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STRATEGIC OUTCOMES |
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ACTION |
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Safe & Prosperous |
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Motion |
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City Attorney |
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Active & Appealing |
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Resolution |
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Respected & Responsible |
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Ordinance - Introduction |
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Division: |
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Connected & Engaged |
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Ordinance - Adoption |
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Administration |
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Unique & Creative |
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Public Hearing |
TITLE:
title
Opioid Settlements
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SUMMARY RECOMMENDATION:
Summary Recommendation
Authorize the City Administrator to execute all necessary documents for the City of Yuma to opt into and receive the City’s share of settlement proceeds in multiple class-action opioid lawsuits. (City Attorney) (Richard W. Files)
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STRATEGIC OUTCOME:
Opting into these opioid settlements allows the City to offset future costs to public resources related to the opioid epidemic furthering City Council’s strategic outcome of Safe and Prosperous.
REPORT:
The City is a recipient of settlement funds from the below listed class-action opioid lawsuit settlements. In order to receive these funds, the City must opt-in to the settlement. The funds are distributed through the State of Arizona to the various counties and cities based on percentages determined by the parties to the lawsuits.
1. Teva, Allergan, CVS, Walgreens, and Walmart National Opioid Settlements: Total settlement fund of $4.9 billion, less attorney fees and court costs, to be distributed over 10 years.
2. Kroger National Opioid Settlement: Total settlement of $1.3 - $1.4 billion, less attorney fees and court costs, to be distributed over 10 years.
3. Purdue National Opioid Settlement: Total settlement of $7.4 billion, less attorney fees and court costs, to be distributed over 15 years.
4. Secondary Manufacturers National Opioid Settlement: $720 million, less attorney fees and court costs, to be paid over multi-year installments depending on the manufacturer.
5. Six Remnant Defendants National Opioid Settlement: $97.6 million, less attorney fees and court costs, to be paid in a one-time payment.
6. Albertson’s Opioid Settlement: $774 million, less attorney fees and court costs, to be distributed over 9 years.
The way the settlements work is on a state-by-state basis. The Arizona settlement is distributed as follows:
• The State of Arizona receives 44% of all settlement proceeds while 56% of the settlement proceeds are distributed to participating local governments.
• The 56% distribution to participating local governments results in a 2.008% share of the 56% distribution (less costs of litigation paid by the local government share) being allocated to Yuma County.
• In Yuma County, there are 5 participating local governments and the breakdown of the settlement proceeds result in the following: of the 2.008 of 56% of any settlement, Yuma County will receive 66.03%, the City of Yuma will receive 26.32%, the City of San Luis will receive 4.8%, the Town of Somerton will receive 2.24%, and the Town of Wellton will receive 0.61%.
To date the City of Yuma has received $1,094,286 in opioid settlement funds which must be spent towards remediation strategies of the opioid epidemic such as opioid or drug education, treatment of opioid disorder, saving lives through Naloxone strategies, training and prevention, public education, drug take-back disposal and destruction programs, funding for community anti-drug coalitions, youth-based strategies, law enforcement and first responder education and expenditures relating to the opioid epidemic and best practices and precautions when dealing with fentanyl or other drugs. The permitted expenditures are detailed in Exhibit A to the One Arizona Distribution of Opioid Settlement Funds Agreement. There is no time limit on the expenditure of settlement funds.
This motion is being approved by City Council in order to opt-into the Albertson’s settlement, but authorizes all future opioid settlement opt-ins, regardless of the named defendant.
FISCAL REQUIREMENTS:
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CITY FUNDS: |
$ 0.00 |
BUDGETED: |
$ 0.00 |
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STATE FUNDS: |
$ 0.00 |
AVAILABLE TO TRANSFER: |
$ 0.00 |
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FEDERAL FUNDS: |
$ 0.00 |
IN CONTINGENCY: |
$ 0.00 |
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OTHER SOURCES: |
$ 0.00 |
FUNDING ACCOUNT/FUND #/CIP: |
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TOTAL |
$ 0.00 |
- |
FISCAL IMPACT STATEMENT: NONE
ADDITIONAL INFORMATION:
SUPPORTING DOCUMENTS NOT ATTACHED TO THE CITY COUNCIL ACTION FORM THAT ARE ON FILE IN THE OFFICE OF THE CITY CLERK:
NONE
IF CITY COUNCIL ACTION INCLUDES A CONTRACT, LEASE OR AGREEMENT, WHO WILL BE RESPONSIBLE FOR ROUTING THE DOCUMENT FOR SIGNATURE AFTER CITY COUNCIL APPROVAL?
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Department |
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City Clerk’s Office |
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Document to be recorded |
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Document to be codified |
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Acting City Administrator: |
Date: |
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John D. Simonton |
10/27/2026 |
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Reviewed by City Attorney: |
Date: |
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Richard W. Files |
10/26/2026 |