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Mayor Mercer recessed the meeting at 9:35 p.m. Mayor Mercer reconvened the meeting at 9:45 p.m. Report from Valley Memorial Hospital Mayor Mercer stated that representatives from Valley Memorial Hospital are present to advise Council on the status of a proposed hospital for the City of Pleasanton. Mr. Gene Broadman, Chairman of the Board of Directors for Valley Memorial Hospital, thanked Council for their support of the hospital. He introduced representatives from Alta Bates and John Muir hospitals, who are proposing a joint venture for hospital facilities in Pleasanton. Mr. Bob Fisch, representing Valley Memorial Hospital, presented details of the Pleasanton medical campus, which is planned to be constructed in three phases. Phase 1 will include an out patient center, medical office building, and behavioral medical center. He stated that construction of Phase I would begin immediately upon approval by the membership. Mr. Fisch stated that Phase 2 would include eldering housing and a skilled nursing facility, and that planning would begin immediately after Phase 1. He advised it is the intent of Valley Memorial Hospital, John Muir, and Alta Bates, in coopera- tion,to create a linkage for insurance purposes in the greater East Bay. Mr. Fisch stated that Phase 3 would be the development of a hospital in Pleasanton and the complete renovation of Valley Memorial Hospital in Livermore. Mr. Broadman stated this plan has been unanimously approved by the Board of Directors. He advised the Board will present the plan to their membership on December 30, 1985, and he expects a positive vote at that time. He stated he felt this proposal meets Valley Memorial Hospital's contractural arrange- ment to provide hospital facilities for the City of Pleasanton. Council discussion ensued regarding the phases for construction of the project; and expressing concern and wanting assurance from Valley Memorial Hospital that a hospital would actually be built. If Valley Memorial Hospital could not build such a facility within a reasonable amount of time, it was the feeling of Council that the reserved sewer capacity should be allocated to another health consortium who would provide the facility, and that Valley Memorial Hospital would be then be required to pay their fair share of assess- ment district fees. Mr. Broadman stated they would be absolutely willing to have the agreement amended not to waive the fees if a hospital is not provided. Councilmember Brandes stated it is the strong feeling of the community that they want a full service hospital in Pleasanton. He stated other firms efforts have been thwarted to build a facility in Pleasanton because of Valley Memorial Hospital's plans, which have yet to come to fruition. He stated that the entity facilities do not make sense without a full hospital. He stated there are other sites that could be considered for a hospital building. He stated he would like to have Council consider an opportunity to let it be known that there are 40,000 gallons sewer capacity set aside for a hospital facility. He stated he felt it inappropriate to hold this capacity unless Valley Memorial Hospital can prove they intend to build a full hospital center in Pleasanton within a reasonable time period. 9 - 11-5-85