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Page 1 of 5 <br />Item #2 <br /> CITY COUNCIL AGENDA REPORT <br /> <br />September 16, 2025 <br />City Manager <br /> <br />TITLE: APPROVE BUDGET AMENDMENTS TO ALLOCATE $100,000 IN OPIOID <br />SETTLEMENT FUNDS TOWARDS THE CONSTRUCTION OF A NEW <br />SUBSTANCE-USE DISORDER FACILITY IN UNINCORPORATED ALAMEDA <br />COUNTY TO SERVE THE TRI-VALLEY REGION <br /> <br />SUMMARY <br />Through the end of fiscal year 2024/25, the City received over $480,000 in opioid settlement <br />funds through participation in national litigation against pharmaceutical distributors and <br />manufacturers. Staff recommends allocating $100,000 of these funds to support <br />predevelopment and development costs for a 16-bed substance use disorder (SUD) treatment <br />facility at 16459 Tesla Road in unincorporated Alameda County, led by The Alliance for <br />Community Wellness dba La Familia. <br /> <br />The project aligns with state requirements and Opioid Settlement remediation goals. La <br />Familia secured $7.6 million in State Behavioral Health Continuum Infrastructure Program <br />(BHCIP) funding for acquisition and construction. Predevelopment work is underway, with <br />construction scheduled to start in March 2026 and operations projected to begin in July 2027. <br />Long-term sustainability will be supported by Alameda County Behavioral Health through a 30- <br />year commitment and Medi-Cal reimbursement. The facility will expand the County's <br />behavioral health continuum, serving over 1,400 clients annually across sobering, withdrawal <br />management, and treatment programs, and expanding treatment options for Pleasanton <br />residents and the greater Tri-Valley area. <br /> <br />RECOMMENDATION <br />Approve budget amendments to allocate $100,000 in Opioid Settlement Funds towards the <br />construction of a new substance-use disorder facility in unincorporated Alameda County to <br />serve the Tri-Valley Region. <br /> <br />BACKGROUND <br />Beginning in 2021, lawsuits against several manufacturers, distributors, and other entities <br />responsible for aiding the opioid epidemic were resolved in a national settlement. This <br />settlement required the responsible entities to provide funding to abate the effects of the opioid <br />epidemic. California joined in this nationwide lawsuit, and the City began to receive these <br />opioid settlement funds in 2023. <br /> <br />The City has established dedicated funds for opioid settlement proceeds, with a cash balance <br />of approximately $465,000 at the end of fiscal year (FY) 2024/25. <br /> <br /> <br /> <br /> <br />Page 17 of 264