November 7, 2025
On June 25, 2025, AHP received verbal confirmation from SFNC that the City of Stockton was committing to pledge the cash match required as a condition of the award.
On July 15, 2025, AHP received cash match documentation via a letter dated June 30, 2025, signed by Steve Colangelo, the Interim City Manager of the City of Stockton, on official letterhead, conveying a commitment to provide the necessary cash match as a condition of the award.
On November 4, 2025, DHCS was notified that the Interim City Manager, Steve Colangelo, had vacated his position, and his authority to pledge city funds in the amount necessary to meet the cash match requirement was under review and may not be a viable cash match source, as required, for the project.
On November 6, 2025, DHCS and AHP met with SFNC to discuss the situation and convey that revised cash match documentation would be necessary to confirm the cash match commitment could still be met as a required term of the Bond BHCIP Round 1: Launch Ready conditional award.
Therefore, DHCS will allow SFNC until November 21, 2025, no later than 5 p.m. PT, to submit additional match documentation in the grant portal to fulfill the $823,963.73 total match requirement. SFNC must submit acceptable documentation to account for $749,486.00 cash match as identified in the submitted application and the remaining $74,477.73 applied as either sunk costs or cash match. On record, to date, SFNC had submitted $67,000.00 in sunk costs as identified in the grant portal and under review.
As a condition of the Bond BHCIP Round 1 conditional funding award, SFNC must meet all match requirements and demonstrate the cash match is available.
Acceptable documentation may include letter dated and signed by the current authorizing Stockton City Manager, bank statements, and other acceptable evidence of cash . Failure to provide the requested match documentation and meet all match requirements as a required term of accepting the Bond BHCIP conditional funding award by the aforementioned deadline, will result in DHCS rescinding the $8,239,637.33 Bond BHCIP Round 1 conditional grant funding award.
As stated in the Bond BHCIP Round 1: Launch Ready Request for Applications, California law does not provide a protest or appeal process against award decisions made through an informal selection method. All award decisions made by DHCS shall be final.
If you have any questions or need further clarification, please do not hesitate to contact DHCS and AHP at [email protected].
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Mr. Hill
November 7, 2025
Sincerely,
Marlies Perez
Division Chief, Community Services Division
Project Executive, Behavioral Health Transformation
Department of Health Care Services
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ATTACHMENT B
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ATTACHMENT B
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ATTACHMENT B
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Resolution No.
STOCKTON CITY COUNCIL
RESOLUTION SUPPORTING THE APPLICATION OF SERVICE FIRST CALIFORNIA, INC. FOR THE LOCAL GOVERNMENT MATCHING GRANTS PROGRAM FOR
BEHAVIORAL HEALTH CONTINUUM INFRASTRUCTURE PROGRAM (BHCIP) ROUND 1 FOR THE SERVICE FIRST OF NORTHERN CALIFORNIA RECOVERY CENTER LOCATED AT 1005 NORTH EL DORADO ST, STOCKTON CA 95202 In October 2024, the State of California released the Request for Applications for the Behavioral Health Continuum Infrastructure Program (BHCIP) Round 1: Launch Ready grant funds; and
Through this process, over $3.3 billion was made available to construct, acquire, or rehabilitate real estate assets, expanding the continuum of behavioral health treatment and service resources for Californians; and
Under Round 1: Launch Ready grant, the state focused on the statewide behavioral health continuum and prioritized mental health community residential beds and crisis settings; and
The Service First of Northern California Recovery Center at 1005 N El Dorado St Stockton, CA 95202 will be expanding the following:
Adult Residential SUD Treatment Facility with 16 beds. Outpatient treatment for SUD with 72 slots projected to serve 18,720 individuals annually.
Social Rehabilitation Facility with 16 beds.
Peer Respite with 4 beds; and
As a requirement for state funds, applicants must receive matching funds approval from their governing board; and
Services First of Northern California received a conditional award of $8,239,637.33; and
In May 2025, DHCS sent Services First of Northern California (SFNC) a BHCIP conditional award letter outlining expectations and next steps to demonstrate acceptance of conditional funding, including a requirement to submit supporting documentation; and Acceptable documentation may include a letter dated and signed by the current authorizing City Manager, bank statements, and other acceptable evidence of a source, which are subject to DHCS’ sole discretion and approval; and In July 2025, Advocates for Human Potential, Inc. (AHP), the Bond BHCIP administrative entity, received a letter from the former Interim City Manager conveying a commitment to provide matching funding; and
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In November 2025, DHCS and AHP met with SFNC to discuss the need for a revised cash match to confirm that SFNC could still meet the requirement for Bond BHCIP Round 1; and
City of Stockton commits a $300,000 match for the project to be added to the other funding sources that SFNC is using to complete the match amount, now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF STOCKTON, AS FOLLOWS:
1. The City of Stockton approves a $300,000 match for the project to be added to the other funding sources that SFNC is using to complete the match amount.
2. The City Manager is authorized to take all necessary and appropriate steps to carry out the purpose and intent of this resolution.
PASSED, APPROVED, and ADOPTED November 18, 2025
CHRISTINA FUGAZI
Mayor of the City of Stockton
ATTEST:
KATHERINE ROLAND, CMC, CPMC
Clerk of the City of Stockton
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City of Stockton
Legislation Text
File #: 25-1335, Version: 1
DISCUSSION REGARDING THE POTENTIAL EXPANSION OF THE SCOPE OF THE WILD N’
OUT INVESTIGATION
RECOMMENDATION
This item was placed on the agenda by the Mayor pursuant to Council Policy Section 4.02.010. It is recommended that Council, by motion, direct the City Attorney to:
1. Expand the existing scope of the Wild n’ Out Investigation to include a review of whether the Vice Mayor’s failure to recuse himself from the discussion and vote regarding whether to initiate the Wild n’ Out Investigation is a violation of the Fair Political Practices Commission regulations.
2. Bring back completed results at the next available council meeting following completion of the expanded scope.
3. For any findings that support violations, initiate litigation through the City Attorney’s Office or refer to the appropriate authority/entity.
Summary
The Wild ‘n Out event was held at Adventist Health Arena on May 24, 2025. Allegations surfaced regarding Councilmembers’ role in this matter. The absence of independent determination that any member of the Council acted inappropriately or violated the City Charter or California Government Code led to a council discussion regarding the initiation of an investigation. The results of that investigation, including cost, were to be presented to the council upon completion.
Although the existing investigation scope is now complete, there is a desire to consider expanding the scope of the investigation to include a review of whether the Vice Mayor’s failure to recuse himself from the discussion and vote regarding whether to initiate the Wild n’ Out Investigation is a violation of the Fair Political Practices Commission regulations. To do so, the council must provide further direction to the City Attorney.
DISCUSSION
Background
· The Wild ‘n Out tour scheduled a live show at Adventist Health Arena on May 24, 2025. · In the days leading up to the event, concerns reportedly arose about potential financial City of Stockton Page 1 of 3 Printed on 11/13/2025
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File #: 25-1335, Version: 1
shortfalls or risks of cancellation.
· Public questions emerged about whether such use of funds was consistent with legal and policy requirements as well as questions regarding councilmember involvement. · On August 26, 2025, the Council considered and approved the initiation of an investigation to determine whether there was any wrongdoing by councilmembers.
The Wild ‘n Out event raised concerns regarding the potential misuse of City funds and the possible involvement of elected official(s) in a manner inconsistent with City or State law. To safeguard transparency, the City Council directed the City Attorney to engage a third-party investigator to review the matter and report findings back to the Council and community.
Concerns included:
1. Councilmembers’ Role
o Allegations have been made that a Councilmember may have acted outside of proper authority in relation to this matter.
o At present, there is no verified evidence confirming wrongdoing, nor has there been an independent legal review.
2. Transparency and Accountability
o To maintain public trust, an impartial third-party entity should conduct a full investigation.
o This would include reviewing communications, decisions, and any financial transactions related to the event.
Council voted 4-3, with councilmembers Lee, Enriquez, and Blower dissenting to initiate an investigation.
Present Situation
The council-initiated investigation is now complete as it pertains to the original scope of the investigation. However, the council is now asked to consider expanding the scope of the Wild n’ Out Investigation to include a review of whether the Vice Mayor’s failure to recuse himself from the discussion and vote regarding whether to initiate the Wild n’ Out Investigation is a violation of the Fair Political Practices Commission regulations.
Conclusion
Considering the above, the Council is asked to:
1. Expand the existing scope of the Wild n’ Out Investigation to include a review of whether the Vice Mayor’s failure to recuse himself from the discussion and vote regarding whether to City of Stockton Page 2 of 3 Printed on 11/13/2025
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File #: 25-1335, Version: 1
initiate the Wild n’ Out Investigation is a violation of the Fair Political Practices Commission regulations.
2. Bring back completed results at the next available council meeting following completion of the expanded scope.
3. For any findings that support violations, initiate litigation through the City Attorney’s Office or refer to the appropriate authority/entity.
FINANCIAL SUMMARY
Investigation costs, and if findings are sustained, litigation costs may be warranted. There are no costs for referrals to other agencies.
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