HomeMy WebLinkAboutResolution 2021-206 N.C.S. 12/20/2021Resolution No. 2021-206 N.C.S. 1
Resolution No. 2021-206 N.C.S.
of the City of Petaluma, California
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PETALUMA, CALIFORNIA, PROVIDING AUTHORIZATION FOR THE CITY OF PETALUMA TO JOIN NATIONAL OPIOID SETTLEMENTS WITH MCKESSON, CARDINAL HEALTH, AMERISOURCEBERGEN, JANSSEN PHARMACEUTICALS, INC., AND
ITS PARENT COMPANY, JOHNSON & JOHNSON TO FUND ELIGIBLE OPIOID REMEDIATION USES
WHEREAS, according to the National Institute on Drug Abuse, part of the National
Institutes of Health, in 2019, nearly 50,000 people in the U.S. died from opioid-related overdoses, and the misuse of and addiction to opioids, which include prescription pain relievers, heroin, and synthetic opioids like fentanyl, is a serious national crisis affecting public health and social and economic welfare; and WHEREAS, the Centers for Disease Control and Prevention estimates that the total economic burden of opioid misuse in the U.S. is $78.5 billion per year, including the cost of healthcare, lost productivity, addiction treatment and criminal justice; and WHEREAS, in the late 1990s, pharmaceutical companies told the medical community
that patients would not become addicted to prescription opioid pain relievers and health care providers prescribed them at greater rates, but the result was widespread diversion and misuse of the medication, with it ultimately becoming clear that opioids could be highly addictive, and overdose rates began to increase; and WHEREAS, in 2017, more than 47,000 Americans died from opioid overdoses, and in the same year 1.7 million people in the U.S. suffered substance abuse disorders related to prescription opioids;1 and WHEREAS, thousands of lawsuits have been filed against opioid manufacturers and
suppliers by government agencies to obtain funding for addressing the effects of the opioid crisis, with more than 2,000 opioid cases consolidated and assigned to a single Federal judge in the Northern District of Ohio,2 and the consolidated lawsuit referred to as the National Prescription Opioid Litigation; and WHEREAS, nationwide settlements have been reached to resolve all opioid litigation brough by states and local political subdivisions against the three largest pharmaceutical
1 Opioid Overdose Crisis, National Institute on Drug Abuse, available at: https://www.drugabuse.gov/drug-
topics/opioids/opioid-overdose-crisis. 2 Your Guide to the Massive (and Massively Complex) Opioid Litigation, October 15, 2019, Colin Dwyer, NPR, available at: https://www.npr.org/sections/health-shots/2019/10/15/761537367/your-guide-to-the-massive-and-massively-complex-opioid-litigation.
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distributors of opioids: McKesson, Cardinal Health, and AmerisourceBergen, and against opioid manufacturer Janssen Pharmaceuticals, Inc., and its parent company, Johnson & Johnson;3 and
WHEREAS, the nationwide settlements regarding the National Prescription Opioid Litigation that have been reached so far provide for opioid distributors McKesson, Cardinal Health, and AmerisourceBergen paying a maximum of $21 billion over 18 years, and manufacturer Janssen paying a maximum of $5 billion over no more than 9 years to resolve all
governmental opioid claims against these entities, with approximately $22.8 billion of the
settlement proceeds to be payable to states and local subdivisions (including cities); and WHEREAS, the national opioid settlements provide for the opioid distributors making initial deposits into escrow by the end of September, 2021, and additional deposits by Janssen
and the distributors in early summer of 2022, with settlement funds able to flow to states and
local governments as early as April, 2022; and WHEREAS, the national opioid settlement proceeds must be used for opioid epidemic abatement uses specified in the settlement agreements, including a range of intervention,
treatment, education and recovery services to permit state and local governments to decide what
will best serve their communities, including: opioid use disorder treatment, support for people in treatment and recovery, connections to care, addressing the needs of criminal justice-involved persons, addressing the needs of pregnant or parenting women and their families, preventing over-prescribing and ensuring appropriate prescribing and dispensing of opioids, preventing
misuse of opioids, preventing overdose deaths and other harms, first responder support,
leadership, planning and coordination support, and training and research, in accordance with Exhibit E of the Distributor and Janssen settlement agreements; and WHEREAS, in accordance with the California State-Subdivision Distributor and Janssen
settlement agreements, 50% of the settlement funds received by a California participating
subdivision from the abatement account funds in each calendar year must be used for one or more of the high impact abatement activities specified in the State-Subdivision agreements; and WHEREAS, cities that want to participate in the national opioid settlements must sign
and submit the participation forms and California State-Subdivision Agreements by January 2,
2022, and Cities like Petaluma with populations greater than 10,000 are eligible to receive settlement funds directly; and WHEREAS, California and its cities and counties can receive up to 9.92% or $2.2
billion of the settlement funds for substance use prevention, harm reduction, treatment and
recovery services and programs, with funding divided as follows: a state fund of 15%, a California subdivision fund of 15%, and a California abatement accounts fund of 70%; and WHEREAS, the share of the national opioid settlement proceeds that cities that are
eligible to participate directly in the settlement (like the City of Petaluma) would receive from
3 National Opioid Settlement Executive Summary, available at https://nationalopioidsettlement.com/executive-summary/.
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the California abatement accounts fund is specified in the California-State Subdivision Agreements, with Petaluma’s share specified as .081% unweighted, or .067% weighted; and
WHEREAS, it appears that Petaluma is eligible to receive from the national opioid settlements up to $2.2 billion (the California state share) x 70% (the amount of the California state share allocated to abatement) x .081% (the Petaluma unweighted share), or x .0667507% (the Petaluma weighted share) for a total Petaluma share of up to $1,247,400 unweighted, or
$1,027,961 weighted over the 18-year payout period to fund opioid epidemic abatement
programs and services; and WHEREAS, authorizing the City’s joining the National Prescription Opioid Litigation Settlements is not a project subject to the California Environmental Quality Act, and therefore is
exempt from CEQA, in accordance with Section 15378, subdivision (b) of Title 14 of the
California Code of Regulations (part of the CEQA Guidelines) as the creation of government funding mechanisms or other government fiscal activities that do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment, and organizational or administrative activities of governments that will not result in
direct or indirect physical changes in the environment;
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Petaluma as follows:
1. Recitals Made Findings. The above recitals are hereby declared to be true and correct
and are incorporated into this resolution as findings of the City Council. 2. Authorizing Entering the National Opioid Settlements Exempt from CEQA. Authorizing the City’s joining the National Prescription Opioid Litigation Settlements is not a project subject to the California Environmental Quality Act (“CEQA”), and therefore
is exempt from CEQA, in accordance with Section 15378, subdivision (b) of Title 14 of
the California Code of Regulations (part of the CEQA Guidelines) as the creation of government funding mechanisms or other government fiscal activities that do not involve any commitment to any specific project which may result in a potentially significant physical impact on the environment, and organizational or administrative activities of
governments that will not result in direct or indirect physical changes in the environment.
3. Entering the National Opioid Settlements Authorized. The City Manager is hereby authorized and directed to provide for the City joining national opioid settlements with McKesson, Cardinal Health, Amerisouce Bergen, Janssen Pharmaceuticals, Inc., and its parent company, Johnson & Johnson, by executing on behalf of the City documents as
necessary to confirm the City’s agreement to participate in the Distributors Settlement, the
Proposed California State-Subdivision Agreement – Distributor Settlement, the Janssen Settlement, and the Proposed California State-Subdivision Agreement – Janssen Settlement. 4. Severability. The City Council hereby declares that every section, paragraph, sentence,
clause, and phrase of this resolution is severable. If any section, paragraph, sentence,
clause or phrase of this resolution is for any reason found to be invalid or unconstitutional, such invalidity, or unconstitutionality shall not affect the validity or constitutionality of the remaining sections, paragraphs, sentences, clauses, or phrases.
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Resolution No. 2021-206 N.C.S. 4
5. Resolution Effective Immediately. This resolution shall take effect immediately upon its adoption.
Under the power and authority conferred upon this Council by the Charter of said City.
REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by
the Council of the City of Petaluma at a Regular meeting on the 20th day
of December 2021, by the following vote:
Approved as to
form:
__________________________
City Attorney
AYES: Mayor Barrett; Vice Mayor Barnacle; Fischer; Healy; King; McDonnell;
Pocekay
NOES: None.
ABSENT: None.
ABSTAIN: None.
ATTEST: ______________________________________________
City Clerk
______________________________________________
Mayor
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