019200474-7-14-2023-15-AS-ANAI-CVKTXH-20230911150711

Community Care Licensing

COMPLAINT INVESTIGATION REPORT

Facility Number: 019200474
Report Date: 07/14/2023
Date Signed: 07/14/2023 09:57:45 AM

Unfounded

STATE OF CALIFORNIA - HEALTH AND HUMAN SERVICES AGENCY

COMPLAINT INVESTIGATION REPORT

CALIFORNIA DEPARTMENT OF SOCIAL SERVICES
COMMUNITY CARE LICENSING DIVISION
CCLD Regional Office, 1515 CLAY STREET, STE. 310
OAKLAND, CA 94612

This is an official report of an unannounced visit/investigation of a complaint received in our office on
02/16/2022 and conducted by Evaluator Jennifer Walden

PUBLIC

COMPLAINT CONTROL NUMBER: 15-AS-20220216085039

FACILITY NAME:	STONERIDGE CREEK PLEASANTON		FACILITY NUMBER:	019200474
ADMINISTRATOR:	EZEKIEL GRIFFIN		FACILITY TYPE:	740
ADDRESS:	3300 STONERIDGE CREEK WAY		TELEPHONE:	(925) 201-4000
CITY:	PLEASANTON	STATE: CA	ZIP CODE:	94588
CAPACITY:	828	CENSUS:	DATE:	07/14/2023
		UNANNOUNCED	TIME BEGAN:	08:31 AM
MET WITH:	Ezekiel Griffin, ED		TIME COMPLETED:	08:32 AM

ALLEGATION(S):

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Provider is deliberately overstating operating costs and under estimating revenue in the
budget, increasing NOI over budget
Provider and managing partner failed to keep minutes pertaining to decisions made.

INVESTIGATION FINDINGS:

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Complainant alleges that the Provider is deliberately overstating operating costs and under estimating revenue in the budget, increasing the Net Operating Income (NOI) over budget which is in violation of Health & Safety Code (H&SC) §1788(a)(22)(B) which states that “…changes in monthly care fees shall be based on projected costs, prior year per capita costs, and economic indicators.”, which in the complainant’s opinion excludes operating profits.

The Department interviewed Ezekiel Griffin, Executive Director -Stoneridge, on March 1, 2022 and March 9 and Warren Spieker, Managing Partner of Continuing Life, Inc. on December 14, 2022 and received and reviewed the following documents:

• PowerPoint presentations utilized at Budget planning meetings
• FYE 2021 Quarterly Financial statements
• Audited financial statements Statement of Operating Activities for the periods FYE 2019-2021
• FYE 2020 – 2023 Budget Presentation PowerPoints provided to compare.
• Form 7-1 Annual Report Instructions

Upon completion of review, it was observed that while the projections exceeded the actual revenue and expenses, the percentage of difference was reasonable, less than 4%. Additionally, the statutes do not dictate that a Provider must utilize a specific formula to project costs and revenues, it just states they must be based on projected costs, prior year per capita costs and economic indicators.

While projected the costs were more than the actual expenses and revenue, there is no indication that the costs/expenses were deliberately overestimated, nor the projected revenue understated.

The statutes do not state that a provider’s profit is disallowed by statutes determining the MCFI, however the Form 7-1 instructions do require the provider to explain how those funds will be used and or distributed. Therefore, the Department finds the allegation “unfounded” due to the satisfactory background information submitted to the Department and relayed to the residents during the budget planning meetings.

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Complainant alleges that the Provider and managing partner failed to keep minutes pertaining to decisions made that violates H&SC §1771.8(h) that requires, “… a provider shall maintain, as public information, minutes of the meetings held by the provider's governing body.”

The Department reviewed the statutes associated with the allegations and confirmed that due to the Provider being a Limited Liability Company, they do not have a governing body and therefore are not required to maintain minutes. 

The Department has determined that this allegation is “unfounded” due to lack of evidence identifying that the Provider held meetings with a governing body.

Unfounded

Estimated Days of Completion:

SUPERVISOR'S NAME: Allison Nakatomi	TELEPHONE: (916) 531-5336
LICENSING EVALUATOR NAME: Jennifer Walden	TELEPHONE: (916) 651-8148
LICENSING EVALUATOR SIGNATURE:	DATE: 07/14/2023

I acknowledge receipt of this form and understand my licensing appeal rights as explained and received.

FACILITY REPRESENTATIVE SIGNATURE:

DATE: 07/14/2023

This report must be available at Child Care and Group Home facilities for public review for 3 years.

LIC9099 (FAS) - (06/04)

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