The Birmingham City Council on Tuesday voted to extend a $1.7 million agreement with a nonprofit group that provides homeless outreach services in the city.

Councilor Hunter Williams voted against the measure, saying the group is paid far too much for the services it provides.

“When we look at the total cost of what this contract is and the interactions that this organization has reported to us, every time that they speak with a homeless individual, it is costing the taxpayer $363 — and that’s when they just speak to a homeless individual,” he said.

The city is paying the California-based Urban Alchemy to lead the Homeless Engagement Assistance Response Team program, called Heart. Workers answer calls from the community for issues such as loitering, mental health crises and public disturbances. They provide assistance by connecting those residents in crisis to other resources and service providers.

The measure discussed Tuesday, which extends the city’s contract with Urban Alchemy through the end of March 2026, passed with Councilor Crystal Smitherman abstaining and the remaining seven members voting yes.

During a November council meeting, Williams and Smitherman both expressed concerns about the amount of services provided by Urban Alchemy. The conversation about the nonprofit came about as the council discussed a proposed park to be run by Urban Alchemy that would serve as a resource for residents experiencing homelessness. The council ultimately delayed the vote on the park, and the item has not appeared on its agenda since.

According to a November presentation from city staff, the Urban Alchemy team resolved more than 3,000 incidents from the start of the year through the end of September, with an average of nine resolved daily.

In February, the council gave Urban Alchemy $1.5 million to construct and operate up to 60 microshelters at two sites in the city.

In an interview in November, Mayor Randall Woodfin told BirminghamWatch that Urban Alchemy is doing great work.

“We are clear on the contract that the council signed and all who voted for it that they’re meeting their marks,” he said. “A lot of their work is engagement. They’re not responsible for reducing homelessness. What they’re responsible for is de-escalating situations for our unhoused residents, providing services they can, being a conduit for those who do want to come off the street to give a path and assistance.”

In other business, the council:

• Approved a one-year, $140,172 agreement with The Link for a workforce development and career exploration program. According to city staff, this is part of the City’s BOLD Grant program to assist small businesses doing work for the public good. The program will focus on disadvantaged residents, displaced workers and local entrepreneurs, to equip them with job training and practical skills for entry level positions. City officials say this will include high-demand trades such as HVAC repair, electrical work, building maintenance and plumbing.
• Approved a three-year agreement with Axon Enterprises Inc. to lease 30 body cameras that will be worn by Birmingham firefighters. According to city officials, the footage will be used primarily for training purposes and to assist with investigations.

Denied a rezoning request that would have changed a residential lot at 1418 22nd Ave. N from a multiple dwelling (D-5) designation to light manufacturing (I-1) to allow the parking and storage of 18-wheelers. During the public hearing, multiple residents spoke in opposition to the changes.