1 City of Isleton
MINUTES
Regular Meeting
Tuesday, July 14, 2026 06:30 PM
City Council Chambers
101 2nd Street, Isleton, CA 95641
https://cityofisleton.com/
1. Call to Order
The meeting was called to order at 6:31 pm by Mayor Aleida Suarez.
1. Roll Call
Present: Mayor Aleida Suarez, Vice-Mayor Cara Pellegrini, Councilmember Pamela Bulahan, Councilmember Terri Hupfer
Staff Present: Interim City Manager Jon Kennedy, Finance Director Jessica Bigby, City Attorney Sean Cameron
2. Public Comments
None
3. Consent Agenda
1. Approve Minutes for June 9, 2026 Regular Meeting
2. Ratification of May 2026 and June 2026 Warrants
Vice-Mayor Cara Pellegrini motioned to approve. Councilmember Terri Hupfer seconded the motion.
The motion passed with the following vote:
4 In Favor 0 Opposed
Abstained Absent Recused
4. Adopt Resolution Submitting General Transactions and Use Tax Measure to the Voters and Adoption of Related Ordinance
The council adopted Resolution 09-26 to place a 1% general transactions and use tax measure on the November 3, 2026 ballot for a 10-year period, replacing expiring tax measures B and C; the ordinance was introduced and the first reading was waived, with a second reading to occur at a subsequent meeting.
Vice-Mayor Cara Pellegrini motioned to approve. Mayor Aleida Suarez seconded the motion. 2 The roll call vote:
Aye Mayor Aleida Suarez Aye Vice-Mayor Cara Pellegrini Aye Councilmember Pamela Bulahan Aye Councilmember Terri Hupfer
5. Adopt Resolution No. 10-26 affirming the City of Isleton's participation in the Sacramento Urban County Community Development Block Grant (CDBG)
The council adopted Resolution 10-26 affirming the city's participation in CDBG, HOME, and ESG programs for fiscal years 2027-2029 and authorizing the Interim City Manager to execute a cooperation agreement with the Sacramento Housing and Redevelopment Agency.
Councilmember Terri Hupfer motioned to approve. Vice-Mayor Cara Pellegrini seconded the motion.
The roll call vote:
Aye Mayor Aleida Suarez Aye Vice-Mayor Cara Pellegrini Aye Councilmember Pamela Bulahan Aye Councilmember Terri Hupfer
6. Zoning Ordinance Diagnosis Report
The council received and discussed a zoning ordinance diagnosis report funded through a grant, which identified improvements needed to meet state standards; the council discussed next steps including public engagement workshops and a 30-day written comment period, with no action taken at this time.
7. PUBLIC HEARING regarding delinquent Sewer charges for the 2025/26 Fiscal Year The council opened a public hearing on delinquent sewer charges totaling approximately $100,000, with no public comments received; the council tabled action to the next meeting to allow time for additional public input and staff to compile a final list.
8. PUBLIC HEARING regarding delinquent Cal Waste charges for the 2025/26 Fiscal Year The council opened a public hearing on delinquent waste service charges, which were significantly smaller in amount than sewer charges; the council tabled action to the next meeting when a resolution will be adopted to levy the charges on the county property tax roll.
9. Adopt Resolution # 11-26 - Approval of Change in Terms Agreement with RTC VI, LLC / Red Tower Capital
The council adopted Resolution 11-26 approving a renegotiated loan agreement with Red Tower Capital that converts a balloon payment to a fixed 10-year note with monthly payments of approximately $6,500-$6,700, includes an $85,000 principal reduction, lowers the interest rate, and removes the city's operational property from collateral.
Councilmember Terri Hupfer motioned to approve. Mayor Aleida Suarez seconded the motion.
The roll call vote:
Aye Mayor Aleida Suarez Aye Vice-Mayor Cara Pellegrini Aye Councilmember Pamela Bulahan Aye Councilmember Terri Hupfer
10. City Council Communications / Reports
3 Nothing to report.
11. Closed Session
1. Conference with Legal Counsel - Anticipated Litigation Pursuant to Gov. Code Section 54956.9 (d)(2) or (3) 1 case
No Reportable Action
12. Adjournment
The meeting was adjourned at 7:45 PM.
4 Resolution #11-26
Resolution #11-26 1
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ISLETON APPROVING A CHANGE IN TERMS AGREEMENT WITH RTC VI, LLC RELATED TO THE CITY’S EXISTING LOAN OBLIGATION, APPROVING RELATED
SECURITY DOCUMENTS, AND AUTHORIZING THE INTERIM CITY MANAGER TO EXECUTE ALL DOCUMENTS
NECESSARY TO COMPLETE THE TRANSACTION
WHEREAS,
the City of Isleton previously entered into a secured loan transaction with RTC VI, LLC, c/o Red Tower Capital, Inc., related to a Secured Note dated December 20, 2023, in the original principal amount of Five Hundred Thousand Dollars ($500,000.00); and
WHEREAS,
City staff, the City Attorney, and representatives of RTC VI, LLC have negotiated a proposed Change in Terms Agreement intended to modify the repayment terms of the existing loan obligation; and
WHEREAS,
the proposed Change in Terms Agreement provides, among other things, that upon payment of a principal reduction payment in the amount of Eighty-Five Thousand Dollars ($85,000.00), the modified loan balance will be Four Hundred Sixty-Seven Thousand Four Hundred Thirty-Five Dollars and Eighteen Cents ($467,435.18); and
WHEREAS,
the proposed Change in Terms Agreement further provides that the modified loan balance will be fully amortized at ten percent (10%) interest over one hundred five (105) months, with monthly principal and interest payments in the amount of Six Thousand Six Hundred Ninety-Seven Dollars and Twenty-Seven Cents ($6,697.27), commencing August 1, 2026, and continuing monthly thereafter until April 1, 2035; and
WHEREAS,
as part of the negotiated transaction, the City will execute certain additional security documents, including a Deed of Trust, Security Agreement, and Fixture Filing with Assignment of Rents encumbering City-owned real property commonly known as 208 and 210 Jackson Boulevard, Isleton, California, APN 157-0015-004-0000, as additional collateral securing the modified loan obligation; and 5 Resolution #11-26 2
WHEREAS,
the proposed Change in Terms Agreement provides that upon sale of the additional collateral, RTC VI, LLC will release the additional collateral upon payment of eighty percent (80%) of the sale proceeds toward the outstanding loan balance, and that such paydown will reduce the number of payments required to satisfy the loan but will not recast the monthly payment amount; and
WHEREAS,
the City Council desires to approve the proposed Change in Terms Agreement and related documents, subject to final review and approval as to form by the City Attorney; and
WHEREAS,
the City Council further desires to authorize the Interim City Manager to execute the Change in Terms Agreement, Deed of Trust, Security Agreement, Fixture Filing with Assignment of Rents, and any related documents necessary or advisable to complete the transaction, including escrow, title, recording, closing, and administrative documents.
NOW, THEREFORE, BE IT RESOLVED,
by the City Council of the City of Isleton as follows:
SECTION 1. Recitals.
The above recitals are true and correct and are incorporated herein by this reference.
SECTION 2. Approval of Change in Terms Agreement.
The City Council hereby approves the Change in Terms Agreement with RTC VI, LLC, in substantially the form presented to the City Council, subject to any non-substantive revisions approved by the City Attorney and Interim City Manager.
SECTION 3. Approval of Related Security Documents.
The City Council hereby approves the related Deed of Trust, Security Agreement, and Fixture Filing with Assignment of Rents, and any related security, escrow, title, recording, or closing documents necessary to complete the transaction, in substantially the form presented to the City Council, subject to any nonsubstantive revisions approved by the City Attorney and Interim City Manager.
SECTION 4. Authorization to Execute Documents.
The Interim City Manager is hereby authorized and directed to execute, on behalf of the City, the Change in Terms Agreement, Deed of Trust, Security Agreement, Fixture Filing with Assignment of Rents, and any other documents, certificates, escrow instructions, title documents, closing documents, notices, or related instruments necessary or advisable to complete the transaction approved by this Resolution. 6 Resolution #11-26 3
SECTION 5. Authorization to Take Related Actions.
The Interim City Manager, Finance Director, City Attorney, and their designees are hereby authorized to take all actions necessary or appropriate to implement this Resolution and complete the transaction, including coordinating with RTC VI, LLC, escrow, title, and recording offices, and arranging for any payment required at closing or execution.
SECTION 6. Effective Date.
This Resolution shall take effect immediately upon its adoption.
PASSED, APPROVED AND ADOPTED this 14th day of July, 2026 by the following vote:
The roll call vote:
Aye Mayor Aleida Suarez Aye Vice-Mayor Cara Pellegrini Aye Councilmember Pamela Bulahan Aye Councilmember Terri Hupfer
7 Resolution #11-26 4
PASSED AND ADOPTED by the CITY COUNCIL of THE CITY OF ISLETON, COUNTY OF SACRAMENTO, of the STATE OF CALIFORNIA on this 14th day of July, 2026
ATTEST
______________________________________ _______________________________________ CITY CLERK MAYOR, Aleida Suarez
8 Resolution # 09-26
Resolution # 09-26 1
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ISLETON, CALIFORNIA, CALLING AND GIVING NOTICE
OF THE SUBMISSION TO THE VOTERS OF A GENERAL TRANSACTIONS AND USE TAX MEASURE AT THE NOVEMBER 3, 2026 GENERAL MUNICIPAL ELECTION; REQUESTING CONSOLIDATION WITH THE STATEWIDE GENERAL ELECTION; REQUESTING ELECTION SERVICES FROM THE SACRAMENTO COUNTY REGISTRAR OF VOTERS; DIRECTING THE CITY ATTORNEY TO PREPARE AN IMPARTIAL ANALYSIS; AUTHORIZING BALLOT ARGUMENTS; APPROVING AN ORDINANCE IMPOSING A GENERAL TRANSACTIONS AND USE TAX SUBJECT TO
VOTER APPROVAL
WHEREAS,
the City of Isleton is responsible for providing essential municipal services for the protection of the public health, safety, and welfare; and
WHEREAS,
the City provides a variety of municipal services including public safety, emergency response, infrastructure maintenance, planning and development services, code enforcement, parks and public facilities maintenance, and other governmental services; and
WHEREAS,
the City currently receives revenue from two voter-approved transactions and use tax measures totaling one percent (1.0%), both of which are scheduled to expire on March 31, 2027; and
WHEREAS,
the expiration of such revenues would reduce locally controlled funding available for municipal services and operations; and
WHEREAS,
the City Council desires to provide voters with the opportunity to consider a measure to replace expiring local revenues prior to the expiration of the existing transactions and use taxes; and
WHEREAS,
the City Council finds that revenue generated by a general transactions and use tax should remain under 9 Resolution # 09-26 2
local control and be available for expenditure on any lawful municipal purpose through the City's annual budget process; and
WHEREAS,
the proposed measure constitutes a general tax pursuant to Article XIII C of the California Constitution and requires approval by a majority vote of those voting on the measure at a regularly scheduled general election; and
WHEREAS,
the City Council desires to submit the proposed General Transactions and Use Tax Measure to the voters at the November 3, 2026 General Municipal Election.
NOW, THEREFORE, BE IT RESOLVED,
by the City Council of the City of Isleton as follows:
SECTION 1. Recitals.
The foregoing recitals are true and correct and are hereby incorporated into this Resolution by this reference.
SECTION 2. Election Called.
Pursuant to Article XIII C of the California Constitution, the Elections Code, the Revenue and Taxation Code, and other applicable provisions of law, the City Council hereby calls and orders to be held on November 3, 2026, a General Municipal Election for the purpose of submitting to the qualified voters of the City of Isleton a General Transactions and Use Tax Measure.
SECTION 3. Submission of Measure.
The City Council hereby submits to the voters the question of whether Ordinance No. ____-26, attached hereto as Exhibit "A" and incorporated herein by this reference, shall be adopted.
SECTION 4. Ballot Question.
The ballot question submitted to the voters shall read substantially as follows:
10 Resolution # 09-26 3
"Shall the City of Isleton adopt a General Transactions and Use Tax at the rate of 1%, replacing expiring local revenues and providing approximately $ 145,740 annually in locally controlled general revenue for general governmental purposes, automatically expiring after 10 years" YES _____
NO _____
SECTION 5. Nature of Tax.
The proposed tax is a general tax. All revenues derived from the tax shall be deposited into the City's General Fund and may be used for any lawful municipal purpose.
SECTION 6. Vote Required.
The measure shall become effective only if approved by a majority of the voters voting on the measure.
SECTION 7. Consolidation.
Pursuant to Elections Code Section 10403, the City Council hereby requests the Board of Supervisors of Sacramento County to consolidate the election called by this Resolution with the statewide General Election to be held on November 3, 2026.
SECTION 8. Election Services.
The Sacramento County Registrar of Voters is authorized and requested to conduct the election, canvass the returns, and perform all services and proceedings necessary for the conduct of the election.
SECTION 9. Impartial Analysis.
The City Attorney is directed to prepare an impartial analysis of the measure in accordance with Elections Code Section 9280 and any other applicable provisions of law.
SECTION 10. Ballot Arguments.
The City Council authorizes the filing of ballot arguments and rebuttal arguments regarding the measure in accordance with applicable provisions of the Elections Code. 11 Resolution # 09-26 4
SECTION 11. Ordinance.
Ordinance No. ____-26, attached hereto as Exhibit "A," is hereby approved by at least a two-thirds vote of all members of the City Council for submission to the qualified voters of the City of Isleton. The Ordinance shall be adopted and become effective only if approved by a majority of voters voting on the measure.
SECTION 12. CEQA.
The City Council finds that adoption of this Resolution is not a project subject to the California Environmental Quality Act pursuant to CEQA Guidelines Section 15061(b)(3), because it can be seen with certainty that there is no possibility that the action may have a significant effect on the environment.
SECTION 13. Filing of Resolution.
The City Clerk is authorized and directed to transmit certified copies of this Resolution and all required election materials to the Sacramento County Board of Supervisors and the Sacramento County Registrar of Voters.
SECTION 14. Severability.
If any section, subsection, sentence, clause, phrase, or portion of this Resolution is held invalid or unconstitutional for any reason, such decision shall not affect the validity of the remaining portions of this Resolution.
SECTION 15. Effective Date.
This Resolution shall take effect immediately upon adoption.
PASSED, APPROVED AND ADOPTED this 14th day of July, 2026 by the following vote:
The roll call vote:
Aye Mayor Aleida Suarez Aye Vice-Mayor Cara Pellegrini Aye Councilmember Pamela Bulahan Aye Councilmember Terri Hupfer
12 Resolution # 09-26 5
PASSED AND ADOPTED by the CITY COUNCIL of THE CITY OF ISLETON, COUNTY OF SACRAMENTO, of the STATE OF CALIFORNIA on this 14th day of July, 2026
ATTEST
______________________________________ _______________________________________ CITY CLERK MAYOR, Aleida Suarez
13 Resolution # 10-26
Resolution # 10-26 1
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ISLETON AFFIRMING THE CITY'S PARTICIPATION IN
THE SACRAMENTO URBAN COUNTY COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG), HOME
INVESTMENT PARTNERSHIPS (HOME), AND EMERGENCY SOLUTIONS GRANT (ESG) PROGRAMS FOR FISCAL YEARS 2027, 2028, AND 2029, AND AUTHORIZING THE INTERIM CITY MANAGER TO EXECUTE A
COOPERATION AGREEMENT WITH THE SACRAMENTO HOUSING AND REDEVELOPMENT AGENCY
WHEREAS,
the Sacramento Housing and Redevelopment Agency ("SHRA") serves as the administrative entity for the Sacramento Urban County under the federal Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME), and Emergency Solutions Grant (ESG) Programs administered by the United States Department of Housing and Urban Development (HUD); and
WHEREAS,
the City of Isleton is a unit of general local government as defined by 24 CFR Part 570 and is eligible to participate in the Sacramento Urban County for purposes of receiving federal community development and housing assistance; and
WHEREAS,
participation in the Sacramento Urban County requires execution of a Cooperation Agreement between the City of Isleton and SHRA for the three-year qualification period covering Fiscal Years 2027, 2028, and 2029; and
WHEREAS,
participation in the Sacramento Urban County allows SHRA to administer eligible CDBG, HOME, and ESG activities on behalf of the City and to prepare and submit required federal planning and reporting documents to HUD; and
WHEREAS,
the City Council has determined that continued participation in the Sacramento Urban County is in the best interests of the City of Isleton and its residents.
14 Resolution # 10-26 2
NOW, THEREFORE, BE IT RESOLVED,
by the City Council of the City of Isleton as follows:
Section 1. The City Council affirms its desire to continue participating in the Sacramento Urban County for purposes of the Community Development Block Grant (CDBG), HOME Investment Partnerships (HOME), and Emergency Solutions Grant (ESG) Programs for Fiscal Years 2027, 2028, and 2029.
Section 2. The Interim City Manager is hereby authorized to execute the Cooperation Agreement with the Sacramento Housing and Redevelopment Agency, subject to approval as to form by the City Attorney, together with any non-substantive revisions necessary to carry out the intent of this Resolution.
Section 3. The City Clerk shall certify to the adoption of this Resolution and shall transmit a certified copy to the Sacramento Housing and Redevelopment Agency as evidence of the City's continued participation in the Sacramento Urban County.
PASSED, APPROVED AND ADOPTED this 14th day of July, 2026 by the following vote:
The roll call vote:
Aye Mayor Aleida Suarez Aye Vice-Mayor Cara Pellegrini Aye Councilmember Pamela Bulahan Aye Councilmember Terri Hupfer
15 Resolution # 10-26 3
PASSED AND ADOPTED by the CITY COUNCIL of THE CITY OF ISLETON, COUNTY OF SACRAMENTO, of the STATE OF CALIFORNIA on this 14th day of July, 2026
ATTEST
______________________________________ _______________________________________ CITY CLERK MAYOR, Aleida Suarez
16 Resolution #11-26
Resolution #11-26 1
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ISLETON APPROVING A CHANGE IN TERMS AGREEMENT WITH RTC VI, LLC RELATED TO THE CITY’S EXISTING LOAN OBLIGATION, APPROVING RELATED
SECURITY DOCUMENTS, AND AUTHORIZING THE INTERIM CITY MANAGER TO EXECUTE ALL DOCUMENTS
NECESSARY TO COMPLETE THE TRANSACTION
WHEREAS,
the City of Isleton previously entered into a secured loan transaction with RTC VI, LLC, c/o Red Tower Capital, Inc., related to a Secured Note dated December 20, 2023, in the original principal amount of Five Hundred Thousand Dollars ($500,000.00); and
WHEREAS,
City staff, the City Attorney, and representatives of RTC VI, LLC have negotiated a proposed Change in Terms Agreement intended to modify the repayment terms of the existing loan obligation; and
WHEREAS,
the proposed Change in Terms Agreement provides, among other things, that upon payment of a principal reduction payment in the amount of Eighty-Five Thousand Dollars ($85,000.00), the modified loan balance will be Four Hundred Sixty-Seven Thousand Four Hundred Thirty-Five Dollars and Eighteen Cents ($467,435.18); and
WHEREAS,
the proposed Change in Terms Agreement further provides that the modified loan balance will be fully amortized at ten percent (10%) interest over one hundred five (105) months, with monthly principal and interest payments in the amount of Six Thousand Six Hundred Ninety-Seven Dollars and Twenty-Seven Cents ($6,697.27), commencing August 1, 2026, and continuing monthly thereafter until April 1, 2035; and
WHEREAS,
as part of the negotiated transaction, the City will execute certain additional security documents, including a Deed of Trust, Security Agreement, and Fixture Filing with Assignment of Rents encumbering City-owned real property commonly known as 208 and 210 Jackson Boulevard, Isleton, California, APN 157-0015-004-0000, as additional collateral securing the modified loan obligation; and 17 Resolution #11-26 2
WHEREAS,
the proposed Change in Terms Agreement provides that upon sale of the additional collateral, RTC VI, LLC will release the additional collateral upon payment of eighty percent (80%) of the sale proceeds toward the outstanding loan balance, and that such paydown will reduce the number of payments required to satisfy the loan but will not recast the monthly payment amount; and
WHEREAS,
the City Council desires to approve the proposed Change in Terms Agreement and related documents, subject to final review and approval as to form by the City Attorney; and
WHEREAS,
the City Council further desires to authorize the Interim City Manager to execute the Change in Terms Agreement, Deed of Trust, Security Agreement, Fixture Filing with Assignment of Rents, and any related documents necessary or advisable to complete the transaction, including escrow, title, recording, closing, and administrative documents.
NOW, THEREFORE, BE IT RESOLVED,
by the City Council of the City of Isleton as follows:
SECTION 1. Recitals.
The above recitals are true and correct and are incorporated herein by this reference.
SECTION 2. Approval of Change in Terms Agreement.
The City Council hereby approves the Change in Terms Agreement with RTC VI, LLC, in substantially the form presented to the City Council, subject to any non-substantive revisions approved by the City Attorney and Interim City Manager.
SECTION 3. Approval of Related Security Documents.
The City Council hereby approves the related Deed of Trust, Security Agreement, and Fixture Filing with Assignment of Rents, and any related security, escrow, title, recording, or closing documents necessary to complete the transaction, in substantially the form presented to the City Council, subject to any nonsubstantive revisions approved by the City Attorney and Interim City Manager.
SECTION 4. Authorization to Execute Documents.
The Interim City Manager is hereby authorized and directed to execute, on behalf of the City, the Change in Terms Agreement, Deed of Trust, Security Agreement, Fixture Filing with Assignment of Rents, and any other documents, certificates, escrow instructions, title documents, closing documents, notices, or related instruments necessary or advisable to complete the transaction approved by this Resolution. 18 Resolution #11-26 3
SECTION 5. Authorization to Take Related Actions.
The Interim City Manager, Finance Director, City Attorney, and their designees are hereby authorized to take all actions necessary or appropriate to implement this Resolution and complete the transaction, including coordinating with RTC VI, LLC, escrow, title, and recording offices, and arranging for any payment required at closing or execution.
SECTION 6. Effective Date.
This Resolution shall take effect immediately upon its adoption.
PASSED, APPROVED AND ADOPTED this 14th day of July, 2026 by the following vote:
The roll call vote:
Aye Mayor Aleida Suarez Aye Vice-Mayor Cara Pellegrini Aye Councilmember Pamela Bulahan Aye Councilmember Terri Hupfer
19 Resolution #11-26 4
PASSED AND ADOPTED by the CITY COUNCIL of THE CITY OF ISLETON, COUNTY OF SACRAMENTO, of the STATE OF CALIFORNIA on this 14th day of July, 2026
ATTEST
______________________________________ _______________________________________ CITY CLERK MAYOR, Aleida Suarez