HomeMy WebLinkAboutCC Res 7548 2024-07-22 RESOLUTION 7548
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEAL
BEACH AUTHORIZING THE CITY TO ENTER INTO THE SETTLEMENT
AGREEMENT WITH THE KROGER CO., AGREEING TO THE TERMS OF
THE RELATED STATE-SUBDIVISION AGREEMENT, AND
AUTHORIZING THE CITY MANAGER TO TAKE ALL ACTIONS
NECESSARY TO IMPLEMENT THE SETTLEMENTS
WHEREAS, the United States is facing an ongoing public health crisis of opioid abuse,
addiction, overdose, and death. The State of California and California local
governments spend billions of dollars each year to address the direct consequences of
this crisis; and,
WHEREAS, since 2017, state and local governments in California and around the United
States have been pursuing litigation against certain manufacturers, distributors, and
retailers of opioid pharmaceuticals in an effort to hold the Opioid Defendants financially
responsible for the impact on of the Opioid Epidemic on the City of Seal Beach (the "City")
and resources necessary to combat the opioid epidemic (the "Litigation"); and,
WHEREAS, on or about March 22, 2024, a proposed nationwide tentative settlement was
reached between the plaintiffs in the MDL and the Kroger Co. ("Kroger"); and,
WHEREAS, negotiations with Kroger have resulted in proposed nationwide settlement of
state and local government claims to settle the Litigation; and,
WHEREAS, As part of the settlement with Kroger, local subdivisions, including certain
cities, that are not plaintiffs in the MDL may participate in the settlements in exchange for
a release of Kroger; and,
WHEREAS, the Master Settlement Agreement is available for review on-line at
https://nationalopioidsettlement.com/ and at https://oag.ca.gov/opioids; and,
WHEREAS, the Settlement Agreement provides, among other things, for the payment of
a certain sum to settling government entities in California including to the State of
California and Participating Subdivisions upon occurrence of certain events as defined in
the Settlement Agreement ("California Opioid Funds"); and,
WHEREAS, California local governments in the MDL have engaged in extensive
discussions with the State Attorney General's Office ("AGO") as to how the California
Opioid Funds will be allocated, which has resulted in the Proposed California State-
Subdivision Agreement Regarding Distribution and Use of Settlement Funds - Kroger
Settlement ("Allocation Agreement"); and,
WHEREAS, a copy of the State Allocation Agreement is available online at
https://oaq.ca.gov/opioids; and,
WHEREAS, The Allocation Agreement allocates the California Opioid Funds as follows:
15%to the State Fund; 70%to the Abatement Accounts Fund; and 15%to the Subdivision
Fund; and,
WHEREAS, the funds in the CA Abatement Accounts Fund (the California Abatement
Accounts Fund Allocation) will be allocated based on an allocation model developed in
connection with the proposed negotiating class in the National Prescription Opiate
Litigation (MDL No. 2804). The percentage from the CA Abatement Accounts Fund
allocated to each eligible local government(any county or city above 10,000 in population)
"Eligible Local Government") is set forth in Appendix 1 to the Allocation Agreement. The
City's share of the CA Abatement Accounts Fund is a product of the total in the CA
Abatement Accounts Fund multiplied by the City's percentage set forth in Appendix 1 to
the Allocation Agreements (the "Local Allocation"); and,
WHEREAS, any city that is an Eligible Local Government will be allocated its Local
Allocation share only when it becomes a Participating Subdivision by signing the
Participation Agreement to the Settlement. The Local Allocation share for a city that is a
Participating Subdivision will be paid to the county in which the city is located, rather
than to the city, so long as: (a) the county is a Participating Subdivision, and (b) the city
has not advised the Settlement Fund Administrator that it requests direct payment at
least 60 days prior to a Payment Date as defined in the Settlement Agreements.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SEAL BEACH HEREBY
RESOLVES AS FOLLOWS:
SECTION 1. The City Council hereby approves and authorizes the City Manager to settle
and release the City's claims against Kroger in exchange for the
consideration set forth in the Settlement Agreement and Allocation
Agreement.
SECTION 2. The City Manager shall have authority to, and is directed to, take all actions
necessary on behalf of the City to implement and effectuate the agreements
approved by this Resolution in consultation with the City Attorney.
SECTION 3. All actions heretofore taken by the Council and other appropriate public
officers and agents of the City with respect to the matters contemplated
under this Resolution are hereby ratified, confirmed and approved.
SECTION 4. The City Clerk shall certify to the adoption of this Resolution.
PASSED, APPROVED and ADOPTED by the Seal Beach City Council at a regular
meeting held on the 22nd day of July 2024, by the following vote:
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AYES: Council Members: Kalmick, Moore, Steele, Landau, Sustarsic
NOES: Council Members:
ABSENT: Council Members:
ABSTAIN: Council Members:
Schelly Sustarsic, Mayor
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loria D. Har er, City Clerk
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STATE OF CALIFORNIA }
COUNTY OF ORANGE }
CITY OF SEAL BEACH }
I, Gloria D. Harper, City Clerk of the City of Seal Beach, do hereby certify that the
foregoing resolution is the original copy of Resolution 7548 on file in the office of the City
Clerk, passed, approved, and adopted by the City Council at a regular meeting held on
the 22nd day of July 2024.
Gloria . Harper, i y Clerk
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