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APPROVE A 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
recommended action
RECOMMENDATION
It is recommended that the City Council adopt a resolution to:
1. Support the Service First of Northern California application to the California Department of Health Care Services for the Local Government Matching Grants Program funds for the Service First of Northern California Recovery Center project budget and funding sources with a $300,000 match; and
2. Authorize the City Manager, or designee, to take all necessary and appropriate actions to carry out the purpose and intent of the resolution.
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Summary
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. 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. 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. SFNC received a conditional award of $8,239,637.33.
DISCUSSION
Background
As a requirement for state funds, applicants must receive matching funds approval from their governing board. In May 2025, DHCS sent SFNC a BHCIP conditional award letter outlining expectations and next steps to demonstrate acceptance of conditional funding, including a requirement to submit supporting documentation. In July 2025, Advocates for Human Potential, Inc. (AHP), the Bond BHCIP administrative entity, received a letter from the Interim City Manager conveying a commitment to provide matching funding.
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. 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. City of Stockton would be providing a $300,000 match for the project to be added to the other funding sources that SFNC is using to complete the match amount.
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
FINANCIAL SUMMARY
This resolution commits $300,000 to the SFNC Recovery Center BHCIP grant. Funding has been identified in the Affordable Housing Program.
Attachment A - Letter from California Department of Health Care Services dated 11/7/2025
Attachment B - SFNC Recovery Center Renderings