14 Staff Report - Improvements to Los Gatos Community HospitalcowN of MEETING DATE: 8118108
ITEM NO: f]
~Qj•4i[ ' f
toj7X 05 COUNCIL AGENDA REPORT +
S ~A~
DATE: AUGUST 14, 2008
TO: MAYOR AND TOWN COUNCIL
FROM: GREG LARSON, TOWN MANAGER
SUBJECT: ADOPT RESOLUTION TO ENCOURAGE THE PRESERVATION OF AND
IMPROVEMENTS TO THE LOS GATOS COMMUNITY HOSPITAL
RECOMMENDATION:
Adopt resolution to encourage the preservation of and improvements to the Los Gatos Community
Hospital.
BACKGROUND:
The Los Gatos Community Hospital (LGCH) site is owned by HCP, Inc., a real estate trust based in
Long Beach, California. The current operator of the LGCH is Tenet Corporation, a national health care
services provider.
A recent settlement agreement between HCP, Inc. and Tenet for several sites throughout the country
included a termination of the current lease and operations agreement at LGCH next Spring, 2009.
Recent media coverage of this forecasted change has led to extensive community discussion and
prospective development inquiries.
DISCUSSION:
Locally based hospitals provide an important community benefit which includes quality health care
services to improve and maintain the health of people living, working, and visiting in Los Gatos. In
addition, hospitals are a major source of employment for the community.
PREPARED BY: GREG LARSON
Town Manager
GL:pg
NAIMGMAdminWorkFiles12008 Council Reporisl8_15 LG Community Hospital.doc
Reviewed by: Assistant Town Manager Town Attorney
Clerk Administrator Finance Community Development
PAGE 2
MAYOR AND TOWN COUNCIL
SUBJECT: ADOPT RESOLUTION TO ENCOURAGE THE PRESERVATION OF AND
IMPROVEMENTS TO THE LOS GATOS COMMUNITY HOSPITAL
AUGUST 14, 2008
Existing General Plan Goals and Policies specifically reflect the value of hospital services for Los Gatos
and apply to the retention of the Los Gatos Community Hospital:
HS.P.2.1 Encourage the retention of three nearby hospitals.
L.P.5.4 Encourage existing light industry and service commercial uses to remain or be
replaced with similar uses.
L.P.5.6 Encourage development that maintains and expands resident-oriented services
and/or creates employment opportunities for local residents consistent with
overall land use policies of the Town.
In light of these goals and the benefits provided to the community, the Town of Los Gatos previously
approved a modification of the prior conditional use permit (CUP) to significantly expand and upgrade
the LGCH. Unfortunately, the modified CUP was not implemented by the property operator/owner
resulting in its expiration last April. Substantial seismic and ADA improvements may be required on
the site for compliance with State hospital regulations.
The Town has received multiple inquiries regarding the use and re-use of the LGCH site ranging from
housing to construction of a new hospital.
Given the foregoing Council-approved General Plan Goals and Policies, it is recommended that any
substantial change to the existing use, other than reapplication for the previously approved
improvements and modifications, should be referred to the General Plan Update Process for
consideration with the focus on increased youth and senior services.
CONCLUSION:
The Los Gatos Community Hospital should be retained and the Town should favor any proposed
expansion under the previously approved master plan. Council adoption of the attached resolution is
recommended to highlight and elevate the Town's commitment to retention of high quality acute
hospital services and employment for Los Gatos residents, workers and visitors.
ENVIRONMENTAL ASSESSMENT:
It has been determined that the adoption of this resolution could not possibly have a significant effect on
the environment. Therefore, the project is not subject to the California Environmental Quality Act
(Section 15061(b) (3)). Environmental review will be required for any subsequent development
proposal.
FISCAL IMPACT:
None. Attachment: Draft Resolution
RESOLUTION
RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
CONCERNING THE HOSPITAL CAMPUS PROPERTY
LOCATED AT 815 POLLARD ROAD
WHEREAS, the Town Council determines that it is necessary to establish certain
development guidelines for future development of the hospital camps property (Exhibit A); and
WHEREAS, the Town Council determines that it is necessary to provide specific
guidance to prospective owners and operators of this property; and
WHEREAS, the General Plan encourages the retention of hospitals and similar
services; and
WHEREAS, it is highly beneficial to retain the use of the property as an acute care
hospital which will continue to provide for the health care needs of the entire community.
THEREFORE, BE IT RESOLVED: the Town Council hereby declares its support
for the continued operation of and needed improvements to Los Gatos Community Hospital as the
only acute care hospital within the Town boundaries.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of
Los Gatos, California, held on the day of , 2008 by the following
vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
ATTEST:
CLERK ADMINISTRATOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
N: 1MGMADMINWORI-'ILES12008 COUNCIL REPORTSI8_15 LG COMMUNITY HOSPITAL
RESOLUTION.DOC
EXHIBIT A