TITLE:
title
AMENDMENT TO MEMORANDUM OF UNDERSTANDING WITH THE CITY OF NEWPORT BEACH FOR USE OF BEDS AT THE COSTA MESA BRIDGE SHELTER
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DEPARTMENT: CITY MANAGER
PRESENTED BY: NATE ROBBINS, NEIGHBORHOOD IMPROVEMENT MANAGER
CONTACT INFORMATION: NATE ROBBINS, 714-754-5274
RECOMMENDATION:
recommendation
Approve Amendment No. 2 (Attachment 1) to the Memorandum of Understanding with the City of Newport Beach, reducing their allocation of beds at the Costa Mesa Bridge Shelter from twenty-five (25) to twenty (20) and adjusting their associated costs, accordingly.
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BACKGROUND:
On December 15, 2020, the City of Costa Mesa (City) entered into a Memorandum of Understanding (MOU) with the City of Newport Beach for the provision of emergency shelter beds at the Costa Mesa Bridge Shelter (Shelter) located at 3175 Airway Ave, Costa Mesa. The MOU provided Newport Beach with exclusive rights to twenty (20) beds for use by its residents. In exchange for the exclusive use of these beds, Newport Beach agreed to pay the City $50,000 per bed, for an annual cost of $1,000,000.
On July 1, 2023, the City executed Amendment No. 1 to the MOU, increasing Newport Beach's allocation of beds from twenty (20) to twenty-five (25). The cost of the original twenty (20) beds remained at $50,000 each; however, the cost of the five (5) additional beds increased to $55,000 each, or $275,000 annually. Combined, Newport Beach's annual cost for use of up to twenty-five (25) beds was $1,275,000. Further, Amendment No. 1 afforded Newport Beach the right to use up to five (5) additional beds, as available, for a cost of $155 per bed, per day.
Both the MOU and Amendment No.1 included provisions for annual cost increases based on the percentage increase in the Consumer Price Index (CPI) for the preceding twelve-month period. Currently, based on these CPI adjustments, Newport Beach's total annual cost for use of up to twenty-five (25) beds is $1,359,219, which is $54,369 per bed, per year, or ...
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