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HomeMy WebLinkAbout2024-096-08/20/2024-APPROVING PARTICIPATION IN THE SETTLEMENT WITH AN ADDITIONAL OPIOID DEFENDANT, KROGER, AND A RELATEDRESOLUTION 2024-096 OF THE COUNCIL OF THE CITY OF FORT COLLINS APPROVING PARTICIPATION IN THE SETTLEMENT WITH AN ADDITIONAL OPIOID DEFENDANT,KROGER,AND A RELATED WAIVER OF CLAIMS A.Communities throughout the State of Colorado,including the City of Fort Collins (“City),are suffering from an epidemic of opioid addiction. B.The opioid epidemic has not only affected individuals and families across the country,but it has also burdened the local and state governments charged with providing the services needed to address the wave of addiction. C.Local and state governments across the nation,including in Colorado,have filed lawsuits against opioid manufacturers,distributors,and pharmacies for creating the opioid epidemic. D.The parties to the various opioid lawsuits have been negotiating settlement agreements to resolve the litigation which include incentive payments for maximizing participation by local governments. E.Through extensive negotiations,local governments and the Colorado Attorney General’s Office negotiated a Memorandum of Understanding to govern how opioids settlement funds will be allocated in Colorado,to maximize recovery from the variety of lawsuits filed by the state and local governments across the nation (“MOU”), along with the Subdivision Settlement Participation Forms to address opioid defendants Johnson &Johnson,AmerisourceBergen,Cardinal Health,and McKesson. F.On December 7,2021,the City Council approved Resolution 2021-113, approving participation in the Colorado Opioids Settlement and authorizing execution of related agreements,which were signed and submitted to the Colorado Attorney General in December 2021. G.On May 3,2022,the City Council approved Resolution 2022-055, authorizing the execution of an intergovernmental agreement regarding regional opioid settlement implementation (“IGA”)and designating a City representative to the Larimer Regional Opioid Council. H.The City entered into the IGA and it has since been amended to add participation by the Town of Estes Park,pursuant to City Council’s Resolution 2023-011 adopted on January 17,2023. I.On March 21,2023,the City Council adopted Resolution 2023-028, approving additional settlements with opioid defendants Teva,Allergan,Walmart,CVS and Walgreens. J.A national settlement has now been negotiated on behalf of the State of Colorado and participating local governments with an additional opioid defendant,Kroger, and the City may participate in this settlement and receive settlement payments by executing the Participation Form for this opioid defendant,including an associated waiver of claims. K.The City desires to participate in the Colorado opioids settlement to increase recoveries for Colorado government entities and so the City is eligible to receive settlement funds to be used for approved purposes to abate the opioid epidemic as defined in the MOU for the benefit of the residents of the City. L.Accordingly,the City Council desires to approve and authorize execution of the Kroger Participation Form attached to this Resolution. In light of the foregoing recitals,which the Council hereby makes and adopts as determinations and findings,BE IT RESOLVED BY THE COUNCIL OF THE CITY OF FORT COLLINS as follows: Section 1.The City Council approves the Participation Form attached hereto as Exhibit A and incorporated herein by this reference Section 2.The Mayor is authorized and directed to execute on behalf of the City the attached Participation Form. Passed and adopted on August 20,2024. r 4 Mayor P ATTEST: ity ;/‘erk Effective Date:August 20,2024 Approving Attorney:Carrie M.Daggett Subdivision Participation and Release Form Governmental Entity:City of Fort Collins State:Colorado Authorized Official:Mayor Pro Tern Ernily Francis Address 1:P0 Box 580 Address 2: City,State,Zip:Fort Collins,CO 80522 Phone:970-221-6520 Email:cdappetkThfcpov.com (Carrie Daacietfl The governmental entity identified above (“Governmental Entity”),in order to obtain and in consideration for the benefits provided to the Governmental Entity pursuant to the Settlement Agreement dated March 22,2024 (“Kroger Settlement”),and acting through the undersigned authorized official,hereby elects to participate in the Kroger Settlement,release all Released Claims against all Released Entities,and agrees as follows. 1.The Governmental Entity is aware of and has reviewed the Kroger Settlement,understands that all terms in this Participation and Release Form have the meanings defined therein, and agrees that by executing this Participation and Release Form,the Governmental Entity elects to participate in the Kroger Settlement and become a Participating Subdivision as provided therein. 2.The Governmental Entity shall promptly,and in any event no later than 14 days after the Reference Date and prior to the filing of the Consent Judgment,dismiss with prejudice any Released Claims that it has filed.With respect to any Released Claims pending in In re National Prescription Opiate Litigation,MDL No.2804,the Governmental Entity authorizes the Plaintiffs’Executive Committee to execute and file on behalf of the Governmental Entity a Stipulation of Dismissal with Prejudice substantially in the form found at hi/ps:nationalopioidsettlement.com. 3.The Governmental Entity agrees to the terms of the Kroger Settlement pertaining to Participating Subdivisions as defined therein. 4.By agreeing to the terms of the Kroger Settlement and becoming a Releasor,the Governmental Entity is entitled to the benefits provided therein,including,if applicable, monetary payments beginning after the Effective Date. 5.The Governmental Entity agrees to use any monies it receives through the Kroger Settlement solely for the purposes provided therein. 6.The Governmental Entity submits to the jurisdiction of the court in the Governmental Entity’s state where the Consent Judgment is filed for purposes limited to that court’s role as provided in,and for resolving disputes to the extent provided in,the Kroger Settlement. The Governmental Entity likewise agrees to arbitrate before the National Arbitration Panel K-I as provided in,and for resolving disputes to the extent otherwise provided in,the Kroger Settlement. 7.The Governmental Entity has the right to enforce the Kroger Settlement as provided therein. 8.The Governmental Entity,as a Participating Subdivision,hereby becomes a Releasor for all purposes in the Kroger Settlement,including without limitation all provisions of Section Xl (Release),and along with all departments,agencies,divisions,boards,commissions, districts,instrumentalities of any kind and attorneys,and any person in their official capacity elected or appointed to serve any of the foregoing and any agency,person,or other entity claiming by or through any of the foregoing,and any other entity identified in the definition of Releasor,provides for a release to the fullest extent of its authority.As a Releasor,the Governmental Entity hereby absolutely,unconditionally,and irrevocably covenants not to bring,file,or claim,or to cause,assist or permit to be brought,filed,or claimed,or to otherwise seek to establish liability for any Released Claims against any Released Entity in any forum whatsoever.The releases provided for in the Kroger Settlement are intended by the Parties to be broad and shall be interpreted so as to give the Released Entities the broadest possible bar against any liability relating in any way to Released Claims and extend to the full extent of the power of the Governmental Entity to release claims.The Kroger Settlement shall be a complete bar to any Released Claim. 9.The Governmental Entity hereby takes on all rights and obligations of a Participating Subdivision as set forth in the Kroger Settlement. 10.In connection with the releases provided for in the Kroger Settlement,each Governmental Entity expressly waives,releases,and forever discharges any and all provisions,rights,and benefits conferred by any law of any state or territory of the United States or other jurisdiction,or principle of common law,which is similar,comparable,or equivalent to §1542 of the California Civil Code,which reads: General Release;extent.A general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor at the time of executing the release that,if known by him or her would have materially affected his or her settlement with the debtor or released party. A Releasor may hereafter discover facts other than or different from those which it knows, believes,or assumes to be true with respect to the Released Claims,but each Governmental Entity hereby expressly waives and fully,finally,and forever settles,releases and discharges,upon the Effective Date,any and all Released Claims that may exist as of such date but which Releasors do not know or suspect to exist,whether through ignorance, oversight,error,negligence or through no fault whatsoever,and which,if known,would materially affect the Governmental Entities’decision to participate in the Kroger Settlement. 11.Nothing herein is intended to modify in any way the terms of the Kroger Settlement,to which Governmental Entity hereby agrees.To the extent this Participation and Release Form is interpreted differently from the Kroger Settlement in any respect,the Kroger Settlement controls. I have all necessary power and authorization to execute this Participation and Release Form on behalf of the Governmental Entity. Signature:______ Name:Emily Francis Title:Mayor Pro Tern Date:8/20/24 ~~________