Loading...
HomeMy WebLinkAbout04/16/2008 - Adjourned Regular MeetingCITY OF NEWPORT BEACH City Council Minutes Adjourned Regular Meeting April 16, 2008 — 7:00 p.m, I. RECONVENE AT 7 :00_P.M. FOR AN ADJOURNED REGULAR MEETING H. ROLL CALL Present; Council Member Henn, Mayor Pro Tem Daigle, Mayor Selich, Council Member Webb, Council Member Gardner Excused; Council Member Rosansky, Council Member Curry III. PLEDGE OF ALLEGIANCE - Council Member Gardner IV. PUBLIC HEARINGS 1. HOAG MEMORIAL HOSPITAL PRESBYTERIAN DEVELOPMENT AGREEMENT COMPLIANCE REVIEW. 2. HOAG MEMORIAL HOSPITAL PRESBYTERIAN MASTER PLAN UPDATE (PA2007- 073), ONE HOAG DRIVE - CERTIFICATION OF FINAL SUPPLEMENTAL ENVIRONMENT IMPACT REPORT; GENERAL PLAN AMENDMENT NO. 2007 -005; PLANNED COMMUNITY DEVELOPMENT PLAN AMENDMENT NO. 2007 -001; AND DEVELOPMENT AGREEMENT AMENDMENT NO. 2007 -001. Mayor Selich indicated that both public hearings will conducted at the same time. Without objection, he reviewed the procedures for conducting the public hearing. Council Member Rosansky arrived at 7:05 p.m. Senior Planner Campbell reviewed the history of the Development Agreement (DA) and provisions in the current DA. He reported that it was determined in 1996 that improvements to the Semeniuk Slough were infeasible, but the visual impacts of all the projects have been built within and in compliance with the Planned Community Text (PC Text). He reviewed the compliance review components and indicated that there are some non - compliance issues related to noise, lower campus lighting, a modular unit on the parking structure, tree heights, a cable rail fence, aesthetics, and the cogeneration building. He discussed how Hoag is in the process of remedying some of the issues, but the cable rail fence was erected for safety reasons. He stated that staff and Hoag have come up with methods to mitigate the plumes from the cogeneration plant. Council Member Curry arrived at 7:20 p.m. Richard Mathers, Advanced Graphic Images, displayed 3 -D view simulations of the upper and lower campuses, and the development zones for the buildings. Senior Planner Campbell reported that the buildings, parking structure, and cogeneration plant are lower than the allowable envelopes. He stated that Hoag has substantially complied in good faith with the elements of the DA. He described where the plumes were coming from and stated that the issue is visibility from the bluffs. He reported that the City has the obligation to do an analysis to ensure that the project complies with the 1991 EIR; however, Hoag has the right to operate its facilities. Volume 58 - Page 449 City of Newport Beach City Council Minutes April 16, 2008 John Pearson, CDM Associates, indicated that they conducted research on cooling tower plumes and determined that Hoag's procedures follow the described methodology as prescribed by the Center for Disease Control (CDC) and that other researchers believe that portable water, not cooling tower water, cause Legionnaires Disease. He stated that it is his professional opinion that Legionnaires Disease from the Hoag cooling towers is below a significance level. He reported that Hoag monitors the water daily and discussed how Hoag would treat the system if there were a problem. Senior Planner Campbell reported that they have been working with Fluor on mitigation measures to reduce the plumes and reviewed the options: Options 1 and 2 are operational adjustments, but implementation costs are unknown; Option 3 -A reduces the plume 30% for $6 million; and Option 3 -1 reduces the plume 75% for $8 to $9 million. He noted that Hoag does not support Options 3 -A or 3 -1. Senior Planner Campbell stated that the Master Plan Update is the PC Text. He reported that Hoag would like to transfer 225,000 sf from the lower campus to the upper campus, would like a comprehensive update to reflect the modified building program with additional public benefits, and would like changes to some standards and definitions. He reviewed the proposed change to the General Plan Amendment table and the request by Hoag to change the noise standard during the day from 55 dBA to 65 dBA. He emphasized that building height and setback requirements will not change. He discussed the soundwall proposal, increased landscaping, and Hoag's proposal to upgrade windows and doors in certain condominiums at Villa Balboa. He noted that Hoag accepts the recommendation to amend the planned community standards tonight to eliminate the references to a green screenwall, but replace it by adding three different exhibits to the PC Text and a provision that Hoag implement the landscaping matrix by 2009. He displayed a noise mitigation slide. He reported that Bonterra Consulting prepared the EIR and reviewed their conclusion regarding impacts to land use, noise, and air quality. He discussed the recommendations, indicated that there has not been dissention relative to the merits of the application to transfer square footage, noted that additional benefits to the public are included in the proposal, and staff recommends approval of the project. In response to Council questions, Senior Planner Campbell speculated that, in 1991, staff did not know about the plume issue or that these issues would arise and this is why Hoag is technically not in violation of the DA. He indicated that the buildings are within the allowable envelopes and that landscaping also has to be within the building height in order to preserve views. He reported that the Planning Commission added a provision in the PC Text that requires subsequent analysis of any projects they bring forward. This is also required by CEQA. He confirmed that language can be drafted in the PC Text or DA prohibiting plumes or opaque gaseous substances to exceed the height envelope. He reported that it is being proposed that the noise standard be the same everywhere at Hoag, except for the loading dock. Regarding the cogeneration plant, he reported that it was completed in 2006, three cells were operational two winters ago, and four cells were operational last winter- Regarding the plumes, he stated that no complaints arose prior to the application process, the Recreation Department does not have a concern at Sunset Ridge Park, and that the plume is hard to measure but the inputs to the system and amount of evaporation can be measured. He indicated that he is unsure if the cogeneration energy would still be efficient if plume abatement mitigation measures were implemented. Council Member Henn asked if an additional EIR was required at the time the cogeneration plant permit was processed. City Attorney Clauson reported that an additional environmental analysis was indicated in the mitigation measures at the time the permit was being processed; however, it was not specified whether it should be an EIR. She indicated that a study should have been conducted to determine if an additional environmental document was necessary. She indicated that staff was presented with a cogeneration plant study without knowledge of the plume, but no determination was made to do any further analysis. She reported that all permits were validly issued on the basis of the approval in concept that was done without additional environmental review. Senior Planner Campbell discussed where the additional facility would be constructed and the size of the facility for Option 3-A, and confirmed that it would be within the height limit. For Option 3 -1, he Volume 58 - Page 450 City of Newport Beach City Council Minutes April 16, 2008 stated that the 10 foot height increase would be within the height limit and noise analysis would need to be conducted. He indicated that he is not confident that mitigation can occur if noise reaches further into Villa Balboa due to the height increase. He noted that the noise level is at the maximum with three towers and that a test with four towers will be conducted soon. He stated that a provision can be added to the DA that schedules the annual review. He indicated that noise compliance can be added to Section 5.4 of the DA and that a provision can also be added requiring submission of an annual report for Council consideration. In response to Council Member Rosansky's concerns, Assistant City Manager Wood noted that the General Plan notes points throughout the City where there are important public views that are to be protected by new development, like Superior Avenue. Senior Planner Campbell indicated that the plume can be viewed from Superior Avenue. Mayor Selich opened the public hearing. Dr. Richard Afable, Hoag President and Chief Executive Officer, noted that there is little dissention to the transfer of square footage. He confirmed that Hoag will address the issues of noise, landscaping, and lighting, but has concerns relative to the options presented for plume mitigation. Stephen Jones, Hoag Board of Directors Chairman and President of Snyder Langston Construction, provided a PowerPoint presentation and reported that the cogeneration plant provides clean, consistent power. He discussed Hoag's Option 4 that would be implemented from November to April, reduce the plumes by 30 %, and involve installing a weather station. He noted that the option involves an initial capital expense of $500,000 and ongoing operating expenses of about $120,000 to $140,000 a year, with no additional cooling towers. He confirmed that, for the future, they want to transfer the square footage, will not be adding any additional cooling towers to the lower campus, and would reduce the plume by 30% with Option 4. In response to Council questions, Mr. Jones confirmed that plume mitigation would only occur during the day and when certain conditions exist, but it is possible to conduct the load shift under any condition. Michael Trespass, Syska Hennessy, noted that certain weather and humidity conditions need to occur to form a plume which generally occurs from November to April. Further, the hospital will need to rely on the plant during the summer months to keep the buildings cool. He confirmed that the plant could undergo the load shift year - round; however, their operating expense would significantly increase. He reported that the weather station will predict when a plume will start to form, notify the plant operator, and the plant operator will conduct a supervised load shift. He noted that the State requires that the plant be manned 24 hours a day. He stated that it is possible to do the load shift automatically, but recommends that an operator be present when stopping and starting this type of equipment. In response to Council questions regarding plume mitigation, Mr. Trespass indicated that no option is guaranteed. He stated that the reduction would be relative to the inputs that cause the plume since weather conditions control plume formation. Council Member Henn emphasized that residents will have an expectation of plume reduction and this cannot be based on a model that measures inputs and ambient conditions. Mr. Trespass confirmed that there are no standardized measurements to measure plumes. Dr. Afable estimated that it would cost $12 million to implement all the mitigation measures for noise, landscaping, lighting, and plume mitigation, but $9 million with Option 4. Council Member Rosansky pointed out that part of the cost is to fix problems Hoag created and that he believed that Hoag will actually save $8 million by building the $2 million soundwall since it did not build the $10 million building next to the loading dock that would have created a soundwall. In response to Council questions, Mr. Jones indicated that most hospitals use diesel generators as a secondary source backup, but Hoag's cogeneration plant provides consistent power. He explained how Volume 58 - Page 451 City of Newport Beach City Council Minutes April 16, 2008 load shifting works. He confirmed that Hoag is limiting the number of cooling towers, but there are plans to add more generators. He indicated that the additional generators should have no impact on plumes or the mitigation target of the plumes. He pointed out that plume reduction is not calculated over a future load, but today's load. He explained that for new construction, additional cooling towers are needed but would be built on the upper campus. Erik Thurnher, Co -Chair of the Villa Balboa -Hoag Liaison Committee and member of the Friends of Sunset View Park, utilized a PowerPoint presentation to discuss the DA from the residents' perspective. He indicated that the DA has not been what the residents were expecting. He displayed photos of the cogeneration plant and plumes, and discussed how cogeneration plants are mitigated in California, how CEQA mitigates plumes, and how to mitigate plumes. He explained why the residents are in favor of mitigating the plumes 75 %. Gloria Quirk, Villa Balboa Board of Directors, stated that construction sometimes begins before 7:00 a.m. on weekdays and 8:00 a.m. on weekends, the equipment and trash are unscreened, and material is dumped in the staging areas. She indicated that Vila Balboa does not have an issue with the transfer of entitlement and that they have not called Code Enforcement regarding the construction start times. Wendy Kaiser expressed support for Option 3 -1. She listed reasons why plume mitigation is needed and indicated that the residents do not support rooftop parking. She stated that they support the transfer of entitlement and allowing the mechanical room height to be increased, as long as it stays within the building envelope. She requested that the City implement a monitoring and follow -up program, and coordinate with AQMD. She recommended using an outside agency to do the measuring and spot checking, that the City conduct annual reviews, and that the 3 -1) graphics be used for any future updates. Ed Sherman believed that his quality of life could be affected by the expansion of the lower campus. He expressed concern about the lighting on the daycare center and encouraged Hoag to mitigate that immediately. He asked that, once the square footage is transferred, that the lower campus not be allowed to increase its buildable square footage. Additionally, he requested that only a low -level top covered parking structure be allowed on Coast Highway, that Hoag mitigate the cooling towers, and that Hoag remove the wall between the cancer center and the hill by Sunset View Park. Belle Ribaudo believed that Hoag needs to apply to AQMD for the three additional diesel engines that will be added to their facility. Nancy Knight, Villa Balboa Board of Directors, discussed issues with the loading dock and cogeneration plant, and stated that the residents were told that there would be no visible plumes. She stated that they have learned that Hoag deleted the noise and plume abatement measures to save money. She urged Hoag to mitigate the plumes and noise with the best available technology. Shahen Askari believed that there has been a degradation of lifestyle since Hoag started its expansion. He expressed concern with the integrity of the retaining wall on the lower campus, the safety hazard that the plume can create by spreading to Superior Avenue, and the credibility of the calculations. John Harms stated that he works in the City and sees the plumes. He noted that this is inconsistent with other business districts, park areas, or residential areas, and that it is blight that needs full mitigation. He believed Hoag's request to increase the noise level to be in compliance is not logical. Moe Quirk believed that Hoag needs to be a good neighbor and expressed concern about the health risks associated with plumes. He read a statement from Langston Tripp, Hoag Vice President for Facilities Design and Construction, relative to the plumes. Ross Ribaudo discussed the timeline of the upcoming projects and believed that the soundwall should Volume 58 - Page 452 City of Newport Beach City Council Minutes April 16, 2008 be extended to the entrance of the power plant Richard Banks believed that the modifications Hoag is making to extend the soundwall would work but requested that sound mitigation be conducted quickly. Andrea Else reported that the water vapor emits a chemical odor and the plumes block the view from the park bench. Joanne Lombardo believed that an environmental analysis should have been conducted on the cooling tower but now the City has a chance to mitigate the problem. She reiterated that Hoag's original plan included plume abatement, but it was removed. Don Krotee, Newport Heights Improvement Association President, reported that the plans for the cogeneration plants for John Wayne Airport and the Long Beach Aquarium include plume abatement measures. He expressed support for Option 3. Sam Stameson indicated that he was on the liaison committee with Hoag and expressed concern relative to the noise created by the cogeneration plant and the aesthetics of the plant. He also took issue that it does not have to abide with the noise ordinance. He believed that there is current technology to correct the plume issue. Annette Warner reported that the cogeneration plant creates noise in the evening and the children's daycare center is loud from 5:30 a.m. to 8:00 p.m. daily. Connie Justice believed that the first floor windows in the 260 and 280 Cagney Lane buildings should also be upgraded by Hoag. She asked if every California hospital built a cogeneration plant after the rolling blackouts occurred. She recommended that cogeneration plant and yearly compliance inspections be conducted by an outside party. Dick Runyan, Co -Chair of the Villa Balboa Liaison Committee, asked that Council act in the best interest of the community, CEQA provisions be followed, and plume mitigation occur. He questioned whether any Council Member would allow something like this to be built in their district next to a park. Michelle Staples, Law Firm of Jackson, DeMarco, Tidus & Peckenpaugh, provided a summary of comments. She noted that the three main issues involve the cogeneration plant, noise, and rooftop parking, and that remedial action is necessary. Hearing no further testimony, Mayor Selich closed the public hearing. Mayor Selich recessed the meeting at 10:04 p.m. and reconvened the meeting at 10:14 p.m. with all members of Council in attendance. Dr. Afable stated that the cogeneration plant is safe, in compliance, and meets the requirements. He expressed concern that altering the plant at this point may put patient care in jeopardy. He asked that Council consider Option 4. He stated that they will conduct plume abatement over time and will not add any future towers to the lower campus. In response to City Manager Biudau's questions, Senior Planner Campbell indicated that the height of the cogeneration plant was established by the bluff height. He noted that blockage occurred in some areas, but improved in other areas. Langston Tripp indicated that Hoag has not yet applied to AQMD for the three additional generators, but believed it would be unlikely that Hoag would ever have six generators. He noted that adding more generators would also require City approval. Regarding the odor from the cooling tower, Mr. Pearson recommended that the City hire an ambient monitoring firm that specializes in organic and sulfur compounds. Volume 68 - Page 463 City of Newport Beach City Council Minutes April 16, 2008 Motion by_Council Member,Curry to a) adopt Resolution No. 2008 -27 certifying the Supplemental Environmental Impact Report (Exhibit #1); b) adopt Resolution No. 2008.28 approving General Plan Amendment No. 2007 -005 (Exhibit #2); c) introduce Ordinance No. 2008 -9 approving amended Planned Community Development Plan Amendment No. 2007 -001 (Exhibit #3), and pass to second reading on April 22, 2008; d) introduce Ordinance No. 2008.10 approving Development Agreement Amendment No. 2007.001 (Exhibit #4), and pass to second reading on April 22, 2008, including that the Development Agreement reflects that Hoag agrees to install and operate Option 4 as a means to abate the cogeneration plant plumes, that Hoag will reimburse the City for the cost of installing landscaping and an irrigation system for about .47 acres at Sunset View Park, and include the amendment regarding soundproofing windows. Mayor Pro Tem Daigle requested that the motion be amended to include a provision in the Development Agreement requiring annual noise monitoring. Amended._ motion by . Council Member„ Curry to include a provision in the Development Agreement to require annual noise monitoring. Council Member Rosansky requested that the motion be further amended to require rooftop landscaping on all lower campus parking structures; that Hoag reimburse the City for the cost of the Fluor study; that it be reflected that Hoag agreed to not build more cooling towers on the lower campus; that the PC Text include language that indicates that anything that will emit any type of visible emission have some type of review process before the City; that Hoag use the most current plume abatement technology when a cooling tower needs to be replaced; that Hoag landscape the entire Sunset View Park and not just .47 acres of it; that outside verification of compliance be conducted; and that an independent method occur to verify the accuracy of the information provided by Hoag. City Attorney Clauson suggested that, as a condition, Hoag also pay any future fees incurred by the City related to the review of the DA. Dennis O'Neil, Hoag Hospital representative, indicated that Hoag agrees to landscaping the parking structure rooftops, reimbursing the City for the cost of the Fluor study, and reimbursing the City for costs related to future amendments since this is part of the environmental process. He noted that changing the PC Text to not allow visible emissions requires approval from the City, but believed that the DA already has adequate language. He indicated that they are not in favor of including more language into the document. He indicated that Hoag will only agree to landscape .47 acres of Sunset View Park and cannot agree to use whatever plume technology is available at the time a cooling tower is rebuilt or replaced. Amended motion by Council Member Curry to include a provision regarding rooftop landscaping of parking structures, reimbursement by Hoag of costs incurred relative to the Fluor study, and require Hoag to pay for ongoing monitoring costs. Gary McKitterick, Hoag Board of Directors, expressed concern about committing to a technology for replacing the cooling towers when that technology is unknown at this time. He indicated that Hoag will work with the City on abatement technology when the time arises. Substitute motion by Council Member Rosanskv to a) adopt Resolution No. 2008 -27 certifying the Supplemental Environmental Impact Report (Exhibit #1); b) adopt Resolution No. 2008 -28 approving General Plan Amendment No. 2007 -005 (Exhibit #2); c) introduce Ordinance No. 2008 -9 approving amended Planned Community Development Plan Amendment No. 2007 -001 (Exhibit #3), and pass to second reading on April 22, 2008; d) introduce Ordinance No. 2008 -10 approving Development Agreement Amendment No. 2007 -001 (Exhibit #4), and pass to second reading on April 22, 2008, including that the Development Agreement reflects that Hoag agrees to install and operate Option 3 -1 (replace towers or provide 75% plume abatement) as a means to abate the cogeneration Volume 58 - Page 454 City of Newport Beach City Council Minutes April 16, 2008 plant; and e) that Hoag reimburses the City for the cost of installing landscaping and an irrigation system for about .47 acres at Sunset View Park, include the amendment regarding soundproofing windows, include a provision regarding rooftop landscaping of parking structures, reimbursement by Hoag of costs incurred relative to the Fluor study, and require Hoag to pay for ongoing monitoring costs. The substitute motion died for lack of a second. In response to Council Member Gardner's questions, City Attorney Clauson indicated that the City would probably not be able to require that Hoag add plume abatement technology if it is not included in the DA now since no language is present in the current conditions. Mr. McKitterick believed that language already exists relative to evaluating plumes and other view impacts. He reported that Hoag has changed its position and agrees that, at the time of a cooling tower's useful life, Hoag will implement plume abatement that is reviewed with the City through the environmental process. Amended motion by_Council Member Curry to add language in the Development Agreement and Planned Community Text that requires Hoag to implement plume abatement technology that is reviewed with the City through the environmental process at the end of a cooling tower's useful life. Assistant City Manager Wood recommended that a new section be added to the standards for approval of the site plan review to read, "The development of structures that have the potential to generate emissions that will have a visual, odor, air quality, or other similar impact shall be mitigated to the maximum extent feasible." Amended motion. by Council Member Curry to a) adopt Resolution No. 2008 -27 certifying the Supplemental Environmental Impact Report (Exhibit #1); b) adopt Resolution No. 2008 -28 approving General Plan Amendment No. 2007 -005 (Exhibit #2); c) introduce Ordinance No. 2008 -9 approving amended Planned Community Development Plan Amendment No. 2007 -001 (Exhibit #3), including changes to the landscaping provisions and exhibits contained in the staff report, the change to the definition of gross floor area, the inclusion of a review process to apply to structures proposed for the lower campus that have the potential to generate visible emissions or odors that impact visual or air quality, the inclusion of a review process for replacement of the existing cooling towers on the lower campus, and changes to mandate landscaping of rooftop parking or tops of parking structures on the lower campus, and pass to second reading on April 22, 2008; and d) introduce Ordinance No. 2008 -10 approving Development Agreement Amendment No. 2007 -001 (Exhibit #4), including language in the Development Agreement that reflects that Hoag agrees to install and operate "Option 4" as a means to reduce the cogeneration plant cooling tower plume, that Hoag will reimburse the City for the cost of installing landscaping and an irrigation system for about .47 acres at Sunset View Park, include a provision to require annual noise monitoring, include language to schedule future annual reviews in April of each year, reimbursement by Hoag of costs incurred relative to the Fluor study, and require Hoag to pay for administrative costs for future monitoring of the Development Agreement, and pass to second reading on April 22, 2008. Council Member Rosansky asked if this is enforceable. City Attorney Clauson confirmed that the motion adds language into the DA and PC Text (Ordinance Nos. 2008 -9 and 2008 -10) that will be voted on at the April 22 meeting. Regarding the soundwall, Senior Planner Campbell confirmed that an analysis was conducted regarding lengthening the soundwall and staff believes that the proposed extension will cover the additional noise impacts. The amended motion carried by the following roll call vote: Ayes: Council Member Henn, Council Member Rosansky, Mayor Pro Tem Daigle, Mayor Selich, Volume 58 - Page 455 City of Newport Beach City Council Minutes April 16, 2008 Council Member Webb, Council Member Curry, Council Member Gardner Motion by Council. Member Cures to a) find and determine the applicant is in good faith compliance with the terms and conditions of the Development Agreement and all mitigation measures of the original EIR; and b) schedule a Council meeting each year in April as the time to conduct the hearing and review of the applicant's good faith compliance with the terms and conditions of the Development Agreement, the Amendments to the Development Agreement, and all applicable EIR and SEIR mitigation measures. The motion carried by the following roll call vote: Ayes: Council Member Henn, Council Member Rosansky, Mayor Pro Tem Daigle, Mayor Selich, Council Member Webb, Council Member Curry, Council Member Gardner Council Member Gardner requested a study session item after budget deliberations relative to how the City will be enforcing all the regulations. V. PUBLIC COMMENTS - None Vi. ADJOURNMENT -11:05 p.m. The agenda for the Regular Meeting was posted on April 10, 2008, at 11:45 a.m. on the City Hall Bulletin Board located outside of the City of Newport Beach Administration Building. AxWV - ; ►vlV ►v Record' g Secretary Mayor City Clerk Volume 58 - Page 456