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HomeMy WebLinkAbout17 - Hoag Correspondence - Hoag CorrespondenceHO A �` One Hoag Drive PO 265 -610 H Newport H0A (492658 -6100 HIMPRAL 9491 hoaghoAG l.org 1 www.hoaghospital.org March 27, 2009 Mr. Jim Campbell Senior Planner City of Newport Beach 3300 Newport Boulevard Newport Beach, CA 92658 -8915 RE: Hoag Hospital— Development Agreement Annual Review Dear Mr. Campbell: Please find attached the required documentation to demonstrate Hoag's compliance with the Development Agreement between Hoag Hospital and the City of Newport Beach. As you are aware, this Development Agreement was adopted by the City Council on April 22, 2008 by Ordinance No. 2008 -10 and is known as the Amendment to Restated Development Agreement No. S. • Per Section 5.2 of the Development Agreement, "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. Annual reviews should be scheduled in April of each year." It is our understanding based on discussions with city staff, that we will be scheduled for the April 28`h City Council hearing, per the above noted requirement. • The enclosed Project Status Update is for the period of time from April 30, 2008 through March 31, 2009. Sincerely, Mr. Sanford Senior Vice President Real Estate and Facilities Enclosure A NOT - FOR - PROFIT COMMUNITY HOSPITAL ACCREDITED BY THE JO1N7 COMMISSION ON ACCREDITATIDN OF HEALTHCARE ORGANIZATIONS Project Status Report . April 30, 2008 through March 31, 2009 Annual Review of the Development Agreement Between the City of Newport Beach And Hoag Memorial Hospital Presbyterian Introduction & Overview On April 22, 2008, the City of Newport Beach approved an amended Development Agreement for Hoag Hospital which is known as the "Amendment to the Restated Development Agreement No. 5 ". This Development Agreement was adopted by Ordinance No. 2008 -10 on May 13, 2008. Per Section 5.2 of the Development Agreement: "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. Annual Reviews should be scheduled in April of each year." This Amended Development Agreement was part of Hoag's Master Plan Update which included revised Development Agreement requirements, a revised Planned Community Text and associated requirements, and the Supplemental Environmental Impact Report • with mitigation measures. The Supplemental Environmental Impact Report (SCH No. 1991071003) was certified and adopted by Resolution No. 2008 -27. As part of the EIR adoption, a Mitigation Monitoring & Reporting Program was provided which shall be utilized as the basis for the Development Agreement Updates as it relates to mitigation measures. For the purposes of this Development Agreement update, and those subsequent annual updates, this update shall serve as the First Annual Review for the Amendment to the Restated Development Agreement No 5. Project Status for the First Development Agreement Annual Review As will be described in detail below, over the last year, Hoag has made a diligent, good faith effort to complete as many of the mitigation measures and associated requirements of both the Development Agreement & Planned Community Text as required in this timeframe. It should be noted however, that many of the projects anticipated in Hoag's development goals have been dramatically altered by the current nationwide economic crisis. While Hoag's operations continues to be strong, however the losses incurred in its investment portfolio have created the need for Hoag to move more cautiously in incurring new construction and building costs. The result of this has been very little new • construction on Hoag's campus over the last year and all significant capital projects being put on hold including the expansion of the Emergency Department on the Upper Campus. In addition, the anticipated South Tower, which was the motivation for the allowable square footage transfer from the Lower Campus to the Upper Campus in the Development Agreement Amendment, has been cancelled. Given these factors, several of the improvements associated with the loading dock reconfiguration which were planned to facilitate and coordinate with the ultimate construction of the South Tower are no longer necessary nor are they feasible at this time. Development Agreement Specific Terms & Obligations In terms of Hoag's obligation to pursue the California Coastal Commission's approval for the Master Plan Development Agreement, we are pleased to note that Hoag received unanimous approval from the Coastal Commission on February 5, 2009. For your reference, we've attached the letter from the Coastal Commission which verifies the approval. (Attachment 1) In terms of the stand alone Development Agreement requirements (not found in either Mitigation Measures or PC Requirements), the following has been completed: 11. Section 5.4 • "5.4 Mitigation Review. The annual review shall include a detailed report of compliance with the various conditions and mitigation measures contained with the mitigation monitoring plan. The report shall also include a noise regulation compliance assessment that includes noise measurements prepared by a qualified noise consultant on a yearly basis. The noise assessment shall identify noise regulation compliance issues and recommended measures to abate any noncompliance. The report shall include an analysis of the view impacts of buildings constructed in comparison to the anticipated views depicted in the EIR. Hoag shall be found in compliance with this Agreement unless the City Council determines, based upon evidence presented at the Annual Review, that Hoag has not complied with all mitigation measures and conditions including those imposed as a result of subsequent environmental analysis, applicable to the grading of, or building on, the Property as of the date of the Annual Review. Hoag shall pay the City administrative costs incurred in conducting Annual Reviews. Hoag shall reimburse the City for costs incurred by the City associated with Fluor Enterprises' review of the cogeneration plant during the 2008 Annual Review." Hoag has complied with this section of the Development Agreement with the submittal of this detailed report which demonstrates compliance with the various conditions and mitigation measures contained within the mitigation monitoring plan, as noted below. Additionally, Hoag has complied with noise regulation compliance assessment. The • noise analysis was performed by RS Acoustics on March 11, 2009. The full report is attached for your reference. (Attachment 2) No view analysis was necessary in this review, as no new construction has occurred on the campus during this timeframe. The Fluor reimbursement was paid by Hoag as identified in the attached paper work. (Attachment 3) 13. Section 8.2 --Exactions "(d)... Hoag shall pay to the City Development Fee of Three Million Dollars ($3,000,000). Payment of one -half of the Development Agreement Fee of 1.5 Million shall be made upon the Effective Date of this Agreement". As noted in the attached letter from Dennis Danner, the City's Administrative Services Director, Hoag paid the required 1.5 million dollar Development Agreement Fee to the city on July 7, 2008 thus fulfilling its obligation for this year's annual review. (Attachment 4) 14. New Section 8.3 Sales /Use Tax Origin (a) Hoag will include in its general contractor construction contract a provision • that Hoag's general contractor and subcontractors, to the extent allowed by applicable law, will obtain a Board of Equalization sales /use tax subpermit for the jobsite at the Project Property and allocate all eligible sales and use tax payments for individual contracts over $5 million to the City -see attached Development Agreement for complete section ( a). (b) Hoag will continue to follow the Direct Permit Process established in the Revenue and Taxation Code and use the permit for all qualifying individual purchases in excess of $100,000 so that the local share of its sales /use tax payments is allocated to the City as the point of sale. With reference to requirement (a) as noted in the attached Master Services Agreement between Owner (Hoag) and Contractor, Hoag has amended its contracts in section 4.16 "Development Agreement- Sales Use Tax Origin" with the following language: "General contractors and sub - contractors are to contact the City of Newport Beach regarding any Board of Equalization sales /use tax sub permit(s) for the jobsite exceeding $5 million, as per the current adopted Development Agreement. The Hoag project manager can provide the City Revenue Manager's contact information" With reference to requirement (b) as noted in the attached letter from Hoag to Phillips Medical Systems (vendor), Hoag has obtained from the California State Board of • Equalization, a Use Tax Direct Payment Permit. (Attachment 5) • 15. New Section 8.4 — Sunset View Park Improvements "8.4 Hoag shall reimburse the City up to $150,000 for installation of groundcover, shrubs, and irrigation systems with the unimproved portion of Sunset View Park and Superior Avenue, approximately 20,500 sq ft in area, located northerly of the cogeneration building. Reimbursement to the City shall be within 30 days of Hoag receiving an invoice from the City." The City has not moved forward with this project during this time period, and therefore has not requested a reimbursement for park improvements from Hoag. 16. New Section 8.5 — Coeeneration Plant Energy Curtailment "85 Hoag shall install a weather station capable of identifying ambient conditions necessary in documenting cogeneration plant and cooling tower operations. The weather station shall be tied into the cogeneration plant controls in order to maximize automatic responses to prevailing weather conditions, assisting in managing the operation changes and load shifting, as well as to provide periodic reports on plant operations. Hoag shall not construct or erect additional cooling towers within the Hoag Lower Campus. • Hoag shall reduce the effective heat rejection by 33% at the existing cooling towers and such reduction shall be measured from a baseline (to be measured at the cooling towers) of operating three existing generators and absorption chiller at 100% of design capacity. This reduced capacity operation shall be implemented daily between November 1� and April 30th, between the hours of 7:00 AM and 7:00 PM when the relative humidity is equal to or less than 55 degrees Fahrenheit" Per the attached memo dated March 20, 2009, and photos of the Weather Station, Hoag has successfully installed the Weather Station and the Energy Management Control System meeting the DA requirements. The report states that the installation of the instruments and software in support of the Cooling Tower Plume Mitigation efforts were installed over the summer of 2008 by Syska Hennessy Group Construction. The automated weather station monitors and trends local weather conditions including temperature, humidity, rainfall, wind speed and direction. It is interesting to note that the weather station is solar powered and requires no electricity thereby making it carbon neutral. Weather conditions and data are monitored via a control and data acquisition computer • system located on the Hospital Campus. Operators are noted 24/7 of pending weather conditions that may cause a plume to form. Upon notification, operators manually shed load from the cooling tower by a combination of reducing load /or turning off equipment . serving the Hospital. A load reduction of 33% has been achieved which translates into a similar reduction in plume density and size of approximate 33 %. The daily monitoring reports demonstrate the monitoring efforts are occurring and are on -going as required. (Attachment 6) Mitigation Measures and PC Text Requirements (Attachment 7) In that no new major construction has occurred over the last year, Hoag's focus has been to fulfill the requirements that were oriented to noise and aesthetics and that were required to be completed or are in progress in this annual review's time period. For your reference, the relevant mitigation measures and PC Text requirements are attached in the order they are addressed below. Mitigation Measure 3.4 -9 Cogeneration Plant Noise Hoag has complied with this requirement and has performed noise analysis for the fourth cooling tower as required. The noise analysis was performed by RS Acoustics on March 11, 2009. The full report is attached for your reference. Based on this analysis, Hoag is in conformance with the noise standards. (Attachment 2) Noise —West Hoag Drive . Mitigation Measure: PDF 3.4 -1— Villa Balboa Window Installation Hoag has fulfilled its obligation for this mitigation measure with submitting a bid by a qualified window vendor, American Vision Windows, Inc. to the City for the window installation. The bids were submitted to the City in January and are attached for your reference. Once the City accepts the bid that has been provided, Hoag will fulfill its obligation to fund the window construction by submitting a check for approximately $325,000 (Three Hundred, Twenty Five Thousand Dollars) to the City to be placed in an escrow account for Villa Balboa HOA's use in managing the installation of the windows in the Villa Balboa units identified in the mitigation measure. (Attachment 8) It should be noted, that attached to the window bids, is a memorandum from Fred Greve in which he states that the windows identified in the bids provided by Hoag "clearly exceed the requirements of the mitigation measure ". Mitigation Measure: PDF 3.4 -2 — Sound Wall Hoag has made a good faith effort to comply with this measure and plans for the sound wall were completed and submitted to the city of Newport Beach on January 14, 2009 (Plan Check Number 0054- 2009). The sound wall plans are still being processed by the City and Hoag. Hoag is currently making revisions and will submit for second plan check the week of March 30, 2009. It is currently anticipated that final plan check should be completed in the next 30 -45 days. For your reference, copies of the plan check records • have been attached. (Attachment 9) • Additionally, both the city of Newport Beach and Hoag representatives have met with Villa Balboa, as required, to review the landscape plans associated with the sound wall construction. All requirements have been met in that regard. Hoag and the City should finalize the Sound Wall Agreement within the next 30-45 days. (Attachment 9. A) Once final building permits have been issued, commencement of the sound wall construction is anticipated to occur within 30-45 days. Mitigation Measure: 119 — Restriction of operation of trash compactor to between 7:00 AM and 7:00 PM. This mitigation measure has been complied with and Hoag has made the appropriate notification to employees regarding the restriction of hours. Mitigation Measures 3.4- 2/3.4 -3 Heating. Ventilation and Air Conditioning for Ancillary Building and West Tower. Hoag has proceeded in good faith to complete the requirements of these mitigation measures in the following manner. The West Tower sound louvers were installed on January 9, 2009 and were sound tested in February and met noise standards. The Ancillary Building roof top sound wall was completed in August, 2008. The plans for the • relocation of the kitchen exhaust equipment into a mechanical enclosure for the Ancillary Building are completed and were submitted to OSHPOD on August 22, 2008 and permits were received on March 17, 2009. (The OSHPOD plan check receipt is attached for your reference.) Work will commence within the next 60 days. Once this work is complete, all mechanical equipment will meet the noise standards and be in conformance. (Attachment 10) Mitigation Measure 3.4 -4 Truck Deliveries to loading dock be restricted to 7:00 AM to 8:00 PM This mitigation measure has been fulfilled and compiled with as noted in the attached photos of signage posted along West Road. (Attachment 11) Mitigation Measure 3.4 -5 — Loading Dock Sound Absorption Panels The cancellation of the South Tower project, including the reconfiguration of the loading dock, maintains the walls of the loading dock in its current location. This combined with the changes to the trash compactor (see 3.4 -5) will make this improvement unnecessary to meet the sound requirements. Mitigation Measure 3.4 -6 — Relocation of the Trash Compactor The cancellation of the South Tower project, including the reconfiguration of the loading dock, prohibits the relocation of the trash compactor. 0 Mitigation Measure 3.4 -7 "No Idline" signs shall be posted. This mitigation measure has been complied with as noted in the attached photos of signage on West Road prohibiting truck idling. (Attachment 12) Mitigation Measure 3.4 -8 Grease trap cleaning operations shall be limited to Saturday between the hours of 11:00 AM and 3:00 PM. This mitigation measure has been complied with as Hoag only performs grease trap cleaning on Saturdays between the hours of 11:00 AM and 3:00 PM. Planned Community Requirements— Landscaping Lower Campus (Exhibit #6) Area 3 Co -Gen Green Screen Lattice Hoag has proceeded in good faith and has received all approvals required to construct the Co -Gen Green Screen Lattice. Attached are the approvals received from OSHPOD. As all permits are now in hand, construction will commence immediately. (Attachment 13) . Area 7a —West Parking Area Islands Requirement: 60 days after CDP issuance at Coastal Commission. Hoag has made a good faith effort to be in compliance with this measure and has applied for Coastal Commission approval. As noted in the attached Coastal Commission agenda, this item is on the Consent Calendar for the Commission's hearing on April 8", 2009. (Attachment 14) Area 9 — North Slope above Retaining Wall Requirement: 120 days after CDP Issued by Coastal Commission. Hoag has made a good faith effort to be in compliance with this measure and has applied for Coastal Commission approval. As noted in the attached Coastal Commission agenda, this item is on the Consent Calendar for the Commission's hearing on April 8`", 2009. (Attachment 14) Area 12 PCH Green Screen Requirement: Immediately upon issuance of an Approval in Concept by the City an application shall be submitted for said improvements to the Coastal Commission. Construction of said improvements shall be completed no later than 18 months after is Coastal Development Permit Issuance by the Coastal Commission. • Hoag has made a good faith effort to be in compliance with this measure and has applied for Coastal Commission approval. As noted in the attached Coastal Commission agenda, this item is on the Consent Calendar for the Commission's hearing on April 8th 2009. (Attachment 14) • 1 Its ;:T A TER AG VA e. , , RECEIVED 20 APR 24 PH Z 32 VILLA BALBOA HOAG LIAISON COMM TTEEOFFICE OF THE CITY CLERK CITY OF N WORT FAH DATE: April 24, 2009 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL Edward D. Selich Michael F. Henn Steven Rosansky Don Webb Leslie Daigle Nancy Gardner Keith D. Curry FROM: Villa Balboa Hoag Liaison Committee L. R. Runyon Erik Thurnher Nancy Knight Gloria Quirk Sam Stameson SUBJECT: Hoag Memorial Hospital Presbyterian Development Agreement Annual Compliance Review City Council Agenda Item #17, City Council Meeting April 28, 2009 We the members of the Villa Balboa Hoag Liaison Committee hereby request that the above cited agenda matter be continued for a period of no less than 30 days in order for the Villa Balboa Hoag Liaison Committee to have sufficient time to provide significant additional information to the members of the Council to enable the Council to make a reasoned decision regarding Hoag's good faith compliance with the Development Agreement after giving full consideration to the community's input regarding this matter. This course of action (continuance) is offered by the staff of the Planning Department. (See page six, Staff Report: ALTERNATIVES — "The City Council can continue this item should additional information be necessary. ") The multiple lengthy number of documents included with this agenda item (in excess of 300 pages) could not possibly b�t reviewed, digested and analyzed in detail in a matter of two days, from Wednesday, April 22, the date the agenda and accompanying documents were posted on the city's website, through Friday, April 24, the date at which the Committee's review must be made available to members of the Council for their timely and comprehensive review in preparation for the April 28 hearing date. This matter is of significant importance to the greater Newport Beach Community and simply cannot be adequately addressed by the Planning Department or the Council without ample time being granted to the community to digest the large number of documents and prepare a detailed response. We respectfully request that the Council continue its hearing on this matter for a period of no less than 30 days. Thank you for your consideration of this request. i Nancy Wight 9, .N �A Globs Quirk —)--,� Sam Stameson C: Michele A. Staples Jackson, DeMarco, Tidus & Peckenpaugh