Special Meeting Called to Discuss Nonprofit Handling PG&E Settlement Funds

When the city reached a $70 million settlement with PG&E in March, leaders said it would take nine months to a year to set up a nonprofit organization, which would then figure out how to distribute the money. More details will be revealed tonight.

Nearly seven months after reaching a huge settlement with PG&E, the City Council has called a special meeting tonight to discuss the formation of the nonprofit agency that will handle the distribution of the funds.

In March, the city reached an agreement with the utility to pay $70 million in restitution to support the city’s recovery efforts following the tragic 2010 pipeline explosion.

Since then, the city has used $1.25 million to purchase five vacant lots in the Crestmoor neighborhood, with the rest—$68.75 million—being invested in U.S. Treasury bonds through an account at Wells Fargo and generating a small amount of interest.

To this day, the city hasn't specified how the funds would be spent, only saying that it would take nine months to a year to set up the nonprofit organization. 

Previously, Mayor Jim Ruane said that the restitution from PG&E would be used for "a greater good for all the citizens of our city and to help us, as a community, move forward.”

Today's study session will take place at 6:30 p.m. at City Hall in Conference Room 115.

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Martin Ricard October 04, 2012 at 04:59 PM
Not very many outside of city staff. I'll be posting a follow-up story later today.
Annie Goldstein October 04, 2012 at 09:34 PM
I hope the City Council has more meetings to discuss this issue; I could not join this meeting because it was very last minute. Perhaps the City Council could set up another meeting and give people a bit more time to plan? THANKS!!!
Joe Capote October 04, 2012 at 10:29 PM
Thanks Martin. Please let us know when any subsequent meetings will be held.
J. Rivera October 04, 2012 at 11:21 PM
What is the City trying to hide by not providing adequate notice to the citizens of San Bruno? They have done nothing for 7 months and out nowhere they schedule a meeting without including the public. In my opinion, every discussion, study session and meeting needs to be available on Youtube. How can the City use this settlement money for the "greater good" if the citizens are excluded?
Joe Capote October 05, 2012 at 12:20 AM
I doubtr there is very little going on, outside of the setup of the foundation. If you are familiar with 501c foundations, there is a lot to do in terms of setup, both from an IRS perspective and a california dept. of corporations perspective. I doubt very much that the city is trying to hide anything - getting that status from the IRS currently takes about two years. There will be plenty of meetings to discuss where the money is going, right now they are determining who makes the decisions and why.


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