Grand Jury challenges Caltrain electrification, Sequoia Health Care District Grand Jury challenges Caltrain electrification, Sequoia Health Care District (May 23, 2001)

By Marion Softky

Almanac Staff Writer

San Mateo County's Civil Grand Jury has just done what grand juries often do best: peer into government activities, rile people, and stimulate debate.

In four reports issued May 16, the Grand Jury did all those things. It:

**Challenged electrification of Caltrain, and asked for a new debate on extending BART down the Peninsula.

**Scolded the Sequoia Health Care District for spending taxpayers' money on nonprofit health agencies, rather than the hospital that is leased to Catholic Health Care West for operation.

**Reported the San Mateo County Harbor District is being run on a sound financial basis, but must either find more revenue or cut expenses if it is to pay off its long-term debt and make further improvements.

**Chided the Coastside County Water District for allowing board members to express personal opinions on stationary with district letterhead.

This year's Grand Jury is issuing its reports intermittently, with final reports coming out in June before it dissolves. The 19-member body is serving for 18 months instead of 12, as the county adjusts its schedule to match the fiscal year instead of the calendar year.

Herman Christensen of Atherton is foreman, and Judge Quentin Kopp is advisor.
Electrify Caltrain?

In its fourth report of this session, the Grand Jury took aim at the backbone of plans to improve the Peninsula's Caltrain rail service, and asked to revive the 50-year-old debate over bringing BART down the Peninsula.

"The benefits of electrifying Caltrain do not justify the $376 million price tag," the Grand Jury concluded in the report issued May 16. "Somehow BART has to be put in the equation," said Foreman Herman Christensen of Atherton at a press conference. "To have a system replaced by BART shortly thereafter would be foolish."

Rail activist Rick Silver countered, "BART is just too expensive and would take too long to do." Besides having trains that are faster, quieter and less polluting, he said, "the real, real benefit of electrification is cheaper operation and maintenance costs. Those in and of themselves are reason for electrification."

While acknowledging some benefits of electrification, the Grand Jury warned it would require thousands of unsightly towers and some extra power stations. It also questioned the benefits of extending Caltrain into downtown San Francisco, a project that has been adopted by Mayor Willie Brown, since the extension would require electrification of the whole line.

Overhanging decisions about improving Caltrain, in the Grand Jury's view, is the question of extending BART down the Peninsula. "Before moving forward with any electrification plans, San Mateo County must make a clear, long-term decision on BART" the report said.

"That decision has already been made," responded Menlo Park Councilman Steve Schmidt, who serves on the three-county Joint Powers board (JPB) that operates Caltrain. The decision to improve Caltrain instead of bringing BART farther down the Peninsula was made when San Mateo County put up $500 million to build an inter-modal station at Millbrae, where passengers can transfer between Caltrain and BART.

"Caltrain can be just as efficient _ in fact more efficient _ than BART," Mr. Schmidt said. "And it's compatible with the standard-gauge regional and statewide rail network."

If the Grand Jury is concerned about taxpayers' money, Mr. Schmidt suggested, they should look at the costs associated with BART. Since BART costs approximately $150 million a mile, a 70-mile system would cost $10 billion.

Mr. Christensen acknowledged the Grand Jury had not studied BART. "We concentrated solely on the impact of electrification of Caltrain," he said.
Sequoia Health Care

The Grand Jury also aimed a salvo at the Peninsula Health Care District, which is responsible for Sequoia Hospital. This also brought a testy response of "misleading" from several district officials.

The Grand Jury claimed that Sequoia Hospital was sold to Catholic Healthcare West in 1996, but taxes are still being collected. It further complains that most tax revenues are not going to the hospital, but to private nonprofit organizations that provide community health services.

The Grand Jury therefore recommends the district reduce property taxes unless voters approve expenditures not specifically described in previous elections in 1946 and 1996.

"That's very misleading," said Board Member Malcolm McNaughton of Woodside, who returned a phone call from Hawaii. "The hospital wasn't sold. It's like a long-term lease. It can come back to us at any time."

The current situation goes back to 1995 when the 1950-hospital, which serves residents from Belmont south to the county line, was facing insolvency due to rising costs, declining receipts from HMOs and Medicare, and fewer patients.

The board of the then-Sequoia Hospital District reached an agreement with CHW to form a nonprofit corporation to operate the hospital for 40 years _ or less if CHW wanted to get out. The corporation is governed by a 10-member board, five from CHW, and the five-member elected district board.

"They don't own it," agreed Frank Gibson, CEO of the healthcare district. "After 40 years, it comes back free and clear to the district."

Mr. Gibson and Mr. McNaughton also took issue with the Grand Jury's conclusions about tax revenue, which was over $4 million this year. The district has paid out more than $12 million over the years since the merger, Mr. Gibson said, and more than 80 percent of that _ $9.2 million _ has gone to the hospital for equipment, renovations and programs. This money came from both property taxes, and from the income from $30 million, paid by CHW at the time of the transfer.

The other $2.8 million has gone to nonprofit agencies that work to improve health in the community. District grants have gone to more than a dozen agencies that fight domestic violence, prevent child abuse, combat teen pregnancy, support recovering alcoholics, help Alzheimer's patients, and reach out to teens on the street.

All these uses of tax money are allowed by state law, Mr. Gibson said. Mr. McNaughton added, "As the district board, we feel a responsibility to maintain the health and well-being of the community."