COUNTY OF SAN MATEO
Inter-Departmental Correspondence

Health System

DATE:

March 23, 2009

BOARD MEETING DATE:

June 9, 2009

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

TO:

Honorable Board of Supervisors

FROM:

Jean S. Fraser, Chief, Health System
Susan Ehrlich, MD, MPP, Interim Chief Executive Officer
San Mateo Medical Center

SUBJECT:

Agreement with Kevin W. Harper CPA & Associates

RECOMMENDATION:

Adopt a Resolution:

1.

Waiving the Request for Proposals process; and

2.

Authorizing the President of the Board to execute an Agreement with Kevin W. Harper CPA & Associates to provide support and assistance to the Interim Chief Financial Officer and Manager of Accounting at San Mateo Medical Center for a term of January 1, 2009 through December 31, 2009, for a maximum fiscal obligation of $249,680; and

3.

Authorizing the Chief of the Health System or designee to execute contract amendments which modify the County's maximum fiscal obligation by no more than $25,000 (in aggregate), and/or modify the contract term and/or services so long as the modified term or services is/are within the current or revised fiscal provisions.

VISION ALIGNMENT:

Commitment: Responsive, effective and collaborative government.

Goal 20: Government decisions are based on careful consideration of future impact, rather than temporary relief or immediate gain.

The Agreement contributes to this commitment and goal by providing necessary support and assistance in the area of finance so as to allow for accurate and timely submission of annual financial statements and certain recurring tasks.

Performance Measure:

Measure

FY 2008-09
Estimate

FY 2009-10
Target

Audit work completed on time (% of times)

100%

100%

BACKGROUND:

Kevin W. Harper CPA & Associates (Kevin Harper) contracted with the County from January 1, 2007 through December 31, 2008, to provide accounting assistance and advice. He developed an accounting schedule that detailed procedures, responsibilities and timeframes for tasks needed to close San Mateo Medical Center’s (SMMC) accounting records and prepare annual financial statements. During that time he worked closely with the Chief Financial Officer (CFO) and the Manager of Accounting.

DISCUSSION:

SMMC has two critical staff vacancies: CFO and Controller. The duties of the CFO position are currently being performed by a contract Interim CFO. Until the two positions are filled on a permanent basis, the Accounting Manager requires ongoing high level assistance. Kevin Harper possesses the knowledge and experience with SMMC financials to provide that assistance.

A waiver of the Request for Proposals process was approved by the County Manager on March 24, 2009. This contract was delayed because of turnover of key management staff.

The County Counsel and Risk Management have reviewed and approved this Agreement.

The Contractor has assured compliance with the County's Contractor Employee Jury Service Ordinance, as well as all other contract provisions that are required by County ordinance and administrative memoranda, including but not limited to insurance, hold harmless, non-discrimination, and equal benefits.

FISCAL IMPACT:

The term of the Agreement is January 1, 2009 through December 31, 2009. The maximum fiscal obligation of the Agreement is $249,680. Funds in the amount of $124,840 are included in the SMMC FY 2008-09 Adopted Budget and funds in the amount of $124,840 are included in the FY 2009-10 Recommended Budget. Expenses at SMMC are covered by fees for services or third-party payors whenever possible. The portion of expenses for services provided to the medically indigent or to those covered by programs that do not meet the full costs of care are covered by the County’s General Fund contribution to SMMC.