The Costa Mesa City Council on Dec. 2 approved Amendment No. 2 to the memorandum of understanding with Newport Beach that reduces Newport Beach’s exclusive allocation of beds at the Costa Mesa Bridge Shelter from 25 to 20 for an interim period and ends exclusive bed allocations by Dec. 31, 2026.

Neighborhood improvement staff described the two-phase amendment: an initial term (effective at execution through June 30, 2026) that reduces exclusive access to 20 beds while preserving access to five additional per-diem beds as available; a secondary term (July 1–Dec. 31, 2026) that converts all Newport Beach access to per-diem/availability only, with cost-per-bed to be determined following completion of ongoing RFPs for shelter operations.

Staff reported that the amendment would lower Newport Beach’s annual payment by roughly $170,000 and increase its per‑bed unit cost slightly; the reduction also means Costa Mesa will have five additional beds available to house city clients. City staff acknowledged the shelter operates at a deficit for city residents because many shelter operating costs are fixed and not fully covered by partner payments.

Council added contract language, at the request of several members, making Newport Beach responsible for relocating any Newport Beach residents still sheltered in Costa Mesa if they remain at the MOU’s conclusion; staff said Newport and its outreach contractor PATH would provide motel vouchers or other soft-landing options if relocation were necessary.

Council voted 6–0 to approve the amendment and noted other nearby jurisdictions have expressed interest in accessing beds Newport vacates.