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File Number: 21-734 <br />WHEREAS, the Settlement Agreements provide, among other things, for the payment of a <br />certain sum to settling government entities in California including to the State of California upon <br />occurrence of certain events as defined in the Settlement Agreements (“California Opioid <br />Funds”); and <br />WHEREAS, California local governments have engaged in extensive discussions with the <br />California Attorney General’s Office (“AGO”) as to how the California Opioid Funds will be <br />allocated, which has resulted in the Proposed California State-Subdivision Agreement Regarding <br />Distribution and Use of Settlement Funds-Distributor Settlement and the Proposed California <br />State-Subdivision Agreement Regarding Distribution and Use of Settlement Funds-Janssen <br />Settlement (collectively the “Allocation Agreements,”) which are agreements between all of the <br />entities identified in the Allocation Agreements; and <br />WHEREAS, the Allocation Agreements propose to allocate the California Opioid Funds <br />15% to a State Fund; 70% to local governments in an Abatement Accounts Fund; and 15% to <br />litigating local governments in a Subdivision Fund. For the avoidance of doubt, all funds allocated <br />to California from the Settlements will be combined pursuant to Allocation Agreements, and 15% <br />of that total shall be allocated to the State of California (the “State of California Allocation”), 70% <br />to the California Abatement Accounts Fund (“CA Abatement Accounts Fund Allocation”), and <br />15% to the California Subdivision Fund (“CA Subdivision Fund Allocation”); and <br />WHEREAS, the percentage from the CA Abatement Accounts Fund allocated to each <br />eligible local government (“Eligible Local Government”) is set forth in Appendix 1 to each <br />Allocation Agreement and provided to the Council with this Resolution. The City’s share of the CA <br />Abatement Accounts Fund is a product of the total in the CA Abatement Accounts Fund multiplied <br />by the City’s percentage as set forth in Appendix 1 (the “Local Allocation”); and <br />WHEREAS, the percentage from the CA Abatement Accounts Fund to be allocated to the <br />City is 0.0339%, which may constitute approximately $780,000, or $43,333 a year over a period <br />of 18 years; and <br />WHEREAS, the City is an Eligible Local Government; and <br />WHEREAS, any city that is an Eligible Local Government will be allocated its Local <br />Allocation share only when it becomes a Participating Subdivision by signing the Participation <br />Agreements to the Settlements. <br />NOW, THEREFORE, the City of San Leandro City Council hereby RESOLVES, that all of the <br />recitals above are true, correct and incorporated herein; and that the City Council approves the <br />settlement, and authorizes the City Attorney to execute all documents, and release the City’s <br />claims against the Settling Defendants in exchange for the consideration set forth in the <br />Settlement Agreements, and Allocation Agreements including taking the following measures: <br />1. The execution of the Participation Agreement to the Distributors Settlement <br />Agreement and any and all documents ancillary thereto. <br />2. The execution of the Participation Agreement to the Janssen Settlement Agreement <br />Page 2 City of San Leandro Printed on 12/9/2021 <br />345