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AGENDA ITEM REVIEW FORM |
6.C.
Regular City Council Meeting
- Meeting Date:
- 04/22/2026
- Department Head:
- Joe Estes
- Submitted By:
- Janet Taylor, Legal Secretary, Attorney's Office
Action Requested:
Motion
Order
Order
ITEM:
Discussion and possible action on any and all matters regarding Order No. 2026-03. An order of the Mayor and City Council of the City of San Luis, Arizona, authorizing joining the Remnant Defendants Opioid Settlement Agreement. (Jenny Torres, City Manager and Joe Estes, Interim 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 ended in 2019, and the money is being distributed.
The purpose of this agenda item is to provide an overview of the terms for the new Remnant Defendant Opioid Settlement ("Agreement") dated February 23, 2026. It outlines the next steps for the City of San Luis to seek participation.
A notice was sent by email on March 5, 2026, providing notice of the Remnant Defendant Opioid Settlement Agreement and the deadline for becoming a Participating Subdivision.
The Settlement includes the following Remnant Defendants:
This Order allows the Mayor to sign the Participation Form upon receipt and for staff to take any other necessary action.
A memorandum provided by Pierce | Coleman is attached outlining the terms for the new Remnant Defendant Opioid Settlement Agreement.
The purpose of this agenda item is to provide an overview of the terms for the new Remnant Defendant Opioid Settlement ("Agreement") dated February 23, 2026. It outlines the next steps for the City of San Luis to seek participation.
A notice was sent by email on March 5, 2026, providing notice of the Remnant Defendant Opioid Settlement Agreement and the deadline for becoming a Participating Subdivision.
The Settlement includes the following Remnant Defendants:
- Associated Pharmacies, Inc.,
- American Associated Pharmacies
- J M Smith Corporation
- Louisiana Wholesale Drug Company, Inc.
- Morris & Dickson Co
- North Carolina Mutual Wholesale Drug Company, Inc.
- United Natural Foods, Inc.
This Order allows the Mayor to sign the Participation Form upon receipt and for staff to take any other necessary action.
A memorandum provided by Pierce | Coleman is attached outlining the terms for the new Remnant Defendant Opioid Settlement Agreement.
RECOMMENDATION / SUGGESTED MOTION:
I MOVE TO APPROVE ORDER NO. 2026-03, AS PRESENTED.
Fiscal Impact
- IS THERE FISCAL IMPACT ASSOCIATED WITH THIS ITEM:
- Please see fiscal impact statement.
- CITY/STATE/FEDERAL FUNDS:
- Please see fiscal impact statement.
- TOTAL:
- Please see fiscal impact statement.
- BUDGETED AMOUNT:
- Please see fiscal impact statement.
- AVAILABLE AMOUNT TO TRANSFER:
- Please see fiscal impact statement.
- ACCT NAME & GL#/REMAINING BALANCE BEFORE PURCHASE:
- Please see fiscal impact statement.
FISCAL IMPACT STATEMENT (IF THIS IS A BUDGET TRANSFER, YOU MUST ATTACH THE BUDGET ADJUSTMENT FORM):
Distribution and Use of Settlement Funds
The payment to the City is being paid as compensatory restitution in order to restore, in whole or in part, the City's to the position or condition had the City not suffered the Alleged Harms. It is based on 2019 population estimates published by the U.S. Census Bureau, released May 2020. The Defendants shall pay into the Settlement Fund the Pooled Settlement Amount in consideration of the covenants, agreements, and releases set forth in this Agreement. The City's percentage of the Pooled Settlement Amount is currently 0.0036938001%, which is currently estimated at $3,609.00 (gross) and $3,161.00 (net). This amount is subject to change depending on the number of subdivisions that participate in the Settlement. The funds shall be allocated and used by the City only for opioid remediation.
The payment to the City is being paid as compensatory restitution in order to restore, in whole or in part, the City's to the position or condition had the City not suffered the Alleged Harms. It is based on 2019 population estimates published by the U.S. Census Bureau, released May 2020. The Defendants shall pay into the Settlement Fund the Pooled Settlement Amount in consideration of the covenants, agreements, and releases set forth in this Agreement. The City's percentage of the Pooled Settlement Amount is currently 0.0036938001%, which is currently estimated at $3,609.00 (gross) and $3,161.00 (net). This amount is subject to change depending on the number of subdivisions that participate in the Settlement. The funds shall be allocated and used by the City only for opioid remediation.