Chris Bazar Agency Director

Albert Lopez Planning Director

224 West Winton Ave.

Room 111

Hayward California

94544

phone 510.670.5400

fax 510.785.8793

www.acgov.org/cda

ALAMEDA COUNTY COMMUNITY DEVELOPMENT AGENCY PLANNING DEPARTMENT

June 4, 2009 Agenda Item # June 9, 2009

Honorable Board of Supervisors Administration Building 1221 Oak Street, Fifth Floor Oakland, CA 94612 seND READING

ISUBJECT: PETITION OF SUTTER MEDICAL CENTER CASTRO VALLEY, A SUTTER HEALTH AFFILIATE INITIATING CONSIDERATION OF: (I) AN ENVIRONMENTAL IMPACT REPORT; (II) AMENDMENTS TO THE CASTRO VALLEY PLAN; (III) AMENDMENTS TO THE CASTRO VALLEY CENTRAL BUSINESS DISTRICT SPECIFIC PLAN; AND (IV) AN AMENDMENT TO THE ZONING ORDINANCE OF THE COUNTY OF ALAMEDA TO ESTABLISH A PLANNED DEVELOPMENT DISTRICT AND ADOPT A LAND USE AND DEVELOPMENT PLAN; ALL FOR THE PURPOSE OF FACILITATING DEVELOPMENT OF THE SUTTER MEDICAL CENTER, CASTRO VALLEY REPLACEMENT HOSPITAL PROJECT ON THE APPROXIMATELY 18.97 ACRES IDENTIFIED AS FOLLOWS: 20301120055 LAKE CHABOT ROAD, 20081':'20101 LAKE CHABOT ROAD, 19933 AND 19991 LAKE CHABOT ROAD, 20000 STANTON AVENUE, AND 20004 STANTON AVENUE, APPROXIMATELY 1,500 FEET NORTH OF CASTRO VALLEY BOULEVARD, CASTRO VALLEY AREA OF UNINCORPORATED ALAMEDA COUNTY, BEARING ASSESSOR'S PARCEL NUMBERS: 084A-0279-005-10,084A-0279-007, 084A-0279-010­00, 084A-0279-001-01, AND 084A-0279-002 ("PROJECT SITE")

Dear Board Members: . NU·En FROM CrteM 4b \(o~) RECOMMENDATION: CONTlu . .. 1'\11"'''''1\)9 IUe>1 (o~q It is recommended that your Board:

• Receive the staff report and publ ic testimony for the Sutter Medical Center Castro Valley Project (SMCCV Project);

• Consider the full record of proceed ings, including attachments to this letter; and • Approve the SMCCV Project, including:

(i) Adopt a resolution certifying the ElR and adopting CEQA findings (including a statement of overriding considerations and a mitigation monitoring and reporting program);

(ii) Adopt a resolution amending the Castro Valley Plan; (iii) Adopt a resolution and First reading and introduction of an ordinance amending

the Castro Valley Central Business District Specific Plan and set the matter for a second reading on Tuesday, 5/5/09; and

(iv) Adopt a resolution and an ordinance to establish a Planned Development zoning district and a Land Use and Development Plan in connection therewith.

Honorable Board of Supervisors Sutter Medical Center, Castro Valley June 9, 2009 Page 2

SUMMARY/DISCUSSION:

Proj ect Description

The Sutter Medical Center, Castro Valley project ("SMCCV Project") would develop a new acute care hospital to replace the existing hospital on the Eden Medical Center site. The new hospital would total approximately 230,000 square feet and would contain approximately 130 licensed beds in private, single­patient rooms, and an a~ditional 34-station universal care unit. The project would also relocate an existing helistop, construct a new 80,000 sf medical office building with physician offices, out-patient surgery, urgent care clinic and other uses, and would involve the development of related improvements and facilities such as a central utility plant, surface parking, a direct, on-site connection to the existing parking garage, driveways and loading' areas, landscaped areas, and signage. The SMCCV Project will involve demolition of the existing Eden Hospital (after completion of the proposed new hospital), the Laurel Grove Hospital, several small medical office buildings (totaling approximately 19,500 sf), and an adjacent 42-unit apartment building (the Pine Cone Apartments on Stanton Avenue). The existing Eden Hospital would remain operational until completion of the new hospital, at which time it would be demolished and replaced with landscaped surface parking.

The Alquist Hospital Facilities Seismic Safety Act of 1983, as amended by California State Senate Bill 1953 ("SB 1953"), requires the replacement or seismic retrofit of existing acute care facil ities that do not meet current earthquake resistant standards for hospitals prior to the compliance date of January 1,2013. The underlying policy of SB 1953 is that essential hospital facilities should remain operational after an earthquake and be available to provide full acute medical services. The existing Eden Hospital ("Existing Hospital") would need to meet these standards to continue operations as a general acute care hospital facility beyond January 1,2013.

To comply with SB 1953, the SMCCV Project proposes to develop a new state-of-the-art acute care hospital ("New Hospital"). The new hospital will replace the existing hospital prior to the January 1, 2013, compliance date set forth in SB 1953. The SMCCV Project will assure that medical services will continue to be provided, without disruption, by a licensed acute care hospital on the project site. In addition to the new hospital, the SMCCV Project will include a relocated helistop, a new Medical Office Building ("MOB") and other improvements and related facilities on the project site. These facilities are described in detail in the attached materials.

The California Environmental Quality Act ("CEQA") specifies that, when a lead agency determines that a project may have significant environmental impacts, an Environmental Impact Report (EIR) must be prepared. The County prepared an Initial Study that provided notice that the County intended to prepare an EIR for the SMCCV Project, set forth a general outline of the scope of the EIR, and identified issues that were found not to be significant and, therefore, do not warrant further analysis. A Draft EIR ("DEIR") was then prepared to provide the necessary detailed analysis of potential impacts, mitigation measures, and possible alternatives to the SMCCV Project.

Previous Board Action

The Board of Supervisors held a hearing on May 12, 2009 to consider certifying an EIR for, and taking certain action necessary to approve, the SMCCV Project. In the hours leading up to the Board holding the hearing for the SMCCV Project, and during the hearing itself, the Board of Supervisors received a

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Honorable Board of Supervisors Sutter Medical Center, Castro Valley June 9,2009 Page 3

number of comment letters on the proposed project. A few of the comment letters made numerous, detailed comments arguing that the EIR was deficient.

At the conclusion of the hearing, Supervisor Nate Miley made the following motion: "In order to allow County staff-more time to review and comprehensively respond to the comments received in the last few days regarding the perceived link between the proposed project and San Leandro Hospital, I move that we continue this item to June 9, 2009 and ask staff to review the late comments and prepare an additional document analyzing any physical impacts to the environment emanating from the potential closure of San Leandro Hospital." Supervisor Miley added that, in making the motion, "I note that the County is not conceding that these physical impacts must be analyzed as part of the Proposed Project's EIR." The Board adopted this motion and continued the matter to its June 9 calendar.

To respond to this request, a document entitled "Responses to Late Comments on the EIR" has been prepared. Section 15088 of the CEQA Guidelines provides, in part, that "[a] Lead Agency shall respond to comments received during the noticed comment period ... and may respond to late comments." The combination of the Draft EIR, the Responses to Comments on the Draft EIR, and the Responses to Late Comments on the EIR comprise a Final EIR that provides the County and the public with a complete set of reports on the SMCCV Pr~ject's impacts and on the public's concerns, including those provided in comments that were received after the close of the public comment period.

Section 15088.5 of the CEQA Guidelines requires a lead agency to "recirculate an EIR when significant new information is added to the EJR after public notice is given of the availability of the Draft HR...New information added to an EIR is not 'significant' unless the EIR is changed in a way that deprives the public of a meaningful opportunity to comment upon a substantial adverse environmental effect of the project..." The Section goes on to state that "Recirculation is not required where the new information added to the EIR merely clarifies or amplifies or makes insignificant modifications in an adequate ErR". As summarized below and described in detail in "Responses to Late Comments on the EIR", no new adverse environmental effects as a result of the SMCCV Project have been found. Therefore, Planning staff and the Office of County Counsel have concluded that recirculation is not required.

Responses to Late Comments

This letter provides a summary of the major conclusions of the "Responses to Late Comments on the EIR" document (attached). The following points summarize the County's position on the key issues raised in these comments:

Project Description/San Leandro Hospital

Commentors claim that San Leandro Hospital's future uses should be included in the project description for the SMCCV hospital replacement project. CEQA requires the project description to include all aspects of a proposed project that are a foreseeable consequence of the primary project. As explained in greater detail in the responses, the SMCCV Project and any future changes at San Leandro Hospital are separate actions with separate decision-making processes. There is no evidence in the record indicating that the reconstruction of the Castro Valley facility will necessarily lead to a certain outcome for San Leandro Hospital. As such, an evaluation of San Leandro Hospital does not need to be part of the project description. In an effort to provide as much information as possible, however, the Responses described the impacts that wou Id arise from a "worst case" scenario - the closure of San Leandro Hospital. The Responses conclude that there would be no significant impacts.

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Honorable Board of Supervisors Sutter Medical Center, Castro Valley June 9,2009 Page 4

Physical Impacts Associated with Sal1 Leandro Hospital

Because the EIR appropriately concludes that San Leandro Hospital is not part of the proposed project, the ErR does not need to analyze any physical impacts arising from changes to San Leandro Hospital. Nonetheless, the Responses analyze whether there would be any physical impacts and conclude that there is no evidence in the record that those possible future changes will involve a physical change in the environment.

Impact 011 Public Service!~/Health Care Services

A number of comments raised concerns about the impact of a potential closure of San Leandro Hospital on health care services provided in Alameda County. While a number of these comments are outside the required scope of a CEQA ErR, two analyses (summarized in the Response) have been conducted regarding the adequacy of capacity at hospitals and emergency departments in the area, and their ability to handle increased volumes if San Leandro Hospital closes. Both analyses conclude that there will be adequate hospital and emergency beds if San Leandro Hospital were to close.

Specifically, Sutter's analysis concluded there would be a supply/demand surplus of 25 acute care beds in the District and 167 beds in Oakland/Berkeley. For emergency beds, the supply/demand analysis indicates that there is sufficient emergency room capacity at Oakland/Berkeley hospitals to accommodate the 40% Oakland urgent/emergent visits currently treated at San Leandro Hospital. It also indicates that the remaining urgent/emergent San Leandro Hospital visits can be accommodated at hospitals within the Eden District.

Cumulative Environmental Effects/San Leandro Hospital

The CEQA Guidelines define cumulative impacts as "two or more individual effects which, when considered together, are considerable or which compound or increase other environmental impacts." (CEQA Guidelines § 15355). The uncertainty surrounding the nature and scope of possible future changes at San Leandro I-Iospital makes it difficult to provide meaningful analysis regarding the cumulative impacts of any particular changes that might occur. Nevertheless, the Response examines the worst-case scenario, i.e. complete closure of emergency and acute care services at San Leandro Hospital, and concludes that additional impacts would not, when considered together with the SMCCV Project, result in any significant effect on the environment.

Cumulative Social and Economic Impacts:

As discussed above, because changes to San Leandro Hospital are not part of the proposed project, any social and economic impacts arising from future changes at San Leandro Hospital are not relevant to the CEQA analysis of the SMCCV Project. Since CEQA does not generally require the analysis of a project's social and economic impacts (except to the extent that they may result in physical changes to the environment) CEQA does not require the analysis of generalized social and economic impacts. Nonetheless, the Responses document does evaluate the "worst case" physical impacts of a San Leandro Hospital closure, as described above.

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Honorable Board of Supervisors Sutter Medical Center, Castro Valley June 9,2009 Page 5

CONCLUSION

In summary, the documents before you today, which constitute the Final EIR for this project, comply with all CEQA requirements and provide you with a basis to proceed with the proposed project. By requiring the preparation of the Responses, the County has met and exceeded CEQA's requirement of providing a complete analysis of all physical impacts to the environment.

Sincerely,

Chris Bazar Director, Community Development Agency

cc: Applicant Susan Muranishi, CAO Dave Kears, HCSA Office ofthe County Counsel Planning Commission Castro Valley Municipal Advisory Council

Attachments

5

ORDINANCE NO. 0-2009-23

AN ORDINANCE AMENDING THE CASTRO VALLEY CENTRAL BUSINESS DISTRICT SPECIFIC PLAN TO ADD

PROPERTY AT 20000 AND 20004 STANTON AVENUE TO SUB-AREA 4: HOSPITAL / MEDICAL-ORIENTED OFFICE AND RETAIL AND TO MAKE

CERTAIN OTHER AMENDMENTS TO THE POLICIES, GOALS AND LAND USE CONTROLS THEREOF

WHEREAS the Board of Supervisors of the County of Alameda, State of California, did adopt Resolution No. R-2009-227 on June 9, 2009, which resolution certified an Environmental Impact Report prepared for the Sutter Medical Center, Castro Valley Replacement Hospital Project, made certain findings related to the environmental review of the SMCCV Project, and adopted a statement ofoverriding considerations and a Mitigation Monitoring and Reporting Program, all in accordance with the requirements of the California Environmental Quality Act; and

WHEREAS Resolution No. R-2009-227 is hereby incorporated as if fully set forth herein; and

WHEREAS the Board of Supervisors did adopt Resolution No. R- 2009 - 2 2 9 on April 28, 2009, which resolution made certain findings, declarations and other statements in support of the amendments to the Castro Valley Central Business District Specific Plan set forth below; and

WHEREAS Resolution No. R-2009-229 is hereby incorporated as if fully set forth herein.

NOW THEREFORE the Board of Supervisors of the County of Alameda, State of California do ordain as follows:

SECTION I

The Castro Valley Central Business District Specific Plan'is hereby amended in the following manner:

Property described as 20000 Stanton Avenue and 20004 Stanton Avenue, approximately 1,500 feet north of Castro Valley Boulevard, Castro Valley area of unincorporated Alameda County, bearing Assessor's Parcel . Numbers 084A-0279-001-01 and 084A-0279-002 (the "Property") is hereby added to Sub-Area 4 of the Castro Valley Central Business District Specific Plan.

A map of the Property described above is attached hereto as Exhibit A, which Exhibit is incorporated by reference as if fully set forth herein.

08080.013. 1072820v7

SECTION II

The Castro Valley Central Business District Specific Plan is hereby amended to add "Figure lOA" immediately after the existing "Figure 10" on page 50. "Figure lOA" is attached hereto as Exhibit B, which Exhibit is incorporated by reference as if fully set forth herein.

SECTION III

The first paragraph on page 51 of the Castro Valley Central Business District Specific Plan is hereby amended to read as follows (changes are denoted in underline and strikethrough):

The dominant land use in the subarea is Eden Hhospital. Much of the rest of the area is developed with medical offices. There is some high density residential development. There are two small retail centers which are primarily oriented to the hospital or convenience commercial. By virtue of the hospital, this is the one area of Castro Valley with regional import. Except for the portion south of the Eden Hhospital, 8.09 acres in nineteen parcels, the area was not included in the 1983 Specific Plan. This area, 23.00 acres in twenty parcels, was zoned eitherC­o (Administrative Office) or R-S-D-15 (Suburban Residence, 1,500 square feet m.b.s.a per dwelling unit). For the purpose of this Plan, the term "Lake Chabot Road Hospital Campus" means the approximately 18.97 acres within Subarea 4 depicted on the Map attached hereto as Figure lOA, Lake Chabot Road Hospital Campus.

SECTION IV

The fourth paragraph on page 51 of the Castro Valley Central Business District Specific Plan is hereby amended to read as follows (changes are denoted in underline and strikethrough) :

Development Objectives: Development in this subarea shall be oriented toward the existing concentration of medical and related facilities or adjacent high density residential development, including development of hospital, medical office and related uses and facilities on the Lake Chabot Road Hospital Campus. Businesses and services which would benefit from proximity to the medical facilities such as medical offices, medicallaboratories.Lef congregate care facilities and other medical-related or complementary uses described below, and businesses which can draw clientele from hospital businesses are specifically encouraged. Development must reflect its location on a major community thoroughfare.

SECTION V

08080.013.1072820v7 2

The fifth paragraph on page 51 of the Castro Valley Central Business District Specific Plan is hereby amended to read as follows (changes are denoted in underline):

Allowed Uses: Type C2 Offices, particularly medical and dental; hospitals, and Land Use Group D (High Density Residential) uses are allowed throughout the subarea. Other commercial and related uses which support either the medical or residential aspect of the area are allowed and encouraged. Full Service Restaurants and Food Service Outlets, medical or dental laboratories, ambulance services, pharmacies, and flower and gift shops are specifically allowed. Other uses allowed on the Lake Chabot Road Hospital Campus include, without limitation, administrative offices, physicians' offices, medical clinics, medical and dental laboratories, diagnostics/imaging, out-patient surgery, emergency services, helistop, ambulance services, pharmacies, other employee, patient and visitor amenities (such as a cafeteria, restaurant. cafe, flower and gift shop, etc.), and related improvements and facilities supporting operation of a modem, integrated medical center, including a central utility plant, on and off-site adjacent parking and parking garage ("LCRHC Permitted Uses"). Except as provided above, Land Use Group A (Intensive Retail Commercial) and Land Use Group B (Low Volume, Predominantly Motor Vehicle-Oriented Retail and Service Commercial, Wholesale Commercial and Industrial) are prohibited in the subarea.

SECTION VI

The sixth paragraph on page 51 of the Castro Valley Central Business District Specific Plan is hereby amended to read as follows (changes are denoted in underline):

Design Policies: Development in this subarea is generally auto-oriented, and individual developments are allowed. Parking should be located to the rear of buildings to the extent possible; where this is not possible, parking should be screened from the street through landscaping. Special attention must be given to the subarea's location along a major community thoroughfare. The building and development standards for development on the Lake Chabot Road Hospital Campus for the LCRHC Permitted Uses shall be controlled by a land use and development plan adopted pursuant to a Planned Development zoning district established in accordance with Chapter 17.18 of the Zoning Ordinance. To the extent of any conflict with standards, policies, or design guidelines in this Plan or the Zoning Ordinance, the standards adopted in the land use and development plan for such Planned Development district shall control. Site Development Review shall not be required for development pursuant to a land use and development plan adopted in connection with a Planned Development zoning district established for the Chabot Road Hospital Campus.

08080.013.1 072820v7 3

SECTION VII

The first paragraph on page 85 of the Castro Valley Central Business District Specific Plan is hereby amended to read as follows (changes are denoted in underline and strikethrough):

b. Impacts on Adjacent Development. The goals of this Plan include hospital and medical office development and related parking, uses and other facilities on the Lake Chabot Road Hospital Campus. The building and development standards and controls for the Lake Chabot Road Hospital Campus shall be set forth in a land use and development plan adopted in connection with a Planned Development zoning district established for the Lake Chabot Road Hospital Campus. Reasonable protection of adjacent and other nearby properties from development on the Lake Chabot Road Hospital Campus and LCRHC Permitted Uses shall be considered in connection with the adoption of a land use and development plan and shall not be subject to the separate performance standards in Section 17.42.020 ofthe Zoning Ordinance or Section 6.60 of the Alameda County General Ordinance Code. Where commercial development is proposed for a-any other property which abuts property planned or zoned for residential development there shall be ample buffering to protect the existing or future residential development from impacts of the commercial use, including but not limited to noise, dust, vibration, lighting, etc., such that these shall not exceed reasonably acceptable levels at the property line. This protection shall be ensured through Site Development Review or other procedures, and may include yards, landscaping, limits on hours of operation, stepping or locating buildings away from the property line, or other such measures. Where high density residential development abuts areas planned or zoned for low density residential development, or, as in Subarea 11, which are planned for high density but which are still in low density residential development, buffering shall be required commensurate with the likelihood of future high density development on the adjacent property. Buffering may also be required between commercial uses, where appropriate. No development shall be approved which has noise, light, or other similar impacts on adjacent or nearby residential or commercial development which cannot be conditioned or modified to reasonably acceptable levels. Land uses existing at the time of adoption of this plan which do not meet these policies are Nonconforming Uses.

[ORDINANCE CONTINUES ON FOLLOWING PAGE]

08080.013.1072820v7 4

SECTION VIn

This Ordinance shall take effect and be in force thirty (30) days from and after the date of its passage and before the expiration of fifteen (15) days after its passage it shall be published once with the names of the members voting for and against the same in THE INTER-CITY EXPRESS, a newspaper published in the said County of Alameda.

Introduced the 9th day of June, 2009.

Adopted by the Board of Supervisors of the County of Alameda, State of California, on June 30, 2009, by the following called vote:

AYES: NOES: EXCUSED:

President of the Board of Supervisors of the County of Alameda, State of California

ATTEST: CRYSTAL H. GRAFF, Clerk of the Board of Supervisors of the County of Alameda, State of California

Approved as to form, RICHARD E. WINNIE County Counsel

0-2009-23 Agenda 06/30109 Item File 24645

08080.013.1072820v7 5

EXHIBIT A

MAP OF PROPERTY DESIGNATED "OFFICE AND MEDICAL OFFICE COMMERCIAL"

08080.013.1072820v7 6

EXHIBIT B

FIGURE lOA - LAKE CHABOT ROAD HOSPITAL CAMPUS

08080.013.1 072820v7 7