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Council extends Urban Alchemy agreement despite councilor's cost-per-contact criticism
Summary
The council approved an amendment extending Urban Alchemy's agreement through March 31, 2026, for outreach, interim housing and crisis services (not to exceed $1,717,881); one councilor criticized the contract's cost-per-interaction and low shelter-referral numbers during debate.
The Birmingham City Council voted to amend and extend its agreement with Urban Alchemy on Dec. 9, authorizing a contract not to exceed $1,717,881 through March 31, 2026 to continue community engagement, homeless outreach, interim housing, hygiene services, street cleaning and crisis response related to homelessness, mental health and addiction.
During the discussion, a council member (speaker 26) raised concerns about contract performance and cost efficiency, saying data presented at Committee of the Whole showed that each interaction with an unhoused person cost approximately $363 and that Urban Alchemy had referred only four people to shelters during its term. "When we look at the total cost of this contract...every single time they just speak with a homeless individual, it is costing the taxpayer $363," the councilor said, and urged closer scrutiny of outcomes and local provider engagement.
Council members debated those concerns but moved ahead to approve the extension. The resolution amends Resolution 1338 (2024) to extend the Urban Alchemy agreement and set a new end date of March 31, 2026.
The transcript does not record a vendor response to the specific per-contact figure during the meeting and no detailed contract performance metrics were read into the record; councilors urged continued oversight and attention to local service providers. The item passed by council vote.
