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Rationale for Sequoia Healthcare District's continuation of collection.

Original post made by Jack Hickey, Woodside: Emerald Hills, on Aug 28, 2014

When the Sequoia Hospital District(alias Sequoia Healthcare District) sold Sequoia Hospital with voter approval of Measure H in 1996, voters were unaware that the district would continue collecting taxes to pursue expanded powers granted to Healthcare Districts by the legislature.

The 2000/2001 SMC Civil Grand Jury said this:

"Measure H did not mention either the tax revenues already being received by Sequoia Hospital District or what would become of future tax revenues. The documents made available to the voters, including Impartial Analysis of Measure H, Argument in Favor of Measure H, and Resolution 96-4 which is referred to in Measure H, are all silent regarding the continuing tax revenues. Examination of the documents, including the Memorandum of Understanding, of the sales transaction of the district's assets to CHW reveals that there is no mention of the continuing tax assessments and revenues to the district.

Neither was there any mention in any in the 1996 election literature that the continuing tax revenues used to maintain the hospital would in the future, at the board's discretion, be donated for other purposes including, but not limited to, support of non-profit charitable organizations."


Buried in the Memorandum of Understanding Web Link which states:
___"District shall on an ongoing basis retain one hundred percent (100%) of its Tax Revenues, and shall utilize those funds, net of District's operating expenses, in furtherance of its purposes as a California hospital district (District Purposes"), through:
a. Programs and other activities provided or operated by Corporation and approved by District;
b. Programs and other activities provided or operated by other parties and approved by District; or,
c. Programs and other activities provided or operated by District;
provided, however, that no such programs or other activities funded by District's Tax Revenues shall be programs or other activities that duplicate the programs, activities or services of the Hospital."

This was part of a Membership Agreement which said:

"THIS MEMBERSHIP AGREEMENT ("Membership Agreement") is made and
entered into as of the 30th day of September, 1996 ("Effective Date"), by and between SEQUOIA HEALTH SERVICES, a California nonprofit public benefit corporation("Corporation"), SEQUOIA HOSPITAL DISTRICT, a California hospital district ("District"), and CHW WEST BAY, a California nonprofit public benefit corporation ("CHW-WB")."

In essence, Sequoia Health Services and CHW), the new owners of the hospital, agreed to relinquish all claims to the property taxes collected pursuant to the original assessment approved by voters for the purpose of building and operating Sequoia Hospital.

Art Faro, then President of the Board sent a memo which resulted in the following "History of Sequoia Healthcare District" document: Web Link

It should be obvious that the decision for such retention of Tax Revenues by the District should be made by voters, and should have been made clear in the primary election material.


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