HomeMy WebLinkAboutReg 2024-08-05 Item 7 - Agreement - Participation Form and Allocation Agreement #3 through One Washington Memorandum of Understanding (Kroger Opioid Settlement)COUNCIL AGENDA SYNOPSIS
Initials
Meeting Date
Prepared by
Mayor's review
Council review
8/5/24
K. Sand
ITEM INFORMATION
ITEM NO.
7
STAFF SPONSOR: KARI SAND, CITY ATTORNEY
ORIGINAL AGENDA DATE: 8/5/24
AGENDA ITEM TITLE Consideration of a Participation Form and Allocation Agreement for the Opioid
Mitigation Settlement Agreement with Kroger Co.
CATEGORY ❑ Discussion
Mtg Date
® Motion
Mtg Date 8/5/24
❑ Resolution
Mtg Date
❑ Ordinance
Mtg Date
❑ Bid Award
Mtg Date
❑ Public Hearing
Mtg Date
❑ Other
Mtg Date
SPONSOR ❑ Council ® Mayor ❑ Admin Svcs ❑ DCD
Finance ❑ Fire ❑ P&R ❑ Police ❑ PW
SPONSOR'S
SUMMARY
The Council is being asked to consider and approve the City's participation in a settlement
agreement with Kroger Co. to mitigate harm caused by the opioid crisis that was
negotiated by the Washington State Attorney General's Office on behalf of Washington
cities.
REVIEWED BY
❑ Trans&Infrastructure Svcs ❑ Community Svcs/Safety ❑ Finance & Governance ❑ Planning & Community Dev.
❑ LTAC
DATE: N/A
❑ Arts Comm.
❑ Parks Comm. ❑ Planning Comm.
COMMITTEE CHAIR: N/A
RECOMMENDATIONS:
SPONSOR/ADMIN. Kari Sand, City Attorney
COMMITTEE
COST IMPACT / FUND SOURCE
EXPENDITURE REQUIRED AMOUNT BUDGETED APPROPRIATION REQUIRED
Fund Source:
Comments:
MTG. DATE
RECORD OF COUNCIL ACTION
8/5/24
MTG. DATE
ATTACHMENTS
8/5/24
Informational Memorandum, dated 8/5/2024
Kroger Opioid Settlement Agreement
Kroger Opioid Settlement Allocation Agreement
Kroger Opioid Settlement Agreement Participation Form
City Contract #22-052: One Washington MOU Between Washington Municipalities
151
152
City of Tukwila
Thomas McLeod, Mayor
INFORMATIONAL MEMORANDUM
TO: TUKWILA CITY COUNCIL
FROM: Kari Sand, City Attorney
CC: Mayor McLeod
DATE: August 5, 2024
SUBJECT: Consideration of a Participation Form and Allocation Agreement for the
Opioid Mitigation Settlement with Kroger Co.
ISSUE
On April 23, 2024, the Washington State Attorney General announced that the State of Washington joined
a multistate $47.5 million settlement with Kroger Co. ("Kroger"). To participate in the settlement and receive
funds for the mitigation of harm associated with prescription opioids, the City must complete and submit the
Participation Form and Allocation Agreement by not later than August 12, 2024.
BACKGROUND
In recent years, the Washington State Attorney General's Office has filed numerous lawsuits against entities
involved in the pharmaceutical supply chain of prescription opioids. Since then, several of the lawsuits
have been settled, including lawsuits against AmerisourceBergen, Cardinal Health, and McKesson for $518
million, as well as a lawsuit against Johnson & Johnson for $149.5 million.
As a qualifying Washington State municipality, the City may opt into the settlement agreement to receive
funds in exchange for waiver of certain legal claims. The exact amount the City will receive from the
settlement agreement is determined by the One Washington Memorandum of Understanding Between
Washington Municipalities ("MOU") and the Allocation Agreement. Previously, City Council approved the
MOU and allocation agreements for the settlements with AmerisourceBergen, Cardinal Health, McKesson,
and Johnson & Johnson.
The proposed settlement with Kroger is for $47.5 million, payable over 11 years. As with the prior settlement
agreements, this new settlement is contingent on eligible cities and counties joining the settlement. If all
eligible cities and counties join, as they did for the prior settlements, then cities and counties will receive
$23.75 million, which is half of the abatement amount. Funds received from this settlement must be spent
on opioid remediation to abate the opioid crisis in their communities. Copies of the Kroger Settlement
Agreement, Kroger Allocation Agreement, and Kroger Settlement Participation Form, and the One
Washington MOU are linked below or attached to this memorandum.
To join the Kroger Settlement Agreement, the City must complete and submit the Settlement Participation
Form and Allocation Agreement online or via email to opioidsparticipation@rubris.com by not later than
August 12, 2024.
RECOMMENDATION
The Council is being asked to authorize execution of the Kroger Opioid Mitigation Settlement Participation
Form and Allocation Agreement by the Mayor at the August 5, 2024, Regular Meeting.
ATTACHMENTS
-Kroger Settlement Agreement
-Kroger Settlement Agreement Opioid Allocation Agreement
-Kroger Opioid Settlement Agreement Participation Form
-City Contract #22-052: One Washington Memorandum of Understanding Between Washington
Municipalities
153