Galt Council OKs up to $250,000 for pallet-site cleanup, directs collections effort for unpaid rent

The Galt City Council voted 5-0 to authorize spending up to $250,000 to clean, secure and repair a city-owned property that housed a commercial pallet operator and to pursue unpaid rent and damages through collections rather than immediately writing the amount off.

The council’s action follows months of staff work after the tenant stopped making payments and left the site in a condition that city staff and public commenters described as a safety and fire hazard. Resident Harry Wenzel urged the council to pursue all claims against the lessee, saying the city could be owed roughly a half‑million dollars once unpaid rent, alleged breach-of-contract damages and cleanup-related costs are totaled.

Councilmember Tim Reid moved to amend staff’s proposed resolution to change the appropriation language to "up to $250,000," to remove language that would write off $126,000 in uncollected rent and to direct staff to pursue recovery via collections only; Mayor Farmer seconded. The motion passed on a 5-0 roll call.

City staff said the $250,000 is an estimate derived from contractor conversations and early repair quotes; Benton Fence quoted more than $70,000 just to replace fencing and gates. Staff reported that Public Works already removed more than 1,700 loose pallets and other debris and is working with Cal Fire (CSD Fire) and code enforcement to identify the highest priority safety items. Finance staff clarified that the accounting write-off requested in the original consent item would be an internal book entry; council preferred that staff first attempt collections and return to council if a write-off is needed.

Council members asked about earlier notices and eviction steps. Staff said multiple breach notices were sent, the city pursued an unlawful‑detainer action, and court processing and a hesitant sheriff’s office delayed physical removal at times. Council also heard that the city collected about $372,972 in rent from the tenant since 2017 but that $126,000 remained uncollected. Councilmember Pratten said the city likely still netted rental revenue overall despite the cleanup costs and emphasized cost‑benefit considerations for further litigation.

The council directed staff to solicit bids for cleanup and repairs within the approved procurement limits and noted that any single contract award above the city’s $200,000 purchasing threshold would return to council for approval. Staff also said any future uncollectible amounts would be returned to council for a formal write‑off after attempted collections.