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HomeMy WebLinkAboutExhibit 5 - Exhibit 5 - 1-31-08 Planning Commission ReportExhibit No. 5 Planning Commission staff report dated January 31, 2008 s. ( THIS PAGE LEFT BLANK INTENTIONALLY BLANK T. Al Memo SCANNED To: Planning Commission From: James Campbell, Senior Planne W C" Date: January 25, 2008 Re: Hoag Hospital Master Plan Amendment (PA 2007 -073) On January 18, 2008, Mayor Selich, Councilmember Rosansky and staff met with representatives of Hoag Hospital and resident of the adjacent community of Villa Balboa to discuss unresolved issues that are summarized in the attached staff report. Modifications of the draft Development Agreement Amendment and Planned Community Development Plan (PC Text) could result. Additionally, the precise language of several provisions of the Development Agreement Amendment are still under discussion. The PC Text may be revised relative to landscaping and screening improvements outlined. in the staff report. Hoag has committed to landscaping enhancements but a method to ensure completion of improvements has not been established. Noise mitigation continues to be an issue. Hoag has agreed to implement a window replacement program for certain Villa Balboa units. Although a proposed "project design feature" (page 3-17 of SEIR Volume III), the program may be modified to include more units based upon a recommendation by the noise consultant. What remains to be finalized is the precise language of the condition and how it will be incorporated within project approvals to ensure enforcement. Discussions of other potential noise mitigation including a sound wall or partial enclosure of the loading dock are continuing. At the public hearing on January 315t, major components of the application will be presented. The Supplemental EIR and the Responses to Comments will also be considered and testimony from nearby residents and the general public taken with the hearing to be continued to February 7t'. Staff will provide a progress report at the hearing. S.3 CITY OF NEWPORT BEACH PLANNING COMMISSION STAFF REPORT January 31, 2008 Agenda Item 2 SUBJECT: Hoag Memorial Hospital Presbyterian Master Plan Update (PA2007 -073) One Hoag Drive, Newport Beach, California ■ Certification of Final Supplemental.Environmental Impact Report ■ General Plan Amendment No. 2007 -005 ■ Planned Community Development Plan Amendment No. 2007 -001 ■ Development Agreement Amendment No. 2007 -001 APPLICANT: Hoag Memorial Hospital Presbyterian CONTACT: James Campbell, Senior Planner (949) 644 -3210 jcampbellIO-citv.newport- beach.ca.us PROJECT SUMMARY The following discretionary approvals are requested or required in order to implement the proposed project: Certification of the Hoag Memorial Hospital Presbyterian Master Plan Update Supplemental Final Environmental Impact Report (Final SEIR) (State Clearinghouse No. 1991071003). The Master Plan Update Project requires the acceptance of the environmental document as having been prepared in compliance with CEQA and the State California Environmental Quality Act (CEQA) and State and City CEQA Guidelines, as well as certification that the information contained in the Final SEIR was considered in the final decisions on the project. 2. General Plan Amendment No. 2007405 to allow an increase in the maximum allowable gross square feet of development on the Hoag Upper Campus with a corresponding decrease in allowable gross square feet on the Lower Campus. No change in the General Plan Land Use designation for Hoag is required. 3. Planned Community Development Plan Amendment No. 2007 -001 (PC text) to modify the existing planned community development criteria and district regulations. Noise generated at Hoag would be governed by the City's Noise Ordinance except as otherwise noted. 4. Development Agreement No. 2007 -001 to amend the existing Development Agreement between Hoag Memorial Hospital Presbyterian (Hoag) and the City of Newport Beach (City) that would vest development rights and establish a public benefit contribution to the City. 5-V Hoag Master Plan Update January 31, 2008 Page 2 RECOMMENDATION Continue consideration to February 7, 2008. INTRODUCTION In response to the ever changing health care industry and the needs of the community, Hoag Hospital is requesting project approval in order to provide greater flexibility to meet those demands. The development of Hoag Hospital is regulated by the General Plan that establishes a separate limit on development within the Hoag Upper and Lower Campuses; a Planned Community Development Plan that provides specific development criteria; and a Development Agreement that gives Hoag the right to develop and expand the hospital provided it complies with applicable restrictions. The Planned Community Development Plan (PC text) and the Development Agreement were adopted by the City in the early 1990s and have served to guide the growth of the hospital campus. Project Setting Hoag is an existing facility located at One Hoag Drive in the City of Newport Beach (City). The approximately 38 -acre site, inclusive of the Lower Campus (20.41 acres) and Upper Campus (17.57 acres), is generally bound by Hospital Road to the north, West Coast Highway to the south, Newport Boulevard to the. east, and residential development and open space to the west. Superior Avenue is the closest major street to the west. Vehicular access to Hoag is provided at three locations. The Upper Campus can be accessed from Hospital Road which serves as the northern boundary of Hoag. The main entrance is a signalized intersection located at the intersection of Hospital Road at Placentia Avenue —Hoag Drive. A non - signalized secondary access, West Hoag Drive, on Hospital Road into the Upper Campus, follows the western boundary of Hoag. West Hoag Drive is gated to preclude vehicular access between 8:00 PM and 7:00 AM. A second signalized intersection, located on West Coast Highway at Hoag Drive, serves as the main entrance to the Lower Campus. Hoag Drive, South Hoag Drive, and West Hoag Drive provide internal vehicular access throughout Hoag. Surrounding lands uses include the residential communities of Villa Balboa and Versailles, both located to the north of the Lower Campus and west of the Upper Campus. Medical offices and residential care facilities are located to the north of the Upper Campus across Hospital Road. General commercial, offices, and residential uses are located to the east across Newport Boulevard. Commercial and residential uses are located to the south of the hospital campus across West Coast Highway. To the west of the Lower Campus on either side of Superior Avenue is open space planned to be an active and passive park (Sunset Ridge Park). S S (I t t ( 1 I t Hoag Master Plan Update January 31, 2008 Page 3 VICINITY MAP v. ff, Hqa O - �_ISTHSTIN i BLUEFIN CT QO I r �p\D Sty HALYARD MEDICALLN \? DNS P Y Sa `� 4 j) co( Ubgt_ °�O'°i HOSPITAL R ' - r m rf r o O _ yy qI t .r TURNINGaASIN c� t ° a 0 i 32ND 57 _.... t LI S•L Upper' cq Campus Lower Ca mpus I_ o PP,�. ; CLIFF DR � � �P'o °b p,N - COST mwy t - P•yONS -� o O _ yy qI t .r TURNINGaASIN c� t ° a 0 i 32ND 57 _.... t LI S•L Haag Master Plan Update January 31, 2008 Page 4 GENERAL PLAN and ZONING Nvp 4P EtwarumA JavgrylLb honing uwswas nnuirons o sco. two Fee: t� ur+rp_ &rAanmrE .ga�.vY�P S./ Hoag Master Plan Update January 31, 2008 Page 5 LOCATION GENERAL PLAN ZONING CURRENT USE PROJECT SITE Private Institutions (PI) Planned Community Hospital Multiple Residential (RM) PC Versailles on the Residential condominiums Bluff Planned Community NORTH Medical Commercial Office (CO -M) Administrative Medical office Professional Office Private Institutions (PI) Residential'care facility Neighborhood Commercial (CN) RSC (Retail and Neighborhood shopping Service Commercial) center Multiple Residential (RM) MFR (Multi - Family Multi- family residential Residential) SOUTH Single Unit Residential Detached R -1 (Single Family Single family residential (RS -D) Residential) General Commercial (CG) RSC (Retail and Vehicle rental /sales Service Commercial) Restaurant General Commercial Office (CO -G) SP -9 (Old Newport Business, medical and Boulevard Specific professional offices EAST Plan Two Unit Residential (RT) R -2 (Two family Residential residential) Multiple Unit Residential (RM) PC - Versailles on Residential condominiums the Bluff Planned Community WEST Parks and Recreation (PR) OS -A (Open Space Open space — Sunset Ridge Active Park planned OS (Open Space) Background Hoag Hospital was constructed in 1952 as a 75 -bed, 50,000 square -foot (sf) facility. The complex has undergone several major construction .phases that have expanded and remodeled the facilities. In 1979, the first Master Plan and EIR were prepared and approved for Hoag. At the time the 1979 Master Plan was prepared, Hoag facilities were located solely on what is now known as the Upper Campus (this is discussed in more detail below). The 1979 Master Plan provided for 217,600 sf of additional uses, included a new 10 -story hospital tower, and provided for the expansion of the existing tower (the West Tower); a new hospital tower was not constructed until 2005 as the Sue and Bill Gross Women's Pavilion (East Tower). S• S, Hoag Master Plan Update January 31, 2008 Page 6 When the 1979 Master Plan was approved, Hoag did not own the Lower Campus area. On June 19, 1984, Hoag purchased the approximate 22 -acre Lower Campus from the State of California. Subsequent to that purchase and prior to the 1992 Master Plan and EIR, Hoag constructed the Patty and George Hoag Cancer Center and a child care center in 1991 on the Lower Campus. The development of the Lower Campus was completed with separate CEQA documentation. In 1992, the City certified the Hoag Hospital Master Plan Final EIR No. 142 for the Hoag Hospital Master Plan and adopted both Planned Community regulations and the "Development Agreement Between the City of Newport Beach and Hoag Memorial Hospital Presbyterian" (Development Agreement). In 1994, the City approved Ordinance No. 94 -8 to readopt the Development Agreement to reflect Coastal Commission consideration. The Planned Community Development Plan is the Hoag Master Plan. The existing 1992 Master Plan allows for up to 1,343,238 sf of uses at Hoag, inclusive of the Upper and Lower Campuses. Of the 1,343,238 sf of permitted development, 765,349 sf is the Upper Campus limit and 577,889 sf is the Lower Campus. Currently, 698,121 sf have been constructed on the Upper Campus and 188,149 sf have been constructed on the Lower Campus. It should be noted that the Master Plan provides for redevelopment of current uses at Hoag. The 1992 Master Plan assumed that development on the Upper Campus would be primarily reconstruction and redevelopment because the Upper Campus contained the early hospital development. The Lower Campus, which was essentially undeveloped at the time the Master Plan was approved in 1992, provided for new development. It also provided for the relocation of some services from the. Upper Campus to the Lower Campus. The Master Plan was intended to guide development at Hoag over a period of approximately 21 years. The PC text and the Development Agreement set forth the development standards and terms and conditions by which Hoag may be developed, and it includes maximum permissible building area, building height limits, permitted land uses and other typical development standards. Since the 1992 Master Plan and Final EIR No. 142 were approved, Hoag has constructed a cardiac services addition, a parking structure, a new inpatient hospital tower (the Sue and Bill Gross Women's Pavilion [East Tower]), and a minor expansion to the James Irvine Surgery Center on the Upper Campus. On its Lower Campus, Hoag has constructed a conference center with an associated parking structure, two auxiliary parking lots, an employee childcare center, and the cogeneration facility that provides power, heating and cooling support to the campus. Additionally, Hoag relocated a pre- existing methane gas flare and upgraded the scrubbing/cleaning technology associated with the methane gas flare onto the Lower Campus. On the Lower Campus, the relocation and expansion of Hoag's employee childcare center and a retaining wall project were recently completed. 5.9 Hoag Master Plan Update January 31, 2008 Page 7 In 2002, the City Council approved the First Amendment to the PC text. The First Amendment changed the definition of "Gross Floor Area Entitlement' so that certain unoccupied building areas are not counted toward the maximum permissible building floor areas for the project site. Unoccupied building areas were defined to include areas such as stairwells and elevator shafts (except on the first floor), areas used for structural systems upgrades directly related to the requirements of government agencies (and are therefore not for general or routine occupancy) and rooftop enclosures for mechanical equipment (not for general or routine occupancy). Prolect Description The General Plan and 1992 Master Plan allow for up to 1,343,238 sf of development at Hoag, inclusive of the Upper and Lower Campuses. Of the 1,343,238 sf of permitted development, 765,349 sf is allocated to uses on the Upper Campus and 577,889 sf of uses to the Lower Campus. There are currently 890,005 sf of medical and medical - related uses at Hoag, of which 698,121 sf are inpatient, outpatient, and support uses on the Upper Campus and 188,149 sf of outpatient and support uses on the Lower Campus. Therefore, of the remaining 456,968 sf of approved but not constructed uses, 67,228 sf could be developed on the Upper Campus and 389,740 sf could be developed on the Lower Campus. All or a portion of the approved but not constructed square footage for the Upper Campus can be used for additional hospital beds because additional hospital beds are a function of the square footage allocation for Hoag. The proposed Master Plan Update Project would allow for up to 225,000 sf of medical uses that are currently approved for the Lower Campus to be reallocated to the Upper Campus. As a part of the proposed Master Plan Update Project, the Applicant is not requesting the approval of any project - specific land uses or development projects, only the ability to reallocate square footage. The following table identifies the existing, currently permitted, and proposed reallocation square footage changes associated with the proposed project. HOAG MASTER PLAN UPDATE ,• to Remaining Proppsed Remathirig After. Location. Approved.tsij,.^ Constructed (sry. Approved (s) Reallocation (sf).: Reallocation'(000 ", Upper Campus 765,349 698,121 67,228 +225,000" 292,228 Lower Campus 577,889 188,149 389,740 - 225,000" 164,740 Total Approved (sf) 1,343,236 Total Constructed (sf) 886,270 Total Remaining Approved (sf) 456,968 Proposed Maximum Allowable (sf) Upper Campus: 990,349` Lower Campus: 577,889 Total not to exceed: 1,343,238d Assumes full reallocation of 225,000 sf from the Lower Campus to the Upper Campus. ° Up to 225,000 sf can be transferred from the Lower Campus to the Upper Campus. The maximum allowable building area on the Upper Campus would be 990,349 sf (existing + currently approved but not developed + the maximum reallocation of 225,000 sf from the Lower Campus), and a maximum allowable building area on the Lower Campus would be 577,889 sf (existing + currently approved but not developed; assumes no reallocation of square footage from the Lower Campus to the Upper Campus). However, in no event could the combined total building areas of both ,• to Hoag Master Plan Update January 31, 2008 Page 8 the Upper and Lower Campuses exceed 1,343,238 at. This means that if the Upper Campus develops at the maximum allowable building area, then the amount of development on the Lower Campus would have to be reduced accordingly. Square footage is inclusive of inpatient hospital beds. " Demolition of some existing structures on the Upper Campus would occur to ensure maximum square feet would not exceed 1,343,238 at. To accommodate the reallocated square footage, amendments to the General Plan, PC text, and the Development Agreement are required. General Plan Amendment The General Plan Land Use Element designates the Hoag site as "Private Institutions" with a maximum allowable building area of 765,349 sf for the Upper Campus and 577,889 sf for the Lower Campus, for a total of 1,343,238 sf. The General Plan Amendment would allow up to 225,000 sf to be transferred from the Lower Campus to the Upper Campus. The maximum allowable building area on the Upper Campus would be 990,349 sf (if all 2.25,000 sf are reallocated from the Lower Campus to the Upper Campus) and the maximum allowable building area on the Lower Campus would be 577,889 sf (if no square footage is reallocated). However, in no event could the combined total building areas of both the Upper and Lower Campuses exceed 1,343,238 sf. What this means is that if the Upper Campus develops to the maximum square footage, then the amount of development on the Lower Campus would have to be reduced by the actual amount transferred. PC text Amendment The PC text would be amended to establish the same maximum allowable building areas for the Upper and Lower Campuses, consistent with the proposed General Plan Amendment. In no event would the total building areas of the Upper and Lower Campuses exceed the current total limit of 1,343,238 sf. The existing PC text provides that mechanical equipment noise generated from Hoag not exceed 55 decibels (dB) at all Hoag property lines. This noise restriction, which was established prior to the creation of the City's Noise Element and Noise Ordinance, is proposed to be eliminated. Instead, noise generated at Hoag would be governed by the City's Noise Ordinance except as otherwise provided in the following paragraphs. 1. The applicable noise standard at the Hoag property line adjacent to the loading docks shall be as follows: 2. Within the loading dock area, delivery vehicles and the loading and unloading of delivery vehicles shall be exempt from any applicable noise standards. S fI 7,'AM - l0 PM 70 IRM — . ,AM bayYime Nlghttilr►ie . ., Leq (15 min) 70 dBA 58 dBA 2. Within the loading dock area, delivery vehicles and the loading and unloading of delivery vehicles shall be exempt from any applicable noise standards. S fI Hoag Master Plan Update January 31, 2008 Page 9 A map of the loading dock area is proposed to be included within the PC text. Minor changes and clarifications are proposed to the permitted uses and definitions. Hoag proposes changes to the landscape regulations and sign standards as well and a more complete description follows. The existing and proposed PC text are attached to this staff report Exhibit 2. Development Agreement Amendment An amendment to the Development Agreement is necessary and negotiations on behalf of the City are being conducted by a Council appointed subcommittee. The draft amendment indicates an extension of the term from 2019 to 2029, but as of the drafting of this report, an extension is no longer being considered. The amendment would provide an increase in the public benefits through the payment of 3 million dollars for City public facility improvements, designation of the City as the point of sale for major hospital equipment purchases. Lastly, Hoag is requesting a one time fee waiver for issuing bonds pursuant to the provisions of Chapter 3.26 of the Municipal Code. The Development Agreement Amendment would also incorporate the revised PC text by reference. The existing Development Agreement and draft amendment is attached as Exhibit 3. DISCUSSION Community Issues Outside the Scope of the Project Members of the community have raised issues that, while not a part of the proposed Master Plan Update Project, have been addressed by City staff and Hoag, and have been responded to in the responses to comments on the Master Plan Update EIR. Primary issues are a belief that Hoag is in noncompliance with applicable requirements, the cogeneration facility, lighting on the Lower Campus, and landscaping particularly on the Lower Campus. City Council Annual Review of Development Agreement The development agreement requires an annual compliance review by the City Council at a notice public hearing. This review was conducted between 1995 and 1999, but has not occurred since. The abutting Villa Balboa community asserts that Hoag is in noncompliance with the Development Agreement and PC text. The allegations are contained within their comment letter on the SEIR prepared by their attorney (SEIR Volume III, Letter #5) and in Exhibit 4. While these issues are not within the specific purview of the Planning Commission, resolution of some of them could impact the content of the PC text and testimony during the public hearing will likely raise these issues. Staff is preparing a report for the City Council's consideration that outlines construction activities conducted since 1999 and related compliance issues. It is anticipated that the annual compliance review will occur with the City Council's consideration of the subject application. S. /.'L Hoag Master Plan Update January 31, 2008 Page 10 Cogeneration Facility The cogeneration facility is not a part of the proposed Master Plan Update Project as it is an existing facility. The facility provides several critical support functions for the hospital campus; specifically, it provides power for the campus and it also provides significant amounts of heating and cooling for several campus buildings. The City provided approval -in- concept for the cogeneration facility on September 17, 2002, and the California Coastal Commission (Coastal Commission) approved the facility on December 10, 2002. The Coastal Commission issued Coastal Development Permit No. 5 -02 -325 for the cogeneration facility on June 12, 2003. :All necessary air quality permits for current operations were issued by the South Coast Air Quality Management District (SCAQMD). The City issued a grading permit for the facility on July 22, 2003 and construction commenced on August 26, 2003. The cogeneration facility has been constructed and is fully operational and, as such, was considered part of "existing conditions" in the Draft EIR. No discretionary approvals are presently required to continue operation of the cogeneration facility, and the Master Plan Update Project does not request any modifications or additions to the facility. Because the cogeneration facility is not considered part of the proposed Master Plan Update Project, CEQA does not require that the Master Plan Update EIR assess aspects of the cogeneration facility. Additional information supporting this conclusion is presented in the Responses to Comments on the SEIR beginning on page 3 -3. Villa Balboa residents have expressed concerns with the appearance of the cogeneration facility and the visual impact of 1) water vapor from the cooling towers, 2) periodic steam emissions from the roof of the facility; and 3) visual impact of engine exhaust. The cogeneration facility was painted a buff /tan tone in September 2007, a color more consistent with existing buildings on the Hoag Lower Campus in an effort to improve the aesthetics of the facility. Hoag has also planted or plans to plant additional landscaping to screen the facility. Landscaping issues are discussed in more detail below. The roof of the facility has several penetrations necessary for operation of the power generators and other related mechanical or electrical equipment within the building. Louvered screens were designed and installed to approve the appearance of the roof. Given the nature of the facility, the roof of the facility was determined to be consistent with the PC text standards to avoid major mechanical equipment installations on rooftops in the Lower Campus and to screen mechanical appurtenances. Although the PC text requires screening elements to use materials compatible with roofing materials, compliance was determined based upon compatible architectural elements and the facility was permitted. The cogeneration facility dissipates heat to the atmosphere via 4 cooling towers and under particular conditions (temperature and humidity) a water vapor cloud develops. Villa Balboa residents consider this a violation and has requested Hoag to mitigate. Information to date suggests that mitigating the water vapor is technically feasible, complete mitigation may not be possible and the costs of doing so appear to be 541 Hoag Master Plan Update January 31, 2008 Page 11 significant. The City is presently reviewing this issue in preparation for the City Council's review of the Development Agreement. Lighting Hoag is in the process of redesigning the lighting plan for the Lower Campus to convert all parking area lights from metal halide to high - pressure sodium. Lighting was installed earlier this year on a portion of the Lower Campus proximate to the cogeneration facility and adjacent parking areas. Villa Balboa requested the lighting fixtures be adjusted as they felt the new lighting was too bright. Hoag is in the process of obtaining City approval to replace the 400 waft metal halide fixtures with 250 waft high pressure sodium fixtures, which provide a monochromatic or amber light source similar to City streetlights. Additionally, 50% of the lights will be turned off at in the evening after activities at the childcare center conclude. Lastly, one light located on the upper level of the cogeneration facility service road is proposed to be replaced with florescent postlights with a motion sensor switch so the light will be on only when necessary. Once City permitting is obtained for these new fixtures, they will be installed. Landscaping The following landscape modifications have been completed or are planned by Hoag that exceed the standards of the PC text regulations. 1. Installed five, 48- inch -box, evergreen trees and new irrigation in November 2007 to screen /soften the views of the west end of the cogeneration facility; 2. Submitted plans to the California Coastal Commission (CCC) for permission to install three, 48- inch -box, evergreen trees and new irrigation to provide added screening of the cogeneration facility area with an estimated installation date of May 2008, pending CCC approval; 3. Submitted plans to the CCC to install a green, metal screen lattice structure and plant flowering vines to cover the green screen on the east wall of the cogeneration facility in order to provide additional screening and softening of specific views of the cogeneration facility with an estimated installation of May 2008, pending CCC approval; 4. Installed additional shrubs, groundcover, and new irrigation system to the slope behind the cogeneration facility upon completion of the retaining wall project in November 2007 to provide added visual quality and erosion control; 5. Installed 24 trees, shrubs, and ground cover plantings and new water conserving irrigation system near the cogeneration facility in November 2007 to provide added visual quality screening and erosion control as part of completing the Lower Campus retaining wall project; 6. Installed eight, 24 -inch -box, evergreen screen trees in November 2007, at the base of the west parking lot to screen and soften views of the retaining wall; $•+f ( Hoag Master Plan Update January 31,2008 Page 12 7. Installed twelve, 36- inch -box, flowering trees and four fan palm trees and irrigation system at end islands in the west parking lot in November 2007, to provide increased shade and visual enhancement to the parking area, with additional parking area trees to be installed in the future as construction needs in the area are completed; 8. Installed 550 bougainvillea shrubs in November 2007, as part of the Lower Campus retaining wall project, for color and to soften of views along the top of the retaining wall; 9. Requested an Approval In Concept (AIC) Wom the City of Newport Beach to re- grade the north slope above the retaining wall to allow shrubs, ground cover, and a new irrigation system to enhance visual quality, safety, and erosion control. To be installed in January 2009 pending City and CCC approval; 10. Installed 17 trees, shrubs, groundcover, and irrigation systems in December 2007 around the new Child Care Center to provide added visual relief, parking area screening and building drop -off and entry area definition; 11.Plan to replace and enhance existing trees, shrubs, and groundcover in areas altered by a planned Lower Campus utility upgrade project to improve and unify Hoag landscaping along the West Coast Highway frontage. Installation would occur after underground utility installation and plantings are tentatively scheduled for December 2009, pending City AIC and CCC approval; 12. Install approximately 870 linear feet of green screen lattice along the West Coast Highway frontage to screen views of the west parking lot and cogeneration facility from West Coast Highway. This landscape project is in preliminary design with installation tentatively scheduled for December 2009, pending City AIC and CCC approval. 13. Hydroseeding of native groundcover including coastal wild flowers and grass, as well as the installation of irrigation systems was completed in December 2007 for erosion control and enhanced visual quality; 14.Twenty trees have been removed and over 50 trees have been trimmed in the last six months. A portion of these trees were trimmed to comply with the required height limits of the Lower Campus, and a portion were trimmed or removed at the request of residents to the north of the Lower Campus to remove view obstructions. These landscape features that are not installed to date are planned to be incorporated within the overall landscape plans for the campus and staff anticipates administrative approval of these features. In order to ensure compliance, a provision may be included within the PC text. Completion of the New Employee Childcare Facility Villa Balboa residents expressed concerns regarding the completion of the new Child Care Center and its landscaping and lighting. The new Child Care Center is complete and operational. The landscaping for the center has been installed and landscaping has or will be augmented as noted in the previous section. The parking lot lighting is S t't- Hoag Master Plan Update January 31, 2008 Page 13 consistent with the adjacent lighting of the Lower Campus (high pressure sodium amber fixtures); these lights have been put on timers. Around the Child Care area, the lights come on at 5:30 AM and go off at dawn to accommodate early child care drop -offs. The lights go back on at dusk and turn off at 8:30 PM. Hoag will be installing screens or shields on specific lighting fixtures on the building to reduce the glare from above. Completion of the Lower Campus Retaining Wall Villa Balboa residents also expressed concerns with the timing of completion of the Lower Campus retaining wall. That wall is °How fully constructed and the construction site associated with the project has been removed. Some residents have expressed concerns that the construction of the retaining wall has caused settlement behind the wall. The Building Department investigated the complaint and found it to be unfounded. Portions of the public walkway that is north of the wall does have some typical cracking due to the infrequent use of expansion joints. The Public Works Department maintains the walkway; they will continue to monitor and maintain the area as necessary. Ongoing Construction Staging Residents have expressed an ongoing concern with the construction staging activities on the Lower Campus. They have also been concerned that the landscaping that was to be part of the Lower Campus has not been completed which contributes to their concerns with the overall appearance of the area. As noted above, the majority of the landscaping has now been completed or is in the process of receiving the necessary permits for completion. The construction areas have been cleaned up and construction trailers will be consolidated in one area adjacent at the west end of the Lower Campus, as feasible. Hoag has also provided stringent guidelines to its contractors to keep the area orderly and to not store equipment or supplies on the roof of the trailers. It should be noted that the use of the Lower Campus for construction staging is a necessary part of Hoag's ongoing operations and may change from time to time. The area between the new employee child care center and the cogeneration facility will be the primary staging area in the future. Due to this need, the installation of several trees in the center portion of the parking area have been deferred until the need for construction staging terminates in the future. Lastly, enhanced screening elements are planned between the area and Coast Highway as noted in the previous discussion on landscaping. Analysis General Plan Amendment The General Plan designates the Hoag Campus as Private Institutions (PI) and this designation is intended to provide for privately owned facilities that serve the public including places for religious worship, private schools, health care, cultural institutions and other comparable facilities. No change to the designation is requested. The General Plan limits total development at Hoag to 1,343,238 gross sf with 765,349 sf on the Upper Campus (Anomaly #56) and 577,889 sf on the Lower Campus (Anomaly #57). S-66 Hoag Master Plan Update January 31, 2008 Page 14 Hoag seeks the ability to transfer up to 225,000 sf from the Lower Campus to the Upper Campus. The maximum allowable building area on the Upper Campus would be 990,349 sf (if all 225,000 sf are reallocated) and the maximum allowable building area on the Lower Campus would be 577,889 sf (if no square footage is reallocated). However, in no event could the combined total building areas of both the Upper and Lower Campuses exceed the current limit of 1,343,238 sf. Implementing this transfer can be accomplished by combining the two anomalies and provide the Upper and Lower Campus Limits in the "Additional information" column of Table LU -2 within the Land Use Elementl7he change would be as follows: Table Consistency Evaluation City of Newport Beach General Plan Goal LU 1: A unique residential community with diverse coastal and upland neighborhoods, which values its colorful past, high quality of life, and community bonds, and balances the needs of residents, business, and visitors through the recognition that Newport Beach is primarily a residential community. Anomaly,SiiitistIca l .Land,use Development. business districts, and harbor that together identify reputation as a leading medical facility. Continued development Number Area Desi andtion umu 1A Development Limit (Other) Addhional Information LU 1.5: Encourage a local economy that provides The City identifies Hoag is the largest employee (2,700) in the adequate commercial, office, industrial and marine- City (Newport Beach 2007). The proposed Master Plan Update oriented opportunities that provide employment and In no event shall the gross 56 A3 PI 1,343,238 990,349 sf Upper Campus floor area exceed the upper support the needs of residents, sustain and enhance the economy, provide job opportunities, serve visitors that enJoy the City's diverse recreational amenities, & protect its important environmental setting, resources, and quality of fife. LU 2.1: Accommodate uses that support the needs 765,349 577,889 sf Lower Campus Campus, lower campus or retail, services, employment, recreation, education, residents. The proposed Master Plan Update Project would culture, entertainment, civic engagement, and allow for the continued compliance with this policy. social and spiritual activity that are in balance with total development limit 6; A3 P4 57789 The following table contains a discussion of the project's consistency with applicable General Plan and Coastal Land Use Plan policies. Goals and - Policies Consistency Evaluation City of Newport Beach General Plan Goal LU 1: A unique residential community with diverse coastal and upland neighborhoods, which values its colorful past, high quality of life, and community bonds, and balances the needs of residents, business, and visitors through the recognition that Newport Beach is primarily a residential community. LU 1 A: Maintain and enhance the beneficial and Hoag is a prominent feature in the West Newport area of the unique character of the different neighborhoods, City because of its visibility from West Coast Highway and its business districts, and harbor that together identify reputation as a leading medical facility. Continued development Newport Beach. Locate and design development to of Hoag with medical uses would not detract from the character reflect Newport Beach's topography, architectural of the area. Buildings would be constructed in conformance diversity, and view sheds. (Imp 1.1) with the standards established in the PC text. LU 1.5: Encourage a local economy that provides The City identifies Hoag is the largest employee (2,700) in the adequate commercial, office, industrial and marine- City (Newport Beach 2007). The proposed Master Plan Update oriented opportunities that provide employment and Project would provide for additional medical - related facilities in revenue to support high quality community services. support of the needs of the local community and region. (Imp 1. 1, 24.1). Goal LU 2: A living, active, and diverse environment that complements all lifestyles and enhances neighborhoods, without compromising the valued resources that make Newport Beach unique. It contains a diversity of uses that support the needs of residents, sustain and enhance the economy, provide job opportunities, serve visitors that enJoy the City's diverse recreational amenities, & protect its important environmental setting, resources, and quality of fife. LU 2.1: Accommodate uses that support the needs The first hospital opened in September 1952 at Hoag and was of Newport Beach's residents including housing, initiated to sere the needs of coastal Orange County retail, services, employment, recreation, education, residents. The proposed Master Plan Update Project would culture, entertainment, civic engagement, and allow for the continued compliance with this policy. social and spiritual activity that are in balance with community natural resources and open spaces. (Imp 1. 1, 2.1) .S• t % Hoag Master Plan Update January 31, 2008 Page 15 Goals�bd.`po11Ci$'s ' S• !y COP lli —4,00w uation LU 2.4: Accommodate uses that maintain or As noted above, the City has identified Hoag as the largest enhance Newport Beach's fiscal health and employee in the City. Additional facilities would be constructed account for market demands, while maintaining and based on the medical needs of the local community and region improving the quality of life for current and future so that the quality of life for local residents will continue to be residents. (Imp 1.1, 24.1) enhanced. LU 2.8: Accommodate the types, densities, and The purpose of this Supplement to Final EIR No. 142 is to mix of land uses that can be adequately supported assess any potential significant environmental effects by transportation and utility infrastructure (water, associated with the proposed Master Plan Update Project. As sewer, storm drainage, energy, and so on) and identified in this SEIR, the Project would not result in any new public services (schools, parks, libraries, seniors, significant impacts to transportation, utility Infrastructure, or youth, police, fire, and so on). (Imp 1. 1, 10. 2, 11.1) 1 public services. Goal LU 3: A development pattern that retains and complements the City's residential neighborhoods, commercial and industrial districts, open spaces, and natural environment. LU 3.1: Maintain Newport Beach's pattern of The proposed Master Plan Update Project would allow for the residential neighborhoods, business and reallocation of previously approved development for Hoag employment districts, commercial centers, within the existing site boundaries and within the same corridors, and harbor and ocean districts. (Imp 1.1) development envelope assumed in the existing Master Plan for Hoag. Therefore, the overall pattern of development for the area would not change. LU 3.2: Enhance existing neighborhoods, districts, As previously stated, the objective of the proposed Master Plan and corridors, allowing for re-use and infill with Update Project is to allow greater flexibility within the Hoag uses that are complementary in type, form, scale, Hospital Master Plan in an effort to allow Hoag to respond to and character. Changes in use and/or changes in the health care industry while maintaining an overall densityi'intensity should be considered only in those development cap. The proposed potential intensification on the areas that are economically underperforming, are Upper Campus with a corresponding potential reduction in necessary to accommodate Newport Beach's share square footage on the Lower Campus is proposed to respond of projected regional population growth, improve to the changing needs of Hoag and how medical services are the relationship and reduce commuting distance provided to the residents of Newport Beach and the region. between.home and jobs, or enhance the values that distinguish Newport Beach as a special place to live for its residents. The scale of growth and new development shall be coordinated with the provision of adequate infrastructure and public services, including standards for acceptable traffic levels of service. (Imp 1.1, 2.12 5.12 10.2, 16.2, 16.32 17.12 18.12 19.12 22.12 23.12 23.2) Goal LU 4: Management of growth and change to protect and enhance the livability of neighborhoods and achieve distinct and economically vital business and employment districts, which are correlated with supporting infrastructure and public services, and sustain Newport Beach's natural setting. LU 4.1: Accommodate land use development The proposed Master Plan Update Project is consistent with consistent with the Land Use Plan [Figures LU1 the underlying land use definitions for Hoag provided in the through LU15 of the General Plan]. (Imp 2.1, 5.1, General Plan. 10.2) Goal LU 6.1: A diversity of governmental service, institutional, educational, cultural, social, religious, and medical facilities that are available for and enhance the quality of life for residents and are located and designed to complement Newport Beach's neighborhoods. LU 6.1.1: Accommodate schools, government The remaining square footage at Hoag represents approved administrative and operational facilities, fire stations but not constructed development. The proposed Master Plan and police facilities, religious facilities, schools, Update Project would permit the reallocation of this overall cultural facilities, museums, interpretative centers, allowable development from the Lower Campus to the Upper and hospitals to serve the needs of Newport Campus. Beach's residents and businesses. (Imp 1. 12 2.1) S• !y Hoag Master Plan Update January 31, 2008 Page 16 G;oals�nd"t?oirciee ' : CohsrsfencyExalualier LU 6.1.5: Support Hoag Hospital in its mission to The proposed Master Plan Update Project evaluates its provide adequate facilities to meet the needs of relationship to adjacent land uses. With mitigation, the area residents. Work with the Hospital to ensure reallocation of approved but not constructed square footage that future development plans consider . its may result in improved noise attenuation and a reduction in relationship to and assure compatibility with traffic volumes. The City's Implementation Program 24.1 states adjoining residential neighbors and mitigate that "The Economic Development Committee should complete impacts on local and regional transportation the Strategic Plan for Economic Sustainability for City Council systems. (Imp 24.1) approval. This plan should outline the incentives to be provided and other City actions to be undertaken to implement the goals and policies of the General Plan. This plan should be dynamic and reviewed and updated annually as a part of the City budget." As previously noted, the City identifies Hoag is the largest employee in the City. The proposed Master Plan Update Project would provide for additional medical- related facilities in support of the needs of the local community and region.consistent with the City's economic needs. The butldout of Hoag in accordance with the proposed update to the Master Plan supports Hoag in its mission to provide adequate facilities to meet the needs of area residents. Goal LU 6.6."A medical district with peripheral medical services and research facilities that support the Hoag Hospital campus within a well - planned residential neighborhood, enabling residents to live dose to their jobs and reducing commutes to outlying areas. LU 6.6.1: Prioritize the accommodation of Hoag is an existing medical facility that has been located in the medical- related and supporting facilities on City since 1952. No Hoag development is proposed outside the properties abutting the Hoag Hospital complex existing boundaries of the project site. The proposed Master [areas designated as "CO -M (0.5)" (Figure LU18, Plan Update Project would not preclude future off -site medical, Sub -Area A)] with opportunities for new residential retail, or residential uses adjacent to Hoag. units [areas designated as "RM (18 /ac)l and supporting general and neighborhood retail services ["CG (0.75)" and "CN (0.3)] respectively. (Imp 2.1) Newport Beach Local Coastal Program (LCP) Coastal Land Use Plan 2.1.2 -1: Land uses and new development in the The Lower Campus In its entirety and 0.21 acre of the Upper coastal zone shall be consistent with the Coastal Campus are within the coastal zone. The LCP Land Use Plan Land Use Plan Map and all applicable LCP policies designates these areas as "Public Facilities." The Public and regulations. Facilities designation is "intended to provide public and quasi - public facilities, including educational institutions, cultural institutions, government facilities, libraries, community centers, hospitals, religious institutions, and utilities." (page 2-4) No changes in land use are proposed in the Lower Campus, only the ability to transfer a maximum of 225,000 at of development to the Upper Campus. Because the CCC approved the existing Master Plan, the proposed Master Plan Update is considered consistent with this LCP policy. 2.2.2 -1 Continue to allow redevelopment and As previously addressed, no additional square footage is infiil development within and adjacent to the requested as a part of the Project, only the ability to transfer existing development areas in the coastal zone currently approved but not constructed square footage from the subject to the density and intensity limits and Lower Campus to the Upper Campus. As noted above, only resource protection policies of the Coastal Land 0.21 acre of the Upper Campus is in the coastal zone. Use Plan. 2.2.2 -2 Require new development, to be located The Project is not expected to have impacts to public facilities with adequate public services or in areas that are or to utility service; no significant impacts were identified in capable of having public services extended or Final EIR No. 142. No additional square footage is proposed as expanded without significant adverse effects on a part of the Project. coastal resources. S. t•9 Hoag Master Plan Update January 31, 2008 Page 17 In conclusion, staff believes that the proposed General Plan Amendment is consistent with applicable General Plan and Coastal Land Use Plan policies. . The proposed General Plan Amendment has been evaluated pursuant to City Charter Section 423 and Council Policy A -1.8 to determine whether the amendment requires a vote by the electorate. An amendment requires a vote when it generates increases in excess of 100 residential units, 40,000 square feet of non - residential intensity or 100 peak hour trips. Additionally, an amendment would require a vote if the increases associated with the proposed, amendment when added to 80% of the increases from prior amendments within the same Statistical Area of the General Plan exceed these thresholds. The project site is within Statistical Area A -3 and there has been no prior amendments approved. The proposed General Plan Amendment does not increase residential density nor does it increase gross floor area. Based upon the trip generation rates contained within Council Policy A -18 that predicts traffic increases based upon increases in gross square feet, the project will not generate any additional trips given that there is no increase in gross floor area proposed. In conclusion, no vote by the electorate is required pursuant to Charter Section 423. Amendment of the PC text The draft amendment of the PC text is attached as Exhibit 3 in a strikeout and underline format clearly showing what is being deleted and added. Several of the proposed changes provide clarification and are not highlighted or discussed below. The current PC text contains 3 map exhibits that are proposed to be updated and replaced for clarity. 1. Change to Development Limits The most significant change is to the maximum allowable building areas of 990,349 sf for the Upper Campus if all 225,000 sf are reallocated from the Lower Campus to the Upper Campus and 577,889 sf for the Lower Campus if no square footage is reallocated in order to be consistent with the proposed General Plan Amendment. As with the General Plan, in no event would the total building areas of both the Upper and Lower Campuses exceed 1,343,238 sf. Table 1 within the existing PC text establishes the current development limits and this table would be replaced. 2. Change to Noise Standards The existing PC text provides that noise generated from Hoag not exceed 55 decibels (dB) at all Hoag property lines. This noise restriction, which was established prior to the creation of the City's Noise Element and Noise Ordinance, is proposed to be eliminated. Instead, noise generated at Hoag would be governed by the City's Noise Ordinance except as otherwise provided in the following paragraphs: "9. The applicable noise standard at the Hoag property line adjacent to the loading docks shall be as follows: S. AV Hoag Master Plan Update January 31, 2008 Page 18 2. Within the loading dock area, delivery vehicles and the loading and unloading of delivery vehicles shall be exempt from any applicable noise standards. In addition, the grease pit cleaning, which is exempt from the City's Noise Ordinance because it is a maintenance activity, would occur on a Saturday between the hours of 11:00 AM and 3:00 PM." Within the amended PC text, Exhibit No. 4 depicts the loading dock area where the proposed standard in the first paragraph would apply. The current limits that are contained within Chapter 10.26 (Community Noise Control) are as follows. 7AM -10PM Daytime 10PM -7AM Nighttime Le 15 min) 1 70 dBA 58 dBA 2. Within the loading dock area, delivery vehicles and the loading and unloading of delivery vehicles shall be exempt from any applicable noise standards. In addition, the grease pit cleaning, which is exempt from the City's Noise Ordinance because it is a maintenance activity, would occur on a Saturday between the hours of 11:00 AM and 3:00 PM." Within the amended PC text, Exhibit No. 4 depicts the loading dock area where the proposed standard in the first paragraph would apply. The current limits that are contained within Chapter 10.26 (Community Noise Control) are as follows. The SEIR includes an extensive noise analysis and recommends mitigation that will reduce noise, but not to the exterior noise ordinance levels. Additionally, Hoag has offered certain units within Villa Balboa that are in closest proximity to the loading dock area window /sliding door replacement. If the Homeowner's Association and individual owners agree to participate, the windows /sliding doors that directly face the loading dock area on approximately 24 residential units will be replaced with windows /sliders specifically selected and designed to reduce sound transmission to the interior of the units. The window /slider replacement program has been included as a project design feature that will be included in the updated Mitigation Monitoring and Reporting Program. Discussions are ongoing as to the feasibility of constructing a sound wall between Hoag and Villa Balboa that was deemed infeasible in the Draft EIR. Additionally, staff is examining the feasibility of a partial enclosure of the main loading dock possibly in combination with a lower wall. Staff will report on these discussions at the meeting. 3. Changes to Section VX - Internal Circulation Section VX (Internal Circulation) requires the implementation of a "pilot program" that controls the usage of service roads during non - working hours. The program was to ensure that routine deliveries not occur after 8PM or earlier than 7AM. The pilot program that was implemented in the in the early 1990's consisted of the scheduling of routine deliveries during the daytime combined with physically closing the west service road near Villa Balboa between 8:00 PM and 7:00 AM. Signs regarding delivery hours were also posted. Hoag proposes to continue this effort. Existing provisions should be replaced given the success of the measures implemented. Hoag suggests that the existing provisions of this section be replaced with the following: S AI 7AM -10 PM Da ime 10 PM -7AM Nighttime Le 15 min 60 dBA 1 50 dBA The SEIR includes an extensive noise analysis and recommends mitigation that will reduce noise, but not to the exterior noise ordinance levels. Additionally, Hoag has offered certain units within Villa Balboa that are in closest proximity to the loading dock area window /sliding door replacement. If the Homeowner's Association and individual owners agree to participate, the windows /sliding doors that directly face the loading dock area on approximately 24 residential units will be replaced with windows /sliders specifically selected and designed to reduce sound transmission to the interior of the units. The window /slider replacement program has been included as a project design feature that will be included in the updated Mitigation Monitoring and Reporting Program. Discussions are ongoing as to the feasibility of constructing a sound wall between Hoag and Villa Balboa that was deemed infeasible in the Draft EIR. Additionally, staff is examining the feasibility of a partial enclosure of the main loading dock possibly in combination with a lower wall. Staff will report on these discussions at the meeting. 3. Changes to Section VX - Internal Circulation Section VX (Internal Circulation) requires the implementation of a "pilot program" that controls the usage of service roads during non - working hours. The program was to ensure that routine deliveries not occur after 8PM or earlier than 7AM. The pilot program that was implemented in the in the early 1990's consisted of the scheduling of routine deliveries during the daytime combined with physically closing the west service road near Villa Balboa between 8:00 PM and 7:00 AM. Signs regarding delivery hours were also posted. Hoag proposes to continue this effort. Existing provisions should be replaced given the success of the measures implemented. Hoag suggests that the existing provisions of this section be replaced with the following: S AI Hoag Master Plan Update January 31, 2008 Page 19 "The project sponsor shall continue to limit the use of that portion of West Hoag Drive adjacent to residential uses located on the Upper Campus. To the extent reasonably possible and with the understanding that special situations may arise, the project sponsor shall use its efforts to limit truck deliveries to the hours of 7:00 am to 8:00 pm. The project sponsor shall also use other methods to restrict access of this road including signage restricting access." Staff believes this suggested language is unenforceable and recommends the following: "The project sponsor shall continue to limit the use of that portion of West Hoag Drive adjacent to residential uses located on the Upper Campus. Except in emergency situations, deliveries to loading areas shall not be scheduled after 8:00 PM or before 7:00 AM daily. The project sponsor shall physically restrict access to the roadway between these hours and appropriate signage indicating permitted delivery hours and access limitations shall be installed and maintained at all times. Deliveries and vehicular access to loading area located along West Hoag Drive are allowed in emergency situations where critical supplies or materials are necessary. for the continued operation of the hospital." 4. Changes to Section V.L — Loading Dock The principal change is to require implementation of the mitigation measures outlined in the SEIR related to noise. The only change suggested is to change the "should" and "may" within the second sentence to "shall" and "will." The two paragraphs to be deleted refer to the "critical care surgery addition" that was possibly going to be located in close proximity to Villa Balboa and acoustical analysis of future buildings. The critical care surgery addition project was abandoned by Hoag shortly after the approval of the PC text in 1992 and acoustical analysis is required by current mitigation measures, and hence, these paragraphs proposed to be deleted are not necessary. 5. Changes to Section VI — Sign Program The following changes are proposed by Hoag and staff has no concerns regarding the changes: a) General Sign Standards, modify Section VI.B.2 to eliminate the requirement that signs attached to buildings are flush or surface mounted. b) General Sign Standards, add Section VI.B.5 to provide a definition of a building for the purposes of sign program regulations as an occupied structure or any occupied portion of a structure that is added to an existing building and identified as a separate building for wayfinding purposes. c) Number of Signs Allowed, add a new Section VI.C.2 to permit a primary entrance identification sign at the entrance of the facility and at the main entrance to the emergence department. Height of the signs would be limited to 8 feet and 70 square feet. S� 2� Hoag Master Plan Update January 31, 2008 Page 20 d) Number of Signs Allowed, renumber former Section VI.C.2 to VI.C.3 and modify the provisions applicable to secondary signs. The proposed amendment clarifies that secondary identification signs are building and entrance signs and it would allow for freestanding to be 9 feet in height rather than 4 feet. The proposed amendment increases the maximum sign area from 35 square feet to 50 square feet. e) Number of Signs Allowed, renumber former Section VI.C.3 to VI.C.4 and modify the provisions applicable to directional signs. The proposed amendment would allow triple -faced signs and to be sized to all for readability given the numerous physical factors involved. The proposed amendment would limit such signs to 11 feet and it would eliminate a specific design restriction such that directional signs may only be suspended between two upright poles with the sign cabinet being the same thickness as the poles. f) Number of . Signs Allowed, add a new Section VI.C.5 to permit 1 donor recognition sign per building elevation with a maximum area of 175 square foot for this type of signage. g) Number of Signs Allowed, renumber former Section VI.C.4 to VI.C.6 and modify the provisions related to hospital identification signs on hospital towers. The proposed amendment will eliminate a limit that such signs be affixed to a building parapet. The proposed amendment provides a maximum sign area limit of 275 square feet. h) Number of Signs Allowed, renumber former Section VI-C.5 to VI.C.7 and modify the provisions related to Lower Campus building mounted identification signs. The proposed amendment increases the number of signs per building from 1 to 2 and makes the signs subject to the provisions applicable to secondary building and entrance signs as noted in #4 above. i) Number of Signs Allowed, add Section VI-C.8 to allow one, 30- square -foot identification sign for each entrance or exit of a parking structure. 6. Changes to Section VIII - Landscape Regulations The following changes are proposed by Hoag, and staff has no concerns regarding the changes: a) General, Section VIII.A.1 requiring the preparation of landscape and irrigation plans is proposed to be amended to provide clarification with no substantive change. b) General, Section VIII.A.2 is proposed to be amended to increase the minimum size of parking lot trees from 15 gallon to 24 inch box. c) General, Section VIII.A.3 is proposed to be amended to increase the minimum size of shrubs from 1 gallon to 5 gallon. d) General, Section VIII.A.5 regarding the placement of vehicle wheel stops is proposed to be amended to provide clarification with no substantive changes. S-13 Hoag Master Plan Update January 31, 2008 Page 21 e) General, Section VIII.A.5 regarding the parking lot trees is proposed to be amended to provide clarification with no substantive changes or diminishment of requirements. f) General, Section VIII.A.6 regarding the use of native, drought - tolerant and naturalized plantings is proposed to be amended to provide clarification that reduces the emphasis to plant native, drought- tolerant on the Upper Campus, include an emphasis to use non - invasive plans on the Lower Campus and requires an automatic irrigation system where an automatic controller is not specified presently. g) Maintenance, Section VI11.B.1 is proposed to be amended to require cultivation of landscape areas. h) Maintenance, Section VI11.B.2 regarding the trimming and /or mowing of lawns and ground cover is proposed to be amended to provide clarification with no substantive change or diminishment of standards. i) Maintenance, Section VI11.B.3 regarding required landscape maintenance is proposed to be amended to provide clarification that the maintenance program is a regularly scheduled annual program. Although the change could be read to suggest only annual maintenance, maintenance pursuant to Hoag's program is regular as needed. j) Maintenance, Section VI11.B.4 regarding the maintenance of irrigation systems is proposed to be amended to provide better clarification with no diminishment of requirements. k) Maintenance, Section VI11.B.5 regarding planting supports is proposed to be amended to provide better clarification with no diminishment of requirements. 1) Special Landscape Street, Section VIII.0 is proposed to be amended to provide clarification with no substantive change or diminishment of requirements. m) Villa Balboa Landscape Zone, Section VIII.D regarding a specific landscape area between Hoag Hospital and Villa Balboa is proposed to be amended to provide clarification with no substantive change or diminishment of standards. n) Parking Areas, Section VIII.E regarding parking lot landscaping is proposed to be amended to provide clarification such that landscaping around buildings is not included in landscape area calculations where 5% of a parking area must be landscaped. Other changes clarify language with no substantive impact or diminishment of standards. Development Agreement Hoag is requesting an amendment of the existing Development Agreement to facilitate the proposed transfer of building area and changes to the PC text. The draft amendment indicates an extension of the term from 2019 to 2029, but as of the drafting of this report, an extension is no longer being considered. The amendment would . provide an increase in the public benefits through the payment of 3 million dollars for S---W Hoag Master Plan Update January 31, 2008 Page 22 City public facility improvements, designation of the City as the point of sale for major hospital equipment purchases. Lastly, Hoag is requesting a one time fee waiver for issuing bonds pursuant to the provisions of Chapter 3.26 of the Municipal Code. Although not a party to the original Development Agreement, the California Coastal Commission (CCC) would review and approve the Development Agreement. Aside from the changes to the PC text that would be referenced by the draft amendment, the significant changes are financial in nature and of benefit to the public. Villa Balboa contends that the request is prohibited by the existing Development Agreement a'§ Section 6.5 prohibits Hoag from applying and the City from approving an amendment of the Master Plan (PC text) that would increase the maximum permitted gross floor area or the maximum building heights on the Lower Campus. These circumstances are not present. Environmental Review In 1992, the City certified the Hoag Hospital Master Plan Final EIR No. 142 for the Hoag Hospital Master Plan allowing for up to 1,343,238 sf of uses at Hoag, inclusive of the Upper and Lower Campuses. CEQA Guidelines §15163 allows a lead agency to prepare a supplement to an EIR when any of the conditions described in CEQA Guidelines §15162 would require the preparation of a Subsequent EIR, but only minor additions or changes are necessary to make a previous EIR adequately apply to the project in the changed situation. CEQA Guidelines §15163(b) further states, "the supplement to the EIR need contain only the information necessary to make the previous EIR adequate for the project as revised" and "the supplement may be circulated by itself without re- circulating the previous Draft or Final EIR." The City determined that a supplement to Final EIR No. 142 was the appropriate CEQA documentation to evaluate the potential impacts associated with the proposed modifications to the Hoag Hospital Master Plan. Substantial changes were not proposed to the Hoag Master Plan resulting in new significant environmental effects or a substantial increase in the severity of previously identified significant effects (CEQA Guidelines §15162(1)). Changes in the circumstances under which the Hoag Master Plan Update Project will be implemented would not result in new significant effects that substantially increase the severity of previously identified significant effects (CEQA Guidelines §15162(2)). New information which was not known and could not have been known at the time the previous EIR was certified would not result in one or more significant effects not discussed in Final EIR No. 142, or a substantial increase in the severity of effects identified in Final EIR No. 142, or that mitigation or alternatives that are now feasible are rejected by the Applicant (CEQA Guidelines §15162(3)). Further, it is important to note that it is not the substantial changes in the project or a substantial increase in the severity of effects that are involved in the project that triggers the need for a Subsequent versus a Supplemental EIR. Rather, it is whether the changes in the project or the increase in the severity of effects require major revisions of 5.OLS' Hoag Master Plan Update January 31, 2008 Page 23 a previous EIR or minor additions or changes to make the previous EIR adequate (see California Public Resources Code §21166 and CEQA Guidelines §15163(a)). If the former, then a Subsequent EIR is appropriate. If the latter, a Supplemental EIR is appropriate. This is a critical distinction because even if the proposed Master Plan Update Project would result in substantial changes to the previously approved project or substantially increase the severity of impacts, which it does not, a Subsequent EIR would be required only if such changes required major rather than minor revisions to the previous EIR. In this case minor revisions were needed so a Supplemental EIR was the appropriate document to prepare. The following environmental topics are addressed in the Supplemental EIR: land use, transportation and circulation, air quality, noise, and aesthetics. The findings of the EIR with respect to these issues are summarized below: Land Use The reallocation of up to 225,000 sf of approved but not constructed development from the Lower Campus to the Upper Campus as proposed with the Master Plan Update Project would have no greater or different land use effect than the existing Master Plan, and would therefore not have a significant project impact. However, the project would not alleviate the significant unavoidable land use impact to residences to the west of Hoag on the Upper Campus identified in Final EIR No. 142. Final EIR No. 142 found that the project would result in a significant and unavoidable land use impact on residential units located directly adjacent to the western buildings of the Upper Campus. Although the project setback limits are more stringent than City Code, the placement of hospital buildings closer to residential units located to the west of the Upper Campus was identified as a significant impact when considered in combination with other impacts: shade and shadow impacts and noise impacts in this location. Consistent with the conclusions of Final EIR No. 142, the Supplemental EIR finds that the proposed Master Plan Update Project would also result in significant impacts to existing residential development west of the Upper Campus. The proposed amendment to the Master Plan would not alter or make these impacts more severe. Therefore, while the project would cause a significant unavoidable land use impact, it would not constitute a new impact. The proposed Master Plan Update Project is considered compatible with land uses to the north, south, and east. No significant land use compatibility impacts would be associated with the Lower Campus. No land use policy or other significant land use impacts were identified. Transportation and Circulation A traffic study was prepared for Final EIR No. 142. That traffic study focused on the evaluation of Phase I traffic and parking- related issues, and also provided a detailed analysis based upon an assumed buildout size for the two remaining phases of the Master Plan although Hoag was not stipulated to build out the project site in three phases. Final EIR No. 142 evaluated traffic impacts on the basis of whether the project would cause an increase in traffic which is substantial in relation to the entire traffic load S•" Hoag Master Plan Update January 31, 2008 Page 24 and capacity of the Circulation System; "substantial" is defined as per the City's Traffic Phasing Ordinance (TPO)" (page 4 -72). Final EIR No. 142 determined that the Master Plan Project would not adversely affect intersections in the traffic study area, but that subsequent TPO analyses and Master Plan Trip Budget analyses would be required. Final EIR No. 142 also addressed potential traffic impacts associated with construction activities. In summary, Final EIR No. 142 found that traffic and parking impacts with buildout of the Master Plan would be less than significant with mitigation. Final EIR No. 142 found that all traffic and parking impacts could be mitigated to a level considered less than significant. A traffic study was prepared for the Supplemental EIR using the current Newport Beach Traffic Model (NBTM). The NBTM "Constrained" network was used for 2015 analysis and the City's `BuildouY' network (also known as the City's "General Plan Baseline" network) was used for 2025 analysis. The traffic analysis assumed the maximum reallocation of 225,000 sf from the Lower Campus to the Upper Campus by 2015. Traffic generation is based on specific land uses. Although no site - speck development projects are proposed as a part of the proposed project, for CEQA purposes, the traffic analysis identifies the total square footage for Hoag (inclusive of currently approved but not constructed square footage) and correlates to a portion of the square footage reallocation to inpatient hospital beds, specifically 76 inpatient hospital beds. Trip generation rates for inpatient hospital uses are expressed in terms of "trips per bed," rather than "trips per square feet." The number of beds is a better indication of (or a better correlation to) the trip- making potential of inpatient uses than is square footage and accounts for traffic generated by inpatient drop - off /pick -up activities, inpatient visitors, medical staff, administrative staff, and emergency room - related uses. The proposed project does not require Hoag to provide this number of beds or preclude Hoag from requesting more inpatient hospital beds as long as the square footage allocations set forth in this SEIR are not exceeded and no new environmental impacts would occur. The outpatient trip rates account for traffic generated by "stand alone" outpatient facilities at Hoag. (i.e., Cancer Center) and other medical office buildings at Hoag that provide outpatient care and receive medical referrals from the hospital /inpatient facilities at Hoag. Outpatient trip rates include trips by outpatients, outpatient drop - off /pick -up activities, outpatient visitors, medical staff, and administrative staff. With respect to support services, the traffic analysis identifies that these services do generate traffic. The City determined that trips generated by support services are the same trips accounted for in other land use categories, and are considered to be internal trips within Hoag that would not be additive at the key intersections located outside of Hoag. The increase from approximately 16 percent under existing conditions to approximately 20 percent presumed in the future for support services is due to the anticipated need for increased space to accommodate advancing technology in the delivery of health care, and to ensure the proper utilization of related supplies and equipment. s•A7 Hoag Master Plan Update January 31, 2008 Page 25 The Supplemental EIR finds that no new significant traffic impacts have been identified associated with the proposed Master Plan Update Project. Consistent with the conclusions of Final EIR No. 142, the project's contribution and all project - specific cumulative traffic, circulation, and parking impacts can be mitigated to a level considered less than significant. Air Quality Final EIR No. 142 was certified in 1992, prior to the publication of the South Coast Air Quality Management District's (SCAQMD) CEQA Air Qualify Handbook in 1993 and the significance thresholds presented in the handbook. Final EIR No. 142 found that construction emissions would result in significant, unavoidable impacts. The EIR found no significant impacts to long -term, project emissions associated with carbon monoxide (CO), nitrogen oxides (NOx), or reactive organic gases (ROG). However, it should be noted that the project - related CO, ROG, and NOx emissions presented in Final.EIR No. 142 exceeded the significance thresholds which were subsequently published in SCAQMD's CEQA Air Quality Handbook. The analysis in Final EIR No. 142 compared project emissions with regional emissions for the basin and Source Receptor Area 18 (the SCAQMD- designated area within which Hoag is located), and concluded that since the project represented such a small portion of regional emissions, the project did not result in a significant impact. Final EIR No. 142 did determine, however, that development of the Master Plan in conjunction with present and future projects would have a significant unavoidable cumulative impact on regional air quality. An air quality study was prepared for the Supplemental EIR. With respect to short-term construction air quality effects, consistent with the findings of Final EIR No. 142 for the existing Master Plan, the proposed project would result in air pollutant emissions that exceed SCAQMD's construction thresholds. The proposed mitigation program would reduce construction- related emissions, but not to a level considered less than significant. Therefore, short-term construction air quality impacts, including potential human health implications, would be, significant even with mitigation incorporated resulting in a significant unavoidable adverse impact. With respect to long -term operational effects, the proposed project could generate fewer pollutant emissions than would occur with the 1992 Master Plan because of trip reductions associated with the proposed project. The amount of reduction would be dependent on the amount of square feet reallocated from the Lower Campus to the Upper Campus. Therefore, compared to the long -term air quality impacts associated with the 1992 Master Plan, the proposed project's impacts could be reduced. However, consistent with the findings of Final EIR No. 142 for the existing Master Plan, the proposed project's operations would result in emissions of CO, VOC, and NOx, which would exceed the SCAQMD- established operational phase thresholds. Proposed mitigation would reduce these impacts, but not to a level considered less than significant. Therefore, project implementation would result in unavoidable, significant long -term regional air quality impacts, including potential human health implications. 5 at Hoag Master Plan Update January 31, 2008 Page 26 Noise Final EIR No. 142 found that the Master Plan would not result in any significant traffic noise impacts but would contribute to existing noise level exceedances along five road segments. The EIR identified that the projects incremental addition to cumulative traffic noise impacts was a significant and unavoidable cumulative noise impact. Final EIR No. 142 also found that an exhaust fan was generating excessive noise levels resulting in a significant impact. Mitigation was identified, but the fan is currently generating noise levels in excess of the mitigation requirements. Loading dock,noise was not identified in Final EIR No. 142. However, the noise measurements performed for the exhaust fan analysis were in the general location of the loading dock. Grease traps were not in use at Hoag in 1991 and have only recently been implemented to comply with water quality regulations. Therefore, noise generated by the grease trap cleaning was not analyzed in the previous EIR. Final EIR No. 142 also assessed impacts on the project from traffic noise. As a Master Plan, specific projects were not defined. The EIR concluded that patios and buildings located within the 65 CNEL roadway contours could be significantly impacted. Mitigation was identified. As previously noted, Final EIR No. 142 found that the intensification of development on the Upper Campus would result in a significant unavoidable land use impact to residential units to the west when the combination with visual (shade and shadow) and noise impacts were considered. A noise study was prepared for the Supplemental EIR. With respect to vehicular noise, consistent with Final EIR No. 142, the proposed project's contribution to changes in traffic noise levels would be less than significant. On a cumulative basis, four roadway segments are projected to have traffic noise level increases of 3 dB or more when compared to existing conditions. The proposed project is expected to result in a 1 dB or greater increase along three of these segments; the project has not contributed to one segment. Because the noise standards would not be exceeded, the proposed project's contribution would not result. in a significant cumulative impact along these road segments. With respect to long-term on -site activities, noise generated from activities in the loading dock and in the vicinity of the loading dock is considered sig nificant, as the proposed Master Plan Update Project will modify the applicable noise standards such that limitations under the Noise Ordinance will be allowed to be exceeded. The Supplemental EIR identifies that proposed changes to the noise standards for the loading dock area could eventually result in higher noise levels at the nearby residences (compared to existing conditions). Mitigation measures are recommended and it has been determined that there is no feasible mitigation to reduce impacts from the loading dock area to below the limits contained in the City's Noise Ordinance. Modifications to the noise standards would allow noise to exceed the Noise Ordinance criteria in the vicinity of the loading dock area. However, even with the application of the feasible s•19 Hoag Master Plan Update January 31, 2008 Page 27 't mitigation measures, the Supplemental EIR identifies the proposed changes as resulting in significant and unavoidable adverse impacts. With respect to the grease trap located in the general loading dock area.of Hoag, it is cleaned once per month. The City considers grease trap cleaning a property maintenance activity in accordance with the Newport Beach Noise Ordinance of the Municipal Code: Sections 10.26, 10.28, and 10.32. Property maintenance occurring between the hours of 7:00 AM and 6:30 PM Monday through Friday or between the hours of 8:00 AM and 6:00 PM on Saturday is exempted from the Noise rdinance criteria. Therefore, the grease trap cleaning is exempt from the Noise Ordinance limits as long as it occurs during these hours. Property maintenance activities are prohibited on Sundays and federal holidays. Although the grease trap cleaning is exempt from the City's Noise Ordinance because it is a maintenance activity and maintenance occurs during hours stipulated by the Noise Ordinance, the hours for maintenance have already been changed at Hoag to occur on a Saturday between the hours of 11:00 AM and 3:00 PM. The applicable noise standards for the cogeneration facility are the Noise Ordinance regulations. The City's Noise Ordinance regulations apply to this use because this facility is not a mechanical equipment operation that would be regulated by the current Development Agreement. The particular paragraph in the Development Agreement refers to "new mechanical appurtenances on building rooftops and utility vaults" and the cogeneration facility is not consistent with this description. Residential areas within 100 feet of the Hoag property line would be protected by the Zone 3 — Mixed Use Residential criteria. The noise criterion for Zone 3 is 50 dBA (Leq) during the night and 60 dBA during the day. The noise levels for the cogeneration facility are below the nighttime criteria of 50 dBA contained in the Noise Ordinance. Nighttime noise levels have ranged from 46.1 dBA to 49.8 dBA at the upper floor of the nearest residence to the cogeneration facility. With the current equipment in operation, the noise levels generated by the cogeneration facility are in compliance with the Noise Ordinance at locations within 100 feet of the property line. A. fourth cooling tower is being installed at the facility. The addition of this cooling tower is expected to increase the cooling tower portion of the noise levels by approximately 1.2 dB. The addition of the fourth cooling tower is expected to raise the overall noise level to between 46.7 and 50.4 dBA. The operation of a fourth cooling tower is not part of the proposed Master Plan Update Project because the cogeneration facility is already permitted and no further approvals from the City are required for this facility to operate. Therefore, the operation of the cogeneration plant becomes a Noise Ordinance compliance issue. That is, the City would need to take measurements once the fourth cooling tower is operational and determine if it is in compliance with the Noise Ordinance. Should the City determine the cogeneration facility is not in compliance, the City would require Hoag to correct the situation to maintain compliance with the Noise Ordinance. s30 Hoag Master Plan Update January 31, 2008 Page 29 Aesthetics Final EIR No. 142 evaluated the potential aesthetic, topographic, and landform effects for the 1992 Master Plan project. Final EIR No. 142 determined that Iandform alteration would not result in significant visual impacts. Grading on the Upper Campus was not anticipated to be extensive and would not result in substantial Iandform alteration because previous grading activities had already altered the natural topography in this area. Although grading would occur on the Lower Campus, the slope would visually retain a similar configuration to what existed at the time the EIR was certified in 1992. =w Final EIR No. 142 concluded that there would be no significant visual impacts as result of grading activities on the Lower Campus. Views of the Upper Campus consist of the developed Hoag site. Development approved for the Upper Campus allows for the demolition and reconstruction of existing structures, additions to existing buildings, and /or construction of new buildings. Final EIR No. 142 concluded that even though implementation of the Master Plan would alter existing viewsheds of the Upper Campus, the change would not have a significant visual impact because the visual perception of the Upper Campus would not be substantially altered. The EIR concluded that the changes to the Lower Campus were not out of character with the surrounding area and were consistent with City plans and policies. Final EIR No. 142 identified that the development on the Upper Campus would cast shadows on adjacent land uses; development on the Lower Campus would not cast shadows on other properties because it is at a lower elevation than the adjacent land uses. The Versailles and Villa Balboa residential developments were identified as the only sensitive land uses for shade and shadow. Final EIR No. 142 identified that Master Plan buildout would increase shadow effects to residential units west of Hoag. While this may be perceived as adverse by some of the residents, Final EIR No. 142 concluded that it would not be a significant impact because of the short daily duration of the effect. However, Final EIR No. 142 identified that the combination of shade, shadow, and noise effects would contribute to significant unavoidable land use compatibility impacts to residences located west of the Upper Campus. The analysis conducted in the Supplemental EIR determined that, consistent with the 1992 Master Plan, the proposed project would not result in any significant. visual impacts either prior to or after mitigation. Impacts associated with the proposed project would be no greater than identified in Final EIR. 142. �T -3f Hoag Master Plan Update January 31, 2008 3 Page29' a 1 Public Notice Notice of this hearing was published in the Daily Pilot, mailed to property owners within 300 feet of the property, and posted at the site a minimum of 10 days in advance of this hearing consistent with the Municipal Code. Additionally, the item appeared upon the agenda for this meeting, which was posted at City Hall and on the City website. Prepared By: 11-W) C (Ynes Campbe I, Senior Planner Submitted by: David Lepo, Planning Director EXHIBITS (in the order they are referenced within the report) 4. List of Violations alleged by Villa Balboa tke 66114) 's. 3;1-- Exhibit No. 4 List of Violations alleged by Villa Balboa 5 , 350 THIS PAGE LEFT BLANK INTENTIONALLY Blank .,V. 3s, ) fib LIST OF VIOLATIONS OF PLANNED COMMUNITY DEVELOPMENT CRITERIA (May 26,1992) 0011 DEVELOPMENT AGREEMENT (February 14,1994) The Development Agreement ovens with the following statement of purpose: RECITALS. This Agreement relates to the following: 1.1 Purpose of Agreement. This Agreement is intended to: (b) "...minimize, to the extent feasible, any environmental impact of Hoag's proposed expansion." Unfortunately, as shown herein, there have been numerous failures in minimizing the environmental impacts of Hoag's expansion and in complying with the dictates of both the Development Agreement (DA) and the Planned Community Development Criteria (PCDC). It is the objective of this document to highlight those failures. DA Citation — (1) Recitals (Page 1) The Development Agreement also sets forth the following requirement for annual review: 5.1 City and Hoag Responsibilities. "At least every twelve (12) months during the Term, the City shall review Hoag's good faith substantial compliance with this Agreement..." 5.2 Public Hearing. "The Annual Review shall be conducted at a public hearing noticed in accordance with the provisions of Chapter 15.45 of the Newport Beach Municipal Code." 5.3 Mitigation Review. "The Annual Review shall include a detailed report of compliance with the various conditions and mitigation measures... The report shall include an analvsis of the view impacts..." s s!r 1Al The City is required to hold an Annual Review of Hoag's good faith compliance with the Development Agreement. These Annual Reviews included a specific mandate to examine the impact on views of building projects on the lower campus. The City is required to hold the review in the format of a public hearing, with notification sent in advance to nearby residents. No Annual Review was ever conducted. Among other things, this oversight prevented the City and the Community from properly assessing impacts on views of the cogeneration plant before it was built and multiple other facets of Hoag's expansion. No Annual Review has been conducted during the entire 14 year period since approval of the Agreement. Many, if not all, of the controversies that have now arisen (and been ignored for 14 years) regarding Hoag's request for modification of this agreement could have been avoided had this mandated procedure been followed DA Citation — (5) Annual Review (Page 9) THE FOLLOWING FAILURES ARE INDICATIVE OF THE VIOLATIONS OF BOTH THE DEVELOPMENT AGREEMENT AND THE PLANNED COMMUNITY DEVELOPMENT CRITERIA 1. Failure to assess Dotential impacts and prepare required environmental document with respect to plumes and noise from the cogeneration plant The DA states that the City of Newport Beach is "under a continuing obligation to analyze Hoag's requests for Project Specific Approvals to ensure the environmental impacts associated with request were fully addressed in the EIR. Subsequent environmental documentation is required if this analysis reveals environmental impacts not fully addressed in the program EIR, identifies new impacts, or concludes the specific request is not consistent with the project described in the EIR. Hoag acknowledges the right and obligation of the City and the Coastal Commission or its successor agency to impose additional conditions as the result of subsequent environmental analysis required by CEQA." Potential impacts from the cogeneration plant therefore did not cause the proper supplemental environmental documentation to be prepared with respect to the condensate, rooftop steam, or exhaust plumes from the cogeneration plant. Also, noise related to the cogeneration plant cooling towers should have been assessed prior to approval of the plant. DA Citation — (3)(3) Program EIR (Page 7) 2. Failure to prohibit /conceal/screen equipment on roof of cogeneratio"lant The PCDC states the following with respect to roofs of buildings on the lower campus "Prior to the issuance of building permits, the project sponsor shall submit plans which illustrate that major mechanical equipment will not be located on the roof of any structure on the Lower Campus. Rather, such buildings will have'clean rooftops. Minor rooftop equipment necessary for operating purposes will comply with all building height criteria, and shall be concealed and screened to blend into the building roof using materials compatible with roofing materials." The PCDC also states that "all mechanical equipment and trash areas will be screened from public streets, alleys and adjoining properties." The roof of the cogeneration plant is not "clean." Instead it contains a wide range of equipment, including six large exhaust stacks, steam vents, and other related devices. It can be argued that the exhaust stacks in particular violate the provision banning major equipment; they are certainly not screened from view. Steam vents are covered by grill work, but do not "blend into the building roof." Further, both exhaust stacks and steam vents discharge plumes which rise well above the roof of the building, clearly violating the intent of the PCDC. PCDC Citation - (V)(F) Roof Treatment (Page 17) ,PCDC Citation - (V)(.1) Mechanical and Trash Enclosures (Page 18) 3. Failure to prepare a complete and accurate view impact analysis for cogeneration plant The DA contains a requirement that, prior to receiving a building permit, Hoag must . prepare a view impact analysis of each proposed building. In order to provide an accurate assessment of the impact of the cogeneration plant on views, any such study should have included an assessment of the impact of the plant's condensate, steam, and exhaust gas plumes. DA Citation — (3)(2)(i) (Page 7) DA Citation, Exhibit C — Item # 48 (Page 9) S • 3% �A5 4. Failure to demonstrate that cogeneration plant would be comDhant with SCAQMD Rule 402 (Public Nuisance) The DA contains a requirement that, prior.to receiving a building permit, Hoag must submit plans to the City demonstrating compliance with all SCAQMM rules, including Rule 402 (Public Nuisance), which specifically addresses visible plumes (see below). There is no evidence among City application materials. related to the cogeneration plant that demonstrates compliance with this requirement. DA Citation, Exhibit C — Item 482 (Page 13) 5. Failure to develop a Drover air quality analysis related to plumes from the cogeneration plant The DA contains a requirement that, prior to receiving a building permit, Hoag must conduct an air quality analysis prior to each stage of development, and that "appropriate CEQA" documentation must be prepared if "new emissions, when added to existing project emissions could result in impacts not previously considered..." Since the visible plumes from the cogeneration plant were not considered in the EIR 142, an SEIR should have been generated with relation to the cogeneration plant to evaluate the impact of the plumes from the cooling towers, exhaust stacks,.and rooftop steam vents. Dom. Citation, Exhibit C - Item #36 (Page 7) 6. Failure to enforce maximum height mandates - fence behind cogeneration plant The fence built above and behind the lower campus cogeneration plant clearly violates the heigbt restrictions of the PCDC. PCDC Citation - (V)(C)(4) Maximum Building Height (Page 14) 7. Failure to meet requirement to maintain noise levels below 55 dBA at all aroperty lines. Noise levels near the loading -dock, and other areas of the upper campus, and at the cogeneration plant, have consistently failed to meet the requirement that sound levels not exceed 55 dBA at all property lines. PCDC Citation - (11)(7) General Notes (Page 2) s•3g 8. Failure to follow directives in the DA and PCDC requiring noise abatement via enclosure of the loading dock area. Noise standards have been continuously violated at the Hoag loading dock area. Both the DA and PCDC require enclosure ( "enclosure shall be required ") of the loading dock area if no other noise mitigation measures prove to be effective. PCDC Citation — (V)(L) Loading Dock (Page 19) DA Citation, Exhibit C — Item #120 (Page 18) 9. Failure to consistently restrict construction and related work to the mandated hours of 7am to 6pm during the week, and to 8 am to 6 pm on Saturday. On numerous occasions, construction and related activities on the lower campus have occurred well before the morning thresholds cited in the PCDC and DA. Several of these incidents are documented in writing and/or photographically. PCDC Citation — (V)(K) Internal Circulation (Page 18) DA Citation, Exhibit C — Item #112 (Page 17) 10. Failure to implement landscaping nlans as promised during a meeting conducted by Hoag personnel (including landscape architect) and Government Solutions On March 14, 2007 Hoag personnel (including landscape architect) and representatives of Government Solutions, Inc. conducted a meeting on the premises of Villa Balboa for the purpose of updating Villa Balboa residents on Hoag's development plans. While presenting landscaping plans for the lower campus parking area, Hoag included architectural renderings showing far more planting areas devoted to trees than have actually been implemented. The term expressed by the landscape architect for the quantity of trees to be planted in the parking lot was "a canopy of trees." This has not occurred. At that same meeting Hoag showed architect renderings depicting a promised "lattice framework around the cogeneration plant to be planted with ivy." The audience was told that Hoag had submitted plans for both the "canopy of trees" and the "cogeneration plant lattice work" to the California Coastal Commission. A subsequent call to the Long Beach office of the Coastal Commission revealed that such an application had not been filed. s- 37 �A5 Residents of Villa Balboa relied on Hoag's statements and architectural renderings with respect to the landscaping issues discussed above, however Hoag has not followed through on it promises and has ceased communicating with residents on this issue. This gives the appearance that Hoag was simply attempting to placate residents to forestall any further organized activities in opposition to Hoag's request to amend the Development Agreement of February 14, 1994. 11. Failure to document to the City prior to construction that cooling tower exhaust fans would be compliant with 55 dBA noise limitation at all property lines. The cooling tower exhaust fans exceed the requirement that noise be less than 55 dBA at all property lines. The DA requires to Hoag demonstrate to the City prior to receiving a building permit that noise from new mechanical equipment will be in compliance with the 55 dBA noise restriction. PCDC Citation - (II)(7) General Notes (Page 2) DA Citation, Aunendix A — Item #41 (Page 8) 12. Various lighting systems on the lower campus do not comply with language in the PCDC and DA which require concealment of light sources and minimization of light spillage and glare to the adjacent residential uses. This includes current lighting on the inner and outer walls of the Child Care Center. Lighting for the new lower campus parking lot was clearly in violation of applicable rules until intervention by the City due to complaints from residents. Prior to installation a report is to be prepared by a lighting engineer certifying that the lighting system complies with the DA and PCDC. (This issue is currently being addressed by the Planning Department, including use of off -hour and photovoltaic cell lighting controls, time clocks and motion detector lighting controls.) PCDC Citation - (V)(E) Lighting (Page 17) DA Citation, Exhibit C — Item #44 (Page 8, 9), Item #88 (Pagel 4) 13. Failure to adhere to limits on construction activities The DA limits the hours of construction and excavation work to 7:00 am to 6:00 pm on weekdays, and 8:00 am to 6:00 pm on weekends. These rules have been violated on numerous occasions, many of which have been documented with Hoag. S. yo 0 7 DA Citation, Exhibit C - Item # 112 (Page 17) 14. Failure to visually screen mechanical equipment and enclosures Hoag has a long history of leaving equipment and trash receptacles or trash piles in plain view from both nearby roadways, residences, and the Sunset View Park. (Pictures documenting these violations are available.) PCDC Citation - (V)(J) General Notes (Page 18) 15. Failure to screen views from West Coast Highwav (Special Landscaped Street) Hoag is required to screen views of equipment, trash enclosures, and parking areas from West Coast Highway. However, this requirement has not been met with respect to the equipment around the cogeneration plant or to the lower campus parking lot. PCDC Citation - (VIII)(C) Special Landscaped Street (Page 25) PCDC Citation - (V)(J) Mechanical and Trash Enclosures (Page 18) CONTINUING INVESTIGATIONS INTO ADDITIONAL POSSIBLE VIOLATIONS 1. Hoag failed to adhere to requirement for good faith and fair dealing as required by the DA. During the approval process for the cogeneration plant, Hoag failed to clearly communicate to the City, the Coastal Commission, or to nearby residents that the plant would emit plumes of condensate, steam, and exhaust gases. This prevented the involved governmental bodies and residents from properly evaluating or understanding the impact of the plant on the community, and breached its good faith requirement to fully disclose potential impacts. During the approval process for the excavation of the lower campus bluff, Hoag submitted to the Coastal Commission an application which grossly understated the amount of vegetation which would be removed. (Documentation supporting this statement is available upon request.) This prevented the Coastal Commission from properly evaluating Hoag's request, and breached its good faith requirement to fully disclose potential impacts. DA Citation — (11)(7) Covenant of Good Faith and Fair Dealing (Page 19) S., It `A� 2. Failure to dedicate at least 5% of the new lower campus parking lot to planting. Parking lot landscaping on the lower campus fails to meet the mandates set forth in the PCDC, requiring that a minimum of 5% of the parking area be landscaped. Further, the landscaping that has been implemented is significantly over - committed to the entrance area for the Child Care Center rather than being evenly distributed throughout the entire lower campus parking area to the northwest of the PCH lower campus entrance. PCDC Citation - (VIII)(E) Parking Areas (Page 25) 3. Impact of Lower Campus Bluff Excavation and Retaining Wall Construction The excavation of the lower campus bluff and the construction of the retaining wall have been associated with signs of settling of Villa Balboa structures. These signs include cracking, and jamming of doors and windows. These problems are under investigation by Villa Balboa consultants. The sidewalk which transverses the linear Sunset View Park has experienced increasing cracking and loss of structural integrity. DA Citation — (3)(2)(a)(b) (Page 7) CONCLUSIONS The residents of Villa Balboa are deeply distressed by their experiences of the past 1% years in attempting to negotiate with Hoag to reach acceptable solutions to the issues cited above. What first appeared to be a willingness on Hoag's part to meet and work with representatives of the Villa Balboa Association ultimately became an exercise in futility as Hoag effectively cut off communication abruptly in September of 2007 and failed to agree to retrofit the cogeneration plant or to implement specific promises made to the Association regarding a range of issues such as landscaping and the illegal cogeneration plant fence. Unfortunately, what should have been a "win -win" endeavor between Hoag and its neighbors has turned into a "lose- lose" proposition. Visitors to Sunset View Park as well as visitors to the City of Newport Beach traveling on Pacific Coast Highway (designated by the,California Coastal Commission as a "scenic highway ") have been misled throughout the ongoing Hoag expansion. 5- VA- 0 In addition to numerous violations of the letter of the Planned Community Development Criteria, Hoag has unfortunately also violated its spirit and intent. This spirit is perhaps best expressed in the section on development "Standards" which can be found in the section on Site Plan Reviews: "Development shall be compatible with the character of the neighborhood and surrounding sites and shall not be detrimental to the orderly and harmonious development of the surroundings and the City." Development shall be sited and designed to maximize the aesthetic quality of the project as viewed from surrounding roadways and properties.... " PCDC Citation — Standards, (Page 27) S.. Ys lAol