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 September 26, 2023
I" VICE PRESIDENT
Tom Dubose
Dubose Design Group, Inc. City of Cathedral City
SECRETARY/TREASURER Charles McClendon, City Manager
Pedro Rincon 68700 Lalo Guerrero
Osborne Rincon CPAs
VICE PRESIDENT Cathedral City, CA 92234
OF ASSOCIATES
Allan Levin RE: Development Impact Fee Study
Allan Levin & Associates
CHIEF EXECUTIVE OFFICER
Gretchen Gutierrez Dear Mr. McClendon,
DIRECTORS
Fred Bell/ 2023 PAC Chairman
Administrative Fee
Nobell Energy Solutions
Brian Benedetti
Brian Benedetti Construction The Administrative Fee still requires a "nexus" to new construction. Many of the Mark Benedetti
listed studies of the September 21, 2023, Memorandum are driven by the wants Dede Callanan
CalBest Title and needs of the existing population, often as part of the General Plan. They are Mario Gonzales not conducted regularly except when required by a particular development. Maybe GHA Companies as part of an Environmental Impact Report. As these plans affect both current and Joe Hayes
future city administration, there should be a shared cost of the Transportation First Bank
Jeremy Roos Master Plan, Public Safety Master Plan, Public Facilities Master Plan, and Parks FreeVolt Master Plan.
Dave Lippert
Lippert Construction, Inc
Paul Mahoney Page 17: Park Facility Improvement - Level of Service PMA Advertising
Bruce Maize There is a significant difference between the Quimby Act and The Mitigation Fee Orr Builders Act. However, what they have in common is the intent to assure the existing Russ Martin
Mission Springs Wate population that the growth, in population by residents or businesses, doesn't negatively affect the existing level of service.
The Quimby Act is easy. The City can either receive park or open space land, or collect an in-lieu fee based on the value of the subdivision land of single-family housing. Our understanding from other cities is that the Subdivision Map Act (the authority of the Quimby Act) doesn't have a role in the development of multifamily construction. Under what authority is the City collecting fees or lanc from multifamily housing?
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 The Mitigation Fee Act allows for a local agency to charge impact fees to I" VICE PRESIDENT
Tom Dubose developments that would otherwise negatively impact the existing population. In Dubose Design Group, Inc. this case parkland improvements. The improvements are expected to be similar to SECRETARY/TREASURER existing facilities, and the level of service as well. The level of service may be Pedro Rincon
amended where "appropriate". This requires an established "need" to support the Osborne Rincon CPAs
VICE PRESIDENT nexus. The standard of the General Plan is a "want' not a "need". The "need" is OF ASSOCIATES for future growth not to infringe on the facilities of the existing population.
Allan Levin
Allan Levin & Associates
CHIEF EXECUTIVE OFFICER The City exceeds the acreage requirement for publicly owned park or open space.
Gretchen Gutierrez However, it is far off from the goal of these spaces being improved with amenities averaging $750,000 an acre. The City may adopt a mitigation fee for the DIRECTORS improvement of parkland; however, the City is limited to charging for the current Fred Bell/ 2023 PAC Chairman
Nobell Energy Solutions level of service. It is not appropriate to charge new construction for a higher level Brian Benedetti of service than what currently exists. Remember the impact fees are to assure that Brian Benedetti Construction the existing population is not negatively affected by the planned growth. The Mark Benedetti
"nexus' requirement is based on the level of service that won't harm the existing Dede Callanan
CalBest Title population.
Mario Gonzales
GHA Companies One of the things that defines a "fee" is that there is a direct benefit of the fee Joe Hayes
First Bank payor. Should a new level of service be required of new construction such as for Jeremy Roos parkland improvement, two things will occur. The new population will pay or FreeVolt provide for the improvement of 3 acres per one thousand new residents. The Dave Lippert
average of improved parkland increases from 1.41. acres per one thousand Lippert Construction, Inc
Paul Mahoney population to 2 acres (for example. The new population will not receive the 3 MA Advertising acres standard promised while the existing population gets a higher level of service Bruce Maize without the investment. The existing population benefits from new residents being Orr Builders taxed in violation of Proposition 26.
Russ Martin
Mission Springs Water
District Proposition 26 added the following definition of "tax" to the Constitution, which Dan Olivier expands the types of local government levies that require voter approval under Nethery Mueller Olivier article XIII C.
Alan Pace
Petra GeoSciences
Kevin Pillow As used in this article, "tax" means any levy, charge, or exaction of any kind AC Houston Lumber imposed by a local government, except the following John Powell, Jr.
Coachella Valley Water District 1. The Special Benefit or Privilege Exception provides that a fee imposed by local Mike Rowe
government that provides a special benefit to the person paying the fee or directly grants the person some privilege is not a tax. Common examples include Sunrise Company fees for planning permits, restricted neighborhood parking permits, and entertainment and street closure permits.
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 2. The Government Service or Product Exception provides that a fee imposed for 1* VICE PRESIDENT a specific government service or government product provided directly to the Tom Dubose
Dubose Design Group, Inc. person paying the fee is not a tax. Some common examples are fees for parks and SECRETARY/TREASURER recreation classes.
Pedro Rincon
Osborne Rincon CPAs
VICE PRESIDENT 3. The Licenses and Permits Exception provides that the following are not taxes:
OF ASSOCIATES a fee imposed for issuing licenses and permits; and the costs of administrative Allan Levin enforcement of licenses and permits. Common examples include health and Allan Levin & Associates safety permits, building licenses, police background checks and permits for CHIEF EXECUTIVE OFFICER regulated businesses (such as massage establishments, card rooms, taxicabs and Gretchen Gutierrez
tow-truck operators).
DIRECTORS
Fred Bell/ 2023 PAC Chairman For the exceptions set forth in items 1 through 3, Prop. 26 imposes the additional Nobell Energy Solutions requirement that the fee imposed must not exceed the city's reasonable costs. If Brian Benedetti
Brian Benedetti Construction the fee does exceed the reasonable costs, then it is not eligible for any of these Mark Benedetti exceptions and would be a tax subject to voter approval.
Dede Callanan
CalBest Title 4. The Local Government Property Exception provides that fees charged for the Mario Gonzales use of or entrance to local government property is not a tax. Some common GHA Companies
Joe Hayes examples are city facility room rentals, equipment rental fees, park entrance fees First Bank and golf greens fees.
Jeremy Roos
FreeVolt 5. The Fines and Penalties Exception provides that fines and penalties imposed Dave Lippert
Lippert Construction, Inc for violations of the law are not taxes. Common examples include parking fines, Paul Mahoney code enforcement fines, library late return penalties and late payment penalties.
MA Advertising
Bruce Maize 6. The Property Development Exception provides that a fee imposed as a Orr Builders condition of property development is not a tax. Some common examples are Russ Martin
Mission Springs Water development impact fees, construction and grading permit fees, fees imposed by District California Environmental Quality Act mitigation requirements, and Quimby Act Dan Olivier and park mitigation fees.
Nethery Mueller Olivier
Alan Pace
Petra GeoSciences 7. The Prop. 218 Exception provides that property assessment and property- Kevin Pillow related fees that are already subject to the approval requirements of Prop. 218 AC Houston Lumber are not taxes. Common examples include water and sewer rates and special Coachella Valicy Water Distict district assessments, such as Landscape and Lighting District Act assessments.
Mike Rowe
MSA Consulting
Phil Smith
Alisa va Company
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 City staff has tried to explain that the City is committed to parks and parkland 1" VICE PRESIDENT
Tom Dubose improvement at 3 acres per one thousand residents because it is in the General Dubose Design Group, Inc. Plan. The General Plan is based on the existing population's wants and desires.
SECRETARY/TREASURER These wants and desires are not based on their willingness to invest their own Pedro Rincon
Osborne Rincon CPAs money in any of the goals of the General Plan. The proof of this is last year's VICE PRESIDENT election where the City proposed having Desert Recreation District operate the OF ASSOCIATES City's parks for a nominal fee. The initiative failed.
Allan Levin
Allan Levin & Associates
CHIEF EXECUTIVE OFFICER The Desert Valleys Builders Association remains concerned that the Gretchen Gutierrez Administrative Fee is excessive, the Parkland Improvement Fee is only supportable at 1.41 acres per one thousand population, and the City may not DIRECTORS currently have the authority to collect Parkland Fees pursuant to the Quimby Act.
Fred Bell/ 2023 PAC Chairman
Nobell Energy Solutions
Brian Benedetti
Brian Benedetti Construction Respectfully,
Mark Benedetti
Dede Callanan
CalBest Title
Mario Gonzales
GHA Companies Gretchen Gutierrez
Joe Hayes
First Bank Chief Executive Officer
Jeremy Roos
FreeVolt
Dave Lippert
Lippert Construction, Inc
Paul Mahoney
MA Advertising
Bruce Maize
Orr 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