For City Council Meeting [November 15, 2022]
TO: Honorable Mayor and City Council
APPROVAL: Marcus Fuller, City Manager
FROM: Tanya Williams, Assistant to the City Manager
Title
Request City Council to: (1) Approve an Agreement for the Local Use of Local Allocation of California Opioid Settlement Funds executed between the County of San Bernardino and the City of Rialto; (2) Authorize the City Attorney to Make Minor Changes to the Agreement Related to the Year 1 Settlement Fund Disbursement to the City of Rialto in the Amount of $40,319.75; (3) Authorize the City Manager to Execute All Documents and Redirect the Year 1 Settlement Fund Disbursement to San Bernardino County.
Body
BACKGROUND
On November 16, 2021, the San Bernardino County Board of Supervisors (Board) approved San Bernardino County's participation in a nationwide settlement with opioid distributors McKesson Corporation, Cardinal Health, Inc., AmerisourceBergen Corporation, and opioid manufacturers Johnson & Johnson, Janssen Pharmaceuticals, Inc., and Ortho-McNeil-Janssen Pharmaceuticals, Inc., (all collectively, "Settling Defendants"). On that same date, the Board also authorized the County to enter into a State Subdivision Agreement ("State Allocation Agreement") with the State of California regarding the distribution and use of the funds from the settlements. Under the terms of the two settlements, cities and towns with populations exceeding 10,000 ("Local Subdivision(s)") are permitted to participate in the settlements even if they had not filed a lawsuit against the Settling Defendants.
Under the State Allocation Agreement, a Local Subdivision's (City's) share of the settlement money will be distributed by the settlement administrator to the county where the Local Subdivision is located unless, at least 60 days prior to a payment date, the Local Subdivision notifies the settlement administrator that it would like a direct distribution of its share of the settlement funds. Several Local Subdivisions in San Bernardino County have indicated that they will not be taking a direct distribution of their share of the settlement money and have asked that the County enter into an allocation agreement with them to formalize the arrangement and to ensure the funds are used in accordance with the terms of the settlement agreements.
ANALYSIS/DISCUSSION
The County Department of Behavioral Health (DBH) will be overseeing the use of the settlement funds on behalf of the County. Approval of the Agreement formalizes the arrangement between the County and the City relating to the distribution and use of the City's share of the settlement funds. Under the agreement, the City agrees that it will not elect to take a direct distribution of its share of the settlement money. In exchange, the County agrees that it will use the City's share of the settlement money for opioid abatement purposes in accordance with the terms of the settlement agreements and State Allocation Agreement and be responsible for all administrative obligations under those agreements.
The City anticipates receiving $40,319.75 from the opioid settlement. In close partnership with DMH, the City and County have identified a propose use of these funds. Currently, DBH operates a Substance Use Disorder (SUD) outpatient program for adults with co-occurring conditions at the Rialto Clinic (located at 805 E. Foothill Blvd). It is recommended that the SUD outpatient program be expanded to serve adolescents (ages 12-17 years). Inclusion of this age population at this location would require the addition of one full time Alcohol and Drug Counselor. The City of Rialto’s portion of the settlement would be used to support the annual salary for this position. The addition of outpatient programs to serve adolescents fills an important gap in service as only those SUD clinics in San Bernardino and Ontario provide the same service. All outpatient services offered to this expanded age population are also Drug Medi-Cal reimbursable services.
Through this partnership with San Bernadino County DBH, the City of Rialto can better leverage the opioid settlement funds to better meet the Network Adequacy needs of the community and make a greater impact.
ENVIRONMENTAL IMPACT
The proposed actions do not constitute a “project” as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(b) of the State CEQA Guidelines, a project does not include organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
GENERAL PLAN CONSISTENCY
This action is consistent with Guiding Principle 3A of the General Plan:
Our City government will lead by example, and will operate in an open, transparent, and responsive manner that meets the needs of the citizens and is a good place to do business.
LEGAL REVIEW
The City Attorney has reviewed and supports this staff report
FINANCIAL IMPACT
Operating Budget Impact
There is no fiscal impact for the City’s allocation of funds toward the County’s program. The annual disbursement allocated to the City of $40,319.75 will help fund the County’s program to benefit the City. This action will authorize the City Manager to redirect the Year 1 disbursement to San Bernardino County, and pursuant to the Agreement, thereafter all annual disbursements will automatically be transmitted to San Bernardino County.
Capital Improvement Budget Impact
No Impact.
Licensing
Not required for this action.
RECOMMENDATION
Staff recommends the City Council to:
(1) Approve an Agreement for the Local Use of Local Allocation of California Opioid Settlement Funds executed between the County of San Bernardino and the City of Rialto;
(2) Authorize the City Attorney to Make Minor Changes to the Agreement Related to the Year 1 Settlement Fund Disbursement to the City of Rialto in the Amount of $40,319.75; and
(3) Authorize the City Manager to Execute All Documents and Redirect the Year 1 Settlement Fund Disbursement to San Bernardino County