City of Isleton
Minutes
Regular Meeting
June 10, 2025 06:30 PM
101 2nd Street, Isleton, CA 95641
https://cityofisleton.com/


  1. Call to Order
    The meeting was called to order at 6:30 pm by Mayor Iva Walton.

    1. Roll Call

      Present: Mayor Iva Walton, Vice-Mayor David Kent, Councilmember Pamela Bulahan, Councilmember Aleida Suarez, Councilmember Cara Pellegrini

      Staff Present:  Interim City Manager Jon Kennedy, Finance Director Jessica Bigby, City Attorney Rebekah Mojica, Deputy City Clerk Nate Anderson 


  2. Public Comments

    Public comments made regarding state of City currently, policies, amendments, job descriptions to any past issues, Items missing from agendas and how a policy would prevent future situations. Brown Act and Bain Act comments, Comments on the grand opening of the Asian American Heritage Park. 

  3. Consent Agenda

    1. Approve Minutes for the May 13th, 2025 Regular Meeting

    2. Ratification of the Payment of General & Sewer Fund Warrants

    Mayor Walton thanked Councilmember Pellegrini for supplying previous links for attended previous meetings. Noted to Deputy City Clerk that edit to previous month minutes  needs to be corrected.

    Councilmember Cara Pellegrini motioned to approve. Councilmember Aleida Suarez seconded the motion.

    The roll call vote:

      Aye   Mayor Iva Walton     Aye   Vice-Mayor David Kent     Aye   Councilmember Pamela Bulahan     Aye   Councilmember Aleida Suarez     Aye   Councilmember Cara Pellegrini  

  4. City Council Communications / Reports

    Councilmember Pellegrini encourage councilmembers to be neutral and listen with open minds. 

    No reports from Councilmembers Suarez or Bulahan or Mayor Walton. 

    Vice Mayor Kent suggested a change to the agenda, and wanted to withdraw from attending future events. 

    Lengthy discussion regarding agenda items 6 and 7.  

  5. Department Reports

    1. City Manager Report

      Council presented clarifying questions to Department Heads regarding their reports in lieu of Department Heads having to read the reports. 

    2. Fire Department

    3. Public Works

      Wilson Park is now open

    4. Code Enforcement / City Hall

      Clarified questions regarding boat/dock

  6. Debt Update 

     Debt Status:

      • Initial debt was $5.3 million, currently reduced to $4.6 million plus $100,000 in accounts payable (AP), totaling $4.8 million.

      • Fire engine sale helped reduce debt.

      • Wastewater payments, bonds, and state water board payment of $30,000 handled.

      • Sewer debt well-managed, but sewage projects are underfunded.

    • General Fund:

      • Paid past due state compensation insurance bill in February.

      • Audited debt of $76,000, renegotiated into a payment plan.

      • Another audit coming up for the current fiscal year.

      • Tight budget expected for the next few months.

    • Bridge Loan:

      • No principal payments made; currently in forbearance with $5,000/month interest payments for the next 5 months.

      • Need a solution for the $500,000 debt, possibly through an accounting loan.

    • Employment Development Department (EDD) Debt:

      • Unpaid debt from 2007-2013, accruing penalties and interest.

      • Filing for Chapter 9 would result in default, which is undesirable but may be considered if no other options arise.

    • Plans Moving Forward:

      • Working on multiple plans (Plan C in development) to address financial challenges.

  7. Council Member Travel Reimbursement Request & Future Event Discussion/Request

    Finance Director outlined the following:                                                                                                                              

    • Council member reimbursements discussed in April were found to exceed acceptable limits.

    • Reimbursements must now be pre-approved by council or brought for post-approval.

    • Finance director role includes designing, maintaining, and enforcing internal controls.

    • Approval of expenditures by individual council members deemed inappropriate.

    • Emphasis on the need for council approval for transparency and accountability.

    • Agenda item introduced to address these issues for discussion and resolution.

                   

    Councilmember Cara Pellegrini motioned to approve. Mayor Iva Walton seconded the motion.

    The roll call vote:

      Aye   Mayor Iva Walton     Aye   Councilmember Pamela Bulahan     Aye   Councilmember Aleida Suarez     Aye   Councilmember Cara Pellegrini     Abstained   Vice-Mayor David Kent  

  8. 2025/26 Adopted Budget 

    • Budget Process:

      • Budget is a plan for the year, with flexibility for amendments.

      • Built based on understanding gained over the last six months.

      • Budget guides city manager, department heads, and finance personnel.

      • Likely amendments throughout the year due to changes.

    • General Fund:

      • Previous city managers overestimated budget (e.g., $3 million).

      • Budget set at $1.6 million with some wishful estimates.

      • Expenditures based on past six months' data, with seasonal adjustments.

    • Debt & Expenses:

      • Payroll and benefits based on position control form.

      • Debt service payments not at the target of $250,000.

      • Budget is conservative with some flexibility for future changes.

    • Unforeseen Expenses:

      • Sewer and other volatile costs are significant budget risks.

      • Lawsuits could potentially destabilize the budget.

    • Contracted Services:

      • Workers’ comp and professional management contracts.

      • Auditing contract estimated at $70,000.

      • Sheriff’s contract to be renegotiated due to long-standing payments and owed amounts.

      • Legal services and planning/engineering costs are negotiated or capped.

    • Utility & Supply Costs:

      • Utilities (electricity, gas, water, etc.) based on past six-month averages.

      • Fuel costs reduced based on prior usage.

      • Public health and safety supplies budgeted conservatively.

      • Organizational supplies cut significantly from past years.

    • Software & Technology:

      • Focus on reducing paper and supplies, moving toward software solutions.

      • Potential increase in software costs due to digital transition.

    • Equipment & Maintenance:

      • Equipment costs for fire and public works anticipated but not yet detailed.

      • Vehicle and building maintenance costs reduced but necessary due to aging infrastructure.

    • Insurance & Protective Gear:

      • Lower budget for protective fire gear, based on fewer new purchases.

      • Reclamation district fees and professional services included in the budget.

    • Miscellaneous and Debt Service:

      • Miscellaneous budget reduced throughout the planning process.

      • Debt service payment is lower than desired, with efforts to improve payment plans.

    • Revenue & Collection:

      • Revenue affected by high levels of unpaid bills.

      • Efforts to improve collections through letters and communication.

    • Repairs:

      • Recommended repairs totaling $130,000, including critical valve repairs and smaller projects.

    • Grants:

      • Jump Start Grant allocated with one-third in the current year.

    • Position Control & Staffing:

      • Includes contracted positions and payroll staff.

      • Positions filled with part-time or temporary roles, i.e., firefighter, sewer operator, building official.

    • Expenditures Overview:

      • Professional Management: $108,000 budgeted for 2024 (not fiscal year).

      • City Manager and Assistant Manager: $236,000 spent, $128,000 savings with Jon’s role.

      • Contract Position: $180,000, covering salary, insurance, and benefits for Margaret and Dave.

      • Savings from Contract Position: Replaces $319,000 worth in taxes and benefits, resulting in a $139,000 savings.

      • Legal Expenses: Savings of $27,250 from budgeted and billed legal costs (e.g., FEMA-related expenses).

    Councilmember Aleida Suarez motioned to approve. Councilmember Cara Pellegrini seconded the motion.

    The roll call vote:

      Aye   Mayor Iva Walton     Aye   Vice-Mayor David Kent     Aye   Councilmember Pamela Bulahan     Aye   Councilmember Aleida Suarez     Aye   Councilmember Cara Pellegrini  

  9. SACOG 2025 Blueprint: Isleton Jurisdiction Highlight

    • Disbursement and Claims:

      • Competing for the discretionary award and ensuring claims are based on a formula.

      • Issue arose when an individual sent the information without notifying the team.

    • Main Street Revitalization:

      • Concerns about the feasibility of revitalizing Main Street and getting storefronts operating long-term.

      • Advocated for more practical measures to address storefront problems.

    • Alternative Remedies:

      • Suggested considering practical remedies like special taxation (ballot measure) or non-conforming operations under zoning.

      • Cited San Francisco as an example of utilizing such measures.

      • Proposed a two-pronged approach rather than relying on a single solution.

  10. Historic District Disclosure / Isleton Historic Preservation Review Board/Planning Commission Discussion

    • IHPRB Role and Function:

      • IHPRB is tasked with overseeing changes to Main Street, which requires adherence to existing codes and building inspector oversight.

      • Some confusion about the necessity of IHPRB involvement, given the responsibilities of the building inspector and administrative staff.

      • IHPRB's role in maintaining historic designation through adherence to preservation standards.

      • The IHPRB ensures that new constructions complement historic structures and are in line with preservation rules.

    • Historic Preservation:

      • National Park Service requires an ordinance and a historic review board to maintain a historic district.

      • IHPRB issues Certificates of Appropriateness (COAs) to ensure changes comply with historic preservation standards.

      • District's target history is from 1926-1941, emphasizing a unique historic setting with contributions from Chinese and Japanese immigrants.

    • Main Street and Property Maintenance:

      • Main Street’s appearance is vital to preserving its historic character, with the IHPRB focused on restoring and maintaining properties to prevent decay.

      • Efforts to educate the public and encourage property maintenance (e.g., painting, removing no trespassing signs).

      • The IHPRB serves as a guide to property owners but cannot enforce code violations.

    • Collaboration with City Council:

      • IHPRB serves the council and provides expertise on historic preservation.

      • Disagreements between IHPRB and property owners are brought before the council, which has the final say.

    • Challenges with Enforcement:

      • Lack of enforcement mechanisms to ensure compliance with IHPRB guidelines.

      • Need for a better process to address non-compliance by property owners.

      • Cooperation from some businesses has improved Main Street, but some still ignore the rules, impacting the district's authenticity.

    • Website and Documentation Improvements:

      • Efforts to modernize the IHPRB website and improve transparency, consistency, and ease of use.

      • Work on updating the ordinance and documents to streamline operations and impact.

    • Ordinance Clarification:

      • A request to remove an error from the ordinance, which misinterpreted a historic district as a historic landmark, potentially confusing property rights.

      • The clarification ensures that all buildings in the district, even non-contributing ones, must adhere to preservation standards.

  11. Project Updates - City Manager & Finance Director

    1. CalRecycle Demand Letter - Return of Funds for Local Assistance Grant Program of $18,400

      • CalRecycle Program Funds:

        • $20,000 was granted for the CalRecycle program.

        • Funds were not spent as intended or allocated appropriately.

        • The program was presented to the council, but there was lack of follow-through and no one was willing to utilize it.

        • Prior staff notes indicated that the funds would eventually need to be paid back.

        • The bill for repayment has come due, and a discussion with Diane confirmed that the council decided not to proceed with the required work.

    2. AUDIT UPDATE Prop 1E - Small Communities Flood Feasibility Risk Reduction Study

      • Audit Update:

        • The audit for the Prop 1E small communities flood capability and risk reduction study is almost complete.

        • Reportable findings are expected from the audit.

        • Efforts have been made to minimize financial impact, with hopes for $0 in findings.

        • The lower auditors are advocating on behalf of the community to avoid financial penalties.

        • The entire $500,000 grant is at risk depending on the audit outcome.

  12. Closed Session
    1. Conference with Legal Counsel - Anticipated Litigation Pursuant to Gov. Code Section 54956.9 (d)(2) or (3)

      Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Section 54956.9: One potential case 

      No Reportable Action
  13. Adjournment

    Ended Meeting 10:06 PM