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Home My WebLink AboutItem 3C2025 BOARD 0.-DIRECTORS PRES/DENI Paul Mahoney, PMA Adve1tising Imme,liate Past President Todd Hooks Agua Caliente Band of Cahuilia Indians (Re't.) 1 st VICE .PRESIDENT Tom Dubose Dubose Design Group, lnc. SECRETARY/TREASURER VICE PRESIDENT OF ASffiCJATES Allan Levin Allan Levin & Associates CHIE::F EXECUTIVE OFFICER Gretchen Gutierrez DIRECTORS Fred Be!V 2025 PAC ChairmanNobell Energy Solutions Brian Benedetti Brian Benedetti Construc:tion Mark Benedetti Cheryl Gonzales GHA Companies Mario Gonzales -Presidents Council GHA Companies Joe Hayes -Presidents Council Jeremy Roos Agua Caliente Band of Cahuilla Indians Dave Lippett Lippe1i Construction, Inc Bruce Maize Orr Builders Russ Martin Mission Springs Water District Deborah McGarrey Southern California Gas Company Alan Pace Petra Ge0Scie11ces John Powell, Jr. Coachella Valley Water District Phil Smith -Presidents Council Sunrise Company Alissa Vatter Fidelity National Title Michelle Witherspoon MSA Consulting desert valleys builders association July 8, 2025 City of Palm Springs Jeffrey S. Ballinger, City Attorney 320 E. Tahquitz Canyon Way P.O. Box 2743 Palm Springs, CA 92263-2743 Dear Mr. Ballinger, Thank you for providing the Desert Valleys Builders Association with the amended 2023/2024 Annual and Five-Year Reports as described in the Mitigation Fee Act. This letter will address the arguments and explanations we have received from your office as City Attorney and Attorney of Best, Best, and Krieger Attorneys at Law, regarding our January letter concerning the previous iteration of the City's Annual and Five-Year Report. Quimby Act Fees While the Mitigation Fee Act does express its exclusion of the property or in lieu fees charged and collected pursuant to the Quimby Act, the adoption of these fees must possess the very same "nexus" requirements of the Nollan and Dolan cases and codified in California's Mitigation Fee Act. Up to this point, with every developer impact fee study DVBA has reviewed, and our preceding non-profit organization, Quimby Act Fees for parks and recreation needs have been included. With some minimums like a minimum of 3 acres per 1,000 residents, the needs must be established. A "nexus" requirement must be maintained after the adoption of a fee is scheduled, or dedication made. But only in-lieu fees would be subject to public scrutiny. The Act in Government Code Section 66477(a)(6)A establishes that should in-lieu revenues go unutilized for their intended use within 5 years; those funds shall be distributed to the appropriate property owners as refunds for the infrastructure that was not provided. SB 315 (Grayson) may be a 2-year bill, but it or another will soon require an annual report for in-lieu fees collected and interest earnedpursuant to the Quimby Act as established by the Mitigation Fee Act. 550 Oleander Road • Palm Springs, CA • 92262 (760)776-7001 office • (760) 776-7002 fax www.lheDVBA.org Item 3C 2025 BOARD Of DIRECTORS PRES/DENI Paul Mahoney, PMA Adve1tising Immediate Past PresidentTodd Hooks Agua Caliente Band of Cahuilla Indians (Ret.) 1st VJCE .PRESIDENT Tom Dubose Dubose Design Group, Inc. SECRETAR.YITREASURER VICE .PRESIDENT OF AS$0CIATES Allan Levin Allan Levin & Associates CHIEF EXECUTIVE OFFJCERGretchen Gutforrez DIRECTORS Fred Be!V 2025 PAC ChairmanNobel! Energy Solutio:ns Brian Benedetti Brian Benedetti Construction Mark Benedetti Cheryl Gonzales GHA Companies Mario Gonzales -Pl'esidents Coundl GHA Companies Joe Hayes -Presidents Council Jeremy Roos Agua Caliente Band of Cahuilla Indians Dave Lippett Lippert Construction, Inc Bruce Maize Orr Builders Russ Martin Mission Springs Water District Deborah McGarrey Southern California Gas Company Alan Pace Petra GeoSciences John Powell, Jr. Coachella Valley Water District Phil Smith -Presidents Council Sunrise Company Alissa Vatter Fidelity National Title Michelle Witherspoon MSA Consulting A desert valleys builders association Until then the Desert Valleys Builders Association formerly requests. based on Gov. Code Section 66277(a)(6)A. a five year report o(Revenues collected. by whom and development locations. Expenditures: improvements. rehabilitations. and New parks and facilities identified by specific proiect descriptions. costs. and locations: Future park proiect needs. locations and expected costs. • Special Development, Fund 123 Thank you for the explanation of the project in the Arenas Canyon Area. As is mentioned in your letter, there have been changes to the requirements of identifying qualified projects pursuant to amended Mitigation Fee Act legislation. Current and future projects should now be identified in the Capital Improvement Plan in the City's annual budgets. The descriptions of expenditures and future projects should fall in line with those descriptions as well as identifying the Mitigation Fee Act Fund's obligation to the project and percentage of completion. Additionally, as the purpose of the Mitigation Fee Act has not changed, should the current listed project be completed or completely funded, the City is obligated to identify its next needs and reasoning for the continuation in collecting revenues for that particular fund (CIP and pasted into the Annual Report or Fee Study). Drainage Construction, Fund 135 We do not know which report you are referencing, there is no identification of the project of improvements made for the expenditure of $913,191as required in the Mitigation Fee Act. The reference to Project No. 19-15, Palm Springs Storm Drain Line 20, is only identified on the second page under Future Improvements with an amount of $967,798. Again, without description or location. However, the previous page lists this same amount as "Balance Uncommitted," and above that, $944,587 as a "Committed Fund Balance." Without reviewing the amended reports, this is confusing. Again, there are other elements missing as well: percent obligation of fee to project, percent completed, etc. 550 Oleander Road • Palm Springs, CA • 92262 (760} 776-7001 office • (760} 776-7002 fax www.TheDVBA.org Item 3C 2025 BOARD 0.F DIRECTORS PRESIDENT Paul Mahoney, PMA Adve1tising Immediate Past President Todd Hooks Agua Caliente Band of Cahuilla Indians (Ret) JS' VICE PRESIDENT . Tom Dubose Dubose Design Group, Jnc. SECRETAR.YllREASURER VICE PRESIDENT OF AS$QCIATES Allan Levin Allan Levin & Associates CHIEF EXECUTIVE OFFICER Gretchen Gutierrez DIRECTORS Fred BelV 2025 PAC Chairman Nobel! Energy Solutions Brian Benedetti Brian Benedetti Construction Mark Benedetti Cheryl Gonzales GHA Companies Mario Gonzales -Presidents Council GHA Companies Joe Hayes -Presidents Council Jeremy Roos Agua Caliente Band of Cahuilla Indians Dave Lippert Lippert Construction, Inc Bruce Maize Orr Builders Russ Martin Mission Springs Water District Deborah McGarrey Southern California Gas Company Alan Pace Petra Ge0Scie11ces John Powell, Jr. Coachelta Valley Water District Phil Smith - Presidents Council Sunrise Company Alissa Vatter Fidelity National Title Michelle Witherspoon MSA Consulting A desert valleys builders association Public Arts In-Lieu Fee, Fund 150 You are correct, this is not a Mitigation Fee Act Fee. Neither is it a voluntary election to pay an in-lieu fee. A development project would not be approved for construction in the City without the .donation of approved art, and a maintenance agreement or payment of this fee. It is· a tax that was adopted long ago.· However, every agency that has adopted this fee in the last 20 years (Coachella Valley and Imperial Valley) has adopted it in accordance with the Mitigation Fee Act, even though there is no "nexus" of need for forcing art appreciation on people that just want to provide themselves a living and a home for their family. We appreciate the transparency The City provides with the Annual and Five-Year Report, relating to the Public Arts In-Lieu fee. Wastewater Treatment, Fund 420 As this section of the amended report is completely unlike the previous version, our previous comments have no bearing. However, pursuant to Section 66016, the City still has the obligation to show that the fees collected by the City do not exceed the cost to provide the infrastructure. The five-year test easily confirms that. While DVBA stands by its statement that new construction is not obligated to pay for repairs and rehabilitation of existing facilities, the City has the authority to request "Buy-in" by new construction for existing capacity, as debt service. Again, thank you for your in-depth responses to our January 2025 letter regarding the previous Annual and Five-Year Report. 550 Oleander Road • Palm Springs, CA • 92262 (760)776-7001 office • (760) 776-7002 fax www.lheDVBA.org Item 3C