The city plans to establish a not for profit entity to manage the funds and determine how the money should be spent.
"Still, we know that nothing, no amount of money, no amount of apologies, will ever bring back the citizens we lost, the homes that were destroyed," Mayor Jim Ruane said.
San Bruno residents hardly seemed overwhelmed by the amount of the restitution, while others had ideas on how they'd like to see the money spent.
"In San Bruno everything is such a mess anyway, with the schools, why don't they take care of the schools and kids and do something for children," resident Ellen Baioni said.
"I'm not sure it's a fair settlement; it's something, but I don't think it's necessarily fair," resident Jason McDevitt said.
The restitution is in addition to a previous $70 million trust set aside by PG&E to pay for direct damages of the explosion, which killed eight people and destroyed 38 homes.
PG&E President Chris John issued a statement saying, "We committed the night of the tragedy and continue to commit that we will help the victims and the community heal and rebuild."
Some families are still seeking damages from a different lawsuit against PG&E.
The city is still expected to get some kind of compensation from the California Public Utilities Commission. The National Transportation Safety Board found that the CPUC did not adequately police PG&E.
Under the deal announced Monday, PG&E will pay the money in the next 30 days.