Santa Fe keeps Urban Alchemy contract after tense debate, directs six‑month funding and review

Santa Fe’s governing body voted to deny a proposal to terminate the city’s professional services contract with Urban Alchemy, preserving street‑outreach operations while directing staff to secure six months of funding and to study alternative service delivery models.

The decision, taken after a protracted discussion and public comment, keeps active a four‑year contract the city described in its agenda as totaling about $7,948,133.59. Community Services Director Sandy Emry told the council staff would present a budget adjustment (BAR) to cover six months of operations while they seek sustainable funding and evaluate whether comparable outreach services can be delivered at lower cost.

Why it matters: City officials said immediate termination would create an operational gap in outreach and harm unsheltered residents who rely on daily contact, water, food and referrals. Several council members said they want both continuity of services and better fiscal stewardship — a balance that staff said the six‑month funding would buy while a more thorough review is completed.

What was said: Emry presented comparative output data for January–March 2026. LifeLink, which the city also funds, reported 445 unduplicated outreach clients and 760 total outreach contacts for the quarter; Urban Alchemy reported 1,369 outreach contacts in the same period and provided Oasis referrals, transports and other on‑the‑street services. Emry warned that Urban Alchemy’s contract has involved higher costs than some other providers and noted differences in how providers track unique clients.

Council members expressed a mix of concerns and priorities. Some, citing evidence of Urban Alchemy’s effectiveness with hard‑to‑reach populations, argued the city should preserve the contract. Others worried about the city’s ability to afford the contract long term and pressed staff to identify cheaper but equivalent delivery models. Several members urged improved, consistent data collection to enable apples‑to‑apples comparison.

Public and provider voices: The meeting included testimony from outreach providers and community members describing on‑the‑ground needs. Staff and service partners emphasized a patchwork of local outreach groups — some city‑funded, some not — and described work to coordinate, reduce duplication, and expand crisis‑response capacity.

Next steps: Council approved a motion to deny termination and asked staff to return with a BAR to fund six months of Urban Alchemy’s outreach work while the city refines a strategic plan for outreach, encampment response and shelter coordination. Staff said the LifeLink contract remains active through Dec. 31 and that a homelessness summit on June 29 will feed into a three‑year strategic plan.

The council’s action leaves outreach operations in place while the city attempts to reconcile public safety, fiscal constraints and service continuity. The next substantive budget or policy decisions on outreach are expected in subsequent governing‑body sessions.