A homeless camp in Stockton. (Ray Saint Germain/Bay City News)

The Stockton City Council voted 4-3 on Tuesday night to reject a proposed $825,000 homelessness pilot program led by the nonprofit Inner City Action, instead approving a revised motion to further vet the plan and explore competitive options.

The initial proposal — known as the CARE (Compassion, Access, Reunification, Empowerment) Program — sought to relocate individuals from a large encampment at White Slough to a temporary tent shelter on Calaveras Avenue. Councilmember Michele Padilla, who chairs the city’s ad-hoc committee on homelessness and represents District 1, opened the agenda item by emphasizing urgency and transparency.

“We can no longer sit back and just do nothing,” Padilla said. “This presentation tonight is a result of urgency to try something new and measure results.”

Interim City Manager Steve Colangelo, who introduced the proposal, said it was developed under council guidance, with leadership from Padilla and support from members of the homelessness committee. Frank Saldana, founder and CEO of Inner City Action, spoke at the meeting and shared his personal history with addiction and homelessness, saying the nonprofit’s model “was built from decades of on-the-ground experience”.

Councilmembers, however, raised concerns about the program’s structure, oversight, and lack of a competitive bidding process. Vice Mayor Jason Lee questioned how the nonprofit would handle individuals who chose to return to the encampment after relocation — a point that Inner City Action Treasurer Kim Saldana struggled to address directly. Instead, she highlighted the program’s transportation services, which offer rides to appointments and services within Stockton. 

Her response left Lee visibly unsatisfied with the lack of clear enforcement or a contingency plan.

Lee also asked about the organization’s previous exits from projects in Manteca and Lodi. Frank Saldana acknowledged past disagreements with city officials in Manteca and said the group’s arrangement in Lodi was always intended to be temporary.

“I wish I stayed in Manteca,” he added.

District 4 Councilmember Mario Enriquez pressed the nonprofit on its financial transparency, pointing out the absence of Form 990 tax documents on its website and a lack of detailed policy information. Inner City Action responded that it could provide those documents directly to the city.

Some councilmembers, including Enriquez and District 3’s Michael Blower, expressed broader skepticism about the plan’s potential effectiveness. 

“I’m not going to spend taxpayer money on something that doesn’t give me enough research or information,” Enriquez said.

Public comments also weighed in. Matthew Lester criticized the pilot as “an $825,000 Band-Aid,” while Pat Collier of St. Mary’s Community Services warned of potential service duplication and funding competition.

Despite the pushback, Councilmember Brando Villapudua, co-chair of the ad-hoc homeless committee, said he was willing to support the pilot and “to give it an opportunity,” even though he often disagrees with Padilla.

The council ultimately rejected the original motion by a 4-3 vote, with Blower, Enriquez, Lee, and Mayor Christina Fugazi voting against it.

A second motion introduced by Lee passed by a 4-3 count, supported by Blower, Enriquez and Fugazi. It calls for staff to conduct full verification of required permits, insurance, and certifications for the proposed shelter location. 

The motion also directs city staff to include a cost assessment and explore a competitive bidding process with community partners within 30 days.