Staff Report
City Council
Item No. 5.C
Meeting Date: June 10, 2026
From: Rick Sanchez, Police Chief
Title: National Opioid Settlement Funds
RECOMMENDATION:
City Council approve a new Special Revenue Fund for the dedicated use of the National Opioid Settlement Funds to create a comprehensive opioid response program/strategy.
BACKGROUND:
In 2022, a landmark national settlement exceeding $50 billion was reached with major pharmaceutical distributors, manufacturers, and pharmacy chains in response to the opioid epidemic. As of May 2026, seven (7) settlements with various classes of defendants have been finalized and their associated funds are in the process of being disbursed. These funds are being distributed to state, local, and tribal governments to address the ongoing impacts of opioid addiction. These funds must be utilized in accordance with guidelines focused on treatment, intervention, prevention, and education related to opioid use disorder.
The national settlement agreement spans a 17-year distribution period, and further funding is expected as additional pharmaceutical companies and distributors participate as defendants in the settlements and existing defendants continue to fulfill their financial obligations. While the future allocations are currently unknown, this extended funding horizon provides the city with an opportunity to implement sustainable, long-term strategies to address opioid addiction through treatment, intervention, and prevention efforts.
At the onset of the National Opioid Settlement, the Cathedral City Police Department opted not to immediately utilize the funds for two primary reasons. First, the total amount of the settlement and Cathedral City’s allocation was initially unclear. Second, the settlement includes specific requirements that emphasize education, intervention, and treatment as the primary objectives for fund usage. With the establishment of the Clinical Behavioral Assessment Team (CBAT), the Department is now well-positioned to meet these requirements by not only intervening but also connecting individuals suffering from opioid addiction with appropriate treatment resources through our partnership with Riverside University Health System (RUHS).
In Riverside County, opioid-related overdoses and deaths have increased dramatically over the past decade. Between 2015 and 2020, the county experienced a 106% increase in drug- induced fatalities. In 2021 alone, 61% of the county’s 805 overdose deaths involved opioids.
Hospitals treated more than 1,240 opioid overdose patients.
Locally, the opioid-related death rate in Cathedral City exceeded the California state average by approximately 125%. In 2022, Riverside County recorded 564 opioid-related overdose deaths and nearly 1,300 emergency department visits.
Fentanyl has emerged as the primary driver, with hundreds of related fatalities annually and an increasing number of criminal cases tied to fentanyl poisonings.
DISCUSSION:
The opioid crisis continues to have a significant impact on both the regional and local level.
Law enforcement officers are often the first to respond to overdoses, substance use-related behavioral health crises, and associated public safety incidents. Without appropriate intervention resources, these encounters frequently result in repeated calls for service, incarceration, or emergency medical treatment without long-term resolution.
The proposed use of opioid settlement funds allows the Cathedral City Police Department (CCPD) to transition from a reactive enforcement model to a proactive, treatment-oriented response, consistent with state guidance and public health best practices.
CCPD proposes utilizing these funds to support a sworn officer position for the Clinical Behavioral Assessment Team (CBAT). This position will serve as a critical component of the City’s opioid response strategy in:
Implementing department-wide opioid-related Crisis Intervention Training (CIT) for all sworn personnel
Supporting opioid-related intervention, post-overdose response, and treatment linkage efforts
Developing partnerships with local behavioral health and treatment providers to expand access to recovery services for opioid related misuse, abuse, addiction, disorder (“Opioid Use Disorders” or “OUD”), and related effects.
The CBAT model pairs law enforcement personnel with behavioral health resources to address substance use disorders and mental health crises in real time. This approach is widely recognized as a best practice, improving outcomes while reducing recidivism and strain on emergency services. The CBAT Officer will:
Provide field-based behavioral health assessments during opioid-related incidents Identify individuals suffering from severe OUD who may qualify for intervention under Senate Bill (SB) 43, the Lanterman-Petris-Short (LPS) Act for Gravely Disabled, to include severe substance use disorders.
Coordinate with behavioral health providers to facilitate treatment referrals and stabilization services for persons experiencing OUDs and related effects. Divert individuals experiencing OUDs from arrest or repeated emergency response toward long-term recovery resources.
Conduct post-overdose outreach to persons experiencing OUDs or related effects within 24–72 hours to reduce the likelihood of repeat overdoses. Reduce repeat calls for service involving untreated OUD addiction and behavioral health crises
This approach ensures OUD-related incidents are addressed through a public health- informed framework, aligning with evolving state policy. We will also work with Palm Springs Unified School District to provide education and diversion to our local schools.
Alignment with SB 43
California Senate Bill 43 expands the definition of “gravely disabled” to include individuals suffering from severe substance use disorders who are unable to provide for their basic needs. With mandatory implementation in 2026, law enforcement agencies will play a critical role in identifying eligible individuals and coordinating intervention efforts. SB 43 is in alignment with approved uses of the opioid settlement funds, including funding of officer- based prevention strategies and support for treatment and recovery courts.
The CBAT model positions CCPD to effectively support this mandate while improving outcomes for individuals in crisis.
Compliance with Settlement Requirements
The proposed expenditures consist of a dedicated staff member, materials and supplies, training, and dedicated equipment, e.g., vehicle, for opioid remediation activities. These expenditures are fully consistent with allowable uses under the National Opioid Settlement Agreement in meeting these goals:
Treatment and recovery support for OUDs and related effects OUD harm reduction strategies
OUD prevention and education
Linkage to OUD care and post-overdose response
These funds will not and cannot be used for traditional enforcement purposes, but rather to support OUDs and related effects intervention, diversion, and recovery-focused initiatives.
In addition, the dedicated staff member is in addition (and does nor supplant) the current staff.
IMPLEMENTATION:
If approved by the City Council, the Cathedral City Police Department (CCPD) will immediately begin utilizing opioid settlement funds to support the CBAT officer position, with funding commencing in July 2026.
During the first year of implementation, CCPD will also provide department-wide Crisis Intervention Training (CIT) to all sworn personnel regarding OUDs and related effects. Given that a significant majority of overdose deaths in the region involve opioids, it is critical that officers possess the specialized skills necessary to safely and effectively manage these incidents.
Department-wide CIT will:
Improve officers’ ability to recognize the signs and symptoms of opioid intoxication, withdrawal, overdose, OUDs overall, and the related effects of opioid misuse Enhance de-escalation techniques during OUD-related behavioral health crises Support identification of persons experiencing OUDs or related effects who may qualify for intervention under SB 43
Increase successful linkage to treatment, recovery, and support services for OUDs and their related effects
This training ensures that officers responding to opioid-related incidents are equipped to act as effective partners within the broader behavioral health system.
During the second and third years of implementation, CCPD will continue to utilize settlement funds to sustain the CBAT officer position. In addition, the department will pursue partnerships with local rehabilitation providers to secure treatment placement opportunities, further expanding diversion options for persons struggling with OUDs and their related effects, and reducing reliance on the criminal justice system.
MEASUREMENT:
CCPD will implement both activity-based and outcome-based performance measures to evaluate program effectiveness. Performance metrics Include:
Number of individuals contacted and assessed
Number of treatment referrals made
Number of post-overdose follow-ups conducted
Reduction in repeat overdose-related calls for service Reduction in opioid-related arrests where diversion is appropriate Collaboration outcomes with Riverside University Health System (RUHS) and other providers
Monthly reports will be compiled and submitted to the Chief of Police and included in the City Manager’s Weekly Update. Annual reporting will be provided to City Council to ensure transparency, accountability, and program evaluation.
FISCAL IMPACT:
The proposed program will be established as a special revenue fund (2XX) for the National Opioid Settlement Fund. This fund will be separate and distinct and will not be commingled with the General Fund (100).
Utilizing these funds for intervention and treatment-focused strategies is expected to reduce long-term costs associated with:
Repeated emergency responses for OUDs and related effects Incarceration for OUDs and related effects
Emergency medical services utilization for OUDs and related effects In the first three years of receiving these funds (as of June 30, 2025), the City of Cathedral City has received $547,147.80. It is incumbent upon the City to start using these funds in the fifth year (FY 2026/2027), otherwise the funds are subject to forfeiture. The FY 2026-2027 proposed budget is provided below. Note – When the appropriate type of vehicle is identified to meet the needs for this position, the request for purchase will then be presented to City Council for final approval.
DESCRIPTION GENERAL LEDGER
ACCOUNT CODES
PROJECT
CODE
AMOUNT ONE TIME or
ONGOING
2026-
2027 Salaries/Benefit 2XX-900-910-
911-80XX-80XX N/A 175,000 Ongoing
2026-
2027
Materials
&Supplies
2XX-900-910-
911-8200-82XX N/A 5,000 Ongoing
2026-
2027
Fleet
Maintenance &
Operations
2XX-900-910-
911-8400-84XX N/A 15,000 Ongoing
2026-
2027 Training
2XX-900-910-
911-8700-87XX N/A 10,000 Ongoing
2026-
2027
Equipment
(Vehicle)
2XX-900-910-
911-9800-9801 N/A 80,000 One Time
2026-
2027
Equipment
(Vehicle)
611-900-910-
911-7400-74XX N/A (80,000) One Time
2026-
2027
Equipment
(Vehicle)
611-000-000-
000-8800-8807 N/A 80,000 One Time
2026-
2027 Total $285,000
The proposed use of National Opioid Settlement Funds represents a strategic investment in a more effective, sustainable response to the opioid crisis. By prioritizing treatment, intervention, and recovery, the City of Cathedral City will improve public safety outcomes, reduce repeat emergency calls, and better serve individuals suffering from OUDs and their related effects.
FIVE-YEAR STRATEGIC PLAN:
This program supports the City’s Strategic Goals:
D – Innovation
E – Safety