Resolution No. 6982 106
RESOLUTION NO. 6982
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CYPRESS
AUTHORIZING THE CITY OF CYPRESS TO ENTER INTO THE
SETTLEMENT AGREEMENT WITH KROGER CO., AGREE TO THE
TERMS OF THE RELATED STATE-SUBDIVISION AGREEMENT, AND
AUTHORIZE ENTRY INTO THE RELATED STATE-SUBDIVISION
AGREEMENT WITH THE ATTORNEY GENERAL
WHEREAS, the United States is facing an ongoing public health crisis of opioid
abuse, addiction, overdose, and death, forcing the State of California and California counties
and cities to spend billions of dollars each year to address the direct consequences of this
crisis; and
WHEREAS, pending in the U.S. District Court for the Northern District of Ohio is a
multidistrict litigation ("MDL") being pursued by numerous public entity plaintiffs against the
manufacturers and distributors of various opioids based on the allegation that the
defendants' unlawful conduct caused the opioid epidemic; and
WHEREAS on or about March 22 2024, a proposed nationwide tentative settlement
was reached between the plaintiffs in the MDL and Kroger Co. (Kroger) and
WHEREAS, Kroger shall be referred in this Resolution as "Settling Defendant"; and
WHEREAS, as part of the settlement with the Settling Defendant, local subdivisions,
including certain cities, that are not plaintiffs in the MDL may participate in the settlement in
exchange for a release of the Settling Defendant; and
WHEREAS, copies of the proposed terms of those proposed nationwide settlement
have been set forth in the Master Settlement Agreement with the Settling Defendant; and
WHEREAS, copies of the Master Settlement Agreement have been provided to the
City Council with this Resolution; and
WHEREAS, the Settlement Agreement provides, among other things, for the
payment of a certain sum to settling government entities in California including to the State
of California and Participating Subdivisions upon occurrence of certain events as defined in
the Settlement Agreement ("California Opioid Funds"); and
WHEREAS, California local governments in the MDL have engaged in extensive
discussions with the State Attorney General's Office ("AGO") as to how the California Opioid
Funds will be allocated, which has resulted in the Proposed California State-Subdivision
Agreement Regarding Distribution and Use of Settlement Funds ("Allocation Agreements")
from the settlements with the Settling Defendant; and
WHEREAS, copies of the Allocation Agreement for all of the settlement with the
Settling Defendant have been provided with this Resolution; and
WHEREAS, under the Master Settlement Agreement, certain local subdivisions that
did not file a lawsuit against the Settlement Defendant may qualify to participate in the
settlements and obtain funds from the Abatement Account Fund; and
WHEREAS, the City is eligible to participate in the Settlement and become a CA
Participating Subdivision; and
WHEREAS, a CA Participating Subdivision that is a city will be allocated its Local
Allocation share as of the date on which it becomes a Participating Subdivision. The Local
Allocation share for a city that is a CA Participating Subdivision will be paid to the county in
which the city is located, unless the city elects to take a direct election of the settlement
funds, so long as: (a) the county is a CA Participating Subdivision, and (b) the city has not
advised the Settlement Fund Administrator that it requests direct payment at least 60 days
prior to a Payment Date; and
107
WHEREAS, it the intent of this Resolution is to authorize the City to enter into the
Master Settlement Agreement with the Settling Defendant by executing the Participation
Agreement and to enter into the Allocation Agreement by executing the signature pages to
those agreements.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Cypress
hereby approves and authorizes Peter Grant, City Manager to execute all documents
required to settle and release the City's claims against the Settling Defendant in exchange
for the consideration set forth in the Settlement Agreement, Allocation Agreement and all
exhibits thereto to be paid through the County of Orange.
BE IT FURTHER RESOLVED that all actions heretofore taken by the City Council of
the City of Cypress and other appropriate public officers and agents of the City with respect
to the matters contemplated under this Resolution are hereby ratified, confirmed and
approved.
PASSED AND ADOPTED by the City Council of the City of Cypress at a regular
meeting held on the 8th day of July, 2024.
`► YOR I TH CISS
ATTEST:
AAnt
CITY CLERK OF THE'CITY OF CYPRESS
STATE OF CALIFORNIA }
COUNTY OF ORANGE } SS
I, ALISHA FARNELL, City Clerk of the City of Cypress, DO HEREBY CERTIFY that the
foregoing Resolution was duly adopted at a regular meeting of the said City Council held on
the 8th day of July, 2024, by the following roll call vote:
AYES: 5 COUNCIL MEMBERS: Burke, Mallari, Marquez, Peat and Minikus
NOES: 0 COUNCIL MEMBERS: None
ABSENT: 0 COUNCIL MEMBERS: None
CITY CLERK OF TH CITY4 CYPRESS