Council approves $522,000 amendment to Urban Alchemy shelter contract as city shifts to 24/7 model

The Quality of Life Committee voted to amend Urban Alchemy's emergency contract to cover an additional $522,000 for shelter operations, citing the shift from a prior 16-hour model to a 24-hour, 7-days-a-week shelter and the need for additional staffing and wraparound services.

Community Services Director Sandy Emory described the procurement as an emergency response to urgent needs and said staff have been working closely with the provider to stabilize services. "This year has been a lot of trial and error, a lot of learning," Emory said, and added staff are incorporating lessons into a currently open RFP for continued service provision.

Staff reported utilization metrics: in recent reporting Urban Alchemy served 179 unique clients in a quarter, reported 93% bed utilization against an 85% benchmark, and listed 13% of exits to permanent housing for a recent period. Staff and the council said the 24/7 model aims to keep clients sheltered overnight rather than returning people to the street each day while providing case management and service connections.

Councilors pressed on procurement, the origin of funds and next steps. Staff said the $522,000 increase will be paid from a mix of Department of Workforce Solutions IGA funds and local funds and clarified that some previously planned allocations (for a second Oasis/love program) were reallocated to make the contract whole while other programs showed cost savings. The city said it expects to have a new contract in place through a competitive RFP process following this emergency amendment.

Council approved the amendment on a roll-call vote. Several council members underscored that homelessness services are expensive but remain a priority and requested clearer metrics and a citywide plan for shelter capacity, outreach and long-term housing placements.

Votes at a glance:
- Motion: Amendment #2 to professional services contract item 25-0217 with Urban Alchemy to increase compensation by $522,000 for shelter operations. Outcome: approved (recorded votes: Fagali: yes; Barrett: yes; Cassett: yes; Chair Castro: yes).