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ADOPT A RESOLUTIONS CERTIFYING AN ENVIRONMENTAL IMPACT REPORT, INCLUDING A STATEMENT OF OVERRIDING CONSIDERATIONS, FINDINGS OF FACT, A MITIGATION AND MONITORING REPORTING PROGRAM, AND AN ERRATA TO THE FINAL ENVIRONMENTAL IMPACT REPORT AND ADOPTING A MASTER DEVELOPMENT PLAN; ADOPT AN ORDINANCE APPROVING A DEVELOPMENT AGREEMENT, FOR THE PROPOSED ST. JOSEPH’S MEDICAL CENTER OF STOCKTON HOSPITAL EXPANSION PROJECT AT 1800 NORTH CALIFORNIA STREET (APPLICATION NO. P21-0958)
recommended action
RECOMMENDATION
It is recommended that the City Council:
1. Adopt a Resolution certifying the Environmental Impact Report (SCH #2021120439), including a Statement of Overriding Considerations, Findings of Fact, Mitigation and Monitoring Reporting Program, and Errata to the Final Environmental Impact Report;
2. Adopt a Resolution approving a Master Development Plan, with Conditions of Approval;
3. Adopt an Ordinance approving a Development Agreement; and
4. Authorize the City Manager to take any and all necessary and appropriate actions to carry out the purpose and intent of these actions.
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Summary
Port City Operating Company, LLC, (PCOC) doing business as Dignity Health St. Joseph’s Medical Center of Stockton (“St. Joseph’s”), proposes an expansion of the main campus of the Dignity Health St. Joseph’s Medical Center (“Medical Center,” “Medical Center campus” or “Project”) located at 1800 North California Street, on an approximate 18.7-acre site.
The Project includes a request for a Master Development Plan (MDP) and a Development Agreement (DA) as the foundation for an expansion of the Medical Center campus that will occur over many years and several phases. The MDP is intended to provide a single, unified concept for future growth that will be implemented at the Medical Center, and provides a Site Master Plan, development and design guidelines (including identified deviations from the Municipal Code) for proposed and potential future structures, landscaping and signage guidelines, traffic improvements and circulation, and provisions for all infrastructure (sewer, water, dry utilities, and fire suppression).
The proposed expansion will include removal of existing buildings, construction of a new Acute Care Hospital Tower of up to 331,000 square feet, construction of a new parking structure to replace existing surface-level parking, and modernization of other facilities on the Medical Center campus.
The expansion is planned in a manner to minimize disruption in existing patient services. At full build-out of the Initial Expansion, it is anticipated that there will be an additional 24 intensive care patient beds, an additional 120 general acute care patient beds, a new 70-station Emergency Department, a new surgical area with ten (10) general Operating Rooms and a new Central Sterile Processing Department. Access for regular and emergency patients will be enhanced by adding a new entrance for ambulances and creating a new entry lobby, with a covered drop-off and admitting department along North California Street.
The expansion also includes up to two (2) new heliport landing areas and one (1) additional heliport parking area. The new heliport(s) will be located on the new parking structure and will be close to the new Emergency Department. The location is designed to complement the existing heliport that is located in close proximity to existing Neonatal Intensive Care Facilities, which will remain in place.
The project and site are consistent with the 2040 General Plan Land Use Map designation of Commercial and furthers policies aimed at
• Attracting and retaining companies that offer high-quality jobs with wages that are competitive with the region and state (Goal LU-4)
• Attracting employment and tax -generating businesses in the city (Policy LU-4.2)
• prioritizing development and redevelopment of vacant, underutilized, and blighted infill areas (Policy LU-6.2)
An Environmental Impact Report (EIR) was prepared for the project in compliance with the California Environmental Quality Act (CEQA). A Draft EIR was prepared and circulated for a 45-day public review period. All potentially significant effects are identified and paired with feasible mitigation measures to reduce them to less than significant levels, with the exception of two (2) potential impacts (Aesthetics and Greenhouse Gas Emissions) that remain significant and unavoidable even with provided mitigation measures, which require approval of a Statement of Overriding Considerations.
On September 14, 2023, the Planning Commission approved a motion to continue consideration of the Project to a Special Planning Commission meeting date of September 21, 2023, due to lack of a quorum of the Planning Commission to take any action. Resulting action from the Special Meeting will be presented during staff’s presentation.
The Medical Center expansion will bring significant economic and community benefits to Stockton and the surrounding region, both in the short term (during construction) and long term (as the Medical Center operates through expanded facilities). According to the Applicant, the Medical Center presently contributes $1.1 billion in economic activity to San Joaquin County, and this number is expected to increase by over $500 million after completion of the expansion. Approximately 780 new annual jobs will be created in the community, including approximately 471 new jobs on the Medical Center campus, both professional (medical, nursing, and related positions), as well as support and administrative jobs. Finally, the expansion will allow for increases in the current Graduate Medical Training Program, which is anticipated to include 238 medical residencies, an increase of 142 from 2021.
St. Joseph’s has been a contributor to health-related programs in the region for over 120 years, and the organization’s mission focuses on providing health care to underserved populations. St. Joseph’s continually invests millions for unreimbursed care, community benefit programs, and community amenities related to healthy lifestyles.
DISCUSSION
Background
The Medical Center campus consists of approximately 18.7 acres and spans 19 parcels. Eleven (11) additional parcels that are within the boundaries of the Master Development Plan are located within the near vicinity (Attachment A - Location Map & Aerial Photo). The Assessor Parcel Numbers are:
APNs:
125-360-15
127-140-16
127-150-23; -24; -25; -28; -29; -30; -31; -32; -33; -48; -49
127-164-06; -07; -08; -15; -16; -22
127-172-11; -12; -16
127-173-28
127-174-30
127-180-16; -44
127-190-08; -09-; -10; -32
Project and Surrounding Area
|
Property |
Land Use |
Zone |
GP Land Use |
|
Subject Site |
St. Joseph’s Hospital Campus |
CO/CG |
AP/MDR |
|
North of Site |
Medical Clinics/Offices |
CO |
AP |
|
South of Site |
Medical Clinics/Offices, A Behavioral Health Center, & A City Fire Station |
CN |
C |
|
East of Site |
San Joaquin Catholic Cemetery |
PF |
I |
|
West of Site |
Medical Clinics/Offices, & Residential/Commercial Uses |
CO/CG/RM |
AP/MDR |
*APN 125-360-15 is located three blocks north of the main campus site at 2510 North California Street, at the intersection of North California Street and East Geary Street and is not shown on this map.
The current General Plan Land Use designations for the parcels that are within the boundaries of the Master Development Plan are:
1. On-Campus Parcels - Administrative Professional (AP) and Commercial (C); and,
2. Off-Campus Parcels - Administrative Professional and Medium Density Residential (MDR).
The zoning designations for the on-campus parcels are Office Commercial (CO) and General Commercial (CG). The Zoning Map designations for the off-campus parcels are CO and Medium Density Residential (RM). Each of the parcels referenced as part of the Master Development Plan are identified in Attachment B - General Plan Land Use Map and Attachment C - Zoning Map
Project Description
The Project will be adopting a Master Development Plan which will create the procedural framework by which the properties included within the MDP can develop over time. St. Joseph’s has applied for all required entitlements to permit an expansion of the Medical Center pursuant to the development standards and design guidelines detailed in the proposed MDP. Development of the Medical Center expansion will occur after approval of the proposed MDP. This section below will describe the components of the MDP and additional related entitlements that will implement the Project.
STAFF ANALYSIS
To develop the Project, the City Council is asked to: 1) adopt a resolution certifying the EIR, 2) adopt an ordinance approving a DA, and 3) adopt a resolution approving an MDP.
Each request and staff’s analysis are provided below.
Environmental Clearance
Pursuant to CEQA Guidelines section 15064, the City Council must consider the prepared EIR prior to acting on the Project. As reflected in the proposed Resolution, certification of the EIR is presented, including adoption of a corresponding Findings, Statement of Overriding Considerations (SOC) and Mitigation Monitoring and Reporting Program (MMRP).
In accordance with the CEQA, a Notice of Preparation (NOP) was published for agency and public review during a 30-day period starting on December 17, 2022, and ending January 17, 2023. A virtual public scoping meeting was held on January 10, 2023. Written comments were received from the Central Valley Regional Water Quality Control Board, the Native American Heritage Commission, and the Sierra Club Delta-Sierra Group. There were no comments received from the public during the NOP period.
Comments received were considered in the preparation of a Draft EIR, which was circulated for a 45-day public review period beginning on April 17, 2023, and ending June 1, 2023 (Attachment D - Draft EIR). By the conclusion of the Draft EIR review period, five (5) comment letters were received by the City. The nature of the comments related to the potential environmental effects of the project on the community as well as incorporation of solar power for electrical use of the hospital, electric vehicle charging stalls, and bicycle parking. In coordination with the City’s CEQA consultant and the applicant, mitigation measures were adjusted and incorporated into both the FEIR (Attachment E) and Development Agreement (Exhibit 1 to the DA Ordinance). These modifications did not require reevaluation of the existing technical studies prepared.
Before taking action on the project, the City must first certify that the EIR is adequate under CEQA. Then, the City must make specific findings regarding each of the significant environmental effects identified in the EIR. Guidelines for the certification of a FEIR (CEQA Guidelines Section 15090) require that the Lead Agency certify that the FEIR:
1. Has been completed in compliance with CEQA
2. Was presented to the decision-making body of the Lead Agency, and the decision-making body reviewed and considered the information contained in the Final EIR prior to a decision on the project
3. Reflects the Lead Agency’s independent judgment and analysis
The EIR is intended by CEQA to be an informational document. Decision-making on the project in relation to its environmental impacts is reserved to the Lead Agency which must address each significant effect identified in the EIR in written findings before they approve the project, or portions of the project (CEQA Guidelines Section 15091). These findings are contained in a separate document (CEQA Findings and Mitigation Monitoring/Reporting Program (MMRP)) that accompanies the Final EIR and must also be adopted by the City Council.
The MMRP is required to ensure that the mitigation measures and project revisions identified in the EIR are implemented. The measures and revisions described in the FEIR are fully enforceable through permit conditions, agreements, or other measures. The MMRP for this project is a separate document that accompanies the Final EIR, and addresses items such as: Aesthetics and Visual Resources; Biological Resources; Cultural Resources/Tribal Cultural Resource; and Geology and Soils.
In the event that the City wishes to approve a project without providing substantial mitigation for all its significant impacts of the project, then CEQA allows the decision-makers to balance the project’s benefits against its unavoidable environmental risks. This decision must be documented in a Statement of Overriding Considerations (SOC) and then adopted. The project includes an SOC, which address the following topics: Aesthetics and Greenhouse Gas (GHG) Emissions.
Pursuant to CEQA, all substantive comments are responded to in the Final EIR (Exhibit 1 to the FEIR Resolution). Pursuant to CEQA, the City Council must consider the FEIR prior to acting on the project. As reflected in the attached proposed Resolution (recommending approval of the EIR), certification of the EIR is presented with an Errata to the FEIR, including adoption of a corresponding Mitigation Monitoring and Reporting Program, Findings, and a Statement of Overriding Considerations, which are included as Exhibit 2 to the FEIR Resolution.
Master Development Plan
A Master Development Plan, included as Exhibit 1 to the MDP Resolution, is intended “to provide flexibility in the planning review process so that land use requirements are identified in a master development plan and there is minimal review of subsequent approvals if they are consistent with the adopted plan…” and “to provide a process for reviewing, processing, and approving master development plan applications which are intended to provide a comprehensive framework for the development of property which has a mixed use or university designation in the General Plan or for a specified geographical area that will be developed as a single concept.” (Stockton Municipal Code “SMC” sections 16.140.010A and B). In this instance, the St. Joseph’s Medical Center Expansion Project provides for a single-concept, comprehensive development approach for 30 parcels under common ownership and under similar uses.
A Master Development Plan is required to identify the following (per SMC section 16.140.050):
• Proposed land uses, including density and intensity of uses.
• Infrastructure components.
• Land Use and Development standards.
• Implementation measures, including environmental mitigation measures.
• Discussion of the relationship to the General Plan.
The adoption of the Master Development Plan requires that certain findings of fact listed in SMC 16.140.080 be addressed. These findings include:
1. Consistency with the objectives, policies, general land uses, programs, and actions of all applicable elements of the General Plan
2. Adequately addresses the physical development characteristics of the subject site(s)
3. Development standards identified in the master development plan serve to protect the public convenience, health, safety, and general welfare
4. Development of the subject site(s) covered by the St. Joseph’s MDP ensure a compatible land use relationship with the surrounding neighborhood
5. Compliance with all applicable requirements of the Development Code, local ordinances, and State law
6. Compliance with the provisions of CEQA and the City’s CEQA Guidelines
Staff affirms that all findings can be met, as expanded upon in the proposed resolution to adopt the Master Development Plan.
Pursuant to SMC Section 16.140.060(E), the City Council is the Review Authority for Master Development Plans upon recommendation from the Development Review Committee (DRC). On August 30, 2023, the DRC provided a verbal approval recommendation to staff for the Master Development Plan.
Development Agreement
A Development Agreement to implement the Master Development Plan is required to be processed concurrently with Master Development Plan in accordance with SMC 16.140.060(C). The proposed DA identifies a range of developer and City obligations and responsibilities for how the Project’s development may occur. The DA addresses issues such as infrastructure requirements, utility relocation, payment of applicable fees, and ongoing city approval processes.
The proposed ordinance includes the following required findings pursuant to SMC 16.128.080:
1. Is in the best interests of the City;
2. Complies with the City Development Code and other applicable ordinances and regulations, particularly the regulations of Chapter 16.128 pertaining to development agreements;
3. Is consistent with the general land uses, objectives, policies, and programs of the General Plan, any applicable specific plan or master development plan;
4. Will not endanger, jeopardize, or otherwise constitute a hazard to the public convenience, health, interest, safety, or general welfare;
5. Complies with the conditions, requirements, restrictions, and terms of Section 16.128.060(B) (Preparation and Content - Proposed Development Agreement); and,
6. Complies with the provisions of CEQA and the City’s CEQA Guidelines
Staff affirms that all findings can be met, as expanded upon in the proposed resolution to adopt the Development Agreement.
Subsequent Development Permits
As of the writing of this staff report, there have been no applications made for physical development of the site beyond the conceptual site plan evaluated in the EIR and shown in the MDP. Should an application be submitted to develop the site, it would be required to adhere to the conditions of approval, MDP, DA, and MMRP adopted by the City Council, as well as a comprehensive review and approval through Site Plan Review and Design Review.
PUBLIC COMMENT
As the Project was required to prepare an EIR, there have been significant public outreach efforts required during the CEQA process. The Final EIR has been prepared pursuant to the requirements of CEQA, which concludes the public review process of the environmental document. The FEIR includes all correspondence received during the public review process for the DEIR. Additionally, a Notice of Availability was posted at the San Joaquin County Clerk’s office.
Cultural Heritage Board
Prior to the Planning Commission hearing, on August 2, 2023, the Cultural Heritage Board (CHB) reviewed the historical merits of the five (5) structures to be demolished that are older than 50 years of age. Seeing as none of the structures qualified as a historic resource, the CHB issued a Certificate of Appropriateness (Attachment F - Cultural Heritage Board Resolution) for their demolition and forwarded their recommendation to the Planning Commission. The Planning Commission agreed with the recommendation and approved the demolition of the five (5) structures.
Planning Commission
On September 14, 2023, due to lack of a quorum, the Planning Commission approved a motion to continue the project consideration to a Special Planning Commission meeting date of September 21, 2023, to keep the project on schedule. An additional public hearing notice and mailed noticing of the Special Planning Commission meeting was not required because the Planning Commission’s action to continue this item informed the public.
Due to agenda publication deadlines, the Planning Commission’s action will be reported to the Council by staff. Public comments received is included as Attachment G.
Public Notice, Public Comments, and Community Outreach
As the Project was required to prepare an EIR and MDP, there have been significant public outreach efforts throughout the process.
St. Joseph’s conducted broad, multi-lingual, and diverse outreach to inform the community, neighbors, and stakeholders about the proposed project expansion. Six (6) community workshops were held for all interested members of the public, with translation in Spanish and Tagalog at four (4) of the workshops. St. Joseph’s also presented to local leaders and organizations during the monthly meeting for the San Joaquin Partnership on March 23, 2023. Outreach by social media, e-mail, and direct mail was also extensive (Attachment H - Community Outreach Summary). * St. Joseph’s provided regular updates on its own web page, including a link to the draft Master Development Plan and Draft EIR.
Publication
On September 15, 2023, in preparation for the September 26, 2023 City Council public hearing, a notice for this request was published in The Record and mailed notice was sent to all property owners within a 1,000-foot radius, interested parties, and local agencies, at least ten (10) days prior.
FINANCIAL SUMMARY
All required application fees were paid for processing the requested actions. Plan check and permit fees will be applied at the construction stage.
Attachment A - Location Map & Aerial Photo
Attachment B - General Plan Land Use Map
Attachment C - Zoning Map
Attachment D - Draft EIR
Attachment E - Final EIR
Attachment F - Cultural Heritage Board Resolutions
Attachment G - Public Comment Received
Attachment H - Community Outreach Summary