Town of Paradise
Town Council Meeting Agenda
6:00 PM – January 13, 2026
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.
Interim Town Manager, Michael O’Brien
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, Jason Finney
Chief of Police, Eric Reinbold
Recovery & Economic Development Director, Colette Curtis Human Resources & Risk Management Director, Crystal Peters Information Systems Director, Luis Marquez
Mayor, Steve Crowder
Vice Mayor, Steve “Woody” Culleton
Council Member, Greg Bolin
Council Member, Heidi Lange
Council Member, Ronald Lassonde
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. p6 Camp Fire Recovery Updates - Written reports are included in the agenda packet.
Colette Curtis, Recovery and Economic Development Director - recovery projects, advocacy, economic recovery and development, communications, emergency operations and Housing updates.
Marc Mattox, Assistant Town Manager -infrastructure and sewer updates. 1f. p15 Paradise Sewer Project Update by Assistant Town Manager Marc Mattox.
1g. Quarterly investment report presentation by Meeder Investment's Jim McCourt.
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. p17 Approve minutes of the December 9, 2025 Special and Regular Town Council meetings. (Melanie Elvis/Town Clerk)
2b. p29 Approve December 2025 Cash Disbursements in the amount of $10,189,845.38. (Finance Director/Aimee Beleu)
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 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
2 3
5a. p37 Conduct a duly noticed and published public hearing to solicit comments and/or suggestions regarding the 2026-2027 Annual Action Plan funding priorities. (Colette Curtis/Recovery & Economic Development Director)
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. p40 1. Provide direction relating to the conditional CDBG-DR allocation of $13.5M for the Paradise Sewer Project or Oliver Curve Project; and,
2. Approve the Paradise Community Development Block Grant Disaster Recovery – Infrastructure Action Plan Amendment 4; and, 3. Adopt Resolution 2026-__ “A Resolution of the Town Council of the Town of Paradise Canceling the Evacuation Route Permanent Changeable Message Sign Project Standard Agreement and Redirecting Allocated Funds to Storm Drain Resiliency Project Phase 1”; or, 4. Provide alternate direction. (ROLL CALL VOTE) (Marc Mattox/Assistant Town Manager) 6b. p68 1. Consider concurring with staff’s recommendation to accept the amended and re-stated (formerly PDB contract) Professional Services Agreement with Carollo Engineers to complete design of the Paradise Sewer Project Collection System with a not to exceed amount of $4.5M; and, 2. Delegate authority to the Town Manager to approve individual task orders under the new Professional Services Agreement so long as they stay under authorized NTE; and, 3. Adopt Resolution No. 2026-___ “A Resolution of the Town Council of the Town of Paradise to Concur with the Paradise Sewer Project Ad Hoc Committee’s Recommendation to Keep Carollo Engineers as the Designer for the Phase One Reduced Collection System and Enter into a Contract with them for the Remaining Design Work Related to this Scope of Work.” (ROLL CALL VOTE) (Marc
Mattox/Assistant Town Manager)
6c. p74 1. Consider concurring with staff’s recommendation to increase the overall amount of the HDR Master Services Agreement (MSA) from $5M to $9.5M for Owner’s Agent services through the start of construction of the Paradise Sewer Project and extend the expiration date of the MSA to December 31, 2029; and, 2. Delegate authority to the Town Manager to approve individual task orders under the Master Services Agreement as long as they stay under the total dollar amount of the MSA and with concurrence of the Paradise Sewer Project Ad Hoc Committee; and,
3. Adopt Resolution No. 2026-___ “A Resolution of the Town Council of the Town of Paradise to Concur with the Paradise Sewer Project Ad Hoc Committee’s Recommendation to Approve an Amendment to the Existing Master Services Agreement with HDR that Includes a $4.5M Increase to the Existing Not-To-Exceed Amount and a Time Extension to December 31, 2029.” (ROLL CALL VOTE) (Marc Mattox/Assistant Town Manager) 6d. p78 1. Consider concurring with staff’s recommendation to select Arbor Pros to enter into a one (1) year agreement with up to two (2) one (1) year extensions not to exceed three years to provide vegetation management 3 and hazardous fuels reduction services within the Town of Paradise rightof-way; and, 2. Direct staff to enter negotiations with Arbor Pros to reach and execute a funding-compliant agreement approved and executed by the Town Manager and Town Attorney; and, 3. Adopt Resolution 2026-___ “A Resolution of the Town Council of the Town of Paradise, Designating Authority to the Paradise Town Manager To Execute The Agreement for Professional Services and Individual Task Orders Under the Resultant Master Agreement for RFQ 7315 Hazardous Fuels Reduction Services, up to the Maximum Contract Aggregate Amount of $1.219M.” (ROLL CALL VOTE) (Marc Mattox/Assistant Town Manager)
6e. p82 1. Consider approving the Corrective Action Plan for the 2025 Building Division Audit with planned future updates quarterly; or, 2. Provide alternate direction. (ROLL CALL VOTE) (Marc Mattox/Assistant Town Manager) 6f. p103 1. Consider waiving the second reading of the entire Town Ordinance No. 653 and approve reading by title only; and, 2. Adopt Town Ordinance No. 653, "An Ordinance Amending Text Regulations within Paradise Municipal Code Title 17 of the Paradise Municipal Code Relative to the Keeping of Backyard Chickens and Rabbits” (ROLL CALL VOTE) (Susan Hartman/Community Development Director)
6g. p106 1. Consider approving a Request for Proposals (RFP) to procure a contract with a compliance consultant to support project partners with compliance and reimbursement requirements of Department of Housing and Community Development (HCD) grant program; and, 2. Approve an updated MOU with project partners. (ROLL CALL VOTE) (Colette Curtis/Recovery & Economic Development Director)
6h. p135 Give direction to staff on disposition of original art from phase 1 of the Utility Box Mural Project. (ROLL CALL VOTE) (Colette Curtis/Recovery & Economic Development Director)
6i. p136 Adopt Resolution No. 2026-__, “A Resolution of the Town Council of the Town of Paradise, California, Reporting Unexpended Development Impact Fees in Accordance with Government Code Section 66006.” (ROLL CALL VOTE) (Aimee Beleu/Finance Director)
6j. p149 Following the Town Council’s review of the Fiscal Year 2023/24 financial statement audit report, file the report, as submitted. (ROLL CALL VOTE) (Aimee Beleu/Finance Director)
7. COUNCIL INITIATED ITEMS AND REPORTS
7a. Council initiated agenda items
7b. Council reports on committee representation
7c. Future Agenda Items
8. STAFF COMMUNICATION
8a. Town Manager Report
9. CLOSED SESSION – None
4 5
10. ADJOURNMENT
5 Town of Paradise
Council Agenda Summary
Date: January 13, 2026
Agenda Item: 1(e)
ORIGINATED BY: Colette Curtis, Recovery and Economic
Development Director
REVIEWED BY: Mike O’Brien, Interim 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 Alliance for Workforce Development. At the December meeting, Council gave direction to move forward with the project with an amended scope.
An update on this project is on the agenda tonight for Council consideration and direction.
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 draft plan was presented to council at the October meeting. Based on Council feedback, staff worked with the consultants to provide an updated draft. The Healthcare Committee met to review the draft and the next step will be a meeting with medical professionals to review the draft for further input. It is anticipated that a draft will come back to Council for review at the March 2026 meeting.
6 Utility Box Mural Program
6 Utility boxes were wrapped with local artwork on Thursday July 31st. The locations are:
o Skyway/Neal (artist Libby Sofer)
o Oliver (artist Emily Wycoff)
o Pearson (artist Jenn Ponci)
o Elliot (artist Patti Lloyd)
o Maxwell (artist Shelley Miller)
o Black Olive (artist Steve Ferchaud)
Another call to artists was issued in October, with installation expected in Spring 2025.
Downtown Strategy Phase 3
Council approved moving forward on Phase 3 of the downtown strategy at the March 2025 meeting.
The working group has met several times, and has also visited several example sites such as Meriam Park, Mitote Food Park, The Barlow, and Oxbow Market. More example site visits are planned over the next month both in person and virtually. A roundtable discussion with developers was held this month. The discussion was helpful, and action items identified included
o The developers agreed to put together a document outlining needs or other things they would look for from the Town to consider investing. o The Town will put together an overview of allowable actions with regard to investing in a public/private partnership for development.
RECOVERY
Community Development Block Grant Disaster Recovery Mitigation Planning Public Services (CDBG DR MIT PPS)
Long Term Community Recovery Plan Update
o Council approved selection of UDA to conduct the update and draft the plan. o Public outreach will begin after the first of the year. In Home Siren Units
o The Standard Agreement for funding for additional in-home siren units has been received, this will extend the number of units made available to residents with another 2,800 units available.
o Residents have begun registering for the units, which will be shipped directly to them.
o Town staff is advertising more widely now that additional units have been secured. Public Services
o The Standard Agreement for funding for a public services grant has been received.
This will allow the Town to grant funding to local groups for hazard mitigation work within the community.
Office of Land Use and Climate Innovation Grant
Town was awarded $739,680 through the Extreme Heat and Community Resilience Program
Funding will be used to create a Climate Resilience Plan which will identify prospective resiliency projects such as
o Community Evacuation/Cooling/Heating Centers
o Shade Tree Planting
o Fuels Reduction Projects
o Green space projects
The Town is partnered with RCAC to do public outreach and complete the plan by December 2026.
7 Identified projects may be eligible for future implementation funds through the same grant source.
The partnership agreement has been signed with partners RCAC, Paradise Recreation and Park District, and Campfire Collaborative.
A Core Project team has been formed which includes the partners listed above in addition to Fire Safe Council, Cal Fire, Chico State, and local tribes. A Public Input process will begin in February 2026.
Overall Hazard Mitigation Project Update
Years of efforts are complete on the pre-award work on all our projects. All projects are fully approved and funded.
Category 4 Tree Removal Program
Project implementation is complete.
As of October, approximately 9.000 trees have been removed from 350+ parcels. 7-10 different tree removal crews are working across town in an efficient and effective partnership with property owners, local agencies, tribes, and contractors. Final wrap up and closeout is ongoing and a full report on the project will be provided to Council when complete.
Emergency Warning System
All 21 Towers are standing and operational.
21 of the 21 Towers are now fully complete.
All active construction is complete.
Pre-registration for in home Safe Units is no longer required. Units are available and being shipped directly from our contractor on a first come first serve basis. Units are available here: https://hqesystems.com/safe-paradise/
Additional funding has been secured if we need more than 900 units.
Residential Ignition Resistant Retrofit Program
Project is fully funded and moving forward.
All properties have been approved by FEMA to move forward to construction 63 Properties have selected their contractors and have had their "Notice to Proceed" Letters issued.
36 Properties have been fully completed.
Hazardous Fuels Reduction Program
Project is fully funded and moving forward.
Town staff are working with involved monitoring tribes on a plan and timeline for implementation.
Defensible Space Code Enforcement
The Defensible Space Code Enforcement project was fully approved and obligated in November 2023 by FEMA and CalOES.
Town Council approved implementation plan in January 2024. 8 Grant funded staff have been hired and are in place and working in the community. In May a Notice of Intent was submitted to Cal OES to request an additional 3 years of funding for this program.
Our NOI was accepted and a full application was submitted in September. In August additional grant funds are being investigated to assist property owners with yearly defensible space compliance costs. If approved, grant sources would be targeted to low-moderate income elderly and disabled property owners.
EMERGENCY MANAGEMENT
CodeRed is experiencing a nation-wide outage. As a result, the County is moving to CodeRAVE for emergency notification services. The Town is working through the process of establishing this service.
Implementation for VEOCI, our online EOC software, is ongoing.
Financial Impact:
None.
9 Town of Paradise
Council Agenda Summary
Date: January 13, 2026
Agenda Item: 1(e)
ORIGINATED BY: Nadia Alekseev, Housing Program Manager
REVIEWED BY: Michael O’Brien, Interim 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 of Housing Activities.
Analysis:
We have 41.99% of our pre-disaster housing stock to-date (1,720 surviving units + 3,778 new CofOs [an increase of 101 since last month] to-date = 5,498 habitable dwellings / 13,091 housing units before the Camp Fire). Our total number of habitable dwellings does not include the number of mobile homes replaced in mobile home parks because those permits are issued by HCD instead of the Building Dept., but mobile homes in parks are included in the total number of prefire housing units. An estimate from tax data shows 144 mobile homes in parks, or 5,642 housing units in Paradise.
Town of Paradise Owner-Occupied Rehabilitation/Reconstruction Program ($12.5 million) This program helps homeowners rehabilitate or reconstruct their home. The CalHome-Disaster Assistance grant was set to expire at the end of 2025, but the Housing Department was given verbal approval to extend the deadline to finish homes under construction. New applications to rebuild homes lost in the Camp Fire are no longer being accepted because it’s not feasible to complete a project before the expiration of the grant. Applications for essential home repairs on existing homes will continue to be accepted, funds for this activity are limited but do not have an expiration deadline.
69 homes completed
9 homes in construction
1 application in process
Town of Paradise First-Time Homebuyer Program ($11 million) Helping to make homeownership more affordable. Due to the anticipated deadline extension, the Housing Department will continue to approve disaster-affected households earning up to 120% AMI. Other CalHome funding remains available to assist non-disaster affected households earning no more than 80% AMI.
92 households assisted
9 applications in process
10 CDBG-DR Multifamily Rental Housing Program ($84.7 million) Affordable rental housing. Seven (7) projects are eligible for funding; a total of 292 units. CHIP project- scattered site (4 units)
o Leased up in Spring of 2024
Eaglepointe- 5975 Maxwell Dr (43 units)
o Leased up in Spring of 2025
Mayer Commons- 1561 Kay Ct (12 units)
o Construction completed. Units are being actively leased. For leasing information contact RSC Associates Property Management Inc.
Northwind Senior- 6983 Pentz Rd (21 units)
o Leased up in Fall of 2025
Cypress Family- 1633 Cypress Ln (70 units)
o Construction completed and Certificates of Occupancy were issued in December.
Units are being actively leased. For leasing information contact CHIP. Clark Rd- 6480 Clark Rd (72 units)
o Notice to Proceed was issued by HCD. Loan closing was extended to March of 2026. Construction to begin shortly after.
Cypress Senior (phase II)- 1633 Cypress ln (70 units) o Loan escrow closed on December 9
th, and construction is scheduled to begin in
early 2026, weather permitting.
CDBG (2024 Annual Allocation=$47,069; unspent funds=$140,214.13) CDBG entitlement grants are on a 5-year plan cycle called the Consolidated Plan, and this year is the 5th year in the current plan. The final draft was submitted to HUD in July and is currently under review. The Town received an “untimely” designation due to an accumulation of funds greater than 1.5x the current year grant allocation. The substantial amendment was submitted for HUD approval to reallocate $70,000 to an energy efficiency improvement program to spend this fiscal year. Planning for next fiscal year’s funding will begin in January.
HOME Infill New Construction ($700,000)
Create affordable housing for first-time homebuyers. The grant award letter was finally received from HCD in April of 2025. Program guidelines are complete and were adopted by Council. Staff is continuing to work-out funding logistics with HCD.
Permanent Local Housing Allocation (PLHA) ($540,905)
Allocates matching funds to North Valley Housing Trust to administer for affordable housing projects.
A predevelopment loan of $400,000 has been made for the Cape Cod multi-family project ($200,000 of PLHA funds). Construction is expected to begin in early 2026. $75,000 of PLHA funds was loaned to build a small, single-family home, which was finished and sold to a low-income Camp Fire survivor. Housing staff is working with North Valley Housing Trust on another similar project.
PLHA operates on a 5-year funding cycle similar to CDBG. The NOFA for the next cycle is expected in the first quarter of 2026. PLHA allocates grant funds to CDBG entitlement cities, which the Housing staff will apply for, but will not have to compete with other communities to receive.
Financial Impact:
None.
11 1
TOWN OF PARADISE
Council Agenda Summary
Date: January 13, 2026
Agenda No. 1(e)
ORIGINATED BY: Marc Mattox, Public Works Director / Town Engineer REVIEWED BY: Mike O’Brien, Interim 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. Changes from the prior month’s reports are shown in red underline italics.
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 December 2025, the following paving progress can be reported:
Status Miles
Completed 46.56
Awarded/In-Progress 27.86
Planned 2026 15.30
Planned Future 6.48
Total 96.19
Paradise Town Council has awarded three contracts for 2025 paving efforts, listed below with brief updates:
- Clark Road (Pearson to Wagstaff) – Knife River Construction o Final paving has been completed with punch list and quality control items of work remaining. Striping has been completed with one safety issue along the northbound #2 lane corrected temporarily and permanent correction planned in early 2026.
- On-System Road Rehabilitation – All American Asphalt
o Contract work is nearly complete with most work remaining consisting of punchlist or corrective adjustments
12 2
- Off-System Road Rehabilitation – DeSilva Gates Construction o Punchlist items of work are underway with final completion expected in January Engineering Division staff has successfully advertised the 2026 On- and Off-System Road Rehabilitation Projects. Bids will be collected in January 2026 with anticipated award consideration by Town Council in February 2026.
A map of all paving efforts completed and planned can be found on the Town’s website at www.townofparadise.com by visiting “News and Announcements” from the homepage.
Capital Project Updates
The Public Works Department, in an effort to provide additional communications on various projects, has launched a new website under its ParadiseWORKS banner. ParadiseWORKS Engineering Resiliency now hosts individual project pages for current information, project descriptions and schedules. The website can be viewed here:
https://www.townofparadise.com/pwe/page/paradiseworks-engineering-resiliency 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. 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
7303 On-System Road Rehabilitation Construction 2026
7307 Neal Road Rehabilitation Design 2028
8404 Camp Fire Hydrant Repairs Design 2025
8407 Off-System Road Rehabilitation Construction 2026
9389 Pentz Pathway Project Phase II Design 2028
9390 Paradise ATP Gateway Project (Neal Road Class I) Environmental 2028 9391 Oliver Curve Pathway Phase I (Design Only) Design - 9394 Paradise Sewer Project Design -
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 2026
9433 Animal Shelter Expansion Construction 2025
9434 Roe Road Phase 2 (S. Libby to Clark) Environmental 2028 9437 Evacuation Route CMS Environmental 2028
13 3
9438 Private Road Identification Safety Project Environmental 2028 9439 Storm Drain Resiliency Project Phase 1 Environmental 2028 9440 Storm Drain Resiliency Project Phase 2 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
US Army Corps
of Engineers
Paradise
Sewer Project
$2,000,000 of
$50,000,000
authorization
TBD
Town has started early
coordination for 2027 potential
appropriations
State Water
Board Septic to
Sewer CWSRF
Paradise
Sewer Project $27,000,000 TBD
Work to revise the project
application package is
resuming with new project
direction selected.
14 1
TOWN OF PARADISE
Council Agenda Summary
Date: January 13, 2026
Agenda No. 1(f)
ORIGINATED BY: Marc Mattox, Assistant Town Manager
REVIEWED BY: Mike O’Brien, Interim Town Manager
SUBJECT: Paradise Sewer Project Update
COUNCIL ACTION REQUESTED:
1. None, written monthly update only.
Background:
This report is a monthly effort to provide additional opportunity for public engagement on the status and next steps of the Paradise Sewer Project.
Analysis:
Since its incorporation in 1979, the Town of Paradise has sought a centralized wastewater system to address failing septic systems that impact public health, groundwater quality, and economic development. The need for sewer service became even more urgent following the 2018 Camp Fire, when the lack of modern wastewater infrastructure emerged as a major barrier to rebuilding businesses, housing, and community resiliency.
In 2022, the Town secured $30 million in CDBG-DR funds to begin pre-construction work, including environmental review, design, and permitting. To provide technical expertise, HDR was retained as Owner’s Agent, and a progressive design-build team was selected to develop a Basis of Design Report. That effort confirmed that a locally managed, phased sewer project was necessary to achieve both affordability and long-term community needs.
In January 2025, the Town Council formed a Sewer Project Ad Hoc Committee to evaluate local treatment and collection alternatives, with strong emphasis on public engagement and cost feasibility. The Committee, working alongside staff, HDR, and the Paradise Irrigation District, conducted community meetings, stakeholder workshops, site tours of other wastewater systems, and a technical alternatives analysis.
In August 2025, the Town Council unanimously voted to concur with the Paradise Sewer Project Ad Hoc Committee’s recommendation to direct a revised project description to include hybrid gravity/low pressure collection system, aerated lagoon wastewater treatment, and percolation/ evaporation pond effluent discharge.
Main Accomplishments
Completed right-of-entry agreements for environmental surveys at potential WWTF sites.
Completed environmental surveys at potential WWTF sites. Updated project website
Ongoing contract agreement for Collection System and WWTF design with Carollo. Ongoing Collection System and WWTF design contract negotiations with Carollo. 15 2
Key Activities (One Month Look-Ahead)
Complete contract agreement for Collection System and WWTF design with Carollo. Complete Collection System and WWTF design contract negotiations with Carollo. Ongoing preparation of Administrative Draft SEIR.
16 MINUTES
PARADISE TOWN COUNCIL
SPECIAL MEETING – 5:30 PM – December 9, 2025
1. OPENING
The Special meeting of the Paradise Town Council was called to order by Mayor Crowder at 5:31 p.m. in the Council Chambers located at 5555 Skyway, Paradise, California who led the Pledge of Allegiance to the Flag of the United States of America.
COUNCIL MEMBERS PRESENT: Greg Bolin, Steve “Woody” Culleton, Heidi Lange, Ronald Lassonde, and Steve Crowder, Mayor.
COUNCIL MEMBERS ABSENT: None
STAFF PRESENT: Interim Town Manager Michael O’Brien, Town Attorney Scott E.
Huber, Town Clerk/Elections Official Melanie Elvis, Town Engineer Marc Mattox, and Information Systems Technician Travis Thompson.
At 5:32 p.m. Mayor Crowder announced that the Town Council would adjourn to Closed Session for the following items:
2. CLOSED SESSION
2a. REAL PROPERTY. Pursuant to Gov. Code section 54956.8 the Council will meet with Real Property Negotiators, Town Manager and Town Attorney, regarding the following properties: APN 066-430-003, 066-430- 002, 066-460-008, 066-460-022, 066-460-003, 066-460-014. The negotiators for the property owner(s) are unknown at this time. 2b. REAL PROPERTY. Pursuant to Gov. Code section 54956.8 the Council will meet with Real Property Negotiators, Town Manager and Town Attorney, regarding the following properties: APN 054-182-049-000, 054- 182-053-000, 054-182-054-000, 054-182-059-000, 054-192-003-000, 054- 192-006-000, 054-192-031-000, 054-192-033-000, 054-192-038-000, 054- 192-039-000, 054-192-044-000, 054-192-049-000, 054-192-056-000, 054- 192-064-000, 054-192-072-000, 054-192-081-000, 054-192-082-000, 054- 192-087-000, 054-192-088-000, 054-192-098-000, 054-192-100-000, 054- 192-103-000, 054-192-105-000, 054-192-106-000, 054-192-108-000, 054- 192-113-000, 054-192-115-000, 054-192-121-000, 054-201-026-000, 054- 201-047-000, 054-201-051-000, 055-201-003-000, 055-201-029-000, 055- 201-069-000, 055-201-070-000, 055-212-046-000, 055-212-052-000, 055- 212-053-000, 055-212-054-000, 055-212-057-000, 054-182-032-000, 054- 182-048-000, 054-182-060-000, 054-192-005-000, 054-192-042-000, 054- 192-045-000, 054-192-057-000, 054-192-075-000, 054-192-078-000, 054- 17 192-089-000, 054-192-107-000, 054-192-109-000, 054-192-120-000, 054- 201-019-000, 054-201-025-000, 055-212-004-000, 055-212-005-000, 055- 212-007-000, 054-182-049-000, 054-182-053-000, 054-182-054-000, 054- 182-059-000, 054-192-003-000, 054-192-006-000, 054-192-031-000, 054- 192-033-000, 054-192-038-000, 054-192-039-000, 054-192-044-000, 054- 192-049-000, 054-192-056-000, 054-192-064-000, 054-192-072-000, 054- 192-081-000, 054-192-082-000, 054-192-087-000, 054-192-088-000, 054- 192-098-000, 054-192-103-000, 054-192-106-000, 054-192-108-000, 054- 192-113-000, 054-192-115-000, 054-201-026-000, 054-201-047-000, 054- 201-051-000, 055-201-003-000, 055-201-029-000, 055-201-069-000, 055- 201-070-000, 055-212-046-000, 055-212-052-000, 055-212-054-000, 055- 212-057-000, 054-182-032-000, 054-182-048-000, 054-182-060-000, 054- 192-005-000, 054-192-042-000, 054-192-045-000, 054-192-057-000, 054- 192-075-000, 054-192-078-000, 054-192-089-000, 054-192-100-000, 054- 192-105-000, 054-192-107-000, 054-192-109-000, 054-192-120-000, 054- 192-121-000, 054-201-019-000, 054-201-025-000, 055-212-004-000, 055- 212-005-000, 055-212-007-000, 055-212-053-000, 054-182-055-000, 054- 182-073-000, 054-182-086-000, 054-182-087-000, 054-192-041-000, 054- 192-065-000, 054-192-090-000, 054-192-095-000, 054-192-119-000, 054- 201-017-000, 054-201-018-000, 054-201-028-000, 054-201-031-000, 054- 201-032-000, 054-201-036-000, 054-201-037-000, 054-201-041-000, 054- 202-006-000, 054-202-007-000, 054-202-029-000, 055-202-022-000, 055- 211-080-000, 055-211-082-000, 055-212-058-000, 054-171-056-000, 054- 181-054-000, 054-182-074-000, 054-192-036-000, 054-192-097-000, 054- 192-110-000, 054-192-111-000, 054-201-027-000, 054-201-038-000, 054- 182-055-000, 054-182-073-000, 054-182-086-000, 054-182-087-000, 054- 192-041-000, 054-192-090-000, 054-192-095-000, 054-192-119-000, 054- 201-017-000, 054-201-018-000, 054-201-028-000, 054-201-031-000, 054- 201-032-000, 054-201-037-000, 054-201-041-000, 054-202-006-000, 054- 202-007-000, 054-202-029-000, 055-202-022-000, 055-211-080-000, 055- 211-082-000, 055-212-058-000, 054-171-056-000, 054-181-054-000, 054- 182-074-000, 054-192-036-000, 054-192-065-000, 054-192-097-000, 054- 192-110-000, 054-192-111-000, 054-201-027-000, 054-201-036-000, 054- 201-038-000, 054-080-033-000, 054-120-013-000, 054-120-030-000, 054- 120-031-000, 055-180-020-000, 055-180-056-000, 055-180-058-000, 055- 180-081-000, 055-211-033-000, 055-211-035-000, 055-211-039-000, 055- 211-044-000, 055-211-054-000, 055-211-074-000, 054-080-031-000, 055- 180-057-000, 055-211-026-000, 055-211-030-000, 055-211-031-000, 055- 211-055-000, 055-220-010-000, 054-120-021-000, 054-080-033-000, 054- 120-013-000, 054-120-030-000, 054-120-031-000, 055-180-020-000, 055- 18 180-056-000, 055-180-058-000, 055-211-033-000, 055-211-035-000, 055- 211-074-000, 054-080-031-000, 055-180-057-000, 055-180-081-000, 055- 211-026-000, 055-211-030-000, 055-211-031-000, 055-211-039-000, 055- 211-044-000, 055-211-054-000, 055-211-055-000, 055-220-010-000, 054- 120-021-000, 054-080-062-000, 054-120-033-000, 054-120-056-000, 054- 120-071-000, 055-180-037-000, 055-180-040-000, 055-180-061-000, 055- 180-062-000, 055-180-091-000, 055-180-103-000, 055-211-045-000, 055- 212-059-000, 055-220-002-000, 055-220-009-000, 055-220-019-000, 055- 220-020-000, 055-220-031-000, 055-220-034-000, 055-320-001-000, 055- 320-004-000, 054-080-061-000, 054-080-063-000, 054-120-057-000, 055- 180-041-000, 055-180-102-000, 055-220-005-000, 055-220-023-000, 055- 220-032-000, 055-220-041-000, 055-220-042-000, 055-320-002-000, 055- 320-003-000, 054-080-062-000, 054-120-056-000, 054-120-071-000, 055- 180-037-000, 055-180-061-000, 055-180-062-000, 055-180-091-000, 055- 180-103-000, 055-212-059-000, 055-220-002-000, 055-220-009-000, 055- 220-019-000, 055-220-020-000, 055-220-031-000, 055-220-034-000, 055- 320-001-000, 055-320-004-000, 054-080-061-000, 054-080-063-000, 054- 120-033-000, 054-120-057-000, 055-180-040-000, 055-180-041-000, 055- 180-102-000, 055-211-045-000, 055-220-005-000, 055-220-023-000, 055- 220-032-000, 055-220-041-000, 055-220-042-000, 055-320-002-000, 055- 320-003-000. The negotiators for the property owner(s) are unknown at this time.
2c. REAL PROPERTY. Pursuant to Gov. Code section 54956.8 the Council will meet with Real Property Negotiators, Town Manager and Town Attorney, regarding the following properties: APN 054-220-005, 054-220- 006, 050-171-034, 050-140-171, 054-210-026, 054-210-058, 054-230-034, 050-052-083, 050-013-059, 050-040-132, 050-013-058, 053-250-081, 050- 040-105, 050-013-018, 050-040-114, 050-082-061, 050-040-023, 050-052- 051, 050-082-079, 050-013-011, 050-040-106, 050-013-050, 050-013-057, 050-052-078, 050-040-112, 050-040-126, 050-082-017, 050-082-018, 050- 013-046, 050-013-063, 050-013-051, 066-460-024, 050-040-145, 050-013- 049, 066-460-025, 050-013-012, 050-082-088, 050-171-037, 050-450-008, 050-171-012, 050-171-017, 050-171-038, 050-140-163, 050-140-080, 050- 082-091, 050-171-032, 050-052-073, 050-171-013, 050-171-033, 050-450- 023, 050-450-001, 053-240-040, 050-171-019, 053-240-029, 053-250-093, 053-250-092, 053-250-070, 053-340-102, 053-240-039, 053-250-058, 053- 250-038, 053-250-127, 053-240-030, 053-250-056. The negotiators for the property owner(s) are unknown at this time.
19 After reconvening from Closed Session at 6:00 p.m., Mayor Crowder announced direction was given, no reportable action was taken.
3. ADJOURNMENT
Mayor Crowder adjourned the Council meeting at 6:00 p.m.
Date approved:
By: Attest:
_____________________________ ____________________________ Steve Crowder, Mayor Melanie Elvis, Town Clerk
20 TOWN COUNCIL
Meeting Minutes
6:00 PM – December 09, 2025
1. OPENING
The Regular meeting of the Paradise Town Council was called to order by Mayor Crowder 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 Council Member Lassonde.
COUNCIL MEMBERS PRESENT: Greg Bolin, Steve “Woody” Culleton, Heidi Lange, Ronald Lassonde and Steve Crowder, Mayor
COUNCIL MEMBERS ABSENT: None
STAFF PRESENT: Interim Town Manager Michael O’Brien, Town Attorney Scott E.
Huber, Town Clerk/Elections Official Melanie Elvis, Community Development Director Susan Hartman, Community Development Director Tony Lindsey, Public Works Director/Town Engineer Marc Mattox, Recovery and Economic Development Director Colette Curtis, Finance Director Aimee Beleu, Project Manager Brian Solecki, Police Chief Eric Reinbold, and Information Systems Technician Travis Thompson. 1a. Council Member Lassonde presented a Certificate of Recognition to Tim Umenhofer. (180-30-027)
1b. Mayor Steve Crowder presented The Year in Review. (180-30-027) 1c. Town Clerk Melanie Elvis, as temporary Chair, opened the nominations for Mayor for a one-year term beginning December 9, 2025 through December 8, 2026.
Council Member Lassonde nominated Steve Crowder.
MOTION by Lassonde, seconded by Culleton, closed the nominations for the position of Mayor. Roll call vote was unanimous with Council Member Bolin abstaining.
Roll call vote to appoint Steve Crowder as Mayor was unanimous with Council Member Bolin abstaining. (580-30-001)
Town Clerk Melanie Elvis turned the meeting over to Mayor Crowder who opened nominations for the position of Vice Mayor for a one-year term beginning December 9, 2025 through December 8, 2026.
Council Member Crowder nominated Steve “Woody” Culleton. 21 MOTION by Culleton, seconded by Crowder, closed the nominations for the position of Vice Mayor. Roll call vote was unanimous Roll call vote to elect Steve “Woody” Culleton as Vice Mayor was unanimous. (580-30-001)
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, emergency operations and Housing updates.
Marc Mattox, Public Works Director/Town Engineer -infrastructure and sewer updates.
1e. Town Engineer Marc Mattox provided an update on the Paradise Sewer Project. (960-70-009)
2. CONSENT CALENDAR
MOTION by Bolin, seconded by Culleton, approved consent calendar items 2a through 2f. Roll call vote was unanimous.
2a. Approved minutes of the November 12, 2025 Special and Regular Town Council meetings.
2b. Approved November 2025 Cash Disbursements in the amount of $14,621,453.03. (310-10-035)
2c. 1. Authorized the Town Manager to execute an agreement with the California Department of Forestry and Fire Protection (CAL FIRE) for acceptance of the USDA 2024 Volunteer Fire Capacity Grant award to purchase new structural and wildland personal protective equipment (PPE); and, 2. Adopted Resolution No. 2025-78 “A Resolution of the Town Council of the Town of Paradise Approving the Department of Forestry and Fire Protection (CAL FIRE) Agreement #7GF25084 Accepting a Grant Award Under the Volunteer Fire Capacity (VFC) Program of the Cooperative Fire Assistance Act of 1978 in the Amount of $11,962.50.” (440-91-004) (510-20-362) 2d. 1. Waived the second reading of the Town Ordinance No. 651, and read by title only and, 2. Adopted Town Ordinance No. 651 “An Ordinance of the Town Council of the Town of Paradise Amending Portions of Chapter 2.45 of the Paradise Municipal Code Relating to the Town’s Purchasing System”. (540-16-220)
2e. 1. Waived the second reading of the entire Town Ordinance No. 652 and read by title only; and, 2. Adopted Ordinance No. 652, “An Ordinance of the Town Of Paradise Repealing Paradise Municipal Code Chapters 15.01,
15.02, 15.03, 15.04, 15.05, 15.06, 15.07, 15.08, 15.09, 15.10, 15.11, 15.12,
15.13 and Adopting New Chapters 15.01, 15.02, 15.03, 15.04, 15.05, 15.06, 22 15.07, 15.08, 15.09, 15.10, 15.11, 15.12, 15.13, 15.14, 15.15 And 15.16 and Making Findings of Fact Relating To Local Climatic, Geological, and Topographic Conditions, All Relating to the Amendments and Adoption of the 2025 California Building Standards Code, Including the 2025 California Wildland-Urban Interface Code (Title 24, Part 7)”. (540-16-221) 2f. Reviewed and filed the 1st Quarter Investment Report for the Fiscal Year Ending June 30, 2026. (360-30-006)
3. ITEMS REMOVED FROM CONSENT CALENDAR - None
4. PUBLIC COMMUNICATION - None
5. PUBLIC HEARINGS
Council Member Lange left the dais for this item.
5a. Community Development Director Susan Hartman presented a history of the backyard chicken keeping ordinance, comparable jurisdictions’ regulations, and the constraints and considerations regarding the proposed standards.
Mayor Crowder opened the public hearing at 6:43 p.m.
1. Hal Thurston spoke in favor of an 80’ setback siting odor issues.
2. Serra Blaine asked Council to consider allowing up to 12 chickens and rabbits each.
3. Kristen Holman asked that Council explore the top limit for backyard chickens in California, rather than just the 10 closest neighboring jurisdictions.
Mayor Crowder closed the public hearing at 6:50 p.m.
MOTION by Crowder, seconded by Culleton, 1. Concurred with the project “CEQA determination” finding presented and considered by the Planning Commission on October 21, 2025, and embodied within Planning Commission Resolution No 2025-08; and, 2. Waived the first reading of Town Ordinance No. 653 and read by title only; and, 3. Introduced Town Ordinance No. 653 , “An Ordinance Amending Text Regulations within Paradise Municipal Code Title 17 of the Paradise Municipal Code Relative to the Keeping of Backyard Chickens and Rabbits”. AYES: Bolin, Culleton, Crowder; NOES: Lassonde; ABSENT: Lange; ABSTAIN: None. Motion Passes. (540-16-222)
6. COUNCIL CONSIDERATION
6a. MOTION by Lange, seconded by Culleton, appointed Council representatives and alternates to represent the Town of Paradise on various local and regional boards, committees, and commissions (committee assignments attached) with the addition and creation of a standing 23 Economic Development Committee. Roll call vote was unanimous. (120-10-010)
6b. Town Clerk Melanie Elvis presented the Measure V Oversight Committee Interview Panel’s recommendation to appoint Bruce Yerman to the Measure V Oversight Committee.
MOTION by Lange, seconded by Culleton, concurred with the recommendation of the Measure V Citizen Oversight Committee interview panel to appoint Bruce Yerman to the Oversight Committee, effective immediately. Roll call vote was unanimous. (395-70-019) 6c. Town Clerk Melanie Elvis provided an overview of the proposed updates to the Measure V Citizen Oversight Committee bylaws.
MOTION by Lange, seconded by Culleton, adopted Resolution No. 2025- 79 “A Resolution of the Town Council of the Town of Paradise Rescinding Resolution No. 21-12 and Adopting Amended Bylaws for the Governance of the Measure V Citizen Oversight Committee.” Roll call vote was unanimous. (395-70-019)
6d. Recovery and Economic Development Director Colette Curtis provided an update on the financial status of the CDBG-DR Workforce Development Project and the need for the Town to cash flow the project.
1. Bill Sharrett shared that the School District fully supports the project.
2. Melissa Crick spoke of the importance of an accurate representation of the project’s progression.
MOTION by Bolin, seconded by Culleton, directed staff to continue the Workforce Development project with an amended scope and budget authorizing the Town to cash flow the project. Roll call vote was unanimous. (710-10-104)
6e. Interim Town Manager Michael O’Brien provided an overview of the proposed reclassification of the Public Works Director/Town Engineer to Assistant Town Manager/Public Works Director/Town Engineer.
MOTION by Culleton, seconded by Bolin 1. Approved the reclassification of the Public Works Director/Town Engineer to Assistant Town Manager/Public Works Director/Town Engineer and the correlating budget adjustment; and, 2. Adopted Resolution No. 2025-80 “A Resolution of the Town Council of the Town of Paradise Approving Job Classification Descriptions” and, 3. Adopted Resolution No. 2025-81 “A Resolution of the Town Council of the Town of Paradise, California, Amending the Salary Pay Plan to Include Assistant Town Manager/Public Works Director/Town Engineer for the Fiscal Year 2025-2026” and, 4. Adopted Resolution No. 2025-82 “A Resolution of the Town Council of The Town of Paradise Repealing and Replacing Resolution No. 2023-11 to Establish an Updated Order of Succession in the Event of the Absence or Disability of 24 the Town Manager.” Roll call vote was unanimous.
(610-10-015) (610-10-018) (610-10-020)
6f. Public Works Director/Town Engineer Marc Mattox presented the proposed Special Conditions for Maintenance of Temporary Surfacing and Striping.
MOTION by Bolin, seconded by Lassonde, adopted the updated Special Conditions for Maintenance of Temporary Surfacing and Striping for use in all applicable encroachment permits and utility construction activities. Roll call vote was unanimous. (950-15-005)
6g. Public Works Director/Town Engineer Marc Mattox presented the proposed plans, specifications and estimate for the On-System Road Rehabilitation – 2026 Misc / HSIP Systemic Intersection Safety Improvement Project.
MOTION by Lassonde, seconded by Culleton, adopted Resolution No. 2025-83, “A Resolution of the Town Council of the Town of Paradise Approving the Plans, Specifications and Estimate for the On-System Road Rehabilitation – 2026 Misc / HSIP Systemic Intersection Safety Improvement Project and Authorizing Advertisement for Bids on the Project”. Roll call vote was unanimous. (950-40-077)
6h. Public Works Director/Town Engineer Marc Mattox presented the proposed plans, specifications and estimate for the Off-System Road Rehabilitation – 2026 Project.
MOTION by Lassonde, seconded by Culleton, adopted Resolution No. 2025-84, “A Resolution of the Town Council of the Town of Paradise Approving the Plans, Specifications and Estimate for the Off-System Road Rehabilitation Project – 2026 and Authorizing Advertisement for Bids on the Project”. Roll call vote was unanimous. (950-40-078)
7. COUNCIL INITIATED ITEMS AND REPORTS
7a. Council initiated agenda items:
7a1. Council discussed the CDBG-MIT-RIP allocation for Evacuation Route Permanent Changeable Message Sign Project and provided direction to staff to explore reallocating the funds toward the Storm Drain Resiliency Project (Phase I). (710-10-106)
7b. Council reports on committee representations:
Council Member Bolin attended a Solid Waste Committee meeting.
Council Member Lange attended a Consortium of Care meeting, a Downtown Working Group meeting, and several Sewer Ad Hoc Committee meetings.
Council Member Lassonde attended a Healthcare Committee meeting and served on the Measure V Committee interview panel.
25 Mayor Crowder attended several ribbon cuttings, the Healthcare Committee meeting and several Sewer Ad Hoc Committee meetings.
7c. Future Agenda Items - None
8. STAFF COMMUNICATION - None
9. CLOSED SESSION - None
10. ADJOURNMENT
Mayor Crowder adjourned the meeting at 8:46 p.m.
Date approved:
By: Attest:
_____________________________ ____________________________ Steve Crowder, Mayor Melanie Elvis, Town Clerk
26 2026 TOWN COUNCIL
REPRESENTATION
BUTTE COUNTY
OMMITTEES/COMMISSIONS
BUTTE COUNTY Bolin Crowder Culleton Lassonde Lange
1. Air Quality Management District A R
2. Association of Governments A R
3. City Selection Committee (Mayor) R
4. Disaster Council (Mayor) R
5. Local Area Formation Commission
(LAFCo) (Bolin was appointed through
5/2027 – Appointed by City Selection
Committee) R
6. Mosquito and Vector Control Board
(Schuster was appointed through 1/2027
– Rep to serve a 4-year term)
Melissa
Schuster
7. Waste Mgt Local Task Force R R
8. City/County Ad Hoc Committee R
9. Tourism Business Improvement District
(TBID)
Colette
Curtis R
10. Continuum of Care A R
11. Butte County Fire Safe Council A R
LOCAL COMMITTEES/COMMISSIONS
PARADISE Bolin Crowder Culleton Lassonde Lange
1. Paradise Community Village R
2. Paradise Irrigation District Liaison R R
3. Paradise Rec. & Park District Liaison R R
4. Paradise Unified School District Liaison R R
5. Paradise Solid Waste Committee R R
6. Onsite Ad Hoc Committee R R
7. Finance Committee
(Mayor & Vice Mayor) R R
8. Butte County Oversight Board R
9. Paradise Sewer Ad Hoc Committee R R
10. Legislative Ad Hoc Committee
(Mayor & Vice Mayor) R R
11. Healthcare Ad Hoc Committee R R A
12. Facilities Ad Hoc Committee R R
13. Exceptions Committee (Ord. 624) R R
27 14. Working Group Downtown Phase 3 R R
15. Economic Development Committee R R
28 TOWN OF PARADISE
CASH DISBURSEMENTS REPORT
FOR THE PERIOD OF
December 1, 2025 - December 31, 2025
29 CASH DISBURSEMENTS REPORT
December 1, 2025 - December 31, 2025
Check Date Pay Period End Description Amount Total
12/5/2025 11/30/2025 Net Payroll - Direct Deposits and Checks $ 288,630.43 12/19/2025 12/14/2025 Net Payroll - Direct Deposits and Checks $ 285,959.97 $ 574,590.40
Accounts Payable
Payroll Vendors: Taxes, PERS, Dues, Insurance, Etc. $ 492,193.37 Operations Vendors: Supplies, Contracts, Utilities, Etc. $9,123,061.61 TOTAL CASH DISBURSEMENTS ACCOUNTS PAYABLE $ 9,615,254.98 GRAND TOTAL CASH DISBURSEMENTS $ 10,189,845.38
APPROVED BY:
Aimee Beleu - Finance Director/Town Treasurer
APPROVED BY:
Michael O'Brien - Interim Town Manager
30 Number Date Status Void Reason
Reconciled/
Voided Date Source Payee Name
Transaction
Amount
Reconciled
Amount Difference
AP TCB - General Checking
Check
90578 12/04/2025 Open Accounts Payable First American Title Company $96,540.00 90579 12/08/2025 Open Accounts Payable ICMA 457 - MissionSquare $3,498.44 90580 12/08/2025 Open Accounts Payable STATE DISBURSEMENT UNIT $656.29 90581 12/10/2025 Open Accounts Payable ADVANCED DOCUMENT
CONCEPTS
$4.21
90582 12/10/2025 Open Accounts Payable AIRGAS SAFETY, INC. $1,337.62 90583 12/10/2025 Open Accounts Payable ALHAMBRA $44.96
90584 12/10/2025 Open Accounts Payable Anderson Builders Corporation $50,000.00 90585 12/10/2025 Open Accounts Payable ANIMAL HOSPITAL/VETMOBILE $108.30 90586 12/10/2025 Open Accounts Payable AT&T & CALNET3 - CIRCUIT LINES $102.81 90587 12/10/2025 Open Accounts Payable AT&T/CALNET3 - REPEATER LINES $196.86 90588 12/10/2025 Open Accounts Payable AT&T/CALNET3 - COMMUNITY PARK
$30.88
90589 12/10/2025 Open Accounts Payable AT&T/CALNET3 - Summary $30.99 90590 12/10/2025 Open Accounts Payable AT&T/CALNET3 - Summary $2,919.00 90591 12/10/2025 Open Accounts Payable AT&T/CALNET3 - TH/FDPD FIBER LINES
$1,056.72
90592 12/10/2025 Open Accounts Payable Berk, Garrett $272.00 90593 12/10/2025 Open Accounts Payable Biometrics4ALL, Inc $18.75 90594 12/10/2025 Open Accounts Payable BorderLAN Cybersecurity $972.00 90595 12/10/2025 Open Accounts Payable Bureau Veritas North America, Inc $23,946.07 90596 12/10/2025 Open Accounts Payable BUTTE CO RECORDER $227.50 90597 12/10/2025 Open Accounts Payable BUTTE REGIONAL TRANSIT $100.00 90598 12/10/2025 Open Accounts Payable Caltronics Business Systems/J.J. R Ent Inc
$1,568.52
90599 12/10/2025 Open Accounts Payable Cathcart, Sylace $272.00 90600 12/10/2025 Open Accounts Payable Cole Huber LLP $108,725.26 90601 12/10/2025 Open Accounts Payable Console Clearning Specialists $1,350.00 90602 12/10/2025 Open Accounts Payable COPWARE, INC. $705.00 90603 12/10/2025 Open Accounts Payable De Lage Landen Public Finance LLC $781.25 90604 12/10/2025 Open Accounts Payable Desilva Gates Construction LLC $230,110.40 90605 12/10/2025 Open Accounts Payable Dewberry Engineers Inc. $27,334.43 90606 12/10/2025 Open Accounts Payable Fleming Construction $6,500.00 90607 12/10/2025 Open Accounts Payable GREAT AMERICA LEASING CORP. $146.82 90608 12/10/2025 Open Accounts Payable GREEN RIDGE LANDSCAPING $6,765.00 90609 12/10/2025 Open Accounts Payable Hawkins Delafield & Wood LLP $25,687.50 90610 12/10/2025 Open Accounts Payable HDR Engineering, Inc $162,759.84 90611 12/10/2025 Open Accounts Payable HLP, INC / CHAMELEON
SOFTWARE PRODUCTS
$3.85
90612 12/10/2025 Open Accounts Payable Howe Construction Tiger $30,800.00 90613 12/10/2025 Open Accounts Payable James or Lavenia Riotto $125.00 90614 12/10/2025 Open Accounts Payable Jennifer Arbuckle $4,875.00 90615 12/10/2025 Open Accounts Payable JOHNNY ON THE SPOT
PORTABLES
$380.25
90616 12/10/2025 Open Accounts Payable KNIFE RIVER CONSTRUCTION $495.57 90617 12/10/2025 Open Accounts Payable KNIFE RIVER CONSTRUCTION $1,730,034.83 90618 12/10/2025 Open Accounts Payable KP Research Services, Inc. $1,250.00 90619 12/10/2025 Open Accounts Payable L.N. CURTIS & SONS $8,695.56 user: Aimee Beleu Pages: 1 of 6 Tuesday, December 30, 2025 Payment Register
TOWN OF PARADISE
From Payment Date: 12/1/2025 - To Payment Date: 12/31/2025 31 Number Date Status Void Reason
Reconciled/
Voided Date Source Payee Name
Transaction
Amount
Reconciled
Amount Difference
90620 12/10/2025 Open Accounts Payable LEAF Capital Funding LLC $130.50 90621 12/10/2025 Open Accounts Payable LIFE ASSIST INC $419.99 90622 12/10/2025 Open Accounts Payable Look Ahead Veterinary Services $2,552.24 90623 12/10/2025 Open Accounts Payable Meeks Lumber & Hardware $1,050.00 90624 12/10/2025 Open Accounts Payable Meyers Police K-9 Training, LLC $1,200.00 90625 12/10/2025 Open Accounts Payable MID VALLEY TITLE & ESCROW $250.00 90626 12/10/2025 Open Accounts Payable MID VALLEY TITLE & ESCROW $250.00 90627 12/10/2025 Open Accounts Payable MID VALLEY TITLE & ESCROW $250.00 90628 12/10/2025 Open Accounts Payable MID VALLEY TITLE & ESCROW $250.00 90629 12/10/2025 Open Accounts Payable MID VALLEY TITLE & ESCROW $250.00 90630 12/10/2025 Open Accounts Payable MID VALLEY TITLE & ESCROW $100,000.00 90631 12/10/2025 Open Accounts Payable Mountain G Enterprises Inc $15,474.93 90632 12/10/2025 Open Accounts Payable Mountain G Enterprises Inc $23,639.96 90633 12/10/2025 Open Accounts Payable NAPA Auto Parts $32.33 90634 12/10/2025 Open Accounts Payable Newsom, John $272.00 90635 12/10/2025 Open Accounts Payable NORTHERN RECYCLING & WASTE SERVICES, INC.
$2,018.40
90636 12/10/2025 Open Accounts Payable NORTHSTAR $910.00 90637 12/10/2025 Open Accounts Payable NORTHSTATE AGGREGATE, INC. $532.88 90638 12/10/2025 Open Accounts Payable O'REILLY AUTO PARTS $199.41 90639 12/10/2025 Open Accounts Payable OFFICE DEPOT ACCT#36233169 $557.90 90640 12/10/2025 Open Accounts Payable OROVILLE FORD $307.99 90641 12/10/2025 Open Accounts Payable PARADISE IRRIGATION DIST $2,285.22 90642 12/10/2025 Open Accounts Payable PARADISE POST $93.76 90643 12/10/2025 Open Accounts Payable Psomas $104,507.18 90644 12/10/2025 Voided Duplicate Payment 12/17/2025 Accounts Payable Revamp Solar Energy LLC $3,604.00 90645 12/10/2025 Open Accounts Payable Rolls Anderson & Rolls Civil Engineers
$596.00
90646 12/10/2025 Open Accounts Payable Shelby's Pest Control, Inc. $80.00 90647 12/10/2025 Open Accounts Payable Spherion Staffing $3,609.80 90648 12/10/2025 Open Accounts Payable T and S DVBE Inc. $2,442.69 90649 12/10/2025 Open Accounts Payable Tahoe Pure Water Co. $71.20 90650 12/10/2025 Open Accounts Payable The Ferguson Group $5,000.00 90651 12/10/2025 Open Accounts Payable THOMAS ACE HARDWARE $214.07 90652 12/10/2025 Open Accounts Payable THOMAS ACE HARDWARE - ENG.
DEPT.
$122.03
90653 12/10/2025 Open Accounts Payable THOMAS ACE HARDWARE - FIRE DEPT.
$228.88
90654 12/10/2025 Open Accounts Payable TOM'S TREE SERVICE $1,250.00 90655 12/10/2025 Open Accounts Payable Top Notch Commercial Cleaning Inc. $3,200.00 90656 12/10/2025 Open Accounts Payable Tri Counties Bank $13,126.46 90657 12/10/2025 Open Accounts Payable Tri Flame Propane $207.93 90658 12/10/2025 Open Accounts Payable Trilogy Construction, Inc. $68,611.50 90659 12/10/2025 Open Accounts Payable Warner Enterprises Inc $57,525.30 90660 12/10/2025 Open Accounts Payable Warner Enterprises Inc $51,576.00 90661 12/10/2025 Open Accounts Payable Warner Enterprises Inc $6,391.70 90662 12/10/2025 Open Accounts Payable Wood Rodgers, Inc. $20,080.35 90663 12/10/2025 Open Accounts Payable Amick, Scott $15.00 90664 12/10/2025 Open Accounts Payable Dildeep Singh Kaile $109.35 90665 12/10/2025 Open Accounts Payable Kellems, Gabriel $15.00 user: Aimee Beleu Pages: 2 of 6 Tuesday, December 30, 2025 Payment Register
TOWN OF PARADISE
From Payment Date: 12/1/2025 - To Payment Date: 12/31/2025 32 Number Date Status Void Reason
Reconciled/
Voided Date Source Payee Name
Transaction
Amount
Reconciled
Amount Difference
90666 12/10/2025 Open Accounts Payable Sandez-Rivera, Denise $15.00 90667 12/10/2025 Open Accounts Payable Shearer, Jacqueline $117.84 90668 12/10/2025 Open Accounts Payable Vizcarra, Hector $509.66 90669 12/10/2025 Open Accounts Payable Aflac $57.98
90670 12/10/2025 Open Accounts Payable Met Life $13,002.80 90671 12/10/2025 Open Accounts Payable OPERATING ENGINEERS $1,400.00 90672 12/10/2025 Open Accounts Payable PARADISE POLICE OFFICERS
ASSOCIATION
$2,589.76
90673 12/10/2025 Open Accounts Payable SUN LIFE INSURANCE $8,409.87 90674 12/10/2025 Open Accounts Payable SUPERIOR VISION SVC INC $900.12 90675 12/10/2025 Open Accounts Payable TOP CONFIDENTIAL MID MGMT
ASSOCIATION
$130.00
90677 12/11/2025 Open Accounts Payable PARADISE IRRIGATION DIST $48.97 90678 12/11/2025 Open Accounts Payable PACIFIC GAS & ELECTRIC $2,920.08 90679 12/11/2025 Open Accounts Payable PACIFIC GAS & ELECTRIC $5.89 90680 12/22/2025 Open Accounts Payable ACCESS INFORMATION
PROTECTED
$104.58
90681 12/22/2025 Open Accounts Payable Anderson Builders Corporation $12,500.00 90682 12/22/2025 Open Accounts Payable AT&T & CALNET3 - CIRCUIT LINES $135.94 90683 12/22/2025 Open Accounts Payable AT&T & CALNET3 - CIRCUIT LINES $271.87 90684 12/22/2025 Open Accounts Payable AT&T & CALNET3 - CIRCUIT LINES $763.35 90685 12/22/2025 Open Accounts Payable Banks Construction $57,765.00 90686 12/22/2025 Open Accounts Payable Bear Electrical Systems, Inc $1,520.00 90687 12/22/2025 Open Accounts Payable Broad & Gusman $4,000.00 90688 12/22/2025 Open Accounts Payable Broad & Gusman $4,000.00 90689 12/22/2025 Open Accounts Payable Bug Smart $116.00 90690 12/22/2025 Open Accounts Payable BUTTE COUNTY FIRE SAFE
COUNCIL
$54,413.28
90691 12/22/2025 Open Accounts Payable BUTTE COUNTY FIRE SAFE
COUNCIL
$168,929.48
90692 12/22/2025 Open Accounts Payable CALIFORNIA STATE DEPARTMENT
OF JUSTICE
$792.00
90693 12/22/2025 Open Accounts Payable Coastland $20,828.54 90694 12/22/2025 Open Accounts Payable Cole Huber LLP $234.00 90695 12/22/2025 Open Accounts Payable Consultants Plus $850.00 90696 12/22/2025 Open Accounts Payable CONTINENTAL BATTERY COMPANY $1,622.32 90697 12/22/2025 Open Accounts Payable Dewberry Engineers Inc. $5,338.99 90698 12/22/2025 Open Accounts Payable Dodini, Frank $20.95 90699 12/22/2025 Open Accounts Payable Dokken Engineering, Inc. $276,900.45 90700 12/22/2025 Open Accounts Payable FEDERAL EXPRESS $32.03 90701 12/22/2025 Open Accounts Payable Fleming Construction $14,000.00 90702 12/22/2025 Open Accounts Payable GovWell Technologies Inc. $73,000.00 90703 12/22/2025 Open Accounts Payable GREEN RIDGE LANDSCAPING $450.00 90704 12/22/2025 Open Accounts Payable HLP, INC / CHAMELEON
SOFTWARE PRODUCTS
$3,840.00
90705 12/22/2025 Open Accounts Payable Howe Construction Tiger $32,200.00 90706 12/22/2025 Open Accounts Payable Howe Construction Tiger $42,869.40 90707 12/22/2025 Open Accounts Payable KOEFRAN INDUSTRIES $1,200.00 90708 12/22/2025 Open Accounts Payable Kozak, Ginny $380.00 90709 12/22/2025 Open Accounts Payable L.N. CURTIS & SONS $511.13 90710 12/22/2025 Open Accounts Payable LEAF Capital Funding LLC $106.95 user: Aimee Beleu Pages: 3 of 6 Tuesday, December 30, 2025 Payment Register
TOWN OF PARADISE
From Payment Date: 12/1/2025 - To Payment Date: 12/31/2025 33 Number Date Status Void Reason
Reconciled/
Voided Date Source Payee Name
Transaction
Amount
Reconciled
Amount Difference
90711 12/22/2025 Open Accounts Payable LIFE ASSIST INC $506.35 90712 12/22/2025 Open Accounts Payable Look Ahead Veterinary Services $1,032.03 90713 12/22/2025 Open Accounts Payable Mark Thomas & Company Inc $1,635.10 90714 12/22/2025 Open Accounts Payable Meyers Police K-9 Training, LLC $600.00 90715 12/22/2025 Open Accounts Payable MID VALLEY TITLE & ESCROW $100,000.00 90716 12/22/2025 Open Accounts Payable MOTOROLA SOLUTIONS, INC. $94.40 90717 12/22/2025 Open Accounts Payable MOTOROLA SOLUTIONS, INC. $10,455.04 90718 12/22/2025 Open Accounts Payable MUNIMETRIX SYSTEMS CORP $79.98 90719 12/22/2025 Open Accounts Payable North State Tire Co. Inc. $1,085.69 90720 12/22/2025 Open Accounts Payable Northern California Glove & Safety $262.95 90721 12/22/2025 Open Accounts Payable NORTHGATE PETROLEUM CO $7,148.85 90722 12/22/2025 Open Accounts Payable O'REILLY AUTO PARTS $1,755.81 90723 12/22/2025 Open Accounts Payable OFFICE DEPOT ACCT#36233169 $315.09 90724 12/22/2025 Open Accounts Payable OROVILLE FORD $114.78 90725 12/22/2025 Voided Printer Error 12/22/2025 Accounts Payable PACIFIC GAS & ELECTRIC $1,667.57 90726 12/22/2025 Open Accounts Payable PARADISE POST $722.87 90727 12/22/2025 Open Accounts Payable PlaceWorks Inc $80,004.91 90728 12/22/2025 Open Accounts Payable R B SPENCER INC $3,747.45 90729 12/22/2025 Open Accounts Payable Rackley Company $3,228.63 90730 12/22/2025 Open Accounts Payable Rose , Karen $75.00 90731 12/22/2025 Open Accounts Payable Sigler Pest Control $50.00 90732 12/22/2025 Open Accounts Payable Stratti $4,323.00 90733 12/22/2025 Open Accounts Payable Stratton Appraisals $400.00 90734 12/22/2025 Open Accounts Payable Tahoe Pure Water Co. $66.80 90735 12/22/2025 Open Accounts Payable Target Solutions Learning $213.00 90736 12/22/2025 Open Accounts Payable The Pape' Group INC $83.60 90737 12/22/2025 Open Accounts Payable THOMAS ACE HARDWARE $354.49 90738 12/22/2025 Open Accounts Payable THOMAS ACE HARDWARE - ENG.
DEPT.
$242.12
90739 12/22/2025 Open Accounts Payable THOMAS ACE HARDWARE - FIRE DEPT.
$85.55
90740 12/22/2025 Open Accounts Payable Top Notch Commercial Cleaning Inc. $2,200.00 90741 12/22/2025 Open Accounts Payable TransUnion Risk and Alternative Data Solutions Inc
$690.00
90742 12/22/2025 Open Accounts Payable Tri Counties Bank $14,802.77 90743 12/22/2025 Open Accounts Payable Tri Flame Propane $485.07 90744 12/22/2025 Open Accounts Payable TURNBOW, DAVID LYNN $20.00 90745 12/22/2025 Open Accounts Payable TURNBOW, DEBBIE $40.00 90746 12/22/2025 Open Accounts Payable Urban Design Associates. LTD $3,504.00 90747 12/22/2025 Open Accounts Payable Urban Design Associates. LTD $1,640.00 90748 12/22/2025 Voided Printer Error 12/22/2025 Accounts Payable VERIZON WIRELESS $570.15 90749 12/22/2025 Voided Printer Error 12/22/2025 Accounts Payable VERIZON WIRELESS $75.00 90750 12/22/2025 Voided Printer Error 12/22/2025 Accounts Payable VERIZON WIRELESS $282.45 90751 12/22/2025 Open Accounts Payable Williams Scotsman, Inc. (Mobile Mini) $199.08 90752 12/22/2025 Open Accounts Payable Wood Rodgers, Inc. $4,949.71 90753 12/22/2025 Open Accounts Payable VERIZON WIRELESS $75.00 90754 12/22/2025 Open Accounts Payable ICMA 457 - MissionSquare $3,420.27 90755 12/22/2025 Open Accounts Payable STATE DISBURSEMENT UNIT $656.29 Type Check Totals: 177 Transactions $4,090,706.51
user: Aimee Beleu Pages: 4 of 6 Tuesday, December 30, 2025 Payment Register
TOWN OF PARADISE
From Payment Date: 12/1/2025 - To Payment Date: 12/31/2025 34 Number Date Status Void Reason
Reconciled/
Voided Date Source Payee Name
Transaction
Amount
Reconciled
Amount Difference
EFT
359 12/02/2025 Open Accounts Payable COMCAST CABLE $875.23 360 12/02/2025 Open Accounts Payable PACIFIC GAS & ELECTRIC $932.97 362 12/08/2025 Open Accounts Payable CALPERS - RETIREMENT $70,592.82 363 12/08/2025 Open Accounts Payable EMPLOYMENT DEVELOPMENT
DEPARTMENT
$16,082.94
364 12/08/2025 Open Accounts Payable ING LIFE INS & ANNUITY COMPANY $8,595.60 365 12/08/2025 Open Accounts Payable INTERNAL REVENUE SERVICE $51,356.97 366 12/10/2025 Open Accounts Payable Amazon Capital Services $3,031.62 367 12/10/2025 Open Accounts Payable COMCAST CABLE $14.82 368 12/10/2025 Open Accounts Payable COMCAST CABLE $184.30 369 12/10/2025 Open Accounts Payable I.M.P.A.C. PAYMENTS IMPAC GOV
SVCS/US BANCORP
$1,590.00
370 12/10/2025 Voided Printer Error 12/11/2025 Accounts Payable PACIFIC GAS & ELECTRIC $17,725.18 371 12/10/2025 Open Accounts Payable T MOBILE USA, INC. $2,043.21 372 12/10/2025 Open Accounts Payable CALPERS $167,461.77 373 12/11/2025 Voided Printer Error 12/11/2025 Accounts Payable PACIFIC GAS & ELECTRIC $17,676.21 374 12/11/2025 Open Accounts Payable PACIFIC GAS & ELECTRIC $14,750.24 375 12/22/2025 Open Accounts Payable Amazon Capital Services $1,348.17 376 12/22/2025 Open Accounts Payable AT&T MOBILITY $107.00 377 12/22/2025 Open Accounts Payable COMCAST CABLE $219.25 378 12/22/2025 Open Accounts Payable COMCAST CABLE $429.25 379 12/22/2025 Open Accounts Payable I.M.P.A.C. PAYMENTS IMPAC GOV
SVCS/US BANCORP
$877.90
380 12/22/2025 Open Accounts Payable PACIFIC GAS & ELECTRIC $1,667.57 381 12/22/2025 Open Accounts Payable VERIZON WIRELESS $570.15 382 12/22/2025 Open Accounts Payable VERIZON WIRELESS $282.45 383 12/22/2025 Open Accounts Payable VERIZON WIRELESS $2,751.40 384 12/22/2025 Open Accounts Payable CALPERS - RETIREMENT $69,943.45 385 12/22/2025 Open Accounts Payable EMPLOYMENT DEVELOPMENT
DEPARTMENT
$15,491.71
386 12/22/2025 Open Accounts Payable ING LIFE INS & ANNUITY COMPANY $8,593.10 387 12/22/2025 Open Accounts Payable INTERNAL REVENUE SERVICE $49,353.19 Type EFT Totals: 28 Transactions $524,548.47
AP TCB - General Checking Totals
Checks Status Count Transaction Amount Reconciled Amount Open 172 $4,084,507.34 $0.00
Reconciled 0 $0.00 $0.00
Voided 5 $6,199.17 $0.00
Stopped 0 $0.00 $0.00
Total 177 $4,090,706.51 $0.00
EFTs Status Count Transaction Amount Reconciled Amount
Open 26 $489,147.08 $0.00
Reconciled 0 $0.00 $0.00
Voided 2 $35,401.39 $0.00
Total 28 $524,548.47 $0.00
All Status Count Transaction Amount Reconciled Amount
Open 198 $4,573,654.42 $0.00
user: Aimee Beleu Pages: 5 of 6 Tuesday, December 30, 2025 Payment Register
TOWN OF PARADISE
From Payment Date: 12/1/2025 - To Payment Date: 12/31/2025 35 Number Date Status Void Reason
Reconciled/
Voided Date Source Payee Name
Transaction
Amount
Reconciled
Amount Difference
Reconciled 0 $0.00 $0.00
Voided 7 $41,600.56 $0.00
Stopped 0 $0.00 $0.00
Total 205 $4,615,254.98 $0.00
AP - US Bank TOP AP Checking
Check
85628 12/22/2025 Open Accounts Payable Town of Paradise $5,000,000.00 Type Check Totals: 1 Transactions $5,000,000.00
AP - US Bank TOP AP Checking Totals
Checks Status Count Transaction Amount Reconciled Amount Open 1 $5,000,000.00 $0.00
Reconciled 0 $0.00 $0.00
Voided 0 $0.00 $0.00
Stopped 0 $0.00 $0.00
Total 1 $5,000,000.00 $0.00
EFTs Status Count Transaction Amount Reconciled Amount
Open 0 $0.00 $0.00
Reconciled 0 $0.00 $0.00
Voided 0 $0.00 $0.00
Total 0 $0.00 $0.00
All Status Count Transaction Amount Reconciled Amount
Open 1 $5,000,000.00 $0.00
Reconciled 0 $0.00 $0.00
Voided 0 $0.00 $0.00
Stopped 0 $0.00 $0.00
Total 1 $5,000,000.00 $0.00
Grand Totals:
Checks Status Count Transaction Amount Reconciled Amount Open 173 $9,084,507.34 $0.00
Reconciled 0 $0.00 $0.00
Voided 5 $6,199.17 $0.00
Stopped 0 $0.00 $0.00
Total 178 $9,090,706.51 $0.00
EFTs Status Count Transaction Amount Reconciled Amount
Open 26 $489,147.08 $0.00
Reconciled 0 $0.00 $0.00
Voided 2 $35,401.39 $0.00
Total 28 $524,548.47 $0.00
All Status Count Transaction Amount Reconciled Amount
Open 199 $9,573,654.42 $0.00
Reconciled 0 $0.00 $0.00
Voided 7 $41,600.56 $0.00
Stopped 0 $0.00 $0.00
Total 206 $9,615,254.98 $0.00
user: Aimee Beleu Pages: 6 of 6 Tuesday, December 30, 2025 Payment Register
TOWN OF PARADISE
From Payment Date: 12/1/2025 - To Payment Date: 12/31/2025 36 Town of Paradise
Council Agenda Summary
Date: January 13, 2026
Agenda Item: 5(a)
ORIGINATED BY: Sarah Richter, Housing Program Coordinator REVIEWED BY: Colette Curtis, Recovery and Economic
Development Director
SUBJECT: Public Hearing for the Community Development Block Grant Program (CDBG) 2026-2027 Annual Action Plan
LONG TERM
RECOVERY PLAN:
No
COUNCIL ACTION REQUESTED:
1. Conduct a duly noticed and published public hearing to solicit comments and/or suggestions regarding the 2026-2027 Annual Action Plan funding priorities.
Background:
The Town of Paradise has been a U.S. Department of Housing and Development (HUD) entitlement city since 1994. HUD awards grants to entitlement community grantees to carry out a wide range of community development activities directed toward revitalizing neighborhoods, economic development, and providing improved community facilities and services.
Entitlement communities develop their own programs and funding priorities. However, grantees must give maximum feasible priority to activities which benefit low-income persons. Additionally, grantees may fund activities when the grantee certifies that the activities meet other community development needs having a particular urgency because existing conditions pose a serious and immediate threat to the health or welfare of the community where other financial resources are not available to meet such needs. CDBG funds may not be used for activities which do not meet a HUD defined National Objectives.
HUD determines the amount of each entitlement grant by a statutory dual formula which uses several objective measures of community needs, including the extent of poverty, population, housing overcrowding, age of housing and population growth lag in relationship to other metropolitan areas.
Annual Plan Overview:
The Town has not received its funding allocation for the program year, but is estimating that HUD will allocate approximately $50,000 to the Town of Paradise for programs and projects that directly benefit the town’s low-income residents. When funding is received, the Annual Action Plan funding amounts will be adjusted proportionally. Funding priorities identified in the 5-year Consolidated Plan include:
Improve public infrastructure
Economic development
Increase affordable housing
37 Non-housing community development
Annual Action Plan and Public Meetings:
Over the next several weeks, staff will prepare a Draft Annual Action Plan. The Plan will be available for public viewing and comment prior to its adoption by Council and prior to submission to the U.S. Department of Housing and Urban Development. The dates of the comment period and public hearings are as follows:
Public Hearing No. 2: Tuesday, March 10th at 6:00 p.m., or as soon thereafter as possible, in the Town Hall Council Chambers at 5555 Skyway, Paradise, California. This public hearing is to solicit comments from the public regarding the draft 2026-2027 CDBG Annual Action Plan. The public is encouraged to submit written comments of the CDBG funding to Sarah Richter, 5555 Skyway, and Paradise, CA 95969. If no public comments are received during the public comment period, the Council will consider adopting the final 2026-2027 Annual Action Plan.
The Draft Annual Plan will be available to the public on March 11, 2026. The plan will be available on the Town’s website (www.townofparadise.com); Town Hall, the Building Resiliency Center, the Butte County Public Library, and the Paradise Chamber of Commerce. The public comment period is from March 11th – April 10th, 2026. Written comments should be addressed to Sarah Richter, 5555 Skyway, Paradise, CA 95969.
Analysis:
Although the Town has some discretion on how the funds are used, there are many restrictions, conditions, and objectives that must be met. Community Development Block Grant funds can be used for activities that further community and economic development; provide improved community facilities and services; and provide affordable housing opportunities to low and disadvantaged residents. Each activity except planning and administrative activities, must meet one of the CDBG program’s three broad National Objectives:
1. Benefit low and moderate income persons,
2. Aid in the prevention or elimination of slums or blight, or
3. Meet community development needs having a particular urgency.
The types of activities that meet the national objective will encompass the following basic qualifiers:
Area benefit activities: An activity can be area-wide meaning that the benefits are available to all the residents of a particular area where at least 51 percent of the residents are low and moderate income persons. The service area must be primarily residential, and the activity must meet the identified needs of low-and-moderate income persons.
Limited clientele activities: An activity can be “limited clientele,” which means that the activity benefits a certain, limited clientele that is presumed to be at least 51 percent low income. An example of this would be programs limited to seniors or disabled residents.
Housing activities: An activity carried out for the purpose of providing or improving permanent residential structures, which upon completion, will be principally occupied by low-income households.
38 Job creation or retention activities: An activity designed to create or retain permanent jobs where at least 51% of that, computed on a full-time equivalent (FTE) basis, involves the employment of low-income persons.
Slum Blight Removal: Activities under this category must meet ALL of the following criteria: (1) The area delineated by the grantee must meet a definition of a slum, blighted, deteriorated or deteriorating area under state or local law; (2) there must be a substantial number of deteriorated buildings through the area; and (3) the activity must address one or more conditions that contributed to the deteriorate ion of the area. Boundaries, designations, inspections and detailed rehabilitation records must be kept.
In addition to the above qualifiers, there is a list of basic eligible activities and ineligible activities that can be carried out using CDBG funds. (Government Code Section 570.201.) https://www.ecfr.gov/current/title-24/subtitle-B/chapter-V/subchapter-C/part-570/subpartC/section-570.201 Basic Eligible Activities include: Acquisition/disposition of real property; public facilities acquisition, construction and rehabilitation; public services funding; payment of costs in support of activities eligible for funding under the HOME program; housing assistance for low/mod income families; and micro-enterprise assistance.
Financial Impact:
The impact of this agenda item and subsequent actions related to the CDBG Program will result in the award of approximately $50,000 in federal funds as we estimate the Town may receive approximately the same amount of funding as last year.
While the Town of Paradise is the smallest grantee in the country, continued designation as a CDBG entitlement community allows the Town to qualify for other grant funding opportunities. 39 Town of Paradise
Council Agenda Summary
Date: January 13, 2026
Agenda Item: 6(a)
ORIGINATED BY: Marc Mattox, Assistant Town Manager
REVIEWED BY: Mike O’Brien, Interim Town Manager
SUBJECT: Paradise CDBG-DR Infrastructure Action Plan Amendment No. 4
LONG TERM
RECOVERY PLAN:
Yes - Various
COUNCIL ACTION REQUESTED:
1. Provide direction relating to the conditional CDBG-DR allocation of $13.5M for the Paradise Sewer Project or Oliver Curve Project; and,
2. Approve the Paradise Community Development Block Grant Disaster Recovery – Infrastructure Action Plan Amendment 4; and,
3. Adopt Resolution 2026-__ “A Resolution of the Town Council of the Town of Paradise Canceling the Evacuation Route Permanent Changeable Message Sign Project Standard Agreement and Redirecting Allocated Funds to Storm Drain Resiliency Project Phase 1”; or,
4. Provide alternate direction. (ROLL CALL VOTE)
Background:
On January 27, 2020, the United States Department of Housing and Urban Development (HUD) published Federal Register Notice 85 FR 4681 allocating $1.017 billion in Community Development Block Grant – Disaster Recovery (CDBG-DR) funding related to the 2018 federally declared disasters, including FEMA Major Disaster Declarations DR-4382 and DR-4407. The California Department of Housing and Community Development (HCD) serves as the State grantee responsible for administering these funds.
Of the total allocation, HCD dedicated $317,428,488 to the CDBG-DR Infrastructure Program to address unmet disaster recovery infrastructure needs across impacted jurisdictions. On August 19, 2022, HCD announced that the Town of Paradise was awarded $199,592,735.75 under this program. In addition, through a subsequent Action Plan Amendment, the Town received $30 million specifically for design of the Paradise Sewer Project, bringing the Town’s total CDBG-DR Infrastructure allocation to $229,592,735.75.
On September 15, 2022, the Paradise Town Council adopted the original CDBG-DR Infrastructure Action Plan to establish a framework for prioritizing, funding, and implementing eligible recovery infrastructure projects. Since that time, the Town has adopted multiple Action Plan Amendments to reflect updated cost estimates, refined scopes, and new funding opportunities, including Amendment No. 3 adopted in April 2025.
Analysis:
Action Plan Amendment No. 4 represents the next evolution of the Town’s long-term recovery 40 strategy and incorporates several significant developments since adoption of Amendment No. 3.
Specifically, Amendment No. 4:
Incorporates newly awarded CDBG-DR Mitigation – Resilient Infrastructure Program (MIT-RIP) funding, including projects focused on storm drain resiliency, private road identification safety, and evacuation-related infrastructure; Documents Council-directed reallocation of MIT-RIP funds to prioritize stormwater infrastructure based on observed post-fire hydrologic impacts and updated risk assessments;
Updates the Project Grant List, funding allocations, and project sequencing to reflect refined scopes, updated engineer’s estimates, and alignment between recovery and mitigation investments; and
Includes a new section documenting a potential supplemental CDBG-DR Infrastructure allocation of approximately $13.5 million, subject to HUD approval, which the Town intends to program toward either the Paradise Sewer Project or the Oliver Curve Pathway Project to further support housing recovery, evacuation safety, and long-term community resiliency.
Sewer Project Emphasis
A central feature of Amendment No. 4 is the increased emphasis on the Paradise Sewer Project as a foundational recovery investment. Sewer infrastructure remains one of the Town’s most critical unmet needs following the 2018 Camp Fire and is essential to restoring housing, enabling higher-density and affordable residential development, and supporting public health and environmental objectives. Amendment No. 4 increases the recommended CDBG-DR allocation toward sewer construction and positions the Town to incorporate future supplemental funding, should it be approved by HUD.
Mitigation Integration
Amendment No. 4 also formally integrates the Town’s CDBG-DR Mitigation (MIT-RIP) awards into the Action Plan. These mitigation investments complement recovery infrastructure by reducing long-term risks to life and property, particularly related to wildfire, flooding, and stormwater impacts. Together, the CDBG-DR Infrastructure and MIT-RIP programs support a coordinated approach to rebuilding Paradise as a safer, more resilient community.
CDBG-DR Compliance Issue – Oliver Curve Pathway Project During recent coordination with the California Department of Housing and Community Development (HCD), staff was advised of a compliance issue related to the Oliver Curve Pathway Project as currently presented in the Action Plan.
Under Action Plan Amendment No. 4, the Oliver Curve Project is allocated approximately $1.25 million in CDBG-DR funds to complete environmental clearance, design, and right-of-way activities, with the intent of positioning the project to compete for future leveraging grants. While this phased approach aligns with typical local capital planning practices, HCD has clarified that CDBG-DR funds are required to be programmed toward fully deliverable projects that independently meet a HUD National Objective and are not contingent on speculative or unsecured future funding sources.
41 As a result, HCD has indicated that the Town must resolve whether the Oliver Curve Project will be:
Fully funded and deliverable within the CDBG-DR Action Plan; or Deferred until a viable full-funding strategy is secured outside of CDBG-DR.
This issue was not previously identified during earlier Action Plan amendments and has emerged as a result of HCD’s detailed review of the Amendment No. 4 project configuration.
Financial Impact:
Adoption of Action Plan Amendment No. 4 does not commit new General Fund resources. All projects and allocations described in the Amendment rely on previously awarded or anticipated state and federal grant funding. Any future obligation of supplemental CDBG-DR funds will be subject to HUD approval, completion of environmental review, and subsequent Council authorization.
Council Direction Required
To address this compliance issue and maintain consistency with CDBG-DR program requirements, staff is requesting Council direction on how the conditional $13.5 million supplemental CDBG-DR Infrastructure allocation should be programmed, if approved by HUD.
Council direction is requested to pursue one of the following options:
Option A – Oliver Curve Pathway Project
Direct staff to program the potential supplemental CDBG-DR Infrastructure funds toward the Oliver Curve Pathway Project in order to advance the project to a fully funded, standalone, and deliverable status consistent with CDBG-DR requirements.
Option B – Paradise Sewer Project (Staff Recommendation) Direct staff to program the potential supplemental CDBG-DR Infrastructure funds toward the Paradise Sewer Project to address anticipated cost escalation and siting complexities associated with treatment facility location, subject to environmental review and site selection. This option prioritizes a project that is foundational to housing recovery, public health, and long-term community resiliency and eliminates compliance risk associated with partially funded projects. Under this option, the previously planned $1.25 million CDBG-DR allocation for the Oliver Curve Pathway Project would also be reprogrammed to the Paradise Sewer Project.
Council direction at this stage is policy-level and conditional, and does not obligate funds unless and until the supplemental allocation is approved by HUD and subsequent project-specific approvals are brought back to Council.
Attachments:
- CDBG-DR Action Plan Action Plan Amendment 4 (draft)
42 1
TOWN OF PARADISE
RESOLUTION NO. 2026-____
A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN
OF PARADISE CANCELING THE EVACUATION ROUTE
PERMANENT CHANGEABLE MESSAGE SIGN PROJECT
STANDARD AGREEMENT AND REDIRECTING
ALLOCATED FUNDS TO STORM DRAIN RESILIENCY
PROJECT PHASE 1
WHEREAS, the Department of Housing and Community Development (HCD) awarded the Town of Paradise $5,400,000 through the Community Development Block Grant Mitigation (CDBG-DR) Resilient Infrastructure Program (MIT-RIP) for the Evacuation Route Permanent Changeable Message Sign Project; and WHEREAS, the Standard Agreement was signed on May 22, 2025 by the Town of Paradise; and
WHEREAS, the Town expressed their desire to redirect the allocation of funds from the Evacuation Route Permanent Changeable Message Sign Project to the Storm Drain Resiliency Project Phase 1; and
WHEREAS, the reallocation of funds will result in the improvement of seven different storm drain facilities compared to the two facilities in the original Storm Drain Resiliency Project Phase 1; and
WHEREAS, the improvements include better capacity, reduced water velocity, and more drain inlets.
NOW, THEREFORE BE IT RESOLVED by the Town Council of the Town of Paradise, State of California, as follows:
1. Cancel the Evacuation Route Permanent Changeable Message Sign Project Standard Agreement.
2. The allocated funds from the Evacuation Route Permanent Changeable Message Sign Project will be redirected to the Storm Drain Resiliency Project Phase 1.
43 2
PASSED AND ADOPTED by the Town Council of the Town of Paradise on this 13 th day of January 2026, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
By:
Steve Crowder, Mayor
ATTEST:
Melanie Elvis, Town Clerk
APPROVED AS TO FORM:
Scott E. Huber, Town Attorney
44 Town of Paradise
Community Development Block Grant Disaster Recovery
Infrastructure and Mitigation Resiliency Improvement Program Amendment 4
Planned for Review by Town Council on January 13, 2026
45 Paradise CDBG-DR Infrastructure Action Plan 26-0113
Amendment 4, Page 2
Contents
1. Amendment 4 Summary............................................................................................................................3
2. Purpose ......................................................................................................................................................3
3. CDBG-DR Infrastructure General ...............................................................................................................3
4. CDBG-DR Infrastructure Program Activities ..............................................................................................4 a. FEMA PA Match..............................................................................................................................4 b. FEMA HMGP Match........................................................................................................................4 c. Other Non-Federal Match ..............................................................................................................4 d. Stand-Alone Infrastructure.............................................................................................................5
5. CDBG-DR Infrastructure Program Requirements ......................................................................................5 a. Tie-back to the Disasters ................................................................................................................5 b. Meeting a National Objective.........................................................................................................6 c. Eligible Applicants...........................................................................................................................7
6. CDBG-DR Infrastructure Program Policies and Procedures.......................................................................8
7. Town of Paradise Notices of Intent Round 1 & Round 2 ...........................................................................8
8. HCD Funding Allocation Announcement .................................................................................................11
9. Town of Paradise CDBG-DR Infrastructure Allocation.............................................................................12
10. CDBG-DR Resilient Infrastructure Program (MIT-RIP) .............................................................................13
11. CDBG-DR MIT-RIP Program Activities......................................................................................................13
12. Town of Paradise CDBG-DR MIT-RIP Allocation.......................................................................................14
13. Supplemental CDBG-DR Infrastructure Allocation ..................................................................................15
14. Town of Paradise Project Grant List.........................................................................................................16
15. Project Schedule Forecast........................................................................................................................21
16. Issues to Watch........................................................................................................................................23 a. Oliver Curve Pathway ...................................................................................................................23 Project Fact Sheets and Maps
46 Paradise CDBG-DR Infrastructure Action Plan 26-0113
Amendment 4, Page 3
1. Amendment 4 Summary
The Town of Paradise is issuing Action Plan Amendment 4 to incorporate newly awarded and anticipated funding, updated project priorities, and refinements to the Town’s overall Community Development Block Grant Disaster Recovery (CDBG-DR) Infrastructure and Mitigation portfolio. This Amendment reflects continued evolution of the Town’s recovery program as projects advance into later phases of design and construction, mitigation needs are further refined, and additional funding opportunities become available.
Key elements of Amendment 4 include:
• Incorporation of CDBG-DR Mitigation – Resilient Infrastructure Program (MIT-RIP) awards supporting storm drain resiliency, evacuation safety, and emergency response improvements; • Reallocation of previously approved MIT-RIP funding to better align with the Town’s highest mitigation priorities, specifically enhanced stormwater resiliency informed by post-fire hydrologic conditions;
• Updates to the Project Grant List, funding allocations, and cost assumptions to reflect refined scopes, updated engineer’s estimates, and integration of mitigation investments alongside recovery infrastructure; and
• Inclusion of a supplemental CDBG-DR Infrastructure allocation of approximately $13.5 million, subject to HUD approval, intended to further support and enhance the benefits of the first phase of the Paradise Sewer Project.
Collectively, Amendment 4 reinforces the Town’s strategy to pair disaster recovery with long-term resilience, ensuring that critical infrastructure investments—particularly those supporting housing restoration, evacuation capacity, and public health—are both deliverable and durable. More detailed descriptions of the changes incorporated through this Amendment are provided in Sections 10 through 15 of this document.
2. Purpose
The Town of Paradise CDBG-DR Infrastructure Action Plan aims to document the context, approach and overview of potential use of allocated funds. Future revised Action Plans will be presented:
- Annually during budget processing, and
- As needed when critical issues develop requiring Council action such as changes to the Recommended Project List
3. CDBG-DR Infrastructure General
On January 27, 2020, United States Department of Housing and Urban Development (HUD) published Federal Register Notice 85 FR 4681 allocating $1,017,399,000 in CDBG-DR funding, related to the Federal Emergency Management Agency (FEMA) Major Disaster Declarations DR-4382 from July to September 2018 and DR-4407 in November 2018. The California Department of Housing and Community Development (HCD) is the grantee responsible for administering the CDBG-DR funds allocated to the State of California. CDBG-DR supports the State of California’s unmet recovery needs related to the Federal Emergency Management Agency (FEMA) Major Disaster Declarations DR- 4382 from July to September 2018 and DR-4407 in November 2018.
Recognizing unmet infrastructure recovery needs, related to DR-4382 from July to September 2018 and DR4407 in November 2018, HCD allocated $317,428,488 of the CDBG-DR funding to the Disaster Recovery Infrastructure Program (DR-Infrastructure). DR-Infrastructure projects are funded to assist with meeting the 47 Paradise CDBG-DR Infrastructure Action Plan 26-0113
Amendment 4, Page 4
unmet infrastructure needs of local communities. This program provides funding for FEMA Public Assistance (PA) match projects, FEMA Hazard Mitigation Grant Program (HMGP) match projects, other non-FEMA match projects, and stand-alone projects identified by local communities impacted by DR-4382 or DR-4407. HUD requires that 70% of the total grant-wide funds are spent on activities that meet the low- and moderateincome (LMI) national objective and 80% of grant funds are expended in the HUD-identified most impacted and distressed (MID) areas. The MID areas for the 2018 CDBG-DR Infrastructure Program include the entire counties of Butte, Shasta, Los Angeles and Lake; the Town of Paradise is MID eligible within Butte County.
4. CDBG-DR Infrastructure Program Activities
The CDBG-DR Infrastructure Program utilizes CDBG-DR funds to address two needs of Eligible Applicants: 1.) providing support to disaster-impacted units of local government and other eligible entities with payment of their non-federal local cost share (FEMA Public Assistance (PA) Match, FEMA HMGP Match, and other federal grants) requirement so that they can access other disaster recovery resources without incurring an unexpected financial burden to address recovery needs; and 2.) providing funds to units of local government to develop “Stand- Alone” infrastructure projects, which can be funded with up to 100% CDBG-DR funding, that are necessary to address unmet disaster recovery needs from impacts tied to DR- 4382 or DR-4407. To address the needs of Eligible Applicants described in this paragraph, the CDBG-DR Infrastructure Program funds are used for the following project types:
• The non-federal local cost share match on disaster-related federal grants (FEMA and other federal grants); and
• Non-match, Stand-Alone Infrastructure projects that address identified unmet 2018 disaster recovery needs and increase the resilience of cities and counties. a. FEMA PA Match
The FEMA Public Assistance (PA) Grant Program supports communities’ recovery from major disasters by providing them with grant assistance for debris removal, life-saving emergency protective measures, and restoring public infrastructure. FEMA provides grants to the State and its sub-applicants (cities, counties, school districts, etc.) to address the long-term rebuilding, recovery, and resiliency needs of the communities.
Projects that are approved for FEMA PA Match in certain FEMA Categories are eligible for non- federal share, local match funding under the CDBG-DR Infrastructure Program. See Section 2.4 for a full description of eligible FEMA PA Match projects, activities, and compliance. b. FEMA HMGP Match
FEMA Hazard Mitigation Grant Program (HMGP) activities are designed to help communities implement hazard mitigation measures following a Presidential Major Disaster Declaration in the areas of the state, tribe, or territory requested by the Governor or Tribal Executive. The key purpose of HMGP is to enact mitigation measures that reduce the risk of loss of life and property from future disasters. Projects that are approved for FEMA HMGP Match are eligible for non-federal, local match funding under DR-Infrastructure. See Section 2.5 for a full description of eligible FEMA HMGP Match projects, activities, and compliance. c. Other Non-Federal Match
HCD may fund the local portion of the non-federal share for other federally grant- funded infrastructure projects with a tie-back to the DR-4382 or DR-4407 disaster events. Grants include, but are not limited to, projects funded by the Federal Highway Administration (FHWA) and the United States Department of Agriculture (USDA).
48 Paradise CDBG-DR Infrastructure Action Plan 26-0113
Amendment 4, Page 5
d. Stand-Alone Infrastructure
Non-match, Stand-Alone CDBG-DR eligible infrastructure projects with a tie-back to the 2018 disasters that can be funded with up to 100 percent of CDBG-DR funding are eligible for the CDBG-DR Infrastructure Program. These non-match, Stand-Alone Infrastructure projects are critical to address identified unmet disaster recovery needs and increase the resilience of cities and counties that are not funded by other federal recovery programs. All Stand-Alone Infrastructure projects require an environmental review be completed by the Subrecipient. See Section 2.6 for a full description of eligible Stand-Alone Infrastructure projects, activities, and compliance.
5. CDBG-DR Infrastructure Program Requirements
a. Tie-back to the Disasters
All projects funded through the DR Infrastructure Program must in some way respond to a direct impact from the following federally declared disasters:
• DR-4382 California Wildfires and High Winds (July 23, 2018 – September 19, 2018) • DR-4407 California Wildfires (November 08, 2018 – November 25, 2018) The FEMA PA program requires clear documentation showing a direct disaster related impact as a prerequisite for entry into the program. Only after an impact threshold has been met does FEMA consider making disaster funds available to applicants. It is assumed that if the potential applicant received funding and support through the FEMA PA program, the project has a tie to one of the declared disasters. For FEMA PA Match projects, the tie to the 2018 disasters is documented by FEMA’s approval of the Project Worksheet.
For Stand-Alone projects, HMGP Match projects, and other Federal match projects, the tie to the 2018 disasters is documented as part of the Notice of Intent (NOI) and application processes and stored in the program file of Grants Network. Documentation that shows a tie to the disaster can include, but is not limited to, a damage estimate prepared by city/county staff or contractor, reconstruction estimates for physical losses by engineers or other similar professionals, insurance claims, or photographic evidence of the physical impact of the disaster on the project with clear dates and timeline.
Eligible Applicants may submit indirect tie backs to the disaster that are a result of population shifts due to DR-4382 and DR-4407. For such indirect tie backs, Eligible Applicants are required to use one of two options.
Option one is to use publicly available data from a government entity or research center acceptable to HCD to determine whether the jurisdiction experienced a sustained population increase, of at least 24 months, reasonably attributable to an influx of 2018 disaster survivors. Option two is for Eligible Applicants to provide alternative data documenting a sustained population increase, of at least 24 months, reasonably attributable to an influx of 2018 disaster survivors, using a survey methodology acceptable to HCD (i.e., reasonably designed to produce an accurate estimate).
For all projects, HCD reviews how each project supports the overall housing recovery from DR-4382 or DR4407. Projects that support overall housing recovery are infrastructure projects that enable the recovery of residential areas by meeting transportation needs, restoring essential utilities, and addressing other public infrastructure and facility needs. Examples of infrastructure projects that support overall housing recovery include, but are not limited to public roads, school facilities, stormwater drainage improvements, potable water, sanitary sewer, electric and gas utilities, wastewater treatment facilities, parks, and other public facilities that are important publicly owned assets.
49 Paradise CDBG-DR Infrastructure Action Plan 26-0113
Amendment 4, Page 6
b. Meeting a National Objective
In accordance with 24 CFR 570.208, all CDBG-DR funded activities must meet a national objective as required under 24 CFR 570.200(a)(2). Under section 101(c) of the authorizing Act (42 U.S.C. 5301) the CDBG program must ensure that the funded activity meets one of the named national objectives. The two qualifying national objectives are:
• Benefiting low- and moderate-income (LMI) persons; and • Meeting an urgent need.
National
Objective
Category
Subcategory Required Documentation
LMI Benefit LMI Area Benefit
Boundaries of service area of activity/project
Census data including the persons and percentage LMI
Evidence area is primarily residential
Survey documentation (if applicable)
LMI Benefit LMI Limited
Clientele
Documentation that the beneficiaries are or are presumed to be LMI by category (e.g. senior housing, homeless shelters, etc.).
LMI Benefit LMI Housing If applicable, income document for all household members 18 years of age and older.
Urgent Need Urgent Need Resolution from Subrecipient’s city council, county board, or similar governing body stating that no other funds are available for the proposed project.
The CDBG-DR Infrastructure Program must demonstrate that funded activities meet one of the two National Objectives. The types of records to be maintained for each CDBG-DR funded project depends on the National Objective category for which it qualifies. For all CDBG-DR Infrastructure Program projects, the final determination of the National Objective is completed during the application process based on HUD guidance.
Eligible Applicants also need to provide preliminary National Objective documentation as part of the NOI process to support the Priority Level of the project.
Determining the service area of an activity involves consideration of the nature, location, and accessibility of each activity, and the information contained within the project’s description and scope of work (contained in the Project Worksheet for FEMA PA projects). Service areas are based on the beneficiaries of recovery activities and/or types of facilities (e.g. work on roads and bridges, repair/replacement of public utilities, etc.); geographic features (e.g. locations of highway, rivers, hillsides, etc.); and local population characteristics (e.g. population size and density). Wherever possible, HCD leverages pre- defined service areas mapped by a government agency or utility service providers.
HCD anticipates that projects that qualify under the Low- and Moderate-Income (LMI) National Objective are primarily using the Low- and Moderate-Income Area Benefit (LMA) category. Once a project’s service area is identified, HUD Low- and Moderate-Income Summary Data is used to determine if least 51 percent of the residents are low- and moderate-income persons.
The Urgent Need National Objective requires that the project is designed to meet community development needs having a particular urgency. In the absence of substantial evidence to the contrary, a project is considered to address this National Objective if the design of the project is certified to alleviate existing conditions which pose a serious and immediate threat to the health or welfare of the community which are of recent origin or which recently became urgent, that the Subrecipient is unable to finance the activity on its 50 Paradise CDBG-DR Infrastructure Action Plan 26-0113
Amendment 4, Page 7
own, and that other sources of funding are not available. A condition is generally considered to be of recent origin if it developed or became critical within 18 months preceding the certification by the Subrecipient. c. Eligible Applicants
The eligible applicants for Infrastructure Recovery Program funds are municipal and county governments that received FEMA Public Assistance funds for permanent infrastructure projects (Categories C through G) related to the DR-4382 or DR-4407 disaster events and/or are listed as a subrecipient jurisdiction under the 2018 CDBG Disaster Recovery Multifamily Housing Program.
Eligible Applicants
• Butte County
• Lake County
• Los Angeles County
• Shasta County
• Ventura County
• City of Agoura Hills
• City of Anderson
• City of Calabasas
• City of Chico
• City of Gridley
• City of Lakeport
• City of Los Angeles
• City of Malibu
• City of Oroville
• City of Redding
• City of Shasta Lake
• City of Thousand Oaks
• City of Westlake Village
• Town of Paradise
Eligible Applicants may submit projects located anywhere within the unit of local government’s jurisdiction in accordance with the eligibility requirements outlined in Sections 2.4, 2.5, 2.6, and 2.7 below. As needed, Eligible Applicants may collaborate with other eligible entities, units of local government, or special districts in the implementation of the CDBG-DR Infrastructure Program.
Subrecipients may submit applications on behalf of another jurisdiction or special district. If the application is approved by HCD, the Subrecipient may enter into an agreement with another jurisdiction or special district for implementing the project. Prior to HCD issuing a Notice to Proceed (NTP) for the project, the Subrecipient must submit a monitoring plan for the unit of local government or special district working under the agreement. The monitoring plan shall demonstrate that the Subrecipient has the capacity to oversee work of the local government or special district.
Agreements with other units of local government, special districts, and other eligible entities are limited to program implementation support and the Subrecipient cannot allocate project funding directly to other government entities unless the Subrecipient, during the Due Diligence process, notifies HCD of its intent to make a unit of local government or special district a subrecipient for a potential project. In such instances, the following two (2) conditions must be special conditions in the MSA that the Subrecipient needs to clear prior to HCD issuing a Notice to Proceed for the specific potential project(s):
1.) HCD approves the Subrecipient’s monitoring plan of the unit of local government or special district for the proposed project. The monitoring plan must demonstrate that the Subrecipient has sufficient understanding of the program requirements, the applicable federal and state regulations, and the capacity to monitor the work of its subrecipients.
2.) Subrecipient agreements must be approved by HCD. If a Subrecipient is a CDBG entitlement community and has a subrecipient agreement in place, they may use the agreement as a template or an amended agreement, if approved by HCD.
If the preceding two (2) conditions are met, the Subrecipient can make the units of local government or special districts subrecipients and can directly allocate funds from the Subrecipient’s DR-Infrastructure allocation for individual projects approved by HCD during the Project Application process and for which 51 Paradise CDBG-DR Infrastructure Action Plan 26-0113
Amendment 4, Page 8
HCD issues a Notice to Proceed. For all cases in accordance with 83 FR 5844 Section 51(k), HCD must also assess the Subrecipient’s capacity to execute and monitor the proposed project(s) as a factor in the project review. Additionally, for CDBG-DR funds to be used as the non-federal cost share local match, the project must be a HUD eligible activity and must meet a HUD national objective, per CDBG-DR rules and regulations. Similarly, the project must fully comply with all applicable federal rules and regulations, to include Davis Bacon and related acts, Section 3, Section 504, procurement, environmental review and all other CDBG-DR, cross-cutting, state and local applicable statutes, rules and regulations.
Special note, Paradise Irrigation District is an eligible applicant under the Town of Paradise and will be subject to the subrecipient requirements
6. CDBG-DR Infrastructure Program Policies and Procedures Full CDBG-DR Infrastructure Program Policies and Procedures can be found here:
https://www.hcd.ca.gov/community-development/disaster-recovery-programs/cdbg-dr/cdbg-dr2018/docs/18DRINF18MITRIPPoliciesandProceduresv2.pdf
7. Town of Paradise Notices of Intent Round 1 & Round 2 Through the development of the Town’s Community Long Term Recovery Plan and Transportation Master Plan, the Town of Paradise prepared a list of eligible projects to be considered in the CDBG-DR Infrastructure Notice of Intent phase for both Round 1 (LMI-eligible projects) and Round 2 (all other non-LMI projects). Action taken by Paradise Town Council on February 8, 2022 included the adoption of Resolution No. 2022-12, A Resolution of the Town Council of the Town of Paradise Declaring Certain Projects Critical to Camp Fire Recovery with Unfunded Needs for Consideration in the CDBG-DR Infrastructure Program. A copy of the project list adopted by Council and submitted for consideration is provided below:
Project Title National Objective
Overall Priority
LMI Priority
Urgent Need
Priority Long Term Recovery Plan Tier
and Project Category Total Cost Total Unmet Need
Paradise Sewer Project Urgent Need 1 N/A 1 1 - Sewer System $184,675,000 $182,275,000 On-System Road Rehabilitation Urgent Need-Match 2 N/A 2 1 - Evacuation Routes $55,439,200 $13,859,800 Off-System Road Rehabilitation Urgent Need-Match 3 N/A 3 1 - Evacuation Routes $45,043,700 $11,260,925 Roe Road Extension Phase 1 (S Libby to Pentz) LMI 4 1 N/A 1 - Missing Road Segment $60,400,000 $60,400,000 Roe Road Phase 2 (SR-191 to S Libby) LMI 5 2 N/A 1 - Missing Road Segment $42,622,089 $42,622,089 Roe Road Phase 3 (Scottwood to SR-191) LMI 6 3 N/A 1 - Missing Road Segment $11,105,512 $11,105,512 Pentz Road Widening (Town Limits to Skyway) Urgent Need 7 N/A 4 1 - Evacuation Routes $88,865,680 $88,865,680 Early Warning System Urgent Need-Match 8 N/A 5 1 - Emergency Notification $3,207,400 $3,200,000 Elliott Road Extension (End to Pentz Road) Urgent Need 9 N/A 6 1 - Missing Road Segment $7,050,742 $7,050,742 52 Paradise CDBG-DR Infrastructure Action Plan 26-0113
Amendment 4, Page 9
Neal Road Rehabilitation Urgent Need-Match 10 N/A 7 1 - Evacuation Routes $1,588,300 $397,075 Off-System Culvert Repair Urgent Need-Match 11 N/A 8 1 - Evacuation Routes $750,000 $187,500 Buschmann Extension between Clark & Libby LMI 12 4 N/A 1 - Missing Road Segment $24,043,221 $24,043,221 Sawmill Extension south to Roe Road Extension LMI 13 5 N/A 1 - Long Dead-End Streets $3,337,373 $3,337,373 Roe Road Phase 4 (Skyway to Neal) Urgent Need 14 N/A 9 1 - Missing Road Segment $20,380,141 $20,380,141 Roe Road Phase 5 (Neal to Scottwood) Urgent Need 15 N/A 10 1 - Evacuation Routes $21,049,870 $21,049,870 Upper Skyway Widening (Bille to Pentz) Urgent Need 16 N/A 11 1 - Evacuation Routes $49,067,998 $49,067,998 Neal Road Widening (Town Limits to Skyway) Urgent Need 17 N/A 12 1 - Evacuation Routes $25,308,880 $25,308,880 On-System Culvert Replacement Urgent Need-Match 18 N/A 13 1 - Evacuation Routes $811,000 $202,750 Upper Clark Widening (Wagstaff to Skyway) Urgent Need 19 N/A 14 1 - Evacuation Routes $25,007,475 $25,007,475 Elliott Road Extension (west of Skyway) Urgent Need 20 N/A 15 1 - Missing Road Segment $850,011 $850,011 Category 4 Tree Removal Urgent Need-Match 21 N/A 16 1 - Standing Burnt Tree Removal $11,747,100 $2,936,782
Category 4 Tree Removal Additional Assistance Urgent Need-Match 22 N/A 17 1 - Standing Burnt Tree Removal $10,000,000 $2,500,000
General Plan Update Urgent Need 23 N/A 18 1 - Planning and Zoning $1,200,000 $1,200,000 Sewer Service Area Specific Plan Urgent Need 24 N/A 19 1 - Sewer System $800,000 $800,000 Defensible Space Code Enforcement Urgent Need-Match 25 N/A 20 1 - Updated codes/standards $691,460 $172,865 On-System Hardscape Replacement Urgent Need-Match 26 N/A 21 1 - Walkable Downtown $767,100 $191,775 Storm Drain Master Plan (HMGP) Urgent Need-Match 27 N/A 22 2 - Sustainable Stormwater $513,774 $128,444 Residential Ignition Resistant Program Urgent Need-Match 28 N/A 23 2 - Education Program $8,465,986 $2,116,497 ATP 1 - Skyway Connectivity Project Urgent Need 29 N/A 24 1 - Interconnect Path System $4,461,689 $4,461,689 ATP 3 - Pentz Pathway Project Phase II Urgent Need 30 N/A 25 1 - Interconnect Path System $27,164,964 $26,464,964 ATP 2 - Paradise ATP Gateway Project Urgent Need 31 N/A 26 1 - Interconnect Path System $10,066,526 $9,516,526 ATP 4 - Oliver Curve Pathway Project Phase I Urgent Need 32 N/A 27 1 - Interconnect Path System $4,906,900 $5,073,547 Foster/Black Olive Intersection Improvements Urgent Need 33 N/A 28 1 - Evacuation Routes $5,000,000 $5,000,000 Buschmann Extension West of Foster Road Urgent Need 34 N/A 29 1 - Missing Road Segment $3,290,571 $3,290,571 Intersection Improvements Skyway/Pentz Urgent Need 35 N/A 30 1 - Evacuation Routes $4,500,000 $4,500,000 Moore Road (Public, pave) Urgent Need 36 N/A 31 1 - Missing Road Segment $1,436,639 $1,436,639 Pentz/Pearson Intersection Improvements Urgent Need 37 N/A 32 1 - Evacuation Routes $4,500,000 $4,500,000 Clark Class I (Skyway to Pearson) Urgent Need 38 N/A 33 1 - Interconnect Path System $21,554,691 $21,554,691 Pearson Class I (Clark to Pentz) Urgent Need 39 N/A 34 1 - Interconnect Path System $13,554,857 $13,554,857 Elliott Class I (Skyway to Sawmill) Urgent Need 40 N/A 35 1 - Interconnect Path System $12,718,561 $12,718,561 53 Paradise CDBG-DR Infrastructure Action Plan 26-0113
Amendment 4, Page 10
Wagstaff Class I (North side Oliver to Clark) Urgent Need 41 N/A 36 1 - Interconnect Path System $12,638,530 $12,638,530 Libby Road Extension between Pearson & Elliott Urgent Need 42 N/A 37 1 - Missing Road Segment $5,898,678 $5,898,678 Changeable Message Sign Network Urgent Need 43 N/A 38 1 - Emergency Notification $130,000 $130,000 Forest Service Road Urgent Need 44 N/A 39 1 - Missing Road Segment $1,706,351 $1,706,351 Toyon Lane Improvements (Foster to Roe) Urgent Need 45 N/A 40 1 - Missing Road Segment $3,880,420 $3,880,420 On-System Sign Replacement Urgent Need-Match 46 N/A 41 1 - Evacuation Routes $285,200 $71,300 Traffic Management Center Urgent Need 47 N/A 42 1 - Evacuation Routes $3,500,000 $3,500,000 Traffic Signal Interconnect (Town of Paradise) Urgent Need 48 N/A 43 1 - Evacuation Routes $10,500,000 $10,500,000 Honey Run Road Improvements Urgent Need 49 N/A 44 1 - Evacuation Routes $80,000 $80,000 Reseeding Program Urgent Need-Match 50 N/A 45 1 - Fuels Management Plan $53,600 $13,400 Hazardous Fuel Reduction Program Urgent Need-Match 51 N/A 46 1 - Fuels Management Plan $8,465,986 $2,116,497 Bille Road Class I (Bille Park to Pentz Road) Urgent Need 52 N/A 47 1 - Interconnect Path System $17,865,526 $17,865,526 Sawmill Class I (Bille to Pearson) Urgent Need 53 N/A 48 1 - Interconnect Path System $9,129,765 $9,129,765 Valley View Class I (Valley Ridge Dr West to Oliver) Urgent Need 54 N/A 49 1 - Interconnect Path System $8,973,865 $8,973,865 Oliver Curve Pathway Project Phase II (Bille to Wagstaff) Urgent Need 55 N/A 50 1 - Interconnect Path System $3,787,009 $3,787,009 Skyway Class I (YKHT to Oliver Road) Urgent Need 56 N/A 51 1 - Interconnect Path System $3,371,677 $3,371,677 Pearson Roadway Reconfiguration (Skyway to Almond) Urgent Need 57 N/A 52 1 - Evacuation Routes $600,000 $600,000 Shay Lane Extension (to Center Pine Drive) Urgent Need 58 N/A 53 1 - Long Dead-End Streets $849,633 $849,633 Bille Road Extension east of Pentz Urgent Need 59 N/A 54 1 - Missing Road Segment $2,598,810 $2,598,810 Clark (spot widening b/t Wagstaff & Bille) Urgent Need 60 N/A 55 1 - Evacuation Routes $1,684,300 $1,684,300 A map of most infrastructure projects planned as a result of the development of the Town’s Transportation Master Plan is found below.
54 Paradise CDBG-DR Infrastructure Action Plan 26-0113
Amendment 4, Page 11
8. HCD Funding Allocation Announcement
On August 19, 2022, Governor Gavin Newsom announced federal grants totaling more than $317 million to assist seven jurisdictions that continue to recover and rebuild after the 2018 federally declared disasters, when wildfires burned more than 1.6 million acres and destroyed hundreds of homes and businesses, particularly in the Town of Paradise, in Butte County.
The Community Development Block Grant-Disaster Recovery (CDBG-DR) funds announced are for foundational infrastructure projects that must be completed as communities work to build and rebuild needed housing, especially housing for low- and moderate-income Californians, and ensure that every household that was displaced in these disasters has the opportunity to return home.
Figure 1 - Paradise TMP Evacuation Projects Map
55 Paradise CDBG-DR Infrastructure Action Plan 26-0113
Amendment 4, Page 12
A press release issued by the Governor’s office stated:
Communities were awarded funding based on their unmet infrastructure needs and have the flexibility to use the grants to support projects based on their priorities to rebuild in a safe, sustainable, and resilient way. The Town of Paradise has been awarded nearly $200 million, which will be used to construct critical projects that will accelerate their capacity to rebuild higher density and more affordable housing, business corridors, and critical evacuation routes in the event they face future disasters.
The following is a full list of awards announced across the entire CDBG-DR Infrastructure Program:
Local Jurisdiction Total Awarded
Butte County $72,722,679.61
City of Chico $12,388,409.65
City of Malibu $47,276.93
City of Redding $22,563,043.51
City of Shasta Lake $6,326,184.69
Los Angeles County $3,788,157.86
Town of Paradise $199,592,735.75
Total $317,428,488.00
9. Town of Paradise CDBG-DR Infrastructure Allocation
The Town of Paradise was allocated $199,592,735.75. This determination was made after a review of the Town’s eligible projects in respect to other jurisdictions eligible projects and available funding. As a result, the Town of Paradise was awarded 27% its overall eligible unmet need. The Town’s allocation is also inclusive of Paradise Irrigation District’s four eligible projects. The Town of Paradise plans to administer CDBG-DR Program Guidelines for subrecipients and follow the HCD formulate to distribute 27% of Paradise Irrigation District’s eligible projects. Paradise Irrigation District submitted $13,030,000 in eligible CDBG-DR Infrastructure projects. Apportioned at 27%, $3,518,100 would be the Town’s subrecipient allocation to Paradise Irrigation District, reducing the Town’s available funding to $196,074,635.75. Paradise Irrigation District has requested their allocation be absorbed into the Town’s original budget for water infrastructure relocation costs associated with Town CDBG-DR projects. As a result, Town and PID staff will continue to partner with HCD to formulate a Memorandum of Understanding which could govern this request.
Separate from the CDBG-DR Infrastructure total of $317M available, Action Plan Amendment 2 was issued by HCD which identified an additional $30M to be allocated to the Town of Paradise for the Paradise Sewer Project design phase.
Combined, the Town is tasked with administering a total $229,592,735.75 (inclusive of the Paradise Sewer Project Design phase funding), in a long-term partnership with California Housing & Community Development to create generational change in a stronger, more resilient Paradise. 56 Paradise CDBG-DR Infrastructure Action Plan 26-0113
Amendment 4, Page 13
10. CDBG-DR Resilient Infrastructure Program (MIT-RIP)
In parallel to the CDBG-DR Infrastructure Program, the U.S. Department of Housing and Urban Development (HUD) allocated Community Development Block Grant – Mitigation (CDBG-MIT) funds to the State of California to address current and future risks in areas impacted by the 2018 federally declared disasters (DR-4382 and DR-4407). In response, the California Department of Housing and Community Development (HCD) established the Mitigation – Resilience Infrastructure Program (MITRIP) to support projects that reduce risks to life and property, strengthen the resilience of public infrastructure, and lessen the impacts of future natural disasters.
The MIT-RIP program is intended to complement and expand upon CDBG-DR investments by funding infrastructure improvements and mitigation strategies that address long-term vulnerabilities, with particular emphasis on high-risk wildfire communities such as the Town of Paradise. Eligible projects must demonstrate a clear mitigation nexus, reduce community-wide hazard risk, and support continued housing recovery and future development by making critical facilities and systems more resilient.
As a Most Impacted and Distressed (MID) community and a jurisdiction with significant documented wildfire risk, the Town of Paradise is eligible for a substantial portion of statewide MIT-RIP resources.
MIT-RIP funds must meet all federal CDBG-MIT requirements, including the advancement of mitigation measures, compliance with HUD national objectives for mitigation, and adherence to environmental, procurement, labor, accessibility, and cross-cutting federal requirements.
11. CDBG-DR MIT-RIP Program Activities
The MIT-RIP Program funds infrastructure projects that directly reduce risks to residents, property, and essential community functions. The program is focused on mitigating future hazards—particularly wildfire, flooding, and infrastructure system failures—through long-term, forward-looking investments.
MIT-RIP supports the following categories of eligible activities:
1. Mitigation Infrastructure Improvements
Projects that harden or upgrade public infrastructure to withstand future disasters, including but not limited to:
• Roadway and evacuation improvements that reduce bottlenecks and increase evacuation capacity.
• Fire-resistant or ignition-resistant infrastructure components. • Undergrounding or hardening of utilities serving residential areas. • Stormwater or drainage improvements that mitigate flooding or erosion risk. • Redundancy and resiliency upgrades to critical lifeline systems.
2. Multi-Benefit Community Mitigation Investments
• Activities that protect public facilities and residential areas by reducing hazard exposure through multi-benefit approaches such as:
• Wildfire risk reduction in public rights-of-way and critical access corridors. • Fuel modification and vegetation management that increase defensible space along evacuation routes.
• Construction of safe, accessible pathways that provide emergency ingress/egress and reduce conflicts during evacuation events.
3. Planning, Engineering, and Pre-Construction Activities MIT-RIP funds may be used for activities necessary to advance a mitigation project to 57 Paradise CDBG-DR Infrastructure Action Plan 26-0113
Amendment 4, Page 14
construction, such as:
• Environmental review
• Geotechnical studies
• Engineering design
• Right-of-way acquisitions
• Permitting, hydrologic studies, and project development
4. Stand-Alone Mitigation Projects
MIT-RIP supports standalone mitigation projects that do not rely on federal match requirements. These projects must:
• Demonstrate strong mitigation outcomes;
• Reduce specific, identified community hazards;
• Support long-term housing recovery in Paradise; and
• Provide measurable, durable risk reduction.
12. Town of Paradise CDBG-DR MIT-RIP Allocation
The Town of Paradise has been awarded $10,273,223.87 in CDBG-DR MIT-RIP funding to support longterm wildfire and hazard-mitigation infrastructure improvements. This allocation was determined following HCD’s assessment of the Town’s mitigation needs, project readiness, documented wildfire risk, and alignment with the State’s approved CDBG-MIT Action Plan.
MIT-RIP funding represents a critical complement to the Town’s existing CDBG-DR Infrastructure allocation. While CDBG-DR funds address unmet recovery needs tied to the 2018 disasters, MIT-RIP funds focus on preventing or reducing the scale of future disaster impacts. Together, these funding streams support a holistic approach to rebuilding Paradise as a safer, more resilient community.
In March of 2024, Paradise Town Council adopted a resolution in support of submission of three CDBGDR MIT-RIP Projects to be delivered, summarized below:
1. Evacuation Route Permanent Changeable Message Signs
Amount: $5,400,000
Description: This project would install roadside message signs (smaller scale versions of State highway signs) which could be activated in the event of an emergency. A primary objective would be the installation of two signs per evacuation route (Skyway, Neal, Clark and Pentz).
These signs could read “ONE-WAY EVACUATION ACTIVE, USE ALL LANES” for outgoing traffic, while at the same time reading “ROAD CLOSED AHEAD, EVACATION TRAFFIC ONLY” for the ending control point along the same routes.
2. Private Road Identification Safety Project
Amount: $963,953
Description: This project would inventory and standardize private road street name signs which intersect public roads. The intent would be to increase uniformity for daily emergency first responders.
3. Storm Drain Resiliency Project Phase 1
Amount: $3,909,270
Description: This grouping of projects includes the implementation of recommendations from the Town’s 2022 Storm Drain Master Plan. Projects include new storm drain systems and upsizing of existing storm drain infrastructure to meet the new demands and increased flows observed.
58 Paradise CDBG-DR Infrastructure Action Plan 26-0113
Amendment 4, Page 15
In November 2025, HCD Announced that the Town’s Storm Drain Resiliency Project Phase 2 was preliminarily awarded, listed below:
4. Storm Drain Resiliency Project Phase 2
Amount: $8,668,086.50
Description: This second grouping of projects includes the implementation of recommendations from the Town’s 2022 Storm Drain Master Plan. Projects include new storm drain systems and upsizing of existing storm drain infrastructure to meet the new demands and increased flows observed.
In December 2025, Paradise Town Council directed the reallocation of all MIT-RIP funds originally assigned to the Evacuation Route Permanent Changeable Message Sign Project to the Storm Drain Resiliency Project Phase 1. This action reflects the Town’s adaptive mitigation strategy and recognition that post-fire stormwater impacts pose an immediate and escalating risk to public safety, roadway integrity, and housing recovery. This reallocation is consistent with HCD guidance allowing jurisdictions to adjust project priorities through Action Plan amendments when supported by documented community need and governing body action. Below is a proposed final summary of the Town’s intended use of CDBG-DR MIT-RIP Funds:
1. Private Road Identification Safety Project - $963,953
2. Storm Drain Resiliency Project Phase 1 - $9,309,271
3. Storm Drain Resiliency Project Phase 2 - $8,668,086.50
13. Supplemental CDBG-DR Infrastructure Allocation
In December 2025, HCD issued a Notice of Intent indicating that the State intends to amend the 2018 CDBG-DR Action Plan to include a supplemental allocation to the CDBG-DR Infrastructure Program. As part of this amendment, approximately $13.5 million in additional CDBG-DR Infrastructure funding is anticipated to be made available to the Town of Paradise through a subsequent application and amendment process, subject to approval by HUD.
The proposed supplemental allocation reflects the State’s ongoing evaluation of unmet disaster recovery needs, cost escalation experienced by local jurisdictions, and the Town of Paradise’s demonstrated capacity to administer large-scale infrastructure recovery projects tied to the 2018 Camp Fire. If approved by HUD, the additional funding would be incorporated into the Town’s existing Master Standard Agreement for the 2018 CDBG-DR Infrastructure Program through a formal amendment and would require Town Council approval of an updated authorizing resolution, budget, and scope of work.
The Town intends to program any approved supplemental CDBG-DR Infrastructure funding toward the Paradise Sewer Project, a foundational recovery investment that directly supports the restoration of housing, enables higher-density and affordable residential development, and advances long-term public health and environmental objectives. Expansion of sewer infrastructure remains one of the most critical unmet recovery needs stemming from the 2018 Camp Fire and is central to both the Town’s and HCD’s shared objectives of accelerating housing recovery, improving community resiliency, and ensuring that displaced residents have the opportunity to return and rebuild. Allocation of the supplemental funds to the Paradise Sewer Project would further strengthen the Town’s capacity to deliver a generational infrastructure investment with broad community-wide benefits. 59 Paradise CDBG-DR Infrastructure Action Plan 26-0113
Amendment 4, Page 16
Inclusion of this supplemental allocation within Action Plan Amendment 4 is intended to provide transparency regarding potential future funding availability and to position the Town to expeditiously advance eligible infrastructure projects upon final State and HUD approval. Programming of these supplemental funds will be subject to completion of all applicable environmental review, eligibility determinations, and HUD authorization prior to obligation or expenditure.
14. Town of Paradise Project Grant List
Critically, the Town will define the budget allocations to implement specific projects which meet the objectives and priorities of the CDBG-DR programs and community by:
• Stabilizing the Town’s Fiscal Sustainability Plan through the allocation of eligible Disaster Recovery and Mitigation projects with previously unfunded match requirements. • Implement a diverse array of infrastructure projects identified through the extensive planning of the 2019 Community Long-Term Recovery Plan, 2020 Transportation Master Plan, and 2022 Storm Drain Master Plan.
The Long Term Recovery Plan, Transportation Master Plan, and Storm Drain Master Plan priorities have been incorporated into a CDBG-DR Project Grant List which fully utilizes the Town’s allocations. The Project Priorities, Titles, Types, National Objectives, Total Costs and CDBG-DR Grant Amounts are provided on the following page:
60 Paradise CDBG-DR Infrastructure Action Plan 26-0113
Amendment 4, Page 17
CDBG-DR Project Grant List 26-0113
Priority Project Title Project Type National
Objective
Total Project
Cost
CDBG-DR
INFRA Grant
Amount
(APA4)
CDBG-DR
MIT-RIP
Grant
Amount
(APA4)
INFRA 1 Paradise Sewer Project - Phase 1 (Construction)* New Infrastructure Project UN $144,500,000 $85,200,000 $0 INFRA 1 Paradise Sewer Project (Design APA-2) New Infrastructure Project UN $30,000,000 $30,000,000 $0 INFRA 2 Roe Road Phase 1A (Edgewood to S Libby) New Infrastructure Project LMI $9,297,900 $7,497,900 $0 INFRA 2 Roe Road Phase 2 (S Libby to Clark) New Infrastructure Project LMI $61,000,000 $28,000,000 $0 INFRA 3 Pentz Road Widening (Pearson to Skyway) New Infrastructure Project UN $28,518,100 $28,518,100 $0 INFRA 3 Skyway/Pentz Intersection Improvements New Infrastructure Project UN $5,000,000 $5,000,000 $0 INFRA 3 Pentz Pathway Project Phase II (Pearson to Skyway) New Infrastructure Project UN $25,000,000 $2,191,000 $0 INFRA 4 Upper Skyway Widening (Bille to Wagstaff) New Infrastructure Project UN $17,500,000 $17,500,000 $0 INFRA 4 Skyway Connectivity Project (Bille to Wagstaff) New Infrastructure Project UN $13,500,000 $6,796,000 $0 INFRA 5 Paradise ATP Gateway Project (Neal Road Class I) New Infrastructure Project UN $18,398,000 $5,500,000 $0 INFRA 6 Oliver Curve Pathway (Skyway to Valley View) New Infrastructure Project UN $14,000,000 $1,250,000 $0 Match 1 On-System Road Rehabilitation Match - FHWA ER UN/LMI* $56,517,998 $13,800,000 $0 Match 2 Off-System Road Rehabilitation Match - FEMA PA UN/LMI* $45,927,099 $10,030,224 $0 Match 3 Early Warning System Match - FEMA HMGP UN/LMI* $3,026,875 $756,719 $0 Match 4 Hazardous Fuel Reduction Program Match - FEMA HMGP UN $1,706,460 $406,468 $0 Match 5 Neal Road Rehabilitation Match - FHWA ER UN $1,838,223 $549,190 $0 Match 6 On-System Culvert Replacement Match - FHWA ER UN $931,273 $26,705 $0 Match 7 On-System Hardscape Replacement Match - FHWA ER UN $783,326 $22,461 $0 Match 8 Off-System Culvert Repair Match - FEMA PA UN $664,643 $41,540 $0 Match 9 On-System Sign Replacement Match - FHWA ER UN $224,158 $6,428 $0 MIT 1 Private Road Identification Safety Project New Infrastructure Project UN $963,953 $0 $963,953 MIT 2 Storm Drain Resiliency Project New Infrastructure Project UN MIT 3 Storm Drain Resiliency Project Phase 2 New Infrastructure Project UN $9,309,271 $0 $9,309,271
$8,668,086 $0 $8,668,086
$497,275,365 $243,092,735 $18,941,310
61 Paradise CDBG-DR Infrastructure Action Plan 26-0113
Amendment 4, Page 18
Key components and statistics of the proposed use of the overall allocation are specified below:
- Previously Unfunded Match Requirements: $25,639,735 in funding dedicated to fulfilling existing match requirements, including road rehabilitation and early warning system. - New Standalone Infrastructure Projects: $231,253,000 in funding dedicated to constructing new, standalone infrastructure projects.
- National Objective, Low Moderate Income: $35,497,900 in funding qualifies towards Low Moderate Income eligible projects.
- National Objective, Urgent Need: $214,249,202 in funding qualifies towards Urgent Need eligible projects.
- National Objective, Urgent Need/Low Moderate Income*: $24,586,943 in funding is dedicated to projects which have town-wide service areas, including areas which qualify as Low Moderate Income.
- Paradise Long Term Recovery Plan Project Statistics: Below is a breakdown of the overall allocation’s use divided by the Town’s Long Term Recovery Plan Categories o Evacuation Routes: $ 71,954,087
o Sewer System: $ 65,000,000
o Missing Road Segments: $ 72,950,000
o Interconnected Path System: $ 14,987,000
o Emergency Notification System: $ 756,719
o Fuels Management: $ 406,468
o Walkable Downtown: $ 22,461
o Mitigation: $18,941,310
- Paradise Sewer Project: $115,200,000 in dedicated funding. HCD allocation of $30,000,000 for the design phase of the project and an additional $85,200,000 is recommended from the overall Town allocation to be used towards the construction of the project. - Overall Allocation Leverage: The Town of Paradise’s total $262,034,045 is proposed to leverage a total of $497,275,365 combined from at least seven separate funding sources.
An overall Project Location Map can be found on the next page.
The recommended projects represent the highest and best use of the CDBG-DR investment while establishing a critical network of projects, when taken globally, will transform Paradise for the next 100 years and more.
62 Pentz Rd
Widening &
Pathway
Roe Rd
Extension
Phase 2*
Neal Rd
Pathway
Oliver Curve
Pathway
Phase 1**
Skyway
Widening
and Pathway
Skyway/Pentz
Signal
Paradise Sewer Project
Private Rd Street Signs Project
Storm Drain Resiliency Phase 1
Storm Drain Resiliency Phase 2
Road Rehabilitation Projects
Hazard Mitigation Match Projects
FEMA Match Projects
FHWA Match Projects
CDBG-DR Action Plan
Existing Projects
INFRA & MIT-RIP
Project Location
*Alignment to be determined, brackets show only project start and end LEGEND
Roe Rd
Extension
Phase 1A*
** Oliver Curve Project is not fully funded.
63 Paradise CDBG-DR Infrastructure Action Plan 26-0113
Amendment 4, Page 20
A summary table of changes between Action Plan Amendment 3 and Action Plan Amendment 4 is shown below:
CDBG-DR Project Grant Amount Changes
Priority Project Title
APA-3
CDBG-DR
INFRA/MIT
Amount
APA-4
CDBG-DR
INFRA/MIT
Amount
Net Change
APA-3 to APA4 Notes
INFRA 1 Paradise Sewer Project (Design) $30,000,000 $30,000,000 $0 No Change INFRA 1 Paradise Sewer Project
(Construction) $35,000,000 $85,200,000 +$50,200,000 Increased Budget Allocation INFRA 2 Roe Road Phase 1A (Edgewood to S
Libby) $20,200,000 $7,497,900 -$12,702,100 Scope Change INFRA 2 Roe Road Phase 2 $52,000,000 $28,000,000 -$24,000,000 Scope Change INFRA 3 Pentz Road Widening (Pearson to
Skyway) $26,000,000 $28,518,100 +$2,518,000 Added PID Suballocation INFRA 3 Skyway/Pentz Intersection
Improvements $5,000,000 $5,000,000 $0 No Change
INFRA 3 Pentz Pathway Project Phase II $2,191,000 $2,191,000 $0 No Change INFRA 4 Upper Skyway Widening (Bille to
Wagstaff) $16,500,000 $17,500,000 +$1,000,000 Added PID Suballocation INFRA 4 Skyway Connectivity Project (Bille
to Wagstaff) $6,796,000 $6,796,000 $0 No Change
INFRA 5 Paradise ATP Gateway Project (Neal
Road Class I) $5,500,000 $5,500,000 $0 No Change
INFRA 6 Oliver Curve Pathway (Skyway to
Valley View) $1,250,000 $1,250,000 $0 No Change
Match 1 On-System Road Rehabilitation $13,800,000 $13,800,000 $0 No Change Match 2 Off-System Road Rehabilitation $10,030,224 $10,030,224 $0 No Change Match 3 Early Warning System $756,719 $756,719 $0 No Change Match 4 Hazardous Fuel Reduction Program $406,468 $406,468 $0 No Change Match 5 Neal Road Rehabilitation $549,190 $549,190 $0 No Change Match 6 On-System Culvert Replacement $26,705 $26,705 $0 No Change Match 7 On-System Hardscape Replacement $22,461 $22,461 $0 No Change Match 8 Off-System Culvert Repair $41,540 $41,540 $0 No Change Match 9 On-System Sign Replacement $6,428 $6,428 $0 No Change MIT 1 Private Road Identification Safety
Project $0 $963,953 +$963,953 New Award/Allocation
MIT 2 Storm Drain Resiliency Project $0 $9,309,271 +$9,309,271 New Award/Allocation MIT 3 Storm Drain Resiliency Project
Phase 2 $0 $8,668,086 +$8,668,086 New Award/Allocation
64 Paradise CDBG-DR Infrastructure Action Plan 26-0113
Amendment 4, Page 21
15. Project Schedule Forecast
For the Recommended Project List, staff created a potential schedule of implementation and deliver, forecasting work to continue through 2029 on major efforts, with some projects minor projects reaching closeout in 2025. The Project Schedule Forecast is shown on the next page. 65 Paradise CDBG-DR Infrastructure Action Plan 26-0113
Amendment 4, Page 22
CDBG-DR Project Grant List 26-0113 Schedule
Priority Project Title
Estimated
Environmental
Review
Completion
Estimated Design
& ROW
Completion
Estimated
Construction
Completion
INFRA 1 Paradise Sewer Project - Phase 1 (Construction)* 2026 2027 2029 INFRA 1 Paradise Sewer Project (Design APA-2) 2026 2026 N/A INFRA 2 Roe Road Phase 1A (Edgewood to S Libby) 2026 2027 2029 INFRA 2 Roe Road Phase 2 (S Libby to Clark) 2026 2027 2029 INFRA 3 Pentz Road Widening (Pearson to Skyway) 2026 2026 2028 INFRA 3 Skyway/Pentz Intersection Improvements 2026 2026 2026 INFRA 3 Pentz Pathway Project Phase II (Pearson to Skyway) Complete 2026 2027 INFRA 4 Upper Skyway Widening (Bille to Wagstaff) N/A N/A 2027 INFRA 4 Skyway Connectivity Project (Bille to Wagstaff) 2026 2026 2027 INFRA 5 Paradise ATP Gateway Project (Neal Road Class I) 2026 2026 2027 INFRA 6 Oliver Curve Pathway (Skyway to Valley View) 2026 2026 2028 Match 1 On-System Road Rehabilitation Complete Complete 2027 Match 2 Off-System Road Rehabilitation Complete Complete 2027 Match 3 Early Warning System Complete Complete 2025
Match 4 Hazardous Fuel Reduction Program Complete 2024 2027 Match 5 Neal Road Rehabilitation Complete Complete 2027 Match 6 On-System Culvert Replacement Complete Complete Complete Match 7 On-System Hardscape Replacement Complete Complete Complete Match 8 Off-System Culvert Repair Complete Complete Complete Match 9 On-System Sign Replacement Complete Complete Complete MIT 1 Private Road Identification Safety Project 2026 2026 2027 MIT 2 Storm Drain Resiliency Project 2027 2028 2029
MIT 3 Storm Drain Resiliency Project Phase 2 2027 2028 2029 66 Paradise CDBG-DR Infrastructure Action Plan 26-0113
Amendment 4, Page 23
16. Issues to Watch
a. Oliver Curve Pathway
Through the process of developing Action Plan Amendment 3, Paradise Town Council made recommendations to fully fund a revised priority list of projects which accounts for increased costs observed and estimated through 2028 and beyond. Council expressed a desire to advance a phased version of the Oliver Curve Pathway Project with a reduced scope of Skyway to Valley View Drive (area of highest safety concern). The limited funding for the Oliver Curve project will extend to completing preconstruction development work including environmental, design and right of way as possible. In the time the Oliver Curve Project is advancing forward, fully funded projects will also develop further and allow for a broader review of revised corresponding Engineer’s Estimates. In the best case, the Oliver Curve Project will be able to move to fully funded in a future Action Plan Amendment if current estimates are higher than needed and leave available budget for transfer. At a minimum however, the Oliver Curve Project will move forward through design and allow for the Town to increase its ability to secure grant funds through other sources.
67 Town of Paradise
Council Agenda Summary
Date: January 13, 2026
Agenda Item: 6(b)
ORIGINATED BY: Colin Nelson, Capital Projects Manager
REVIEWED BY: Marc Mattox, Director of Public Works
SUBJECT: Paradise Sewer Project: Collection System Design Contract
LONG TERM
RECOVERY PLAN:
Yes – Tier 1, Sewer
COUNCIL ACTION REQUESTED:
1. Consider Concurring with Staff’s recommendation to accept the amended and re-stated (formerly PDB contract) Professional Services Agreement with Carollo Engineers to complete design of the Paradise Sewer Project Collection System with a not to exceed amount of $4.5M.
2. Delegate authority to the Town Manager to approve individual task orders under the new Professional Services Agreement so long as they stay under authorized NTE; and,
3. Adopt Resolution No. 2026-___ “A Resolution of the Town Council of the Town of Paradise to Concur with the Paradise Sewer Project Ad Hoc Committee’s Recommendation to Keep Carollo Engineers as the Designer for the Phase One Reduced Collection System and Enter into a Contract with them for the Remaining Design Work Related to this Scope of Work.” (ROLL CALL VOTE)
Background:
Since its incorporation in 1979, the Town has sought a formal wastewater treatment solution for the community, with
service for commercial and densely populated residential areas being a priority. Failed and failing septic systems create public health and environmental concerns and have limited economic growth. The Town has prepared numerous studies to address its need for a centralized wastewater treatment solution – focusing on areas of highest risk to environmental degradation associated with commercial and multi-family housing. The most recent proposed sewer service area
included about 1,500 parcels, mostly along the Town’s
commercial and evacuation corridors, shown in dark orange (right).
Since the 2018 Camp Fire, which destroyed nearly 19,000 structures and displaced most of the Town’s population, Paradise has faced the monumental task of rebuilding a safer, more resilient community. A key barrier to recovery has been the lack of a centralized sewer system, limiting the return of businesses and multi-family housing in key areas. The Paradise Sewer Project is now seen as essential infrastructure, not only to meet modern environmental standards and 68 protect groundwater, but also to unlock long-term housing and economic recovery for the entire community.
To this end in 2022, the Town of Paradise secured $30 million for pre-construction phases of work (environmental, design, right of way, and permitting) through Community Development Block Grant Disaster Recovery Planning funds to facilitate the design phase of the Paradise Sewer Project. To augment staff capacity and bring necessary technical expertise, the Town of Paradise hired HDR to serve as their Owner’s Agent in the pursuit of a full project delivery team for design and construction. The intent of this work was to continue delivery of the regional approach to the project, constructing a full collection system for 1,500 parcels in Paradise and exporting the wastewater to the City of Chico’s Water Pollution Control Plant.
On December 10, 2024, staff provided an update to the Town Council which shared a brief project and project cost history. Due to the complexities associated with building a ground-up utility in the lens of a recovering population base amongst historical cost increases, a revised project approach needed to be taken. Council and community feedback informed staff that the project remained critical to our recovery from the 2018 Camp Fire and that many businesses and residents are relying on its imminent completion.
On January 21, 2025, Paradise Town Council provided staff direction on project next steps to commence efforts to modify the Project Description for the Paradise Sewer Project from a regional connection to the City of Chico to a potential local treatment plant option. Further direction was provided to analyze potential alternatives for a phased project approach to reach the full intended Sewer Service Area.
Staff provided a presentation at a Special Town Council Meeting on July 24, 2025, and reviewed a list of sewer system alternatives with preliminary evaluation results. A second Special Meeting was held on August 14, 2025, where the alternative listed below was selected, and direction was given to begin work on procurement of a design team for the new Paradise Wastewater Treatment Facility.
Alternative 1: Hybrid gravity/low-pressure collection system, aerated lagoon wastewater treatment, and percolation/evaporation pond effluent discharge. A hybrid gravity and low-pressure (STEP) sewer collections system would include gravity trunk mains following primary conveyance corridors and low-elevation areas or properties connected to the primary gravity trunk mains via low-pressure service Wastewater treatment using a series of aerated lagoons followed by a nitrification/denitrification process unit
Treated effluent discharged to percolation/evaporation pond(s) for land discharge, regulated by a Waste Discharge Regulation (WDR) permit
At the September 9, 2025, Town Council Meeting, staff brought forth a recommendation for the Town of Paradise to take assignment of the Carollo sub-contract and convert the project to a traditional design-bid-build delivery model while maintaining Carollo as the project designer for the reduced collection system. Using a traditional design-bid-build framework provides the best balance of continuity, efficiency, and transparency. This approach ensures public bidding for the reduced Phase 1 project while preserving the technical expertise already gained by the design team. A recommendation was also made to delegate authority to the Town Attorney and Interim 69 Town Manager to take assignment of the Carollo sub-contract and approve any task orders or amendments going forward.
Direction was then given by Council to terminate the existing Progressive Design Build Contract (PDB) that included Mountain Cascade Inc (Contractor) and Carollo Engineers (Designer), and for The Town of Paradise to assume the design sub-contract with Carollo Engineers per section
12.6(A) and section 12.7(A) of the PDB Contract.
Section 12.6(A): Convenience Termination Right and Payment. The Town shall have the right at any time following the Contract Date, exercisable in its discretion for any reason (including the failure to agree to a GMP Amendment) upon 30 days’ written notice to the Design-Builder, to terminate this Design-Build Contract.
Section 12.7(A): Upon any termination of the Design-Builder’s right to perform this Design-Build Contract, the Design-Builder shall, as applicable and subject to any written directions provided by the Town: . . . (11) [a]ssign to the Town any Subcontract for the design and engineering of the Project that the Town elects in writing, in its discretion, to have assigned to it, with the Town assuming, and the Design-Builder being relieved of, all obligations under the Subcontract from the date of the assignment.
On September 11th 2025, a 30-day notice was given to Mountain Cascade Inc (MCI) that the Town was terminating the existing Progressive Design Build contract and requesting reassignment of the Carollo Engineers design sub-contract to the Town of Paradise. Since then, town Staff and its Owners Agent have worked with Carollo to establish a scope, schedule and cost to complete design of the reduced collection system and tie into a local wastewater treatment plant.
Analysis:
Due to the changes in project scope that have been made to align the project with available funding and public input, Staff feels it is more logical for the project to proceed with a design- bidbuild delivery method. This will allow local contractors to bid on the construction work and give the Town more direct control over the design process. At the time that direction was given to terminate the PDB contract, we did not yet have a scope, schedule and fee for the remaining work that needed to take place in order finish the collection system design, but staff made a commitment to Town Council to return once these terms had been agreed to. In the time since MCI was removed from the project, town staff and it’s Owners Agent (HDR) have been working with Carollo Engineers to determine a scope of work that includes incorporating the changes brought forth in the alternative’s analysis as well as the remaining work required to finish the reduced collection system design and tie into a new local Wastewater Treatment Facility. This new scope of work is contained within the Professional Services Agreement for On-Call Engineering Services-Paradise Sewer Project (collection system) which is an amended and restated version of the original PDB Contract.
Financial Impact:
The Town of Paradise is currently utilizing a $30M planning grant through State of California Housing and Community Development via the CDBG-DR Program. A breakdown of overall project funding and pursuits is provided below:
70 Design Budget
HDR- Owners Agent MSA $ 5,000,000
HDR- Amendment to Current MSA
(Owners Agent)
$ 4,500,000
Carollo- New Wastewater Treatment
Facility Design Contract
$ 3,400,000
Carollo- Re-Assigned Collection
System Design Contract
$ 4,500,000
Mountain Cascade Inc- PDB
Contract
$ 3,821,770
Hawkins Delafield and Wood- Legal
Council
$ 620,000
Staff Time $ 687,699
Total $ 22,529,469
Secured Funding
(1) CDBG-DR APA-2 Design $30,000,000 (active for pre-construction) (2) CDBG-DR Town Allocation $85,200,000 (secured for construction) (3) EPA Community Grant $1,750,000 (pending)
Clean Water SRF Funding Opportunities
(4) Clean Water SRF (Grant) $28,097,669
(5) Clean Water SRF (Grant) $TBD Future
71 1
TOWN OF PARADISE
RESOLUTION NO. 2026-__
A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF PARADISE TO CONCUR WITH THE PARADISE SEWER PROJECT AD HOC COMMITTEE’S
RECOMMENDATION TO KEEP CAROLLO ENGINEERS AS THE DESIGNER FOR
THE PHASE ONE REDUCED COLLECTION SYSTEM AND ENTER INTO A
CONTRACT WITH THEM FOR THE REMAINING DESIGN WORK RELATED TO THIS SCOPE OF WORK.
WHEREAS, the 2018 Camp Fire caused unprecedented damage to the Town of Paradise and has necessitated a variety of recovery projects which are further guided by Paradise Community Long-Term Recovery Plan; and,
WHEREAS, the Paradise Sewer Project is by far the largest project in scale, cost and overall benefit to the community; and,
WHEREAS, a Paradise Sewer Project Ad Hoc Committee was established to conduct an analysis of project alternatives and recommend a revised project description which is fundable, permittable, scalable and supported by the community; and, WHEREAS, three project alternatives were recommended for further analysis and a singular option was selected as the new whole project alternative; and, WHEREAS, the selected option is :
Alternative 1:
1. Hybrid Gravity/Low-Pressure Collection System, Aerated Lagoon Wastewater Treatment, and Percolation/Evaporation Pond Effluent Discharge.
2. A hybrid gravity and low-pressure (STEP) sewer collections system would include gravity trunk mains following primary conveyance corridors and lowelevation areas or properties connected to the primary gravity truck mains via lowpressure service.
3. Wastewater treatment using a series of aerated lagoons followed by a nitrification/denitrification process unit.
4. Treated effluent discharged to percolation/evaporation pond(s) for land discharge, regulated by a waste discharge regulation (WDR) permit.
WHEREAS, On September 9th 2025, Town Council gave staff direction to offramp the Progressive Design Build contractor and amend the (PDB) contract so that the Collection System Design sub-contract with Carollo Engineers can be managed directly by Town Staff and convert the project to a Design-Bid-Build delivery model; and, WHEREAS, The original Progressive Design Build Contract has been amended and Re-Stated and approved by all parties, to allow for the Town of Paradise to manage Carollo Engineers directly; and,
72 2
WHEREAS, The amended and restated contract has a not to exceed amount of $4.5M, and expires December 31, 2029, and covers Design Services for the phase 1 reduced collection system up until start of construction.
NOW, THEREFORE, BE IT RESOLVED, by the Town Council of the Town of Paradise as follows:
Section 1. Approve the Collection System Design Contract with Carollo Engineers which is an amended and re-stated version of the original Progressive Design Build Contract, for the total aggregate amount of $4.5M and;
Section 2. delegate authority to the Interim Town Manager and Town Attorney to approve any resultant task orders and amendments as long as they do not exceed the total amount of $4.5M.
PASSED AND ADOPTED by the Town Council of the Town of Paradise on this 13th day of January, 2026, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
By:
Steve Crowder, Mayor
ATTEST:
Melanie Elvis, Town Clerk
APPROVED AS TO FORM:
Scott E. Huber, Town Attorney
73 Town of Paradise
Council Agenda Summary
Date: January 13, 2026
Agenda Item: 6(c)
ORIGINATED BY: Colin Nelson, Capital Projects Manager
REVIEWED BY: Marc Mattox, Public Works Director/Town Engineer SUBJECT: Paradise Sewer Project: Amendment to HDR Master Services Agreement.
LONG TERM
RECOVERY PLAN:
Yes – Tier 1, Sewer
COUNCIL ACTION REQUESTED:
1. Consider Concurring with staff’s recommendation to increase the overall amount of the HDR Master Services Agreement from $5M to $9.5M for Owner’s Agent services through the start of construction of the Paradise Sewer Project and extend the expiration date of the MSA to December 31, 2029; and,
2. Delegate authority to the Town Manager to approve individual task orders under the Master Services Agreement as long as they stay under the total dollar amount of the MSA and with concurrence of the Paradise Sewer Project Ad Hoc Committee; and,
3. Adopt Resolution No. 2026-___ “A Resolution of the Town Council of the Town of Paradise to Concur with the Paradise Sewer Project Ad Hoc Committee’s Recommendation to Approve an Amendment to the Existing Master Services Agreement with HDR that Includes a $4.5M Increase to the Existing Not-To-Exceed Amount and a Time Extension to December 31, 2029.” (ROLL CALL VOTE) Background:
Since its incorporation in 1979, the Town has sought a formal wastewater treatment solution for the community, with
service for commercial and densely populated residential areas being a priority. Failed and failing septic systems create public health and environmental concerns and have limited economic growth. The Town has prepared numerous studies to address its need for a centralized wastewater treatment solution – focusing on areas of highest risk to environmental degradation associated with commercial and multi-family housing. The most recent proposed sewer service area
included about 1,500 parcels, mostly along the Town’s
commercial and evacuation corridors, shown in dark orange (right).
Since the 2018 Camp Fire, which destroyed nearly 19,000 structures and displaced most of the Town’s population, Paradise has faced the monumental task of rebuilding a safer, more resilient community. A key barrier to recovery has been the lack of a centralized sewer system, limiting the return of businesses and multi-family housing in key areas. The Paradise Sewer Project is 74 now seen as essential infrastructure, not only to meet modern environmental standards and protect groundwater, but also to unlock long-term housing and economic recovery for the entire community.
To this end in 2022, the Town of Paradise secured $30 million for pre-construction phases of work (environmental, design, right of way, and permitting) through Community Development Block Grant Disaster Recovery Planning funds to facilitate the design phase of the Paradise Sewer Project. To augment staff capacity and bring necessary technical expertise, the Town of Paradise hired HDR to serve as their Owner’s Agent in the pursuit of a full project delivery team for design and construction. The intent of this work was to continue delivery of the regional approach to the project, constructing a full collection system for 1,500 parcels in Paradise and exporting the wastewater to the City of Chico’s Water Pollution Control Plant.
On December 10, 2024, staff provided an update to the Town Council which shared a brief project and project cost history. Due to the complexities associated with building a ground-up utility in the lens of a recovering population base amongst historical cost increases, a revised project approach needed to be taken. Council and community feedback informed staff that the project remained critical to our recovery from the 2018 Camp Fire and that many businesses and residents are relying on its imminent completion.
On January 21, 2025, Paradise Town Council provided staff direction on project next steps to commence efforts to modify the Project Description for the Paradise Sewer Project from a regional connection to the City of Chico to a potential local treatment plant option. Further direction was provided to analyze potential alternatives for a phased project approach to reach the full intended Sewer Service Area.
Staff provided a presentation at a Special Town Council Meeting on July 24, 2025, and reviewed a list of sewer system alternatives with preliminary evaluation results. A second Special Meeting was held on August 14, 2025, where the alternative listed below was selected, and direction was given to begin work on procurement of a design team for the new Paradise Wastewater Treatment Facility.
Alternative 1: Hybrid gravity/low-pressure collection system, aerated lagoon wastewater treatment, and percolation/evaporation pond effluent discharge. A hybrid gravity and low-pressure (STEP) sewer collections system would include gravity trunk mains following primary conveyance corridors and low-elevation areas or properties connected to the primary gravity trunk mains via low-pressure service Wastewater treatment using a series of aerated lagoons followed by a nitrification/denitrification process unit
Treated effluent discharged to percolation/evaporation pond(s) for land discharge, regulated by a Waste Discharge Regulation (WDR) permit
At the November 11, 2025, Town Council meeting, staff brought forth a recommendation to select Carollo Engineers to be the design engineer of the new Westwater Treatment Facility. Carollo Engineers will also continue as the design engineer for the collection system.
In addition to Carollo Engineers who will be designing the WWTF and the sewer collection system, HDR is continuing as the Town’s Owners’ Agent for the Paradise Sewer Project. For HDR to provide services up until start of construction, an amendment to their existing Master Services 75 Agreement is required since the existing MSA is set to expire December 31, 2025, and the initial $5M Not to Exceed has been exhausted.
Analysis:
The existing Owners Agent (Master Services Agreement) contract with HDR was contemplated for a 2.5-year period and an initial Not to Exceed amount of $5M. The MSA currently has two active task orders, one for Design Phase Support and one for Environmental Permitting Services.
Due to the changes in the project, and the transition to a local treatment option, the project scope and schedule have changed significantly since 2023 when the original Master Services Agreement was approved. This includes filing a Subsequent Environmental Impact Report and the additional support services required to design and implement our own local Wastewater Treatment Facility. The additional time and work involved with the Alternative’s Analysis has depleted the budget in the existing HDR MSA, which expires December 31, 2025. Based on the new project description and the new schedule, HDR has proposed an amendment to the original MSA to cover HDR’s services up until the start of construction. The proposed amendment includes an overall cost increase and a schedule extension to accommodate the new version of the project. The combined increase is $4.5M. Staff recommends approving this budget increase and extending the MSA to expire in December 2029.
Financial Impact:
[The Town of Paradise is currently utilizing a $30M planning grant through State of California Housing and Community Development via the CDBG-DR program. A breakdown of overall project funding and pursuits is provided below:
Design Budget
HDR- Owners Agent MSA $ 5,000,000
HDR- Amendment to Current MSA
(Owners Agent)
$ 4,500,000
Carollo- New Wastewater Treatment
Facility Design Contract
$ 3,400,000
Carollo- Re-Assigned Collection
System Design Contract
$ 4,500,000
Mountain Cascade Inc- PDB
Contract
$ 3,821,770
Hawkins Delafield and Wood- Legal
Council
$ 620,000
Staff Time $ 687,699
Total $ 22,529,469
The cost of the amendment to the HDR Master Services Agreement will fit within the current $30M Design Grant allocation through the Department of Housing and Community Development. 76 Secured Funding
(1) CDBG-DR APA-2 Design $30,000,000 (active for pre-construction) (2) CDBG-DR Town Allocation $85,200,000 (secured for construction) (3) EPA Community Grant $1,750,000 (pending)
Clean Water SRF Funding Opportunities
(4) Clean Water SRF (Grant) $28,097,669
(5) Clean Water SRF (Grant) $TBD Future
77 Town of Paradise
Council Agenda Summary
Date: January 13, 2026
Agenda Item: 6(d)
ORIGINATED BY: Colin Nelson, Capital Projects Manager
REVIEWED BY: Louis Johnson, Supervising Capital Projects Manager
SUBJECT: Hazardous Fuels Reduction Program: Contract Award
LONG TERM
RECOVERY PLAN:
Yes – Tier 1
COUNCIL ACTION REQUESTED:
1. Consider concurring with staff’s recommendation to select Arbor Pros to enter into a one (1) year agreement with up to two (2) one (1) year extensions not to exceed three years to provide vegetation management and hazardous fuels reduction services within the Town of Paradise right-of-way; and:
2. Direct staff to enter negotiations with Arbor Pros to reach and execute a fundingcompliant agreement approved and executed by the Town Manager and Town Attorney; and
3. Adopt Resolution 2026-___ “A Resolution of the Town Council of the Town of Paradise, Designating Authority to the Paradise Town Manager To Execute The Agreement for Professional Services and Individual Task Orders Under the Resultant Master Agreement for RFQ 7315 Hazardous Fuels Reduction Services, up to the Maximum Contract Aggregate Amount of $1.219M” (ROLL CALL VOTE)
Background:
Since the 2018 Camp Fire, the town of Paradise has made an increased effort to control vegetation growth in and along the public rights-of-way throughout town. Due to the increased duties of existing Public Works staff and an increased population of residents, The Town of Paradise is requesting the services of a vegetation and tree management firm that specializes in providing hazardous fuels reduction in public rights-of-way. The average width of right-of-way varies from less than 1.0 feet from back of walk to 11.5 feet from edge of existing pavement within in the Town of Paradise. The Town plans to reduce hazardous fuels along both sides of the 98.48-mile public roads. The total area of treatment is estimated to be 274.55 acres. The Hazardous Fuels Reduction Project (HMGP-4407-255-060) will involve the reduction of hazardous fuels along 99 miles of public roads within the Town limits. Treatment methods will consist of mulching and chipping grasses, bushes, and small trees (less than 6 inches in diameter at chest height) using hand tools and mechanical equipment, followed by the application of herbicides. Root balls will not be removed, and subsurface disturbance is not anticipated. Any retained vegetation will be cut to a minimum height above grade so that near bare soil conditions are achieved. Mechanical equipment may include rubber-tired masticators mounted on excavators, chippers, and mulchers. Access to public right-of-way will be from Town roads, and no new or temporary access routes are needed. On-site staging and stockpiling may occur along road shoulders where vegetation has been cleared. A limited amount of vegetative material may be chipped and broadcast in place. Material that is not broadcast can be taken to the Green Waste Yard operated by Northern Recycling and Waste Services and fees associated 78 with disposal shall be included in items of work mentioned in the Fee Schedule. This project is consistent with previous hazardous tree removal efforts conducted within the Town limits under the FEMA Public Assistance Program.
A Storm Water Pollution Prevention Plan will be prepared by the Contractor and implemented for the project that meets the requirements listed in Appendix E of the RFQ. The Hazardous Fuels Reduction Services contract will be for an initial one (1) year period with up to two (2) oneyear extensions at the Town’s discretion. Proposals were evaluated and ranked by staff. Based upon the rankings, the Town of Paradise will enter into a contract with the highest ranked Contractor.
Analysis:
On December 11, 2025, a total of 6 Statement of Qualifications (SOQ) packages were submitted to the Town. To evaluate the SOQs, an Evaluation Committee was formed. The Committee was comprised of:
Brian Solecki, Project Manager, Recovery and Economic Development Mike Houdek, Public Works Manager
Colin Nelson, Capital Projects Manager
Aggregate ranking amongst the five Committee members is shown below:
Firm Name Total Score Overall Rank
Core Tree 226 4
Northfork Enterprises 248 2
Arbor Pros 288 1
Evergreen Enterprises 162 5
Freedom Forest
Management
125 6
CTL 247 3
Following a debrief, the unanimous recommendation was to select Arbor Pros as the highest ranked firm for Council consideration to award.
Staff recommends approving the selection of Arbor Pros to be the Contractor for the Hazardous Fuels Reduction Program and giving direction to begin negotiating a Master Services Agreement with an NTE of $1.219M to perform hazardous fuels reduction services along 99 Miles of Public Rights Of Way in the Town of Paradise. If awarded, staff would immediately commence negotiations with the selected consultant and report progress to the Town Council on a bi-annual basis. In the event, negotiations are not successful within the initial NTE budget, staff would return to Council for further direction.
Financial Impact:
The funding for this project is secured through a combination of FEMA and CDBG-DR grants. 79 1
TOWN OF PARADISE
RESOLUTION NO. 2026-__
A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF PARADISE,
DESIGNATING AUTHORITY TO THE PARADISE TOWN MANAGER TO EXECUTE
THE AGREEMENT FOR PROFESSIONAL SERVICES AND INDIVIDUAL TASK ORDERS UNDER THE RESULTANT MASTER AGREEMENT FOR RFQ 7315
HAZARDOUS FUELS REDUCTION SERVICES, UP TO THE MAXIMUM CONTRACT AGGREGATE AMOUNT OF $1.219M
WHEREAS, the 2018 Camp Fire caused unprecedented damage to the Town of Paradise and has necessitated a variety of recovery projects which are further guided by Paradise Long-Term Recovery Plan;
WHEREAS, the Hazardous Fuels Reduction Plan is a priority for increasing wildfire preparedness along 99 miles public right of way in the Town of Paradise WHEREAS, RFQ 7315 was designed for a base term of one year, with the possibility of two, one-year extensions at the sole discretion of the Town Manager for a maximum term of three years ;
WHEREAS, RFQ 7315 was designed for a not-to-exceed aggregate contract amount of $1.219M to be issued as individual task orders; WHEREAS, RFQ 7315 was prepared and reviewed under the most stringent of procurement standards, meeting Paradise Municipal Code, State and Federal requirements;
WHEREAS, RFQ 7315 was advertised on November 20, 2025 for work relating to the Town of Paradise Hazardous Fuels Reduction Program that incudes:
The reduction of hazardous fuels along 99 miles of public roads within town limits
Treatment methods consist of mulching and chipping grasses, bushes and small trees less than 6 inches in diameter at chest height. Followed by an application of herbicides
No subsurface disturbance is assumed
Retained vegetation will be cut to a minimum height above grade so that near bare soil conditions are achieved.
Access to public right-of-way would be from town roads so that no new or temporary access routes are needed
A limited amount of vegetation may be chipped and broadcast in place, any excess material will be hauled and disposed of and taken to the Green Waste Yard operated by Northern Recycling and Waste Services. A Storm Water Pollution Prevention Plan will need to be prepared and implemented for the project.
WHEREAS, 6 proposals were received by December 11, 2025, and following subsequent evaluation and interview, Arbor Pros was recommended for the Master Agreement based on the scoring shown below:
80 2
Firm Name Total Score Overall Rank
Core Tree 226 4
Northfork Enterprises 248 2
Arbor Pros 288 1
Evergreen Enterprises 162 5
Freedom Forest
Management
125 6
CTL 247 3
WHEREAS, by designating the Town Manager authority to execute all task orders and amendments associated with RFQ 7315, full benefits of this robust procurement process will be realized.
NOW, THEREFORE, BE IT RESOLVED, by the Town Council of the Town of Paradise as follows:
Section 1. The Paradise Town Manager is authorized to execute a master agreement with the above-recommended Contractor and to execute amendments and individual task orders under the master agreements for RFQ 7315 Hazardous Fuels Reduction Services not to exceed the maximum contract aggregate amount of ($1,219,000) to reduce hazardous fuels in the public right-of-way.
PASSED AND ADOPTED by the Town Council of the Town of Paradise on this 13th day of January, 2026, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
By:
Steve Crowder, Town Mayor
ATTEST:
Melanie Elvis, Town Clerk
APPROVED AS TO FORM:
Scott Huber, Town Attorney
81 Town of Paradise
Council Agenda Summary
Date: January 13, 2026
Agenda Item: 6(e)
ORIGINATED BY: Marc Mattox, Assistant Town Manager
REVIEWED BY: Mike O’Brien, Interim Town Manager
SUBJECT: Review of 2025 Building Division Audit Corrective Action Plan (CAP)
LONG TERM
RECOVERY PLAN:
Yes – Building Codes and Standards
COUNCIL ACTION REQUESTED:
1. Consider approving the Corrective Action Plan for the 2025 Building Division Audit with planned future updates quarterly; or,
2. Provide alternate direction.
Background:
In November 2025, the Town released the results of an independent audit of the Building Division focused on permitting and inspection practices during the post–Camp Fire rebuilding period.
While the audit did not identify illegal wrongdoing, it identified deficiencies related to training, oversight, documentation, permit intake procedures, and inspection consistency, and recommended a series of organizational and operational improvements.
Given the heightened public attention surrounding the audit and the critical role the Building Division plays in life safety, housing recovery, and public confidence, Town staff prepared the attached 2025 Building Division Audit Corrective Action Plan (CAP) to provide a structured, transparent, and accountable response to the audit findings.
The CAP is intended to serve as a living document and implementation framework that translates audit recommendations into discrete, trackable corrective actions with assigned responsibility, timelines, and reporting mechanisms. It is designed for use by the Town Council, staff, and the public, and to support both immediate stabilization and long-term institutional reform Analysis:
The CAP is organized to provide Council and the public with clear context, accountability, and visibility into how the Town is responding to the audit. Key components include:
Contextual Framework:
The CAP places the audit findings within the broader scale and complexity of Paradise’s post-fire rebuilding environment, which has included thousands of residential permits, inspections, and Certificates of Occupancy issued since 2020. The document acknowledges both the challenges identified by the audit and the significant volume of work successfully completed during this unprecedented recovery period. Corrective Action Matrix:
82 The core of the CAP is a detailed matrix that converts each audit recommendation into a unique, trackable corrective action. Actions are organized by functional area, including Community Development administration, permit counter operations, inspection processes, public support and complaint resolution, and supplemental internal improvements. Each item identifies current status and the Town’s response, including actions already taken, actions underway, or documented rationale where recommendations were considered and declined.
Expanded Data and Performance Review Commitment:
Recognizing the audit’s limited sample size, the CAP commits the Town to a broader, data-driven evaluation of permitting, inspection, and complaint activity. This expanded analysis is intended to establish statistically meaningful metrics, distinguish isolated issues from systemic concerns, and provide clearer context for public understanding. Public Interface and Transparency Measures:
The CAP establishes an ombudsman-style function, enhanced public guidance regarding complaint pathways, and recurring public reporting. Quarterly CAP updates, performance dashboards, and published procedures are intended to restore and maintain public trust through ongoing transparency rather than a one-time report. Phased Implementation Timeline:
A multi-phase timeline is included to reflect realistic sequencing of stabilization actions, training and procedural reforms, public interface improvements, and long-term quality assurance integration.
This Council review represents the first formal policy-level discussion of the CAP. Council input at this stage will help guide prioritization, reporting expectations, and any adjustments prior to full implementation and ongoing updates.
Financial Impact:
Implementation of the CAP will primarily be supported through existing Building Division resources, reallocated staff time, and previously authorized consulting and training services.
Some corrective actions—such as third-party training, field training officers, quality assurance functions, and development of performance dashboards—are already underway or anticipated within recent supplemental budget modifications.
At this time, no immediate General Fund appropriation is requested as part of this review. Any future funding needs associated with long-term staffing changes, expanded quality assurance functions, or additional system investments will be brought forward to the Town Council as part of future budget actions or separate Council agenda items, as appropriate. 83 2025 Building Division Audit
Corrective Action Plan
RESTORING COMMUNITY CONFIDENCE THROUGH IMPLEMENTATION
FOR TOWN COUNCIL REVIEW JANUARY 13, 2026
Prepared by:
Marc Mattox
Assistant Town Manager
84 2025 Building Division Audit Corrective Action Plan
January 13, 2026
Contents
1. Purpose and Intended Use of This Document....................................................................................... 2
2. Background and Context..................................................................................................................... 3
2.1 Overview of the Audit and Its Release.......................................................................................... 3
2.2 Public Concerns ........................................................................................................................ 3
3. Post-Fire Recovery Context and 2025 Audit Sample Size....................................................................... 4
3.1 Scale and Complexity of the Rebuild Environment....................................................................... 4
3.2 Recognizing the Contributions and Challenges of Staff................................................................ 4
3.3 Introduction of Fire-Resilient and Innovative Construction Methods............................................. 4
3.4 Limitations of the 2025 Audit Sample.......................................................................................... 5
4. Commitment to Expanded Analysis and Data-Driven Evaluation........................................................... 6
4.1 Need for Statistically Meaningful Metrics .................................................................................... 6
4.2 Types of Data the Town Will Compile .......................................................................................... 6
4.3 How the Expanded Analysis Supports Public Confidence ............................................................ 6
4.4 Defining Appropriate Pathways for Homeowners with Concerns .................................................. 6
4.5 Commitment to Publishing Findings and Updating Metrics .......................................................... 7
5. Corrective Action Framework .............................................................................................................. 8
5.1 Structure of the Corrective Action Process.................................................................................. 8
5.2 Recommendation-to-Action Flow ............................................................................................... 8
5.3 Tracking and Accountability Methodology ................................................................................... 8
5.4 Integration with Long-Term Reform ............................................................................................. 8
6. Corrective Action Matrix ...................................................................................................................... 9
7. Proposed CAP Timeline ..................................................................................................................... 17
8. Public Reporting and Transparency Measures .................................................................................... 18
8.1 Public Reporting Commitments................................................................................................ 18
8.2 Ongoing Review and Adjustment............................................................................................... 18 85 2025 Building Division Audit Corrective Action Plan
January 13, 2026
1. Purpose and Intended Use of This Document
This Corrective Action Plan (CAP) is a foundational accountability document developed in response to the 2025 independent audit of the Building Division. It is intended to establish a clear, traceable, durable framework for documenting steps the Town has taken—and will continue to take—to address organizational, procedural, and operational findings identified in the audit. The CAP serves as a roadmap and reporting instrument that reinforces the Town’s commitment to responsible governance and continuous improvement. It is designed for use by the Town Council, staff, and the public we serve. The CAP is a living document and will be updated regularly as progress occurs. 86 2025 Building Division Audit Corrective Action Plan
January 13, 2026
2. Background and Context
2.1 Overview of the Audit and Its Release
In late summer 2025, the Town initiated an independent audit to evaluate concerns regarding Building Division permitting and inspection practices during the post–Camp Fire rebuilding period. The audit was conducted over two weeks and included interviews, document review, and assessment of internal procedures. The findings, released on November 12, 2025, identified deficiencies in structural design, permit intake processes, inspector training, oversight, and documentation protocols. While the audit did not identify illegal wrongdoing, it noted the need for systemic improvements to ensure accuracy, transparency, and consistent application of building codes.
2.2 Public Concerns
The audit and related administrative leave actions received significant attention, highlighting community concerns regarding building safety, permit processing, and inspection reliability. Coverage by regional media outlets emphasized the importance of transparency and the Town’s responsibility to correct deficiencies. This heightened public attention underscores the need for a clearly documented Corrective Action Plan that demonstrates meaningful and measurable improvements. 87 2025 Building Division Audit Corrective Action Plan
January 13, 2026
3. Post-Fire Recovery Context and 2025 Audit Sample Size
3.1 Scale and Complexity of the Rebuild Environment
The 2025 Building Division Audit provides a helpful snapshot of issues requiring correction; however, it represents a limited view of a far larger operational environment. Since the Camp Fire in 2018, the Town of Paradise has undertaken one of the most extensive residential rebuilding efforts in California. Since the rebuild began in earnest in early 2020, the Building Division has processed 3,666 single-family residential building permit applications, resulting in 3,016 Certificates of Occupancy issued. In addition, 1,022 multifamily unit applications have been processed, with 683 Certificates of Occupancy issued to date. The rebuilding effort has created a surge of work unmatched in the Town’s history, requiring constant adaptation to high-volume demand, evolving regulatory expectations, and community pressures for rapid permitting and inspection timelines.
3.2 Recognizing the Contributions and Challenges of Staff Throughout this period of accelerated rebuilding activity, Building Division staff have:
• Successfully processed thousands of permits and inspection requests, • Supported residents rebuilding under difficult personal and economic circumstances, • Adapted to new materials and code requirements with limited precedent or training resources, • Maintained service availability despite staffing fluctuations, procedural changes, and an unusually high volume of work.
The CAP aims to build upon these contributions, address identified process gaps and ensure the Building Division is equipped to operate effectively within a modern, resilient building environment.
3.3 Introduction of Fire-Resilient and Innovative Construction Methods A unique aspect of the Town’s post-fire recovery is the substantial introduction of innovative construction technologies and fire-resilient building systems—many of which had not been widely used, or used at all, in Paradise prior to 2018. These include:
• Enhanced wildland–urban interface (WUI) compliance requirements, • Nontraditional roofing, siding, and venting assemblies, • Advanced ember-resistant construction methods,
• New insulation and energy-performance products,
• More complex structural and foundation systems related to fire-damaged soils, • Emerging materials promoted superior fire resistance or environmental performance.
Because these systems were new to many contractors, designers, and staff, the Building Division has had to:
• Learn and interpret new product listings, installation standards, and manufacturer specifications, • Update internal procedures to align with continuously evolving state and national codes, • Assess building methods not previously encountered in the Town’s traditional residential portfolio, • Balance life-safety and compliance while supporting homeowners who wish to adopt innovative, resilient solutions.
88 2025 Building Division Audit Corrective Action Plan
January 13, 2026
This environment created a steep learning curve for the entire rebuild community—builders, design professionals, inspectors, and permitting staff alike. The Town recognizes this complexity and is committed to using the CAP not only to correct identified gaps but also to strengthen the institutional capacity necessary to support a more advanced, resilient, and fire-hardened building environment.
3.4 Limitations of the 2025 Audit Sample
While the audit identified important issues requiring corrective action, it is necessary to contextualize its methodology, scope, and relationship to the overall scale of Building Division activity during the post-fire rebuild period.
The audit was initiated to promptly review and assess a defined set of escalated concerns that had been raised regarding Building Division permitting and inspection practices. Its primary purpose was to identify potential process gaps, training needs, and organizational improvements that could be addressed in the near term. It was not intended to serve as a statistically comprehensive evaluation of all Building Division activity following the Camp Fire.
Since 2019, the Building Division has processed hundreds of building permit applications and Certificates of Occupancy annually and conducted thousands of inspections across multiple disciplines in support of residential and commercial rebuilding. Within this broader operational context, the audit relied on a limited subset of complaints and associated records available at the time of review. While those matters warrant attention and corrective action, they represent a small fraction of total permitting and inspection activity conducted during the rebuild period.
The audit did not attempt to evaluate the totality of inspection volume, permitting throughput, or inspection outcomes across all project types, inspectors, or time periods. Nor was it designed to quantify system-wide error rates, compare inspection performance across categories of construction, or assess outcomes relative to the increased complexity associated with post-fire rebuilding conditions and fireresilient construction technologies.
Accordingly, the cases reviewed do not constitute a statistically representative cross-section of all Building Division activity. The Town accepts the audit’s findings and recommendations and is committed to implementing corrective actions where identified. At the same time, the Town recognizes that the overall performance of the Building Division must be evaluated within the context of the full scale of work performed, including the substantial number of projects successfully permitted, inspected, and approved for occupancy.
For this reason, the Town will undertake broader, data-driven analysis as described in Section 4 of this CAP. That analysis is intended to establish statistically meaningful metrics, evaluate trends across permit and inspection categories, and provide the community with a more complete understanding of both the successes achieved and the areas requiring continued improvement. 89 2025 Building Division Audit Corrective Action Plan
January 13, 2026
4. Commitment to Expanded Analysis and Data-Driven Evaluation
4.1 Need for Statistically Meaningful Metrics
To provide the public, Town Council, regional partners, and oversight bodies with a full understanding of the Building Division’s performance, the Town will conduct broader and more systematic analysis beyond the scope of the original audit. This analysis is necessary to:
• Understand trends and volumes across all permit types, • Identify meaningful indicators of inspection quality, • Differentiate isolated issues from systemic gaps,
• Enhance transparency into the Town’s ongoing rebuilding efforts.
The expanded analysis will focus on establishing datasets that reflect the accurate scale of work performed and will ultimately help the community contextualize how individual concerns compare to statistically relevant performance metrics.
4.2 Types of Data the Town Will Compile
The Town will compile, analyze, and publish available data sets, including, but not limited to:
• Permitting Data
• Inspection Data
• Certificate of Occupancy Data
• Contractor-Related Data
4.3 How the Expanded Analysis Supports Public Confidence By establishing statistically relevant datasets, the Town can:
• Distinguish between isolated incidents and patterns of concern, • Provide clearer context for the rate of inspection errors (if any) relative to total volume, • Demonstrate when inspection performance is consistent with industry norms, • Identify new areas where process improvements are warranted, • Help homeowners understand the most appropriate pathways for their individual concerns.
This approach ensures that public understanding is grounded in empirical facts rather than small samples or anecdotal reports.
4.4 Defining Appropriate Pathways for Homeowners with Concerns The expanded analysis will also support the creation of a homeowner resolution framework. This framework recognizes that not all concerns identified by homeowners fall within municipal jurisdiction.
Based on statistical context and inspection records, some homeowners may be better served through:
• Contractor warranties,
• Bond claims,
• California Contractors State License Board (CSLB) actions, • Private home inspections,
• Industry-standard defect resolution processes, or
90 2025 Building Division Audit Corrective Action Plan
January 13, 2026
• Ombudsman-guided navigation, as recommended in the audit.
The Town will provide clear guidance to help residents understand:
1. Whether their issue is likely related to inspection oversight,
2. Whether the issue is a workmanship or contractor performance matter,
3. What type of recourse is available under California law,
4. How to pursue resolution with the appropriate party.
This structured pathway will help ensure that homeowners receive clear, accurate information and that Building Division staff focus on matters within municipal scope.
4.5 Commitment to Publishing Findings and Updating Metrics The Town will publish periodic reports summarizing:
• Key datasets and trends,
• Findings from expanded analysis,
• Updated metrics and evaluation tools,
• Improvement initiatives resulting from performance review.
These findings will be incorporated into future CAP updates and may inform additional corrective actions or operational reforms.
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January 13, 2026
5. Corrective Action Framework
The CAP framework provides the methodology through which the Town will convert audit recommendations into actionable, trackable items. Each recommendation is assigned a unique Corrective Action ID number to facilitate consistent reference across departments, Council briefings, and public reporting. The framework ensures that each recommendation is evaluated for feasibility, assigned to responsible parties, developed into actionable steps, executed with documented milestones, and validated prior to closure. Where alternative approaches are chosen, the CAP requires a written justification to maintain transparency.
5.1 Structure of the Corrective Action Process
The corrective action process is organized by functional categories: administration, permit processing, inspections, public support, and supplemental internal improvements. This structure aligns with the audit’s focal areas and supports targeted management oversight.
5.2 Recommendation-to-Action Flow
The CAP follows a standardized flow from recommendation identification to implementation: receipt of the recommendation; internal assessment; assignment to a responsible division; development of required actions; execution and milestone tracking; and final verification of completion.
5.3 Tracking and Accountability Methodology
Progress is documented using status indicators, action logs, attachments such as revised procedures or training records, and performance metrics such as permit turnaround times or inspection compliance rates. Each CAP update will reflect changes and progress in a version-controlled manner.
5.4 Integration with Long-Term Reform
The CAP is designed not only to correct past deficiencies but to embed improvements into long-term organizational culture. Enhancements to documentation, staff training, management accountability, and customer service will support a more resilient, transparent, and professional Community Development structure beyond the immediate audit response.
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6. Corrective Action Matrix
The following Corrective Action Matrix serves as the central implementation and accountability tool for this Corrective Action Plan. It translates the findings and recommendations of the 2025 Building Division Audit into discrete, trackable action items and provides a standardized format for documenting the Town’s response over time.
Each recommendation identified in the audit has been assigned a unique Corrective Action ID and organized by functional category, including department administration, permit intake, inspections, public support, and supplemental internal improvements. This structure allows Town leadership, staff, the public, and oversight bodies to consistently reference specific items, monitor progress, and understand the status of each corrective action.
For each entry, the matrix documents:
• the audit-based or internally derived recommendation, • the status of implementation, and
• the Town’s response, which may include actions already taken, actions planned, or an explanation of alternate approaches where appropriate.
The matrix is intentionally designed to be dynamic. As corrective actions advance, entries will be updated to reflect implementation milestones, policy changes, training completion, organizational adjustments, or other relevant outcomes. In instances where a recommendation is modified, deferred, or addressed through an alternative strategy, the rationale will be documented to ensure transparency and institutional clarity.
The Corrective Action Matrix should be read in conjunction with the broader narrative sections of this CAP, including the post-fire recovery context and the Town’s commitment to expanded, data-driven analysis.
Together, these components provide a comprehensive view of both the immediate corrective steps being taken in response to the audit and the longer-term efforts underway to strengthen Building Division operations, restore community confidence, and support a resilient and effective rebuilding environment. 93 2025 Building Division Audit Corrective Action Plan
January 13, 2026
Table A: Community Development Administration
ID# Recommendation Status Response
A-1
Hire a dedicated Community
Development Director. (Audit:
Community Development Dept.
Administration, p.1–2)
Ongoing
The Town of Paradise has retained the
services of temporary consultant staff while
assigning the restructured Assistant Town
Manager to prepare and oversee the
implementation of the CAP. Supplemental
staff and administrative oversight will
continue as long as necessary to achieve
meaningful programmatic improvements.
A-2
Consider the use of an interim CD
Director via a consulting firm. (Audit p.1–
2)
Complete
The services of Ron Beehler of BPR
Consulting Group have been retained to
function as an interim Community
Development Director. This assignment has
been carried forward through the
appointment of the Assistant Town Manager
to prepare and oversee the CAP. In the short
term, Mr. Beehler will continue to perform
advisory services to summarize experiences
and inform/measure corrective actions.
A-3
Consider moving Code Enforcement
under the Planning Division. (Audit p.2) Complete
Considered and declined. The current
staffing model and functional scope of
Code Enforcement are better aligned with
Building and Fire Prevention than the
Planning Division.
A-4
Consider reclassifying the Director of
Building & Code Enforcement to Building
Official / Fire Marshal. (Audit p.2)
Complete
Considered and declined. Current staffing
model and oversight by the Community
Development Director remain sufficient.
With additional oversight by the Assistant
Town Manager and implementation actions
through the CAP, no adjustments to this
position are necessary.
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Table B: Permit Counter Process Improvements
ID# Recommendation Status Response
B-1
Provide in-person training for permit staff
on ethics, best practices, and legal
requirements. (Audit p.2)
Ongoing
Effective December 1, 2025 the services of
Jessie Oswald of Bureau Veritas were
engaged to provide in-person oversight of all
aspects of the building permitting process.
Services are scheduled to continue through
the end of January 2026.
B-2
Assign two dedicated permit technicians
for permit intake and issuance. (Audit
p.2)
Complete
Effective December 1, 2025 two dedicated
Permit Technicians were assigned to handle
permit intake and issuance. This approach
improves efficiency, ensures consistency in
application processing, reduces turnaround
times, and allows other staff to focus on
plan review, inspections, and customer
support functions.
B-3 Provide classroom training for permit
technicians and supervisors. (Audit p.2) Ongoing
The services of Steve Burger of Bureau
Veritas have been retained to provide two
full days of onsite classroom training
covering all aspects of the building
permitting process. These trainings are
scheduled for February 10-11, 2026.
B-4
Provide two weeks of embedded trainer
support at the permit counter. (Audit p.2) Ongoing
Effective December 1, 2025, the services of
Jessie Oswald of Bureau Veritas were
retained to provide in-person oversight of all
aspects of the building permitting process.
Services are scheduled to continue through
the end of January 2026.
B-5 Revise the permit procedures manual.
(Audit p.2) Ongoing
Starting December 1, 2025, the services of
Jessie Oswald of Bureau Veritas were
engaged to revise and update procedural
guidelines. Target completion date of
January 31, 2026.
B-6 Require ICC Permit Technician
Certification for classification. (Audit p.2) Ongoing
Any changes to the minimum qualification
requirements for employees in the Permit
Technician classification trigger meet-andconfer obligations between the Town and Union representatives. Human Resources &
Risk Management Director will be
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January 13, 2026
coordinating this process and more
information will be included in future
updates to the CAP.
B-7 Provide updated public informational
materials. (Audit p.2) Ongoing
Starting December 1, 2025, the services of
Jessie Oswald of Bureau Veritas were
engaged to revise and update all public
informational materials. Target completion
date of January 31, 2026.
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January 13, 2026
Table C: Building Inspection Process Reforms
ID# Recommendation Status Response
C-1
Provide in-person, in lieu of existing
online-only, ethics training for
inspectors. (Audit p.3)
Ongoing
Town staff is obtaining quotes and working
to schedule in person trainings to
supplement existing online-only classes.
C-2
Provide classroom training for inspection
of residential buildings, plan reading,
and calculation interpretation. (Audit p.3)
Ongoing
Building Inspection staff will attend the
2026 Sacramento Valley Building Officials
Education Week and the California
Association of Building Officials Education
Week. Staff will also seek opportunities to
further their ongoing professional
development continuously.
C-3 Employ a Field Training Officer (FTO) for
at least six months. (Audit p.3) Ongoing
Starting October 27, 2025, the services of
Mike Genna of BPR Consulting were
retained as a Field Training Officer. The
Town plans to rotate in a new FTO starting
February 1, 2026 to ensure staff receives
the benefit of multiple perspectives in this
effort. The Town will also augment this
effort with subject-matter experts to
provide a well-rounded approach to the
fundamentals of building inspections.
C-4 Provide off-site professional training for
inspectors. (Audit p.3) Ongoing
Building Inspection staff have attended a
four-hour webinar on the 2025 Significant
Changes to the California Residential Code.
Staff will also be attending the monthly
Shasta Cascade Chapter of the
International Code Council meetings,
which include an educational component.
The California Energy Commission will be
presenting on significant changes to the
2025 Building Code at January’s Building
Stakeholders meeting. In addition, staff will
attend the Sacramento Valley Building
Officials Education Week and the California
Association of Building Officials Education
Week to further support ongoing
professional development.
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January 13, 2026
C-5
Require Building Inspector II to obtain a
second certification within 90 days of
return. (Audit p.3)
Ongoing In progress.
98 2025 Building Division Audit Corrective Action Plan
January 13, 2026
Table D: Public Support & Complaint Resolution
ID# Recommendation Status Response
D-1
Establish an ombudsman role to support
homeowners navigating construction
concerns. (Audit p.3 – Additional)
Ongoing
The ombudsman recommendation will be
performed by the Assistant Town Manager,
through which information relating to
concerns will be received and researched.
Property owners may rely on this role to
receive information from the Town
regarding their concern and potential next
steps. Notably, this ombudsman role is
intended to facilitate information-sharing
and navigation, not adjudication or
enforcement. Matters that may fall within
the scope of potential remedy or formal
action will be referred to the Town Manager,
Town Council and Town Attorney, as
appropriate.
D-2
Improve transparency regarding
complaint pathways and available
resources. (Audit p.3 – Additional)
Ongoing
In coordination with the ombudsman function
described in D-1, the Town will publish clear,
publicly accessible information describing
how building-related concerns may be raised,
reviewed, and routed. This information will
outline the respective roles of Town staff,
contractors, and external regulatory entities,
as well as the types of issues that fall within
municipal oversight versus those more
appropriately addressed through contractor
warranties, licensing authorities, or other
consumer protection mechanisms.
Transparency materials will be posted to the
Town’s a dedicated page on the Town’s
website and updated periodically to reflect
procedural changes, available resources, and
lessons learned through implementation of
the CAP. The goal of this effort is to ensure
that property owners understand both how to
engage with the Town and what pathways are
available for resolution, while maintaining
clarity regarding municipal authority and
limitations.
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January 13, 2026
Table E: Supplemental Internal Recommendations
ID# Recommendation Status Response
E-1 Establish a quality assurance function for
inspection oversight. Ongoing
Starting February 1, 2026, Bureau Veritas
will be engaged to provide a quality
assurance function for inspection oversight.
This effort is being developed to promote
consistency, accuracy, and accountability
across inspections. This function will
include standardized inspection checklists,
supervisory review, mentoring, and periodic
audits to ensure inspections are conducted
in accordance with adopted codes and best
practices. Target completion date of April
30, 2026.
E-2 Implement uniform inspection checklists
and photo documentation. Ongoing
Photographic inspection procedures have
been implemented, and uniform inspection
checklists are currently under development
with Bureau Veritas.
E-3 Develop a performance dashboard for
permits, inspections, and complaints. Ongoing
The performance dashboard development
is underway. The dashboard will augment
weekly rebuild updates to include monthly
comprehensive performance metrics.
Updates will include total customer
interactions and inspection data. Target
roll-out date of February 1, 2026.
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2025 Building Division Audit Corrective Action Plan
January 13, 2026
7. Proposed CAP Timeline
The following timeline provides a high-level sequencing framework for implementation of the corrective actions identified in this Corrective Action Plan. It is intended to communicate the Town’s anticipated approach to prioritization, coordination, and phased execution rather than to establish rigid deadlines for individual actions.
The timeline reflects the reality that corrective actions vary in complexity, resource requirements, and dependency on external factors such as recruitment, training availability, contractual services, and policy adoption. Accordingly, the phases identified below represent logical groupings of work designed to stabilize operations, strengthen institutional capacity, and integrate long-term improvements in a deliberate and sustainable manner.
The proposed phases allow the Town to:
• address immediate operational and oversight needs,
• implement training, procedural, and organizational reforms, • improve public-facing support and transparency mechanisms, and • establish quality assurance and performance monitoring tools to sustain improvements over time.
As corrective actions progress, timelines may be refined to reflect actual implementation conditions, evolving priorities, or additional findings from expanded analysis. Any such adjustments will be documented in subsequent CAP updates to maintain transparency and accountability.
The Proposed CAP Timeline should be read in conjunction with the Corrective Action Matrix and the public reporting commitments described in Section 8, which together provide a comprehensive picture of how corrective actions will be implemented, monitored, and communicated.
Phase Period Primary Activities
Phase 1:
Stabilization 0–60 days
Staff reinstatement; FTO engagement, continued
supplemental staffing, initiation of training; organizational restructuring decisions; Corrective Action Plan adoption and initial implementation.
Phase 2:
Infrastructure Build-Out 60–120 days
Development of revised procedures; permit and
inspection procedure rollouts; adoption of new manuals; implementation of certification requirements; expanded
statistical analysis of inspections, themes and
programmatic needs.
Phase 3:
Public Interface
Improvements
60–180 days
Ombudsman role implemented through the Assistant
Town Manager; expanded public guidance; transparency
reporting.
Phase 4:
Quality Assurance Integration 180–365 days Long-term QA/oversight; system improvements; metrics reporting; close-out of corrective items. 101
2025 Building Division Audit Corrective Action Plan
January 13, 2026
8. Public Reporting and Transparency Measures
Transparency and accountability are foundational to the Town’s response to the 2025 Building Division Audit and to the broader rebuilding and recovery effort following the Camp Fire. The public reporting and transparency measures outlined in this section are intended to ensure that the community, Town Council, and oversight bodies have ongoing visibility into corrective action progress, operational improvements, and performance outcomes.
These measures are designed to provide clear, accessible information regarding:
• the status of corrective actions identified in this CAP, • procedural and organizational changes implemented within the Building Division, and • measurable indicators of performance and service delivery over time.
The Town recognizes that restoring and maintaining public confidence requires more than the publication of a single report. Accordingly, transparency will be treated as a continuing obligation, supported by regular updates, publicly available documentation, and clear communication regarding both progress and challenges encountered during implementation.
Public reporting will be structured to balance openness with accuracy, ensuring that information shared reflects verified data, appropriate context, and a clear explanation of municipal roles and limitations.
Where applicable, reporting will also incorporate findings from expanded data analysis and performance metrics to provide a comprehensive and factual basis for public understanding.
Together with the Corrective Action Matrix and Proposed CAP Timeline, the transparency measures described below establish a framework for sustained accountability and meaningful engagement as the Town implements corrective actions, evaluates outcomes, and strengthens Building Division operations over the long term.
8.1 Public Reporting Commitments
The Town will publish and maintain the following reporting mechanisms:
• Quarterly CAP Progress Reports summarizing implementation status of corrective actions, including updates to the Corrective Action Matrix. First report planned for January 2026. • Updated procedures and public guidance posted on the Town’s website as revisions are adopted. • Training and certification progress summaries for Building Division personnel, as applicable. • Performance metrics related to permitting activity, inspection volume, and complaint handling, presented with appropriate context.
These materials will be made available through established Town communication channels and updated as new information becomes available.
8.2 Ongoing Review and Adjustment
The Town will periodically review the effectiveness of its reporting and transparency measures to ensure they remain responsive to public needs and oversight expectations. Adjustments may be made to reporting frequency, format, or content as implementation progresses or as additional findings emerge from expanded data analysis.
102
Town of Paradise
Council Agenda Summary
Date: January 13, 2026
Agenda Item: 6(f)
ORIGINATED BY: Susan Hartman, Community Development Director – Planning & Wastewater
REVIEWED BY: Michael O’Brien, Acting Town Manager
Scott Huber, Town Attorney
SUBJECT: Adoption of Ordinance No. 653
LONG-TERM
RECOVERY PLAN:
No
COUNCIL ACTION REQUESTED:
1. Consider waiving the second reading of the entire Town Ordinance No. 653 and approve reading by title only; and,
2. Adopt Town Ordinance No. 653, "An Ordinance Amending Text Regulations within Paradise Municipal Code Title 17 of the Paradise Municipal Code Relative to the Keeping of Backyard Chickens and Rabbits” (ROLL CALL VOTE) Background:
On December 9, 2025, the Town Council introduced the above-noted Town ordinance for purposes of eventual adoption. If adopted, the proposed ordinance intends to amend the backyard chickens and rabbits regulations to: 1) allow up to 12 hens or rabbits (any combination of the two with a limit of 12 total), 2) reduce the chicken/rabbit enclosure from 75’ to 50’ from any occupiable structure, and 3) require a 100’ setback from the chicken/rabbit enclosure to any water well in accordance with State law.
Analysis:
Town staff recommends the Town Council waive the second reading of this entire ordinance; read it by title only and formally adopt Town Ordinance No. 653 [copy attached]. Once adopted, the provisions of this ordinance will be effective thirty (30) days thereafter.
Financial Impact:
A nominal cost for publication of the ordinance within the local newspaper and for codification will be borne by the Town of Paradise.
103
TOWN OF PARADISE
ORDINANCE NO. 653
AN ORDINANCE AMENDING TEXT REGULATIONS WITHIN
PARADISE MUNICIPAL CODE TITLE 17 OF THE PARADISE MUNICIPAL CODE
RELATIVE TO THE KEEPING OF BACKYARD CHICKENS AND RABBITS SECTION 1. The definition for “Backyard chickens and rabbits” shall be amended in Section
17.04.500 “C” [General definitions] of the Paradise Municipal Code to be worded as follows:
“Backyard chickens and rabbits” means the long-term keeping and raising of chickens (excluding roosters) and rabbits, not to exceed a combined total of twelve chickens and rabbits, as a permitted ACCESSORY USE on the same SITE as an ESTABLISHED residential land USE as household pets and in accordance with Section 17.35.250.
SECTION 2. Section 17.35.250 [Backyard chickens and rabbits] of Chapter 17.35 [Animal Regulations] of the Paradise Municipal Code shall be amended to be worded as follows:
17.35.250 Backyard Chickens and Rabbits. Notwithstanding the requirements of Section
17.35.200, the long-term keeping and raising of chickens and rabbits shall be considered a permitted accessory land use to an established residential land use in residential zoning districts when conducted in accordance with the following standards:
A. Chickens and rabbits, not to exceed a combined total of twelve chickens and rabbits, may be kept and raised upon residentially-zoned properties.
B. Chickens kept and raised as permitted residential accessory land uses shall under no circumstances include roosters.
C. Chickens and rabbits shall at all times be confined within pens, coops and other enclosed or fenced areas maintained a minimum distance of fifty lineal feet from any occupiable structure and shall be established in compliance with all applicable yard setback requirements.
D. Pens, coops and other areas used to contain and/or confine chickens and rabbits shall be maintained in a clean and sanitary condition via frequent cleaning and removal of animal waste from the site and shall at no time become a source of offensive odors transmitted to adjacent properties.
E. Nothing in this section shall be construed to reduce or waive minimum setback requirements from water wells or other facilities as required by the California Department of Water Resources or County Public Health Department standards.
SECTION 3. 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 4. This ordinance shall take effect thirty (30) days after the date of its passage. Before 104
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 13th day of January, 2026 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
__________________________________
Steve Crowder, Mayor
ATTEST:
___________________________________
Melanie Elvis, Town Clerk/Elections Official
APPROVED AS TO FORM:
________________________________
Scott E. Huber, Town Attorney
105
Town of Paradise
Council Agenda Summary
Date: January 13, 2026
Agenda Item: 6(g)
ORIGINATED BY: Colette Curtis, Recovery and Economic
Development Director
REVIEWED BY: Mike O’Brien, Interim Town Manager
SUBJECT: Community Development Block Grant Disaster Recovery, Workforce Development Project Update
LONG TERM
RECOVERY PLAN:
Yes
COUNCIL ACTION REQUESTED:
1. Consider approving a Request for Proposals (RFP) to procure a contract with a compliance consultant to support project partners with compliance and reimbursement requirements of Department of Housing and Community Development (HCD) grant program; and,
2. Approve an updated MOU with project partners. (ROLL CALL VOTE) Background:
After the 2018 Camp Fire, funding was appropriated by Congress through the Community Development Block Grant Disaster Recovery (CDBG DR) Program to provide recovery funding for disaster affected communities, including Butte County, and the Town of Paradise. CDBG DR funding was allocated for the 2017/2018 disasters in four areas:
1. Housing
2. Infrastructure
3. Workforce Development
4. Mitigation
Butte County was allocated $18,700,000. To utilize these funds, the Town submitted an application for $17,868,376.00 for a project to construct a workforce training center on the Paradise High School Property and other regional locations which would focus on resilient building and forestry technologies, as well as companion training, and be a resiliency hub for training in the region. The funds would be utilized to pay for the rehab of two existing buildings on the Paradise High School campus, and for the various training programs which would be run by our local training partners with the goal of providing workforce development training and job placement for up to 500 local residents.
Analysis:
Following the Town Council’s consensus on December 12th to move the project forward with program adaptations, Town staff have continued to actively coordinate with project partners to move program forward. During this period, project budgets have been updated, and partner roles have been confirmed. Individual partner meetings are occurring on a weekly basis, with all partners meeting collectively on a monthly schedule that will increase to twice per month in the 106
spring. The Town continues to meet regularly with HCD staff to support the project.
In order to move forward with next steps, partners have requested updates to the Memorandum of Understanding (MOU) to reflect the current status of the project and to provide additional clarification regarding reimbursement and compliance processes. In addition, Town staff are seeking approval to proceed with the Request for Proposals (RFP) process to secure a compliance consulting firm to assist all partners in meeting project compliance and reimbursement requirements.
1. Approve Request for Proposal (RFP) to Procure a Compliance Consultant Town staff recommends approval of the attached Request for Proposals (RFP) to procure a professional compliance consultant to support project partners with compliance, reporting, and reimbursement requirements associated with funding from the California Department of Housing and Community Development (HCD).
The consultant will assist in ensuring that all project activities, documentation, and reimbursement requests meet HCD program requirements, timelines, and audit standards. This support is intended to reduce administrative burden on project partners, improve compliance accuracy, and mitigate the risk of delayed or denied reimbursements.
Approval of this item will authorize Town staff to move forward with issuing the attached RFP and conducting the procurement process in accordance with applicable Town and funding agency requirements.
2. Approve Updated Memorandum of Understanding (MOU) with Project Partners Town staff recommends approval of the attached and updated Memorandum of Understanding (MOU) with project partners. The proposed MOU includes minor revisions from the version previously approved by the Town Council. These updates are primarily intended to reflect the current status of the project and include the following:
Updated language to reflect changes in project scope, implementation approach, and timeline.
Updated budget figures to reflect the current status of the project. The overall project remains below the originally approved budget and is expected to decrease further as specific Paradise Unified School District (PUSD) improvements are identified.
Inclusion of budget capacity to allow for the addition of future program partners, should they be identified. Any additional partners would require separate approval by the Town Council prior to being added to the MOU.
Addition of Exhibit B that outlines the expected reimbursement process for partners.
Addition of Exhibit C that will be the updated Standard Agreement between the Town and HCD. This document will be attached if this MOU update is approved and after being sent to HCD to be added to the Standard Agreement.
Approval of the updated MOU will ensure that project agreements remain current, accurate, clear and aligned with ongoing project implementation. 107
Financial Impact:
The Town applied for and was awarded $17,868,367.00 for the workforce development center project discussed above.
The requested actions do not result in any impact to the Town’s General Fund or other Town financial resources. All project-related expenditures are funded through grant revenues and are 100 percent reimbursable.
Approval of the Request for Proposals (RFP) to procure a compliance consultant authorizes Town staff to move forward with project implementation. Consultant costs will be included within the approved Town project budget and do not represent an increase in overall project expenses.
Approval of the updated Memorandum of Understanding (MOU) does not increase the overall program budget. The total project budget remains consistent with previously approved amounts, even with the inclusion of updated expense estimates by partners and the reservation of funds to accommodate potential future project partners.
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Request for Proposal Town of Paradise Page 1 of 14
REQUEST FOR PROPOSALS
TOWN OF PARADISE
RECOVERY AND ECONOMIC DEVELOPMENT DEPARTMENT
CDBG-DR Disaster Recovery Workforce Development
(DR-Workforce) - Compliance Services
RFP #TOPWFD-2026
REQUEST FOR PROPOSALS PUBLICATION DATE: JANUARY 13, 2026 PROPOSAL SUBMISSION DEADLINE DATE: FEBRUARY 11, 2026
ISSUED BY
TOWN OF PARADISE
5555 SKYWAY
PARADISE, CALIFORNIA 95969
BRIAN SOLECKI
P. (530) 872-6291X165
[email protected]
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1) RESPONDENT ADMONISHMENT
Respondents are reminded that it is their responsibility to:
✓ Read carefully all of the content of this entire document and address all requirements and follow all procedures of this Request for Proposal (RFP). ✓ Ask for clarification before final due date of questions. ✓ Immediately inform the Town of any problems with this Solicitation. ✓ Be complete in response.
✓ Submit all responses by the required dates and times. 2) INTRODUCTION
The Town of Paradise seeks qualified compliance services to assist the Town and its project partners in ensuring ongoing compliance with all applicable federal, state, and local requirements tied to its HCD Standard Agreement and HCD DR-Workforce Policies & Procedures. The selected firm will act as the Town’s compliance resource to support accurate documentation, reporting, reimbursement, and oversight throughout the project performance period.
The Town of Paradise intends to award a contract to a firm that will meet our qualification criteria and has successfully performed services on similar projects in the past. The successful firm will be required to enter into a contract with the Town for the services requested in this Request for Proposals (RFP) within a reasonable time after award. A firm submitting a proposal must be prepared to use the Town's standard contract form. The contract will include terms appropriate for this project. Generally, the terms of the contract will include, but are not limited to: (1) completion of the project within the timeframe provided; (2) no additional work authorized without prior written approval; (3) no payment without prior written approval; (4) funding availability; (5) termination of contract under certain conditions; (6) indemnification of the Town; (7) approval by the Town of any subcontractors; and (8) minimum appropriate insurance requirements.
3) BACKGROUND
The Town of Paradise experienced unprecedented devastation in the 2018 Camp Fire, which destroyed over 18,000 structures and claimed 85 lives. After the 2018 Camp Fire, funding was appropriated by Congress through the Community Development Block Grant Disaster Recovery (CDBG DR) Program to provide recovery funding for disaster affected communities, including Butte County, and the Town of Paradise. CDBG DR funding was allocated for the 2017/2018 disasters in four areas:
1. Housing
2. Infrastructure
3. Workforce Development
4. Mitigation
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Request for Proposal Town of Paradise Page 3 of 14
Butte County was allocated $18.700,000. To utilize these funds, the Town submitted an application for $17,868,376.00 for a project to develop a workforce training center on the Paradise High School Property and other regional locations which would focus on resilient building and forestry technologies, as well as companion training, and be a resiliency hub for training in the region. The funds would be utilized to pay for the rehab of two existing buildings on the Paradise High School campus, and for the various training programs which would be run by our local training partners with the goal of providing workforce development training and job placement for up to 500 local residents.
TIMELINE:
It is anticipated that project expenditures will begin to slowly ramp up in Q2 2026 and closeout of the project will be complete by Q3 of 2028.
Current Project Partners and Budgets:
Alliance for Workforce Development and Nortec $3,096,250.00 Town of Paradise $2,600,000.00
Valley Contractor Workforce Foundation $946,222.00
Paradise Unified School District Program $730,000.00
Butte College Program $3,444,971.89
Paradise Unified School District Improvements $5,948,378.00 Future Partners $1,000,000.00
Total $17,765,821.89
3) SCOPE OF WORK
3.1 General Compliance Monitoring & Technical Assistance The firm will provide ongoing, proactive compliance support including but not limited to:
a. Compliance Advisory Services
• Advise the Town and partners on the interpretation and application of the HCD Standard Agreement and HCD DR-Workforce Policies & Procedures Manual. Cal HCD
• Provide guidance on applicable Cross-Cutting Federal Requirements, including:
o National Objective documentation,
o Duplication of Benefits,
o Section 3 compliance,
o Cost reasonableness,
o Procurement policies, and
o Recordkeeping standards.
b. Policy Integration
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• Assist staff and partners in integrating HCD compliance requirements into project management systems and workflows.
• Recommend tools or processes to improve documentation and file quality.
3.2 Reimbursement Documentation Support
The consultant will assist in tracking, compiling, reviewing, and submitting reimbursement packets to the Town for submission to HCD:
• Review reimbursement requests for compliance with HCD standards, allowable costs, and documentation completeness.
• Coordinate with project partners to obtain necessary supporting evidence (timesheets, invoices, contracts, training logs, participant files, etc.). • Ensure reimbursement submissions meet requirements for timeliness and accuracy. • Respond to Town questions or requests for clarification on reimbursement documentation and discrepancies.
3.3 Compliance Reviews & Audits Support
• Conduct periodic compliance reviews of partner files, reimbursement submittals, and project reporting.
• Prepare internal compliance checklists and recommend corrective actions. • Support Town’s response to HCD monitoring visits or inquiries. • Assist with audit preparation, including Single Audit considerations where applicable.
3.4 Reporting & Documentation
Provide or coordinate the following as needed:
• Monthly or quarterly compliance summaries to the Town. • Compliance risk assessments for partners.
• Document templates, checklists, and guidance materials tailored to DR-Workforce compliance.
• Updates on changes to HCD requirements, policies, or reporting expectations.
3.5 Training & Capacity Building
Develop and deliver training for Town staff and partners on compliance requirements:
• Workshops on documentation best practices.
• Webinars or in-person sessions on reimbursement procedures. • Customized training for new compliance issues or updates from HCD.
Deliverables:
Deliverable Frequency/Timing
Compliance advisory support / on-call Throughout project term Reimbursement documentation review reports With each reimbursement cycle Internal compliance review reports Quarterly or as defined Training sessions & materials Bi-annual or as needed
Compliance toolkits/checklists Initial and updated versions 112
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Deliverable Frequency/Timing
Compliance summary reports Monthly/Quarterly
Budget
o Funding for this project is through the Community Development Block Grant – Disaster Recovery – Mitigation – Planning and Public Services (CDBG DR MIT PPS), which is a congressional appropriation awarded by the Department of Housing and Urban Development (HUD) at the Federal level, and administered through the California Department of Housing and Community Development (HCD).
Responding firms shall submit a detailed cost proposal based on hourly rates for services actually performed, with an overall Not-to-Exceed (NTE) amount for the full term of the contract.
Hourly Rate Structure
Proposals shall include:
• A schedule of hourly billing rates by labor category (e.g., Project Manager, Compliance Specialist, Senior Reviewer, Administrative Support). • Identification of which staff classifications will perform specific tasks described in the Scope of Work.
• Confirmation that rates include all direct and indirect costs, including overhead, administrative expenses, travel (if applicable), and profit.
Estimated Level of Effort
Firms shall provide:
• An estimated level of effort (hours) by task and labor category. • An estimated total contract cost, calculated using the proposed hourly rates. • A clearly stated Not-to-Exceed (NTE) amount, which shall not be exceeded without prior written authorization from the Town of Paradise.
Billing & Payment
• Compensation shall be based on actual hours worked at the approved hourly rates, up to the NTE amount.
• Invoices shall itemize hours worked by task, staff member, and billing rate and must be supported by sufficient documentation to meet HCD reimbursement and recordkeeping requirements.
Budget Flexibility
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The Town anticipates that compliance support needs may vary over the course of the project.
The selected firm must demonstrate the ability to:
• Adjust staffing levels and effort in response to project demands, and • Provide compliance services efficiently while remaining within the approved NTE amount.
Cost Reasonableness
All proposed costs must be reasonable, necessary, and allowable in accordance with:
• The HCD Standard Agreement,
• The HCD DR-Workforce Policies & Procedures Manual, and • Applicable federal and state grant requirements.
4) FORMAT FOR PROPOSALS
Responses to the Request for Proposals must be made according to the requirements set forth in this section, both for content and for sequence. Failure to adhere to these requirements, or inclusion of conditions, limitations or misrepresentations in a response may be cause for rejection of the submittal. Use 8-1/2” x 11” sheets (fold outs are acceptable for charts, etc.). Type size must be large enough to be easily legible, but shall not be smaller than 10 point. The Town shall receive all Submissions no later than Wednesday February 11 by 5pm.
a) The response shall include a cover letter, a table of contents and all items listed below and shall be in the following format:
• Submit an electronic copy directed only to Brian Solecki at [email protected]. Vendors are encouraged to keep their submittals to less then 10MB in size to ensure delivery.
• The Town shall receive all submissions no later than 5:00PM, February 11, 2026 • Submissions shall be in the order noted below.
• Submissions may also include color and fold out charts and graphs.
Mandatory Content and Sequence of Submittal:
i) Cover Letter shall be a maximum two-page Cover Letter and introduction, and shall include the name and address of the respondent submitting the proposal, together with the name, address and telephone number of the contact person who will be authorized to make representations for the respondent, the respondent's federal tax ID number and a list of subcontractors, if any.
ii) Table of Contents shall be a detailed Table of Contents and shall include an outline of submittal, identified by sequential page number and by section reference number and section title as described therein.
iii) Respondent’s Experience Summary shall be a maximum of eight pages (not including 114
Request for Proposal Town of Paradise Page 7 of 14
resumes) in length and shall describe the respondent’s experience in writing similar strategic plans or studies. A resume(s) should be included for any key personnel to be assigned to this project. The proposal shall also include the timeline for completing all required tasks. Describe related past projects completed along with a discussion comparing similarities with this proposed project.
This section shall also contain a comprehensive list of references preferably including municipalities or government agencies wherein similar services were performed. At a minimum, the following information must be included for each client reference:
• Client name, address, contact person name, telephone number, fax number and email address.
• Detailed description of services provided similar to the services outlined in the Draft Scope of Work.
iv) Firm Capabilities shall be a maximum of six pages entitled “Firm Capabilities”, and shall include a description of the proposing Respondent’s resources for successfully developing and completing this project. (Resources can include firm’s stability, staffing, support services, product quality/availability, method of delivery, etc.) v) Cost shall detail the cost portion of the proposal. Respondent shall provide pricing based on the expected services provided. Respondent shall provide an itemized breakdown by tasks and deliverables. Prices quoted shall be valid for at least ninety (90) days following the proposal submission deadline and if a contract is entered into as a result of this RFP, shall become fixed for the term of the contract.
If an hourly rate is quoted, the anticipated total number of hours should be included along with a not-to-exceed price for the project.
vi) Draft Scope of Work shall be identified as “Attachment III – Scope of Work” for incorporation in the Model Contract as the final contract to be awarded to the successful respondent. This is the document in which the proposing respondents are requested to describe the work they will perform to complete this project. Should there be any tasks that are expected to be performed by the Town, these should also be clearly described as Town tasks in the Draft Scope of Work. If the proposing respondent included a not-to-exceed price in the proposal, proposed billing rate for all reimbursable expenses should be included in the Draft Scope of Work. 5) SELECTION PROCESS
A selection team comprised of Town Staff will evaluate the proposals and make a recommendation to Paradise Town Council for award. The criteria for selecting the firm is provided below:
1) Reputation and Experience. Does the contractor have a reputation of being reliable, delivering on schedule, and performing tasks to the satisfaction of its clients? Does the contractor have sufficient experience in the work required? This will primarily be based on references and the background section of Contractor Capabilities, unique 115
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qualifications you present in Firm’s Experience Summary, but may also be based upon any information the Town may have first-hand or from a reliable source. (2) Capability and Availability of Staff. Does the designated firm have the qualified and experienced staff needed to perform this job within the timeline provided? This will primarily be based upon the staff presented, their qualifications, experience, resumes and personal references, but may also be based upon any information the Town may have first-hand or from a reliable source.
(3) Understanding Project Deliverables. Does the firm understand the issues and has it developed a relevant and effective approach? This will primarily be based upon the work plan you submit. It may also be based upon references and how they describe your approach, product, work style and ethics.
(5) Cost. Is the cost reasonable for the proposed task, and is the cost within the budget for this project?
(6) Previous Works Excerpts. Does the firm’s demonstrated experience exhibit a professional quality? This will primarily be based upon the example work cited, your website and any other representation of your firm in terms of professional caliber. (7) Overall Impression. This category will be a composite of each Panel member’s comprehensive assessment and opinion of the entire presentation by your firm. 6) SUBMITTAL EVALUATION
Overall criteria used to evaluate responses may include:
Criteria Weight
Reputation & Experience 25%
Capability & Availability of Staff 20%
Understanding Project Deliverables 20%
Cost 15%
Previous Work Excerpts 15%
Overall Impression 5%
Total: 100%
Selection may consist of two levels of review. Level I will consist of evaluating the proposals for the purpose of establishing the most qualified respondents. The selection team may choose to interview the top scoring proposals to make a final decision. The interview may be conducted virtually.
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The Town may discuss the proposals and negotiate modifications of the proposal, draft scope of work, terms and conditions and pricing with the prospective firms as a part of the selection process.
7) RULES OF PROCUREMENT
Anticipated Time-Line
Event Anticipated Date/Time (Subject to Change)
Solicitation Publication January 15, 2026
Final Date to Summit Questions and Requests for Clarification January 29, 2026, at 5:00pm Questions Answered via Addendum(s) February 3, 2026
RFP Submittals Due February 11, 2026, at 5:00pm
Preliminary Evaluation Completed February 20, 2026
Presentation/Demonstration (if desired) February 23-25, 2026 Evaluation Completion February 27, 2026
Award of Contract March 11, 2026
Town Contact Information
Any and all communication regarding this Solicitation shall be in email and directed to:
Brian Solecki
Recovery and Economic Development Project Manager
Town of Paradise
5555 Skyway
Paradise, CA 95969
530.872.6291 x 165
[email protected]
This person will serve as the Town’s contact person for this project who will also respond directly for questions and inquiries during the solicitation. Do not contact other Town personnel or selection committee members regarding this project or the selection procedures.
Firms interested in participating in this solicitation are encouraged to register at the Public Purchase website: www.publicpurchase.com.
Questions:
Questions and requests for clarification may only be submitted by e-mail. Verbal and phone inquiries will not be answered. All questions and requests for clarification shall be submitted no later than 01/29/26 at 5:00 pm. The Town will provide answers and clarifications via 117
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publicpurchase by 02/3/26 at 5pm.
8) TOWN NOTICES
All proposing firms responding to this RFP should note the following:
a) All work performed for Town of Paradise, including all documents associated with the project, shall become the exclusive property of Town of Paradise. b) The selected firm is expected to perform and complete the project in its entirety. c) Any and all costs including travel, arising from development and delivery of a response to this RFP incurred by any proposing firm shall be borne by the firm without reimbursement by Town of Paradise.
d) The selected Respondent shall remain an independent Contractor, working under his/her own supervision and direction and is not a representative or employee of Town of Paradise. The Respondent agrees to file tax returns and pay all applicable taxes on amounts paid pursuant to this Contract.
e) The opening of proposals in response to this Solicitation is not subject to attendance by the general public. This restriction is necessitated by the fact that the contract award is subject to negotiations, and it would be unfair for competing companies to know the prices quoted by one another.
f) The successful Respondent must be prepared to begin work promptly following execution of the contract and is expected to complete the project in its entirety. g) Issuance of this Solicitation in no way constitutes a commitment by the Town to award a contract. If the Town determines it is in its best interest to do so, no Respondent may be selected and no contract may be executed.
h) Upon acceptable negotiations and contract award, the Respondent shall be required to execute the standard Town Contract as provided in Exhibit A and comply with Town insurance requirements. The Town may modify the contractual requirements of the contract prior to execution of a contract for services. i) The Town reserves the right to request additional information from Respondents that have submitted a response to this Solicitation and to enter into negotiations with more than one Respondent should a contract be awarded or to award a purchase order or contract to the Respondent(s) with the most favorable quotation without conducting negotiations. The Town reserves the right to award more than one contract if it is in the best interest of the Town.
j) The Town reserves the right to reject any or all submittals received if the Town determines that it is in its best interest to do so. Further, the Town may cancel or amend this 118
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Solicitation at any time and may submit similar solicitations in the future. k) The Town may reject any submittal that does not meet all of the mandatory requirements of this Solicitation, is conditional or is incomplete.
l) The Town may request clarification of any submitted information and may request additional information on any or all responses provided and may waive minor inconsistencies deemed to be irrelevant.
m) Firms that submitted a proposal in response to an RFP but were unsuccessful in their attempt to obtain a contract or recommendation for contract award may request a debriefing to learn the general reasons for selection of a competitor for contract award.
Requests for debriefings shall be directed to Brian Solecki at [email protected]
n) Firms that have received a debriefing, but continue to feel aggrieved in connection with the solicitation or award of a contract may submit a protest to the Town Clerk, 5555 Skyway Paradise, CA 95969. All protests must be made in writing, signed by an individual authorized to sign the submitted proposal, and must contain a statement of the reason(s) for the protest: citing the law, rule, regulation or procedure on which the protest is based.
Respondent’s capabilities, project characteristics and/or pricing features that were not included in the firm’s proposal shall not be introduced during the protest process. The protest shall be submitted within seven (7) working days after such aggrieved firm knows or should have known of the facts giving rise thereto or within seven working days following the debriefing.
o) The withdrawal of any submittal must be made in writing prior to the required submission date and time, and must be signed by an authorized representative of the firm. An error in the submission may cause the rejection of that submittal. However, the firm may reissue a new or modified submittal prior to the date and time required for submission.
9) DISCLOSURE OF INFORMATION
All information and materials submitted to the Town in response to this RFP may be reproduced by the Town for the purpose of providing copies to authorized Town personnel involved in the evaluation of the proposals, but shall be exempt from public inspection under the California Public Records Act until such time as a Contract is executed. Bid awards are a matter of public record. Once a Contract is executed, proposals submitted in response to this RFP are subject to public disclosure as required by law. Your submission of a proposal is considered your consent to the Town’s disclosure of the proposal. The Town shall not be liable for disclosure of any information or records related to this procurement. 119
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Exhibit A
INSURANCE REQUIREMENTS FOR PROFESSIONAL SERVICES
Insurance Requirements
The Contractor, in advance of performing activities on the work under the Agreement between the Town and the Contractor, shall, at no expense to the Town, obtain the following insurance policies:
The Contractor shall procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Contractor or Contractor’s agents, representatives, employees or subcontractors.
If applicable to Contractor, coverage shall be at least as broad as:
1. Commercial General Liability (CGL): Insurance Services Office 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 or the general aggregate limit shall be twice the required occurrence limit.
2. Automobile Liability: Insurance Services Office Form Number CA 0001 covering Code 1 (any auto), with limits no less than $2,000,000 per accident for bodily injury and property damage.
3. Workers' Compensation: Insurance as required by the State of California, with Statutory Limits, and Employers' Liability insurance with a limit of no less than $1,000,000 per accident for bodily injury or disease.
4. Error and Omission Insurance: $1,000,000 in coverage.
Any deductibles or self-insured retention must be declared to and approved by the Town. At the option of the Town, either: the insurer shall reduce or eliminate such deductibles or selfinsured retention as respects the Town, its officers, officials, employees and volunteers; or the Contractor shall provide a financial guarantee satisfactory to the Town guaranteeing payment of losses and related investigations, claim administration and defense expenses.
The general liability and automobile liability policies shall contain, or be endorsed to contain, the following provisions:
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1. The Town, its officers, officials, employees, and volunteers shall be covered as additional insured with respect to liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of the contractor; and with respect to liability arising out of project work or operations performed by or on behalf of the Contractor including materials, parts or equipment furnished in connection with such project work or operations. General liability coverage can be provided in the form of an endorsement to the Contractor’s insurance, or as a separate owner’s policy.
2. For any claims related to this work, the Contractor’s insurance coverage shall be primary insurance as respects the Town, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the Town, its officers, officials, employees, or volunteers shall be excess of the Contractor’s insurance and shall not contribute with it.
3. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled by either party, except after thirty (30) days’ prior written notice by certified mail, return receipt requested, has been given to the Town.
Insurance shall be placed with insurers with a current A.M. Best’s rating of no less than A:VII.
Contractor shall furnish the Town with original certificates and amendatory endorsements effecting coverage required by this clause. The endorsements should be on forms provided by the Town or on other than the Town’s forms, provided those endorsements or policies conform to the requirements. All certificates and endorsements are to be received and approved by the Town before work commences. The Town reserves the right to require complete, certified copies of all required insurance policies, including endorsements effecting the coverage required by these specifications at any time.
Contractor shall include all subcontractors as insured under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverage for subcontractors shall be subject to all the requirements stated herein.
All liability insurance policies shall be maintained for the duration of work construction and for 3 years after completion of the work.
Contractor hereby agrees to waive rights of subrogation that any insurer of Contractor may acquire from Contractor by virtue of the payment of any loss. Contractor agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation. 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. 122
1 MEMORANDUM OF UNDERSTANDING
BETWEEN THE TOWN OF PARADISE, BUTTE COLLEGE,
NORTHERN RURAL TRAINING AND EMPLOYMENT CONSORTIUM,
PARADISE UNIFIED SCHOOL DISTRICT, ALLIANCE FOR WORKFORCE
DEVELOPMENT INC,
VALLEY CONTRACTOR WORKFORCE FOUNDATION, AND ANY FUTURE
ADDED PROJECT PARTNERS
This Memorandum of Understanding (“MOU” or “Agreement”) between the Town of Paradise (“Town”) Butte College (“Butte College”), Paradise Unified School District (“PUSD”), Northern Rural Training and Employment Consortium (“NoRTEC”), Alliance for Workforce Development (AFWD) and Valley Contractor Workforce Foundation (“VCWF”) is made regarding the establishment of a workforce training program to be placed at the Paradise High School campus and/or other Butte County locations to focus on resilient and other related workforce needs, drawing from the region’s unique experiences in rebuilding after the 2018 Camp Fire. The parties to this agreement are sometimes referred to herein as a “Party” or collectively as “Parties.” This Agreement is made on ____, 2026 (“Effective Date”).
WHEREAS, the Town of Paradise has applied for and been awarded funding through CDBG-DR Workforce Development to pay for the costs associated with the establishment of a workforce training center entitled Paradise Resilient Infrastructure and Sustainable Education Center (“Paradise RISE Center”) to serve high school students and adults; and
WHEREAS, the Paradise RISE Center would be located on the Paradise High School campus as well as other necessary Butte County locations and would include training programs and support services provided through VCWF, AFWD, Butte College, PUSD and other relevant partners identified as beneficial, as well as supportive services and career assistance through NoRTEC and Alliance for Workforce Development; and
WHEREAS, the Parties share a mutual interest in collaborating to ensure that there are sufficient educational opportunities for high school students and adults in the Paradise community to provide workforce training and education in areas of unique significance to the Paradise community; and WHEREAS, the Parties agree to work together in a collaborative effort for the success of the Paradise RISE Center.
NOW THEREFORE THE PARTIES AGREE AS FOLLOWS:
Section 1. The recitals above are true and correct and are incorporated as material terms of this Agreement as if fully set forth herein.
Section 2. The Town has applied for and been awarded a grant through the Community Development Block Grant – Disaster Recovery (“CDBG-DR”) program to fund the Paradise RISE Center, as outlined above.
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2 Section 3. Subject to the already approved and authorized CDBG-DR grant funding, Butte College, PUSD, NoRTEC, AFWD and VCWF agree to provide the programs and services as outlined in Exhibit A to meet the timelines, milestones, and goals as outlined therein.
Section 4. Upon providing the programs and services as outlined in Exhibit A, the Parties will apply to the Town for reimbursement from the CDBG-DR grant funds received by the Town, subject to any limitations imposed by the terms and conditions of the grant standard agreement (Exhibit C) from which such funding originates. The Parties agree to provide any documentation required by the Town and/or the CDBG-DR grant. Reimbursement process shall be followed as outlined in Exhibit B.
Section 5. The Town shall not be responsible for any reimbursements to the Parties beyond the CDBG-DR funding received through the grant. In the event that the grant funds are exhausted, the Town will notify the Parties as soon as practicable.
Section 6. Each party shall indemnify, defend, protect, hold harmless, and release the others, their officers, agents, and employees, from and against any and all claims, loss, proceedings, damages, causes of action, liability, costs, or expense (including attorneys’ fees and witness costs) arising from or in connection with, or caused by any act, omission, or negligence of such indemnifying party or its agents, employees, contractors, subcontractors, or invitees.
Section 7. This agreement may not be assigned by any Party to any third party without the express written consent of the other Parties.
Section 8. This Agreement may be terminated at any time by any Party with thirty (30) days’ advance notice provided to the other Parties.
Notices to the Town shall be provided to:
Town Manager
Town of Paradise
5555 Skyway
Paradise, CA 95969
Notices to Butte College shall be provided to:
Jessica A. Snelling, MBA, Vice President for Administrative Services & Linda Zorn, Executive Director, Economic and Workforce Development Butte-Glenn Community College District
2480 Notre Dame Blvd.
Chico, CA 95928
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3 Notices to Northern Rural Training and Employment Consortium shall be provided to:
Wendy Zanotelli, Executive Director
NoRTEC Workforce Development Board
11 Ilahee Ln.
Chico, CA 95973
Notices to Paradise Unified School District shall be provided to:
Betsy Amis, Superintendent
Paradise Unified School District
6696 Clark Rd.
Paradise, CA 95969
Notices to Valley Contractor Workforce Foundation shall be provided to:
Melissa Crick, Executive Director
Valley Contractors Workforce Foundation
951 E. 8th St.
Chico, CA 95928
Notices to Alliance for Workforce Development Inc, shall be provided to:
Kristina Zuazua, Executive Director
PO BOX 3750
Quincy, CA 95971
Section 9. This Agreement is the entire agreement between the parties, there are no oral agreements. No amendment to this Agreement shall be valid unless in a writing signed by all Parties.
Section 10. If any provision of this agreement that is deemed by a court of competent jurisdiction to be illegal, invalid, void or unenforceable, the remaining portions shall remain in full force and effect.
SO AGREED.
For the Town: For Butte College:
Date: Date:
By: _________________________ By: ______________________________ Town Manager Jessica A Snelling, VP for Administrative Services Town of Paradise Butte College
For Paradise Unified School District: For Valley Contractor Workforce Foundation:
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4 Date: Date:
By: _________________________ By: ______________________________ Betsy Amis, Superintendent Melissa Crick, Executive Director Paradise Unified School District Valley Contractor Workforce Foundation For Northern Rural Training and Employment Consortium:
Date:
By: _________________________
Michael Cross, Executive Director
Northern Rural Training and Employment Consortium
For Alliance for Workforce Development Inc:
Date:
By: _________________________
Kristina Zuazua, Executive Director
Alliance for Workforce Development Inc
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5 Exhibit A – Budget
Overall Budget Update:
Below you will find the updated program budget. Numbers have been updated to reflect current program conditions after the delay in the planned launch of the program. It is expected that the facilities improvements budget will decrease significantly as actual improvements are identified in early 2026.
Previous New Change
AFWD & Nortec $5,400,000.00 $3,096,250.00 -$2,303,750.00 TOP $2,600,000.00 $2,600,000.00 $0.00
VCWF $842,222.00 $946,222.00 $104,000.00
PUSD Programming $585,000.00 $730,000.00 $145,000.00
Butte College $2,492,775.00 $3,444,971.89 $952,196.89
PUSD Improvements $5,948,378.00 $5,948,378.00 $0.00
Future Partners $0.00 $1,000,000.00 $1,000,000.00
Total $17,868,375.00 $17,765,821.89 -$102,553.11
Training Program:
Training programs within the facility will be administered by several local partners, including Paradise Unified School District, Butte College, and the Valley Contractor's Exchange. NoRTEC and the Alliance for Workforce Development will provide supportive services for outreach, enrollment and job placement assistance. Additional training partners could be identified later in the project.
Paradise Unified School District:
Public Facility Improvements:
The project aims to update an existing building on Paradise High School campus located at 5911 Maxwell Drive in Paradise. The building is 10,100 square feet, and currently consists of CTE training space with some equipment, as well as classroom space. The interior of the space would be rehabilitated to current training standards for the training programs intended to occupy the space. The scope of work for the facility improvements would update the facility with for current equipment used in welding, sheet metal work, plumbing, electrical, and construction/wood working training. This budget is expected to decrease significantly as actual improvements are identified.
PUSD Site Improvements Auto Shop/Welding Rehab $2,687,639.00 PUSD Site Improvements Construction Tech Rehab $1,683,182.00 PUSD Site Improvements Shop/Classroom Rehab $1,577,557.00 Total Estimated Partner Cost $5,948,378.00
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6 Currently PUSD offers training for students in the trades fields. The training takes place in Construction and Agriculture Programs. At this time PUSD employs one full time teacher and only students from Paradise High School are eligible to enroll in these training programs. It is the intention of PUSD to hire an additional staff member, and purchase equipment to allow for the expansion of their existing program for High School students, and provide the necessary facility space for other programs that will utilize the facility for adult learners. offered to Paradise High School students are free, with Paradise High School students documenting the LMI status of enrollees. These programs would be offered at no cost to income eligible adult students who demonstrate LMI eligibility.
PUSD Staffing (Additions) $150,000.00
PUSD Administrative Staffing $180,000.00
PUSD Training Equipment $400,000.00
Total Estimated Partner Cost $730,000.00
Butte College:
The intent of these programs is to harness Paradise High School students into local programs and jobs, to introduce them to pathways into higher education at Butte College, and to provide opportunities for other area adult learners on evenings, weekends, and summers.
Butte College CNA $101,492.00
Butte College ITEC-55 $254,858.00
Butte College Utility Line Clearance/Arborist Training $1,270,572.00 Butte College Utility Vegetation Management Pre-Inspector Class $548,819.00 Butte College Heavy Equipment Class $909,985.00
Project Management $359,245.89
Total Estimated Partner Cost $3,444,971.89
Valley Contractor Workforce Foundation (VCWF):
Will offer program courses that provide hands-on-tools construction training and mentorship to engage, and employ them to build homes, businesses and communities. Coursework will:
• Provide a local training option in industry-required safety trainings such as Title 8, OSHA and Cal-OSHA.
• Support and upskill the existing construction workforce in underrepresented specialty trades to meet the increased demand for construction industry workers. • Ensure the next generation construction workforce has the skills to secure a career with a living wage salary.
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7 VCWF Administrative Salaries $96,000.00
VCWF Instructor Salaries $216,000.00
VCWF Carpentry, Electrical, Plumbing Training Equipment $322,222.00 VCWF Staffing and Administrative Costs $312,000.00
Total Estimated Partner Cost $946,222.00
Staffing needs: The program would require a full-time instructor as well as an administrator for program oversite. Additionally, we would bring in Industry professionals to aid in hands on training.
Alliance for Workforce Development (AFWD) & NorTEC (Northern Rural Training and Employment Consortium)
Alliance for Workforce Development, Inc. (AFWD), in partnership with NoRTEC, will implement a comprehensive workforce development project serving approximately 500 eligible participants over a 24- month project period using Community Development Block Grant – Disaster Recovery (CDBG-DR) funds administered by the Town of Paradise and overseen by the California Department of Housing and Community Development (HCD).
The project is designed to support workforce recovery efforts in disaster-impacted and underserved areas of Butte County by reducing barriers to training and employment, improving access to services, and facilitating placement into unsubsidized employment. Services will include participant intake and eligibility verification, individualized case management, supportive services, training coordination, and employment placement through On-the-Job Training (OJT) and Work Experience (WEX) opportunities.
To ensure strict compliance with HCD CDBG-DR administrative, reporting, monitoring, and outreach requirements, NoRTEC will serve as a subcontractor responsible for grant-specific administrative oversight, reporting to the Town, compliance monitoring, and all required public outreach activities. This structure establishes clear separation of duties between program implementation and grant compliance.
Personnel – Direct Program (AFWD) $275,000.00
Personnel – Support / Administrative (AFWD) $100,000.00 Fringe Benefits (35%) $131,250.00
Software (MyOneFlow – 2 years) $60,000.00
Supportive Services $600,000.00
Training Support Services $200,000.00
OJT / WEX Placements $1,125,000.00
Mobile Workforce Services Unit $450,000.00
Operating & Supplies $75,000.00
NoRTEC Subcontract $80,000.00
Total Estimated Partner Cost $3,096,250.00
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8 Town of Paradise Administration: $2,600,000
The Town of Paradise will be responsible for all grant administration. These tasks will be performed by Town Staff and consultants procured to partner with the Town and partners.
Future Partners: $1,000,000
Due to current budget changes, it may be possible to add future training partners to the program. Future partners beneficial to the goals of the program would be identified by Town staff and current partners.
New program providers would only added to the MOU and program schedule after being approved by the Town Council at a future meeting.
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9 Exhibit B – Reimbursement & Monitoring
I. Purpose
The intent of this Exhibit B is to ensure the effective, efficient, and compliant implementation of the CDBG-DR Town of Paradise Workforce Development Project. This exhibit establishes responsibilities and procedures for financial and programmatic management, reimbursement, documentation, and oversight. All parties agree to maintain compliance with all applicable federal, state, and local statutes, regulations, and policies as outlined in Exhibit C – Paradise Rise Center Standard Agreement
II. Authority
This overall MOU is entered into pursuant to the statutory and regulatory authority of the Community Development Block Grant – Disaster Recovery (CDBG-DR) Program, as administered by HUD and the California Department of Housing and Community Development (HCD). The terms of this MOU are subject to all applicable federal and state laws, including procurement standards, cost allowability, labor standards, civil rights requirements, and record retention rules.
III. Reimbursement Roles and Responsibilities
A. Town of Paradise
The Town shall:
1. Administer the reimbursements of the project in accordance with all applicable laws, regulations, and program requirements.
2. Provide technical assistance through a program compliance consultant available to the Partner regarding compliance, documentation, and eligible activities.
3. Provide a Project Compliance Consultant to work with any partner to review reimbursement requests for completeness, accuracy, eligibility, and compliance with CDBG-DR cost principles.
4. Accept all reimbursement requests complete and ready for submission.
5. Disburse funds to the Partner within thirty (30) business days of receiving complete reimbursement request.
6. Notify the Partner promptly of deficiencies, required corrections, or disallowed costs identified by the Town, HCD, HUD, or their auditors.
7. Maintain oversight and monitoring of Project implementation, including both financial and programmatic compliance.
8. Submit expenses to HCD for reimbursement to the Town.
9. Report to HCD on Partner progress, expenditures, and outcomes as required.
B. Partner Agency
The Partner shall:
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10 1. Carry out all Project activities in compliance with applicable federal, state, and local requirements, including procurement, financial management, and labor standards (DavisBacon, if applicable).
2. Ensure that all expenditures are necessary, reasonable, allocable, and adequately supported per 2 CFR Part 200.
3. Work with Town Compliance Consultant for any needed support to maintain accurate and complete records, including but not limited to: invoices, receipts, time and effort certifications, payroll and fringe documentation, procurement solicitations and contracts, participant eligibility data, and performance outcomes.
4. Submit reimbursement requests to the Town no less than monthly (unless otherwise approved in writing), with all required supporting documentation.
5. Respond to Town requests for corrections or additional information within ten (10) business days.
6. Retain all financial and programmatic records for at least five (5) years after grant closeout, or longer if required by federal/state law.
7. Ensure subrecipients, contractors, or consultants engaged by the Partner also comply with CDBG-DR requirements.
8. Repay any funds determined to be unsupported, ineligible, or disallowed within thirty (30) days of written notice from the Town.
9. Immediately report any suspected fraud, waste, abuse, or conflict of interest to the Town.
IV. Reimbursement Process and Timelines
1. Reimbursements shall be made strictly on a cost-incurred basis; no advance payments are permitted.
2. All reimbursement requests must include:
o A summary cover sheet of costs;
o Detailed expenditure reports;
o Copies of invoices/receipts;
o Proof of payment (e.g., cancelled checks, ACH confirmations); o Applicable payroll records and time certifications; and o Documentation of procurement compliance, if applicable. o Any other documents identified by Compliance Consultant through technical assistance to partners.
3. The Partner acknowledges that reimbursement is contingent upon:
o Submission of a complete, compliant request;
o Approval by the Town Financial Team;
4. The Town shall not be liable for reimbursement delays outside its control.
5. Ineligible or disallowed costs identified by HCD, HUD, or audit shall be the sole responsibility of the Partner.
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11 V. Monitoring, Audits, and Compliance
1. Both parties agree to fully cooperate with monitoring, audits, inspections, or reviews conducted by the Town, HCD, HUD, HUD OIG, the U.S. Government Accountability Office (GAO), or any other authorized entity.
2. The Partner shall make all records, staff, and facilities available for review upon request.
3. Findings of non-compliance may result in corrective actions, suspension of reimbursements, or repayment obligations.
4. The Partner is subject to the federal Single Audit Act if annual expenditures of federal funds exceed $750,000. A copy of the Partner’s annual audit shall be submitted to the Town within 30 days of issuance.
5. Both parties agree to maintain adequate internal controls to prevent misuse of funds and to ensure compliance with all applicable requirements.
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12 Exhibit C – Project Standard Agreement between the Department of Housing and Community Development and the Town of Paradise.
If approved, this updated MOU document will be sent to HCD and the standard agreement will be updated with the language contained in this document. The updated standard agreement will be attached before final approval of this MOU by partners. 134
Town of Paradise
Council Agenda Summary
Date: January 13, 2026
Agenda Item: 6(h)
ORIGINATED BY: Colette Curtis, Recovery and Economic Development Director
REVIEWED BY: Mike O’Brient, Interim Town Manager
SUBJECT: Utility Box Mural Project Art Use
LONG TERM
RECOVERY PLAN:
Yes
COUNCIL ACTION REQUESTED:
1. Give direction to staff on disposition of original art from phase 1 of the Utility Box Mural Project. (ROLL CALL VOTE)
Background:
In August 2025, 6 pieces of artwork were selected for phase 1 of the Paradise Utility Box Mural Project and were installed on 6 utility boxes in Town. The goal of this project was to increase public art in Paradise and showcase local artists. Phase 2 of this project, which will install artwork on the remaining 9 utility boxes, is underway now. The guidelines for this project state that all original artwork selected for installation is owned by the Town of Paradise.
Analysis:
With Phase 1 complete, the original artwork from the 6 installations is in the Town’s possession.
There are several options for the disposition of this artwork:
1. Frame and display the artwork at Town buildings, such as Town Hal, the BRC, Animal Shelter, Police Station, Fire Stations, etc.
2. Donate the artwork to a local organization such as the Paradise Art Center, Gold Nugget Museum, or other group.
Council may also direct staff on an alternative disposition.
Financial Impact:
Option 1, framing the artwork, would require approximately $2,500 to frame the pieces. There is no cost associated with donating the pieces to local organizations. 135
Town of Paradise
Council Agenda Summary
Date: January 13, 2026
Agenda Item: 6(i)
ORIGINATED BY: Aimee Beleu, Finance Director/Town Treasurer REVIEWED BY: Michael O’Brien, Town Manager
SUBJECT: Development Impact Fees Report for the Town of Paradise for Fiscal Year Ended June 30, 2025
COUNCIL ACTION REQUESTED:
1. Adopt Resolution No. 2026-__, “A Resolution of the Town Council of the Town of Paradise, California, Reporting Unexpended Development Impact Fees in Accordance with Government Code Section 66006.” (ROLL CALL VOTE) Background:
In April 1995, the Town of Paradise adopted a Development Impact Fee Program to address the cost of facilities and capital needs generated by residential and commercial new development. The purpose was to ensure that new growth paid its own way and didn’t burden existing revenue sources. In January 2001, the program and associated fees were revised and updated. The program has five basic elements:
Fire Facilities, Training and Equipment
Law Enforcement Facilities, Training and Equipment
Traffic Control Facilities
Streets and Thoroughfares
Drainage Facilities
In accordance with Section 66006 of the Government Code, the Town is required to prepare an annual report related to development impact fees. This report must contain the following information and be available to the public 15 days prior to review at a public meeting:
1. A brief description of the type of fee in the fund.
2. The amount of the fee.
3. The beginning and ending amount of each fund.
4. The amount of the fees collected, and interest earned.
5. An identification of each public improvement on which fees were expended and the percent of the public improvement funded with the fees.
6. An identification of approximate dates by which the construction of the public improvements will commence if the Town determines that sufficient funds have been collected to complete the project.
7. A description of each interfund transfer or loan made from the fund (if any).
8. The amount of refunds made of fees collected (if any). 136
Analysis:
Staff has completed a resolution with attached addendum, which includes the required legal information for review and adoption. It reports on development impact fees for the fiscal year ended June 30, 2025. Staff continues to monitor each impact fee account balance and look for funding opportunities for the projects identified in the 2001 study.
Financial Impact:
There is no financial impact to the Town of preparing and presenting these development impact fee reports.
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TOWN OF PARADISE
RESOLUTION NO. 2026-___
A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF PARADISE, CALIFORNIA,
REPORTING UNEXPENDED DEVELOPMENT IMPACT FEES IN ACCORDANCE WITH GOVERNMENT CODE SECTION 66006
WHEREAS, Government Code section 66006 requires the Town to annually disclose to the public information concerning development impact fees it has received in connection with the approval of development projects; and
WHEREAS, pursuant to Government Code Section 66006, the Town made the information pertaining to the funds and improvements relating to development impact fees available to the public on December 30, 2025 after mailing notice thereof to any interested party who has filed a written request with the Town Clerk for such information.
NOW, THEREFORE, BE IT RESOLVED by the Town Council of the Town of Paradise as follows:
Section 1. Pursuant to Government Code section 66006, the Town Council made available to the public all required information for fiscal year ended June 30, 2025 as stated in the reports attached to this resolution.
Section 2. After considering the available information and all written and oral evidence provided to it, the Council hereby finds that impact fees collected by the Town of Paradise are proper and allocated in a manner that maximizes economic growth. Further, the Council finds that the development impact fees in all material respects are collected, allocated and accounted for in compliance with the requirements of the Government Code.
PASSED AND ADOPTED by the Town Council of the Town of Paradise this 13th day of January 2026 by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
__________________________
Steve Crowder, Mayor
ATTEST:
By: _________________________________
Melanie Elvis, CMC, Town Clerk
APPROVED AS TO FORM:
By: ___________________________________
Scott E. Huber, Town Attorney
138
Town of Paradise
Statement of Revenues, Expenditures, and Change in Fund Balances Streets and Thoroughfares (Fund 2510)
For Fiscal Year Ended June 30, 2025
July 1, 2024 -
June 30, 2025
Beginning Balance 729,707.28
Revenues:
Impact Fees Collected: * 12,142.47
Interest and Other Earnings: -
Total Revenues: 12,142.47
Expenditures: -
Total Expenditures: -
Ending Fund Balance 741,849.75
* Fees Calculated and Collected According to Resolution No. 01-04 Streets and Thoroughfares Impact Fees are necessary and imposed on new development in order to mitigate the impact of increased traffic on the Town's roadways. The originally adopted Management Services Institute Development Impact Fee Report indicates that street shoulder widening, street widening, road extension and connections will be necessary to keep traffic moving smoothly throughout Town as development continues. In January 2001 the schedule of development impact fees projects were updated and revised. 139
140
Town of Paradise
Statement of Revenues, Expenditures, and Change in Fund Balances Traffic Control Facilities (Fund 2520)
For Fiscal Year Ended June 30, 2025
July 1, 2024 -
June 30, 2025
Beginning Balance 82,960.61
Revenues:
Impact Fees Collected: * 964.46
Interest and Other Earnings:
Total Revenues: 964.46
Expenditures: -
Total Expenditures: -
Ending Fund Balance 83,925.07
* Fees Calculated and Collected According to Resolution No. 01-04 The Town's growth will impact the level of congestion on all of the Town's roadways which is the reason Traffic Control Facilities Impact Fees are necessary and imposed on new development. The originally adopted Management Services Institute Development Impact Fee Report further explains that construction of new signals will be needed to avoid congestion in the future. In January 2001 the schedule of development impact fees projects were updated and revised.
141
142
Town of Paradise
Statement of Revenues, Expenditures, and Change in Fund Balances Law Enforcement Facilities, Training and Equipment (Fund 2540) For Fiscal Year Ended June 30, 2025
July 1, 2024 -
June 30, 2025
Beginning Balance 31,529.35
Revenues:
Impact Fees Collected: * 1,694.49
Interest and Other Earnings: -
Total Revenues: 1,694.49
Expenditures:
Total Expenditures: -
Ending Fund Balance 33,223.84
* Fees Calculated and Collected According to Resolution No. 01-04 Law Enforcement Facilities Impact Fees are necessary and imposed on new development because future development will impact the Town's Police Department by requiring additional police officers and support staff, new equipment and vehicles and additional building space in order to maintain the same level of service. The originally adopted Management Services Institute Development Impact Fee Report supports this need.
Additional equipment and facilities are necessary to accommodate the increased public safety demands of development. In January 2001 the schedule of development impact fees projects were updated and revised. 143
144
Town of Paradise
Statement of Revenues, Expenditures, and Change in Fund Balances Fire Facilities, Training and Equipment (Fund 2550)
For Fiscal Year Ended June 30, 2025
July 1, 2024 -
June 30, 2025
Beginning Balance 44,383.61
Revenues:
Impact Fees Collected: * 1,398.28
Interest and Other Earnings: -
Total Revenues: 1,398.28
Expenditures: -
Total Expenditures: -
Ending Fund Balance 45,781.89
* Fees Calculated and Collected According to Resolution No. 01-04 Fire Facilities Impact Fees were imposed on new development because new development increases the demand on public safety facilities and fire equipment through increased calls for services as shown in the originally adopted Management Services Institute Development Impact Fee Report. Additional equipment and facilities are necessary to accommodate the increased public safety demands of development. In January 2001 the schedule of development impact fees projects were updated and revised. 145
146
Town of Paradise
Statement of Revenues, Expenditures, and Change in Fund Balances Drainage Facilities (Fund 2551)
For Fiscal Year Ended June 30, 2025
July 1, 2024 -
June 30, 2025
Beginning Balance 538,069.52
Revenues:
Impact Fees Collected: * 28,665.87
Interest and Other Earnings: -
Total Revenues: 28,665.87
Expenditures: 206,797.70
Total Expenditures: 206,797.70
Ending Fund Balance 359,937.69
* Fees Calculated and Collected According to Resolution No. 01-04 The Construction of flood control and storm drainage facilities is essential to the preservation of private property, public streets, curbs and other facilities. Drainage Facilities Impact fees are necessary and imposed on new development in order to build such facilities. The originally adopted Management Services Institute Development Impact Fee Report indicates that development will require the installation of additional storm drain lines and detention basins to handle increased runoff from developing areas. In January 2001 the schedule of development impact fees projects were updated and revised.
The expenditures for this period cover drainage work related to Disaster Recovery Road Rehabilitation and maintenance culvert replacements.
147
148
Town of Paradise
Council Agenda Summary
Date: January 13, 2026
Agenda Item: 6(j)
ORIGINATED BY: Aimee Beleu, Finance Director / Town Treasurer REVIEWED BY: Mike O’Brien, Interim Town Manager
SUBJECT: Fiscal Year 2023/24 Financial Statement Audit
COUNCIL ACTION REQUESTED:
Following the Town Council’s review of the Fiscal Year 2023/24 financial statement audit report, file the report, as submitted. (ROLL CALL VOTE)
Background:
Richardson & Company, LLP has completed the annual audit for Fiscal Year 2023/24. 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, 2025.
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 $282 million as compared to the prior year at $245 million. The Town’s unrestricted and restricted cash and investments increased to $213 million, primarily as a result of the Town’s change in investments, and inflow of reimbursements. Prior to extraordinary items, accounts and interest receivables, prepaid items, and the advance to the Successor Agency decreased to $1.4 million from $1.69 million in the prior year, which resulted primarily from an reduction in accounts receivable activity during the prior fiscal year. The Town's rebuilding efforts and capital projects resulted in increased total capital assets to $76 million compared to $62 million in the prior year.
The Town reports $20.4 million of pension liability and pension related net deferred use of resources to its activities as compared to $19.3 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.
149
Accounts payable increased to $6.4 million from $5.5 million in the prior fiscal year due to the increase in infrastructure construction for the rebuilding of the Town. Unearned revenues increased to $11.7 million from $6.7 million in the prior fiscal year. Unearned revenue sources include insurance claim advances, advances on grant funds awarded, retentions on grant reimbursements, and housing program insurance funds held for the 2018 Camp Fire. The Town's long-term liabilities due in more than one year increased to $50 million from $47.9 million in the prior year due primarily to investment losses on CalPERS plan assets and changes in staffing levels.
150
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 extraordinary items, the Town’s General Fund revenues increased by $7.2 million compared to the prior fiscal year. The primary drivers of this growth were higher interest earnings and unrealized gains on investments. Taxes and assessments continue to make up roughly half of all revenues and increased by $1.3 million. As the community enters the rebuilding phase of its regrowth, tax revenues are beginning to reflect both the rising population and the expanding property tax base.
Overall expenses were flat year over year, with notable increases in Public Safety and General Government. Capital Outlays declined this year as the Town has substantially completed the replenishment of assets lost in the 2018 Camp Fire.
The General Fund reported an ending balance of $205.9 million as of June 30, 2024, an increase of $1.9 million. Notably, the Town’s reserves have reached a level that no longer requires annual cash-flow borrowing to support operations. This marks a substantial improvement from seven years prior, when unassigned reserves were not available.
Capital Assets
Major capital asset additions for the year totaled $13.3 million, including $15.1 million in construction in progress, with a depreciation adjustment of $1.86 million. Significant infrastructure investments include substantial additions to both on- and off-system road projects, as well as continued pre-construction development for the Paradise Sewer Project.
Table 3 below shows the $75.77 million total capital assets, net of depreciation. 151
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 rates and increases in staffing.
Although the Town contributed towards the net pension liability as dictated by CalPERS, the net pension liability increased 5.9% 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 pages 6-9 of Compliance Reports are finding for the FY23-24.
1. The auditors identified weaknesses in the timing and completeness of year-end reconciliations and financial reporting processes.
2. Capital asset and construction-in-progress records were not fully reconciled to the general ledger on a timely basis.
3. Federal reporting, including the Schedule of Expenditures of Federal Awards, and the Single Audit were not completed and submitted within required timeframes.
During the FY 2023-24, the Finance Department experienced complete staff turnover, which impacted the timing and continuity of certain internal control processes. In response, management has implemented and is continuing to implement corrective actions to strengthen internal controls and reporting functions.
Corrective actions include the formalization of year-end close and reconciliation procedures, improvements to capital asset and construction-in-progress (CIP) tracking and reconciliation, and enhancements to processes supporting timely and accurate federal reporting. Management has engaged external technical support, clarified roles and responsibilities, and established oversight mechanisms to support full remediation. These actions are underway and are expected to be fully incorporated into regular operations during the current and upcoming fiscal years.
152
Financial Impact:
The action to receive and file the Fiscal Year 2023/24 audited financial statements does not result in a direct cost to the Town of Paradise. Implementation of certain recommendations may require additional staff resources and external professional services to support financial reporting, capital accounting, and compliance activities. Any associated costs will be managed within existing budget authority or brought forward for Council consideration as appropriate. 153
TOWN OF PARADISE
Audited Financial Statements and Supplemental Information June 30, 2024
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TOWN OF PARADISE
Audited Financial Statements and Supplemental Information June 30, 2024
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 .................................................................... 51 Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual (Budgetary Basis) – Camp Fire 2018 Fund ....................................................... 52 Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual (Budgetary Basis) – Loan Funds ....................................................................... 53 Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual (Budgetary Basis) – CalHOME Grants ............................................................. 54 Statement of Revenues, Expenditures and Changes in Fund Balances – Budget and Actual (Budgetary Basis) – CDBG Grants Fund .......................................................... 55 Schedule of the Proportionate Share of the Net Pension Liability and Schedule of Contributions to the Pension Plan – (Unaudited) ............................................................ 56 Schedule of Changes in Net OPEB Liability and Related Ratios (Unaudited) ......................................................................................................................................... 57 Schedule of Contributions to the OPEB Plan (Unaudited) ..................................................................... 58 156
TOWN OF PARADISE
Audited Financial Statements and Supplemental Information June 30, 2024
Table of Contents
COMBINING STATEMENTS AND INDIVIDUAL FUND
STATEMENTS AND SCHEDULES
Non-Major Governmental Funds:
Combining Balance Sheet – Nonmajor Governmental Funds ............................................................... 59 Combining Statement of Revenues, Expenditures and Changes in Fund Balances – Nonmajor Governmental Funds .............................................................................. 61 Agency Funds:
Combining Statement of Fiduciary Assets and Liabilities – Custodial Funds ................................................................................................................................................... 63 Combining Statement of Changes in Fiduciary Assets and Liabilities – Custodial Funds ................................................................................................................................ 64 157
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, 2024 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, 2024, 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. 158
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. 159
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 December 2, 2025 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.
December 2, 2025
160
TOWN OF PARADISE
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2024
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, 2024. 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 $282 million as compared to the prior year at $245 million. The Town’s unrestricted and restricted cash and investments increased to $213 million, primarily as a result of the Town’s change in investments, and inflow of reimbursements. Prior to extraordinary items, accounts and interest receivables, prepaid items, and the advance to the Successor Agency decreased to $1.4 million from $1.69 million in the prior year, which resulted primarily from an reduction in accounts receivable activity during the prior fiscal year. The Town's rebuilding efforts and capital projects resulted in increased total capital assets to $76 million compared to $62 million in the prior year.
The Town reports $20.4 million of pension liability and pension related net deferred use of resources to its activities as compared to $19.3 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.
Accounts payable increased to $6.4 million from $5.5 million in the prior fiscal year due to the increase in infrastructure construction for the rebuilding of the Town. Unearned revenues increased to $11.7 million from $6.7 million in the prior fiscal year. Unearned revenue sources include insurance claim advances, advances on grant funds awarded, retentions on grant reimbursements, and housing program insurance funds held for the 2018 Camp Fire. The Town's long-term liabilities due in more than one year increased to $50 million from $47.9 million in the prior year due primarily to investment losses on CalPERS plan assets and changes in staffing levels.
161
TOWN OF PARADISE
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2024
5 Table 2 highlights the Town’s change in net position for the fiscal years 2024 and 2023. Total revenues for 2024 increased significantly to $82.0 million, up from $44.7 million in 2023. This growth reflects substantial increases in both program and general revenues. Program revenues rose to $60.9 million, largely driven by capital contributions and grants of $31.2 million, while charges for services and operating contributions and grants also increased. General revenues totaled $21.2 million, up from $11.5 million, reflecting higher property taxes, motor vehicle in-lieu payments, and other general revenues, which were boosted by unrealized gains on investments and a transfer from Paradise Recovery and Operations funds.
Total program expenses increased to $45.0 million, compared to $27.6 million in 2023. The primary drivers of this increase were Community Development $21.0 million, Public Safety $14.0 million, and Streets $3.2 million, supporting ongoing rebuilding, infrastructure improvements, and asset replacements throughout the Town.
162
TOWN OF PARADISE
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2024
6 As a result, the Town’s net position increased by $37 million in 2024, compared to an increase of $19.9 million in the prior year. The prior year included $2.7 million in extraordinary items, which were absent in 2024, emphasizing the underlying growth in net position from operational and capital activities. 163
TOWN OF PARADISE
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2024
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 $213 million. Over 93% of this fund balance is assigned to the Long-Term Sustainability Plan and represents settlement proceeds paid to the Town by Pacific Gas & Electric Company for damages resulting from the 2018 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.
Exclusive of extraordinary items, the Town’s General Fund revenues increased by $7.2 million compared to the prior fiscal year. The primary drivers of this growth were higher interest earnings and unrealized gains on investments. Taxes and assessments continue to make up roughly half of all revenues and increased by $1.3 million. As the community enters the rebuilding phase of its regrowth, tax revenues are beginning to reflect both the rising population and the expanding property tax base.
Overall expenses were flat year over year, with notable increases in Public Safety and General Government.
Capital Outlays declined this year as the Town has substantially completed the replenishment of assets lost in the 2018 Camp Fire.
The General Fund reported an ending balance of $205.9 million as of June 30, 2024, an increase of $1.9 million. Notably, the Town’s reserves have reached a level that no longer requires annual cash-flow borrowing to support operations. This marks a substantial improvement from seven years prior, when unassigned reserves were not available.
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, Off-System Road Rehabilitation and Camp Fire Hydrant Repairs.
The Community Development Block Grant funds, totaling $17.9 million, were invested to support the rebuilding of the Town of Paradise through a range of critical infrastructure and community development projects. These funds contributed to road rehabilitation, road improvements, and major road extensions and widenings that enhance safety and mobility throughout the community. Additionally, Community Development Block Grant resources supported the Paradise Sewer Project, a key component of long-term recovery and future development, and helped advance the construction of multi-family homes, expanding much-needed housing options as the Town continues to rebuild. 164
TOWN OF PARADISE
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2024
8 CAPITAL ASSETS
Major capital asset additions for the year totaled $13.3 million, including $15.1 million in construction in progress, with a depreciation adjustment of $1.86 million. Significant infrastructure investments include substantial additions to both on- and off-system road projects, as well as continued pre-construction development for the Paradise Sewer Project.
Table 3 below shows the $75.77 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 rates and increases in staffing. Although the Town contributed towards the net pension liability as dictated by CalPERS, the net pension liability increased 5.9% 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. 165
TOWN OF PARADISE
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2024
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 $6.45 million as of June 30, 2024.
NEXT YEAR'S BUDGET AND ASSUMPTIONS
The Camp Fire on November 8, 2018, was the most destructive wildfire in California’s history. While rebuilding the 10,000 structures destroyed is underway, it is expected to take over a decade for the Town of Paradise to be fully restored. Through a community visioning process, residents reached a consensus to rebuild a more resilient, fire-resistant town. With the support of federal, state, and local partners, the Town has continued implementing long-term recovery planning and projects.
The Town plans to restore the facilities and equipment lost or damaged during the fire through a combination of insurance claims, FEMA assistance, CDBG programs, CalTrans funding, and other funding sources. FEMA, along with the California Governor’s Office of Emergency Services, will support the Town’s infrastructure restoration efforts through public assistance and hazard mitigation grants. CalTrans funding is being used to support the repair and reconstruction of roads and transportation infrastructure, while CDBG programs help fund rebuilding projects that benefit the broader community, including housing, public facilities, and critical infrastructure.
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.
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BASIC FINANCIAL STATEMENTS
168
TOWN OF PARADISE
Governmental
Activities
ASSETS
Cash and investments $ 213,092,108
Restricted cash and investments 102,768
Accounts receivable 109,839
Due from other governments 18,254,142
Interest receivable 12,109
Other receivable 1,000
Prepaid items 5,737
Advance to the Successor agency 1,275,519
Loans receivable 31,979,725
Capital assets:
Non-depreciable:
Land and construction in progress 39,962,825
Depreciable:
Infrastructure, buildings, vehicles and equipment 61,125,863 Accumulated depreciation (25,323,424)
Total capital assets 75,765,264
Total Assets 340,598,211
DEFERRED OUTFLOWS OF RESOURCES
Related to net pension liability 11,769,660
Related to net OPEB liability 3,729,859
Total Deferred Outflows of Resources 15,499,519
LIABILITIES
Accounts payable 6,387,198
Retentions payable 560,754
Accrued wages 637,352
Deposits payable 44,211
Unearned revenue 11,668,636
Compensated absences, due in more than one year 615,001 Long-term debt:
Due within one year 1,204,135
Due in more than one year 5,698,598
Net pension liability 30,790,448
Other post employment benefits 13,124,624
Total Liabilities 70,730,957
DEFERRED INFLOWS OF RESOURCES
Related to net pension liability 1,342,300
Related to net OPEB liability 1,946,163
Total Deferred Inflows of Resources 3,288,463
NET POSITION
Net investment in capital assets 75,204,510
Restricted for:
Community development 16,539,607
Public safety 269,125
Streets and roads 7,377,175
Wastewater and drainage 5,169,700
Unrestricted 177,518,193
Total Net Position $ 282,078,310
The accompanying notes are an integral part of these financial statements.
STATEMENT OF NET POSITION
June 30, 2024
10 169
Net (Expense)
Operating Capital Revenue and
Charges for Grants and Grants and Changes in
Expenses Services Contributions Contributions Net Position Governmental Activities:
General government $ 593,133 4,701,414 $ $ (4,108,281)
Community development 20,998,241 19,838,301 710,851 $ 11,768,637 $ 11,319,548 Public safety 13,974,123 200,930 291,151 1,172,195 (12,309,847) Public works 604,127 1,451,741 7,397,532 16,734,729 23,284,647 Parks and recreation 273,831 330 (273,501)
Streets 3,206,803 67,859 1,476,664 (1,662,280)
Interest on long-term debt 433,790 (433,790)
Total governmental activities 45,039,943 $ 21,236,491 $ 8,467,723 $ 31,152,225 $ 15,816,496 General revenues:
Taxes:
Secured and unsecured property taxes 4,471,390
Sales and use taxes 2,645,804
Transient lodging tax 155,051
Franchise fees 227,924
Real property transfer taxes 92,220
Gas tax 713,071
Other taxes 115,847
Motor vehicle in-lieu, restricted 1,642,149
Homeowners property tax relief, unrestricted 30,667
Investment income 9,658,775
Other 1,431,837
Total General Revenues 21,184,735
Changes in Net Position 37,001,231
Net position, beginning of year 245,077,079
Net position, end of year $ 282,078,310
Program Revenues
TOWN OF PARADISE
STATEMENT OF ACTIVITIES
For the Year Ended June 30, 2024
11 170
General Camp Fire Loan CalHome
Fund 2018 Fund Funds Grants
ASSETS
Cash and investments $ 181,783,467 $ 40,409 4,504,301 $ Restricted cash and investments 100,413 2,355 $
Accounts receivable 73,626
Interest receivable 3,406 2,023
Other receivable
Prepaid expenses 5,737
Due from other governments 1,222,249 7,087,808 3,405,346 Due from other funds 23,231,029
Advance to the Successor Agency 1,275,519
Loans receivable 9,981,697 9,488,442
TOTAL ASSETS $ 7,090,163 207,695,446 $ 13,994,766 $ 13,427,470 $
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable 603,592 $ 1,705,709 $ 3,285 $ 17,464 $ Retentions payable 322,832
Accrued wages 504,144 5,525 869 8,253
Deposits payable
Due to other funds 4,746,143 3,392,497
Unearned revenue 665,182 2,692,941 409,780
Total liabilities 1,772,918 9,473,150 413,934 3,418,214
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues 9,488,442 9,981,697
TOTAL DEFERRED INFLOWS
OF RESOURCES 9,488,442 9,981,697
Fund balances:
Nonspendable 1,281,256
Restricted 100,413 4,092,390 27,559
Assigned 198,566,862
Unassigned 5,973,997 (2,382,987)
TOTAL FUND BALANCE 205,922,528 4,092,390 (2,382,987) 27,559
TOTAL LIABILITIES, DEFERRED
INFLOWS AND FUND BALANCES $ 7,090,163 207,695,446 $ 13,994,766 $ 13,427,470 $ The accompanying notes are an integral part of these financial statements.
Major Funds
TOWN OF PARADISE
BALANCE SHEET
GOVERNMENTAL FUNDS
June 30, 2024
12 171
Major Funds
Nonmajor Total
CDBG Grant Governmental Governmental
Fund Funds Funds
$ 8,389,490 $ 213,092,108 18,374,441 $
102,768
36,213 109,839
11 6,651 12,109
1,000 1,000
5,737
2,346,266 4,192,473 18,254,142
23,231,029
1,275,519
12,509,586 31,979,725
$ 22,610,778 23,245,353 $ 288,063,976 $
$ 3,786,174 $ 6,387,198 270,974 $
21,523 560,754 216,399
13,214 637,352 105,347
44,211 44,211
10,322,013 23,231,029 4,770,376
40,387 11,668,636 7,860,346
13,267,653 14,183,311 42,529,180
12,509,586 32,387,680 407,955
407,955 12,509,586 32,387,680
1,281,256
16,879,302 12,658,940
198,566,862
(3,447,544) (3,723,770) (3,580,304)
8,935,170 (3,447,544) 213,147,116
$ 22,610,778 23,245,353 $ 288,063,976 $
13 172
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Total Governmental Fund Balances 213,147,116 $
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 $25,323,424 75,765,264
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. 32,387,680
Long-term liabilities are not due and payable in the current period and therefore are not reported in the governmental funds.
Bonds payable (2,622,128)
Accreted interest payable (4,250,409)
Note payable (30,196)
Net pension liability (30,790,448)
Net OPEB liability (13,124,624)
Compensated absences (615,001)
Deferred outflows of resources related to changes in the net pension liability are not reported in the governmental funds. 11,769,660 Deferred outflows of resources related to 2022 pension contributions made subsequent to the measurement date.
Deferred outflows of resources related to changes in the net OPEB liability are not reported in the governmental funds. 3,729,859
Deferred inflows of resources related to changes in the net pension liability are not applicable to the current period. (1,342,300)
Deferred inflows of resources related to changes in the net OPEB liability are not applicable to the current period. (1,946,163)
Net Position of Governmental Activities 282,078,310 $
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, 2024
14 174
General Camp Fire Loan Cal Home
Fund 2018 Fund Funds Grants
REVENUES
Taxes and assessments $ 9,379,058
Licenses, permits and impact fees 344,692
Fines and forfeitures 153,886
Intergovernmental revenues 270,895 8,096,370 $ 6,541,620 $ Use of money and property 9,630,544 7,385 $ 65
Reimbursements 81,138 2,630
Charges for services 582,237
Program income 807,212
Other revenues 651,396
TOTAL REVENUES 8,099,000 21,093,846 814,597 6,541,685
EXPENDITURES
Current:
General government 408,179 3,881,173
Community development 1,320,869 242,749 3,925,371
Public safety 12,219,553
Public works 824,221
Parks and recreation 96,524
Streets
Capital outlay 6,721,846 874,693
Debt service:
Principal 470,100
Interest and fiscal charges 735,762
TOTAL EXPENDITURES 20,422,895 7,130,025 242,749 3,925,371 Excess of revenues over (under) expenditures 670,951 968,975 571,848 2,616,314
OTHER FINANCING SOURCES (USES)
Proceeds from sale of capital assets 21,811
Transfers in 1,189,541 2,540
Transfers out (12,051) - (108,052)
TOTAL OTHER FINANCING
SOURCES (USES) 2,540 1,199,301 (108,052)
Net Change in Fund Balances 971,515 1,870,252 463,796 2,616,314 Fund Balances (deficits), beginning of year 204,052,276 (3,354,502) 3,628,594 (2,588,755) Fund Balances (deficits), end of year $ (2,382,987) 205,922,528 $ 4,092,390 $ 27,559 $ 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, 2024
15 175
Major Funds
Nonmajor Total
CDBG Governmental Governmental
Grants Funds Funds
$ 11,012,730 1,633,672 $
1,239,128 894,436
26,000 179,886
$ 17,560,984 5,735,428 38,205,297
40 21,505 9,659,539
170,624 254,392
2,091,640 2,673,877
807,212
676,328 1,327,724
11,249,633 17,561,024 65,359,785
4,308,330 18,978
11,813,391 20,849,904 3,547,524
12,413,863 194,310
21,708 1,038,300 192,371
96,524
1,327,825 1,327,825
6,112,736 16,339,796 2,630,521
478,409 8,309
735,762
7,919,838 17,947,835 57,588,713
3,329,795 (386,811) 7,771,072
21,811
250,682 10,177 1,452,940
- (1,452,940) (1,332,837)
10,177 21,811 (1,082,155)
2,247,640 (376,634) 7,792,883
(3,070,910) 205,354,233 6,687,530
$ 8,935,170 (3,447,544) $ 213,147,116 $
16 176
Net Change in Fund Balances - Total Governmental Funds 7,792,883 $ 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 16,339,796
Depreciation expense (3,055,221)
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 16,802,433
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 (139,669)
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 repayments 478,409
Interest payments 301,972
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 (86,225)
Pension expense related to liabilities, deferred outflows and inflows of resources (1,019,367) OPEB expense related to liabilities, deferred outflows and inflows of resources (413,780) Change in Net Position of Governmental Activities 37,001,231 $ The accompanying notes are an integral part of these financial statements.
For the Year Ended June 30, 2024
TOWN OF PARADISE
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF
REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
TO THE GOVERNMENT-WIDE STATEMENT OF ACTIVITIES
17 177
Successor Custodial
Agency Funds Funds
ASSETS
Cash and investments $ 8,676 226,407 $
Restricted cash and investments with fiscal agents 85,458 Accounts receivable
TOTAL ASSETS 311,865 8,676
LIABILITIES
Accounts payable 4,000 (2,109)
Interest payable 22,211
Due to other governments 102,452
Long-term debt:
Due within one year 6,630,519
TOTAL LIABILITIES 6,759,182 (2,109)
NET POSITION
Held in trust (6,447,317)
Restricted for organizations, individuals, and other governments 10,784 TOTAL FIDUCIARY NET POSITION (6,447,317) $ 10,784 $
The accompanying notes are an integral part of these financial statements.
TOWN OF PARADISE
STATEMENT OF FIDUCIARY NET POSITION
June 30, 2024
FIDUCIARY FUNDS
18 178
Successor Custodial
Agency Funds Funds
ADDITIONS
Taxes and assessments 23,240 $
Investment revenue 4,384
Other revenue $ 23
TOTAL ADDITIONS 27,624 23
DEDUCTIONS
Program and administrative expenses (184,370)
Interest expense (145,768)
TOTAL DEDUCTIONS (330,138) -
CHANGE IN NET POSITION 357,762 23
Net position, beginning of year 10,761 (6,805,079)
Net position, end of year (6,447,317) $ 10,784 $
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, 2024
19 179
NOTES TO THE BASIC FINANCIAL STATEMENTS
180
TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS
June 30, 2024
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.
181
TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
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.
182
TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
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.
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.
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.
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 183
TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
23 NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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.
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
184
TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
24 NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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.
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 185
TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
25 NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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.
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.
186
TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
26 NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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.
Excess Expenditures Over Appropriations: The following funds had excess expenditures over appropriations.
Total
Expenditures and Excess
Fund Appropriations Transfers Out Expenditures
Nonmajor Special Revenue Funds:
Public Safety Grants 205,803 $ 259,367 $ (53,564) $
Other Grants 259,225 521,959 (262,734)
Impact Fees 100,000 164,347 (64,347)
The Funds are over budget due to increased funding available in those funds.
Fund Deficits: At June 30, 2024, the following governmental funds had a fund balance deficit:
Fund Deficit
Camp Fire 2018 Fund 2,382,987 $
CDBG Grants Fund 3,447,544
Disaster Recovery Projects 2,776,831
Capital Projects Fund 473,186
FEMA Grants Fund 8,560
Home Grant Fund 465,193
187
TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
27 NOTE A – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued) 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 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 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. 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.
In December 2023, the GASB issued Statement No. 102, Certain Risk Disclosures. This statement requires a government to assess whether an event or events associated with a concentration or constraint that could cause the substantial impact have occurred, have begun to occur, or are more likely than not to begin to occur within 12 months of the date the financial statements are issued. The provisions of this Statement are effective for year ended June 30, 2025.
In April 2024, the GASB issued Statement No. 103, Financial Reporting Model Improvements. This statement will implement changes to the financial reporting model including the Management’s Discussion and Analysis, Unusual or Infrequent Items, presentation of the Proprietary Fund Statement of Revenues, Expenses and Changes in Fund Net Position, Major Component Unit Information, and Budgetary Comparison Information. The provisions of this Statement are effective for year ended June 30, 2026.
In October 2024, the GASB issued Statement No. 104, Disclosure of Certain Capital Assets, that requires certain types of assets to be disclosed separately in the note disclosures and establishes requirements for capital assets held for sale. This Statement is effective for the year ended June 30, 2026.
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, 2024 are classified in the accompanying financial statements as follows:
Governmental Fiduciary
Activities Funds Total
Cash and cash equivalents 213,092,108 $ 235,083 $ 213,327,191 $ Restricted cash 102,768 85,458 188,226
$ 320,541 213,194,876 $ 213,515,417 $
188
TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
28 NOTE B – CASH AND INVESTMENTS (Continued)
As of June 30, 2024, the Town’s cash and investments consisted of the following:
Cash on hand 8,725 $
Deposits in financial institutions 17,590,271
Investments:
California CLASS prime fund 16,326,855
Local Agency Investment Fund 1,122,522
Commercial paper 1,496,380
Money market mutual funds 13,904
U.S. treasury 38,509,500
U.S. government agency 51,469,803
Corporate bonds 20,804,896
Supranational 14,758,541
Municipal notes/bonds 48,639,932
Negotiable certificates of deposit 1,444,537
Mortgage-backed security 1,229,138
Held by fiscal agent
Money market fund 100,413
Total investments 195,916,421
Total cash and investments 213,515,417 $
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. 189
TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
29 NOTE B – CASH AND INVESTMENTS (Continued)
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 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:
190
TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
30 NOTE B – CASH AND INVESTMENTS (Continued)
Total 12 Months or Less 13 to 24 Months 25 to 60 Months California CLASS Prime 16,326,855 $ 16,326,855 $
Fund
Local Agency Investment
Fund (LAIF) 1,122,522 1,122,522
Money market mutual fund 13,904 13,904
Commercial paper 1,496,380 1,496,380
U.S. Treasury 38,509,500 38,509,500 $
U.S. government agency 51,469,803 12,432,958 24,453,904 $ 14,582,941 Corporate bonds 20,804,896 891,036 6,633,050 13,280,810 Supranational 14,758,541 3,053,137 8,441,810 3,263,594
Municipal notes/bonds 48,639,932 24,371,581 22,743,264 1,525,087 Negotiable certificates of
deposit 1,444,537 740,015 245,706 458,816
Mortgage-backed securities 1,229,138 1,229,138
Held by fiscal agent
Money market fund 100,413 100,413
Total 195,916,421 $ 44,221,946 $ 63,746,872 $ 71,620,748 $ 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, 2024:
Investment Type AAA AA+/AA/AA- A+/A A-1 Total
California CLASS Prime Fund 16,326,855 $ 16,326,855 $
Money Market Mutual Funds 13,904 13,904
Commercial paper $ 1,496,380 1,496,380
U.S. Treasuries 38,509,500 $ 38,509,500
U.S. government agencies 48,198,423 48,198,423
Corporate bonds 10,519,130 10,285,766 $ 20,804,896
Supranational 14,758,541 14,758,541
Muncipal notes/bonds 9,287,346 39,352,586 48,639,932
Mortgage-backed securities 1,229,138 1,229,138
Held by fiscal agent:
Money market fund 100,413 100,413
$ 152,567,318 9,401,663 $ 10,285,766 $ 1,496,380 $
Not rated:
LAIF 1,122,522
Exempt from credit rating disclosure:
U.S. government agencies 3,271,380
Negotiable certificates of deposit 1,444,537
Total investments $ 195,916,421
191
TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
31 NOTE B – CASH AND INVESTMENTS (Continued)
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, 2024.
Issuer Investment Type Amount %
Federal Farm Credit Bank U.S. Agency security 11,476,400 $ 5.86% Federal Home Loan Mortgage Corporation U.S. Agency security 10,273,603 5.24% Federal National Mortgage Association U.S. Agency security 16,464,668 8.40% 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, 2024, the carrying amount of the Town’s deposits was $17,590,271 and the balance in financial institutions was $18,140,549. Of the balance in financial institutions, $500,000 was covered by federal depository insurance and $17,640,549 was covered by the pledging financial institution with assets held in a common pool for the Town and other governmental agencies.
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 $179,046,993,600 managed by the State Treasurer. Of that amount, 3% 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, 2024, these investments matured in an average of 217 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.
192
TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
32 NOTE B – CASH AND INVESTMENTS (Continued)
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, 2024 were as follows:
Receivable Fund Payable Fund Amount
General Fund Major Governmental Funds:
General Fund
Camp Fire 2018 4,746,143 $
CalHOME Grants 3,392,497
CDBG Grants 10,322,013
Nonmajor Governmental Funds:
Disaster Recovery Projects 2,572,035
Capital Project 461,583
Highway Grants 113,055
Community Development 264,523
FEMA Grants 796,113
Public Safety Grants 45,057
Other Grants 88,094
HOME Grants 429,916
$ 23,231,029
193
TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
33 NOTE C – INTERFUND TRANSACTIONS (Continued)
Transfers during the year ended June 30, 2024 were as follows:
Amount
Fund Making Transfer Fund Receiving Transfers Transferred General Fund Camp Fire 2018 2,540 $
Gas Tax 2,113
Highway Grants 63
FEMA Grants 6,883
CDBG Grants 452
Major Governmental Funds:
Loan Funds HOME Grants 108,052
Nonmajor Governmental Funds:
Building Safety and Wastewater Services General Fund 301,727 Community Development 425
Debt Service 3,186
Local Transportation General Fund 9,322
Gas Tax 93
Highway Grants General Fund 1
Gas Tax 3,638
CDBG Grants 9,725
Gas Tax General Fund 252,818
Community Development Disaster Recovery Projects 118,229 FEMA Grants General Fund 525,611
Other Grants Local Transportation 459
Highway Grants 7,541
HOME Grants General Fund 100,062
$ 1,452,940
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, 2024 was $31,979,725, which included loans to homeowners totaling $13,089,468, loans to the developer (Paradise Community Village) totaling $6,380,671, and loans to Community Housing Improvement Program totaling $12,509,586. As of June 30, 2024 loans receivable balances of $9,488,442, $9,981,697 and $12,509,586 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, 2024. 194
TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
34 NOTE E – CAPITAL ASSETS
Governmental capital assets activity for the year ended June 30, 2024 was as follows:
Balance at Balance at
June 30, 2023 Additions Retirements Transfers June 30, 2024 Capital assets, not being depreciated:
Land $ 1,845,010 1,845,010 $
Construction in progress 38,071,755 15,147,810 $ (15,101,750) $ 38,117,815 Total capital assets,
not being depreciated 39,916,765 15,147,810 - (15,101,750) 39,962,825 Capital assets, being depreciated:
Infrastructure 32,550,959 13,247,384 45,798,343
Buildings 3,980,947 98,839 1,076,390 5,156,176
Machinery and equipment 229,743 2,671,351 777,976 3,679,070 Vehicles 5,828,771 863,404 (199,901) $ 6,492,274
Total capital assets,
being depreciated 1,191,986 45,032,028 (199,901) 15,101,750 61,125,863 Less accumulated depreciation for:
Infrastructure (15,110,624) (1,849,367) (16,959,991)
Buildings (1,922,982) (156,124) (2,079,106)
Machinery and equipment (384,380) (1,920,443) (2,304,823) Vehicles (3,514,055) (665,350) 199,901 (3,979,504)
Total accumulated depreciation (22,468,104) (3,055,221) 199,901 - (25,323,424) Capital assets being
depreciated, net 22,563,924 (1,863,235) - 15,101,750 35,802,439
GOVERNMENTAL ACTIVITIES
CAPITAL ASSETS, NET $ 62,480,689 $ - 13,284,575 $ - $ 75,7 $ 65,264 Depreciation expense for governmental capital assets was charged to functions as follows:
General government 234,503 $
Public safety 819,212
Streets and public works 1,824,199
Parks and recreation 177,307
Total governmental activities depreciation expense 3,055,221 $ 195
TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
35 NOTE F – LONG-TERM LIABILITIES
Long-term liability activity for the year ended June 30, 2024 was as follows:
Balance Balance Due Within
June 30, 2023 Additions Payments June 30, 2024 One Year Governmental Activities:
Bonds payable 3,081,366 $ (459,239) $ 2,622,127 $ 448,824 $ Accreted interest payable 4,552,381 (301,971) 4,250,410 735,762 Finance purchase agreements 49,366 (19,170) 30,196 19,549 Total debt 7,683,113 - (780,380) 6,902,733 1,204,135
Compensated absences 528,776 86,225 $ 615,001
Net pension liability 29,081,689 1,708,759 30,790,448
OPEB liability 11,791,874 1,332,750 13,124,624
Governmental activities
long-term liabilities 49,085,452 $ 3,127,734 $ (780,380) $ 51,432,806 $ 1,204,135 $ 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, 2024:
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, 2024 was $2,622,127. The accreted interest on the capital appreciation bonds balance as of June 30, 2024 was $4,250,410.
196
TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
36 NOTE F – LONG-TERM LIABILITIES (Continued)
Principal interest payments on bonds are due as follows:
Year Ending June 30: Principal Interest* Total
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 406,621 1,405,000 998,379
2030-31 483,113 1,820,000 1,336,887
Totals 2,622,127 $ 5,797,873 $ 8,420,000 $
* The amount includes accreted interest.
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:
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
2025 $ 19,549 $ 20,236 687 $
2026 9,084 9,375 291
2027 1,563 1,572 9
Totals 30,196 $ 987 $ 31,183 $
197
TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
37 NOTE G – FUND BALANCE
The following are the components of the Governmental Funds fund balances:
Nonmajor Total
General Camp Fire CalHome CDBG Governmental Governmental Fund 2018 Fund Loan Funds Grants Fund Grants Funds Funds Fund balances:
Nonspendable:
Prepaid expenses 5,737 $ $ 5,737
Advance to successor
agency 1,275,519 1,275,519
Total Nonspendable 1,281,256 - - - - - 1,281,256
Restricted for:
Debt service 100,413 100,413
Community development 4,092,390 $ 27,559 $ 562,543 $ 4,682,492 Public safety 269,125 269,125
Streets and roads 6,657,572 6,657,572
Wastewater and drainage 5,169,700 5,169,700
Total Restricted 100,413 - 4,092,390 27,559 - 12,658,940 16,879,302 Assigned for:
PG&E subsequent funds 197,048,762 197,048,762
Measure V 1,368,100 1,368,100
Property abatement 150,000 150,000
Total assigned 198,566,862 - - - - - 198,566,862
Unassigned/Unrestricted 5,973,997 (2,382,987) $ - - (3,447,544) $ (3,723,770) (3,580,304) Total Unassigned 5,973,997 (2,382,987) - - (3,447,544) (3,723,770) (3,580,304) Total fund balances 205,922,528 $ (2,382,987) $ 4,092,390 $ 27,559 $ (3,447,544) $ 8,935,170 $ 213,147,116 $ 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 198
TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
38 NOTE H – PENSION PLANS (Continued)
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.
The Plan’s provisions and benefits in effect at June 30, 2024, 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 12.47% 10.10% 7.68% 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 27.11% 22.83% 13.54% 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. 199
TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
39 NOTE H – PENSION PLANS (Continued)
For the year ended June 30, 2024, the employer contributions made to the Plan were $3,015,733.
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions:
As of June 30, 2024, the Town reported a net pension liability for its proportionate share of the net pension liability as follows:
Liability/Asset
City Miscellaneous Risk Pool 8,528,344 $
Safety Risk Pool 22,262,104
Total Net Pension Liability 30,790,448 $
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, 2023, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2022 rolled forward to June 30, 2023 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, 2024 and 2023 was as follows:
Miscellaneous Safety
Plan Plan
Proportion - June 30, 2023 0.16950% 0.30779%
Proportion - June 30, 2024 0.17055% 0.29782%
Change - Increase (Decrease) 0.00105% -0.00997%
For the year ended June 30, 2024, the Town recognized a pension expense of $1,323,764 for the Miscellaneous Plan and $2,711,336 for its Safety Plan. At June 30, 2024, 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 1,071,992 $ Net differences between projected and actual earnings
on plan investments 1,380,816
Difference between employer's and proportionate share
of contributions (128,312) 69,339 $
Difference between expected and actual experience 435,674 (67,584) Change in employer's proportion 43,086 (131,043)
Changes of assumptions 514,895
Total 3,515,802 $ (326,939) $
200
TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
40 NOTE H – PENSION PLANS (Continued)
Deferred Deferred
Outflows of Inflows of
Safety Risk Pool Resources Resources
Pension contributions subsequent to measurement date 1,943,741 $ Net differences between projected and actual earnings
on plan investments 3,046,563
Difference between employer's and proportionate
share of contributions 202,751 (644,600) $
Difference between expected and actual experience 1,634,449 (139,926) Change in Employer's Proportion 127,108 (230,835)
Changes of assumptions 1,299,246
Total 8,253,858 $ (1,015,361) $
Total - all risk pools 11,769,660 $ (1,342,300) $
The $3,015,733 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
2025 580,111 $ 1,584,766 $ 2,164,877 $
2026 422,402 1,174,279 1,596,681
2027 1,074,737 2,450,676 3,525,413
2028 39,621 85,035 124,656
$ 5,294,756 2,116,871 $ 7,411,627 $
Actuarial Assumptions: The total pension liabilities in the actuarial valuations for the Plan were determined using the following actuarial assumptions:
Valuation Date June 30, 2022
Measurement Date June 30, 2023
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 rate incorporate Generational Mortality to capture ongoing mortality improvement using 80% of Scale MP 2020 published by the Society of Actuaries. For more details on this table, please refer to the December 2021 experience 201
TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
41 NOTE H – PENSION PLANS (Continued)
study report (based on CalPERS demographic data from 1997 to 2019) that can be found on the CalPERS website.
Discount Rate: The discount rate used to measure the total pension liability was 6.90% for the Plan, which remained the same as the prior year rate of 6.90%. 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% 4.54%
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. 202
TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
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 12,564,001 $ 30,946,855 $ 43,510,856 $ Current Discount Rate
Net Pension Liability 8,528,344 $ 22,262,104 $ 30,790,448 $ 1% Increase
Net Pension Liability 5,206,652 $ 15,161,701 $ 20,368,353 $ 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, 2023 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 80 Active employees 83
Total 163
203
TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
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, 2024, the Town paid $706,148 on behalf of retirees, and made implicit subsidy payments of $91,886. The Town did not contribute to the trust.
Net OPEB Liability: The Town’s net OPEB liability (NOL) was measured as of June 30, 2023 and the total OPEB liability used to calculate the net OPEB liability was determined by an actuarial valuation dated June 30, 2023 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 3.89%
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 Based on CalPERS rates
Healthcare Trend Rate Based on medical long-term trends from Society of Actuaries "Long Term Healthcare Cost Trends 2023 using baseline assumptions applied to both claims and premiums through 2023 followed by
7.40% (Pre-Medicare) / 4.20% (Medicare) in 2023, decreasing gradually to an ultimate rate of 4.14%
Discount Rate: The discount rate used to measure the total OPEB liability was 3.89%. The discount rate used is up to the expected long-term rate of return on the assets in the Trust set aside pay benefits, of the plan sponsor makes regular contributions to the Trust such that the assets are not depleted at any point in the future. If the Plan’s actuary determines that contributions are not sufficient to keep the Trust funded, a blend of the long-term rate of return and the yield or index rate for 20-year, tax exempt municipal bonds will be used for the periods when the Trust funds are not sufficient to cover benefit payments. Based on this requirement, and with approval of the plan sponsor.
Changes in Actuarial Assumptions: The discount rate decreased from 4.27% to 3.89%. Payroll growth, mortality and retirement rates have been updated. Health care trend rates were updated to actual premium increases from 2022 to 2023 followed by 7.40% (non-Medicare) and 4.20% (Medicare), decreasing gradually to 4.14% 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.
204
TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
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 12,046,535 $ 254,661 $ 11,791,874 $ Service cost 325,798 325,798
Interest cost 511,261 511,261
Investment income 26,982 (26,982)
Difference between expected
and actual experience 1,501,673 1,501,673
Changes in assumptions (180,966) (180,966)
Employer contributions 798,034 (798,034)
Benefit payments (798,034) (798,034)
Administrative expenses -
Net changes 1,359,732 26,982 1,332,750
Balance - end of year $ 281,643 13,406,267 $ 13,124,624 $ 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, 2023:
1% Decrease Discount Rate 1% Increase
2.89% 3.89% 4.89%
Net OPEB liability 14,518,817 $ 13,124,624 $ 11,934,855 $ 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, 2023:
Current Healthcare Cost
1% Decrease Trend Rates 1% Increase
6.40% 7.40% 8.40%
Net OPEB liability 12,843,012 $ 13,124,624 $ 13,422,355 $ 205
TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
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 6.4 years at June 30, 2024.
OPEB Expenses and Deferred Outflows/Inflows of Resources Related to OPEB: For the fiscal year ended June 30, 2024, the Town recognized OPEB expense of $1,281,707. As of fiscal year ended June 30, 2024, 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 822,432 $ Differences between actual and expected experience 1,312,932 (232,890) $ Changes in assumptions 1,592,657 (1,713,273)
Net differences between projected and actual earnings
on OPEB plan investments 1,838
Total 3,729,859 $ (1,946,163) $
The $822,432 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:
2025 476,393 $
2026 534,670
2027 (164,569)
2028 (174,132)
2029 206,361
Thereafter 82,541
$ 961,264
206
TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
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 - 10,000
Boiler and machinery 100,000,000 - 2,500
Wildfire deductible - - 2,500,000
Mobile equipment 5,445,635 - 5,000
Workers Compensation liability 500,000 4,500,000 100,000 Cyber Excess 2,000,000 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, 2024, 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.
207
TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
47 NOTE K – COMMITMENTS AND CONTINGENCIES (Continued)
The Town has the following contract commitments at June 30, 2023:
Sewer Project Design 2,713,125 $
2024 On System Road Rehabilitation 4,961,787
2024 Off System Road Rehabilitation 5,756,809
Early Warning System 817,365
Disaster Recovery 1,045,256
Communicatoin Strategy and Support Services 240,922
$ 15,535,264
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 amended amount not to exceed $18,994,417. As of June 30, 2024, $5,273,422 was committed for fiscal year 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, 2024 are required by debt continuing disclosure requirements.
208
TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
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, 2024:
Balance Balance Due Within
July 01, 2023 Additions Retirements June 30, 2024 One Year Advance Payable 1,275,519 $ 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 $ 6,630,519 $
The long-term liabilities consisted of the following components for the fiscal year ended June 30, 2024:
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, 2024:
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, 2024 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. 209
TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
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. The Agency began making payments on the 2009 Bonds during fiscal year 2024/25 and must complete all payments on the 2009 Bonds before making payments on the 2016 bonds. 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, 2024 is as follows:
2009 Tax Allocation Refunding Bonds
Fiscal Year ended June 30: Principal Interest Total
2025 110,000 $ 230,638 $ 340,638 $
2026 110,000 224,313 334,313
2027 120,000 217,988 337,988
2028 125,000 211,088 336,088
2029 135,000 203,900 338,900
2030-2034 805,000 890,938 1,695,938
2035-2039 1,055,000 621,900 1,676,900
2040-2044 1,515,000 500,388 2,015,388
Totals 3,975,000 $ 3,101,153 $ 7,076,153 $
210
TOWN OF PARADISE
NOTES TO BASIC FINANCIAL STATEMENTS (Continued)
June 30, 2024
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
2025 20,000 $ 54,389 $ 74,389 $
2026 53,629 20,000 73,629
2027 52,869 25,000 77,869
2028 51,919 25,000 76,919
2029 50,969 25,000 75,969
2030-2034 240,419 135,000 375,419
2035-2039 165,000 212,694 377,694
2040-2044 200,000 177,581 377,581
2045-2049 245,000 134,119 379,119
2050-2054 295,000 79,818 374,818
2055-2057 225,000 72,267 297,267
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, $2,692,941 is recorded as unearned revenue in the Camp Fire Fund.
NOTE N – SUBSEQUENT EVENTS
Subsequent to June 30, 2024, the Town awarded agreement for professional services with Placeworks for a not to exceed amount of $2.2 million.
211
COMPLIANCE REPORT
REQUIRED SUPPLEMENTARY INFORMATION
212
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 6,690,500 $ 7,815,514 $ 9,379,058 $ 1,563,544 $ Licenses, permits and impact fees 326,718 326,718 344,692 17,974 Fines and forfeitures 25,100 25,100 153,886 128,786
Intergovernmental revenues 103,050 43,050 270,895 227,845 Use of money and property 2,016,805 2,016,805 9,630,544 7,613,739 Reimbursements 5,400 5,400 81,138 75,738
Charges for services 377,425 377,425 582,237 204,812
Other revenues 293,575 293,575 651,396 357,821
TOTAL REVENUES 9,838,573 10,903,587 21,093,846 10,190,259
EXPENDITURES
Current:
General government 3,814,335 4,020,289 3,881,173 139,116 Community development 768,773 1,781,136 1,320,869 460,267 Public safety 12,315,533 12,450,286 12,219,553 230,733
Public works 943,516 962,816 824,221 138,595
Parks and recreation 119,010 119,010 96,524 22,486
Capital outlay 1,521,472 1,769,505 874,693 894,812
Debt Service:
Principal 470,100 470,100 470,100 -
Interest and fiscal charges 735,762 735,762 735,762 -
TOTAL EXPENDITURES 20,688,501 22,308,904 20,422,895 1,886,009 Excess of revenues over (under)
expenditures (10,849,928) (11,405,317) 670,951 12,076,268
OTHER FINANCING SOURCES (USES)
Transfers in 1,736,485 936,485 1,189,541 253,056
Transfers out (2,963,870) (1,230,907) (12,051) 1,218,856 Total other financing sources (1,227,385) (294,422) 1,199,301 1,493,723 Net change in fund balance (12,077,313) (11,699,739) 1,870,252 13,569,991 Fund balance, beginning of year 204,052,276 204,052,276 204,052,276 Fund balances, end of year $ 192,352,537 191,974,963 $ 205,922,528 $ 13,569,991 $ The accompanying notes are an integral part of these financial statements.
Budgeted Amounts
TOWN OF PARADISE
For the Year Ended June 30, 2024
51 213
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 8,050,226 $ 8,050,226 $ 8,096,370 $ 46,144 $ Reimbursements - - 2,630 2,630
Other revenues - - - -
TOTAL REVENUES 8,050,226 8,050,226 8,099,000 48,774
EXPENDITURES
Current:
General government 60,000 60,000 408,179 (348,179)
Public works 8,613,574 8,613,574 8,613,574
Capital outlay - - 6,721,846 (6,721,846)
TOTAL EXPENDITURES 8,673,574 8,673,574 7,130,025 1,543,549 Excess of revenues over (under)
expenditures (623,348) (623,348) 968,975 1,592,323
OTHER FINANCING SOURCES (USES)
Transfers in 844,422 844,422 2,540 (841,882)
Transfers out (7,530) (7,530) - 7,530
Total other financing sources 836,892 836,892 2,540 (834,352) Net change in fund balance 213,544 213,544 971,515 757,971 Fund balance, beginning of year (3,354,502) (3,354,502) (3,354,502) Fund balances, end of year $ (3,140,958) (3,140,958) $ (2,382,987) $ 757,971 $ The accompanying notes are an integral part of these financial statements.
TOWN OF PARADISE
For the Year Ended June 30, 2024
Budgeted Amounts
52 214
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 7,385 $ 7,385 $
Program income 270,000 $ 270,000 $ 807,212 537,212
TOTAL REVENUES 270,000 270,000 814,597 544,597
EXPENDITURES
Current:
Community development 1,310,000 1,310,000 242,749 1,067,251 TOTAL EXPENDITURES 1,310,000 1,310,000 242,749 1,067,251 Excess of revenues over (under)
expenditures (1,040,000) (1,040,000) 571,848 (522,654)
OTHER FINANCING SOURCES (USES)
Transfers in 2,500 2,500 (2,500)
Transfers out (267,100) (267,100) (108,052) 159,048
Total other financing sources (264,600) (264,600) (108,052) 156,548 Net change in fund balance (1,304,600) (1,304,600) 463,796 (366,106) Fund balance, beginning of year 3,628,594 3,628,594 3,628,594 Fund balances, end of year $ 2,323,994 2,323,994 $ 4,092,390 $ (366,106) $ The accompanying notes are an integral part of these financial statements.
TOWN OF PARADISE
For the Year Ended June 30, 2024
Budgeted Amounts
53 215
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 6,720,000 $ 6,720,000 $ 6,541,620 $ (178,380) $ Use of money and property 65 65
TOTAL REVENUES 6,720,000 6,720,000 6,541,685 (178,315)
EXPENDITURES
Current:
Community development 5,700,000 5,700,000 3,925,371 1,774,629 TOTAL EXPENDITURES 5,700,000 5,700,000 3,925,371 1,774,629 Excess of revenues over (under)
expenditures 1,020,000 1,020,000 2,616,314 1,596,314
OTHER FINANCING SOURCES (USES)
Transfers out (1,020,000) (1,020,000) - 1,020,000
Total other financing sources (1,020,000) (1,020,000) - 1,020,000 Net change in fund balance - - 2,616,314 2,616,314
Fund balance, beginning of year (2,588,755) (2,588,755) (2,588,755) Fund balances, end of year $ (2,588,755) (2,588,755) $ 27,559 $ 2,616,314 $ The accompanying notes are an integral part of these financial statements.
TOWN OF PARADISE
For the Year Ended June 30, 2024
Budgeted Amounts
54 216
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 73,026,598 $ 73,026,598 $ 17,560,984 $ (55,465,614) $ Use of money and property 40 40
TOTAL REVENUES 73,026,598 73,026,598 17,561,024 (55,465,574)
EXPENDITURES
Current:
Community development 12,365,190 12,365,190 11,813,391 551,799 Public safety 21,708 (21,708)
Capital outlay 6,112,736 (6,112,736)
TOTAL EXPENDITURES 12,365,190 12,365,190 17,947,835 (5,582,645) Excess of revenues over (under)
expenditures 60,661,408 60,661,408 (386,811) (61,048,219)
OTHER FINANCING SOURCES (USES)
Transfers in 10,177 10,177
Transfers out (60,501,012) (60,501,012) 60,501,012
Total other financing sources (60,501,012) (60,501,012) 10,177 60,511,189 Net change in fund balance 160,396 160,396 (376,634) (537,030) Fund balance, beginning of year (3,070,910) (3,070,910) (3,070,910) Fund balances, end of year $ (2,910,514) (2,910,514) $ (3,447,544) $ (537,030) $ The accompanying notes are an integral part of these financial statements.
TOWN OF PARADISE
For the Year Ended June 30, 2024
Budgeted Amounts
55 217
June 30, 2024 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 liability 0.24681% 0.25177% 0.31455% 0.23328% 0.22936% 0.22659% 0.21895% 0.21960% 0.21454% 0.20733% Proportionate share of the net pension liability $ 29,081,689 30,790,448 $ 17,011,738 $ 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 $ 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 $ 3,208,769 $ Proportionate share of the net pension liability
as a percentage of covered payrol 478.42% 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 of
the total pension liability 71.42% 71.88% 84.89% 75.10% 75.30% 75.30% 73.30% 74.06% 78.40% 79.82% Notes to Schedule:
June 30, 2024 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) $ 2,890,885 3,015,733 $ 2,545,505 $ 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) (3,015,733) (2,545,505) (2,261,174) (1,940,581) (1,610,515) 1,387,082 (1,189,673) (1,070,254) (550,258) Contribution deficiency (excess) - $ - $ - $ - $ (464,212) $ - $ - $ 58,795 $ (441,279) $ - $ Covered payroll - fiscal year $ 6,435,817 7,484,964 $ 5,416,012 $ 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 40.29% 44.92% 47.00% 47.18% 50.61% 41.83% -36.85% 31.39% 30.48% 15.84% Valuation date: June 30, 2021 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
Market
Value
15-year
smoothed
market
Inflation 2.30% 2.50% 2.50% 2.50% 2.625% 2.75% 2.75% 2.75% 2.75% 2.75% Salary increases
Payroll growth 2.80% 2.75% 2.75% 2.75% 2.875% 3.00% 3.00% 3.00% 3.00% 3.00% Investment rate of return 6.80% (1) 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 (5) (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
(5) Probabilities of retirement and mortality are based on CalPERS' 2021 Experience Study for the period from 1997 to 2019.
TOWN OF PARADISE
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2024
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 liability impact 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 7.15 to 6.90% in the 2021 valuation Omitted years: GASB Statement No. 68 was implemented during the year ended June 30, 2015. No information was available prior to this dat 56 218
Reporting Date - Based on Measurement Period 2023 2022 2021 2020 2019 2018 2017
TOTAL OPEB LIABILITY
Service Cost $ 402,152 325,798 $ 110,454 $ 107,237 $ 153,868 $ 149,386 $ 145,035 $ Interest 357,063 511,261 643,913 637,764 663,993 661,804 661,041 Changes in benefit terms 609,318
Difference Between Expected and Actual Experience 72,957 1,501,673 (436,000) (424,055) Changes of Assumptions (2,336,582) (180,966) 3,981,641 (19,451) Benefit Payments (773,894) (798,034) (748,993) (784,503) (771,250) (783,788) (792,419) Net Change in Total OPEB Liability (1,668,986) 1,359,732 3,551,015 (39,502) (396,895) 27,402 13,657 Total OPEB Liability - Beginning 13,715,521 12,046,535 10,164,506 10,204,008 10,600,903 10,573,501 10,559,844 Total OPEB Liability - Ending (a) 13,406,267 $ 12,046,535 $ 13,715,521 $ 10,164,506 $ 10,204,008 $ 10,600,903 $ 10,573,501 $
PLAN FIDUCIARY NET POSITION
Contributions - Employer $ 773,890 798,034 $ 748,993 $ 784,503 $ 771,250 $ 852,682 $ 817,419 $ Net Investment Income (26,800) 26,982 63,661 (227) 12,915 11,096 11,016 Benefit Payments (773,894) (798,034) (748,993) (784,503) (771,250) (783,788) (792,419) Administrative expenses (572) 4 (487) (323) (323) (198) Net Change in Fiduciary Net Position (27,376) 26,986 63,174 (550) 12,592 79,792 36,016 Plan Fiduciary Net Position - Beginning 282,033 254,657 218,859 219,409 206,817 127,025 91,009 Plan Fiduciary Net Position - Ending (b) 281,643 $ 254,657 $ 282,033 $ 218,859 $ 219,409 $ 206,817 $ 127,025 $ Plan Net OPEB Liability/(Asset) - Ending (a) - (b) $ 11,791,878 13,124,624 $ 13,433,488 $ 9,945,647 $ 9,984,599 $ 45,061,840 $ 10,446,476 $ Plan Fiduciary Net Position as a Percentage of
the Total OPEB Liability 2.10% 2.11% 2.06% 2.15% 2.15% 1.95% 1.20% Covered-employee payroll - measurement period $ 5,128,559 6,756,552 $ 4,579,309 $ 3,834,730 $ 3,849,529 $ 4,290,581 $ 3,854,764 $ Net OPEB liability as percentage
of covered-employee payroll 194.25% 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, 2024
SCHEDULE OF CHANGES IN NET OPEB LIABILITY
57 219
2024 2023 2022 2021 2020 2019 2018
Actuarially determined contribution - employer fiscal year $ 878,029 994,136 $ 863,005 $ 676,317 $ 709,387 $ 701,420 $ 1,165,684 $ Contribution in relation to the actuarially determined
contributions (822,432) (749,022) (766,353) (748,993) (781,580) (701,420) (779,349) Contribution deficiency (excess) 171,704 $ 129,007 $ 96,652 $ (72,676) $ (72,193) $ - $ - $ Covered-employee payroll - employer fiscal year $ 6,435,817 6,945,735 $ 5,128,559 $ 4,579,309 $ 3,849,529 $ 4,290,581 $ 3,854,764 $ Contributions as a percentage of covered-employee payroll 11.84% 11.64% 14.94% 16.36% 20.30% 16.35% 20.22% Notes to Schedule
Valuation date June 30, 2023 June 30, 2021 June 30, 2021 June 30, 2019 June 30, 2019 June 30, 2017 June 30, 2017 Measurement period June 30, 2023 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% 2.30% 2.50% 2.50% 2.50% 2.26% 2.26%
Salary increases
Discount rate 3.89% 4.27% 2.60% 6.50% 6.50% 7.28% 7.28% Investment rate of return 6.50% 6.50% 6.50% 6.50% 6.50% 7.28% 7.28% Healthcare cost-trend rate, initial 7.40% 5.50% 5.75% 6.40% 6.40% 7.85% 7.85% Heathcare trending down to 4.14% 4.04% 4.04% 4.00% 4.00% 5.00% 5.00% Retirement age
Mortality
Most recent CalPERS Experience Study
Most recent CalPERS Experience Study
Last 10 Years
TOWN OF PARADISE
REQUIRED SUPPLEMENTARY INFORMATION
For the Year Ended June 30, 2024
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
58 220
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COMBINING STATEMENTS AND INDIVIDUAL FUND STATEMENTS
222
Building
Safety and Disaster
Wastewater Recovery Capital Local Highway
Services Projects Projects Transportation Grants
ASSETS
Cash and investments 4,767,572 $ 42,529 $ 3,019,433 $
Accounts receivable 5,466 709
Interest receivable 2,045 2
Other receivable 1,000
Due from other governments 407,955 2,105,563
Loans receivable
TOTAL ASSETS 4,776,083 $ - $ - $ 451,195 $ 5,124,996 $
LIABILITIES
Accounts payable 87,994 $ 480 $ 68,656 $
Retentions payable 204,796 $ 11,603 $
Accrued wages 56,458 714 4,657
Deposits
Due to other funds 2,572,035 461,583 113,055
Unearned revenue 5 55,056
TOTAL LIABILITIES 144,452 2,776,831 473,186 1,199 241,424
DEFERRED INFLOWS OF RESOURCES
Unavailable revenue 407,955
TOTAL DEFERRED INFLOWS
OF RESOURCES 407,955
FUND BALANCES (DEFICITS)
Restricted 4,631,631 42,041 4,883,572
Unassigned (2,776,831) (473,186)
TOTAL FUND BALANCES (DEFICITS) 4,631,631 (2,776,831) (473,186) 42,041 4,883,572
TOTAL LIABILITIES, DEFERRED
INFLOWS, AND FUND BALANCES 4,776,083 $ - $ - $ 451,195 $ 5,124,996 $
TOWN OF PARADISE
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
June 30, 2024
Special Revenue
59 223
Total
Public Nonmajor
Community FEMA Safety Other Home Grant Governmental
Gas Tax Development Grants Grants Grants Impact Fees Fund Funds $ 19,265 8,360,646 $ 3,034 $ 190,188 $ 515,635 $ 1,446,979 $ 9,160 $ 18,374,441 $ (14,942) 44,980 36,213
2 3,667 87 210 634 4 6,651
1,000
90,927 551,586 798,477 48,195 189,511 259 4,192,473
$ 570,853 8,455,240 $ 801,511 $ 238,470 $ 690,414 $ 1,492,593 $ 9,423 $ 22,610,778 $ $ 213 37,342 $ 2,364 $ 200 $ 14,080 $ 59,588 57 $ 270,974 $ 216,399
8,584 32,007 2,495 432 105,347
44,211 44,211
264,523 796,113 45,057 88,094 429,916 4,770,376
3,010 7,472,956 329,319 7,860,346
264,736 7,542,305 810,071 45,257 433,988 59,588 474,616 13,267,653 407,955
407,955
912,935 306,117 193,213 256,426 12,658,940 1,433,005
(8,560) (465,193) (3,723,770)
306,117 912,935 (8,560) 193,213 256,426 1,433,005 (465,193) 8,935,170 $ 570,853 8,455,240 $ 801,511 $ 238,470 $ 690,414 $ 1,492,593 $ 9,423 $ 22,610,778 $ Special Revenue
60 224
Building
Safety and Disaster
Wastewater Recovery Capital Local Highway
Services Projects Projects Transportation Grants
REVENUES
Taxes and assessments
Licenses, permits and impact fees 819,952 $
Fines and forfeitures 26,000
Intergovernmental revenues (3, 319) 555,313 $ 3,651,282 $ Use of money and property 7,463 7
Reimbursement 27,695 12,391
Charges for services 2,089,760
Other revenues 5,705 1,272 486,900
TOTAL REVENUES 2,973,256 568,983 4,138,182
EXPENDITURES
Current:
General government 15,233 462
Community development 2,844,093 121,129 $
Public safety
Public works 61,819 $ 31,680
Streets 39,737
Capital outlay 280,842 1,139,707
Debt Service:
Principal 8,309
TOTAL EXPENDITURES 2,867,635 121,129 61,819 320,579 1,171,849
EXCESS OF REVENUES (OVER)
(UNDER) EXPENDITURES 105,621 (121,129) (61,819) 248,404 2,966,333
OTHER FINANCING SOURCES (USES)
Transfers in 118,229 459 7,604
Transfers out (305,338) (9,415) (13,364)
TOTAL OTHER FINANCING
SOURCES (USES) (305,338) 118,229 - (8,956) (5,760)
NET CHANGE IN FUND BALANCES (199,717) (2,900) (61,819) 239,448 2,960,573 Fund balances, beginning of year 4,831,348 (2,773,931) (411,367) (197,407) 1,922,999 Fund balances, end of year $ (2,776,831) 4,631,631 $ (473,186) $ 42,041 $ 4,883,572 $ Special Revenue
TOWN OF PARADISE
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended June 30, 2024
61 225
Debt
Service
Total
Public Nonmajor
Community FEMA Safety Other Home Grant Debt Governmental Gas Tax Development Grants Grants Grants Impact Fees Fund Service Funds $ 1,633,672 1,633,672 $
74,484 $ 894,436
26,000
448,645 $ 508,144 $ 243,141 $ 332,222 $ 5,735,428
9 13,383 (2,802) 347 766 2,317 15 $ 21,505
67,859 62,679 170,624
1,880 2,091,640
27,642 154,209 600 676,328
450,534 1,714,914 505,342 271,130 549,876 76,801 615 11,249,633 2,370 757 156 18,978
3,508 157,030 323,658 94,920 3,186 $ 3,547,524
194,310 194,310
98,872 192,371
1,288,088 1,327,825
314,005 209,490 366,557 64,300 190,145 65,475 2,630,521 8,309
317,513 1,499,948 523,587 259,367 513,959 164,347 94,920 3,186 7,919,838 133,021 214,966 (18,245) 11,763 35,917 (87,546) (94,305) (3,186) 3,329,795 425 5,844 6,883 108,052 3,186 250,682
(118,229) (252,818) (525,611) (8,000) (100,062) (1,332,837) (117,804) (246,974) (518,728) - (8,000) - 7,990 3,186 (1,082,155) 15,217 (32,008) (536,973) 11,763 27,917 (87,546) (86,315) - 2,247,640 944,943 290,900 528,413 181,450 228,509 1,520,551 (378,878) 6,687,530 $ 306,117 912,935 $ (8,560) $ 193,213 $ 256,426 $ 1,433,005 $ (465,193) $ - $ 8,935,170 $ Special Revenue
62 226
Employee PD Found
Bank Money Total
ASSETS
Cash and investments $ 6,968 1,708 $ 8,676 $
Accounts receivable 2,108 2,108
TOTAL ASSETS 1,708 $ 9,076 $ 10,784 $
NET POSITION
Restricted for organizations, individuals
and other governments 1,708 $ 9,076 $ 10,784 $
TOTAL FIDUCIARY NET POSITION 1,708 $ 9,076 $ 10,784 $
TOWN OF PARADISE
COMBINING STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES
CUSTODIAL FUNDS
June 30, 2024
63 227
Employee PD Found
Bank Money Total
ADDITIONS
Other revenue 2 $ 21 $ 23 $
TOTAL ADDITIONS 2 21 23
CHANGE IN NET POSITION 2 21 23
Net position, beginning of year 9,055 10,761 1,706
Net position, end of year 1,708 $ 9,076 $ 10,784 $
TOWN OF PARADISE
STATEMENT OF CHANGES IN FIDUCIARY ASSETS AND LIABILITIES
CUSTODIAL FUNDS
June 30, 2024
64 228
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, 2024, and have issued our report thereon dated December 2, 2025. 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.
229
To the Town Council