TO: Honorable Mayor and Members of the City Council
THRU: Tom Kisela, City Manager
FROM: Sean deMetropolis, Fire Chief
1. Subject
title
Appropriation of $94,600 from the Opioid Settlement Fund for opioid remediation initiatives in Fiscal Year 2025.
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2. Summary
The Fire Department is requesting the appropriation of $94,600 from the National Opioid Settlement funds to support various opioid remediation activities in the City of Orange for Fiscal Year 2025.
3. Recommended Action
recommendation
Authorize the appropriation of $94,600 from the Opioid Settlement Fund (126) unreserved fund balance to:
126.3015.53510.30227 Paramedic Med Supplies - Opioid
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4. Fiscal Impact
Upon approval of this appropriation, the estimated Opioid Settlement Fund (126) fund balance on June 30, 2025, will be $497,941.
5. Strategic Plan Goals
Goal 1: Provide for a Safe Community
e. Develop and implement effective community outreach services and programs to promote public safety.
Goal 3: Enhance and Promote Quality of Life in the Community
e. Develop and strengthen collaborative partnerships to enhance and promote quality of life programs, projects, and services.
6. Discussion and Background
In 2022, California Attorney General Rob Bonta announced settlement agreements with opioid manufacturer Janssen Pharmaceuticals and Johnson & Johnson, along with distributors McKesson, Cardinal Health, and AmerisourceBergen. In 2023, he proposed multistate settlements with manufacturers Teva and Allergan, and pharmacies Walgreens, Walmart, and CVS. These settlements resolve over 3,000 opioid-related lawsuits from state and local governments nationwide, providing substantial financial resources to combat the opioid crisis in California.
California cities and counties are expected to receive up to $1.8 billion for substance use prevention, harm reduction, treatment, and recovery from the settlements with Teva, Allergan, and the Pharmacies, in addition to $2.2 billion anticipated from the Janssen and Distributors settlements. Payment timeframes may vary and can extend up to 18 years. Funds must be specifically allocated to opioid remediation activities focused on prevention, intervention, harm reduction, treatment, and recovery services within California communities. To date, the City of Orange has received $592,942 from these settlements.
The Fire Department has identified three projects for Fiscal Year 2025 (FY25) that are eligible for funding. We are requesting an appropriation of $94,600 to support a joint venture with the Youth Centers of Orange (YCO) for a youth sports program targeting vulnerable youth in the community, Opioid Awareness and CPR training for city staff, and Narcan/overdose response kits to be distributed at strategic locations throughout the City. A 10% administration cost has been included in the provided estimate to cover the expenses associated with the management and reporting of these funds, which is an allowable use under the program guidelines.
As part of this initiative, the Fire Department seeks to collaborate with YCO, a program under The Hub OC, dedicated to supporting youth and families in our city's underserved communities. YCO offers a range of free services designed to meet the developmental needs of at-risk youth, including mentoring, tutoring, sports, music, and various enrichment opportunities. The $30,000 allocated for this initiative will directly benefit YCO’s Youth Sports Program, which provides free daily programming from 2:30 PM to 6:00 PM, and from 12:30 PM on Wednesdays, aligning with local school schedules. Currently, there is a growing waitlist of families eager to participate, indicating high demand for these transformative experiences. Additional funding would significantly enhance the center’s capacity to serve vulnerable families within the community.
In addition, Opioid Awareness, Narcan use, and CPR training will be provided to City employees. In partnership with the Risk Management Department, the Fire Department will deliver 4-hour training sessions for field personnel and other employees who may encounter opiates, opiate users, or require CPR certification. Two training classes have already been scheduled and are currently full, with a waitlist of interested employees. The total funding needed for these training sessions amounts to $31,000. Allocating these funds would enhance city staff's ability to respond effectively in emergency situations requiring this training.
Lastly, the department plans to purchase the supplies and materials necessary to create Narcan/overdose response kits, which will be strategically placed throughout the City in AED cabinets, libraries, customer service counters, and city vehicles for use in overdose emergencies. These supplies will be procured through the department's established vendors, using cooperative pricing agreements. The total cost for this project is $25,000. Together, with the opioid awareness training, city staff will be equipped with both the knowledge and resources needed to effectively assist in harm reduction and treatment during a potential opioid overdose.
7. ATTACHMENTS
• None