The COVID-19 pandemic is a wake-up call for voters and taxpayers to hold our leaders and institutions accountable for the effective use of taxpayer dollars to protect the health and safety of the community.
The Peninsula Health Care District is one example of a public agency that, now more than ever, should be held to greater account. According to its audited financial statements, the district collected $7.4 million in property tax revenue in the year ending June 30, 2019. Of that amount, the district spent $2 million on community grant-making and $1.4 million on its staff and operations.
The district dedicated the $4 million balance of its annual property tax revenue to reserves (more than half of what the taxpayers entrusted the agency to spend). According to the district’s audit, a priority for the reserves was to support a private-pay assisted living and memory care facility, the Trousdale, where the cheapest residence is reported to cost $6,900/month.
The Trousdale is out of reach for all but the wealthiest among us. The monthly fee is more than half of the annual income of many elders and people with severe disabilities and chronic health conditions who depend on SSI and Social Security as their sole source of income. These extremely low-income, medically vulnerable seniors are in the crosshairs of the pandemic, and they have been completely excluded from the focus of the district.
Yet despite the high price of admission, the Trousdale continues to operate at a deficit because there are too many vacancies. There simply aren’t enough seniors whose families can come up with monthly fees of $7,000/month or more, which is what’s needed for the market-rate venture to break even. As a result, the Trousdale sits partially empty, a market failure financed by our tax dollars, while our hospitals scramble to find additional beds for the growing number stricken by COVID-19.
Notwithstanding the troubled results of the Trousdale, our taxpayer dollars are making it possible for the district to embark on another market-rate real estate venture, the Peninsula Wellness Center, on more than 6 acres of land it owns in Burlingame. Ignoring years of community advocacy for the district to develop the land to provide housing at all levels of affordability, especially for the health care workforce, the district is instead creating an office building and rental housing, with almost 60% of the apartments for rent to seniors who can afford monthly rent of up to $7,000/month.
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Once again, the pandemic has highlighted the district’s focus on the wealthiest among us and its indifference to the greatest community health needs. Our health care workers are at the front lines of an under-resourced health care system, fighting for all of us. Yet the district has ignored the community’s repeated call to use its land to create affordable housing for the health care workforce, and its failure of vision puts us all at risk.
If the district were a market rate company using private capital in a misguided venture to serve the wealthiest seniors in the Bay Area, we might find the inequity offensive but not our concern. But that’s not the case. The district is a public agency funded by our property tax dollars, we elected the board that is making these decisions, and as voters we now have a responsibility to call them to account.
At its March 26, board meeting which was held via Zoom, the members talked about the $3 million it publicly announced would be going to fund protective equipment and critical needs to fight the coronavirus. Indeed, the Board of Supervisors praised them for this contribution. However, the CEO and board members decided that night that the district would actually keep the money in reserve in the event that federal, state or other financial resources arrived and could be used instead. You will not see this discussion on any recording of the board meeting as it consistently refuses to record its meetings for the public.
Cynthia Cornell
A crisis is a terrible thing to waste. Let’s use the current one to demand that the Peninsula Health Care District cease its market-rate real estate development activities, focus on affordable housing for the health care workforce, and immediately meet with county health officials for direction on how best to use the district’s Trousdale facility and taxpayer-funded reserves to shore up our health care defenses.
Cindy Cornell is the founder of Housing for All Burlingame.
Ms. Cornell states, "... the CEO and board members decided that night that the district would actually keep the money in reserve in the event that federal, state or other financial resources arrived and could be used instead. You will not see this discussion on any recording of the board meeting as it consistently refuses to record its meetings for the public."
Too many government agencies operate in the dark. The San Mateo County Community College District (SMCCCD) Board of Trustees only recently began to broadcast its meetings, not because it was the right thing to do, but because the Governor's state of emergency demanded it. For a government agency responsible for revenue of $245 million, 84% of which comes from local property taxes, the lack of transparency is galling.
To promote accountability and transparency, citizens should demand that government adopt a Civic Openness in Negotiation (COIN) ordinance requiring independent fiscal analysis and public review before ratification of big contracts to prevent quid pro quo deals, conflicts of interest, and leaders ignoring their fiduciary responsibility.
Citizens are still wincing from "An arrangement to conceal — separation agreement prevents officials from explaining Galatolo’s removal" (Emily Mibach, Palo Alto Daily Post, September 4, 2019) which I am sure Trustees are hoping will just fade from the public memory.Â
To remove Galatolo as chancellor and to silence him, the Board agreed to a quid pro quo, paying him $1.2 million to do nothing until March of 2022, plus employee benefits as "chancellor emeritus" in a role that is traditionally ceremonial. Nice work if you can get it on taxpayer dollars!
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What might Galatolo have to say about his nineteen years at SMCCCD and his relationship with elected trustees if he wasn't tongue-tied by a contract? Certainly, he is being paid a lot of public money by SMCCCD Trustees to buy his silence.Â
Cynthia - I am in agreement with you on this fight against the Peninsula Health Care District. Why they are getting tax dollars at all is the greatest travesty that should be discussed. Throw the Sequoia Healthcare District in that argument as well.
Powerful piece. It's hard to imagine a worse use of tax dollars by a public agency than constructing market-rate housing, which is literally something "the market," aka private capital, is there for. The entire point of a public health agency is to provide benefits that the market does not provide. The Trousdale and proposed office/housing space don't come close to meeting that incredibly low standard.
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Ms. Cornell states, "... the CEO and board members decided that night that the district would actually keep the money in reserve in the event that federal, state or other financial resources arrived and could be used instead. You will not see this discussion on any recording of the board meeting as it consistently refuses to record its meetings for the public."
Too many government agencies operate in the dark. The San Mateo County Community College District (SMCCCD) Board of Trustees only recently began to broadcast its meetings, not because it was the right thing to do, but because the Governor's state of emergency demanded it. For a government agency responsible for revenue of $245 million, 84% of which comes from local property taxes, the lack of transparency is galling.
To promote accountability and transparency, citizens should demand that government adopt a Civic Openness in Negotiation (COIN) ordinance requiring independent fiscal analysis and public review before ratification of big contracts to prevent quid pro quo deals, conflicts of interest, and leaders ignoring their fiduciary responsibility.
Citizens are still wincing from "An arrangement to conceal — separation agreement prevents officials from explaining Galatolo’s removal" (Emily Mibach, Palo Alto Daily Post, September 4, 2019) which I am sure Trustees are hoping will just fade from the public memory.Â
To remove Galatolo as chancellor and to silence him, the Board agreed to a quid pro quo, paying him $1.2 million to do nothing until March of 2022, plus employee benefits as "chancellor emeritus" in a role that is traditionally ceremonial. Nice work if you can get it on taxpayer dollars!
Â
What might Galatolo have to say about his nineteen years at SMCCCD and his relationship with elected trustees if he wasn't tongue-tied by a contract? Certainly, he is being paid a lot of public money by SMCCCD Trustees to buy his silence.Â
Cynthia - I am in agreement with you on this fight against the Peninsula Health Care District. Why they are getting tax dollars at all is the greatest travesty that should be discussed. Throw the Sequoia Healthcare District in that argument as well.
Really nice article Cynthia. You hit the relevant points nicely
All the best
Powerful piece. It's hard to imagine a worse use of tax dollars by a public agency than constructing market-rate housing, which is literally something "the market," aka private capital, is there for. The entire point of a public health agency is to provide benefits that the market does not provide. The Trousdale and proposed office/housing space don't come close to meeting that incredibly low standard.
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Keep the discussion civilized. Absolutely NO personal attacks or insults directed toward writers, nor others who make comments.
Keep it clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
Don't threaten. Threats of harming another person will not be tolerated.
Be truthful. Don't knowingly lie about anyone or anything.
Be proactive. Use the 'Report' link on each comment to let us know of abusive posts.
PLEASE TURN OFF YOUR CAPS LOCK.
Anyone violating these rules will be issued a warning. After the warning, comment privileges can be revoked.