Costa Mesa approves amendment to Newport Beach MOU, reduces exclusive Bridge Shelter beds and requires relocation assistance

The Costa Mesa City Council on Dec. 2 approved Amendment No. 2 to a memorandum of understanding with Newport Beach that reduces Newport’s exclusive allocation of beds at the Costa Mesa Bridge Shelter and sets a timeline for the city to transition operations and prioritize local clients.

What changed: Under the amendment, Newport Beach’s exclusive bed allocation falls from 25 to 20 upon execution of the amendment and through June 30, 2026; from July 1, 2026 through Dec. 31, 2026 Newport Beach’s access is per‑diem (as available) at a rate to be determined; after Dec. 31, 2026 Newport Beach will no longer have exclusive access to shelter beds. Staff said Newport Beach’s average utilization in a recent 60‑day window was 16–17 beds.

Financial effect: Staff estimated the change would reduce Newport Beach’s annual payment from roughly $1.35 million to about $1.189 million (a reduction near $170,000) and increase the per‑bed unit cost for Newport Beach users because of the smaller allocation. City staff said the shelter carries fixed costs and city subsidy remains for residents—losing Newport Beach revenue will increase the city’s net cost unless another jurisdiction commits to beds. The city reported it is negotiating with another nearby agency interested in taking any vacated beds.

Relocation protections: Council added contract language proposed by the city attorney that makes Newport Beach responsible for housing or relocating Newport Beach clients still in the shelter once the agreement ends; staff described an operational plan to taper intakes in the months before transition to minimize disruptions and to coordinate with outreach providers such as PATH for motel vouchers when needed.

Vote: The amendment and added relocation language passed unanimously (6–0).