04-24-2023 City Council Packet - Laserfiche WebLink

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CITY COUNCIL AGENDA ITEM 3C STAFF ORIGINATOR: Sarah Cotton, City Administrator MEETING DATE: April 24, 2023 TOPIC: Opioid Settlements and Minnesota Opioids State-Subdivision Memorandum of Agreement VOTE REQUIRED: 3/5 INTRODUCTION The City Council is being asked to consider Resolution No. 23-38, Authorizing City of Lino Lakes Staff to Execute all Necessary Documents to Ensure City of Lino Lakes Participation in the Multistate Settlements Relating to Opioid Supply Chain Participants, and in the Minnesota Opioids State-Subdivision Memorandum of Agreement. BACKGROUND The State of Minnesota and numerous Minnesota cities and counties are engaged in nationwide civil litigation against opioid supply chain participants related to the opioid crisis. The Minnesota Attorney General has signed on to multistate settlement agreements with several opioid supply chain participants, but those settlement agreements are still subject to sign-on by local governments and final agreement by the companies and approval by the courts. Settlements have been reached with opioid manufacturers Teva Pharmaceuticals and Allergan, and retail pharmacy chains Walmart, CVS, and Walgreens. Awards are dependent on participation by both litigating and non-litigating local governments and could exceed $235 million over 15 years for Minnesota. To maximize the money coming to Minnesota, all cities with populations over 10,000 are being asked to sign on to these settlements. Under the MOA, abatement funds will be directed as follows: • 75% will be paid directly to counties and certain cities/other municipalities that participate in the settlement process (e.g., cities over 30,000 population and any city that has a public health department). • 25% of the abatement funds will be paid directly to the state. • Any city allocated a share may elect to have its full share or a portion of its full share directed to the county or counties in which it is located. • Each county must consult annually with cities in its jurisdiction regarding future use of settlement funds, including holding an annual public meeting to receive input on proposed uses and to encourage collaboration between local governments. While the City of Lino Lakes will not directly receive any funds, the more communities that do sign on will result in a greater settlement award to communities across the state of Minnesota, including Anoka County.