By Brian Anderson
Valley Times

Dec. 30, 1999

PLEASANTON —After more than 20 years of helping connect the valley's poor with health care, the executive director of Valley Community Health Center has stepped down, officials said Wednesday.

Kathie Herwatt's resignation comes on the heels of a decision by the center's directors to slash hundreds of thousands of dollars from the nonprofit group's $5 million budget. It was not known whether her departure was directly related to the funding cuts.

In her letter to board members, Herwatt said developments at the center convinced her it was time to move on, said Marybeth McCarthy, associate director of community services.

"(The letter) kind of reflects on issues that have been going on for the last few months that have concerned her," McCarthy said. "She's feeling that it's in the best interest of the center."

Herwatt's resignation becomes effective Jan. 6, said McCarthy, who has already assumed some of Herwatt's duties, but has not been officially named interim executive director.

Herwatt did not return phone calls Wednesday.

The board decided last week to cut nearly $720,000, or about 14 percent, from the health-care provider's annual budget. Pointing to a minor case of overstaffing and some programs that do not assist the number of patients expected, board members said layoffs effecting some of the roughly 120 employees were unavoidable.

Board member David Rounds said he had not received the letter and declined to speculate on why Herwatt chose to step down.

"We have not asked her to leave because of the cutbacks," said Rounds, who is also vice president of circulation for the Times. "She's been with the agency for a long time and has done a lot of good work."

Herwatt started at the center in the mid- to late 1970s -- only a handful of years after a grass-roots organization came together in 1972 intent on providing medical and mental-health services to the poor, McCarthy said. She continued to work at the center into the 1980s as it grew to include a homeless shelter, crisis unit and other services at facilities in Pleasanton and Livermore.

Herwatt was named executive director in 1988.

Rounds said executives likely are already discussing what actions to take to make the change in command smooth. Board members will meet to discuss who should be named interim director while a search for a new leader is conducted, he said.

In the meantime, center workers will continue to help the Valley's indigent while coping with the loss of a tireless leader, McCarthy said.

"She has been my supervisor for eight years and has been a wonderful mentor to me," she said. "I may not agree with her decision, but I respect whatever decision she makes."