SAN BRUNO (CBS SF) – San Bruno city officials announced Monday that a $70 million settlement has been reached with PG&E for restitution for the deadly 2010 pipeline explosion in the city.

The settlement comes after months of negotiations between the city and utility over what compensation is necessary for the Sept. 9, 2010 blast, which killed eight people and destroyed or damaged more than 100 homes.

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The agreement calls on PG&E to pay the $70 million within 30 days. With the money, the city will establish a nonprofit public purpose entity to manage the funds and determine how they should be spent, according to city officials.

“This money will be used for the benefit of all the citizens of our city and to help us, as a community, get beyond the tragedy and devastation caused by PG&E’s explosion and fire,” Mayor Jim Ruane said in a statement.

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The restitution is in addition to a previous $70 million trust set aside by PG&E to pay for direct damages of the explosion, such as destroyed pipelines, sewers, roads and other infrastructure. The utility has pledged not to seek to recover the payment through insurance or ratepayers.

KCBS’ Susan Kennedy Reports:

“We committed the night of the tragedy and continue to commit that we will help the victims and the community heal and rebuild. Today’s announcement is another step in that process,” PG&E President Chris Johns said in a statement.

Ruane and other city officials plan to discuss the settlement at a news conference scheduled for 10:45 a.m. today at San Bruno City Hall.

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