HomeMy WebLinkAbout02/19/2002, PH2 - ABANDONMENT OF DESERET PLACE, WEST OF CASA STREET. council i9-oz
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C I TY OF SAN L U Is 0 B I S P 0
FROM: Michael D. McCluskey, Director of Public Works
Prepared by: Jerry Kenny, Supervising Civil Engineer
SUBJECT: ABANDONMENT OF DESERET PLACE, WEST OF CASA STREET.
CAO RECOMMENDATION:
As recommended by the Planning Commission, adopt resolution to abandon Deseret
Place, subject to reservation of easements and conditions.
DISCUSSION:
The Council adopted Resolution No. 9277 (2002 Series) on January 8, 2002 [Attachment
4], which is a resolution of intention to abandon Deseret Place - west of Casa Street. The
resolution set the time and place of this hearing to consider the abandonment.
The January 8, 2002 Council agenda report [See report in Council Reading file] discussed
various issues regarding the abandonment and included the Planning Commission's
recommendation for approval (Planning Commission Resolution.No. 5318-01), subject to
reservation of and/or relocation of necessary easements for existing public utilities,
common driveway purposes, along with other conditions that were incorporated into the
resolution.
The Council added a provision for payment of $65,000 to the Housing Authority, as
compensation for the value of the abandoned right of way. These conditions are
prescribed in the final resolution of abandonment and must be met prior to effectiveness
and recordation of the final resolution. [Attachment 21
There are overhead wire utilities (Pacific Bell, Charter Cable TV and PG&E), which
must be relocated (via underground conduits) to accommodate a proposed realigned
driveway. The Gas Company stated they have no services or mains within the right of
way to be abandoned. The final abandonment resolution provides for reservation of
necessary easements and/or relocation provisions, to the satisfaction of the respective
private utilities and Public Works Director, prior to recordation of the resolution. Since
the exact alignments of the new utility company facilities are not yet determined, the
easement reservations will reflect either the existing alignment or realigned facilities,
prior to finalizing the abandonment, to the satisfaction of the respective utility companies
and the Public Works Director.
There are several parcels that comprise the project, including one that is owned by a
separate entity, but associated with the. Sierra Vista Hospital. In order to allow for the
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abandonment to occur, City regulations require a lot line adjustment and/or merger(s) to
accommodate the proposed development of the hospital expansion, separate medical
office building and the parldng structure. The details are yet to be resolved in.this regard.
Therefore, the final abandonment resolution includes a condition that this matter be met,
prior to its effectiveness and recordation, similar to the utility and common driveway
conditions.
Existing City regulations [per Resolution No. 5478 (1984 Series)], requires that any
abandonment conditions be met within one (1) year of adoption, or, upon expiration of an
approved project or tentative subdivision map, which incorporate the abandonment. The
final abandonment resolution contains wording to this effect.
This abandonment is categorically exempt from environmental review per City
Environmental Guidelines and the California Environmental Quality Act (CEQA),
Section 15301.
The required public notices have been completed, as prescribed in the referenced
Resolution of Intention. The City Council must now receive any public testimony and
then decide whether to approve,modify or deny the abandonment.
ALTERNATIVES:
Option 1: Conduct the public hearing and continue final action on abandonment
until any issues or other conditions deemed necessary by the City
Council are completed or otherwise resolved.
Option 2; Adopt a resolution to deny abandonment, if the Council finds that the
right of way is necessary for existing or future public street purposes.
(Attachment 3)
CONCURRENCES:
The Planning Commission recommends this action. The Community Development
Director and City Attorney concur with the recommendation.
FISCAL IMPACT: None.
ATTACHMENTS:
1 - Vicinity Map
2 -Draft final resolution of abandonment
3 -Draft resolution to deny abandonment
4-Resolution No. 9277 (2002 Series)
5 —Planning Commission minutes—August 22, 2001
January 8, 2002 agenda report is in the City Council reading file.
L/Council Agenda reports/CC Report—Deseret Place Abandonment
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ATTACHMENT 2
Recording requested by ,
and when recorded mail to:
City Clerk
990 Palm Street
San Luis Obispo, CA 93401
RESOLUTION NO. (2002 Series)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
FINDING AND DETERMINING THAT DESERET PLACE,WEST OF CASA
STREET,IS UNNECESSARY FOR PRESENT OR PROSPECTIVE PUBLIC STREET
PURPOSES AND ORDERING ITS ABANDONMENT,SUBJECT TO RESERVATION
OF SPECIFIC EASEMENTS AND OTHER PRESCRIBED CONDITIONS.
BE IT RESOLVED by the Council of the City of San Luis Obispo as follows:
SECTION 1. In accordance with the public hearing duly held on February 19, 2002, pursuant
to Section 8300 et seq. of the California StreetsandHighways Code and a finding of General
Plan consistency, that this Council finds and determines that Deseret Place, west of Casa Street,
as described and shown on the map marked"Exhibit A", attached hereto and incorporated herein,
is not necessary for present or future public street purposes.
SECTION 2. The City has fee title to the subject right of way being abandoned. The City
Council has determined that this subject parcel of right of way is surplus property, pursuant to
the City Charter(Section 906), the California Government Code (Sections 54222 and 65402) and
procedures of the City's Property Management Manual. The City Council also determined that
the abandoned right of way should be conveyed only to the adjacent property owner(s), due to its
size, shape and location, subject to acceptable compensation. The compensation has been
established to be the payment of$65,000 to the Housing Authority of San Luis Obispo, as partial
compensation for the loss of three (3) residences to accomplish the ultimate expansion of the
Sierra Vista Hospital complex.
ATTACHMENT 2
Resolution No. (2002 Series)
Page Two
SECTION 3. This Council hereby orders the abandonment of said right-of-way subject to:
A: Reservation of easements for public utilities, as follows:
"Reserving, however, to Pacific Gas and Electric Company, Pacific Bell and
Charter Communications, the right from time to time to install, maintain, repair,
operate, replace, remove and renew lines of wires, poles and other structures,
equipment and fixtures both above and underground for the operation of said facilities
in said public way."
The final alignment.and configuration of this easement is subject to modification
to accommodate a proposed new driveway, to the satisfaction of the respective utility
companies and the Public Works Director. The Public Works Director is hereby
authorized to make any necessary adjustments on "Exhibit A"to accommodate this
change.
B. The applicant shall pay sixty-five thousand dollars ($65,000) to the Housing Authority of
San Luis Obispo to compensate for the value of the right of way. This payment is partial
compensation for the loss of three (3) residences to be demolished, as part of proposed
expansion of the Sierra Vista Hospital complex.
C. A lot line adjustment or lot merger shall occur prior to recordation of a final abandonment
resolution to eliminate any landlocked parcels, to the satisfaction of the Public Works
Director and Community Development Director. If a lot line adjustment or lot merger is
not possible, an access easement may be considered, to the satisfaction of the Public
Works.
a --s
ATTACHMENT 2
Resolution No. (2002 Series)
Page Three
D. The public water main in Deseret Place shall become a private main, along with any fire
hydrants. An appropriate backflow devise, valves or other necessary appurtenances shall
be installed to City and State standards and any existing water services and meters within
Deseret Place must be relocated to the Casa Street frontage, to the satisfaction of the
Public Works Director and Utilities Director.
E. The storm drain easement (between Deseret Place and Stenner Creek) shall be
quitclaimed by the City. The storm drain system shall become the responsibility of the
property owner.
F. Street lighting within the abandoned street shall be private and the property owner must
make provisions to assume the energy costs from Pacific Gas and Electric Company.
G. The existing parking and driveway easement and agreement between the existing medical
office building on Casa Street, Sierra Vista Hospital and the proposed new parcels must
be reviewed by City staff to evaluate necessary revisions necessary as a result of this
abandonment.
H. Modifications to existing frontage improvements shall be required along Casa Street. A
"street-type" entrance is acceptable, particularly if the driveway is to remain the
"emergency entrance"; otherwise, a driveway ramp or"alley-type" entrance, sidewalk and
11
curb ramps may be installed, to the satisfaction of the Public Works Director.
1. The public waterline within the Deseret Place R/W shall be abandoned at the mainline in
Casa Street, to the satisfaction of the Utilities Director.
J. The applicant is required to submit an alternative emergency vehicle access plan to the
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ATTACHMENT 2
Resolution No. (2002 Series) J
Page Four
K. Fire Department for approval, prior to removal of the driveway and/or the effectiveness
and recordation of this resolution, since the fire department and ambulance vehicles
currently use Deseret Place as the primary access to the hospital emergency room.
L. The existing fire hydrant at the end of Deseret Place shall be relocated to a location as
approved by the Fire and Utilities Departments.
M. Recordation of a 20 ft. wide (minimum) common driveway easement agreement which
provides for common driveway access in perpetuity to existing parcels (currently served
by the Deseret Place right of way) and proposed parcels, to the satisfaction of the
Community Development Director.
N. Item C must be met within one (1) year of this date. Otherwise,this resolution will
expire and be null and void.
SECTION 4. Upon notification from the Director of Public Works to the City Clerk that the
conditions prescribed in Section 3 have been met, the City Clerk shall cause a certified copy of
this Resolution of Abandonment, duly attested under the seal of the City, to be recorded in the
Office of the San Luis Obispo County Recorder.
On motion of , seconded by and
on the following roll call vote,
AYES:
NOES.
ABSENT:
a -7
ATTACHMENT 2
Resolution No. (2002 Series)
Page Five
the foregoing Resolution was passed and adopted this day of 12002.
MAYOR Allen K. Settle
ATTEST:
CITY CLERK Lee Price
APPROVED AS TO FORM:
XfTOkNEf Jef#y G. Jorgensen
I:/Council Agenda Reports/CC report—Deseret Place Abandonment
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DESERET PLACE ABANDONMENT
LEGAL DESCRIPTION �Tr
e.
All of Deseret Place,as per that certain
quitclaim deed,recorded per Document
No. 1844 on January 22, 1971 in Volume y
1602 at Page 718 of Official Records,
in the office of the San Luis Obispo County
Recorder, State of California and as shown
a
on that certain Parcel Map recorded in Book
41 of Parcel maps at Page 1, in the office of
the said County Recorder.
CIS/ Of "Exhibit A"
A San LUIS OBI SPO DESERET PLACE
Department of Community Development ABANDONMENT
990 Palm Street/Post Office Box 321• San Luis Obispo.CA 93406 Feb. 19, 2002 JK p?—
OATA"IMT NOW
-' ATTACHMENT 3
RESOLUTION NO. (2002 Series)
A RESOLUTION OF THE COUNCIL OF THE CITY OF SAN LUIS OBISPO
FINDING AND DETERMINING THAT DESERET PLACE IS NECESSARY FOR
PRESENT OR PROSPECTIVE PUBLIC STREET PURPOSES AND DENYING ITS
ABANDONMENT.
BE IT RESOLVED by the Council of the City of San Luis Obispo as follows:
SECTION 1. In accordance with the public hearing duly held on February 19, 2002,pursuant
to Section 8300 et seq. of the California Streets and Highways Code, this Council finds and
determines that Deseret Place, as described and shown on the map marked Exhibit "A", attached
hereto and incorporated herein, is necessary for present and future public street purposes.
SECTION 2. This Council hereby denies abandonment of said right-of-way.
On motion of seconded by and on the following roll call vote,
AYES:
NOES:
ABSENT:
the foregoing Resolution was passed and adopted this_day of 2002.
MAYOR Allen K. Settle
ATTEST: APPROVED AS TO FORM:
CITY CLERK Lee Price MOP#trefj#y G. Jorgensen
I:/Council Agenda Reports/Deseret Place Abandonment denial resolution
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ATTACHMENT 4
RESOLUTION NO. 9277 (2002 Series)
CITY OF SAN LUIS OBISPO CITY COUNCIL RESOLUTION OF
INTENTION TO ABANDON THE DESERET PLACE STREET
RIGHT-OF-WAY, BETWEEN CASA STREET AND ITS
WESTERLY TERMINUS (ABAN 45-01)
WHEREAS, the City of San Luis Obispo Planning Commission conducted a
regular public hearing on August 22, 2001, for the purpose of making a General Plan
determination and formulating a recommendation to the City Council on a request for
abandonment of the Deseret Place R/W between Casa Street and its westerly terminus;
WHEREAS, a title report prepared by First American Title Insurance Company
shows that the City of San Luis Obispo has fee ownership of land underlying the Deseret
Place Street R/W, and the City has received a request to quitclaim its rights to said
property; and
WHEREAS,the disposition of City-owned property_must be done in accordance
with the City Charter(Section 906), the California Government Code (Sections 54222.
and 65402) and the procedures of the City's Property Management Manual; and
WHEREAS, the City Planning Commission found that the proposed right-of-way
abandonment was consistent with the City's General Plan and Property Management
Manual, and recommended that the City Council approve the abandonment,based on .. .
findings and subject to conditions as indicated in Planning Commission Resolution,
incorporated herein by reference;
WHEREAS, the City Council conducted a regular public hearing on October 16,
2001; for the purpose of setting a date to hear the abandonment of the Deseret Place RAV
between Casa Street and its westerly terminus;
WHEREAS, the City Council continued the item to.a date uncertain, for the
purpose of resolving the compensation instrument for the proposed abandonment;
WHEREAS, the City Council conducted a regular public hearing on January 8,
2002, for the purpose of setting a date to hear the abandonment of the Deseret Place R/W
between Casa Street and its westerly terminus;
NOW,THEREFORE,BE IT RESOLVED, by the:City Council of the City of
San Luis Obispo as follows:
SECTION 1. Action -Intention to Abandon. It is the intention of the City of San.
Luis Obispo to abandon the above-referenced public right-of-ways as shown on the map
marked Exhibit "A", attached hereto and incorporated herein by reference, pursuant to
R 9277
ATTACHMENT 4
City Council Resolution No. 9277 (2002 Series)
Page 2
Section 8300 et.seq. of the State of California Streets and Highways Code, and that the
abandonment shall be based on the following findings, and subject to the following
conditions:
Findings:
Right-of-Way Abandonment Findings
1. The proposed right-of-way abandonment is consistent with the General plan because it
is no longer needed for public purposes.
2. A payment of$65,000 to the Housing Authority as compensation for the property is
consistent with the City's property Management Manual.
3. The right-of-way abandonment will benefit the general public by eliminating the City's
costs for maintaining pavement and infrastructure within the R/W.
4. The proposed right-of-way abandonment is categorically exempt from environmental
review under Section 15301 of the California Environmental Quality Act.
Disposal of Surplus Property.Findings
5. That portion of the right-of-way owned by the City of San Luis Obispo,is surplus
property and is no longer needed for public purposes, and disposal of said property is
consistent with the City's General Plan.
6. This City-owned property is not suitable for development of public facilities or
affordable housing given its relative small size and irregular shape.
7. Disposition of the surplus property is exempt from the California Environmental
Quality Act.
Conditions:
1. The applicant shall work with the Housing Authority and the City to establish a .
compensatory value for the right of way. The compensation to consist of$65,000
shall be paid to the Housing Authority prior to recordation of-final abandonment
resolution.
2. Reservation of easements for existing public utilities shall be required, to the
satisfaction of the respective utility companies, along with any revisions to those
facilities as a result of re-development. Specific details will be determined during the
abandonment process, prior to adoption of a final abandonment resolution by the City
Council.
City Council Resolution No. 9277 (2002 Series) ATTACHMENT 4
Page 3
3. A lot line adjustment or lot merger shall occur prior to recordation of a final
abandonment resolution to eliminate landlocked parcels to the satisfaction of the
Public Works and Community Development Director. If a lot line adjustment or lot
merger is not possible, an access easement may be considered to the satisfaction of
the Public Works.
4. The public water main in Deseret Place shall become a private main, along with the
fire hydrants. An appropriate backflow devise, valves or other necessary
appurtenances shall be installed to City and State standards and any water services
and meters within the street must be relocated to the Casa Street right of way, to the
satisfaction of the Public Works and Utilities Directors.
5. The existing storm drain easement and pipe system between Deseret Place and
Stenner Creek shall be quitclaimed by the City and maintained by the property owner.
6. Streetlights within the abandoned street shall be private and the property owner must
assume the energy costs by application to PG&E..
7. Existing parking and driveway easement/agreement must be reviewed to determine if
any revisions would be necessary as a result of abandonment. (e.g., if a common
driveway and/or private utility easements are necessary within the abandoned Deseret
Place R/W, etc.)
8. Modifications to existing frontage improvements shall be required along Casa Street.
A "street-type"entrance is acceptable if this is to remain as the emergency entrance;
otherwise, a driveway ramp or"alley-type" entrance, sidewalk and curb ramps must
be installed, to the satisfaction of the Public Works Director.
9. The public waterline within the Deseret Place R/W shall be abandoned at the mainline
in Casa Street.
10. Prior to the issuance of a demolition permit the applicant will be required to submit
an altemative emergency vehicle access plan to the Fire Department for approval. Fire
and ambulance vehicles currently use Deseret Place as the primary access to the
hospital emergency room..
The existing fire hydrant at the end of Deseret Place shall be relocated to a location as
approved by the Fire and Utilities Departments.
943
i ATTACHMENT 4
City Council Resoluaon No. 9277 (2002 Series)
Page 4
SECTION 2. Copies of the map showing the particulars of the proposed
abandonment are on file in the office of the City Clerk, at 990 Palm Street.
SECTION 3. Tuesday, February 19, 2002, at 7:00 p.m. in the Council Chamber
of the City Hall, 990 Palm Street, San Luis Obispo, California is the time and place
set for hearing all persons interested in or objecting to the proposed abandonment,
which time is more than fifteen (15) days from the passage of this resolution.
SECTION 4. This resolution, together with the ayes and noes, shall be published
once in full at least ten (10) days before the public hearing on the proposed street
right-of-way abandonment, in The Tribune, a newspaper published and circulated in
this city.
SECTION 5. The City Engineer shall post at least three(3) notices of the
proposed abandonment in prominent locations near the portion of the street right-of-
way to be abandoned at least fourteen (14) days before the date set for the hearing in
accordance with Section 8322 of the Streets and Highways Code.
SECTION 6. The City Engineer shall notify utility companies affected by the
proposed abandonment within ten (10) days after adoption of the Resolution of
Intention in accordance with Section 8347 of the Streets and Highways code.
Upon motion of Council Member Mulholland, seconded by Vice Mayor Marx,
and on the following roll call vote:
AYES: Council Members Ewan, Mulholland, Schwartz, Vice Mayor
Marx, and Mayor Settle
NOES: None
ABSENT: None
The foregoing resolution was passed and adopted this 8th day of Janu 2002.
/yat.--'
Mayor Allen Settle
ATTE
City Clerk Lee Price
APPROVED AS TO FORM:
ity toi y J rey . Jorgensen
ATTAGHMENT4
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- ATTACNINENT ' 5
SAN LUIS OBISPO
PLANNING COMMISSION MINUTES
August 22, 2001
CALL TO ORDER/PLEDGE OF ALLEGIANCE:
The San Luis Obispo Planning Commission was call to order at 7:15 p.m. on
Wednesday, August 22, 2001, in the City Hall Council Chamber, 990 Palm Street, San
Luis Obispo, California.
ROLL CALL:
Present: Commissioners James Caruso, Orval Osborne, Alice Loh, Jim Aiken,
Michael Boswell, and Chairman Stephen Peterson.
Absent: Commr. Allan Cooper.
Staff: Recording Secretary Irene Pierce, Deputy Community Development
Director Ron Whisenand, Associate Planner John Shoals, Assistant City
Attorney Gilbert Truillijo, Community Development Director John
Mandeville.
ACCEPTANCE OF THE AGENDA
The agenda was accepted as presented.
APPROVAL OF THE MINUTES
The Minutes of June 13, 2001, were approved as presented.
PUBLIC COMMENT ON NON-AGENDA ITEMS
There were no public comments made.
PUBLIC HEARINGS:
1. Deseret Place. ABAN 45-01; Request to abandon Deseret Place as a public
street to allow additional parking for Sierra Vista Hospital; Sierra Vista Applicant
Associate Planner John Shoals presented the staff report and recommended
abandonment of the Deseret Place right-of-way between Casa Street and its westerly
terminus, finding that the right-of-way abandonment is consistent with the general plan,
and recommended the Planning Commission find that the city-owned land underlying
the right-of-way is surplus property and recommend to.the City Council, authorization of
its sale or exchange in accordance with property management procedures.
Vice-Chairwoman Loh asked for a clarification on the infrastructure underneath the cul-
de-sac. She questioned ownership of water main from Casa Street and the other water
main belonging to the Hospital.
;?-l�b
( ATTACHMENT .5
Planning Commission Minutes
August 22, 2001
Page 2
Associate Planner Shoals stated Public Works is in concurrence with the request
provided the utilities within Deseret Place become privately owned, the water main is
abandoned at Casa Street, and that anything within this former right-of-way be under
private ownership and maintenance.
Vice-Chairwoman Loh asked if the same thing would apply to the Fire Department's
outlets, and asked if they would be moved closer to Casa Street..
Associate Planner Shoals stated that is correct.
Commr. Caruso asked what the distance is from Stenner Creek to the end of the cul-de-
sac.
Commr. Caruso asked how excess City property is disposed of and if this action is
acted on at the City Council level.
Associate Planner Shoals replied that the City Council would have the decision of
whether they direct staff to negotiate with applicant or if they follow the full process as
outlined in the staff report.
Mr. Hollander replied that they are in full agreement with the conditions as they are
written.
Commr. Caruso stated he does not like the idea of negotiating with one parry to sell
property.
Chairman Peterson asked about the zoning of the surrounding parcels.
There were no further comments or questions and the public comment session was
opened.
.PUBLIC COMMENT:
John Knight, R.R.M. Design Group, and representing Sierra Vista Hospital explained
that they are in the process of developing the larger master plan for the property. He
stated they will be asking the City Council to abandon the street so they have first right
to get the property back. He stated that they will be coming back with a master plan for
Commission so they will have an opportunity to review it as a future approval. He asked
that Commission support the staff recommendation.
John Hollander, Tennant Health Systems, commented that parking, doctor, and office
space is at a premium and this will allow them to correct some of the problems that they
are experiencing. He stated that they will be coming back to the Commission with a
master plan proposal to show more of what this project will do to solve the parking
crisis.
Vice-Chairwoman Loh asked if they agreed with staff's findings and recommended
conditions of approval.
a- ►
Planning Commission Minutes ATTACHMENT .5
August 22, 2001
Page 3
Mr. Hollander replied that they are in full agreement with the conditions as they are
written.
Seeing no further speakers come forward, the public comment session was closed.
COMMISSION COMMENT:
Vice-Chairwoman Loh moved to recommend the City Council approve abandonment of
Deseret Place right-of-way and authorize initiation of proceedings for the disposal of the
City owned property and the right-of-way, based on findings and subject to conditions.
The motion was seconded by Commissioner Osborne.
Commr. Aiken asked to amend the motion to allow an additional statement under
condition (2) that would allow for the option of providing an access easement to the lot
that would not be accessible and it.would actually be landlocked.
Vice-Chairwoman Loh noted the merger will require approval of the Public Works
Director and the Community Development Director.
Deputy Development Director Whisenand stated that staff would not have a problem
with that being added. He stated that after looking at this property, a lot-line adjustment
is probably going to be proposed.
Commr. Osborne stated that he supports that as an alternative.
The motion maker and the seconder agreed to amendment from Commissioner Aiken.
AYES: Commrs. Loh, Osborne, Boswell, Caruso, Aiken, and Peterson
NOES: None.
ABESENT: Commissioner Cooper
REFFRAIN: None.
The motion carried 6-0.
BUSINESS ITEM:
2. Cal Poly: Presentation by Cal Poly representativ d faculty/staff housing
project.
Deputy Development Director Ronald W ' enan.d stated that Cal Poly is a superior
agency and is not under the junsdi ' n of City or County. They have asked for the
opportunity to present their pro sal to the Planning Commission, and are requesting
input on ways to make the' roject better.
Linda Dalton, P ., AICP, Vice Provost for Institutional Planning at Cal Poly, gave a
presentatio the Commission. She stated that they have a particular housing need at
Cal P ecause the lack of affordable housing, and the lack of housing are affecting
02/19/02 13:52 FAX 5106631625 CNA N OAKLAND MEETING AGEIMK2/003
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February 9, 2002 1 ❑ 9C RNO Dlq
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The Honc -able Mayor Allen Cl wog DIA
City of Sx, i Luis Obispo
990 Palm Street RECEIVED
San Luis 1 )bispo, CA 93401-3249
FEB 19 20091
- - ..-RE.Ager da-3tem,*45-01 -=StreetAbandenment of Deseret Place--- SLO CITY COUNCIL -
Dear Ma} 3r Allen:
Registers .Nurses and other health care workers have voiced concerns about the City's planned
action to ; bandon Deseret Street west of Casa Street after reading the posted notices for the
public he; ring set for tonight. This letter serves to outline these concerns.
The Calif -mia Nurses Association does not oppose Tenet's plan to add new parking to the Sierra
Vista can: Sus. However, we do not agree that the City of San Luis Obispo should abandon
Deseret P ace under the currently proposed method.Here's why:
• Tt let Healthcare Corporation is a large, for-profit hospital corporation with more than
$l 1 billion in operating revenue. THC has posted more than $700 million in net profits
in he past year.
• Te let benefited from increased Medicare spending and renegotiating managed care
co m-acts(per A.J. Rice,Merrill Lynch analyst).
• Tt tet stands to benefit from"significant increases" it negotiated in managed care
co tti=ts through fiscal 2003 and from a shift to acute care patients. The higher fees
:gitals pharge for acute care more than offset the higher labor costs for such services.
A] hough staff costs rose by S 170 million in fiscal second quarter from a year ,earlier, " ' -
lal or costs fell as a percentage of revenues to 38.3 percent from 38.8 percent(per
Tf tet Chief Operating Officer Thomas Mackey)-
Pa ient admissions at facilities open for more than one year increased 2.3 percent,but net
in patient revenue per admission rose by 14.9 percent as a result of concentrating on
th. most profitable services.
• Dt bt refinancing will save Tenet millions more in 2002.
Clearly, T :net Healthcare Corporation does not need additional public assistance in acquiring
more asse s such as Deseret Place.
In additio y nurses have reported that uninsured or self-pay patients who present for diagnostic
tests are f -quently overcharged by 400% or 500% of the normal and customary charges when
0 CNA OAKLAND ❑CNA SACRAMEN-1170 ❑CNA SAN JOSE CNA FRESNO ❑CNA SANTA MONTCA ❑CNA SAN DIEGO
HEAMOARTL-RS 1107 90"Streer,Ste 900 101 Rax Street 12.5 E.Barstow,Ste 112 425 War Broadway,Ste 111 .3160 Camino del Rio South
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Oakland,CA 94612 (916) 416-5021 (408)920.0290 (559)248.1948 (618)240-1900 (619) 516-4917
(.5t 0) 273-2200 Fax:(916)446.6319 Fax:(408)920-0362 Fax;(559)248-1940 Fax:(318)2410-8336 Fu: (619)516-4922
Fax:(510)663.1625 —
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..003/003
. � I
compared o its competitors. Similar allegations were reported in the media recently due to a
lawsuit fil d in Orange County. With the potential closure of San Luis Obispo's county hospital,
Tenet's tre ument of uninsured patients deserves more scrutiny.
Municipal governments do not have much authority when it comes to health care policy or
policing o rporate behavior.Planning and land use,however, are areas where the municipal
govemme.. s does have significant leverage over its resident corporations. We believe that the
City can a Ld should carefully consider its role in allowing Tenet to expand and pursue its Master
Plan.
Tenet's pri posed plan, if approved,will result in the net loss of four residential units (three are
currently( ecupied)that could be in violation of City policy. With housing at a premium,we
believe the t Tenet should reimburse the Housing Authority for more than the$75,000 offered by
Teaet's rel resentative. Why should the taxpayers of the City let the loss.of these units go for . .. . _... . _
such a lo-a price?
The applit int also seeks exemptions to the 25'building height limit, rezoning the residential lots
from R-4. 3 0 and additional general plan amendments. The issue of abandoning Deseret Place
is simply i ie next step in Tenet's expansion plan. We have concerns about these aspects of their
plan and v ill comment as these applications proceed.
The road t ght of way has been "valued" at$65,000 by the Housing Authority. Even given the
property's .ocation, size and shape,we believe that market value for 18,000 square feet of land
near the C d Poly campus is certainly greater than$65,000. The City's Property Management
manual st: tes, "Right-of-Way that has been purchased in fee will be sold at market value." While
the applic, at may argue that it deserves special treatment because the right-of-way was not
purchased in fee by the City but granted by its prior owner, the PMM does not preclude the
City from selling the right-of-way at market value.
The CNA -upports additional parking for Sierra Vista patients and its employees. We believe
that Tenet :an afford to pay market value for Deseret Place and the City should have an
independe it appraisal of the land's value.
— Very Tail :Yoius;
Kevin Rei ly,RN
Communi y Organizer
Richard Schmidt V 544-4247 - RIEL I INU (v52b"mAUtWNA
TE -1 Q-02,ITEM # t-r7- Z
RICHARD SCHMIDT, Architect
112 Broad Street, San Luis Obispo, CA 93405 (805) 544-4247
February 6, 2002
Re: Looking for Cheap Land ' st like Sierra Vista Hospital)
City Council WUNCIL ❑ CDD DIR
City of San Luis Obispo �( AO lo I.= ❑❑ FINN DIR
990 Palm Street ORNEY IRIPW DiR
San Luis Obispo, CA 93401 i} CHIEF
�RK/ORIG ❑ POLICE CHF
❑ iEAP4 ❑ REC DIR
Dear Council Members: ❑ uTIL DIR
❑ HR DIR
I've been wanting to develop some nice affordable housing Inle city, but with land
prices the way they are, it seems impossible. Once I paid through the nose for a piece
of land, my budget would be gone.
Today, while walking home, I saw the public notice posted on Deseret Street, and
stopped -- as always when I see these pearls -- to read it. It says the Council's about to
abandon Deseret Street to Sierra Vista Hospital. The area being abandoned is stated to
be more than 18,000 square feet, and the price $65,000.
I started calculating. 18,000 square feet is three R-1 lots. That comes out to just over
$20,000 per lot, a price unseen in this city for at least the last 25 years. Current market
value would be $400,000 or upwards for that quantity of land.
So, it seems the city is able to offer Sierra Vista a really good deal.
And that got me thinking: Maybe the city has another 18,000 square foot parcel it would
like to sell me for a similar bargain price so I can realize my dream of providing nice,
affordable places for people to live.
So, please tell me how I can get a deal like this. I promise you'll get something really
nice in return.
Sincerely,
Richard Schmidt
cc Ken Hampian, CAO
F
ED
2002
UNCIL