Health district embroiled in controversy
- September 27, 2010
Rarely does a governmental body decide that taxpayers would be better served if it went out of existence.
But that is what two of the three board members for the Mt. Diablo Health Care District concluded last month when they voted to dissolve the organization, as recommended by two grand juries.
"It's just a district that has no purpose," said board member Dr. Michael Baker, who is the head of the surgery department at John Muir Medical Center in Walnut Creek.
However, don't expect the district, which collects $265,000 in property taxes annually from central Contra Costa residents, to vanish anytime soon. Board Chairwoman Grace Ellis maintains that the vote was illegal, and said she expects to join two new board members who will be seated in December in reversing the decision.
Ellis noted the organization recently helped train more than 3,000 high school freshmen in CPR techniques, has purchased and installed about a dozen defibrillators at schools and community sites, and has provided grants to local organizations.
"There is just a plethora of things we can get involved in," she said.
The debate marks the latest chapter in the convoluted history of the district, which was formed in 1948 to oversee the construction and operation of the then-Mt. Diablo Medical Center in Concord.
The district encompasses Concord, Pleasant Hill, Martinez and portions of Lafayette.
In 1997, the board agreed to merge the hospital with the private John Muir system, giving up control of the facility and much of its power.
Since that time, the district's continued existence has triggered heated debate.
Supporters such as Ellis note that it can serve as a watchdog to help ensure that John Muir leaders maintain full services at the Concord hospital and do not lavish all of their attention and resources on the Walnut Creek campus.
However, others view the district as more waste than watchdog. Contra Costa County grand juries in 2001 and 2003 recommended disbanding it, noting that its property taxes were spent mainly on supporting the board members and their benefits, including $35,000 annually in medical benefits.
One of the biggest lightning rods for critics has been the lifetime health and dental insurance that Ellis and former board member and Concord City Council candidate Ron Leone will receive. This benefit, initially given to those who served at least 12 years on the board, has since been eliminated for future panelists. However, it remains a hefty expense for the district. A 2008 audit estimated it has created a $650,000 unfunded obligation.
Regardless of what happens to the district, there will be no break for taxpayers. If the district shuts down, the property taxes would continue to be collected. The money that is left over after meeting the district's obligations would be redistributed to other tax-supported agencies.
The latest dispute over the district's fate ignited at the Aug. 12 board meeting after an announcement that two of the five board members had resigned.
Dr. John Toth wrote in his resignation letter that his goals as a board member had been met, including John Muir's decision to install a state-of-the-art cardiac center at the Concord hospital as well as new operating and patient rooms. That demonstrated John Muir's commitment to maintain the Concord campus as a fully functioning hospital, he said.
Board member Linda Stephenson wrote that an unexpected change in "life circumstances" left her unable to fulfill her duties.
As the board began discussing spending $80,000 on a November election to fill the open seats, Baker surprised his colleagues by questioning the district's existence.
Baker had been appointed to the board in March to fill a vacated seat. He said he thought he could help out because of his organizational skills, including heading the surgery department at the Walnut Creek hospital and serving as a rear admiral in the Navy Reserve Medical Corps. He retired from the Navy Reserve in 2005.
After attending several meetings, Baker said, he concluded that "everybody's heart is in the right place," but that the district's activities could be done by others at a less expensive cost. He said he saw no reason to have an agency with its own governing structure, equipment and election costs.
"This board has outlived its usefulness," he said. "The less boards and committees that we have spending money, it's going to be a lot better for taxpayers.
"The board was very dysfunctional," he added. "It was not getting anything done. The board could barely hold a meeting because there was so much bickering over Robert's Rules of Order."
Baker made a motion to dissolve the district, and board member Frank Manske quickly seconded it. Manske, a board member for 10 years, has long wanted to eliminate the district but could not garner enough votes.
"I don't think the district has a legitimate purpose for existing any more," he said. "There were lots of things we wanted to do, but the district is not really set up to fund those things and make them happen."
The board voted 2-1 to dissolve the district, with Ellis in opposition.
Ellis pointed to several district accomplishments in recent years to improve health in the area, including:
-In May, providing $78,000 to buy take-home CPR kits and train nearly 3,000 freshmen in the Mt. Diablo school district in lifesaving techniques. The district teamed with the American Heart Association and Contra Costa County.
-Installing about a dozen defibrillators at schools and community meeting sites.
- Establishing a grant program that in 2008 provided more than $200,000 to local organizations. The district kicked in $133,000, and John Muir Health provided $140,600.
-Making $50,000 worth of nursing scholarships available at 91短视频.
After the closure vote, what happens next is an open question.
Baker and Manske said they assumed the decision would be referred to Contra Costa's Local Agency Formation Commission to identify the next steps. A vote of district residents would be required to dissolve the district.
But Ellis maintains that the board vote was illegal because the issue was not on the agenda. She also argues that at least four board votes are required for such a decision.
Asked if she intends to refer the decision to LAFCO, Ellis replied, "absolutely not."
Ellis said she does not plan to schedule any board meetings before December, when two new members will take office because they were the only ones who applied. Baker's seat also will open up because he has decided not to seek re-election.
Baker sent Ellis an e-mail Sunday asking her to schedule a meeting soon, noting that she has canceled both the September and October meetings.
Both candidates expected to take office in December -- Gregory Lemmons, a 60-year-old self-employed business consultant, and Roy Larkin, a 63-year-old retired chief financial officer -- said in interviews last week that they think the district should continue.
"They are doing a service to this community and I want to keep that service going," Larkin said. "I think that once you get a totally active group in there, people will be pretty happy with what they see."
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