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HomeMy WebLinkAboutR-2025-142 Resolution approving the Washington State Allocation Agreement Governing the Allocation of Funds Paid by the Purdue Bankruptcy, Sacklers, and Certain Opioid Manufacturers and participation in the Purdue, Alvogen, Amneal, Apotex, Hikma, IndivioRESOLUTION NO. R-2025-142 A RESOLUTION approving the Washington State Allocation Agreement Governing the Allocation of Funds Paid by the Purdue Bankruptcy, Sacklers, and Certain Opioid Manufacturers and participation in the Purdue, Alvogen, Amneal, Apotex, Hikma, Indivior, Mylan, Sun, and Zydus Settlements. WHEREAS, the City approved the One Washington Memorandum of Understanding Between Washington Municipalities and its Allocation Agreement III, which the City agreed to settle any claims it might have against certain pharmaceutical supply chain entities, manufacturers and distributors in exchange for a percentage of the total negotiated settlement amounts; and WHEREAS, a tentative settlement has now been reached with nine manufacturers: Purdue, Alvogen, Amneal, Apotex, Hikma, Indivior, Mylan Sun, and Zydus, in the total amount of $122.2 million to be paid over the next fifteen (15) years; and WHEREAS, the City is entitled to take advantage of these settlement amounts due to its participation in the One Washington memorandum; and WHEREAS, to take advantage of the settlement funding the City must approve said settlement agreements by agreeing to the Washington State Allocation Agreement Governing the Allocation of Funds Paid by the Purdue Bankruptcy, Sacklers, and Certain Opioid Manufacturers ("Allocation Agreement IV") and filling out and returning the Participation Forms for each settlement by the deadline; and WHEREAS, the City Council finds that it is in the best interest of the City of Yakima and its residents to enter into the settlement agreements with Purdue, Alvogen, Amneal, Apotex, Hikma, Indivior, Mylan Sun, and Zydus; and to secure a portion of the settlement proceeds to be used in the City of Yakima for approved uses as outlined in the One Washington Memorandum and Allocation Agreement IV; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF YAKIMA: The City Council of the City of Yakima hereby authorizes the City Manager to sign the Washington State Allocation Agreement Governing the Allocation of Funds Paid by the Purdue Bankruptcy, Sacklers, and Certain Opioid Manufacturers ("Allocation Agreement IV"), the Participation Forms for the Purdue, Alvogen, Amneal, Apotex, Hikma, Indivior, Mylan Sun, and Zydus Settlement Agreements, and all necessary documents and contracts to effectuate the settlements. ADOPTED BY THE CITY COUNCIL this 16ih day Q AIIEST: osalinda Ibarra, City Clerk Item No. 7.H. For Meeting of: September 16, 2025 ITEM TITLE:Resolution approving the Washington State Allocation Agreement Governing the Allocation of Funds Paid by the Purdue Bankruptcy, Sacklers, and Certain Opioid Manufacturers and participation in the Purdue, Alvogen, Amneal, Apotex, Hikma, Indivior, Mylan, Sun, and Zydus Settlements SUBMITTED BY:Sara Watkins, City Attorney BUSINESS OF THE CITY COUNCIL YAKIMA, WASHINGTON AGENDA STATEMENT SUMMARY EXPLANATION: The Washington State Attorney General has reached settlement with nine opioid manufacturers, including Purdue, regarding their role in the opioid epidemic. The settlement totaled $122.2 million to the State of Washington and the individual jurisdictions, payable over fifteen years. As with the other settlements, the City of Yakima is allocated 0.6060410539% (after costs and attorneys’ fees are taken from the settlement proceeds). The estimated state total, assuming full participation from all jurisdictions, from the settlements is $105,598,053.62. Based on the above percentage, the estimated amount Yakima may receive is $639,967.55. This is scheduled to be paid out in various amounts over the course of 16 payments. To take advantage of the settlements, and receive settlement funds, the City must join the settlements by executing a number of documents and agreeing to the proposed updated Allocation Agreement. As with the previous distributor, manufacturer and other settlements, this settlement is contingent on eligible cities and counties joining the settlements, and the City will receive a percentage share of the settlement proceeds allocated to local jurisdictions. Information about the settlement can be found here: https://www.atg.wa.gov/purdue-pharma-and- generic-manufacturers-settlements ITEM BUDGETED: No STRATEGIC PRIORITY 24-25: A Safe and Healthy Yakima RECOMMENDATION: Adopt Resolution. ATTACHMENTS: Resolution_allocation agmt re opioid settlements_Purdue Bankruptcy UpdatedSettlementPacket_20250728_ Updated_Local_Government_Payments-2025-07-10 National Opioid Settlement Notice_Settlement Overview.pdf