DEPARTMENT: Social Services-Mental Health & Substance Use Services
FILE TYPE: Regular Action
TITLE
title
Update And Authorization To Execute Contracts For Adult Mental Health Services
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RESOLUTION
body
WHEREAS, Dakota County’s mental health system complies with the requirements of the Minnesota Comprehensive Adult Mental Health Services Act (Act); and
WHEREAS, the Act establishes basic standards for adult mental health services in Minnesota, primarily directed at counties, which are designated as local mental health authorities; and
WHEREAS, the Act obligates county boards to develop and coordinate a system of affordable and locally available adult mental health services in accordance with Minn. Stat. § 245.461 to § 245.486; and
WHEREAS, Dakota County delivers these mandated services both directly and through purchased services; and
WHEREAS, by Resolution No. 23-473 (October 24, 2023), the Dakota County Board of Commissioners authorized contracts for mental health services for the period of January 1, 2024 through December 31, 2025; and
WHEREAS, each contract for services includes a service grid that defines the services, target population, outcomes to be achieved, reporting requirements, funding source(s), and unit rate(s) for each service; and
WHEREAS, for some services, rates are tied directly to those established by the Minnesota Department of Human Services for Medical Assistance reimbursement; and
WHEREAS, when there is a third-party payer, providers are required to access health coverage and the County is the payer of last resort; and
WHEREAS, many services have multiple funding sources; and
WHEREAS, Request for Proposals (RFP) were issued on June 1, 2026, for Targeted Case Management (TCM) and June 15, 2026, for Mental Health Clinic Services; and
WHEREAS, a review committee from Social Services reviewed and scored proposals.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners hereby authorizes the County Manager, or delegate, to execute contracts for mental health services for the period of January 1, 2027 through December 31, 2028, subject to approval by the County Attorney’s Office as to form, as follows:
1. Type of Services: Mental Health Clinic Services
a. Provider:
i. Associated Clinic of Psychology, Inc. (ACP)
b. Unit Rates:
i. Not to Exceed (NTE) per contracted provider is $200,000 per year for a two-year contract
ii. Pre-paid Psychiatric Services at Clinic Sites are for 13 hours/week or a total of 676 hours for one calendar year with a NTE of $169,000 per calendar year for a two-year contract
iii. Fee-For-Service Outpatient Psychiatry provided at clinic sites billed at the Medical Assistance Rate for psychiatry and diagnostic assessments with a NTE of $15,000 per calendar year for a two-year contract
iv. Contracts will include 8% indirect for costs associated with rendering services
2. Type of Service: Targeted Case Management
a. Providers:
i. Guild
ii. Mental Health Resources, Inc. (MHR)
iii. People Incorporated
iv. Gateway Health Services Inc.
v. Residential Transitions, Inc.
vi. Touchstone Mental Health Services
vii. TASKS Unlimited Mental Health Services
b. Unit Rates:
i. Total NTE for Targeted Case Management Services is $700,000 per calendar year for two-year contracts
ii. Department of Human Services (DHS) approved rate
iii. NTE based on uncompensated care to qualifying individuals based on DHS set subcontractor rate
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BACKGROUND
The Social Services Department provides both in-house and contracted services across the mental health continuum. Dakota County’s mental health system complies with the requirements of the Minnesota Comprehensive Adult Mental Health Services Act (Act).
Contracted services include Mental Health Clinic Services for Psychiatry, Targeted Case Management, and Community Support Programs. To ensure continued high-quality services, Dakota County conducts a routine Request for Proposal (RFP) process (Attachment: Adult Mental Health Contract Summary).
By Resolution No. 23-473 (October 24, 2023), the Dakota County Board of Commissioners authorized contracts for mental health services for the period of January 1, 2022 through December 31, 2025. In 2026 contracts were amended to extend through 2026 to better align timelines with state allocations. Each contract for services includes a service grid that defines the services, target population, outcomes to be achieved, reporting requirements, funding source(s), and unit rate(s) for each service. For some services, rates are tied directly to those established by the Minnesota Department of Human Services (DHS) for Medical Assistance reimbursement. When there is a third-party payer, providers are required to access health coverage, and the County is the payer of last resort. Many services have multiple funding sources. Social Services staff will be doing a short presentation on the requested services.
RECOMMENDATION
recommendation
Staff recommends authorization to execute Adult Mental Health service contracts with the providers at the contract amounts and rates listed in the Resolution for the period of January 1, 2027 through December 31, 2028.
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FINANCIAL AND STAFFING IMPACTS
Funding for these contracts will be included in the 2027 County Manager’s Recommended Budget.
|
Fund |
Department |
Program |
Funding Source |
2026 Adopted Budget |
2027 Recommended Budget |
|
General Fund |
Social Services-Adult Mental Health |
Adult Residential |
Adult Mental Health Initiative Grant/Levy |
$90,000 |
$90,000 |
|
General Fund |
Social Services-Adult Mental Health |
Mental Health Community Living |
Adult Mental Health Initiative Grant/Levy |
$1,369,795 |
$204,632 |
|
General Fund |
Social Services-Adult Mental Health |
Community Support Program Services |
Community Support Program Services Grant |
$1,881.958 |
$1,304,081 |
|
General Fund |
Social Services-Adult Mental Health |
Mental Health Clinic Services |
Levy |
$507,000 |
$467,000 |
|
Total |
(N/A) |
(N/A) |
(N/A) |
$3,848,753 |
$2,065,713 |
PREVIOUS BOARD ACTION
23-473; 10/24/23
ATTACHMENTS
Attachment: Adult Mental Health Contract Summary
Attachment: Presentation Slides
CONTACTS
Department Director: Emily Schug
Author: Ericka Hammer