3.3 Amended MOA and Authorizing Settlement - Prescription Opioids
Request for
City Council Action
DEPARTMENT INFORMATION
ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE:
Administration City Attorney Kendall March 27, 2023
PRESENTER(s) REVIEWED BY: ITEM #:
Consent City Administrator/Finance Director Flaherty 3.3 – Opioid Settlements
STRATEGIC VISION
MEETS: THE CITY OF OTSEGO:
X Is a strong organization that is committed to leading the community through innovative
communication.
Has proactively expanded infrastructure to responsibly provide core services.
Is committed to delivery of quality emergency service responsive to community needs and
expectations in a cost-effective manner.
Is a social community with diverse housing, service options, and employment opportunities.
Is a distinctive, connected community known for its beauty and natural surroundings.
AGENDA ITEM DETAILS
RECOMMENDATION:
City staff is recommending that the City Council adopt a resolution authorizing opioid settlement.
ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED?
No No
BACKGROUND/JUSTIFICATION:
For several years, state and local governments have been in civil litigation with manufacturers and
distributors of prescription opioids related to the opioid crisis. The lawsuits largely allege facts that the
pharmaceutical industry has promoted opioid use to treat chronic pains at unprecedented rates, while
ignoring or downplaying the addictive properties of opioids and ignoring evidence of over-prescription and
misuse. The lawsuit allege that this activity resulted in mass addiction in opioid use and other illegal drugs,
crime, rising health care and insurance premiums, and other costs borne by public entities, including cities.
While jurisdictions impacts are unique, counties have largely experienced severe impacts on social services
(such as child protection) and public health programming and cities have experienced impacts in public
safety.
In 2021, there were two proposed nationwide settlements, and by Resolution 2021-89, the City Council
approved a Memorandum of Agreement (MOA) and authorized participation in the initial settlements.
In the time since, there have been additional proposed nationwide settlements. The Minnesota Attorney’s
General Office, with assistance from many more, have negotiated and prepared an Amended MOA to
provide for equitable distribution of proceeds to the State of Minnesota and to individual local
governments. The more local governments who sign on to the MOA, it maximizes Minnesota’s share of the
opioid settlement funds, demonstrate solidarity in response to the opioid epidemic, and ensure needed
resources reach the most impacted communities.
It is anticipated that in addition to the previous and current settlements, that there will be future
settlements. The MOA and attached resolution reflect future settlement distributions and will authorize
City staff to participate in all future opioid settlements on behalf of the City.
For staff to initiate formal settlement approval, the City Council must approve participation in the amended
settlement agreement. From our perspective, there is no downside for the City. Staff and legal counsel
recommend approval of a resolution approving the amended settlement agreement.
SUPPORTING DOCUMENTS ATTACHED:
• Resolution 2023-21
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES:
Motion to adopt Resolution 2023-21 approving the amended memorandum of agreement (MOA) between
the State of Minnesota and local governments and authorizing participation in national prescription opioid
settlements.
BUDGET INFORMATION
FUNDING: BUDGETED:
N/A
N/A
1
CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO: 2023-21
APPROVING THE AMENDED MEMORANDUM OF AGREEMENT (MOA)
BETWEEN THE STATE OF MINNESOTA AND LOCAL GOVERNMENTS
AND AUTHORIZING PARTICIPATION IN
NATIONAL PRESCRIPTION OPIOID SETTLEMENTS
WHEREAS, the State of Minnesota, Minnesota cities and counties, and their people, have been harmed
by misconduct committed by certain entities that engage in the manufacture, marketing, promotion,
distribution, or dispensing of opioids; and
WHEREAS, the State of Minnesota and numerous Minnesota cities and counties joined with thousands
of local governments across the country to file lawsuits against opioid manufacturer and pharmaceutical
distribution companies and hold those companies accountable for their misconduct; and
WHEREAS, representatives of local Minnesota governments, the League of Minnesota Cities, the
Association of Minnesota Counties, the Coalition of Greater Minnesota Cities, the State of Minnesota,
and the Minnesota Attorney General’s Office have negotiated and prepared a Memorandum of
Agreement (MOA) to provide for the equitable distribution of proceeds to the State of Minnesota and to
individual local governments from recent settlements in the national opioid litigation; and
WHEREAS, by signing onto the MOA, the state and local governments maximize Minnesota’s share of
opioid settlement funds, demonstrate solidarity in response to the opioid epidemic, and ensure needed
resources reach the most impacted communities; and
WHEREAS, by Resolution 2021-89, the City approved the MOA; and
WHEREAS, future settlements involving local governments are contemplated within current lawsuits
and bankruptcy proceedings; and
WHEREAS, the Minnesota Attorney General’s Office proposed an Amended MOA to reflect future
settlement distributions; and
WHEREAS, it is in the best interests of the State of Minnesota and the residents of the City of Otsego,
and the County of Wright, that the City participate in all future Opioid Litigation Settlements
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NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OTSEGO, MINNESOTA:
1. Participation in the Opioid Litigation Settlements promotes the public health, safety, and welfare of
the residents of the City of Otsego.
2. The City of Otsego supports and opts-in to all applicable national opioid litigation settlements
negotiated by the Minnesota Attorney General’s Office and or the litigating entities.
3. The Amended Memorandum of Agreement (MOA) between the State of Minnesota and Local
Governments relating to the distribution of settlement funds is hereby approved.
4. City Staff is hereby authorized to take such measures as necessary to sign the Amended MOA and
otherwise participate in all future national opioid settlements, including executing and Participation
Agreements and accompanying Releases. City staff shall report to the City Council, as necessary, on
the status of future settlements, including financial distributions and timelines.
ADOPTED by the Otsego City Council this 27th day of March, 2023.
MOTION BY:
SECONDED BY:
IN FAVOR:
OPPOSED:
CITY OF OTSEGO
__________________________________
Jessica L. Stockamp, Mayor
ATTEST:
__________________________________
Audra Etzel, City Clerk