LIVE OAK, CA (MPG) - At the April 15 meeting of the Live Oak City Council, City Manager Ben Moody presented a list of unused city-owned properties that could potentially be sold. This item came at the request of council, who are looking for options to increase revenue to address the ongoing budget deficit.

The city owns a total of 56 parcels, but there were 23 recommended for council review at this time. Based on size, some properties will be subject to the Surplus Land Act, which requires the land to be offered first for the development of qualifying affordable housing.

Some properties the council agreed to consider for sale include two adjacent parcels on Epperson Way, fragments from an old railroad right-of-way; several vacant parcels on N Street; a residential parcel on Date Street; and a 0.15-acre parcel on Pennington Road adjacent to the cemetery, which expressed an interest in purchasing. There is also a row of five parcels on Richard Ave., each about half an acre in a residential zone, which could possibly be split into smaller lots and sold. Councilmember Nancy Santana said residential parcels in the that area would be “highly desirable” and sell quickly.

A large 8.48-acre property on Pennington Road is deed restricted for public use, or must be deeded back to Caltrans, so the council decided it should be kept and considered for leasing options. An undeveloped 6.56-acre parcel on Larkin Road adjacent to farmland was also originally granted from Caltrans, so council decided that one should be considered for a farm lease.

After hearing council feedback on all the properties, City Manager Moody said staff will review the Surplus Land Act requirements, secure property appraisals, and request proposals for eligible properties. Each property will come back to council for official action. 

The council also considered updates to the Master Fee Schedule, presented by Finance Director Ethan Gutierrez. Increases were recommended to keep up with the cost of inflation and reflect the actual cost of services.

Gutierrez said most fees had not been updated since 2021, so they were recommended to increase by 33% to align with the current Consumer Price Index (CPI). Going forward, he recommended the fees be reviewed on an annual basis.

The primary focus of discussion was on Planning fees and Recreation fees, due to the increased demand for services, as well as changes in regulatory requirements and operational costs in these areas. In both departments, fees were well below the average for the region, and even with proposed increases they still won’t cover the actual costs of service.

Some highlights of the proposed Planning fee increases include use permits going from $1,899 up to $6,000 and environmental reviews from $645 up to $4,500.

The proposed recreation fee increases include bumping up most program fees from $30 to $40. Basketball would go from $40 to $60, with wrestling and youth soccer going from $50 to $60. If service levels and participation remain consistent across programs, the proposed fee adjustments are expected to generate an additional $35,000 annually.

Swimming pool fees were proposed to increase from $1 for a day pass and $0.50 for a night pass to $2 for each, bringing in an additional $22,000.

Gutierrez explained that the recreation fee increases will not cover the actual cost of service. But he said they are not aiming for full cost recovery because the programs provide such an essential benefit to the community: “Youth programs are the heart of Live Oak.”

City Manager Moody added that the city doesn’t take the Planning increases lightly, especially as they aim to encourage development and bring in new businesses. But he said the planning activities take up a lot of staff time, so they are working to find a “balance.” The proposed Planning fees are set just below the median, so the city wouldn’t be recovering the full cost. Moody said there will be ongoing benefits from completed projects, such as increased sales taxes and property taxes.

The council consensus was that the fee increases were reasonable. But Mayor Jeramy Chapdelaine asked whether the planning fee increases could be phased in over time, which could prompt developers to move forward on projects sooner to take advantage of the lower cost. Moody agreed “we don’t want to jeopardize growth.”

Vice Mayor Aaron Pamma said the city is finally getting “some traction” on new development, so he supported phased increases as well.

The council voted 4-0 (with Councilmember Ashely Hernandez absent) to approve the fee increases, with the exception of the Planning fees Staff will update the Planning fee recommendations and bring that back for action at a future meeting. The currently approved increases will go into effect on May 1.

The next meeting of the Live Oak City Council is scheduled for May 6.