Agenda packet — Paradise City Council, October 8, 2024 (part 1 of 2)

Town of Paradise
Town Council Meeting Agenda
6:00 PM – October 08, 2024
Town of Paradise Council Chamber – 5555 Skyway, Paradise, CA

Meeting Procedures
I. The Mayor is the Presiding Chair and is responsible for maintaining an orderly meeting. The Mayor calls the meeting to order and introduces each item on the agenda.

II. The Town staff then provides a report to Council and answers questions from the Council.

III. Citizens are encouraged to participate in the meeting process and are provided several opportunities to address Council. Any speaker addressing the Council is limited to three minutes per speaker - fifteen minutes per agenda item A. If you wish to address the Council regarding a specific agenda item, please complete a “Request to Address Council” card and give it to the Town Clerk prior to the beginning of the meeting. This process is voluntary and allows for citizens to be called to the speaker podium in alphabetical order.

Comments and questions from the public must be directed to the Presiding Chair and Town Council Members (please do not address staff.) Town staff is available to address citizen concerns Monday through Thursday at Town Hall between the hours of 8am and 5pm.

B. If you wish to address Council regarding an item not on the agenda, you may do so under Item 4, “Public Communication.” Again, please fill out a card and give it to the Town Clerk before the meeting. State Law prohibits Council action on items not listed on a public agenda.

In compliance with the Americans with Disabilities Act (ADA) Compliance, persons who need special accommodations to participate in the Town Council meeting may contact the Town Clerk at least three business days prior to the date of the meeting to provide time for any such accommodation.

Town Manager, Jim Goodwin
Town Attorney, Scott E. Huber
Town Clerk/Elections Official, Melanie Elvis
CDD, Planning & Onsite, Susan Hartman
CDD, Building & Code Enforcement, Tony Lindsey
Finance Director/Town Treasurer, Aimee Beleu
Public Works Director/Town Engineer, Marc Mattox
Division Chief, CAL FIRE/Paradise Fire, Garrett Needles Chief of Police, Eric Reinbold
Recovery & Economic Development Director, Colette Curtis Human Resources & Risk Management Director, Crystal Peters Information Systems Director, Luis Marquez
Mayor, Ron Lassonde
Vice Mayor, Greg Bolin
Council Member, Steve Crowder
Council Member, Steve “Woody” Culleton
Council Member, Rose Tryon
1 1. OPENING
1a. Call to Order
1b. Pledge of Allegiance to the Flag of the United States of America 1c. Invocation
1d. Roll Call
1e. Habitat for Humanity Butte County Executive Director Nicole Bateman, and Development Manager Jenny Fales to present project updates. (Introduction by Recovery & Economic Development Director Colette Curtis)
1f. Presentation by Tom Taylor, Paradise Unified School District Superintendent on Measure G and school status updates. (Introduction by Town Manager Jim Goodwin.)
1g. Camp Fire Recovery Updates - Written reports are included in the agenda packet.
p6 Colette Curtis, Recovery and Economic Development Director - recovery projects, advocacy, economic recovery and development, communications, emergency operations and Housing updates.
p11 Marc Mattox, Public Works Director/Town Engineer -infrastructure and sewer updates.
p16 Tony Lindsey, CDD-Building and Code Enforcement- Code Enforcement update.

2. CONSENT CALENDAR
One roll call vote is taken for all items. Consent items are considered to be routine business that does not call for discussion.
2a. p20 Approve the Minutes of September 10, 2024 Regular Town Council Meeting. (Town Clerk Elections Official/Melanie Elvis)
2b. p26 Approve September 2024 Cash Disbursements in the amount of $3,826,964.18. (Finance Director/Aimee Beleu)
2c. p34 1. Declare the attached described equipment as surplus property; and,

2. Adopt Resolution No. 2024-__, “A Resolution of the Town Council of the Town of Paradise Declaring Certain Town Equipment to be Surplus and Obsolete and Authorizing Disposal by the Town Manager or His Designee Thereof.” (Fire Chief/Garrett Needles)
2d. p37 Accept a donation of $2,000 to help fund the Utility Box Mural Project. (Town Clerk/Elections Official/Melanie Elvis)
2e. p38 Approve an agreement with the California Office of Traffic Safety for the acceptance of the Selective Traffic Enforcement Program (STEP) grant award. (Eric Reinbold/Police Chief)
2f. p40 1. Adopt Resolution No. 2024-__, “A Resolution of The Town Council of the Town of Paradise Authorizing Disposal of Certain Town Records Maintained in the Engineering Department Pursuant to Government Code 2 3 Section 34090”; and, 2. Adopt Resolution No. 2024-__, “A Resolution of The Town Council of the Town of Paradise Authorizing Disposal of Certain Town Records Maintained in the Community Development Department Pursuant to Government Code Section 34090.”; or, 3. Make the determination that certain records listed for destruction have no value to the agency, and direct that all or some of the records listed in Exhibits “B” continue to be maintained. (Town Engineer/Marc Mattox & Community Development Director/Tony Lindsey)
2g. p53 1. Approve Program Supplement Agreement No. 00000A678 to the Master Agreement Administering Agency-State Agreement for the FederalAid Projects, Agreement No. 03-5425S21 for Roe Road Extension Project Phase 2; and, 2. Adopt Resolution 2024-__ “A Resolution of the Town Council of the Town of Paradise authorizing the Town Manager of the Town of Paradise or their designee to sign the Program Supplement Agreement No. 00000A678 to the Administering Agency-State Agreement for FederalAid Projects corresponding to Project No. LTCL-5425(050).” (Town Engineer/Marc Mattox)
2h. p62 Approve the Archeological Professional Services Agreement and authorize the Town Manager to execute contract upon full obligation of the Residential Ignition Resistant Retrofit Program approval by FEMA and CalOES. (Recovery and Economic Development Director/Colette Curtis & Recovery Project Manager/Brian Solecki)
2i. p100 Adopt Resolution No. 2024-___ “A Resolution of the Town Council of the Town of Paradise Adopting the September 2024 Local Hazard Mitigation Plan (LHMP). (Recovery and Economic Development Director/Colette Curtis)
2j. p104 Adopt Resolution No. 2024- _____ “A Resolution of The Town Council of The Town of Paradise Rescinding Resolution No. 2022-33 and Adopting New Home Owner-Occupied Housing Rehabilitation Program Guidelines.” (Recovery & Economic Development Director/Colette Curtis)

3. ITEMS REMOVED FROM CONSENT CALENDAR

4. PUBLIC COMMUNICATION
For matters that are not on the Council business agenda, speakers are allowed three (3) minutes to address the Council. The Town Council is prohibited from taking action on matters that are not listed on the public agenda. The Council may briefly respond for clarification and may refer the matter to the Town staff.

5. PUBLIC HEARINGS
For items that require a published legal notice and/or a mailed notice.

Public Hearing Procedure:

A. Staff Report
B. Mayor opens the hearing for public comment in the following order:
i. Ask the Town Clerk if there are any cards submitted
ii. Ask if there is anyone else wishing to comment
C. Mayor closes the hearing
D. Council discussion and vote
3 5a. p152 1. Conduct the duly noticed and scheduled first public hearing and concur with the project “CEQA determination” finding presented and considered by the Planning Commission on September 17, 2024, and embodied within Planning Commission Resolution No 2024-02; and,

2. Waive the first reading of Town Ordinance No. 638 and read by title only; and, 3. Introduce Town Ordinance No. 638, “An Ordinance Amending Text Regulations within Paradise Municipal Code Title 17 [Zoning] Relative to Electronic Changeable Message Sign Regulations”; or, 4. Provide alternative direction to town staff. (ROLL CALL VOTE) (Community Development Director/Susan Hartman)

6. COUNCIL CONSIDERATION
Action items are presented by staff and the vote of each Council Member must be announced. A roll call vote is taken for each item on the action calendar. Citizens are allowed three (3) minutes to comment on agenda items.
6a. p166 Following the Town Council’s review of the Fiscal Year 2022/23 financial statement audit report, receive and file the Report, as submitted. (ROLL CALL VOTE) (Finance Director/Aimee Beleu)
6b. p277 1. Consider authorizing Accounting Assistant I/II Full Time Equivalent (FTE) to be added to the Finance Department with the correlating budget adjustment; and, 2. Consider adopting Resolution No. 2024-___ “A Resolution of the Town Council of the Town of Paradise Amending the Salary Pay Plan for the Town of Paradise Employees for the Fiscal Year 2024-2025.” (ROLL CALL VOTE) (Finance Director/Aimee Beleu) 6c. p283 1. Consider adopting Resolution No. 2024-__, "A Resolution of the Town Council of the Town of Paradise Declaring vegetative growth (noxious weeds) and refuse a public nuisance"; or, 2. Provide alternative direction to town staff. (ROLL CALL VOTE) (Community Development Director/Tony Lindsey)
6d. p303 1. Consider adopting Resolution No. 2024- ___ “A Resolution of the Town Council of the Town of Paradise Approving the Third Amendment with the California Department of Forestry and Fire Protection (CAL FIRE) for Services from July 1, 2021 through June 30, 2025, Contract Agreement Number 2CA05233 for a maximum not to exceed amount of $19,148,445”, or, 2. Direct staff to negotiate an alternative agreement with CAL FIRE with a reduced level of service and reduced costs.” (ROLL CALL VOTE) (Garrett Needles/Fire Chief)
6e. p309 Consider approving a Community Development Block Grant Disaster Recovery, Workforce Development Memorandum of Understanding (MOU) with Paradise Unified School District, Butte College, Valley Contractors Workforce Foundation, and NoRTEC. (ROLL CALL VOTE) (Recovery and Economic Development Director/Colette Curtis)

7. COUNCIL INITIATED ITEMS AND REPORTS
7a. Council initiated agenda items:
7a1. Discuss approval of a proposed trip to be taken by Council Member Steve Crowder to Washington DC to advocate for a tax relief bill for wildfire 4 5 claimants. The trip would be funded by the Town Council budget up to $2000. (Council Member Steve Crowder)
7b. Council reports on committee representation
7c. Future Agenda Items

8. STAFF COMMUNICATION
8a. Town Manager Report
8b. Community Development Director

9. CLOSED SESSION - None

10. ADJOURNMENT

5 Town of Paradise
Council Agenda Summary
Date: October 8, 2024
Agenda Item: 1(g)
ORIGINATED BY: Colette Curtis, Recovery and Economic
Development Director
REVIEWED BY: Jim Goodwin, Town Manager
SUBJECT: Monthly Recovery Update

LONG TERM
RECOVERY PLAN:

Yes
COUNCIL ACTION REQUESTED:

1. None
Background:

This report continues the Monthly Updates provided to keep the Town Council apprised of important developments related to the recovery of the Town of Paradise from the Camp Fire.

Included in this update are items related to recovery projects, advocacy economic recovery and development, communications and emergency operations.

Analysis:

ECONOMC DEVELOPMENT
CDBG-DR Economic Development
 The Town of Paradise submitted an application for a Workforce Training Center, located on the Paradise High School campus.
 The project is a partnership between the Town of Paradise, Butte College, PUSD, Valley Contractors Workforce Foundation, and NoRETC.
 The Standard Agreement is being routed for signature.

Healthcare
 The Town of Paradise and Adventist Health Feather River Foundation are working together to create a Strategic Healthcare Recovery Plan to assess current inventory, exiting gaps, projections, and a strategic plan for filling the gaps.  The Plan is expected to be ready by Spring 2025.

Biz Pro Academy
 In an effort to make the path to opening a business in Paradise easier, the Town is creating a training program for local volunteers to help potential business owners through the process as mentors.
 The program is under development, with a goal of holding the first training in November or December 2024.
6 RECOVERY
Overall Hazard Mitigation Project Update
All environmental work that has been delaying our projects for the last years is now complete! We have a complete Biological Assessment, Environmental Assessment and Program Specific Programmatic Agreement. All necessary documentation for our hazard mitigation projects is filed and work is ready to start within 24 hours of funding obligation. We anticipate funding obligation will occur in the coming weeks as Congress returns to session and FEMA has their Disaster Relief Fund replenished.

Category 4 Tree Removal Program
 We opened the program to applicants in July of 2022 and received 577 applicants. This represents 1,014 acres of private property across the Town and nearly 12,000 trees.  Phase 2 Federal Environmental Review actions are now complete. Phase two of the project is now ready to begin upon full funding by FEMA.  Town staff are working day with BCFSC on the implementation plan in order to be able to move quickly upon approval by FEMA.
 In April, we began property owner outreach and authorization paperwork for Phase two tree removal. As of August 29, we have 380 properties with complete paperwork and work ready to commence. These properties represent about 85% of the total trees eligible for removal in the program.

Early Warning System
 All 21 Towers are standing and operational.
 21 of the 21 standing Towers have all aesthetic branches installed.  20 of the 21 Towers have completed trenching and are connected to permanent power or in process of final connections through PG&E.
 We anticipate full system completion, training and handover of the operation will occur in the coming months once all towers are fully connected to full-time power.  We have begun outreach to the community regarding the in-home units and expect the first units to arrive this Fall.
 We are working with contractors to turn over control of the system to the TOP dispatch center. All towers will be complete except for the one that we are working on a new power plan for with PG&E.

Residential Ignition Resistant Retrofit Program
 This project was opened to residents to apply in May 2023 and closed July 31, 2023.  Assessments were completed in October 2023 and all Phase 1 closeout documents transferred to CalOES/FEMA for final environmental review.  Phase 2 Federal Environmental Review actions are now complete. Phase two of the project is now ready to begin upon full funding by FEMA.  In August, we were given FEMA permission to began outreach to enrolled properties about next steps. We will soon begin meeting with property owners about moving forward with retrofits.
 We have another item on this Council agenda to authorize a contract from the RFP for Archeological surveying as required by the project.
7 Hazardous Fuels Reduction Program
 Town Council approved implementation plan in March 2024.  We are working with CalOES on options for implementing this project within the approved grant budget due to additional monitoring needs and increased equipment costs.
 Phase 2 Federal Environmental Review actions are now complete. Phase two of the project is now ready to begin upon full funding by FEMA.

Defensible Space Code Enforcement
 The Defensible Space Code Enforcement project was fully approved and obligated in November 2023 by FEMA and CalOES.
 Town Staff are coordinating the process to implement this project in order to have the program operating for the Spring 2024 inspection season.  Town Council approved implementation plan in January 2024.  Grant funded staff have been hired and are in place and working in the community.

COMMUNICATIONS
Downtown Planning
 An online survey was conducted for public input on the same information provided at the Community Workshop in early August. Over 500 surveys have been received.  Recommendations and a vision report will be presented to Council in November.

EMERGENCY MANAGEMENT
 The Town has worked with Butte County on the Local Hazard Mitigation Plan (LHMP) update, which is on tonight’s agenda for Council approval.

Financial Impact:

None.
8 Town of Paradise
Council Agenda Summary
Date: Oct. 8, 2024
Agenda Item: 1(g)
ORIGINATED BY: Sarah Richter, Housing Program Technician REVIEWED BY: James Goodwin, Town Manager
SUBJECT: Housing Recovery Update

LONG TERM
RECOVERY PLAN:

No
COUNCIL ACTION REQUESTED:

1. None
Background:

This report provides the Town Council with an update on Housing activities.

Analysis:

We have 37% of our pre-disaster housing stock to-date (1,377 surviving units + 3,080 new CofOs to-date [an increase of 76 from last month] = 4,457 habitable dwellings / 12,015 housing units before the Camp Fire). An additional 828 permits have been issued but have not received their CofO yet.

Town of Paradise Owner-Occupied Rehabilitation/Reconstruction Program ($16 million) -- This program helps homeowners rehabilitate or reconstruct their home. We have completed 62 homes, 4 are under construction, and 9 applications in process. HCD recently allowed the grantees to increase loan amounts under the CalHome OOR program to $250,000 when reconstructing a residence.

Town of Paradise First-Time Homebuyer Program ($7 million) -- Helping to make home ownership more affordable. We have assisted 46 households to-date and have 13 applications in process.

CDBG-DR Multifamily Rental Housing Program ($55 million) -- Affordable rental housing. Seven (7) projects are eligible for funding; a total of 292 units. One project (CHIP, 4 units) has leased up; Eagle Point (43 units) received a Certificate of Occupancy on Sept. 30th and is now accepting rental applications; Mayer Commons (12 units) on Kay Ct. just passed the 4-way inspection, scheduled to be done in April of 2025; Northwind Senior (21 units) on the corner of Pentz and Kingdom Ct. are at foundation with an expected completion time of May of 2025; Cypress Family (70 units) on Cypress Ln., has started framing and expects to be ready in December of 2025.

The 2 remaining projects (Cypress Senior, 70 units, and Clark Rd., 72 units) are working on securing additional funding and will be applying for tax credits in early 2025.

CDBG (2024 Annual Allocation=$52,474; unspent funds=$90,410.48) – Our annual grant for fiscal year 2024 is only 52% of the previous year’s award. Awards are determined by weighing a community’s population, rate of poverty, and number of overcrowded units. The data HUD uses 9 is years behind, so our allocation is only now reflecting our Camp Fire population loss. The Annual Plan for 2024 allocates funds to economic development. CV funds ($208,244 not included above) can assist households living in RVs with emergency rental assistance; applications available now; 1 application has been approved.

HOME Infill New Construction ($700,000) -- Create affordable housing for first-time homebuyers.

Grant has been awarded but still waiting for Standard Agreement from HCD.

Permanent Local Housing Allocation (PLHA) ($399,166) – Allocates matching funds to North Valley Housing Trust to administer for affordable housing projects. A predevelopment loan of $400,000 has been made ($200,000 of PLHA funds) and another $75,000 of PLHA funds was loaned to build a small, single-family home.

Financial Impact:

None.
10 1

TOWN OF PARADISE
Council Agenda Summary
Date: October 8, 2024
Agenda No. 1(g)
ORIGINATED BY: Marc Mattox, Public Works Director / Town Engineer REVIEWED BY: Jim Goodwin, Town Manager

SUBJECT: Camp Fire Recovery Updates - Infrastructure
COUNCIL ACTION REQUESTED:

1. None, written monthly update only.

Background:

This report continues the Monthly Disaster Recovery Updates provided to keep the Town Council apprised of important developments related to the recovery of the Town of Paradise from the Camp Fire.

Analysis:

Road Rehabilitation
The Town of Paradise is endeavoring to pave every public road mile by the end of 2026. These projects are funded through Camp Fire Recovery Projects and are sequenced behind undergrounding of utilities and water service later replacements.

As of October 2024, the following paving progress can be reported:

25.3 mi. Completed

21.3 mi. Awarded/Under Construction

50.3 mi. Planned 2025 & 2026

96.9 mi. Total
In August 2024, Knife River Construction began work along various roadways in Town, map shown on next page. Recent work includes heavy road rehabilitation involving pulverizing and paving new roadway surfaces. Ongoing work includes full depth reclamation-cement treatments, new paving, shoulder backing, driveway conforms, raising utility valves to grade and final striping. All work is anticipated to be completed prior to the start of winter. Select roadways under the current contract will have work commence in spring 2025 due to ongoing utility clearance efforts.
11 2
Paradise Sewer Project
Work is ongoing for the Paradise Sewer Project’s Progressive Design Build delivery. 12 3
 Main Accomplishments
o Provided an informational update to Town Council regarding the Project’s major accomplishments, status and next steps.
o Met with the DFA and SWRCB teams, including individual meetings with Board Chair Esquivel and Board members Maguire and Morgan to align on project funding support.
o Met with City of Chico and Butte County teams for coordination on all project components including roadway design criteria and Chico WPCP connection details.
o Continue coordination of all permit applications, including interactions with USFWS, NMFS, CDFW, CVRWQCB, CVFPB, SHPO, and USACE. Submitted the Section 106 consultation package to SHPO.
 Key Activities (One Month Look-Ahead)
o Continue coordination of all permit applications, including interactions with USFWS, NMFS, CDFW, CVRWQCB, CVFPB, SHPO, and USACE.
o Continue coordination with the City of Chico, Butte County and the Butte County Evacuation Committee.
o Continue support for all project funding activities.
o Support PDB team progress for submittal of the Draft BODR and transition into Phase 1B – Detailed Design.

Capital Project Updates
Below is an abbreviated Project List intended to show the current status of each project. More information on each project’s scope and schedule can be found at www.townofparadise.com/pwe.

Typical project progressions and timeframes are as follows:
(1) Environmental, 6-24 months
(2) Design, 12 months
(3) Right of Way, 6-12 months
(4) Construction, 6-24 months
Project ID Project Title Project
Phase
Anticipated
Construction
Completion
Year
7301 On-System Culvert Replacement Complete -
7302 On-System Hardscape Replacement Complete -
7303 On-System Road Rehabilitation Construction 2026
7304 On-System Sign Replacement Complete -
7307 Neal Road Rehabilitation Design 2028
8404 Camp Fire Hydrant Repairs Design 2025
8407 Off-System Road Rehabilitation Construction 2026
8408 Off-System Culvert Repair Complete -
9389 Pentz Pathway Project Phase II Design 2028
13 4
9390 Paradise ATP Gateway Project (Neal Road
Class I) Environmental 2028
9391 Oliver Curve Pathway Phase I Design 2028
9394 Paradise Sewer Project Design 2031
9421 Forest Service Road Improvements Environmental 2027 9422 Foster/Black Olive Intersection Improvements Environmental 2027 9423 Elliott/Nunneley Road Extension Environmental 2027 9424 Skyway Link ATP (Bille to Wagstaff) Environmental 2027 9425 Upper Skyway Widening (Bille to Wagstaff) Environmental 2027 9426 Skyway/Pentz Intersection Improvements Environmental 2028 9427 Pentz Road Widening Environmental 2028
9428 Roe Road Phase 1 (Pentz to S. Libby) Environmental 2028 9430 Pearson-Hilltop Guard Rail Design 2025
9433 Animal Shelter Expansion Construction 2025
9434 Roe Road Phase 2 (S. Libby to Clark) Environmental 2028 Funding Pursuits
Below is a listing of active funding pursuits related to infrastructure recovery and status updates:

Program Project Title Amount
Requested
Anticipated
Award
Notification
Notes
Federal CDBGDR MIT RIP
Evacuation
Route
Changeable
Message Sign
Project
$5.4M Summer 2024
Project has been formally
awarded. Town waiting on HCD
Agreements to advance to
project kickoff.

Federal CDBGDR MIT RIP
Storm Drain
Resiliency
Project
$3.9M Summer 2024
Project has been formally
awarded. Town waiting on HCD
Agreements to advance to
project kickoff.

Federal CDBGDR MIT RIP
Private Road
Identification
Safety Project
$960,000 Summer 2024
Project has been formally
awarded. Town waiting on HCD
Agreements to advance to
project kickoff.
14 5
State CTC
Active
Transportation
Program Cycle
7 Oliver Curve
Pathway
Project
$15.5M October 2024
Project was submitted for
consideration. Program funding
availability has been cut due to
State budget concerns.
15 Town of Paradise
Council Agenda Summary
Date: October 8, 2024
Agenda Item: 1(g)
ORIGINATED BY: Tony Lindsey, Community Development Director, Building & Code Enforcement
REVIEWED BY: Jim Goodwin, Town Manager
SUBJECT: Camp Fire Recovery Updates – Code Enforcement

LONG-TERM
RECOVERY PLAN:

No
COUNCIL ACTION REQUESTED:

1. Code Enforcement Update
Background:

The Code Enforcement Division is committed to fostering a safe and appealing living and working environment. Our mission is to uphold and enhance our community's overall quality through the fair and impartial implementation of an enforcement program to rectify violations of municipal codes and land use regulations. In collaboration with residents, neighborhood associations, public service agencies, and other Town departments, we strive to:
 Promote voluntary compliance with Town codes.
 Identify and address violations promptly and fairly.
 Foster collaboration efforts to address community concerns.  Actively engage with the community in navigating the code enforcement process.

Analysis:

Under the original Urgency Ordinance, 206 Temporary Use Permits (TUPs) were issued. But currently, there are only 59. (Exhibit A).

September August
Parcels permitted to occupy an RV 59 61
Accessory structures 13 13
RV Code Enforcement activity. Parcels with RV violations. (Exhibit B):

September August
Occupied/Unoccupied RVs 35 37
Occupied RVs with TUP Violations 7 10
Compliance gained/RV cases closed 8 5
The Community Enhancement Outreach Team, comprised of Disaster Case Managers, Fire Prevention, Housing, Police Department, and Code Enforcement personnel, visited permitted and unpermitted RV sites. Throughout these visits, the team engaged with community members to address unmet needs and provided information about available assistance programs. 16 September August
Sites Visited 11 14
Community members contacted 13 15
Tenants 8 8
Owner-occupied 5 7
Supplied contact information 8 13
Do not qualify/refused 0 1
Fire Prevention is crucial to our community's safety and supports our continued economic growth. It focuses on three primary goals: Education, Engineering, and Enforcement. Our defensible space and hazardous fuel management ordinance requires property owners to uphold fire-safe conditions regardless of residency. The dedicated Fire Prevention team conducts weed abatement inspections on 11,187 parcels throughout our community to ensure compliance and reduce fire hazards.

Escrow defensible space inspections September August
 Clearance requests received 78 83
 Certificates issued 71 73
 Land Surveyor's Certifications 9 11
 First inspection compliance rate 83% 83%
Weed abatement inspections
 Compliant parcels 10,158 – 91% 9,820 – 88%
 Active Code cases 756 829
 Commercial parcels 35 36
 Residential parcels 721 793
Other Code Enforcement Items:

Abandoned Vehicle Authority September August
 Vehicle Abatements 4 11
Additionally, Code Enforcement received complaints covering various issues, including waste and refuse problems, zoning violations, construction without the required permits, fire hazards, concerns about vehicles, unauthorized dwellings, cannabis, and the absence of garbage service. 17 TUPs under ORD 612 5/31/22
RV TUP STORAGE ONLY RV TUP OCCUPIED 7/27/2022
12/21/2023 12/21/2022
10 59 EXHIBIT A
632 6/26/2024
TUP - No Utilities Provided 5 RV TUP Extended 60 7/31/2024 8/28/2024 RV TUP OCCUPIED RV TUP Extended 606159 18 TUPs under ORD 612

RV TUP STORAGE ONLY RV TUP OCCUPIED
TUP Violations 5/31/22
Violations w/ TUP RV no TUP
12/21/2022 7/27/2022 EXHIBIT B 12 38
TUP Violations 12/21/2023 5/31/22 6/26/2024 7/27/2022 6/26/2024 12/21/2023 12/21/2022
7/31/2024 10 36 8/28/2024 8 33
19 TOWN COUNCIL
Meeting Minutes
6:00 PM – September 10, 2024

1. OPENING
The Regular meeting of the Paradise Town Council was called to order by Mayor Lassonde at 6:01 p.m. in the Town Council Chamber located at 5555 Skyway, Paradise, California who led the Pledge of Allegiance to the Flag of the United States of America.

An invocation was offered by Vice Mayor Bolin.

COUNCIL MEMBERS PRESENT: Greg Bolin, Steve Crowder, Steve “Woody” Culleton, Rose Tryon and Ronald Lassonde, Mayor
COUNCIL MEMBERS ABSENT: None
STAFF PRESENT: Town Manager Jim Goodwin, Town Attorney Scott E. Huber, Town Clerk/Elections Official Melanie Elvis, Finance Director/Town Treasurer Aimee Beleu, Community Development Director Susan Hartman, Community Development Director Tony Lindsey, Public Works Director/Town Engineer Marc Mattox, Recovery and Economic Development Director Colette Curtis, Information Systems Director Luis Marquez, Recovery Project Manager Brian Solecki, Business and Housing Manager Kate Anderson, Housing Technician Sarah Ritcher, Capital Projects Manager Colin Nelson, Police Chief Eric Reinbold and Fire Chief Garrett Needles. 1a. Amy Rohr from Valley Contractors Exchange presented building trends and data since the 2018 Camp Fire.
1b. Blaine Allen Paradise Irrigation District presented the District’s project updates.
1c. Jim McCourt from Meeder Investments provided a financial update. (360-30-006)
1d. Camp Fire Recovery Updates - Written reports are included in the agenda packet. (110-60-061)
Colette Curtis, Recovery and Economic Development Director - Recovery Projects, Advocacy, Economic Recovery and Development,
Communications and Emergency Operations
Marc Mattox, Public Works Director/Town Engineer - Infrastructure and Sewer Update.

Tony Lindsey, CDD-Building and Code Enforcement-Code Enforcement Update.
20 Kate Anderson, Business and Housing Manager-Business and Housing Update.

2. CONSENT CALENDAR
MOTION by Bolin, seconded by Crowder, approved consent calendar items 2a, 2b, 2d, and 2e. Roll call vote was unanimous.
2a. Approved the minutes of the August 13, 2024 Regular Town Council meeting.
2b. Approved August 2024 Cash Disbursements in the amount of $5,769,033.61. (310-10-035)
2c. ITEM WAS REMOVED FROM THE CONSENT CALENDAR BY MAYOR LASSONDE.
2d. Reviewed and filed the 4th Quarter Investment Report for the Fiscal Year Ending June 30, 2024. (360-30-006)
2e. 1. Adopted Resolution No. 2024-61, “A Resolution of The Town Council of the Town of Paradise Authorizing Disposal of Certain Town Records Maintained in the Town Clerk Department Pursuant to Government Code Section 34090”; and, 2. Adopted Resolution No. 2024-62, “A Resolution of The Town Council of the Town of Paradise Authorizing Disposal of Certain Town Records Maintained in the Community Development Department Pursuant to Government Code Section 34090.” (160-20-016, 160-20-017)

3. ITEMS REMOVED FROM CONSENT CALENDAR
2c. Mayor Lassonde removed item 2c from the consent calendar: Adopt Resolution No. 2024-__, "A Resolution of the Town Council of the Town of Paradise adopting an Implementation Plan related to Ordinance No. 637 Nuisance abatement procedures.”
Community Development Director Tony Lindsey presented language that could be added to the Implementation Plan which would clarify the notification process to property owners before legal action would be taken.

1. Mimi Brown asked if the government must follow the same rules as private citizens and wanted to know whose responsibility it was to maintain overgrown creek beds.

Public Works Director/Town Engineer Marc Mattox clarified that Paradise Municipal Code and State code designates creek beds as protected and that they should not be disturbed citing potential environmental impacts.
21 2. Jon Remalia spoke in favor of this item.

MOTION by Bolin, seconded by Culleton, Adopted Resolution No. 2024- 60, "A Resolution of the Town Council of the Town of Paradise adopting an Implementation Plan related to Ordinance No. 637 Nuisance abatement procedures” with the additional language noted in red: “The Fire Chief or an authorized representative shall compile a list of properties proposed for designation as nuisances. Prior to this, staff will address issues with returned mail by consulting county ownership and utility provider records and using people-finding software to contact unresponsive landowners.

This list will include, including details on citation and tax default status, complete with estimated abatement costs, the current balance in the abatement fund, and any required budget amendments to abate the nuisances fully.” Roll call vote was unanimous. (540-15-076)

4. PUBLIC COMMUNICATION

1. Carrie Max spoke on drainage issues and asked who to speak to at the Town.

2. Mimi Brown spoke on drainage issues and asked that when her road is repaved if the contractors could add a swale or gully to help with poor drainage.

Public Works Director/Town Engineer Marc Mattox clarified that the Town is restricted by funding source from updating or fixing any preexisting issues.

5. PUBLIC HEARINGS
5a. Housing Technician Sarah Ritcher presented the proposed Consolidated Annual Performance and Evaluation Report.

Mayor Lassonde opened the public hearing at 7:12 p.m.

There were no public comments.

Mayor Lassonde closed the public hearing at 7:13 p.m.

MOTION by Bolin, seconded by Tryon, authorized the Town Manager to submit the CAPER to the Department of Housing and Urban Development.

Roll call vote was unanimous. (710-10-102)

6. COUNCIL CONSIDERATION
Vice Mayor Bolin recused himself from the dais due to a potential conflict of interest at 7:14 p.m.
22 6a. Capital Projects Manager Colin Nelson presented an informational update on the Paradise Sewer Project which summarized work completed by the Progressive Design Build Team and forecasted the next steps in project development. (960-70-007)

1. Mimi Brown stated that she heard the funding for the Sewer Project had fallen through and asked if that were true.

Vice Mayor Bolin returned to the dais at 7:37 p.m.
6b. Public Works Director/Town Engineer Marc Mattox presented the proposed Resolution to approve the plans and specifications for the Fleet Shop Renovation Project.

MOTION by Culleton, seconded by Bolin, adopted Resolution No. 2024- 63, “A Resolution of the Town Council of the Town of Paradise approving the plans and specifications for the Fleet Shop Renovation Project and authorizing advertisement for bids on the project.” Roll call vote was unanimous. (280-20-005)
6c. Recovery and Economic Development Director Colette Curtis presented the proposed guidelines for the Utility Box Mural Project.

1. Jon Remalia asked if a business could sponsor “Smokey the Bear” for one of the boxes.

Recovery and Economic Development Director Colette Curtis clarified that the guidelines were very specific that there would be no reference to fire of any kind.

2. Carrie Max asked for staff to clarify that price per box and the process.

3. Mayor Lassonde donated $2000 to the project and presented a check to the Town Clerk.

MOTION by Bolin, seconded by Culleton, adopted guidelines for the Utility Box Mural Project with the following additions: 1. The theme must be connected to Paradise; 2. The guidelines should include where contributions are to be sent and how they should be made out; 3. The guidelines should specify the dimensions of the artist’s signature; and 4. The Mayor or his designee shall serve on the mural selection committee. Council authorized Town Staff to initiate a call to artists to begin the first installation of the Utility Box Mural project. Roll call vote was unanimous. (1020-10-003) 6d. Recovery and Economic Development Director Colette Curtis presented the proposed contract award to Abaris Group for the Strategic Healthcare Recovery Plan.

MOTION by Bolin, seconded by Culleton 1. Concurred with staff’s recommendation to award the contract for the Strategic Healthcare Recovery Plan to Abaris Group, for an amount not to exceed $150,000.00 23 ($75,000 to be funded by the Town and $75,000 to be funded by Adventist Health Foundation); and 2. Adopted Resolution No. 2024-64 “A Resolution of the Town Council of the Town of Paradise Awarding the Strategic Healthcare Recovery Plan Contract to Abaris Group.” Roll call vote was unanimous. (460-10-003, 510-20-446)

7. COUNCIL INITIATED ITEMS AND REPORTS
7a. Council initiated agenda items:
7a1. Discuss the weed abatement code requirements for properties over 1.5 acres. (CULLTEON)
Community Development Director Tony Lindsey and Fire Chief Garrett Needles provided a review of current code standards for defensible space.

1. Jon Remalia spoke in favor of increasing the requirement for properties over 1.5 acres to a 50’ clearance from abutting properties and for continuous fuels being broken up.

All Council concurred to form an Ad Hoc Committee comprised of two Council Members, Community Development Director Tony Lindsey and Fire Chief Garrett Needles to further discuss and bring back a recommendation to Council relating to potential weed abatement regulation modifications. 7b. Council reports on committee representation:

Council Member Culleton attended a Town of Paradise/Paradise Recreation and Park District Liaison meeting and a ribbon cutting.

Council Member Crowder, in conjunction with Congressman LaMalfa’s office, hosted various State legislators on a tour around Paradise; attended groundbreakings for the Animal Shelter Expansion Project and Habitat for Humanity; attended a Town of Paradise/Paradise Recreation and Park District Liaison meeting; and the swearing-in of Officer Diaz.

Vice Mayor Bolin reported that there was no LAFCo meeting in September and that he attended the Animal Shelter Expansion Project groundbreak.

Council Member Tryon attended the monthly BCAG and BCAQM meetings, and the Butte County Fire Safe Council Board Member retreat.

Mayor Lassonde attended the monthly BCAG and BCAQM meetings; the swearing-in of Officer Diaz; the Paradise Recreation and Park District Community Meeting on the Buffer Zone Project; several ribbon cuttings; the Table Mountain Lodge rededication and was interviewed by a news agency out of Washington State.
7c. Future Agenda Items - None
24 8. STAFF COMMUNICATION
8a. Town Manager Jim Goodwin shared that he participated in multiple cooperating agency check-ins, and that staff hosted a Council Candidate Orientation.

9. CLOSED SESSION - None

10. ADJOURNMENT
Mayor Lassonde adjourned the meeting at 8:50 p.m.

Date approved:

By: Attest:
____________________________ _____________________________ Ronald Lassonde, Mayor Melanie Elvis, Town Clerk/Elections Official 25 TOWN OF PARADISE

CASH DISBURSEMENTS REPORT

FOR THE PERIOD OF
September 1, 2024 - September 30, 2024
26 CASH DISBURSEMENTS REPORT
September 1, 2024 - September 30, 2024
Check Date Pay Period End Description Amount Total
9/13/2024 9/8/2024 Net Payroll - Direct Deposits and Checks $ 261,759.00 9/27/2024 9/22/2024 Net Payroll - Direct Deposits and Checks $ 256,594.84 $ 518,353.84
Accounts Payable
Payroll Vendors: Taxes, PERS, Dues, Insurance, Etc. 457,009.80 Operations Vendors: Supplies, Contracts, Utilities, Etc. $ 2,851,600.54 TOTAL CASH DISBURSEMENTS ACCOUNTS PAYABLE 3,308,610.34
GRAND TOTAL CASH DISBURSEMENTS $ 3,826,964.18
APPROVED BY:

Aimee Beleu - Finance Director/Town Treasurer
APPROVED BY:

Jim Goodwin - Town Manager
27 Number Date Status Void Reason
Reconciled/
Voided Date Source Payee Name
Transaction
Amount
Reconciled
Amount Difference
AP TCB - General Checking
Check
87362 09/05/2024 Open Accounts Payable 4LEAF, Inc $4,980.00 87363 09/05/2024 Open Accounts Payable Adams Ashby Group, Inc. $21,146.20 87364 09/05/2024 Open Accounts Payable AIRGAS SAFETY, INC. $70.01 87365 09/05/2024 Open Accounts Payable ALHAMBRA $238.04 87366 09/05/2024 Open Accounts Payable Archuleta, Derek, S $75.00 87367 09/05/2024 Open Accounts Payable AT&T MOBILITY $89.46 87368 09/05/2024 Open Accounts Payable AWARDS COMPANY $43.30 87369 09/05/2024 Open Accounts Payable Axon Enterprise Inc $1,734.78 87370 09/05/2024 Open Accounts Payable Big O Tires $25.00 87371 09/05/2024 Open Accounts Payable Biometrics4ALL, Inc $13.50 87372 09/05/2024 Open Accounts Payable Broad & Gusman $4,000.00 87373 09/05/2024 Open Accounts Payable BRUCE MOLINOLI $52.83 87374 09/05/2024 Open Accounts Payable Brush Masters $585.00 87375 09/05/2024 Open Accounts Payable Bug Smart $83.00 87376 09/05/2024 Open Accounts Payable Bureau Veritas North America, Inc $15,345.00 87377 09/05/2024 Open Accounts Payable CALIFORNIA STATE DEPARTMENT

OF JUSTICE
$468.00
87378 09/05/2024 Open Accounts Payable CHARLES TAYLOR $300.00 87379 09/05/2024 Open Accounts Payable COMCAST CABLE $414.63 87380 09/05/2024 Open Accounts Payable CONTINENTAL BATTERY COMPANY $1,467.71 87381 09/05/2024 Open Accounts Payable Creative Composition Inc $872.03 87382 09/05/2024 Open Accounts Payable Crossfire Tree & Vegetation Services $15,875.00 87383 09/05/2024 Open Accounts Payable DELL SMALL BUSINESS $2,069.73 87384 09/05/2024 Open Accounts Payable Department of Pesticide Regulation $270.00 87385 09/05/2024 Open Accounts Payable DURHAM PENTZ TRUCK CENTER $7,454.84 87386 09/05/2024 Open Accounts Payable Free Style Embroidery $142.89 87387 09/05/2024 Open Accounts Payable Golden State Emergency Vehicle Service, Inc.
$2,313.49
87388 09/05/2024 Open Accounts Payable Government Finance Officers Association
$225.00
87389 09/05/2024 Open Accounts Payable GREAT AMERICA LEASING CORP. $156.25 87390 09/05/2024 Open Accounts Payable GREEN RIDGE LANDSCAPING $7,900.09 87391 09/05/2024 Open Accounts Payable Hat Creek Construction & Materials, Inc.
$955,304.96
87392 09/05/2024 Open Accounts Payable HDR Engineering, Inc $118,488.43 87393 09/05/2024 Open Accounts Payable HLP, INC / CHAMELEON

SOFTWARE PRODUCTS
$4.55
87394 09/05/2024 Open Accounts Payable Hope Crisis Response Network, Inc $14,531.20 87395 09/05/2024 Open Accounts Payable HQE Systems, Inc. $27,568.00 87396 09/05/2024 Open Accounts Payable HUDSON'S APPLIANCE CENTER $1,011.95 87397 09/05/2024 Open Accounts Payable I.M.P.A.C. PAYMENTS IMPAC GOV

SVCS/US BANCORP
$305.00
87398 09/05/2024 Open Accounts Payable Kevin Sharrah Designs $1,382.50 87399 09/05/2024 Open Accounts Payable LACO Associates $900.00 87400 09/05/2024 Open Accounts Payable LIFE ASSIST INC $284.45 87401 09/05/2024 Open Accounts Payable MID VALLEY TITLE & ESCROW $100,000.00 87402 09/05/2024 Open Accounts Payable Miwall Corporation $8,822.07 87403 09/05/2024 Open Accounts Payable MORGAN TREE SERVICE $1,200.00 user: Aimee Beleu Pages: 1 of 6 Monday, September 30, 2024 Payment Register

TOWN OF PARADISE
From Payment Date: 9/1/2024 - To Payment Date: 9/30/2024 28 Number Date Status Void Reason
Reconciled/
Voided Date Source Payee Name
Transaction
Amount
Reconciled
Amount Difference
87404 09/05/2024 Open Accounts Payable Mountain Cascade, Inc. $371,895.31 87405 09/05/2024 Open Accounts Payable MUNIMETRIX SYSTEMS CORP $39.99 87406 09/05/2024 Open Accounts Payable NAPA Auto Parts $14.22 87407 09/05/2024 Open Accounts Payable NEWMAN TRAFFIC SIGNS $873.56 87408 09/05/2024 Open Accounts Payable North State Tire Co. Inc. $343.83 87409 09/05/2024 Open Accounts Payable NORTHGATE PETROLEUM CO $8,820.73 87410 09/05/2024 Open Accounts Payable O'REILLY AUTO PARTS $494.45 87411 09/05/2024 Open Accounts Payable OFFICE DEPOT ACCT#36233169 $318.00 87412 09/05/2024 Open Accounts Payable OROVILLE FORD $844.48 87413 09/05/2024 Open Accounts Payable Oroville Tow & Salvage $100.00 87414 09/05/2024 Open Accounts Payable Owen Equipment Sales $193.24 87415 09/05/2024 Open Accounts Payable PACIFIC GAS & ELECTRIC $23,280.73 87416 09/05/2024 Open Accounts Payable PARADISE POST $106.85 87417 09/05/2024 Open Accounts Payable PARADISE RIDGE CHAMBER OF

COMMERCE
$195.00
87418 09/05/2024 Open Accounts Payable Peters, Habib, McKenna, JuhlRhodes & Cardoza, LLP$6,962.00 87419 09/05/2024 Open Accounts Payable PLACER GLASS $4,020.43 87420 09/05/2024 Open Accounts Payable RENTAL GUYS - CHICO $570.99 87421 09/05/2024 Open Accounts Payable Spherion Staffing $6,213.76 87422 09/05/2024 Open Accounts Payable Stuart Bannister $240.67 87423 09/05/2024 Open Accounts Payable THOMAS ACE HARDWARE $1,265.36 87424 09/05/2024 Open Accounts Payable THOMAS ACE HARDWARE - ENG.

DEPT.
$435.08
87425 09/05/2024 Open Accounts Payable THOMAS ACE HARDWARE - FIRE DEPT.
$8.05
87426 09/05/2024 Open Accounts Payable THOMAS ACE HARDWARE -

MOTORPOOL
$1.59
87427 09/05/2024 Open Accounts Payable TUCKER PEST CONTROL INC $95.00 87428 09/05/2024 Open Accounts Payable ULINE $59.59
87429 09/05/2024 Open Accounts Payable VERIZON WIRELESS $3,730.29 87430 09/05/2024 Open Accounts Payable Williams Scotsman, Inc. (Mobile Mini) $245.93 87431 09/05/2024 Open Accounts Payable Wood, Montana, S $75.00 87432 09/05/2024 Open Accounts Payable YOWZERS.COM $418.07 87433 09/05/2024 Open Accounts Payable Paradise Senior Associates, Limited Partnership
$131,183.49
87434 09/13/2024 Open Accounts Payable Aflac $57.98
87435 09/13/2024 Open Accounts Payable Met Life $12,846.84 87436 09/13/2024 Open Accounts Payable OPERATING ENGINEERS $1,088.00 87437 09/13/2024 Open Accounts Payable PARADISE POLICE OFFICERS

ASSOCIATION
$2,398.06
87438 09/13/2024 Open Accounts Payable SUN LIFE INSURANCE $9,884.03 87439 09/13/2024 Open Accounts Payable SUPERIOR VISION SVC INC $917.02 87440 09/13/2024 Open Accounts Payable TOP CONFIDENTIAL MID MGMT

ASSOCIATION
$75.00
87441 09/17/2024 Open Accounts Payable ICMA 457 - MissionSquare $2,060.28 87442 09/17/2024 Open Accounts Payable STATE DISBURSEMENT UNIT $656.29 87443 09/19/2024 Open Accounts Payable I.M.P.A.C. PAYMENTS IMPAC GOV

SVCS/US BANCORP
$27,125.01
87444 09/19/2024 Open Accounts Payable 4LEAF, Inc $8,300.00 user: Aimee Beleu Pages: 2 of 6 Monday, September 30, 2024 Payment Register

TOWN OF PARADISE
From Payment Date: 9/1/2024 - To Payment Date: 9/30/2024 29 Number Date Status Void Reason
Reconciled/
Voided Date Source Payee Name
Transaction
Amount
Reconciled
Amount Difference
87445 09/19/2024 Open Accounts Payable ACCESS INFORMATION

PROTECTED
$214.36
87446 09/19/2024 Open Accounts Payable Adams Ashby Group, Inc. $22,276.55 87447 09/19/2024 Open Accounts Payable ADVANCED DOCUMENT

CONCEPTS
$341.76
87448 09/19/2024 Open Accounts Payable AGS CONSTRUCTION SERVICES $3,608.00 87449 09/19/2024 Open Accounts Payable ALHAMBRA $149.43 87450 09/19/2024 Open Accounts Payable ALLIANT INSURANCE $351.00 87451 09/19/2024 Open Accounts Payable American River Benefit Administrators $16.80 87452 09/19/2024 Open Accounts Payable ANDREW DAVIS $104.22 87453 09/19/2024 Open Accounts Payable AT&T & CALNET3 - CIRCUIT LINES $102.91 87454 09/19/2024 Open Accounts Payable AT&T & CALNET3 - CIRCUIT LINES $764.08 87455 09/19/2024 Open Accounts Payable AT&T MOBILITY $191.18 87456 09/19/2024 Open Accounts Payable AT&T/CALNET3 - REPEATER LINES $197.05 87457 09/19/2024 Open Accounts Payable AT&T/CALNET3 - COMMUNITY PARK
$29.69
87458 09/19/2024 Open Accounts Payable AT&T/CALNET3 - Summary $29.98 87459 09/19/2024 Open Accounts Payable AT&T/CALNET3 - Summary $3,547.33 87460 09/19/2024 Open Accounts Payable AT&T/CALNET3 - TH/FDPD FIBER LINES
$1,057.74
87461 09/19/2024 Open Accounts Payable Azco Supply Inc $242.44 87462 09/19/2024 Open Accounts Payable Bear Electrical Systems, Inc $1,520.00 87463 09/19/2024 Open Accounts Payable Big O Tires $30.00 87464 09/19/2024 Open Accounts Payable Biometrics4ALL, Inc $15.00 87465 09/19/2024 Open Accounts Payable Brush Masters $4,470.00 87466 09/19/2024 Open Accounts Payable BURTON'S FIRE, INC. $1,316.84 87467 09/19/2024 Open Accounts Payable BUTTE CO AIR QUALITY

MANAGEMENT DISTRICT
$185.60
87468 09/19/2024 Open Accounts Payable BUTTE CO AUDITOR-CONTROLLER $32,632.67 87469 09/19/2024 Open Accounts Payable BUTTE CO NEAL ROAD LANDFILL $121.27 87470 09/19/2024 Open Accounts Payable BUTTE COMMUNITY COLLEGE $646.00 87471 09/19/2024 Open Accounts Payable California Building Officials (CALBO) $520.00 87472 09/19/2024 Open Accounts Payable California Chapter APA $400.00 87473 09/19/2024 Open Accounts Payable Capitol Clutch and Brake, Inc $288.32 87474 09/19/2024 Open Accounts Payable COMCAST CABLE $156.63 87475 09/19/2024 Open Accounts Payable COMCAST CABLE $409.63 87476 09/19/2024 Open Accounts Payable COMCAST CABLE $429.63 87477 09/19/2024 Open Accounts Payable CONTINENTAL BATTERY COMPANY $112.71 87478 09/19/2024 Open Accounts Payable Cooper, Andrew $425.50 87479 09/19/2024 Open Accounts Payable Creative Composition Inc $1,100.61 87480 09/19/2024 Open Accounts Payable De Lage Landen Public Finance LLC $781.25 87481 09/19/2024 Open Accounts Payable Dokken Engineering, Inc. $63,836.98 87482 09/19/2024 Open Accounts Payable DURHAM PENTZ TRUCK CENTER $1,107.71 87483 09/19/2024 Open Accounts Payable ENLOE MEDICAL CENTER, INC. $512.00 87484 09/19/2024 Open Accounts Payable Golden State Emergency Vehicle Service, Inc.
$3,848.64
87485 09/19/2024 Open Accounts Payable GREAT AMERICA LEASING CORP. $145.47 87486 09/19/2024 Open Accounts Payable GREEN RIDGE LANDSCAPING $1,861.34 87487 09/19/2024 Open Accounts Payable Hawkins Delafield & Wood LLP $437.50 87488 09/19/2024 Open Accounts Payable HINDERLITER, DE LLAMAS & ASSOCIATES INC.
$1,155.93
user: Aimee Beleu Pages: 3 of 6 Monday, September 30, 2024 Payment Register

TOWN OF PARADISE
From Payment Date: 9/1/2024 - To Payment Date: 9/30/2024 30 Number Date Status Void Reason
Reconciled/
Voided Date Source Payee Name
Transaction
Amount
Reconciled
Amount Difference
87489 09/19/2024 Open Accounts Payable Housing Authority of the County of Butte
$206,049.30
87490 09/19/2024 Open Accounts Payable Huggins, Jeannette $425.50 87491 09/19/2024 Open Accounts Payable J.J.R. Enterprises Inc $960.32 87492 09/19/2024 Open Accounts Payable James or Lavenia Riotto $200.00 87493 09/19/2024 Open Accounts Payable Jamie Muhlbaier $575.30 87494 09/19/2024 Open Accounts Payable Jennifer Arbuckle $3,875.00 87495 09/19/2024 Open Accounts Payable KOEFRAN INDUSTRIES $1,200.00 87496 09/19/2024 Open Accounts Payable L.N. CURTIS & SONS $2,239.89 87497 09/19/2024 Open Accounts Payable LACO Associates $8,000.00 87498 09/19/2024 Open Accounts Payable LEHR AUTO ELECTRIC STOMMEL, INC.
$1,175.13
87499 09/19/2024 Open Accounts Payable LES SCHWAB TIRE CENTER -

MOTORPOOL
$3,520.31
87500 09/19/2024 Open Accounts Payable LIFE ASSIST INC $1,283.16 87501 09/19/2024 Open Accounts Payable Lui, Andrea $425.50 87502 09/19/2024 Open Accounts Payable Meyers Police K-9 Training, LLC $2,925.00 87503 09/19/2024 Open Accounts Payable Morgan Ridge Construction, Inc. $7,429.00 87504 09/19/2024 Open Accounts Payable Murphys Construction $51,800.00 87505 09/19/2024 Open Accounts Payable NAPA Auto Parts $106.61 87506 09/19/2024 Open Accounts Payable Nichols-Melburg + Rossetto, AIA + Associates Inc
$17,833.00
87507 09/19/2024 Open Accounts Payable North State Tire Co. Inc. $482.67 87508 09/19/2024 Open Accounts Payable NORTHERN RECYCLING & WASTE SERVICES, INC.
$11,254.83
87509 09/19/2024 Open Accounts Payable NORTHGATE PETROLEUM CO $10,020.29 87510 09/19/2024 Open Accounts Payable O'REILLY AUTO PARTS $941.12 87511 09/19/2024 Open Accounts Payable OFFICE DEPOT ACCT#36233169 $1,370.53 87512 09/19/2024 Open Accounts Payable Owen Equipment Sales $1,293.03 87513 09/19/2024 Open Accounts Payable PACIFIC GAS & ELECTRIC $21,941.95 87514 09/19/2024 Open Accounts Payable PARADISE POST $142.64 87515 09/19/2024 Open Accounts Payable PICKERING, ROBERT $425.50 87516 09/19/2024 Open Accounts Payable PLACER LABS INC. $13,500.00 87517 09/19/2024 Open Accounts Payable Placer Title Company $210,177.00 87518 09/19/2024 Open Accounts Payable PORAC LAW ENFORCEMENT $820.00 87519 09/19/2024 Open Accounts Payable Psomas $42,637.03 87520 09/19/2024 Open Accounts Payable R B SPENCER INC $2,750.00 87521 09/19/2024 Open Accounts Payable Spherion Staffing $9,524.38 87522 09/19/2024 Open Accounts Payable St John, Mollie, A $630.00 87523 09/19/2024 Open Accounts Payable Stephen Craig Murray $1,250.00 87524 09/19/2024 Open Accounts Payable Stratti $6,178.85 87525 09/19/2024 Open Accounts Payable Swedes Small Engine Repair LLC $77.75 87526 09/19/2024 Open Accounts Payable T and S DVBE Inc. $340.49 87527 09/19/2024 Open Accounts Payable T MOBILE USA, INC. $1,830.73 87528 09/19/2024 Open Accounts Payable Tahoe Pure Water Co. $76.30 87529 09/19/2024 Open Accounts Payable The Ferguson Group $5,000.00 87530 09/19/2024 Open Accounts Payable THOMAS ACE HARDWARE $110.70 87531 09/19/2024 Open Accounts Payable THOMAS ACE HARDWARE - ENG.

DEPT.
$139.70
87532 09/19/2024 Open Accounts Payable THOMAS ACE HARDWARE - FIRE DEPT.
$31.82
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TOWN OF PARADISE
From Payment Date: 9/1/2024 - To Payment Date: 9/30/2024 31 Number Date Status Void Reason
Reconciled/
Voided Date Source Payee Name
Transaction
Amount
Reconciled
Amount Difference
87533 09/19/2024 Open Accounts Payable Thompson, Travis $99.00 87534 09/19/2024 Open Accounts Payable THRIFTY ROOTER $593.49 87535 09/19/2024 Open Accounts Payable Top Notch Commercial Cleaning Inc. $6,800.00 87536 09/19/2024 Open Accounts Payable Tri Flame Propane $310.78 87537 09/19/2024 Open Accounts Payable TRUEPOINT SOLUTIONS, LLC $1,567.50 87538 09/19/2024 Open Accounts Payable TYLER TECHNOLOGIES, INC. $60,905.00 87539 09/19/2024 Open Accounts Payable Urban Design Associates. LTD $37,931.65 87540 09/19/2024 Open Accounts Payable Urban Design Solar $12,653.57 87541 09/19/2024 Open Accounts Payable Utility Associates, Inc. $33.00 87542 09/19/2024 Open Accounts Payable VALLEY OAK VETERINARY CENTER
$2,249.95
87543 09/19/2024 Open Accounts Payable VERIZON WIRELESS $1,552.91 87544 09/19/2024 Open Accounts Payable Westlake Ace Hardware $54.11 87545 09/19/2024 Open Accounts Payable WITTMEIER AUTO CENTER $5,502.91 87546 09/30/2024 Open Accounts Payable ICMA 457 - MissionSquare $2,060.28 87547 09/30/2024 Open Accounts Payable STATE DISBURSEMENT UNIT $656.29 Type Check Totals: 186 Transactions $2,884,300.61
EFT
54 09/05/2024 Open Accounts Payable EMPLOYMENT DEVELOPMENT

DEPARTMENT
$1,107.55
55 09/05/2024 Open Accounts Payable ING LIFE INS & ANNUITY COMPANY $1,000.00 56 09/05/2024 Open Accounts Payable INTERNAL REVENUE SERVICE $2,643.72 57 09/10/2024 Open Accounts Payable CALPERS $158,454.04 58 09/16/2024 Open Accounts Payable EMPLOYMENT DEVELOPMENT

DEPARTMENT
$14,005.54
59 09/16/2024 Open Accounts Payable INTERNAL REVENUE SERVICE $43,981.92 60 09/13/2024 Open Accounts Payable CALPERS - RETIREMENT $65,134.33 61 09/17/2024 Open Accounts Payable ING LIFE INS & ANNUITY COMPANY $8,840.76 62 09/30/2024 Open Accounts Payable CALPERS - RETIREMENT $65,599.23 63 09/30/2024 Open Accounts Payable EMPLOYMENT DEVELOPMENT

DEPARTMENT
$12,928.10
64 09/30/2024 Open Accounts Payable ING LIFE INS & ANNUITY COMPANY $8,840.76 65 09/30/2024 Open Accounts Payable INTERNAL REVENUE SERVICE $41,773.78 Type EFT Totals: 12 Transactions $424,309.73
AP TCB - General Checking Totals
Checks Status Count Transaction Amount Reconciled Amount Open 186 $2,884,300.61 $0.00
Reconciled 0 $0.00 $0.00
Voided 0 $0.00 $0.00
Stopped 0 $0.00 $0.00
Total 186 $2,884,300.61 $0.00
EFTs Status Count Transaction Amount Reconciled Amount
Open 12 $424,309.73 $0.00
Reconciled 0 $0.00 $0.00
Voided 0 $0.00 $0.00
Total 12 $424,309.73 $0.00
All Status Count Transaction Amount Reconciled Amount
Open 198 $3,308,610.34 $0.00
user: Aimee Beleu Pages: 5 of 6 Monday, September 30, 2024 Payment Register

TOWN OF PARADISE
From Payment Date: 9/1/2024 - To Payment Date: 9/30/2024 32 Number Date Status Void Reason
Reconciled/
Voided Date Source Payee Name
Transaction
Amount
Reconciled
Amount Difference
Reconciled 0 $0.00 $0.00
Voided 0 $0.00 $0.00
Stopped 0 $0.00 $0.00
Total 198 $3,308,610.34 $0.00
Grand Totals:

Checks Status Count Transaction Amount Reconciled Amount Open 186 $2,884,300.61 $0.00
Reconciled 0 $0.00 $0.00
Voided 0 $0.00 $0.00
Stopped 0 $0.00 $0.00
Total 186 $2,884,300.61 $0.00
EFTs Status Count Transaction Amount Reconciled Amount
Open 12 $424,309.73 $0.00
Reconciled 0 $0.00 $0.00
Voided 0 $0.00 $0.00
Total 12 $424,309.73 $0.00
All Status Count Transaction Amount Reconciled Amount
Open 198 $3,308,610.34 $0.00
Reconciled 0 $0.00 $0.00
Voided 0 $0.00 $0.00
Stopped 0 $0.00 $0.00
Total 198 $3,308,610.34 $0.00
user: Aimee Beleu Pages: 6 of 6 Monday, September 30, 2024 Payment Register

TOWN OF PARADISE
From Payment Date: 9/1/2024 - To Payment Date: 9/30/2024 33 Town of Paradise
Council Agenda Summary
Date: October 8, 2024
Agenda Item: 2(c)
ORIGINATED BY: Garrett Needles, Fire Chief
REVIEWED BY: Jim Goodwin, Town Manager
SUBJECT: Declaration of Certain Town Equipment from the Fire Department to be Surplus and Obsolete.

LONG TERM
RECOVERY PLAN:

No
COUNCIL ACTION REQUESTED:

1. Declare the attached described equipment as surplus property; and,

Over time, equipment is purchased, used, becomes obsolete and needs to be replaced.

Analysis:

The items listed within “Exhibit A” are not economical to maintain and/or repair due to discontinued parts and/or the items have reached their end of life. It is recommended these items be disposed of as surplus property through proper procedures. The Town of Paradise has no further need for or use of the items outlined within “Exhibit A.”
Financial Impact:

The disposal of these items will have no negative impact on the General Fund. 34 1

TOWN OF PARADISE
RESOLUTION NO. 2024-__

A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF PARADISE

DECLARING CERTAIN TOWN PROPERTY TO BE SURPLUS

ANDAUTHORIZING DISPOSAL BY THE TOWN MANAGER

OR HIS DESIGNEE THEREOF
WHEREAS, the Town of Paradise wishes to dispose of certain equipment from the Fire Department through public auction, internet sale, salvage or other legal method that is no longer functional or necessary to the Town’s operations.

NOW, THEREFORE, BE IT RESOLVED by the Town Council of the Town of Paradise as follows:

Section 1. The Town hereby declares Fire Department property surplus as set forth in “Exhibit A" attached hereto and made a part hereof by reference.

Section 2. Pursuant to Paradise Municipal Code Section 2.45.130, the Town Manager is hereby authorized to dispose of the property set forth in Section 1 through public auction, internet, sale, salvage, donation or other legal method.

PASSED AND ADOPTED by the Town Council of the Town of Paradise on this 8 th day of
October, 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

By: ________________________________
Ronald Lassonde, Mayor
ATTEST:

Melanie Elvis, Town Clerk/Elections Official
APPROVED AS TO FORM:

Scott E. Huber, Town Attorney
35 TOWN OF PARADISE
RESOLUTION NO. 2024-___
2 “Exhibit A”
Miscellaneous Items:

Item Quantity Description Surplus ✔️ Destroy ✔️ Condition Extrication
Power Unit 1 Holmatro Model # DPU-30 x Used
Extrication
Power Unit 1 Holmatro Model # PPU-20 x Used
Extrication
Cutter 1 Holmatro Model # ??? x Used
Extrication
Spreader 1 Holmatro Model # 90Y8 x Used
Extrication
Ram 1 Holmatro Model # 10ZN x Used
Extrication
Spreader 1 Holmatro Mode # ??? x Used
Extrication
Cutter 1 Holmatro Model # ??? x Used
Ventilation
Fan 2 Tempest Model # BD 18 x Used
Ventilation
Fan 1 Unifire Model # DS-9P4 x Used
Hydraulic
Hoses 2 Holmatro Core Hose x Used
Hydraulic
Hoses 2 Holmatro Hose Pairs x Used
36 Town of Paradise
Council Agenda Summary
Date: October 8, 2024
Agenda Item: 2(d)
ORIGINATED BY: Melanie Elvis, Town Clerk/Elections Official REVIEWED BY: Jim Goodwin, Town Manager
SUBJECT: Utility Box Mural Project Donation Acceptance

LONG TERM
RECOVERY PLAN:

No
COUNCIL ACTION REQUESTED:

1. Accept a donation of $2,000 to help fund the Utility Box Mural Project.

Background:

On September 10, 2024, Town Council adopted guidelines for the Utility Box Mural Project and authorized Town Staff to initiate a call to artists to begin the first installation. The vinyl wraps cost $750 per utility box and the selected artists will be paid a $250 honorarium for their work. $9,600 was budgeted for this project in the Recovery and Economic Development Department budget for the 2024-25 fiscal year. The first installation was anticipated to include 8 of the 16 utility boxes.

Following the adoption of the project guidelines, Mayor Ronald Lassonde donated $2,000 to the project requesting the money be used to fund two additional utility boxes for a total of 10 boxes to be included in the first installation.

Analysis:

Town Council Resolution No. 96-17 provides for the formal presentation and acceptance of donations made to the Town of Paradise at a public meeting. This process provides a tax record for the citizen or organization as well as clear direction to the Finance Director to deposit such donations to specific accounts as requested by donor(s).

Staff recommends Town Council accept the donation of the $2,000 from Mayor Ronald Lassonde.

Financial Impact:

The acceptance of the donation of $2,000 will have no negative impact on the General Fund. 37 Town of Paradise
Council Agenda Summary
Date: October 8, 2024
Agenda Item: 2(e)
ORIGINATED BY: Eric Reinbold, Police Chief
REVIEWED BY: Jim Goodwin, Town Manager
SUBJECT: Office of Traffic Safety Grant Acceptance

LONG TERM
RECOVERY PLAN:

No
COUNCIL ACTION REQUESTED:

1. Approve an agreement with the California Office of Traffic Safety for the acceptance of the Selective Traffic Enforcement Program (STEP) grant award.

Background:

The Paradise Police Department has applied, and been approved, for a Selective Traffic Enforcement Program (STEP) grant from the California Office of Traffic Safety (OTS). The grant period spans from October 1, 2024, to September 30, 2025, in the amount of $40,000. These funds will provide overtime and training opportunities for Officers with minimal to no staffing impact related to normal operations, as well as purchasing equipment required for this mission.

This grant was approved through OTS due to the significant increase in vehicular traffic through the Town of Paradise since the Camp Fire. The Town of Paradise has seen a 50% increase in crashes between 2021 and 2023, including a 27.5% increase in injuries resulting from crashes in that period. To mitigate these increases, the Paradise Police Department has increased its traffic safety enforcement operations. Due to these operations, there has been an increase of citations for speed related violations by more than 80% between 2022 and 2023. In that same period, citations for stop sign violations increased by 118%. Additionally, seat belt violations have increased by 500% during the same period.

The goal of this grant is to reduce the number of persons killed and injured in crashes involving alcohol and other primary crash factors. Strategies which will be funded by this grant include impaired driving enforcement, enforcement operations focusing on primary crash factors (such as driving at unsafe speeds, stop sign violations, red light violations, etc.), distracted driving, seat belt enforcement, the encouragement of motorcycle safety, increasing public awareness and enforcement in areas with high numbers of pedestrian and bicycle crashes, and public educational programs.

Analysis:

By receiving the grant funds, the Paradise Police Department will be financially empowered to increase traffic enforcement and educational operations, with the goal of reducing the number of crashes and the number of individuals injured as a result. Staff recommends Council accept the grant of $40,000 from OTS.
38 Financial Impact:

This is a reimbursable grant.
 The funds utilized for these operations may be initially deducted from the Department’s Traffic Safety Account.
 Quarterly reimbursement requests will be submitted to OTS with justification for funds spent.
 OTS will process reimbursement requests and provide those funds to the Town’s Finance Department.

The acceptance of the $40,000 grant allowance is expected to have no fiscal impact relating to its usage at the conclusion of the grant period.
39 Town of Paradise
Council Agenda Summary
Date: October 8, 2024
Agenda Item: 2(f)
ORIGINATED BY: Marc Mattox, Public Works Director/Town Engineer Tony Lindsey, Community Development Director
REVIEWED BY: Scott E. Huber, Town Attorney
Jim Goodwin, Town Manager
SUBJECT: Authorize destruction of certain records maintained in the Engineering and Community Development Departments in
keeping with the principles of an effective and cost-efficient Records Management Program.

LONG TERM
RECOVERY PLAN:

No
COUNCIL ACTION REQUESTED:

1. Adopt Resolution No. 2024-__, “A Resolution of The Town Council of the Town of Paradise Authorizing Disposal of Certain Town Records Maintained in the Engineering Department Pursuant to Government Code Section 34090”; and,

2. Adopt Resolution No. 2024-__, “A Resolution of The Town Council of the Town of Paradise Authorizing Disposal of Certain Town Records Maintained in the Community Development Department Pursuant to Government Code Section 34090.”; or,

3. Make the determination that certain records listed for destruction have no value to the agency, and direct that all or some of the records listed in Exhibits “B” continue to be maintained.

Background:

The Town has had an established records management program since the early 1980’s. Based upon recommendations from the California Secretary of State, all Town records have been appraised, inventoried and scheduled with a retention/destruction code pursuant to Town of Paradise Resolution No. 04-27 (original schedule was adopted in 1993 by Resolution No. 93-30).

This resolution provides the Town with legal authority to dispose of certain records that are no longer required by the Town.

Analysis:

Once records have fulfilled their administrative, fiscal, or legal function they should be disposed of as soon as possible to maintain efficient, effective and economical management of information.

Resolution No. 04-27 provides for the legal authority, with the Town Attorney’s consent, to dispose of records that no longer serve the administrative, legal and/or fiscal purposes for which they were created. Since the records are eligible for destruction and no longer have value to the Town, it is appropriate that the Council adopt the proposed resolutions.

Financial Impact:

No additional cost will be borne by the Town in destroying these records. The Finance Division already contracts for regular shredding service and any documents not containing confidential or sensitive information will be recycled.
40 TOWN OF PARADISE
RESOLUTION NO. 2024-__

A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF PARADISE AUTHORIZING

DISPOSAL OF CERTAIN TOWN RECORDS MAINTAINED IN THE ENGINEERING DEPARTMENT PURSUANT TO GOVERNMENT CODE SECTION 34090.

WHEREAS, Government Code Section 34090 authorizes the head of a Town department, with the written consent of the Town Attorney, to destroy certain records over two years of age upon approval of the legislative body; and,
WHEREAS, the Town Attorney consent is incorporated into this resolution as Exhibit “A” approving the destruction of those certain records set forth in Exhibit “A”; and, WHEREAS the specific records are set forth on Exhibit “B”; and, WHEREAS, the Town Engineer is requesting to dispose of certain records maintained in the Engineering Department as set forth on the attached Exhibit “B”.

NOW, THEREFORE, the Town Council of the Town of Paradise does resolve as follows:

SECTION 1: The Town Engineer of the Town of Paradise is hereby authorized to dispose of the records set forth in Exhibit “B" of this resolution.

PASSED AND ADOPTED by the Town Council of the Town of Paradise this 8 th day of
October 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
__________________________
Ronald, Lassonde Mayor
ATTEST:
____________________________
Melanie Elvis, Town Clerk/Elections Official
APPROVED AS TO FORM:
_____________________________
Scott E. Huber, Town Attorney
41 TOWN OF PARADISE
RESOLUTION NO. 2024-__
EXHIBIT “A”
Consent to Destruction of Certain Records, Documents
and Papers of the Town of Paradise
Pursuant to the Government Code Section 34090, I hereby consent to the destruction of those certain records, documents and papers of the Town of Paradise listed on Exhibit “B” attached to Resolution No. 2024-__.

DATED:
_____________________________
Scott E. Huber, Town Attorney
42 TOWN OF PARADISE
RESOLUTION NO. 2024-__

RETAIN FILE DESCRIPTION DESTROY AFTER
DATE
CL+2 Traffic Counts & Speed Surveys 1988 - 2007 Recycle 12/31/2009 AU+5
CU+2
RFP’s for *Highway Safety Improvement Projects 2013
Successful
Unsuccessful
*Trailway Signs, Cypress Curve, Signal Enhancements, Clark Road Enhancements & Person Road Widening
Recycle
12/31/2019
RFP’s for Environmental Testing – 2011
Pearson & Recreation Drive Signal
Wagstaff & Pentz Signal
Recycle
6/30/2013
* *Development – Unsuccessful Bids & Proposals CL+2 Destroy after Date *Purchasing
 Bids, RFQ’s, RFP’s (AU+4 per GC)
 Successful (AU+5 per CCP)
Unsuccessful (CU+2)
Apr 2013

13.03.CON
Micro Surfacing Project
Intermountain Slurry Seal Inc - Certified Payroll, Construction Documents
Apr 2016
Jun 2013

13.04.CON
Bille Rd Overlay – Posey to Fern
 Bid Book & Copy of Notice of Completion
 Franklin Construction
 Folsom Lake Asphalt
 Knife River Construction
Jun 2019
Jul 2014

14.02.CON
Cypress Curve Preliminary Engineering Services
 Ausmus Engineering
 Coastland
 Mark Thomas & Co
 NorthStar Engineering
 Gallaway
Cypress Curve Cost Proposals
 Ausmus Engineering
 Bennett Engineering (BEN EN)
 Coastland
 NorthStar
 Rolls Anderson & Rolls (RAR)
Jul 2020
43 TOWN OF PARADISE
RESOLUTION NO. 2024-__
Apr 2016

16.05.CON
Measure C Road Rehabilitation Project 2016
Bid Book
 American Pavement Systems Inc
 CA Pavement Maintenance Co Inc
 Graham Contractors Inc
 Intermountain Slurry Seal
 Pavement Coatings Co
 Sierra Nevada Construction Inc
 Telfer Pavement Technologies LLC
 VSS International Inc
Apr 2022
May 2016

16.01.CON.PE
Almond St Multi-Modal Improvements Project
Environmental, Right-of-Way & Preliminary Engineering
Services
 Mark Thomas & Company
 NorthStar Engineering
May 2022
May 2016

16.04PE
Ponderosa Elementary SR2S Project
Environmental, Right of Way and Preliminary Engineering Services
 Bennett Engineering Services (BEN/EN)
NorthStar Engineering
May 2022
Sep 2016

15.01.CON
Pearson Rd Connectivity Project
 Bid Book- Bid Notice Special Provisions, Bid Documents & Contract
Sep 2022
Sept 2016

16.13.CON
PD Siding Repairs 2016
 Pro-Ex-Construction Inc
Twin Trees Inc dba Twin Builders
Sep 2022
Dec 2016

14.02.CON
Cypress Curve Realignment Project
 Ausmus Engineering
 Coastland Engineering
 Baldwin Contracting Co Inc dba Knife River Construction  Baldwin DBE
 Franklin Construction
 Knife River DBE & Bid Protest
 Lamon Construction Co Inc
 Stimpel-Wiebelhaus Associates Inc
Dec 2022
44 TOWN OF PARADISE
RESOLUTION NO. 2024-__
2017

17.03 CON
Construction Engineering (CE) Services for 2017 State & Federal Aid Projects
4Leaf
Coastland
dh drake haglan & Associates
Dec 2023
May 2017

17.05CON
Measure C Bille Road Overlay
 Franklin Construction
 Knife River Construction
 Lamon Construction
May 2023
Mar 2019

PROFESSIONAL ARBORIST SERVICES
Priority 2 Camp Fire Evaluation
 Arbor Pro
 Davey Resource Group
Mountain G Enterprises Inc (MGE)
Mar 2024
March 2019
19-03.CON

13.03.CON
Micro Surfacing Project
Intermountain Slurry Seal Inc - Certified Payroll, Construction Documents
Apr 2016
45 TOWN OF PARADISE
RESOLUTION NO. 2024-__
Jun 2013

13.04.CON
Bille Rd Overlay – Posey to Fern
 Bid Book & Copy of Notice of Completion
 Franklin Construction
 Folsom Lake Asphalt
 Knife River Construction
Jun 2019
Jul 2014

16.01.CON.PE
Almond St Multi-Modal Improvements Project
Environmental, Right-of-Way & Preliminary Engineering
Services
 Mark Thomas & Company
 NorthStar Engineering
May 2022
May 2016

16.04PE
Ponderosa Elementary SR2S Project
Environmental, Right of Way and Preliminary Engineering Services
 Bennett Engineering Services (BEN/EN)
NorthStar Engineering
May 2022
46 TOWN OF PARADISE
RESOLUTION NO. 2024-__
Sep 2016

15.01.CON
Pearson Rd Connectivity Project
 Bid Book- Bid Notice Special Provisions, Bid Documents & Contract
Sep 2022
Sept 2016

16.13.CON
PD Siding Repairs 2016
 Pro-Ex-Construction Inc
Twin Trees Inc dba Twin Builders
Sep 2022
Dec 2016

17.03 CON
Construction Engineering (CE) Services for 2017 State & Federal Aid Projects
4Leaf
Coastland
dh drake haglan & Associates
Dec 2023
May 2017

17.05CON
Measure C Bille Road Overlay
 Franklin Construction
 Knife River Construction
 Lamon Construction
May 2023
Mar 2019

PROFESSIONAL ARBORIST SERVICES
Priority 2 Camp Fire Evaluation
 Arbor Pro
 Davey Resource Group
Mountain G Enterprises Inc (MGE)
Mar 2024
47 TOWN OF PARADISE
RESOLUTION NO. 2024-__
March 2019
19-03.CON

POST FIRE RECOVERY & REBUILDING ASSISTANCE
 4Leaf, Inc
 Acorn Onsite, Inc
 Ben/En Engineering Services
 Bureau Veritas North America, Inc
 Core Group, LTD
 CSG Consultants
 NV5
 SAFEbuilt, LLC
West Coast Code Consultants, Inc (WC3)
Mar 2024
Apr 2019
Camp Fire On-Call Tree Felling Services
 A&E Arborists Tree Care
 P31 Enterprises, Inc
April 2024
Bids, RFP’s, RFQ’s – Various Projects
AU+5
Destroy after Date
Mar 2012
Contract Documents & Technical Provisions for the
Pearson – Recreation Drive Signalization & Road Improvements Project – Safe Routes to School (SR2S)
Mar 2016
Jan 2013
Dollar General Store #14477
Drainage Study
RFE Engineering Inc
Jan 2019
Feb 2013
Pearson-Recreation Drive Signalization Project
From Academy Dr to Clark Rd
Franklin Construction
George Reed, Inc
Knife River Construction
R & R Horn Contractors Inc
Santos Excavating Inc
Feb 2019
Mar 2013
Pearson – Recreation Dr Signalization Pjt
Construction Quality Assurance
 Holdredge & Kull
Lumos & Associates
Mar 2019
May 2013
13-03 CON
Paradise Micro-Surfacing Project
 Central Valley Engineering & Asphalt
 CA Pavement Maintenance Co Inc
 Graham Contractors Inc
 Intermountain Slurry Seal
 VSS International
Windsor Fuel Co
May 2019
48 TOWN OF PARADISE
RESOLUTION NO. 2024-__
Aug 2013
Skyway HSIP Preliminary Eng Services
Traffic Works
Apr 2019
May 2014
Professional Traffic Engineering Services
Downtown Paradise Safety Project (DPSP)
 Traffic Works
May 2020
June 2014
Downtown Paradise Safety Project
Construction Quality Assurance
 M. T. Hall & Associates
 Holdredge & Kull
June 2020
Oct 2014
Topographic Surveying & Mapping Services
Town of Paradise Federal-Aid Projects
 NorthStar Engineering
 L & L Surveying Inc
 Rolls Anderson Rolls (RAR)
Oct 2020
Dec 2014

14.03CON
Signal Upgrades
 All Phase Excavating & Construction Inc
 M & M Electric
 Pacific Excavation Inc
 Pelagic Engineering
 St Francis Electric Inc
 Studebaker Brown Electric
 Tennyson Electric Inc
Dec 2020
May 2016

14.04.CON
Measure “C” Pearson Rd Improvements
East of Clark Rd to Intersection of Pentz
Bid Book
 Franklin Construction Inc
 Knife River Construction
 Lamon Construction Co Inc
One unopened bid (received after deadline)
May 2022
Reviewed by:
_______________________________________
Marc Mattox, Public Works Director/Town Engineer
49 TOWN OF PARADISE
RESOLUTION NO. 2024-__

A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF PARADISE AUTHORIZING

DISPOSAL OF CERTAIN TOWN RECORDS MAINTAINED IN THE COMMUNITY

DEVELOPMENT DEPARTMENT/ BUILDING DIVISION PURSUANT TO GOVERNMENT CODE SECTION 34090.

WHEREAS, Government Code Section 34090 authorizes the head of a Town department, with the written consent of the Town Attorney, to destroy certain records over two years of age upon approval of the legislative body; and,
WHEREAS, the Town Attorney consent is incorporated into this resolution as Exhibit “A” approving the destruction of those certain records set forth in Exhibit “A”; and, WHEREAS the specific records are set forth on Exhibit “B”; and, WHEREAS, the Community Development Department is requesting to dispose of certain records maintained in the Community Development Department/Building Division as set forth on the attached Exhibit “B”.

NOW, THEREFORE, the Town Council of the Town of Paradise does resolve as follows:

SECTION 1: The Community Development Department of the Town of Paradise is hereby authorized to dispose of the records set forth in Exhibit “B" of this resolution.

PASSED AND ADOPTED by the Town Council of the Town of Paradise this 8 th day of
October 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
__________________________
Ronald, Lassonde Mayor
ATTEST:
____________________________
Melanie Elvis, Town Clerk/Elections Official
APPROVED AS TO FORM:
_____________________________
Scott E. Huber, Town Attorney
50 TOWN OF PARADISE
RESOLUTION NO. 2024-__
EXHIBIT “A”
Consent to Destruction of Certain Records, Documents
and Papers of the Town of Paradise
Pursuant to the Government Code Section 34090, I hereby consent to the destruction of those certain records, documents and papers of the Town of Paradise listed on Exhibit “B” attached to Resolution No. 2024-__.

DATED:
_____________________________
Scott E. Huber, Town Attorney
51 TOWN OF PARADISE
RESOLUTION NO. 2024-__
FILE # RETAIN FILE DESCRIPTION
10 Banker Boxes:
6 contain outdated code books and manuals,
4 contain correspondence, various reference materials
6 Unlabeled
Boxes
S (Superseded) Outdated Manuals and Code Books (6 Boxes) Recycle 1 Box A S Administration References Books 1989 - 1998 Recycle 1 Box D S Reference Guides, FEMA Standards 1976 - 1995 Recycle 1 Box E N/A Copies of Budgets 1987 – 1993 Originals in Clerk Dept Recycle 1 Box F N/A
AU+4
CL + 10
S
Copies of Budgets 1994 – 1997 Originals in Clerk Dept
Revenue & Expenditure Reports 1995/1996
Police Facility Specifications 1982
1991 CA Code of Regulations – Title 17
Recycle
Reviewed by:
_________________________________________
Tony Lindsey, Community Development Department Director 52 Town of Paradise
Council Agenda Summary
Date: October 8, 2024
Agenda Item: 2(g)
ORIGINATED BY: Louis Johnson, Supervising Project Manger REVIEWED BY: Jim Goodwin, Town Manager
SUBJECT: Program Supplement Agreement – Roe Road Extension Project Phase 2

LONG TERM
RECOVERY PLAN:

Yes, tier 1, Evacuation Route
COUNCIL ACTION REQUESTED:

1. Approve Program Supplement Agreement No. 00000A678 to the Master Agreement Administering Agency-State Agreement for the Federal-Aid Projects, Agreement No. 03-5425S21 for Roe Road Extension Project Phase 2; and,

2. Adopt Resolution 2024-__ “A Resolution of the Town Council of the Town of Paradise authorizing the Town Manager of the Town of Paradise or their designee to sign the Program Supplement Agreement No. 00000A678 to the Administering Agency-State Agreement for Federal-Aid Projects corresponding to Project No. LTCL-5425(050).”
Background:

On August 2, 2024, the Town of Paradise received Preliminary Engineering Authorization to proceed on a Active Transportation Program in the amount of $1,770,000 for the Roe Rd Phase 2 project. This grant will provide for the Project Authorization and Environmental Document phase of the project. The additional $1,000,000 in funding required to complete this phase has been secured through a CDBG-DR Grant.

Roe Road Phase 2 Project will construct a new three lane 1.00-mile roadway with wide shoulders.

The project will include a Class I multi-use pathway, ADA curb ramps, storm drain infrastructure, and intersections with South Libby Road and Clark Road/State Route 191.

Roe Road Extension - Phase 2 Project is part of a five-phase project to construct a new east-west roadway connection between Skyway and Pentz Road. The proposed project will construct 1.00- miles of roadway between South Libby Road and Clark Road/State Route 191 to improve circulation and connectivity throughout the Town and provide alternative ingress/egress routes for residential neighborhoods. The project will also construct a parallel Class I bikeway for travel by people walking and bicycling and provides first responders a dedicated bi-directional travel lane during emergency events. The project improves access to evacuation routes, completes missing road segments, reduces dead-end streets, reduces fire fuel proximity to the roadway, and is consistent with the Town Long-Term Recovery Plan.
53 Analysis:

To remain eligible for the allocated grant funding, the Town of Paradise is required to execute Program Supplement Agreements to the Administering Agency-State Agreement for Federal-Aid Projects (Agreement No. 03-5425S21). The supplement agreement serves as a contract between the Town of Paradise and California Department of Transportation, binding each to certain responsibilities to process State funded projects. The attached agreements must be approved by the Town to continue receipt of State funds. In addition, the Town is required to adopt resolutions identifying the newly awarded projects and designate an official authorized to execute Program Supplement Agreements.

Financial Impact:

Total estimated cost for Project Authorization and Environmental Document phase of the project is $2,770,000. Federal funds will cover $1,770,000. The remaining $1,000,000 will be covered by CDBG-DR funding
Attachments:

1. Resolution Program Supplement Agreement for Roe Road Extension Project Phase 2

2. Program Supplement Agreement No. 03-5425S21 for Roe Road Extension Project Phase 2 54 TOWN OF PARADISE
RESOLUTION NO. 2024-____

A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF PARADISE

AUTHORIZING THE TOWN MANAGER OF THE TOWN OF PARADISE OR THEIR DESIGNEE TO SIGN THE PROGRAM SUPPLEMENT AGREEMENT NO. 00000A678

TO THE ADMINISTERING AGENCY-STATE AGREEMENT FOR FEDERAL-AID PROJECTS CORRESPONDING TO PROJECT NO. LTCL-5425(050)
WHEREAS, the Town of Paradise has received and will continue to receive federal funder for various transportation project and has entered into an Agency-State Agreement for FederalAid Projects with the California Department of Transportation; and, WHEREAS, the state of California through its Department of Transportation (Caltrans) administers the State Funds and selects projects for funding; and, WHEREAS, the Roe Road Extension Project Phase 2 Project has $1,770,000 of State Funds allocated to the Project; and,
WHEREAS, Caltrans provides Program Supplement Agreements in accordance with Administering Agency-State Agreement for Federal-Aid Projects, Agreement No. 03-5425S21 (Master Agreement), which upon full execution enables the Town of Paradise to request and receive State funds for certain street projects; and,
WHEREAS, Caltrans requires the Town of Paradise to execute the Program Supplement Agreement No. 00000A678 for the Road Extension Project Phase 2 Project, in order to be eligible to receive Federal-Aid for eligible project costs; and, WHEREAS, these funds will require that they are managed in accordance with the Caltrans Local Assistance Procedures Manual; and,
WHEREAS, the Town Council of the Town of Paradise has approved and agreed to this Program Supplement Agreement.

NOW, THEREFORE, BE IT RESOLVED by the Town Council of the Town of Paradise as follows:

Section 1. The Recitals above are true and correct and are incorporated as if fully set forth herein.

Section 2. The Town Manager of the Town of Paradise, or his designee, is hereby authorized to sign said Agreement on behalf of the Town. ///
///
///
///
///
55 Section 3. The Town Clerk shall certify to the passage and adoption of this resolution.

PASSED AND ADOPTED by the Town Council of the Town of Paradise on this 8 th day of
October 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:

Ronald Lassonde, Mayor
ATTEST:

Melanie Elvis, Town Clerk/Elections Official
APPROVED AS TO FORM:

Scott E. Huber, Town Attorney
ATTEST:

I, Melanie Elvis, Town Clerk of the Town of Paradise, California, do hereby certify that this is a true and correct copy of the original Resolution No. 2024-___.

WITNESS MY HAND OR THE SEAL OF THE TOWN OF PARADISE, on this 8th day of October 2024.
_______________________
Melanie Elvis, Town Clerk/Elections Official
Town of Paradise
56 00000A678
FOR STATE FUNDED PROJECTS NO 03-5425S21
0324000288
August 02, 2024
03-BUT-0-PRDS
LTCL-5425(050)
5425
This Program Supplement, effective 6/28/2024, hereby adopts and incorporates into the Administering Agency-State Agreement No. 03-5425S21 for State Funded Projects which was entered into between the ADMINISTERING AGENCY and the STATE with an effective date of 11/22/2023 and is subject to all the terms and conditions thereof. This PROGRAM SUPPLEMENT is executed in accordance with Article I of the aforementioned Master Agreement under authority of Resolution No. approved by the ADMINISTERING AGENCY on (See copy attached).

The ADMINISTERING AGENCY further stipulates that as a condition to the payment by the State of any funds derived from sources noted below encumbered to this project, Administering Agency accepts and will comply with the Special Covenants and remarks set forth on the following pages.

In Town of Paradise, on Roe Road, from South Libby Road to Clark Road/State Route 191 Construction of 1.2 miles of new two-lane roadway & a Class I multi-use path & vegetation management

0.0(MILES)
Estimated Cost State Funds Matching Funds

TOWN OF PARADISE
By ________________________________ By ________________________________ Title _______________________________
Date _______________________________
Attest _______________________________ Date _______________________________ Division of Local Assistance
I hereby certify upon my personal knowledge that budgeted funds are available for this encumbrance:

Accounting Officer _______________________ Date _______________ PROGRAM SUPPLEMENT NO.
to

ADMINISTERING AGENCY-STATE AGREEMENT
Adv. Project ID Date:

Location:

Project Number:

E.A. Number:

Locode:

PROJECT LOCATION:

TYPE OF WORK: LENGTH:

LOCAL OTHER
$2,770,000.00 $0.00 $1,000,000.00
Chief, Office of Project Implementation

STATE OF CALIFORNIA
Department of Transportation
$1,770,000.00
STATE $1,770,000.00
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1. A. This PROJECT will be administered in accordance with the applicable CTC Local Transportation Climate Adaptation Program (LTCAP) guidelines and the SB1 Accountability and Transparency guidelines as adopted or amended, the Local Assistance Procedures Manual (LAPM), the Local Assistance Program Guidelines (LAPG), and this PROGRAM SUPPLEMENT.

B. This PROJECT is programmed to receive State funds from the Senate Bill 198 (SB 198) and/or Federal funds from the Promoting Resilient Operations for Transformative, Efficient, and Cost-saving Transportation (PROTECT) funds for LTCAP. Funding may be provided under one or more components. A component specific fund allocation is required, in addition to other requirements, before reimbursable work can occur for the component(s) identified.

Each allocation will be assigned an effective date and identify the amount of funds allocated per component(s).

This PROGRAM SUPPLEMENT has been prepared to allow reimbursement of eligible PROJECT expenditures for the component(s) allocated. Unless otherwise determined, the effective date of the component specific allocation will constitute the start of reimbursable expenditures.

C. All obligations of STATE funds under the terms of this Agreement are subject to the appropriation of resources by the Legislature and the encumbrance of funds under this Agreement. Funding and reimbursement are available only upon the passage of the State Budget Act containing these STATE funds. ADMINISTERING AGENCY agrees to use eligible matching funds of the type identified in its project application/nomination, for the required dollar for dollar minimum local match to the LTCAP funds.

D. STATE and ADMINISTERING AGENCY agree that any additional funds made available by future allocations will be encumbered on this PROJECT by use of a STATE-approved Allocation Letter and STATE Finance Letter. ADMINISTERING AGENCY agrees that STATE funds available for reimbursement will be limited to the amount allocated by the California Transportation Commission (CTC) and/or the STATE.

E. Upon ADMINISTERING AGENCY request, the CTC and/or STATE may approve supplementary allocations, time extensions. Approved supplementary allocations and time extensions made after the execution of this PROGRAM SUPPLEMENT will be documented and considered subject to the terms and conditions thereof. Documentation will consist of a STATE approved Allocation Letter, Time Extension Letter, and Finance Letter, as appropriate.

F. This PROJECT is subject to the timely use of funds provisions enacted by the LTCAP guidelines and SB1 Accountability and Transparency guidelines, as adopted or amended, and by approved CTC and State procedures as outlined below. Funds Program Supplement 03--542-A678- SERIAL Page 2 of 5
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allocated for the environmental & permits (E&P), plan specifications & estimate (PS&E), and right-of-way components are available for expenditure until the end of the second fiscal year following the year in which the funds were allocated. Funds allocated for the construction component are subject to an award deadline and contract completion deadline.

ADMINISTERING AGENCY agrees to award the contract within 6 months of the construction fund allocation and to complete and accept the construction within 36 months of award.

G. Award information shall be submitted by the ADMINISTERING AGENCY to the District Local Assistance Engineer immediately after project contract award and prior to the submittal of the ADMINISTERING AGENCY'S first invoice for the construction contract. Failure to do so will cause a delay in the State processing of invoices for the construction phase.

H. ADMINISTERING AGENCY agrees, as a minimum, to submit invoices at least once every six months commencing after the funds are encumbered for each phase by the execution of this Project Program Supplement Agreement, or by STATE's approval of an applicable Finance Letter. STATE reserves the right to suspend future authorizations/obligations for Federal aid projects, or encumbrances for State funded projects, as well as to suspend invoice payments for any on-going or future project by ADMINISTERING AGENCY if PROJECT costs have not been invoiced by ADMINISTERING AGENCY for a six-month period. If no costs have been invoiced for a six-month period, ADMINISTERING AGENCY agrees to submit for each phase a written explanation of the absence of PROJECT activity along with target billing date and target billing amount.

I. The ADMINISTERING AGENCY shall invoice STATE for environmental & permits (E&P), plans specifications & estimate (PS&E), and right-of-way costs no later than 180 days after the end of last eligible fiscal year of expenditure. For construction costs, the ADMINISTERING AGENCY has 180 days after project completion or contract acceptance to make the final payment to the contractor, prepare the final Report of Expenditures and final invoice, and submit to STATE for verification and payment.

J. ADMINISTERING AGENCY agrees to submit the final report documents that collectively constitute a "Report of Expenditures" within one hundred eighty (180) days of PROJECT completion. Failure of ADMINISTERING AGENCY to submit a "Final Report of Expenditures" within 180 days of PROJECT completion will result in STATE imposing sanctions upon ADMINISTERING AGENCY in accordance with the current LAPM, LTCAP Guidelines, and SB1 Accountability and Transparency Guidelines.

K. To satisfy the SB1 Accountability and Transparency requirements, ADMINISTERING AGENCY agrees to:

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1) Submit Progress Reports on the activities, expenditures, and progress made towards implementation of the PROJECT, as applicable. Changes to the scope and budget from the CTC approved project application/nomination shall also be identified in these reports. The Progress Reports shall be submitted to the Division of Local Assistance - Office of Innovative Programs via the official reporting tool.
2) Submit a Completion Report after each phase using LTCAP funds is completed and a Final Delivery Report to the CTC, within six months of the PROJECT construction contract being accepted, on the scope of the completed PROJECT, its final costs as compared to the project budget in its project application/nomination, its duration as compared to the project schedule in its application/nomination, and performance outcomes derived from the PROJECT as compared to those described in the project application/nomination.

L. ADMINISTERING AGENCY indirect costs, as defined in 2 CFR, Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirement for Federal Awards, to be claimed must be allocated in accordance with an Indirect Cost Allocation Plan (ICAP), submitted, reviewed, and approved in accordance with Caltrans Internal Audits Office (CIAO) requirements which may be accessed at: https://dot.ca.gov/programs/audits.

ADMINISTERING AGENCY agrees to comply with, and requires all sub-recipients and project sponsors to comply with, 2 CFR, Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirement for Federal Awards, and all applicable Federal and State laws and regulations.

ADMINISTERING AGENCY agrees, and will assure that its contractors and subcontractors will be obligated to agree, that Contract Cost Principles and Procedures, 48 CFR, Federal Acquisition Regulations System, Chapter 1, Part 31, et seq., and all applicable Federal and State laws and regulations, shall be used to determine the allowability of individual PROJECT cost items. Any Fund expenditures for costs for which ADMINISTERING AGENCY has received payment or credit that are determined by subsequent audit to be unallowable under 2 CFR, Part 200, or 48 CFR, Chapter 1, Part 31, are subject to repayment by ADMINISTERING AGENCY to STATE. Should ADMINISTERING AGENCY fail to reimburse Funds due STATE within 30 days of demand, or within such other period as may be agreed in writing between the Parties hereto, STATE is authorized to intercept and withhold future payments due ADMINISTERING AGENCY from STATE or any third-party source, including, but not limited to, the State Treasurer, the State Controller, and the California Transportation Commission.

M. By executing this PROGRAM SUPPLEMENT, ADMINISTERING AGENCY agrees to comply with all reporting requirements in accordance with the Local Transportation Climate Adaptation Program guidelines, as adopted or amended.

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N. The ADMINISTERING AGENCY shall construct the PROJECT in accordance with the scope of work presented in the application and approved by the California Transportation Commission. Any changes to the approved PROJECT scope without the prior expressed approval of the California Transportation Commission are ineligible for reimbursement and may result in the entire PROJECT becoming ineligible for reimbursement.

Program Supplement 03--542-A678- SERIAL Page 5 of 5
61 Town of Paradise
Council Agenda Summary
Date: October 8, 2024
Agenda Item: 2(h)
ORIGINATED BY: Colette Curtis, Recovery and Economic
Development Director
REVIEWED BY: Jim Goodwin, Town Manager
SUBJECT: Implementation Contract for Phase 2 of the Residential Ignition Resistant Retrofit Program – Archeological and historical architecture surveying

LONG TERM
RECOVERY PLAN:

No
COUNCIL ACTION REQUESTED:

1. Approve the Archeological Professional Services Agreement and authorize the Town Manager to execute contract upon full obligation of the Residential Ignition Resistant Retrofit Program approval by FEMA and CalOES.

Background:

The Town of Paradise has worked for many years to secure a Hazard Mitigation Grant in partnership with FEMA and CalOES. This project is the first local program aimed to assist property owners who had a home that survived the devastating Camp Fire. Phase 1 of this project occurred in 2022 and consisted of 109 properties enrolling in the Residential Ignition Resistant Retrofit Program. Assessments of enrolled properties by town staff determined which retrofits were eligible for phase 2 implementation.

Through the process of completing all necessary environmental documents for the hazard mitigation projects it was determined that Archeological and Biological services would be required for enrolled parcels. Through the RFP process, questions raised by interested firms and further consultation with FEMA, it was determined that biological surveys were not required for this specific project and the RFP continued forward as solely an Archeological services contract.

Analysis:

As part of that long process of project approval all monitoring and surveying requirements have been established through the FEMA/CalOES environmental process. This process has resulted in the creation of Biological Surveying and Monitoring Plans, Archeological Surveying and Monitoring Plans, Tribal Surveying and Monitoring Plans and a Project Specific Programmatic Agreement guiding all aspects of the project. The Town is required to follow and establish all protocols as a part of the impending approval of Phase 2 actions.

This Archeological Services contract fulfills all the requirements of our environmental plans.

As a result, we have been working to procure necessary contracts that will be executed upon full approval of the project.

Archeological Surveying and Monitoring Contract:

RFP # IRP2024-BA was posted on August 28, 2024, for Archeological and Biological Surveying Services. 62  Questions were received and an RFP addendum was posted on September 10, 2024  Questions received and further discussions with FEMA resulted in interested firms being notified that only archeological services would be required. This information was provided in the addendum.  The RFP was closed on September 16, 2024, with 6 proposals submitted.  All proposals were scored by our review team consisting of Town of Paradise staff.  After scoring, one proposal was determined to be the clear top proposal received.  Due to the clear top proposal score, our history of working with this firm, and the low cost per parcel, it was determined to award the contract to Mountain Engineering of Coloma, CA without need for an interview.
 The review team chose Mountain Engineering (Coloma, CA) for the award of the contract based on their experience, history of working in Paradise, project plan and understanding of the project needs.

Additionally, Mountain Engineering is currently working with the town on Biological and the Archaeological Surveying for the CAT4 Tree Removal Program. Utilizing them on both projects will increase efficiency, limit the number of program managers involved and reduce costs overall.  The contract will be for the Not-to-Exceed (NTE) amount of $60,659.59.

ARCH Contractor Name Per Parcel Price Total Price Total Score Mountain Engineering $556.51 $60,659.59 927.5
Tremaine and Associates $1,800.00 $196,200.00 757.5
UES $2,250.00 $245,250.00 713
Cogstone $5,537.67 $603,605.50 680
Eocene Environmental $947.04 $103,228.00 673
Soar Environmental $5,499.00 $599,000.00 627.5
AVG $2,218.24 $241,788.62
Financial Impact:

All funding for Phase 2 of the Category 4 Tree Removal Program has been secured with 75% being provided by FEMA/CalOES HMGP Funds. The 25% match will be covered by project participants at a cost to enrollees of $100.00 - $180.00 per parcel depending on the age of the home. All contracts being presented for approval fall within the budget categories already allocated within the grants. The only financial impact to the Town will be the task of managing cash flow between expenditure and reimbursement timing. 63 TOWN OF PARADISE
RESOLUTION NO. 2024-____

A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF PARADISE

APPROVING THE ARCHEOLOGICAL PROFESSIONAL SERVICES AGREEMENT

AND AUTHORIZING EXECUTION OF THE AGREEMENT
WHEREAS, the Town of Paradise has worked for many years to secure a Hazard Mitigation Grant in partnership with FEMA and CalOES; and, WHEREAS, this project is the first local program aimed to assist property owners who had a home that survived the devastating Camp Fire; and,
WHEREAS, Phase 1 of this project occurred in 2022 and consisted of 109 properties enrolling in the Residential Ignition Resistant Retrofit Program; and, WHEREAS, assessments of enrolled properties by town staff determined which retrofits were eligible for phase 2 implementation; and,
WHEREAS, through the process of completing all necessary environmental documents for the hazard mitigation projects, staff determined that Archeological services would be required for enrolled parcels.

WHEREAS, an RFP for Archeological services was issued on August 28, 2024 with an addendum to the RFP issued on September 10, 2024; and,
WHEREAS, Mountain Engineering submitted the lowest responsive bid to the RFP.; and WHEREAS, the Town Council of the Town of Paradise approves and agrees to the Professional Services Agreement for archeological services.

NOW, THEREFORE, BE IT RESOLVED by the Town Council of the Town of Paradise as follows:

Section 1. The Recitals above are true and correct and are incorporated as if fully set forth herein.

Section 2. The Town Manager of the Town of Paradise, or his designee, is hereby authorized to sign the Professional Services Agreement for archeological services on behalf of the Town.

Section 3. The Town Clerk shall certify to the passage and adoption of this resolution.

PASSED AND ADOPTED by the Town Council of the Town of Paradise on this 8 th day of
October 2024, by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
64 Ronald Lassonde, Mayor
ATTEST:

Melanie Elvis, Town Clerk/Elections Official
APPROVED AS TO FORM:

Scott E. Huber, Town Attorney
ATTEST:

I, Melanie Elvis, Town Clerk of the Town of Paradise, California, do hereby certify that this is a true and correct copy of the original Resolution No. 2024-___.

WITNESS MY HAND OR THE SEAL OF THE TOWN OF PARADISE, on this 8th day of October 2024.
_______________________
Melanie Elvis, Town Clerk/Elections Official
Town of Paradise
65 Attachment 1: Professional Service Contract Greater than $25,000 PROFESSIONAL SERVICE CONTRACT GREATER THAN $25,000
This Contract, dated as of the last date executed by the Town of Paradise is between the Town of Paradise, a municipal corporation of the State of California, hereinafter referred to as “TOWN”, and the professionalservice contractorindicated in the variable information table below, hereinafterreferred to as “CONTRACTOR.”

VARIABLE INFORMATION TABLE
Term of This Contract
Term Begins Term Completion Date
On Following Date On Following Date
Town Department
Basis of Price (Do Not √ More Than One of the Following Four Blocks) Price $ Fixed Price Annual Price Monthly Price Hourly Rate Not-to-Exceed Price $ √ if Reasonable Expenses are authorized in addition to Hourly Rate CONTRACTOR Contact Information TOWN Contact Information CONTRACTOR Project Manager
Address Address
City, State & ZIP City, State & ZIP
Telephone Telephone
Email Email
WHEREAS, TOWN, through the TOWN Department identified above, desires to have work described in the Attachment III - Scope of Work performed; and
66 WHEREAS, CONTRACTOR possesses the necessary qualifications to perform the work described herein; NOW THEREFORE BE IT AGREED between the parties to this Contract that this Contract is subject to the provisions contained in the following attachments, which are made a part of this Contract. Should there be any conflicts between this Contract and the attachments that are incorporated herein precedence shall first be given to the provisions of this Contract followed by the attachments, in descending order, as indicated below:

Attachment 1 – Terms and Conditions (including Professional Services Contract) Attachment 2 – Regulatory Compliance Requirements for Expense Contracts Attachment 3 – Certification Regarding Debarment
Attachment 4 - Non-Lobbying Certification
Attachment 5 – Terms and Conditions
Attachment 6 – INSURANCE REQUIREMENTS
Attachment 7 – PROFESSIONAL CREDENTIALS
Attachment 8 – Scope of Work
By signature below, the department head or his or her deputy certifies that no unauthorized alterations have been made to the Attachment I – “Terms and Conditions” and/or the Attachment II – “Standard Insurance Requirements.”
_________________________________ _______________________________________ ________________ Typed or Printed Name Signature Date
This Contract and the above listed Attachments represent the entire undertaking between the parties.

TOWN: CONTRACTOR:

By: By:

Date Date:

REVIEWED FOR CONTRACT POLICY COMPLIANCE REVIEWED AS TO FORM:

By:
67 Attachment 2: Regulatory Compliance Requirements for Expense Contracts Expense contracts; Regulatory Compliance Requirements
All Town contracting shall comply with 2 CFR, Part 200 and legislation for the regulation of labor, safety and environmental protection, emergency preparedness and advisories, and any other codified criteria including but not limited to the following as relevant to this Contract:

1. Remedies:

Contractor Performance and the Breach Thereof
The Town may terminate this Contract and isrelieved of the payment of any consideration to the Contractor should the Contractor fail to perform the covenants herein contained at the time and in the manner herein provided. The Contractor shall be notified in a timely manner of default and provided 30 days in which to remedy the default. If at the end of the 30 days, if remedy is not made or does not satisfy the default, the Town shall notify the Contractor of the breach and thereby the termination of this Contract. In the event of such termination, the Town may proceed with the work in any manner deemed proper by the Town. The cost to the Town shall be deducted from any sum due the Contractor under this agreementand the balance, if any, shall be retained by the Town.

Termination for Cause and Convenience
In the event the Contractor failsto perform in accordance with the terms of this Contract within the time specified, if any, or a reasonable time after placement of this order, the Town Treasurer may by written notice, cancel this Contract and may hold the Contractor liable for any damage caused the Town by reason of failure to perform in accordance with these conditions.

It is agreed by the parties to this Contract that in case all the work called for under the Contract in all parts and requirements is not finished or completed within the time period as set forth in this Contract, damage will be sustained by the Town of Paradise, and that it is and will be difficult or impossible to ascertain and determine that actual damage which the Town will sustain in the event of and by reason of such delay; and it is therefore agreed that the Contractor shall pay to the Town the sum of one hundred dollars ($100) per calendar day for each and every working days’ delay in finishing the work in excess of the time period prescribed; and the Contractor agreesto pay said liquidated damagesasherein provided, and in case the same isnot paid, agrees that the Town may deduct the amount thereof from any money due or that may become due the Contractor under this Contract or any other Contract between the Town and the Contractor.

2. Equal Employment Opportunity. As provided under 41 CFR § 60-1.4(b) Key Definitions
68 Federally Assisted Construction Contract. The regulation at 41 C.F.R. § 60-1.3 defines a "federally assisted construction contract" as any agreement or modification thereof between any applicant and a person for construction work which is paid for in whole or in part with funds obtained from the Government or borrowed on the credit of the
Government pursuant to any Federal program involving a grant, contract, loan, insurance, or guarantee, or undertaken pursuant to any Federal program involving such grant, contract, loan, insurance,
or guarantee, or any application or modification thereof approved by the Government for a grant, contract, loan, insurance, or guarantee under which the applicant itself participates in the construction work.

Construction Work. The regulation at 41 C.F.R. § 60-1.3 defines "construction work" as the construction, rehabilitation, alteration, conversion, extension, demolition or repair of buildings, highways, or other changes or improvements to real property, including facilitiesproviding utility services. The term also includes the supervision, inspection, and other onsite functions incidental to the actual construction.

During the performance of this Contract, the Contractor agrees as follows:
(1) The Contractor will not discriminate against any employee or applicant for employment because of race, color, religion, sex, sexual orientation, gender identity, or national origin. The Contractor will take affirmative action to ensure that applicants are employed, and that employees are treated during employment without regard to their race, color, religion, sex, sexual orientation, gender identity, or national origin. Such action will include, but not be limited to the following: Employment, upgrading, demotion, or transfer; recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship. The Contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided setting forth the provisions of this nondiscrimination clause. (2) The Contractor will, in all solicitations or advertisements for employees placed by or on behalf of the Contractor, state that all qualified applicants will receive considerations for employment without regard to race, color, religion, sex, or national origin.
(3) The contractor will not discharge or in any other manner discriminate against any employee or applicant for employment because such employee or applicant hasinquired about, discussed, or disclosed the compensation of the employee or applicant or another employee or applicant. This provision shall not apply to instances in which an employee who has access to the 69 compensation information of other employees or applicants as a part of such employee's essential job functions discloses the compensation of such other employees or applicants to individuals who do not otherwise have accessto such information, unless such disclosure isin response to a formal complaint or charge, in furtherance of an investigation, proceeding, hearing, or action, including an investigation conducted by the employer, or is consistent with the contractor's legal duty to furnish information.
(4) The Contractor will send to each labor union or representative of workers with which he has a collective bargaining agreement or other contract or understanding, a notice to be provided advising the said labor union or workers' representatives of the Contractor's commitments under this section, and will post copies of the notice in conspicuous places available to employees and applicants for employment.
(5) The Contractor will comply with all provisions of Executive Order 11246 of September 24, 1965, and of the rules, regulations, and relevant orders of the Secretary of Labor.
(6) The Contractor will furnish all information and reports required by Executive Order 11246 of September 24, 1965, and by rules, regulations, and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his books, records, and accounts by the administering agency and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations, and orders.
(7) In the event of the Contractor's noncompliance with the nondiscrimination clauses of this Contract or with any of the said rules, regulations, or orders, this Contract may be canceled, terminated, or suspended in whole or in part and the Contractor may be declared ineligible for further Government contracts or federally assisted construction contracts in accordance with procedures authorized in Executive Order 11246 of September 24, 1965, and such other sanctions as may be imposed and remedies invoked as provided in Executive Order 11246 of September 24, 1965, or by rule, regulation, or order of the Secretary of Labor, or as otherwise provided by law. (8) The Contractor will include the portion of the sentence immediately preceding paragraph (1) and the provisions of paragraphs(1) through (8) in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to section 204 of Executive Order 11246 of September 24, 1965,so that such provisions will be binding upon each subcontractor or vendor. The Contractor will take such action with respect to any subcontract or purchase order as the administering agency may direct as a means of enforcing such provisions, 70 including sanctions for noncompliance: Provided, however, that in the event the Contractor becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such direction by the administering agency the Contractor may request the United States to enter into such litigation to protect the interests of the United States.

The Contractor further agreesthat it will be bound by the above equal opportunity clause with respect to its own employment practices when it participates in federally assisted construction work: Provided, that if the applicant so participating is a State or local government, the above equal opportunity clause is not applicable to any agency, instrumentality or subdivision of such government which does not participate in work on or under the contract.

The Contractor agreesthat it will assist and cooperate actively with the administering agency and the Secretary of Labor in obtaining the compliance of contractors and subcontractors with the equal opportunity clause and the rules, regulations, and relevantorders of the Secretaryof Labor, that it will furnish the administering agency and the Secretary of Labor such information as they may require for the supervision of such compliance, and that it will otherwise assist the administering agency in the discharge of the agency’s primary responsibility for securing compliance.

The Contractor further agrees that it will refrain from entering into any contract or contract modification subject to Executive Order 11246 of September 24, 1965, with a contractor debarred from, or who has not demonstrated eligibility for, Government contracts and federally assisted construction contracts pursuant to the Executive Order and will carry out such sanctions and penalties for violation of the equal opportunity clause as may be imposed upon contractors and subcontractors by the administering agency or the Secretary of Labor pursuant to Part II, Subpart D of the Executive Order. In addition, the applicant agrees that if it fails or refuses to comply with these undertakings, the administering agency may take any or all of the following actions: Cancel, terminate, or suspend in whole or in part the grant (contract, loan, insurance, guarantee); refrain from extending any further assistance to the applicant under the program with respect to which the failure or refund occurred until satisfactory assurance of future compliance has been received from such applicant, and refer the case to the Department of Justice for appropriate legal proceedings.

3. Copeland “Anti-Kickback” Act
The Copeland “Anti-Kickback'' Act (40 U.S.C. 3145) provides that the Town and the Contractor shall be prohibited from inducing, by any means, any person employed in the construction, completion, or repair of public work, to give up any part of the compensation to which he or she is otherwise entitled. The Town must report all suspected or reported violations to the Federal awarding agency.
71 (1) Contractor. The Contractor shall comply with 18 U.S.C. § 874, 40 U.S.C. § 3145, and the requirements of 29 C.F.R. pt. 3 as may be applicable, which are incorporated by reference into this Contract.
(2) Subcontracts. The Contractor or subcontractor shall insert in any subcontracts the clause above and such other clauses as the FEMA may by appropriate instructions require; and, also a clause requiring the subcontractors to include these clausesin any lower tier subcontracts. The prime Contractor shall be responsible for compliance by any subcontractor or lower tier subcontractor with all of these Contract clauses.

4. Compliance with the Contract Work Hours and Safety Standards Act 40 U.S.C. 3701– 3708
(1) Overtime requirements. No contractor or subcontractor contracting for any part of the Contract work which may require or involve the employment of laborers or mechanics shall require or permit any such laborer or mechanic in any workweek in which he or she is employed on such work to work in excess of forty hours in such workweek unless such laborer or mechanic receives
compensation at a rate not less than one and one-half times the basic rate of pay for all hours worked in excess of forty hours in such workweek.
(2) Violation; liability for unpaid wages; liquidated damages. In the event of any violation of the clause set forth in paragraph(1) of this section Contractor and any subcontractor responsible therefor shall be liable for the unpaid wages. In addition, such Contractor and subcontractor shall be liable to the United States (in the case of work done under contract for the District of Columbia or a territory, to such District or to such territory), for liquidated damages. Such liquidated damagesshall be computed with respect to
(3) each individual laborer or mechanic, including watchmen and guards, employed in violation of the clause set forth in paragraph (1) of this section, in the sum of $10 for each calendar day on which such individual was required or permitted to work in excess of the standard workweek of forty hours without payment of the overtime wagesrequired by the clause set forth in paragraph (1) of this section.
(4) Withholding for unpaid wages and liquidated damages. The Town shall upon its own action or upon written request of an authorized representative of the Department of Labor withhold or cause to be 72 withheld, from any moneys payable on account of work performed by the Contractor or subcontractor under any such contract or any other Federal contract with the same prime contractor, or any other federally-assisted contract subject to the Contract Work Hours and Safety Standards Act, which is held by the same prime contractor, such sums as may be determined to be necessary to satisfy any liabilities of such contractor or subcontractor for unpaid wages and liquidated damages as provided in the clause set forth in paragraph (2) of this section.
(5) Safety requirements. The requirements of 40 U.S.C. 3704 are applicable to construction work and provide that no laborer or mechanic must be required to work in surroundings or under working conditions which are unsanitary, hazardous or dangerous.

These requirements do not apply to the purchases of supplies or materials or articles ordinarily available on the open market, or contracts for transportation or transmission of intelligence. (6) Subcontracts. The Contractor or subcontractor shall insert in any subcontracts the clauses set forth in paragraph (1) through (4) of this section and also a clause requiring the subcontractors to include these clauses in any lower tier subcontracts. The prime Contractor shall be responsible for compliance by any
subcontractor or lower tier subcontractor with the clausesset forth in paragraphs (1) through (5) of this section.

5. Rights to Inventions Made Under a Contract or Agreement If the Federal award meets the definition of ‘‘funding agreement’’ under 37 CFR § 401.2 (a) and the Town or the Contractor wishes to enter into a contract with a small business firmor nonprofit organization regarding the substitution of parties, assignment or performance of experimental, developmental, or research work under that ‘‘funding agreement,’’ the Town or the Contractor must comply with the requirements of 37 CFR Part 401, ‘‘Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative Agreements,’’ and any implementing regulations issued by the awarding agency. (1) The regulation at 37 C.F.R. § 401.2(a) currently defines "funding agreement" as any contract, grant, or cooperative agreement entered into between any Federal agency, other than the Tennessee Valley Authority, and any contractor for the performance of experimental, developmental, or research work funded in whole or in part by the Federal government. This term also includes any assignment, substitution of parties, or subcontract of any type entered into for the performance of experimental, developmental, or research work under a funding agreement as defined in the first sentence of this paragraph. 73 6. Clean Air Act and the Federal Water Pollution Control Act The Contractor and the Town agree to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act (42 U.S.C. 7401–7671q) and the Federal Water Pollution Control Act as amended (33 U.S.C. 1251–1387). Violations must be reported to the Federal awarding agency and the Regional Office of the Environmental Protection Agency (EPA).

Clean Air Act
(1) The Contractor agreesto comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act, as amended, 42 U.S.C. § 7401 et seq.
(2) The Contractor agreesto report each violation to Town and understands and agrees that Town will, in tum, report each violation as required to assure notification to the Cal OES, Federal Emergency Management Agency, and the appropriate Environmental Protection Agency Regional Office.
(3) The Contractor agreesto include these requirementsin each subcontract exceeding $100,000 financed in whole or in part with Federal assistance provided by FEMA.

Federal Water Pollution Control Act
(1) The Contractor agrees to comply with all applicable standards, orders or regulationsissued pursuant to the Federal Water Pollution Control Act, as amended, 33 U.S.C. 1251 et seq.
(2) The Contractor agreesto report each violation to Town and understands and agrees that Town will, in tum, report each violation as required to assure notification to the Cal OES, Federal Emergency Management Agency, and the appropriate Environmental Protection Agency Regional Office.
(3) The Contractor agreesto include these requirements in each subcontract exceeding $100,000 financed in whole or in part with Federal assistance provided by FEMA.

7. Energy Efficiency
(1) Contractor will comply with all standards and policies relating to energy efficacy which are contained in the state energy conservation plan issued in compliance with the Energy Policy and Conservation Act (42 U.S.C. 6201).

8. Suspension and Debarment
The Town does not employ vendors or contractors who are listed on the National World Wide Web Site System for Award Management (sam.gov) by Federal General Services Administration 74 (GSA) for the purpose of disseminating information on parties that are debarred from receiving Federal contracts, certain subcontracts, and certain Federal financial and nonfinancial assistance and benefits, pursuant to the provisions of 31 U.S.C. 6101, note, E.O. 12549, E.O. 12689, 48 CFR

9.404, and each agency's codification of the Common Rule for Non-procurement suspension and debarment.
(1) This Contract is a covered transaction for purposes of 2 C.F.R. pt. 180 and 2 C.F.R. pt. 3000. As such, the Contractor is required to verify that none of the Contractor, its principals (defined at
(2) 2 C.F.R. § 180.995), or its affiliates (defined at 2 C.F.R. § 180.905) are excluded (defined at 2 C.F.R.§ 180.940) or disqualified (defined at 2 C.F.R. § 180.935).
(3) The Contractor must comply with 2 C.F.R. pt. 180, subpart C and 2 C.F.R. pt. 3000, subpart C and must include a requirement to comply with these regulations in any lower tier covered transaction it enters into. (4) This certification is a material representation of fact relied upon by the Town. If it is later determined that the Contractor did not comply with 2 C.F.R. pt. 180, subpart C and 2 C.F.R. pt. 3000, subpart C, in addition to remedies available to the Town, the Federal Government may pursue available remedies, including but not limited to suspension and/or debarment.
(5) The bidder or proposer agreesto comply with the requirements of 2 C.F.R. pt. 180, subpart C and 2 C.F.R. pt. 3000, subpart C while this offer is valid and throughout the period of any Contract that may arise from this offer.

The bidder or proposer further agrees to include a provision requiring such compliance in its lower tier covered transactions."

9. Byrd Anti-Lobbying Amendment 31 U.S.C. § 1352 (as amended) Contractors who apply or bid for an award of $100,000 or more shall file the required certification. Each tier certifies to the tier above that it will not and has not used Federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any Federal contract, grant or any other award covered by 31 U.S.C. 1352. Each tier must also disclose any lobbying with non-Federal funds that takes place in connection with obtaining any Federal award. Such disclosures are forwarded from tier to tier up to the recipient. 75 APPENDIX A, 44 C.F.R. PART 18 - CERTIFICATION REGARDING LOBBYING Certification for Contracts, Grants, Loans, and Cooperative Agreements (To be submitted with each bid or offer exceeding $100,000) the Contractor will use the following certification:

The undersigned [Contractor] certifies, to the best of his or her knowledge, that:
(1) No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of an agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement.
(2) If any funds other than Federal appropriated funds have been paid or will be paid to any person forinfluencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions.
(3) The undersigned shall require that the language of this certification be included in the award documents for allsub-awards at alltiers(including subcontracts, sub-grants, and contracts under grants, loans, and cooperative agreements) and that all sub-recipients shall certify and disclose accordingly.

This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification isa prerequisite for making or entering into this transaction imposed by 31, U.S.C. § 1352 (as amended by the Lobbying Disclosure Act of 1995). Any person who failsto file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure.

Contractor certifies or affirmsthe truthfulness and accuracy of each statement of its certification and disclosure, if any. In addition, Contractor understands and agreesthat the provisions of 31 U.S.C. § 3801 et seq., apply to this certification and disclosure, if any.

Signature of Contractor's Authorized Official: _______________________________________ Name and Title of Contractor's Authorized Official:____________________________________ 76 10. Procurement of Recovered Materials
In the performance of this Contract, the Contractor shall make maximum use of products containing recovered materials that are EPA designated items unless the product cannot be acquired-
(i) Competitively within a timeframe providing for compliance with the contract performance schedule;
(ii) Meeting contract performance requirements; or
(iii) At a reasonable price.

Information about this requirement is available at EPA's Comprehensive Procurement Guidelines web site, https://www.epa.gov/smm/comprehensive-procurement-guideline-cpg-program . The list of EPA-designate items is available at https://www.epa.gov/smm/comprehensiveprocurement-guidelines-construction-products ."

11. Additional FEMA Requirements
Changes
Changes to this Contract may only be approved by written amendment to this Contract. No alteration or variation of any term or condition of this agreement shall be valid unless made in writing,signed by the parties hereto in accordance with TOWN Policies and Procedures. No oral understanding or agreement not incorporated as a duly authorized written amendment shall be binding on any of the parties hereto.

Access to Records
The following access to records requirements shall apply to this Contract:
(1) The Contractor agrees to provide Cal OES, the Town, the FEMA Administrator, the Comptroller General of the United States, or any of their authorized representative’s access to any books, documents, papers, and records of the Contractor which are directly pertinent to this Contract for the purposes of making audits, examinations, excerpts, and transcriptions. (2) The Contractor agreesto permit any of the foregoing parties to reproduce by any means whatsoever or to copy excerpts and transcriptions as reasonably needed. (3) The Contractor agrees to provide the FEMA Administrator or his authorized representatives’ access to construction or other work sites pertaining to the work being completed under the Contract.

12. Department of Homeland Security (DHS) Seal, Logo and Flags The Contractor shall not use the DHS seal(s), logos, crests, or reproductions of flags or likenesses of DHS agency officials without specific FEMA pre approval. 77 13. Compliance with Federal Law, Regulations, and Executive Orders Thisis an acknowledgement that FEMA financial assistance will be used to fund the Contractonly.

The Contractor will comply with all applicable federal law, regulations, executive orders, FEMA policies, procedures, and directives.

14. No Obligation by Federal Government.

The Federal Government is not a party to this Contract and is not subject to any obligations or liabilities to the non-Federal entity, Contractor, or any other party pertaining to any matter resulting from the Contract.

15. Program Fraud and False or Fraudulent Statements or Related Acts The Contractor acknowledges that 31 U.S.C. Chap. 38 (Administrative Remediesfor False Claims and Statements) applies to the Contractor's actions pertaining to this Contract.

By execution of this CONTRACT including this Attachment 1 the Contractor certifies that compliance with all the stated regulatory requirements as stipulated and where action is appropriate and required as a means of compliance, shall endeavor in good faith to conform to regulations and in no way are they connected to any federal, state or local debarment proceedings.
78 1.1. Attachment 3: Debarment Certification
Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion Lower Tier Covered Transactions
This certification isrequired by the regulationsimplementing Executive Orders 12549 and 12689, 2 C.F.R part 180, Debarment and Suspension, and 2 C.F.R. § 200.213. Copies of the regulations may be obtained by contacting the person to which this proposal is submitted. (BEFORE COMPLETING CERTIFICATION,

READ INSTRUCTIONS ON PAGES TWO AND THREE BELOW)

1. The prospective lower tier participant certifies, by submission of this proposal, that neither it nor its principals are presently debarred, suspended, proposed for disbarment, declared ineligible, or voluntarily excluded from participation in this transaction by any Federal department or agency.

2. Where the prospective lower tier participantis unable to certify to any of the statements in this certification, such prospective participant shall attach an explanation to this proposal.

Firm Name: ______________________________________
Name and Title of Authorized Representative: ______________________________________ Signature of Authorized Representative: ______________________________________ Date: ______________________________
79 1.2. Attachment 4: Non-Lobbying Certification

INSTRUCTIONS FOR CERTIFICATION

1. By signing and submitting this proposal, the prospective lower tier participant is providing the certification set out on page one.

2. The certification in this clause is a material representation of fact upon which reliance was placed when this transaction was entered into. If it is later determined that the prospective lower tier participant knowingly rendered an erroneous certification, in addition to other remedies available to the Federal Government, the department or agency with which this transaction originated may pursue available remedies, including suspension and/or debarment.

3. The prospective lower tier participant shall provide immediate written notice to the person to which this proposal is submitted if at any time the prospective lower tier participant learns that its certification was erroneous when submitted or has become erroneous by reason of changed circumstances.

4. The terms "covered transaction," "debarred," "suspended," "ineligible," "lower tier covered transaction," "participant," "person," "primary covered transaction," "principal," "proposal," and "voluntarily excluded," as used in this clause, have the meanings set out in the Definitions and Coverage sections of the rules implementing Executive Order 12549, at 2 C.F.R. Parts 180 and 417. You may contactthe person to which this proposal is submitted for assistance in obtaining a copy of those regulations.

5. The prospective lower tier participant agrees by submitting this proposal that, should the proposed covered transaction be entered into, it shall not knowingly enter into any lower tier covered transaction with a person who is debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction, unless authorized by the department or agency with which this transaction originated.

6. The prospective lower tier participant further agrees by submitting this proposal that it will include the clause titled "Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion Lower Tier Covered Transactions," without modification, in all lower tier covered transactions and in all solicitations for lower tier covered transactions.

7. A participant in a covered transaction may rely upon a certification of a prospective participant in a lower tier covered transaction that is not debarred, suspended, ineligible, or voluntarily excluded from the covered transaction, unless it knows that the certification is erroneous. A participant may decide the method and frequency by which it determines the eligibility of its principals. Each participant may, but is not required to, check the System for Award Management (SAM) database.

8. Nothing contained in the foregoing shall be construed to require establishment of a system of records in order to render in good faith the certification required by this clause. The knowledge and information of a participant is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings.

9. Except for transactions authorized under paragraph 5 of these instructions, if a participant in a covered transaction knowingly enters into a lower tier covered transaction with a person who is suspended, debarred, ineligible, or voluntarily excluded from participation in this transaction, in addition to other remedies available to the Federal Government, the department or agency with which this transaction originated may pursue available remedies, including suspension and/or debarment.
80 CERTIFICATION REGARDING LOBBYING
The undersigned [insert name] certifies, to the best of his or her knowledge, that:

No Federalappropriated funds have been paid or will be paid, by or on behalf ofthe undersigned,to any person for influencing or attempting to influence an officer or employee of an agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement.

If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officeror employee of Congress, oran employee of aMemberof Congressin connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form- LLL, “Disclosure Form to Report Lobbying,” in accordance with its instructions.

The undersigned shallrequire that the language of this certification be included in the award documents for all sub-awards at all tiers (including subcontracts, sub-grants, and contracts under grants, loans, and cooperative agreements) and that allsub-recipients shall certifyand disclose accordingly.

This certification is a materialrepresentation of fact upon which reliance was placed when thistransaction wasmade orentered into. Submission ofthis certification is a prerequisite formaking orentering into this transaction imposed by 31,U.S.C. § 1352 (as amended by theLobbyingDisclosure Act of 1995). Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure.

Contractor, , certifies or affirmsthe truthfulness and accuracyof each statement of its certification and disclosure, if any. In addition, Contractor understands and agrees that the provisions of 31U.S.C. § 3801 et seq., apply to this certification and disclosure, ifany.

Signature of Contractor’s Authorized Official: ___________________________________________ Name and Title of contractor’s AuthorizedOfficial: __________________________________________ Date:_______________________________
81 ATTACHMENT 5

TERMS AND CONDITIONS

1. Scope of Work. The work to be undertaken is identified in the attached “Attachment III-Scope of Work” which is made a part of this Contract.

2. Reimbursement. The work shall be performed for the Fixed price, Annual price, Monthly price or Hourly rate as indicated above in the variable information table, but shall not exceed the Not-to-Exceed Price if included in the variable information table. Reasonable expenses if authorized and specified in addition to the Hourly Rate if both the Hourly Rate block and the block authorizing Reasonable Expenses are checked in the variable information table. Payment shall be made after the Project Manager or designee reviews and approves the work and after submittal of an invoice by the CONTRACTOR. Expenses and or materials if stipulated shall be paid only upon prior approval and with receipts and only after reviewand authorization by the ProjectManager.

3. Town Project Manager. The TOWN ProjectManager or designee for this undertaking who will receive payment invoices and answer questions related to the coordination ofthis undertaking is identified above in the variable information table.

4. Independent Contractor. CONTRACTOR is an independent contractor, working under his/her own supervision and direction and is not a representative or employee of TOWN nor is the CONTRACTOR a partner or in any way directly affiliated with the TOWN. CONTRACTOR agrees to file tax returns, report compensation and pay all applicable taxes on amounts paid pursuant to this Contract.

5. Ownership. The TOWN retains the exclusive right of ownership to the work, products, inventions and confidential information produced for the TOWN by the CONTRACTOR, and the CONTRACTOR shall not disclose any information, whether developed by the CONTRACTOR or given to the CONTRACTOR by the TOWN. The parties agree that the TOWN will own the work, products, inventions or information produced by the CONTRACTOR pursuant to this Contract.

6. Confidentiality. The CONTRACTOR shall comply as follows and in accordance with the required performance of this contract:
a. All applications, records, data or any information concerning any individual made or kept by any public office, officer or department obtained by the CONTRACTOR in the performance of duties or as a consequence of performing said duties, shall be the confidential property of the TOWN and shall not be communicated, transmitted, reproduced or in any other way conveyed to any person not directly a party to this contract, its terms and conditions in accordance with all applicable laws and regulations including but not limited to the Health Insurance Portability and Accountability Actof 1996 (HIPAA) and any implications thereof including destruction of records or data as appropriate under compliance criteria.
b. No person will publish or disclose or permit or cause to be published or disclosed any data, facts, figures, list of persons or any other form of information obtained by the CONTRACTOR in the performance of duties or as a consequence of performing said duties. No person shall publish, disclose, or use or permit, or cause to be published, disclosed or used any confidential information pertaining to any individual or group of individuals obtained by the CONTRACTOR in the performance of duties or as 82 a consequence of performing said duties.
c. CONTRACTOR agreesto inform all employees, agents, associates and partners on the above provisions and that any person knowingly and intentionally violating the provisions of this clause is guilty of a misdemeanor. CONTRACTOR shall bear equal responsibility for any violation of the provisions of this paragraph.
d. CONTRACTOR agrees and understands that if confidential information concerning any individual made or kept by any public office, officer or department is obtained by the CONTRACTOR and included on any memory device that may be housed in a computer, or other device (such as a “PDA”) may become subject to Federal HIPAA requirements and/or any state or local regulations that apply which could result in surrender of the hard drive, sanitization or the destruction thereof in accordance with Department of Defense (DoD) 5220.22-M standard and/or industry standards current to time of the release of the equipment which ever represents the greatest level of (permanent) information destruction. At the very least, at the end of this contract, CONTRACTOR may be required to stipulate to the fact that no such files exist.

7. Termination. This Contract may be terminated by either the TOWN or CONTRACTOR by a thirty (30)- day written notice. Authorized costs incurred by the CONTRACTOR will be reimbursed up to the date of termination.

Notwithstanding anything stated to the contrary herein, this Contract shall expire on the Completion Date indicated in the above Variable Information Table unless the Completion Date is modified by written amendment to this Contract.

8. Indemnification. CONTRACTOR agrees to accept responsibility for loss or damage to any person or entity, and to defend, indemnify, hold harmless and release the TOWN, its officers, agents and employeesfrom and against any and all actions, claims, damages, disabilities or expenses that may be asserted by any person or entity, including CONTRACTOR, to the extent arising out of or in connection with the negligent acts or omissions or willful misconduct in the performance by CONTRACTOR hereunder, whether or not there is concurrent negligence on the part of the TOWN, but excluding liability due to the active negligence or willful misconduct of the TOWN. This indemnification obligation is not limited in any way by any limitation on the amount or type of damages or compensation payable to or for CONTRACTOR or its agents under worker’s compensation acts, disability benefit acts, or other employee benefits acts. CONTRACTOR shall be liable to TOWN for any loss of or damage to TOWN property arising out of or in connection with CONTRACTOR’s negligence or willful misconduct.

9. Right to Monitor/Audit and Associated Liability. It being understood by the parties hereto that the TOWN’s funding source herein may be TOWN, State and/or Federal appropriation, and therefore CONTRACTOR is responsible for administering the program as described herein, CONTRACTOR agrees to accept responsibility for receiving,replying to and/or complying with an any audit of this projectwhich may be deemed appropriate or required in compliance with TOWN, State or Federal mandates and to reimburse the TOWN for any liability upon the TOWN for any discrepancy resultant from said audit exceptions or for any liability that result from a breach of contract, misrepresentation or inaccuracy.

10. Record Retention and Availability. CONTRACTOR shall maintain and preserve all records related to this agreement in its possession (or will assure the maintenance of such recordsin the possession of any third party performing work related to this agreement) for a minimum period of three (3) years from the effective date of this agreement, or until all State and/or Federal audits are complete, whichever is later. Upon request, CONTRACTOR shall make available copies of these recordsto TOWN, State or Federal Governments’ personnel, including but not limited to the State Auditor General. In the event that this contract is related to a FEMA grant record retention shall be three years from the date of the Grant Close-out letter. 83 11. Insurance Requirements. CONTRACTOR shall procure and maintain for the duration of this Contract, insurance against claims for injuries to persons or damages to property which may arise from, or be in connection with the performance of the Work hereunder by CONTRACTOR, CONTRACTOR’s agents, representatives, employees and subcontractors. At the very least, CONTRACTOR shall maintain the insurance coverage, limits of coverage, and other insurance requirements as described in Attachment II to this Contract.

12. Changes to the Contract. Changes to this Contract may only be approved by written amendment to this Contract. No alteration or variation of any term or condition of this agreement shall be valid unless made in writing, signed by the parties hereto in accordance with TOWN Policies and Procedures. No oral understanding or agreement not incorporated as a duly authorized written amendment shall be binding on any of the parties hereto.

13. Representations and Warranties. CONTRACTOR by execution represents the skill, knowledge, proficiency and expertise to perform as herein stipulated and warrants that the credentials presented herein Attachment VI are authentic, current and duly granted.

14. Contractor’s Standard of Care. TOWN has relied upon the professional ability, experience, and credentials presented and represented by the CONTRACTOR as a material inducement to enter into this Contract.

CONTRACTOR hereby warrants that all of CONTRACTOR’s work will be performed in accordance with generally accepted and applicable professional practices and standards as well as the requirements of applicable Federal, State and local laws, it being understood that acceptance of CONTRACTOR’s work by TOWN shall not operate as a waiver or release. Where applicable, the CONTRACTOR shall maintain the appropriate certification(s), license(s) or accreditation(s) through the life of this contract, as submitted and stipulated herein Attachment VI and make them available for audit upon request by the TOWN.

15. Termination for Exceeding Maximum Level of Expenditures. Contracts exceeding the monetary limits delegated to the Purchasing Agent, or authorized deputies, are not valid unless duly executed by the Town Manager. If this Contract was executed for the TOWN of Paradise by the Purchasing Agent, or authorized deputy, this Contract shall automatically terminate on the date that the provision of services or personal property or incurring of expenses,the cumulative total of which, exceedsthe amount prescribed by Government Code Section 25502.5 for personalservices contracts or the amount prescribed by Public Contract Code Section 22032 (b) for public works contracts.

16. Termination for Exceeding Maximum Term. Contracts exceeding the five-year term delegated to the Purchasing Agent, or authorized deputies, are not valid unless duly executed by the Chair of the Board of Supervisors. If this Contract was executed for the TOWN of Paradise by the Purchasing Agent, or authorized deputy, this Contract shall automatically terminate on the date that the term exceedsfive years. Amendments to this Contract, or new Contracts for essentially the same purpose, shall not be valid beyond the five-year limitation unless duly executed by the Chair of the Board of Supervisors.

17. Compliance with Laws. CONTRACTOR shall comply with all Federal, State and local laws, rules and regulations including, without limitation, and not limited to any nondiscrimination laws. Specifically, the CONTRACTOR by executing this agreement stipulates and certifiesthat as an individual or as an entity, complies in good faith as well as all actions the following regulatory requirements at least but not limited to:
a. Non-discrimination with regard to minority, women, and disabled veteran-owned business enterprises; hiring practices on the basis of race, color or national origin, gender, handicaps or age. b. Environmental protection legislation and in particular regarding clean air and water, endangered species, handling or toxic substances and the public right to know. 84 c. Drug Free workplace, Comprehensive Alcohol Abuse and Alcoholism Prevention, Treatment and Rehabilitation Act and Public Health Service Act
d. National Labor Relations Board Public Contract Code 10296. e. Domestic Partners – Public Contract Code 10295.3.
f. ADA 1990 42 USC 12101 et seq.

18. Applicable Law and Forum. This Contract shall be construed and interpreted according to California law and any action to enforce the terms ofthis Contract for the breach thereofshall be brought and tried in the Superior Court of the County of Butte.

19. Contractor Performance and the Breach Thereof. The TOWN may terminate this agreement and is relieved of the payment of any consideration to CONTRACTOR should CONTRACTOR fail to perform the covenants herein contained at the time and in the manner herein provided. CONTRACTOR shall be notified in a timely manner of default and provided 30 days in which to remedy the default. If at the end ofthe 30 days, if remedy is not made or does not satisfy the default, the TOWN shall notify the CONTRACTOR of the breach and thereby the termination of this contract. In the event of such termination, the TOWN may proceed with the work in any manner deemed proper by the TOWN. The cost to the TOWN shall be deducted from any sum due the CONTRACTOR under this agreement and the balance, if any, shall be retained by the TOWN.

20. Contradictions in Terms and Conditions. In the event of any contradictions in the terms and/or conditions of this Contract, these Attachment I TERMS AND CONDITIONS shall prevail.

21. No Delegation Or Assignment. Provider shall not delegate, transfer or assign its duties or rights under this Agreement, either in whole or in part, directly or indirectly, by acquisition, asset sale, merger, change of control, operation of law or otherwise, without the prior written consent of TOWN and any prohibited delegation or assignment shall render the contract in breach. Upon consent to any delegation, transfer or assignment, the parties will enter into an amendment to reflectthe transfer and successor to CONTRACTOR. TOWN will not be obligated to make payment under the Agreement until such time that the amendment is entered into.

22. Conflict of Interest. CONTRACTOR and CONTRACTOR’S employees shall have no interest, direct or indirect, which will conflict in any manner or degree with the performance of services required under this contract. a. This contract is entered into by TOWN upon the expressrepresentation that CONTRACTOR has no other contracts in effect with TOWN except as described on Exhibit “A” hereto attached. Exhibit “A” is hereby made part of this contract by it reference herewith and hereby subjugated to these General Terms and Conditions (Attachment I).
b. CONTRACTOR understands and will adhere to the TOWN’s policy that no contracts shall knowingly be issued to any current TOWN employee or his/her immediate family or to any former TOWN employee or his/her immediate family until two years after separation from employment, without notifying the Director of the Department of Human Resources in writing:

Director of Human Resources
5555 Skyway
Paradise, CA 95969
85 c. CONTRACTOR stipulates by execution of this contract that they have no business or other interest that provides any conflict with the interest of the Town of Paradise in the matters of this agreement.

CONTRACTOR recognizesthat it is a breach of ethics to not disclose any interest that may be a conflict to the TOWN for the advice of Town Attorney on the matter prior to executing this contract.

23. Canon of Ethics. CONTRACTOR by execution of this contract agrees to act in the best interest of and on behalf of the Town of Paradise and its constituents in all matters, honest, fair, prudent and diligent as dictated by reasonable standards of conduct for their profession.

24. Severability. The terms and conditions of this contract shall remain in force and effect as a whole separate from and even if any part hereof the agreement is deemed to be invalidated.

25. No Implied Waiver. In the event that The TOWN at any point ignores or allows the CONTRACTOR to break an obligation under the agreement, it does not mean that TOWN waives its future rights to require the CONTRACTOR to fulfill those obligations.

26. Entirety of Agreement. This contract inclusive of all Attachments herein in stipulated and made part of the contract constitutes the entire agreement between these parties. 86 EXHIBIT “A”
Acknowledgement of OTHER TOWN Contracts
List any and all contractsthat you have with TOWN agencies. If none, you must stipulate “none.” This cannot be left blank or omitted from the contract.
87 ATTACHMENT 6

INSURANCE REQUIREMENTS FOR PROFESSIONAL SERVICES
*Please provide a copy of Attachment II to your insurance agent.

Contractor shall procure and maintain for the duration of this contract, insurance against claims for injuries to persons or damages to property that may arise from or be in connection with the performance of the work hereunder by Contractor, Contractor’s agents, representatives, employees and subcontractors. Before the commencement of work Contractor shall submit Certificates of Insurance and Endorsements evidencing that Contractor has obtained the following forms of coverage:

A. MINIMUM SCOPE AND LIMITS OF INSURANCE - Coverage shall be at least as broad as:
1) Commercial General Liability (CGL): Insurance Services Office (ISO) Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $2,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separately to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit. 2) Automobile Liability: ISO’s Commercial Automobile Liability coverage form CA 00 01.

1. Commercial Automobile Liability: Covering any auto (Code 1) for corporate/business owned vehicles, or if Contractor has no owned autos, covering hired (Code 8) and non-owned autos (Code 9), with limits no less than $1,000,000 per accident for bodily injury and property damage.

2. Personal Lines automobile insurance shall apply if vehicles are individually owned, with limits no less than $100,000 per person, $300,000 each accident, $50,000 property damage. 3) Workers’ Compensation Insurance: As required by the State of California with Statutory Limits and Employer’s Liability Insurance with limits of no less than $1,000,000 per accident for bodily injury and disease. (Not required if Contractor provides written verification he or she has no employees.) 4) Professional Liability (Errors and Omissions): Insurance appropriate to Contractor’s profession, with limits no less than $1,000,000 per occurrence or claim, $2,000,000 aggregate.

If Contractor maintains broader coverage and/or higher limits than the minimums shown above, the Town requires and shall be entitled to the broader coverage and/or higher limits maintained by Contractor. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the Town.

B. OTHER INSURANCE PROVISIONS - The insurance policies are to contain, or be endorsed to contain, the following provisions:
88 1) The Town of Paradise, its officers, officials, employees and volunteers are to be covered as additional insureds on the CGL and Commercial Auto policies with respectto liability arising out of work or operations performed by or at the direction of the Contractor, including materials, parts or equipment furnished in connection with such work or operations. General Liability coverage can be provided in the form of an endorsement to Contractor’s insurance (at least as broad as ISO Form CG 20 10 11 85 or both CG 20 10, CG 20 26, CG 20 33, or CG 20 38 and CG 20 37 forms if later revisions used). 2) For any claims related to this contract, Contractors insurance coverage shall be primary insurance coverage at least as broad as ISO Form CG 20 01 04 13 as respects the Town, its officers, officials, employees and volunteers. Any insurance or self-insurance maintained by the Town, its officers, officials, employees and volunteers shall be excess of Contractors insurance and shall not contribute with it. 3) Each insurance policy required above shall state that coverage shall not be canceled, except with notice to the Town.

C. WAIVER OF SUBROGATION: Contractor hereby grants to Town a waiver of any right to subrogation which any insurer of said Contractor may acquire against the Town by virtue of the payment of any loss under such insurance. Contractor agrees to obtain any endorsementthat may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the Town has received a waiver of subrogation endorsement from the insurer.

The Workers’Compensation policy shall be endorsed with a waiver of subrogation in favor of the Town for all work performed by the Contractor, its employees, agents and subcontractors.

D. SELF-INSURED RETENTIONS: Self-insured retentions must be declared to and approved by the Town. The Town may require Contractor to purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration and defense expenses within the retention. The policy language shall provide, or be endorsed to provide, that the self-insured retention may be satisfied by either the named insured or Town.

E. ACCEPTABILITY OF INSURERS: Insurance is to be placed with insurers authorized to conduct business in the state with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the Town.

F. VERIFICATION OF COVERAGE: Contractor shall furnish Town with original certificates of insurance including all required amendatory endorsements (or copies of the applicable policy language affecting coverage required by this clause) and a copy of the Declarations and Endorsement Page of the CGL policy listing all policy endorsements before work begins. However, failure to obtain the required documents prior to the work beginning shall not waive the Contractor’s obligation to provide them. The Town reservesthe right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.
89 G. SPECIAL RISKS OR CIRCUMSTANCES: Town reserves the right to modify these requirements including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.

H. SUBCONTRACTORS: Contractor shall include all subcontractors as insured under its policies or require all subcontractors to be insured under their own policies. If subcontractors are insured under their own policies, they shall be subject to all the requirements stated herein, including providing the Town certificates of insurance and endorsements before beginning work under this contract.

I. CLAIMS MADE POLICIES: If any of the required policies provide coverage on a claims-made basis:
1) The Retroactive Date must be shown, and must be before the date of the contract or the beginning of contract work.
2) Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work.
3) If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a Retroactive Date prior to the contract effective date, the Contractor must purchase “extended reporting” coverage fora minimum of five(5) years aftercompletionof contract work. 4) A copy of the claims reporting requirements must be submitted to the Town for review. 90 ATTACHMENT 7

PROFESSIONAL CREDENTIALS
The CONTRACTOR herein presents the required and essential credentials for performance of this contract and warrants them to be authentic, current and duly granted.

List required and essential credentials which will be available in the contract file and may or may not be hereto attached and which may be but are not limited to:

Professional Degrees
Licenses
Certifications
Bonds
91 ATTACHMENT 8
Scope of Work
Unless indicated otherwise herein, the CONTRACTOR shall furnish all labor, materials, transportation, supervision and management and pay all taxes required to complete the project described below:

At (fill in the appropriate point) prior to the end of the contract term an assessment may be made of the value of the professional services herein delineated and thus far received. At the conclusion of the assessment, it may be determined that the CONTRACTOR owes certain fulfillment and/or deliverables for which the remaining payments may be withheld up to 20% of the contract. The assessment may determine that there is additional work to be amended to this scope of work. In the event of an amendment, the CONTRACTOR shall be notified and the amendment submitted and duly authorized in accordance with TOWN Policy and Procedure. Otherwise, pertaining to this contract’s scope of work it is the CONTRACTOR’s responsibility to remain within the term and amount of the contract. If the terms and/or conditions of this contract including the amounts, rates, time and/or duration are exceeded in any way without fully executed amendment, the CONTRACTOR may not be reimbursed.

NOTE: If detail rate schedules or other documents are appropriate to the Scope of Work and separate from this Attachment III they must be stipulated in this Attachment by specific reference and thereby made part of this contract, labeled accordingly (Attachment III, ExhibitA,(or whatever the appropriate specific reference), etc.). They must also be included in the pagination of this contract. Consequently, it is necessary to scan them into the body of the contract where pagination control can make them inclusive.

Duties and obligations of the CONTRACTOR:

Since this is a professional service contract, this is the appropriate point in the contract to stipulate any subjective expectation that may be implied by their profession but once explicated become performance elements of the contract.

State all specific elements of the contract for which specific payment due as objectively as possible. Whether contract is based on hourly, daily, weekly, monthly rates; flat rate for deliverables; project milestone incremental payments; charges for use of particular (i.e., therapeutic) equipment or implements; any reports, criteria and schedule
If expenses are allowed, specify what is reasonable and/or reimbursable AND always state that expenses(unless per diem) must be preapproved and accompanied by receipts. There should be a cap to the expenses.

If “materials” are required, specify what they will (or might be) and some approximation not to exceed amount.

Unless the materials are provisions of the “house” of the contractor, they will require receiptsto be presented with invoice stipulating their charge.

State any circumstances under which no payment will be made.

State if payments are contingent on specific delineation on the invoice(s) such as coding or regulatory designated description.

Recommend that rates be laid out in table format if possible for clarity and ease of processing payments.

State specifically that payments stipulated are the Contractor’s only compensation.

Duties and obligations of the TOWN:
92 TOWN’s obligations may be:
o Town reserves the right to award more than one contract, if desired. o Make any relevant notification promptly
o Provide data promptly
o Provide schedules or set up meetings or respond to presentation of information promptly o Pay upon provision as herein stipulated and after presentation of appropriate receipts and/or invoice. o If possible avoid stipulating payment within specific period. If absolutely necessary state no less than 30 days and 60 days is not atypical.
o Town does not pay interest or penalties.
93 ARCHAEOLOGICAL & CULTURAL SURVEYS AND REPORTING
August 28, 2024

Page 49 of 50 ends

EXHIBIT A

PROPOSAL SUMMARY FORM
Archaeological, Cultural and Biological Surveys and Reporting for The Town of Paradise Residential Ignition Resistant Retrofit Project
NAME OF BIDDER:_________________________________________________________________ BUSINESS ADDRESS: _______________________________________________________________ E-Mail: _____________________________________________________________________ Fill out the following section as follows:

The scope of work is described within this proposal and includes archaeological, cultural and biological surveys methods and reporting requirements. Provide one price per parcel for the project listed. The total number of parcels of the project area is not to exceed 109 parcels total.

A list of enrolled parcels and assessed retrofits is included as Supplemental Document #5 – Enrolled Property Database. The total number of parcels will not exceed those listed in the database, but it is likely some will ultimately not move forward into Phase 2 and disenroll from the program. The scope of work is described within this proposal. Bid prices are based on a per parcel basis. Total project would cost will be a “Not-to Exceed” amount. Actual total project cost will be determined by the number of parcels that enroll in Phase 2 and require the services of this contract as selected contractor will invoice the Town based on actual parcels participating in phase 2.

Table 1 – Summary of Project and Proposed Cost per Parcel.

Project Services Required Parcels
Total Cost per
Parcel
Total Project Cost
Town Of Paradise
Retrofit Project
Archaeological and
Biological Independent
Contractor 109
___________________________ __________________________________ Name Signature
NOTE: This form must be included in the proposal and completed in its entirety in order for the Proposal to be evaluated.

NOTICES
All proposing Contractor responding to this RFP should note the following:

Mountain G Enterprises Inc.
dba Mountain Engineering
950 Iron Point Road, Suite 250, Folsom, CA 95630
[email protected]
556.51 60,659.59
Jesse Van Horn, VP of Operations
94

Page 18 of 93 ends

Reference Agency Reference Contact Information
Kinder Morgan Vegetation
Management Surveys (CRM)
2023-2024
Ryan Kautz, CEM
RK Contractors, Inc
(530)412-3322
[email protected]
US Forest Service, Tahoe
National Forest – Kinder
Morgan Right-of-Way
Archaeological Surveys
Carrie Smith, Heritage Program Manager / Tribal Liaison Tahoe National Forest
631 Coyote Street
Nevada City, CA 95959
(530)414-1454
[email protected]
US Forest Service, Umpqua
National Forest – PacifiCorp –
Archie Creek Fire Response
Project (Archaeological
Surveys & Monitoring –
Biological Surveys and Water
Quality Monitoring)
Christopher Kelly, Heritage Program Manager / Forest Archaeologist Umpqua National Forest
Roseburg Interagency Office
777 NW Garden Valley Blvd.

Roseburg, OR 97471
(541)643-6130
[email protected]
Understanding and Approach
Methodology and Workplan:

TASK 1: Perform Project Management
Project Management work will be performed throughout the life of a project. The services provided include the initiation and planning of the project, and the execution, control, and close out of the project. (Tasks will be performed by Mark Miller, Christine Kovacevich, and other staff as needed)
• Meetings with Town of Paradise Staff
• Status Reports on Project Cost Scope and Schedule
• Monthly Progress Reports.
• Closeout
o Close Out Meeting with the Town of Paradis Project Manager and GIS Coordinator
o Ensure that all expectations, deliverables, and tasks are completed to the Town of Paradise’s satisfaction.
o Provide Final Administrative Record
o Provide Final Invoice
Deliverables:
• Monthly Progress Reports, Invoicing, Administrative Record TASK 2: Project Scoping
Mountain Engineering will complete a detailed desktop review of the project area and 95

Page 19 of 93 ends

previously survey records to establish “Survey Needs” polygons within the project area (enrolled parcels). The “Survey Needs” polygons will include enrolled parcels with the highest probability to contain sensitive resources (including structures over 45 years of age) which may be impacted by the proposed project activities. Priority will be given to areas not previously surveyed and revisiting previously recorded sites. (Mountain Engineering has completed a records search of the Town of Paradise. The Town of Paradise will not be billed for this as a duplicate effort.)
TASK 3: Reconnaissance Survey and Reporting
Mountain Engineering will conduct a Class III cultural resource inventory within “Survey Needs” polygons for enrolled parcels. Mountain Engineering will record all new prehistoric and historical resources located within the“Survey Needs” polygons within the project area.

The desktop review will determine which structures over 45 years of age which require a full architectural review and which previously recorded sites will require site visits and potential updates to existing site records.

The survey will be conducted in compliance with State and Federal requirements (including the Programmatic Agreement), which requires a heritage resource inventory prior to any undertaking that may affect heritage resources pursuant to Section 106 of the National Historic Preservation Act of 1966 as amended (16 U.S.C. 470) and procedures of the Advisory Council of Historic Preservation(36 CFR 800).

The National Historic Preservation Act (NHPA) established the federal government’s policy on historic preservation and the programs, including the National Register of Historic Places (NRHP), through which the policy is implemented. Section 106 (16 USC 470f) of the NHPA requires federal agencies, prior to implementing an “undertaking” (e.g., issuing a federal permit or allocating federal funds), to consider the effects of the undertaking on historic properties and to afford the Advisory Council on Historic Preservation (ACHP) a reasonable opportunity to comment on any undertaking that could adversely affect historical properties eligible for listing on the NRHP. As defined in 36 CFR 800.5(a)(1) “Adverse effects occur when an undertaking may directly or indirectly alter characteristics of a historic property that qualify it for inclusion in the National Register”.

Under the NHPA, the quality of significance in cultural resources is present in districts, sites, buildings, structures, and objects that possess integrity of location, design, setting, materials, workmanship, feeling, and association, and:

A. That are associated with events that have made a significant contribution to the broad patterns of our history; or
B. That are associated with the lives of significant persons in or past; or C. That embodies the distinctive characteristics of a type, period, or method of construction, or that represent the work of a master, or that possess high artistic values, or that represent a significant and distinguishable entity whose components 96

Page 20 of 93 ends

may lack individual distinction; or
D. That has yielded or may be likely to yield, information important in history or prehistory.

In general, historic sites are evaluated in terms of Criteria A through C, while prehistoric sites are most often evaluated in terms of Criterion D, which refers to the research potential of the site (36 CFR 60.4). Whether or not a site is considered important is determined by the capacity of the site to address pertinent local and regional research themes. The enrolled parcels are residential in nature and based on a preliminary review heavily modified from their original construction. Potential eligibility will likely be determined based on the relationship of the parcel and structures to significant persons in the past. The architectural historian will complete a review of past ownership and compare that to persons of local, regional, or state significance.

Mountain Engineering will complete a Survey Report that will include the description of project activities, methodology, survey boundaries, survey intensity, survey results, detailed desktop analysis of all parcels, description of resources recorded, and copies of the DPR forms.

Scope of Work
Cultural Survey Strategy/Methodology
• Mountain Engineering will document known archaeological sites within or adjacent to proposed survey areas through a records search (previously completed). • Mountain Engineering will prepare a survey plan, “Survey Needs”, that documents CEQA and FEMA requirements including the following items:
o Project Description (This must sufficient in detail to determine which areas are exempt from or require surveys.)
o Environmental Setting
o Native American Consultation – Notification to tribes, local Native American groups, and the NAHC about the proposed project and to invite their views and comments. (Town of Paradise will notify tribes of proposed project.) o Ethnographic / Historic Overview – Pre-field research which is sufficient in scope and breadth to enable surveyors the ability to interpret, record, and evaluate these findings within the context of local history and prehistory. o Archaeological Background - The background includes a review of archaeological reports (either survey reports or excavation reports) and/or site records for the local area. This review will provide specific examples of the kinds of cultural resources that have been previously discovered in the general area, a discussion of archaeological, historical, and ethnographic information pertaining to the area being studied, and examples of typical artifact assemblages. Mountain Engineering will look for site location patterning and the types of artifacts or features being recorded. (This is 97

Page 21 of 93 ends

being completed as part of the Hazard Tree project and the effort will not be duplicated in billing).
o Proposed Field Methods - Survey methods and techniques employed to achieve adequate coverage will vary based upon a variety of factors. These include the physical characteristics of the property, especially topographic and other environmental attributes, and other information gathered during the records check, in response to the Native American information request, and/or other pre-field research, as well as the results of archaeological inventories in areas with a similar cultural and natural setting. o Area of Potential Effect
o Legal Description
o Approximate Survey area
o Previously Recorded Sites
o Previously Conducted Cultural Resource Surveys
• Field Methods
o Reconnaissance strategy is to complete a thorough pedestrian survey by utilizing 30 foot (10 m) transects, which will be supplemented by intuitive, pre-field and previously recorded site information to provide general survey coverage of the identified areas. (By intuitive, we mean that in areas where we are on a transect but near another location where topography, distance to water or protection from the elements may create a more suitable location for habitation, the transect may vary to incorporate those locations.) Areas with a slope greater than 30% will be surveyed utilizing both intuitive and cursory reconnaissance methodologies (increased distance between transects up to 20 m). Mountain Engineering will scan slopes to determine if any visible evidence exists of potential features which may be the result of human intervention in the landscape.
 Project design drawing, project maps, and aerial imagery will be used to correctly identify the APE (Area of Potential Effect).  Exposed mineral soils will be inspected for evidence of cultural materials. The locations of cultural resources will be recorded using IPADs. Resources will be recorded using the standard Department of Parks and Recreation 523 services forms. The entirety of the Survey Needs” area will be surveyed using intensive survey coverage with transects no greater than 30-feet (with the exceptions previously mentioned). Digital photos will be taken of the project area and surroundings.
o Mountain Engineering will record all newly discovered: prehistoric and historical heritage resources within the enrolled parcels. A GPS device (IPAD) will be used to record the location of all site boundaries and datum. All sites and isolates shall be digitally photographed. Representative photos of sites shall include at least two overview shots (looking across the site in a cardinal direction), and photos of artifact concentrations and/or features. Paper copies of the photos shall be included with the DPR forms, and JPEGs will be 98

Page 22 of 93 ends

supplied to the Government electronically. Such sites will be given field numbers pending Smithsonian numbers assigned through the SHPO. o Any surficial artifacts that are discovered and deemed to be temporally diagnostic, will be documented (photographed and pertinent measurements taken) by Mountain Engineering in the field. Diagnostic artifacts will have GPS coordinates taken and will be covered with surface soil at the location of discovery to deter looting and to minimize damage, pending further direction from the Town of Paradise.
• Mountain Engineering will provide a GIS layer with preliminary site boundaries and survey boundaries to Town of Paradise / FEMA within seven working days of the completion of the survey. This will allow Town of Paradise to plan future work accordingly. Cultural Resources Site records will be provided within 60 calendar days of completion of the Survey. Mountain Engineering will complete new or updated site records for all sites within the Area of Potential Effect (APE) / Survey boundaries. o Mountain Engineering will complete a Cultural Resource Survey Report that documents background, methodology, and findings. Sites will be characterized as to typology and a preliminary eligibility determination will be included based on survey data.
o Mountain Engineering will identify potentially significant sites (eligible to the National Register of Historic Places). Significant sites should be avoided, because impacts would require mitigation and analysis beyond the scope of the program, accept for activities permitted under the NEPA/FEMA documentation (hand work only with directional felling). o Mountain Engineering will propose a specific list of protection measure that may reduce the level of impact to that of No Adverse Effect. (Complete avoidance is the preferred method of eliminating or reducing impacts within site boundaries.) If site cannot be avoided, this would include a second round of consultation with Native Americans. No efforts beyond identifying protection measures are included in the current cost estimates.

After Action Report
• Mountain Engineering will prepare an after-action report that will include a project description, methodology, survey boundaries, summary of results, and include the cultural survey reports as attachments.
99 Town of Paradise
Council Agenda Summary
Date: October 8, 2024
Agenda Item: 2(i)
ORIGINATED BY: Colette Curtis, Recovery and Economic
Development Director
REVIEWED BY: Jim Goodwin, Town Manager
SUBJECT: Local Hazard Mitigation Plan

LONG TERM
RECOVERY PLAN:

No
COUNCIL ACTION REQUESTED:

1. Adopt Resolution No. 2024-___ “A Resolution of the Town Council of the Town of Paradise Adopting the September 2024 Local Hazard Mitigation Plan (LHMP).

Background:

Every five years, Butte County leads an update of our Local Hazard Mitigation Plan (LHMP), which includes the Town of Paradise as an annex to the plan. This plan serves as our local record of identified hazards and their estimated likelihood of occurrence as well as severity in order to plan for mitigation efforts in our region. FEMA requires an approved plan in order for jurisdictions to be eligible for federal assistance after disasters. The current LHMP expires on November 5, 2024.

Analysis:

Town staff has been working with Butte County and our neighboring jurisdictions on our 2024 update to the LHMP since late 2023. A summary of the identified hazards and actions for the Town of Paradise includes:

Action Title New Action
/Previous
Action
Address
Current
Developme
nt
Address
Future
Developme
nt
Continue
d NFIP
Complian
ce
Mitigation
Type
Integrate Local Hazard
Mitigation Plan into
Safety Element of
General Plan
Previous
Action
X X Prevention
Enhance Public
Education and
Awareness of Natural
Hazards and Disaster
Preparedness
Previous
Action
X X X Public
Information
Coordinate with PID for
upgrades to Magalia
Reservoir
New Action X X X Prevention,
Property
Protection,
Natural
100
Resource
Protection
Storm Drain Resiliency
Project Phase 2
Previous
Action
X X X Property
Protection
Town of Paradise
Emergency Operations
Center Information
Project
New Action X X Emergency
Services
Public
Information
Honey Run/Middle Butte
Creek Fuel Reduction
Project
New Action X X Property
Protection,
natural
resource
protection
Little Butte Creek Fuel
Reduction Project
New Action X X Property
Protection,
natural
resource
protection
Lower Paradise Fuel
Reduction Project
New Action X X Property
Protection,
natural
resource
protection
West Branch Buel
Reduction Project
New Action X X Property
Protection,
natural
resource
protection
Wildfire Hazard and
Invasive species
reduction project
New Action X X Property
Protection,
natural
resource
protection
The Local Hazard Mitigation Draft Plan can be viewed here:
https://www.buttecounty.net/DocumentCenter/View/14094/Butte-County-LHMP-Update_Sept2024-PDF?bidId= Financial Impact:

There is no financial impact for this Plan.
101

TOWN OF PARADISE
RESOLUTION NO. 2024-___

A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF PARADISE ADOPTING THE SEPTEMBER 2024 LOCAL HAZARD MITIGATION PLAN (LHMP) WHEREAS the Town of Paradise recognizes the threat that natural hazards pose to people and property within the Town of Paradise and
WHEREAS the Town of Paradise has prepared a multi-hazard mitigation plan, hereby known as the September 2024 Local Hazard Mitigation Plan (LHMP) in accordance with federal laws, including the Robert T. Stafford Disaster Relief and Emergency Assistance Act, as amended; the National Flood Insurance Act of 1968, as amended; and the National Dam Safety Program Act, as amended; and
WHEREAS the September 2024 Local Hazard Mitigation Plan identifies mitigation goals and actions to reduce or eliminate long-term risk to people and property in the Town of Paradise the impacts of future hazards and disasters; and WHEREAS adoption by the Town of Paradise demonstrates its commitment to hazard mitigation and achieving the goals outlined in the (title and date of mitigation plan.

WHEREAS, the Town of Paradise seeking FEMA approval of hazard mitigation plan desires to comply with the requirements of the Disaster Mitigation Act and to augment its emergency planning efforts by formally adopting the September 2024 Local Hazard Mitigation Plan by reference into the Safety Element of the General Plan in accordance with the requirements of AB 2140; and
NOW THEREFORE, BE IT RESOLVED by the Town Council of the Town of Paradise, that: The Town of Paradise Town Council adopts September 2024 Local Hazard Mitigation Plan. While content related to Town of Paradise may require revisions to meet the plan approval requirements, changes occurring after adoption will not require the Town of Paradise to re-adopt any further iterations of the plan. Subsequent plan updates following the approval period for this plan will require separate adoption resolutions.

BE IT RESOLVED, that the Town of Paradise adopts the September 2024 Local Hazard Mitigation Plan by reference into the safety element of their general plan in accordance with the requirements of AB 2140; and
BE IT FURTHER RESOLVED, the Town of Paradise will submit this adoption resolution to the California Office of Emergency Services and FEMA Region IX officials to enable the plan’s final approval in accordance with the requirements of the Disaster Mitigation Act of 2000 and to establish conformance with the requirement of AB 2140.

PASSED AND ADOPTED by the Town Council of the Town of Paradise on this 8 th day
of October 2024, by the following vote:
102

TOWN OF PARADISE
RESOLUTION NO. 2024-____
2 AYES:

NOES:

ABSENT:

ABSTAIN:

By:

Ronald Lassonde, Mayor
ATTEST:
__________________________
Melanie Elvis, Town Clerk/Elections Official
APPROVED AS TO FORM:
__________________________
Scott E. Huber, Town Attorney
103

Town of Paradise
Council Agenda Summary
Date: October 8, 2024
Agenda Item: 2(j)
ORIGINATED BY: Sarah Richter, Housing Program Technician REVIEWED BY: Jim Goodwin, Town Manager
SUBJECT: Amendment and update to HOME Owner-Occupied
Rehabilitation Guidelines

LONG TERM
RECOVERY PLAN:

No
COUNCIL ACTION REQUESTED:

1. Consider adopting Resolution No. 2024- _____ “A Resolution of The Town Council of The Town of Paradise Rescinding Resolution No. 2022-33 and Adopting New Home Owner-Occupied Housing Rehabilitation Program Guidelines.”
Background:

The Town of Paradise provides housing assistance in the form of deferred loans to low-income residents to make home repairs necessary to address health and safety issues and code violations, including complete reconstruction of homes that were destroyed in the Camp Fire. The Town can lend up to the Butte County maximum HOME subsidy limit per unit when total indebtedness shall not exceed 100% of the after-rehab value. The current subsidy limit for a 2- bedroom home is $252,994 and a 3-bedroom home is $327,293.

The interest rate on these deferred loans is 3% simple interest for the first 10 years, interest is forgiven after 20 years, and the loan is due after 30 years. A waiver obtained in 2023 grants an exemption to the requirement that HOME funds be committed within 12 months of destruction and permits a commitment of funds to rebuild homes until January 27, 2026.

Since 2020, the Town of Paradise has primarily funded the Owner-Occupied Rehabilitation program through another funding source due to unfavorable regulatory constraints that apply to projects funded with HOME funds. One obstacle Housing Staff has had with approving applicants for owner-occupied rehabilitation is that the current owner lived at the property at the time of the fire, but was not on title. This amendment expands eligibility to include current owners who lived at the property at the time of the fire as their principal residence, who have since acquired title to the property either through inheritance or trust action. Program guidelines are also updated to include changes made to annual income inclusions and exclusions, often referred to as “Part 5.” Analysis:

Housing staff recommends adoption of these amended and updated guidelines, which should result in a small increase in eligible program participants and additional homes rebuilt that were destroyed by the Camp Fire. Proposed changes to the guidelines are denoted in RED. 104
Financial Impact:

No impact to the general fund and little to no impact on the Housing Department budget. 105

TOWN OF PARADISE
RESOLUTION NO. 2024-____

A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF PARADISE RESCINDING RESOLUTION 2022-33 AND ADOPTING THE AMENDED AND UPDATED HOME OWNEROCCUPIED HOUSING REHABILIATION PROGRAM GUIDELINES WHEREAS, the Paradise Town Council adopted Resolution 2022-33, “A resolution of the Town Council of the Town of Paradise Amending the HOME Owner-Occupied Housing Rehabilitation Program Guidelines previously adopted by resolution 2022-01; WHEREAS, the Town Council now desires to rescind Resolution No. 2022-33 and adopt the amended and updated guidelines for the HOME Owner-Occupied Rehabilitation Program.

NOW, THEREFORE, BE IT RESOLVED by the Town Council of the Town of Paradise as follows:

1. The Town hereby amends and updates the HOME Owner-Occupied Rehabilitation Guidelines, as shown in the attached as Exhibit “A”.

2. This resolution is effective immediately upon adoption.

PASSED AND ADOPTED by the Town Council of the Town of Paradise this 8th day of October, 2024, by the following vote:

AYES
NOES
ABSENT
ABSTAIN:
_________________________________
Ronald Lassonde, Mayor
ATTEST:

Melanie Elvis, Town Clerk/Elections Official
APPROVED AS TO FORM:

Scott E. Huber, Town Attorney
106

TOWN OF PARADISE

SINGLE-FAMILY HOUSING REHABILITATION

ASSISTANCE PROGRAMS
(HOME and CDBG)

PROGRAM DESIGN AND PROCESS

HCD Version 6.2017
CDBG Approved (date)
HOME Approved
COUNCIL Approved (date)
107
Town of Paradise Housing Rehabilitation Guidelines Page 2

TOWN OF PARADISE

HOUSING REHABILITATION

PROGRAM GUIDELINES

TABLE OF CONTENTS

1.0. GENERAL

1.1. PROGRAM OUTREACH AND MARKETING

1.2. APPLICATION PROCESS AND SELECTION

1.3. LOAN PROCESS

1.4. CONFLICT OF INTEREST REQUIREMENTS

2.0. APPLICANT QUALIFICATIONS

2.1. INCOME LIMITS

2.2. INCOME QUALIFICATION CRITERIA

2.3. HOMEOWNER ELIGIBILITY & RESIDENCY REQUIREMENTS

3.0. PROPERTY ELIGIBLITY

3.1. CONDITIONS

3.2. ANTI-DISPLACEMENT POLICY AND RELOCATION ASSISTANCE

3.3. NOTIFICATIONS AND DISCLOSURES

4.0. THE PROGRAM LOAN

4.1. MAXIMUM AMOUNT OF PROGRAM ASSISTANCE

4.2. AFFORDABILITY PARAMETERS FOR HOMEOWNERS

4.3. RATES AND TERMS

4.4. GRANTS

4.5. APPRAISAL

4.6. INSURANCE

5.0. PROGRAM LOAN SERVICING AND MAINTENANCE

5.1. PAYMENTS ARE VOLUNTARY

5.2. RECEIVING LOAN REPAYMENTS

5.3. LOAN SERVICING POLICIES AND PROCEDURES

5.4. LOAN MONITORING PROCEDURES

5.5. DEFAULT AND FORECLOSURE

5.6. SUBORDINATIONS

6.0. CONSTRUCTION

6.1. STANDARDS

6.2. ELIGIBLE CONSTRUCTION COSTS

6.3. ELIGIBLE PROJECT COSTS

6.4. REPAIR CALLBACKS

7.0. EXCEPTIONS AND SPECIAL CIRCUMSTANCES

7.1. AMENDMENTS

7.2. EXCEPTIONS

8.0. DISPUTE RESOLUTION AND APPEALS PROCEDURES

8.1. PROGRAM COMPLAINT AND APPEAL PROCEDURE

8.2. GRIEVANCES BETWEEN PARTICIPANTS AND CONSTRUCTION

CONTRACTOR
108
Town of Paradise Housing Rehabilitation Guidelines Page 3

TOWN OF PARADISE

HOUSING REHABILITATION

PROGRAM GUIDELINES

ATTACHMENTS TABLE OF CONTENTS
ATTACHMENT A: 24 CFR PART 5 ANNUAL INCOME INCLUSIONS AND EXCLUSIONS –

FOR CDBG & HOME
ATTACHMENT B: ANNUAL INCOME NET FAMILY ASSET INCLUSIONS AND EXCLUSIONS – FOR CDBG & HOME
ATTACHMENT C: MAXIMUM PURCHASE PRICE AFTER-REHAB VALUE LIMIT; HOME PER UNIT SUBSIDY LIMIT; CURRENT INCOME LIMITS; BEDROOM
& BATHROOM ADDITION STANDARDS
ATTACHMENT D: MARKETING PLAN
ATTACHMENT E: RESIDENTIAL ANTIDISPLACEMENT AND RELOCATION

ASSISTANCE PLAN
ATTACHMENT F: LOAN SERVICING POLICIES AND PROCEDURES
ATTACHMENT G: FORECLOSURE POLICY
ATTACHMENT H: CERTIFICATION OF OCCUPANCY
ATTACHMENT I: LEAD-BASED PAINT NOTICE OF PRESUMPTION AND HAZARD

REDUCTION FORM
109
Town of Paradise Housing Rehabilitation Guidelines Page 4

TOWN OF PARADISE

HOUSING REHABILITATION

PROGRAM GUIDELINES
Adopted October 10, 2017

1.0. GENERAL
The above-named entity, hereinafter referred to as the “Sponsor”, has entered into a contractual relationship with the California Department of Housing and Community Development (“HCD”) to administer one or more HCD-funded housing rehabilitation programs. The rehabilitation program described herein and hereinafter referred to as the “Program” is designed to provide assistance to eligible homeowners for correction of health and safety items, as well as code violations, located within the Program’s eligible area, as described in Section 3.0. The Program provides this assistance in the form of deferred payment loans used to finance the cost of necessary repairs that will provide the homeowner with a healthy, safe, sanitary and code compliant home, referred to herein as “housing unit”.

The Program will be administered by the Town of Paradise, hereinafter referred to as the “Program Operator”.

1.1. PROGRAM OUTREACH AND MARKETING
All outreach efforts will be done in accordance with state and federal fair lending regulations to assure nondiscriminatory treatment, outreach and access to the Program. No person shall, on the grounds of age, ancestry, color, creed, physical or mental disability or handicap, marital or familial status, medical condition, national origin, race, religion, gender or sexual orientation, be excluded, denied benefits or subjected to discrimination under the Program. The Sponsor will ensure that all persons, including those qualified individuals with handicaps have access to the Program.

A. The Fair Housing Lender and Accessibility logos will be placed on all outreach materials. Fair housing marketing actions will be based upon a characteristic analysis comparison (census data may be used) of the Program’s eligible area compared to the ethnicity of the population served by the Program (includes, separately, all applications given out and those receiving assistance) and an explanation of any underserved segments of the population. This information is used to show that protected classes (age, gender, ethnicity, race, and disability) are not being excluded from the Program. A Fair Housing Marketing Plan can be found as Attachment D. Flyers or other outreach materials, in English and any other language that is the primary language of a significant portion of the area residents, will be widely distributed in the Program-eligible area and will be provided to any local social service agencies. The Program may sponsor homeownership education classes to help educate homeowners about credit, budgeting, predatory lending, foreclosure prevention and home maintenance, as well as future responsibilities.

B. Section 504 of the Rehabilitation Act of 1973 prohibits the exclusion of an otherwise qualified individual, solely by reason of disability, from participation under any program receiving Federal funds. The Program Sponsor will take appropriate steps to ensure 110
Town of Paradise Housing Rehabilitation Guidelines Page 5 effective communication with disabled housing applicants, residents and members of the public. The Section 504 Self-Evaluation will be conducted at the beginning of each grant cycle or every three years, whichever is sooner.

1.2. APPLICATION PROCESS AND SELECTION
A. Waiting List/Homeowner Contact
The Sponsor will utilize a waiting list. In response to a homeowner’s request, the homeowner is placed on the waiting list. Homeowners are offered the opportunity to qualify for assistance by waiting list priority (a first-come, first served basis).

The Program Operator will contact homeowners by mail and/or by telephone to advise of funding availability. The homeowner has 30 days to complete and return the loan application and supporting documentation. Should a homeowner fail to respond to the initial contact for assistance or to provide any of the required documentation within the 30-day period, the homeowner’s name will be removed from the waiting list. If the homeowner desires assistance at a later time, he/she will be placed on the waiting list at that time.

Should the waiting list be exhausted, the Program will be marketed in accordance with the Sponsor’s Marketing Plan. See Attachment D.

B. Application/Interview
An application packet is provided to the homeowner for completion and submittal to the Program Operator, along with supporting documentation. An interview is scheduled with the applicant. The Program is fully explained; application forms and documentation are reviewed. Verifications are obtained for income, assets, employment, benefits, and mortgage. Title report and appraisals are also obtained.

If the Program Operator encounters material discrepancies and/or misrepresentations, and/or there are income, asset, household composition, or other important questions that can't be resolved, the Sponsor reserves the right to deny assistance to the household. In this case, the applicant may re-apply after six months have elapsed from the time of written assistance denial.

C. Household Selection
Households selected for participation in the Sponsor’s Housing Rehabilitation Program are those determined eligible upon completion of processes described in A. and B. above.

D. Initial Inspection/Work Write-Up/Estimate
Prospective units are inspected by the Program Operator, a certified housing inspector, or a Sponsor representative to determine eligibility and acceptability of properties for participation in the Program.

If the home is a pre-1978 unit, the initial inspection will also include paint testing by a certified Lead-Based Paint (LBP) inspector/assessor or presumption of LBP. Code 111
Town of Paradise Housing Rehabilitation Guidelines Page 6 deficiencies will be corrected and if presumption is used or lead hazards are found they will be properly treated according to HUD regulations (Section 6.1.E & F) and cleared by a certified LBP inspector/assessor. Note: CDBG projects shall refer to Chapter 20, Lead-Based Paint Requirements for guidance in the CDBG Grant Management Manual.

Measurements and observations are noted about the property, including special conditions with potential cost consequences (dilapidated outbuildings, absence of curb and gutter when required by code, etc.). A floor plan and site plan, as needed, are drawn for the home and property, including all appurtenances.

Findings are noted on an inspection form, and later used by the Program Operator to prepare the work write-up. Estimated costs are determined by the Program Operator who has years of experience in the building industry, and in reviewing contractor bids and verifying cost with materials suppliers. The homeowner reviews the completed work write-up and cost estimate, and the approved write-up is incorporated into bid documents.

E. Bid Solicitation
For large projects, a bid walk-through date and time are scheduled. The homeowner may choose to solicit his/her own bids or request that the Program Operator solicit bids on his/her behalf. Invitations to bid are mailed to all eligible contractors on file in efforts to obtain three reasonable bids. Bid results will be provided to participating contractors.

Contractors must be licensed and bonded by the State of California Contractors Licensing Board. Contractors must also provide Program Operator with evidence of Workers’ Compensation Insurance (if applicable) and Comprehensive General Liability and Property Damage Insurance with Combined Single Limits of at least $1,000,000.

Cost reasonableness is determined by comparing the bids received with the cost estimate prepared by the Program Operator. Bids should be within 10% of the Program Operator’s cost estimate, otherwise an explanation must be provided to the file for any bid selected exceeding 10% of the estimate. The homeowner is encouraged to accept the lowest reasonable bid.

The Program Operator determines eligibility of the contractor by contacting the State Contractors License Board and checking the Federal List of Debarred Contractors.

The contractor is also required to provide a self-certification stating that he/she is not on the Federal debarred list. Once determined eligible, the contractor is then notified of provisional award of bid (pending loan approval). Notices of non-award are mailed to participating contractors.

F. Loan Request/Approval
A report and loan request are prepared on behalf of the homeowner by the Program Operator. The loan request includes the cost of construction, a contingency fund, and other project costs (listed in Section 6.3.). Note: For HOME, the project costs listed in Section 6.3 are considered activity delivery costs to be paid by the Sponsor 112
Town of Paradise Housing Rehabilitation Guidelines Page 7 and may not be charged to the homeowner’s loan. A Loan Review Committee meeting is scheduled to hear the loan request. Section 1.3 provides additional information on the loan approval process. Once approved, loan documents are executed and the loan is funded.

G. Pre-Construction Conference
A pre-construction conference is scheduled with homeowner, contractor, and Program Operator. The Program Operator reviews the Owner-Contractor Construction Contract, including the work write-up, start date, pay schedule, and date of completion, with the homeowner and contractor. The construction contract and Notice to Proceed are executed.

H. Start-Up/Field Inspections
The Program Operator monitors date of start-up and performs field inspections on a regular basis. The Program Operator will visit the job site regularly in order to check the scope of work, inspect materials, and to confirm the job is on schedule and within budget. The Program Operator works with the Sponsor’s Building Inspector to ensure the work meets building codes, while not exceeding funding limits.

The Program Operator reviews the work status with the homeowner and with the contractor in order to remedy any developing problems quickly and to ensure that both are satisfied with the construction process. At the completion of each phase, the Program Operator inspects the work and the homeowner authorizes contractor payments.

The Program Operator will refer back to original plans and specifications to verify the work was completed as contracted.

I. Change Orders
Written change orders are required when the homeowner requests any changes in the write-up, such as eliminating an item completely, eliminating one item and substituting another, or adding items. The change order will state the change and dollar value for the change. The change order must be signed by both the contractor and the homeowner, and submitted to the Program Operator for approval. If the change order exceeds the approved financing, the homeowner will be asked to provide additional funds or a report and request for additional funds may be presented to the Sponsor for approval prior to Program Operator signing-off on the change order.

J. Progress Payments
Ninety percent (90%) of the contract amount is distributed to the contractor in the form of progress payments during construction. The final ten-percent (10%) of the contract amount is set aside as a retention payment. The contractor requests a progress payment from the homeowner and notifies the Program Operator that he/she has done so. Upon favorable inspection by the homeowner, Program Operator, and Sponsor or Sponsor’s Building Inspector, the payment authorization is signed by the homeowner and submitted for payment.
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Town of Paradise Housing Rehabilitation Guidelines Page 8 K. Final Inspections/Notice of Completion/Final Payment When the project is completed, the Program Operator inspects the work item by item with the homeowner, the contractor, and/or the Sponsor. The Sponsor’s Building Inspector performs a final inspection. Any corrections or deficiencies are noted and corrected by the contractor. Upon favorable final inspections, a Notice of Completion is prepared, signed by the homeowner, and then recorded. The final tenpercent (10%) retention payment is released 35 days after the recording of the Notice of Completion.

1.3. LOAN PROCESS
The Sponsor’s Loan Review Committee must approve all loans and grants. The Loan Review Committee may approve assistance with CDBG financing exceeding 100 percent of after-rehabilitation value as needed in cases where no other financial resources are available to cover the cost of the repairs and where clear and convincing documentation exists, justifying why the exception is needed.

For HOME-funded loans, the total financing cannot be more than 100 percent of the afterrehabilitation value, unless (per HOME Management Memorandum 13-01 at http://www.hcd.ca.gov/grants-funding/grants-management-memos.shtml#home) the amount of HOME assistance that exceeds the 100 percent after-rehabilitatin value is granted rather than loaned, due to a lack of any equity after rehabilitation, based on existing loans on the property. In addition, the amount of HOME assistance, including Sponsor’s claimed Activity Delivery Costs, cannot exceed the Sponsor’s County maximum HOME Per Unit Subsidy Limit at http://www.hcd.ca.gov/grants-funding/income-limits/state-and-federalincome-limits.shtml#cdbg, and the after-rehabilitation value cannot exceed the HOME Maximum After-Rehabilitation Value. See Attachment C for current limits.

In order to obtain financing, applicants must meet all property and eligibility guidelines in effect at the time the application is considered. Homeowners will be provided written notification of approval or denial. Any reason for denial will be provided to the applicant in writing.

1.4. CONFLICT OF INTEREST REQUIREMENTS
When the Sponsor’s program contains Federal funds, the applicable Conflict of Interest requirements of 24 CFR Section 570.611 shall be followed for CDBG assistance. Section

92.356 of the HOME Final Rule shall be followed for HOME assistance, as follows:
(a) Conflicts prohibited. No persons described in paragraph (b) of this section who exercises or has exercised any functions or responsibilities with respect to activities assisted with HOME funds or who are in a position to participate in a decision making process or gain inside information with regard to these activities, may obtain a financial interest or benefit from a HOME-assisted activity, or have a financial interest in any contract, subcontract or agreement with respect to the HOME-assisted activity, or the proceeds from such activity, either for themselves or those with whom they have business or immediate family ties, during their tenure or for one year thereafter. Immediate family ties include (whether by blood, marriage or adoption) the spouse, parent (including stepparent), child (including stepchild), brother, sister (including a stepbrother or stepsister), grandparent, grandchild and in-laws of a covered person.
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Town of Paradise Housing Rehabilitation Guidelines Page 9 (b) Persons covered. The conflict of interest provisions of paragraph (a) of this section apply to any person who is an employee, agent, consultant, officer, or elected official or appointed official of the participating jurisdiction, State recipient, or subrecipient which are receiving HOME funds.
(c) Exceptions: Threshold requirements. Upon the written request of the participating jurisdiction to HCD, HUD may grant an exception to the provisions of paragraph (a) of this section on a case-by-case basis when it determines that the exception will serve to further the purposes of the HOME Investment Partnerships Program and the effective and efficient administration of the participating jurisdiction's program or project. See 24 CFR

92.356(d)(1-6) for details on the documentation needed in order to submit an exception request to HUD.

A contractor with a vested interest in the property cannot bid on a rehabilitation job. Such a contractor may act as owner/builder, subject to standard construction procedures.

Owner/builders are reimbursed for materials purchased which are verified by invoice/receipt and used on the job. Reimbursement occurs after the installation is verified by the Program Operator to be part of the scope of work. Owner/builders are not reimbursed for labor.

2.0. APPLICANT QUALIFICATIONS

2.1. INCOME LIMITS
All homeowners must certify that they meet the household income eligibility requirements for the applicable HCD program(s) and have their household income documented. The income limits in place at the time of loan approval will apply when determining applicant income eligibility. All applicants must have incomes at or below 80% of the County’s area median income (AMI), adjusted for household size, as published by HCD each year. See Attachment C.

The link to the official HCD-maintained income limits for HOME and CDBG Funded activities is: http://www.hcd.ca.gov/grants-funding/income-limits/state-and-federal-incomelimits.shtml#cdbg (use State CDBG and HOME) limits.

Household: means one or more persons who will occupy a housing unit. Unborn children don’t count in family size determination.

Annual Income: Generally, the gross amount of income of all adult household members that is anticipated to be received during the coming 12-month period.

2.1.1 OWNER-OCCUPIED REQUIREMENTS
Owner-Occupant - to be eligible, household income must be equal to or less than the applicable HCD income limits. Owner will be required to provide income documentation.

Refer to Income Inclusions and Exclusions for further guidance to the types of incomes to be included or excluded when calculating gross annual income. See Attachment A for HOME and CDBG. Refer to Asset Inclusions and Exclusions for further guidance to the types of assets to be included or excluded when calculating gross annual income. See Attachment B.
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Town of Paradise Housing Rehabilitation Guidelines Page 10 Owner-occupants housing and/or debt ratios are not considered, nor is a credit report required, as the funding provided creates no additional monthly financial obligation. If an owner-occupant has a mortgage, it is verified that all payments are current and that no late payments have been received in the past twelve months.

2.2. INCOME QUALIFICATION CRITERIA
Projected annual gross income of the applicant household will be used to determine whether they are above or below the published HCD income limits. Income qualification criteria for HOME and CDBG, as shown in the most recent HCD program-specific guidance at http://www.hcd.ca.gov/grants-funding/income-limits/income-calculation-and-determinationguide.shtml, will be followed to independently determine and certify the household’s annual gross income. Staff responsible for the gathering and evaluation of income will be trained on the above-referenced guide either by HCD staff, when available, or internally by previouslytrained Town of Paradise staff. Income will be verified by reviewing and documenting tax returns, copies of wage receipts, subsidy checks, bank statements and third-party verification of employment forms sent to employers. All documentation shall be dated within six months prior to loan closing and kept in the applicant file and held in strict confidence.

A. HOUSEHOLD INCOME DEFINITION:

Household income is the annual gross income of all adult household members that is projected to be received during the coming 12-month period, and will be used to determine program eligibility. Refer to Income Inclusions and Exclusions for further guidance to the types of incomes to be included or excluded when calculating gross annual income. For those types of income counted, gross amounts (before any deductions have been taken) are used. Two types of income that are not considered would be income of minors and of live-in aides. Certain other household members living apart from the household also require special consideration. The household’s projected ability to pay must be used, rather than past earnings, when calculating income.

The link to Annual Income Inclusions and Exclusions is:
http://www.hcd.ca.gov/grants-funding/income-limits/income-calculation-anddetermination-guide/docs/AppendixB_AnnualIncomeInclusionsExclusions.doc See Attachment A: HOME and CDBG 24 CFR Part 5 Annual Income Inclusions and Exclusions
B. ASSETS:

There is no asset limitation for participation in the Program. Income from assets is, however, recognized as part of annual income under the Part 5 definition. An asset is a cash or non-cash item that can be converted to cash. The value of necessary items such as furniture and automobiles are not included. (Note: it is the income earned – e.g. interest on a savings account – not the asset value, which is counted in annual income.)
An asset’s cash value is the market value less reasonable expenses required to convert the asset to cash, including: Penalties or fees for converting financial 116
Town of Paradise Housing Rehabilitation Guidelines Page 11 holdings and costs for selling real property. The cash value (rather than the market value) of an item is counted as an asset.

The Link to Asset Inclusions and Exclusions is:
http://www.hcd.ca.gov/grants-funding/income-limits/income-calculation-anddetermination-guide/docs/AppendixB_AnnualIncomeInclusionsExclusions.doc See Attachment B: Part 5 Annual Income Net Family Asset Inclusions and Exclusions

2.3. HOMEOWNER ELIGIBILITY AND RESIDENCY REQUIREMENTS
The Sponsor’s Housing Rehabilitation Program allows for owner-occupied properties to participate in the Program. Owner-occupied units must be the owner’s principal place of residence. A photocopy of a recent utility bill will verify proof of occupancy. No unit to be rehabilitated will receive financial assistance if it is currently occupied by an over-income household or does not meet the eligibility standards outlined in these guidelines.

Eligible applicants include current property owners who received the property through devise, descent, or operation of law, provided that the applicant lived at the property as their principal residence at the time the damage or destruction occurred.

2.3.1 OWNER-OCCUPIED
A. Continued residency is monitored annually per Attachment F for the term of the loan. Occupancy will be verified by the submission of the following:

1. Proof of occupancy in the form of a copy of a current utility bill; and

2. Statement of unit's continued use as primary residence of the owner.

B. In the event that an homeowner sells, transfers title, or discontinues residence in the rehabilitated property for any reason, the loan becomes due and payable, unless the following conditions are met:

The homeowner who received the loan dies and the heir to the property meets income requirements and intends to occupy the home as his/her principal residence.

Upon approval of the Sponsor, the heir may be permitted to assume the loan at the rate and terms the heir qualifies for under current participation guidelines. If the heir does not meet applicable eligibility requirements, the loan is due and payable.

C. If a homeowner converts the property to a rental unit, or any commercial or nonresidential use, the loan is due and payable.

If the loan is funded with a HOME Loan it is not transferable except under the following limited circumstances:
(a) The transfer of the Property to the surviving joint tenant by devise, descent or operation of the law, on the death of a joint tenant;
(b) A transfer of the Property where the spouse becomes an owner of the property; 117
Town of Paradise Housing Rehabilitation Guidelines Page 12 (c) A transfer of the Property resulting from a decree of dissolution of marriage, legal separation or from an incidental property settlement agreement by which the spouse becomes an owner of the Property; or
(d) A transfer to an inter vivos trust in which the Borrower is and remains the beneficiary and occupant of the property.

3.0. PROPERTY ELIGIBILITY

3.1. CONDITIONS
A. No unit will be eligible if a household’s income exceeds the prescribed income limits listed in Attachment C.

B. Units to be rehabilitated must be located within the incorporated areas of the Sponsor’s jurisdiction.

C. Property must have contained a legal residential structure intended for continued residential occupancy.

D. All repair work will meet Local Building Code standards. At a minimum, health and safety hazards must be eliminated. For CDBG the priority will be the elimination of health and safety hazards. Sponsor may also require elimination of code deficiencies. When HOME funds are used for housing rehabilitation, the property must meet all applicable current codes, rehabilitation standards, ordinances, and zoning ordinances at the time of project completion. However, if certain components of the house are sound and were built to code prescribed at the time of installation, no repair or alteration will be made to those components. Section 8 Housing Quality Standards may be required on rentals by Sponsor when CDBG funds are used.

3.2. ANTI-DISPLACEMENT POLICY AND RELOCATION ASSISTANCE Tenants will be informed of their eligibility for temporary relocation benefits if occupancy during rehabilitation constitutes a danger to health and safety of occupants or public danger or is otherwise undesirable because of the nature of the project. Relocated persons will receive increased housing costs, payment for moving and related expenses and appropriate advisory services, as detailed in the Sponsor's "Residential Anti-displacement and Relocation Assistance Plan" (Attachment E).

Owner-occupants are not eligible for temporary relocation benefits, unless health and safety threats are determined to exist by the Program Operator. In cases where relocation is determined to be necessary by the Sponsor/Program Operator, assistance may be provided for actual costs incurred from the applicant’s loan proceeds or as a grant (see Section 4.4. for allowable grants). HOME-funded projects will provide relocation assistance in the form of a grant, which shall be included in the maximum assistance amount.

3.3. NOTIFICATION AND DISCLOSURES
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Town of Paradise Housing Rehabilitation Guidelines Page 13 A. Occupants of units constructed prior to 1978 will receive proper notification of LeadBased Paint (LBP) hazards as follows:

The Lead Hazard Information Pamphlet published by the EPA/HUD/Consumer Product Safety Commission will be given to all owners regardless of the cost of rehabilitation or paint test findings. If lead-based paint is found through testing or if presumed, a Notice of Lead Hazard Evaluation or Presumption will also be supplied.

When Lead hazards are present, a Notice of Lead Hazard Reduction Activity and a Lead Hazard Evaluation Report will also be provided (Attachment I).

B. Tenants located in properties that will receive housing rehabilitation will be provided a notice outlining their relocation rights and benefits (Attachment E).

4.0. THE PROGRAM LOAN

4.1. MAXIMUM AMOUNT OF PROGRAM ASSISTANCE
An eligible homeowner may qualify for the full cost of rehabilitation/reconstruction work needed to comply with State and local codes and ordinances. Maximum assistance shall not exceed the Sponsor’s County maximum HOME Subsidy Limits Per Unit at http://www.hcd.ca.gov/grants-funding/income-limits/state-and-federal-incomelimits.shtml#cdbg. See Attachment C for current limits. For CDBG-funded programs, the maximum assistance for rehabilitation/reconstruction will not exceed $190,430.

4.2. AFFORDABILITY PARAMETERS FOR HOMEOWNERS
A. Total indebtedness against property shall not exceed 100 percent of after-rehabilitation value as determined by “Estimates of value” or an appraisal, for CDBG or HOME projects. The exception for HOME loans is per HOME Management Memorandum 13- 01 at http://www.hcd.ca.gov/grants-funding/grants-management-memos.shtml#home wherein the amount of HOME assistance that exceeds the 100 percent afterrehabilitation value is granted rather than loaned, due to a lack of any after-rehabilitation equity based on existing loans on the property. An estimate of after-rehab value will be made prior to making a commitment of funds using the method outlined in Section 4.5.

B. HOME-funded units’ after-rehabilitation value shall not exceed the HOME Program Maximum Purchase Price/After-Rehabilitation Value Limits for Sponsor’s County as updated by HUD and published on the HCD Website at http://www.hcd.ca.gov/grantsfunding/income-limits/state-and-federal-income-limits.shtml. See Attachment C.

C. Any bid within 10% of the Program Operator’s estimate may be selected, otherwise an explanation must be provided to the file for a bid selected exceeding 10% of the estimate.

4.3. RATES AND TERMS

4.3.1. OWNER-OCCUPANTS
A. Homeowners are eligible for Deferred Payment Loans (DPL), at 3% simple interest which accrues for 10 years only and is forgiveable on the 20th anniversary of the loan, evidenced by a Promissory Note and secured by a Deed of Trust, with no 119
Town of Paradise Housing Rehabilitation Guidelines Page 14 payback required for 30 years unless the borrower sells or transfers title or discontinues residence in the dwelling. Payments may be made voluntarily on a DPL. Note: If it is determined by the Sponsor that repayment of a CDBG Program loan at the maturity date causes a hardship to the homeowner, the Sponsor may opt the following:

1. Amend the note and deed of trust to defer repayment of the amount due at maturity, that is balance of the original principal plus the accrued interest, for up to an additional 30 years (at 0% additional interest). This may be offered one time;

2. Convert the debt at loan maturity; that is the balance of the original principal plus any accrued interest, to an amortized loan, repayable in 15 years at 0% additional interest.

B. If the homeowner dies, and if the heir(s) to the property live(s) in the house and is/are income eligible, the heir(s) may be permitted, upon approval of the Sponsor, to assume the loan at the rate and terms the heir(s) qualifies for under current participation guidelines.

C. If the homeowner dies and the heir(s) is/are not income eligible, the loan becomes all due and payable.

D. If a homeowner converts the rehabilitated property to any residential-rental, commercial or non-residential use, the loan becomes all due and payable.

E. As specified in the Rehabilitation Loan Agreement, all applicants who participate in the Program must maintain the property at post-rehabilitation conditions for the term of the loan. Should the property not be maintained accordingly, the loan shall be considered in default and becomes all due and payable, and if necessary, foreclosure proceedings will be initiated. A method of inspection will be established by the Sponsor.

4.4. GRANTS
A. CDBG-funded programs may provide grants as follows:

A grant of up to $7,500 is available for any one of the following qualifying factors:

1. Senior Citizen - at least 62 years old; or

2. Handicapped – for only handicap modifications to a house with one or more physically handicapped occupants who would function more independently if such modifications were installed; or

3. Lowest Targeted Income Group – with gross annual income less than 50 percent of County median income; or

4. Equity maintenance – if financing rehabilitation entirely with a loan would cause indebtedness to exceed 100% of after-rehabilitation value.

B. HOME and CDBG provide grants for all actual costs of lead-based paint evaluation and reduction activities.

C. HOME and CDBG provide grants for relocation assistance. See Relocation 120
Town of Paradise Housing Rehabilitation Guidelines Page 15 Assistance Plan, Attachment E.

1. Owner-Occupant – Limit of $3,000.

4.5. APPRAISAL
A. The After-Rehab Value for rehabilitation projects is determined using the “Estimates of value” method. The Sponsor or Program Operator determines estimates of value based on the sale prices of at least three (3) comparable properties, sold within the last six months (within one year of the assistance date, which is the date the promissory note is signed), and located within one mile of the subject property. The participants’ file will include the estimate of value and document the basis for the value estimates. The purpose of the “Estimates of value” is to determine that the After-Rehabilitation Value Limit of the housing unit will not exceed the permitted amount per HCD Program regulations (See Attachment C). If three comparable properties cannot be found, or if there is any question regarding the After-Rehab Value, the ARV will be determined by a licensed appraiser, as described in Section 4.5.B. below.

B. A licensed appraiser determines the After-Rehab Value for rehabilitation projects, when the “Estimates of value” method cannot be used. For rehabilitation projects the appraiser determines the value of the unit with the rehabilitation building plans and specifications included. The cost of the appraisal will be paid by the Sponsor, not by the homeowner. The purpose of the appraisal is to determine that the after-rehabilitation value of the housing unit will not exceed the permitted amount per HCD Program regulations (See Attachment C), and that the combined loans will not exceed the maximum combined loan-to-value limit, as described in Section 4.2.A above.

C. The After-Rehab Value for reconstruction projects is determined by a licensed appraiser.

The After-Rehab Value for reconstruction projects is determined by an appraisal completed off the building plans and specifications for the new home. The cost of the appraisal will be paid by the Sponsor, not by the homeowner. The purpose of the appraisal is to determine that the After-Rehabilitation Value Limit of the housing unit will not exceed the permitted amount per HCD Program regulations (See Attachment C).

4.6. INSURANCE

4.6.1. FIRE INSURANCE
The homeowner shall maintain fire insurance on the property for the duration of the Program loan(s). This insurance must be an amount adequate to cover all encumbrances on the property. The insurer must identify the Sponsor as Loss Payee for the amount of the Program loan(s). Evidence of this shall be provided to the Sponsor.

In the event the applicant fails to make the fire insurance premium payments in a timely fashion, the Sponsor at its option, may make such payments for a period not to exceed 60 days. The Sponsor may, in its discretion and upon the showing of special circumstances, make such premium payments for a longer period of time. Should the Sponsor make any payments, it may, in its sole discretion, add such payments to the principal amount that the applicant is obligated to repay the Sponsor under this Program. The premium may be paid 121
Town of Paradise Housing Rehabilitation Guidelines Page 16 by the Program loan for one year. Note: HOME and CDBG funds cannot be used to pay insurance cost beyond those identified as initial loan costs.

4.6.2. FLOOD INSURANCE
For homes in a 100-year flood zone, the owner is required to maintain flood insurance in an amount adequate to secure the Program loan and all other encumbrances. This policy must designate the Sponsor as Loss Payee and a binder shall be provided to the Sponsor and maintained in the borrowers file. The premium may be paid by the Program loan for one year. Note: HOME funds cannot be used to pay insurance cost beyond those identified as initial loan costs.

4.7. LOAN SECURITY
A. Loan security for all owner-occupied rehabilitation stick-built homes will be secured by the real property and improvements, and will also include a Deed of Trust, Promissory Note and Loan Agreement in favor of the Sponsor.

B. A manufactured home in a mobile home park or on leased land that is not on a permanent foundation will be secured by an HCD 480.7 or an HCD 484 Statement of Lien, and will also include a Promissory Note and Loan Agreement.

C. Entering a subordinate lien is acceptable. However, the Sponsor will not subordinate a first lien position once established.

5.0. PROGRAM LOAN SERVICNG AND MAINTENANCE

5.1. PAYMENTS ARE VOLUNTARY
Borrowers may begin making voluntary payments at any time.

5.2. RECEIVING LOAN REPAYMENTS
A. Program loan payments will be made to:

Town of Paradise
Business & Housing Services
5555 Skyway
Paradise, CA 95969
B. The Sponsor will be the receiver of loan payments or recapture funds and will maintain a financial record-keeping system to record payments and file statements on payment status. Payments shall be deposited and accounted for in the Sponsor’s appropriate Program Income Account, as required by all HCD programs. The Program Sponsor will accept loan payments from borrowers prepaying deferred loans and from borrowers making payments in full upon sale or transfer of the property. All loan payments are payable to the Sponsor. The Sponsor may at its discretion, enter into an agreement with a third party to collect and distribute payments and/or complete all loan servicing aspects of the Program. 122
Town of Paradise Housing Rehabilitation Guidelines Page 17

5.3. LOAN SERVICING POLICIES AND PROCEDURES
See Attachment F for local loan servicing policies and procedures. While the attached policy outlines a system that can accommodate a crisis that restricts borrower repayment ability, it should in no way be misunderstood: The loan must be repaid. All legal means to ensure the repayment of a delinquent loan as outlined in the Loan Servicing Policies and Procedures will be pursued.

5.4. LOAN MONITORING PROCEDURES
Homeowners will be required to submit each of the following to the Sponsor at the time of annual occupancy verification per Attachment F:
• Proof of occupancy in the form of a copy of a current utility bill; • Statement of unit's continued use as a residence;
• Declaration that other title holders do not reside on the premises; • Verification that Property Taxes are current; and
• Verification of current required insurance policies.

5.5. DEFAULT AND FORECLOSURE
If an owner defaults on a loan, and foreclosure procedures are instituted, they shall be carried out according to the Program Foreclosure Policy adopted by the Sponsor, and attached to these guidelines as Attachment G.

5.6. SUBORDINATIONS
The Sponsor may approve a request to subordinate a loan, in order for the owner to refinance the property, under the following conditions:

A. The lien position of the Sponsor loan will remain the same or be advanced.

B. The new primary loan is no greater than the balance of the loan being refinanced, except the costs of refinancing the loan may be added to the principal balance.

C. The purpose of the new primary loan is to reduce the interest rate being paid and/or reduce the owner's payment.

D. The refinanced loan must have an impound account for taxes and insurances.

E. The refinancing terms must be acceptable to the Sponsor.

F. CDBG allows refinancing with CDBG funds in conjunction with only rehabilitation of the unit.

6.0. CONSTRUCTION
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Town of Paradise Housing Rehabilitation Guidelines Page 18

6.1. STANDARDS
A. All repair work will meet Local Building Code standards. At a minimum, health and safety hazards must be eliminated. For CDBG the priority will be the elimination of health and safety hazards. Sponsor may also require elimination of code deficiencies.

When HOME funds are used for housing rehabilitation, the property must meet all applicable current codes, rehabilitation standards, ordinances, and zoning ordinances at the time of project completion. However, if certain components of the house are sound and were built to code prescribed at the time of installation, no repair or alteration will be made to those components.

B. Contracting Process

1. Contracting will be done on a competitive basis.

2. The homeowner will be the responsible agent, but the Sponsor and/or its Program Operator will prepare the work write-up, prepare and advertise the bid package, and assist the owner in negotiating the construction contract.

3. The Sponsor does not warrant any construction work, or provide insurance coverage.

C. Approved Contractors

1. Contractors are required to be licensed with the State of California, and be active and in good standing with the Contractors’ License Board.

2. Contractors will be checked against HUD’s list of federally debarred contractors.

No award will be granted to a contractor on this list.

3. Contractors must have public liability and property damage insurance, and worker’s compensation, unemployment and disability insurance, to the extent required by State law.

4. Contractor must agree to comply with all federal and state regulations.

E. Occupants of units constructed prior to 1978 will receive proper notification of LeadBased Paint (LBP) hazards as identified in Section 3.3.A.

F. Units constructed prior to 1978 will also be inspected according to the following HUD regulations.. For CDBG funded programs please refer to Chapter 20, LeadBased Paint Requirements for guidance in the CDBG Grant Management Manual.

1. If the total amount of Federal assistance or the total amount of rehabilitation hard cost is up to and including $5,000, the following is required:
(a) Paint testing or presume LBP;
(b) Clearance of disturbed work areas; and
(c) Notifications listed in Section 3.3.A.

2. If the amount of Federal assistance or the total amount of rehabilitation hard cost is more than $5,000 up to and including $25,000, the following is required:
(a) Paint testing or presume LBP;
(b) Risk assessment; and
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Town of Paradise Housing Rehabilitation Guidelines Page 19 (c) Clearance of unit.

If LBP hazards are identified, interim controls will be implemented. This level will also require a notice of “Abatement of Lead Hazards Notification” at least five days prior to starting work.

3. If the amount of Federal assistance or the total amount of rehabilitation hard cost is more that $25,000, the following is required:
(a) Items (a), (b), and (c) of 2. above;
(b) Abatement of all LBP hazards identified or produced; (c) Use of interim controls on exterior surfaces not disrupted by rehab; and all notices listed above in Sections 3.3.A. and 6.1.F.2.

4. All paint tests that result in a negative finding of lead-based paint are exempt from any and all additional requirements. If defective paint surfaces are found, they will be properly treated or abated. A State-certified Inspector/Assessor will perform all paint testing, risk assessments, and clearances. A trained supervisor may oversee interim controls; however, a certified supervisor and workers will perform all abatement.

5. Lead-based paint testing and abatement is not required if the rehabilitation will not disturb a painted surface.

6.2. ELIGIBLE CONSTRUCTION COSTS
“Rehabilitation” means, in addition to the definition in Section 50096 of the Health and Safety Code, repairs and improvements to a manufactured home necessary to correct any condition causing the home to be substandard pursuant to Section 1704 of Title 25, California Code of Regulations. Rehabilitation also includes room additions to alleviate overcrowding. Rehabilitation also means repairs and improvements where necessary to meet any locally-adopted standards used in local rehabilitation programs. Rehabilitation does not include replacement of personal property.

Rehabilitation includes reconstruction. Federal law and policy allows the use of HOME funds to demolish and reconstruct owner-occupied residential structures. Reconstruction is defined as the demolition and construction of a structure. The Sponsor and/or Program Operator must document that the reconstruction costs are less than the cost to rehabilitate the existing substandard housing. This will be done using the State’s HOME Test for Reconstruction, for projects funded with HOME funds.

Additionally, the Sponsor must determine that the project’s value after reconstruction (housing and land combined) is less that the Maximum After-Rehabilitation Value for the Sponsor (see Attachment C, One-Family).

The residential structure to be reconstructed must be a structure with cooking, eating, sleeping, and sanitation facilities which has been legally occupied as a residence within the preceding 12 months. Fifth wheels or recreational vehicles, for example, are not considered dwellings and therefore are not eligible under this Program. 125
Town of Paradise Housing Rehabilitation Guidelines Page 20 Like for like requires that the structure being demolished must be replaced with a like structure (replace manufactured housing with manufactured housing, for example).

However, additions may be approved by the HCD Program when required by Codes/Ordinances or to alleviate overcrowding. (See Attachment C) Temporary relocation benefits must be planned for and budgeted into the total allowable subsidy for the project, but if required would be in the form of a grant.

Depending on the outcome of the Statutory Worksheet (Environmental test), a reconstructed project may require Authority from the State before funds are committed to the project.

Allowable rehabilitation\reconstruction costs include:

A. Cost of building permits and other related government fees.

B. Cost of architectural, engineering, and other consultant services which are directly related to the rehabilitation of the property.

C. Rehabilitation or Replacement of a manufactured home. Rehabilitation of a manufactured home may include the replacement of the unit with a used manufactured home and the cost to repair it, as long as the unit has been occupied and not used as a demonstration model. Should the unit meet the criteria for reconstruction a new manufactured home can be used for replacement and all cost associated with the purchase and transportation can be added to the loan.

D. Owner-occupied rehabilitation activity delivery fees, pursuant to Section 7733(f), as reimbursement to the Sponsor for the actual costs of services rendered to the homeowner that are incidentally but directly related to the rehabilitation work (e.g. planning, engineering, construction management, including inspections and work write-ups).

E. Rehabilitation will address the following issues in the order listed. Eligible costs are included for each item.

1. Health and Safety Issues
Eligible costs include, but are not limited to, energy-related improvements, leadbased paint hazard evaluation and reduction activities, improvements for handicapped accessibility, repair or replacement of major housing systems. A driveway may be considered part of rehabilitation if it is determined to be a health and safety issue.

2. Code and Regulation Compliance
Eligible costs include, but are not limited to, additional work required to rehabilitate and modernize a home, and bring it into compliance with current building codes and regulations. Painting and weatherization are included.

3. Demolition
126
Town of Paradise Housing Rehabilitation Guidelines Page 21 Eligible costs include, but are not limited to, the tear down and disposal of dilapidated structures when they are a part of the reconstruction of an affordable housing unit. If a garage or carport is detached, it may not be rehabilitated but may be demolished, if it is determined to be a health and safety issue.

4. Upgrades
Eligible costs include additional bedrooms and bathrooms if the need can be demonstrated per HUD’s or Sponsor’s overcrowding guidelines listed in Attachment C. The Program will not fund additions to a home for a den or family room, or for any luxury items.

5. General Property Improvements
Eligible costs include, but are not limited to, installation of a stove or dishwasher; and repair or installation of fencing.

All improvements must be physically attached to the property and permanent in nature. Non-code property improvements (fencing, landscaping, driveway, etc.) will be limited to 15 percent of the rehabilitation loan amount. Any cash contribution by the property owner will be considered a general property improvement and be included in this percentage. Luxury items are not permitted.

Items such as stoves and dishwashers that are not built-in may be replaced due only to incipient failure or documented medical condition of the homeowner, and must be of moderate quality.

6. Rehabilitation Standards
All repair work related to health and safety conditions will meet Local Building Code standards. The priority will be the elimination of health and safety hazards and code compliance.

6.3. ELIGIBLE PROJECT COSTS
Examples of eligible project costs for all expenses related to the paperwork for processing and insuring a loan application are listed below. All invoices, staff timekeeping records and other backup documentation for each project are kept in the project files. For HOME, these costs are considered activity delivery costs and may not be charged to the homeowner’s loan; activity delivery costs reimbursed to the Town cannot exceed the total of all invocies, timekeeping records and other backup documentation.
• Appraisal
• Property Report/Title Insurance
• Building Plan
• Termite Report
• Land Survey
• Grading Plan
• Recording Fees
• Fire/Course of Construction Insurance
• Flood Insurance, as applicable (not allowed with HOME funds) 127
Town of Paradise Housing Rehabilitation Guidelines Page 22 Costs are based on charges currently incurred by the Sponsor, or its Program Operator, for these products and/or services. Except for HOME loans, any cost increases charged to the Sponsor/Program Operator for these products and/or services will be passed on to the homeowner and included in the loan. All fees are subject to change and are driven by the market.

6.4. REPAIR CALLBACKS
Contractors will comply with State law regarding all labor and material warranties. All labor and material shall meet FHA minimum specifications.

7.0. EXCEPTIONS AND SPECIAL CIRCUMSTANCES

7.1. AMENDMENTS
The Sponsor may make amendments to these Participant Guidelines. Any changes made shall be in accordance with federal and state regulations, shall be approved by the Sponsor’s Loan Committee and/or local governing body and submitted to HCD for approval.

7.2. EXCEPTIONS
Any case to which a standard policy or procedure, as stated in the guidelines, does not apply or an applicant treated differently from others of the same class would be an exception.

7.2.1 PROCEDURES FOR EXCEPTIONAL CIRCUMSTANCES
A. The Sponsor or its Program Operator may initiate consideration of an exception and prepare a report. This report shall contain a narrative, including the Sponsor’s/Program Operator’s recommended course of action and any written or verbal information supplied by the applicant.

B. The Sponsor shall make a determination of the exception based on the recommendation of the Program Operator. The request can be presented to the Sponsor’s loan committee and/or governing body for decision.

8.0. DISPUTE RESOLUTION AND APPEALS PROCEDURES

8.1. PROGRAM COMPLAINT AND APPEAL PROCEDURE
Complaints concerning the Sponsor’s Rehabilitation Program should be made to the Program Operator first. If unresolved in this manner, the complaint or appeal shall be made in writing and filed with the Sponsor. The Sponsor will then schedule a meeting with the Sponsor’s Loan Review Committee. Their written response will be made within thirty (30) working days. If the applicant is not satisfied with the committee's decision, a request for an appeal may be filed with the local governing body. Final appeal may be filed in writing with HCD within one year after denial or the filing of the Project Notice of Completion. 128
Town of Paradise Housing Rehabilitation Guidelines Page 23

8.2. GRIEVANCES BETWEEN PARTICIPANTS AND CONSTRUCTION

CONTRACTOR
Contracts signed by the contractor and the participant include the following clause, which provides a procedure for resolution of grievances:

Any controversy arising out of or relating to this Contract, or the breach thereof, shall be submitted to binding arbitration in accordance with the provisions of the California Arbitration Law, Code of Civil Procedure 1280 et seq., and the Rules of the American Arbitration Association. The arbitrator shall have the final authority to order work performed, to order the payment from one party to another, and to order who shall bear the costs of arbitration. Costs to initiate arbitration shall be paid by the party seeking arbitration. Notwithstanding, the party prevailing in any arbitration proceeding shall be entitled to recover from the other all attorney's fees and costs of arbitration.
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ATTACHMENT A
24 CFR Part 5 ANNUAL INCOME INCLUSIONS AND EXCLUSIONS
The Program Operator shall access the current federal income determination regulations online at https://www.ecfr.gov/current/title-24/subtitle-A/part-5/subpart-F/subject-groupECFR174c6349abd095d/section-5.609, regarding income inclusions and exclusions. 130
Town of Paradise Housing Rehabilitation Guidelines Page 25

ATTACHMENT B
PART 5 ANNUAL INCOME NET FAMILY ASSET INCLUSIONS AND EXCLUSIONS The Program Operator shall access the current federal income determination regulations at https://www.ecfr.gov/current/title-24/subtitle-A/part-5/subpart-F/section-5.603 regarding the definition of Net family assets, to which the regulations at section 5.609 refer. 131
Town of Paradise Housing Rehabilitation Guidelines Page 26

ATTACHMENT C

MAXIMUM PURCHASE PRICE/AFTER-REHAB VALUE LIMIT FOR BUTTE COUNTY

1. 132
Town of Paradise Housing Rehabilitation Guidelines Page 27 (HOME Value Limits as of 07/01/2023)
COUNTY NAME One-Family
BUTTE $398,000

HOME SUBSIDY LIMITS PER UNIT FOR BUTTE COUNTY
(Limits are effective 5/24/2017)
O-BDR 1-BDR 2-BDR 3-BDR 4-BDR
$181,488 $208,049 $252,994 $327,293 $359,263
HOUSEHOLD INCOME LIMITS FOR BUTTE COUNTY*
(Limits are effective 06/15/2017)
Number of Persons in Household
1 2 3 4 5 6 7 8
80% of
AMI $50,750 $58,000 $65,250 $72,500 $78,300 $84,100 $89,900 $95,700 *Sponsor will insert the limits for the county in which the Program is located, and will update the income limits annually as HCD provides new information. The link to the official, HCD-maintained Value, Subsidy, and Income limits is: http://www.hcd.ca.gov/grants-funding/income-limits/state-and-federal-incomelimits.shtml

SPONSOR STANDARDS FOR BEDROOM AND BATHROOM ADDITIONS TO

ALLEVIATE OVERCROWDING
Maximum No. of
Persons in the
Household
Number of
Bedrooms
Number of
Bathrooms
1 SRO 1
1 0-BR 1
2 1-BR 1
4 2-BR 2
6 3-BR 2
8 4-BR 3
10 5-BR 3
12 6-BR 4
• Opposite sex children under 6 years of age may share a bedroom, up to 2 children per bedroom. • Opposite-sex children 6 years of age and older may have their own bedroom. • Children shall be permitted a separate bedroom from their parents. • Same-sex children of any age may share a bedroom, up to 2 children per bedroom. • Adults not in a partner relationship may have their own bedroom. • 4 or more people – a second bathroom may be added.
• 8 or more people – a third bathroom may be added.
• Same rules apply to mobile home units.

The chart above is used as a guide to overcrowding.
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ATTACHMENT D

HOUSING REHABILITATION MARKETING PLAN

SUMMARY
The Sponsor will continue its efforts to market the Housing Rehabilitation Program in a manner that will reach all community members.

All marketing related to the Housing Rehabilitation Program is publicized in English. All marketing materials include information identifying the Sponsor’s commitment to fair housing laws and affirmative marketing policy, and are widely distributed. Equal opportunity is emphasized in written materials and oral presentations. A record is maintained by the Sponsor identifying what marketing materials are used, and when and where they are distributed.

Forms of marketing may include fliers, brochures, newspaper ads, articles and public service announcements. Fliers and brochures are distributed at local government buildings, other public buildings and through the mail, as well as to businesses that assist those not likely to apply without special outreach. Advertisements and articles are published in newspapers that are widely circulated within the community.

Established working relationships with local lending agencies also aid in informing the public by facilitating the distribution of informational fliers to households seeking financial assistance for repairs that are unable to obtain conventional financing.

Informational meetings are offered to potential participants to explain Program requirements. Often, minimal formal outreach efforts are required as the need for assistance generally exceeds funds available.

However, marketing measures are actively performed in order to maintain a healthy interest list.

Characteristics on all applicants and participants are collected and compared with the Sponsor’s demographics. Should the Sponsor find that there are underserved segments of the population, a plan to better serve them will be developed and implemented.

MARKETING FORMS
Fliers
Brochures
Newspaper Ads and Articles
Public Service Announcements
Public Informational Meetings

MARKETING VENUES
Local Government Buildings
Local Public Services Buildings
Private Businesses
Lending Agencies
Real Estate Offices
Newspaper
Radio
Mail
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Town of Paradise Housing Rehabilitation Guidelines Page 29

ATTACHMENT E

RESIDENTIAL ANTI-DISPLACEMENT AND TEMPORARY RELOCATION PLAN Version 2
The Housing and Community Development Act of 1974, as amended, and the National Affordable Housing Act of 1990, require all grantees of Community Development Block Grant (CDBG) funds or Home Investment Partnership (HOME) funds to follow a written Residential Anti-displacement and Relocation Assistance Plan (Plan) for any activities which could lead to displacement of occupants whose property is receiving funds from these or other federal funding source. Having been developed in response to both aforesaid federal legislations, this Plan is intended to inform the public of the compliance of the Town of Paradise (Sponsor) with the requirements of federal regulations 24 CFR 570.606 under state recipient requirements and Section 104(d) of the Housing and Community Development Act of 1974 and 24 CFR 92 of the HOME federal regulations. The Plan will outline reasonable steps, which the Sponsor will take to minimize displacement and ensure compliance with all applicable federal and state relocation requirements. The Sponsor’s governing body has adopted this plan via a formal resolution.

This Plan will affect rehabilitation activities funded by the U.S. Department of Housing and Urban Development (HUD) under the following program titles: HOME, CDBG, Urban Development Action Grant (UDAG), Special Purpose Grants, Section 108 Loan Guarantee Program, and such other grants as HUD may designate as applicable, which take place with in the Sponsor’s jurisdiction limits.

The Sponsor will provide permanent relocation benefits to all eligible “displaced” owner-occupied units which are permanently displaced by the housing rehabilitation program (See Section E below.).

In addition, the Sponsor will replace all eligible occupied and vacant occupiable low-income group dwelling units demolished or converted to a use other than low income group housing as a direct result of rehabilitation activities. This applies to all units assisted with funds provided under the Housing and Community Development Act of 1974, as amended, and as described in the Federal Regulations 24 CFR 570.496(a), Relocation, Displacement and Acquisition: Final Rule dated July 18, 1990 (Section 104(d)) and 49 CFR Part 24, Uniform Relocation Assistance (URA) and Real Property Acquisition Regulations Final Rule and Notice (URA) dated March 2, 1989.

All Sponsor programs/projects will be implemented in ways consistent with the Sponsor’s commitment to Fair Housing. Participants will not be discriminated against on the basis of race, color, religion, age, ancestry, national origin, sex, familial status, or handicap. The Sponsor will provide equal relocation assistance available 1) to each targeted income group household displaced by the demolition or rehabilitation of housing or by the conversion of a targeted income group dwelling to another use as a direct result of assisted activities; and 2) to each separate class of targeted income group persons temporarily relocated as a direct result of activities funded by HUD programs.

A. Minimizing Permanent Displacement and Temporary Relocation Resulting from Housing Rehabilitation or Reconstruction Activities
Consistent with the goals and objectives of activities assisted under the Act, the Sponsor will take the following steps to minimize the displacement of persons from their homes during housing rehabilitation or reconstruction funded by HUD programs:

1. Provide proper notices with counseling and referral services so that they understand their relocation rights and receive the proper benefits. When necessary assist permanently displaced persons to find alternate housing in the neighborhood.

2. Stage rehabilitation of assisted households to allow occupants to remain during minor rehabilitation.
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Town of Paradise Housing Rehabilitation Guidelines Page 30

3. Work with area landlords, real estate brokers, and/or hotel/motel managements to locate vacancies for households facing temporary relocation.

4. When necessary, use public funds, such as CDBG funds, to pay moving costs and provide relocation/displacement payments to households permanently displaced by assisted activities.

B. Lead Based Paint Mitigation Which Causes Temporary Relocation:

On September 15, 2000, the Final Rule for Lead Based Paint Hazard Control went into effect.

Among other things, it requires that federally-funded rehabilitation must use safe work practices so that occupants and workers can be protected from lead hazards. At no time should the occupant(s) be present in work areas or designated adjacent areas while LHC activities are taking place in any dwelling unit interior, common area, or exterior. As such, occupants may not be allowed to remain in their units during the time that lead-based paint hazards are being created or treated. Once work that causes lead hazards has been completed, and the unit passes clearance, the occupants can return. The final rule allows for certain exceptions: programs:

1. The work will not disturb lead-based paint, or create dust-lead or soil-lead hazard; or

2. The work is on exterior only and openings are sealed to prevent dust from entering the home, the work area is cleaned after the work is completed, and the residents have alternative lead free entry; or

3. The interior work will be completed in one period of less than 8-daytime hours and the work site is contained to prevent the release of dust into other areas of the home; or

4. The interior work will be completed within five (5) calendar days, the work site is contained to prevent the release of dust, the worksite and areas within 10 feet of the worksite are cleaned at the end of each day to remove any visible dust and debris, and the residents have safe access to kitchen and bath and bedrooms.

If temporary relocation benefits are not provided because the Sponsor believes that the project meets one of the above criteria, then proper documentation must be provided in the rehabilitation project file to show compliance. It is up to the Sponsor to ensure that the occupants in the project does not get impacted by lead paint mitigation efforts. In most cases where lead paint mitigation is taking place, occupants will be strongly encouraged to relocate even for just a few days until a final lead clearance can be issued by a certified lead based paint assessor. Occupants who are temporarily relocated because of lead based paint mitigation are entitled to the same relocation benefits as those who are relocated because of substantial rehabilitation or reconstruction activities.

C. Temporary Relocation of Owner Occupants:

Owner occupants are not allowed to stay in units which are hazardous environments during lead based paint mitigation. When their home is having lead based paint mitigation work done which will not make it safe to live in, then they are eligible for temporary relocation benefits up to $3,000, which will be provided as a grant. In the same way, a unit requiring substantial rehabilitation (with or without lead based paint mitigation) which will not allow the family to access a bath or kitchen facility, or if the unit is being demolished and reconstructed, then the family will be eligible for temporary relocation benefits up to $3,000, which will be provided as a grant. In no case shall the grant for temporary relocation exceed $3,000 for any one owner occupant.

Owner occupants will be encouraged to move in with family or friends during the course of rehabilitation, since they are voluntarily participating in the Program. The housing rehabilitation 136
Town of Paradise Housing Rehabilitation Guidelines Page 31 loan specialist and/or the rehabilitation construction specialist will complete a temporary relocation benefits form (See Appendix C) to document that the owner occupant understands that they must relocate during the course of construction and what benefits they wish to be reimbursed for as part of their relocation.

D. Temporary Relocation of Residential Tenants (in an owner-occupied unit):

If continued occupancy during rehabilitation is judged to constitute a substantial danger to health and safety of the tenant or the public, or is otherwise undesirable because of the nature of the project, the tenant may be required to relocate temporarily. The contract administrator or rehabilitation specialist will make determination of the need for temporary relocation. The temporary relocation period will not exceed 180 days. All conditions of temporary relocation will be reasonable. Any tenant required to relocate temporarily will be helped to find another place to live which is safe, sanitary and of comparable value and they have the first right to move back into the original unit being rehabilitated at the same rent or lower. He or she may move in with family and friends and still receive full or partial temporary assistance based on eligible cost incurred. The housing rehabilitation loan specialist and/or the rehabilitation specialist will ensure that each tenant-occupied unit under the Program will receive a General Information Notice (GIN) (as soon as possible after a loan application is received) and the tenant will receive a Notice of Non-displacement (after loan approval), and each tenant-occupied unit will have a temporary relocation benefits form completed for them. (See Appendix C). These notices will document that each tenant understands what their relocation rights are, and if they must relocate during the course of construction, that they receive the proper counseling and temporary relocation benefits.

A tenant receiving temporary relocation shall receive the following:

1. Increased housing costs (e.g. rent increase, security deposits) and

2. Payment for moving and related expenses, as follows:
a. Transportation of the displaced persons and personal property within 50 miles, unless the grantee determines that farther relocation is justified; b. Packing, crating, unpacking, and uncrating of personal property; c. Storage of personal property, not to exceed 12 months, unless the grantee determines that a longer period is necessary;
d. Disconnection, dismantling, removing, reassembling, and reinstalling relocated household appliances and other personal property;
e. Insurance for the replacement value of personal property in connection with the move and necessary storage;
f. The replacement value of property lost, stolen or damaged in the process of moving (not through the fault of the displaced person, his or her agent, or employee) where insurance covering such loss, theft or damage is not reasonably available; g. Reasonable and necessary costs of security deposits required to rent the replacement dwelling;
h. Any costs of credit checks required to rent the replacement dwelling; 137
Town of Paradise Housing Rehabilitation Guidelines Page 32 i. Other moving related expenses as the grantee determines to be reasonable and necessary, except the following ineligible expenses:
1) Interest on a loan to cover moving expenses; or
2) Personal injury; or
3) Any legal fee or other cost for preparing a claim for a relocation payment or for representing the claimant before the Grantee; or
4) Costs for storage of personal property on real property already owned or leased by the displaced person before the initiation of negotiations.

E. Rehabilitation Activities Requiring Permanent Displacement The Sponsor’s rehabilitation program will not typically trigger permanent displacement and permanent displacement activities fall outside of the scope of this plan. If a case of permanent displacement is encountered, then the staff responsible for the rehabilitation program will consult with Sponsor’s legal counsel to decide if they have the capacity to conduct the permanent displacement activity. If local staff does not have the capacity, then a professional relocation consultant will be hired to do the counseling and benefit determination and implementation. If local staff does wish to do the permanent displacement activity then they will consult and follow the HUD Relocation Handbook 1378.

F. Rehabilitation Which Triggers Replacement Housing
If the Sponsor’s rehabilitation program assists a property where one or more units are eliminated then under Section 104 (d) of the Housing and Community Act of 1974, as amended applies and the Sponsor is required to replace those lost units. An example of this would be a duplex unit which is converted into a single family unit. In all cases where rehabilitation activities will reduce the number of housing units in the jurisdiction, then the Sponsor must document that any lost units are replaced and any occupants of reduced units are given permanent relocation benefits. (This does not apply to reconstruction or replacement housing done under a rehabilitation program where the existing unit(s) is demolished and replaced with a structure equal in size without in loss number of units or bedrooms.) Replacement housing will be provided within three years after the commencement of the demolition or conversion. Before entering into a contract committing the Sponsor to provide funds for an activity that will directly result in such demolition or conversion, the Sponsor will make this activity public (through a noticed public hearing and/or publication in a newspaper of general circulation) and submit to the California Department of Housing and Community Development or the appropriate federal authority the following information in writing:

1. A description of the proposed assisted activity;

2. The location on a map and the approximate number of dwelling units by size (number of bedrooms) that will be demolished or converted to a use other than as targeted income group dwelling units as a direct result of the assisted activity;

3. A time schedule for the commencement and completion of the demolition or conversion;

4. The location on a map and the approximate number of dwelling units by size (number of bedrooms) that will be provided as replacement dwelling units;

5. The source of funding and a time schedule for the provision of the replacement dwelling units;

6. The basis for concluding that each replacement dwelling unit will remain a targeted 138
Town of Paradise Housing Rehabilitation Guidelines Page 33 income group dwelling unit for at least 10 years from the date of initial occupancy; and,

7. Information demonstrating that any proposed replacement of dwelling units with smaller dwelling units (e.g., a two-bedroom unit with two one-bedroom units) is consistent with the housing needs of targeted income group households in the jurisdiction.

The Program Operator for the Sponsor is responsible for tracking the replacement of housing and ensuring that it is provided within the required period. The Sponsor is responsible for ensuring requirements are met for notification and provision of relocation assistance, as described in Section 570.606, to any targeted income group displaced by the demolition of any dwelling unit or the conversion of a targeted income group dwelling unit to another use in connection with an assisted activity.

G. Record Keeping and Relocation Disclosures/Notifications The Sponsor will maintain records of occupants of federally funded rehabilitated, reconstructed or demolished property from the start to completion of the project to demonstrate compliance with section 104(d), URA and applicable program regulations. Each rehabilitation project, which dictates temporary or permanent or replacement activities, will have a project description and documentation of assistance provided. (See sample forms in HUD Relocation Handbook 1378, Chapter 1, Appendix 11, form HUD-40054)
Appropriate advisory services will include reasonable advance written notice of (a) the date and approximate duration of the temporary relocation; (b) the address of the suitable, decent, safe, and sanitary dwelling to be made available for the temporary period; (c) the terms and conditions under which the tenant may lease and occupy a suitable, decent, safe, and sanitary dwelling.

Notices shall be written in plain, understandable primary language of the persons involved. Persons who are unable to read and understand the notice (e.g. illiterate, foreign language, or impaired vision or other disability) will be provided with appropriate translation/communication. Each notice will indicate the name and telephone number of a person who may be contacted for answers to questions or other needed help. The notices and process below is for only temporary relocation. If permanent relocation is involved then other sets of notice and noticing process and relocation benefits must be applied (See HUD relocation handbook 1378 for those forms and procedures) The Temporary Relocation Advisory Notices to be provided are as follows:

1. General Information Notice: As soon as feasible when an owner is applying for Federal financing for rehabilitation, reconstruction, or demolition, any tenant of a housing unit will be mailed or hand delivered a General Information Notice that the project has been proposed and that the tenant will be able to occupy his or her present unit upon completion of rehabilitation.

The tenant will be informed that the rent after rehabilitation will not exceed current rent or 30 percent of his or her average monthly gross household income. The tenant will be informed that if he or she is required to move temporarily so that the rehabilitation can be completed, suitable housing will be made available and he or she will be reimbursed for all reasonable extra expenses. The tenant will be cautioned that he or she will not be provided relocation assistance if he or she decides to move for personal reasons. See Appendix A for sample notice to be delivered personally or by certified mail.

2. Notice of Non Displacement: As soon as feasible when the rehabilitation application has been approved, the tenant will be informed that they will not be permanently displaced and that they are eligible for temporary relocation benefits because of lead based paint mitigation or substantial rehabilitation, or reconstruction of their unit. The tenant will also again be cautioned not to move for personal reasons during rehabilitation, or risk losing relocation 139
Town of Paradise Housing Rehabilitation Guidelines Page 34 assistance. See Appendix B for sample notice to be delivered personally or by certified mail.

3. Disclosure to Occupants of Temporary Relocation Benefits: This form is completed to document that the Sponsor is following it’s adopted temporary relocation plan for owner occupants and tenants. See Appendix C for a copy of the disclosure form.

4. Other Relocation/Displacement Notices: The above three notices are required for temporary relocation. If the Sponsor is attempting to provide permanent displacement benefits then there are a number of other forms which are required. Staff will consult HUD’s Relocation Handbook 1378 and ensure that all the proper notices are provided for persons who are permanently displaced as a result of housing rehabilitation activities funded by CDBG or other federal programs.
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APPENDIX A
Dear ,
On (date) , (property owner) submitted an application to the for financial assistance to rehabilitate the building which you occupy at (address) .

This notice is to inform you that, if the assistance is provided and the building is rehabilitated, you will not be displaced. Therefore, we urge you not to move anywhere at this time. (If you do elect to move for reasons of your choice, you will not be provided relocation assistance.) If the application is approved and Federal assistance is provided for the rehabilitation, you will be able to lease and occupy your present apartment (or another suitable, decent, safe and sanitary apartment in the same building) upon completion of the rehabilitation. Of course, you must comply with standard lease terms and conditions.

After the rehabilitation, your initial rent, including the estimated average monthly utility costs, will not exceed the greater of (a) your current rent/average utility costs, or (b) 30 percent of your gross household income. If you must move temporarily so that the rehabilitation can be completed, suitable housing will be made available to you for the temporary period, and you will be reimbursed for all reasonable extra expenses, including all moving costs and any increase in housing costs.

Again, we urge you not to move. If the project is approved, you can be sure that we will make every effort to accommodate your needs. Because Federal assistance would be involved, you would be protected by the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended.

This letter is important and should be retained. You will be contacted soon. In the meantime, if you have any questions about our plans, please contact (name) , (title) , at (telephone number), (address) .

Sincerely,
(name)
(title)
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APPENDIX B
(date)
Dear :

On (date) , we notified you that the owner of your building had applied for assistance to make extensive repairs to the building. On (date) , the owner's request was approved, and the repairs will begin soon.

This is a notice of non-displacement. You will not be required to move permanently as a result of the rehabilitation. This notice guarantees you the following:

1. You will be able to lease and occupy your present apartment [or another suitable, decent, safe and sanitary apartment in the same building/complex] upon completion of the rehabilitation.

Your monthly rent will remain until after construction is completed. If increased after construction is done, your new rent and estimated average utility costs will not exceed local fair market rents for your community. Of course, you must comply with all the other reasonable terms and conditions of your lease.

2. If you must move temporarily so that the repairs can be completed, you will be reimbursed for all of your extra expenses, including the cost of moving to and from the temporarily occupied unit and any additional housing costs. The temporary unit will be decent, safe and sanitary, and all other conditions of the temporary move will be reasonable.

Since you will have the opportunity to occupy a newly rehabilitated apartment, I urge you not to move. (If you do elect to move for your own reasons, you will not receive any relocation assistance.) We will make every effort to accommodate your needs. Because Federal assistance is involved, you are protected by the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended.

If you have any questions, please contact (name) , (title), at (phone #) , (address) . Remember; do not move before we have a chance to discuss your eligibility for assistance. This letter is important to you and should be retained.

Sincerely,
(name and title)
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Town of Paradise Housing Rehabilitation Guidelines Page 37

APPENDIX C

DISCLOSURE TO OCCUPANT OF TEMPORARY RELOCATION BENEFITS Top to be completed at time of loan application submittal or Home Visit Property Address:
__ Rental Unit __Owner-Occupied Unit
The rehabilitation loan specialist working on behalf of the City/County of has explained the temporary relocation services and benefits available under the current rehabilitation program relocation plan.

I/we have been advised that the City/County of rehabilitation construction specialist will inform me if I need to be temporarily relocated and will to assist me with scheduling any necessary moves and answer any questions about assistance as needed.

Acknowledged:

Occupant Signature Date Occupant Signature Date
Complete this at time of acceptance of Work Write Up with initials by occupant The rehabilitation construction specialist for the City/County of has explained the Rehabilitation Scope of Work for our house and I/we agree that it will:
____ Not require I/we to be relocated. (If initialed then STOP here and sign bottom.) ____ Yes, I/we need to be temporarily relocated. (Complete rest of form if initialed.) Start date and duration of relocation:
____ Starting on or about we will move for all or part of the rehabilitation project.

Approximate length of temporary relocation: Number of days.

For temporary relocation, I/We elect to (check all that apply):
____ Relocate with friends and family.
____ Relocate into a suitable temporary housing unit identified by rehab specialist. ____ Relocate furnishings only into a temporary storage unit. ____ I/We have been told what our relocation benefits are and elect Not to be reimbursed for any eligible relocation expenses.
____ I/We have been told what our relocation benefits are and want to be reimbursed for:

By signing, occupant(s) acknowledge receipt of copy of this form:

Occupant Signature Date Occupant Signature Date
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Town of Paradise Housing Rehabilitation Guidelines Page 38

ATTACHMENT F

LOAN SERVICING POLICIES AND PROCEDURES

FOR THE TOWN OF PARADISE
The Town of Paradise, hereafter called “Sponsor,” has adopted these policies and procedures in order to preserve its financial interest in properties, whose “Borrowers” have been assisted with public funds. The Sponsor will to the greatest extent possible follow these policies and procedures, but each loan will be evaluated and handled on a case-by-case basis. The Sponsor has formulated this document to comply with state and federal regulations regarding the use of these public funds and any property restrictions, which are associated with them.

The policies and procedures are broken down into the follow areas: 1) making required monthly payments or voluntary payments on a loan’s principal and interest; 2) required payment of property taxes and insurance; 3) required Request for Notice of Default on all second mortgages; 4) loans with annual occupancy restrictions and certifications 5) required noticing and limitations on any changes in title or use of property; 6) required noticing and process for requesting a subordination during a refinance; 7) processing of foreclosure in case of default on the loan.

1. Loan Repayments:

The Sponsor will collect monthly payments from those borrowers who are obligated to do so under Notes which are amortized promissory notes. Late fees will be charged for payments received after the assigned monthly date.

For Notes which are deferred payment loans, the Sponsor must accept voluntary payments on the loan. Loan payments will be credited to principal. The Borrower may repay the loan balance at any time with no penalty.

2. Payment of Property Taxes and Insurance:

As part of keeping the loan from going into default, Borrower must maintain property insurance coverage naming the Sponsor as loss payee. Except for HOME-funded loans, if Borrower fails to maintain the necessary insurance, the Sponsor may take out force placed insurance to cover the property while the Borrower puts a new insurance policy in place. All costs for installing the necessary insurance will be added to the loan balance at time of installation of Borrower’s new insurance.

When a property is located in a 100-year floodplain, the Borrower will be required to carry the necessary flood insurance. A certificate of insurance for flood and for standard property insurance naming the Town as a lender loss payee will be required at close of escrow. The Sponsor will verify the insurance on an annual basis.

Property taxes must be kept current during the term of the loan. If the Borrower fails to maintain payment of property taxes then the Sponsor may pay the taxes current and add the balance of the tax payment plus any penalties to the balance of the loan (not permissible when funded with HOME). Wherever possible, the Sponsor encourages Borrower to have impound accounts set up with their first mortgagee wherein they pay their taxes and insurance as part of their monthly mortgage payment.

3. Required Request for Notice of Default:
144
Town of Paradise Housing Rehabilitation Guidelines Page 39 When the Borrower’s loan is in second position behind an existing first mortgage, it is the Sponsor's policy to prepare and record a "Request for Notice of Default" for each senior lien in front of Sponsor’s loan. This document requires any senior lienholder listed in the notice to notify the Sponsor of initiation of a foreclosure action. The Sponsor will then have time to contact the Borrower and assist them in bringing the first loan current. The Sponsor can also monitor the foreclosure process and go through the necessary analysis to determine if the loan can be made whole or preserved. When the Sponsor is in a third position and receives notification of foreclosure from only one senior lienholder, it is in their best interest to contact any other senior lienholders regarding the status of their loans.

4. Annual Occupancy Restrictions and Certifications:

On owner-occupant loans the Sponsor may require that Borrowers submit utility bills and/or other documentation annually to prove occupancy during the term of the loan. For CDBG, some loans may have income and housing cost evaluations, which require a household to document that they are not able to make repayments, typically every five years. These loan terms are incorporated in the original note and deed of trust. On HOME-funded loans, annual occupancy verification will occur between January 1st and 15th of each year for the term of the loan.

5. Required Noticing and Restrictions on Any Changes of Title or Occupancy:

In all cases where there is a change in title or occupancy or use, the Borrower must notify the Sponsor in writing of any change. Sponsor and Borrower will work together to ensure the property is kept in compliance with the original Program terms and conditions such that it remains available as an affordable home for low income families. These types of changes are typical when Borrowers do estate planning (adding a relative to title) or if a Borrower dies and property is transferred to heirs or when the property is sold or transferred as part of a business transaction. In some cases the Borrower may move and turn the property into a rental unit without notifying the Sponsor. Changes in title or occupancy must be in keeping with the objective of benefit to low-income households (below 80 percent of AMI).

Change from owner-occupant to owner-occupant occurs at a sale. When a new owner-occupant is not low-income, the loan is not assumable and the loan balance is immediately due and payable. If the new owner-occupant qualifies as low-income, the purchaser may either pay the loan in full or assume all loan repayment obligations of the original owner-occupant, subject to the approval of the Sponsor’s Loan Committee (depends on the HCD program).

If a transfer of the property occurs through inheritance, the heir (as owner-occupant) may be provided the opportunity to assume the loan at an interest rate based on household size and household income, provided the heir is income eligible. If the heir intends to occupy the property and is not low-income, the balance of the loan is due and payable. All such changes are subject to the review and approval of the Sponsor’s Loan Committee.

If the owner converts any assisted unit from owner-occupied to rental, the loan is due in full.

Conversion to use other than residential use is not allowable where the full use of the property is changed from residential to commercial or other. In some cases, Borrowers may request that the Sponsor allow for a partial conversion where some of the residence is used for a business but the household still resides in the property. Partial conversions can be allowed if it is reviewed and approved by any and all agencies required by local statute. If the use of the property is converted to a fully non-residential use, the loan balance is due and payable. 145
Town of Paradise Housing Rehabilitation Guidelines Page 40

6. Requests for Subordinations:

When a Borrower wishes to refinance the property, they must request a subordination request to the Sponsor. The Sponsor will subordinate their loan only when there is no “cash out” as part of the refinance. Cash out means there are no additional charges on the transaction above loan and escrow closing fees. There can be no third-party debt payoffs or additional encumbrance on the property above traditional refinance transaction costs. Furthermore, the refinance should lower the housing cost of the household with a lower interest rate and the total indebtedness on the property should not exceed the current market value.

Upon receiving the proper documentation from the refinance lender, the request will be considered by the loan committee for review and approval. Upon approval, the escrow company will provide the proper subordination document for execution and recordation by the Sponsor.

7. Process for Loan Foreclosure:

Upon any condition of loan default: 1) non-payment; 2) lack of insurance or property tax payment; 3) change in title or use without approval; or 4) default on senior loans, the Sponsor will send out a letter to the Borrower notifying them of the default situation. If the default situation continues, the Sponsor may start a formal process of foreclosure.

When a senior lienholder starts a foreclosure process and the Sponsor is notified via a Request for Notice of Default, the Sponsor, who is the junior lienholder, may cancel the foreclosure proceedings by "reinstating" the senior lienholder. The reinstatement amount or payoff amount must be obtained by contacting the senior lienholder. This amount will include all delinquent payments, late charges and fees to date. Sponsor must confer with Borrower to determine if, upon paying the senior lienholder current, the Borrower can provide future payments. If this is the case, then the Sponsor may cure the foreclosure and
add the costs to the balance of the loan with a Notice of Additional Advance on the existing note.

If the Sponsor determines, based on information on the reinstatement amount and status of Borrower, that bringing the loan current will not preserve the loan, then staff must determine if it is cost effective to protect their position by paying off the senior lienholder in total and restructure the debt such that the unit is made affordable to the Borrower. If the Sponsor does not have sufficient funds to pay the senior lienholder in full, then they may choose to cure the senior lienholder and foreclose on the property themselves. As long as there is sufficient value in the property, the Sponsor can afford to pay for the foreclosure process and pay off the senior lienholder and retain some or all of their investment.

If the Sponsor decides to reinstate, the senior lienholder will accept the amount to reinstate the loan up until five (5) days prior to the set "foreclosure sale date." This "foreclosure sale date" usually occurs about four (4) to six (6) months from the date of recording of the "Notice of Default." If the Sponsor fails to reinstate the senior lienholder before five (5) days prior to the foreclosure sale date, the senior lienholder would then require a full pay off of the balance, plus costs, to cancel foreclosure.

If the Sponsor determines the reinstatement and maintenance of the property not to be cost effective and allows the senior lienholder to complete foreclosure, the Sponsor's lien may be eliminated due to insufficient sales proceeds.

Sponsor as Senior Lienholder
When the Sponsor is first position as a senior lienholder, active collection efforts will begin on any 146
Town of Paradise Housing Rehabilitation Guidelines Page 41 loan that is 31 or more days in arrears. Attempts will be made to assist the homeowner in bringing and keeping the loan current. These attempts will be conveyed in an increasingly urgent manner until loan payments have reached 90 days in arrears, at which time the Sponsor may consider foreclosure.

Sponsor’s staff will consider the following factors before initiating foreclosure:
1) Can the loan be cured and can the rates and terms be adjusted to allow for affordable payments such that foreclosure is not necessary?
2) Can the Borrower refinance with a private lender and pay off the Sponsor? 3) Can the Borrower sell the property and pay off the Sponsor? 4) Does the balance warrant foreclosure? (If the balance is under $5,000, the expense to foreclose may not be worth pursuing.)
5) Will the sales price of home "as-is" cover the principal balance owing, necessary advances, (maintain fire insurance, maintain or bring current delinquent property taxes, monthly yard maintenance, periodic inspections of property to prevent vandalism, etc.) foreclosure, and marketing costs?
If the balance is substantial and all of the above factors have been considered, the Sponsor may opt to initiate foreclosure. The Borrower must receive, by certified mail, a thirty-day notification of foreclosure initiation. This notification must include the exact amount of funds to be remitted to the Sponsor to prevent foreclosure (such as, funds to bring a delinquent BMIR current or pay off a DPL).

When the process is completed, and the property has "reverted to the beneficiary" at the foreclosure sale, the Sponsor could sell the home themselves under a homebuyer program or use it for an affordable rental property managed by a local housing authority or use it for transitional housing facility or other eligible use. The Sponsor could contract with a local real estate broker to list and sell the home and use those funds for Program income-eligible uses. 147
Town of Paradise Housing Rehabilitation Guidelines Page 42

ATTACHMENT G
TOWN OF PARADISE’S FORECLOSURE POLICY
Sponsor As Junior Lienholder
It is the Town of Paradise’s (Sponsor’s) policy to prepare and record a "Request for Notice" on all junior liens (any lien after the first position) placed on properties financed by a loan.

This document requires any senior lienholder to notify the Sponsor of initiation (recordation of a "Notice of Default") of a foreclosure only. This is to alert the junior lienholder that they are to monitor the foreclosure with the senior lienholder. When the Sponsor is in a third position and receives notification of foreclosure from only one senior lienholder, it would be in their best interest to contact both senior lienholders regarding the status of their loans.

The junior lienholder may cancel the foreclosure proceedings by "reinstating" the senior lienholder.

The reinstatement amount must be obtained by contacting the senior lienholder. This amount will include all delinquent payments, late charges, advances (fire insurance premiums, property taxes, property protection costs, etc.), and foreclosure costs (fees for legal counsel, recordings, certified mail, etc.)
Once the Sponsor has the information on the reinstatement amount, staff must then determine if it is cost effective to protect their position by reinstating the senior lienholder, keeping them current by submitting a monthly payment thereafter, foreclosing on the property possibly resulting in owning the property at the end of foreclosure, protecting the property against vandalism, and paying marketing costs (readying the home for marketing, paying for yard maintenance, paying a real estate broker a sales commission).

Sponsor As Senior Lienholder
When the Sponsor is in a first position, or the senior lienholder, active collection efforts will begin on any loan that is 31 or more days in arrears. Attempts will be made to assist the homeowner in bringing and keeping the loan current. These attempts will be conveyed in an increasingly urgent manner until loan payments have reached 90 days in arrears, at which time the Sponsor may consider foreclosure. Sponsor staff will consider the following factors before initiating foreclosure:
1) Can the loan be cured (brought current or paid off) by the owner without foreclosure? 2) Can the owner refinance with a commercial lender and pay off the Sponsor? 3) Can the owner sell the property and pay off the Sponsor? 4) Does the balance warrant foreclosure? (If the balance is under $5,000, the expense to foreclose may not be worth pursuing.)
148
Town of Paradise Housing Rehabilitation Guidelines Page 43 5) Will the sales price of home "as-is" cover the principal balance owing, necessary advances, (maintain fire insurance, maintain or bring current delinquent property taxes, monthly yard maintenance, periodic inspections of property to prevent vandalism, etc.) foreclosure, and marketing costs?
If the balance is substantial and all of the above factors have been considered, the Sponsor may opt to initiate foreclosure. The owner must receive, by certified mail, a thirty-day notification of foreclosure initiation. This notification must include the exact amount of funds to be remitted to the Sponsor to prevent foreclosure (such as, funds to bring a delinquent BMIR current or pay off a DPL).

At the end of thirty days, the Sponsor should contact a reputable foreclosure service or local title company to prepare and record foreclosure documents and make all necessary notifications to the owner and junior lienholders. The service will advise the Sponsor of all required documentation to initiate foreclosure (Note and Deed of Trust usually) and funds required from the owner to cancel foreclosure proceedings. The service will keep the Sponsor informed of the progress of the foreclosure proceedings. When the process is completed, and the property has "reverted to the beneficiary" at the foreclosure sale, the Sponsor would then contact a real estate broker to market the home.
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Town of Paradise Housing Rehabilitation Guidelines Page 44

ATTACHMENT H

CERTIFICATION OF OCCUPANCY

TOWN OF PARADISE
I/we declare as follows:
(Please Print Occupant’s Name(s))
That I/we am/are currently occupying as my/our principal place of residence the real property commonly known as:
(Address)
(City, State, Zip code)
Daytime Phone Number:

Executed on______________________, 20____, at ___________________, CA (Date) (City)
I/we declare under penalty of perjury that the foregoing is true and correct.

Signature(s) of all occupants:

Occupant: _______________________________________________________________ Occupant: _______________________________________________________________ Occupant: _______________________________________________________________ Occupant: _______________________________________________________________ Occupant: ___________________________________________________________ 150
Town of Paradise Housing Rehabilitation Guidelines Page 45

ATTACHMENT I

LEAD-BASED PAINT

VISUAL ASSESSMENT, NOTICE OF PRESUMPTION, AND HAZARD REDUCTION FORM Section 1: Background Information
Property Address: No LBP found or LBP exempt 
Select one: Visual Assessment  Presumption  Hazard Reduction  Section 2: Visual Assessment. Fill out Sections 1, 2, and 6. If paint stabilization is performed, also fill out Sections 4 and 5 after the work is completed.

Visual Assessment Date: Report Date:

Check if no deteriorated paint found 
Attachment A: Summary where deteriorated paint was found. For multi-family housing, list at least the housing unit numbers and common areas and building components (including type of room or space, and the material underneath the paint).

Section 3: Notice of Presumption. Fill out Sections 1, 3, 5, and 6. Provide to occupant w/in 15 days of presumption.

Date of Presumption Notice:

Lead-based paint is presumed to be present  and/or Lead-based paint hazards are presumed to be present  Attachment B: Summary of Presumption: For multi-family housing, list at least the housing unit numbers and common areas, bare soil locations, dust-lead location, and or building components (including type of room or space, and the materials underneath the paint) of lead-based paint and/or hazards presumed to be present.

Section 4: Notice of Lead-Based Paint Hazard Reduction Activity. Fill out Sections 1, 4, 5, and 6. Provide to occupant w/in 15 days of after work completed.

Date of Hazard Reduction Notice:

Initial Hazard Reduction Notice? Yes  No  Start & Completion Dates:

If “No”, dates of previous Hazard Reduction Activity Notices:

Attachment C: Activity locations and types. For multi-family housing, list at least the housing unit numbers and common areas (for multifamily housing), bare soil locations, dust–lead locations, and/or building components (including type of room or space, and the material underneath the paint), and the types of lead-based paint hazard reduction activities performed at the location listed.

Attachment D: Location of building components with lead-based paint remaining in the rooms, spaces or areas where activities were conducted.

Attachment E: Attach clearance report(s), using DHS form 8552 (and 8551 for abatement activities) Section 5: Resident Receipt of Notice for Presumption or Lead-Based Paint Hazard Reduction Activity and Acknowledgement of Receipt of pamphlet Protection Your Family from Lead in Your Home.

Printed Name: Signature: Date:

Section 6: Contact Information Organization:

Contact Name: Contact Signature:

Date: Address: Phone:
151

Town of Paradise
Council Agenda Summary
Date: October 8, 2024
Agenda Item: 5(a)
ORIGINATED BY: Susan Hartman, Community Development Director – Planning & Wastewater
REVIEWED BY: Jim Goodwin, Town Manager
SUBJECT: Consider Introducing an Ordinance Amending Text Regulations within Paradise Municipal Code Title 17
(Zoning) Relating to Electronic Changeable Message Signs

LONG TERM
RECOVERY PLAN:

No
COUNCIL ACTION REQUESTED:

1. Conduct the duly noticed and scheduled first public hearing and concur with the project “CEQA determination” finding presented and considered by the Planning Commission on September 17, 2024, and embodied within Planning Commission Resolution No 2024-02; and,

2. Waive the first reading of Town Ordinance No. 638 and read by title only; and,

3. Introduce Town Ordinance No. 638, “An Ordinance Amending Text Regulations within Paradise Municipal Code Title 17 [Zoning] Relative to Electronic Changeable Message Sign Regulations”; or,

4. Provide alternative direction to town staff.

Background:

At the July 9, 2024 Town Council meeting, staff and council members had a discussion as to the possibility of amending the existing sign ordinance to allow for expanded use of electronic changeable message signs in non-residential zones around town. Currently, electronic message signs are only permitted for community service land uses in the Community Facilities (C-F) and Community Services (C-S) zoning districts. Different standards, from jurisdictions already regulating electronic message signs, were reviewed and discussed. At the end of the conversation, staff was directed to prepare a draft Ordinance for Council consideration before formally agendizing the Ordinance for Planning Commission review.

At the August 13, 2024 Town Council meeting, staff and council members reviewed a draft ordinance which sought to incorporate items and priorities discussed at the earlier July meeting.

Council concurred with staff’s proposed text amendments and a majority of the Council were still interested in moving the amendments forward, through the Planning Commission, for eventual introduction and adoption.

The Paradise Planning Commission reviewed and discussed the draft ordinance at their regularly scheduled meeting and public hearing on September 17, 2024. Upon conclusion of its public hearing on the matter, the Planning Commission adopted the resolution, recommending Town Council adoption, as presented. [Planning Commission Resolution No. 2024-02] 152
Analysis:

The Planning Commission recommended text amendments that, if agreed upon and adopted by the Town Council, would allow the expanded use of electronic changeable message signs within the C-C and I-S zoning districts subject to multiple development standards such as:
 For zones outside of the C-S & C-F, a use permit (public hearing) will be required when the parcel is abutting a residentially zoned property or when an existing sign structure is being retrofitted that exceeds the size/height limits for electronic signs (40 sq ft and 6’ tall).  Electronic message signs will only be potentially expanded into the C-C (Community Commercial) and I-S (Industrial Service) zones. No message signs will be permitted in the downtown C-B (Central Business) zone.
 To be consistent with the town’s current lighting standards which require that lighted fixtures minimize glare and illumination onto neighboring parcels, new electronic sign faces will require an automatic dimmer during nighttime hours.  Only one electronic message sign will be allowed per site.  Electronic message signs will not be permitted as roof signs or billboard signs.  Message shall stay static for a minimum of 8 seconds with a transition during messages of 2 seconds or less with no flashing
Attached with this council agenda summary for your consideration and recommended introduction is an ordinance prepared by town staff that reflect the recommended PMC text amendments. The proposed new text within the ordinance is shown as shaded and text proposed to be deleted is shown in strikethrough text.

The Planning Director has determined that the nature of the proposed/recommended text amendments is minor in that the possibility of adoption and implementation would not result in a direct and significantly adverse effect upon the environment. Thus, the amendments can be found to be exempt from the requirements of the California Environmental Quality Act (CEQA), pursuant to CEQA Guidelines section 15061(b)(3) [General Rule Exemption].

Lastly, for your convenience and use, town staff has attached other documents related to this agenda item.

Financial Impact: There is no financial impact associated with the first reading and introduction of the ordinance.

Attachments:

1. Copy of the notice of public hearing for the proposed text amendments.

2. Copy of Notice of Exemption dated August 26, 2024.

3. Copy of Planning Commission Resolution No. 2024-02, “A Resolution of the Paradise Planning Commission Recommending Town Council Adoption of Text Amendments to Title 17 of the Paradise Municipal Code Relative to Electronic Changeable Message Signs within the Town of Paradise”.

4. Town of Paradise proposed Ordinance No. 638, “An Ordinance Amending Text Regulations within Paradise Municipal Code Title 17 [Zoning] Relative to Electronic Changeable Message Sign Regulations”.
153

TOWN OF PARADISE

NOTICE OF PUBLIC HEARING

PARADISE TOWN COUNCIL
NOTICE IS HEREBY GIVEN by the Paradise Town Council that a public hearing will be held on Tuesday, October 8, 2024 at 6:00 p.m., or as soon thereafter as possible, in the Town Hall Council Chambers, 5555 Skyway, Paradise, California, regarding the following matter:
a. Item determined to be exempt from environmental review under CEQA Guidelines section 15061(b)(3) (General rule exemption)
PARADISE MUNICIPAL CODE: Town Council consideration of a Planning Commission Resolution recommending Town Council approval of proposed text amendments to the zoning regulations in Paradise Municipal Code (PMC) Title 17 (Zoning Ordinance). If adopted by the Town Council, the amendments would expand the existing use of electronic changeable message signs into the Community Commercial and Industrial Service zoning districts.

The project file is available for public inspection at Town Hall by appointment. If you challenge this matter in court, you may be limited to raising only those issues you or someone else raised at the public hearings described in this notice, or in written correspondence delivered to the Town Clerk at, or prior to, the public hearing. For further information please contact the Planning Director, Building Resiliency Center, 6295 Skyway, Paradise, CA (530) 872-6291, extension 424.

Melanie Elvis
Town Clerk/Elections Official
154

NOTICE OF EXEMPTION
To: File
From: Town of Paradise, Development Services Department, Planning Division, 6295 Skyway, Paradise, CA 95969
Project Title: PMC Title 17 [Zoning] Text Amendments
Project Applicant: Town of Paradise
Project Location: N/A
Project Description: Amendments to the Town Sign Ordinance relative to electronic changeable message signs and expanding their use into the Community Commercial and Industrial Service zoning districts.

Approving Public Agency: Town of Paradise
Person or Agency
Carrying Out Project: Town of Paradise
Exempt Status: Ministerial (Section 15268)
Emergency Project (Section 15269)
Categorical Exemption (Section 15302)
__X__ General Rule Exemption (Section 15061)
Reason for Exemption: The amendments do not constitute a project under CEQA, no physical activity is planned and there is no
possibility of a significant environmental effect.

Contact Person: Susan Hartman, Planning Director
(530) 872-6291 x424
Signature:

Date: 08/26/2024_____________
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157
158
159
160
161

TOWN OF PARADISE
ORDINANCE NO. ____

AN ORDINANCE AMENDING TEXT REGULATIONS WITHIN
PARADISE MUNICIPAL CODE TITLE 17 [ZONING] RELATIVE TO ELECTRONIC CHANGEABLE

MESSAGE SIGN REGULATIONS
SECTION 1. The definition of the term “Sign, Electronic Changeable Message” in Paradise Municipal Code Chapter 17.04 shall be added to read as follows:

Sign, electronic changeable message. “Electronic changeable message sign” means a SIGN with a fixed or changing display composed of a series of lights, including LEDs and LCDs, that may be changed through electronic means, but not including time and temperature displays.

SECTION 2. Amend the excepted sign listings in Section 17.37.300.A [Prohibited Signs] to read:

The following signs are prohibited in all zones, except as specifically allowed or limited herein:

A. Animated signs, excepting the following specifically permitted types of animation:

1. Barber poles not exceeding three (3) feet in height nor projecting more than one foot from a building;

2. Situated on "CC" (community commercial) zoned properties any time and temperature indicators included as part of a business sign and maintained in working order;

32. Electronic changeable message signs for public, quasi-public and community service land uses located upon property situated within the C-S or C-F zones as permitted in Section 17.37.670.

SECTION 3. A new Section 17.37.670 shall be added to Paradise Municipal Code Chapter 17.37 [Sign Regulations] to read as follows:

Section 17.37.670 – Electronic changeable message signs.

A) Only permitted for public, quasi-public and community service land uses located upon property situated within the C-S or C-F zones and for non-residential land uses within the C-C and I-S zones.

B) A maximum of one electronic changeable message sign is permitted per site with a maximum electronic area of 40 square feet. New freestanding electronic changeable message signs shall have a maximum height of 6 feet.

C) Messages shall be static and unanimated for a minimum of 8 seconds. 162
D) Transition during messages shall be 2 seconds or less and shall either be instantaneous or fade in/out. Flashing is prohibited.

E) For signs in the C-C or I-S zones, adjacent to a residential zoning district or where an existing sign cabinet is proposed to be retrofitted and the existing sign exceeds the size and/or height limits for an electronic changeable message sign, a CONDITIONAL USE PERMIT will be required.

F) Electronic changeable message sign faces permitted after the effective date of the ordinance codified in this chapter shall be equipped with a photocell, timer, or other similar device which automatically dims the display during nighttime hours to prevent glare impacts.

G) Electronic changeable message signs permitted after the effective date of the ordinance codified in this chapter shall not be brighter than the illumination limit recommended by the International Sign Association (ISA) for Electronic Message Center signs, or 0.3 footcandles above ambient light when measured at the recommended distance as set forth by the ISA.

H) Electronic changeable message signs are not permitted to be installed as ROOF SIGNS or operate as BILLBOARDS.

SECTION 4. Amend the text in Section 17.37.600.A [Permitted signs (billboards)] to read:

17.37.600 Permitted signs (billboards).

A. Billboards may be permitted in the C-C, C-F, C-S and I-S zoning districts subject to town approval and issuance of an administrative permit in addition to the following limitations:

1. The sign face (poster panel) shall be limited to a display surface not to exceed one hundred (100) square feet.

2. Not more than one single-sided or double-sided billboard panel shall be located at any site.

3. Billboards shall not exceed sixteen (16) feet in height.

4. Billboards shall not be closer than fifty (50) feet from the centerline of a street unless the administrative permit provides for installation closer than fifty (50) feet.

5. Billboard sites shall be located at least five hundred (500) radial feet distance from any existing billboard of a size greater than one hundred (100) square feet; three hundred (300) radial feet from any other billboard. Separation distance requirements for benches displaying advertising other than those benches determined to be exempt from the provisions of this chapter shall be determined as a condition of an administrative permit approval, if required.
163

6. Billboards shall not be permitted to be established upon properties located within the town adopted "Downtown Revitalization Master Plan Area.

7. Billboards shall not be electronic changeable message signs.

SECTION 5. Amend the table in Section 17.37.700 [Business signs – Regulations in all zoning districts] to read:

Table 17.37.700
Regulations for Business Signs in All Districts
(The maximum allowable sizes and numbers are shown)
Type of Sign Zones Regulations
Roof signs R-C, AG-10, AG-20, AR-1, AR-3, AR-5, RR-1,
RR-2/3, RR-1/2, TR-1, TR-1/2, TR-1/3, M-F, NC, C-S, C-F Not permitted
C-B, C-C 1.0 square foot of sign area per linear foot of roof length; not above highest point of roof
or parapet; electronic changeable message
signs not permitted
I-S 1.0 square foot of sign area per linear foot of
roof length; not above highest point of roof
or parapet; electronic changeable message
signs not permitted
Projecting signs R-C, AG-10, AG-20, AR-1, AR-3, AR-5, RR-1, RR-2/3, RR-1/2, TR-1, TR-1/2, TR-1/3, M-F
Not permitted
C-S, C-F 16 square feet maximum; 5 feet from wall
N-C, C-B 16 square feet maximum; 5 feet from wall
C-C, I-S 32 square feet maximum; 5 feet from wall
Flush (wallmounted) signs R-C, AG-10, AG-20, AR-1, AR-3, AR-5, RR-1, RR-2/3, RR-1/2, TR-1, TR-1/2, TR-1/3
10% of the area of the building wall on which
the sign is established; 25 percent of wall
length
C-S, N-C, C-B, C-F 1.0 square foot of sign area per linear foot of wall length; 50 percent of wall length
C-C, I-S 1.5 square feet of sign area per linear foot of wall length; 50 percent of wall length
Freestanding
signs
R-C, AG-10, AG-20, AR-1, AR-3, AR-5, RR-1,
RR-2/3, RR-1/2, TR-1, TR-1/2, TR-1/3
Refer to identification signs section

17.37.400.G.

N-C, C-B, C-S, C-F, M-F 40 square feet; maximum 6 feet height; 1 per site
C-C, I-S (excepting scenic highway corridors) Monument, post or pole, 100 square feet, maximum height 10 feet (monument), and
16 feet (post, pole or pylon); 2 per site
Scenic highway corridors Monument or post, 100 square feet, maximum height 8 feet; 1 per site
164
SECTION6. CEQA COMPLIANCE. The Town Council finds and determines that the enactment of this Ordinance is exempt from the requirements of the California Environmental Quality Act (CEQA), pursuant to CEQA Guidelines section 15061(b)(3) (General Rule Exemption).

SECTION 7. This ordinance shall take effect thirty (30) days after the date of its passage. Before the expiration of fifteen (15) days after its passage, this ordinance or a summary thereof shall be published in a newspaper of general circulation published and circulated within the Town of Paradise along with the names of the members of the Town Council of Paradise voting for and against same.

PASSED AND ADOPTED by the Town Council of the Town of Paradise, County of Butte, State of California, on this day of , 2024 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
__________________________________
Ronald Lassonde, Mayor
ATTEST:
___________________________________
Melanie Elvis, Town Clerk/Elections Official
APPROVED AS TO FORM:
________________________________
Scott E. Huber, Town Attorney
165

Town of Paradise
Council Agenda Summary
Date: October 8, 2024
Agenda Item: 6(a)
ORIGINATED BY: Aimee Beleu, Finance Director / Town Treasurer REVIEWED BY: Jim Goodwin, Town Manager
SUBJECT: Fiscal Year 2022/23 Financial Statement Audit
COUNCIL ACTION REQUESTED:

1. Following the Town Council’s review of the Fiscal Year 2022/23 financial statement audit report, receive and file the Report, as submitted. (ROLL CALL VOTE) Background:

Richardson & Company, LLP has completed the annual audit for Fiscal Year 2022/23. Richardson & Company indicated that the financial statements present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the Town of Paradise as of June 30, 2023.

The team of auditors that Town staff worked with this year were professional and thorough in their review of transactions and presentation of financial statements. Their recommendations were thoughtful and will ultimately be helpful to the understanding of the Town’s financial position.

Town Management did a thorough analysis of the financial statements, and that analysis is included in the financial statements as “Management’s Discussion and Analysis” on pages 4 through 9. Council is encouraged to read the financial statements in their entirety, but staff has highlighted some key results and elements of the financial statements below.

Analysis:

Net Position
In the current year, the Town’s net position increased to $245 million as compared to the prior year at $225 million. The Town’s unrestricted and restricted cash and investments decreased to $188.9 million, primarily as a result of the Town’s plan of spending down Paradise Recovery of Operations (PRO) settlement reserves to supplement lost revenues. Prior to extraordinary items, accounts and interest receivables, prepaid items, and the advance to the Successor Agency increased to $1.69 million from $1.5 million in the prior year, which resulted primarily from an increase in accounts receivable activity during the prior fiscal year. The Town's rebuilding efforts and capital projects resulted in increased total capital assets to $62 million compared to $39 million in the prior year.

The Town reports $19.3 million of pension liability and pension related net deferred use of resources to its activities as compared to $24.3 million the prior year. The Town contracts with CalPERS for Pension benefits for its employees. The Town is making the required contributions 166
toward the long-term pension obligation just described. This obligation is being amortized over approximately a 25-year period.

Accounts payable increased to $5.5 million from $2.4 million in the prior fiscal year due to the increase in infrastructure construction for the rebuilding of the Town. Unearned revenues increased to $6.7 million from $5.2 million in the prior fiscal year. Unearned revenue sources include insurance claim advances, advances on grant funds awarded, and housing program insurance funds held for 2018 Camp Fire survivors. The Town's long-term liabilities due in more than one year increased to $47.9 million from $38.9 million in the prior year due primarily to investment losses on CalPERS plan assets.
2023 2022
ASSETS
Current and other assets $ 234,469,381 $ 237,542,924
Capital assets, net 62,480,689 39,464,712
TOTAL ASSETS 296,950,070 277,007,636
DEFERRED OUTFLOWS OF RESOURCES 15,155,061 9,411,708

LIABILITIES
Current and other liabilities 14,553,984 9,747,419
Long‑term liabilities 47,921,701 38,146,072
TOTAL LIABILITIES 62,475,685 47,893,491
DEFERRED INFLOWS OF RESOURCES 4,552,367 13,383,734

NET POSITION
Net investment in capital assets 59,280,800 38,708,134
Restricted 26,654,435 23,629,213
Unrestricted 159,141,844 162,804,772
TOTAL NET POSITION $245,077,079 $225,142,119
Table 1
GOVERNMENTAL ACTIVITIES NET POSITION AT JUNE 30, 2023
167
General Fund Highlights
The Camp Fire had immediate and long-lasting impacts to the finances of the general fund. As the effects were unprecedented, the Town Council approved budget revisions for material changes as they were identified. A mid-year budget review was completed which reflected revised revenues, personnel costs and other operating expenditures when needed.

Exclusive of the extraordinary items, the Town's general fund revenues changed significantly from the prior fiscal year, an increase of $14.6 million. Taxes and assessments provide most of the general fund's revenues. Lost property taxes and motor vehicle in-lieu were back filled by the State of California, but other taxes and revenues sources were not. The predominant change in revenues for the Town of Paradise was in the Tax and Assessments, Intergovernmental Revenues, and Use of Money and Property categories. The loss is due to an unrealized loss on investments that have not matured yet.

Expenses increased approximately 23% compared to the prior year. The primary categories of increase in expenses were related to public safety. Capital Outlays have increased as the Town continues to support significant rebuilding and infrastructure projects throughout Town and increase operational support to meet the needs of the community following the 2018 Camp Fire.

The ending general fund balance for June 30, 2023 is $204 million. Most importantly, unassigned reserves are $202.5 million. The unassigned reserves eliminated the amount of cash needed to be borrowed annually to fund operations. This is a significant improvement compared to six years ago when there were no unassigned reserves available.

Capital Assets
This year's major capital asset additions total $23 million, which includes $19 million to construction in process, with major additions to On System Roads, Early Warning System, Restoration of Dispatch, and the pre-construction development of the Paradise Sewer Project.

Other areas of investment were Infrastructure and Vehicles.

Table 3 below shows the $62.5 million total capital assets, net of depreciation.

2023 2022
Land $ 1,845,010 $ 1,845,010
Construction in Progress 38,071,755 18,936,733
Buildings and Improvements 2,057,965 1,466,400
Infrastructure 17,440,335 14,671,484
Machinery and Equipment 750,908 816,769
Vehicles 2,314,716 1,728,316
Total $ 62,480,689 $ 39,464,712
CAPITAL ASSETS AT YEAR‑END
(Net of Depreciation)
Table 3
168
Debt Outstanding
Bonds payable and capital leases continued to be reduced compared to the prior year as payments were made according to the applicable amortization schedules. The Town’s OPEB obligation increased from the prior year based upon assumption rate changes. Although the Town contributed towards the net pension liability as dictated by CalPERS, the net pension liability increased 70% based upon assumption rate changes. The Town has taken measures to mitigate the benefits in the future and the obligation is being amortized over a period of about 25 years.

Findings
On page 15 of Compliance Reports are finding for the FY22-23.

1. Large number of audit adjustments.

2. Audited Financial Statements and Single Audit were not submitted on time.

3. Schedule of Expenditures of Federal Awards (SEFA) was not submitted on time.

4. Federal Financial Report was not submitted on time.

5. SEFA expenditures were not directly billed to the federal grants but transferred into the funds.

Implementation of the corrective action plan has already been implemented. The predominant cause of the findings for FY22-23 year are related to staff turnover. We have now fully staffed the department and are making strides to create staffing levels warranted by the budget size of the town. Implementation of a more robust accounting code structure has been implemented during the FY23-24 year and can be seen directly within the FY24-25 budget.

Financial Impact:

The action to receive and file the Fiscal Year 2022/23 financial statement audit report does not result in a cost to the Town of Paradise. Recommendations contained in the management letter have no costs associated with implementation. The recommendations are procedural in nature and do not carry an implementation cost.
2023 2022
Bonds Payable: accrued interest $ 7,633,747 $ 8,315,670 Capital Leases 49,366 85,564
OPEB 11,791,874 13,433,488
Net pension liability 29,081,689 17,011,738
CDF retiree health vesting - 68,476
Compensated absences 528,776 446,042
Total Liabilities $ 49,085,452 $ 39,360,978
Table 4
OUTSTANDING DEBT AT JUNE 30, 2023
169

TOWN OF PARADISE
Audited Financial Statements and Supplemental Information June 30, 2023
170
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171

TOWN OF PARADISE
Audited Financial Statements and Supplemental Information June 30, 2023
Table of Contents
INDEPENDENT AUDITOR’S REPORT .................................................................................................... 1 Management’s Discussion and Analysis ....................................................................................................... 4

BASIC FINANCIAL STATEMENTS
GOVERNMENT-WIDE FINANCIAL STATEMENTS:

Government-wide Statement of Net Position ........................................................................................... 10 Government-wide Statement of Activities ............................................................................................... 11 FUND FINANCIAL STATEMENTS:

Governmental Funds:

Balance Sheet – Governmental Funds ................................................................................................... 12 Reconciliation of the Governmental Funds Balance Sheet to the Government-wide Statement of Net Position ...................................................................................... 14 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds ........................................................................................................................ 15 Reconciliation of the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances to the
Government-wide Statement of Activities .......................................................................................... 17 Fiduciary Funds:

Statement of Fiduciary Net Position ..................................................................................................... 18 Statement of Changes in Fiduciary Net Position ................................................................................... 19 Notes to the Basic Financial Statements .................................................................................................. 20

REQUIRED SUPPLEMENTARY INFORMATION
Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual (Budgetary Basis) – General Fund .................................................................... 52 Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual (Budgetary Basis) – Camp Fire 2018 Fund ....................................................... 53 Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual (Budgetary Basis) – Disaster Recovery Projects ................................................................................................................................................ 54 Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual (Budgetary Basis) – Highway Grants ................................................................ 55 Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual (Budgetary Basis) – Loan Funds ....................................................................... 56 Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual (Budgetary Basis) – CalHOME Grants ............................................................. 57 Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual (Budgetary Basis) – CDBG Grants Fund .......................................................... 58 Schedule of the Proportionate Share of the Net Pension Liability and Schedule of Contributions to the Pension Plan – (Unaudited) ............................................................ 59 Schedule of Changes in Net OPEB Liability and Related Ratios (Unaudited) ......................................................................................................................................... 60 Schedule of Contributions to the OPEB Plan (Unaudited) ..................................................................... 61 172

TOWN OF PARADISE
Audited Financial Statements and Supplemental Information June 30, 2023
Table of Contents

COMBINING STATEMENTS AND INDIVIDUAL FUND

STATEMENTS AND SCHEDULES
Non-Major Governmental Funds:

Combining Balance Sheet – Nonmajor Governmental Funds ............................................................... 62 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds .............................................................................. 64 Agency Funds:

Combining Statement of Fiduciary Assets and Liabilities – Custodial Funds ................................................................................................................................................... 66 Combining Statement of Changes in Fiduciary Assets and Liabilities – Custodial Funds ................................................................................................................................ 67 173
550 Howe Avenue, Suite 210
Sacramento, California 95825
Telephone: (916) 564-8727
Fax: (916) 564-8728
1 INDEPENDENT AUDITOR’S REPORT
To the Town Council
Paradise, California
Report on the Audit of the Financial Statements
Opinions
We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Town of Paradise, California (the Town) as of and for the year ended June 30, 2023 and the related notes to the financial statements, which collectively comprise the Town’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the Town as of June 30, 2023, and the respective changes in financial position for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Town and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Town’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. 174
To the Town Council
Paradise, California
2 Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists.

The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:
 Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
 Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Town’s internal control. Accordingly, no such opinion is expressed.
 Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.
 Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Town’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Budgetary Comparison for the General Fund and major Special Revenue Funds, Schedule of Proportionate Share of the Net Pension Liability and Schedule of Contributions, Schedule of Changes in Net OPEB Liability and Related Ratios and Schedule of Contributions to OPEB Plan be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. 175
To the Town Council
Paradise, California
3 We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Town’s basic financial statements. The accompanying combining and individual nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements are fairly stated, in all material respects, in relation to the basic financial statements as a whole.

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated September 13, 2024 on our consideration of the Town’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulation, contracts, and grant agreements and other matters.

The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Town’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Town’s internal control over financial reporting and compliance.

September 13, 2024
176

TOWN OF PARADISE

MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2023
4 As management of the Town of Paradise (the Town), we offer readers of the Town's basic financial statements this narrative overview and analysis of the financial activities of the Town as of and for the fiscal year ended June 30, 2023. We encourage readers to consider the information presented here in conjunction with the accompanying Independent Auditor's Report, the basic financial statements, and the accompanying notes to the financial statements.

USING THIS ANNUAL REPORT
This report consists of a series of financial statements. The Statement of Net Position and the Statement of Activities provide information about the activities of the Town as a whole and present a longer-term view of the Town’s finances. For governmental activities, the statements tell how these services were financed in the short-term as well as what remains for future spending. Fund financial statements report the Town’s operations in more detail than the government-wide statements by providing information about the Town’s most significant funds. The remaining statements provide financial information about activities for which the Town acts as a trustee or custodian for the benefit of those outside the government.

REPORTING THE TOWN AS A WHOLE
In the current year, the Town’s net position increased to $245 million as compared to the prior year at $225 million. The Town’s unrestricted and restricted cash and investments decreased to $188.9 million, primarily as a result of the Town’s plan of spending down Paradise Recovery of Operations (PRO) settlement reserves to supplement lost revenues. Prior to extraordinary items, accounts and interest receivables, prepaid items, and the advance to the Successor Agency increased to $1.69 million from $1.5 million in the prior year, which resulted primarily from an increase in accounts receivable activity during the prior fiscal year. The Town's rebuilding efforts and capital projects resulted in increased total capital assets to $62 million compared to $39 million in the prior year.

The Town reports $19.3 million of pension liability and pension related net deferred use of resources to its activities as compared to $24.3 million the prior year. The Town contracts with CalPERS for Pension benefits for its employees. The Town is making the required contributions toward the long-term pension obligation just described. This obligation is being amortized over approximately a 25-year period.

The Town's long-term liabilities due in more than one year increased to $47.9 million from $38.9 million in the prior year due primarily to investment losses on CalPERS plan assets. 177

TOWN OF PARADISE

MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2023
5 Table 2 on the next page shows another perspective of the net position of the Town. The Town’s total general revenues, which includes property taxes, sales taxes, other general revenue, and motor vehicle in-lieu totaling $11,534,515. The increase is due to unrealized gains on investments that have matured.

Total program revenues totaled $33.2 million, which increased from $22.6 million in the prior year.

Decreases in charges for services and operating contributions and grants were offset by increases in capital contributions and grants as the Town focuses efforts on long-term infrastructure rebuilding activities. The Town recognized a net gain of $2.7 million in extraordinary items, which is the result of ongoing FEMA public assistance claims.

Expenses decreased to $27.6 million compared to the prior year of $28.9 million. General Government and Public Safety decreased $4.7 million, whereas Community Development and Public Works combined increase was $3.45 million. Decreases and increases in these areas continue to support significant asset replacements, rebuilding and infrastructure projects throughout the Town to meet the needs of the community following the 2018 Camp Fire.
2023 2022
ASSETS
Current and other assets 234,469,381 $ 237,542,924 $
Capital assets, net 62,480,689 39,464,712
TOTAL ASSETS 296,950,070 277,007,636
DEFERRED OUTFLOWS OF RESOURCES 15,155,061 9,411,708

LIABILITIES
Current and other liabilities 14,553,984 9,747,419
Long‑term liabilities 47,921,701 38,146,072
TOTAL LIABILITIES 62,475,685 47,893,491
DEFERRED INFLOWS OF RESOURCES 4,552,367 13,383,734

TOWN OF PARADISE

MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2023
6 2023 2022

REVENUES
Program revenues
Charges for services $ 8,124,296 $ 8,124,315
Operating contributions & grants 7,119,406 5,185,916
Capital contributions & grants 17,967,187 9,370,186
Total program revenues 33,210,889 22,680,417
General revenues
Property Taxes 3,274,019 2,522,311
Other Taxes 4,043,732 4,827,441
Motor Vehicle In‑lieu 1,327,485 1,067,604
Other General Revenues 2,889,279 (8,459,113)
Total general revenues 11,534,515 (41,757)
TOTAL REVENUES 44,745,404 22,638,660
Program expenses
General Government 4,181,209 6,720,812
Community Development 9,966,093 6,930,649
Public Safety 8,823,382 11,049,915
Public Works 1,149,644 734,104
Parks & Recreation 248,706 243,763
Streets 2,709,160 2,673,641
Interest on Long Term Debt 478,220 504,475

TOTAL EXPENSES 27,556,414 28,857,359
Excess (deficiency) before extraordinary items 17,188,990 (6,218,699) Extraordinary items (Note 16) 2,745,970 1,109,830
INCREASE/(DECREASE) IN NET POSITION $19,934,960 ($5,108,869) Table 2

CHANGE IN GOVERNMENTAL ACTIVITIES NET POSITION
179

TOWN OF PARADISE

MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2023
7 THE TOWN'S FUNDS
As the Town completed the year, its governmental funds, (as presented in the balance sheet and the statement of revenues, expenditures and changes in fund balances), reported a combined fund balance of $205 million. Over 99% of this fund balance is unassigned and is the result of the settlement proceeds paid to the Town from Pacific Gas & Electric Company for damages stemming from 2018's Camp Fire.

General Fund Highlights
The Camp Fire had immediate and long-lasting impacts to the finances of the general fund. As the effects were unprecedented, the Town Council approved budget revisions for material changes as they were identified. A mid-year budget review was completed which reflected revised revenues, personnel costs and other operating expenditures when needed.

Lost property taxes and motor vehicle in-lieu were back filled by the State of California, but other taxes and revenues sources were not. The predominant change in revenues for the Town of Paradise was in the Tax and Assessments, Intergovernmental Revenues, and Use of Money and Property categories. The loss is due to an unrealized loss on investments that have not matured yet.

Other Major Governmental Funds
The Cal Home DA fund is a State Grant funding source to allow the Town to provide income-eligible community members loans for housing purposes. The Town provides low interest and interest-forgivable loans to owner-occupied rehabilitation/reconstruction as well as first time home buyers. The Town can also provide loans and grants for housing rehabilitation projects. The Town has provided funding for multi-family housing projects through this fund as well.

The Camp Fire 2018 Fund and Disaster Recovery Project Fund accounts for monies collected for the Camp Fire relief program. Revenues primarily consist of grant funding for recovery efforts and insurance claim reimbursements. Expenses consist of charges for continued support for rebuilding efforts of Town infrastructure and the overall community throughout the fiscal year. Some of the major projects for the year were Portable and Mobile Police Radios, On-System Replacements of Culverts, Hardscape, Roads and Signs, Off-System Roads and Culverts as well as Early Warning System and restoration of Dispatch Services for the Town.

The Gas Tax Fund received $9.3 million per the Budget Act of 2022 (the Act) w h i c h appropriated $9,300,000 (the Funds) from the State General Fund to Caltrans, to be allocated to Town of Paradise for Road Rehabilitation and Maintenance. This backfill was granted to supplement lost revenues for the outgoing years.
180

TOWN OF PARADISE

MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2023
8 CAPITAL ASSETS
This year's major capital asset additions total $23 million, which includes $19 million to construction in process, with major additions to On System Roads, Early Warning System, Restoration of Dispatch, and the pre-construction development of the Paradise Sewer Project. Other areas of investment were Infrastructure and Vehicles.

Table 3 below shows the $62.5 million total capital assets, net of depreciation.

DEBT
Bonds payable and capital leases continued to be reduced compared to the prior year as payments were made according to the applicable amortization schedules. The Town’s OPEB obligation increased from the prior year based upon assumption rate changes. Although the Town contributed towards the net pension liability as dictated by CalPERS, the net pension liability increased 70% based upon assumption rate changes. The Town has taken measures to mitigate the benefits in the future and the obligation is being amortized over a period of about 25 years.

2023 2022
Land 1,845,010 $ 1,845,010 $
Construction in Progress 38,071,755 18,936,733
Buildings and Improvements 2,057,965 1,466,400
Infrastructure 17,440,335 14,671,484
Machinery and Equipment 750,908 816,769
Vehicles 2,314,716 1,728,316
Total 62,480,689 $ 39,464,712 $
CAPITAL ASSETS AT YEAR‑END
(Net of Depreciation)
Table 3
2023 2022
Bonds Payable: accrued interest 7,633,747 $ 8,315,670 $ Capital Leases 49,366 85,564
OPEB 11,791,874 13,433,488
Net pension liability 29,081,689 17,011,738
CDF retiree health vesting - 68,476
Compensated absences 528,776 446,042
Total Liabilities 49,085,452 $ 39,360,978 $
Table 4
OUTSTANDING DEBT AT JUNE 30, 2023
181

TOWN OF PARADISE

MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2023
9 THE TOWN AS TRUSTEE
The Town is the trustee, or fiduciary, for an employee bank fund and a police department fund money fund.

As of January 2012, it elected to become the successor agency of the former Paradise Redevelopment Agency (Agency). The Town's current role is to manage the receipt and disbursement of monies related to debt service of enforceable obligations of the Agency. The Town also manages a general trust fund. All the related activity is being accounted for in the private-purpose trust funds. The Town is responsible for the assets in these funds and must only use these funds as indicated in the trust arrangements. The Town's fiduciary activities related to the Agency and the general trust fund are reported in the Statement of Fiduciary Net Position and the Statement of Changes in Fiduciary Net Position. The activities are excluded from the Town's other financial statements because the Town cannot use these assets to finance its operations. The Town is responsible for ensuring that the assets reported in these funds are used for their intended purposes. The private-purpose trust funds have a net position of negative $6.8 million as of June 30, 2023.

NEXT YEAR'S BUDGET AND ASSUMPTIONS
The Camp Fire of November 8, 2018 was the most destructive wildfire in California State history.

Rebuilding of the 10,000 structures destroyed has begun, but it will take over a decade before the Town of Paradise is restored. A community visioning process was completed with a consensus that a more resilient fire-resistant town be rebuilt. With the help of Federal, State, and local partners, the Town has continued long-term recovery planning and projects.

The Town is planning to restore the facilities and equipment lost or damaged during the fire through a combination of insurance claims, FEMA assistance, and outside funding sources. FEMA and California Governor's Office of Emergency Services will assist the Town with infrastructure restoration through public assistance and hazard mitigation grants.

CONTACTING THE TOWN'S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, investors, and creditors with a general overview of the Town's finances and to show the Town's accountability for the money it receives.

If you have questions about this report or need additional financial information, contact the Town's Finance Department at 5555 Skyway, Paradise, California.
182

BASIC FINANCIAL STATEMENTS
183

TOWN OF PARADISE
Governmental
Activities
ASSETS
Cash and investments $ 187,191,352
Restricted cash and investments 1,721,630
Accounts receivable 400,117
Due from other governments 28,690,293
Interest receivable 10,437
Prepaid items 2,741
Advance to the Successor agency 1,275,519
Loans receivable 15,177,292
Capital assets:

Non-depreciable:

Land and construction in progress 39,916,765
Depreciable:

Infrastructure, buildings, vehicles and equipment 45,032,028 Accumulated depreciation (22,468,104)
Total capital assets 62,480,689
Total Assets 296,950,070

DEFERRED OUTFLOWS OF RESOURCES
Related to net pension liability 11,943,945
Related to net OPEB liability 3,211,116
Total Deferred Outflows of Resources 15,155,061

LIABILITIES
Accounts payable 5,500,263
Retentions payable 617,443
Accrued wages 355,755
Deposits payable 191,975
Unearned revenue 6,724,797
Compensated absences, due in more than one year 528,776 Long-term debt:

Due within one year 1,163,751
Due in more than one year 6,519,362
Net pension liability 29,081,689
Other post employment benefits 11,791,874
Total Liabilities 62,475,685

DEFERRED INFLOWS OF RESOURCES
Related to net pension liability 2,205,977
Related to net OPEB liability 2,346,390
Total Deferred Inflows of Resources 4,552,367

NET POSITION
Net investment in capital assets 59,280,800
Restricted for:

Community development 16,533,531
Public safety 255,228
Streets and roads 4,395,122
Wastewater and drainage 5,470,554
Unrestricted 159,141,844
Total Net Position 245,077,079 $
The accompanying notes are an integral part of these financial statements.

STATEMENT OF NET POSITION
June 30, 2023
10 184
Net (Expense)
Operating Capital Revenue and
Charges for Grants and Grants and Changes in
Expenses Services Contributions Contributions Net Position Governmental Activities:

General government $ 698,688 4,181,209 $ $ (3,482,521)
Community development 9,966,093 6,765,586 1,249,524 $ 2,626,086 $ 675,103 Public safety 8,823,382 279,981 499,822 2,255,089 (5,788,490) Public works 380,041 1,149,644 4,824,806 4,055,203
Parks and recreation 248,706 1,230 (247,476)
Streets 2,709,160 544,024 13,086,012 10,920,876
Interest on long-term debt 478,220 (478,220)
Total governmental activities 27,556,414 $ 8,124,296 $ 7,119,406 $ 17,967,187 $ 5,654,475 General revenues:

Taxes:

Secured and unsecured property taxes 3,274,019
Sales and use taxes 2,577,983
Transient lodging tax 188,929
Franchise fees 484,290
Real property transfer taxes 92,704
Gas tax 568,247
Other taxes 131,579
Motor vehicle in-lieu, restricted 1,327,485
Homeowners property tax relief, unrestricted 25,823
Investment income 1,276,867
Other 1,586,589
Extraordinary items:

PG&E settlement 2,745,970
Total General Revenues 14,280,485
Changes in Net Position 19,934,960
Net position, beginning of year 225,142,119
Net position, end of year $ 245,077,079
Program Revenues

TOWN OF PARADISE

STATEMENT OF ACTIVITIES
For the Year Ended June 30, 2023
11 185
Disaster
General Camp Fire Recovery Highway
Fund 2018 Fund Projects Grants
ASSETS
Cash and investments $ 173,703,546 $ 786,997
Restricted cash and investments 49,273 1,672,357 $
Accounts receivable 396,530
Interest receivable 10,437
Prepaid expenses 2,741
Due from other governments 1,109,377 3,821,024 10,293,211 $ Due from other funds 29,349,250
Advance to the Successor Agency 1,275,519
Loans receivable
TOTAL ASSETS $ 5,493,381 205,896,673 $ 786,997 $ 10,293,211 $

LIABILITIES AND FUND BALANCES
Liabilities:

Accounts payable $ 21,358 531,248 $ 3,349,042 $
Retentions payable 211,886
Accrued wages 235,666 13,873
Deposits payable
Due to other funds 5,617,081 8,352,847 $
Unearned revenue 1,077,483 3,195,571 17,365
Total liabilities 8,847,883 1,844,397 3,560,928 8,370,212

DEFERRED INFLOWS OF RESOURCES
Unavailable revenues

TOTAL DEFERRED INFLOWS

OF RESOURCES
Fund balances:

Nonspendable 1,278,260
Restricted 1,922,999
Assigned 283,274
Unassigned 202,490,742 (3,354,502) (2,773,931)
TOTAL FUND BALANCE (3,354,502) 204,052,276 (2,773,931) 1,922,999

TOTAL LIABILITIES, DEFERRED
INFLOWS AND FUND BALANCES $ 5,493,381 205,896,673 $ 786,997 $ 10,293,211 $ The accompanying notes are an integral part of these financial statements Major Funds

TOWN OF PARADISE

BALANCE SHEET

GOVERNMENTAL FUNDS
June 30, 2023
12 186
Nonmajor Total
Loan CalHome CDBG Grant Capital Governmental Governmental Funds Grants Fund Projects Funds Funds
$ 4,248,950 $ 1,374,130 $ 187,191,352 7,077,729 $
1,721,630
3,587 400,117
10,437
2,741
$ 3,751,265 5,066,333 $ 4,649,083 28,690,293
29,349,250
1,275,519
5,136,629 9,084,487 956,176 15,177,292
$ 10,202,962 13,333,437 $ 4,707,441 $ 1,374,130 $ 11,730,399 $ 263,818,631 $ $ 70,000 10,394 $ 13,045 $ 1,379,940 $ $ 5,500,263 125,236 $ 405,557 617,443
355,755 106,216
191,975 191,975
5,228,702 7,585,088 29,349,250 2,565,532
1,580,428 609,962 6,724,797 243,988
7,655,088 620,356 6,822,175 1,785,497 3,232,947 42,739,483 5,136,629 9,084,487 956,176 15,724,915 547,623
5,136,629 9,084,487 956,176 547,623 15,724,915
1,278,260
3,628,594 8,526,114 14,077,707
283,274
(2,588,755) (3,070,910) (411,367) (576,285) 189,714,992 (2,588,755) 3,628,594 (3,070,910) (411,367) 7,949,829 205,354,233 $ 10,202,962 13,333,437 $ 4,707,441 $ 1,374,130 $ 11,730,399 $ 263,818,631 $ Major Funds
13 187
Total Governmental Fund Balances 205,354,233 $
Amounts reported for governmental activities in the statement of net position are different because of the following:

Capital assets used in governmental activities are not financial resources and therefore are not reported in governmental funds, net of accumulated depreciation of $22,468,104. 62,480,689
Certain notes, loans, claims, and interest receivables are not available to pay for current period expenditures and therefore are offset by deferred inflows of resources in the governmental funds. 15,724,915
Long-term liabilities are not due and payable in the current period and therefore are not reported in the governmental funds.

Bonds payable (3,081,366)
Accreted interest payable (4,552,381)
Note payable (49,366)
Net pension liability (29,081,689)
Net OPEB liability (11,791,874)
Compensated absences (528,776)
Deferred inflows of resources related to changes in the net pension liability are not applicable to the current period. (2,205,977)
Deferred inflows of resources related to changes in the net OPEB liability are not applicable to the current period. (2,346,390)
Deferred outflows of resources related to changes in the net pension liability are not reported in the governmental funds. 11,943,945 Deferred outflows of resources related to changes in the net OPEB liability are not reported in the governmental funds. 3,211,116
Net Position of Governmental Activities 245,077,079 $
The accompanying notes are an integral part of these financial statements.

TOWN OF PARADISE

RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET

TO GOVERNMENT-WIDE STATEMENT OF NET POSITION
June 30, 2023
14 188

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189
Disaster
General Camp Fire Recovery Highway
Fund 2018 Fund Projects Grants

REVENUES
Taxes and assessments $ 8,102,819
Licenses, permits and impact fees 388,046
Fines and forfeitures 116,637
Intergovernmental revenues 829,158 647,659 $ 12,956,480 $ Use of money and property 1,241,857
Reimbursements 2,472,068 92,410
Charges for services 338,835
Program income
Other revenues 411,226 474 $ 1,351
TOTAL REVENUES 740,543 13,900,646 1,351 12,956,480

EXPENDITURES
Current:

General government 283,424 3,309,232
Community development 263,373 641,138 1,160,152
Public safety 11,808,400
Public works 843,349 9,810
Parks and recreation 71,401
Streets
Capital outlay 742,440 2,522,090 14,299,411
Debt service:

Principal 542,203
Interest and fiscal charges 690,485
TOTAL EXPENDITURES 20,428,298 1,289,237 15,469,373 -
Excess of revenues over (under) expenditures (6,527,652) (548,694) (15,468,022) 12,956,480

OTHER FINANCING SOURCES (USES)
Transfers in 477,487 679,988 12,850,171
Transfers out (1,533,995) (272,941) (133,528) (11,368,860)

TOTAL OTHER FINANCING
SOURCES (USES) 407,047 (1,056,508) 12,716,643 (11,368,860) Net Change in Fund Balances (141,647) (7,584,160) (2,751,379) 1,587,620 Fund Balances (deficits), beginning of year 211,636,436 (3,212,855) (22,552) 335,379 Fund Balances (deficits), end of year $ (3,354,502) 204,052,276 $ (2,773,931) $ 1,922,999 $ The accompanying notes are an integral part of these financial statements.

Major Funds

TOWN OF PARADISE

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -

GOVERNMENTAL FUNDS
For the Year Ended June 30, 2023
15 190
Nonmajor Total
Loan Cal Home CDBG Capital Governmental Governmental
Funds Grants Grants Projects Funds Funds
$ 9,584,782 1,481,963 $
1,372,062 984,016
8,200 124,837
$ 2,658,990 $ 2,794,601 5,445,348 25,332,236
$ 124 13,288 139 23,122 1,278,530
218,855 2,783,333
2,463,835 2,802,670
574 501,551 502,125
149,551 562,602
2,659,688 514,839 2,794,740 10,774,890 44,343,177
3,607,032 14,376
4,036,670 265,229 1,343,103 10,711,925 3,002,260
11,981,977 173,577
$ 5,855 78,920 937,934
71,401
1,609,150 1,609,150
169,564 7,504,896 25,238,401
574,332 32,129
690,485
4,036,670 265,229 1,343,103 7,583,816 5,006,911 55,422,637 (1,376,982) 249,610 1,451,637 (7,583,816) 5,767,979 (11,079,460) 7,392,805 1,361,850 22,762,301
(240,218) (291,478) (3,024,624) (19,575) (22,762,301) (5,877,082)

(291,478) (240,218) 7,373,230 (3,024,624) 1,451,637 (4,515,232) (1,617,200) (41,868) (1,572,987) (210,586) 1,252,747 (11,079,460) 3,670,462 (971,555) (1,497,923) 6,697,082 (200,781) 216,433,693 $ (2,588,755) 3,628,594 $ (3,070,910) $ (411,367) $ 7,949,829 $ 205,354,233 $ Major Funds
16 191
Net Change in Fund Balances - Total Governmental Funds (11,079,460) $ Amounts reported for governmental activities in the statement of activities are different because:

Governmental funds report capital outlays as expenditures. However, in the government-wide statement of activities and changes in net position, the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense.

Capital outlay 25,238,401
Depreciation expense (2,222,424)
Receipts of payments and disbursements of funds related to notes and loans receivables are reported as revenues and expenditures, respectively, in governmental funds, but an increase and decrease, respectively, in notes receivable in the Statement of Net Position.

Loans made during the year 3,320,177
Some receivables are deferred in the governmental funds because the amounts do not represent current financial resources that are recognized under the accrual basis in the statement of activities. Deferred receivables in the governmental funds are recognized once received in the subsequent period, but will not be accrued again in the statement of activities.

Deferred revenue recognized (171,980)
Debt proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the Government-wide Statement of Net Position. Repayment of principal is an expenditure in the governmental funds, but the repayment reduces long-term liabilities in the statement of net position. These are the amounts by which proceeds exceeded repayments.

Principal repayment 574,332
Interest repayment 212,265
The amounts below, included in the Statement of Activities, do not provide (require) the use of current financial resources and, therefore, are not reported as revenues or expenditures in the governmental funds (net change):

Compensated absences (82,734)
Pension expense related to liabilities, deferred outflows and inflows of resources 5,017,565 OPEB expense related to liabilities, deferred outflows and inflows of resources (871,182) Change in Net Position of Governmental Activities 19,934,960 $ The accompanying notes are an integral part of these financial statements.

For the Year Ended June 30, 2023

TOWN OF PARADISE

RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF

REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

TO THE GOVERNMENT-WIDE STATEMENT OF ACTIVITIES
17 192
Successor Custodial
Agency Funds Funds
ASSETS
Cash and investments $ 14,205
TOTAL ASSETS - 14,205

LIABILITIES
Accounts payable 16,644 $ 3,444
Interest payable 22,211
Due to other governments 135,705
Long-term debt:

Due within one year 5,355,000
Due after one year 1,275,519
TOTAL LIABILITIES 6,805,079 3,444

NET POSITION
Held in trust (6,805,079)
Restricted for organizations, individuals, and other governments 10,761 TOTAL FIDUCIARY NET POSITION (6,805,079) $ 10,761 $
The accompanying notes are an integral part of these financial statements.

TOWN OF PARADISE

STATEMENT OF FIDUCIARY NET POSITION
June 30, 2023

FIDUCIARY FUNDS
18 193
Successor Custodial
Agency Funds Funds

ADDITIONS
Taxes and assessments 32,420 $
Investment revenue 3,709
Other revenue $ 67
TOTAL ADDITIONS 36,129 67

DEDUCTIONS
Program and administrative expenses 50,441
Interest expense 308,536
TOTAL DEDUCTIONS 358,977 -
CHANGE IN NET POSITION (322,848) 67
Net position, beginning of year 10,694 (6,482,231)
Net position, end of year (6,805,079) $ 10,761 $
The accompanying notes are an integral part of these financial statements.

TOWN OF PARADISE

STATEMENT OF CHANGES IN FIDUCIARY NET POSITION

FIDUCIARY FUNDS
June 30, 2023
19 194

NOTES TO THE BASIC FINANCIAL STATEMENTS
195

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196

TOWN OF PARADISE

NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2023
20 NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The Town of Paradise (the Town) was incorporated in 1979 and is nestled in the foothills of California’s Sierra Nevada Mountains. The Paradise Town Council is the chief policy-making body for the Town and is comprised of five members elected at large by the community to four-year staggered terms.

The Town operates under a Town Manager-Council form of government and provides the following services: public safety (Police and Fire), highways and streets, culture-recreation, public improvements, planning and zoning, and general administration. The voters of the Town of Paradise, California, give authority and responsibility for operations to the Town Council. The Town Council has the authority to employ administrative and support personnel to carry out its directives. The primary method used to monitor the performance of the Town’s management is the financial budget, which is adopted annually by the Town Council.

The financial statements of the Town have been prepared in accordance with generally accepted accounting principles (GAAP) as applied to governmental units. The Governmental Accounting Standards Board (GASB) is the standard-setting body for governmental accounting and financial reporting. In addition, the Town applies all Financial Accounting Standards Board (FASB) Statements and Interpretations, Accounting Principles Board (APB) Opinions and Accounting Research Bulletins (ARB) issued after November 30, 1989, unless they conflict with or contradict GASB pronouncements related to its proprietary operations. The more significant of these accounting policies are described below.

Reporting Entity: The Town operates as a self-governing local government unit within the State. It has limited authority to levy taxes and has the authority to determine user fees for the services that it provides.

The Town’s main funding sources include property taxes, sales taxes, other intergovernmental revenue from state and federal sources, user fees, and federal and state financial assistance.

The financial reporting entity consists of (a) the primary government, the Town, (b) organizations for which the primary government is financially accountable, and (c) other organizations for which the primary government is not accountable, but for which the nature and significance of their relationship with the primary government are such that exclusion would cause the reporting entity’s financial statements to be misleading or incomplete. Financial accountability is defined as the appointment of a voting majority of the component unit’s board, and either (a) the Town has the ability to impose its will on the organization or (b) there is a potential for the organization to provide a financial benefit to or impose a financial burden on the Town.

These basic financial statements present the financial status of the Town and its component units, which are included in the Town’s reporting entity because of the significance of their operational or financial relationship with the Town. Blended component units, although legally separate entities, are, in substance, part of the government’s operations and so data from these units are combined with data of the primary government. The Town’s reporting entity includes the following component units:

Redevelopment Successor Agency Private-Purpose Trust Fund: The Town of Paradise Redevelopment Agency (the Agency) was formed as a separate legal entity under the Community Redevelopment Law. On December 29, 2011, the California Supreme Court upheld Assembly Bill 1X 26 (“the Bill”) that provides for the dissolution of all redevelopment agencies in the State of California. The Town Council elected to become Successor Agency for the redevelopment agency in accordance with the bill. Based upon the nature of the successor agency’s custodial role, it is reported as a fiduciary fund private-purpose trust fund.
197

TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2023
21 NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Basis of Presentation — Government-wide Financial Statements: The government-wide financial statements (i.e. the statement of net position and statement of activities) report information on all of the nonfiduciary activities of the primary government and its component units. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which normally are supported by taxes and intergovernmental revenues, are reported separately from business-type activities, which rely to a significant extent on fees and charges to external parties. The Town has no business-type activities.

Separate financial statements are provided for governmental funds and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds are reported in separate columns in the fund financial statements.

The statement of activities demonstrates the degree to which the direct expenses of a given function or segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function or segment. Certain indirect costs are included in the program expenses of most business-type activities. Program revenues include 1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function or segment, and 2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function or segment. Taxes and other items not properly included among program revenues are reported instead as general revenues.

The government-wide financial statements are reported using the economic resources measurement focus and the accrual basis of accounting, as are the fiduciary fund financial statements.

Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Sales taxes are recognized when the underlying sales transaction takes place. Grants and similar items are recognized as revenues when all eligibility requirements are met.

Basis of Presentation — Fund Financial Statements: The accounts of the Town are organized on the basis of funds. A fund is a separate self-balancing set of accounts. Each fund was established for the purpose of accounting for specific activities in accordance with applicable regulations, restrictions or limitations.

Major individual governmental funds are reported as separate columns in the fund financial statements.

Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to be used to pay liabilities of the current period. For this purpose, the Town considers revenues to be available if they are collected within 60 to 365 days of the end of the current fiscal period, depending on the revenue source. Expenditures are generally recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments are recorded only when payment is due. General capital asset acquisitions are reported as expenditures in governmental funds.

Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be susceptible to accrual and have been recognized as revenues of the current fiscal period.

All other revenue items are considered to be measurable and available only when cash is received by the government.
198

TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2023
22 NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) The Town reports the following major governmental funds:

General Fund – The General Fund is the general operating fund of the Town and is always classified as a major fund. It is used to account for all activities except those legally or administratively required to be accounted for in other funds.

Camp Fire 2018 Fund – This fund accounts for monies collected for the Camp Fire relief program and to assist community organizations serving evacuees and first responders.

Disaster Recovery Projects – This fund is used to house multiple Disaster Recovery Project expenses stemming from the Camp Fire of 2018. Those expenses are transferred to the funding where the funding sources are recorded.

Highway Grants Fund – This fund accounts for various grants for congestion management and highway improvements.

Loan Fund – This fund accounts for grants to provide housing loans to qualified homebuyers.

CalHome Grants Fund – This fund accounts for housing rehabilitation made with CalHome grant monies.

CDBG Grants Fund – This fund accounts for development activities made with CDBG grant monies.

Capital Projects Fund – This fund accounts for major capital projects funded by various sources.

Additionally, the Town reports the following fund types:

GOVERNMENTAL FUNDS
Special Revenue Funds – Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes.

Debt Service Funds – Debt Service Funds are used to account for the accumulation of resources for, and the payment of, general long-term debt principal and interest. The Town has no debt service funds.

Capital Projects Fund – The Capital Project Funds are used to account for financial resources used for the acquisition or construction of major capital facilities.

FIDUCIARY FUNDS
Private-Purpose Trust – Private Purpose Trust funds are used to account for trust arrangements where the principal and income benefit individuals, private organizations, or other governments. Examples include successor agencies for redevelopment agencies.

Custodial Funds – Custodial Funds account for assets held by the Town in a purely custodial capacity. Custodial Funds typically involve only the receipt, temporary investment, and remittance of fiduciary resources to individuals, private organizations, or other governments. 199

TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2023
23 NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Cash and Cash Equivalents: The Town’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with original maturities of three months or less from the date of acquisition, including the Town’s investment in California Local Agency Investment Fund (LAIF). Highly liquid money market investments with maturities of one year or less at time of purchase are stated at amortized cost.

Receivables and Payables: Sales, use, and utility user taxes related to the current fiscal year are accrued as revenue and receivables and considered available if received within 90 days of year-end. Property taxes related to the current fiscal year are accrued as revenue and receivables and considered available if received within 60 days of year-end. Federal and State grants are considered receivable and accrued as revenue when reimbursable costs are incurred under the accrual basis of accounting in the governmentwide statement of net position. The amount recognized as revenue under the modified accrual basis of accounting is limited to the amount that is deemed measurable and collectible if received within 365 days of year-end.

Transactions between funds that represent lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or “advances to/from other funds” (i.e., the non-current portion of interfund loans). Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as “internal balances.” Property Taxes: The County of Butte (the County) is responsible for the collection and allocation of property taxes. Under California law, property taxes are assessed and collected by the County up to 1% of the full cash value of taxable property, plus other increases approved by the voters and distributed in accordance with statutory formulas. The Town recognizes property taxes when the individual installments are due, provided they are collected within 60 days after year end. Secured property taxes are levied on or before July 1 of each year. They become a lien on real property on March 1 preceding the fiscal year for which taxes are levied. These taxes are paid in two equal installments; the first is due November 1 and delinquent with penalties after December 10; the second is due February 1 and delinquent with penalties after April 10. Secured property taxes, which are delinquent and unpaid as of June 30, are declared to be tax defaulted and are subject to redemption penalties, costs, and interest when paid.

The term “unsecured” refers to taxes on personal property other than land and buildings. Property tax revenues are recognized in the fiscal year for which they are levied, provided they are due and collected within sixty days after fiscal year-end. The County apportions secured property tax revenue in accordance with the alternate methods of distribution, the “Teeter Plan,” as prescribed by Section 4717 of the California Revenue and Taxation code. Therefore, the Town receives 100% of the secured property tax levies to which it is entitled, whether or not collected. Unsecured delinquent taxes are considered fully collectible.

These taxes are accrued as intergovernmental receivables only if they are received from the County within 60 days after year-end for the governmental funds and are accrued when earned for governmentwide presentation regardless of the timing of the related cash flows. 200

TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2023
24 NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Capital Assets: Capital assets for governmental fund types of the Town are not capitalized in the funds used to acquire or construct them. Capital acquisitions are reflected as expenditures in the governmental fund, and the related assets are reported in the government-wide financial statements at historical cost or estimated historical cost if purchased or constructed. Contributed capital assets are recorded at their estimated fair market value on the date donated.

The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets’ lives are not included in the current year’s additions to governmental capital assets. Capital assets are depreciated using the straight-line method over the following useful lives:

Buildings and improvements 5 to 25 years
Infrastructure 20 years
Machinery, equipment and vehicles 5 to 10 years
It is the policy of the Town to capitalize all land, building, improvements, equipment, and eventually infrastructure assets, except assets costing less than $5,000. Costs of assets sold or retired and the resulting gain or loss is included in the operating statement of the related proprietary fund. In governmental funds, the sale of general capital assets is included in the statement of revenues, expenditures and changes in fund balances as proceeds from sale. The proceeds reported in the governmental fund are eliminated and the gain or loss on sale is reported in the government-wide presentation.

Compensated Absences: It is the Town’s policy to permit employees to accumulate earned but unused vacation and compensatory time off. Vacation is accrued when incurred in the government-wide presentation and reported as a liability. Amounts that are expected to be liquidated with expendable available financial resources, for example, as a result of employee resignations or retirements that are currently payable, are reported as expenditures and a fund liability of the governmental fund that will pay it. Amounts not expected to be liquidated with expendable available financial resources represent a reconciling item between the fund and government-wide presentation. No expenditure is reported in the governmental fund financial statements for these amounts.

Sick leave is not payable upon termination, but may be converted to service credits under the Town’s defined benefit pension plan. One group of employees is entitled to sick leave payout. If the employee was hired before November 12, 2012, has five years of service, and leaves in good standing, they can receive a payout for sick leave in excess of twenty days at half their normal rate of pay up to $3,750.

Long-term Obligations: Long-term debt of governmental funds are reported at face value in the government-wide financial statements and represent a reconciling item between the fund and governmentwide presentation. Certain other governmental fund obligations not expected to be financed with current available financial resources are also reported in the government-wide financial statements and represent a reconciling item between the fund and government-wide presentation.

For governmental fund types, proceeds from borrowing are reported as another financing source net of the applicable premium or discount. Issuance costs, even if withheld from the actual net proceeds received, are reported as debt service expenditures.
201

TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2023
25 NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Deferred Outflows and Inflows of Resources: In addition to liabilities, the statement of financial position reports a separate section for deferred outflows and deferred inflows of resources. Deferred outflows of resources represent a consumption of net assets by the government that is applicable to a future reporting period. Deferred inflows of resources represent an acquisition of net assets that is applicable to a future reporting period. These amounts will not be recognized as an outflow of resources (expenditure/expense) or an inflow of resources (revenue) until the earnings process is complete. The governmental funds report unavailable revenues for grants and other revenues when the amounts meet the asset recognition criteria and were accrued as receivables, but the amounts were not received in the availability period. Deferred outflows and inflows of resources include amounts deferred related to the Town’s pension and OPEB plans as described in Notes H and I.

Pensions: For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Commission’s California Public Employee’s Retirement System (CalPERS) plans (Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

Other Postemployment Benefits (OPEB) Plan: For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the Town’s plan (OPEB Plan) and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms.

Investments are reported at fair value.

Fund Balance: In the fund financial statements, governmental funds report nonspendable, restricted, committed, assigned and unassigned balances.

Nonspendable Funds – Fund balance should be reported as nonspendable when the amounts cannot be spent because they are either not in spendable form or are legally or contractually required to be maintained intact. Nonspendable balances are not expected to be converted to cash within the next operating cycle, which comprise prepaid items and long-term receivables.

Restricted Funds – Fund balance should be reported as restricted when constraints placed on the use of resources are either externally imposed by creditors, grantors, contributors, or laws or regulations of other governments, or imposed by law through constitutional provisions or enabling legislation.

Committed Funds – Fund balance should be reported as committed when the amounts can only be used for specific purposes pursuant to constraints imposed by formal action of the government’s highest level of decision-making authority, the Town Council. These amounts cannot be used for any other purpose unless the Town Council modifies or removes the fund balance commitment.

Assigned Funds – Fund balance should be reported as assigned when the amounts are constrained by the government’s intent to be used for specific purposes but are neither restricted nor committed. 202

TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2023
26 NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Unassigned Funds – Unassigned fund balance is the residual classification of the Town’s funds and includes all spendable amounts that have not been restricted, committed, or assigned to specific purposes.

Net Position: The government-wide financial statements utilize a net position presentation. Net position is categorized as investment in capital assets (net of related debt), restricted and unrestricted.

Net Investment in Capital Assets – This category groups all capital assets into one component of net position. Accumulated depreciation and the outstanding balances of debt that are attributable to the acquisition, construction or improvement of these assets reduce the balance in this category.

Restricted Net Position – This category presents external restrictions imposed by creditors, grantors, contributors or laws or regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation.

Unrestricted Net Position – This category represents net position of the Town not restricted for any project or other purpose.

The Town Council establishes, modifies or rescinds fund balance commitments and assignments by passage of a resolution. When both restricted and unrestricted resources are available for use, it is the Town’s policy to use restricted resources first, then unrestricted, committed, assigned and unassigned resources as they are needed. The Town’s committed, assigned, or unassigned amounts are considered to have been spent when an expenditure is incurred for purposes for which amounts in any of those unrestricted fund balance classifications could be used.

Use of Estimates: The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.

Actual results could differ from those estimates.

Budgetary Information: The Town Council annually adopts the budget resolution for all operating funds of the Town. Budgetary control is legally maintained at the fund level. Department heads submit budget requests to the Town Administrator. The Administrator prepares an estimate of revenues and prepares recommendations for the next year’s budget. The preliminary budget may or may not be amended by the Town Council and is adopted by resolution by the Town Council on or before June 30.

All budget amounts presented in the accompanying financial statements have been adjusted for legally authorized revisions of the annual budgets during the year. Appropriations, except open project appropriations, and unexpended grant appropriations, lapse at the end of each fiscal year. Amounts shown in the financial statements represent the original budgeted amounts and all supplemental appropriations. The supplemental appropriations were immaterial. The budgetary data is prepared on the modified accrual basis consistent with the related “actual” amounts, except as indicated below. The Town does not use encumbrance accounting.
203

TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2023
27 NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) Excess Expenditures Over Appropriations: The following funds had excess expenditures over appropriations.

Total
Expenditures and Excess
Fund Appropriations Transfers Out Expenditures
Major Funds:

Highway Grants 10,658,067 $ 11,368,860 $ (710,793) $
Loan Funds 484,457 556,707 (72,250)
Cal Home Grants 2,628,390 4,276,888 (1,648,498)
Capital Projects 4,449,770 7,603,391 (3,153,621)
Nonmajor Special Revenue Funds:

Local Transportation 912,776 979,799 (67,023)
The Funds are over budget due to increased funding available in those funds.

Fund Deficits: At June 30, 2023, the following governmental funds had a fund balance deficit:

Fund Deficit
Camp Fire 2018 Fund 3,354,502 $
Disaster Recovery Projects 2,773,931
CalHOME Grants 2,588,755
Capital Projects Fund 411,362
Local Transportation 197,407
CDBG Grants Fund 3,070,910
Home Grant Fund 378,878
The fund balance deficits are primarily due to the Town incurring costs in advance of receipt of revenues and will be eliminated through future revenues and expenditure reductions.

New Pronouncements: In April 2022, the GASB issued Statement No. 99, Omnibus 2022. This Statement enhances comparability in accounting and financial reporting and consistency in authoritative literature, including the classification and reporting of derivative instruments within the scope of Statement No. 53, Accounting and Financial Reporting for Derivative Instruments, that do not meet the definition of either an investment derivative instrument or a hedging derivative instrument; clarification of provisions of Statement 87, Leases, related to the determination of the lease term, classification of a lease as a short-term lease, recognition and measurement of a lease liability and a lease asset and identification of lease incentives; clarification of provisions in Statement No. 34, Basic Financial Statements and Management’s Discussion and Analysis for State and Local Governments, related to the focus of the government-wide financial statements; terminology updates related to provisions of Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position; and terminology used in Statement No. 53 to refer to resource flows statements. The provisions of this Statement are effective immediately through periods beginning after June 15, 2023.

In June 2022, the GASB issued Statement No. 101, Compensated Absences. This Statement requires that liabilities for compensated absences be recognized for leave that has not been used that is attributable to services already rendered, accumulates and is more likely than not to be used for time off or paid in cash 204

TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2023
28 NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) or settled through noncash means and leave that has been used but not paid in cash or settled through noncash means. Leave that is more likely than not to be settled through conversion to defined benefit postemployment benefits should not be included in the liability for compensated absences. This Statement requires that a liability for certain types of compensated absences, including parental leave, military leave and jury duty leave, not be recognized until the leave commences. Certain salary related payments that are directly and incrementally associated with payments for leave also should be included in the measurement of the liabilities. With respect to financial statements prepared using the current financial resources measurement focus, this Statement requires that expenditures be recognized for the amount that normally would be liquidated with expendable available financial resources. Governments are allowed to disclose the net change in the liability if identified as such in the footnotes to the financial statements. The provisions of this Statement are effective for years beginning after December 15, 2023.

The Town is currently analyzing the impact of the required implementation of these new statements.

NOTE B – CASH AND INVESTMENTS
The Town follows the practice of pooling cash and investments of all funds. Cash represents cash on hand, demand deposits in the bank and amounts invested in the State of California Local Agency Investment Fund (LAIF). Cash and investments at June 30, 2023 are classified in the accompanying financial statements as follows:

Governmental Fiduciary
Activities Funds Total
Cash and cash equivalents 187,191,352 $ 14,205 $ 187,205,557 $ Restricted cash 1,721,630 1,721,630
$ 14,205 188,912,982 $ 188,927,187 $
As of June 30, 2023, the Town’s cash and investments consisted of the following:

Cash on hand $ 2,450
Deposits in financial institutions 3,134,927
Investments:

California CLASS prime fund 1,695,854
Local Agency Investment Fund 1,378,187
Commercial paper 9,304,587
Money market mutual funds 5,591,467
U.S. treasury 13,225,256
U.S. government agency 52,581,438
Corporate bonds 32,626,432
Foreign notes/bonds 13,935,786
Municipal notes/bonds 53,533,015
Negotiable certificates of deposit 1,868,515
Held by fiscal agent
Money market fund 49,273
Total investments 185,789,810
Total cash and investments 188,927,187 $
205

TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2023
29 NOTE B – CASH AND INVESTMENTS (Continued)
Investment policy: California statutes authorize cities to invest idle or surplus funds in a variety of credit instruments as provided for in the California Government Code, Section 53600, Chapter 4 - Financial Affairs. The table below identifies the investment types that are authorized for the Town by the California Government Code (or the Town's investment policy, where more restrictive) that address interest rate risk, credit risk, and concentration of credit risk.

Maximum Maximum
Maximum Percentage Investment
Maturity Of Portfolio In One Issuer
Asset backed securities 5 years 20% None
Banker acceptances 180 days 40% 30%
Collateralized bank deposits 5 years Unlimited None
Commercial paper 270 days 25% 10%
Local agency investment funds 5 years Unlimited $50 million Medium term notes 5 years 30% None
Mutual funds 5 years 20% 10%
Certificate of deposits 5 years 30% None
Repurchase agreements 1 years 20% None
Subranationals: IBRD, IFC, IADB 5 years 30% None
Treasury bills and notes 5 years Unlimited None
US Government, state(s) and agency securities 5 years Unlimited None The Town complied with the provisions of California Government Code pertaining to the types of investments held, institutions in which deposits were made and security requirements. The Town will continue to monitor compliance with applicable statutes pertaining to public deposits and investments.

Investments Authorized by Debt Agreements: Investment of debt proceeds held by the bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the Town’s investment policy. The Pension Obligation Bond debt agreement contains certain provisions that address interest rate risk, credit risk, and concentration of credit risk.

Maximum Maximum
Maximum Percentage Investment
Maturity Of Portfolio In One Issuer
U.S. Treasury Obligations 5 years None None
U.S. government agency obligations 5 years None None
Municipal obligations None None None
Bankers acceptances 1 year None None
Commercial paper None None None
Certificates of deposit None None None
Money market funds N/A None None
Local Agency Investment Fund None None None
Investment contracts None None None
Interest Rate Risk: Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways the Town manages its 206

TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2023
30 NOTE B – CASH AND INVESTMENTS (Continued)
exposure to interest rate risk is by purchasing a combination of shorter term and longer-term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.

Information about the sensitivity of the fair values of the Town’s investments (including investments held by the bond trustee) to market interest rate fluctuations is provided by the following table that shows the distribution of the Town’s investments by maturity:

Total 12 Months or Less 13 to 24 Months 25 to 60 Months California CLASS Prime 1,695,854 $ 1,695,854 $
Fund
Local Agency Investment 1,378,187
Fund (LAIF) 1,378,187
Money market mutual fund 5,591,467 5,591,467
Commercial paper 9,304,587 9,304,587
U.S. Treasury 13,225,256 13,225,256 $
U.S. government agency 52, 4,802,300 581,438 19,047,115 $ 28,732,023 Corporate bonds/notes 32, 12,844,541 626,432 849,519 18,932,372 Foreign notes/bonds 13, 2,885,280 935,786 2,930,666 8,119,840 Municipal notes/bonds 53, 6,680,841 533,015 23,439,450 23,412,724 Negotiable certificates of 1,868,515 492,938 940,065 435,512 deposit
Held by fiscal agent
Money market fund 49,273 49,273
Total 185,789,810 $ 44,029,414 $ 47,206,815 $ 92,857,727 $ Remaining Maturity (in months)
Credit Risk: Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. The following are credit ratings issued by Moody’s and Standard and Poor’s as of June 30, 2023:
207

TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2023
31 NOTE B – CASH AND INVESTMENTS (Continued)
Investment Type AAA AA+/AA/AA- A+/A A-1 Total
California CLASS Prime Fund 1,695,854 $ 1,695,854 $
Money Market Mutual Funds 5,591,467 5,591,467
Commercial paper $ 9,304,587 9,304,587
U.S. Treasuries 13,225,256 $ 13,225,256
U.S. government agencies 49,426,643 49,426,643
Corporate bonds/notes 2,741,910 9,267,820 20,616,702 $ 32,626,432 Foreign notes/bonds 13,935,786 13,935,786
Muncipal notes/bonds 10,201,519 42,849,512 481,985 53,533,016 Held by fiscal agent:

Money market fund 49,273 49,273
$ 128,705,017 18,584,169 $ 21,098,687 $ 9,304,587 $
Not rated:

LAIF 1,378,187
Exempt from credit rating disclosure:

U.S. government agencies 3,154,795
Negotiable certificates of deposit 1,868,514
Total investments $ 185,789,810
Concentration of Credit Risk: The investment policy of the Town contains no limitations on the amount that can be invested with any one issuer beyond that stipulated by the California Government Code.

Investments in any one issuer represent more than 5% of the total investments (other than mutual funds and external investment pools) are as follows as of June 30, 2023.

Issuer Investment Type Amount %
Federal Farm Credit Bank U.S. Agency security 12,518,060 $ 6.74% Federal Home Loan Mortgage Corporation U.S. Agency security 17,222,890 9.27% Federal National Mortgage Association U.S. Agency security 14,605,150 7.86% Custodial Credit Risk: Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The California Government Code and the Town’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits, other than the following provision for deposits: The California Governmental Code requires that a financial institution secure deposits made by state or local governmental units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies.

California law also allows financial institutions to secure public agency deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. At June 30, 2023, the carrying amount of the Town’s deposits was $3,134,927 and the balance in financial institutions was $3,226,562. Of the balance in financial institutions, $250,000 was covered by federal depository insurance and $2,976,562 was covered by the pledging financial institution with assets held in a common pool for the Town and other governmental agencies.
208

TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2023
32 NOTE B – CASH AND INVESTMENTS (Continued)
Investment in LAIF: LAIF is stated at amortized cost, which approximates fair value. The LAIF is a special fund of the California State Treasury through which local governments may pool investments.

The total fair value amount invested by all public agencies in LAIF is $231,867,874,452 managed by the State Treasurer. Of that amount, 2.78% is invested in structured notes and asset-backed securities. The Local Investment Advisory Board (Board) has oversight responsibility for LAIF. The Board consists of five members as designated by State Statute. The fair value of the Town’s investment in this pool is reported in the accompanying financial statements at amounts based upon the Town’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis. At June 30, 2023, these investments matured in an average of 260 days.

Investment in the California Cooperative Liquid Assets Securities System: The Town is a voluntary participant in the California Cooperative Liquid Assets Securities System (California CLASS). California CLASS is a joint exercise of powers entity authorized under section 6509.7, California Government Code. California CLASS is a pooled investment option that was created via a joint exercise of powers agreement by and among California public agencies. The fair value of the Town’s investment in this pool is reported in the accompanying financial statements.

Fair Value Measurement: The Town categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets, Level 2 inputs are significant other observable inputs, Level 3 inputs are significant unobservable inputs. All of the Town’s investments are considered to be value based on Level 2 inputs.

NOTE C – INTERFUND TRANSACTIONS
Interfund balances at June 30, 2023 were as follows:

Receivable Fund Payable Fund Amount
General Fund Major Governmental Funds:

Camp Fire 2018 5,617,081 $
Highway Grants 8,352,847
CalHOME Grants 7,585,088
CDBG Grants 5,228,702
Nonmajor Governmental Funds:

Building Safety and Wastewater Services 153,478
Local Transportation 195,502
Gas Tax 58,987
Community Development 743,249
FEMA Grants 1,242,004
HOME Grants 172,312
$ 29,349,250
209

TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2023
33 NOTE C – INTERFUND TRANSACTIONS (Continued)
Transfers during the year ended June 30, 2023 were as follows:

Amount
Fund Making Transfer Fund Receiving Transfers Transferred General Fund Camp Fire 2018 46,862 $
Disaster Recovery Projects 1,287,310
Gas Tax 140,020
HOME Grants 6,247
Building Safety and Wastewater Services 48,341
Local Transportation 11
Capital Projects 5,204
Major Governmental Funds:

Camp Fire 2018 General Fund 97,136
Gas Tax 83,395
Disaster Recovery Projects 92,410
Disaster Recovery Projects Impact Fees 133,528
Highway Grants Capital Projects 5,027,484
Gas Tax 126,802
Camp Fire 2018 399,781
Disaster Recovery Projects 5,814,793
Loan Funds HOME Grants 127,731
Capital Projects 156,006
Gas Tax 7,741
CalHOME Grants HOME Grants 240,218
CDBG Grants Camp Fire 2018 64,675
Capital Projects 584,834
Disaster Recovery Projects 2,209,287
Gas Tax 165,828
Capital Projects Gas Tax 19,575
Nonmajor Governmental Funds:

Building Safety and Wastewater Services General Fund 169,460 Local Transportation General Fund 4,531
Gas Tax 6,120
Capital Projects 846,315
Other Grants 62,500
Gas Tax General Fund 85,175
Community Development General Fund 85,356
Building Safety and Wastewater Services 3,499
Capital Projects 563,543
Disaster Recovery Projects 536,480
Gas Tax 154,981
HOME Grants 9,167
FEMA Grants Camp Fire 2018 168,670
Disaster Recovery Projects 1,830,198
Gas Tax 2,704
Public Safety Grants General Fund 3,024
Other Grants Building Safety and Wastewater Services 23,442 Disaster Recovery Projects 946,165
Impact Fees Capital Projects 209,419
Disaster Recovery Projects 133,528
HOME Grants General Fund 32,805
$ 22,762,301
210

TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2023
34 NOTE D – LOANS RECEIVABLE
The Town engages in programs designed to encourage construction or improvement in low-to-moderate income housing or other projects. Under these programs, grants or loans are provided under favorable terms to homeowners or developers who agree to spend these funds in accordance with the Town’s terms.

The balance of the loans receivable arising from these programs at June 30, 2023 was $15,177,292, which included loans to homeowners totaling $8,948,704, loans to the developer (Paradise Community Village) totaling $6,228,588, and loans to Community Housing Improvement Program totaling $956,176. As of June 30, 2023 loans receivable balances of $9,084,487, $5,136,629 and $956,176 are recorded in the Town’s Loan Fund, Cal Home Grants Fund and CDBG Fund, respectively. On a modified accrual basis, these amounts are not available to pay for current period expenditures and are offset by deferred inflows of resources for the full amount as of June 30, 2023.

NOTE E – CAPITAL ASSETS
Governmental capital assets activity for the year ended June 30, 2023 was as follows:

Balance at Balance at
June 30, 2022 Additions Retirements Transfers June 30, 2023 Capital assets, not being depreciated:

Land 1,845,010 $ 1,845,010 $
Construction in progress 18,936,733 23,336,997 $ (4,201,975) $ 38,071,755 Total capital assets,
not being depreciated 23,336,997 20,781,743 - (4,201,975) 39,916,765 Capital assets, being depreciated:

Infrastructure 28,363,984 4,186,975 32,550,959
Buildings 3,271,438 694,509 15,000 3,980,947
Machinery and equipment 2,529,538 141,813 2,671,351
Vehicles 4,763,689 1,065,082 5,828,771
Total capital assets,
being depreciated 1,901,404 38,928,649 - 4,201,975 45,032,028 Less accumulated depreciation for:

Infrastructure (13,692,500) (1,418,124) (15,110,624)
Buildings (1,805,038) (117,944) (1,922,982)
Machinery and equipment (1,712,769) (207,674) (1,920,443) Vehicles (3,035,373) (478,682) (3,514,055)
Total accumulated depreciation (20,245,680) (2,222,424) - - (22,468,104) Capital assets being
depreciated, net 18,682,969 (321,020) - 4,201,975 22,563,924

GOVERNMENTAL ACTIVITIES
CAPITAL ASSETS, NET $ 39,464,712 $ - 23,015,977 $ - $ $ 62,480,689 Depreciation expense for governmental capital assets was charged to functions as follows:

General government 196,262 $
Public safety 479,210
Streets and public works 1,369,647
Parks and recreation 177,305
Total governmental activities depreciation expense 2,222,424 $ 211

TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2023
35 NOTE F – LONG-TERM LIABILITIES
Long-term liability activity for the year ended June 30, 2023 was as follows:

Balance Balance Due Within
June 30, 2022 Additions Payments June 30, 2023 One Year Governmental Activities:

Bonds payable 3,551,024 $ (469,658) $ 3,081,366 $ 459,239 $ Accreted interest payable 4,764,646 (212,265) 4,552,381 685,342 Loan payable 68,476 (68,476) -
Finance purchase agreements 85,564 (36,198) 49,366 19,170 Total debt 8,469,710 - (786,597) 7,683,113 1,163,751
Compensated absences 446,042 82,734 $ 528,776
Net pension liability 17,011,738 12,069,951 29,081,689
OPEB liability 13,433,488 (1,641,614) 11,791,874
Governmental activities
long-term liabilities 39,360,978 $ 12,152,685 $ (2,428,211) $ 49,085,452 $ 1,163,751 $ Note: The change in the compensated absences liability is presented as a net change.

Long-term debt of the Town’s governmental activities consists of the following as of June 30, 2023:

Bonds Payable: On April 1, 2007, the Town pursuant to an Agreement with the California Statewide Communities Development Authority issued $10,918,154 of Pension Obligation Bonds. The aggregate total amount of the bonds for all agencies was $87,475,699 which includes $65,140,000 of Series A-1 current interest and $22,335,699 of Series A-2 capital appreciation bonds. The Town only participated in the Series A-2 bonds. The issuance of the bonds provided monies to meet the Town’s obligation to pay the Town’s unfunded accrued actuarial liability (UAAL) and employer contribution amount to the California Public Employees Retirement System (PERS). The Town’s obligation includes among others, the requirement to amortize the unfunded accrued liability over a multi-year period. On April 1, 2007, the Town contributed $10,635,313 of the bond proceeds to PERS to fund a portion of the unfunded liability and the employer contribution amount for the Miscellaneous and Safety Plans that provides retirement benefits to the Town’s employees and public safety officers. The Town paid costs of issuance fees of $282,841.

Interest on Series A-2 capital appreciation bonds is payable on June 1 and December 1. The rate of interest varies from 5.160% to 5.694% per annum. Principal payment in annual installments ranging from $238,761 to $648,234 commencing on June 1, 2010 and ending on June 1, 2031. The balance outstanding as of June 30, 2023 was $3,551,024. The accreted interest on the capital appreciation bonds balance as of June 30, 2023 was $4,552,381.
212

TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2023
36 NOTE F – LONG-TERM LIABILITIES (Continued)
Principal interest payments on bonds are due as follows:

Year Ending June 30: Principal Interest* Total
2024 $ 459,239 $ 1,195,001 735,762 $
2025 448,824 1,235,000 786,176
2026 439,091 1,280,000 840,909
2027 428,182 1,320,000 891,818
2028 416,296 1,360,000 943,704
2029-31 889,734 3,224,999 2,335,265
Totals 3,081,366 $ 6,533,634 $ 9,615,000 $
* The amount includes accreted interest.

Loans payable: In 2013, the Town entered into a loan agreement with the Department of Forestry and Fire Protection to cover the California Department of Forestry vested retiree health benefits. The note bears interest at 0.382%, payable in annual installments based upon a ten year amortization schedule and matured in full on July 1, 2022.

Finance purchase agreement: The Town has entered into various finance purchase agreements for financing the acquisition of capital assets. Finance purchase agreements include the following:

Enterprise Fleet Management – During the fiscal year 2017-2018, the Town entered into two lease agreements for the purchase of two trucks. The leases require 60 monthly installments of $498 with the final payment of $5,464 in February 2023.

Axon Enterprises – During the fiscal year 2020-2021, the Town entered into an agreement to lease tasers and related hardware and accessories. The total amount of the lease is $52,485, with an implicit interest rate of 4.50%. The lease will be paid in four installments of $10,861 through December 1, 2024.

De Lage Landen Public Finance – During the fiscal year 2020-2021, the Town entered into an agreement to lease 8 printers. The total amount of the lease is $41,937, with an implicit interest rate of

4.50%. The lease will be paid by 60 monthly payments of $781.25.

Principal interest payments on the finance purchase agreements are due as follows:

Year Ending June 30: Principal Interest Total
2024 $ 19,170 $ 20,205 1,035 $
2025 19,549 20,236 687
2026 9,084 9,375 291
2027 1,563 1,572 9
2028 -
Totals 49,366 $ 2,022 $ 51,388 $
213

TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2023
37 NOTE G – FUND BALANCE
The following are the components of the Governmental Funds fund balances:

Disaster Capital Nonmajor Total
General Camp Fire Recovery Highway CalHome CDBG Projects Governmental Governmental Fund 2018 Fund Fund Grants Loan Funds Grants Fund Grants Fund Funds Funds Fund balances:

Nonspendable:

Prepaid expenses 2,741 $ $ 2,741
Advance to successor
agency 1,275,519 1,275,519
Total Nonspendable 1,278,260 - - - - - - - - 1,278,260
Restricted for:

Community development 3,628,594 $ 1,047,822 $ 4,676,416 Public safety 255,228 255,228
Streets and roads 1,922,999 $ 3,675,509 1,752,510
Wastewater and drainage 5,470,554 5,470,554
Total Restricted - - - 1,922,999 3,628,594 - - - 8,526,114 14,077,707 Assigned for:

Measure C 20,000 20,000
Property abatement 263,274 263,274
Total assigned - 283,274 - - - - - - - 283,274
Unassigned/Unrestricted (3,354,502) 202,490,742 $ (2,773,931) $ (2,588,755) $ (3,070,910) $ (411,367) $ (576,285) 189,714,992 Total Unassigned (3,354,502) 202,490,742 (2,773,931) - - (2,588,755) (3,070,910) (411,367) (576,285) 189,714,992 Total fund balances 204,052,276 $ (3,354,502) $ (2,773,931) $ 1,922,999 $ 3,628,594 $ (2,588,755) $ (3,070,910) $ (411,367) $ 7,949,829 $ 205,354,233 $ NOTE H – PENSION PLANS
Plan Descriptions: All qualified permanent and probationary employees are eligible to participate in the Town’s cost-sharing multiple-employer defined benefit pension plan (the Plan or PERF C) administered by the California Public Employees’ Retirement System (CalPERS). PERF C consists of a miscellaneous risk pool and a safety risk pool and the following rate plans:
 Town Miscellaneous Plan Classic Tier 1
 Town Miscellaneous Plan Classic Tier 2
 Town Miscellaneous PEPRA
 Safety Plan Classic Tier 1
 Safety Plan Classic Tier 2
 Safety Plan PEPRA
Although one pension plan exists, CalPERS provides the information separately for the Miscellaneous and Safety Risk Pools and the information is presented separately where available. Benefit provisions under the Plan is established by State statute and Town resolution. CalPERS issues publicly available reports that include a full description of the pension plans regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website at www.calpers.ca.gov.

Benefits Provided: CalPERS provides service retirement and disability benefits, annual cost of living adjustments and death benefits to plan members, who must be public employees and beneficiaries.

Benefits are based on years of credited service, equal to one year of full time employment. Members with five years of total service are eligible to retire at age 50 (57 for PEPRA Miscellaneous Plan) with statutorily reduced benefits. All members are eligible for non-duty disability benefits after 10 years of service. The death benefit is the Optional Settlement 2 Death Benefit. The cost of living adjustments for each plan are applied as specified by the Public Employees’ Retirement Law. 214

TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2023
38 NOTE H – PENSION PLANS (Continued)
The Plan’s provisions and benefits in effect at June 30, 2023, are summarized as follows:

City City City
Miscellaneous Miscellaneous Miscellaneous
Classic Tier 1 Classic Tier 2 PEPRA
Prior to On or after On or after
January 1, 1982 January 1, 1982 January 1, 2013
Benefit formula (at full retirement) 2.0% @ 55 2.0% @ 60 2.0% @ 62 Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Final average compensation period One Year Three Year Three Year Retirement age 50 - 63 50 - 63 52 - 67
Monthly benefits, as a % of eligible
compensation 1.426% to 2.418% 1.426% to 2.418% 1.0% to 2.5% Required employee contribution rates 7.00% 7.00% 6.75%
Required employer contribution rates 10.87% 8.63% 7.47% Safety Safety Safety
Classic Tier 1 Classic Tier 2 PEPRA
Prior to On or after Prior to
January 1, 2013 January 1, 2013 January 1, 2013
Benefit formula (at full retirement) 3.0% @ 50 3.0% @ 55 2.7% @ 57 Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Final average compensation period Three Year Three Year Three Year Retirement age 50 50 - 57 50 - 55
Monthly benefits, as a % of eligible
compensation 3.00% 2.0% to 2.7% 2.0% to 2.7%
Required employee contribution rates 9.00% 9.00% 13.00% Required employer contribution rates 23.75% 20.64% 12.78% The Miscellaneous Plan & Safety is closed to new participants that were not CalPERS participants prior to January 1, 2013 under the Public Employees’ Pension Reform Act of 2013 (PEPRA). Any new participants that were not previously CalPERS participants would be required to join the PEPRA Miscellaneous Plan.

Contributions: Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for the Plan are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The Town is required to contribute the difference between the actuarially determined rate and the contribution rate of employees. 215

TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2023
39 NOTE H – PENSION PLANS (Continued)
For the year ended June 30, 2023, the employer contributions made to the Plan were $2,890,885.

Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions:

As of June 30, 2023, the Town reported a net pension liability for its proportionate share of the net pension liability as follows:

Liability/Asset
City Miscellaneous Risk Pool 7,931,343 $
Safety Risk Pool 21,150,346
Total Net Pension Liability 29, $ 081,689
Proportionate Share
of Net Pension
The Town’s net pension liability is measured as the proportionate share of the net pension liability. The net pension liability of the Plan is measured as of June 30, 2021, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2020 rolled forward to June 30, 2021 using standard update procedures. The Town’s proportion of the net pension liability was based on a projection of the Town’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined. The Town’s proportionate share of the net pension liability for the Plan as of June 30, 2023 and 2022 was as follows:

Miscellaneous Safety
Plan Plan
Proportion - June 30, 2022 0.21326% 0.36935%
Proportion - June 30, 2023 0.16950% 0.30779%
Change - Increase (Decrease) -0.04376% -0.06156%
For the year ended June 30, 2023, the Town recognized a pension benefit of $2,126,680 for the Miscellaneous Plan and $1,709,818 for its Safety Plan. At June 30, 2023, the Town reported deferred outflows of resources and deferred inflows of resources related to the Plan combined from the following sources:

Deferred Deferred
Outflows of Inflows of
City Miscellaneous Risk Pool Resources Resources
Pension contributions subsequent to measurement date 980,042 $ Net differences between projected and actual earnings
on plan investments 1,452,811
Difference between employer's and proportionate share
of contributions $ (274,462)
Difference between expected and actual experience 159,277 (106,677) Change in employer's proportion (214,164) 34,073
Changes of assumptions 812,732
Total 3,438,935 $ (595,303) $
216

TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2023
40 NOTE H – PENSION PLANS (Continued)
Deferred Deferred
Outflows of Inflows of
Safety Risk Pool Resources Resources
Pension contributions subsequent to measurement date 1,910,843 $ Net differences between projected and actual earnings
on plan investments 3,339,935
Difference between employer's and proportionate
share of contributions (1,319,833) $
Difference between expected and actual experience 875,337 (229,675) Change in Employer's Proportion (61,166) 246,300
Changes of assumptions 2,132,595
Total 8,505,010 $ (1,610,674) $
Total - all risk pools 11,943,945 $ (2,205,977) $
The $2,890,885 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the subsequent fiscal year. Other amounts reported as net deferred inflows of resources related to pensions will be recognized as pension expense as follows:

City
Fiscal Year Ended Miscellaneous Safety
June 30 Risk Pool Risk Pool Total
2024 409,384 $ 1,270,865 $ 1,680,249 $
2025 360,936 1,054,111 1,415,047
2026 204,682 621,113 825,795
2027 888,588 2,037,404 2,925,992
$ 4,983,493 1,863,590 $ 6,847,083 $
Actuarial Assumptions: The total pension liabilities in the actuarial valuations for the Plan were determined using the following actuarial assumptions:

Valuation Date June 30, 2021
Measurement Date June 30, 2022
Actuarial Cost Method Entry-Age Normal Cost Method
Actuarial Assumptions:

Discount Rate 6.90%
Inflation 2.30%
Projected Salary Increase Varies by entry age and service Mortality Derived using CalPERS Membership Data for all Funds The mortality table used was developed based on CalPERS-specific data. The table includes 15 years of mortality improvements using Society of Actuaries Scale 90% of scale MP 2016. For more details on this table, please refer to the December 2017 experience study report (based on CalPERS demographic data from 1997 to 2015) that can be found on the CalPERS website. 217

TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2023
41 NOTE H – PENSION PLANS (Continued)
Discount Rate: The discount rate used to measure the total pension liability was 6.90% for the Plan, which represents a decrease from the prior year rate of 7.15%. To determine whether the municipal bond rate should be used in the calculation of a discount rate for the plan, CalPERS stress tested plans that would most likely result in a discount rate that would be different from the actuarially assumed discount rate. Based on the testing, none of the tested plans run out of assets. Therefore, the current discount rate is adequate and the use of the municipal bond rate calculation is not necessary. The long term expected discount rate is applied to all plans in the Public Employees Retirement Fund (PERF). The stress test results are presented in a detailed report that can be obtained from the CalPERS website.

The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class.

In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund. The expected rate of return was set by calculating the single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and longterm returns. The expected rate of return was then set equivalent to the single equivalent rate calculated above and rounded down to the nearest one quarter of one percent.

The table below reflects the long-term expected real rate of return by asset class for the Plan. The rate of return was calculated using the capital market assumptions applied to determine the discount rate and asset allocation. These rates of return are net of administrative expenses.

New Strategic Real Return
Asset Class Allocation Years 1 - 10(a)
Global Equity - cap-weighted 30.0% 4.45%
Global Equity - non-cap-weighted 12.0% 3.84%
Private Equity 13.0% 7.28%
Treasury 5.0% 0.27%
Mortgage-backed Securities 5.0% 0.50%
Investment Grade Corporates 10.0% 1.56%
High Yield 5.0% 2.27%
Emerging Market Debt 5.0% 2.48%
Private Debt 5.0% 3.57%
Real Assets 15.0% 3.21%
Leverage -5.0% -0.59%
Total 100.0%
(a) An expected inflation of 2.30% used for this period. 218

TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2023
42 NOTE H – PENSION PLANS (Continued)
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate: The following presents the Town’s proportionate share of the net pension liability for the Plans, calculated using the discount rate for the Plans, as well as what the Town’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1- percentage point higher than the current rate:

City
Miscellaneous Safety
Risk Pool Risk Pool Total
1% Decrease
Net Pension Liability $ 29,704,362 11,776,705 $ 41,481,067 $ Current Discount Rate
Net Pension Liability $ 21,150,346 7,931,343 $ 29,081,689 $ 1% Increase
Net Pension Asset 4,767,563 $ 14,159,370 $ 18,926,933 $ Pension Plan Fiduciary Net Position: Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports.

NOTE I – OTHER POST EMPLOYMENT BENEFITS (OPEB)
Plan Description: The post-employment benefit plan is a single-employer defined healthcare plan administered by the Town. The Town provides postretirement medical benefits, as provided for in various collective bargaining agreements for retirees that meet certain criteria. Upon enrollment in the PERS medical program, health plans for employees retiring after enrollment shall be in accordance with PERS medical program regulations. Employees of the Town, who immediately upon termination, retire under the PERS retirement plan, and remain in the Town’s medical plan, shall have a Town paid contribution towards the medical plan premium not to exceed the Town contribution to an active employee/employee plus spouse/employee plus 2 persons rate as prescribed in Town Resolution and PERS Health Plan Regulations.

The Town of Paradise participates in the Self-Insured Schools of California (SISC) Trust (the Plan) to pre-fund Other Post-employment Benefits (OPEB) liabilities reported in accordance with the Governmental Accounting Standards Board (GASB), and as specified in the Town policies and/or bargaining agreements. The SISC has made the program available to the Town and its eligible employees a Trust Fund known as the SISC Trust. The Trust Fund is intended to be a tax-exempt governmental trust established under Internal Revenue Section 115 and an irrevocable trust under applicable law of the State of California.

Employees Covered: As of the June 30, 2021 actuarial valuation, the following current and former employees were covered by the benefit terms under the Health Plan:

Inactive employees or beneficiaries currently receiving benefit payments 81 Active employees 65
Total 146
219

TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2023
43 NOTE I – OTHER POST EMPLOYMENT BENEFITS (OPEB) (Continued) Contributions: The Town funds the Plan on a pay-as-you-go basis. For the year ended June 30, 2023, the Town paid $677,933 on behalf of retirees, and made implicit subsidy payments of $95,961. The Town did not contribute to the trust.

Net OPEB Liability: The Town’s net OPEB liability (NOL) was measured as of June 30, 2021 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2021 based on the following actuarial methods and assumptions:

Funding Method Entry Age Normal Cost, level percent pay Asset Valuation Method Market value of assets
Long Term Return on Assets 6.50%
Discount Rates 4.27%
Participates Valued Only current active employees and retired participants and covered dependents are valued. No future entrants are considered in this valuation. Employees with no current medical coverage are assumed to elect PERS Choice upon retirement, with no dependents.

Service Retirement Rates Retirement rates for non-safety employees are taken from the 2014 CalPERS OPEB Assumptions Model for "Public Agency
Miscellaneous 2.0% at 55" For police employees, retirement rates are taken from the CalPERS "Police with 3.0% at 50" table
Benefit Cap Increases Benefit caps for all employees are assumed to remain uncahnged in future years
General Inflation Rate 2.30% per annum
Payroll Growth 2.80%
Mortality Improvement 2017 CalERS OPEB assumptions model Healthcare Trend Rate Based on 2021 Getzen model with actual premium increases through 2023 followed by 5.50% (non-Medicare) / 5.30% (Medicare) in 2022, decreasing gradually to an ultimate rate of 4.04%
Discount Rate: The discount rate used to measure the total OPEB liability was 4.27%. The discount rate is set equal to the expected long-term rate of return on the invested assets. The cash flows of the OPEB plan were projected to future years, assuming that the Town will contribute an amount at least equal to retirees’ benefits plus $20,000 per year, until the Net OPEB Liability is expected to be $0, and then small amounts thereafter to keep the NOL at $0. Under that projection, the plan assets are projected to be adequate to pay all benefits to retirees in all future years, so the discount rate has been set equal to the long-term expected rate of return on investments.

Changes in Actuarial Assumptions: The discount rate increased from 2.60% to 4.27%. Payroll growth, mortality and retirement rates have been updated. Health care trend rates were updated from 5% to actual premium increases from 2021 to 2022 followed by 5.50% (non-Medicare) and 5.30% (Medicare), decreasing gradually to 4.04% in 2075. In addition, the Town signed a Memorandum of Understanding in June 2022 that increases the Town’s maximum employee subsidy from non-safety employees to the same level as safety employees.
220

TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2023
44 NOTE I – OTHER POST EMPLOYMENT BENEFITS (OPEB) (Continued) Changes in the Net OPEB Liability: The changes in the net OPEB liability for the Plan are as follows:

Total OPEB Plan Fiduciary Net OPEB
Liability Net Position Liability/(Asset)
(a) (b) (c) = (a) - (b)
Balance - beginning of year $13,715,521 $282,033 13,433,488 $ Service cost 402,152 402,152
Interest cost 357,063 357,063
Investment income 609,318 (26,800) 636,118
Difference between expected
and actual experience 72,957 72,957
Changes in assumptions (2,336,582) (2,336,582)
Employer contributions 773,894 (773,894)
Benefit payments (773,894) (773,894)
Administrative expenses (572) 572
Net changes (1,668,986) (27,372) (1,641,614)
Balance - end of year 12,046,535 $ 254,661 $ 11,791,874 $ Sensitivity of the Net OPEB Liability to Changes in the Discount Rate: The following represents the net OPEB liability of the Town, as well as what the net OPEB liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate, for the measurement period ended June 30, 2021:
1% Decrease Discount Rate 1% Increase

3.27% 4.27% 5.27%
Net OPEB liability $13,108,942 $11,791,874 $10,676,739
Sensitivity of the Net OPEB Liability to Changes in the Health Care Cost Trend Rates: The following represents the net OPEB liability of the Town, as well as what the net OPEB liability would be if it were calculated using a discount rate that is one percentage point lower or one percentage point higher than the current rate, for the measurement period ended June 30, 2021:

Current Healthcare Cost
1% Decrease Trend Rates 1% Increase

3.50% 4.50% 5.50%
Net OPEB liability $11,549,560 $11,791,874 $12,035,011
221

TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2023
45 NOTE I – OTHER POST EMPLOYMENT BENEFITS (OPEB) (Continued) Recognition of Deferred Outflows and Deferred Inflows of Resources: Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. Amounts are first recognized in OPEB expense for the year the gain or loss occurs. The remaining amount are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expenses.

The recognition period differs depending on the source of the gain or loss. The net difference between projected and actual earnings on OPEB plan investments is recognized over 5 years. All other amounts are recognized over the expected average remaining service lifetime (EARSL), which was 6.00 years at June 30, 2023.

OPEB Expenses and Deferred Outflows/Inflows of Resources Related to OPEB: For the fiscal year ended June 30, 2023, the Town recognized OPEB expense of $1,607,745. As of fiscal year ended June 30, 2023, the Town reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:

Outflows of Inflows of
Resources Resources
OPEB contributions subsequent to measurement date 749,022 $ Differences between actual and expected experience 60,797 (393,203) $ Changes in assumptions 2,388,985 (1,953,187)
Net differences between projected and actual earnings
on OPEB plan investments 12,312
Total 3,211,116 $ (2,346,390) $
The $749,022 reported as deferred outflows of resources related to contributions subsequent to the measurement will be recognized as a reduction of the net OPEB liability in the subsequent fiscal period.

Other amounts reported as deferred outflows of resources and deferred inflows of resources related to OPEB will be recognized as follows:

Year Ending June 30:
2023 257,522 $
2024 272,714
2025 330,992
2026 (368,249)
2027 (377,275)
$ 115,704
222

TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2023
46 NOTE J – INSURANCE
The Town is a member of the Northern California Cities Self Insurance Fund (NCCSIF) along with twenty other northern California cities. The NCCSIF is a joint powers authority (JPA) organized in accordance with Article I, Chapter 5, Division 7, Title I of the California Government Fund Programs.

The purpose is to create a common pool of funds to be used to meet obligations of the parties to provide workers’ compensation benefits for their employees and to provide excess liability insurance. The NCCSIF provides claims processing administrative services, risk management services and actuarial studies. A member from each city governs the NCCSIF. The Town of Paradise council members do not have significant oversight responsibility, since they evenly share all factors of responsibility with the other cities. The Town does not retain the risk of loss. However, ultimate liability for payment of claims and insurance premiums resides with member cities. The NCCSIF is empowered to make supplemental assessments as needed to eliminate deficit positions of member cities. If the JPA becomes insolvent, the Town is responsible only to the extent of any deficiency in its equity balance.

Banking Layer/
Coverage Coverage Excess Deductible
Liability $ - 500,000 $ 50,000 $
Property 1,000,000,000 - 5,000
Boiler and machinery 100,000,000 - 2,500
Wildfire deductible - - 2,500,000
Mobile equipment 4,737,849 - 5,000
Workers Compensation liability 4,500,000 500,000 100,000 Cyber Excess 3,000,000 25,000,000 50,000
Crime 3,000,000 - 5,000
Deadly Weapon Response Program 500,000 - 50,000
The NCCSIF establishes claims liabilities based on estimates of the ultimate cost of claims (including future claims settlement expenses) that have been reported but not settled, plus estimates of claims that have been incurred but not reported. Because actual claims costs depend on various factors, the claims liabilities are recomputed periodically using a variety of actuarial and statistical techniques to produce current estimates that reflect recent settlements, claim frequency, and other economic and social factors.

A provision of inflation is implicit in the calculation of estimated future claims costs. Adjustments to claims liabilities are charged or credited to expense in the periods in which they are made.

Settlements have not exceeded the insurance coverage for the past three fiscal years. There have not been any significant reductions in insurance coverage over the prior year. The audited financial statements of the JPA are available at the NCCSIF’s office.

NOTE K – COMMITMENTS AND CONTINGENCIES
The Town participates in various federal and state assisted grant programs. These programs are subject to program compliance audits by the grantors. The audits by the grantors for the year ended June 30, 2023, have not yet been conducted. The amount, if any, of expenditures which may be disallowed by the granting agencies cannot be determined at this time although the Town expects such amounts, if any, to be immaterial.
223

TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2023
47 NOTE K – COMMITMENTS AND CONTINGENCIES (Continued)
The Town has the following contract commitments at June 30, 2023:

Paradise Project Owners Agent Design Build 5,000,000 $
Almond St Multi-Modal Improvements 2, 079,938
Early Warning System 1,210,888
Disaster Recovery 1,062,123
Communicatoin Strategy and Support Services 320,641
Septic Tank Replacement Pilot Program 142,500
$ 9,816,090
On March 9, 2021, the Town Council of the Town of Paradise approved the CAL FIRE contract for services from July 1, 2021 through June 30, 2025 for a maximum amount amended not to exceed $18,994,417. As of June 30, 2023, $9,749,431 was committed for fiscal years 2023/2024 and 2024/2025.

NOTE L – SUCCESSOR AGENCY TRUST FOR FORMER PARADISE REDEVELOPMENT AGENCY
In an effort to balance its budget, the State of California adopted ABx1 26 on June 28, 2011, as amended by AB1484 on June 27, 2012, which suspended all new redevelopment activities except for limited specified activities as of that date and dissolved redevelopment agencies on January 31, 2012.

Under the provisions of AB 1484, the Town elected to become the Successor Agency and the Redevelopment Agency’s remaining assets were distributed to and liabilities were assumed by the Successor Agency. ABx1 26 requires the establishment of an Oversight board to oversee the activities of the Successor Agency and one was established in April 2012. The activities of the Successor Agency are subject to review and approval of the Oversight Board, which is comprised of seven members, including one member of the Town Council, one former Redevelopment Agency employee appointed by the Mayor and the remaining members are appointed by external agencies with an interest in Successor Agency assets. Pursuant to Senate Bill 107, on July 1, 2018, a single consolidated County Oversight Board was established for the four Town Oversight Boards.

The activities of the Successor Agency are reported in the Successor Agency to the Redevelopment Agency Private-Purpose Trust Fund as the activities are under the control of the Oversight Board. The Town provides administrative services to the Successor Agency to wind down the affairs of the former Redevelopment Agency, including paying debt service payments of existing Redevelopment Agency debt agreements.

The following disclosures of the Successor Agency as of June 30, 2023 are required by debt continuing disclosure requirements.
224

TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2023
48 NOTE L – SUCCESSOR AGENCY TRUST FOR FORMER PARADISE REDEVELOPMENT AGENCY (Continued)
Long-term Liabilities
The following is a summary of changes in the Successor Agency’s long-term liabilities for the year ended June 30, 2023:

Balance Balance Due Within
July 01, 2022 Additions Retirements June 30, 2023 One Year Advance Payable 1,275,519 $ 1,275,519 $
Bonds payable - 2009 3,975,000 3,975,000 3,975,000 $
Bonds payable - 2016 1,380,000 1,380,000 1,380,000
$ - 6,630,519 $ - $ 6,630,519 $ 5,355,000 $
The long-term liabilities consisted of the following components for the fiscal year ended June 30, 2022:

Advance payable consisted of advances totaling $1,275,519 from the General Fund to the Town to assist the Successor Agency with administrative, operation, and program costs. The interest rate on this advance rate is 4.50%. These loans were approved by the Oversight Board as enforceable obligations.

No payments have been made since fiscal year 2018/19.

Bonds payable consisted of the following as of June 30, 2022:
2009 Tax Allocation Refunding Bonds
On October 21, 2009, the Town issued the 2009 Tax Allocation Refunding Bonds in the amount of $4,480,000. The refunding bond was used to refund the entire outstanding 2003 Tax Allocation Notes and the 2005 Tax Allocation Notes. The Refunding Bonds have a stated interest rate from 4.80% to

6.00% and mature on June 1, 2043. The Refunding Bonds are subject to redemption prior to their stated maturity, at the option of the Town, as a whole or in part pro rata among maturities and by lot within a maturity, on any date on or after June 1, 2019 from fonds derived by the Town from any sources at a redemption price equal to 100% of the principal amount thereof, together with accrued interest thereon to the redemption date, without premium. The original issue bond discount on these bonds is being amortized over the life of the bonds and is included with long-term debt on the balance sheet.

On February 1, 2012, the total principal balance of $4,377,893, which was net of the $102,107 of unamortized original issue bond discount, was transferring from the Town. The principal balance outstanding, as of June 30, 2023 was $3,975,000.
2016 Tax Allocation Refunding Bonds
On October 27, 2016, the Town issued the 2016 Tax Allocation Refunding Bonds in the amount of $1,475,000. The refunding bond was used to refund the entire outstanding 2006 Tax Allocation Notes.

The Refunding Bonds have a stated interest rate from 3.8% to 4.13% and mature on June 1, 2056. 225

TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2023
49 NOTE L – SUCCESSOR AGENCY TRUST FOR FORMER PARADISE REDEVELOPMENT AGENCY (Continued)
The Refunding Bonds will be subject to option redemption, as a whole or in part from maturities specified by the Successor Agency, prior to their maturity, at the option of the Successor Agency on any date on or after June 1, 2026, from funds derived by the Successor Agency from any source, at a redemption price equal to 100% of the principal amount of the 2016 Refunding Bonds to be redeemed, together with interest accrued thereon to the date fixed for redemption, without premium.

The 2016 Refunding Bonds maturing on June 1, 2031, June 1, 2036, June 1, 2046, and June 1, 2056 shall be subject to redemption prior to their stated maturity, in part on a pro rata basis, from sinking installments deposited in the principal account on June 1 of each year commencing June 1, 2018, June 1, 2032, June 1, 2037 and June 1, 2047, respectively, at the principal amount thereof and interest accrued thereon to the date fixed for redemption, without premium.

Default on Bonds: As outlined in the 2022 Annual Continuing Disclosure Information Statement for the 2009 Bonds and the 2016 Bonds, tax revenues for fiscal years 2022-23 and thereafter are projected to be insufficient to pay debt service on the 2009 Bonds and the 2016 Bonds due to the destruction of properties located in the Project Area by the Camp Fire in 2018. As a result, the amount on deposit in the reserve fund for the 2009 Bonds will be insufficient to pay the full amount of the principal and interest coming due and payable on the 2009 Bonds starting on June 1, 2023, and the amount on deposit in the reserve fund for 2016 Bonds will be insufficient to pay the full amount of the principal and interest coming due and payable on the 2016 Bonds starting on June 1, 2023. No payments have been made since that date. As a result, the bonds are reported as currently due and payable. It is important to note that these financial obligations are solely those of the Paradise Redevelopment Agency and are not obligations of the Town of Paradise.

Scheduled future debt service for Successor Agency at June 30, 2023 is as follows:
2009 Tax Allocation Refunding Bonds
Fiscal Year ended June 30: Principal Interest Total
2023 100,000 $ 236,388 $ 336,388 $
2024 110,000 230,638 340,638
2025 110,000 224,313 334,313
2026 120,000 217,988 337,988
2027 125,000 211,088 336,088
2028-2032 760,000 935,838 1,695,838
2033-2037 995,000 681,600 1,676,600
2038-2042 1,340,000 344,400 1,684,400
2043-2047 315,000 18,900 333,900
Totals 3,975,000 $ 3,101,153 $ 7,076,153 $
226

TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2023
50 NOTE L – SUCCESSOR AGENCY TRUST FOR FORMER PARADISE REDEVELOPMENT AGENCY (Continued)
2016 Tax Allocation Refunding Bonds
Fiscal Year ended June 30: Principal Interest Total
2023 20,000 $ 55,149 $ 75,149 $
2024 54,389 20,000 74,389
2025 53,629 20,000 73,629
2026 52,869 25,000 77,869
2027 51,919 25,000 76,919
2028-2032 245,344 130,000 375,344
2033-2037 160,000 218,781 378,781
2038-2042 190,000 185,181 375,181
2043-2047 235,000 143,581 378,581
2048-2052 285,000 91,575 376,575
2053-2056 270,000 28,256 298,256
Totals 1,380,000 $ 1,180,673 $ 2,560,673 $
State Approval of Enforceable Obligations: The Successor Agency prepares a Recognized Obligation Payment Schedule (ROPS) semiannually that contains all proposed expenditures for the subsequent sixmonth period. The ROPS is subject to the review and approval of the Oversight Board as well as the State Department of Finance. The amount, if any, of current obligations that may be denied by the State Department of Finance cannot be determined at this time. The Town expects such amounts, if any, to be immaterial.

NOTE M – EXTRAORDINARY ITEMS – CAMP FIRE
On November 8, 2018, the Camp Fire, the most destructive wildfire in California State history, swept through the Town of Paradise and destroyed roughly 90 percent of the Town’s residences and businesses.

This has resulted in material effects to the Town’s future revenues and finances; however, the Town is well supported and on the path to recovery. Federal, State and local partners will assist with long-term recovery. Insurance and the State of California will provide short-term lost revenue backfills. The following account balances and transactions were recorded as a result of the Camp Fire.

In fiscal years 2020 and 2019, the State of California advanced $8.5 million towards a FEMA public assistance claim. The remaining balance of the grant, $3,195,571 is recorded as unearned revenue in the Camp Fire Fund.
227

TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2023
51 NOTE N – SUBSEQUENT EVENTS
Subsequent to June 30, 2023, the Town extended an agreement in order to receive up to $2,469,159 in match funding for Phase 2 tree removal program from CAL FIRE.

Subsequent to June 2023, the Town was awarded $33 million for the Roe Road Extension Project from the California Transportation Commission.
228

COMPLIANCE REPORT

REQUIRED SUPPLEMENTARY INFORMATION
229

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230

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -

BUDGET AND ACTUAL (BUDGETARY BASIS) - GENERAL FUND
Actual
(Budgetary Variance with
Original Final Basis) Final Budget

REVENUES
Taxes and assessments 6,591,000 $ 6,591,000 $ 8,102,819 $ 1,511,819 $ Licenses, permits and impact fees 444,712 444,712 388,046 (56,666) Fines and forfeitures 26,100 26,100 116,637 90,537
Intergovernmental revenues 1,544,457 1,544,457 829,158 (715,299) Use of money and property 1,117,005 1,117,005 1,241,857 124,852 Reimbursements 3,900 2,231,743 2,472,068 240,325
Charges for services 320,954 383,904 338,835 (45,069)
Other revenues 488,575 488,575 411,226 (77,349)
TOTAL REVENUES 10,536,703 12,827,496 13,900,646 1,073,150

EXPENDITURES
Current:

General government 3,262,676 3,190,076 3,309,232 119,156 Community development 1,585,713 1,585,713 641,138 (944,575) Public safety 11,874,046 11,947,896 11,808,400 (139,496) Public works 810,269 1,034,339 843,349 (190,990)
Parks and recreation 65,885 65,885 71,401 5,516
Capital outlay 1,889,820 2,497,110 2,522,090 24,980
Debt Service:

Principal 549,257 549,257 542,203 (7,054)
Interest and fiscal charges 685,342 685,342 690,485 5,143 TOTAL EXPENDITURES 20,723,008 21,555,618 20,428,298 (1,127,320) Excess of revenues over (under)
expenditures (10,186,305) (8,728,122) (6,527,652) 2,200,470

OTHER FINANCING SOURCES (USES)
Transfers in 896,614 923,896 477,487 (446,409)
Transfers out (1,412,273) (2,053,714) (1,533,995) 519,719 Total other financing sources (515,659) (1,129,818) (1,056,508) 73,310 Net change in fund balance (10,701,964) (9,857,940) (7,584,160) 2,273,780 Fund balance, beginning of year 211,636,436 211,636,436 211,636,436 Fund balances, end of year $ 201,778,496 200,934,472 $ 204,052,276 $ 2,273,780 $ The accompanying notes are an integral part of these financial statements.

Budgeted Amounts

TOWN OF PARADISE
For the Year Ended June 30, 2023
52 231

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) - CAMP FIRE 2018 FUND Actual
(Budgetary Variance with
Original Final Basis) Final Budget

REVENUES
Intergovernmental revenues 4,642,667 $ 4,642,667 $ 647,659 $ (3,995,008) $ Reimbursements 663,650 648,150 92,410 (571,240)
Other revenues - - 474 474
TOTAL REVENUES 5,290,817 5,306,317 740,543 (4,565,774)

EXPENDITURES
Current:

General government 55,000 55,000 283,424 228,424
Community development 653,712 653,712 263,373 (390,339) Public works 4,907,389 4,907,389 (4,907,389)
Capital outlay 1,000 1,000 742,440 741,440
TOTAL EXPENDITURES 5,617,101 5,617,101 1,289,237 (4,327,864) Excess of revenues over (under)
expenditures (326,284) (310,784) (548,694) (237,910)

OTHER FINANCING SOURCES (USES)
Transfers in 1,058,972 1,058,972 679,988 (378,984)
Transfers out (732,688) (748,188) (272,941) 475,247
Total other financing sources 326,284 310,784 407,047 96,263 Net change in fund balance - - (141,647) (141,647)
Fund balance, beginning of year (3,212,855) (3,212,855) (3,212,855) Fund balances, end of year $ (3,212,855) (3,212,855) $ (3,354,502) $ (141,647) $ The accompanying notes are an integral part of these financial statements.

TOWN OF PARADISE
For the Year Ended June 30, 2023
Budgeted Amounts
53 232

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -

BUDGET AND ACTUAL (BUDGETARY BASIS) - DISASTER RECOVERY PROJECTS Actual
(Budgetary Variance with
Original Final Basis) Final Budget

REVENUES
Other revenues 1,351 $ 1,351 $
TOTAL REVENUES - - 1,351 1,351

EXPENDITURES
Current:

Community development $ 19,494,907 18,735,466 $ 1,160,152 (18,334,755) Public safety 50,000 50,000 9,810 (40,190)
Capital outlay 14,299,411 14,299,411
TOTAL EXPENDITURES 18,735,466 19,494,907 15,469,373 (4,035,344) Excess of revenues over (under)
expenditures (18,735,466) (19,494,907) (15,468,022) 4,036,695

OTHER FINANCING SOURCES (USES)
Transfers in 19,734,712 20,494,153 12,850,171 (7,643,982) Transfers out (133,528) (133,528)
Total other financing sources 19,734,712 20,494,153 12,716,643 (7,777,510) Net change in fund balance 999,246 999,246 (2,751,379) (3,740,815) Fund balance, beginning of year (22,552) (22,552) (22,552) Fund balances, end of year $ 976,694 976,694 $ (2,773,931) $ (3,740,815) $ The accompanying notes are an integral part of these financial statements.

TOWN OF PARADISE
For the Year Ended June 30, 2023
Budgeted Amounts
54 233

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -

BUDGET AND ACTUAL (BUDGETARY BASIS) - HIGHWAY GRANTS
Actual
(Budgetary Variance with
Original Final Basis) Final Budget

REVENUES
Intergovernmental revenues 10,492,516 $ 10,658,067 $ 12,956,480 $ 2,298,413 $ TOTAL REVENUES 10,492,516 10,658,067 12,956,480 2,298,413 Excess of revenues over (under)
expenditures 10,492,516 10,658,067 12,956,480 2,298,413

OTHER FINANCING SOURCES (USES)
Transfers in - -
Transfers out (10,492,516) (10,658,067) (11,368,860) (710,793) Total other financing sources (10,492,516) (10,658,067) (11,368,860) (710,793) Net change in fund balance - - 1,587,620 1,587,620
Fund balance, beginning of year 335,379 335,379 335,379 Fund balances, end of year $ 335,379 335,379 $ 1,922,999 $ 1,587,620 $ The accompanying notes are an integral part of these financial statements.

TOWN OF PARADISE
For the Year Ended June 30, 2023
Budgeted Amounts
55 234

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -

BUDGET AND ACTUAL (BUDGETARY BASIS) - LOAN FUNDS
Actual
(Budgetary Variance with
Original Final Basis) Final Budget

REVENUES
Use of money and property 13,288 $ 13,288 $
Program income 130,000 $ 130,000 $ 501,551 371,551
TOTAL REVENUES 130,000 130,000 514,839 384,839

EXPENDITURES
Current:

Community development 302,500 302,500 265,229 (37,271)
TOTAL EXPENDITURES 302,500 302,500 265,229 (37,271)
Excess of revenues over (under)
expenditures (172,500) (172,500) 249,610 422,110

OTHER FINANCING SOURCES (USES)
Transfers in 2,500 2,500 (2,500)
Transfers out (184,457) (184,457) (291,478) (107,021)
Total other financing sources (181,957) (181,957) (291,478) (109,521) Net change in fund balance (354,457) (354,457) (41,868) 312,589 Fund balance, beginning of year 3,670,462 3,670,462 3,670,462 Fund balances, end of year $ 3,316,005 3,316,005 $ 3,628,594 $ 312,589 $ The accompanying notes are an integral part of these financial statements.

TOWN OF PARADISE
For the Year Ended June 30, 2023
Budgeted Amounts
56 235

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL (BUDGETARY BASIS) - CalHOME GRANTS
Actual
(Budgetary Variance with
Original Final Basis) Final Budget

REVENUES
Intergovernmental revenues 2,707,630 $ 2,727,630 $ 2,658,990 $ (68,640) $ Use of money and property 124 124
Program income 574 574
TOTAL REVENUES 2,707,630 2,727,630 2,659,688 (67,942)

EXPENDITURES
Current:

Community development 2,250,000 2,250,000 4,036,670 1,786,670 TOTAL EXPENDITURES 2,250,000 2,250,000 4,036,670 1,786,670 Excess of revenues over (under)
expenditures 457,630 477,630 (1,376,982) (1,854,612)

OTHER FINANCING SOURCES (USES)
Transfers out (358,390) (378,390) (240,218) 138,172
Total other financing sources (358,390) (378,390) (240,218) 138,172 Net change in fund balance 99,240 99,240 (1,617,200) (1,716,440) Fund balance, beginning of year (971,555) (971,555) (971,555) Fund balances, end of year $ (872,315) (872,315) $ (2,588,755) $ (1,716,440) $ The accompanying notes are an integral part of these financial statements.

TOWN OF PARADISE
For the Year Ended June 30, 2023
Budgeted Amounts
57 236

STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES -

BUDGET AND ACTUAL (BUDGETARY BASIS) - CDBG GRANTS FUND
Actual
(Budgetary Variance with
Original Final Basis) Final Budget

REVENUES
Intergovernmental revenues 5,941,014 $ 5,962,463 $ 2,794,601 $ (3,167,862) $ Use of money and property 139 139
TOTAL REVENUES 5,941,014 5,962,463 2,794,740 (3,167,723)

EXPENDITURES
Current:

Community development 200,000 200,000 1,343,103 1,143,103 TOTAL EXPENDITURES 200,000 200,000 1,343,103 1,143,103
Excess of revenues over (under)
expenditures 5,741,014 5,762,463 1,451,637 (4,310,826)

OTHER FINANCING SOURCES (USES)
Transfers out (4,889,727) (5,095,646) (3,024,624) 2,071,022 Total other financing sources (4,889,727) (5,095,646) (3,024,624) 2,071,022 Net change in fund balance 851,287 666,817 (1,572,987) (2,239,804) Fund balance, beginning of year (1,497,923) (1,497,923) (1,497,923) Fund balances, end of year $ (831,106) (646,636) $ (3,070,910) $ (2,239,804) $ The accompanying notes are an integral part of these financial statements.

TOWN OF PARADISE
For the Year Ended June 30, 2023
Budgeted Amounts
58 237
June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Proportion of the net pension liabilit 0.25177% 0.31455% 0.23328% 0.22936% 0.22659% 0.21895% 0.21960% 0.21454% 0.20733% Proportionate share of the net pension liabilit $ 17,011,738 29,081,689 $ 25,381,614 $ 23,502,428 $ 21,834,378 $ 21,713,980 $ 19,003,356 $ 14,725,536 $ 12,901,028 $ Covered payroll - measurement period $ 4,792,559 5,416,012 $ 3,834,730 $ 3,849,696 $ 3,764,228 $ 3,789,395 $ 3,511,751 $ 3,474,659 $ 3,208,769 $ Proportionate share of the net pension liabilit
as a percentage of covered payrol 536.96% 354.96% 661.89% 610.50% 580.05% 573.02% 541.14% 423.80% 402.06% Plan fiduciary net position as a percentage o
the total pension liability 71.88% 84.89% 75.10% 75.30% 75.30% 73.30% 74.06% 78.40% 79.82% Notes to Schedule:

June 30, 2023 June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 Contractually required contribution
(actuarially determined) $ 2,545,505 2,890,885 $ 2,261,174 $ 1,476,369 $ 1,168,177 $ 1,458,470 $ 1,248,468 $ 628,975 $ 563,889 $ Contributions in relation to the actuarially
determined contributions (2,890,885) (2,545,505) (2,261,174) (1,940,581) 1,387,082 (1,610,515) (1,189,673) (1,070,254) (550,258) Contribution deficiency (excess) - $ - $ - $ (464,212) $ - $ - $ 58,795 $ (441,279) $ - $ Covered payroll - fiscal year $ 5,416,012 6,435,817 $ 4,792,559 $ 3,834,730 $ 3,849,696 $ 3,764,228 $ 3,789,395 $ 3,511,751 $ 3,474,659 $ Contributions as a percentage of covered payrol 44.92% 47.00% 47.18% 50.61% 41.83% -36.85% 31.39% 30.48% 15.84% Valuation date: June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 June 30, 2016 June 30, 2015 June 30, 2014 June 30, 2013 June 30, 2012 Methods and assumptions used to determine contribution rates Actuarial cost method
Amortized method
Remaining amortization period
Asset valuation method Market
Value
Market
Value
Market
Value
Market
Value
Market
Value
Market
Value
Market
Value
Market
Value
15-year
smoothed
market
Inflation 2.50% 2.50% 2.50% 2.625% 2.75% 2.75% 2.75% 2.75% 2.75% Salary increases
Payroll growth 2.75% 2.75% 2.75% 2.875% 3.00% 3.00% 3.00% 3.00% 3.00% Investment rate of return 7.00% (1) 7.00% (1) 7.00% (1) 7.25% (1) 7.375% (1) 7.50% (1) 7.50% (1) 7.50% (1) 7.50% (1) Mortality (4) (4) (4) (3) (3) (3) (2) (2) (2)
Notes to Schedule:

Level percentage of payroll, closed
Varies, not more than 30 years
Omitted years: The year ended June 30, 2015 was the first year of implementation of GASB Statement No. 68, the information prior to this date were not presented. (1) Net of administrative expenses, includes inflation. (2) Probabilities of retirement and mortality are based on CalPERS' 2010 Experience Study for the period from 1997 to 2007. (3) Probabilities of retirement and mortality are based on CalPERS' 2014 Experience Study for the period from 1997 to 2011. (4) Probabilities of retirement and mortality are based on CalPERS' 2017 Experience Study for the period from 1997 to 2015.

Varies by Entry Age and Service

TOWN OF PARADISE

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2022

SCHEDULE OF THE PROPORTIONATE SHARE OF THE

NET PENSION LIABILITY - MISCELLANEOUS AND SAFETY PLAN (UNAUDITED) Entry age normal
Last 10 Years
Last 10 Years

SCHEDULE OF CONTRIBUTIONS TO THE PENSION PLAN - MISCELLANEOUS AND SAFETY PLAN (UNAUDITED) Change in Benefit Terms: The figures above do not include any liabilityimpact that may have resulted from plan changes which occurred after June 30, 2013 as they have minimal cost impact. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).

Changes in assumptions: The discount rate was changed from 7.50% in 2015 to 7.65% in 2016 and to 7.15% in 2018 Omitted years: GASB Statement No. 68 was implemented during the year ended June 30, 2015. No information was available prior to this dat 59 238
Reporting Date - Based on Measurement Period 2022 2021 2020 2019 2018 2017

TOTAL OPEB LIABILITY
Service Cost $ 110,454 402,152 $ 107,237 $ 153,868 $ 149,386 $ 145,035 $ Interest 643,913 357,063 637,764 663,993 661,804 661,041 Investment income 609,318
Difference Between Expected and Actual Experience (436,000) 72,957 (424,055) Changes of Assumptions 3,981,641 (2,336,582) (19,451)
Benefit Payments (748,993) (773,894) (784,503) (771,250) (783,788) (792,419) Net Change in Total OPEB Liability 3,551,015 (1,668,986) (39,502) (396,895) 27,402 13,657 Total OPEB Liability - Beginning 10,164,506 13,715,521 10,204,008 10,600,903 10,573,501 10,559,844 Total OPEB Liability - Ending (a) 12,046,535 $ 13,715,521 $ 10,164,506 $ 10,204,008 $ 10,600,903 $ 10,573,501 $

PLAN FIDUCIARY NET POSITION
Contributions - Employer $ 748,993 773,890 $ 784,503 $ 771,250 $ 852,682 $ 817,419 $ Net Investment Income 63,661 (26,800) (227) 12,915 11,096 11,016 Benefit Payments (748,993) (773,894) (784,503) (771,250) (783,788) (792,419) Administrative expenses (487) (572) (323) (323) (198)
Net Change in Fiduciary Net Position 63,174 (27,376) (550) 12,592 79,792 36,016 Plan Fiduciary Net Position - Beginning 218,859 282,033 219,409 206,817 127,025 91,009 Plan Fiduciary Net Position - Ending (b) 254,657 $ 282,033 $ 218,859 $ 219,409 $ 206,817 $ 127,025 $ Plan Net OPEB Liability/(Asset) - Ending (a) - (b) $ 13,433,488 11,791,878 $ 9,945,647 $ 9,984,599 $ 45,061,840 $ 10,446,476 $ Plan Fiduciary Net Position as a Percentage of
the Total OPEB Liability 2.11% 2.06% 2.15% 2.15% 1.95% 1.20% Covered-employee payroll - measurement period $ 4,579,309 5,128,559 $ 3,834,730 $ 3,849,529 $ 4,290,581 $ 3,854,764 $ Net OPEB liability as percentage
of covered-employee payroll 229.93% 293.35% 259.36% 259.37% 1050.25% 271.00%

AND RELATED RATIOS (UNAUDITED)
Last 10 Years

TOWN OF PARADISE

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023

SCHEDULE OF CHANGES IN NET OPEB LIABILITY
60 239
2023 2022 2021 2020 2019 2018
Actuarially determined contribution - employer fiscal year 878,029 $ 863,005 $ 676,317 $ 709,387 $ 701,420 $ 1,165,684 $ Contribution in relation to the actuarially determined
contributions (766,353) (749,022) (748,993) (781,580) (701,420) (779,349) Contribution deficiency (excess) 129,007 $ 96,652 $ (72,676) $ (72,193) $ - $ - $ Covered-employee payroll - employer fiscal year 6,435,817 $ 5,128,559 $ 4,579,309 $ 3,849,529 $ 4,290,581 $ 3,854,764 $ Contributions as a percentage of covered-employee payroll 11.64% 14.94% 16.36% 20.30% 16.35% 20.22% Notes to Schedule
Valuation date June 30, 2021 June 30, 2021 June 30, 2019 June 30, 2019 June 30, 2017 June 30, 2017 Measurement period June 30, 2022 June 30, 2021 June 30, 2020 June 30, 2019 June 30, 2018 June 30, 2017 Methods and assumptions used to determine contribution rates:

Actuarial cost method
Amortization method
Amortization period
Asset valuation method
Inflation 2.30% 2.50% 2.50% 2.50% 2.26% 2.26%
Salary increases
Discount rate 4.27% 2.60% 6.50% 6.50% 7.28% 7.28%
Investment rate of return 6.50% 6.50% 6.50% 6.50% 7.28% 7.28% Healthcare cost-trend rate, initial 5.50% 5.75% 6.40% 6.40% 7.85% 7.85% Heathcare trending down to 4.04% 4.04% 4.00% 4.00% 5.00% 5.00% Retirement age
Mortality
Last 10 Years

TOWN OF PARADISE

REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2023

SCHEDULE OF CONTRIBUTIONS TO THE OPEB PLAN (UNAUDITED)
Entry Age Normal Cost Method
Level percentage of payroll, closed
30 years
Market value of assets
Varies by entry age and service
Most recent CalPERS Experience Study
Most recent CalPERS Experience Study
61 240

COMBINING STATEMENTS AND INDIVIDUAL FUND STATEMENTS
241
Building
Safety and
Wastewater Local Community
Services Transportation Gas Tax Development
ASSETS
Cash and investments 5,195,664 $ 106,721 $
Accounts receivable 3,587
Due from other governments 47,619 548,332 $ 1,018,245 1,034,149 $ Loans receivable
TOTAL ASSETS 5,246,870 $ 548,332 $ 1,124,966 $ 1,034,149 $

LIABILITIES
Accounts payable 93,174 $ 747 $ 15,175 $
Accrued wages 54,203 1,867 39,040
Deposits
Due to other funds 153,478 195,502 58,987 743,249 $
Unearned revenue 114,667 66,821
TOTAL LIABILITIES 415,522 198,116 180,023 743,249

DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 547,623

TOTAL DEFERRED INFLOWS
OF RESOURCES 547,623

FUND BALANCES (DEFICITS)
Restricted 4,831,348 944,943 290,900
Unassigned (197,407)
TOTAL FUND BALANCES (DEFICITS) 4,831,348 (197,407) 944,943 290,900

TOTAL LIABILITIES, DEFERRED
INFLOWS, AND FUND BALANCES 5,246,870 $ 548,332 $ 1,124,966 $ 1,034,149 $ Special Revenue

COMBINING BALANCE SHEET

NONMAJOR GOVERNMENTAL FUNDS
June 30, 2023

TOWN OF PARADISE
62 242
Total
Public Nonmajor
FEMA Safety Other Home Grant Governmental
Grants Grants Grants Impact Fees Fund Funds
178,878 $ 120,895 $ 1,475,571 $ 7,077,729 $
3,587
$ 2,593 182,489 44,980 1,770,417 259 $ 4,649,083

$ 181,471 1,770,417 $ 303,384 $ 1,520,551 $ 259 $ 11,730,399 $ 21 $ 12,375 $ 3,744 $ 125,236 $
11,106 106,216
191,975 191,975
$ 1,242,004 172,312 2,565,532
62,500 243,988
21 1,242,004 74,875 379,137 3,232,947
547,623
547,623
528,413 181,450 228,509 1,520,551 $ 8,526,114
(378,878) (576,285)
181,450 528,413 228,509 1,520,551 (378,878) 7,949,829
$ 181,471 1,770,417 $ 303,384 $ 1,520,551 $ 259 $ 11,730,399 $ Special Revenue
63 243
Building
Safety and
Wastewater Local Community
Services Transportation Gas Tax Development

REVENUES
Taxes and assessments 1,481,963 $
Licenses, permits and impact fees 902,019 $
Fines and forfeitures 8,200
Intergovernmental revenues 432,867 $ 1,640,089 $
Use of money and property 15,823 11
Reimbursement 709 18,413
Charges for services 2,462,709 1,126
Other revenues 9 1,731
TOTAL REVENUES 3,388,760 435,307 1,500,376 1,641,226

EXPENDITURES
Current:

General government 9,664 4,712
Community development 2,603,849 322
Public safety
Streets 60,333 1,548,817
Capital outlay 48,255 121,309
Debt Service:

Principal 21,410 10,719
TOTAL EXPENDITURES 2,683,178 60,591 1,691,154 322

EXCESS OF REVENUES (OVER)
(UNDER) EXPENDITURES 705,582 374,716 (190,778) 1,640,904

OTHER FINANCING SOURCES (USES)
Transfers in 11 75,282 707,166
Transfers out (919,466) (169,460) (85,175) (1,353,026)

TOTAL OTHER FINANCING
SOURCES (USES) (94,178) (919,455) 621,991 (1,353,026)
NET CHANGE IN FUND BALANCES 611,404 (544,739) 431,213 287,878 Fund balances, beginning of year 4,219,944 347,332 513,730 3,022 Fund balances, end of year $ (197,407) 4,831,348 $ 944,943 $ 290,900 $ Special Revenue

TOWN OF PARADISE

COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES

NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended June 30, 2023
64 244
Total
Public Nonmajor
FEMA Safety Other Home Grant Governmental
Grants Grants Grants Impact Fees Fund Funds
1,481,963 $
81,997 $ 984,016
8,200
$ 176,825 2,527,183 $ 668,384 $ 5,445,348
698 1,122 519 4,921 28 $ 23,122
218,855 199,733
2,463,835
16,228 131,433 150 149,551
193,751 2,528,305 1,000,069 86,918 178 10,774,890
14,376
18,047 380,042 3,002,260
173,577 173,577
1,609,150
169,564
32,129
173,577 - 18,047 - 380,042 5,006,911
20,174 2,528,305 982,022 86,918 (379,864) 5,767,979
62,500 133,528 383,363 1,361,850
(3,024) (2,001,572) (969,607) (342,947) (32,805) (5,877,082) (3,024) (2,001,572) (907,107) (209,419) 350,558 (4,515,232) 17,150 526,733 74,915 (122,501) (29,306) 1,252,747
1,680 164,300 153,594 1,643,052 (349,572) 6,697,082
$ 181,450 528,413 $ 228,509 $ 1,520,551 $ (378,878) $ 7,949,829 $ Special Revenue
65 245
Employee PD Found
Bank Money Total
ASSETS
Cash and investments $ 12,499 1,706 $ 14,205 $
TOTAL ASSETS 1,706 $ 12,499 $ 14,205 $

LIABILITIES
Accounts payable - $ 3,444 $ 3,444 $
TOTAL LIABILITIES - $ 3,444 $ 3,444 $

NET POSITION
Restricted for organizations, individuals
and other governments 1,706 $ 9,055 $ 10,761 $
TOTAL FIDUCIARY NET POSITION 1,706 $ 9,055 $ 10,761 $

TOWN OF PARADISE

COMBINING STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES

CUSTODIAL FUNDS
June 30, 2023
66 246
Employee PD Found
Bank Money Total

ADDITIONS
Other revenue 67 $ 67 $
TOTAL ADDITIONS 67 - $ 67
CHANGE IN NET POSITION 67 - 67
Net position, beginning of year 9,055 10,694 1,639
Net position, end of year 1,706 $ 9,055 $ 10,761 $

TOWN OF PARADISE

STATEMENT OF CHANGES IN FIDUCIARY ASSETS AND LIABILITIES

CUSTODIAL FUNDS
June 30, 2023
67 247
50 Howe Avenue, Suite 210
Sacramento, California 95825
Telephone: (916) 564-8727
FAX: (916) 564-8728

GOVERNANCE LETTER
To the Town Council
Town of Paradise
Paradise, California
We have audited the financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the Town of Paradise, California (the Town), for the year ended June 30, 2023, and have issued our report thereon dated September 13, 2024. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards (and, if applicable, Government Auditing Standards and the Uniform Guidance), as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated May 13, 2022. Professional standards also require that we communicate to you the following information related to our audit.

Our Responsibility under U.S. Generally Accepted Auditing Standards, Government Auditing Standards and Uniform Guidance
As stated in our engagement letter dated May 13, 2022, our responsibility, as described by professional standards, is to express opinions about whether the financial statements prepared by management with your oversight are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles. Our audit of the financial statements does not relieve you or management of your responsibilities.

In planning and performing our audit, we consider the Town’s internal control over financial reporting in order to determine our auditing procedures for the purpose of expressing our opinions on the financial statements and not to provide assurance on the internal control over financial reporting. We also consider internal control over compliance with requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with the Uniform Guidance.

As part of obtaining reasonable assurance about whether the Town’s financial statements are free of material misstatement, we will perform tests of its compliance with certain provisions of laws, regulations, contracts, and grants. However, providing an opinion on compliance with those provisions is not an objective of our audit. Also in accordance with the Uniform Guidance, we will examine, on a test basis, evidence about the Town’s compliance with the types of compliance requirements described in the U.S.

Office of Management and Budget (OMB) Compliance Supplement applicable to each of its major federal programs for the purpose of expressing an opinion on the Town’s compliance with those requirements.

While our audit will provide a reasonable basis for our opinion, it will not provide a legal determination on the Town’s compliance with those requirements.
248
To the Town Council

Page 2 ends

Paradise City CouncilOctober 8, 2024

Paradise City Council
October 8, 2024