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Description
San Bruno City Council Meeting February 10, 2015
10b. SBCF Operational and Formation Expenses
B
B
Let
me
give
you
a
little
bit
of
background.
As
you
may
remember,
the
resolution
of
the
settlement
with
PG&E
was
70
million
dollars.
Sixty
eight
and
three-quarter
million
of
those
dollars
are
in
a
city
custodial
account.
One
in
a
quarter
million
dollars
will
be
added
approximately
once
the
crestmore
lot
escrow
with
castle
companies
closes
that
you
approved
at
one
of
your
recent
meetings,
and
that
should
happen
by
mid-april
so
that
total
70
million
dollars
is,
is
there
and
will
be
there
for
the
foundation
separately.
B
As
you
know,
the
glenview
trust
was
funded
with
50
million
dollars
and
an
independent
trustee
appointed
to
oversee
that
trust,
approved
the
formation
expenses
for
the
san
bruno
community
foundation
through
the
end
of
februari
of
2014.
But
once
the
board
started
regular
meetings,
which
were
in
March,
the
trustee
directed
that
the
foundation
pay
for
all
of
their
expenses
on
their
own
essentially
pay
their
own
way
after
they
started
the
regular
meetings.
So
the
board
has
now
hired
an
executive
director,
the
board
and
the
foundation
need
operating
capital
to
pay
her
salary
and
other
operating
expenses.
B
At
the
same
time,
the
board
is
not
quite
ready
to
accept
all
the
funds.
First,
they
have
to
adopt
an
investment
policy,
that's
subject
to
your
approval
and
they
need
to
retain
an
investment
advisor
they're
in
the
process
of
doing
that
by
issuing
an
RFP,
that's
going
to
be
developed
by
the
board
actually
at
their
at
their
next
meeting.
B
So
the
city
does
anticipate
the
future
transfer
of
all
of
those
remaining
funds
to
the
foundation
when
the
investment
policy
and
investment
visor
are
in
place,
but
up
until
then,
we
have
to
deal
with
present,
and
so
hence
tonight's
request
is
twofold.
The
first
request
is
to
transfer
350
thousand
dollars
from
the
city's
custodial
account
to
the
foundation
for
operating
capital.
B
That's
consistent
with
the
operating
budget
that
you
approved,
that
the
board
approved
as
well.
That
was
sent
to
the
IRS,
and
even
though
that
budget
was
estimated
and
based
on
reasonable
estimates,
the
board
will
have
to
come
up
with
its
own
budget,
but
I
think
that
both
the
foundation
and
staff
believe
that
three
hundred
and
fifty
thousand
dollars
is
a
reasonable
amount
of
money
and
is
consistent
with
everything
that
was
in
that
budget.
So
that's
the
first
request
for
tonight.
B
The
second
request
is
to
transfer
140
1031
dollars
and
thirty-three
cents
we
forgot
the
33
cents
to
reimburse
the
city
for
post,
March,
2014
operating
expenses
and
you'll.
Remember
these
are
the
operating
expenses
that
the
trustee
of
the
irrevocable
trust
said
should
be
borne
by
the
foundation
and
not
by
the
trust
and
by
extension,
not
by
the
city.
The
bulk
of
of
those
funds
were
expended
for
by
the
foundation
for
its
executive
director
search,
the
rest
of
it
is
outlined
in
the
staff
report
was
for
insurance,
some
outside
legal
fees,
supplies
and
so
on.
B
So
the
idea
is
that
out
of
the
city's
custodial,
account
will
come
one
hundred
and
forty
one
thousand
dollars
to
the
foundation,
and
then
the
foundation
who
will
have
set
up
their
own
bank
account
will
then
reimburse
the
city
that
exact
amount.
You're
wondering
why
go
through
that
rigmarole?
Why
can't
the
city
just
transfer
the
money
from
one
account
into
another?
B
The
answer
to
that
is
because
it's
important
for
audit
purposes
that
the
money
be
transferred
from
the
custodial
account
to
the
foundation
and
then
back
so
both
the
city
and
the
foundation
have
that
same
paper
trail
and
they
can
track
what
what
the
money
is
for.
It's
important
also
to
note
that
the
city
is
not
going
to
request
reimbursement
from
the
trust
has
not
requested
and
will
not
request
reimbursement
from
the
trust
for
that
amount.
B
So,
in
other
words,
once
the
city's
paid
back
from
the
foundation,
the
city
will
be
whole
in
terms
of
the
expenses
that
it's
that
it's
had
with
one
minor
exception.
There's
a
twelve
thousand
dollar
bill
from
the
executive
director
search
consultant,
the
very
last
portion
of
their
contract
that
was
approved
by
the
board,
which
just
arrived
today
so
will
account
for
that
in
the
final
distribution
when
the
rest
of
the
money
is
transferred.
B
So
for
tonight
the
total
transfer
is
490
1031
dollars
and
thirty-three
cents
I'll
work
with
Vicki
to
amend
that
resolution
to
include
the
33
cents
and
then
once
that's
accomplished,
the
foundation
can
be
on
its
way
at
least
we're
for
the
short
term.
The
city
can
be
reimbursed
in
the
short
term
and
we'll
look
forward
to
transferring
the
rest
of
the
funds
once
the
foundation
has
its
investment
advisor
and
policy.
That
concludes
my
report.
I'd
be
happy
to
answer
any
questions.
Any.