DEPARTMENT: Social Services-Housing & Community Resources
FILE TYPE: Consent Action
TITLE
title
Authorization To Execute Contract With Ally Supportive Services For Street Outreach Services
end
PURPOSE/ACTION REQUESTED
Authorize execution of contract with Ally Supportive Services (Ally) for street outreach services.
SUMMARY
The Social Services Department manages a continuum of housing services funded through an array of levy, state grants, federal grants, and Affordable Housing Aid (AHA). Some services are operated through direct service delivery, such as social workers working with families and adults in shelter and supportive housing. Other services such as street outreach to homeless individuals, emergency shelter, permanent supportive housing, apartment services, and services at eviction court are delivered though contracts.
This contract pays for outreach to people in Dakota County experiencing homeless, living outdoors or couch-hopping. Services include coordinating with service providers; outreach to community locations (libraries, police departments, county buildings); developing working relationships with system partners; and facilitating referrals to housing, job training, mental health and other human services. Homeless outreach meets people where they are at, serving an estimated 200 people each quarter (Attachment: Outcomes).
An RFP for street outreach services was conducted earlier in 2025 (Attachment: Solicitation Summary). Based on the RFP review, staff recommends contracting with Ally for a period of two years in an amount not to exceed $322,000 in levy funds. This is a 59 percent increase ($120,000) from previous contracts. The increase is needed to continue the same level of street outreach service for three reasons: (1) state grant funding that flows from the county to Ally was cut by around $62,000 for the 2026-2027 grant cycle; (2) the cost for delivering services has increased with inflation; and (3) the number of people experiencing street homelessness is likely to increase as economic conditions continue to deteriorate. The following summarizes funding from all sources for street outreach from the 2024-2025 to the 2026-2027 contract period.
2024-2025
Levy $202,000
State Grant $231,966
Total $433,966
2026-2027
Levy $322,000 (59 percent increase in levy from 2024-2025)
State Grant $170,000 (27 percent decrease from 2024-2025)
Total $492,000 (13 percent increase from 2024-2025)
The $120,000 recommended increase for this contract would come from cuts to other areas of the housing and homeless services budget. Overall, the 2026 County Manager’s Recommended Budget includes a reduction of $556,000 in levy-funded housing services contract expenses.
OUTCOMES
Contractor will report the following information to Dakota County on a quarterly basis, based on the specific requirements of the contract:
1. How much? Number of households served
2. How well? Demographics of households served
3. Is anyone better off? Percent of households exited to shelter or permanent housing
A summary of Ally’s 2025 outcomes for street outreach services is attached (Attachment: Outcomes).
RECOMMENDATION
recommendation
Staff recommends that the Board of Commissioners authorizes the Community Services Director to execute a contract with Ally Supportive Services for street outreach services in a not to exceed amount of $322,000 for the period January 1, 2026 through December 31, 2027.
end
EXPLANATION OF FISCAL/FTE IMPACTS
This contract is a General Fund expenditure and is funded by levy. This contract will be included in the 2026 County Manager’s Recommended Budget and future recommended budgets. The contract shall contain a provision that allows the County to terminate the contract immediately in the event that sufficient funds from the county, state, or federal funds are no longer available at a level sufficient to continue services.
☐ None ☐ Current budget ☒ Other
☐ Amendment Requested ☐ New FTE(s) requested
RESOLUTION
body
WHEREAS, the Social Services Department manages a continuum of housing services; and
WHEREAS, housing continuum services are funded through an array of levy, state grants, federal grants, and Affordable Housing Aid (AHA); and
WHEREAS, services are operated through direct service delivery and contracts; and
WHEREAS, contracted services include street outreach, emergency shelter, permanent supportive housing, apartment services and services at eviction court; and
WHEREAS, the service of street outreach includes coordinating with service providers; outreach to community locations; developing working relationships with system partners; and facilitating referrals to housing, job training, mental health and other human services; and
WHEREAS, street outreach serves an estimated 200 people each quarter; and
WHEREAS, earlier in 2025, staff issued an RFP for street outreach services; and
WHEREAS, a review committee from Social Services reviewed and scored proposals; and
WHEREAS, based on the RFP review, staff recommends executing a two-year contract with Ally Supportive Services (Ally) for county levy-funded street outreach services for the period of January 1, 2026 through December 31, 2027, in a not to exceed (NTE) amount of $322,000; and
WHEREAS, the following summarizes funding from all sources for street outreach from the 2024-2025 to the 2026-2027 contract period, including percent changes in funding sources and amounts:
2024-2025
Levy $202,000
State Grant $231,966
Total $433,966
2026-2027
Levy $322,000 (59 percent increase in levy from 2024-2025)
State Grant $170,000 (27 percent decrease from 2024-2025)
Total $492,000 (13 percent increase from 2024-2025)
; and
WHEREAS, the January 1, 2026 through December 31, 2027, NTE for levy-funded outreach services represents a $120,000 increase in levy funding over the contract term; and
WHEREAS, the increase in levy funding for this street outreach contract does not result in an overall increase in Social Services’ budget for levy-funded housing and homeless services expenditures; and
WHEREAS, the 2026 County Manager’s Recommended Budget includes a reduction of $556,000 in levy-funded housing services contract expenses; and
WHEREAS, Dakota County has a separate contract with Ally for grant-funded street outreach services; and
WHEREAS, this street outreach services contract maintains current service levels; and
WHEREAS, staff anticipates an increased need for homeless outreach due to local, state and federal cuts to human services.
NOW, THEREFORE, BE IT RESOLVED, That the Dakota County Board of Commissioners hereby authorizes the Community Services Director to execute a contract with Ally Supportive Services for street outreach services in a not to exceed amount of $322,000 for the period January 1, 2026 through December 31, 2027; and
BE IT FURTHER RESOLVED, That the Community Services Director is hereby authorized to amend said contract, consistent with the amount budgeted, to alter the contract amount and the contract 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 contract shall contain a provision that allows the County to immediately terminate the contract in the event sufficient funds from county, state, or federal sources are not appropriated at a level sufficient to allow payment of the amount due.
end
PREVIOUS BOARD ACTION
None.
ATTACHMENTS
Attachment: Solicitation Summary
Attachment: Outcomes
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