Administration- Michelle A. Wolfe, City Manager
Title
Title
Resolution Approving the Memorandum of Agreement (MOA) Between the State of Minnesota and Local Governments and Authorizing Participation in National Opioid Settlements
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Executive Summary
The Council is asked to consider a resolution of support approving a memorandum of agreement for the national opioid settlements.
Background
The Minnesota Memorandum of Agreement (MN MOA) governs how Minnesota will distribute settlement funds from two national settlements with opioid distributors McKesson, Cardinal Health, and AmerisourceBergen and opioid manufacturer Johnson & Johnson. These settlements could bring more than $296 million to Minnesota over an 18-year period to support state and local efforts to fight the opioid epidemic. This funding will enable Minnesota to maximize resources to fight the epidemic. More than 5,400 Minnesotans have died of opioid overdoses since 2000. The epidemic has torn families apart and ravaged communities, particularly American Indian populations and communities of color. Individuals, families, and communities continue to suffer, as the COVID-19 pandemic has caused a surge in both fatal and nonfatal overdose deaths.
In order for Minnesota to receive the maximum payout under the two national settlements, cities and counties must join the state and sign on to the MN MOA and the settlement agreements. To maximize resources flowing to communities on the front lines of the epidemic, the MN MOA directs settlement funds as follows:
• 75 percent to local governments
- All counties and cities over 30,000 (33 cities)
o Allocation percentages was determined at the national level using data reflecting the impact of the crisis on the subdivision
• 25 percent to the state, to be overseen and distributed by the Opioid Epidemic Response Advisory Council.
- Expert panel selected comprehensive list of future opioid abatement and remediation programs
• LMC - Jamie Verbrugge
• Coalition of Greater MN Cities
• Association of MN Counties
• MN Attorney General’s Office
• Cities of Minneapolis and Duluth
• Hennepin, Ramsey, and Winona Counties
• Ex Officio Members
Settlement funds must be used to support specific strategies to fight the opioid crisis that are identified in the MOA. Although not all cities will receive a direct allocation from the settlements, all cities will have the potential to access county and state grants, and will benefit from the opioid remediation efforts by others that take place in their communities. Cities that do receive allocations could, if they choose, direct full or a portion of annual allocation to their county.
There is a deadline of January 2, 2022, for a sufficient threshold of Minnesota cities and counties to sign on to the State-Subdivision Agreement and to opt into the national settlements. Failure to timely sign on may significantly impact the amount of settlement funds ultimately received by Minnesota.
Strategic Plan Relationship
This item relates to all strategic priorities by addressing the crisis of opioid addiction and its impacts on resources in response but more importantly the impact on residents.
Board/Commission Review
N/A
Financial Impact
Based on the local abatement funds allocations outlined in Exhibit B of the MOA Blaine will be allocated 0.4249516912759% of the settlement fund percentages. This amount would provide Blaine $943,392 over the 18-year settlement period, which is $52,410 annually, to provide education, prevention, first responders support, training, research, and others.
Public Outreach/Input
N/A
Staff Recommendation
Adopt the resolution approving the Memorandum of Agreement (MOA) between the State of Minnesota and Local Governments, authorize participation in the National Opioid Settlements, and authorize the city manager to sign the Distributor Subdivision Settlement Participation Form and the Janssen Subdivision Settlement Participation Form (via DocuSign).
Attachment List
Body
WHEREAS, the State of Minnesota, Minnesota counties and cities, 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, it is in the best interests of the State of Minnesota and the residents of the City of Blaine and the County of Anoka, that the City participate in the national opioid litigation settlements.
NOW, THEREFORE, BE IT RESOLVED, that the Blaine City Council
1. Participation in the opioid litigation settlements promotes the public health, safety, and welfare of the residents of the City of Blaine.
2. The City of Blaine supports and opts-in to the national opioid litigation settlements with the Distributors McKesson, Cardinal Health, and Amerisource Bergen, and with the Manufacturer Johnson & Johnson.
1. The Memorandum of Agreement (MOA) between the State of Minnesota and Local Governments relating to the distribution of settlement funds is hereby approved by the City of Blaine
2. City Staff is hereby authorized to take such measures as necessary to sign the MOA and otherwise participate in the national opioid settlements, including executing the Participation Agreement and accompanying Release.
PASSED by the City Council of the City of Blaine this 20th day of December, 2021.