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City Clerk's Office Item # R8
Background Paper for Proposed
Ordinance
COUNCIL MEETING DATE: July 22, 2024
TO: President Mark Aliff and Members of City Council
CC: Mayor Heather Graham
VIA: Marisa Stoller, City Clerk
FROM: Bob Jagger, Deputy City Attorney
SUBJECT: AN ORDINANCE APPROVING AND AUTHORIZING THE MAYOR TO
SIGN A SUBDIVISION PARTICIPATION AND RELEASE FORM WITH
RESPECT TO THE NATIONAL OPIOIDS SETTLEMENT REACHED
WITH THE KROGER CO.
SUMMARY:
This Ordinance approves and authorizes the Mayor to sign a Subdivision Participation
and Release Form with respect to the recovery of settlement funds by the City as a
result of the opioid crisis and specifically the national opioid settlement reached with
PREVIOUS COUNCIL ACTION:
Ordinance No. 10031 (10/27/2021). The Pueblo City Council approved and authorized
the Mayor to sign:
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.
Ordinance No. 10406 (3/13/2023). This Ordinance establishes Fund No. 226 - Opioid
Abatement Settlement, and budgets and appropriates funds which have been
distributed and will be paid to the City in the future from the National Opioid Settlement
fund.
Ordinance No. 10415 (3/13/2023). The Pueblo City Council approved and authorized
the Mayor to sign Settlement Participation and General Release Agreements with
respect to 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.
BACKGROUND:
Colorado is participating in the Kroger Settlement and pursuant thereto Colorado
Attorney General Phil Weiser has reached a settlement with The Kroger Co. for its role
in the opioid crisis. It is recommended that the City participate in this settlement. In
order to do so, the Subdivision Participation and Release Form must be approved by
the Pueblo City Council and returned to the Office of the Colorado Attorney General no
later than August 12, 2024.
All opioid settlement funds that are received as a result of the settlement will follow the
same Colorado Opioid Settlement Memorandum of Understanding that was signed in
2021 pursuant to Ordinance No. 10031. Under the Colorado MOU, settlement proceeds
will be distributed as follows:
1.
2.
3.
4. frastructure
FINANCIAL IMPLICATIONS:
If the attached agreements are approved, it is anticipated that the City of Pueblo will
receive approximately $360,186 as its Participating Local Government Share
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. Participation and Release Form
ORDINANCE NO. 10745
AN ORDINANCE APPROVING AND AUTHORIZING THE
MAYOR TO SIGN A SUBDIVISION PARTICIPATION AND
RELEASE FORM WITH RESPECT TO THE NATIONAL OPIOIDS
SETTLEMENT REACHED WITH THE KROGER CO.
BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
Subdivision Participation and Release Form with respect to the recovery of settlement
funds by the City as a result of the opioid crisis and specifically the national opioid settlement
reached with The Kroger Co., a copy of which is attached hereto, is hereby approved.
SECTION 2.
The Mayor is hereby authorized to execute said Participation and Release Form 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 Participation and Release Form to implement the policies
and procedures described herein.
SECTION 4.
Pursuant to Ordinance No. 10406, all distributed funds under the settlement are
budgeted and appropriated into Fund No. 226 - Opioid Abatement Settlement and shall only be
used for payment of eligible expenses.
SECTION 5.
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 July 08, 2024.
Final adoption of Ordinance by City Council on July 22, 2024.
____________________________
President of City Council
Action by the Mayor:
Approved on _______________.
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 _____________
____________________________
President of City Council
ATTEST
________________________________
City Clerk