12-15-2021 Council Packet - Laserfiche WebLink

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STAFF REPORT TO: Mayor Keis and Members of City Council FROM: Chris Heineman, City Administrator DATE: December 15, 2021 RE: Opioid Settlement Opt-In ACTION TO BE CONSIDERED: The City Council is asked to consider adopting the attached Resolution electing to approve the Memorandum of Agreement (MOA) between the State of Minnesota and local governments and authorize participation in national opioid settlements. BACKGROUND: On August 20, 2021, the Attorney General’s Office joined historic $26 billion multistate settlement agreements with pharmaceutical distributors McKesson, Cardinal Health, and AmerisourceBergen, and opioid manufacturer Johnson & Johnson. The parties to these settlements are states and cities and counties. Tribal nations are negotiating their own separate settlements. Additional information on the settlements can be found here and here. The settlement agreements, which remain subject to sign -on by local governments and final approval by the companies and courts, resolve investigations into the companies’ roles in distributing and marketing opioids. Minnesota’s maximum share of the settlements is nearly $300 million, but could be as little as half that amount if cities do not sign on. On December 6, 2021 the Attorney General’s Office announced an agreement with Minnesota cities and counties on how funds from these settlements will be allocated: 75% to counties and cities that sign on, and 25% to the State, to be spent on opioid abatement. Each political subdivision, via its local legislative body, should adopt a resolution that authorizes a representative of the subdivision to execute the MN MOA and both subdivision settlement participation forms (Distributors and Johnson & Johnson), which are required to join the settlements. In order to receive payments, cities must sign the Minnesota Opioids State-Subdivision Memorandum of Agreement (MN MOA), and separately sign on to both settlement agreements with Distributors and Johnson & Johnson. Cities and counties must sign on to the settlements by January 2, 2021. A specific dollar amount has not been identified for the City of Little Canada, however adopting a resolution to opt-in will allow us to receive a future settlement. City staff will work with Ramsey County and our peer cities to develop and implement a program over the coming months. RECOMMENDED ACTION: Staff recommends adoption of the attached Res olution to approve the Memorandum of Agreement (MOA) between the State of Minnesota and local governments and authorize participation in national opioid settlements.