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Sparks accepts two opioid settlement packages totaling about $119,740 for city use on public-health related expenses
Summary
Council approved participation in a Purdue Pharma settlement with the city's anticipated share at $103,763.49 and a group of eight manufacturer settlements with a combined Sparks share of $15,976.97; funds must be used for opioid-related public health and safety purposes.
The Sparks City Council unanimously authorized the city to participate in two sets of opioid-related settlement agreements on Aug. 11, with combined anticipated city receipts of about $119,740 to be distributed over varying installment schedules.
The larger settlement is with Purdue Pharma and the Sackler family. Staff advised the council the city’s anticipated share is approximately $103,763.49, to be paid over 10 years; the city’s net amount reflects reductions for attorney fees. The council voted to authorize the city manager to sign the required settlement participation form. Councilmember Anderson moved approval; Councilmember Abbott seconded, and the motion carried unanimously.
Council also approved participation in eight smaller manufacturer settlements (Alvogen; Amneal; Apotex; Hikma; Endo/Indivior; Mylan; Sun; and Zydus) for which the city’s combined anticipated share is approximately $15,976.97, to be paid in varying installments. Councilmember Bybee moved approval; Councilmember Rodriguez seconded, and the motion carried unanimously.
City staff and outside counsel noted that each settlement carries usage restrictions. Brandon (staff) told the council the funds should be spent on public-health and safety efforts tied to opioid impacts—examples cited included medical, police and fire responses—and that the settlements cannot be used for unrelated projects.
“Unfortunately, we can't use it to build our new stadium,” Brandon said, using a short example to illustrate restricted uses. Councilmember Anderson asked for clarification about allowable uses; Brandon said he had worked with finance and the attorney general's office to outline eligible categories and that the guidance follows precedent from tobacco litigation.
Action details
- Motion (9.1): Approve participation in settlement AC6138 (Purdue Pharma/Sackler family). Mover: Councilmember Anderson. Second: Councilmember Abbott. Outcome: approved unanimously (yes: 7). - Motion (9.2): Approve participation in settlements AC6139–AC6146 (manufacturers Alvogen, Amneal, Apotex, Hikma, Indivior, Mylan, Sun, Zydus). Mover: Councilmember Bybee. Second: Councilmember Rodriguez. Outcome: approved unanimously (yes: 7).
Why it matters
The settlements provide the city a modest but restricted pool of funds to address public-health, safety or other opioid-related needs in Sparks. Staff emphasized the funds must be used for opioid-related remediation and cannot be applied to unrelated capital projects.
