PRESENTER: Presenter
Valeria M. Acevedo, City Attorney
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SUBJECT: Title
Approval of a resolution of the City Council of the City of New Braunfels, Texas approving participation in settlement agreement between the State of Texas and Kroger; and authorizing the city manager to execute all related documents, including the Subdivision Settlement Participation Form.
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DEPARTMENT: City Attorney’s Office
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COUNCIL DISTRICTS IMPACTED: Citywide
BACKGROUND INFORMATION:
Texas is one of the lead states currently negotiating financial settlements with the nation’s largest companies in the opioid supply chain. On May 13, 2020, Texas, along with a broad, bipartisan coalition of states and subdivisions, reached two final agreements with four companies to resolve legal claims against for their role in the opioid crisis. In September 2021, City Council adopted the Texas Term Sheet as required by the settlement agreement and opted into those settlements with McKesson, Cardinal Health, ABCD, and Janssen/Johnson & Johnson, Endo/Par and Teva. (Resolution No. 2021-R-51). The city was awarded approximately $307,313.00. As with all payments, they will be made payable in varying amounts over an 18-year period. To date, the city has received 2 payments thus far. It received $96,471.88 on March 15, 2023 and $18,767.90 on April 16, 2024, totaling $115,239.78. In 2023, the city opted into other settlement agreements with Allergan, CVS, Walgreen, and Walmart (Resolution No. 2023-R-26) from which the City expects to receive $289,592. Funds are to be used only to address opioid related harms and in accordance with the guidance provided by the 87th Legislature General Appropriations Act and Exhibit B of the Global Settlement Allocation Term Sheet dated May 13, 2020: <https://comptroller.texas.gov/programs/opioid-council/docs/texas-settlement-allocation-term-sheet.pdf>
At this time, there is a new settlement agreement between the State of Texas and Kroger. In order to participate, the City Council must opt in and authorize the city manager to execute the Subdivision Participation Form that is attached to this agenda item. The city expects to receive $23,145.47.
ISSUE:
In order for the City to participate and receive $23,145.47 in settlement funds from the Kroger settlement, the City must submit to the Attorney General’s Office, a Subdivision Participation Form no later than December 29, 2024. The City Council must decide to approve opting into this settlement and authorize the city manager to execute the Subdivision Participation Form. Settlement funds are to be used for the prevention, detection, abatement, and treatment of opioid abuse.
FISCAL IMPACT:
If the City opts in, it will receive $23,145.47 in settlement funds.
Recommendation
RECOMMENDATION:
If the city wants to receive additional settlement funds, the City Council should adopt this resolution.