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Los Gatos votes to opt into Purdue Pharma settlement; staff to evaluate local uses
Summary
The Town Council unanimously authorized staff to enter the state subdivision settlement for the Purdue Pharma bankruptcy, choosing to accept the town’s share (estimated comparably to prior settlements) and directing staff to assess eligible local uses and administrative requirements.
The Town of Los Gatos council voted unanimously on Sept. 2 to participate in the Purdue Pharma bankruptcy settlement and accept the town’s share of settlement proceeds rather than assigning the town’s allotment to Santa Clara County.
Town staff explained that the ultimate payment to the town depends on the number of jurisdictions that opt in; staff suggested the town’s dollar amounts could be similar to prior pharmaceutical settlements (the staff report cited an illustrative figure of roughly $128,000 over five years, provided as a comparative reference). The council discussed allowable uses, reporting obligations and whether to partner with county-run programs or third-party nonprofits to deliver services.
Council member comments emphasized program choices over spending: some members recommended using funds to expand crisis-response and behavioral-health options (for example, non-law-enforcement crisis teams or psychiatric emergency response partners), while others stressed the need to confirm eligibility with the settlement administrator before committing funds. Staff noted allowable uses include certain harm-reduction, prevention, treatment and diversion activities and that staff will consult the settlement administrator to confirm eligibility for specific programs and return with recommendations.
The motion to authorize the town manager to execute the state subdivision agreement and accept funds passed unanimously. Council directed staff to return with options and an implementation plan.
What happens next: Staff will confirm eligible uses with the settlement administrator, evaluate administrative burden, and present recommendations to council on program partners and spending plans.
