CC Resolution No. 21-113 Authorize participation In Nationwide Opioids SettlementsRESOLUTION N0. 21-113
A RESOLUTION OF THE CUPERTINO CITY COUNCIL
TO AUTHORIZE PARTICIPATION IN NATIONWIDE OPIOIDS
SETTI,EMENTS
WHEREAS, the State of California, tlirough its Attorney General and
certain cities and counties governments, is engaged in litigation seeking to hold
certain opioid pl"iarmaceutical supply chain participants accountable for the
damage caused by their misfeasance, nonfeasance, and malfeasance; and
WHEREAS, the State of California and the cities ai-id counties therein
sliare a common desire to abate and alleviate tlie impacts of that misfeasai"ice,
nonfeasance, and n"ialfeasance through the State of California; and
WHEREAS, on July 21, 2021, the California Attorney General, along with
representatives from 55 other states, commonwealths, and U.S. territories,
finalized the terms of a proposed settlement with three pliarmaceutical
distributors, McKesson Corporation, Cardinal Health, Inc., and
AmerisourceBergen Corporation, to address the impacts of opioid-related
substance use disorder on state and local governments ("the Distributor
Settlement"), available at https://nationalopioidsettlement.com/wp-
content/uploads/2021/11/Final-Distributor-Settlement-Agreement-10.22.2021-
Exhibit-Updates .pdf; and
WHEREAS, on July 21, 2021, the California Attorney General and other
state, commonwealth, and territorial representatives finalized the terms of a
separate proposed settlement with means Johnson & Johnson, Janssen
Pharmaceuticals, Inc., Ortho-McNeil-Janssen Pharmaceuticals, Inc., and Janssen
Pharmaceutica, Inc. arising to address the impacts of opioids manufactured by
the defendants ("the Janssen Settlement), available at
https://nationalopioidsettlement.com/wp-content/uploads/2021/11/Janssen-
agreement-2021ll05.pdf; and
WHEREAS, the Distributor and Janssen Settlements provide that the
settling states, commonwealths, and territories shall receive a combined total of
up to $26 billion to alleviate tlie impacts of opioids-related substance use
disorder; and
Resolution No. 21-113
Page 2
WHEREAS, each of the Distributor and Janssen Settlements provides that
there may be an intrastate allocation of settlement proceeds in each settling state,
commonwealth, and territory to allocate the proceeds among state and local
jurisdictions; and
WHEREAS, following negotiations between state and local government
representatives, the California Attorney General and the local government
representatives agreed to a Proposed California State-Subdivision Agreement
Regardi'itg Distribution and Use of Settlement Funds - Distributor Settlement
("Distribution Allocation Agreement"), attached hereto as Exhibit A, wliich
allocates proceeds of the proposed Distributor Settlement to cities aztd counties;
and
WHEREAS, the California Attorney General and the local government
representatives further agreed to a Proposed California State-Subdivision
Agreement Regarding Distribution and Use of Settlement Funds - Janssen
Settlement ("Janssen Allocation Agreement"), attaclied hereto as Exlnbit B
which allocates proceeds of tlie proposed Janssen Settlement to cities and
counties; and
WHEREAS, the City of Cupertino must affirmatively elect to participate in
Distributor and Janssen Settlements to receive the allocation of settlemei'it
proceeds set forth in the Distributor and Janssen Allocations Agreements, and in
doing so thereby releases its claims against the settling defendax'its.
NOW, THEREFORE, BE IT RESOLVED that the City Council does hereby
autliorizes the City Attorney to complete and execute the Settlement
Participation Forms to authorize the City of Cupertino's participation in the
Distributor and Janssen Settlements, and to take such further actions as necessary
to ensure that the City receives settlement proceeds allocated to it under the
Distributor and Janssen Allocations Agreements.
BE IT FURTHER RESOLVED that this Resolution is not a project under
the requirements of the California Environmental Quality Act, together with
related State CEQA Guidelines (collectively, "CEQA") because it has no potential
for resulting in physical change in the environment. In the event that this
Resolution is found to be a project under CEQA, it is subject to the CEQA
exemption contained in CEQA Guidelines section 15061(b)(3) because it can be
seen with certainty to have no possibility that the action approved may have a
Resolution No. 21-113
Page 2
significant effect on the environment. CEQA applies only to actions whicli have
tlie potential for causing a significant effect on the environment. Where it can be
seen with certainty that there is no possibility that the activity in qciestion may
have a significant effect on the environment, the activity is not subject to CEQA.
In this circumstance, the proposed action would have no or only a de minimis
effect on the environment. The foregoing determination is n'iade by the City
Council in its independent judgment.
PASSED AND ADOPTED at a regular meeting of the City Council of tl"ie City of
(2uperCipo this 7"' day of Decen"iber, 2021, by tlie following vote:
Vote
AYES:
NOES:
ABSENT:
ABST AIN:
Members of the City Council
Paul, Chao, Moore, Wei, Willey
None
Noi'ie
None
SIGNED:
l //'//-z_az__-z_
'S) -
Darcy Paul, Mayor
City of Cupertino
Date
ATTEST:
Q,,-='-1118/22
f"--'------ 9
Kirstei"i Sqriarcia, City Clerk
Date