Community foundation in San Carlos set to launch

In 2017, the city reached a settlement with PG&E stemming from the utility’s mishandling of communication regarding the safety of a San Carlos natural gas line in 2012. Johnson’s term as a councilmember ended in January, and he has since then served on a 15-person steering committee formed to scope the vision, mission and impact of the foundation.

Though councilmembers opted to review the decision to transfer $2 million to the community foundation at their next meeting, they offered feedback on how the foundation could structure its investment policy, ensure its activities are transparent and fundraise in the future. Councilwoman Laura Parmer-Lohan recused herself from the discussion item.

Acknowledging he favored the foundation be able to be independent of the City Council, Mayor Mark Olbert characterized many of the questions city officials had about the entity’s structure as part of a larger discussion of how involved they wanted the council to be in the foundation’s day-to-day activities.

“I think part of what we’re wrestling with here is to what extent the city still wishes to still be involved in how the $2 million gets used,” he said, according to a video of the meeting.

Up for review for officials Monday were policies for the $2 million endowment’s investment, including rules that it could not be spent without City Council approval, a minimum of 10% of its earnings is added to the endowment fund each year and no more than 10% of its earnings is used for administrative costs. The foundation also proposed annual reporting to city officials on the organization’s goals and objectives, investment activity, grants and fundraising activities, among other items.

Criteria for the characteristics of organizations and projects that be considered for grant awards and events that would trigger returning the endowment to the city — including a loss of the foundation’s 501(c)3 status or a violation of its terms of agreement — were also outlined for officials.

Acknowledging the prevalence of major wildfires in the years since officials first considered establishing the foundation, resident Ken Castle expressed concerns the funds were not dedicated to public safety since they stemmed from a threat to public safety and advocated for officials to revisit their use. Though he was enthusiastic about the opportunity to set priorities around youth and families for the foundation, resident David Pollack hoped for more clarity on how the foundation’s priorities would be set.

“Before the funding is authorized, I strongly hope that the foundation can set priorities for its funds or at least a strategy to get to that point,” he said.

Jessica Yang, the community foundation’s president, said those involved with the fund have opted to focus their efforts in its first few years on how the entity can best support the nonprofits already serving the community. By helping nonprofits connect with each other and coordinate their events and volunteer opportunities through tools like a community calendar and a directory, the foundation would work toward establishing its ability to give back to the community, said Yang, who added the fund’s grantmaking would be targeted toward other nonprofits working in the community.

“Within the first couple years, our true intent is to support and amplify the good work of the existing nonprofits in the community already,” she said.

In an effort to address concerns raised by other nonprofits about the impact of the foundation’s fundraising activities, Yang said the foundation would slowly phase its fundraising into its activities over time. In response to Councilwoman Sara McDowell’s question about whether the foundation would be open to being known as the Community Foundation of San Carlos, Yang said the organization is amenable to it and is working with the San Carlos Education Foundation to come up with several name ideas to consider.

Councilmembers largely agreed they did not want the City Council to maintain too much control over the foundation’s activities to give the fund flexibility to make some of its own decisions. Though McDowell acknowledged she wasn’t advocating for the council to micromanage the foundation, she voiced support for steps Yang said it would take to ensure the organization is transparent about its activities, such as posting board meeting agendas and minutes online, keeping board meetings open to the public and making its financial documents and budgets available yearly.

“I just do feel kind of personally responsible for the $2 million because it’s public money,” said McDowell. “I’m still trying to think of ways we are accountable and the foundation is accountable to the public.”

Though Vice Mayor Ron Collins acknowledged it may make sense for the foundation’s investment policy to become slightly more risky over time, he favored considering a more conservative policy while the fund is in its initial stages. Because of concerns about excluding potential board members if they are required to donate to the foundation, Collins didn’t feel donations should be a requirement for board members, but said he hoped those forming it would consider strongly encouraging it.

“I would hope that you strongly encourage your members to be personally … literally invested in the campaign,” he said. “The public is going to see that … . I think that’s going to mean something.”

anna@smdailyjournal.com

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