TO: Committee of the Whole - Public Safety and Human Services
FROM: Mayor Angela Birney
DEPARTMENT DIRECTOR CONTACT(S):
|
Executive |
Malisa Files, COO |
425-556-2166 |
DEPARTMENT STAFF:
TITLE:
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Approval of Washington State Opioid Settlement with Remnant Defendants
OVERVIEW STATEMENT:
recommendation
On June 7, 2022, the City Council was briefed on the Attorney General’s Washington State Opioid Settlement. At that time, the City signed the One Washington Memorandum of Understanding between Washington Municipalities to participate in the settlement agreement. Currently, Redmond has participated in five settlement agreements (see details below). The State of Washington has entered into an additional settlement agreement with Remnant Defendants including Associated Pharmacies, Inc (and American Associated Pharmacies); J M Smith Corporation; Louisiana Wholesale Drug Company, Inc.; Morris and Dickson Co.; North Carolina Mutual Wholesale Drug Company, Inc.; and United Natural Foods, Inc. (including its subsidiaries SuperValu and Advantage Logistics). A total of $97.625 million will be distributed among participating organizations who sign the participation agreement contained in Attachment A.
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☒ Additional Background Information/Description of Proposal Attached
REQUESTED ACTION:
☐ Receive Information ☒ Provide Direction ☐ Approve
REQUEST RATIONALE:
• Relevant Plans/Policies:
One Washington Memorandum of Understanding between Washington Municipalities
• Required:
The distribution of the opioid settlement is governed by the court approved settlement documents.
• Council Request:
Council has already approved Redmond’s participation by signing the One Washington Memorandum of Understanding between Washington Municipalities. Signing the additional participation agreement will ensure the City is a part of the distribution of funds from the Remnant Defendants settlement.
• Other Key Facts:
N/A
OUTCOMES:
In June 2022, Redmond signed on to the One Washington Memorandum of Understanding that allowed the City to participate in the state opioid settlements. Redmond has participated in five opioid settlements, including:
• Amerisource Bergen Corporation, Cardinal Health, Inc, and McKesson Corporation
• CVS, Walgreens, Walmart, TEVA and Allergan
• Johnson & Johnson Corporation
• Kroger
• Purdue Pharma and Generic Manufacturers
The total the City is set to receive from the Remnant Defendants settlement is approximately $1.2 million. Adding the past settlements, the City will receive a little over $6 million in total to use for programs such as law enforcement expenditures relating to the opioid epidemic, education of law enforcement or other first responders regarding appropriate practices and precautions when dealing with fentanyl or other drugs, connecting those who need help to the help they need (connections to care) as well as other abatement strategies. A list of opioid remediation uses can be found in Attachment C.
For those municipalities over 10,000 population, the allocation formula is a combination of population and the effect of opioids on a community. The total allocation amount that will go to municipalities equals approximately $97.625 million from the Remnant Defendants. Redmond’s portion would be 0.0124955509% or approximately $1.2 million after legal fees are deducted. You can find the settlement documents and more details in the Attorney General’s Office website here <https://nationalopioidsettlement.com/>.
To date the City has collected approximately $856,885. The funds have been spent on a combination of Police equipment (approximately $34,000) and funds to support human services (approximately $545,000) specializing in connecting those who need help with the help they need.
COMMUNITY/STAKEHOLDER OUTREACH AND INVOLVEMENT:
• Timeline (previous or planned):
N/A
• Outreach Methods and Results:
N/A
• Feedback Summary:
N/A
BUDGET IMPACT:
Total Cost:
The City of Redmond will receive approximately $1.2 million from the Remnant Defendant settlement agreement.
Approved in current biennial budget: ☐ Yes ☒ No ☐ N/A
Budget Offer Number:
N/A
Budget Priority:
Safe and Resilient
Other budget impacts or additional costs: ☐ Yes ☐ No ☒ N/A
If yes, explain:
N/A
Funding source(s):
General Fund
Budget/Funding Constraints:
The opioid funds are earmarked for designated uses as outlined in Attachment C.
☐ Additional budget details attached
COUNCIL REVIEW:
Previous Contact(s)
|
Date |
Meeting |
Requested Action |
|
9/6/2022 |
Business Meeting |
Approve |
|
3/19/2024 |
Business Meeting |
Approve |
|
7/2/2024 |
Business Meeting |
Approve |
|
9/16/2024 |
Business Meeting |
Approve |
Proposed Upcoming Contact(s)
|
Date |
Meeting |
Requested Action |
|
4/7/2026 |
Business Meeting |
Approve |
Time Constraints:
The Participation Agreement for the Remnant Defendants settlement must be signed by May 4, 2026.
ANTICIPATED RESULT IF NOT APPROVED:
If the Participation Agreement is not approved, Redmond will not receive the approximate $1.2 million to spend on opioid abatement programs.
ATTACHMENTS:
Attachment A: Participation Agreement
Attachment B: One Washington Memorandum of Understanding
Attachment C: List of Opioid Remediation Uses