CYBA
desert valleys builders association
2023 BOARD OF DIRECTORS
PRESIDENT
Todd Hooks
Agua Caliente Band of
Cahuilla Indians
Immediate Past President
Deborah McGaney August 15, 2023
Southern California Gas Company
IS VICE PRESIDENT
Tom Dubose City of Cathedral City
Dubose Design Group, Inc. Charles McClendon, City Manager SECRETARY/TREASURER 68700 Lalo Guerrero
Pedro Rincon
Osborne Rincon CPAs Cathedral City, CA 92234
VICE PRESIDENT
OF ASSOCIATES RE: Development Impact Fee Study
Allan Levin
Allan Levin & Associates
CHIEF EXECUTIVE OFFICER Dear Mr. McClendon,
Gretchen Gutierrez
DIRECTORS The Desert Valleys Builders Association is in possession of the amended AB 1600 Fred Bell/ 2023 PAC Chairman Fee Justification Nexus Study, Preliminary Draft, dated July 2023. We have Nobell Energy Solutions quickly reviewed, compared and contrasted this study with the previous study's Brian Benedetti
contents. There are provided areas of further explanation, and the addition of Brian Benedetti Construction
Mark Benedetti misplaced Police and Fire Service vehicles, increasing current Level of Service and Dede Callanan development impact fees. Fees have increased in the General Government CalBest Title Facilities and Fire and Police categories. This draft explains annual adjustments of Mario Gonzales
fees based on a nationally recognized inflationary index, removing the statements GHA Companies
Joe Hayes that this would be automatic.
First Bank
Jeremy Roos At the conclusion of the Study Session of Wednesday, August 9t, the Desert Free Volt
Dave Lippert Valleys Builders Association feels that our verbal and written concerns regarding Lippert Construction, Inc the appropriateness and legality of certain assumptions of the Justification Study Paul Mahoney were minimally reviewed with little contextual understanding. Many of the PMA Advertising comments and concerns below will be reiterated from our previous letter.
Bruce Maize
Or Builders
Russ Martin Page 7: Administrative Fee
MiDion Springs Water 66014(b) The fees charged pursuant to subdivision (a) may include the costs reasonably necessary to prepare and revise the plans and policies that Dan Olivier
Nethery Mueller Olivier a local agency is required to adopt before it can make any necessary Alan Pace findings and determinations.
Petra GeoSciences
AC Houston Lumber All fees collected via the Mitigation Fee Act must prove a "nexus" for the service John Powell, Jr. between the applicant and the service provided. The study fails to support a Coachella Valley Water District quantitative nexus to a percentage of fees to be collected. The City may collect Mike Rowe fees representative of costs to draft the development impact fee study, annual MSA Consulting
Phil Smith reports, fee updates etc. Any additional uses, payment of fees and processing, is Sunrise Company already paid for via land use, regulatory, and services fees.
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
BYBA
desert valleys builders association
2023 BOARD OF DIRECTORS
PRESIDENT
Todd Hooks
Agua Caliente Band of
Cahuilla Indians
Immediate Past President
Deborah McGarrey The Study shows that the City hopes to build infrastructure and capital Southern California Gas Company
IS VICE PRESIDENT improvements costing approximately $489,126.646. Of this, 5% percent is the Tom Dubose proposed Administrative Fee. At buildout (or 40 years) the City would have Dubose Design Group, Inc. collected approximately $24,456,332 in Administrative Fees. Over that 40 year SECRETARY/TREASURER period the City would collect $611,408 each year.
Pedro Rincon
Osborne Rincon CPAs
VICE PRESIDENT How much is it costing to draft fee studies and Annual and Five - Year Reportable OF ASSOCIATES Fee Reports? Each year?
Allan Levin
Allan Levin & Associates
CHIEF EXECUTIVE OFFICER Other services are covered in the costs associated with the User and Regulatory Gretchen Gutierrez Fee Study.
DIRECTORS
Fred Bell/ 2023 PAC Chairman Category Buildout Cost 5 Percent Per Year Nobell Energy Solutions Parks Imp $201,056,426 $9,513,926 $237,848 Brian Benedetti
Transportation $78,825,738 $1,973,160 $98,658
Brian Benedetti Construction
Gen Gov $98,316,239 $4,915,812 $122,895
Mark Benedetti
Dede Callanan Fire $54,227,651 $2,711,383 $67,785
CalBest Title Police $56.700,592 $2,835,030 $70,875
Mario Gonzales Total $489,126,646 $24,456,332 $611,408
GHA Companies
Joe Hayes
First Bank
Jeremy Roos Page 17: Park Facility Improvement - Level of Service FreeVolt
Dave Lippert There is a significant difference between the Quimby Act and The Mitigation Fee Lippert Construction, Inc
Paul Mahoney
PMA Advertising The Quimby Act establishes the dedication of 3 acres (of parkland or open space) Bruce Maize
Orr Builders per 1,000 residents, or an in-lieu fee based on the cost of the parkland, alone. With Russ Martin the payment of an in-lieu fee, the builder has fulfilled the park's obligation. The Mission Springs Water city can then use those funds to purchase land or add facilities to new or existing District parkland
Dan Olivier
Nethery Mueller Olivier
Alan Pace The Park Facilities Fees are designed to improve Parkland with sidewalks, grass, Petra GeoSciences
play equipment, or multipurpose recreation facilities. The listed $750,000 per Kevin Pillow
AC Houston Lumber improved acre is a high level of service. However, the Level of Service for John Powell, Jr. improved acres per 1,000 is only 1.41 acres. This means there is an existing Coachella Valley Water District deficiency of 1.59 acres per 1,000 existing residents equating to $61,717,500.
Mike Rowe
It is a violation of the Mitigation Fee Act (especially after AB602) to charge new MSA Consulting
Phil Smith residents a level of service nearly doubling the cost of what the existing population Sunrise Company has invested in its community.
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
CYBA
desert valleys builders association
2023 BOARD OF DIRECTORS
PRESIDENT
Todd Hooks
Agua Caliente Band of
Cahuilla Indians
Immediate Past President
Deborah McGarrey
The Study does "not" address how the City will make up the parkland Southern California Gas Company
IS VICE PRESIDENT improvements to meet the 3 acres per 1,000 commitment established in the Tom Dubose Municipal Code and the General Plan. Neither document usurps the authority of Dubose Design Group, Inc. the Mitigation Fee Act's "nexus" requirement. The Study suggests that it is
SECRETARY/TREASURER
Pedro Rincon inconvenient to charge for or dedicate parkland improvement at the lesser level of Osborne Rincon CPAs service when they are, at the same time, demanding 3 acres per 1,000 of parkland VICE PRESIDENT or open space under Quimby.
OF ASSOCIATES
Allan Levin
Allan Levin & Associates The City has no legal authority to charge new residents for a level of service CHIEF EXECUTIVE OFFICER for which the community has not committed to. Having a statement written in Gretchen Gutierrez the Municipal Code or General Plan is not a commitment. The commitment is an actual inventory of parkland, and improvements, consistently at the level of service
DIRECTORS
Fred Bell/ 2023 PAC Chairman desired
Nobell Energy Solutions
Brian Benedetti There is an obvious shared benefit for existing residents to increasing the level of Brian Benedetti Construction
Mark Benedetti service for parkland improvement. The burden, however, would be solely on that Dede Callanan the new homebuyers. The fee or dedication becomes an unlawful tax, a violation of CalBest Title Proposition 26. The new residents pay for a level of service of 3 acres per thousand Mario Gonzales residents, yet they only receive 2 acres (example) per 1,000. Again, a tax.
GHA Companies
Joe Hayes Some might call this a bait & switch: Paying for one thing and getting something First Bank in return at a lesser value than what was promised.
Jeremy Roos
FreeVolt
The City needs to correct this proposed double collection as violation of law.
Dave Lippert
Lippert Construction, Inc
Paul Mahoney
PMA Advertising Transportation Facilities
Bruce Maize
Or Builders Table 5-1 exhibits a total cost for the desired level of service at $109,466,314.90 Russ Martin for buildout. This includes $34,297,853.37 of existing development responsibility.
Mission Springs Water How do they plan to pay for the existing deficiency? The statement in the Study is District
Dan Olivier too open-ended, nor is it definitive. If the City were to use General Fund monies, Nethery Mueller Olivier they would need to use it prior to this Study being implemented. It is doubtful the Alan Pace City has that kind of money to place into this fund. Grants are nice but highly Petra GeoSciences competitive. Bonds need to be paid back, generally from property taxes. New Kevin Pillow
AC Houston Lumber residents will not be segregated/protected from the collection of Bond payments John Powell, Jr. from property taxes. For new residents it is a second bite of the apple - a double Coachella Valley Water District dip. A new resident will pay 100% of their share of the cost for facilities as part of Mike Rowe
the home purchase price and then continue paying annually for the next 30 years as MSA Consulting
Phil Smith part of their property tax bill. Again, this becomes an unlawful tax under Sunrise Company Proposition 26.
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
TVBA
desert valleys builders association
2023 BOARD OF DIRECTORS
PRESIDENI
Todd Hooks
Agua Caliente Band of
Cahuilla Indians
Immediate Past President
Deborah McGarrey With decades of experience the DVBA knows the existing population will not be Southern California Gas Company
IS VICE PRESIDENT providing the $34 million owed to the fund. Per AB 602, and the Mitigation Fee Tom Dubose Act, the current level of service should be the basis of the Transportation Dubose Design Group, Inc. mitigation fee. To do otherwise, the new/future residents and businesses will not SECRETARY/TREASURER receive the level of infrastructure promised, thus it will be a violation of the Pedro Rincon
Osborne Rincon CPAs Mitigation Fee Act and an unlawful tax pursuant to Proposition 26.
VICE PRESIDENT General Government Facilities
OF ASSOCIATES
Allan Levin Page 32: Table 6-1: General Government Facilities Inventory List Allan Levin & Associates
CHIEF EXECUTIVE OFFICER Please explain "Mobile - Contractors Equipment" at $289,583 Gretchen Gutierrez The valuation of the Ford F-150s appear high at $55,000 • Retail appears to be approximately $47,000
DIRECTORS
Fred Bell/ 2023 PAC Chairman • The valuation of a Chevy Malibu appears high at $55,000 Nobell Energy Solutions • Retail appears to be approximately 35,000 Brian Benedetti
• The valuation of Ford Ranger - STVR appear high at $55,000 Brian Benedetti Construction
Mark Benedetti • Retail Super Crew ST appears to be approximately $35,000 Dede Callanan Fleet prices may be lower based on quantity.
CalBest Title
Mario Gonzales
GHA Companies The current Level of Service, as per legislation, should not only include the model Joe Hayes years of the agency's vehicles and equipment, but also their current values. To use First Bank 2023 prices as a Level of Service value is inaccurate at best. If "replacement Jeremy Roos value" were the intent of the legislation it would have been stated.
FreeVolt
Dave Lippert
Lippert Construction, Inc
Paul Mahoney Fire Facilities
PMA Advertising
Bruce Maize
Orr Builders Page 39: Table 7-1: Fire Facilities Inventory List Russ Martin The valuation of the Chevy Suburban appears high at $115,000 Mission Springs Water • A loaded Z71 4x4 is less than $75,000 District
Dan Olivier • The valuation of the Ford Taurus appears high at $55,000 Nethery Mueller Olivier • An equivalent might be the Chevy Malibu at $35,000 Alan Pace Fleet prices may be lower based on quantity.
Petra GeoSciences
Kevin Pillow
AC Houston Lumber The current Level of Service, as per legislation, should not only include the model John Powell, Jr. years of the agency's vehicles and equipment, but also their current values. To use Coachella Valley Water District 2023 prices as a Level of Service value is inaccurate at best. If "replacement Mike Rowe value" were the intent of the legislation it would have been stated MSA Consulting
Phil Smith
Sunrise Company
Alissa Vatter
Fidelity National Title
eff Wattenbarget
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 Police Facilities
Southern California Gas Company
IS VICE PRESIDENT
Tom Dubose Page 46: Table 8-1: Police Facilities Inventory List Dubose Design Group, Inc. The valuation of a Honda Motorcycle appears high at $55,000 SECRETARY/TREASURER • The City just approved the purchase of 4 BMW motorcycles for Pedro Rincon
Osborne Rincon CPAs less than $40,000 each, with police equipment VICE PRESIDENT • The valuation of a Ford C-Max appears high at $55,000 OF ASSOCIATES • New these vehicles may have been approximately $25,000 Allan Levin
Allan Levin & Associates • The valuation of the Ford Fusions appear high at $55,000 CHIEF ERECUTIVE OFFICER • A comparable vehicle might be the Chevy Malibu at $35,000 Gretchen Gutierrez
• The valuation of the Honda Accord appears high at $55,000 DIRECTORS A mid-priced Accord is $31,000
Fred Bell/ 2023 PAC Chairman Fleet prices may be lower based on quantity.
Nobell Energy Solutions
Brian Benedetti
The current Level of Service, as per legislation, should not only include the model Brian Benedetti Construction
Mark Benedetti years of the agency's vehicles and equipment, but also their current values. To use Dede Callanan 2023 prices as a Level of Service value is inaccurate at best. If "replacement CalBest Title value" were the intent of the legislation it would have been stated.
Mario Gonzales
GHA Companies
Joe Hayes The DVBA looks forward to ongoing dialogue and response to these areas outlined First Bank hereto and is available for continued review as this item proceeds.
Jeremy Roos
FreeVolt
Thank you for the opportunity to provide ongoing comment to this matter.
Dave Lippert
Lippert Construction, Inc
Paul Mahoney
PMA Advertising
Bruce Maize
Orr Builders Gretchen Gutierrez
Russ Martin Chief Executive Officer
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
Waltenbarger Construction 34360 Gateway Drive • Palm Desert • CA 92211 (760) 776-7001 office • (760) 776-7002 fax
www.TheDVBA.org