DEPARTMENT: Social Services
FILE TYPE: Consent Action
TITLE
title
Authorization To Accept Additional Funds For Regional Behavioral Health Crisis And Recovery Center Project And Execute Grant Agreement With State Of Minnesota
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PURPOSE/ACTION REQUESTED
Authorize acceptance of funding up to $5,000,000 for a project with the Minnesota Department of Human Services (DHS) and Guild to design, construct, furnish, and equip a behavioral health crisis and recovery center and execution of the grant agreement with the State of Minnesota (State).
SUMMARY
On May 17, 2021, DHS, through its Behavioral Health Division, issued a Request for Proposals (RFP) from qualified responders, which included counties, to design, construct or rehabilitate, furnish and equip facilities for regional behavioral health crisis centers to provide mental health services. The term of any resulting contract was anticipated to be from October 22, 2020 to December 31, 2024. Proposals were to be submitted by August 6, 2021.
By Resolution No. 21-387 (July 20, 2021), the Dakota County Board of Commissioners authorized the Community Services Director to submit, in partnership with Guild, a proposal to DHS in an amount up to $5,000,0000.
On August 4, 2021, Community Services submitted the completed proposal to DHS. The proposal was developed in partnership with Capital Project Management (CPM) and Guild.
On November 10, 2021, DHS communicated it had selected Dakota County as a successful applicant, with $3,459,928 available for possible State bond funding of this project contingent on Dakota County agreeing that the grant amount is sufficient to complement the total funding of construction of the facility, and assurance that completion of required zoning and public ownership processes can be completed by December 31, 2024. At the February 8, 2022, Community Services Committee of the Whole (CSCW) meeting, staff were asked to explore alternative site options for the behavioral health crisis and recovery center.
By Resolution No. 22-095 (March 8, 2022), the Dakota County Board of Commissioners authorized the Community Services Director to proceed, in partnership with Guild, in accepting funds and complying with requirements of the Minnesota constitution regarding proper use of State bonding proceeds of DHS for an amount up to $3,459,928; authorized the County to request additional funding from the legislature; agreed to leverage American Rescue Plan or other County funds to fill any remaining funding gaps between State bonding funds, additional State appropriations, other funding sources and total costs for the balance of the design, construction and furnishing costs for the project; and requested Community Services provide regular updates on the project and prepare Request for Board Action for additional funding or costs necessary to facilitate deliverables.
After working with West St. Paul city staff, it was decided a portion of the Northern Services site would work best for this project. Physical Development staff worked with a design consultant to complete a preliminary space program, site test fit, and cost estimate. The pre-design work was then presented to the Board at the Physical Development Committee. The Board then approved the project to move forward into design by Resolution No. 22-254 (June 21, 2022).
Following this approval, by Resolution No. 22-306 (July 19, 2022), the Dakota County Board of Commissioners authorized a contract with Wold Architects and Engineers (Wold), who was selected, through a Request for Proposals process, for professional design services.
Simultaneous with preliminary schematic design efforts, Wold prepared supporting documents to accompany application to the City of West St. Paul for a conditional use permit. The West St. Paul City Council is expected to act on the application on December 12, 2022.
Pending the City of West St. Paul’s action on the conditional use permit, staff will return to the County Board for schematic design approval in spring 2023, anticipating design to be complete in late summer 2023. Bidding and the start of construction will begin in late fall with estimated project completion by the end of 2024, to coincide with the end date of the timelines for State grant funding by December 30, 2024.
In late November 2022, DHS notified Dakota County that there may be additional DHS bonding dollars available to apply to Dakota County’s Crisis and Recovery Center project. For DHS to allocate these funds to Dakota County, the County must enter into an agreement by December 31, 2022, and satisfy other administrative requirements. Board action is needed to increase the amount of DHS funding that Dakota County can leverage for the project.
RECOMMENDATION
recommendation
Staff recommends authorization to accept DHS funds for the Regional Behavioral Crisis Services Center in an amount of up to $5,000,000 and to execute the grant agreement with the State of Minnesota.
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EXPLANATION OF FISCAL/FTE IMPACTS
Staff will pursue funding from the legislature, leverage American Rescue Plan or other County funds to fill any remaining funding gaps between State bonding funds, additional State appropriations, other funding sources and total costs. Throughout the project, County staff will provide regular updates and prepare a Request for Board Action for any additional funding or costs necessary to facilitate deliverables.
☐ None ☐ Current budget ☒ Other
☐ Amendment Requested ☐ New FTE(s) requested
RESOLUTION
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WHEREAS, on May 17, 2021, the Minnesota Department of Human Services (DHS), through its Behavioral Health Division, issued a Request for Proposals (RFP) from qualified responders, which includes counties, to design, construct or rehabilitate, furnish and equip facilities for regional behavioral health crisis centers to provide mental health and/or substance use disorder services; and
WHEREAS, the term of any resulting contract is anticipated to be from October 22, 2020 to December 31, 2024; and
WHEREAS, by Resolution No. 21-387 (July 20, 2021), the Dakota County Board of Commissioners authorized the Community Services Director to submit, in partnership with Guild, a proposal to DHS in an amount up to $5,000,0000 in response to the RFP for a grantee to design, construct or rehabilitate, furnish and equip facilities for regional behavioral health crisis centers whose purpose is to provide mental health and/or substance use disorder with projects to be completed by December 31, 2024; and
WHEREAS, on August 4, 2021, Community Services submitted a completed proposal to DHS; and
WHEREAS, on November 10, 2021, DHS communicated it completed its review of applications selecting Dakota County as a successful applicant, with $3,459,928 available for possible State bond funding of this project contingent on Dakota County agreeing that the grant amount is sufficient to complement the total funding of construction of the facility, and assurance that completion of required zoning and public ownership processes can be completed by December 31, 2024; and
WHEREAS, Dakota County seeks to maximize State funding and other contributions for construction, building and service costs; and
WHEREAS, by Resolution No. 22-095 (March 8, 2022), Dakota County Board of Commissioners authorized the Community Services Director to proceed, in partnership with Guild, to accept funds and comply with requirements of the Minnesota constitution regarding proper use of State bonding proceeds of DHS for an amount up to $3,459,928 to design, construct or rehabilitate, furnish and equip facilities for regional behavioral health crisis centers whose purpose is to provide mental health and/or substance use disorder services with project completion by December 31, 2024; authorized the County to request additional funding from the Minnesota Legislature and other sources for the balance of the design, construction and furnishing costs for the project; agreed to leverage American Rescue Plan or other County funds to fill any funding gaps between State bonding funds, additional State appropriations, other funding sources and total costs for the balance of the design, construction and furnishing costs for the project; and requested staff provide regular updates on the project and prepare Request for Board Action for additional funding or costs necessary to facilitate deliverables; and
WHEREAS, the County Board of Commissioners has authorized continued progress on the project through Resolutions No. 22-254 (June 21, 2022) and Resolution No. 22-306 (July 19, 2022); and
WHEREAS, DHS communicated to Dakota County that additional funding may be available for Dakota County’s project; and
WHEREAS, pending the City of West St. Paul’s action on the conditional use permit application, staff will return to the County Board for schematic design approval in spring 2023, anticipating design to be complete in late summer 2023, followed by bidding and the start of construction in late fall with estimated project completion by the end of 2024, to coincide with the end date of the timelines for State grant funding by dates established in the grant agreement.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners hereby authorizes the County Manager or designee to proceed, in partnership with Guild, to accept funds and comply with requirements of the Minnesota constitution, including executing the grant agreement with the State of Minnesota approved by the County Attorney’s Office as to form, regarding proper use of the State of Minnesota bonding proceeds through the Minnesota Department of Human Services for an amount up to $5,000,000 to design, construct or rehabilitate, furnish and equip facilities for regional behavioral health crisis centers whose purpose is to provide mental health and/or co-occurring substance use disorder services with project completion by December 31, 2024 or other dates established in the grant agreement.
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PREVIOUS BOARD ACTION
21-387; 7/20/21
22-095; 3/8/22
22-256; 6/21/22
22-306; 7/19/22
ATTACHMENTS
Attachment: None.
BOARD GOALS
☐ A Great Place to Live ☐ A Healthy Environment
☐ A Successful Place for Business and Jobs ☒ Excellence in Public Service
PUBLIC ENGAGEMENT LEVEL
☐ Inform and Listen ☐ Discuss ☐ Involve ☒ N/A
CONTACTS
Department Head: Evan Henspeter
Author: Emily Schug