TO: Members of the City Council
FROM: Mayor Angela Birney
DEPARTMENT DIRECTOR CONTACT(S):
|
Executive |
Malisa Files, COO |
425-556-2166 |
DEPARTMENT STAFF:
TITLE:
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Approval of the Washington State Opioid Settlement with Purdue Pharma and Generic Manufacturers
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 four settlement agreements (see details below). The Attorney General has settled an additional nine opioid cases. The State of Washington entered into a $105.6 million settlement with Purdue Pharma and the Sackler Family, payable over 15 years. Separately, the Attorney General’s Office entered into settlement agreements with eight manufacturers of generic opioids for up to $16.7 million, with payment periods that range from one year to ten years. The City is required to sign an allocation agreement (see Attachment A) and ten additional participation agreements (see example in Attachment B) to receive money from these settlement.
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☒ Additional Background Information/Description of Proposal Attached
REQUESTED ACTION:
☐ Receive Information ☐ Provide Direction ☒ Approve
REQUEST RATIONALE:
One Washington Memorandum of Understanding between Washington Municipalities
The distribution of the opioid settlement is governed by the court approved settlement documents.
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Council has already approved Redmond’s participation by signing the One Washington Memorandum of Understanding between Washington Municipalities. Signing the additional agreements will ensure the City is a part of the distribution of funds from the nine additional settlements.
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 four opioid settlements, including:
- Amerisource Bergen Corporation, Cardinal Health, Inc, and McKesson Corporation
- CVS, Walgreens, Walmart, TEVA and Allergan
- Johnson & Johnson Corporation
- Kroger
The total the City is set to receive from the nine new settlements is $2,800,852 over a number of years. Adding the past settlements, the City will receive approximately $4.881 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.
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 $105.6 million from Purdue Pharma and $16.7 million from generic manufacturers. Redmond’s portion would be 0.4839486007% or approximately $2.8 million after legal fees are deducted. You can find the settlement documents and more details in the Attorney General’s Office website here Purdue Pharma and Generic Manufacturers Settlements.
To date the City has collected approximately $735,000. The funds have been spent on a combination of Police equipment and grants to human service organizations specializing in connecting those who need help with the help they need. A list of the expenditures can be found in Attachment C.
COMMUNITY/STAKEHOLDER OUTREACH AND INVOLVEMENT:
- Timeline (previous or planned):
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- Outreach Methods and Results:
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BUDGET IMPACT:
Total Cost:
The City of Redmond will receive approximately $2.8 million from the nine settlements over various years.
Approved in current biennial budget: ☐ Yes ☒ No ☐ N/A
Budget Offer Number:
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Budget Priority:
Safe and Resilient
Other budget impacts or additional costs: ☐ Yes ☐ No ☒ N/A
If yes, explain:
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Funding source(s):
Since July, the City has received approximately $735,000 from previous opioid settlements.
Budget/Funding Constraints:
The funds are earmarked for 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.
☐ Additional budget details attached
COUNCIL REVIEW:
Previous Contact(s)
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Date |
Meeting |
Requested Action |
|
9/9/2025 |
Committee of the Whole - Finance, Administration, and Communications |
Provide Direction |
Proposed Upcoming Contact(s)
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Date |
Meeting |
Requested Action |
|
N/A |
None proposed at this time |
N/A |
Time Constraints:
The documents related to the Purdue Pharma settlement must be signed by September 30, 2025. The settlements for the other eight generic manufacturers are later, however the State is encouraging localities to have everything approved by the September 30 date.
ANTICIPATED RESULT IF NOT APPROVED:
If the allocation and the participation agreements are not signed, Redmond will not receive the approximate $2.8 million to spend on opioid abatement programs.
ATTACHMENTS:
Attachment A: Allocation Agreement
Attachment B: Participation Agreement
Attachment C: Opioid Program Expenditures