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Health and Human Services Agency recommending the Board:
1) Make findings that the provision of California Work Opportunity and Responsibility to Kids Stage One Child Care administrative services provided by Catalyst Family, Inc. are in the public's best interest and that there are specialty skills, qualifications, and equipment not expressly identified in County classifications involved in the performance of the work in accordance Section 3.13.030 (B) of the El Dorado County Ordinance Chapter 3.13, Contracting Out;
2) Make findings in accordance with Procurement Policy C-17 Section 3.4.2(f) exempting the competitive bidding process, with Purchasing Agent concurrence, because the procurement is for services where the continuity of providers will provide efficiency or critical knowledge, and other providers of the services cannot provide similar efficiencies or critical knowledge;
3) Approve and authorize the Chair to sign Amendment II to Agreement 7658 with Catalyst Family, Inc., increasing the contract value by $1,947,787, for a new total amount of $3,547,787, and extend the term of the Agreement by an additional four months, for a revised term of February 27, 2024, through June 30, 2027; and
4) Authorize the Purchasing Agent to execute amendments relating to Agreement 7578, contingent upon approval by County Counsel and Risk Management, which do not increase the maximum dollar amount or term of the Agreement.
FUNDING: 100% State General Fund, leveraged on an annually adjusted basis by federal funds at the percentage established based on prior fiscal year caseload.
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DISCUSSION / BACKGROUND:
HHSA has historically administered the CalWORKs Stage One Child Care program, primarily due to funding structure/allocations. Recently, the California Department of Social Services re-structured funding methodologies and developed a distinct Stage One Child Care allocation which can no longer be leveraged to support expenditures in other CalWORKs allocations (i.e. CalWORKs eligibility, Welfare to Work [WTW], etc.). With the establishment of a stand-alone Stage One Child Care allocation, HHSA program and fiscal staff evaluated ongoing economic and operational feasibility of program administration and concluded leveraging the established expertise of Catalyst Family, Inc. would result in a reduction in administrative costs and likely improve outcomes for local childcare providers and families with children enrolled in childcare services.
Through Agreement 7658, Catalyst Family, Inc. provides CalWORKs Stage One Child Care Case Management for WTW participants referred by HHSA. Services include maintaining an updated list of childcare providers, enrolling and orienting participants, assisting with eligibility documentation, and ensuring compliance with program requirements. Catalyst Family, Inc. helps families access quality childcare, support license-exempt providers through the TrustLine process, and manage provider payments in accordance with Child Care Development Division guidelines. The agency also facilitates seamless transitions from Stage One to Stage Two when participants achieve program stability.
As the only Resource and Referral and Alternative Payment Program agency in El Dorado County, Catalyst Family, Inc. brings decades of experience, currently administering four Alternative Payment Programs and holding multiple state contracts since 1976. Its administration of Stage Two and Stage Three programs ensures centralized access for families, reducing barriers to WTW participation. Additionally, Catalyst Family, Inc.’s strong reputation has increased providers’ willingness to accept CalWORKs children, further enhancing childcare availability and program success.
Catalyst Family, Inc. Amendment II to Agreement 7658 increases the not-to-exceed amount of the contract, as the current maximum obligation has been expended quicker than anticipated. The increased usage of this contract resulted from the new funding structure, creating a separate, smaller, and more restrictive allocation for Stage One Child Care. HHSA can no longer offset costs with other CalWORKs funds, and added requirements have increased administrative complexity and expenses. Additionally, this amendment extends the term by four months to align the contract with the funding structure, which is fiscal year based. Extending the contract term ensures that funding and contract timelines are consistent and avoids gaps in program operations.
HHSA, with Purchasing Agent concurrence, is requesting the Board approve the non-competitive bid exemption for this Amendment II to Agreement 7658, per County's Procurement Policy C-17 Section 3.4.2(f), as Catalyst Family, Inc. will provide efficiency and critical knowledge of Child Care Case Management services, and other providers of the services cannot provide similar efficiencies or critical knowledge.
HHSA is recommending the Board approve this Amendment II to allow HHSA to continue using Catalyst Family, Inc. for cost-effective administration of CalWORKs Stage One Child Care services to ensure seamless access for families and compliance with state requirements throughout the extended term of the Agreement.
ALTERNATIVES:
Should the Board decline to approve this item, HHSA will be required to resume in-house administration of Stage One childcare. This means Employment Services and Fiscal staff will assume full responsibility for all case management and fiscal functions, eliminating any potential cost savings in administrative duties. Additionally, new regulations requiring the deduction of union dues from provider payments and subsequent remittance to the Child Care Providers Union (CCPU) would create significant operational challenges. Currently, there is no established process for CalSAWS counties to implement this requirement, adding further complexity and hardship.
PRIOR BOARD ACTION:
02/27/24, 23-1500, HHSA Catalyst C7658
OTHER DEPARTMENT / AGENCY INVOLVEMENT:
County Counsel, Human Resources, and Risk Management. The Auditor-Controller was notified per Policy B-12.
CAO RECOMMENDATION:
Approve as recommended.
FINANCIAL IMPACT:
There is no General Fund cost associated with this Agenda item. Sufficient appropriations were included in the Fiscal Year 2025-26 Budget and is included in the Fiscal Year 2026-27 Budget request.
CLERK OF THE BOARD FOLLOW UP ACTIONS
Clerk of the Board to obtain signature of Chair on one original Amendment II to Agreement 7658.
STRATEGIC PLAN COMPONENT:
N/A
CONTACT
Olivia Byron-Cooper, MPH, Director, Health and Human Services Agency