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Informational Report for the California Department of Social Services Child Care Grant <br />September 16, 2025 <br />Page 4 <br />5 <br />3 <br />3 <br />9 <br />by the program and, if the state ceased to provide funding for the program, the City would <br />be required to honor the agreed-to services for families without state reimbursement. <br />Award Relinquishment <br />On May 2, 2025, at the direction of City Management, PRCSA staff issued an award <br />relinquishment letter to CDSS (Exhibit 4). The City had not yet spent any of the funding <br />award. The decision was based on the City’s lack of preparation to meet the May 12, <br />2025 deadline, the City’s lack of experience and resources to comply with regulations, <br />the risk associated with relying on a single new employee to ensure program compliance, <br />the potentially significant capital improvements necessary for facilities, the potential need <br />to operate the program without reimbursements, and the City’s financial outlook with the <br />impending decrease of local sales tax. The City Manager apprised the City Council of <br />the relinquishment during individual meetings with each City Council Member. <br />ENVIRONMENTAL IMPACT <br />There is no environmental impact associated with this action. <br />FISCAL IMPACT <br />There is no fiscal impact associated with the recommendation. <br /> <br />EXHIBIT(S) <br />1. November 19, 2024 City Council agenda item to accept the CDSS award <br />2. CDSS Funding Terms and Conditions <br />3. Initial Application for Funding <br />4. Award Relinquishment Letter <br />Submitted By: Kathryn Downs, Assistant City Manager <br />Approved By: Alvaro Nuñez, City Manager