DEPARTMENT: Social Services-Housing & Community Resources
FILE TYPE: Consent Action
TITLE
title
Authorization To Execute Contract Amendment With Dakota Woodlands For Emergency Shelter Services For 2026 Allocation Of Minnesota Department of Human Service Cost-Neutral Transfer Funds
end
PURPOSE/ACTION REQUESTED
Authorize execution of contract amendment with Dakota Woodlands for emergency shelter services for the 2026 allocation of the Minnesota Department of Human Service (DHS) Cost-Neutral Transfer funds.
SUMMARY
Dakota Woodlands provides emergency shelter services to families with minor children. They receive several funding sources from Dakota County Social Services to help pay for these services. These funding sources include: county levy, Local Affordable Housing Aid (LAHA), and a portion of the Minnesota Department of Human Service (DHS) Cost-Neutral Transfer funds. Dakota Woodlands also receives funding from Dakota County Employment and Economic Assistance from Emergency Assistance. See Fiscal Impacts section for a summary of these funding sources for the 2026 county budget year. This Request for Board Action relates specifically to the DHS Cost-Neutral Transfer funds.
In 2021, Dakota County received approval from the Minnesota Department of Human Services (DHS) to create a cost-neutral transfer of Housing Support funds to Dakota County in the form of an annual allocation under the authority of Minn. Stat. 256I.05, subd. 11. By Resolution No. 19-038 (January 22, 2019), the Dakota County Board of Commissioners authorized the first agreement for the Cost-Neutral Transfer allocation. Dakota County receives a new transfer allocation amount in July of each year. This allocation provides funding for shelter services at Dakota Woodlands and the Dakota County Emergency Hotel Shelter. Contractors for housing services are selected via a competitive solicitation process every four years (Attachment: Solicitation Summary).
For the 2026 Cost-Neutral Transfer allocation, Dakota County will receive $979,926.33 for July 1, 2026 through June 30, 2027 to be allocated as follows:
• Indirect Administrative Expenses for Countywide Budget: $97,929.63 (10%)
• Dakota Woodlands: $385,909.00 (39.4%)
• Dakota County Emergency Hotel Shelter: $496,087.70 (50.6%)
Staff recommends Board authorization to execute a contract amendment with Dakota Woodlands to add the 2026 allocation of $385,909 to their existing contract for DHS Cost-Neutral Transfer funds. The new not to exceed amount will be $1,146,022 and the term of the contract will extend by one year and will be July 1, 2024 through June 30, 2027. Previous authorizations for this same contract exist in Resolution No. 24-317 (June 25, 2024) and Resolution No. 25-300 (June 24, 2025).
OUTCOMES
Data below reflects services provided at Dakota Woodlands in 2025, per the Dakota County Program and Services Inventory (PSI).
How Much?
• Family households served: 72
• Individuals served: 227
How Well?
• Percent people of color served: 59%
Is Anyone Better Off?
• Percent of households that obtained housing: 63.2%
RECOMMENDATION
Staff recommends Board authorization to execute a contract amendment with Dakota Woodlands to add the 2026 allocation of $385,909 to their existing contract for DHS Cost-Neutral Transfer allocation funds. The new not to exceed amount will be $1,146,022 and the term of the contract will extend by one year and will be July 1, 2024 through June 30, 2027.
EXPLANATION OF FISCAL/FTE IMPACTS
None.
This contract is funded utilizing DHS Cost Neutral Transfer funds and is included in the 2026 Social Services Budget and will be included in the 2027 County Manager’s Recommended Budget.
The following summarizes all funds from Dakota County Social Services to Dakota Woodlands for county budget year 2026:
|
Funding Source |
Total Approved Budget |
Available Budget |
|
County Levy |
$157,500 |
$106,969 |
|
LAHA |
$300,000 |
$224,953 |
|
DHS Cost-Neutral Transfer |
$385,909 |
$259,221 |
|
TOTAL SOCIAL SERVICES FUNDING TO DAKOTA WOODLANDS FOR 2026 |
$843,409 |
$591,143 |
☒ None ☐ Current budget ☐ Other
☐ Amendment Requested ☐ New FTE(s) requested
RESOLUTION
body
WHEREAS, Dakota Woodlands provides emergency shelter services to families with minor children; and
WHEREAS, they receive several funding sources from Dakota County Social Services to help pay for these services; and
WHEREAS, these funding sources include: county levy, Local Affordable Housing Aid (LAHA), and a portion of the Minnesota Department of Human Service (DHS) Cost-Neutral Transfer funds; and
WHEREAS, Dakota Woodlands also receives funding from Dakota County Employment and Economic Assistance from Emergency Assistance; and
WHEREAS, this Request for Board Action relates specifically to the DHS Cost-Neutral Transfer funds; and
WHEREAS, in 2021, Dakota County received approval from the Minnesota Department of Human Services (DHS) to create a cost-neutral transfer of Housing Support funds to Dakota County in the form of an annual allocation under the authority of Minn. Stat. 256I.05, subd. 11; and
WHEREAS, by Resolution No. 19-038 (January 22, 2019), the Dakota County Board of Commissioners authorized the first agreement for the Cost-Neutral Transfer allocation; and
WHEREAS, Dakota County receives a new transfer allocation amount in July of each year; and
WHEREAS, this allocation provides funding for shelter services at Dakota Woodlands and the Dakota County Emergency Hotel Shelter; and
WHEREAS, contractors for housing services are selected via a competitive solicitation process every four years; and
WHEREAS, for the 2026 Cost-Neutral Transfer allocation, Dakota County will receive $979,926.33 for July 1, 2026 through June 30, 2027 to be allocated as follows:
• Indirect Administrative Expenses for Countywide Budget: $97,929.63 (10%)
• Dakota Woodlands: $385,909.00 (39.4%)
• Dakota County Emergency Hotel Shelter: $496,087.70 (50.6%); and
WHEREAS, staff recommends Board authorization to execute a contract amendment with Dakota Woodlands to add the 2026 allocation of $385,909 to their existing contract for DHS Cost-Neutral Transfer funds; and
WHEREAS, the new not to exceed amount will be $1,146,022 and the term of the contract will extend by one year and will be July 1, 2024 through June 30, 2027; and
WHEREAS, previous authorizations for this same contract exist in Resolution No. 24-317 (June 25, 2024) and Resolution No. 25-300 (June 24, 2025).
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners hereby authorizes the County Manager, or delegate, to execute a contract amendment with Dakota Woodlands to add $385,909 to the current not to exceed contract amount of $760,112.40 for a new not to exceed amount of $1,146,022 and extend the term an additional year to June 30, 2027, subject to approval by the County Attorney’s Office as to form.
end
PREVIOUS BOARD ACTION
19-038; 01/22/19
24-317; 06/25/24
25-300; 06/24/25
ATTACHMENTS
Attachment: Solicitation Summary
BOARD GOALS
☒ Thriving People ☐ A Healthy Environment with Quality Natural Resources
☐ A Successful Place for Business and Jobs ☐ Excellence in Public Service
CONTACTS
Department Head: Emily Schug
Author: Madeline Kastler