Agenda

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City Council Regular Meeting

Meeting Date:

03/28/2023

BACKGROUND

On September 7, 2021, City Council approved Resolution No. 21-R-93 to join with the State of Texas and Political Subdivisions as a party in the Texas opioid settlement secured by the Office of the Attorney General. Council agreed to support the adoption and approval of the Texas Opioid Abatement Fund Council and Settlement Allocation Term Sheet. Additional distributors have been identified (Allergan, Walmart, Walgreens and CVS) requiring settlement participation forms to be completed.

GOAL

The proposed Settlements require Allergan to pay $135 million, CVS to pay $304 million, Walgreens to pay $340 million, and Walmart to pay $170 million (the “Settlement Amount”) to Texas and its political subdivisions. Of the Settlement Amount, the vast majority is earmarked for use by Texas and its subdivisions to remediate and abate the impacts of the opioid crisis. The Settlements also contain injunctive relief provisions governing the opioid marketing as well as the sale and dispensing practices at the heart of the opioid claims in the lawsuits.

The subdivisions within Texas are entitled to decide whether they wish to participate in the settlement. Any subdivision that does not participate cannot directly share in any of the settlement funds.

COMMUNITY BENEFIT

The City Council finds and determines that it is in the best interest of the health, safety, and welfare of the City to participate
in the Texas Term Sheet by authorizing the City Manager to execute the Settlement Participation Forms that are required.

SUMMARY OF RECOMMENDED ACTION

Consideration and action approving a Resolution authorizing the City Manager to execute settlement participation forms from opioid settlement agreements.

FISCAL IMPACT

Here are the estimates for what the city of Schertz would receive in the direct payment from these settlements:

Allergan	CVS	Walgreens	Walmart
$8,069.02	$18,136.17	$20,293.46	$10,145.51

RECOMMENDATION

Staff recommends approval of Resolution 23-R-27.

Attachments
Opioid Settlement Information Sheet
Settlement_Participation_Form_Allergan[1]
Settlement_Participation_Form_CVS[62]
Settlement_Participation_Form_Walgreens[20]
Settlement_Participation_Form_Walmart[83]
Resolution 23-R-27