SHCD Position Statement

By Frederick A. "Fred" Graham

History & Agenda for Dissolving SHCD

Frederick A. "Fred" Graham - Candidate Sequoia Health Care District + Board of Directors

I am a member of a three person slate, (Hickey-Graham-Stogner), dedicated to dissolving the Sequoia Health Care District (SHCD). SHCD was originally established by the voters in 1946 as the Sequoia Hospital District (SHD), funded with a 1% property tax to build and operate Sequoia Hospital. At the time the Peninsula was still largely agricultural with no hospital between San Francisco & San Jose.

Over the years, numerous additional hospitals were built such as Seton; Mills; Kaiser; Stanford and others. By 1996, SHD was running in the red to the tune of $27 million/year due to mismanagement. It was decided to sever all relations with SHD and sell all the Hospital assets and liabilities to Catholic Health Care West (CHC-W. This was done and in the process SHD was transformed into SHCD. But this was a name change only without following the substantive requirements of the Local Government Reorganization Act ("Cortese-Knox") and submitting it to voter approval as required under the Local Agency Formation Commission (LAFCO). The requirements under the Act are quite different for a Hospital District and a Health Care District; about the same as changing a Police District to a Fire District in name only and expecting the police to start putting out fires.

Consequently, two Grand Juries in 2000 and 2002 both recommended the SHCD be dissolved and its assets, liabilities and property tax revenues be distributed according to law.

If the Hickey-Graham-Stogner slate is elected, we intend to implement the Grand Jury recommendations as follows:
1. Stop collecting property taxes beyond those needed to fulfill existing grants and programs.
2. Stop any new grants or programs.
3. Not renew any existing grants or programs.
4. Reduce administrative expenses and board members compensation to a fair level commensurate with the effort involved.
5. Increase transparency of SHCD activities by publishing income/expense/balance sheet and board member compensation information on the SHCD web site.
6. Provide line item certified audits by independent auditors of the disposition of funds for all grants and programs to insure they are applied exclusively and only to health related issues.
7. Gradually phase out, over an estimated four year period, all activities of SHCD in an orderly, responsible & compassionate way so as to insure existing grantees & programs are not adversely affected.
8. Legally dissolve the SHCD in accordance with LAFCO. If the community sees the need for a successor, properly chartered, "Mid Peninsula" Health Care District", support its establishment by referendum to the voters under LAFCO rules, and arrange transfer of the assets/liabilities/income to the new District.

If only one or two of us from our ticket is/are elected, and I am one of them, I will serve as a good-faith minority member, discharging my duty in accordance with my conscience for the good of the community as I see it. I would then focus on supporting items 4 to 6 above.