01-18-2000 - Amendment to Settlement Agreement with BKK Corporation Regarding Grading of North Ridgelineil
i
City 0 West Covina
TO: City Council and City Manager
Memorandum
AGENDA.
FROM: Jeffrey W. Collier, Director
ITEM NO. C -3
Public Services Department HATE January 18, 2000
SUBJECT: AMENDMENT TO SETTLEMENT AGREEMENT WITH BKK
CORPORATION REGARDING GRADING OF NORTH RIDGELINE
SUMMARY: On January 17, 1996, the City and. the BKK Corporation entered into a
Settlement Agreement -that, among other -things,, prevented BKK from grading
beyond the "North Ridgeline" along the northerly perimeter of its property.
BKK is now proposing to develop an 18-hole golf course that, as proposed,
entails some grading beyond the limit of the North Ridgeline. Consequently,
BKK , is . requesting approval of an amendment to the 1996 Settlement
Agreement to allow grading for the proposed golf course to extend beyond the
limit of the North, Ridgeline.
BACKGROUND:
In January 1996, the. City and the BKK Corporation entered into a Settlement Agreement
regarding various grading and landscaping issues at the BKK Landfill. The Settlement
Agreement included 12 specific conditions. At issue at this time is. Condition.No. 5 of the
Settlement Agreement, which states the following:
5. BKK agrees that any grading of the Northwest Ridgeline, as shown on attachments
"A" and "B" shall be in conjunction with the filling of the North Stepout area and
subsequent development of the site for recreational or other permitted purposes, and
shall be subject to review and approval by the ,City, after environmental review under
CEQA. BKK agrees to maintain the existing outward facing slopes of the North
Ridgeline area, by not altering, grading or removing soil from ,the existing natural
outward facing slopes.
The areas specified in the Development Agreement are depicted on the attached map. The
North Stepout area is the area just north of the ClassIll disposal unit that had been excavated
and lined with the intention of being used as an additional waste disposal area . before
settlement was reached on the closure of the landfill. The North Ridgeline is the top of the
ridge just slightly inward from BKK's northerly property line and generally coincides with the
limit line of the excavation that was done for the North Stepout. The Northwest Ridgeline
represents the continuation of the. North Ridgeline to the west toward Azusa Avenue and is
located in an. area that was not used for landfill purposes.
The 1996 Settlement Agreement allowed for the Northwest Ridgeline and the area
surrounding it to be graded down to provide a portion of the fill material needed to.fill in the
North Stepout and provide final cover material for the Class III landfill. Under the Settlement
Agreement, however, the North Ridgeh.ne was required to be left "as is" and no grading or
alteration of land was to occur on the northerly outward facing slope beyond the top of the
North Ridgeline.
BKK has now proposed to develop an 18-hole golf course that will extend across the "top
deck" of the former Class III landfill, thearea now occupied 'by the North Stepout, and virgin
land owned by BKK to the northeast of the landfill. The clubhouse for the golf course is
proposed to be located in the area generally known as the "North Saddle," near the point
where the Class I and Class III landfill units converge. This location allows the clubhouse to
be situated in between the front and back "nines" of the golf course. In order to access the
clubhouse, an access road is proposed along the northerly perimeter of the BKK property from
the proposed "A Street, near the point where Fairgrove Avenue ends at the BKK property
line.
Amendment to BKK SettleOnt Agreement •
Grading of North Ridgeline
January 18. 2000 - Paae 2
DISCUSSION:
The issue that has now arisen is that, in order to develop the golf course as proposed, it would
be necessary for some grading. and alteration of land to take place along the northerly edge of
the BKK property beyond the limit of the North Ridgeline. As discussed above, however, the
terms of the 1996 Settlement Agreement prevent any alteration of land beyond the limit of the
North Ridgeline; In order to facilitate the development of the golf course as presently
proposed, BKK has requested that the City approve an' amendment to the Settlement
Agreement to modify the condition regarding the North Ridgeline to allow grading beyond
the North Ridgeline.
While the language within the Settlement Agreement clearly states that no alteration of land is
to take place beyond the North Ridgeline, the Settlement Agreement does not elaborate as to
what the intent of "preserving" the North Ridgeline was or whether their may be any
appropriate circumstances under which this restriction may be changed. Furthermore, there is
nothing in the Settlement Agreement that would restrict the City from modifying the terms of
the Settlement Agreement with the mutual consent of BKK, should the City decide that this is
in its interest to do so.
As mentioned above, the Settlement Agreement does not state the intent of the restriction on
grading beyond the North Ridgeline. During the time that the landfill was in operation,
however, the City was engaged in an ongoing dispute with. BKK regarding the excavation of
the North Stepout area and the increasing Iinfringement upon the North Ridgeline. The City
was concerned regarding the possible aesthetic and environmental affects of breaching the
North Ridgeline and that was the basic reason why the City had an interest'in assuring that the
North Ridgeline would be maintained through the terms of the Settlement Agreement.
At this time, however, BKK is proposing a new use for the northerly portion of its property in
the form of an 18-hole golf course. While this proposed use certainly does not change any of
the City's concerns regarding proper regulation and maintenance of the closed landfill, it does
present a new context for the physical development and appearance of the BKK property.
In terms of the design of the golf course, seven holes and a portion of the practice range are
proposed to be located over the "top deck" of the former Class III landfill. The final two
holes of the front nine and the access road to the clubhouse are proposed to be situated on the
area between the Class III landfill and the northerly edge of BKK's property.
The southerly edge of the top deck of the Class III landfill defines the limit of the area in
which the golf course can be accommodated. Under the current terms of the Settlement
Agreement, the physical limits of the golf course and the access road are also constrained on
the north by the edge of the North Ridgeline. The North Ridgeline follows along the same
general line of BKK's northerly property line, but its distance from the property line varies
from less than 10 feet to more than 200 feet at some points.
The perspective of BKK regarding this issue is that preserving the current North Ridgeline
would significantly impinge upon their ability to accommodate the golf course and access
road. Whereas the North Ridgeline has some bends and curves, the golf holes and access road
are more linear and not easily able to follow exactly along the line of the North Ridgeline.
Because of the circumstances described above, the golf course design that BKK has proposed.
involves lowering the North Ridgeline mostly to accommodate the access road and a portion
of the fairway, of Hole No. 9. As proposed, the degree to which the North Ridgeline would be
lowered in elevation vanes from about 20 feet in some locations to about 50 or 55 feet in
other locations.
Under the proposed grading plan, the lowering of the current North Ridgeline would generally
result. in a new fidgeline being created slightly further to the north and about 20 to 35 feet
lower than the existing ridgeline. For the most part, the proposed access road would run along
ZACity Council\SFRPTSDM\BKK.North.Ridgeline.doq,
Amendment to BKK SettAnt Agreement •
Grading of North Ridgeline
January 18, 2000 Page '3
the- crest or slight distance inward from the new ridgeline. The outer (northerly) edge, of the
new ridgeline is proposed to be landscaped.
Two cross -sections views have been attached to portray the most substantial proposed grading
of the North Ridgeline: 'Section B illustrates the point at which the North Ridgeline comes
furthest inward into the BKK property. At this point, the North Ridgeline would be lowered
to accommodate a portion of the fairway of Hole No. 9 with the access road just to the morth.
Section C illustrates a point about 100 feet to the west of Section B where the North Ridgeline
is closer to the BKK property line and the ridgeline would be graded' down to accommodate
the alignment of the access road.
The North Ridgeline mostly borders other open space areas beyond the BKK property to the
north. Hence, the ridgeline itself , is not readily .visible from' other public perspectives.
Consequently, the lowering of the North Ridgeline as proposed would not likely result in any
significant visual or aesthetic impacts to areas north of BKK.'
It should be noted that the Environmental Impact Report,(EIR) for the BKK business park and
golf course did evaluate the visual and aesthetic impacts of the golf course based on the
proposed plan that entails grading of the North Ridgeline. The same as indicated above, the
EIR did not indicate that there would be any significant aesthetic or visual impacts related to
grading or'lowering the North Ridgeline.
OPTIONS:
If the Council were to agree to amend the 1996 'Settlement Agreement regarding the North
Ridgeline, it would provide BKK with the opportunity to proceed with processing its
currently proposed design ' for the golf course through the public hearing process. It is
important to note, however, that amending the Settlement Agreement would not constitute or
imply approval of the proposed golf course design, nor would it constitute City approval to
grade the North Ridgeline. What it would do is remove a.current obstacle that would prevent
the City from being able to consider the proposed design.
Conditions could also be addedto ensure that the outward facing slope of the modified
ridgeline will be landscaped, to require contour grading, and to require cut-off shielding on
the access road lighting. Also, the amendment to the Settlement Agreement could be
conditioned to limit the extent to which the North Ridgeline could be lowered and to allow the
North Ridgeline to be' graded strictly in conjunction with the development of the golf course.
If the Council were to elect not to amend the Settlement Agreement, BKK would have to
substantially modify the design of the golf course so as to not extend any grading beyond the
edge of the North Ridgeline. BKK has indicated that this is possible, but it would entail a
substantial reduction in the size of the practice range, relocation and reduction in the size of
the clubhouse, and- reduction' in the yardage and quality of design of the golf course.
FISCAL IMPACT:
Action regarding this matter would not have any direct fiscal impact to the City. To the, extent
that denial of BKK's request would result .in redesign and possible diminishment in the
quality of the proposed golf course and its facilities, it could' have an indirect fiscal impact.
BKK has made a request to the City Redevelopment Agency for assistance with respect to the
golf course and this proposal is currently being analyzed by the Agency.
ZACity Council\SFRPTSDM\BKK.Norih.Ridgeline.doc
Amendment to BKK.SettleQnt Agreement
Grading of North Ridgeline
January 18, 2000 - Page 4 "
RECOMMENDATION:
Staff recommends that the City Council consider the request of the BKK Corporation to
amend the terms and conditions of the 1996 Settlement Agreement to allow• grading and
alteration of the slope areas beyond the existing limit of the "North Ridgeline" and provide
appropriate direction to staff and the City Attorney:
Prepared by:
ougl . McIsaac
City er
Reviewed and approved by:
oy Collierc. Services Director
Attachments: Letter from 'BKK Corporation dated December"23; 1999
January 17, 1996 Settlement. Agreement
Map of North Ridgeline
Cross -sections of Proposed North Ridgeline Grading (Sections B &C)
ZACity Council\SFRPTSDM\BKK.North.Ridgeline.doc
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RbCEwEn
2210 South Azusa Avenue
7 1999 West Covina, California 91792
DECl� I (626) 965-0911
p�w.. Fax (626) 965-9569,
ram' W DA1 M
Mr. Jeff Collier
Director of Public Services
CITY OF WEST COVINA
1444 W. Garvey Avenue South
Post Office Box 1440
West Covina, CA . 91793
Subject: Amendment to Settlement Agreement between the City of West Covina
and' BKK Corporation
Dear Mr. Collier:
This letter is to formally request the City Council of West Covina to amend Section 5 of
the Agreement (see attachment) to allow potential grading of the North Ridgeline in
conjunction with the development applications currently being processed, by the City.
Grading the ridgeline 'is necessary to provide the area for the clubhouse and for a
private drive as access to the proposed clubhouse location without routing the drive over
any portion of the closed Class III landfill. An amendment will also create a consistent
policy for development of the site where grading of the Northwest Ridgeline and the.
ridgeline to the northeast is subject to a development proposal.
Without amendment of the Agreement, the goals and objectives for the proposed golf
course will be seriously compromised. Briefly, the driving range will be greatly reduced
to a warm-up facility vs. a full practice facility. Clubhouse parking will have to be
relocated and reduced. The clubhouse and related facilities may have to be decreased
in size to coincide with available parking. The top deck will require substantial regrading
to squeeze all nine holes of golf onto the top deck, and a large portion of Lot 34 will be
eliminated in favor.of a redirected access road. In total, the golf course will become a
shorter course of lesser quality and the opportunities for facilities in the clubhouse will
be limited.
-Mr. Jeff Collier
December 23, 1999
Page Two .
By amending the Settlement Agreement to allow potential grading of the North Ridgeline
in conjunction with a development proposal, the City of West Covina and BKK
Corporation will maximize the opportunities for reuse and development of the closed
landfill site.
Your immediate attention in this matter'will be greatly appreciated.
Sincerely
� —44�
Ke neth B. Kazarian a
BKK CORPORATION
Attachment
Cc: Daniel Hobbs, City of West Covina, West Covina
Doug McIsaac, City of West Covina, West Covina
Steve Samaniego, City of West Covina, West.Covina
Kris Kazarian, BKK Corporation
Don Kazarian, BKK Corporation
Alan Tuntland, San Jose Hills Development
(\sjhil is\cwc\KenRidge.doc)
AGRF'EMENT
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This agreement into memorialize the understanding reached by BKK Corporation
("BKK") and the City of West Covina ("City'� (collectively the "Parties") regarding
settlement of the dispute involving grading activities on the landfill site which BKK on
the one hand contends it has the rights to conduct, and which the City, on the other hand
contends BKK does not have the right to conduct. In part, by letter agreement executed
February 23, 1993, the parties had placed on hold resolution of the disputes addressed by
that letter agreement and the matters addressed herein.
The parties have now determined to resolve some of their outstanding disputes
concerning the matters addressed herein according to the following terms and conditions:
1. BKK shall conduct mitigation activities as described in
attachments,"A" and "B" attached hereto and by this reference
incorporated herein.
2. City agrees to allow BKK to! conduct the mitigation activities
including grading to complete disposal operations and to facilitate
closure of the landfill site described in attachments "A" and "B"
attached hereto.
3. City' agrees the mitigation activities described in attachments "A"
and "B" hereto are not subject to the terms of CEQA or the UUP,
including environmental review under CEQA.
4. BKK agrees that its final closure plan will be subject to
environmental review under CEQA.
5. BKK agrees that any grading of the Northwest Ridgeline, as shown
on attachments "A" and "B" shall be in conjunction with the filling of
the North Stepout area and subsequent development of the site for
recreational or other permitted � purposes, and shall be subject to
review and approval by, the City, after environmental review under
CEQA. BKK agrees to maintain the existing outward facing slopes of
the North Ridgeline area, by not altering, grading or removing soil
from the existing natural outward facing slopes.
6. This agreement amends by superseding, the aforementioned
February 23,1993, letter agreement.
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7. In addition to any appropriate remedies at law or in equity, it is
specifically agreed that this agreement shall be enforceable by specific
performance and/or injunctive relief.
8. Should either party bring any action to interpret or enforce the
terms of this agreement, the prevailing party in any such action shall
be entitled to an award of all costs, including reasonable attorney's
fees.
9. BKK agrees to indemnify and, hold harmless the City from any
costs or attorney's fees incurred in defending this agreement or any
activities related thereto from any third -party actions. The parties
shall mutually agree on selection of legal counsel for this purpose.
10. While the parties believe this agreement is enforceable and will
not challengefts legal validity, the -.,enforceability or non -enforceability "
of this agreement shall in no way affect the validity of the judgment
being entered relating to BKK ceasing acceptance of waste.
11. This agreement has been jointly drafted by the parties and shall
not be interpreted against either party based upon the drafting of the
agreement.
12. BKK shall allow the City to conduct onsite inspections at any
reasonable intervals deemed necessary by the City Manager or
designee in order to ensure BKK's compliance with this agreement.
Acceptance of the terms and conditions of this. agreement is indicated by signature.of the
parties below.
'City of West Covina
Date:Q%
James E. Starbird
BKK Corporation
Date:. J 61n�
By: Ron 9.astelurn
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