Title
Approval of Opioid Funding for Pooling with the Opioid Abatement Council
Recommended Action
Committee Recommendation:
Not referred to a committee.
City Manager Recommendation:
Move to authorize the City’s contribution of opioid settlement funds to the regional Opioid Abatement Council pooling fund and direct staff to finalize and transmit the City’s funding commitment by June 30th, consistent with the Interlocal Agreement.
Report
Issue:
Whether to authorize the City’s contribution of opioid settlement funds to the regional Opioid Abatement Council pooling fund and direct staff to finalize and transmit the City’s funding commitment by June 30th, consistent with the Interlocal Agreement.
Staff Contact:
Jay Burney, City Manager, 360.753.8447
Presenter(s):
Jay Burney, City Manager
Background and Analysis:
Since 1995, when OxyContin was approved by the FDA and aggressively marketed to healthcare professionals, the sales of opioids have skyrocketed, and drug companies have recorded massive profits. In 2016, 289 million opioid prescriptions were issued, more than enough for one pill bottle for every American adult. Opioid related overdoses became the leading cause of death in the U.S. surpassing fatal car accidents. Since the year 2000, more than 300,000 people have died from fatal opioid overdoses, more than five times the total U.S. lives lost during the Vietnam War. The crisis was created by deliberate and systematic practices of pharmaceutical companies in providing false and misleading information to doctors and patients about the safety and efficacy of prescription opioids over approximately two decades.
In April 2018, Olympia retained the Seattle law firm, Keller Rohrback, to represent the City in the National Opioid Litigation against numerous pharmaceutical manufacturers, distributors, and pharmacies. In the summer of 2018, Olympia’s case was consolidated with thousands of other actions in the national multi-district litigation.
On August 23rd, 2022, Council approved a settlement with three of the largest opioid distributors, Cardinal Health, AmericourceBergen, and McKesson. In November 2022, discussion commenced to create a local Opioid Abatement Council (OAC) as permitted by the One WA MOU.
On March 22nd, 2022, the State of Washington Attorney General’s Office and local jurisdictions (including Olympia) entered into the One Washington Memorandum of Understanding (MOU) Between Washington Municipalities that addresses allocation of opioid settlement proceeds and a structure for setting up regional decision-making related to opioid fund allocation. Olympia is located within the Cascade Pacific Action Alliance Region (Cowlitz, Grays Harbor, Lewis, Mason, Pacific, Thurston, and Wahkiakum Counties). The One WA MOU permits regions to create local independent opioid abatement councils (OACs), which we have done locally.
On March 3rd, 2026, the City Council passed a Resolution approving participation in an Interlocal Agreement (ILA) with regional partners, including Thurston County and other jurisdictions, to coordinate the use of opioid settlement funds through a regional Opioid Abatement Council.
The ILA requires each participating jurisdiction to determine and communicate the amount of opioid settlement funding it will contribute to a shared regional pool. This determination must be made by June 30th of each year. The agreement allows jurisdictions flexibility to contribute some or all of their allocated funds.
As of December 31, 2025 the current balance of Olympia’s opioid settlement funding is $1,125,427. These funds are intended to support opioid abatement strategies, including prevention, treatment, recovery, and harm reduction efforts.
Thurston County staff that support the Opioid Abatement Council will be launching a Request For Proposals (RFP) to find partners and providers to advance the strategies consistent with the One Washington MOU and outlined in the 2026-2027 Thurston County Opioid Response Plan, which is attached. The RFP is for $2 million and runs for a period of July 1, 2026, through December 31, 2027.
The City Manager will be seeking guidance on a recommendation from Mayor Payne, Olympia’s Opioid Abatement Council representative, to contribute 50% of our Opioid Settlement funds to support the work over the next 18 months. The City’s 50% contribution would be $562,714.
Climate Analysis:
This action has no direct climate impact.
Equity Analysis:
Opioid settlement funds are intended to address disproportionate impacts of the opioid crisis on vulnerable and historically underserved populations. Pooling funds regionally may enhance coordinated, equity-focused investments in prevention, treatment, and recovery services.
Neighborhood/Community Interests (if known):
The opioid crisis continues to affect the community broadly, with impacts on public health, safety, and social services. Community interest generally supports increased resources for treatment, prevention, and recovery efforts.
Financial Impact:
As of December 31, 2025, the City has $1,125,427 million in opioid settlement funds available. The City Manager recommendation supports the Council representative’s recommendation to contribute 50% of our settlement funds to the regional pool, which is $562,714.
Options:
1. Move to authorize the City’s contribution of opioid settlement funds to the regional Opioid Abatement Council pooling fund and direct staff to finalize and transmit the City’s funding commitment by June 30, consistent with the Interlocal Agreement.
2. Do not authorize the City’s contribution of opioid settlement funds to the regional Opioid Abatement Council pooling fund and direct staff to finalize and transmit the City’s funding commitment by June 30, consistent with the Interlocal Agreement.
3. Take other action.
Attachments:
Interlocal Agreement
2026-2027 Thurston County Opioid Response Plan