September 1 Board Meeting Summary
The Board of Directors of the San Bruno Community Foundation held its regular monthly meeting on September 1, 2021, via Zoom. President Emily Roberts opened the meeting by recognizing the 11th anniversary of the 2010 gas pipeline explosion in San Bruno's Crestmoor neighborhood, remembering those who lost their lives and homes in that tragedy, and reflecting on the collective challenges currently facing the community, including COVID-19 and wildfires. With a full agenda, the Board handled a series of agenda items, including:
Investment Update from Sand Hill Global Advisors: The Foundation's investment adviser, Sand Hill Global Advisors, LLC, made its annual presentation to the Board. Sand Hill CEO Brian Dombkowski gave the firm's assessment of the economic and market outlook, highlighting three key themes driving the current market environment, including pandemic conditions, government stimulus and Federal Reserve policy, and inflation. Senior Wealth Manager Kristin Sun reviewed the three pools of the Foundation's investment portfolio: (1) a Quasi-Endowment Pool, with a long-term time horizon following a classic endowment investment strategy (June 30, 2021, balance of $22.9 million); (2) a Strategic Pool to be spent down over the next several years on strategic projects and operations (June 30 balance of $31.9 million), and (3) a Liquidity Pool to cover the Foundation's near-term cash needs (June 30 balance of $24.4 million). She explained that the portfolio has realized total gains of $20.4 million in the past five years since the Foundation took possession of the restitution funds in May 2016 (initial funding balance of $69.9 million), factoring in the $11 million in withdrawals to support all of the Foundation's investments in the community. In closing, Mr. Dombkowski noted that the firm is honored to work on behalf of the Foundation and the San Bruno community.
Treasurer Tim Ross noted that, at its August 18 meeting, in addition to receiving its regular report from the Sand Hill team, the Investment Committee discussed cash flow strategies related to the San Bruno Recreation and Aquatic Center grants and, at the Board’s request, the investment strategy proposal under consideration as part of the strategic planning process. The committee and the Sand Hill team found the Board’s approach to be a reasonable strategy focused on ensuring that the Foundation continues to make a meaningful impact in San Bruno, rather than on continuing in perpetuity. The committee recommended that any necessary updates to the Investment Policy Statement and the Investment Operating Plan take place close to the beginning of the fiscal year (2023-2024) when the updates would take effect.
Report on the Small Business Recovery and Assistance Program (SBRAP): Michael Kane, Dean of Business, Education, and Professional Programs at Skyline College, and Eva Zermeño, SBRAP coordinator, updated the Board on the Small Business Recovery and Assistance Program, which is run by the Bay Area Entrepreneur Center of Skyline College (BAEC). This program is providing crucial support to San Bruno businesses struggling to overcome the impacts of the COVID-19 pandemic. This spring SBCF awarded the BAEC a second grant of $157,000 to support continuation of the program through 2021. With the second grant, the BAEC funded a second set of $7,000 micro grants to 15 San Bruno small businesses; funding from the City of San Bruno using American Rescue Act Funds (ARPA) COVID-relief funding allowed the BAEC to provide micro grants to 16 other eligible small businesses. The micro grant winners were recognized in an August virtual awards ceremony. Ms. Zermeño noted that the BAEC continues to provide workshops and coaching to struggling small businesses through SBRAP.
Report on Other Programs: Executive Director Leslie Hatamiya provided updates on the Foundation's other programs:
Community Grants Fund: The sixth annual cycle of the Community Grants Fund launched at the beginning of July, and the application deadline is September 22, 2021. The Foundation is pleased to have the support of Google.org and YouTube again this year; with the Google/YouTube donation of $100,000, the Foundation will award grants totaling $300,000 in December.
Crestmoor Neighborhood Memorial Scholarship: The Foundation has disbursed all but one 2021 scholarship payments. The 2022 Crestmoor Scholarship program will launch in December 2021, with a March 1, 2022, application deadline.
Recreation and Aquatic Center Project: Through a series of strategic grants, SBCF is contributing $50 million of the $60 million budget covering the Recreation and Aquatic Center's design and construction. On Friday, August 27, 2021, the City of San Bruno celebrated the start of construction on the new Recreation and Aquatic Center with a festive groundbreaking ceremony in San Bruno City Park. As part of the ceremony, SBCF Vice President Jim Ruane reflected on the 2010 gas pipeline explosion nearly 11 years ago that led to the restitution settlement with PG&E and the creation of the Foundation, and on the Foundation's vision to launch and fund this significant community facilities project, which will benefit San Bruno for decades. The groundbreaking was featured in a San Mateo Daily Journal article.
Tanforan Memorial: In June, the Board approved a $150,000 grant to the Tanforan Assembly Center Memorial Committee (TACMC) to support the installation of a permanent memorial, located at the San Bruno BART station, in honor of the nearly 8,000 Americans of Japanese descent interned at Tanforan during World War II. Since June, TACMC has made significant progress towards beginning construction on the memorial. Architectural firm RHAA has finalized and submitted construction drawings to BART for approval and issuance of the construction permit. TACMC is expecting to begin construction on the memorial in the fall, with a grand opening planned for late April 2022 to coincide with the 80th anniversary of the opening of the Tanforan Assembly Center in 1942.
Approval of Strategic Plan 2.0: After a thorough presentation by the Ad Hoc Committee on Strategic Planning Process, the Board approved Strategic Plan 2.0, which sets forth the Foundation's program and investment strategies once the Foundation has fully disbursed $50 million to the City of San Bruno for the design and construction of the new Recreation and Aquatic Center and identifies key operational actions going forward. Strategic Plan 2.0 is the culmination of the Foundation's three-part strategic planning process, which included diversity, equity, and inclusion training, Community Listening Campaign 2.0, and a series of three strategic planning sessions led by Dr. Shawn Spano of the Public Dialogue Consortium. In accordance with Strategic Plan 2.0, the Board created the Ad Hoc Committee on Program Development, which is charged with reviewing the community needs and program ideas identified in Community Listening Campaign 2.0, recommending to the Board priority areas for both larger (at least $1 million) and smaller (under $1 million) Strategic Grants, and assessing proposals and opportunities for Strategic Grants in the near- and mid-term. The Board appointed Vice President Jim Ruane (chair) and Board Members Nancy Kraus and Malissa Netane-Jones to serve on the new committee.
Report from the San Bruno Community Foundation Board Nomination Ad Hoc Committee: On behalf of the committee, on which Board Member Malissa Netane-Jones and San Bruno City Councilmembers Tom Hamilton and Michael Salazar also serve, President Roberts reported that the committee met for the first time on August 11, selecting Councilmember Hamilton as chair, reviewing drafts of the recruitment brochure and application and directing staff to prepare final drafts, and agreeing on the proposed timeline. The San Bruno City Clerk's office released the recruitment brochure and application on August 13, and the application deadline is Friday, September 17, at 5:00 p.m. The committee asked all Board members to reach out to their networks to encourage qualified and interested community members to apply.
Other Matters: On behalf of the Foundation, President Roberts presented proclamations to outgoing BAEC Director Pcyeta Stroud, who has been a key partner in the Foundation's support for the Small Business Recovery and Assistance Program, and outgoing SBCF Program Manager Stephanie Rutgers, who has managed the Community Grants Fund and Crestmoor Scholarship programs for the past five years. Executive Director Leslie Hatamiya introduced incoming Program Manager Lorin Lee, who is taking over administration of the two programs. Ms. Hatamiya also reported that she and Accounting Consultant Frank Bittner have been working with the team from Novogradac & Company LLP on the fiscal year 2020-2021 audit. Finally, the Board had a discussion about its upcoming officer elections for 2022.
