The Stockton City Council is scheduled to vote Tuesday on a pilot program targeting a major homeless encampment in the Spanos Park neighborhood, a proposal that is drawing scrutiny over transparency and the city’s contracting process.

The $1 million CARE (Compassion, Access, Reunification, Empowerment) Homelessness Pilot Program, put forward by interim City Manager Steve Colangelo, would fund a cleanup effort at the Trinity Parkway encampment near White Slough, according to agenda documents. It would also authorize the nonprofit Inner City Action to conduct outreach and relocate individuals to a transitional site about eight miles away on Calaveras Avenue.

The proposal has drawn scrutiny due to several factors, including the city’s decision to bypass a competitive bidding process under an emergency declaration. 

Advocates have also questioned the selection of Inner City Action, which has previously withdrawn from projects in Manteca and Lodi amid financial and operational concerns. Past tensions over transparency, budgeting, and project feasibility have raised questions about its ability to manage large-scale transitional housing efforts.

Inner City Action says it plans to use city funds to establish an 80-by-100-foot tent shelter on Calaveras Avenue that would serve as a relocation site for individuals currently living at the White Slough encampment. 

According to the nonprofit’s proposal, the Transitional Center would offer daily showers, three meals a day, 24/7 security, overnight lodging, transportation to appointments, intake and case management services, life coaching, clothing distribution, animal services, storage for personal belongings, charging stations, and a designated smoking area. Clients would be required to shower daily to stay overnight, and all incoming clients would undergo security screenings for prohibited items.

“This temporary shelter will serve as a first phase of transitional housing for a time frame of 30 to 60 days,” Inner City Action wrote in its proposal. “The ultimate goal is to get these individuals into independent permanent housing.”

The council plans to transfer $825,000 from the Public Works budget to fund the project, including $297,430 for Inner City Action’s contract. City officials describe the pilot as a compassionate but enforceable strategy to address public health, safety, and encampment cleanup efforts, using emergency procurement rules authorized under a homelessness emergency declared in November 2024.

Colangelo told Stocktonia through the city’s spokesperson that he would not be giving interviews on the proposal, emphasizing that he will present more information on the potential pilot program at Tuesday’s meeting.

Paperwork problems?

Some homeless advocates have raised alarms about the plan’s rollout, arguing  the city bypassed a competitive bidding process when selecting Inner City Action. 

Jessica Velez, who leads the nonprofit Red Rabbit Advocacy, questioned the city’s choice not to partake in a bidding process for the contract. 

“We were brought in yesterday for a conversation with the city manager, and we made it very clear we would not be supporting this if it targeted Trinity Parkway,” Velez told Stocktonia on Monday during a phone interview. “Now that I’ve reviewed the paperwork for the organization the city wants to use, I don’t understand why they would waive the usual RFP process for a group that doesn’t have its paperwork in order.”

A Request for Proposals (RFP) is a formal process that government agencies and organizations use to solicit bids from potential vendors for specific projects or services. Typically, the agency outlines the project requirements, scope of work, evaluation criteria, and deadlines, allowing multiple organizations to submit competitive proposals. The process is designed to promote transparency, fairness, and the selection of the most qualified or cost-effective provider through open competition, according to League of California Cities.

Velez also raised concerns about the nonprofit’s track record, citing issues in other cities.

“They made it sound like they had broad community support, but we are not backing this project,” she said. “In fact, in Manteca, representatives advised against working with this organization because of their past problems.”

Inner City Action did not respond to Stocktonia’s request for comment.

Inner City Action history

According to its website, Inner City Action is a Stockton-based nonprofit founded by Pastors Frank and Kim Saldana in 1996 to serve struggling and underserved communities. 

The organization, which says it operates largely through volunteers, describes its focus as  building trust with underserved populations by offering immediate resources and longer-term support to underserved populations, including those experiencing homelessness, to help them regain stability. Services the nonprofit says it provides include mobile hunger relief, job skills training, human trafficking education, basic education, life skills workshops and Bible studies.

Inner City Action has previously been active in San Joaquin County through contracts with local cities. In Manteca, the nonprofit operated an emergency homeless shelter located in a tent at the former Qualex building under a $777,618 agreement with the city through June 2022. The shelter was primarily funded by the city’s general fund and supplemented by federal block grants.

According to the Manteca/Ripon Bulletin, Inner City Action helped relocate dozens of homeless individuals each year during its tenure. After the nonprofit chose to exercise its option to leave, Manteca officials sought other organizations to continue operating the shelter.

In Lodi, Inner City Action managed homeless services at the city’s access center and was the only organization to submit a proposal for a transitional housing project at the Main Street site in 2023. However, after city council members raised concerns about transparency and professionalism, Inner City Action withdrew its proposal in 2024, citing a lack of council support. 

According to the Lodi News-Sentinel, city staff confirmed that the nonprofit had submitted extensive monthly financial reports, and some council members expressed appreciation for the organization’s contributions. Nonetheless, disagreements over oversight and project feasibility led Inner City Action to step away from the new project.

Councilmember Ramon Yepez, who represents District 4, voiced concern over the proposed length of the city’s contract with the nonprofit organization selected to operate the site during a council meeting in August 2024.

“So many things can happen in 10 years. I don’t feel comfortable approving a contract for 10 years,” Yepez said.

Councilmember Lisa Craig raised additional concerns about the nonprofit’s financial transparency.

“From what I’ve seen in the response from Inner City Action and, well, the lack of financial reporting coming from them, looking at their 990 forms… they’re getting a lot of money from us,” Craig said.

According to nonprofit data platform Cause IQ, Inner City Action has faced recurring financial deficits in recent years. IRS Form 990 filings show the organization reported a deficit of approximately $1.2 million in 2022 and over $900,000 in 2021. Despite receiving significant contributions and grants — totaling more than $2.6 million in 2022 — the Manteca-based nonprofit ended both years with expenses outpacing revenues.