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AGENDA ITEM REVIEW FORM |
6.H.
Regular City Council Meeting
- Meeting Date:
- 06/26/2024
- Department Head:
- Kay Macuil
- Submitted By:
- Kay Macuil, City Attorney, Attorney's Office
Action Requested:
Motion
Order
Order
ITEM:
Discussion and possible action on any and all matters regarding Order No. 2024-04. An order of the Mayor and City Council of the City of San Luis, Arizona, authorizing joining the Settling States, the Participating Subdivisions, and Kroger in a proposed settlement agreement resolving legal claims against Kroger for alleged misconduct related to opioids. (Kay Marion Macuil, City Attorney)
SUMMARY:
On November 13, 2019, the City Council authorized participating in the In re National Prescription Opiate Litigation multi-jurisdictional lawsuit against manufacturers, distributors, and retailers of prescription opiate drugs for reimbursement for money spent addressing the opioid crisis. That case against the corporations included in 2019 ended, and the money is being distributed.
On May 30, 2024, the city received a notice of a new national opioid settlement. Kroger's supermarket pharmacy was not one of the defendants in the In re National Prescription Opiate Litigation but has now proposed a separate settlement through the same case. Before political subdivisions like cities can join the settlement, the state they are a part of must join. The notice alerted San Luis to its eligibility because Arizona had opted in. The opt-in requirement to participate in the Kroger settlement is due August 12, 2024. The opt-in forms will be sent sometime before then. There will be approximately $1.2 billion to be divided among the participating states and political subdivisions. Arizona will be allocated approximately 5.7% of the overall settlement, and of that 5.7%, San Luis will get approximately 0.00096384%. The settlement requires Kroger to follow a compliance program to prevent future misconduct. The participating states and political subdivisions will have options for using the money to abate the opioid crisis, including strategies for first responders.
This Order allows the Mayor to sign the opt-in form when received and the staff to take any other action necessary to preserve the city's standing in the settlement.
The notice included a link to the proposed settlement. The PDF is attached to this agenda item.
On May 30, 2024, the city received a notice of a new national opioid settlement. Kroger's supermarket pharmacy was not one of the defendants in the In re National Prescription Opiate Litigation but has now proposed a separate settlement through the same case. Before political subdivisions like cities can join the settlement, the state they are a part of must join. The notice alerted San Luis to its eligibility because Arizona had opted in. The opt-in requirement to participate in the Kroger settlement is due August 12, 2024. The opt-in forms will be sent sometime before then. There will be approximately $1.2 billion to be divided among the participating states and political subdivisions. Arizona will be allocated approximately 5.7% of the overall settlement, and of that 5.7%, San Luis will get approximately 0.00096384%. The settlement requires Kroger to follow a compliance program to prevent future misconduct. The participating states and political subdivisions will have options for using the money to abate the opioid crisis, including strategies for first responders.
This Order allows the Mayor to sign the opt-in form when received and the staff to take any other action necessary to preserve the city's standing in the settlement.
The notice included a link to the proposed settlement. The PDF is attached to this agenda item.
RECOMMENDATION / SUGGESTED MOTION:
I MOVE TO APPROVE ORDER NO. 2024-04, AS PRESENTED.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- Please see the fiscal impact statement
- CITY/STATE/FEDERAL FUNDS:
- Please see the fiscal impact statement
- TOTAL:
- Please see the fiscal impact statement
- BUDGETED AMOUNT:
- Please see the fiscal impact statement
- AVAILABLE AMOUNT TO TRANSFER:
- Please see the fiscal impact statement
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- Please see the fiscal impact statement
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
This Agenda Item authorizes the Mayor to sign and the staff to take necessary steps to join the Kroger Co. proposed settlement agreement related to alleged misconduct related to the opioid crisis. If the settlement is resolved, the city would receive a share of the settlement money. There is no cost to the city. The attorneys working on the case are paid directly from the settlement as shown in the attached proposed settlement agreement starting on page 425.