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HomeMy WebLinkAbout2022 01 24 Regular 500 - Interlocal Agreement - Seminole County Opioid Settlement • REGULAR AGENDA ITEM 500 Incnrinreted CITY COMMISSION AGENDA I JANUARY 24, 2022 REGULAR MEETING 1959 TITLE Interlocal Agreement - Seminole County Opioid Settlement SUMMARY The state of Florida has indicated that it stands to receive more than $1.6 billion, with the majority of the money going to its cities and counties. Under the State's proposed MOU, Seminole County may be eligible to receive more than $3 million in direct funding through the "Regional Fund." To do so, the County must satisfy the following requirements: • Have a population of 300,00 or more; • have an opioid taskforce or other similar board, commission, council, or entity (including some existing sub-unit of a County's government responsible for substance abuse prevention, treatment, and/or recovery) of which it is a member or it operates in connection with its municipalities or others on a local or regional basis; • have an abatement plan that has been either adopted or is being utilized to respond to the opioid epidemic; • either provide or contract with others to provide substance abuse prevention, recovery, and/or treatment services to its citizens; and • enter into an interlocal agreement with a majority of Municipalities (Majority is more than 50% of the Municipalities'total Population) related to the expenditure of Opioid Funds. 82 RECOMMENDATION City staff recommends the City Commission enter into the Seminole County Settlement Opioid Fund and execute the attached interlocal agreement for the administration and execution for the prevention, enforcement, treatment, medical and legislative functions to address the ongoing opioid epidemic; authorize the City Manager and City Attorney to execute any and all documents to enter into this agreement. 83 INTERLOCAL AGREEMENT SEMINOLE COUNTY REGIONAL OPIOID SETTLEMENT FUNDS THIS INTERLOCAL AGREEMENT ("Agreement")is made and entered into as of this day of , 2021, by and between the following Parties: Seminole County, a political subdivision of the State of Florida, whose address is Seminole County Services Building, 1101 East 1st Street, Sanford,Florida 32771, hereinafter referred to as the"County," and the eligible municipalities who have signed onto this agreement, as evidenced by their signature to this Agreement(hereinafter referred to as the "Signed Cities"). WITNESSETH: WHEREAS, a local, state and national crisis arose as a result of the manufacture, distribution and over-prescribing of opioid analgesics("opioids") and resulted in opioid overdoses and addictions throughout municipalities, counties, states and the nation; and WHEREAS, Seminole County and the municipalities therein are not immune from this nationwide crisis; and WHEREAS, in 2016, the Seminole County Opioid Council ("SCOC") was formed comprising leaders from a diverse range of fields of expertise representing various private and public organizations around the County to address Seminole County's opioid crises; and WHEREAS, The SCOC's primary initiative is to provide evidence-based and data-driven solutions to implement a holistic strategy that is designed to address best practices for addiction treatment, and the root causes and parallel issues of substance abuse such as mental illness; and Interlocal Agreement Seminole County Regional Opioid Settlement Funds Page 1 of 23 84 WHEREAS, the SCOC meets every month and has sub-committees for prevention, enforcement,treatment,medical and legislative functions to address the ongoing opioid epidemic; and WHEREAS, each sub-committee is comprised of members who are experts in their respective fields, and make recommendations to the SCOC as it relates to best practices regarding issues related to the opioid epidemic; and WHEREAS, in January 2019, upon the recommendation of SCOC, Seminole's Collaborative Opioid Response Effort ("SCORE")was formed; and WHEREAS, since its formation, SCORE has implemented an abatement plan which consists of various programs utilizing resources from public and private entities designed to address the opioid crisis before, during, and after individuals become affected by it; and WHEREAS, the opioid crisis continues to place an undue strain on local government finances to implement programing to combat the opioid epidemic, to mitigate the harmful effects of the opioid epidemic in the community,and to increase educational campaigns to counteract mis- information about the addictive nature and harmful effects of opioids; and WHEREAS,the opioid crisis is as pronounced within Seminole County and within certain municipalities within Seminole County as it was throughout most of the harder hit areas in the state of Florida and in the United States and despite the resources expended on combatting the epidemic,the opioid epidemic continues to impact the local community; and WHEREAS, as a result of the national opioid crisis, many governmental entities throughout the country filed lawsuits against opioid manufacturers, distributors, and retailers, Interlocal Agreement Seminole County Regional Opioid Settlement Funds Page 2 of 23 85 hereinafter referred to as the "defendants", to hold them accountable for the damage caused by their misfeasance, nonfeasance and malfeasance, as well as to recover monetary damages for past harm and financial compensation for ongoing and future abatement efforts; and WHEREAS, three governmental entities in Seminole County deemed the opioid crisis significant enough to secure litigation counsel and individually elect to file suit against the defendants to wit: the city of Oviedo, the city of Sanford, and the County; and WHEREAS,the lawsuits filed by the city of Oviedo, the city of Sanford, and the County were consolidated with other lawsuits filed by state, tribal and local governmental entities into what is known as the National Prescription Opiate Litigation in the United States District Court of the Northern District of Ohio, Eastern Division, case number 1:17-MD-2804; and WHEREAS, as a result of this litigation, multiple defendants have begun to negotiate settlements; and WHEREAS, the Attorney General for the State of Florida (hereinafter "Attorney General") anticipates that Settlement funds will be distributed to the State of Florida over multiple years as part of a global settlement, and not directly to the city of Oviedo, the city of Sanford, and the County, despite their position as party plaintiffs; and WHEREAS, the Attorney General has proposed entering into agreements with local governments within the State of Florida to receive Settlement funds; and WHEREAS, this agreement (hereinafter referred to as the "State MOU"), as currently drafted, divides settlement funds into three portions designated as City/County (hereinafter individual settlement funds), Regional and State funds; and Interlocal Agreement Seminole County Regional Opioid Settlement Funds Page 3 of 23 86 WHEREAS, it is anticipated that the State MOU, attached and incorporated to this Agreement as Exhibit A, will set forth the amount and manner of distribution of City/County and Regional Settlement funds within Florida,the requirements to receive and manage Regional funds, and the purposes for which Regional funds may be used; and WHEREAS, the Parties recognize that local control over Settlement funds is in the best interest of all persons within the geographic boundaries of Seminole County and ensures that Settlement funds are available and used to address opioid-related impacts within Seminole County and are, therefore, committed to the County qualifying as a "Qualified County" and thereby receiving Regional funds pursuant to the State MOU; and WHEREAS, the State MOU requires that in order for Seminole County to become a Qualified County eligible to receive Regional Funding, there must be an interlocal agreement among Seminole County and Municipalities, as defined in the MOU, with combined population exceeding 50%of the total population of the Municipalities within Seminole County,with the term "Municipalities" being defined for the purpose in this Agreement as those municipalities with a population of 10,000 or more as required by the State MOU; or with population less than 10,000 who were party plaintiffs; population for purposes of the MOU is determined by specific Census data; and WHEREAS, historically, government-funded programming geared toward abating the opioid crisis has been data driven based upon community impacts without regard to governmental jurisdictional boundaries; and Interlocal Agreement Seminole County Regional Opioid Settlement Funds Page 4 of 23 87 WHEREAS,the Parties recognize that it is in the best interest of the County and the Cities to enter into this Agreement to ensure Seminole County is a "Qualified County" to receive Regional Funding pursuant to the State MOU. NOW,THEREFORE,in consideration of the covenants herein contained, and other good and valuable consideration,the Parties agree as follows: Section 1. Recitals. The recitals above are true and correct and incorporated into this Agreement by this statement. Section 2. Definitions. (a) Unless otherwise defined herein, all defined terms in the State MOU are incorporated herein and shall have the same meanings as in the State MOU. (b) "Seminole County Regional Funding" shall mean the amount of the Regional Funding paid to Seminole County in its role as a Qualified County, plus any contribution by a Signed City. (c) "Eligible Municipalities"means: the city of Casselberry,the city of Lake Mary,the city of Longwood, the city of Oviedo, the city of Sanford, the city of Altamonte Springs, and the city of Winter Springs. (d) "Service Area": The geographical Service Areas for this Agreement shall be the unincorporated areas of Seminole County and the geographical areas of any Signed City. (e) "Signed City" or"Signed Cities" means all eligible municipalities that have signed this Agreement, and the State MOU Interlocal Agreement Seminole County Regional Opioid Settlement Funds Page 5 of 23 88 Section 3. Conditions Precedent. This Agreement shall become effective on the Commencement Date set forth in Section 5, so long as the following conditions precedent have been satisfied: (a) Execution of this Agreement by the County and at least the minimum number of governing bodies of the municipalities as required by the State MOU to enable Seminole County to become a Qualified County and directly receive Seminole County Regional Funding; and (b) Execution of all documents necessary to effectuate the State MOU in its final form; and (c) Seminole County being determined by the State of Florida to qualify as a"Qualified County" to receive Regional Funding under the State MOU; and (d) Filing of this Agreement with the Clerk of the Circuit Court for Seminole County as required by Florida Statutes, Section 163.01. Section 4. Execution. This Agreement may be executed in counterparts all of which, taken together, shall constitute one and the same Agreement. Section 5. Term and Termination. The term of this Agreement and the obligations hereunder commences upon the satisfaction of all conditions precedent,runs concurrently with the State MOU, and will continue until one (1) year after the expenditure of all Seminole County Regional Funding, unless otherwise terminated in accordance with the provisions of the State MOU. Obligations under this Agreement which by their nature should survive, including,but not limited to any and all obligations relating to records retention, audit, and indemnification will remain in effect after termination or expiration of this Agreement. Interlocal Agreement Seminole County Regional Opioid Settlement Funds Page 6 of 23 89 Section 6. Fund Use. (a) Seminole County Regional Funding will be used to fund opioid abatement in accordance with the requirements of the State MOU, this Agreement, and any guidelines set forth by the County. Additionally, the periodic selection of opioid abatement services will take into consideration guidance by the Seminole County Opioid Council, and SCORE Abatement Plan, as adopted by the County. (b) The Opioid Abatement Services will be provided to residents of all Service Areas. (c) Seminole County Regional Funding may be used to enhance current programs or develop new programs. Regional funding is not intended to supplant current funding sources and general funds, and County staff will continue to seek funding for opioid related abatement at the levels opioid abatement programs were funded as of the effective date of this Agreement. (d) The County shall use its best efforts to fund services and programs that are available to residents of the County in the applicable Service Areas and shall strive to allocate funding and services in a manner that equally benefits residents of the County in those Service Areas. (e) The County shall provide the State with all required reporting on the use of Regional funds. Section 7. Administrative Costs. The County is responsible for administering the "Regional Funds" remitted pursuant to the State MOU and, shall provide all support services including but not limited to legal services, as well as contract management, program monitoring, and reporting required by the State MOU and is entitled to the maximum allowable administrative fee pursuant to the State MOU. The administrative fee will be deducted annually from the amount Interlocal Agreement Seminole County Regional Opioid Settlement Funds Page 7 of 23 90 of available Seminole County Regional Funds, and the remaining Seminole County Regional Funds will be spent as provided in the State MOU and as provided herein. Section 8. Signed City Contributions. Any Signed City may contribute its' individual settlement funds to the County for use in all Service Areas. To the extent that a Signed City contributes its' individual settlement funds to the County that Signed City must timely satisfy all reporting requirements of the State MOU, and provide any other reporting required by the County. Section 9. Non-Appropriation. This Agreement is not a general obligation of the County. It is understood that neither this Agreement nor any representation by any County official, officer or employee creates any obligation to appropriate or make monies available for the purposes of this Agreement beyond the fiscal year in which this Agreement is executed. The obligations of the County as to funding required pursuant to the Agreement are limited to an obligation in any given fiscal year to budget and appropriation of Seminole County Regional Funds annually which are designated for regional use pursuant to the terms of the State MOU. No liability shall be incurred by the County beyond the monies budgeted and available for the purpose of this Agreement. If funds are not received by the County for any or all of this Agreement for a new fiscal period, the County is not obligated to pay or spend any sums contemplated by this Agreement beyond the portions for which funds were received and appropriated. The County agrees to promptly notify the Signed Cities in writing of any subsequent non-appropriation. Section 10. Indemnification. Each Signed City and the County shall be responsible for their respective employees' acts of negligence when such employees are acting within the scope of their employment and shall only be liable for any damages resulting from said negligence to the Interlocal Agreement Seminole County Regional Opioid Settlement Funds Page 8 of 23 91 extent permitted by Section 768.28, Florida Statues, as this statute may be amended from time to time. Nothing herein shall be construed as a waiver of sovereign immunity, or the provisions of section 768.28, Florida Statutes, by any Party. Nothing herein shall be construed as consent by either Party to be sued by third Parties for any matter arising out of this Agreement. Section 11. Severability. If any provision of this Agreement is held invalid,the invalidity shall not affect other provisions of the Agreement which can be given effect without the invalid provision or application, and to this end, the provisions of this Agreement are severable. Section 12. Amendments to Agreement. This Agreement may be amended, in writing, upon the express written approval of the governing bodies of all the Parties. Section 13. Filing of Agreement. The County shall file this Agreement with the Clerk of the Circuit court as provided in Section 163.01(11), Florida Statutes. Section 14. Governing Law Jurisdiction and Venue. The laws of the State of Florida shall govern the validity, enforcement, and interpretation of this Agreement. The sole jurisdiction and venue for any legal action in connection with this Agreement will be, if in state court, in a court of competent jurisdiction located in Seminole County, Florida, or, if in federal court, the Florida Middle District, Orlando Division. Section 15. Notices. Any notices required or permitted by this Agreement shall be in writing and shall be deemed delivered upon hand delivery, or three (3) days following deposit in the United States postal system, postage prepaid,return receipt requested, addressed to the Parties at the addresses specified on the Party's signature page to this Agreement. Interlocal Agreement Seminole County Regional Opioid Settlement Funds Page 9 of 23 92 Section 16. Public Records and Auditing. (a) In performance of this Agreement, the Parties shall keep books, records, and accounts of all activities related to this Agreement in compliance with generally accepted accounting procedures. (b) All documents,papers,books,records and accounts made or received by the Parties in conjunction with this Agreement, and the performance of this Agreement shall be open to inspection during regular business hours by an authorized representative of the County. The County or any of its duly authorized representatives reserves the right to audit the Party's records related to this Agreement at any time during the performance of this Agreement and for a period of five(5)years after final payment is made, or otherwise required by law. The Parties shall retain all documents,books and records for a period of five(5)years after termination of this Agreement, unless such records are exempt from section 24(a)of Article I of the State Constitution and Chapter 119, Florida Statutes, or the Parties turn said records over to County. (c) All records or documents created by or provided to the Parties by the County in connection with this Agreement are public records subject to Florida Public Records Law,Chapter 119, Florida Statutes. All records stored electronically must be provided to the County, upon request from the County's custodian of public records, in a format that is compatible with the information technology systems of the County. (d) All Parties understand that each is subject to the Florida Public Records Law, Chapter 119,Florida Statutes, as this statute may be amended from time to time. The Parties agree that any written communication with the Parties,to include emails, email addresses, a copy of this Interlocal Agreement Seminole County Regional Opioid Settlement Funds Page 10 of 23 93 Agreement, and any supporting documentation are subject to public disclosure upon request, unless otherwise exempt or confidential under Florida Statute. (e) "Public Records" are defined as"all documents,papers,letters, maps,books,tapes, photographs,films,sound recordings, data processing software, or other material,regardless of the physical form, characteristics, or means of transmission, made or received pursuant to law or ordinance or in connection with the transaction of official business by any agency." (section 119.011(12), Florida Statutes). (f) Pursuant to Florida Statute Chapter 119, generally, and 119.0701 specifically, if records created by the County related to the performance of the services under this Agreement do not fall under a specific exemption under Florida or federal law, the records must be provided to anyone making a public records request. It will be the Party's duty to identify any information in records created by the Parry which it deems is exempt under Florida or federal law and identify the statute number which requires the information be held exempt. (g) Pursuant to Section 119.0701, a request to inspect or copy public records relating to this Agreement must be made directly to the County. The County shall direct individuals requesting public records to the public records point of contact listed below. If the County does not possess the requested records, the County shall immediately notify the applicable Parry of the request and the applicable Party must provide the records to the County or allow the records to be inspected or copied within twenty-four(24)hours (not including weekends and legal holidays) of the request so the County can comply with the requirements of section 119.07, Florida Statutes. The applicable Parry may also provide a cost estimate to produce the requested documents. Interlocal Agreement Seminole County Regional Opioid Settlement Funds Page 11 of 23 94 (h) Should any person or entity make a public records request of the County which requires the County to allow inspection or provide copies of records which a Party maintains are exempt under the Public Records Law or otherwise confidential, it shall be the Party's obligation to provide the County within a reasonable time of notification by the County to the applicable Party of the records request, of the specific exemption or confidentiality provision to allow the County to comply with the requirements of section 119.07(1)(e) and(f), Florida Statutes. (i) Should the County face any kind of legal action to require or enforce inspection or production of any records provided by the Party to the County which the Party maintains is exempt or confidential from such inspection/production as a public record, said Party agrees to indemnify the County for all damages and expenses, including attorney's fees and costs, to the extent permitted by State law. The applicable Party shall hire and compensate attorney(s) who shall represent the interests of the County as well as the Party in defending such action. The Party shall also pay any costs to defend such action and shall pay any costs and attorney's fees which may be awarded pursuant to section 119.12, Florida Statutes, to the extent permitted by Florida state law. 0) Should a Party fail to provide the public records to the County within a reasonable time, the Party may be subject to penalties under section 119.10, Florida Statutes, including civil liability for the reasonable cost of enforcement incurred by the entity requesting the records and may be subject to criminal penalties. The Party's failure to comply with public records requests is considered a material breach of this Agreement and grounds for termination. (k) Each Party shall ensure that all public records that are exempt or confidential and exempt from public records disclosure requirements are not disclosed except as authorized by law Interlocal Agreement Seminole County Regional Opioid Settlement Funds Page 12 of 23 95 for the duration of the Agreement term and following completion of the Agreement if the Parry does not transfer the records to the County. (1) Upon completion of the Agreement, each Party shall transfer, at no cost, to the County all public records in possession of the Party or keep and maintain public records required by the County to perform the service. If a Party transfers all public records to the County upon completion of the Agreement, that Party shall destroy any duplicate public records that are exempt or confidential and exempt from public records disclosure requirements. If a Party keeps and maintains public records upon completion of the Agreement, the Party shall meet all applicable requirements for retaining public records. IF ANY PARTY HAS QUESTIONS REGARDING THE APPLICATION OF CHAPTER 119, FLORIDA STATUTES, TO SAID PARTY'S DUTY TO PROVIDE PUBLIC RECORDS RELATING TO THIS AGREEMENT, CONTACT THE COUNTY MANAGER COORDINATOR, SHANI BEACH, 407-665-7219, SBEACH(a,SEMINOLECOUNTYFL.GOV, 1101 E.IST STREET, SANFORD, FL 32771 Section 17. Employment Eligibility Verification (E-Verify). (a) The Parties shall utilize the U.S. Department of Homeland Security's E-Verify system to verify the employment eligibility of all new employees hired by each Party during the term of the Agreement. Upon request, the Party shall provide acceptable evidence of their Interlocal Agreement Seminole County Regional Opioid Settlement Funds Page 13 of 23 96 enrollment. Acceptable evidence shall include, but not be limited to, a copy of the fully executed E-Verify Memorandum of Understanding for the business. (b) Each Party shall expressly require any subcontractors performing work or providing services pursuant to this Agreement to likewise utilize the United States Department of Homeland Security's E-Verify system to verify the employment eligibility of all new employees hired by the subcontractor during the term of this Agreement. (c) Each Party agrees to maintain records of its participation and compliance with the provisions of the E-Verify program, including participation by its subcontractors as required by section 448.095(2)(b), Florida Statutes, and to make such records available to the County consistent with the terms of Party's enrollment in the program. (d) Compliance with the terms of this section is made an express condition of this Agreement and the County may treat a failure as grounds for immediate termination of this Agreement as to any applicable Parry. (e) A Party who registers with and participates in the E-Verify program may not be barred or penalized under this section if, as a result of receiving inaccurate verification information from the E-Verify program, the Party hires or employs a person who is not eligible for employment. (f) Nothing in this section may be construed to allow intentional discrimination of any class protected by law. Section 18. Entirety, Construction of Agreement. This Agreement represents the understanding between the Parties in its entirety and no other agreements, either oral or written, Interlocal Agreement Seminole County Regional Opioid Settlement Funds Page 14 of 23 97 exist between the Parties. The Exhibits are attached and incorporated into this Agreement by this reference. The Parties acknowledge that they fully reviewed this Agreement and had the opportunity to consult with legal counsel of their choice, and that this Agreement shall not be construed against any Party as if they were the drafter of this Agreement. Each Party warrants that it is possessed with all requisite lawful authority to enter into this Agreement, and the individual executing this Agreement is possessed with the authority to sign and bind that Parry. All conditions and assurances required by this Agreement are binding on Parties and their authorized successors in interest. IN WITNESS WHEREOF, the Parties have caused this Agreement to be signed by their duly authorized representative, as of the day and year first written above. BOARD OF COUNTY COMMISSIONER ATTEST: SEMINOLE COUNTY, FLORIDA By: GRANT MALOY BOB DALLARI, Chairman Clerk to the Board of County Commissioners of Seminole County, Florida. Date: For the use and reliance As authorized for execution by the Board of of Seminole County only. County Commissioners at its 20_____,regular meeting. Approved as to form and legal sufficiency. County Attorney RM 12/10/21 T:\Users\Legal Secretary CSB\Miscellaneous\Seminole County Regional Opioid Settlement Funds Interlocal Agreement 12-27-21.docx Interlocal Agreement Seminole County Regional Opioid Settlement Funds Page 15 of 23 98 Attachment: Exhibit A - State Proposal Memorandum of Understanding Interlocal Agreement Seminole County Regional Opioid Settlement Funds Page 16 of 23 99 IN WITNESS WHEREOF, the Parties have caused this Agreement to be signed by their duly authorized representative, as of the day and year first written above. CITY OF CASSELBERRY, FLORIDA By: DAVID HENSON, Mayor As approved by the Board: 52021. Approved as to form and ATTEST: legal sufficiency: City Attorney City Clerk All notices under this Agreement shall be sent to: City of Casselberry c/o James "Randy" Newlon, City Manager 95 Triplet Lake Dr. Casselberry, FL 32707 [Signatures and attestations continue on the following page.] Interlocal Agreement Seminole County Regional Opioid Settlement Funds Page 17 of 23 100 IN WITNESS WHEREOF, the Parties have caused this Agreement to be signed by their duly authorized representative, as of the day and year first written above. CITY OF LAKE MARY, FLORIDA By: DAVID J. MEALOR, Mayor As approved by the Board: 52021. Approved as to form and ATTEST: legal sufficiency: City Attorney City Clerk All notices under this Agreement shall be sent to: City of Lake Mary c/o Kevin Smith, City Manager 100 N. Country Club Rd. Lake Mary,FL 32746 [Signatures and attestations continue on the following page.] Interlocal Agreement Seminole County Regional Opioid Settlement Funds Page 18 of 23 101 IN WITNESS WHEREOF, the Parties have caused this Agreement to be signed by their duly authorized representative, as of the day and year first written above. CITY OF LONGWOOD, FLORIDA By: BRIAN D. SACKETT, Mayor As approved by the Board: 52021. Approved as to form and ATTEST: legal sufficiency: City Attorney City Clerk All notices under this Agreement shall be sent to: City of Longwood c/o Clint Gioielli, Acting City Manager 175 W. Warren Ave. Longwood, FL 32750 [Signatures and attestations continue on the following page.] Interlocal Agreement Seminole County Regional Opioid Settlement Funds Page 19 of 23 102 IN WITNESS WHEREOF, the Parties have caused this Agreement to be signed by their duly authorized representative, as of the day and year first written above. CITY OF OVIEDO, FLORIDA By: MEGAN SLADEK, Mayor As approved by the Board: 52021. Approved as to form and ATTEST: legal sufficiency: City Attorney City Clerk All notices under this Agreement shall be sent to: City of Oviedo c/o Bryan Cobb, City Manager 400 Alexandria Blvd. Oviedo, FL 32765 [Signatures and attestations continue on the following page.] Interlocal Agreement Seminole County Regional Opioid Settlement Funds Page 20 of 23 103 IN WITNESS WHEREOF, the Parties have caused this Agreement to be signed by their duly authorized representative, as of the day and year first written above. CITY OF SANFORD, FLORIDA By: ART WOODRUFF, Mayor As approved by the Board: 52021. Approved as to form and ATTEST: legal sufficiency: City Attorney City Clerk All notices under this Agreement shall be sent to: City of Sanford c/o Norton N. Bonaparte Jr., City Manager 300 N. Park Ave. Sanford,FL 32771 [Signatures and attestations continue on the following page.] Interlocal Agreement Seminole County Regional Opioid Settlement Funds Page 21 of 23 104 IN WITNESS WHEREOF, the Parties have caused this Agreement to be signed by their duly authorized representative, as of the day and year first written above. CITY OF ALTAMONTE SPRINGS, FLORIDA By: PAT BATES, Mayor As approved by the Board: 52021. Approved as to form and ATTEST: legal sufficiency: City Attorney City Clerk All notices under this Agreement shall be sent to: City of Altamonte Springs c/o Franklin W. Martz 11, City Manager 225 Newburyport Ave. Altamonte Springs, FL 32701 [Signatures and attestations continue on the following page.] Interlocal Agreement Seminole County Regional Opioid Settlement Funds Page 22 of 23 105 IN WITNESS WHEREOF, the Parties have caused this Agreement to be signed by their duly authorized representative, as of the day and year first written above. CITY OF WINTER SPRINGS, FLORIDA By: KEVIN MCCANN, Mayor As approved by the Board: 52021. Approved as to form and ATTEST: legal sufficiency: City Attorney City Clerk All notices under this Agreement shall be sent to: City of Winter Springs c/o Shawn Boyle, City Manager 1126 East State Road 434 Winter Springs, FL 32708 Interlocal Agreement Seminole County Regional Opioid Settlement Funds Page 23 of 23 106 EXHIBIT A PROPOSAL MEMORANDUM OF UNDERSTANDING Whereas, the people of the State of Florida and its communities have been harmed by misfeasance, nonfeasance and malfeasance committed by certain entities within the Pharmaceutical Supply Chain; Whereas, the State of Florida, through its Attorney General, and certain Local Governments, through their elected representatives and counsel, are separately engaged in litigation seeking to hold Pharmaceutical Supply Chain Participants accountable for the damage caused by their misfeasance,nonfeasance and malfeasance; Whereas, the State of Florida and its Local Governments share a common desire to abate and alleviate the impacts of that misfeasance, nonfeasance and malfeasance throughout the State of Florida; Whereas, it is the intent of the State of Florida and its Local Governments to use the proceeds from Settlements with Pharmaceutical Supply Chain Participants to increase the amount of funding presently spent on opioid and substance abuse education, treatment and other related programs and services, such as those identified in Exhibits A and B, and to ensure that the funds are expended in compliance with evolving evidence-based"best practices"; Whereas, the State of Florida and its Local Governments, subject to the completion of formal documents that will effectuate the Parties' agreements, enter into this Memorandum of Understanding("MOU")relating to the allocation and use of the proceeds of Settlements described herein; and Whereas, this MOU is a preliminary non-binding agreement between the Parties, is not legally enforceable, and only provides a basis to draft formal documents which will effectuate the Parties' agreements. Definitions As used in this MOU: 1. "Approved Purpose(s)" shall mean forward-looking strategies, programming and services used to expand the availability of treatment for individuals impacted by substance use disorders, to: (a) develop, promote, and provide evidence-based substance use prevention strategies; (b) provide substance use avoidance and awareness education; (c) decrease the oversupply of licit and illicit opioids; and(d)support recovery from addiction. Approved Purposes shall include, but are not limited to, the opioid abatement strategies listed on Exhibits A and B which are incorporated herein by reference. Exhibit A 107 2. "Local Governments" shall mean all counties, cities, towns and villages located within the geographic boundaries of the State. 3. "Managing Entities" shall mean the corporations selected by and under contract with the Florida Department of Children and Families or its successor ("DCF") to manage the daily operational delivery of behavioral health services through a coordinated system of care. The singular"Managing Entity" shall refer to a singular of the Managing Entities. 4. "County" shall mean a political subdivision of the state established pursuant to s. 1, Art. VIII of the State Constitution. 5. "Municipalities" shall mean cities, towns, or villages of a County within the State with a Population greater than 10,000 individuals and shall also include cities, towns or villages within the State with a Population equal to or less than 10,000 individuals which filed a Complaint in this litigation against Pharmaceutical Supply Chain Participants. The singular "Municipality" shall refer to a singular of the Municipalities. 6. "Negotiating Committee" shall mean a three-member group comprised by representatives of the following: (1) the State; and (2)two representatives of Local Governments of which one representative will be from a Municipality and one shall be from a County (collectively,"Members")within the State. The State shall be represented by the Attorney General or her designee. 7. "Negotiation Class Metrics" shah mean those county and city settlement allocations which come from the official website of the Negotiation Class of counties and cities certified on September 11, 2019 by the U.S. District for the Northern District of Ohio in In re National Prescription Opiate Litigation, MDL No. 2804 (N.D. Ohio). The website is located at https://allocationmap.iclaimsonline.com. 8. "Opioid Funds" shall mean monetary amounts obtained through a Settlement as defined in this MOU. 9. "Opioid Related" shall have the same meaning and breadth as in the agreed Opioid Abatement Strategies attached hereto as Exhibits A or B. 10. "Parties" shall mean the State and Local Governments. The singular word"Party" shall mean either the State or Local Governments. 11. "PEC" shall mean the Plaintiffs' Executive Committee of the National Prescription Opiate Multidistrict Litigation pending in the United States District Court for the Northern District of Ohio. 12. "Pharmaceutical Supply Chain" shall mean the process and channels through which Controlled Substances are manufactured, marketed, promoted, distributed or dispensed. Exhibit A 108 13. "Pharmaceutical Supply Chain Participant" shall mean any entity that engages in, or has engaged in the manufacture, marketing, promotion, distribution or dispensing of an opioid analgesic. 14. "Population" shall refer to published U.S. Census Bureau population estimates as of July 1, 2019, released March 2020, and shall remain unchanged during the term of this MOU. These estimates can currently be found at https://www.census.gov 15. "Qualified County" shall mean a charter or non-chartered county within the State that: has a Population of at least 300,000 individuals and (a)has an opioid taskforce of which it is a member or operates in connection with its municipalities or others on a local or regional basis; (b)has an abatement plan that has been either adopted or is being utilized to respond to the opioid epidemic; (c)is currently either providing or is contracting with others to provide substance abuse prevention,recovery, and treatment services to its citizens; and(d)has or enters into an agreement with a majority of Municipalities (Majority is more than 50% of the Municipalities' total population)related to the expenditure of Opioid Funds. The Opioid Funds to be paid to a Qualified County will only include Opioid Funds for Municipalities whose claims are released by the Municipality or Opioid Funds for Municipalities whose claims are otherwise barred. 16. "SAMHSA" shall mean the U.S. Department of Health & Human Services, Substance Abuse and Mental Health Services Administration. 17. "Settlement" shall mean the negotiated resolution of legal or equitable claims against a Pharmaceutical Supply Chain Participant when that resolution has been jointly entered into by the State and Local Governments or a settlement class as described in (B)(1)below. 18. "State" shall mean the State of Florida. Terms 1. Only Abatement- Other than funds used for the Administrative Costs and Expense Fund as hereinafter described in paragraph 6 and paragraph 9, respectively), all Opioid Funds shall be utilized for Approved Purposes. To accomplish this purpose,the State will either file anew action with Local Governments as Parties or add Local Governments to its existing action, sever settling defendants, and seek entry of a consent order or other order binding both the State, Local Governments, and Pharmaceutical Supply Chain Participant(s) ("Order"). The Order may be part of a class action settlement or similar device. The Order shall provide for continuing jurisdiction of a state court to address non-performance by any party under the Order. Any Local Government that objects to or refuses to be included under the Order or entry of documents necessary to effectuate a Settlement shall not be entitled to any Opioid Funds and its portion of Opioid Funds shall be distributed to, and for the benefit of, the other Local Governments. 2. Avoid Claw Back and Recoupment-Both the State and Local Governments wish to maximize any Settlement and Opioid Funds. In addition to committing to only using funds for the Expense Funds,Administrative Costs and Approved Purposes,both Parties will agree to utilize Exhibit A 109 a percentage of funds for the core strategies highlighted in Exhibit A. Exhibit A contains the programs and strategies prioritized by the U.S. Department of Justice and/or the U.S. Department of Health & Human Services ("Core Strategies"). The State is trying to obtain the United States' agreement to limit or reduce the United States' ability to recover or recoup monies from the State and Local Government in exchange for prioritization of funds to certain projects. If no agreement is reached with the United States, then there will be no requirement that a percentage be utilized for Core Strategies. 3. Distribution Scheme -All Opioid Funds will initially go to the State, and then be distributed according to the following distribution scheme. The Opioid Funds will be divided into three funds after deducting costs of the Expense Fund detailed in paragraph 9 below: (a) Ci . /Coun . Fund- The city/county fund will receive 15% of all Opioid Funds to directly benefit all Counties and Municipalities. The amounts to be distributed to each County and Municipality shall be determined by the Negotiation Class Metrics or other metrics agreed upon,in writing,by a County and a Municipality. For Local Governments that are not within the definition of County or Municipality, those Local Governments may receive that government's share of the City/County Fund under the Negotiation Class Metrics, if that government executes a release as part of a Settlement. Any Local Government that is not within the definition of County or Municipality and that does not execute a release as part of a Settlement shall have its share of the City/County Fund go to the County in which it is located. (b) Regional Fund- The regional fund will be subdivided into two parts. (i) The State will annually calculate the share of each County within the State of the regional fund utilizing the sliding scale in section 4 of the allocation contained in the Negotiation Class Metrics or other metrics that the Parties agree upon. (ii) For Qualified Counties, the Qualified County's share will be paid to the Qualified County and expended on Approved Purposes, including the Core Strategies identified in Exhibit A, if applicable. (iii) For all other Counties, the regional share for each County will be paid to the Managing Entities providing service for that County. The Managing Entities will be required to expend the monies on Approved Purposes, including the Core Strategies. The Managing Entities shall endeavor to the greatest extent possible to expend these monies on counties within the State that are non-Qualified Counties and to ensure that there are services in every County. (c) State Fund - The remainder of Opioid Funds after deducting the costs of the Expense Fund detailed in paragraph 9,the City/County Fund and the Regional Fund Exhibit A 110 will be expended by the State on Approved Purposes, including the provisions related to Core Strategies, if applicable. (d) To the extent that Opioid Funds are not appropriated and expended in a year by the State, the State shall identify the investments where settlement funds will be deposited. Any gains, profits, or interest accrued from the deposit of the Opioid Funds to the extent that any funds are not appropriated and expended within a calendar year, shall be the sole property of the Party that was entitled to the initial deposit. 4. Regional Fund Sliding Scale- The Regional Fund shall be calculated by utilizing the following sliding scale of the Opioid Funds available in any year: A. Years 1-6: 40% B. Years 7-9: 35% C. Years 10-12: 34% D. Years 13-15: 33% E. Years 16-18: 30% 5. Opioid Abatement Taskforce or Council - The State will create an Opioid Abatement Taskforce or Council (sometimes hereinafter"Taskforce" or"Council") to advise the Governor, the Legislature, Florida's Department of Children and Families ("DCF"), and Local Governments on the priorities that should be addressed as part of the opioid epidemic and to review how monies have been spent and the results that have been achieved with Opioid Funds. (a) Size - The Taskforce or Council shall have ten Members equally balanced between the State and the Local Governments. (b) Appointments Local Governments - Two Municipality representatives will be appointed by or through Florida League of Cities. Two county representatives, one from a Qualified County and one from a county within the State that is not a Qualified County, will be appointed by or through the Florida Association of Counties. The final representative will alternate every two years between being a county representative (appointed by or through Florida Association of Counties) or a Municipality representative (appointed by or through the Florida League of Cities). One Municipality representative must be from a city of less than 50,000 people. One county representative must be from a county less than 200,000 people and the other county representative must be from a county whose population exceeds 200,000 people. (c) Appointments State - Exhibit A 111 (i) The Governor shall appoint two Members. (ii) The Speaker of the House shall appoint one Member. (iii) The Senate President shall appoint one Member. (iv) The Attorney General or her designee shall be a Member. (d) Chair - The Attorney General or designee shall be the chair of the Taskforce or Council. (e) Term -Members will be appointed to serve a two-year term. (f) Support-DCF shall support the Taskforce or Council and the Taskforce or Council shall be administratively housed in DCF. (g) Meetings - The Taskforce or Council shall meet quarterly in person or virtually using communications media technology as defined in section 120.54(5)(b)(2), Florida Statutes. (h) Reporting - The Taskforce or Council shall provide and publish a report annually no later than November 30th or the first business day after November 30th, if November 30th falls on a weekend or is otherwise not a business day. The report shall contain information on how monies were spent the previous fiscal year by the State, each of the Qualified Counties, each of the Managing Entities, and each of the Local Governments. It shall also contain recommendations to the Governor, the Legislature, and Local Governments for priorities among the Approved Purposes for how monies should be spent the coming fiscal year to respond to the opioid epidemic. (i) Accountability-- Prior to July Ist of each year, the State and each of the Local Governments shall provide information to DCF about how they intend to expend Opioid Funds in the upcoming fiscal year. The State and each of the Local Government shall report its expenditures to DCF no later than August 31st for the previous fiscal year. The Taskforce or Council will set other data sets that need to be reported to DCF to demonstrate the effectiveness of Approved Purposes. All programs and expenditures shall be audited annually in a similar fashion to SAMHSA programs. Local Governments shall respond and provide documents to any reasonable requests from the State for data or information about programs receiving Opioid Funds. (j) Conflict of Interest-All Members shall adhere to the rules,regulations and laws of Florida including, but not limited to, Florida Statute §112.311, concerning the disclosure of conflicts of interest and recusal from discussions or votes on conflicted matters. Exhibit A 112 6. Administrative Costs- The State may take no more than a 5% administrative fee from the State Fund ("Administrative Costs") and any Regional Fund that it administers for counties that are not Qualified Counties. Each Qualified County may take no more than a 5% administrative fee from its share of the Regional Funds. 7. Negotiation of Non-Multistate Settlements -If the State begins negotiations with a Pharmaceutical Supply Chain Participant that is separate and apart from a multi-state negotiation, the State shall include Local Governments that are a part of the Negotiating Committee in such negotiations. No Settlement shall be recommended or accepted without the affirmative votes of both the State and Local Government representatives of the Negotiating Committee. 8. Negotiation of Multistate or Local Government Settlements - To the extent practicable and allowed by other parties to a negotiation,both Parties agree to communicate with members of the Negotiation Committee regarding the terms of any other Pharmaceutical Supply Chain Participant Settlement. 9. Expense Fund-The Parties agree that in any negotiation every effort shall be made to cause Pharmaceutical Supply Chain Participants to pay costs of litigation, including attorneys' fees, in addition to any agreed to Opioid Funds in the Settlement. To the extent that a fund sufficient to pay the entirety of all contingency fee contracts for Local Governments in the State of Florida is not created as part of a Settlement by a Pharmaceutical Supply Chain Participant, the Parties agree that an additional expense fund for attorneys who represent Local Governments (herein "Expense Fund") shall be created out of the City/County fund for the purpose of paying the hard costs of a litigating Local Government and then paying attorneys' fees. (a) The Source of Funds for the Expense Fund- Money for the Expense Fund shall be sourced exclusively from the City/County Fund. (b) The Amount of the Expense Fund- The State recognizes the value litigating Local Governments bring to the State of Florida in connection with the Settlement because their participation increases the amount Incentive Payments due from each Pharmaceutical Supply Chain Participant. In recognition of that value,the amount of funds that shall be deposited into the Expense fund shall be contingent upon on the percentage of litigating Local Government participation in the Settlement, according to the following table: Litigating Local Government Amount that shall be paid Participation in the into the Expense Fund Settlement(by percentage of from (and as a percentage the population) of)the City/County fund 96 to 100% 10% 91 to 95% 7.5% 86 to 90% 5% Exhibit A 113 85% 2.5% Less than 85% 0% If fewer than 85% percent of the litigating Local Governments (by population) participate,then the Expense Fund shall not be funded,and this Section of the MOU shall be null and void. (c) The Timing of Payments into the Expense Fund- Although the amount of the Expense Fund shall be calculated based on the entirety of payments due to the City/County fund over a ten to eighteen year period, the Expense Fund shall be funded entirely from payments made by Pharmaceutical Supply Chain Participants during the first two years of the Settlement. Accordingly, to offset the amounts being paid from the City/County to the Expense Fund in the first two years, Counties or Municipalities may borrow from the Regional Fund during the first two years and pay the borrowed amounts back to the Regional Fund during years three, four, and five. For the avoidance of doubt, the following provides an illustrative example regarding the calculation of payments and amounts that may be borrowed under the terms of this MOU, consistent with the provisions of this Section: Opioid Funds due to State of Florida and Local Governments (over 10 to 18 years): $1,000 Litigating Local Government Participation: 100% City/County Fund(over 10 to 18 years): $150 Expense Fund (paid over 2 years): $15 Amount Paid to Expense Fund in 1st year: $7.5 Amount Paid to Expense Fund in 2nd year $7.5 Amount that may be borrowed from Regional Fund in lst year: $7.5 Amount that may be borrowed from Regional Fund in 2nd year: $7.5 Amount that must be paid back to Regional Fund in 3rd year: $5 Amount that must be paid back to Regional Fund in 4th year: $5 Amount that must be paid back to Regional Fund in 5th year: $5 (d) Creation of and Jurisdiction over the Expense Fund- The Expense Fund shall be established, consistent with the provisions of this Section of the MOU,by order of the Circuit Court of the Sixth Judicial Circuit in and for Pasco County, West Pasco Division New Port Richey, Florida, in the matter of The State of Florida, Office of the Attorney General, Department of Legal Affairs v. Purdue Pharma L.P., et al., Case No. 2018-CA-001438 (the "Court"). The Court shall have jurisdiction over Exhibit A 114 the Expense Fund, including authority to allocate and disburse amounts from the Expense Fund and to resolve any disputes concerning the Expense Fund. (e) Allocation of Payments to Counsel from the Expense Fund- As part of the order establishing the Expense Fund, counsel for the litigating Local Governments shall seek to have the Court appoint a third-neutral to serve as a special master for purposes of allocating the Expense Fund. Within 30 days of entry of the order appointing a special master for the Expense Fund, any counsel who intend to seek an award from the Expense Fund shall provide the copies of their contingency fee contracts to the special master. The special master shall then build a mathematical model, which shall be based on each litigating Local Government's share under the Negotiation Class Metrics and the rate set forth in their contingency contracts, to calculate a proposed award for each litigating Local Government who timely provided a copy of its contingency contract. 10. Dispute resolution- Any one or more of the Local Governments or the State may object to an allocation or expenditure of Opioid Funds solely on the basis that the allocation or expenditure at issue (a) is inconsistent with the Approved Purposes; (b) is inconsistent with the distribution scheme as provided in paragraph 3, or(c)violates the limitations set forth herein with respect to administrative costs or the Expense Fund. There shall be no other basis for bringing an objection to the approval of an allocation or expenditure of Opioid Funds. A Exhibit A 115