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City Clerk's Office Item # S18
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Background Paper for Proposed
Action Item
COUNCIL MEETING DATE: April 27, 2026
TO: President Mark Aliff and Members of City Council
CC: Mayor Heather Graham
VIA: Clyde Bishop, City Clerk
FROM: Chris Noeller, Chief of Police
SUBJECT: AN ORDINANCE APPROVING AND AUTHORIZING THE MAYOR TO
SIGN A COMBINED SUBDIVISION PARTICIPATION AND RELEASE
FORM WITH RESPECT TO THE NATIONAL OPIOIDS SETTLEMENT
REACHED WITH ASSOCIATED PHARMACIES, INC.; J M SMITH
CORPORATION; LOUISIANA WHOLESALE DRUG COMPANY, INC.;
MORRIS AND DICKSON CO.; NORTH CAROLINA MUTUAL
WHOLESALE DRUG COMPANY, INC.; AND UNITED NATURAL
FOODS, INC. ("SIX REMNANT DEFENDANTS")
SUMMARY:
This Ordinance approves and authorizes the Mayor to sign a Subdivision Participation
and General Release Agreement concerning the recovery of settlement funds by the City
as a result of the opioid crisis.
PREVIOUS COUNCIL ACTION:
Since 2021, the City Council has approved settlement participation agreements with
respect to previous settlement agreements between the Colorado Attorney General and
opioid manufacturers and distributors.
BACKGROUND:
A new proposed national opioids settlement ("Six Remnant Defendants Settlement") has
been reached with six regional distributors/dispenser defendants: Associated
Pharmacies, Inc. (and American Associated Pharmacies); J M Smith Corporation;
Louisiana Wholesale Drug Company, Inc.; Morris and Dickson Co.; North Carolina
Mutual Wholesale Drug Company, Inc.; and United Natural Foods, Inc. (including its
subsidiaries SuperValu and Advantage Logistics).
The Administration is recommending that the City join in the Six Remnant Defendants
Settlement. 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 May 4, 2026.
FINANCIAL IMPLICATIONS:
The state of Colorado stands to receive an estimated $97,625,000.00 if enough local
governments join the settlement, and the City of Pueblo would receive a small portion of
those funds according to the distribution schedule.
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 Form -Six Remnant Defendants Settlement
ORDINANCE NO. 1116,1
AN ORDINANCE APPROVING AND AUTHORIZING THE MAYOR
TO SIGN A COMBINED SUBDIVISION PARTICIPATION AND
RELEASE FORM WITH RESPECT TO THE NATIONAL OPIOIDS
SETTLEMENT REACHED WITH ASSOCIATED PHARMACIES,
INC.; J M SMITH CORPORATION; LOUISIANA WHOLESALE
DRUG COMPANY, INC.; MORRIS AND DICKSON CO.; NORTH
CAROLINA MUTUAL WHOLESALE DRUG COMPANY, INC.; AND
UNITED NATURAL FOODS, INC. ("SIX REMNANT
DEFENDANTS")
BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that:
SECTION 1.
The Combined Subdivision Participation and Release Form for the Six Remnant
Defendants Settlement, a copy of which is attached hereto, is hereby approved.
SECTION 2.
The Mayor is hereby authorized to execute said Combined Subdivision 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 April 1 q, 2026.
Final adoption of Ordinance by City Council on April 27, 2026.
Vice Presider# Of City
Action by the Mayor:
Approved on
Disapproved on based on the following objections:
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
ATTE
City Cir