San Leandro Seeks Public Input for Eden Health District

From Alameda County:

The Alameda Local Agency Formation Commission (LAFCo) will hold the third of three special meetings on November 7, 2016 at 5:30 pm at San Leandro City Council Chambers, 835 East 14th Street, San Leandro, to solicit public input to help in the development of a special study of the Eden Township Healthcare District (ETHD), also known as the Eden Health District. The Commission already held two meetings in October, one in Castro Valley and the other in Hayward with about 30 people attending each meeting.

The special study will review the services the District currently provides, its financial position including any future obligations, and a fiscal analysis of various governance options, including dissolution. LAFCo has called the public meetings to obtain information from the District’s constituents regarding their views about the value of the Eden Township Healthcare District to the public; what, if any, specific needs and priorities the District should address; and whether the District’s functions should continue to be provided by another entity.

ETHD was formed in 1948 to finance, construct and operate Eden Hospital in Castro Valley, but no longer owns and operates the hospital. Currently ETHD provides grant funding to health-related organizations, oversees its investment fund, and owns three office buildings where it leases office space to various healthcare providers. The District covers Eden Township, which includes the unincorporated areas of Ashland, Castro Valley, Cherryland, Fairview, and San Lorenzo, and the cities of Hayward and San Leandro. It collects no tax revenues, and derives its revenue from net income from its office buildings. More information about the district can be found here.

In recognition of the need for a more coordinated and efficient public service structure to support California’s anticipated growth, the State Legislature established local agency formation commissions (LAFCos) in the mid-1960s. Among other duties, LAFCos are responsible for periodically reviewing the municipal services provided by local agencies under LAFCo jurisdiction. These service reviews, known as “Municipal Service Reviews” (MSRs), are intended to be an informational tool to help LAFCo, other agencies and the public better understand the municipal service structure. In 2013, Alameda LAFCo completed an MSR of ETHD which concluded that the District should continue in its current form.

Critics, including the Alameda County Grand Jury, have recently asserted that ETHD should be dissolved. Earlier this year, legislation was introduced in the State Assembly affecting the District including one bill signed into law (AB 2737) that imposes spending requirements on healthcare districts such as ETHD. At the July 2016 LAFCo meeting, the Commission approved a request from the City of Hayward to prepare a “Special Study” to help determine the future of ETHD. More information about Alameda LAFCo and the special study can be found here.

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