BYBA
desert valleys builders association
2023 BOARD OF DIRECTORS
PRESIDENT
Todd Hooks
Agua Caliente Band of
Cahuilla Indians
Immediate Past President
Deborah McGarrey
Southern California Gas Company July 7, 2023
1" VICE PRESIDENT
Tom Dubose
Dubose Design Group, Inc. City of Cathedral City
SECRETARY/TREASURER Charles McClendon, City Manager
Pedro Rincon
Osborne Rincon CPAs 68700 Lalo Guerrero
VICE PRESIDENT Cathedral City, CA 92234
OF ASSOCIATES
Allan Levin
Allan Levin & Associates Dear Mr. McClendon,
CHIEF EXECUTIVE OFFICER
Gretchen Gutierrez
Thank you for providing Desert Valleys Builders Association the DIRECTORS opportunity to review and comment on the Cathedral City AB1600 Fee Fred Bell/ 2023 PAC Chairman
Nobell Energy Solutions Justification Nexus Study. Below are several issues of concern. Most need Brian Benedetti an explanation while other situations require amendments.
Brian Benedetti Construction
Mark Benedetti
Dede Callanan Page 7: Administrative Fee
CalBest Title The study fails to support a quantitative nexus to a percentage of fees to be Mario Gonzales
GHA Companies collected. The City may collect fees representative of costs to draft the Joe Hayes development impact fee study, annual reports, fee updates etc. However, the First Bank
Jeremy Roos amount of fees collected on an annual basis varies. One year building FreeVolt permits pulled could be low, while other years they could be high. Either Dave Lippert way a 5% fee does not reflect actual costs.
Lippert Construction, Inc
Paul Mahoney
MA Advertising Additionally, payment of fees and processing is already paid for via land Bruce Maize use, regulatory, and services fees.
Orr Builders
Russ Martin
Mission Springs Water Page 7: Fee Adjustment Procedures District
Dan Olivier There is a line in this paragraph stating that "the fees will automatically be Nethery Mueller Olivier adjusted using the Construction Cost Index (CCI)." While using a CCI or Alan Pace CPI for a yearly adjustment may be supportable, there is nothing Petra GeoSciences
Kevin Pillow automatic in the process. Government Code 66016 requires notice and a AC Houston Lumber public hearing, to support that the fees are not excessive, and 60 days before John Powell, Jr. implementation.
Coachella Valley Water District
Mike Rowe
MSA Consulting
Phil Smith
Sunrise Company
Alissa Vatter
Fidelity National Title
Jeff Wattenbarger
Wattenbarger Construction
34360 Gateway Drive • Palm Desert • CA 92211
(760) 776-7001 office • (760) 776-7002 fax
www.TheDVBA.org
SUBA
desert valleys builders association
2023 BOARD OF DIRECTORS
PRESIDENT
Todd Hooks
Agua Caliente Band of
Cahuilla Indians
Immediate Past President
Deborah McGarrey
Southern California Gas Company
I" VICE PRESIDENT Page 17: Park Facility Level of Service Tom Dubose The current Park Facility level of service is 1.41 acres per 1,000 residents.
Dubose Design Group, Inc.
SECRETARY/TREASURER The Quimby Act may set a minimum of 3 acres per 1,000 residents, but Pedro Rincon Park Facilities are regulated by the Mitigation Fee Act. While it is clear that Osborne Rincon CPAs new residents will not pay for existing deficiencies, they are also supposed
VICE PRESIDENT
OF ASSOCIATES to receive the level of service that they pay for. If new residents pay for 3 Allan Levin acres per thousand and the existing level of service is 1.41 acres per 1,000 Allan Levin & Associates
population, the new residents will be sharing their parks with the existing
CHIEF EXECUTIVE OFFICER
Gretchen Gutierrez population. The existing population benefits from new housing construction with a higher level of service. However, the new residents won't get the 3
DIRECTORS
Fred Bell/ 2023 PAC Chairman acres of improved parkland they paid for. Thus, this is a violation of the Nobell Energy Solutions Mitigation Fee Act and Proposition 26 (an unlawful tax). Unless the Brian Benedetti
existing population is willing to tax themselves to bring up the level of Brian Benedetti Construction
Mark Benedetti service to 3 acres per 1,000 population, the new residents should not be Dede Callanan charged a higher level of service.
CalBest Title
Mario Gonzales
GHA Companies What does the 5% administrative charge equate to on an average annual Joe Hayes basis?
First Bank
Jeremy Roos
FreeVolt Transportation Facilities
Dave Lippert
Table 5-1 exhibits a total cost for the desired level of service at Lippert Construction, Inc
Paul Mahoney $109,466,314.90 for buildout. This includes $34,297,853.37 of existing PMA Advertising development responsibility. How do they plan to pay for the existing Bruce Maize
deficiency?
This is the same problem as with park facilities. If new residents pay 100% of their share of the desired improvements and the existing population Dan Olivier doesn't, the new population will have received a lower standard of service Nethery Mueller Olivier than they paid for. This is a violation of the Mitigation Fee Act and Alan Pace Proposition 26.
Petra GeoSciences
Kevin Pillow
AC Houston Lumber The City needs to adjust the trip costs to meet the current level of service.
John Powell, Jr.
Coachella Valley Water District
Mike Rowe
MSA Consulting
Phil Smith
unrise Compa
issa Vatt
Fidelity National Title
Jeff Wattenbarger
Wattenbarger Construction
34360 Gateway Drive • Palm Desert • CA 92211
(760) 776-7001 office • (760) 776-7002 fax
www.TheDVBA.org
SUBA
desert valleys builders association
2023 BOARD OF DIRECTORS
PRESIDENT
Todd Hooks
Agua Caliente Band of
Cahuilla Indians
Immediate Past President
Deborah McGarrey
Southern California Gas Company
L VICE PRESIDENT What does the 5% administrative charge equate to on an average annual Tom Dubose basis? The anticipated fee collection at buildout is $3.7million more than Dubose Design Group, Inc. new residents are responsible for. How much of this is the 5%
SECRETARY/TREASURER
Pedro Rincon administration tax? Divided by 40 years the city is still collecting an Osborne Rincon CPAs average of $94,000 annually.
VICE PRESIDENT
OF ASSOCIATES
Allan Levin General Government Facilities
Allan Levin & Associates
CHIEF EXECUTIVE OFFICER City Hall is stated to have room for expansion. How much room? How is Gretchen Gutierrez this realized in the cost of the existing level of service?
DIRECTORS
Fred Bell/ 2023 PAC Chairman What does the 5% administrative charge equate to on an average annual Nobell Energy Solutions basis when expected revenue is $97 million? Brian Benedetti
Brian Benedetti Construction
Mark Benedetti Fire Facilities
Dede Callanan What are the current facilities' capacities? Do they have capacity for CalBest Title
additional staff and equipment? What are the average response times? Mario Gonzales
GHA Companies It appears that plans are for an elevated level of service. There is already a Joe Hayes training facility within the sphere of influence and a fire station near the First Bank
Jeremy Roos edge of the northern city limits. How do these fit into the city's plans? FreeVolt
Dave Lippert
What does the 5% administrative charge equate to on an average annual Lippert Construction, Inc
Paul Mahoney basis of $53.6 million?
PMA Advertising
Bruce Maize
Orr Builders Police Facilities
Russ Martin What is the capacity and functionality of the existing police facilities? Do Mission Springs Water
District the current facilities include a 6-lane indoor firing range? A training center? Dan Olivier
Nethery Mueller Olivier The expected cost at buildout is $54 million. Current valuation is $17 Alan Pace
Petra GeoSciences million. It appears that the new residents are paying for an increased level of Kevin Pillow service. Anticipated Fee collection at Buildout is $36.5 million. Again, this LC Houston Lumbe is another example of new residents paying full cost but getting delivered ohn Powell, J
Coachella Valley Water District something less.
Mike Rowe What does the 5% administrative charge equate to on an average annual MSA Consulting basis at $54 million, or $36.5 million?
Phil Smith
Sunrise Company
Alissa Vatter
Fidelity National Title
Jeff Wattenbarger
Wattenbarger Construction
34360 Gateway Drive • Palm Desert • CA 92211
(760) 776-7001 office • (760) 776-7002 fax
www.TheDVBA.org
SYBA
desert valleys builders association
2023 BOARD OF DIRECTORS
PRESIDENT
Todd Hooks
Agua Caliente Band of
Cahuilla Indians
Immediate Past President
Deborah McGarrey
Southern California Gas Company
Fee Adjustment Procedures
Again, the language uses "the fees will be automatically adjusted." Nothing Dubose Design Group, Inc.
SECRETARY/TREASURER is automatic in the Mitigation Fee Act.
Pedro Rincon
Osborne Rincon CPAs We believe we have established reasons for concern. Several fees should be
VICE PRESIDENT
OF ASSOCIATES reworked. The administration fee at 5% is excessive, even at 40 years until Allan Levin buildout. The DVBA looks forward to discussing these issues with your Allan Levin & Associates
staff and consultant.
CHIEF EXECUTIVE OFFICER
Gretchen Gutierrez
Respectfully:
DIRECTORS
Fred Bell/ 2023 PAC Chairman cretion idea
Nobell Energy Solutions
Brian Benedetti
Chief Executive Officer
Brian Benedetti Construction
Mark Benedetti
Dede Callanan
CalBest Title
Mario Gonzales
GHA Companies
Joe Hayes
First Bank
Jeremy Roos
FreeVolt
Dave Lippert
Lippert Construction, Inc
Paul Mahoney
PMA Advertising
Bruce Maize
Or Builders
Russ Martin
Mission Springs Water
District
Dan Olivier
Nethery Mueller Olivier
Alan Pace
Petra GeoSciences
Kevin Pillow
AC Houston Lumber
John Powell, Jr.
Coachella Valley Water District
Mike Rowe
MSA Consulting
Phil Smith
Sunrise Company
Alissa Vatter
Fidelity National Title
Jeff Wattenbarger
Wattenbarger Construction
34360 Gateway Drive • Palm Desert • CA 92211
(760) 776-7001 office • (760) 776-7002 fax
www.TheDVBA.org