The URL can be used to link to this page

Home My WebLink About10 - Amendment to Trash and Recycling Container Removal Services Contract (Contract No. 8549-1)Q �EwPpRT CITY OF s NEWPORT BEACH `q44:09 City Council Staff Report January 27, 2026 Agenda Item No. 10 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: David A. Webb, Public Works Director - 949-644-3311, dawebb@newportbeachca.gov PREPARED BY: Charles Springer, Senior Management Analyst - 949-718-3466, cspringer@newportbeachca.gov TITLE: Approval of Amendment No. Two to Trash and Recycling Container Removal Services Contract with CR&R Inc. (Contract No. 8549-1) ABSTRACT: The City of Newport Beach contracts trash and recycling collection services for designated trash containers in public rights -of -way. The current contract with CR&R Incorporated (CR&R) expires on February 28, 2026. After review and discussion with the City Council's Ad Hoc Refuse Committee, staff requests an amendment to the current agreement with CR&R to extend the term to December 31, 2029, and increase the not - to -exceed contract amount by $2,367,140 for a new total of $5,720,000. RECOMMENDATIONS: a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; b) Approve Amendment No. Two to Agreement with CR&R, Incorporated for Trash and Recycling Container Removal Services increasing the total not -to -exceed amount by $2,367,140 for a new contract total of $5,720,000 and extend the term to December 31, 2029; and c) Authorize the Mayor and City Clerk to execute the amendment. DISCUSSION: Trash containers in public spaces, such as on streets or in beach areas, are necessary to provide proper litter collection and disposal in high foot -traffic areas. The City currently contracts with CR&R to collect and dispose of the trash disposed of in City -owned containers. Currently, there are approximately 677 containers in the winter and 708 containers in the summer that are largely located throughout the Balboa Peninsula, West Newport, Corona del Mar, Balboa Island and on all public docks and piers that are serviced by this contract. This contract also includes service for two leased facilities: Ruby's on the Balboa Pier and West Newport Community Center. Amendment to Trash and Recycling Container Removal Services Contract with CR&R Inc. (Contract No. 8549-1) January 27, 2026 Page 2 Additionally, Orange County Waste & Recycling is in the process of revising its master Waste Disposal Agreements, which expire June 30, 2026, that governs landfill disposal cost provided to local jurisdictions. The current draft County agreement being reviewed and negotiated is proposing significant landfill disposal rate increases, extending over the next 10 years. In reviewing this new draft County agreement, and considering the potential higher end of the proposed disposal cost, as well as adding in a potential annual Consumer Price Index (CPI) increase of 4.23%, staff estimated our City trash container contract cost could increase by an average of approximately $630,000 per year, or $2,367,140 over the additional term being requested as these increased county landfill disposal costs are paid by CR&R and then are passed -through to the City as part of their contract. In order to ensure the City can maintain and pay for future collection service, staff is requesting approval of amendment No. Two to the Agreement with CR&R for Trash and Recycling Container Removal Services to increase the total not -to -exceed amount by $2,367,140, and extend the term to December 31, 2029. FISCAL IMPACT: The adopted budget includes sufficient funding to cover the increased Contract cost of this amendment. It will be expensed to the Beach Trashcan Collection account in the Public Works Department, 0108051-811031. Additional necessary funding for future years will be programmed during the annual budget process. ENVIRONMENTAL REVIEW: Staff recommends the City Council find this action is not subject to the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. �[0��[�I1rev The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item). ATTACHMENTS: Attachment A — Amended Rate Sheet Attachment B — Amendment No. Two to the Trash and Recycling Container Removal Services Contract with CR&R Inc. Attachment A Newport Beach - City Facility Rate Sheet Monthly Rates effective starting 03/01 /2026 at $43.76/ton Disposal Rate Waste 1 x per 2x per 3x per 4x per 5x per 6x per 7x per Size Stream week week week week week week week Landfill 35gal $ 10.46 $ 20.92 $ 31.38 $ 41.84 $ 52.30 $ 62.76 Landfill 35gal 1x per week 2x per week 3x per week 4x per week 5x per week 6x per week Rate Components Service Monthly Weekly Per Tip Additional Non -Labor Labor Disposal Rate Rate Rate Pickup $ 5.68 $ 3.14 $ 1.64 $ 10.46 $ 2.42 $ 2.42 $ 11.36 $ 6.28 $ 3.28 $ 20.92 $ 4.83 $ 2.42 $ 17.04 $ 9.41 $ 4.92 $ 31.38 $ 7.25 $ 2.42 $ 22.72 $ 12.55 $ 6.57 $ 41.84 $ 9.66 $ 2.42 $ 28.40 $ 15.69 $ 8.21 $ 52.30 $ 12.08 $ 2.42 $ 34.08 $ 18.83 $ 9.85 $ 62.76 $ 14.49 $ 2.42 Page 1 of 1 Attachment B AMENDMENT NO. TWO TO MAINTENANCE/REPAIR SERVICES AGREEMENT WITH CR&R INCORPORATED FOR REFUSE CONTAINER REMOVAL SERVICES THIS AMENDMENT NO. TWO TO MAINTENANCE/REPAIR SERVICES AGREEMENT ("Amendment No. Two") is made and entered into as of this 27th day of January, 2026 ("Effective Date"), by and between the CITY OF NEWPORT BEACH, a California municipal corporation and charter city ("City"), and CR&R Incorporated, a California corporation ("Contractor"), whose address is 11292 Western Avenue, Stanton, California 90680, and is made with reference to the following: RECITALS A. On March 1, 2019, City and Contractor entered into a Maintenance/Repair Services Agreement (Contract No. C-8549-1) ("Agreement") to perform commercial refuse removal for various sites across the City ("Project"). B. On November 12, 2025, City and Contractor entered into Amendment No. One to update the insurance requirements and to increase the total compensation because the volume of work was expected to exceed the originally anticipated budget. C. The parties desire to enter into this Amendment No. Two to reflect additional Services not included in the Agreement, as amended, to extend the term of the Agreement to December 31, 2029, to update Section 5.1 Contractor's Project Manager, Section 24.3 Notices, and Section 4.2 of Compensation to Contractor, and to increase the total compensation. NOW, THEREFORE, it is mutually agreed by and between the undersigned parties as follows: 1. TERM Section 1 of the Agreement is amended in its entirety and replaced with the following: "The term of this Agreement shall commence on the Effective Date, and shall terminate on December 31, 2029, unless terminated earlier as set forth herein." 2. SERVICES TO BE PERFORMED Exhibit A to the Agreement shall be supplemented to include the Scope of Services, attached hereto as Exhibit A and incorporated herein by reference ("Services" or "Work"). Exhibit A to the Agreement, Exhibit A to Amendment No. One, and Exhibit A to this Amendment No. Two shall collectively be known as "Exhibit A." The City may elect to delete certain Services within the Scope of Services at its sole discretion. 3. COMPENSATION TO CONTRACTOR As of the Effective Date of this Amendment No. Two, Exhibit B to the Agreement, Schedule of Billing Rates, is amended in its entirety and replaced with Exhibit B, Schedule of Billing Rates, attached hereto and incorporated herein by this reference. Section 4.1 of the Agreement is amended in its entirety and replaced with the following: "City shall pay Contractor for the Services on a time and expense not -to -exceed basis in accordance with the provisions of this Section and the Schedule of Billing Rates attached hereto as Exhibit B and incorporated herein by reference. Except as otherwise provided herein, no rate changes shall be made during the term of this Agreement without the prior written approval of City. Contractor's compensation for all Services performed in accordance with this Agreement, including all reimbursable items, shall not exceed Five Million Seven Hundred Twenty Thousand Dollars and 00/100 ($5,720,000.00), without prior written amendment to the Agreement." The total amended compensation reflects Contractor's additional compensation for additional Services to be performed in accordance with this Amendment No. Two, including all reimbursable items, in an amount not to exceed Two Million Three Hundred Sixty Seven Thousand One Hundred Forty Dollars and 00/100 ($2,367,140.00). Section 4.2 of the Agreement hereby is amended in its entirety and replaced with the following. - "The parties acknowledge that the Waste Infrastructure System Enhancement (WISE) agreement is currently under negotiation. Once the WISE agreement (or a similar successor agreement) is fully executed and the applicable rates are formally established, Contractor shall be permitted to submit the pass -through billing rates established therein to the City's Project Manager. All such rates remain subject to the advance written approval of the City Manager or their designee, which approval shall not be unreasonably withheld. Upon the first anniversary of the Effective Date and upon each anniversary of the Effective Date thereafter, the non pass -through billing rates set forth in the Schedule of Billing Rates may be adjusted in proportion to changes in the Consumer Price Index, subject to the maximum adjustment set forth below. Such adjustment shall be made by multiplying the Billing Rates in Exhibit B by a fraction, the numerator of which is the value of the Consumer Price Index for the calendar month three (3) months preceding the calendar month for which such adjustment is to be made, and the denominator of which is the value of the Consumer Price Index for the same calendar month immediately prior to Effective Date. The Consumer Price Index to be used in such calculation is the "Consumer Price Index, All Items, 1982-84=100 for All Urban Consumers (CPI-U)", for the Los Angeles - Riverside -Orange County Metropolitan Area, published by the United States Department of Labor, Bureau of Labor Statistics. If both an official index and one or more unofficial indices are published, the official index shall be used. If said Consumer Price Index is no longer published at the adjustment date, it shall be constructed by conversion tables included in such new index. In no event, however, shall the amount payable under this Agreement be reduced below the Billing Rates in effect immediately preceding such adjustment. The maximum adjustment increase to the non pass -through billing rates, for any year where an CR&R Incorporated Page 2 adjustment is made pursuant to this Section, shall not exceed the Consumer Price Index or 2.0% of the Billing Rates in effect immediately preceding such adjustment, whichever is less. Contractor shall notify City in writing of any requests for adjustment pursuant to this Section at least thirty (30) days prior to the Effective Date of such adjustment, and provide updated billing rates. Adjusted billing rates shall be approved in writing by City prior to use." 4. PROJECT MANAGER Section 5.1 of the Agreement is amended in its entirety and replaced with the following: 5.1 Contractor shall designate a Project Manager, who shall coordinate all phases of the Project. This Project Manager shall be available to City at all reasonable times during the Agreement term. Contractor has designated Julie M. Barreda to be its Project Manager. Contractor shall not remove or reassign the Project Manager or any personnel listed in Exhibit A or assign any new or replacement personnel to the Project without the prior written consent of City. City's approval shall not be unreasonably withheld with respect to the removal or assignment of non -key personnel. 5. NOTICES Section 24.3 of the Agreement is amended in its entirety and replaced with the following: 24.3 All notices, demands, requests or approvals from City to Contractor shall be addressed to Contractor at: Attn: Clifford Ronnenberg CR&R Incorporated 11292 Western Avenue Stanton, CA 90680 6. INTEGRATED CONTRACT Except as expressly modified herein, all other provisions, terms, and covenants set forth in the Agreement shall remain unchanged and shall be in full force and effect. [SIGNATURES ON NEXT PAGE] CR&R Incorporated Page 3 IN WITNESS WHEREOF, the parties have caused this Amendment No. Two to be executed on the dates written below. APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Dater/?6 By: A on C. Harp City Attorney ATTEST: Date: Lena Shumway City Clerk CITY OF NEWPORT BEACH, a California municipal corporation Date: By: Lauren Kleiman Mayor CONTRACTOR: CALIFORNIA PPE RECON, INC., a California corporation Date: By: Clifford Ronnenberg Chief Executive Officer Date: By: David Ronnenberg Secretary [END OF SIGNATURES] Attachments: Exhibit A — Scope of Services Exhibit B — Schedule of Billing Rates CR&R Incorporated Page 4 EXHIBIT SCOPE OF SERVICES CR&R Incorporated Page A-1 MOD Field Maintenance Trash Route REFUSE CONTAINER• • AND • Area Description Summer Balboa Island Marine Avenue 35 7 days 7 days 2 FT, 1PT M - SN Balboa Island Bus Stops Bayside/Jamboree & Bayside/West Promontory 2 1 day 1 day TH CDM PCH - Avocado to Cameo Shores (Both Sides of PCH) 40 5 days 7 days 2 FT, 1PT M W F S SN CDM Poppy @ Fifth Do when you do Coast Highway 1 3 days 4 days M W F S SN CDM Civic Center 16 3 days 7 days M W F Newport Coast PCH - Cameo Shores to Reef Point Bus Stops 8 1 day 1 day TH CDM Corona Del Mar State Beach 38 30 5 days 7 days 2 FT, 1PT M W F S SN CDM Pirates Cove 3 4 days 7 days 2 FT, 1PT MWF SN CDM Buck Gully 7 4 days 7 days 2 FT, 1PT M W F S SN CDM China Cove 3 3 days 7 days 6 PT M W F CDM Bus Stop Irvine Terrace 1 1 day 1 day TH Balboa Island Balboa Island (street ends, ferry landing, 4 floats) 51 5 days 7 days 6 PT, Sa- 1 PT, Su-2 PT M W F SN Balboa Island Little Island - Section/Area 5 16 4 days 7 days 12 FT, 1PT M W F SN Balboa Island Martha's Starbucks 2 5 days 7 days 2 FT, 1PT M W F S SN East bay/aback bay Back Bay Drive & Shellmaker by BBSC signs 1 Day 1 Day 2 FT, 1PT TH Eastbay/abackbay End of Back Bay Road/trail 1 Day 1 Day 2 FT, 1PT TH Eastbay/abackbay Across from Corona Del Mar High School 1 Day 2 Days 2 FT, 1PT TH / M F West Newport Seashore Dr (start S8th and seashore) 24 3 days 5 days 6 PT, Sa- 1 PT, Su-2 PT M W F S SN West Newport Beach Cans - Summit, Orange,Prospect 56th, 54th, 47th 40th 9 5 days 7 days 2 FT, 1PT M W F S SN West Newport Beach Can - 53rd Street 1 3 days 5 days M W F S SN Newport 36th to 16th Street Beach boardwalk 5 days 7 days 6 PT M W F S SN Balboa 15th St to Adams on beach boardwalk 20 _ 5 days 7 days 2 FT, 1PT MWF 5 SN Heights/Dover Shores Dover Shores Beach 2 3 days 5 days 6 PT M W F S SN Heights/Dover Shores North Star Lane 3 1 day 1 day TH Heights/Dover Shores Acuatic Center 2 3 days 5 days 6 PT, Sa- 1 PT, Su-2 PT M W F S SN Heights/Dover Shores Mariners Library 5 4 days 5 days 6 PT M W F S SN Dover Shores Bus Stop W. Coast Hwy @ Bayshores 1 1 day 1 day TH Newport Central Ave. (Elks Lodge) 3 3 days 3 days M W F Newport Newport Blvd @ Via Lido and Chipotte, Von's Pavilion 4 5 days 7 days 6 PT, Sa- 1 PT, Su-2 PT M W F S SN Newport 32nd @ Villa Way and Lafayette 3 2 days 2 days 6 PT, Sa- 1 PT, Su-2 PT M F Newport Balboa Blvd @ 23rd Str 3 7 days 7 days 6 PT, Sa- 1 PT, Su-2 PT M - SN Newport Blackies Lot 33 7 days 7 days 2 FT, iPT M - SN Newport McFadden Plaza 28 7 days 7 days 12 FT, 1PT M - SN Newport Newport Pier 19 7 days 7 days 2 FT, 1PT M - SN Newport Stag Lot & Sharkeez 5 5 days 7 days 2 FT, 1PT M W F S SN Newport 20th St @ Balboa Blvd 1 4 days 5 days MWF SN Newport 19th Street bay beach, restrooms, float (after 7am) 14 5 days 7 days 2 FT, 1PT M W F S SN Newport 15th St - Bay (First Pickup) 5 7 days 7 days 2 FT, 1PT M - SN Newport 15th ST - Both Sides - - 4 days 5 days MWF SN (M W F S SN) MOD Field Maintenance Trash Route Balboa Blue can by ATT building 3 days 3 days 2 FT, 1PT M W F Balboa Balboa Pier 19 7 days 7 days 2 FT, 1PT M - SN Balboa Balboa Pier Restaurant (Ruby'S) _ 7 days 7 days M - SN Balboa Main Street around to A Street Lot 24 7 days 7 days 2 FT, 1PT M - SN Balboa Washington St End and dock 2 7 days 7 days 6 PT, Sa- 1 PT, Su-2 PT M - SN Balboa Fun Zone Boardwalk 5 7 days 7 days M - SN Balboa Bay Street - Wasthington Street Restrooms, sushi 21 4 5 days 7 days 12 FT, 1PT M W F S SN Balboa Newport Landing 3 7 days 7 days M - SN Balboa Palm Street - Entrance to Ferry 6 5 days 7 days 2 FT, 1PT M W F S SN Balboa Wells Fargo Lot 7 4 days 7 days 2 FT, 1PT M W F SN Balboa Palm Street 7 4 days 7 days M W F SN Balboa Rendezvous Lot - Washington St to Balboa 9 5 days 7 days M W F S SN Balboa Balboa Blvd - North 10 5 days 7 days 2 FT, 1PT M W F S SN Balboa Balboa Blvd - South 12 5 days 7 days 2 FT, 1PT M W F S SN Balboa Balboa Main Lot 22 S days 7 days M W F S SN Balboa Bus Depot & Ticket Booth 7 B Street Lot F 4 5 days 5 days 7 days 2 FT, 1PT M W F S SN Balboa 7 days 2 FT, 1PT M W F S SN Balboa Ocean Front Cans C, D, E, F, I, L, M street, Ocean front 7 3 days 4 days 2 FT, 1PT MWF SN Balboa M Street Bay and float to B street on the bay 13 _ _ 4 days 5 Days 6 PT,Su-2 PT MWFS or SN (M W F S SN) Balboa Adams St to Fernando on the Bay 5 5 days 7 days 6 PT, Sa- 1 PT, Su-2 PT M W F S SN Balboa Alvarado to 14th Street on the Bay 20 3 days 5 days M W F S SN Newport SSth Street Bay (Second Pickup) 5 7 days 7 days M - SN Newport Crab Cooker and Old Russells' Surf Shop, 28th at Newport Blvd 3 3 days 5 days 6 PT M W F S SN Newport Bus Stop at 32nd and Balboa 1 4 days 4 days 6 PT,Su-2 PT MWF SN Newport Channel Park Restrooms + One 3 3 days 5 days 6 PT,Su-2 PT M W F S SN Newport Bus Stop at 46th both sides 2 4 days 5 days 2 FT, 1PT MWF SN Newport Circle K Bus Stops on PCH both sides 2 4 days 4 days 3 days 5 days 6 PT MWF SN West Newport 4 days 3 days 6 PT,Su-2 PT MWF SN M W F West Newport Shores Ceder Street @ 62nd St 1 Hospital/Yard Superior Hill 1 3 days 3 days 2 FT, 1PT M W F Hospital/Yard Zubies 1 3 days 3 Days M W F Hospital/Yard I Bus Stop by Hoag 1 3 days 3 days 2 FT, 1PT M W F Hospital/Yard 1833 W. 15th Street 1 5 days 5 days 6 PT TU W TH F S Newport Marina Park** (Afternoons Only in Summer) 7 days 7 days M - SN Total Containers: 649 :0 IlIff 6 PT MOD Field Maintenance Trash Route NOTE: Colors shown on the Container Inventory lists coordinate with the map in Appendix C. *Typically, the summer period comprises 15 weeks of the calendar year and the non -summer period comprises the remaining 37 weeks. The City reserves the right to extend or shorten the summer period based on climate patterns or public demand. Please provide pricing accordingly. **One of our existing contractors will be servicing these cans at Marina Park in the morning. This contract will service these cans in the afternoon everyday only in the summer months. Please also note the insurance requirements for this Project. Any and all prices quoted should include insurance and vehicle purchasing. EXHIBIT B SCHEDULE OF BILLING RATES CR&R Incorporated Page B-1 Newport Beach - City Facility Rate Sheet Monthly Rates effective starting 03/01 /2026 at $43.76/ton Disposal Rate Cost shall include any and all labor, equipment, materials and supervision required to perform services described herein. Waste 1 x per 2x per 4x per 5x per 6x per 7x per Size 3x per week Stream week week week week week week Landfill 35gal $ 10.46 $ 20.92 $ 31.38 $ 41.84 $ 52.30 $ 62.76 $ 73.23 Landfill 35gal 1x per week 2x per week 3x per week 4x per week 5x per week 6x per week Rate Components Non -Pass Through Service Non -Labor Labor Pass Through Disposal Monthly Rate Weekly Rate Per Tip Rate Additional Pickup $ 5.68 $ 3.14 $ 1.64 $ 10.46 $ 2.42 $ 2.42 $12*42 $ 11.36 $ 6.28 $ 3.28 $ 20.92 $ 4.83 $ 2 $ 17.04 $ 9.41 $ 4.92 $ 31.38 $ 7.25 $ 2 $ 22.72 $ 12.55 $ 6.57 $ 41.84 $ 9.66 $ !2.42 $ 28.40 $ 15.69 $ 8.21 $ 52.30 $ 12.08 $ 2$ 34.08 $ 18.83 $ 9.85 $ 62.76 $ 14.49 $ 2 Page 1 of 1