City of Sacramento
City Council - 2PM Report
915 I Street Sacramento, CA 95814
www.cityofsacramento.org
File ID: 2025-00254 1/14/2025 Consent Item 8.
Multi-Year Operating Project (MYOP): National Opioid Settlement Funding File ID: 2025-00254
Location: Citywide
Recommendation: Adopt a Resolution authorizing the City Manager or the City Manager’s designee to: 1) rename the previously approved Fire National Opioid Settlement Multi-Year Operating Project (I12000300) to the Opioid Settlement - Abatement Project (I12000300) to be used for the Abatement portion; and 2) establish the Opioid Settlement - Subdivision Project (I1200400) to be used for the Subdivision portion; 3) establish the expenditure and revenue budgets in the Externally Funded Programs Fund (Fund 2703) for I1200400; and 4) adjust the revenue and expenditure budgets of I1200300 and I12000400 to reflect actual settlement amounts received.
Contact: Masoumeh Ramazani, Administrative Officer, (916) 808-8065, [email protected], Fire Department
Presenter: None
Attachments:
1-Description/Analysis
2-Resolution
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 manufacturer 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.
On June 27, 2023, the Council approved resolution 2023-0223 under File ID: 2023-00821, accepted Janssen and Distributors Settlement Funds through 2038 under National Opioid Funding.
File ID: 2025-00254 1/14/2025 Consent Item 8.
This request is to rename the Fire National Opioid Settlement Project, previously approved for both Abatement and Subdivision, to being used for Abatement only (I12000300) and to establish a separate project for Subdivision (I12000400) to track expenditures and revenue received for Subdivisions separately.
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 is recommending the renaming of one combined Multi-Year Operating project into two separate projects for the Fire Department based on settlement amounts received to assist with the management and reporting required as a Participating Subdivision receiving the Opioid Settlement funds.
Financial Considerations: This report recommends renaming the Fire National Opioid Settlement Project (I1200300) to the Opioid Settlement - Abatement Project and the establishment of the Opioid Settlement - Subdivision Project (I12000400) along with the revenue and expenditure budgets in the Externally 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 January 14, 2025 Page 1 of 2
RESOLUTION NO.
Adopted by the Sacramento City Council
January 14, 2025
ESTABLISHMENT OF EXTERNALLY FUND PROGRAM RELATED TO OPIOID SETTLEMENT FUNDING FOR THE FIRE DEPARTMENT (I12000400) AND A CONVERSION IN TITLE FOR (I12000300)
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 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.
C. On June 27, 2023 Council approved Resolution 2023-0223 under File ID:2023-00821 accepted Janssen and Distributors Settlement Funds through 2038 under National Opioid Funding. The resolution established the Fire National Opioid Settlement Multi- Year Operating Project (I12000300), and revenue and expenditure budgets for I12000300.
BASED ON THE FACTS SET FORTH IN THE BACKGROUND, THE CITY COUNCIL RESOLVES AS FOLLOWS:
SECTION 1.
Rename the Fire National Opioid Settlement Multi-Year Operating Project (I12000300), which was previously approved for both Abatement and Subdivision, to the Opioid Settlement – Abatement Project (I12000300) to be used for Abatement only.
SECTION 2.
Resolution January 14, 2025 Page 2 of 2
The City Manager or City Manager’s designee is authorized to establish the Opioid Settlement - Subdivision Project (I12000400) to be used for the Subdivision portion only.
SECTION 3.
The City Manager or City Manager’s designee is authorized to establish expenditure and revenue budgets in the Opioid Settlement – Subdivision Project (I1200400) 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 I1200300 and I12000400 to reflect actual settlements funds received.