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HomeMy WebLinkAbout02 - Hoag Hospital Master Plan Update - PA2007-073CITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT April.16, 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 icampbelll(&city.newport- beach.ca.us INTRODUCTION Hoag Hospital desires to transfer up to 225,000 square feet of unbuilt floor area currently permitted to be developed within the Hoag Lower Campus along Coast Highway to the Upper Campus along Hoapital Road. Hoag believes this request is necessary to accommodate the ever changing health care industry and to meet the needs of the community. The General Plan provides a separate gross floor area limit for the Upper and Lower Campuses based upon the 1992 approval of Hoag's Master Plan. The Master Plan is the Hoag Memorial Hospital Presbyterian Planned Community Development Criteria and District Regulations (PC Text). The Lower Campus is intended for outpatient and support uses with the Upper Campus focused on inpatient care and administrative uses. These general emphasis will not be changing. Hoag believes additional inpatient facilities are needed and the transferred entitlement will accommodate an additional hospital tower within the Upper Campus. RECOMMENDATION Conduct a public hearing and take the following actions: Adopt the attached draft resolution certifying the Supplemental Environmental Impact Report (Exhibit #1). 2. Adopt the attached draft resolution approving General Plan Amendment No. 2007 -005 (Exhibit #2). 3. Introduce the attached draft ordinance and pass to a second reading on April 22, 2008, approving Planned Community Development Plan Amendment No. 2007- 001 (Exhibit #3) Hoag Master Plan Update April 16, 2008 Page 2 4. Introduce the attached draft ordinance and pass to a second reading on April 22, 2008, approving Development Agreement Amendment No. 2007 -001 (Exhibit #4). ALTERNATIVES 1. City Council can approve the requested application while making modifications to the PC Text and /or draft amendment of the Development Agreement. If modifications create a physical change to the environment, additional CEQA analysis would be necessary. 2. Continue the application should additional time or further study be determined necessary. 3. Deny the requested application. APPLICATION SUMMARY The following discretionary approvals are requested or required in order to implement Hoag's requested application: 1. 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 the State California Environmental Quality Act (CEQA) and State and City CEQA implementing guidelines, as well as certification that the SEIR reflects the Council's independent judgment and that the information contained in the SEIR was considered in the final decisions on the project. 2. General Plan Amendment No. 2007 -005 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 is required. 3. Planned Community Development Plan Amendment No. 2007 -001 to modify the existing Hoag Memorial Hospital Presbyterian Planned Community Development Criteria and District Regulations (PC Text) to account for the change in building program. Included is a comprehensive update of regulations. 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. Hoag Master Plan Update April 16, 2008 Page 3 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 bounded 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. The Lower Campus is within the coastal zone. VICINITY MAP CT 157H 1.15TH 5T Wx it r Z BLUEFIH CT jt S G 3 1`,fa�`L;4�7 >,ri Y ,,�,� t 1 1 �v rp 0 l, i ! ' p{ bSi(' I p nq e� t�oti r HALYARD 't"ME°ICAL LN i ,�Fi'� %'h f +,�A y�'h�, � �•,j y I � � � A% i �INTr"t S9 Lw ti n d+ m !>? r �t�bii At Q,V' ,G r'� `�'b i1� >✓ ds's p 'E � � i ������tr �. y '" i� r'' .�Q t e � 9 -✓ v v-� �>hr di-r. ��i" '`� d .�v,5 � ova r { g� � C ���' ��'' tv it Al "�FN�`�1 w th G '"o�(C�tr�(t'" f ,r .c y 9p.i✓�. � F �5 t H°SPt7AL R 14 ffasrs � 4, ..t �'4 UPPer 'Campus} }b J! y�•! L: "� s.,, V h oa�o� ^��E iI t 3 Lower CampusI ; faPi oy" a �cLIFF OR ; 7. O'a rN c°HAxveLIP � Coves ti r . rr �s,�afC'�A �` {"� ✓` a^s . %cEP ° ?� ^aec V'✓ h >� % � 9 O '�y 1 6' y�'�a'� f' fr .ter m ji tv ,,50I�Flp, T`6yr A�'v Ir }7 \tiv "�v Ell L\ « racerays w q 'm rob�.,>F7u �, a .�,,r� :. Fri t�5�i�'- t�,'✓, f � ;I .�*,�t P.,�.�,�_ i � �1 '; sG+�' � yr4'� Hoag Master Plan Update April 16, 2008 Page 4 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, from 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. GENERAL PLAN Hoag Hospital �. General Plan Land Use Envixons d w folio. N., Ikq pG�G.4e�u�..e ,e,.m�.ame Surrounding land 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). Hoag Master Plan Update April 16, 2008 Page 5 ZONING 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) APF (Administrative Medical offices 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 Hoag Master Plan Update April 16, 2008 Page 6 LOCATION GENERAL PLAN ZONING CURRENT USE 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 OS (Open Space) BACKGROUND The application was first considered by the Planning Commission on January 31, 2008. The staff report and meeting minutes are attached as Exhibit #5 and Exhibit #6, respectively. On February 7, 2008, the Commission participated in a dialog about the possibility of installing a soundwall between Villa Balboa and Hoag to address noise issues. There was no written staff report for that meeting and the minutes are attached as Exhibit # 7. Fred Greve of Mestre Greve Associates, the City's noise consultant made a presentation about a soundwall system that would be minimally invasive and would mitigate noise from the loading dock and vehicles traveling on West Hoag Road. Hoag conducted a workshop with Villa Balboa residents on February 23, 2008, to inform residents and to seek input. On March 6, 2008, the Planning Commission continued their review of the application. The staff report and meeting minutes are attached as Exhibit #8 and Exhibit #9, respectively. Finally, on March 20, 2008, the Planning Commission concluded their review of the application. The staff report and meeting minutes are attached as Exhibit #10 and Exhibit #11, respectively. The Commission voted unanimously to adopt a resolution recommending certification of the SEIR (Exhibit #12) and a resolution recommending approval of the application (Exhibit #13). A more complete summary of the history and past development of the Hoag Hospital campus is contained in the Planning Commission staff report dated January 31, 2008. PROJECT DESCRIPTION The General Plan and the PC Text allow for up to 1,343,238 sq. ft. of development at Hoag with 765,349 sq. ft. allocated to the Upper Campus and 577,889 sq. ft. allocated to the Lower Campus. There are currently 890,005 sq. ft. of medical and medical - related uses at Hoag, of which 698,121 sq. ft. are inpatient, outpatient, and support uses on the Upper Campus and 188,149 sq. ft. of outpatient and support uses on the Lower Campus. Therefore, of the remaining 456,968 sq. ft. of approved but not constructed uses, 67,228 sq. ft. could be developed on the Upper Campus and 389,740 sq. ft. could be developed on the Lower Campus. Hoag Master Plan Update April 16, 2008 Page 7 The proposed Master Plan Update Project would allow for up to 225,000 sq. ft. 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 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 sq. ft. for the Upper Campus and 577,889 sq. ft. for the Lower Campus, for a total of 1,343,238 sq. ft.. The General Plan Amendment would allow up to 225,000 sq. ft. to be transq. ft.erred from the Lower Campus to the Upper Campus. The maximum allowable building area on the Upper Campus would be 990,349 sq. ft. (if all 225,000 sq. ft. are reallocated from the Lower Campus to the Upper Campus) and the maximum allowable building area on the Lower Campus would be 577,889 sq. ft. (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 sq. ft.. „ .Remaining Prop09ed Remamng After Approved (sq Constructed (sq. ` Approved (sq. Reallocation - Realtocatian Location ft) ft ) -" ft) ., (sq ft) 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 1,343,238 (sq. ft.) Total Constructed (sq. ft.) 886,270 Total Remaining Approved (sq. ft.) 456,968 Proposed Maximum Allowable (sq. ft.) Upper Campus: 990,349` Lower Campus: 577,889 Total not to exceed: 1,343,238° ° Assumes full reallocation of 225,000 sq. ft. from the Lower Campus to the Upper Campus. Up to 225.000 sq. ft. can be transq. ft.erred from the Lower Campus to the Upper Campus. The maximum allowable building area on the Upper Campus would be 990,349 sq. ft. (existing + currently approved but not developed + the maximum reallocation of 225,000 sq. ft. from the Lower Campus), and a maximum allowable building area on the Lower Campus would be 577,889 sq. ft, (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 the Upper and Lower Campuses exceed 1,343,238 sq. ft.. 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 sq. ft.. 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 sq. ft. for the Upper Campus and 577,889 sq. ft. for the Lower Campus, for a total of 1,343,238 sq. ft.. The General Plan Amendment would allow up to 225,000 sq. ft. to be transq. ft.erred from the Lower Campus to the Upper Campus. The maximum allowable building area on the Upper Campus would be 990,349 sq. ft. (if all 225,000 sq. ft. are reallocated from the Lower Campus to the Upper Campus) and the maximum allowable building area on the Lower Campus would be 577,889 sq. ft. (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 sq. ft.. Hoag Master Plan Update April 16, 2008 Page 8 PC Text Amendment The PC text would be amended to establish the maximum allowable building areas for the Upper and Lower Campuses consistent with the proposed General Plan Amendment. Additionally, Hoag proposes a comprehensive update of the regulations including noise regulations, minor changes and clarifications to the permitted uses and definitions, landscape regulations and sign standards. Aside from the change to reflect the transfer of building area, the most noteworthy changes relate to noise standards and noise abatement. Presently, the PC Text provides the following noise standard: "New mechanical appurtenances on building rooftops and utility vaults, excluding communications devices, on the upper campus shall be screened from view in a manner compatible with building materials. Rooftop mechanical appurtenances or utility vaults shall be screened on the lower campus. Noise shall not exceed 55 dBA at all property lines. No new mechanical appurtenances may exceed the building height limitations as defined in these district regulations." The following standard is proposed: "Noise generated at the Hoag Hospital property shall be governed by the City of Newport Beach Noise Ordinance, except as noted below for the Loading Dock Area. Refer to Exhibit 5, Loading Dock Area Location, for the location. 1. The applicable noise standard at the Hoag Hospital property line adjacent to the Loading Dock Area shall be as follows: 7AM -10 PM 10 PM -7AM Daytime Nighttime Leq (15 min) 65 dBA 55 dBA 2 Within the Loading Dock Area during daytime hours, vehicles shall be exempt from applicable noise standards as listed above. Vehicle idling shall be prohibited on West Hoag Drive and within the loading dock areas, except that refrigerated vehicles may idle while at the loading docks when refrigeration is necessary. In addition, the grease pit cleaning which is exempt from the City Noise Ordinance as a maintenance activity shall occur on a Saturday between the hours of 11:00 AM and 3:00 PM." A 465 -foot soundwall ranging from 14 to 23 feet in height is proposed to be constructed between Villa Balboa and West Hoag Drive in the vicinity of the loading dock. This wall will absorb noise from vehicles and the loading dock and Hoag will provide landscaping to buffer the wall aesthetic. The existing Hoag PC Text and draft amendment as recommended for approval by the Planning Commission are attached as Exhibit #14 and #15, respectively. Hoag Master Plan Update April 16, 2008 Page 9 Development Agreement Amendment An amendment to the Development Agreement is necessary and negotiations on behalf of the City were conducted by a Council- appointed subcommittee consisting of Mayor Selich and Councilmember Rosansky. The amendment provides an. increase in the public benefits through the payment of 3 million dollars for City public facility improvements and designation of the City as the point of sale for major hospital equipment purchases. The Development Agreement Amendment would also incorporate the revised PC text by reference. The existing Development Agreement and draft amendment are attached as Exhibit #16 and #17, respectively. DISCUSSION 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 sq. ft. with 765,349 sq. ft. on the Upper Campus (Anomaly #56) and 577,889 sq. ft. on the Lower Campus (Anomaly #57). Implementing this transfer can be accomplished by combining the two anomalies and providing the Upper and Lower Campus limits in the "Additional information" column of Table LU -2 within.the Land Use Element. The change would be as follows: ..- Anomaly Statistical "Land Use,, `.:Development ; " .Number ( Area Desi nation - Limft s '2: fl. no" lo me[ifi Limes Other Additional Information 990,349 sq. ft Upper In no event shall the total 1.343.238 Campus combined gross floor area of 56 A3 PI both campuses exceed the 765,348 577,889 sq. ft Lower development limit of Campus 1,343,238 sq. ft. 57 A3 RI 577-,M A discussion of the projects consistency with applicable General Plan and Coastal Land Use Plan policies is contained within the January 31, 2008, Planning Commission staff report (Exhibit # 5, pages 5.15 - 5.17). The project is consistent with both the General Plan and Coastal Land Use Plan, which is applicable to the Lower Campus only. The proposed General Plan Amendment has been evaluated pursuant to City Charter Section 423 and Council Policy A -18 to determine whether the amendment requires a vote by the electorate. An amendment requires a vote when it allows increases in excess of 100 residential units, 40,000 square feet of non - residential intensity or 100 Hoag Master Plan Update April 16, 2008 Page 10 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 have 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 no increase in gross floor area is proposed. In conclusion, no vote by the electorate is required pursuant to Charter Section 423. PC Text Amendment The draft amendment of the PC Text as recommended for approval by the Planning Commission is attached as Exhibit #15 in a strikeout and underline format clearly showing what is being deleted and added. The current PC text contains several map exhibits that are proposed to be updated and replaced for clarity. The following is a summary of the proposed changes: 1. Change to development limits to reflect the ability to transfer building area from the Lower to the Upper Campus consistent with the proposed General Plan Amendment. 2. Change to noise standards to provide an achievable exterior noise standard for the loading dock area and the application of the Noise Ordinance limitations would apply in all other locations. A map of the loading dock area will be an exhibit within the PC Text and the proposed standard of 65 dBA for daytime noise and 55 dBA for nighttime for the loading dock area is 5 dBA above the Noise Ordinance. The proposed amendment would be measured at the property line as opposed to the receptor site, so actual noise at the residences will be slightly less due to distance. 3. New provision to require the installation of a 465 - foot -long soundwall that ranges between 14 to 23 feet in height. Hoag requests this amendment and a map of the approximate wall location is included in the proposed PC Text. Villa Balboa residents have generally been receptive to the proposed wall given that it will not necessitate heavy construction techniques and that the much of the existing landscaping will be retained and additional screening landscaping will be installed and maintained by Hoag. The sound absorbing wall can be manufactured in a variety of colors and input on the color from Villa Balboa residents is requested. 4. Changes to provisions regarding the use of West Hoag Drive, which is the roadway between Hoag and Villa Balboa, and retention of the provision requiring closure of the roadway between 8:00 PM and 7:00 AM. 5. Clarification of the provisions regarding the use of the loading dock that prohibits non - emergency deliveries between 8:00 PM and 7:00 AM. The prohibition presently Hoag Master Plan Update April 16, 2008 Page 11 exists and Hoag has not had the need to allow emergency deliveries. The modified language provides enhanced clarity. 6. Changes to the sign regulations to provide Hoag with additional signs to largely reflect the current, approved sign program. 7. Changes landscape regulations to require additional landscape elements to screen buildings and parking areas on the Lower Campus from West Coast Highway and from Sunset View Park. Landscaping is also required to screen the proposed soundwall between Hoag and Villa Balboa and residents of Villa Balboa will have a voice in the review and approval process of the wall. Included with the application was a requested modification of the definition of "Entitlement Gross Floor Area." The Planning Commission and staff felt that the proposed change was not appropriate as areas previously counted toward the total gross floor area could be exempted, leading to additional building area. The Commission only made a small modification to one listed exemption to floor area. Currently, areas of a building that measure less than 8 feet from finished floor to ceiling and are not for general or routine occupancy are not counted toward Hoag's entitlement. The Commission changed the height from 8 feet to 10 feet. In a letter dated April 2, 2008, attached as Exhibit #18, Government Solutions, on behalf of Hoag Hospital, asks that the Council consider the following change to this exemption: Area of a medical building, that is not used for general or routine occupancy but rather is for interstial or mechanical occupancies that measures less than 19 feet 444014 Fneasums less than 10 fee from finished floor to ceiling and is not feF general or Pal itins Y� This language will not lead to additional area that would generate traffic, and buildings constructed pursuant to it would not exceed height limits as no change in height limits is being considered. Development Agreement The existing Development Agreement expires in 2019 and no extension of the term is sought. The amendment would provide an increase in the public benefit through the payment of 3 million dollars for City public facility improvements. Half of the fee (1.5 million dollars) would be for reimbursing the City for costs associated with the construction of street and intersection improvements in the area. The remaining 1.5 million dollars would be for uses at the City's sole discretion to offset costs associated with other City and community projects or services that benefit the public such as, among other things, public parks (for example, Sunset View Consolidated Park), landscaping improvements adjacent to public rights -of -way, sound abatement programs, public buildings, public road improvements, water quality improvements, law enforcement, fire fighting, emergency preparedness or other public safety facilities. The proposed amendment also provides that the City be designated as the point of sale for purchases in excess of $100,000. Hoag Master Plan Update April 16, 2008 Page 12 One noteworthy change to the amendment of the Development Agreement since the Planning Commission hearing is the elimination of provisions within Section 5.4 that require wetland mitigation monitoring. Hoag has complied with its obligations related to wetlands mitigation and the provision for monitoring is obsolete. This suggested amendment is contained within the proposed draft attached as Exhibit #17. Villa Balboa contends that the Hoag's application and the City's consideration of the proposed amendment of the Development Agreement is prohibited by Section 6.5 of the agreement itself. This provision prohibits Hoag from applying and the City from approving an amendment of the Master Plan (PC text) or the Development Agreement 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. 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 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 Hoag Master Plan Update April 16, 2008 Page 13 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. On May 14, 2007, the City of Newport Beach, as lead agency under CEQA, prepared a Notice of Preparation (NOP) of the Supplemental EIR, mailed that NOP to public agencies, organizations, and persons likely to be interested in the potential impacts of the project. Thereafter, in consideration of comments received on the NOP, Bonterra Consulting, with the assistance of City staff, prepared a Draft Supplemental Environmental Impact Report (Draft SEIR). The Draft SEIR was circulated for public comment on September 21, 2007 for 45 days with the comment period closing on November 5, 2007. Staff and Bonterra Consulting prepared written responses to comments received on the Draft SEIR and on January 25, 2008, distributed the responses in accordance with Public Resources Code §21092.5. In conclusion, the SEIR has been prepared and circulated for public review in accordance with the California Environmental Quality Act, Public Resources Code § §21000, et seq. ( "CEQA °). The SEIR and Responses to comments are attached to this report as Exhibit #19 and Exhibit #20, respectively. The following topics were analyzed within the SEIR: Land Use, Transportation and Circulation Air Quality, Noise, Aesthetics and growth inducing impacts. The potential impacts of the proposed project were found to be no greater impact than those identified in the prior SEIR. Land Use, Air Quality and Noise impacts remain significant and unavoidable impacts: however, land use compatibility should improve with decreased noise due to the implementation proposed soundwall and mitigation measures. Responses to comments received during the comment period have been prepared for consideration. Responses to three additional letters were also prepared (Exhibit #21). The proposed PC Text has changed as a result of public discussion after circulation of the SEIR. Of the various changes contained within the current draft recommended for approval, most of the changes do not create a physical change to the environment. The added landscape provisions are clearly positive changes and the inclusion of the soundwall creates a physical change that needed additional analysis. Bonterra Consulting prepared an analysis of the impacts of the soundwall (Exhibit #22). Aside from the beneficial impact of reduced noise for most abutting residents, the analysis concludes that implementation of the wall and landscaping would not result in any new or greater significant effects than have already been addressed in the Master Plan Update Supplemental EIR or impacts that could not be mitigated to a level that is considered less than significant. Attached to the resolution certifying the SEIR is a statement of the facts to support the findings necessary to certify the SEIR and a Statement of Overriding Considerations for review. Additionally, an updated Mitigation Monitoring and Reporting Program is attached that includes all mitigation from the 1992 EIR that remain necessary and new Hoag Master Plan Update April 16, 2008 Page 14 mitigation measures and project design features necessary to minimize or avoid impacts to the environment. In conclusion, staff recommends certification of the SEIR by adoption of the attached resolution. 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. CONCLUSION Approval of the project provides more flexibility for Hoag to meet the health care needs of the community while not impacting the community more than anticipated when the Hoag Master Plan was adopted in 1992. Project approval provides a feasible noise mitigation strategy for the benefit of Villa Balboa in the loading dock area that was not included when the 1992 Master Plan was approved. Approval also provides increased public benefit to the community through the amended Development Agreement. One common theme throughout this process has been that the community supports Hoag and their continuing healthcare mission. Very few dissenting voices have been heard about the application request to transfer building area from the Lower Campus to the Upper Campus. Two issues have dominated the discussions; noise and the cogeneration facility. Noise from the loading dock area has a viable solution with the proposed soundwall, mitigation measures and project design features. This solution is not perfect, but it is likely in the best interest of both Hoag and Villa Balboa. The cogeneration facility is not part of Hoag's application and it is a contentious issue that will require cooperation from all concerned if a solution is to be found. The City Council will need to determine how best to proceed with potential plume mitigation as noted in the companion agenda item regarding the Development Agreement compliance review. Prepared By: Submitted by: ,A\k �r cAAAg"Z1 Ja es Campbe' , Senior Planner WAM, i "'L e. 0 - )• ' VA %q - EXHIBITS (in the order they are referenced within the report) 1. Draft Resolution certifying the SEIR (SCH #1991071003) 2. Draft Resolution approving General Plan Amendment No. 2007 -005 3. Draft Ordinance approving Planned Community Development Plan Amendment No. 2007 -001 4. Draft ordinance approving Development Agreement Amendment No. 2007 -001 Hoag Master Plan Update April 16, 2008 Page 15 5. Planning Commission staff report dated January 31, 2008 6. Excerpt of minutes from Planning Commission meeting dated January 31, 2008 7. Excerpt of minutes from Planning Commission meeting dated February 7, 2008 8. Planning Commission staff report dated March 6, 2008 9. Excerpt of minutes from Planning Commission meeting dated March 6, 2008 10. Planning Commission staff report dated March 20, 2008 11. Excerpt of minutes from Planning Commission meeting dated March 20, 2008 12. Planning Commission Resolution No. 1752 recommending certification of the SEIR 13. Planning Commission Resolution No. 1753 recommending application approval 14. Hoag Memorial Hospital Presbyterian Planned Community Development Criteria and District Regulations 15. Proposed draft amendment to the Hoag Memorial Hospital Presbyterian Planned Community Development Criteria and District Regulations 16. Development Agreement between Hoag Hospital and the City of Newport Beach 17. Proposed draft amendment of the Development Agreement 18. Letter from Government Solutions dated April 2, 2008 19. Draft Supplemental Environmental Impact Report (Separate — Volume I & II) 20. Responses to Comments received on the SEIR (Separate —Volume III & IV of the SEIR) 21. Additional comment letters and responses 22. Soundwall analysis prepared by Bonterra Consulting 23. Additional correspondence