City of Sacramento
City Council - 5PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2023-00821 6/27/2023 Consent Item 6.
Multi-Year Operating Project (MYOP): National Opioid Settlement Funding File ID: 2023-00821
Location: Citywide
Recommendation: Adopt a Resolution authorizing the City Manager or the City Manager’s designee to: 1) accept Janssen and Distributors Settlement Funds through 2038; 2) establish the Fire National Opioid Settlement Project (I12000200) for the Fire Department and the DCR National Opioid Settlement Project (I23005000) for the Department of Community Response; and 3) establish the revenue and expenditure budgets in the Externally Funded Programs Fund (Fund 2703) for I12000200 and I23005000 based on settlement amounts received.
Contact: Allison Narramore, Administrative Officer, 916-808-8065, [email protected], Sacramento Fire Department; Jason Beckstrom, Program Specialist, 916-808-5709, [email protected], Department of Community Response Presenter: None
Attachments:
1-Description/Analysis
2-Resolution
Additional Description/Analysis
Issue Detail: California joined a multiple national lawsuit against manufacturers, distributors and other entities responsible for aiding the opioid epidemic. On July 21, 2021, a $26 billion offer to settle was made by opioid manufacture Janssen Pharmaceuticals (parent company of Johnson & Johnson) and the “big three” distributors, McKesson, AmerisouceBergen and Cardinal Health (“the Distributors”) to resolve their liabilities in over 3,000 opioid crisis-related lawsuits nationwide. It is estimated that California will receive approximately $2.05 billion from the Janssen and Distributors Settlement Agreement through 2038. The City of Sacramento joined in as a “Participating Subdivision” among many other Cities and Counties throughout the state.
The Department of Health Care Services (DHCS) is providing oversight and administration of the Opioid Settlement funds for the State of California. DHCS oversight includes, but is not limited to, conducting related stakeholder engagement, monitoring the Participating Subdivisions for
File ID: 2023-00821 6/27/2023 Consent Item 6.
Compliance and preparing annual reports. As part of the oversight and administration of the settlement funds, DHCS has created a list of allowable and required opioid remediation activities which are in line with the Janssen and Distributors Settlement Agreements.
The Fire Department is partnering with the Department of Community Response (DCR) to provide resources to our community by providing opioid remediation, reduction or lessening the effects of the opioid epidemic in our community which could include prevention, intervention, harm reduction, and resources to recovery services. DHCS has provided a list of allowable expenditures for Participating Subdivision to use the settlement funding. This includes two sections:
· Section 1: High Impact Abatement Areas
· Section 2: List of Opioid Remediations Uses
The Fire Department and DCR will establish a Memorandum of Understanding (MOU) to ensure all aspects of settlement funds are tracked, expenses are allowable and all necessary reporting is complete. Annually, Fire and DCR will review funding, program costs to determine how funding will be split and what projects will be accomplished each year within the allowable expenditure categories.
Policy Considerations: The recommendations in this report are in accordance with the provisions of City Code Section 3.04.
Economic Impacts: None.
Environmental Considerations: Not applicable.
Sustainability: Not applicable.
Commission/Committee Action: Not applicable.
Rationale for Recommendation: The Fire Department, in partnership with the Department of Community Response (DCR), is recommending the establishment of two Multi-Year Operating Projects for the Fire Department and DCR based on settlement amounts received to assist with the management and reporting required as a Participating Subdivision receiving the Opioid Settlement funds. Fire Department and Department of Community Response are working together to identify possible projects and activities related to the opioid settlement funds that are within in the allowable expense categories.
Financial Considerations: This report recommends the establishment of the Fire National Opioid Settlement Project (I12000200) for the Fire Department and the DCR National Opioid Settlement Project (I23005000) for DCR along with the revenue and expenditure budgets in the Externally
File ID: 2023-00821 6/27/2023 Consent Item 6.
Funded Programs Fund (Fund 2703) related to Opioid Settlement Funds and adjust revenue and expenditure budgets based on settlement funding received.
Local Business Enterprise (LBE): Not applicable.
RESOLUTION NO.
Adopted by the Sacramento City Council
June 27, 2023
ESTABLISHMENT OF EXTERNALLY FUND PROGRAMS RELATED TO
OPIOID SETTLEMENT FUNDING FOR THE FIRE DEPARTMENT
(I12000200) AND DEPARTMENT OF COMMUNITY RESPONSE
(I23005000)
BACKGROUND
A. California joined a multiple national lawsuit against manufacturers, distributors and other entities responsible for aiding the opioid epidemic.
B. On July 21, 2021, a $26 billion offer to settle was made by opioid manufacture Janssen Pharmaceuticals (parent company of Johnson & Johnson) and the “big three” distributors, McKesson, AmerisouceBergen and Cardinal Health (“the Distributors”) to resolve th eir liabilities in over 3,000 opioid crisis -related lawsuits nationwide. It is estimated that California will receive approximately $2.05 billion from the Janssen and Distributors Settlement Agreement through 2038.The City of Sacramento joined in as a “Participating Subdivision” among many other Cities and Counties throughout the state.
C. The Department of Health Care Services (DHCS) is providing oversight and administration of the Opioid Settlement funds for the State of California. DHCS oversight inclu des, but is not limited to, conducting related stakeholder engagement, monitoring the Participating Subdivisions for Compliance and preparing annual reports.
D. The Fire Department is partnering with the Department of Community Response (DCR) to provide reso urces to our community by providing opioid remediation, reduction or lessening the effects of the opioid epidemic in our community which could include prevention, intervention, harm reduction, and resources to recovery services.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
Section 1. The City Manager or City Manager’s designee is authorized to establish the Fire National Opioid Settlement Multi-Year Operating Project (I12000200) for the Fire Department Opioid Settlement Funding.
Section 2. The City Manager or City Manager’s designee is authorized to establish the DCR National Opioid Settlement Multi-Year Operating Project (I23005000) for the Department of Community Response Opioid Settlement Funding.
Section 3. The City Manager or City Manager’s designee is authorized to establish expenditure and r evenue budget s in I12000200 and I23005000 in the Externally Funded Programs Fund (Fund 2703).
Section 4. The City Manager or City Manager’s designee is authorized to adjust the revenue and expenditure budgets of I12000200 and I23005000 to reflect actual settlements funds received.