The people of the State of Texas and its communities, including Schertz, have been harmed through the national and statewide epidemic caused by the sale, use and distribution of opioids within the State of Texas. The City of Schertz has been provided information indicating that certain drug companies and their corporate affiliates, parents, subsidiaries, and such other defendants as may be added to the litigation (collectively, “Defendants”) have engaged in fraudulent and reckless marketing as well as fraudulent distribution of opioids that have resulted in addictions and overdoses. These actions, conduct and misconduct have resulted in the death of many Texans and has resulted in the devastation of families and communities across the State. Local governments have been on the front lines of the opioid crisis, which has resulted in significant financial costs to them related to the expenditures and continuing costs for healthcare services, social services, law enforcement and the criminal justice systems. 

On May 13, 2020, the State of Texas, through the Office of the Attorney General, and a negotiation group for Texas political subdivisions entered into an agreement entitled Texas Opioid Abatement Fund Council and Settlement Allocation Term Sheet (hereafter, the Texas Term  Sheet) approving the allocation of any and all opioid settlement funds within the State of Texas. 

The Special Counsel/City Attorney and the State of Texas have recommended that the City Council of the City of Schertz, Texas support the adoption and approval of the Texas Opioid Abatement Fund Council and Settlement Allocation Term Sheet (hereafter, the Texas Term Sheet). By participating in the 'Texas Term Sheet',  the State of Texas’ opportunity to maximize its share of opioid settlement funds will increase and will provide a method to ensure that needed resources reach communities once all negotiations are finalized.

The City Council finds and determines that it is in the best interest of the health, safety, and welfare of the City to participate in the Texas Term Sheet by authorizing the City Manager to execute the Settlement Participation Forms that are required and establish an effective date. 

Staff recommends approval of Resolution 21-R-93.

The monetary settlement due to the City of Schertz for the fraudulent and reckless marketing, as well as fraudulent distribution of opioids that have resulted in addictions and overdoses that the City of Schertz's Public Safety Departments have responded to will help reimburse the city for some of the costs of those service calls. 

Staff recommends that the City Council approve Resolution 21-R-93 which allows the City of Schertz to join the State of Texas and Political Subdivisions of the State as a Party in the Texas Opioid Settlement Agreements that were secured by the State Attorney General; and authorizing the City Manager to execute Settlement Participation Forms and establish an effective date.