Discussion and possible action 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 plan to allocate potential global settlement funds from the class action titled “In Re National Prescription Opiate Litigation.”  (Kay Marion Macuil, City Attorney)

The "One Arizona Opioid Settlement Memorandum" ("MOU") is a plan, not a settlement of the class action titled "In Re National Prescription Opiate Litigation" ("Class Action").  The MOU plans to allocate funds from a potential global settlement of the  Class Action and other litigation outside the class action. It uses the model allocation devised by the Negotiation Class Counsel in the Class Action, which allocates to the local governments their proportionate share of the impact of the opioid crisis based on data reported to the Federal Government. The allocation model does not use population.

Four (4) of the thirteen (13) pharmaceutical supply chain defendants have expressed an interest in a global settlement.  However, as conditions to settle, they require that the 50 states and the District of Columbia be included in a global settlement, not just the nation-wide counties, cities, and towns in the Class Action.  The defendants also require 100% participation for a maximum dollar pay-out.

Joining the MOU does not bind the City of San Luis to any particular Class Action outcome. Staff recommends adoption of the MOU.

Next Steps
If the decision is to join in the plan, the signed MOU is due to the Arizona Attorney General by Tuesday, December 15, 2020. 

Attachments
1. Proposed Order No. 2020-19 to Adopt the MOU.
2 the MOU
3. Exhibit A, the approved uses of the fund to combat the opioid crisis.
4. Exhibit B, "Regions" Allocations (A Region is a County plus its constituent cities and towns)
5. Exhibit C, "Local Government Allocations (A Local Government is either a county, city or town)
6. Exhibit D Sliding scale for county allocations if not all 91 cities in Arizona adopt the MOU.

Some Documents in the Class Action
 7.  September 10, 2019, Memo explaining the allocation model.
 8. September 11, 2019, Court Opinion of the legality to form a Negotiation Class.
 9. September 11, 2019, Court Order certifying a negotiation class.
10. October 4, 2019, Court Order Clarifying the negotiation class.
11. January 13, 2020, Class Membership Order.
12. September 24, 2020, the United States Court of Appeals, 6^th Circuit Order approving of Negotiation Class.

San Luis City Council Prior Action
13. November 13, 2019, San Luis Order No. 2019-10 authorizing joining the class action.

The MOU
14. Arizona Attorney General Cover letter to the MOU.
15. Slides explaining the MOU.