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HomeMy WebLinkAboutLR California State Preschool Program Continued Funding Application and Renewal of Contract for Fiscal Year 2026-27____________________________________________________________________________________ FOR CITY CLERK ONLY Council Meeting: October 20, 2025 Disposition: Resolution 15466 Agenda Item No: 5.c Meeting Date: October 20, 2025 SAN RAFAEL CITY COUNCIL AGENDA REPORT Department: Library and Recreation Prepared by: Craig Veramay, Assistant Library & Recreation Director, and Gabriela Farias, Senior Recreation Supervisor City Manager Approval: ______________ TOPIC: CALIFORNIA STATE PRESCHOOL PROGRAM CONTINUED FUNDING APPLICATION AND RENEWAL OF CONTRACT FOR FISCAL YEAR 2026-27 SUBJECT: RESOLUTION AUTHORIZING THE CITY OF SAN RAFAEL TO APPLY FOR CONTINUED FUNDING AND RENEWAL OF CALIFORNIA STATE PRESCHOOL PROGRAM CONTRACT WITH THE CALIFORNIA DEPARTMENT OF EDUCATION AND DESIGNATING AUTHORIZED REPRESENTATIVES AS SIGNATORIES FOR RELATED CONTRACT DOCUMENTS RECOMMENDATION: Staff recommends that the City Council adopt a resolution authorizing: 1.The City of San Rafael to submit the Continued Funding Application (CFA) to the California Department of Education (CDE) to renew an existing contract to provide California State Preschool Program (CSPP) services for Fiscal Year 2026-27; and 2.The City Manager to designate the Library and Recreation Director, Assistant Library and Recreation Director, and Senior Recreation Supervisor for Childcare Programs as authorized representatives of the City to sign the CFA and all related contract documents for Fiscal Year 2026-27. BACKGROUND: Assembly Bill 2759 (Chapter 308, Statutes of 2008) created the California State Preschool Program (CSPP). This program consolidated the funding for preschool, pre-kindergarten, family literacy, and general childcare center-based programs serving eligible three- and four-year-old children to create the CSPP. The City of San Rafael has operated the Pickleweed Preschool Program, which is located at 40 Canal Street adjacent to the Boro Community Center and Pickleweed Park, since 1997. The Pickleweed Preschool program is a 100% subsidized program that serves 68 income-eligible children and families by providing part-day preschool programs that include a core class curriculum that is developmentally, SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2 culturally, and linguistically appropriate for the children served. The program also provides meals and snacks to children, parent education, referrals to health and social services for families, and staff development opportunities to employees. The City of San Rafael administers this program, and partners with other local agencies, colleges, community-action agencies, and private nonprofit agencies to provide supplemental services. Pickleweed Preschool relies on the renewal of the CSPP contract as a primary source of funding to provide these services. The preschool is designed to facilitate the transition to kindergarten for three- year-old and four-year-old children. Each child is given the opportunity to prepare and develop at their own pace under the supervision and care of City childcare staff. Each year, the program establishes goals for each child to build a foundation of skills needed to succeed in their future schooling and society. The City Council previously approved CSPP grant funding for the Pickleweed Preschool at its October 21, 2024 meeting. ANALYSIS: The City of San Rafael has had an existing agreement with the California Department of Education (CDE) to operate the Pickleweed Preschool as a CSPP contractor since 1997. Contractors holding a current CSPP contract who wish to be considered for continued funding for Fiscal Year (FY) 2026-27 must complete a Continuation of Funding Application (CFA). Contractors who apply for and are approved for continued funding do not need to sign a contract with the California Department of Education to provide CSPP services for FY 2026–27. Contracts will be automatically renewed in accordance with all applicable federal and state laws and contract terms and conditions. By authorizing the CFA, the City is indicating that it wishes to automatically renew its contract for FY 2026–27 and accepts all the terms and conditions of the 2026–27 CSPP contract, which will be provided to the City no later than June 1, 2026. Contractors have no vested right to a subsequent contract. Completion of this CFA does not guarantee a renewal of funding. If the CDE determines our agency will not be renewed for a subsequent contract year, we will be notified in writing no later than Ap ril 7, 2026, pursuant to the California Code of Regulations, Title 5 (5 CCR) Section 17828. City staff recommend authorizing the CFA and renewing our CSPP contract to continue providing this incredibly valuable program. This funding is essential for the City to continue providing preschool services at Pickleweed Preschool. Historically, the CSPP contract award has not covered all expenses associated with operating Pickleweed Preschool. Annually, the California Department of Education establishes Maximum Reimbursable Amounts (MRA) for contractors based on the number of children enrolled in the program, federal and state laws, and the Contract Terms and Conditions. For FY 2026-27, the Maximum Reimbursable Amount for the City is $574,809, representing 81.5% of the expected operating expenses of the program for FY 2026-27. This represents a $44,283 increase in funding from FY 2025-26, when the City received $530,526, which covered 77% of operating expenses. In FY 2024-25, CDE provided $466,229 of funding. In addition to CSPP funding, in recent years CDE has also provided the City with supplemental one-time ‘Cost of Care’ disbursements outside the CSPP contract. However, CDE hasn’t confirmed whether one- time Cost of Care disbursements will be available in FY 2026-27. In addition to CSPP funding, the City has also received Marin Childcare Council Safety Net grant funds and Community Development Block Grant funding supporting this program. SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3 Despite forecasting a budget shortfall within the Pickleweed Preschool Fund (Fund 260) the last three years, the City has received sufficient funding through the combination of CSPP, Cost of Care disbursements, and other grant funding, to cover all operating expenses annually. Staff expect a similar outcome in FY 2026-27; however, the City has sufficient Fund Balance in Fund 260 to support operations during FY 2026-27 in the event of a shortfall. City staff continue to actively pursue additional funding sources to supplement the CSPP grant and other funding. FISCAL IMPACT: The following table provides a summary of the projected revenue sources supporting the Pickleweed Preschool Program budget in FY 2026-27: Pickleweed Preschool (Fund 260) Program Budget Revenue Sources: FY26-27 (projected) California Department of Education State Preschool Program (CSPP) $574,809 Marin Child Care Council Safety Net Grant $16,000 Community Development Block Grant (CDBG) $19,397 Use of Available Fund Balance $94,618 Total Revenue & Available Fund Balance $704,824 Expenditures: Personnel $650,784 Non-Personnel $54,040 Total Expenditures: $704,824 OPTIONS: The City Council has the following options to consider on this matter: 1.Adopt the resolution as proposed to authorize the City to apply for continued funding and renewal of our agreement with the California Department of Education as a CSPP contractor for Fiscal Year 2026-27. 2.Do not adopt the resolution, resulting in the City declining the opportunity to receive a grant from the California Department of Education. RECOMMENDED ACTION: Staff recommends that the City Council adopt a resolution authorizing: 1.The City of San Rafael to submit the Continued Funding Application (CFA) to the California Department of Education (CDE) to renew an existing contract to provide California State Preschool Program (CSPP) services for Fiscal Year 2026-27; and 2.The City Manager to designate the Library and Recreation Director, Assistant Library and Recreation Director, and Senior Recreation Supervisor for Childcare Programs as authorized representatives of the City to sign the CFA and all related contract documents for Fiscal Year 2026-27. ATTACHMENTS: 1.Resolution SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 4 2.Continued Funding Application Fiscal Year 2026-27 California Department of Education EED-3704 Early Education Division CFA FY 2026–27 Page 1 Fiscal Year 2026–27 Continued Funding Application DUE DATE: 5:00p.m. November 14, 2025 Contractors holding a current California State Preschool Program (CSPP) contract, and if applicable a Prekindergarten and Family Literacy Support (CPKS) contract, who wish to be considered for continued funding, for fiscal year (FY) 2026–27 must complete this application for continued funding. The FY 2026–27 CFA Overview and Instructions may be accessed on the CFA web page. Contractors are strongly encouraged to review the CFA Overview and Instructions before and after completion of the CFA and associated documents to confirm that the application and forms submitted for their agency have been completed in accordance with all applicable instructions. Contractors who apply for and are approved for continued funding do not need to sign a contract with the California Department of Education (CDE) to provide CSPP and CPKS services for FY 2026–27. Contracts will be automatically renewed in accordance with all applicable federal and state laws and contract terms and conditions (CT&C). By signing this CFA, the contractor is indicating that it wishes to automatically renew its contract(s) for FY 2026–27 and accepts all of the terms and conditions of the 2026–27 CSPP contract, and if applicable the 2026–27 CPKS contract, which will be provided to the contractor no later than June 1, 2026. Upon completion of this CFA, the CDE will review the application and may contact your agency seeking additional information. If the CFA is returned to the CDE in a timely manner but is not fully and accurately completed, funding for FY 2026–27, if approved, may be delayed. Please also note that contractors have no vested right to a subsequent contract. Completion of this CFA does not guarantee a renewal of funding. If the CDE determines your agency will not be renewed for a subsequent contract year, you will be notified in writing no later than April 7, 2026, pursuant to the California Code of Regulations, Title 5 (5 CCR) Section 17828. Contractors that wish to reject the terms of the FY 2026–27 CSPP and/or CPKS contract must provide the CDE with written notice that the terms of the contract(s) are rejected by emailing EarlyEducationContracts@cde.ca.gov on or before June 30, 2026. The email should come from the Executive Director/Superintendent of the contracting entity or their authorized representative and state that the terms of the FY 2026–27 CSPP and, as applicable, the CPKS contract are rejected. Contractors providing such notice to the CDE of the rejection of the terms of the contract will not have contract(s) in effect for FY 2026–27. Contractors cannot reject their CSPP contract and still receive funding under a CPKS contract since CPKS funding is tied to having a CSPP contract. If no notice of rejection is sent to the CDE and the CFA is approved, the contract will be automatically renewed, and no further action will be required from the contractor. If a contractor wishes to terminate the contract for any reason during the FY 2026–27 contract term, the contractor shall notify the CDE of its intent to terminate the contract at least 90 calendar days in advance of contract termination and shall follow 5 CCR 17795. If you have any questions regarding the CFA, please contact CFA@cde.ca.gov. California Department of Education EED-3704 Early Education Division CFA FY 2026–27 Page 2 Section I – Contractor Information Contractor Legal Name: City of San Rafael Contractor “Doing Business As” (DBA) Name: Vendor Number: 2193 Headquartered County: Marin Legal Business Address: 1400 Fifth Avenue, San Rafael, 94901 Mailing Address (if different from above): 618 B Street, San Rafael, CA 94901 Executive Director Name: Cristine Alilovich Executive Director Telephone: (415)485-3384 Executive Director Email Address: cristine.alilovich@cityofsanrafael.org To update Contractor Information above, log in to the Child Development Management Information System (CDMIS) and follow these instructions: Update Agency Information. Section II – Contract and Program Type Contractor agrees to continue to administer the following programs with funds provided by the California Department of Education (CDE) for Fiscal Year 2026–27. Contract Type(s): CSPP Program Type(s): Part-Day/Part-Year Minimum Days of Operation (MDO): 175 Subcontractor(s): No License Exemption: No To request a change to Program Type(s), MDO, or other programmatic details, download and complete the Program Narrative Change form and return it with this CFA. Subcontractors and License Exemption must be renewed annually, if applicable. EED-3704 CFA FY 2026–27 California Department of Education Early Education Division Page 3 Section III – Contractor Certification Under penalty of perjury, I certify the following statements as true and correct to the best of my knowledge:  I have read and understand the staffing requirements for Program Director, Site Supervisor, and Teacher. All staff employed by the contractor for the provision of preschool services are fully qualified for their respective positions. The exception to this certification is a person employed as Program Director or Site Supervisor who possesses a current Staffing Qualifications Waiver approved by the Early Education Division.  I am authorized by the contractor’s Board of Directors or other governing authority to execute this CFA, signifying their intent to automatically renew the current CSPP contract, and CPKS contract if applicable, for FY 2026–27, under new terms and conditions to be established by the CDE, unless rejected in writing prior to the effective date of the new contract(s) on June 30, 2026.  On behalf of the contractor and its governing authority, I understand that some information requested in this CFA is intended for use by CDE auditors in connection with future audit work and performance reviews and may not be used, reviewed, or considered by the CDE until after the contract has expired, if ever. Therefore, the contractor further understands that the information (and any underlying transactions) disclosed by this CFA shall not be considered properly noticed to the CDE, nor approved, accepted, or authorized by the CDE, even if the contractor’s request for continued funding by the CDE is subsequently approved.  The governing board members or persons with governing authority have been trained in understanding conflict of interest requirements associated with their positions on the board and have reported all known conflicts of interest.  As the signer of this CFA, I have supervisory authority over the CSPP and have knowledge of the information provided in this CFA. I am familiar with and will ensure that the contractor complies with all applicable program statutes and regulations in effect for FY 2026–27, including but not limited to: o Subcontracting requirements, including competitive bidding, CDE approval, and audit requirements in 5 CCR. I certify that any contractual arrangement(s) with subcontractors are made in adherence to the required subcontract provisions contained in the California Education Code (EC), 5 CCR, and the CT&C. As the contractor, it is my responsibility to monitor the performance of the subcontractor to ensure services are provided appropriately through the entire contract term and that the contractor is ultimately responsible for the actions of any subcontractor. o Prohibitions on conflicts of interests, including (i) the assurances required to establish that transactions with officers, directors and other related party transactions are conducted at arm’s length, and (ii) employment limitations stated in EC. o Cost reimbursement requirements, including reimbursable and non-reimbursable costs, documentation requirements, the provisions for determining the reimbursable amount EED-3704 CFA FY 2026–27 California Department of Education Early Education Division Page 4 and other provisions in 5 CCR, and accounting and reporting requirements in 5 CCR. o Operational and programmatic requirements. o Personnel requirements as stipulated in EC 5 CCR, and the CT&C.  As the authorized representative of the CSPP contractor named in this application, I certify that: o I have reviewed all information for my agency and, to the best of my knowledge, the information on the CDMIS website reflects accurate information for my agency as of the date this certification is signed. o I understand my obligation as a CSPP contractor to ensure the accuracy of information in CDMIS on an ongoing basis and will update the information in CDMIS as needed throughout the contract period. By signing this CFA, the contractor is indicating that it wishes to automatically renew the current contract for FY 2026–27 and, if approved, is willing to, and does accept, all terms and conditions of the CSPP contract, which will be provided to the contractor no later than June 1, 2026. The contractor may reject the FY 2026–27 contract by providing the CDE with a written notice of rejection no later than June 30, 2026. Contractors that wish to reject the terms of the FY 2026–27 contract must provide written notice that the terms of the contract are rejected by emailing EarlyEducationContracts@cde.ca.gov on or before June 30, 2026. The email should come from the Executive Director/Superintendent of the contracting entity or their authorized representative and state that the terms of the FY 2026–27 CSPP contract, and CPKS contract if applicable, are rejected. Contractors providing such notice to the CDE of the rejection of the terms of the contract(s) will not have a contract(s) in effect for FY 2026–27. I understand that failure to timely reject the terms of the contract means that the contract may be automatically renewed for FY 2026–27 starting on July 1, 2026. As the authorized representative of the contractor named in this application, I certify that I have reviewed all the information provided in this application, and in all accompanying forms, and I hereby attest that the information provided is true and correct to the best of my knowledge as of the date this certification is signed. Printed Name of the Contractor’s Authorized Representative: Title of the Contractor’s Authorized Representative: Signature of the Contractor's Authorized Representative: Date of Signature: California Department of Education Early Education Division EED-3704 CFA FY 2026–27 Page 5 Required Attachments Public Agency Non-Public Agency Check if Included  CSPP Program Calendar(s) (EED 9730) Yes Yes ☐  California Civil Rights Laws Certification (CO-005) Yes Yes ☐ Contractor Certification Clauses (CCC) Yes Yes ☐ Federal Certification (CO.8) Yes Yes ☐ CDMIS Agency Information Certification Yes Yes ☐ State of California, Payee Data Record (STD. 204) No Yes ☐  Payee Data Record Supplement (STD. 205) No Required only if payment address differs from mailing address on STD. 204 ☐  Secretary of State certification or search results No Yes ☐  Verification of LEA Name and Address: Information page printed from California School Directory web page or California Community College Chancellor’s web page, as applicable LEAs only No ☐  Program Narrative Change (EED 3704A) Required only if requesting changes Required only if requesting changes ☐  Subcontract Certification (EED 3704B) Required only if subcontracting Required only if subcontracting ☐  Contractor’s Officers and Board of Directors Information No Yes ☐  Authorizing Board Resolution Yes As applicable ☐  Application for License Exemption Required only from LEAs applying to renew exemption from licensure pursuant to Health & Safety Code Section 1596.792(o). No ☐