CITY COUNCIL STAFF REPORT
DATE: MAY 12, 2026 CONSENT CALENDAR
SUBJECT: APPROVE AMENDMENT NO. 3 TO AGREEMENT NO. 23P056 WITH OFRS, INC., FOR HOMELESS ENCAMPMENT AND SITE CLEAN-UP
SERVICES
FROM: Scott C. Stiles, City Manager
BY: David McAbee, Director of Public Works
SUMMARY:
This action will approve Amendment No. 3 to Agreement No. 23P056 with OFRS, Inc., in the amount of $1,008,000 for a revised contract amount not to exceed $3,888,000 for homeless encampment and site clean-up services.
RECOMMENDATION:
1. Approve Amendment No. 3 to Agreement No. 23P056 with OFRS, Inc., to provide homeless encampment and site clean-up services for an additional amount of $1,008,000 for a total revised contract amount not to exceed $3,888,000 and extend the term of the contract through May 31, 2027; and
2. Authorize the City Manager or designee to execute all necessary documents.
BUSINESS PRINCIPAL DISCLOSURE:
According to the Public Integrity Disclosure form (Attachment B), OFRS, Inc., is registered in the state of California.
BACKGROUND:
The City of Palm Springs continues to work on solutions to assist the homeless population with services and temporary to permanent housing, and additionally, to address the homeless encampments that require continual attention. These sites can become a dumping ground for trash and debris, some of which contain both hazardous and biohazardous waste. These sites are located not only in the urban areas of the City but also within drainage ditches and washes, posing a challenge for access and a hazard for those living in these areas should there be a significant rain event.
City Council Staff Report
May 12, 2026 – Page 2
Approve Amendment No. 3 with OFRS, Inc.
On May 25, 2023, City Council approved Agreement No. 23P056 (Attachment C) with OFRS, Inc., for an initial three-year term for an amount not to exceed $1,200,000. This initial award amount equates to deploying the contractor an estimated 2 days a week.
On March 14, 2024, the City entered into Amendment No. 1 (Attachment D) to modify the schedule of fees, to modify the site cleanup mobilization cost per site charge and establish not-to-exceed costs for equipment used to reduce the monthly cost of services to the City.
On November 21, 2024, City Council approved Amendment No. 2 (Attachment D) with OFRS, Inc., providing for an additional $1,680,000, and a revised contract amount not to exceed $2,880,000 through the initial three-year term ending May 31, 2026. Staff anticipated an increased volume of services required at the start of the contract but anticipated reducing services in the second contract year. That reduction was not realized, and staff have been utilizing OFRS, Inc., services an estimated 4.5 days a week.
STAFF ANALYSIS:
OFRS, Inc. has been responsible for working respectfully with the homeless population to clean up these various sites on an as-needed basis. The services include remediation, disinfection, debris removal, bagging and tagging personal property for storage, posting and noticing prior to clean-up events, and proper hazardous and biohazardous waste disposal.
Staff recommend approval of Amendment No. 3 to Agreement 23P056 with OFRS, Inc., providing for an additional $1,008,000 for a revised not to exceed contract amount of $3,888,000 and extending the term of the contract through May 31, 2027.
ENVIRONMENTAL ASSESSMENT:
The requested City Council action is not a “Project” as defined by the California Environmental Quality Act (CEQA). Pursuant to Section 15378(a), a “Project” means the whole of an action, which has a potential for resulting in either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment. According to Section 15378(b), a Project does not include: (5) Organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment.
ALIGNMENT WITH STRATEGIC PLANNING:
This item aligns with the following City Council Strategic Plan Broad Goal: Public Safety and Community Services.
City Council Staff Report
May 12, 2026 – Page 3
Approve Amendment No. 3 with OFRS, Inc.
FISCAL IMPACT:
Funds for these services are budgeted and available in both the current Fiscal Year 2025- 26 and 2026-27 budgets in Public Works Account 1006515-40105.
REVIEWED BY:
Assistant Director of Public Works: Daniel Martinez
Director of Public Works: David McAbee
Procurement and Contracting Manager: Tabitha Richards
Assistant City Manager: Teresa Gallavan
City Manager: Scott Stiles
ATTACHMENTS:
A. Amendment No. 3
B. Public Integrity Disclosure
C. Agreement 23P056
D. Amendments No. 1 & No. 2