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4 DATE: October 7, 2024
TO: Mayor and Members of the City Council
VIA: Stefan Chatwin, City Manager
Marlene Subhashini, Assistant City Manager
FROM: Derek Schweigart, Parks and Recreation Director
DEPARTMENT: Parks and Recreation
SUBJECT: RECREATION CENTER SURPLUS OFFICE FURNITURE AND
EQUIPMENT DONATIONS TO LOCAL NON-PROFIT
ORGANIZATIONS
RECOMMENDATION
It is recommended that the City Council of the City of Foster City adopt the attached resolution authorizing the donation of Recreation Center surplus office furniture and equipment and find that the donation of surplus furniture and equipment would be exempt from review under the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines section 15061(b)(3).
EXECUTIVE SUMMARY
The Recreation Center closed to the public on September 16, 2024 to begin construction, and essential items were relocated to other City facilities. Items in good condition but not needed during the closure were moved to storage.
Surplus office furniture and equipment remained, and the Department followed City Purchasing Policy for managing the surplus items. First, other City departments were offered the items for their departments for City use, and then a public auction was held.
Despite these efforts, some items remained, and due to a poor resell market, local resell vendors declined interest. Staff now seeks City Council approval to donate the surplus to local non-profits, such as schools and churches, before considering disposal.
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4 BACKGROUND/ANALYSIS
On September 3, 2024, the City Council unanimously approved an award of contract to BHM Construction for construction of the new recreation center.
On September 16, the Recreation Center closed to the public to allow for the construction of the new facility. Essential furniture and equipment needed for ongoing operations were relocated to the Vibe, the Community Center, and temporary modular units. Items in good condition but not needed during closure were moved to Department storage areas.
After all useful items were relocated or stored, many objects remained at the Recreation Center, including office furniture and equipment. To mindfully repurpose the surplus, staff reviewed the City’s Purchasing Policy, Section 8 for direction on Surplus Equipment and Supplies, including Auctions, Sealed Bids, Sales Offers and Donating Surplus Assets.
Staff followed the process outlined below for the excess inventory:
1.Offered to other City departments for City use. A Citywide email was sent inviting departments to view items on September 19. Appropriate Capital Asset paperwork was completed for any Equipment Replacement Fund items requested by another department.
2.City-run auction for public. The City Manager and Finance authorization was granted to hold a public auction for any items not retained for City use. The public was notified of the auction through the City’s social media channels and notices in the Foster City Islander and San Mateo Journal. A sealed bid public auction was held September 30-October 2, and winners picked up their items on October 7-8.
After following the above steps, there are still several items left over (i.e. filing cabinets, bookcases, etc.). Many of these items are functional but show signs of wear and are not feasible for use in the new building due to their age and condition. It has been determined that these items have little or no market value using open methods of public sale (Attachment 2).
Staff contacted local liquidation, resell, and auction companies to see if there was interest in the surplus items for resale. Vendors indicated that the current resell market for these for office items is poor and resell is at a standstill. Many people set up home offices during the pandemic and purchased items during that period so are not looking to buy. Also, many tech and other companies have closed and there is a glut of similar items out in the market. The remaining options are to donate or dispose of the surplus.
Per Section 5 of the City’s Purchasing Policy, staff seeks Council authorization to donate the surplus to any interested local organization such as schools (public or private), churches, or service clubs and non-profit organizations before the moving to the final step of disposal.
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4 California Environmental Quality Act
The approval of the donation of the surplus furniture and equipment is not subject to review under the California Environmental Quality Act (CEQA) pursuant to Public Resources Code Section 21000, et seq. and the CEQA Guidelines (14 Cal. Code Regs. §§ 15000 et. seq.), including without limitation, Public Resources Code section 21065 and California Code of Regulations 15378 as this is not a “project” that may cause a direct, or reasonably foreseeable indirect, physical change in the environment and even if a project would be exempt under CEQA Guidelines 15061(b)(3) as it can be seen with certainty that there is no possibility that the donation of surplus furniture and equipment may have a significant effect on the environment.
FISCAL IMPACT
There is no fiscal impact due to disposal or donation.
CITY COUNCIL VISION, MISSION, AND VALUE/PRIORITY AREA
Facilities and Infrastructure
ATTACHMENTS:
Attachment 1 – Resolution
Attachment 2 – List of Surplus Furniture and Equipment