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SR-8B S~ple~ ~on- ~ t?> 3 '2..L( J1 ~ PCD SF KG AS f \plan\share\councll\strpt\stJsuP CouncIl Mtg March 24, 1998 Santa Monica, California TO Mayor and City Council FROM City Staff SUBJECT Ordinance for Introduction and First Readmg Approving Development Agreement 96-001, Certification of Final Environmental Impact Report 96- 001 and Adoption of a Statement of Overnd Ing Considerations, General Plan Amendment 96-002 to Modify the Hospital Area SpecifiC Plan (HASP) and land Use Map, and General Plan Amendment 96-003 to Modify the land Use and Circulation Element (LUCE) and Land Use Element Policy Map Applicant Saint John's Health Center INTRODUCTION ThiS report proVides reVised Development Agreement language In response to the City CouncIl's request at the March 18'" CounCil meetmg In addition. thiS report prOVides reVised Development Agreement language to address a number of technical Issues Identified since the CounCil meeting Finally, Attachment A proVides staff's proposed Development Agreement language for Samt John's Community Benefit Plan and Child Care Program At the CounCil's direction. staff has also researched trends regardmg the conversion of non-profit hospitals to for-profit institutions Staff has found that, between 1980 and 1990. 110 non-profit hospitals nationWide converted to for-profit status ThiS number represents 4% of all non-profit hospitals Additionally. In 1995 alone, 60 non-profit hospital became for-profit health care institutions ThiS IS twice the number of conversions that occurred In SU,~t~ ~porr ~ B 3~2J.f-q8 1994 CITY COUNCIL REQUESTED DEVELOPMENT AGREEMENT MODIFICATIONS · Exhibit K, Phase One Condition 31 31 A public mformatlon program shall be established by Samt John's concernmg the Impending construction activities dUring Phase One This program may Include media coverage, portable message sIgns and mformatlonal signs at the Job site This program will include periodic bulletins to neighbors residing Within a five hundred foot radius of the Phase One project and the principal of McKinley Elementary School. Such bulletinS shall be provided when construction activities and conditions change that may impact the surrounding residential neighbors. The bulletin shall be issued at least 14 days I n advance of any change to construction activities. The bulletins will describe the types of construction activities scheduled to occur during the period covered by the bulletin, Including any construction activities, truck routes, and deliveries that may impact students on campus or walking to school. The bulletin shall include a phone number and contact person at Saint John's. Prior to the commencement of construction, Samt John's shall submit the publiC information program to the Planning Director for revIew and approval · Exhibit K, new Phase One Condition 56 56. Within SIX (6) months following commencement of use of the new Loading Dock, Service BUilding and Emergency Room, Saint John's shall retain an acoustical engineerto prepare a study ('Sound Study') of those operations to determine whether nOise generated from the Loading Dock, Service Building, and/or Emergency Room exceeds the standards established for Noise Zone III (Institutional) in Santa Monica Municipal Code Chapter 4.12 ('Noise Ordinance'). The Sound Study shall identify mitigation measures to reduce such noise if necessary to comply with the City's Noise Ordinance. The study methodology shall be approved by the Planning Director prior to commencement of the study. 2 . 57. . 58. . 15 Exhibit K, new Phase One Condition 57 The City may require Saint John's to install construction fencing ata height which exceeds the height otherwise allowed by the Zoning Ordinance. Exhibit K. Phase One Condition 58 Prior to commencement of Phase One construction, Saint John's will submit to the Planning Director a neighborhood mitigation plan that will describe the terms and conditions which Saint John's will Implement to mitigate the Impacts of its construction activities on neighboring properties. The plan will include reasonable measures to mitigate construction dust and construction noise impacts. Copies of the plan will be made available on request to neighbors residing within 500 feet of the Phase One project site. Exhibit K. Phase One Sustamable Cities ConditIon 15 1_.1:____...__ ~....._Il ....._ _~_,,,...._ .._ ___1_..___ _I: n.....___ ^__ _....._.... ......._ ___.._1.__ IIIlVlll,allVl' "'1011 LIt;; tJl VY'U<;;; ~v <;;;.lltJ1VY<;;;<;;;';' VI , '10';'<;;; \..11'<;;; OIJUUL 1I1<;;; '<;;;....,Y....,IU I~ services m the area Within six (6) months of the Effective Date of this Agreement. Saint John's will establish a recycling policy. The policy shall be submitted to, and coordinated with, the City'S Director of EPWM, or such other person as the Director shall designate, and the Director's comments shall be considered In development of the final program. The program shall consider, at a minimum, all waste streams managed by Saint John's, the environmental consequences of decIsions relative to recycli ng, and the cost effectiveness of the various recyclable waste streams and programs. Information shall be provided to employees of Phase One about the recycling services In the area. Buy-back centers and pOSSible markets for recyclables In the area shall be Identified · Exhibit K. Phase One Sustamable Cities Condition 17 17 Prior to Issuance of a Technical City Permit for the construction of any bUilding or parkmg structure over which the City has permitting authority In Phase One. Saint John's shall submit an analysIs to EPWM demonstrating that the deSign of the proposed bUilding or parking structure will result In a minimum ten percent (10%) energy effiCiency Increase overthe life of the bUilding or parking structure above the requirements of Title 24 of the California Code of Regulations, to the "' ,j extent such Increase can be Implemented on a cost-effective basIs measured over the life cycle of the bUlldmg or parking structure The provIsions of thiS mitigation shall not apply Hospital BUildings to buildings classified as Institutional (I) Occupancy. Saint John's shall, however, endeavor to meet these energy standards in the design of all new bUildings in Phase One, and in any future renovations and/or improvements to the buildings in Phase One, and commits to performing a comprehensive analysis of these buildings to identify all feasible energy efficiency opportunities for the project. · Exhibit K, new Phase One Condition 20 20. Saint John's shall cooperate with the City In evaluating energy supplies for use in faCilities constructed In Phase One. Saint John's shall participate in analysis, procurement, supply and distribution of energy supplies which may be produced, aggregated, bundled or in any other way developed by the City, except that Saint John's Will not be required to compromise reliability of supply, efficiency of its systems, or the cost effectiveness of its operations in making its energy procurement deciSions, taking into consideration the full environmental impacts of energy generation and procurement decisions. · Exhibit K, Phase One Condition 43 43 In order to enhance the pedestrian activity In the Entry Plaza, Saint John's shall have the right to locate small retail and service food and beverage carts In the Entry Plaza Such carts may provide for the purchase and sale of non- alcoholic beverages. · Exhibit K, new Phase One Condition 46 and re-number the "MonitOring of Conditions" requirement as Condition 47 46. Hours for public access to the North Lawn shall at a minimum be consistent with the public access hours for City Parks. 4 · Exhibit K. Phase Two Condition 60 60 A public information program shall be established by Saint John's concernmg the Impending construction activities dUring Phase Two This program may Include media coverage. portable message signs and informational signs at the Job site This program will include periodic bulletins to neighbors residing within a five hundred foot radius of the Phase Two project and the principal of McKinley Elementary School. Such bulletins shall be provided when construction activities and conditions change that may Impact the surrounding residential neighbors. The bulletin shall be issued at least 14 days in advance of any change to construction activities. The bulletins will describe the types of construction activities scheduled to occur during the period covered by the bulletin, including any construction activities, truck routes, and deliveries that may impact students on campus or walking to school. The bulletin shall include a phone number and contact person at Saint John's. Prior to the commencement of Phase Two construction, Saint John's shall submit the public mformatlon program to the Planning Director for review and approval · Exhibit K, Phase Two, modify the first "bullet" pOint on page K-39 . Prior to occupancy of any Phase Two buildings, Saint John's will establish a recycling policy. The policy shall be submitted to, and coordinated with, the City's Director of EPWM, or such other person as the Director shall designate, and the Director's comments shall be considered In development of the final program. The program shall consider, at a minimum, all waste streams managed by Saint John's, the environmental consequences of decisions relative to recycling, and the cost effectiveness of the various recyclable waste streams and programs. Information shall be proVided to reSidents and employees of Phase Two bUildings about the recycling services In the area Buy-back centers and possible markets for recyclables In the area shall be IdentIfIed Recyclmg of glass, metal, paper, cardboard and other materials, to the maximum extent feasible, shall also be suggested to any sublessees In the PrOject · Exhibit K. Phase Two. modify the third "bullet" pOint on page K-39 . Prior to Issuance of a Technical City Permit for the construction of any bUilding or parking structure over which the City has permitting authOrity m Phase Two. Saint John's shall submIt an analYSIS to EPWM demonstrating 5 that the design of the proposed bUlldmg or parking structure will result In a minimum ten percent (10%) energy efficiency Increase over the life of the bUlldmg or parking structure above the requirements of Title 24 of the California Code of Regulations, to the extent such Increase can be Implemented on a cost-effective basIs measured over the life cycle of the bUilding or parking structure The provIsions ofthls mItigation shall not apply to Hv5pitCi: 8ui:diiigS buildings classified as Institutional (I) Occupancy. Saint John's shall, however, endeavor to meet these energy standards in the design of all new buildings In Phase Two, and in any future renovations and/or improvements to the buildings In Phase Two, and commits to performing a comprehensive analysIs ofthese buildings to identify all feasible energy efficiency energy opportunities for the project. · Exhibit K, Phase Two Sustainable Cities Condition, add a new "bullet" pomt to the end of the list on page K-39 · Saint John's shall cooperate with the City in evaluating energy supplies for use in facilities constructed In Phase Two. Saint John's shall participate In analysis, procurement, supply and distribution of energy supplies which may be produced, aggregated, bundled or in any other way developed by the City, except that Saint John's will not be required to compromise reliability of supply, effiCiency of its systems, or the cost effectiveness of its operations In making its energy procurement decisions, taking into conSideration the full environmental Impact of energy generation and procurement decisions. 6 TECHNICAL REVISIONS TO DEVELOPMENT AGREEMENT The following Development Agreement Sections are proposed for modification 1- ~ Failure by Saint John's to proceed with construction or Implementation of the Project or any bUildings or Improvements shall not result In any loss or diminution of development rights, except upon expiration of Samt John's vested rights pursuant to Sections 2 3 4 and 3 7 3.8 of thiS Agreement 2 2 2 8 An access area to and from Arizona Avenue exclusively for emergency vehicles and other vehicles utiliZing the emergency room services In the D&T Center ("Emergency Access"), conSlstmg of one separate ambulance entrance driveway, and an entry/exit driveway that will accommodate entry by non- ambulance vehicles and eXit by all vehicles The Emergency Access will contam a mmlmum of fifteen (15) parkmg spaces (mcludmg handicapped parking) In addition, the Emergency Access will contain an ambulance drop-off area which Will accommodate four ambulances In two tandem lanes which Will be covered by a canopy and screened from the publiC parking area The vIsibility of the public parking area Will be screened from Arizona Avenue by a landscape buffer and low screen wall that shall not exceed be a minimum of three (3) feet In height and a maximum of eight (8) feet in height measured from EXisting Grade 3 2 4 1 The preliminary stage of the development of Phase One shall consist of the followmg elements (a) the Maintenance FaCility shall be demolished and removed and (b) the New Central Plant. and Loading Dock and Service Building shall be constructed 4 24 2(d) DUring the first stage, a temporary entrance and eXit to and from Santa MOnica Boulevard and the Inpatient SUites and the D&T Center may be constructed by Samt John's ("Temporary Access") The Temporary Access shall proVide access to the Inpatient SUites and the D& T Center until the Entry Plaza IS constructed In the third stage of Phase One The curb cut for the driveway entrance to the Temporary Access shall be approximately forty (40) feet Wide and shall be located not less than one hundred fifty (150) feet from the curb Ime of the west SIde of Twenty-Third Street The Temporary Access shall be removed by Samt John's In accordance With Section 244 (d) Additionally, dUring the first stage Samt John's may construct an enclosed passageway ("Temporary Connection"), which shall proVide a covered walkway to connect the SOuth East WIng and the Inpatient SUites on a temporary baSIS until the D&T Center IS constructed In the second stage of Phase One The Temporary Connection may be constructed by Saint John's In order to faCilitate the contmued operations of Samt John's dUring the construction of the Phase One buildings and Improvements The Temporary Connection shall not exceed more 7 than a height of forty (40) feet and a width of eighteen (18) feet 5 25 1(a) The Inpatient SUites. D&T/Outpatlent, MRI Facility and Annex may be used for one or more of the following uses (I) hospital. medical and health care uses, Including without limitation, those specific uses listed In Exhibit "G" to thiS Agreement (collectively, "Hospital/Health Care"), and (II) accessory uses which are determined by the Planning Director to be necessary and customarily associated with, Hospital/Health Care uses. and which are not more disturbing or disruptive than such authorized uses 6 2 6 1 (a) The EXlstmg Site Map Identifies an area of the Campus Property as the "Exlstlng North Lawn", which IS located along portions of Arizona Avenue and Twentieth Street Prior to the destruction of the North Wing, the EXisting North Lawn consisted of approximately forty-one thousand three hundred (41,300) square feet The EXisting North Lawn area shall be i6configi...ii6d Cind iiii~io;;6d removed and replaced with the new North Lawn ('North Lawn') as a part of Phase One of the Project DraWing '0-1' of the Project Site Plan delineates the Feconflgured location the approved location of the North Lawn on the Campus Property ("North Lawn") The North Lawn shall be not less than forty-one thousand three hundred (41,300) square feet All portions of the North Lawn shall be publicly acceSSIble. Includmg without limitation, access from Twenty-Third Street In calculating the size of the North Lawn, all measurements shall be taken from the Intenor edge of the sidewalk to the exterior face of the building 7 Section 2 6 8 A screen wall shall be located on the portion of the North Campus adjacent to Arizona Avenue In order to screen the Loading Dock and any mechanical equipment, cooling towers and oxygen tanks The height of such screen wall shall be a maXiiliuili minimum of twenty-one (21) feet measured from EXIsting Grade A four (4) foot wide landscape area shall be located along the screen wall faCing Anzona Avenue ThiS landscape area shall be planted prior to use of the Service Area m compliance with the plans approved by the ARB Once planted. thiS landscape area shall be maintained for the term of the Agreement 8 Section 3 6 1 Prior to, or concurrent With, the filing by Saint John's of a Development ReView Application for the first bUilding or Improvement In the Project which It proposes to develop on the South Campus, Saint John's shall submit to the Planning Department a proposed master plan for the development of the South Campus ("Master Plan") The Master Plan shall establish the baSIC parameters gUIding the development of the South Campus, Including, Without limitation (a) bUIlding placement. (b) BUilding Height for all bUIldings. (c) setbacks forall buildings, (d) stepbacks for all bUildings. (e) parkmg (both subterranean and above-grade), (f) location of uses. (g) vehicular and pedestrian Circulation and (h) open space and (I) 8 phasing and timing of improvements (collectively, the .'Master Plan Elements") The proposed Master Plan shall also designate the EXisting BUildings and EXisting Parking Lots on the South Campus that shall be subject to demolition and removal In order to allow for the development of the new bUildings and Improvements In the Project that are In the proposed Master Plan The proposed Master Plan shall provide for a minimum of thirty-five percent (35%) open space on the South Campus In calculating the amount of open space on the South Campus, paved parking areas. driveways and Internal roadways shall not be Induded The Master Plan submitted by Saint John's to the Planning Department shall be consistent and In accordance With the proVIsions of thiS Agreement No Development ReView Permit for any bUilding or Improvement on the South Campus shall be Issued or approved prior to approval by the City of the Master Plan In accordance With thiS Section 3 6 No master plan shall be reqUired for the Phase Two bUildings located on the North Campus 9 Section 392 (d) The Parking Reduction Application shall be processed In accordance With Part 9 04 20 26 of the Zoning Ordinance. a copy of which IS Included as part of Exhibit 'F' The Planning DiicctOi Commission (or Planning COrTiiiii55iOii City Council on appeal) shall approve a reduction In the parking spaces that would otherwise be required pursuant to Section 39 1 If and to the extent the Planning Diiectoi Commission (or Planning Commission City Council on appeal) reasonably determine that the Parking Study. together With other credible Information presented to the Planning DiicctOi Commission (or Plannmg Commi55ioii City Council on appeal), demonstrates that parking demand for Phase Two bUildings subject to the Parking Reduction Application IS less than the parking that would be required by Section 3 9 1 In reviewing a Parking Reduction ApplicatIon, the Planning Diiectoi Commission (or P:aiiiiiii9 Commi55ioii City Council on appeal) shall also consider the extent to which the Parking Study demonstrates either a defiCit or surplus of parking for eXisting Phase Two bUildings 10 Section 396 In the event that Saint John's satisfies all or any portion of Its obligations under thiS Section 3 8 to provide the parking spaces reqUired for a particular bUilding In Phase Two which IS located on one or more Parcels on the Campus Property through the proVIsion of parking spaces which are located, In whole or In part, on one or more different Parcels on the Campus Property ("Subject Spaces"). Saint John's shall execute and record covenants In form and content reasonably satisfactory to the City to make the Subject Spaces available for the applicable bUilding (a) dUring the Teim of thiS Agiccmciit life ofthe building or (b) until Saint John's has adequately demonstrated that the Subject Spaces are no longer required to satisfy the obligations of Saint John's under thiS Section 3 9 With respect to a bUilding on separate parcels 11 Exhibit H 2 1 Pedestrian Access 9 2 1 Pedestrian Access. Pedestrian access to the Phase One bUildings on the North Campus Will occur at four five locatIons add 2.1.5: From 23fd Street to the Entry Plaza 12 Exhibit H 32 SignalizatIon As of the Effective Date. there IS a traffiC Signal for the EXisting Crosswalk Upon removal of the EXisting Crosswalk, this eXisting traffic Signal Will be removed and Will be replaced by the City With a new traffiC Signal located at the mgress dnveway of the Entry Plaza on Santa MOnica Boulevard ("New Signal") Samt John's shall pay the costs associated With the Installation of the New Signal and removal of the old Signals Saint John's may request addition of a second SIgnal to be located at the iilgi~SS egress driveway of the Entry Plaza on Santa MOnica Boulevard The City Will process such a request m accordance With ItS procedures then In effect The City retams dIscretion to approve. conditionally approve or deny any such request In the event that the City approves the additional Signal, Saint John's shall pay for the costs associated With the installation of the additional Signal 13 Exhibit K, Neighborhood Effects, p 7 24 The Emergency Access shall consist of one separate ambulance entrance dnveway, and an entry/exit dnveway that Will accommodate entry by non-ambulance vehicles and eXi5tiiig exiting by all vehicles The Emergency Access Will contain a minimum of fifteen parking spaces (Including handIcapped parking) In addition. the Emergency Access Will contam an ambulance drop-off area which Will accommodate four ambulances In two tandem lanes which Will be covered by a canopy and screened from the public parking area The VISIbility of the publiC parking area Will be screened from Anzona Avenue by a landscape buffer and a :ovv screen wall a minimum of 3 feet In height and a maximum of up to 8 feet as determined by the Director of Planning 14 Exhibit K, SpeCial Conditions p 23 40 The Arizona Avenue ServIce Area screen wall shall be a maXimum minimum of 21 feet measured from EXisting Grade A four foot WIde landscape area shall be located along the screen wall faCing Anzona Avenue ThIS landscape area shall be planted pnor to use of the Service Area Once planted. thIS landscape area shall be maintained for the term of the Development Agreement 10 Attachments A Development Agreement Section 1 7 and 1 8 Regarding Samt John's Community Benefit Plan and Saint John's Child Care Program 11 ATTACHMENT A 1.7 Saint John'$ Community Benefit Plan Dunng the entire term of this Agreement, Saint John's shall provide and financially support community programs and services and regularly assess these programs to ensure that It maintainS a community benefit plan that IS responsive to community needs. Saint John's commumty benefit plan shall be established and maintained in accordance with the following requirements: 1.7.1 Phase I of the Agreement 1.7.1 (a) General Communltv Benefit Plan ReaUlrements 1.7.1 (a)(l) Wlthm 12 months of the effective date of the Development Agreement and every 5 years thereafter, Saint John's shall adopt and Implement a written "Community BenefIt Plan" to gUide Saint John's allocation of resources in support of the health and well-being of the Santa MOnica community and Its residents. 1.7.1 (a)(lI) The "Community Benefit Plan" shall Include all program components reqUired by SB697, any successor legislation, or administrative regulations adopted thereto The Community Benefit Plan shall also assess, Without limitation, the health care needs of the follOWing: children, including students attending Santa Monica public schools; the Indigent, uninsured and under-Insured; seniors and persons With disabilities; women; the homeless. 1.7.1 (a)(llI) Saint John's shall maintain a minimum level of overall community benefit programming that places Saint John's In the upper quartile of all non-profit hospitals reporting to the State of California under 56697, or any successor legislation, unless the State has enacted community benefit measurement gUldelmes for establishing an acceptable mmimum level or levels of community benefit programs for hospitals reporting under 58 697 or successor legislation thereto. If the State has enacted these gUidelines, then Saint John's shall comply with these guidelines. 1.7.1 (aHlv) If at any time dUring the term of this Development Agreement, the State does not require reporting of community benefit programming for non-profit hospitals or does not rank non-profit hospitals based on the overall community benefit programming provided by these hospitals, Samt John's community benefit programming shall be established at a minimum level of $12 million, which IS equivalent to the value of Saint John's 1997 community benefit programming which it reported to the State pursuant to S8 697. This minimum level of community benefit programming shall be adjusted for inflation from the effective date of thiS Agreement based on the medical care services component within the Consumer Price Index ("C.P.1. "). 1.7.1 (a)(v) Within 90 days of the effective date of the Development Agreement, Saint John's shall appoint and convene an Advisory Committee which Includes, at a minimUm, representatives from the City of Santa Monica, the Santa MOnlca/Mahbu Unified School District, and non-profit human service providers funded by the City. This Committee shall be adVisory in nature and assist Saint John's dUring the development of the reqUired "Community Benefit Plan. 1.7.1 (b) Santa MonIca Communrty Access Plan 1.7.1(b)(l) The Community Benefit Plan shall Include a "Santa MOnica Community Access Plan n that clearly Identifies the recipient agencies. the dollar value, and the quantified level of service for the following categories: Proposed in-kind and cash support to local non-profit agencIes that serve Santa Monica residents; Proposed in-kind and cash support to the Santa MOnica Mallbu Unified School District; Proposed charitable medical and mental health services provided by Satnt John's directly to patients that are clients of and directly referred by local non-profIt organizations; Proposed charitable medical and mental health services provided by Saint John's directly to patients that are students and directly referred by the Santa Monica Mallbu Unified School District; Proposed free community services avaIlable to the general Santa Monica community that promote health education and preventative health services. 1.7.1 (b)(u) Saint John's shall submit the proposed "Santa MOnica Community Access Plan" to the City Manager for his/her approval prior to its inclusion In the Community Benefit Plan. The City shall give Its approval after ensunng that the minimum level of service has been maintained as established In Section 1.7.1 (b)llll). 1.7.1 (b)(lIl) The annual minimum level of services as described in the "Santa Monica Community Access Plan shall be eqUivalent to the dollar value of these services provided by Saint John's In 1997, which has been established at $618.000. This minimum level of services shall be subject to an annual adjustment based on the medical care services component within the Consumer Price Index ("C.P.1. ") 1.7.1 (b) (Iv) Saint John's shall submit an annual report to the City on the status of Implementing the "Santa MOnica Community Access Plan" which shall include the name of each organization supported, the type of services or programming provided, the dollar value of services, and the number and characteristics of individuals served for each organization. The report shall be submitted within 60 days of the completion of each 12-month reporting period. 1.7.1 (b)(v) Concurrent with Its submittal of Its annual Community Access Plan status report pursuant to 1.7.1 (b)(lv), Saint John's shall also submit a report to the City detailing the total dollar value of community services that Saint John's reported to the State for the reporting period pursuant to 58 697. or any successor legislation 1.7.1 (c) Minimum Levels of Support In evaluating compliance with any specified annual minimum level pursuant to this provIsion of the Development Agreement, the minimum level may be averaged over a five-year period. beginning with the effective date of the first "Community Benefit Plan." 1 . 7.2 Phase 2 of the Agreement 1.7.2(a) Samt John's shall submit to the City Council an amended Santa Monica Community Access Plan concurrently With the submittal of Its Phase II Master Plan application to the Planning Commission. 1.7.2(b) In addition to the requirements of Section 1.7.1(b), this plan shall ensure that Santa Monica residents who are unable to afford fees and memberships Will have access to Phase 11'5 communlty-onented facIlities, including but not limited to, the education and conference center, health and wellness facility and the overnight accommodatIons. 1.7.2(c) The Planning Commission shall not approve the Phase II Master Plan until an acceptable amended Santa MOnica Community Access Plan IS approved by the City Council. 1.8 Saint John'~ Child Care Program DUring the entire term of this Agreement, Saint John's shall provide a Child Care Program In accordance with the following reqUirements: 1.8.1 Phase 1 of the Agreement 1.8.1 (a) Program Caoacltv 1.8.1 (a)(I) Saint John's shall maintain Its existing child care capacity (as licensed by the State of California} of 84 full-day preschool spaces (nrequired level of service") or Its equivalent. 1.8.1 (aHii) An eqUivalent level of service shall be calculated as follows: 16 part- or full-day therapeutic pre-school spaces are equivalent to 28 full-time preschool spaces. 8 full-day infant/toddler spaces are equivalent to 14 full-day pre- school spaces, or as calculated based on State chlldcare licensing requirements (per square footage per slot). 1.8.1 (a)(lII) Within the required level of service, Saint John's shall provide 8 full-day infant/toddler spaces. Saint John's shall be responsible for making the necessary physical modifications to its chlldcare faCIlities to accommodate infants and toddlers, pursuant to State chlldcare licensing requirements. 1.8.1 (b) Proaram Ooeratlons 1.8.1 (b)(l) With the exception of the therapeutic pre- school program, the Child Care Program shall offer full-day programming for all remaining spaces. Current part-time preschool spaces shall be converted to fuH- day spaces through attrition. 1.8.1 (b)(lI) The minimum full day program shall be 11 hours per day, five days per week. Samt John's shall consider the coverage needs of its employees when establlshmg hours of operation. 1.8.1 (b)(lII) Samt John's child care program shall operate at a mmimum annual capacity of 85%, based on an average occupancy rate for each 1 2-month period. 1.8.1 (b}{Iv) Samt John's child care program shall meet all State child care and early education rules and regulations. In addition, Samt John's shall be in compliance with the National Academy of Early Childhood Programs accreditation standards for center-based programs, or comparable successor standards. 1.8.1 (c) Proaram Service Priorities For any available space, priority shall be given to: (1) children of Saint John's employees desIring full-time childcare, (2) children of SaInt John's employees desIring part.time care as long as that full-time space will be shared by that employee with another Saint John's employee desiring care for the remaining time for that space, (3) children of Santa Monica residents desiring full-time childcare, and (4) children of those working In Santa Monica desIring full-time care. 1.8.1 (d) Community Access and Affordabllltv 1.8.1 (d)(I) Saint John's shall conduct ongoing outreach to inform employees and the community about the hospital's child care program. 1.8.1 (dHii) Saint John's shall maintain a waIting list for those Interested In enrolling children In the child care program. 1.8.1 (dHiii) To ensure that Chlldcare spaces are accessible to lower Income employees and community members, Saint John's shall establish a Scholarship Fund and provide a minimum of $100,000 annually for scholarships for lower income families. First priority shall be given to Saint John's employees and second priOrity to Santa Monica residents. Scholarships shall be awarded based upon need uSing a sliding fee scale. The total scholarship amount shall increase annually according to any percentage Increase In program fees instituted for that year. 1.8.1 (dHiv) Saint John's shall cover the following costs and shall not pass through these costs to parents through program fees or to an outside operator, In the event Saint John's chooses to operate the chlldcare program through a contractor: facIlity rent, facIlity maintenance, linen service, children's meals, and administrative indirect costs. 1.8.1 (e) Employee Wages and Benefits Saint John's, or any contractor retained to provide the required chlldcare serVices, shall provide ItS child care employees WIth wage and benefit compensation that IS commensurate with comparable pOSitions of the Santa Monica Mallbu Unified School District. 1.8.1 (f) Child Care Implementation Plan 1.8.1 (f)(l) Samt John's shall submit a ChIld Care Implementation Plan to ensure compliance with the above requirements within six months of the effective date of the Development Agreement. 1.8.1 (f)(lI) The City Manager, or hIs/her designee, shall review and approve the Child Care Implementation Plan within one month of its submission to the City. 1.8.1.(f)(lII) The Child Care Program must be operational within 12 months of the Development Agreement effective date, and the reqUIrements of this Section 1.8.1 must be fully Implemented within 18 months of this date. 1.8.1{g} Annl)al Report 1.8.1 (g)(I) At the completion of the first 12-month penod of operation of the required child care program and for each 12-month penod throughout the term of this Agreement, Saint John's shall submIt an annual report to the City specifymg: 1} the number of total licensed spaces available by program component and the average occupancy rate for the year; 2) the number of Infant, toddlers and preschoolers served; 2) the number of children with special needs served by each program component; 3) the number of chIldren served by the required Scholarship Fund, including family Income; and the total dollar amount expended from the ScholarshIp Fund; 4) the number children of Saint John's employees served and the number using (a) part-day and (b) full-day schedules; 51 the number of Santa Monica residents and employees working In Santa Monica served; 6) the number and needs of those on the waiting list; 7) a lIst of In-kind services provided pursuant to thiS Agreement with certification that these costs were not passed through to parents by parent fees or to an outside operator, If contracted; 81 the salary schedule for Saint John's employees (or contractor's employees) working in the childcare program; and 91 significant trends or program changes. 1.8.1 (g)(lI) The annual report shall be submitted to the City within sixty days of the end of the reporting penod. The City shall review the report and respond to any requested program changes within sixty days of the submittal pursuant to Section 1.8.1 (h). 1.8.1 (h) Proaram Changes 1.8.1 (h)(l) Saint John's may Include, in the annual report, requests to make modifications to the reqUired childcare program based on changing chlldcare needs and demand for services. Such requests shall be accompanied by full documentation on the changing chlldcare needs and demand for services that led to the request. 1.8.1 (h)(lI) The City Manager, or his/her designee, shall review and approve, at hIs/her sole discretion, proposed program changes based on the follOWing crltena: 11 the proposal WIll address an unmet chlldcare need for Saint John's employees and/or Santa MOnica residents, 21 the proposal does not result in a gap In chlldcare services for infants and toddlers In the community, 31 the proposal does not supplant currently utilized community chlldcare resources, 41 the proposal Will not result in disruption to those currently being served, and 5) the proposal meets the reqUired level of service for 84 full-day preschool spaces or its equivalent as speCified in Section 1.8.1 (al. 1.8.2 Phase 2 of the Aareement 1.8.2(a) Proaram Caoacltv Pursuant to the requirements of this Section 1.8.2, Saint John's shall provide an expanded chlldcare program to address childcare needs generated by Phase II (North and South Campus) of thIs Development Agreement. 1.8.2(b) Proaram Ooeratlons 1.8.2(b)(l} Samt John's Phase II childcare program may be provided on or off the Saint John's campus; however it may not supplant currently utilized community chlldcare resources. 1.8.2(b){lI) The program shall meet all applicable State childcare and early education rules and regulations and shall be In compliance with accreditation standards of the National Academy of Early Childhood Programs for center-based programs or the National Family Child Care Association for In-home programs. or comparable successor standards. 1.8.2(bHiii) Enrollment pnonty shall be established In the following order for each available space: 1) children of Saint John's employees; 2) children of Santa Monica residents, and 3} children of those working In Santa MOnica. 1.8.2(c) Service ExoanSlon Saint John's shall consider Implementing programs that address specIal child care needs, such as care dunng evenings or non-tradItional child care hours; sick child care and any other identified need. 1.8.2(d) Community Acce$s and Affordabllltv 1.8.2{d)(I) Saint John's Phase II chlldcare program shall be broadly advertised through a comprehensive community outreach program to ItS employees and community members. 1.8.2{d){lI) Saint John's expanded childcare program shall Include a fee/scholarship structure that provides access by lower-Income employees and lower-income Santa Monica residents. 1.8.2(e) Child Care Implementation Plan 1.8.2(e)(i) Prior to submitting the Phase II Master Plan to the CIty, Samt John's shall retain a child care consultant With expertise In employer-related child care to conduct a study of projected childcare needs generated by Phase II facilities and uses and to develop recommendations on the best facIlity and program deSign for the Phase II chlldcare program. 1.8.2{e)(li) Saint John's shall submit the name and qualifications of the consultant, as well as the study methodology, to the City Manager, or his/her deSignee, for approval prior to retention of the consultant and initiation of the study. 1.8.2(e){lIl) Based on the results of the study, Saint John's shall submit to the City a proposed Phase II Child Care Implementation Plan and Schedule With ItS Phase II Master Plan for the South Campus. The Phase II Child Care Implementation Plan shall include, but not be limited to, the following: results of the reqUIred chlldcare needs study, Including employee and community childcare demand, scope of the Phase )I childcare program including the projected State licensed capacity and proposed average annual occupancy rate; program components Including numbers and ages of chIldren to be served; and hours and days of operation; staffing plan and general salary schedules and/or ranges; employee and community outreach program; fee/scholarship structure to ensure access by lower-Income employees and residents; proposed program faCIlities (including on-site and off-site components, If applicable); for onsite center-based faCIlitIes, the square footage and locatIon Within the Phase II Master Plan project area. For off-site faCilIties, Include a description of facilities to be used or developed and how their use will not supplant currently utIlized chlldcare resources. proposed service pnontles consistent With the requirements of this Development Agreement. Implementation schedule (including any proposed phaSing plan for chlldcare services] 1.8.2(e)(lv) The City Council shall review the proposed Child Care Implementation Plan. The Council's revIew shall include, but not be limited to, the extent to which: 1) the proposed program addresses the projected demand for chlldcare generated by all Phase II uses, 2) the community outreach program adequately Informs employees and residents of the program; 3) the proposed fee/scholarship structure addresses the need for access by lower-Income employees and residents, 4) the proposed program and facIlitIes meet State requirements and national accreditation standards, 5} the proposed program does not supplant currently utilized chlldcare resources, 6) the proposed implementation schedule is consistent with the Implementation of Phase II Master Plan. 1.8.2(e)(v) The Planning Commission shall not approve the Phase II Master Plan until an acceptable Child Care Implementation Plan is approved by the City Council. :sJ.cc