Title
Resolution to Amend the City Council Approved Fiscal Year 2025 Budget to Appropriate from the General Fund Restricted Fund Balance Funds to be Paid to the City of Newport News to be Used as a Portion of the Local Match Contribution for Certain Cooperative Grants from the Virginia Opioid Abatement Authority for which the City of Newport News is Serving as the Fiscal Agent
Purpose
PURPOSE/BACKGROUND:
There have been multiple national settlements where opioid manufacturers and distributors have agreed to pay funds to state and local governments which are meant to help those governments abate and remediate the opioid epidemic. In Virginia, each county and city signed a memorandum of understanding with Virginia's Office of the Attorney General, which established an allocation plan for opioid settlements within the Commonwealth. In accordance with this plan opioid settlement funds will be disbursed with 15% going directly to the Commonwealth; 30% going directly to cities and counties based on a per capita within the county or city; and the remaining 55% being deposited into the Opioid Abatement Fund, to be administered by the Virginia Opioid Abatement Authority ("OAA"), much of which will be distributed to localities through a grant application process.
In addition, OAA offers an optional "Gold Standard" Incentive program that provides a 25% increase to a locality's Individual Distribution allocation provided the locality agrees to apply the "Gold Standard" in the usage of 100% of the direct funds it receives. The City of Hampton has opted to participate in this program.
Discussion:
The OAA operates a financial assistance program to support certain cooperative partnerships of cities and/or counties that implement regional efforts to treat, prevent, and reduce opioid use disorder and the misuse of opioids. The City of Hampton is partnering with the City of Newport News to take advantage of those funds to benefit the Hampton-Newport News Community Services Board ("H-NNCSB"). Two separate grant applications were submitted for that purpose. Both were approved for FY 25 awards, and can be renewed by application through FY29, as follows:
1. Mobile Medication Unit Operating Costs: H-NNCSB acquired a mobile medical unit through funding from the Virginia Department of Behavioral Health and Developmental Services. One of the OAA grants is to fund the ongoing costs of this unit. This will allow H-NNCSB to provide medical assisted treatment ("MAT"), harm reduction resources such as Narcan, and linkage to care at strategic sites in both Hampton and Newport News for individuals unable to travel to the brick-and-mortar sites in those localities. OAA has agreed to appropriate $1,624,945 of funding for this program between FY25 and FY29, to be combined with matching funds paid from direct and individual opioid settlement allocations of $150,000 ($30,000 annually) from the City of Hampton and $200,000 ($40,000 annually) from the City of Newport News. The City of Newport News will serve as the fiscal agent for this grant award.
2. Peer Recovery Oriented System Care: This OAA grant award will expand H-NNCSB's outreach and service accessibility to individuals with opioid and other substance use disorders, to include opening a Peer Recovery Drop-In Center (to be operated as a non-clinical clubhouse model), disbursing Peer Recovery Specialists ("PRS") onsite at strategic locations in both Hampton and Newport News, and providing targeted outreach by PRS in communities identified by law enforcement, first responders, and other community stakeholders. OAA has agreed to appropriate $1,642,885 of funding for this program between FY25 and FY29, to be combined with matching funds paid from direct and individual opioid settlement allocations of $225,000 ($45,000 annually) from the City of Hampton and $300,000 ($60,000 annually) from the City of Newport News. The City of Newport News will serve as the fiscal agent for this grant award.
The current action request is to approve the City of Hampton's participation in those grant programs and to appropriate from the General Fund Restricted Fund Balance funding necessary to satisfy the City's FY25 match funding obligations described above.
Impact:
Participation in these programs will further the City of Hampton's efforts to abate and remediate the opioid epidemic.
Recommendation:
Rec
Include this matter in the Budget Public Hearing scheduled for the September 11, 2024 City Council.
Approve the Resolution.
Body
WHEREAS, the Virginia Opioid Abatement Authority ("OAA") is charged with the custody and administration of 55% of opioid abatement funds received by the Commonwealth from multiple national settlements with opioid manufacturers and distributors;
WHEREAS, OAA operates a financial assistance program to support certain cooperative partnerships of cities and/or counties that implement regional efforts to treat, prevent, and reduce opioid use disorder and the misuse of opioids;
WHEREAS, the City of Hampton is partnering with the City of Newport News to take advantage of those funds to benefit the Hampton-Newport News Community Services Board ("H-NNCSB");
WHEREAS, Hampton and Newport News joined together in the submission of two (2) separate grant applications were submitted for that purpose, both were approved for FY 25 awards, and can be renewed by application through FY29;
WHEREAS, OAA has agreed to appropriate $1,624,945 of funding for this program between FY25 and FY29, to be combined with matching funds paid from direct and individual opioid settlement allocations of $150,000 ($30,000 annually) from the City of Hampton and $200,000 ($40,000 annually) from the City of Newport News to fund the ongoing operating costs of a mobile medical unit operated by H-NNCSB;
WHEREAS, OAA has agreed to appropriate $1,642,885 of funding for this program between FY25 and FY29, to be combined with matching funds paid from direct and individual opioid settlement allocations of $225,000 ($45,000 annually) from the City of Hampton and $300,000 ($60,000 annually) from the City of Newport News that will expand H-NNCSB's outreach and service accessibility to individuals with opioid and other substance use disorders, to include opening a Peer Recovery Drop-In Center (to be operate as a non-clinical clubhouse model), disbursing Peer Recovery Specialists ("PRS") on site at strategic locations in both Hampton and Newport News, and providing targeted outreach by PRS in communities identified by law enforcement, first responders, and other community stakeholders;
WHEREAS, the City of Newport News will serve as the fiscal agent for both of those grant awards, and the City of Hampton is required to pay its annual match obligations to that City.
NOW, THEREFORE, the City Council of the City of Hampton hereby approves the City of Hampton's participation in the grant awards described above and in furtherance of those grants:
1. Amends the Approved Fiscal Year 2025 Budget to Appropriate $75,000.00 from the General Fund Restricted Fund Balance to Non-Departmental Operating Funds to be paid to the City of Newport News to satisfy the City of Hampton's grant match funding for the Fiscal Year 2025; and
2. Authorizes the City Manager or her designee to take all actions necessary to implement the purposes of this resolution, including, but not limited to, executing any and all grant agreements and other documents, subject approval of the City Attorney.