ADMINISTRATIVE REPORT
MEETING DATE: July 23, 2025 AGENDA CATEGORY: Consent - Agreements TO: Honorable Mayor and City Council
FROM: Jennifer M. Byers, Economic and Community Development Director DATE: July 8, 2025
SUBJECT: Contribution Agreement with Bakersfield American Indian Health Project (BAIHP) ($250,000) to provide match funds in support of application for Behavioral Health Continuum Infrastructure Program (BHCIP) Round 1 Bond funding
RECOMMENDATION:
Staff recommends approval of the agreement.
BACKGROUND:
On July 22, 2021, a settlement was announced in multi-district federal litigation based in Ohio against opioid manufacturers and distributors, totaling $26 billion. Although the City did not participate in the lawsuit, the City had the opportunity to receive settlement funds not to exceed $3.3 million.
In 2022, settlement agreements were announced with three pharmacy chains (CVS, Walgreens, and Walmart) and two manufacturers (Allergan and Teva), requiring all chains and manufacturers to pay $18.5 billion to cities, counties, and states over the course of 15 years.
The City received $1.56 million from the 2022 and 2023 National Opioid Settlement Agreements and desires to allocate these funds in accordance with the High Impact Abatement Strategies, Core Strategies, and Approved Uses, outlined by the California Department of Health Care Services (DHCS).
The Bakersfield American Indian Health Project (BAIHP) submitted an application for the Behavioral Health Continuum Infrastructure Program Bond 1 Grant (BHCIP) to establish a Behavioral and Mental Health Urgent Care, Community Wellness Center, Community Mental Health Clinic, and an Outpatient Treatment Center for substance use disorders in Kern County. The proposed project would create 25 outpatient slots and provide critical health care services to the underserved areas of Kern County.
In support of the BAIHP’s proposed project, the City committed to contribute $250,000 if awarded in opioid settlement funds to the project’s match requirement.
FISCAL IMPACT:
$250,000 in Opioid Settlement Funds
COUNCIL GOAL:
Community Character & Quality of Life
ATTACHMENTS:
Agreement
Letter of Support