Total
(13 years) (7 years) (10 years) (14 years) (6 years)
Amount $279,527.02 $166,528.90 $369,749.59 $402,063.97 $209,383.47 $1,427,252.95
BOARD/COMMISSION RECOMMENDATION:
Not applicable to this Ordinance.
STAKEHOLDER PROCESS:
Not applicable to this Ordinance.
ALTERNATIVES:
City Council could decide not to participate in the settlement.
RECOMMENDATION:
Approval of the Ordinance.
ATTACHMENTS:
1. OPIOIDS 2 - Five (5) Participation Forms