Minutes - 12/14/2021

DECEMBER 14 2021, FIFTIETH MEETING OF THE WOODBURY COUNTY BOARD OF SUPERVISORS

The Board of Supervisors met on Tuesday, December 14, 2021 at 4:30 p.m. Board members present were Taylor, Ung (by phone), De Witt, Radig, and Wright. Staff members present were Heather Satterwhite, Public Bidder, Dennis Butler, Budget Tax/Analyst, Joshua Widman, Assistant County Attorney, Melissa Thomas, Human Services Director, and Michelle Skaff, Deputy Auditor/Clerk to the Board.

The regular meeting was called to order with the Pledge of Allegiance to the Flag and a Moment of Silence.

There were no citizen concerns.

Motion by Radig second by De Witt to approve the agenda for December 14, 2021. Carried 5-0. Copy filed.

Motion by Radig second by Taylor to approve the following items by consent:

To approve minutes of the December 07, 2021 meeting. Copy filed.

To approve the claims totaling $1,005,564.72. Copy filed.

To approve the reclassification of Colin Ryan, Assistant County Engineer, Secondary Roads Dept., effective 12-27-21, $100,398/year, 3.25%=$3,160/year. Per Wage Plan Matrix, 6 month Salary Increase. Copy filed.

To approve Farm Cash Rent Lease with Rick Bousquet, Bousquet Dairy, Inc. Copy filed.

Carried 5-0.

Motion by Taylor second by Radig to approval and authorize the Chairperson to sign a Resolution Authorizing Woodbury County, Iowa to enter into Settlement Agreements with McKeeson Corporation, Cardinal Health, Inc., AmerisourceBergen Corporation, Johnson & Johnson, Janssen Pharmaceuticals, Inc., Ortho-McNeil-Janssen Pharmaceuticals, Inc., and Janssen Pharmaceutica, Inc.; and agree to the terms of the Iowa Opioid Allocation Memorandum of Understanding. Carried 5-0.

RESOLUTION #13,375

AUTHORIZING WOODBURY COUNTY, IOWA TO ENTER INTO SETTLEMENT AGREEMENTS WITH MCKESSON

CORPORATION, CARDINAL HEALTH, INC., AMERISOURCEBERGEN CORPORATION, JOHNSON & JOHNSON,

JANSSEN PHARMACEUTICALS, INC., ORTHO-MCNEIL-JANSSEN PHARMACEUTICALS, INC., AND JANSSEN

PHARMACEUTICA, INC.; AND AGREE TO THE TERMS OF THE IOWA OPIOID ALLOCATION MEMORANDUM OF

UNDERSTANDING.

WHEREAS, negotiations to settle claims against several of the Opioid Defendants, specifically McKesson Corporation, Cardinal Health, Inc., AmerisourceBergen Corporation, Johnson & Johnson, Janssen Pharmaceuticals, Inc., Ortho-McNeil-Janssen Pharmaceuticals, Inc., and Janssen Pharmaceutica, Inc. (the “Settling Defendants”) have been ongoing for several years;

WHEREAS, negotiations with the Settling Defendants have resulted in proposed nationwide settlements of state and local government claims involved in the Litigation;

WHEREAS, copies of the proposed terms of those proposed nationwide settlements have been set forth in the Distributors Master Settlement Agreement and the J&J Master Settlement Agreement (collectively “Settlement Agreements”);

WHEREAS, copies of the Settlement Agreements as well as summary of the main terms of the Settlement Agreements, the deadlines for submitting the Participation Agreements to the Settlement Agreements and the MDL Court’s Order setting deadlines for any Plaintiff who declines to enter into the Settlement Agreements have been provided to the County prior to the execution of this Resolution;

WHEREAS, the Settlement Agreements provide, among other things, for the payment of a certain sum to settling government entities in Iowa including to the State of Iowa and Participating Subdivisions, as that term is defined in the Settlement Agreements, upon occurrence of certain events as defined in the Settlement Agreements (“Iowa Opioid Funds”);

WHEREAS, the Law Firms have engaged in extensive discussions with the State Attorney General’s Office (“AGO”) as to how the Iowa Opioid Funds will be allocated, which has resulted in the proposed Iowa Opioid Allocation Memorandum of Understanding (“Allocation MOU”), which is an agreement between all of the entities who are signatories to the Allocation MOU;

WHEREAS, a copy of the Allocation MOU and the Exhibits to that MOU has been provided with this Resolution;

WHEREAS, the Allocation MOU divides Iowa Opioid Funds as follows: (i) 50% to the State (“the Iowa Abatement Share”) and (ii) 50% to Participating Local Governments (“LG Share”), less fees and costs allocated to the Iowa Backstop Fund as set forth in Section D of the Allocation MOU and in this Resolution (“LG Abatement Share”).

WHEREAS, the LG Abatement Share shall be distributed in direct payments to the Counties that are Participating Local Governments according to the allocation model developed in connection with the proposed negotiating class in the National Prescription Opiate Litigation (MDL No. 2804) in the amounts set forth on Exhibit 2 to the Allocation MOU (“Direct Distribution Percentage”). The Direct Distribution Percentage will be multiplied by the total LG Abatement Share to arrive at the total allocation to the Participating Local Government (the “Direct Distribution Amount”).

WHEREAS, 100% of the Iowa Abatement Share and the LG Abatement Share, regardless of allocation, shall be utilized only for Opioid Related Expenditures incurred after the Effective Date of this MOU. The list of approved Opioid Related Expenditures are set forth in Exhibit 1 to this MOU.

WHEREAS at least 75% of the Iowa Abatement Share and 75% of the LG Abatement Share shall be utilized for only the “Core Strategies” listed in Schedule A of Exhibit 1 to this MOU.

WHEREAS, every Participating Local Government that receives a Direct Distribution Amount shall create a separate fund on its financial books and records that is designated for the receipt and expenditure of the entity’s Direct Distribution Amount, called the “LG Abatement Fund” or something similar. Funds in an LG Abatement Fund shall not be commingled with any other money or funds of the Participating Local Government. A Participating Local Government may invest LG Abatement Fund funds consistent with the investment of other funds of a Participating Local Government.

WHEREAS, Funds in a LG Abatement Fund may be expended by a Participating Local Government only for Opioid Related Expenditures. For avoidance of doubt, funds in a LG Abatement Fund may not be expended for costs, disbursements or payments made or incurred prior to the Settlement.

WHEREAS, each LG Abatement Fund shall be subject to audit in a manner consistent with Code of Iowa §§331.402(2)(i) and 11.6. Any such audit shall be a financial and performance audit to ensure that the LG Abatement Fund disbursements are consistent with the terms of this MOU. If any such audit reveals an expenditure inconsistent with the terms of this MOU, the Participating Local Government shall immediately redirect the funds associated with the inconsistent expenditure to an Opioid Related Expenditure.

WHEREAS, the Settlement Agreements provide for the payment of attorney’s fees and legal expenses owed by States and Participating Local Governments to outside counsel retained for Opioid Litigation. To effectuate this, the Court in the MDL Litigation has established a fund to compensate attorneys representing plaintiffs in the Litigation (the “National Attorney’s Fee Fund”).

WHEREAS, the Law Firms intend to make application to the National Attorney Fee Fund. However, because there is still uncertainty regarding what counsel for litigating local governments will recover as compensation for the large volume of work done and the large out of pocket expense of the Litigation, and whereas the Parties to the Allocation MOU desire to fairly compensate outside counsel for the work done on behalf of the Participating Local Governments in Iowa, the Allocation MOU provides that a fund be created from 15 % of the LG Share attributable to the Participating Local Governments (“Iowa Backstop Fund”);

WHEREAS, the Iowa Backstop Fund is meant to compensate outside counsel for participating local governments only for amounts not recovered from the National Attorney’s Fee Fund attributable to their Iowa clients;

WHEREAS, to be eligible for the Iowa Backstop Fund, the Law Firms must first seek payment from the National Attorneys’ Fee Fund and may not recover amounts attributable to Counsel’s representation of the Litigating Counties received at the National Attorneys’ Fees Fund from the Iowa Backstop Fund;

WHEREAS, Woodbury County, by this Resolution, agrees to the creation of the Iowa Backstop Fund in the amount of 15% of the LG Share attributable to the Litigating Local Governments in order to fund a state-level “backstop” for payment of the fees, costs, and disbursements of the Law Firms;

WHEREAS, in no event shall the total of the amounts received by the Law Firms at the National Attorney’s Fee Fund related to the Litigating Counties and the amount received at the Iowa Backstop Fund exceed the amount the Law Firms would have been entitled to pursuant their fee contract with the Litigating Counties;

WHEREAS, Woodbury County, by this Resolution, shall establish an account for the receipt of the LG Abatement Share consistent with the terms of this Resolution (“the LG Abatement Fund”);

WHEREAS, Woodbury County’s LG Abatement Fund shall be separate from the County’s general fund, shall not be commingled with any other County funds, and shall be dedicated to funding opioid abatement measures as provided in the Settlement Agreements and the Allocation MOU;

WHEREAS, Woodbury County must comply annually with the reporting requirements in the Allocation MOU;

WHEREAS, if Woodbury County elects to become a Participating Subdivision in the Settlement Agreements it will receive the benefits associated with the Settlement Agreement and the Allocation MOU, provided the County (a) approves the Settlement Agreements; (b) executes the Participation Agreements stating the County intends to be bound by the Settlement Agreements; (3) approves the Allocation MOU; (4) executes the Acknowledgement and Agreement to be Bound to Memorandum of Understanding necessary to execute the Allocation MOU;

WHEREAS, the intent of this Resolution is to authorize Woodbury County to enter into the Settlement Agreements by executing the Participation Agreements and to enter into the Allocation MOU by executing the Acknowledgement and Agreement to be Bound to Memorandum of Understanding necessary to execute the Allocation MOU;

NOW, THEREFORE, BE IT RESOLVED: the Woodbury County Board of Supervisors hereby approves and authorizes PJ Jennings, Woodbury County Attorney, to settle and release the County’s claims against the Settling Defendants in exchange for the consideration set forth in the Settlement Agreements, Allocation MOU and all exhibits thereto, including taking the following measures:

1.             The execution of the Participation Agreement to the Distributors Settlement Agreement and any and all documents ancillary thereto.

2.             The execution of the Participation Agreement to the Janssen Settlement Agreement and any and all documents ancillary thereto.

3.             The execution of the Allocation MOU by executing the Acknowledgement and Agreement to be Bound to Memorandum of Understanding.

BE IT FURTHER RESOLVED: Woodbury County will establish an account separate and distinct from the County’s general fund which shall be titled “LG Abatement Fund”, or something similar, to receive the LG Abatement Share from the Settlement Agreements.

BE IT FURTHER RESOLVED that all actions heretofore taken by the Woodbury County Board of Supervisors and any other appropriate public officers and agents of the County with respect to the matters contemplated under this Resolution are hereby ratified, confirmed and approved.

Adopted by the Woodbury County Board of Supervisors this 14th day of December, 2021.

WOODBURY COUNTY BOARD OF SUPERVISORS

Copy filed.

A public hearing was held at 4:40 p.m. for Ordinance related to the Assessment of Wind Energy Conversion Property as Authorized by Iowa Code Chapter 427B.26. The Chairperson called on anyone wishing to be heard.

Motion by De Witt second by Taylor to receive document regarding the Utility Replacement Task Force. Carried 5-0. Copy filed.

Eric Nelson, Moville, addressed the Board with concerns regarding the Ordinance.

Motion by Taylor second by De Witt to close the public hearing. Carried 5-0.

Motion by Radig second by Wright to conduct the 2nd reading of the Ordinance for Wind Energy Conversion Property as Authorized by Iowa Code Chapter 427B.26. Carried 5-0. Copy filed.

The Board heard reports on committee meetings.

County Attorney Jennings addressed the Board regarding incentives for employees with COVID funds.

Eric Nelson, Moville, addressed the Board with concerns regarding road reclassifications.

Board concerns were heard.

he Board adjourned the regular meeting until December 21, 2021.

Meeting sign in sheet. Copy filed.