MEETING DATE:
September 23, 2025
SUBJECT:
Title
RESOLUTION NO. 2025-9495 - NATIONAL OPIOID SETTLEMENTS WITH PURDUE PHARMA L.P., THE SACKLER FAMILY, AND EIGHT SECONDARY OPIOID MANUFACTURERS
Body
Recommendation
Recommendation
ADOPT a resolution authorizing the City Manager or designee to execute and submit the National Opioid Settlement Participation Forms for the settlement agreements with Purdue Pharma L.P, its former owners, the Sackler family, and eight secondary opioid manufacturers.
Body
Board or Commission Action
Resolution No. 2021-8957 authorized the City Manager or designee to execute and submit the Opioid Settlement Participation forms for the proposed California State Subdivision Agreements regarding distribution and use of settlement funds for the Janssen Settlement and the Distributors Settlement
Executive Summary
Litigation brought by states, cities, and tribes across the United States have resulted in national opioid settlements with Purdue Pharma, L.P., its former owners, the Sackler family, and eight secondary opioid manufacturers. To participate in any settlement, the City of San Marcos must execute and submit two Settlement Participation Forms. The City must submit the Purdue/Sackler forms by September 30, 2025 and the Secondary Manufacturer forms by October 8, 2025
Discussion
Following a national $7.4 billion dollar settlement agreement with Purdue Pharma and the Sackler family, local municipalities are eligible to receive funding for local programs to address the opioid crisis. Funding will be distributed over 15 years, with the bulk of funding being distributed within the first three years. Local municipalities must authorize an official to sign the settlement. Funds must generally be used for opioid abatement and remediation activities, such as treatment, prevention, and recovery programs. A full description of allowable uses is included as Attachment C.
Each city and county within California with a population greater than 10,000 is eligible to receive funds and must decide whether to participate in the Additional Settlement Agreements. The more subdivisions that participate, the greater the amount of funds that will flow to California and participating subdivisions. If the City does not opt in to the Settlement Agreements, the City’s share will go to the State, but the total amount the State receives may be reduced since it is based on participating cities and counties. By not opting in, the City preserves the ability to litigate against the opioid distributors and manufacturers.
In 2021, Council authorized staff to participate in previous opioid settlements, with Janssen and Distributors; however, due to staff capacity at the time, the City directed funds to the County of San Diego in its public health capacity. Upon review of current settlements, staff is recommending redirecting future funding from prior settlements back to the City to further increase the capacity of settlement funds.
Environmental Review
The Opioid Settlements are not a “project” as defined under Section 15378 of the California Environmental Quality Act Guidelines (California Code of Regulations, Title 14, Division 6, Chapter 3, Sections 15000 - 15387) and the proposed action is therefore not subject to environmental review pursuant to Guidelines Section 15060(c)(3).
Fiscal Impact
Pending final acceptance of the Purdue, Sackler, Secondary Opioid Manufacturers and previously approved Janssen and Distributors settlements by all parties, the City would receive an estimated maximum amount of $1.4M over the course of 15 years with payments beginning as early as 2026. Pending participation of subdivisions (cities and counties) in the settlement, these amounts could be lower. Due to the nature of the terms of the settlement, an Opioid Abatement Fund would be created to demonstrate the allocation and expenditure of these funds according to the terms of the settlements.
Attachment(s)
Attachment A - Resolution authorizing the City Manager or designee to execute and submit the National Opioid Settlement Participation Forms for the settlement agreements with Purdue Pharma L.P, its former owners, the Sackler family, and eight secondary opioid manufacturers.
Attachment B - Settlement Participation Forms - Sackler Purdue Settlement
Attachment C - Settlement Participation Forms - Secondary Manufacturers Settlement
Attachment D - List of Opioid Remediation Uses (Exhibit E of the Settlements)
Prepared by: Sylvia Solis Daniels, Housing and Neighborhood Services Director
Approved by: Michelle Bender, City Manager