AGENDA REPORT
TO: Jestin D. Johnson, City Administrator FROM: Ashleigh Kanat, Director, Economic & Workforce
Development Department
SUBJECT: UCSF Benioff Children’s Hospital
Oakland Interim Helistop Lease
DATE: November 15, 2024
City Administrator Approval Date:
RECOMMENDATION
Staff Recommends That The City Council Adopt An Ordinance Authorizing The City Administrator To Negotiate and Execute A Lease Agreement With The Children’s Hospital & Research Center At Oakland, A California Nonprofit Public Benefit Corporation, DBA UCSF Benioff Children’s Hospital Oakland, Of The 8.4-Acre Property Located At 101 Admiral Robert Toney Way At The Former Oakland Army Base For A Temporary Helipad/Helistop For Emergency Transportation Services For An Approximately Four Year Term With Rent In The Amount Of $5,000 Per Month During The Pre-Construction Phase And $20,691 Per Month Thereafter; And Adopting California Environmental Quality Act Findings
EXECUTIVE SUMMARY
Staff is recommending that the City Council adopt the proposed ordinance that would authorize the City Administrator to execute a lease agreement between the City of Oakland (City) and Children’s Hospital & Research Center at Oakland, a California nonprofit public benefit corporation, dba UCSF Benioff Children’s Hospital Oakland (BCH Oakland), for construction and operation of a temporary emergency services helipad/helistop at the City-owned property located at 101 Admiral Robert Toney Way (Property) in the North Gateway area of the former Oakland Army Base (OAB). BCH Oakland is renovating its children’s hospital in North Oakland, which will temporarily displace an existing helipad/helistop used to transport pediatric patients requiring emergency or trauma care from across Oakland and Northern California. The recommended action would allow BCH Oakland to locate a temporary helipad/helistop at the Property during this renovation period to ensure continuity of services to this vulnerable population. It would generate nearly $21,000 per month ($250,000 per year) and relieve the City of property management expenses during the lease term.
City Council
December 3, 2024
Jestin Johnson (Nov 21, 2024 23:09 PST)
Nov 21, 2024
Jestin D. Johnson, City Administrator
Subject: UCSF Benioff Children’s Hospital Oakland Interim Helistop Lease Date: November 15, 2024 Page 2
City Council
December 3, 2024
BACKGROUND / LEGISLATIVE HISTORY
UCSF Benioff Children’s Hospital Oakland
BCH Oakland and its associated clinics and programs throughout the region provide vital, world class care to children and their families. A pediatric safety net hospital and Level 1 trauma center, BCH Oakland has served children and their families in Oakland and beyond for more than a century. It consistently ranks among the leading children’s hospitals in the nation. In addition to inpatient hospital stays, emergency room services, and outpatient services, BCH Oakland also supports more than 50 pediatric specialty clinics.
BCH Oakland maintains the highest level, Level I, Pediatric Trauma Center designation from the American College of Surgeons, one of only six hospitals in California offering the level of comprehensive care that merits this designation. Most major trauma victims in Contra Costa and Alameda Counties, including in Oakland, under age 14 are brought to the Emergency Department at BCH Oakland, along with critically injured children across Northern California and from as far away as Nevada.
According to BCH Oakland, Alameda County and Contra Costa County are projected to experience double-digit population gains over the next several decades, generating even greater demand for pediatric, teen, and young adult health services and increasing pressure on an already distressed and disjointed regional care infrastructure.
New Hospital Building and Helipad/Helistop
BCH Oakland has begun a modernization project that will include a new $1.49 billion hospital building on its North Oakland campus (Hospital). Modernizing BCH Oakland’s facilities is essential to meeting the healthcare needs of the region’s children. According to BCH Oakland, the modernization project will enable world-class programs for Bay Area children, including:
• The finest pediatric trauma center in California with an expanded and modernized emergency room with dedicated resources for trauma.
• Expanded in-patient bed capacity provides resources to meet the growing needs of the behavioral health crisis for children.
• Expanded and modernized operating rooms supporting the latest technology and care for cardiovascular services, neurosurgery, cancer, and orthopedic services. • Expanded Intensive Care Unit, medical, and behavioral health bed capacity. • Improved dedicated space for patient and family support.
The modernization project will enable BCH Oakland to grow into a comprehensive children’s health system that can support the health of the community for decades to come. A critical part of the healthcare delivery system is a new helistop at the Hospital, which enables transport of those patients requiring emergency or trauma care.
The UC Regents approved the modernization project and its associated environmental impact report in July 2024.
Jestin D. Johnson, City Administrator
Subject: UCSF Benioff Children’s Hospital Oakland Interim Helistop Lease Date: November 15, 2024 Page 3
City Council
December 3, 2024
The OAB Property
The Property is an approximately 8.4-acre parcel located at 101 Admiral Robert Toney Way (Assessor Parcel Number 018-0508-016) on the eastern half of the North Gateway area of the former Oakland Army Base.
The Property was subject to an exclusive negotiation agreement (ENA) with CASS, Inc., a California corporation (CASS) for relocation of its metals recycling facility pursuant to Resolution 88826 C.M.S., which City Council adopted in September 2021. While that ENA has since expired, the City and CASS remain in communication given the West Oakland community’s long-held interest in relocating the existing, impactful CASS facilities out of the West Oakland neighborhood.
On October 4, 2022, City Council adopted Resolution 89434 C.M.S. directing the City Administrator to enable the Property to be used for emergency shelter. As further discussed in an accompanying Informational Report prepared by the City Administrator, a set of environmental, regulatory and other constraints make it very challenging to utilize the Property for this purpose. These constraints include the presence of contaminated soil and a restrictive covenant prohibiting residential use of the Property.
Proposed Interim Helistop at OAB
To support emergency transport services while construction occurs at the Hospital, BCH Oakland has proposed to install an interim helistop on the Property. This would require BCH Oakland to lease the Property from the City. When the existing helistop at the Hospital is demolished, helistop operations would be temporarily relocated to the Property (Interim Helistop) until the new helistop structure is completed at the hospital as part of the modernization project. Patients would be transported from the Interim Helistop to the hospital via ground ambulance.
As part of its lease, BCH Oakland would make improvements to the Property, including:
• Paving for the helipad/helistop landing surface
• Paved driveway to the landing
• Security fencing
• Connections to power for lighting
• Wind indicator
• Soil preparation for dust control
Jestin D. Johnson, City Administrator
Subject: UCSF Benioff Children’s Hospital Oakland Interim Helistop Lease Date: November 15, 2024 Page 4
City Council
December 3, 2024
ANALYSIS AND POLICY ALTERNATIVES
The recommended action would authorize a lease of the Property to BCH Oakland for installation and use of the proposed Interim Helipad/Helistop for approximate four-year term along with supporting infrastructure such as fencing and lighting.
As illustrated in Attachment A, the helistop and related improvements are expected to use approximately 2.5 acres (Operational Footprint) of the approximately 8.4-acre parcel. However, BCH Oakland would be responsible for securing and maintaining the entire Property. This would relieve the City of property management expenses during the lease term. The City would retain the right to remove from the Lease any portion of the remaining leased premises outside of the Operational Footprint, if needed.
Rent under the lease would be $5,000 per month until the earlier of October 1, 2025 or commencement of construction and would increase to a market rate of $20,691 per month through the remainder of the term, with 3% annual increases. This rent rate is based upon the Port of Oakland’s published rate for unimproved land, as applied to the Operational Footprint.
The lease term would commence on or about February 1, 2025 and expire on March 31, 2029, when the new permanent helipad/helistop at the hospital is expected to be operable.
BCH Oakland would be responsible for securing any necessary entitlements, permits and other government approvals necessary for its use. This would include a “flying field” permit issued by the City of Oakland pursuant to Section 5.28 of the Oakland Municipal Code, which is administered by the Special Activity Permit Division of the Economic and Workforce Development Department and requires an administrative hearing.
Staff believe the recommend action is in the best interests of the City as it would enable continuity of operations for an essential public health system that serves a particularly vulnerable population. It would also activate an unutilized City-owned property, reduce liability for the City by transferring property management obligations to a third party, and would allow the City to continue negotiation with CASS to relocate its facilities to the OAB. Given the relatively short duration of the lease, it is also not expected to interfere with the permanent disposition and development of the site.
The recommended action would advance the Citywide priority of housing, economic, and cultural security by activating an unutilized City-owned property and ensuring continuity of emergency services for an Oakland-based children’s hospital.
FISCAL IMPACT
The recommended lease would require BCH Oakland to pay $5,000 per month in rent until commencement of construction, or October 1, 2025, whichever comes sooner, and $20,691 per month in rent thereafter during the term of the lease, for a total of approximately $700,000 in lease revenue to the City over the lease term. The lease rent would be deposited in OBRA Jestin D. Johnson, City Administrator
Subject: UCSF Benioff Children’s Hospital Oakland Interim Helistop Lease Date: November 15, 2024 Page 5
City Council
December 3, 2024
Leasing & Utility Fund (5671), Oakland Army Base Redevelopment Organization (85244), Miscellaneous Land Rental Revenue Account (44219), OBRA Leasing & Utility Project (1001542), OARB Bay Bridge Gateway Program (SC07). The lease would also shift property management liability from the City to BCH Oakland until the Property is ready for disposition and development.
PUBLIC OUTREACH / INTEREST
BCH Oakland has undertaken robust public outreach to date for the modernization of the Hospital, including eight community meetings since March 2023. Most recently, BCH Oakland discussed the Interim Helipad/Helistop on the Property at a community meeting on November 13th. BCH Oakland has committed to ongoing engagement with stakeholders and the community, including quarterly meetings. In addition, BCH Oakland has informed, via USPS mailed notice and phone outreach, all property owners and businesses within 300’ of the Property. The outreach describes the proposed interim helipad/helistop use on the site and invites further inquiry, providing email and phone contact information for BCH Oakland staff.
COORDINATION
The Economic & Workforce Development Department has coordinated this item with the District Three City Council office, City Administrator’s Office, Planning and Building Department, City Attorney’s Office, and Budget Bureau.
SUSTAINABLE OPPORTUNITIES
Economic: The recommended action will activate an unutilized City property with a revenue- producing lease and offset property management costs otherwise incurred by the City until the Property is ready for disposition and development. It will also enable continuity of operations for an essential public health system and large employer.
Environmental: While not included on the list of hazardous materials sites compiled pursuant to Government Code Section 65962.5, also known as the Cortese List, the Property contains soil contaminants that exceed residential screening levels. As a result, the Property is subject to a restrictive covenant enforced by the California Department of Toxic Substances Control (DTSC) that prohibits residential uses. The covenant does not prohibit commercial uses such as what BCH Oakland is proposing. However, the Property is also subject to a Remedial Action Plan and Risk Management Plan that will require BCH Oakland to prepare a work plan describing subsurface activities and a description of the proposed site use for the City and DTSC’s review and approval. This will ensure that the proposed use is compatible with the Property’s environmental condition. In addition, BCH Oakland has studied the environmental impact of the recommended action as part of the CEQA action discussed below.
Jestin D. Johnson, City Administrator
Subject: UCSF Benioff Children’s Hospital Oakland Interim Helistop Lease Date: November 15, 2024 Page 6
City Council
December 3, 2024
Race and Equity: BCH Oakland’s mission includes serving the healthcare needs of all children, regardless of status, including race, religion, or financial circumstances. Approximately 70 percent of pediatric patients receiving care at BCH Oakland are covered by Medi-Cal. As a Federally Qualified Health Center, BCH Oakland provides primary health care and resources at four community-based clinics dedicated to teens and young adults. The majority of individuals seeking care at these facilities reside in neighborhoods grappling with poverty, gun violence, inadequate housing, food deserts, and other factors affecting their overall health and well-being.
CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA)
As discussed in the New Hospital Building (NHB) Environmental Impact Report (EIR), BCH Oakland envisioned use of a temporary off-site helipad/helistop location to maintain air ambulance service while construction occurs at the NHB Project site, with patient transport from the temporary helipad/helistop location to BCH Oakland via ground ambulance. An interim helipad/helistop at the terminus of 4th Street near I-880 in Oakland was analyzed in the NHB Final EIR.
BCH Oakland prepared an Addendum to the NHB Final EIR and the City Council concurs this was appropriate because, although the location of the interim helipad/helistop had been revised, there was no new information about the project or circumstances under which the project would be undertaken that would result in new or more severe adverse environmental impacts than those analyzed in the NHB Final EIR. The California Public Resources Code section 21166 and CEQA Guidelines section 15164 states that an Addendum to a certified EIR is appropriate when minor changes or additions are necessary and none of the conditions for preparation of a Subsequent EIR per CEQA Guidelines Section 15162 or Supplemental EIR per CEQA Guidelines Section 15163 are met.
There is substantial evidence that the project would not require preparation of a Subsequent or Supplemental EIR and that an Addendum is the appropriate CEQA document, per the following conclusions:
(1) The off-site temporary helistop is within the scope of development analyzed in the BCH Oakland NHB Project Final EIR and will not result in new or more severe environmental impacts than previously disclosed.
(2) The off-site temporary helipad/helistop would not require new mitigation measures or result in mitigation measures that are considerably different from those analyzed in the BCH Oakland NHB Project Final EIR.
(3) Since the BCH Oakland NHB Project Final EIR was certified, there is no new information of substantial importance that will result in new or more severe environmental impacts. (4) There are no changes in the circumstances in which the BCH Oakland NHB Project would be undertaken which could result in new significant impacts previously not disclosed.
Jestin D. Johnson, City Administrator
Subject: UCSF Benioff Children’s Hospital Oakland Interim Helistop Lease Date: November 15, 2024 Page 7
City Council
December 3, 2024
Therefore, in accordance with California Public Resources Code section 21166 and CEQA Guidelines sections 15162, 15163, and 15164, the City finds that the NHB Final EIR and NHB Addendum comprise the full and complete CEQA evaluation necessary for the proposed project and the City concurs with the UC Regents that no further CEQA evaluation for the project is required.
The Addendum prepared by BCH Oakland is available at https://www.ucsf.edu/cgr/cgr- projects/new-hospital-building#tabs-2
Jestin D. Johnson, City Administrator
Subject: UCSF Benioff Children’s Hospital Oakland Interim Helistop Lease Date: November 15, 2024 Page 8
City Council
December 3, 2024
ACTION OF THE CITY COUNCIL
Staff recommends that the City Council adopt the following pieces of legislation:
An Ordinance Authorizing The City Administrator To Negotiate and Execute A Lease Agreement With The Children’s Hospital & Research Center At Oakland, A California Nonprofit Public Benefit Corporation, DBA UCSF Benioff Children’s Hospital Oakland, Of the 8.4-Acre Property Located At 101 Admiral Robert Toney Way At The Former Oakland Army Base For A Temporary Helipad/Helistop For Emergency Transportation Services For An Approximately Four Year Term With Rent In The Amount Of $5,000 Per Month During The Pre-Construction Phase And $20,691 Per Month Thereafter; And Adopting California Environmental Quality Act Findings
For questions regarding this report, please contact John Monetta, Project Manager II, at (510) 238-7125.
Respectfully submitted,
Ashleigh Kanat
Ashleigh Kanat (Nov 21, 2024 15:27 PST)
ASHLEIGH KANAT
Director, Economic & Workforce
Development Department
Prepared by:
John Monetta, Project Manager II
Economic & Workforce Development
Department
Reviewed by:
Kelley Kahn, Assistant Director, Economic and
Workforce Development
Brendan Moriarty, Real Property Asset
Manager, Economic & Workforce Development
Department
Attachments (1):
(A) Site plan
UNION PACIFIC
ANTENNA
BLDG.
CORNER
51'-8'
BLDG.
CORNER
50'-8'
BLDG.
CORNER
25'
BLDG.
CORNER
25'
BLDG.
CORNER
33'
PARKING LIGHT
STANDARDS
APPROX. 37'
BLDG.
CORNER
48'
AMBULANCE DRIVEWAY
BLDG.
CORNER
25'
BLDG.
CORNER
47'
LIGHT ARM
ELEV.=42.75'
LIGHT ARM
ELEV.=44.38'
LIGHT ARM
ELEV.=44.04'
LIGHT ARM
ELEV.=43.71'
LIGHT ARM
ELEV.=70.08'
LIGHT ARM
ELEV.=73.73'
LIGHT ARM
ELEV.=76.79'
LIGHT ARM
ELEV.=78.12'
LIGHT ARM
ELEV.=79.03'
LIGHT ARM
ELEV.=79.46'
LIGHT ARM
ELEV.=79.11'
LIGHT ARM
ELEV.=78.11'
LIGHT ARM
ELEV.=77.05'
LIGHT
ELEV.=45.78'
LIGHT
ELEV.=75.23'
LIGHT
ELEV.=76.55'
LIGHT
ELEV.=77.32'
LIGHT
ELEV.=77.70'
LIGHT
ELEV.=77.60'
LIGHT
ELEV.=76.47'
LIGHT
ELEV.=75.28'
LIGHT
ELEV.=74.51'
LIGHT
ELEV.=40.74'
LIGHT
ELEV.=41.72'
LIGHT
ELEV.=42.08'
LIGHT
ELEV.=42.42'
TOP OF POWER POLEELEV.=49.39'
TOP OF POWER POLE
ELEV.=49.10'
TOP OF POWER POLE
ELEV.=48.79'
TOP OF POWER POLE
ELEV.=48.09'
TOP OF POWER POLE
ELEV.=46.37'
TOP OF RADIO TOWER ON BRIDGE
ELEV.=159.82'
TOP OF RADIO TOWER POLE ON BRIDGE
ELEV.=162.82±'
BARRIER
ELEV.=75.74'
BARRIER
ELEV.=77.23'
BARRIER
ELEV.=78.23'
BARRIER
ELEV.=78.90'
BARRIER
ELEV.=79.48'
BARRIER
ELEV.=79.81'
BARRIER
ELEV.=80.89'
TOP OF RADIO TOWER ON BRIDGE
ELEV.=124.35'
BARRIER
ELEV.=55.70'
BARRIER
ELEV.=65.48'
BARRIER
ELEV.=76.66'
FENCE
ELEV.=45.78'
FENCE
ELEV.=50.99'
FENCE
ELEV.=54.28'
FENCE
ELEV.=54.77'
FENCE
ELEV.=54.90'
FENCE
ELEV.=54.11'
FENCE
ELEV.=53.05'
FENCE
ELEV.=52.03'
TOP OF POWER POLE
ELEV.=48.59'
FENCE
ELEV.=22.28'
FENCE
ELEV.=22.45'
FENCE
ELEV.=23.39'
FENCE
ELEV.=23.17'
FENCEELEV.=19.80'
TOP OF POWER POLE
ELEV.=50.98'
TOP OF POWER POLE
ELEV.=43.64'
TOP OF POWER POLE
ELEV.=41.56'
BARRIER
ELEV.=80.39'
BARRIER
ELEV.=82.04'
BARRIER
ELEV.=78.02'
BARRIER
ELEV.=80.22'
BARRIER
ELEV.=81.56'
BARRIER
ELEV.=83.78'
BARRIER
ELEV.=85.81'
BARRIER
ELEV.=82.89'
BARRIER
ELEV.=80.32'
41' X 41' TLOF ELEV:
APPROX. 13' MSL
71' DIAMETER
FATO
13'-WIDE
SAFETY AREA
BCHO-A 101 ADMIRAL TONEY WAY
PRELIMINARY HELIPORT LAYOUT
OCTOBER 28, 2024
GHTGHT
Y
AMBULA
N
NCE DR
IVEWA
AMBULANCE DRIVEWAYAMBULANCE DRIVEWAY
LIGG
S
North
Remainder
Premises
South
Remainder
Premises
Operational Premises
(+/- 2.5 acres)
Attachment A