Resolution No.
STOCKTON CITY COUNCIL
RESOLUTION AUTHORIZING A CONDITIONAL MATCHING CONTRIBUTION TO SUPPORT THE SERVICE FIRST OF NORTHERN CALIFORNIA, INC. (SFNC) APPLICATION TO THE CALIFORNIA DEPARTMENT OF HEALTH CARE SERVICES (DHCS) BEHAVIORAL HEALTH CONTINUUM INFRASTRUCTURE PROGRAM (BHCIP) ROUND 1 AWARD FOR THE SFNC RECOVERY CENTER LOCATED AT 807 NORTH EL DORADO STREET, 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 In October 2024, Service First of Northern California applied for BHCIP funding for the Recovery Center located at 1005 North El Dorado St, Stockton, CA 95202 (Original Property); and In May 2025, Service First of Northern California (SFNC) received a conditional award of $8,239,637.33 for a Recovery Center at the Original Property; and In November 2025, the City Council approved a resolution (2025-11-18-1604) committing a conditional $300,000 match for the Service First of Northern California Recovery Center located at the Original Property utilizing California Opioid Settlement funding; and In July 2026, the seller of the Original Property cancelled the real estate transaction; and SFNC subsequently identified the property located at 807 North El Dorado St, Stockton, CA 95202 (New Property) as a suitable alternate site; and In August 2026, Service First provided updated documentation from the Department of Health Care Services (DHCS) conditioning its acceptance of the alternate project site; and DHCS approval is conditional upon SFNC securing an alternate location with site control, receiving letters of support for the site change from the City and County Behavioral Health Services, initiating the formal scope change process and providing detailed plans to DHCS; and submitting a Purchase and Sale Agreement (PSA) to DHCS (Exhibit 1); and The Service First of Northern California Recovery Center at the New Property will provide the following:
Adult Residential Substance Use Disorder (SUD) Treatment Facility with 16 beds.
Outpatient treatment for SUD with 72 slots.
Social Rehabilitation Facility with 16 beds.
Peer Respite with 4 beds; and
As a requirement for state funds, applicants must meet the minimum matching funds requirement based on the award, demonstrating adequate approvals; and City of Stockton conditionally commits up to a $300,000 match for the project to be added to the other funding sources that SFNC is using to complete the match amount, subject to SFNC compliance with DHCS requirements; and The conditional commitment of $300,000 is reflective of SFNC’s original award of $8,239,637.33 and would be proportionally reduced if DHCS modifies the award amount; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF STOCKTON, AS FOLLOWS:
The City of Stockton authorizes a conditional $300,000 matching contribution to support the Service First of Northern California, Inc. (SFNC) application to the California Department of Health Care Services (DHCS) Behavioral Health Continuum Infrastructure Program (BHCIP) Round 1 award for the SFNC Recovery Center located at 807 North El Dorado Street, Stockton, CA 95202.
The City Manager is authorized to submit a letter of support to the DHCS confirming the City’s conditional commitment of matching funds and the alternate site change, subject to SFNC compliance with DHCS requirements.
Subject to SFNC’s compliance with DHCS requirements, the City Manager is authorized to execute a grant of $300,000 to SFNC for the SFNC Recovery Center located at 807 North El Dorado Street.
The grant shall have a 30-year term and compliance period. A Deed of Trust, and Regulatory Agreement will be executed to secure the City’s investment and restrictions on the use of the property. The grant proceeds may be used by SFNC for construction, acquisition, and rehabilitation costs.
The City Manager, or designee, is authorized to take all necessary and appropriate steps to carry out the purpose and intent of this Resolution, including the execution of grant documents and subordination agreements.
PASSED, APPROVED, and ADOPTED September 1, 2026 .
CHRISTINA FUGAZI
Mayor of the City of Stockton
ATTEST:
KATHERINE ROLAND, CMC, CPMC
Clerk of the City of Stockton