The administration will ask the Assembly on June 10 to approve AM475-2025, recommending award of a contract to MASH Property Management LLC to operate 100 noncongregate shelter beds at the Alex Hotel from July 1 to Dec. 31 for $2,309,000, Anchorage Health Department staff said during the June 6 work session. A linked item, AM477-2025, would accept a categorical state grant from the Alaska Department of Commerce for $2,422,000 that must be used only for noncongregate shelter services.

Health department staff said the contract resulted from a competitive RFP (referenced as P018) that received two responsive proposals (MASH and Henning Inc.); MASH scored highest. The recommendation covers six‑and‑a‑half months of noncongregate sheltering and aims to maintain continuity in services after the current 200 noncongregate beds are demobilized on June 30.

Staff said the municipality currently operates 200 noncongregate beds (106 operated by MASH at the Alex and 94 operated by Henning) that will be reduced to 100 beds beginning July 1. Department staff reported consistent utilization at or near 100%. The contract is a flat amount for the period; optional renewals for 2026 and 2027 are included in procurement materials and account for a larger multi‑year potential ceiling (staff cited an $11 million figure tied to the full contract with renewals), but the Assembly retains funding oversight and would still vote on future appropriations.

The contract requires client engagement with case management and peer support (staff described a requirement that clients meet with a case manager at least once every two weeks). Staff said the current contract iteration reduced an earlier requirement of three meals per day to two meals per day to balance service expectations and cost. The administration emphasized that the state grant funds can only be used for noncongregate sheltering and that the award avoids repeated short‑term contract requests to the Assembly.

Assembly members asked about utilization, service requirements and cost comparisons. Member McCormick asked whether treatment is required for clients in the noncongregate shelter and was told that case management and peer support are required and that some clients may need multiple contacts before they engage with further services. Member Dodson asked about utilization and was told that utilization is at or near 100% and that the municipality monitors bed use with a real‑time dashboard.

No formal Assembly vote occurred during the work session; the award recommendation and the linked state grant acceptance are scheduled for the June 10 packet.