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September 10, 2024
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<br />Background:
<br />
<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.
<br />
<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.
<br />
<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”).
<br />
<br /> City Council approved the Settlement MOU by Resolution R-21-24 adopted on
<br />August 10, 2021.
<br />
<br />Discussion:
<br />
<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.
<br />
<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.
<br />
<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.
<br />
<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.
<br />
<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.
<br />
<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.
<br />
<br /> In August of 2023, 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 2023-80 adopted on September 12, 2023.
<br />
<br /> In November of 2023, the City received an additional disbursement of Settlement
<br />Funds in the amount of $27,592.79, which was accepted and appropriated through City
<br />Council ordinance 2023-111 adopted on November 14, 2023.
<br />
<br /> On November 20, 2023, the City received an additional disbursement of
<br />Settlement Funds in the amount of $23,849.79, which was accepted and appropriated
<br />through City Council ordinance 2023-128 adopted on December 12, 2023.
<br />
<br /> On April 22, 2024, the City received additional disbursements of Settlement Funds
<br />in the total amount of $480,713.26 (consisting of individual checks in the amounts of
<br />$45,603.19, $30,261.57, $27,349.03, $28,960.59, $43,875.24, $38,144.92, and
<br />$266,518.72), which were accepted and appropriated through City Council ordinance
<br />2024-49 adopted on May 28, 2024.
<br />
<br /> In August 2024, the City received additional disbursements of Settlement Funds in
<br />the total amount of $194,086.72 (consisting of individual checks in the amounts of
<br />$30,281.47, $29,785.31, 30,411.07, and $103,608.87).
<br />
<br /> It is necessary for City Council to accept and appropriate these additional
<br />disbursements.
<br />
<br /> The Settlement MOU requires the City to use the Settlement Funds for “Approved
<br />Abatement Purposes”, which it defines as: “efforts to treat, prevent, or reduce opioid use
<br />disorder or the misuse of opioids or to otherwise abate or remediate the opioid
<br />epidemic…”. Specific examples of Approved Abatement Purposes are described in
<br />Section (C)(4)(a) through (j) of the Settlement MOU.
<br />
<br /> The proposed ordinance appropriates the $194,086.72 allocation of Settlement
<br />Funds to the Department of Behavioral Healthcare Services for use for Approved
<br />Abatement Purposes.
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