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Waynesboro opts into opioid settlement agreements; council approves three resolutions
Summary
Council approved three resolutions authorizing the city to accept settlement funds from opioid-related national settlements, including Purdue Pharma and a grouped manufacturers settlement; staff explained the distribution mechanics and the city's projected shares.
Waynesboro City Council on July 28 approved three resolutions authorizing the city to accept opioid-settlement proceeds from separate settlements, including a Purdue Pharma bankruptcy settlement and a manufacturers settlement.
City attorney/presenting staff member Miss Michaelson briefed council on three categories of settlements: a smaller distributor settlement (Henry Schein Inc., described in the meeting as $416,000 in total nationwide), the Purdue Pharma bankruptcy settlement (identified by staff as $6.5 billion nationwide, with payments over 15–16 years), and a grouped-manufacturers proposed settlement (described as $16.4 million). Michaelson said Virginia’s allocation from the Purdue settlement could be up to $104 million; under the allocation approach discussed in the meeting, Virginia would direct about 65% of its share to the newly created Virginia Opioid Authority and distribute the remaining roughly 35% directly to localities. Michaelson said Waynesboro’s share was estimated at 0.363% of the local-distribution calculations and provided illustrative local estimates: about $144,000 from the Purdue allocation and about $2,023,000 from the manufacturers settlement (figures provided by staff and described as theoretical examples tied to statewide allocation formulas).
Michaelson said settlement funds are restricted to opioid-abatement purposes; she recommended council approve the three resolutions together. Council approved the resolutions on a voice vote recorded as 4–0. Council members asked for additional detail on the Virginia Opioid Authority’s staffing and distribution process; staff said the authority had been established in state code and that further information could be provided by email.
Council members discussed that some settlement dollars will come directly to localities while a portion will be directed to the state authority; localities could later decide whether to pool local shares regionally for programmatic use or to use them independently for local opioid-abatement programs.
