Fort Walton Beach Resolution — 2021-07--MOU--Opioid Settlement — reading text

Negotiation Committee regarding the terms of any other Pharmaceutical Supply Chain Participant Settlement. 9. Expense Fund- The Parties agree that in any negotiation every effort shall be made to cause Pharmaceutical Supply Chain Participants to pay costs of litigation, including attorneys' fees, in addition to any agreed to Opioid Funds in the Settlement. To the extent that a fund sufficient to pay the entirety of all contingency fee contracts for Local Governments in the State of Florida is not created as part of a Settlement by a Pharmaceutical Supply Chain Participant, the Parties agree that an additional expense fund for attorneys who represent Local Governments herein " Expense Fund") shall be created out of the City/County fund for the purpose of paying the hard costs of a litigating Local Government and then paying attorneys' fees. a) The Source of Funds for the Expense Fund- Money for the Expense Fund shall be sourced exclusively from the City/County Fund. b) The Amount of the Expense Fund- The State recognizes the value litigating Local Governments bring to the State of Florida in connection with the Settlement because their participation increases the amount Incentive Payments due from each Pharmaceutical Supply Chain Participant. In recognition of that value, the amount of funds that shall be deposited into the Expense fund shall be contingent upon on the percentage of litigating Local Government participation in the Settlement, according to the following table: Litigating Local Government Amount that shall be paid Participation in the into the Expense Fund Settlement ( by percentage of from ( and as a percentage the population) of) the City/County fund 96 to 100% 10% 91 to 95% 7. 5% 86 to 90% 5% 85% 2. 5% Less than 85% 0% If fewer than 85% percent of the litigating Local Governments ( by population) participate, then the Expense Fund shall not be funded, and this Section of the MOU shall be null and void. c) The Timing of Payments into the Expense Fund- Although the amount of the Expense Fund shall be calculated based on the entirety of payments due to the City/County fund over a ten to eighteen year period, the Expense Fund shall be funded entirely from payments made by Pharmaceutical Supply Chain Participants during the first two years of the Settlement. Accordingly, to offset the amounts being paid from the City/County to the Expense Fund in the first two years, Counties or Municipalities may borrow from the Regional Fund during the first two years and pay the borrowed amounts back to the Regional Fund during years three, four, and five. For the avoidance of doubt, the following provides an illustrative example regarding the calculation of payments and amounts that may be borrowed under the terms of this MOU, consistent with the provisions of this Section: Opioid Funds due to State of Florida and Local Governments ( over 10 to 18 years): $ 1, 000 Litigating Local Government Participation: 100% City/ County Fund( over 10 to 18 years): $ 150 Expense Fund( paid over 2 years): $ 15 Amount Paid to Expense Fund in 1st year: $ 7. 5 Amount Paid to Expense Fund in 2nd year $ 7. 5 Amount that may be borrowed from Regional Fund in 1st year: $ 7. 5 Amount that may be borrowed from Regional Fund in 2nd year: $ 7. 5 Amount that must be paid back to Regional Fund in 3rd year: 5 Amount that must be paid back to Regional Fund in 4th year: 5 Amount that must be paid back to Regional Fund in 5th year: 5 d) Creation of and Jurisdiction over the Expense Fund- The Expense Fund shall be established, consistent with the provisions of this Section of the MOU, by order of the Circuit Court of the Sixth Judicial Circuit in and for Pasco County, West Pasco Division New Port Richey, Florida, in the matter of The State ofFlorida, Office of the Attorney General, Department of Legal Affairs v. Purdue Pharma L.P., et al., Case No. 2018- CA- 001438 ( the " Court"). The Court shall have jurisdiction over the Expense Fund, including authority to allocate and disburse amounts from the Expense Fund and to resolve any disputes concerning the Expense Fund. e) Allocation of Payments to Counsel from the Expense Fund- As part of the order establishing the Expense Fund, counsel for the litigating Local Governments shall seek to have the Court appoint a third- neutral to serve as a special master for purposes of allocating the Expense Fund. Within 30 days of entry of the order appointing a special master for the Expense Fund, any counsel who intend to seek an award from the Expense Fund shall provide the copies of their contingency fee contracts to the special master. The special master shall then build a mathematical model, which shall be based on each litigating Local Government' s share under the Negotiation Class Metrics and the rate set forth in their contingency contracts, to calculate a proposed award for each litigating Local Government who timely provided a copy of its contingency contract. 10. Dispute resolution- Any one or more of the Local Governments or the State may object to an allocation or expenditure of Opioid Funds solely on the basis that the allocation or expenditure at issue ( a) is inconsistent with the Approved Purposes; ( b) is inconsistent with the distribution scheme as provided in paragraph 3, or( c) violates the limitations set forth herein with respect to administrative costs or the Expense Fund. There shall be no other basis for bringing an objection to the approval of an allocation or expenditure of Opioid Funds.  City of Fort Walton Beach Treasure of the Emerald Coast j107 Miracle Strip Parkway, SW* Fort Walton Beach, Fl 32548 850) 833- 9500* Fax( 850) 833- 9640 www. fwb.org Kim M. Barnes, MMC City Clerk 850- 833- 9509 kbarnes(n fH b. org June 30, 2021 The Honorable Attorney General Ashley Moody c/ o John M. Guard The Capitol PL- 01 Tallahassee, FL 32399- 1050 RE: Resolution 2021- 7 City of Fort Walton Beach Participant in the Opioid Settlement Dear Attorney General Moody, At its regular meeting on June 22, 2021, the City Council of the City of Fort Walton Beach formerly approved Resolution 2021- 7 to join with the State of Florida and other local governmental units as a participant in the Florida memorandum of understanding and formal agreements implementing a unified plan for proposed allocation and use of opioid settlement proceeds obtained by the State of Florida. Attached is a certified copy of Resolution 2021- 7 along with Exhibit " A", the Proposal Memorandum of Understanding. Please let me know if you have any questions or need additional information. Sincerely, t .-' -.. / 2--- 2- 34......-- 4-..--- 1 Kim M. Barnes, MMC City Clerk cc: Michael Beedie, City Manager( via email mbeedie(a fwb.org) Hayward Dykes, City Attorney( via email hdykes@handfirm. com)