Loading...
HomeMy WebLinkAboutResolution 2024-050 RESOLUTION NO. 2024-050 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS, APPROVING THE SETTLEMENT AND ALLOCATION OF KROGER OPIOID SETTLEMENT FUNDS WITHIN THE STATE OF TEXAS THROUGH THE TEXAS ATTORNEY GENERAL'S OFFICE; AUTHORIZING THE CITY MANAGER TO EXECUTE SETTLEMENT DOCUMENTS ON THE CITY'S BEHALF; REPEALING ALL RESOLUTIONS IN CONFLICT WITH THIS RESOLUTION; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, the City of North Richland Hills, Texas ("City") is a home rule municipality acting under its Charter adopted by the electorate pursuant to Article XI, Section 5 of the Texas Constitution and Chapter 9 of the Local Government Code; and WHEREAS, the Texas Attorney General's Office has engaged in litigation against certain pharmaceutical companies and retail pharmacies to abate and alleviate the impacts of the opioid epidemic throughout the State of Texas; and WHEREAS, the City has obtained information indicating that certain drug companies and their corporate affiliates, parents, subsidiaries, and such other defendants as may be added to the litigation (collectively, "Defendants") have engaged in fraudulent and/or reckless marketing and/or distribution of opioids that have resulted in addictions and overdoses; and WHEREAS, the actions, conduct, and misconduct of these Defendants have resulted in significant financial cost to the City; and WHEREAS, on May 13, 2020, the State of Texas, through the Office of the Attorney General, and a negotiation group for Texas political subdivisions entered into an Agreement entitled Texas Opioid Abatement Fund Council and Settlement Allocation Term Sheet (the "Texas Term Sheet") approving the allocation of any and all opioid settlement funds within the State of Texas; and WHEREAS, the City previously resolved to adopt the Texas Term Sheet, and to participate in settlement agreements related thereto; and WHEREAS, the State of Texas has now negotiated a settlement agreement with Kroger resolving litigation and potential litigation between Kroger and the State and its subdivisions. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF NORTH RICHLAND HILLS, TEXAS, THAT: SECTION 1. The City Council hereby finds that the recitals set forth above are true and correct and are incorporated into this Resolution as if written herein. Resolution No.2024-050 Page 1 of 3 SECTION 2. The City Council supports the adoption and approval of the Texas Term Sheet in its entirety. SECTION 3. The City Council finds the following: a) There is a substantial need for repayment of opioid-related expenditures and payment to abate opioid-related harms in and about the City. b) The City Council supports, in its entirety, and has previously adopted the allocation method for opioid settlement proceeds as set forth in the Texas Term Sheet. c) The City Council understandsthat the purpose of this Texas Term Sheet is to permit collaboration between the State of Texas and political subdivisions to explore and potentially effectuate resolution of the Opioid litigation against Defendants. d) The City Council also understands that an additional purpose is to create an effective means of distributing any potential settlement funds obtained under this Texas Term Sheet between the State of Texas and political subdivisions in a manner and means that would promote an effective and meaningful use of the funds in abating the opioid epidemic in the City and throughout the State of Texas. SECTION 4. The City Council hereby authorizes the City Manager to execute on the City's behalf the Subdivision Settlement Participation Forms as related to the Kroger settlement attached hereto as Exhibit "A". SECTION 5. All Resolutions of the City Council of the City in conflict herewith are hereby amended or repealed to the extent of such conflict. SECTION 6. This Resolution shall take effect and be in full force and effect from and after the date of its adoption, and it is so resolved. PASSED AND APPROVED on this 9th day of December, 2024. CITY OF NORTH RICHLAND HILLS --2,,(c4 ck McCarty, Mayor Resolution No.2024-050 Page 2 of 3 ATTEST: ,,`oo�eAcHLA j�0,��� tz.. ' 'U �,h o sn Alicia Richardson :u- O ••. e.:1y City Secretary/Chief Gove �e.Offrce - •4 pl,, ►r**• ,.. APPROVED AS TO FORM AND LEGALITY: Bradley A. derle, City Attorney APPROVED AS TO CONTENT: Trudy J. Assistant City Manager Resolution No.2024-050 Page 3 of 3 Exhibit A TEXAS SETTLEMENT SUBDIVISION PARTICIPATION AND RELEASE FORM Political Subdivision:City of North Richland Hills Texas Authorized Official: Paulette Hartman, City Manager Address 1: 4301 City Point Drive Address 2: P.O.Box 820609 City, State,Zip:North Richland Hills, TX 76182 Phone: 817-427-6000 Email: pahartman@nrhtx.com The governmental entity identified above("Texas Political Subdivision"), in order to obtain and in consideration for the benefits provided to the Texas Political Subdivision pursuant to the Kroger Texas Settlement Agreement and Full Release of All Claims dated October 30, 2024 ("Kroger Texas Settlement"),and acting through the undersigned authorized official,hereby elects to participate in the Kroger Texas Settlement, release all Released Claims against all Released Entities, and agrees as follows. 1. The Texas Political Subdivision above is aware of and has reviewed the Kroger Settlement Agreement, 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 Texas Political Subdivision elects to participate in the Kroger Texas Settlement and become a Participating Texas Political Subdivision as provided therein. 2. The Texas Political Subdivision shall immediately cease any and all litigation activities as to the Released Entities and Released Claims and, within 14 days of executing this Participation and Release Form, its counsel shall work with Kroger's counsel to dismiss with prejudice any Released Claims that it has filed. 3. The Texas Political Subdivision agrees to the terms of the Kroger Texas Settlement pertaining to Texas Political Subdivisions as provided therein. 4. By agreeing to the terms of the Kroger Texas Settlement and becoming a Releasor, the Texas Political Subdivision is entitled to the benefits provided therein,including, if applicable,monetary payments beginning after the Effective Date of the Release. 5. The Texas Political Subdivision agrees to use any monies it received through the Kroger Texas Settlement solely for the purposes provided therein. A-1 Resolution No.2024-050 Exhibit"A" Page 1 of 3 6. The Texas Political Subdivision submits to the exclusive jurisdiction and authority of the Texas Consolidated Litigation Court as defined in the Kroger Texas Settlement. For the avoidance of doubt,nothing contained in this Participation and Release Form, or the Kroger Texas Settlement, constitutes consent to jurisdiction, express or implied,over the Texas Political Subdivision or its selected counsel to the jurisdiction of any other court(including without limitation MDL 2804,the MDL 2804 Fee Panel, the MDL 2804 Enforcement Committee, or the Court in which any Texas Consent Judgment is filed)for any purpose whatsoever. 7. The Texas Political Subdivision, as a Participating Texas Subdivision, has the right to enforce the Kroger Texas Settlement in the Texas Consolidated Litigation Court as provided therein. 8. The Texas Political Subdivision, as a Participating Texas Subdivision, hereby becomes a Releasor for all purposes in the Kroger Texas Settlement, including but not limited to all provisions of Section V (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 Texas Political Subdivision 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 Entities in any forum whatsoever. The releases provided for in the Kroger Texas Settlement are intended by the Parties to be broad and shall be interpreted so as to give the Released Entity 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 Texas Political Subdivision to release claims. The Kroger Texas Settlement shall be a complete bar to any Released Claim. 9. The Texas Political Subdivision hereby takes on all rights and obligations of a Participating Texas Subdivision as set forth in the Kroger Texas Settlement. 10.In connection with the releases provided for in the Kroger Texas Settlement, each Texas Political Subdivision 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-2 Resolution No.2024-050 Exhibit"A" Page 2 of 3 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 Texas Political Subdivision 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 Texas Settlement. 11.The Texas Political Subdivision acknowledges, agrees, and understands that the Maximum Texas Settlement Amount to be paid under the Kroger Texas Settlement for the benefit of the Participating Texas Political Subdivision,is less than or equal to the amount, in the aggregate, of the Alleged Harms allegedly suffered by the governmental entity, constitutes restitution and remediation for damage or harm allegedly caused by Kroger in order to restore, in whole or part,the governmental entity to the same position or condition that it would be in had it not suffered the Alleged Harms; and constitutes restitution and remediation for damage or harm allegedly caused by the potential violation of a law and/or is an amount paid to come into compliance with the law. 12.Nothing herein is intended to modify in any way the terms of the Kroger Texas Settlement Agreement,to which the Texas Political Subdivision hereby agrees.To the extent this Participation and Release Form is interpreted differently from the Kroger Texas Settlement,the Kroger Texas Settlement controls. I have all necessary power and authorization to execute this Participation and Release Form on behalf of the Texas Political Subdivision. Signature: Name: Pau_ette Hartman Title: Ci Manager Date: 12 ,.sz°`°°R�CHL40s, AT F',rST: , .`�eg , yfol '% Alicia Richardson h City Secretary/Chief Goverr%n a tl[f cer...... e t4P/Irk 'xsQ'*w A-3 Resolution No.2024-050 Exhibit"A" Page 3 of 3