R-132-21 Authorizing the City Manager to Enter into the SEttlement Agreements with Mckesson Corp. Cardinal Health Inc, Amerisourcebergen Corp. Johnson and Johnson, Janseen Pharm. Inc and Janssen Parma. Agree to the Terms of

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I WHEREAS, the funds in the CA Abatement Accounts Fund (the 70% allocation) 2 will be allocated based on the allocation model developed in connection with the proposed negotiating class in the National Prescription Opiate Litigation (MDL No. 2804), 3 as adjusted to reflect only those cities and counties that are eligible, based on population or litigation status, to become a CA Participating Subdivision (those above 10,000 in 4 population). The percentage from the CA Abatement Accounts Fund allocated to each CA Participating Subdivision is set forth in Appendix 1 to the Allocation Agreements and 5 provided to the City Council with this Resolution. The City's share of the CA Abatement 6 Accounts Fund will be a product of the total in the CA Abatement Accounts Fund multiplied by the City's percentage set forth in Appendix 1 (the "Local Allocation"); and 7 8 WHEREAS, a CA Participating Subdivision that is a city will be allocated its Local Allocation share as of the date on which it becomes a Participating Subdivision. The 9 Local Allocation share for a city that is a CA Participating Subdivision will be paid to the 10 county in which the city is located, unless the city elects to take a direct election of the settlement funds, so long as: (a) the county is a CA Participating Subdivision, and (b) the 11 city has not advised the Settlement Fund Administrator that it requests direct payment at least 60 days prior to a Payment Date; and 12 13 WHEREAS, it the intent of this Resolution is to authorize the City to enter into the 14 Settlement Agreements by executing the Participation Agreements and to enter into the Allocation Agreements by executing the signature page to those agreements. 15 16 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY 17 OF COLTON AS FOLLOWS: 18 19 SECTION 1. The above recitals are true and correct and are incorporated herein by this reference. 20 21 SECTION 2. The City Manager is authorized to: (1) settle and release the City's 22 claims against the Settling Defendants in exchange for the consideration set forth in the Settlement Agreements and Allocation Agreements and (2) execute any other 23 documents as may be necessary to fully settle and release the City's claims against the Settling Defendants. 24 25 SECTION 3. That the City Council finds this Resolution is not subject to the 26 California Environmental Quality Act (CEQA) in that the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant 27 effect on the environment. Where it can be seen with certainty, as in this case, that there is no possibility that the activity in question may have a significant effect on the 28 environment, the activity is not subject to CEQA. RVPUBWXM1666167.1 -3