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AGENDA ITEM REVIEW FORM
2.E.
Work Session
Meeting Date:
12/02/2020
Department Head:
Kay Macuil
Submitted By:
Kay Macuil, City Attorney, Attorney's Office
Action Requested:
Discussion Item - No Action to be Taken

ITEM:

Discussion and possible directions to staff on any and all matters regarding Order No. 2020-19.  An order of the Mayor and City Council of the City of San Luis, Arizona authorizing and directing the entering into the “One Arizona Opioid Settlement Memorandum of Understanding” regarding a proposed settlement fund settling claims against certain pharmaceutical supply chain participants in the class action titled “In Re National Prescription Opiate Litigation.”  (Kay Marion Macuil, City Attorney)

SUMMARY:

Timeline
  • On November 13, 2019, San Luis City Council passed Order No. 2019-10 (attached), which approved joining the national class-action opioid litigation. 
  • Some of the opioid pharmaceutical supply chain defendants want to settle with all governments in the country, states, counties, cities, and towns; 34,459 jurisdictions. (Native American Tribes, Insurance, School Districts, and Special Taxing Districts are not part of this negotiation).
  • The Court devised a method of allocating possible settlement funds based on data showing the extent to which the opioid crisis has hit areas. It is not based on population.
  • Since April of 2020, the Arizona Attorney General and County Attorneys negotiated the Memorandum of Understanding (MOU) before City Council.  Using the Court's framework, the MOU details a plan for allocating funds in Arizona if there is a settlement. (Note all 7 counties that were represented by outside counsel also represented at least one city.)  All 15 Counties in Arizona signed on. 
  • Chief Civil Deputy County Attorney Bill Kerekes organized a video conference inviting the Mayors, City & Town Managers, and Attorney for November 12.
  • On November 3, 2020, the Attorney General mailed out the MOU to all the cities and towns in Arizona for their consideration.
  • On November 6, 2020, the Arizona League of Cities and Towns sent out an email that Zoom meetings would be organized to explain the MOU and field questions from three (3) outside counsel who represents Arizona cities and counties and were involved in the negotiations with the Attorney General.
  • On November 12, 2020, there was a Zoom meeting for Yuma County, Yuma City, Somerton, San Luis, and Wellton, and Statewide on November 13, 2020.  The San Luis Attorney attended both. 
Explanation of the Plan
The City Attorney will provide a slide presentation to explain the plan for allocating funds.  The Litigating attorney for Kingman provided the attached brief explanation.  The One Arizona Opioid Settlement and its exhibits are attached.

Next Steps
If the decision is to join in the plan, the signed MOU is due to the Arizona Attorney General by December 15, 2020.  This item will be on the Regular Agenda on December 9, 2020, for action as well as an executive session.

RECOMMENDATION / SUGGESTED MOTION:

Discussion and possible instructions to staff only, no action.

Fiscal Impact

IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
Yes
CITY/STATE/FEDERAL FUNDS:
Other
TOTAL:
TBD
BUDGETED AMOUNT:
N/A
AVAILABLE AMOUNT TO TRANSFER:
N/A
ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
N/A

FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):

If there are settlements, there will be additional funds available to the city to address the opioid crisis.

Attachments