SBCF Board of Directors Selects Sand Hill Global Advisors, LLC,

as the Foundation's Investment Adviser

At its March 2, 2016, regular meeting, the SBCF Board of Directors unanimously approved Sand Hill Global Advisors, LLC, a Palo Alto-based, employee-owned investment management firm with client assets exceeding $1.5 billion, as the Foundation’s investment adviser. Sand Hill will assist the Board in developing its investment policy statement and will help manage two pools of investment funds: (1) a $15 million Board-designated endowment with a long-term investment strategy, and (2) $54 million in non-endowment strategic funds to be spent over the next 7-10 years on major projects.  

The decision to select Sand Hill came at the recommendation of the Ad Hoc Committee on Investment Strategy, which consists of Chair Ben Cohn and Members Frank Hedley and John McGlothlin, after a thorough review process. With the assistance of investment consultant Mark Hayes, Ph.D., a former managing director of the Stanford Management Company, the Committee evaluated the 17 proposals received in response to its Request for Proposals for Investment Management Services. The Committee held in-person interviews with five finalist firms and also conducted reference checks of the finalists.  

In recommending Sand Hill, the Committee concluded that Sand Hilll offered the best overall fit for the Foundation’s long-term investment needs, including service, cost, independence, and understanding of the Foundation’s unique situation. In particular: 

* The Sand Hill team demonstrates a clear understanding of the Foundation’s needs and the collaborative partnership the Foundation seeks to have with its investment adviser.

* Sand Hill is well suited to provide the hands-on support that the Foundation, as a new, lean nonprofit organization, needs as it develops its investment policy statement and takes possession of the restitution funds.

* Sand Hill offers a competitive fee structure to support a stable, long-term relationship with the Foundation.

* The Sand Hill team understands the Foundation’s unique needs as the administrator of the restitution funds, its accountability to the San Bruno community, and its mission to use the restitution funds to benefit the community through investments in projects, programs, services, and facilities that have significant and lasting benefits.

* The Sand Hill team understands the objectives and challenges of the Foundation’s two distinct pools of investment funds.

* Sand Hill is a SEC-registered, independent investment adviser, committed to the fiduciary standard, and thus its only interest is to provide the Foundation with the best possible investment advice. Sand Hill has no financial interest in any of the investment products it recommends to its clients.

Sand Hill Chief Executive Officer Brian Dombkowski and his colleagues Tony Craun and Kristin Sun made brief remarks to the Foundation Board, saying it was an "honor" to serve as the Foundation's fiduciary partner. They also expressed a "deep respect for the circumstances leading to the restitution funds" and for the Foundation's "extraordinarily compelling mission."

Board Meeting Summary

Other business covered at the March 2, 2016, Board meeting included:

Audit Committee Report: Chair John McGlothlin reported that the Committee met on February 4 to debrief the 2015 audit process and discuss preparations for the 2016 audit. He reported that the Committee, which also includes Board Member Patricia Bohm, decided to recommend that the Foundation continue its relationship with Novogradac & Company LLP, a national certified public accounting firm that conducted the 2015 audit. The Committee will meet with Novogradac representatives on April 20 (3:00 p.m. at San Bruno City Hall, Room 113) to discuss expectations for the 2016 audit.

Foundation Program Development Committee Report: Chair Patricia Bohm gave an update on outreach efforts to promote the Crestmoor Neighborhood Memorial Scholarship, including distributing flyers and posters to nearly 20 area high schools and four community colleges that San Bruno students may attend and saturating local businesses and gathering places with posters advertising the Scholarship. She also reported that the Committee, which also includes Secretary Emily Roberts, is next turning its attention to the development of a Community Grants Program that will launch this summer with a budget of $200,000.

Program Strategy Development Committee Report: Chair Nancy Kraus reported that the San Bruno City Council discussed the Foundation's proposals for four projects to be carried out in 2016 at its February 23 meeting and communicated its feedback in a letter from Mayor Jim Ruane to the Foundation. She shared that the letter expressed continued enthusiasm for moving forward on all four projects:

Community Facilities Vision Plan (proposed grant of $300,000): The City retained the services of Anderson Brule Architects to conduct a pre-planning process to determine the scope of the CFVP. The City anticipates that the pre-planning will be completed within two months, after which the City will determine the best approach for selecting an architecture firm to work with the City to prepare the CFVP.

Community Day Sponsorship (proposed grant of $30,000): The City and the San Bruno Lions Club have agreed to work together to coordinate Community Day and the Posy Parade on the same day this year - June 5, 2016. The City is moving forward with planning efforts for the event.

Lighted Crosswalks and Other Pedestrian Safety Efforts (proposed grant of $170,000): Because Google and Walmart have entered into discussions with the City about funding pedestrian improvements along Cherry Avenue, the City would like to focus on Foundation-funded pedestrian improvements on San Mateo Avenue in the downtown area. The City will task the Traffic Safety and Parking Committee to review and recommend proposed pedestrian improvements benefiting the downtown.

324 Florida Avenue Park Development (proposed grant of $200,000): To develop the vision and plan for this new park, the City plans to use a community park planning process (similar to what it is using in the Crestmoor neighborhood for the replacement of the Earl/Glenview Park that was destroyed in 2010), which brings together neighborhood residents, other interested community members, and a subcommittee of the Parks and Recreation Commission to develop a comprehensive plan for the park site. The Council expressed its enthusiasm for the project and its desire to partner with the Foundation to work toward completion of the park by the end of 2016.  

Discussion of Efforts to Enhance Communication with the San Bruno Community: Executive Director Leslie Hatamiya briefed the Board on recent efforts to bolster communication with the community in a cost-effective manner. She showcased the Foundation's new website at www.sbcf.org. She also reported on plans to begin a monthly email newsletter, which willl follow each regular Board meeting to provide a summary of what transpired at the meeting and disseminate other important Foundation news (this is the first one!), as well as plans to mail a "report to the community" once or twice a year to all residences and businesses in San Bruno. Finally, she spoke about Board meeting arrangements, including alternate locations and the pros and cons of televising meetings (such as the cost of doing so and the difficulty of measuring the size of viewership).  

Miscellaneous Administrative Matters: The Board also approved the January 2016 financial statements and the renewal of the Foundation's directors and officers liability insurance policy, including a fiduciary liability rider, from Philadelphia Insurance Companies.  

Next Regular Board Meeting:

Wednesday, April 6, 2016

7:00 p.m. - San Bruno Senior Center