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City of San Leandro <br />Meeting Date: December 13, 2021 <br />Staff Report <br />Agenda Section:File Number:21-733 CONSENT CALENDAR <br />Agenda Number:8.H. <br />TO:City Council <br />FROM:Fran Robustelli <br />City Manager <br />BY:Rich Pio Roda <br />City Attorney <br />FINANCE REVIEW:Not Applicable <br />TITLE:Staff Report for a City of San Leandro City Council Resolution authorizing the <br />City of San Leandro to participate in the National Opioid Settlement <br />SUMMARY <br />Staff recommends that the City Council consider adoption of the attached Resolution (Attachment <br />A), approving and authorizing participation in the National Opioid litigation settlement brokered by <br />the California Attorney General and authorizing the City Attorney to execute all documents related <br />to the resolution. <br />BACKGROUND <br />On July 22, 2021, a settlement was announced in multi-district federal litigation based in Ohio <br />against opioid manufacturers and distributors. <br />The settlement was the result of litigation brought by states and cities against three <br />pharmaceutical distributors: McKesson, Cardinal Health and Amerisource Bergen; and the opioid <br />manufacturer, Janssen. The litigants contended that the distributors and manufacturer contributed <br />to the national opioid crisis by ignoring signs of opioid addiction and overselling opioids. The <br />proposed settlement will be available to all states, counties, and cities, including those that did not <br />participate in the litigation. The opioid distributors will pay $21 billion over an 18-year period and <br />Janssen will pay $5 billion over a 5-year period. <br />Under the terms of the settlement, the State of California is scheduled to receive between $2.269 <br />billion and $2.34 billion. The settlement agreement provides a default allocation for the funds: <br />15% directly to the state, 70% to an abatement fund to be administered by the state, and 15% to <br />local subdivisions that were litigants. An intrastate allocation deal has been agreed upon that <br />adjusts this default allocation. Funds dedicated to the 70% abatement fund will be allocated <br />directly to participating jurisdictions. <br />Jurisdictions that wish to participate in the settlement must opt-in prior to January 2, 2022. <br />Page 1 City of San Leandro Printed on 12/9/2021 <br />284