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HomeMy WebLinkAbout10745 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