Special Notice / Hearing: None__
Vote Required: Majority
To: Honorable Board of Supervisors
From: Michael P. Callagy, County Executive
Colleen Chawla, Chief, San Mateo County Health
Chester J. Kunnappilly, MD, Chief Executive Officer, San Mateo Medical Center
Subject: Amendment to the Memorandum of Understanding Between San Mateo Medical Center and San Mateo County Health Foundation
RECOMMENDATION:
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Adopt a resolution authorizing Amendment No. 3 to the Memorandum of Understanding (MOU) between San Mateo Medical Center (SMMC) and San Mateo County Health Foundation (SMCHF), increasing the amount of the agreement by $100,000 to an amount not to exceed $350,000 for the 2026-2027 fiscal year.
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BACKGROUND:
San Mateo County Health Foundation (SMCHF) is a fundraising foundation committed to advancing wellness in San Mateo County. SMCHF promotes and champions the health and wellbeing of all residents, regardless of ability to pay, primarily through supporting excellence and innovation in the County’s hospital and clinic system.
On May 8, 2012, by Resolution 071934, the County entered into a Memorandum of Understanding (MOU) with SMCHF to provide $250,000 in operational support to SMCHF in FY 2011-12. SMCHF agreed to distribute at least $500,000 to SMMC in that fiscal year to support SMMC programs, projects, or equipment needs.
On August 12, 2018, and October 29, 2020, the parties executed amendments to the MOU that continued SMMC’s $250,000 annual support of SMCHF’s operating expenses and committed SMCHF to distributing to SMMC an annual minimum of 115 percent of SMMC’s annual contribution for that fiscal year to SMMC programs, projects, and equipment needs. The total amount of funding for SMCHF under the MOU, as amended, may not exceed $250,000 per year.
DISCUSSION:
SMCHF leverages the County’s contribution toward its administrative costs to raise a greater amount of funding among its donor community to support SMMC and other programs benefiting the health and wellness of County residents. The proposed amendment increases the County’s contribution to SMCHF for FY 2026-27 by $100,000 to an amount not to exceed $350,000. Thereafter, the County’s contribution to SMCHF will revert to the current amount not to exceed of $250,000 per year. SMCHF’s commitment to distribute an annual minimum of 115 percent of SMMC’s annual contribution is unchanged.
SMCHF is facing increased operational and administrative costs. The proposed one-time increase in the County’s contribution to SMCHF for FY 2026-27 will enable SMCHF to address those increased costs while allowing additional time for the County and SMCHF to continue to evaluate and discuss the financial needs of both SMCHF and SMMC.
The County Attorney’s Office has reviewed and approved the resolution and amendment as to form. The resolution contains the standard provisions allowing amendment of the County’s fiscal obligations by a maximum of $25,000 (in aggregate). Under the terms of the proposed amended MOU, SMCHF will distribute a minimum of $402,500 to SMMC programs, projects, or equipment for FY 2026-27.
PERFORMANCE MEASURE:
|
Measure |
FY 2025-26 Estimated |
FY 2026-27 Projected |
|
Anticipated Annual Contribution to SMMC |
$287,500 |
$402,500 |
COMMUNITY IMPACT:
SMCHF funding supports SMMC’s key programs and initiatives that serve the most vulnerable in our communities. Continued SMCHF funding will help SMMC to serve the healthcare needs of its patients, including those facing health, social, environmental, and economic challenges.
FISCAL IMPACT:
The maximum amount of funding for SMCHF under this amendment for FY 2026-27 is $350,000. Funds in the amount of $350,000 will be included in the SMMC FY 2026-27 Recommended Budget. SMCHF commits to distributing a minimum of 115 percent of SMMC’s annual contribution for that fiscal year.