DEPARTMENT: Social Services-Adult Services
FILE TYPE: Consent Action
TITLE
title
Authorization To Execute Contracts For Adult Mental Health Services
end
PURPOSE/ACTION REQUESTED
Authorize execution of contracts for adult mental health (AMH) services.
SUMMARY
Dakota County’s mental health system complies with requirements of the Minnesota Comprehensive Adult Mental Health Services Act (Act). Minn. Stat. § 245.641 to 245.486 establishes standard mental health services for Minnesota. The Act obligates county boards to develop and coordinate a system of affordable and locally available adult mental health services. Dakota County delivers these mandated services both directly and through purchased services. Funding for purchased services comes from state grants, health plans, and county levy (payor of last resort). Additionally, Minn. Stat. Chapter 253B (Civil Commitment Act) obligates counties to certain duties, including payments to facilities for involuntary and commitment holds.
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.
The Individual Placement and Support Employment Services (IPS) is funded fully by the Adult Mental Health Grant and/or Community Support Program Grant. The Intensive Residential Treatment Service (IRTS) and Crisis Residential Services (CRS) receive partial funding ($60,000) from the State Adult Mental Health Initiative Grant and/or Community Support Program Grant, with the remaining funded by county levy. County levy is the payor of last resort for situations in which IRTS is the most cost-effective and clinically appropriate service option. Need for county levy or grant funding varies based on presenting needs and situations.
IPS payments are based on approved budget (see Attachment: IPS Budget). The IRTS and CRS cost-based per diem rates are set by the Department of Human Services (DHS) for each Fiscal Year (FY). Guild’s program rates for the last three FYs are as follows: FY2023, $452.40; FY2024, $539.08; and FY2025 is $539.08. Expenses for Guild for county-paid IRTS and CRS in CY 2024 was $84,331. The total budget for the IRTS and CRS service line in CY 2024 was $89,276. Total CY 2025 spending is $124,273, with pending recoveries from health insurance. Expenses for county-funded IRTS and CRS is variable and often offsets higher costs in other, related budget lines, such as county share for regional treatment centers.
Staff recommends a two-year contract with Guild for the following services: IPS, IRTS and CRS for a two-year term.
OUTCOMES
How much?
• Guild IRTS had a total of 74 admissions year to date in 2025
• Guild CRS had a total of 198 admissions in 2024
• Guild’s IPS program served 169 in 2024
How well? The County’s relationship with each contracted provider is sustained through frequent meetings and consultation. Staff provides ongoing analysis of performance and quality measures, including compliance with State licensing requirements (IRTS and CRS) and Department of Human Services quality review processes.
Is anyone better off? Contracted mental health services provide access to a continuum of community-based services that enable people with mental illness to access needed services in the community as an alternative to accessing higher levels of care. In 2024, 98 percent of individuals who participated in IRTS were not hospitalized for psychiatric reasons in an acute facility. Target was 90 percent.
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, 2026 through December 31, 2027.
end
EXPLANATION OF FISCAL/FTE IMPACTS
Funding for these contracts is included in the 2026 County Manager’s Recommended Budget. All contracts shall contain a provision that allows the County to terminate the contracts immediately in the event sufficient funds from county, state, or federal sources are no longer available at a level sufficient to continue services.
☐ None ☐ Current budget ☒ Other
☐ Amendment Requested ☐ New FTE(s) requested
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 AMH services in Minnesota; and
WHEREAS, it is 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. § 245.641 to 245.486; and
WHEREAS, Dakota County delivers these mandated services both directly and through purchased services; and
WHEREAS, funding for purchased services comes from state grants, health plans, and county levy (payor of last resort); and
WHEREAS, additionally, Minn. Stat. Chapter 253B (Civil Commitment Act) obligates counties to certain duties, including payments to facilities for involuntary and commitment holds; 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, the Individual Placement and Support Employment Services (IPS) is funded fully by the Adult Mental Health Grant and/or Community Support Program Grant; and
WHEREAS, the Intensive Residential Treatment Service (IRTS) and Crisis Residential Services (CRS) receive partial funding ($60,000) from the Adult Mental Health Grant and/or Community Support Program Grant, with the remaining funded by county levy; and
WHEREAS, staff recommends a two-year contract with Guild for the following services: Individual Placement and Support Employment Services (IPS), Intensive Residential Treatment Service (IRTS), and Crisis Residential Services (CRS) for a two-year term.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners hereby authorizes the Community Services Director to execute contracts for adult mental health services for the period of January 1, 2026 through December 31, 2027, subject to approval by the County Attorney’s Office as to form as follows:
Type of Service: Individual Placement and Support Employment Services
Provider:
1. Guild
Unit Rate:
1. Not to exceed $389,328 for the two-year term, see attached exhibit for specific rates (Attachment: Exhibit 5 Payments)
Type of Service: Intensive Residential Treatment Services and Crisis Residential Services
Provider:
1. Guild
Unit Rate:
1. Services paid at Department of Human Services rate, as of today per diem rate set at $539.08
; and
BE IT FURTHER RESOLVED, That the Community Services Director is hereby authorized to amend said contracts, consistent with the amount budgeted, to alter the contracts amount and the contracts term up to one year after initial expiration date, consistent with County contracting policies, subject to approval by the County Attorney’s Office as to form; and
BE IT FURTHER RESOLVED, That the contracts shall contain a provision that allows the County to immediately terminate the contracts in the event sufficient funds from county, state, or federal sources are not appropriated at a level sufficient to allow payment of the amounts due.
end
PREVIOUS BOARD ACTION
21-492; 10/19/21
23-473; 10/24/23
ATTACHMENTS
Attachment: IPS Budget
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: Emily Schug