Council's tension with Johnston resurfaces over shelter contract

• The $30 million contract runs through December 2028.

Yes, but: Urban Alchemy's past issues include allegations of falsifying resident data and overspending on employee raises — which were among the major concerns Denver council members raised, 9News reports.

• Austin's city government in September cut ties with Urban Alchemy, which ran two area homeless shelters, after employees "misrepresented" data and records, per KUT News.

Between the lines: The contract is fueling ongoing tension between Denver Mayor Mike Johnston's administration.

• Urban Alchemy, Bayaud Enterprises and St. Francis Center were chosen by the Johnston administration from a competitive bidding process.

Context: Councilmember Shontel Lewis said she urged the mayor's administration to find providers that would improve shelter conditions, but she was unsatisfied with its response.

• She called it "bullsh-t" to suggest that any other shelter operator "is better than nothing" for the new contract: "I'm sick of that mentality for my community," she said, referencing the northeast area she represents.

What they're saying: Urban Alchemy looks forward to making "meaningful results for people experiencing homelessness," spokesperson Jess Montejano said in a statement to Axios Denver in response to concerns raised by Denver City Council.

• "Our motto is: We can show you better than we can tell you, and we know our impact will speak for itself."

What's next: Denver City Council is still set to consider a $20 million contract with St. Francis Center to run the Stone Creek shelter and a $14 million contract with Bayaud Enterprises to run the Tamarac Family Shelter.