032723 Opioid Settlement Funding Application Review
March 27, 2023 — Special Meeting – Opioid Settlement Funding Application Review
The Randolph County Board of Commissioners met in special session at 6:00 p.m. in the
Randolph County Historic Courthouse Meeting Room, 145 Worth Street, Asheboro, NC.
Chairman Darrell Frye, Vice-Chairman David Allen, Commissioners Hope Haywood, Kenny
Kidd, and Maxton McDowell were present. Also present were County Manager Hal Johnson,
Assistant County Manager/Finance Officer Will Massie, Associate County Attorney Aimee
Scotton, Clerk to the Board Dana Crisco, and Deputy Clerk to the Board Jenny Parks. The meeting
was livestreamed on Facebook and YouTube.
Hal Johnson, County Manager, gave an overview and purpose of this special meeting. In 2022,
the initial Opioid Settlement Funds obtained from the big three drug distributors were distributed
to assist with abatement of opioid use disorders in Randolph County. A Memorandum of
Agreement (MOA) was adopted to administer the funds. This MOA specifies the allocation, use,
and reporting of funds from the initial settlements. The allocation is $8.8 million to the County
over the next 18 years.
The State of North Carolina recently negotiated $21 billion in new settlements with CVS,
Walgreens, Walmart, Allergan and Teva, “Wave Two Settlements.” North Carolina’s state and
local governments could receive more than $600 million from the Wave Two Settlements.
Randolph County’s share will be another $7.8 million if the Board wishes to seek these funds.
In order for Randolph County to be eligible for the Wave Two Settlements, the Randolph
County Board of Commissioners must sign onto each of the five new Wave Two Settlements as
well as a supplement to the North Carolina MOA before April 18, 2023. During this meeting
tonight, the Board will hear the first Opioid Settlement Funding recommendations and they will
vote on the passing of a resolution authorizing the County Manager to sign the five Wave Two
Settlements and the Supplemental Agreement for Additional Settlements of Opioid Litigation and
approve the associated Budget Amendment to the Grant Project Ordinance.
Mr. Johnson shared that former County Commissioner Stan Haywood, who was a pharmacist,
recognized the issues that were forthcoming from opioid use.
Mr. Johnson stated that all 100 counties in North Carolina are participating in this settlement
program. The North Carolina Association of County Commissioners directed one of their
employees, Leia Gearhart, to assist Randolph County with this program as Project Coordinator.
Ms. Gearhart gave an update on the Randolph County Opioid Settlement Funding. The goals
identified were to enhance community efforts to develop and/or expand evidence-based programs
and resources to address opioid use disorder, to build capacity and infrastructure to measure the
impact of programs and prevent fatal overdoses in Randolph County, and to strengthen community
partnerships to improve access to care related to opioid use disorder. These goals will be met by
using existing program support, grant writing skills development and management, data collection
building processes, technical assistance, Opioid Collaborative participation, and
training/workshops for those administering the program.
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Ms. Gearhart went over the assessment process of the thirteen applications that were received.
She introduced Jennifer Layton, Assistant Public Health Director, who has been the “co-chair” of
this process with Ms. Gearhart. Ms. Layton reported that Executive Committee Training was held
to explain the criteria for application evaluation.
Ms. Layton stated those organizations chosen will have accountability such as pre-contract
accountability, financial accountability, and performance accountability. She shared the eight
proposals for the six organizations that were recommended for funding. The funding amount for
each was $150,000 for FY24-FY26. Below is a table that shows what the Executive Committee
is recommending for approval.
Technical Assistance Area
FY24-FY26
Action Operations,
Organization Program Recommended
Planning Evaluation Data Gaps, &
Funding
and Plan Collection Connect to
Timeline Care
Early
JDRC $150,000 X X X
intervention
Community Naloxone
$150,000 X
Hope Alliance Distribution
Detention
RCSO Center MAT $150,000 X X X
Program
Community
SSP $150,000 X X
Hope Alliance
Naloxone
RCSO $150,000 X X X X
Distribution
Recovery
Support
Keaton’s Place Services: $150,000 X
Connect to
Care
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Evidence-
Chatham based
$150,000 X X X
Recovery Addiction
Treatment
Recovery
Support
DSS Services: $150,000 X X X X
Connect to
Care
Technical Assistance Areas were identified by the Executive Committee to be addressed by the
applicant prior to project implementation in July if they are approved. At the end of the first year,
the Executive Committee will conduct a performance review for all awarded agencies. The
Executive Committee is recommending all of the above-named applications be approved.
Mr. Johnson asked what is meant by “evidence-based.” Ms. Layton explained that evidence-
based strategies have been studied and found to be effective in addressing an issue. All of the
strategies presented have been studied. They are all vital in addressing opioid use disorder.
Chairman Frye asked if any of these funds could be used for administrative and personnel costs.
Ms. Layton replied that there was not a limit set on personnel cost, but there was a limit set on
indirect costs.
Vice-Chairman Allen asked how the funding amount of $150,000 was set for each program.
Ms. Layton stated that the Committee has been in contact with other counties across the state of
North Carolina that have similar funding packages. These counties recommended starting on the
low end for managing the program. The Committee also does not want organizations to become
reliant on these funds as their sole funding source.
Chairman Frye inquired about other funds that could be used for Naloxone. Ms. Layton stated,
during Covid, Covid dollars were used for Naloxone because of sharp increases in overdose
fatalities. However, as Covid initiatives wind down, so will the funding that has been earmarked
for Naloxone.
Chairman Frye asked if all of these programs must be voted on as a whole. Ms. Layton stated
that was the recommendation from the Executive Committee. The reason for recommending
approval of all eight programs is the collaboration that will occur among providers as opposed to
them being in competition with each other.
Commissioner Kidd questioned why they were not being voted on individually. Chairman Frye
stated them being voted on together was the Executive Committee’s recommendation, but the
Board could decide on another option if they wish.
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Commissioner Haywood said it was obvious that the programs have been carefully selected for
funding and the accountability piece is in place. She stated that Randolph County needs these
organizations to be successful and with them working together that goal is attainable.
Chairman Frye asked how to stop the opioid problem without making it easier for those that
have opioid use disorder to continue to function with their addiction. Ms. Layton stated that is a
challenge. It takes a lot of interaction for addicted individuals to build trust with the organizations
providing services. It also depends on their willingness to admit they have a problem and need
help. Cost of treatment can be prohibitive as well.
Chairman Frye asked if the Medicaid expansion would cover any of those costs and Ms. Layton
stated it was supposed to. Medicaid expansion would open the door for some individuals that may
not have had access to these programs before.
Chairman Frye reminded the Board that anyone that sits on the board of any of the organizations
that are being presented cannot vote on their items.
Commissioner Kidd questioned if there was an up-front audit of these organizations. Ms.
Layton stated that there will be an audit required after one year from the time the funds will be
given. If the organization cannot provide an audit after the first year, it will hinder them receiving
the remainder of the funds.
Vice-Chairman Allen inquired about the rubric the Executive Committee used for scoring of
these applications. Ms. Layton explained they used one from past funding by the Randolph County
Finance Office.
Thirteen applications were received and only five were not fully compliant with the Memo of
Agreement (MOA). The five that did not qualify were removed from the scoring process.
Ms. Layton explained each organization and program being recommended as follows:
The Juvenile Day Reporting Center (JDRC) will support their current
programming that addresses early intervention for youth under the age of 18
identified as having opioid use disorder. They will use this program to strengthen
the families and the youth to increase their success of overcoming opioid use
disorder.
Community Hope Alliance is the largest distributor of Naloxone in the
community. Had they not had Naloxone on hand when needed, the fatality rate in
Randolph County would be much higher.
The Randolph County Sheriff’s Office (RCSO) will use this funding to
supplement the Medication Assisted Therapy (MAT) program in the Detention
Center.
Community Hope Alliance offers a syringe service program. Those programs can
be expensive to operate but do lessen the chances of the spread of Hepatitis and
HIV. There has been a reduction in the traffic through the hospital system and
increased connection to services from this program.
The Randolph County Sheriff’s Office (RCSO) has opted to distribute Naloxone
to individuals being released from the Detention Center. Because if an individual
has been in the Detention Center not using drugs, they become extremely sensitive
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to whatever kind of drug they use out in the community. The Sheriff’s Office
wants to provide this lifesaving resource.
Keaton’s Place provides recovery support services. They connect individuals to
inpatient and outpatient treatment by transporting the patient to the services they
need.
Chatham Recovery is an opioid treatment service in the community. They are the
only ones providing medications and psychotherapy to their clients. They are an
evidence-based organization.
The Department of Social Services (DSS) has seen an increase in the need for
foster care homes due to child abuse and neglect as it relates to substance abuse in
the county. They would like to hire a licensed Clinical Social Worker to provide
intensive support to families that are impacted by opioid use disorder.
Mr. Johnson asked if the Board has to vote on all of the applications at the same time or could
they be voted on individually. Ms. Layton stated the Executive Committee has presented the
recommendation for all to be voted together, however it is up to the Board on how to handle this
matter at their May meeting.
The total amount of Opioid Settlement funding from the initial settlement is a little less than $9
million and the Second Wave is a little over $7.8 million. If the recommended programs are
approved, $1.2 million would be used at the end of three years. The total funds in the amount of
$17,690,000 are to be used over 18 years.
Chairman Frye asked if there were any specific issues that hindered the five programs from not
being recommended for funding. Ms. Layton stated they did not align with the requirements of
the MOA with the strategies they identified.
Chairman Frye stated he was not aware that all of these would be recommended in a block for
approval. The Board will need to decide how to handle the recommendation.
Chairman Frye shared that homelessness is a growing issue in the County, especially the
downtown area. He has people in the community concerned that these funds would enable those
that have opioid use disorder. Ms. Layton explained that through their Opioid Collaborative,
housing was a hot topic. It is very difficult for an individual who is seeking to sustain recovery
over time if they do not have anywhere to live or a safe place to stay.
Commissioner Kidd expressed concern that some of these resources could be an open door to
a harm reduction program that could get worse. Looking at bigger cities that have some of these
programs, it appears they are enabling the problem making the cycle never ending. He stated that
he has seen an issue in downtown Asheboro at his place of business. He has walked over needles
in his parking lot. The harm reduction debate is a big concern for him as well as the needle
exchange programs.
Ms. Layton stated that in the Southeast, communities that no longer have harm reduction
programs have seen an increase in HIV and Hepatitis among those using needles. The government
had to deploy emergency response because it became a community health threat. These programs
do reduce the spread of communicable disease, which reduces the burden on the hospital system,
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especially for those individuals that may have complex health issues. Independent evaluation of
the North Carolina Syringe Service Program has indicated that participants in this program are five
times more likely to seek help and receive services. Long standing, trusting relationships are made
between the providers and the clients.
Commissioner Kidd asked for explanation on the different drugs used in the MAT program.
Michelle Hoenig, nurse with the healthcare provider at the Detention Center (Mediko), came
forward and explained the drugs used during medical treatment of opioid use disorder.
Commissioner Haywood shared she had recently attended a NACo Conference in Colorado
where a panel discussion on opioid use disorder was held. A person from North Carolina on this
panel brought an employee. This employee spoke about her journey as an opioid abuser and how
the MAT program helped her get clean, stay clean, and obtain a job. She currently works with
addicts and has helped them turn their lives around. Commissioner Haywood stated that there are
people who debate these programs but may not understand them. If it has been shown to be
effective and used wisely to help others, it can be impactful in changing the lives of those with
opioid use disorder.
Commissioner Haywood stated she sat in on a Zoom call with others county officials across
North Carolina. It was clear to her that Randolph County is further ahead of most counties on
what direction to take with these programs. Ms. Layton stated that the strong foundation Randolph
County has and the model Randolph County is building is setting the standard for the State of
North Carolina for these programs. This model is not for a county or community that does not
have resources in place. There was already a strong collaboration of individuals active and
engaged with one another. Several of these programs are looking for opportunities to expand what
they are already doing.
Commissioner McDowell questioned what the “Technical Assistance Areas” (in the table
presented) were and how will the $150,000 per organization be used. Ms. Layton stated there are
four critical pieces required for each organization to complete prior to project implementation for
the project to be successful. They are as follows:
Action Planning and Timeline is the “roadmap” for each plan with goals and
objectives identified.
Evaluation Plan measures the success of the program by surveying participants
receiving services. Part of the evaluation that is required by the MOA will be the
success stories.
Data Collection tracks the performance measures in the evaluation plan.
Operations, Gaps, and Connect to Care ensure keeping a close relationship with all
of those involved in the program.
Commissioner Haywood stated that workforce development is something that is being talked
about a lot. Many people that have been released by the Sheriff’s Department are participants in
the MAT Program. She knows a small business owner who will only employ people that have
been in a detention center or prison. He has employees that are on the medication to treat opioid
disorder. The business owner said they make excellent employees because they treasure the
opportunity to have a second chance.
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Ms. Layton shared that one of the strategies their collaborative will implement over the next
few years is recovery-friendly workplace policies. It will give clients more hope of turning their
lives around by providing them an opportunity to have a job and find a home.
Resolution for Receiving Second Wave of Opioid Settlement Funding
Will Massie, Assistant County Manager/Finance Officer, shared information regarding Opioid
Settlement Funds -Wave Two. In order to participate in the Wave Two Distributions, the Board
will need to adopt a resolution to authorize the County Manager to sign onto the five Wave Two
Settlements and the Supplemental Agreement for Additional Funds from Additional Settlements
of Opioid Litigation. The Board must also approve a Budget Amendment to the Grant Project
Ordinance adding $7,865,262.
On motion of Haywood, seconded by Allen, the Board voted 5-0 to adopt the Resolution
Authorizing the County Manager to sign the five Wave Two Settlements and the Supplemental
Agreement for Additional Settlements of Opioid Litigation and to approve the associated Budget
Amendment to the Grant Project Ordinance, as follows:
RESOLUTION BY THE COUNTY OF RANDOLPH
AUTHORIZING EXECUTION OF OPIOID SETTLEMENTS AND
APPROVING THE SUPPLEMENTAL AGREEMENT FOR ADDITIONAL
FUNDS BETWEEN THE STATE OF NORTH CAROLINA AND LOCAL
GOVERNMENTS ON PROCEEDS RELATING TO THE SETTLEMENT OF
OPIOID LITIGATION
WHEREAS, the opioid overdose epidemic had taken the lives of more than 32,000
North Carolinians (2000-2021); and
WHEREAS, the COVID-19 pandemic has compounded the opioid overdose crisis,
increasing levels of drug misuse, addiction, and overdose death; and
WHEREAS, the Centers for Disease Control and Prevention estimates the total
economic burden of prescription opioid misuse alone in the United States is $78.5
billion a year, including the costs of healthcare, lost productivity, addiction treatment,
and criminal justice involvement; and
WHEREAS, certain counties and municipalities in North Carolina joined with
thousands of local governments across the country to file lawsuits against opioid
manufacturers, pharmaceutical distribution companies, and chain drug stores to hold
those companies accountable for their misconduct; and
WHEREAS, settlements have been reached in litigation against Walmart, Inc.,
Teva Pharmaceutical Industries Ltd., Allergan Finance, LLC, Allergan Limited, CVS
Health Corporation, CVS Pharmacy, Inc., and Walgreen Co., as well as their
subsidiaries, affiliates, officers, and directors named in these Settlements; and
WHEREAS, representatives of local North Carolina governments, the North
Carolina Association of County Commissioners, and the North Carolina Department
of Justice have negotiated and prepared a Supplemental Agreement for Additional
Funds (SAAF) to provide for the equitable distribution of the proceeds of these
settlements; and
WHEREAS, by joining the settlements and approving the SAAF, the state and local
governments maximize North Carolina’s share of opioid settlement funds to ensure the
needed resources reach communities, as quickly, effectively, and directly as possible;
and
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WHEREAS, it is advantageous to all North Carolinians for local governments,
including Randolph County and its residents, to sign onto the settlements and SAAF
and demonstrate solidarity in response to the opioid overdose crisis, and to maximize
the share of opioid settlement funds received both in the state and Randolph County to
help abate the harm; and
WHEREAS, the SAAF directs substantial resources over multiple years to local
governments on the front lines of the opioid overdose epidemic while ensuring that
these resources are used in an effective way to address the crisis.
NOW, THEREFORE BE IT RESOLVED, that the Board of Commissioners of
Randolph County hereby authorizes the County Manager to execute all documents
necessary to enter into opioid settlement agreements with Walmart, Walgreens, CVS,
Allergan, and Teva, to execute the SAAF, and to provide such documents to Rubris, the
Implementation Administrator.
Opioid Settlement Grant Project Ordinance
Budget Amendment #1
Revenues Increase Decrease
Opioid Settlement Distributions $7,865,262
Appropriations Increase Decrease
Contingency $7,865,262
Adjournment
At 7:45 p.m., on motion of Allen, seconded by McDowell, the Board voted 5-0 to adjourn.
________________________________ _________________________________
Darrell Frye, Chairman David Allen
________________________________ _________________________________
Kenny Kidd Maxton McDowell
________________________________ ________________________________
Hope Haywood Dana Crisco, Clerk to the Board
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