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Home My WebLink AboutReso 50-25 - 2025 Authorize City Manager re Natl Opioid Settlements_Sackler and Secondary Defs - signed01181.0001/1013686.1 RESOLUTION NO. 50-25 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA, AUTHORIZING THE CITY OF MORRO BAY TO ENTER INTO NATIONAL OPIOID SETTLEMENT AGREEMENTS WITH PURDUE PHARMA, SACKLER FAMILY AND SECONDARY MANUFACTURERS; AGREE TO THE TERMS OF THE RELATED STATE-SUBDIVISION AGREEMENTS AND AUTHORIZE ENTRY INTO THE RELATED STATE- SUBDIVISION ALLOCATION AGREEMENTS; AND AUTHORIZING THE CITY MANAGER TO CARRY OUT FURTHER ACTS RELATED TO THE CITY’S IMPLEMENTATION OF NATIONAL OPIOID SETTLEMENT AGREEMENTS T H E C I T Y C O U N C I L City of Morro Bay, California WHEREAS, the United States continues to face an ongoing public health crisis of opioid abuse, addiction, overdose, and death, forcing the State of California and California counties and cities to spend billions of dollars each year to address the direct consequences of this crisis; and, WHEREAS, pending in the U.S. District Court for the Northern District of Ohio is a multidistrict litigation (“MDL”) being pursued by numerous public entity plaintiffs against the manufacturers and distributors of various opioids based on the allegation that the defendants’ unlawful conduct caused the opioid epidemic; and, WHEREAS, a proposed nationwide tentative settlement has been reached with Purdue Pharma L.P. and the Sackler Family (“Purdue-Sackler Settlement”); and, WHEREAS, a proposed nationwide tentative settlement has been reached with opioid manufacturers Alvogen, Amneal, Apotex, Hikma, Indivior, Mylan, Sun and Zydus (“Secondary Manufacturers Settlement”); and, WHEREAS, as part of the Purdue-Sackler Settlement and Secondary Manufacturers Settlement (collectively “Settling Parties”), local subdivisions, including certain cities, that are not plaintiffs in the MDL may participate in the settlement in exchange for a release of claims (“Participating Subdivision”); and, WHEREAS, copies of the terms of the proposed Purdue-Sackler and Secondary Manufacturers Settlement have been set forth in national settlement agreements and related forms (“Settlement Agreements”); and, WHEREAS, copies of the Settlement Agreements have been made available to the City Council with this Resolution; and, WHEREAS, the Settlement Agreements provide, among other things, for payments collectively totaling up to potentially over $5 billion to settling government entities in the United States, including to the State of California and Participating Subdivisions upon occurrence of certain events as defined in the Settlement Agreements (“California Opioid Funds”); and, WHEREAS, in order to become a Participating Subdivision, the City must enter into participation agreements which allow participation in the Settlement Agreements; and, WHEREAS, California local governments in the MDL have previously engaged in extensive discussions with the State Attorney General’s Office (“AGO”) as to how the California Opioid Funds will be allocated, which has resulted in the California State-Subdivision Agreements Regarding Distribution and Use of Settlement Funds (“Allocation Agreement”) from the national opioid settlements; and, WHEREAS, a copy of the previous Allocation Agreement for the Distributor National Opioid Settlement has been made available to the City Council with this Resolution and is expected to substantially mirror the final Allocation Agreements for the subject settlements; and, WHEREAS, under the Settlement Agreements, certain local subdivisions that did not file a lawsuit against the Settlement Defendants may qualify to participate in the settlements and obtain settlement funds; and, WHEREAS, the City is eligible to participate in the Settlement Agreements and become a CA Participating Subdivision; and, WHEREAS, City’s share of the CA portion of the settlement funds will be determined based upon a final calculation as provided in the final Allocation Agreements (the “Local Allocation”); and, WHEREAS, a CA Participating Subdivision that is a city will be allocated its Local Allocation share as of the date on which it becomes a Participating Subdivision. The Local Allocation share for a city that is a CA Participating Subdivision will be paid to the county in which the city is located, unless the city elects to take a direct election of the settlement funds, so long as: (a) the county is a CA Participating Subdivision, and (b) the city has not advised the Settlement Fund Administrator that it requests direct payment at least 60 days prior to a Payment Date; and, WHEREAS, it is the intent of this Resolution to authorize the City to enter into the Settlement Agreements with the Settling Parties by executing the participation agreements and to enter into the Allocation Agreements by executing the signature pages to those agreements. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MORRO BAY, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS: Section 1. Recitals. The Recitals set forth above are true and correct and are incorporated into this Resolution by this reference. Section 2. Approval and Authorization. The City Manager is hereby approved and authorized to settle and release the City’s claims against the Settling Parties in exchange for the consideration set forth in the Settlement Agreements, Participation Agreements, Allocation Agreements, and all exhibits thereto. Section 3. Further Acts. The City Manager is hereby authorized to carry out all necessary acts such that the City can participate in and implement the Settlement Agreements, including, without limitation, execution and transmittal (as necessary) of the Participation Agreements, Allocation Agreements, and all related documents; and the direct election or deferral of settlement payments in accordance with the City’s approved budget, as may be amended. Section 4. Ratification. All actions heretofore taken by the City Council and other appropriate public officers and agents of the City with respect to the matters contemplated under this Resolution are hereby ratified, confirmed and approved. Section 5. Certification, Adoption and Effective Date. That the City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original Resolutions. This Resolution shall be effective immediately upon passage and adoption. PASSED, APPROVED AND ADOPTED by the City Council, City of Morro Bay, at a regular meeting held on the 23rd day of September, 2025 by the following vote: AYES: Wixom, Eckles, Edwards, Landrum, Luffee NOES: None ABSENT: None ABSTAIN: None RECUSE: None ______________________________ CARLA WIXOM, Mayor ATTEST: _____________________________ DANA SWANSON, City Clerk Carla Wixom (Sep 24, 2025 11:15:57 PDT) Carla Wixom Reso 50-25 - 2025 Authorize City Manager re Natl Opioid Settlements_Sackler and Secondary Defs Final Audit Report 2025-09-24 Created:2025-09-24 By:Heather Goodwin (hgoodwin@morrobayca.gov) Status:Signed Transaction ID:CBJCHBCAABAAX3zTyqfR2rNvyy77-mYCwzVgxUQ08gBM "Reso 50-25 - 2025 Authorize City Manager re Natl Opioid Settle ments_Sackler and Secondary Defs" History Document created by Heather Goodwin (hgoodwin@morrobayca.gov) 2025-09-24 - 6:11:28 PM GMT Document emailed to cwixom@morrobayca.gov for signature 2025-09-24 - 6:12:12 PM GMT Email viewed by cwixom@morrobayca.gov 2025-09-24 - 6:15:27 PM GMT Signer cwixom@morrobayca.gov entered name at signing as Carla Wixom 2025-09-24 - 6:15:55 PM GMT Document e-signed by Carla Wixom (cwixom@morrobayca.gov) Signature Date: 2025-09-24 - 6:15:57 PM GMT - Time Source: server Document emailed to Dana Swanson (dswanson@morrobayca.gov) for signature 2025-09-24 - 6:15:59 PM GMT Email viewed by Dana Swanson (dswanson@morrobayca.gov) 2025-09-24 - 8:05:57 PM GMT Document e-signed by Dana Swanson (dswanson@morrobayca.gov) Signature Date: 2025-09-24 - 8:06:07 PM GMT - Time Source: server Agreement completed. 2025-09-24 - 8:06:07 PM GMT