January 27, 2026
Agenda Item No.6
TO:
HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM:
David A. Webb, Public Works Director - 949-644-3311, [email protected] PREPARED BY:
Charles Springer, Senior Management Analyst - 949-718-3466, [email protected] TITLE:
Approval of Amendment No. Three to Commercial Refuse Removal Services Contract with CR&R Inc. (Contract No. 8569-1) ABSTRACT:
The City of Newport Beach contracts with CR&R Incorporated (CR&R) for regular trash and recycling collection services for City facilities and the Balboa Village District. The current contract expires on February 28, 2026. As recommended by 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 $929,882 to a new total of $2,020,000.
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. Three to Agreement with CR&R Incorporated for Commercial Refuse Removal Services increasing the total not-to-exceed amount by $929,882.11 for a new contract total of $2,020,000 and extend the term to December 31, 2029; and c) Authorize the Mayor and City Clerk to execute the amendment.
DISCUSSION:
CR&R provides source-separated waste collection services for 28 City facilities and the Balboa Village District via the Washington Street waste enclosure. The contract includes cart, bin and roll-off service, seasonal service needs for Marina Park and the Junior Lifeguard Building, the training needs for Fire Station 7, and facility waste enclosure cleaning.
Additionally, Orange County Waste & Recycling is in the process of revising its master Waste Disposal Agreements, which expire June 30, 2026, which controls landfill disposal cost provided to local jurisdictions. The draft County agreement currently being reviewed and negotiated proposes significant landfill disposal rate increases, extending over the next 10 years. In reviewing the County disposal costs currently proposed, as well as potential annual CPI increases, staff estimates the City facility container contract cost could increase by an average of approximately $260,000 per year, or $975,000 over the extended term being requested as these increase 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. Three to Agreement with CR&R for Commercial Refuse Removal Services to increase the total not-to-exceed amount by $929,882, and extend the term to December 31, 2029.
FISCAL IMPACT:
The adopted budget includes sufficient funding to cover the proposed increased contract cost. It will be expensed to the Services Contract account in the Public Works Department, 0108051-811017. 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.
NOTICING:
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 Sheets
Attachment B – Amendment No. three to Commercial Refuse Removal Services Agreement with CR&R, Inc.
Amendment to Commercial Refuse Removal Services Contract with CR&R Inc. (Contract No. 8569-1) January 27, 2026
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