Special Notice / Hearing: None
Vote Required: Majority
To: Honorable Board of Supervisors
From: Colleen Chawla, Chief, San Mateo County Health
Chester J. Kunnappilly, MD, Chief Executive Officer, San Mateo Medical Center
Subject: Resolution Approving the Hiring of San Mateo Medical Center Chief Financial Officer, David McGrew, to an Extra Help Position Prior to Post-Retirement 180-Day Separation Period
RECOMMENDATION:
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Adopt a resolution approving the hiring of San Mateo Medical Center Chief Financial Officer (SMMC CFO), David McGrew, to an extra help position to act as Special Projects Coordinator III in an Extra Help position subsequent to retirement, and certifying, pursuant to Government Code §7522.56, that the nature of employment and appointment is necessary to fill a critically needed position prior to the expiration of the post-retirement 180-day separation period.
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BACKGROUND:
On September 12, 2012, the California Public Employees’ Pension Reform Act, which is known as “PEPRA” (Assembly Bill 340), was signed into law effective January 1, 2013. Additionally, Assembly Bill 197, which amends a portion of the 1937 Act, was signed into law the same date to be effective January 1, 2013. The PEPRA legislation includes provisions in Government Code Section 7522.56 requiring a 180-day separation (sit-out) period following the date of retirement for non-safety retirees who are re-employed by a public agency within the same retirement system.
The 180-day sit-out period may be waived as provided in Government Code Section 7522.56(f)(1), if “the employer certifies the nature of the employment, and that the appointment is necessary to fill a critically needed position before 180 days have passed and the appointment has been approved by the governing body of the employer in a public meeting.” The appointment may not be placed on a consent calendar.
DISCUSSION:
San Mateo County Health’s Chief Information Officer (CIO) position has been vacant since May 2024, with the responsibilities covered since that date by the SMMC Chief Financial Officer (CFO), David McGrew, on an interim basis while a recruitment was underway to permanently fill the position. After an extensive recruitment effort, SMC Health recently completed its recruitment for the new CIO, who will begin in the position on June 22, 2025.
Additionally, Mr. McGrew announced his retirement from his permanent CFO position effective July 8, 2025, and his CFO position was double-filled effective March 2024 to afford internal candidates the opportunity to undertake the assignment. Formal recruitment for a successor CFO has been underway since March 2025. A successful candidate was recently selected, with an official start date of June 29, 2025.
As interim CIO, Mr. McGrew is currently overseeing San Mateo County Health’s (SMCH’s) second migration phase to an integrated electronic health record system (Epic), which is the most extensive and complex IT system implementation ever undertaken by SMCH. The CIO also has primary accountability for planning, organizing, and executing the strategic and operational initiatives to implement and maintain all software applications used by SMCH clinical and operational teams.
SMMC, as a public safety-net health provider, has revenue sources that are unique and complex, requiring years of experience to become an expert in translating the policy and regulatory implications into SMMC’s budget and operational planning. Additionally, SMMC, as an Enterprise Fund of the County of San Mateo, is subject to a separate annual financial statement audit which requires extensive knowledge of SMMC finances and operations to lead the organization through a successful audit. The CFO plays a vital role in the SMMC Executive Leadership structure. This is the role primarily accountable for all financial systems at SMMC, including budget management.
While the new CIO and CFO are well-qualified and experienced in their respective roles, Mr. McGrew’s knowledge, and 11 years of total experience in both roles will help to ensure continuity in meeting upcoming project deliverables and financial requirements. Despite the preparations made in advance of his retirement, Mr. McGrew’s expertise will continue to be required to carry out certain critical transition functions to ensure adequate knowledge transfer and support for the complex activities inherent to these CIO and CFO positions so critical to SMCH.
Mr. McGrew will be paid $154.43 per hour for a period not to exceed 960 hours in 12 months. This rate is Step B for the Special Projects Coordinator III (D074) and is approximate to the current hourly rate of pay for the SMMC CFO (D210).
The County Attorney has reviewed and approved the resolution as to form.
COMMUNITY IMPACT:
The SMCH CIO and SMMC CFO are critical executive roles for the continued delivery of services to SMCH clients, patients, and visitors.
FISCAL IMPACT:
There is no increase in Net County Cost associated with the recommended action. Appropriations to cover Extra Help costs are included in the FY 2025-26 Recommended Budget.