Item Number: 21
City Council / Board of Directors
Written Communications
Meeting of: June 16, 2026
Submitted By:
Tony Camargo, Deputy City Manager
Subject:
National Opioid Settlement Agreements
Recommendation:
That the Honorable City Council:
(1) Adopt Resolution No. 26-059, amending the annual budget for Fiscal Year 2025- 2026; approving an increase in revenue and expenditures related to the National Opioids Settlement Agreements; and
(2) Authorize the City Manager to use all Opioid Settlement Fund Disbursements, including future funds, in accordance with the List of Opioid Remediation Uses provided in the Opioid Settlements.
Fiscal Impact:
Adopting Resolution No. 26-059 will increase the City’s Fiscal Year 2025-2026 revenue budget by $243,770 (2654020-47415-42006) and increase the expense appropriations by $243,770 (2654020-52300-42006). This includes $78,403.28 in funding received this Fiscal Year, as well as funding received but not budgeted in prior years. All future Opioid Settlement Fund Disbursements will be used in accordance with the List of Opioid Remediation Uses.
Strategic Plan Goal:
This item aligns with Goal D, Reduce Homelessness, focusing on implementing effective solutions to reduce homelessness.
Background:
On December 7, 2021, a Closed Session item was presented to the City Council relating to the National Prescription Opiate Litigation Settlements with opioid manufacturer Janssen Pharmaceuticals (parent company of Johnson & Johnson) and the “big three” distributors, McKesson, AmerisourceBergen, and Cardinal Health (“the Distributors”) and authorized the City Manager as the City’s authorized representative to take all reasonable 4 7
5 3
and necessary actions related to the settlements. Since the initial settlements with Janssen and Distributors, additional National Opioid Settlements have been reached with Teva, Allergan, Walmart, CVS, Walgreens, Kroger, Purdue/Sacklers, and Remnant Defendants, which the City has elected to participate in. The National Opioid Settlement Agreements will provide substantial funds to states and eligible local governments for the abatement of the opioid epidemic across the country. The settlement totals approximately $53 billion ($21 billion from the Distributors, $27 billion from Teva, Allergan, Walmart, CVS, Walgreens, Kroger, Purdue/Sacklers, and Remnant Defendants and $5 billion from Janssen Pharmaceuticals). Funds from each settlement will be distributed to the City for a period of up to 18 years.
The National Opioid Settlements will be distributed as follows:
Distributors will pay a maximum of $21 billion over 18 years; Teva to pay up to $3.34 billion over 13 years and to provide either $1.2 billion of its generic version of the drug Narcan over 10 years or $240 million of cash in lieu of product, as each state may elect;
Allergan to pay up to $2.02 billion over 7 years;
Walmart to pay up to $2.74 billion with all payments to be made within 6 years; CVS to pay up to $4.90 billion over 10 years;
Walgreens to pay up to $5.52 billion over 15 years;
Kroger to pay up to $1.37 billion over 11 years;
Purdue/Sacklers to pay up to $7.4 billion over 15 years; Remnant Defendants to pay a one-time, lump-sum settlement of $97 million; and Janssen will pay a maximum of $5 billion over no more than nine years.
Discussion:
Thus far, the City has received $344,567.04 from the National Opioid Settlements. These settlement funds are restricted on how they can be expended and must align with the List of Opioid Remediation Uses shown in Attachment B. The City has expended $9,881.30 of the settlement funds on Naloxone to allow staff the ability to assist with a medical emergency of an opioid overdose, should one occur. Certain employees in Code Compliance, Animal Services, Community Services, Water, Public Works, and Planning are participating in the voluntary program and have completed the City’s mandatory training. Additionally, the City has expended $29,681.85 on Interactive Journaling for the Wellness Center, which provides additional training for Wellness Center and City staff.
Trainings included topics such as resilience, motivational interviewing, Cognitive- Behavioral Therapy (CBT), transtheoretical behavioral change, integrity, fidelity, skill enhancement, trauma-informed care, and interactive journaling. This has allowed staff to provide evidence-based psychoeducational and counseling services for Wellness Center Campus clients.
After reviewing the qualified opioid remediation uses from the Opioid Settlements, staff recommends that the funds should be used for the following:
4 7
5 3
1. Additional training for Wellness Center and City staff, including opioid overdose first aid and life-saving CPR/First Aid/AED training.
2. Naloxone or other FDA-approved drugs to reverse opioid overdoses.
3. Comprehensive wraparound services to individuals in recovery, including housing, transportation, and job placement/training at both the Wellness Center and through community outreach. Support the shelter and wraparound services at the Wellness Center and the City’s outreach services related to opioid remediation uses.
4. Providing awareness of the opioid crisis through potential campaigns.
5. Any other expenditures in accordance with the List of Remediation Uses.
Staff anticipates the continued need for substance abuse services at the Wellness Center and through community outreach. Evidence-based psychoeducation, awareness, staff training, and wraparound services already exist at the Wellness Center. Enhancing the wraparound services will help support the wellness of those individuals in need and address the opioid crisis by improving staff’s ability to provide impactful and appropriate services. This will also broaden the scope of recovery services to solidify a heightened approach that would best benefit the client.
Therefore, staff recommends that the Honorable City Council adopt Resolution No. 26- 059 amending the Fiscal Year 2025-2026 budget and authorize the City Manager to use all Opioid Settlement Fund Disbursements, including future funds, in accordance with the List of Opioid Remediation Uses provided in the Opioid Settlements.
Staff remains available for any questions or comments the Council may have.
Prepared By:
Darcy Mahoney-Henson, Administrative Analyst
Attachments: A. Resolution No. 26-059
B. List of Opioid Remediation Uses