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September 12, 2023
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<br />Recommended Action:
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<br /> Adoption of the ordinance.
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<br />Next Steps Following Council Action:
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<br /> The Finance Department will make the necessary budget adjustment.
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<br />Motion by Dr. Whitaker, and seconded by Mr. Barnes, to adopt the following
<br />ordinance, and was adopted by the following vote:
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<br />“ORDINANCE ACCEPTING STEP-VA FUNDING IN THE AMOUNT OF $290,558
<br />FROM THE VIRGINIA DEPARTMENT OF BEHAVIORAL HEALTH AND
<br />DEVELOPMENTAL SERVICES AND APPROPRIATING SAID AMOUNT IN THE FY
<br />2024 BEHAVIORAL HEALTHCARE SERVICE FUND BUDGET FOR THE PURPOSE
<br />OF PROVIDING PUBLIC MENTAL HEALTH SERVICES.”
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<br />Ayes: Barnes, Hugel, Lucas-Burke, Moody, Tillage, Whitaker, Glover
<br />Nays: None
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<br />23 - 283 - Adoption of an ordinance accepting settlement funds in the amount of
<br />$82,778.38 from the National Opioids Settlement Fund Trust and appropriating said
<br />amount in the FY 2024 Behavioral Healthcare Service Fund for use by BHS for
<br />approved abatement purposes as defined by the Virginia Opioid Fund and
<br />Settlement Allocation MOU.
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<br />Background:
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<br /> The City of Portsmouth was one of several Virginia localities to file suit against
<br />entities engaged in the manufacture, marketing, promotion, distribution, and dispensing
<br />of opioids.
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<br /> In 2021 the Commonwealth of Virginia reached a global settlement of claims
<br />against many of the opioid entities on behalf of itself and its participating localities,
<br />including Portsmouth. The settlement provided for payment of approximately
<br />$608,000,000 to the Commonwealth (the “Settlement Funds”) over an 18-year period.
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<br /> In order to participate in the Commonwealth’s settlement and receive distributions
<br />of a portion of the Settlement Funds, Portsmouth released its claims and entered into a
<br />Virginia Opioid Abatement Fund and Settlement Allocation Memorandum of
<br />Understanding with the Commonwealth and other localities (the “Settlement MOU”).
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<br /> City Council approved the Settlement MOU by Resolution R-21-24 adopted on
<br />August 10, 2021.
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<br />Discussion:
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<br /> Under the terms of the Settlement MOU, the City will receive regular
<br />disbursements of a portion of the Settlement Funds received by the Commonwealth.
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<br /> In August of 2022, the City received a disbursement of Settlement Funds in the
<br />amount of $78,765.20, which was accepted and appropriated through City Council
<br />ordinance 2022-80 adopted on September 13, 2022.
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<br /> In October of 2022, the City received an additional disbursement of Settlement
<br />Funds in the amount of $82,778.38, which was accepted and appropriated through City
<br />Council ordinance 2022-93 adopted on October 25, 2022.
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<br /> In November of 2022, the City received an additional disbursement of Settlement
<br />Funds in the amount of $315,332.05, which was accepted and appropriated through City
<br />Council ordinance 2022-98 adopted on November 22, 2022.
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<br /> In February of 2023, the City received an additional disbursement of Settlement
<br />Funds in the amount of $20,272.32, which was accepted and appropriated through City
<br />Council ordinance 2023-09 adopted on February 28, 2023.
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<br /> In March of 2023, the City received two additional disbursements of Settlement
<br />Funds in the amounts of $53,847.86 and $26,396.02, for a total of $80,243.88, which total
<br />amount was accepted and appropriated through City Council ordinance 2023-19 adopted
<br />on March 28, 2023.
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<br /> In August of 2023, the City received an additional disbursement of Settlement
<br />Funds in the amount of $82,778.38.
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