Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Claire Cunningham, Director, Human Services Agency
Subject: Child Care Coordinating Council - Amendment to Increase Funding for SB140 Transitional Provider Subsidy and Cost of Care Plus Rate Payment
RECOMMENDATION:
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Adopt a resolution authorizing a second amendment to the Agreement with Child Care Coordinating Council of San Mateo, Inc to increase funding by $702,796 in an amount not to exceed $1,310,000 to increase Cost of Care Plus Rate Payment funding, in alignment with recent directives issued by the California Department of Social Services.
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BACKGROUND:
Child Care Coordinating Council (4Cs) is the state-permitted resource and referral agency and designated Alternative Payment Provider (APP), and is the only agency in San Mateo County (other than HSA) recognized by the State Department of Education (DOE) as qualified to administer state funded child care programs. This recognition from the state allows 4Cs to have a coordinated continuum of care payment program.
On June 25, 2024, this Board through Resolution No. 080543 waived the Request for Proposals (RFP) process and authorized an agreement with Child Care Coordinating Council of San Mateo, Inc. to administer Transitional Provider Subsidy and Cost of Care Plus Rate Payment for a term of May 1, 2024 through June 30, 2025, in an amount not to exceed $582,204, and authorized the Director of the Human Services Agency to execute contract amendments which modify the County’s maximum fiscal obligation by no more than $25,000 (in aggregate), and/or modify the contract and/or services so long as the modified term or services is/ are within the current or revised fiscal provisions.
On June 23, 2025, Human Services Agency amended the Agreement to increase funding by $25,000 for a new total obligation of $607,204 and extended the term through June 30, 2026.
DISCUSSION:
The parties wish to amend the Agreement to increase funding by $702,796 for a new total obligation of $1,310,000 and extend the term through July 31, 2026 to increase Transitional Provider Subsidy and Cost of Care Plus Rate Payment funding, as directed by the CDSS. This amendment is necessary to provide additional funding for the Cost of Care Plus Rate Payments, in alignment with recent directives issued by California Department of Social Services (CDSS).
Pursuant to Child Care Bulletin (CCB) 23-27 and Senate Bill 140 (SB 140), the Cost of Care Plus Rate payments were originally scheduled to conclude with the service month of May 2025. As of June 27, 2025, CDSS CCB Division issued updated guidance extending payments through Fiscal Year 2025-26. These payments are being distributed via warrants issued by the California State Controller’s Office.
This amendment also reconciles differences between previously projected and actual award amounts. In both the initial Agreement and the prior amendment, the award amounts actually received exceeded the projected amounts at the time of contract drafting. The current amendment reflects the actual awards received for FY 2024-25 and includes a projection of anticipated awards for FY 2025-26. Award amounts remain subject to change and will be communicated through subsequent CDSS CCB communications.
This resolution has been reviewed and approved by the County Attorney as to form.
PERFORMANCE MEASURE:
|
Measure |
FY 2024-25 Actual |
FY 2025-26 Anticipated |
|
Percent of payments distributed to eligible providers |
100% |
95% |
|
Percent of monthly cost of care payments distributed to eligible providers |
100% |
100% |
COMMUNITY IMPACT:
This agreement will support low-income families by allocating supplemental funding to childcare providers, enabling them to offer quality care and reducing childcare-related barriers to sustained employment and self-sufficiency.
FISCAL IMPACT:
The term of this amended Agreement is May 1, 2024 through July 31, 2026. The total obligation of this Agreement is being increased by $702,796 to a new total of $1,310,000. Funding for the Agreement is provided by the state under SB 140. Budgetary appropriation for this Agreement is included in the FY 2025-26 Recommended Budget. There is no Net County Cost associated with this agreement.